OPERATIONS MANAGEMENT

MBA-FT (2021-23)
NEW PRODUCT REPORT
Group Assignment-1

Submitted to- Mr. A. B. RAJU

Submitted by-

• Sanket Kumar Agarwal (211219)

• Parv Jain (211209)
• Muskan Babel (211197)
• Vaibhav Nahar (211233)
• Sanchit Tiwari (211217)
INNOVATIVE PRODUCT
Paper Cups by Ecoknow – Climate Change is an impending threat to humanity. The ever-increasing
garbage produced by human populations is presenting a serious danger to our planet's natural
equilibrium. Our garbage has now accumulated in the oceans and landfills. Disposable cups, which we
used for our beverages, account for a large portion of the trash created. According to research, we
consume 16 billion throwaway coffee cups each year, posing a significant environmental risk.

Ecoknow Paper Cup is a cutting-edge product that was created in response to the negative
environmental impacts of throwaway cups. For our paper cups, we've developed a new Plant to Plant
strategy. Ecoknow paper cups are 100% biodegradable and plastic-free. The design of Ecoknow paper
cups is unusual in that a seed is put between various layers of the paper cup, and after usage, if we
burry the paper cup in soil and pour water in it, the seed germinates and gradually changes into a
plant. The remaining portion of the cup decomposes and provides vital nutrients to the soil, allowing
for a speedier transition from seed to plant. As a result, we've developed a plant-to-plant strategy, in
which we create the paper cup from a plant and then recycle it at the end of its lifespan.

PRODUCT DESCRIPTION
Ecoknow Paper Cups are constructed in such a manner that they perform their purpose despite being
100 percent biodegradable and plastic-free. Whether hot or cold, the beverage in an Ecoknow paper
cup maintains its temperature. There is a common misunderstanding that removing the polystyrene
layer from a paper cup will render it leaky and unsuitable for drinking beverages from. However,
Ecoknow paper cup is designed very meticulously and have the following layers –

1. Outer layer — This is the thickest layer in the paper cup, composed of paper and plant-based
fibres. It gives the paper cup its robustness, as this layer prevents the cup from being readily
 squeezed or crushed. This layer also adds beauty to the cup and may be customised according
to our client's preferences.
2. Inner Layer — This is a very thin layer formed from plant-based nutrients. This layer's job is to
give the seed with the nutrients it needs to germinate and develop. The seed is positioned
correctly between the outer and inner layers. The benefit of this layer is that it begins to
disintegrate when it comes into touch with water, allowing nutrients to be dissolved in the
soil. In the breakdown of the paper cup, this layer also functions as a catalyst.
3. Inner Coating – This is the most essential coating, as it is applied to the interior of the cup and
ensures that the cup does not leak. This coating is usually plastic-based in paper cups, however
it is water-based, recyclable, and biodegradable in Ecoknow paper cups.

In terms of the lid, Ecoknow paper cups include a straw-free, totally papered, plant-based
biodegradable cover.

TARGET CUSTOMER BASE

Businesses who utilise paper cups for food packaging will be the target market for Ecoknow paper
cups. Ecoknow paper cups will be sold on a business-to-business basis (B2B). There has been a flood
of knowledge that has made customers informed and smart as a result of increasing worries about
climate change among younger generations. Customers nowadays support sustainable and plastic-
positive businesses and attempt to avoid purchasing from companies who are unconcerned about the
environment. As a result, Brands has shifted its focus to becoming more environmentally friendly. Eco
Sphere paper cups are introduced onto the market at the right moment. Our target client base would
be extremely specific because we are a new entry in the industry and want to deliver a high-quality
product. The following are some of the key industries with which we will be dealing:

• Railways

• Airports and Airlines

• Multiplexes and Theatres

• Restaurants and Food Chains

ORGANIZATION
Name: ECOKNOW Private Ltd
Industry: FOOD PACKAGING INDUSTRY
Product: ECOKNOW PAPER CUPS
 COMPETITIVE DIMENSIONS OF ECOKNOW PAPER CUP

1. Low-cost Production – We will equip our manufacturing facility with high-tech paper manufacturing
machinery, which will lower the cost of our production when it is produced in big amounts. Our B2B
business strategy dictates that most of our orders will be in large quantities, which perfectly
complements our manufacturing process.

2. Sustainable goods - We have a competitive advantage over other food packaging firms in this area.
Most of our rivals continue to manufacture plastic-based packaging materials, and those who have
developed paper-based packaging materials still employ plastic coatings, resulting in one paper cup
taking over 20 years to disintegrate. Thus, our products are more superior and eco-friendlier.

3. Customizable - Our goods may be tailored to meet the specific demands of our customers. On the
exterior layer of our paper cup, we may give the needed aesthetics based on the demands of the
customer. Customization is also available in the form of different seeds placed to the cup. Our clients
may, for example, utilise this customisation to match the seed to the flavour of the beverage provided
in that cup.

4. Environmental Impact – Our product has no negative impact on the environment due to our plant-
to-plant method. According to research, over 6.5 million trees are felled each year to meet the
demand for throwaway paper cups.

Requirements to set up the plant to manufacture the

product
Product: This is the first and most important criterion because a lot depends on the product you will
be making. Tablets, capsules, liquids, granules, powders, and dry syrups are examples of products.

Viability Report: It is crucial to determine the manufacturing feasibility of the chosen product. The
feasibility report should look at the product's technical as well as financial viability.

Identification of the Market: After the feasibility has been determined, finalize the target market,
join the market as planned, and design a path for that entry.

Finance: The most powerful and competitive tool for establishing any business enterprise is finance.
For a venture to succeed, appropriate financial arrangements are required. Every business
endeavour requires sufficient funding to satisfy its actual needs or expenses.

Team: After the following prerequisites have been completed, you should concentrate on team
selection. Because the smooth operation and development of any enterprise or manufacturing
endeavour necessitated a professional, skilled, and motivated staff.
The area where the plant will be set up: The location of the manufacturing plant is essential. The
location of the manufacturing plant must be determined after taking into account the following
factors.
• Economically viable land
• Access to competent and affordable labour; easy access to technical support; and easy
access to markets and raw materials
• Logistics and transportation
• Tax cuts, subsidies, and government incentives are all financial factors.

Equipment selection: It is a critical and significant decision. Equipment for running a manufacturing
plant is essential, but low-cost equipment is advantageous to the business at the start of the project.
Always choose equipment based on the budget and the needs of the consumer. Always choose and
purchase high-quality production equipment.

MANUFACTURING METHOD
The Ecoknow paper cup manufacturing method would be intended to reduce lead time as much as
possible. Our customer would want a consistent flow of deliveries from us for our goods. To
accomplish this, we construct them ahead of time to meet anticipated demand. The client order
decoupling point for our product would be in the midst of the supply chain.

We would be a create-to-order company because our items take less time to build and can be
customised in many ways. After receiving the order from our clients, we begin manufacturing. Because
we won't be investing much in inventory, this will help us save money. Our production method for
paper cups would be developed in the form of an assembly line. Work processes will be organised in
sequential phases, allowing for a specified production rate to be attained. The assembly line is
especially excellent for producing high-standard commodity products, such as our paper cups, which
are highly standardised.

TANSFORMATION PROCESS
1st step (Procurement of inputs)

In our industry, we transform timber into paper rolls from sustainable forests.

2nd step (Processing of inputs)

The paper rolls are cut into sidewall blanks that are properly measured.

The cutting is then sent into a cup forming machine, which wraps the blanks into cups. A second plant-
based layer is put to the cups, followed by the seed and the bottom.

To make the cup liquid resistant, a water-based inner coating is applied to the inside.

Finally, the cup is cut to its final round shape, and a straw-free paper cover is attached.

Step 3 (Finishing)
The paper cup is complete. Clients' requests for customisation are incorporated to the product, and
the cup is ready for delivery.

APPROPRIATE SITE
There are a few criteria we kept in mind while setting up a manufacturing unit for the manufacture of
our product when deciding where the unit should be located. It should, above all, have convenient
access to transportation and utilities. We'll need to figure out what kinds of transportation are needed
for raw material delivery, final product distribution, and internal material mobility, as well as how
close the location is to these alternatives. It is also necessary to assess traffic flow. It should be easy
for workers, suppliers, and distributors to gain access to the facility. It should have more than one
accessible path, as well as conveniently available water and energy sources. So, we choose small town
near Ahmedabad as our production site.
POSITIVE FACTORS AND SACRIFICED FACTORS OF
THE SUGGESTED SITE

Location of an Industry in Small Town:

Advantages:
(i) Less labor trouble and co-ordinal employee-employer relation.
(ii) Easy access to suitable land for present and future needs.
(iii) The unit's operation is not hampered by local bylaws.
(iv) There is no opposition from established industries.
(v) There is the possibility of tax exemptions.
(vi) There is not much traffic.
(vii) Rents are lower than in big cities and metropolitan areas.
(viii) Wage rates for labor/employees/workers are lower.
(ix) There are fewer fire hazards.
(x) Noise is not an issue.

Disadvantages:
(i) Scarcity of skilled labor of requisite type.
(ii) A lack of recreational and entertainment opportunities for employees.
(iii) There are no facilities such as evening classes or industrial training.
(iv) Employees and workers do not quickly adapt to factory life.
(v) Specialized services are unavailable for a variety of reasons.
(vi) Police and fire protection are not up to snuff.

Sr. No. Factors Rating

1 Infrastructure near plant 0.42
2 Govt. laws and policies 0.48
3 Availability Skilled manpower 0.50
4 Market in close vicinity 0.60
5 Transportation Feasibility 0.72
6 Capital 0.78
7 Availability Cheap labour 0.86
8 Raw Material Availability 0.90

1. Raw material is considered as the most important factor with respect to food packing industry
as it is the main cost component in the production of Ecoknow paper cups.
2. Companies shift their production from one country to another if they find cheap labour
compared to their present location because in production cost, cost of labour have a
considerable significance.
3. Capital decides the scale of operation of any business; therefore, we have considered capital
the 3rd most important factor as the availability of capital can allow us to make our product
reach masses and its limitation can restrict us in various ways.
4. Transportation is considered an important factor because its omnipresent in all operations,
right from procuring of raw materials to selling the finished good, transportation plays a major
role.
5. If the organisation is in close vicinity of the market, buyers will have a natural inclination
towards our organisation as we will reap the benefits of our location factor.
6. Skilled manpower will directly reduce the manager’s workload as those people will know their
work in and out and therefore, they can maximise the efficiency of the operations performed
by them.
7. Government laws and policies impacts the operation of any business under its jurisdiction;
therefore, it is always good to check on existing laws and policies for the industry.
8. If the roads to the plant are properly constructed, there is proper supply of water and
electricity and overall infrastructure is developed, it facilitates the smooth performance of
operations.