Joshue Glenn Catubag

PRODUCTION AND OPERATIONS MANAGEMENT

MBA 2 Regular | Afternoon Class

Case #1: Design of goods and services “J & J Baby Face Powder “

Introduction: About the Company

Finding solid product ideas and selecting which ones to pursue using solid criteria are the
first steps in successful new product development. New product ideas can be developed using a
variety of resources and inventive techniques. From both internal and external sources,
businesses generate ideas. Both staff and research and development are internal sources.
External sources include, for example, clients, competitors, and various other stakeholders. For
the introduction of J&J Baby Face Powder, J&J has conducted research and accumulated data.

Understanding Customer
J & J knew who their customers were when they segmented the market. Customers'
preferences, such as using face powder to renew the skin rather than for "cosmetic usage," were
taken into account by the corporation. They realized that they wanted the powder to be more
compact because their research revealed that some people would store the powder in a
handkerchief or tissue before storing it in their bag for later usage. As a result, they developed
compact powders to satisfy this need.

Economic Change
J&J was familiar with the Philippine economy. According to data from the National
Statistics Office presented in this discussion, J&J Philippines lagged behind all other nations in
terms of its economic sectors but was a significant ASEAN partner. J&J provides its goods at a
degree of economic standing that is both reasonable and calculated. They were the go-to face
powder and the most affordable option for their target market because to their excellent pricing
strategy, which took advantage of the fact that their competitors' prices were higher than their
selling price.

Sociological and Demographic Change

Urban ladies between the ages of 16 and 25 who are from AB and C-households are their
main target demographic. They were able to create an efficient price plan and sales channel for
their goods using the information provided.

Technological Change
J & J was able to introduce a more practical and refillable compact powder to the market,
which is especially useful when used outside the home. Consumers placing powder in their
handkerchiefs and adult ladies refilling their compact powder with Johnson's Baby Powder served
as the inspiration for this concept.
Political Change
Challenges were faced by the organization, particularly in 1989, when coup attempts
peaked. Managers and workers at the time held distinct beliefs. They all agreed, however, that
regardless of their differences in political opinions, the company's principal objective would
always be to strive toward improving the company's business performance by putting their best
effort toward improving J&J's business performance. Politics shouldn't factor into business
decisions, so this was the appropriate decision.

Market Practice
J&J undertook a thorough investigation to learn more about the market and its
customers. They were able to transform consumer preferences into items that fulfilled those
needs based on their results. An excellent illustration of this would be the lack of supermarket
availability of compact powders. J&J profited from this and set their prices competitively for their
goods. The business controlled the market and was able to produce a well-received product.

Case #2: Process decision “Morton Salt “

1. What are some of the possible reasons why the company continues to use the old
processing equipment instead of buying new, more modern equipment?

Ans: Instead of investing in new, more cutting-edge equipment, the corporation may do so
for the following reasons:

- When you take into account the economy (equipment, cash flow,
maintenance, and consultants), integration (cost, time, and resources), and
human (training, safety, and job loss), it may not be financially worthwhile for
the organization to invest in new equipment. The equipment's current
maintenance costs are still reasonable. Included in this is the cost of the
professional labor used to maintain and create new equipment components.

- The capacity of the outdated processing machinery is sufficient to meet the

needs of the moment. Additionally, this company doesn't have any new
products, nor does product design change. As a result, purchasing new
machinery is not necessary. The business has a tool shop with qualified
employees that can maintain and create new parts for the machinery.
Therefore, making a large investment is unnecessary.

- Since the business is in a monopoly market, there is little push from

competitors to make it invest.
2. Determine the approximate number of tons of salt produced annually. Hints: one ton=2,000
pounds, and one pound=16 ounces.

1 ton = 2,000 Pounds

1lb = 16 oz.

Solution:

0.7 * 3,800,000 * 26 = 69,160,000 oz.

69, 160,000 / (16 * 2,000) = 2,161.25 tons.

(2,161.25 / 15) * 100 = 14,408.33 tons annually

3. What improvements can you suggest for the plant?

A. To determine whether buying new types of equipment will be profitable rather than using
the current one with frequent breakdowns and irreplaceable parts, a cost-benefit analysis
is advised. To determine if it would be a wise investment and how long it would take to
break even, a break-even analysis should be carried out. If it is decided to buy new
machinery, staff will initially need to be educated to operate the devices, but in the long
term, it might be more productive. It will provide the present employees more work. To
cut costs overall, they can be used to do other jobs or even deleted.
B. Since quality comes at a considerable price, there are numerous options. First, it is
important to pinpoint problem locations or spots. Once the list of often defective areas
has been produced, calculate the cost and effect of each fault. The one that significantly
affects the plant is the one that needs your attention. The lawsuit mentioned that broken
cans can cause equipment to malfunction. As a result, cans should first undergo a
thorough inspection.