INSTITUTE OF MANAGEMENT

NIRMA UNIVERSITY

Operational Management – I
(MFT4CCOQ01)

Product Development and Its

Operational Dimensions
Group Assignment – 1
MBA FT 2021-23

Submitted By: Submitted To:

Prof. Praneti Shah
Shivani Jain (211135)

Avneesh Bhale (211097)

Rajshekhar Patil (211126)

Shreyans Jain (211139)

Part I
1. Develop a new product, which you would like to take as
your business plan

Smart Trolley- Trolley embedded with RFID scanner, to

automatically scan and bill the product and other sensors to
follow the path to the location of the desired product.
2. Give description of the newly developed product

Smart Trolley – Smart Trolley is a shopping trolley with sensors

embedded at the top of the cart to scan and bill items in a
supermarket. It also follows the path to the product the customer
types or speaks.
The embedded RFID scanner at the top of the cart scans the
RFID code of the product the customer puts into the cart. It also
cancels the item when the customer removes it from the cart.
The cart also keeps a list of items in the cart and generates a bill.
The bill can be paid after scanning the UPI ID displayed on the
cart or the debit/credit card reader embedded on the cart.
The cart can also follow the path to a product that the customer
has typed into its screen or said it out loud into a mic embedded
beside the screen. The cart will have pre coded assignments of
the products in its memory and follow the path communicating
between sensors embedded in the floor and the cart’s own
sensors.
Both will help increase customer convenience and save their
time. It also helps the shopping malls reduce the number of
employees.
Material – Trolleys now a days are made of either fully metal
(steel because of durability) or a metal and plastic hybrid.
PART II
Q1. Develop the strategic competitive dimension that you
would like to target with reason.
Strategic competitiveness is achieved when a company successfully
integrates a value creation strategy. The key to having a
comprehensive value creation strategy is to adopt a holistic approach
that includes a business strategy, a financial strategy, a technology
strategy, a marketing strategy and an investor strategy.
Business Strategy - In the current scenario, the majority of the
population is the working class who have no time to queue at the
mall, markets, etc. We are introducing an improved shopping cart
which will automatically generate the invoice and payment options. In
addition, this cart will take you to the section where the product is
located, which will help us save time in search and many other
features. Investing in this project will help the business in the long run
because over the next few years people will prefer this product which
takes less time.
Financial Strategy - For new and established businesses, establishing
a strong and clear financial strategy that sets the guiding principles for
all financial decisions is essential. We focus more on product quality
with efficient production cost which can be achieved by using low
cost but good quality raw material purchases locally.
Technology Strategy - The unique feature of our product is that the
cart will bring you to the section without touching the cart and it will
also show you the current schemes or what will be there in the next
few days to increase the number of customers.
Q2. Suggest the appropriate manufacturing method with
detailed justification based on advantages and disadvantages.
The production method that we choose is mass production.
Mass production (or warehouse strategy) is the practice of the
production of large volumes of identical goods compared to them, a
fairly low price for a large number of customers. Were in anticipation
of future demand (according to forecasts) and is stored in the
subsequent sale inventory.

Advantages
High level of precision - basket production by mass production will
bring precision thanks to large-scale production. There, mass
production is based on the repetition of basic and auxiliary operations
that work together mechanically to create a final product that the lack
of skilled workforce or the specialization needed to create products, in
turn, Provides incredible precision and low margin.
Fast performance, since these processes include advanced
technologies and transportation systems for the optimization of rapid
production, mass production offers the fastest rates of production of
any manufacturing procedure.
Efficient Economic Mass Products As an economic process leads to
fewer employment costs, hardware costs effectively use resources by
reducing the total cost of the released unit.
Upper-level efficiency - Make a large volume in less time can lead to
a strong rotation of the staff.
Disadvantages
If employees often do not turn and work on a single product every
day, it can certainly lead to inefficiency in some aspects of the
production process, such as quality control.
The initial costs put in place of a mass-production plant usually falls
on a much higher cost than the simple creation of separate products.
The inflexible demand of consumers as mass production by definition
focused on creating a product in a mass number, it is difficult to adapt
to the eternal requirements of the customers if the request of this
product suddenly decreases.
It is difficult to restructure production since mass production is a
system of machines operating together in unison, a change in the
appearance of the production line can have great financial and
logistical consequences; Especially up to the current trend of creating
more environmentally friendly process.

Q3. Identify the requirements to set up the plant to

manufacture the product
The requirements to set up the plant to manufacture the products-
 Skilled labour needs to be there - as it is a product that has a lot
of technology embedded in it, a skilled workforce is needed to
operate the machines involved in manufacturing
 Uninterrupted power supply - this product has a very low level
of customization and so it will be manufactured on a large scale
with the help of machines. These machines would require a
constant supply of power to operate
  Raw materials - Trolleys and electronic circuit boards need to be
manufactured and so a site needs to be selected which is near
and accessible to the place from raw materials can be acquired
easily.
 Climatic conditions - Since a lot of electric machinery needs to
be manufactured a cool climate is preferrable with little amount
of rain
 Free land available to scale the facility is needed, if there is any
such a need in the future
 Proper transportation facilities like roads, railway or ports need
to be nearby to deliver finished products and receive raw
materials
 Lenient tax regulations and other economic incentives should be
provided by the government—since there is a huge investment
involved, it is best if there is some relaxation given by the
government on tax matters and land rents so that profits can be
maximized.

Q4. List down the factors important to meet the requirements

and assign weights to all factors from 0 to 1 based upon its
importance (justify the weights with reason)
Surajpur,
Location factor Weight Greater Noida Vadodara, Gujarat
1 Availability of Labour 0.2 0.2 0.2
2 Availability of transport facilities 0.1 0.1 0.1
3 Availability of power 0.25 0.25 0.2
4 Suitable climatic conditions 0.01 0.01 0.14
5 Availability of Raw materials 0.2 0.2 0.1
6 Availability of government incentives 0.04 0.04 0.25
7 Availability of free land nearby 0.2 0.2 0.1
TOTAL WEIGHTS 1 1 1
Justification
The manufacturing process will require both skilled and unskilled
labour in ample amount, so the weightage is 0.25.
The importance of ease and quick transportation has increased many
folds in this fast-moving world. So, a weightage of 0.15 is given.
To run a mass-producing manufacturing unit power requirements are
high and constant, hence a weightage of 0.2 is given.
Climatic conditions would have very little affect on the selection of
location and hence the weightage is a low 0.01.
Timely availability of raw materials is important, as the whole process
would come to a standstill without it. So, a weightage of 0.2 is given.
Government incentives have some effect, but do not play a huge role.
Hence, a weightage of 0.04 is given.
Availability of land is an important factor as a huge amount of land is
needed for setting up a manufacturing unit. Hence, a weightage of 0.2
is given.

Q5. Choose appropriate site?

We're close to companies that make trolleys, batteries, digital

displays, RFID scanners and GPS
sensors, all of which will be used in our product. At the same time,
the plant location must fulfil
the requirements for basic amenities and emergency services in the
surrounding regions, such as water and electricity, hospitals, and fire
departments, as well as viable transportation services.
The appropriate site for the selected site is Surajpur, Greater Noida,
based on the aforementioned characteristics.

Reasons:

● Availability of free land nearby: Because the chosen location is in

an industrial area, there will be adequate room to establish the
industry and it will be close to competitors in the same
category. This will assist in staying current on new advancements in
the relevant
industry, as well as forecasting consumer expectations and demand.
● Raw material availability: Raw materials are available in the
immediate vicinity, that is,
inside Noida and its environs.
● Land cost: Because the location was picked in an industrial district,
the cost of the land is
inexpensive and feasible.

● Set-up cost: The cost of setting up a plant will be less due to the
availability of all the basic requirements like materials for
construction, labour, etc. This will help eliminate
extraordinary costs for material and labour transportation.

List of probable suppliers who may be able to supply us

with raw materials for our product.

Shopping Trolly
● Beeco storage systems - Noida
● Racking India - Greater Noida
Battery Manufacturers
● Elecorev Energy Private Limited - Ahmedabad
● Eveready Industries Limited - Gujarat, Uttar Pradesh,
Maharashtra

Digital Displays
● Verma Global - Delhi
● Lexa Stream - Gurgaon, Haryana
● Osel Tech - Noida

Gps Sensors
● 3GB Technology Private Limited - Jaipur
● Pictor Telematics Private Limited - Delhi
● Ubeninc Technologies - Noida

RFID Scanners
● Eco Track Systems - Delhi
● Identium Tech Solutions - Delhi
● APK-ID - Noida

Reasons to support the selection of the nearby manufacturer

1. Closeness to Suppliers - Proximity to suppliers ensures a

quick and timely supply of raw materials, which is
critical for the successful operation of a manufacturing
plant producing items in big quantities. Furthermore,
bulk orders would suffer lower transportation costs,
which is cost-effective. Furthermore, transportation
costs will be cut, freeing up funds for other aspects of
the company's operations. When raw materials arrive
 quickly, the rate of manufacturing increases, allowing for
speedier product creation and customer availability.
2. Easy Accessibility - The location is chosen to suit the
requirements of quick accessibility,
Following for convenient transportation of raw materials
and completed items to and from the production plant
3. Availability of basic facilities - The availability of basic
amenities such as water, power, telecommunications,
and emergency services is good at the chosen location,
supporting the plant's seamless operation. Furthermore,
because the production plant is in an industrial area, an
uninterrupted power supply will be advantageous
4. Warehouse and storage - Because the land cost is lower
in the chosen site than in others, additional warehouses
and storage facilities can be purchased. They are also
close to the manufacturing factory, which will save time
and money.
5. Availability of Labour - Because the manufacturing
factory is in an industrial district, skilled labour will be
readily available.

Q6. Develop a summary table of positive factors and

sacrificed factors of the suggested site?

Positive factors:

1. Raw material: Proximity to suppliers for raw materials

(Carbon fibre, batteries, cables and wires, cloth etc.)
2. Uninterrupted power: As the manufacturing plant is
located in the industrial area, uninterrupted power will
be there.
3. Infrastructure: Availability of good transportation, easy
connectivity and basic services such as water and
electricity.
4. Storage and warehousing: Reduced land cost will lead to
spacious storage and warehousing.
5. Climate: As the weather in Vadodara is less humid, the
cost of maintaining the appropriate temperature in the
plant is less.
6. Environmental benefits: Since the plant is located in a
sparsely populated area, the ill effects of the production
on the health of people will be less as compared to other
favourable locations.

Sacrificed factors:
1. Limited availability of skilled labour will be a constraint
at the selected site.
2. As Noida is a tier-2 city, therefore acceptability of the
product by people will be difficult in the initial stage
when compared to tier-1 cities.
3. Technical assistance with machinery Because the
machinery used in the manufacturing process is highly
complicated, it will be difficult to locate professionals to
maintain the machinesin Noida.
4. Product distribution Because Noida is in the far west of
the country, PAN India distribution of the goods will be
prohibitively expensive.