ANSWER 1

Various Type of plant layout concept in operation management are as follow :

Operation management have evolved four major type of layout. These include product layout
process layout, group technology layout and fixed position layout. The explanation of the
layout are under below.
1.Process Layout – A process or a functional layout is an arrangement of resource on the
basis of the process characteristic of the resource. All machines performing a similar type of
operations are grouped at one location in the process layout example, all lathes, milling,
machines, cutting machines etc. in the engineering shop are clustered in their like groups.
Thus all forging will be done in one area and all the lathes will be placed in another area.
In this layout, several products may share a machine to make its full use. The sequential
arrangement of the machine group is generally, but not necessarily made on the basis of
labour operations.
In this type of layout, the process rather than the product has dominating role. The product is
given secondary consideration and is moved for the purpose of operations to the process
section with like machines stationed at a particular point. This type of layout is more suitable
to job order type of production.

2. Product layout – A product layout is an alternative design for the arrangement of

resources. In this case the order in which the resource are placed exactly follows the process
sequence dictated by a product.
In this layout, one product goes through all the machines lined up, in the order required by its
manufacture. The best-known example of this type of layout is seen in motor car production.
To make this layout successful, the workload on the various machines must be balanced. The
process of getting even loading at each stage of production is called line balancing.
In this type of layout, the product is dominating over the process, in the sense that the product
is given the primary importance and the process machine must remain present at a point
where the product needs its services.
Unlike the process layout, the process is given secondary importance in relation to the
product. Product layout is more suitable for continuous flow-production with few items of
production. It does not require frequent changes in machine set up.

Group Technology layout – Group technology layout provide an alternative method for
configuring resource in organization that have mid volume mid variety product portfolio.
GT is a philosophy that seeks to exploit commonality in manufacturing and uses this as the
basis of for grouping components and resource. The implementation of GT is often known as
cellular manufacturing . In cellular manufacturing the available componenet are grouped into
part families. An appropriate measure for manufacturing similarity is used to identify part
families. Corresponding to each part family machine group are identified and the layout is
formed accordingly. Once the part families and the machine group are identified the layout
ensure that each cell has only a certain number of component to be processed.

Fixed Position Layout – Fixed position layout are typically employed in large project type
organisation. There are several situation in which the product manufactured is very bulky
difficult to move and is often made in quantities of one . In such situation the layout design is
ought to be very different. One cannot employ any of the layout described so far.

Objective Of Good Layout Design –

1. Minimization of material handling.

2. Elimination of bottlenecks through the balancing of plant capacities.

3. High material turnover through a shorter operating cycle.

4. Effective utilization of installed capacity so that the returns on the investments may be
maximized.

5. Effective utilization of cubic space in the factory area.

6. Effective utilization of manpower resources through the elimination of idle time.

7. Elimination, improvement or confinement of objectionable operations e.g operations

with bad odour, vibrating operations etc.

8. Elimination of physical efforts required by operative workers.

9. Avoidance of industrial accidents.

Better working conditions for the employees like lighting, ventilation, control of noise
and vibrations etc.

Decency and orderliness inside the plant area.

 Better customer services through cheaper and better product supplies according to the
delivery promises.

Examples for each types can be employed

Product layout
The product layout approach involves setting up the production facilities around the steps
involved in manufacturing the product. For example in the manufacturing process of a
car, the car body goes from one stage of production to the next. Employees at each stage
work on the car and then pass it on to the next stage.

This type of layout gives the firm the flexibility needed to handle a variety of routes and
process requirements. Services that utilize process layouts include hospitals, banks, auto
repair, libraries, and universities.
Process Layout

A process layout is a type of facility layout in which the floor plan is arranged with similar
processes or machines located together. For example, a machine shop with mills located
together, lathes located together, saws located together, and so on, is arranged with a
process layout.
Fixed Position layout
Fixed position layout are typically employed in large project type organisation. Some
example include the nuclear engineering division of BHEL at tiruchirapalli the final assembly
hanger of the Advanced light helicopter manufactured at HAL division at bangalore and the
ISRO launch site at sriharikota.
 ANSWER 2

INTRODUCTION

Inventory control, also called stock control, is the process of managing a company's
inventory levels, whether that be in their own warehouse or spread over other locations.
Inventory control means managing your inventory levels to ensure that you are keeping
the optimal amount of each product.

By using inventory control, we are able to protect against making rash decisions and we have
also avoid the pain and expense that come from overstocking on inventory. As its name
suggests, inventory control helps us to maintain control over our inventory levels so that we
make the best use of our resources and avoid product spoilage and obsolescence.

Concept and Application –

Various inventory control prevalent in the industry some are as follow –

Economic order quantity

Minimum order quantity

 ABC analysis

Just-in-time inventory management.

FIFO and LIFO.

Perpetual inventory management.

FSN analysis

The three of these techniques as applicable to an organisation in the retail sector for
effective management of their inventories are as follow –

Inventory management is the basis of a well-functioning retail business inventory

management  track the lifecycle of inventory and stock as it comes and goes out of your
business.

ABC analysis

The ABC analysis approach to inventory management helps us for prioritize products.
Essentially we will categorize each product under one of the following:

 A (high-value products, low sales frequency): These products have a greater financial
impact on our business, but they are more difficult to forecast because they are not in
high demand. They will require the most attention in your business.
  B (middle-value products, average sales frequency): Predictably, products categorized
as the letter B fall somewhere in the middle in terms of priorities.

 C (low-value products, high sales frequency): Because these products move off the
shelves more quickly and easily, they’re easier to predict. They also generate sales
that are less impactful to your bottom line, so they require the least amount of
attention and maintenance

Any products categorized A are the most valuable and important products, while C falls at the
bottom of our priority list. First, focus on our As. Why aren’t they moving fast enough? Is our
pricing off? Do our customers know about the product? Are we marketing them to the wrong
customer segments? Closely monitor our A products, as forecasting is essential to making
sure we don’t lose money to overstocking. And we definitely don’t want to run out of a
product that we have fewer chances to sell.

Next look at our C products. C products are typically more self-sustainable, but it’s important
to monitor our profits here. Are these products making you money? And is it worth it to keep
selling them?
Finally, B products fall somewhere in the middle. When we are tracking B products, there is
a potential they will turn into A or C products at which point we will need to pay more
attention.

 Fast, slow and non-moving (FSN) analysis

The FSN inventory management system is another classification of what we have in stock.
Similar to the ABC analysis, you’ll go through your list of products and identify them in one
of three ways:
 F (fast-moving stock): These products have sold the most and spent the least amount
of time on your shelves during a certain period of time. we may be able to increase the
price point for these products.

 S (slow-moving stock): Products that have sold more slowly and spent more time on
the shelves during that same period of time. We may want to reconsider the marketing
and pricing strategies behind these products.

 N (non-moving stock): Stock that hasn’t sold at all and is still sitting on the shelves
during that period of time.we may want to consider discontinuing these items.

Economic Order Quantity

The EOQ inventory management method uses customer demand, ordering cost, and holding
cost to determine what the sweet spot is for inventory levels. Also referred to as the optimum
lot size, EOQ is calculated as follows:
A represent the total customer demand over the course of the year, Cp is your ordering
cost, and Ch is the carrying cost.

Break down what each of these components means

Customer demand depends on a variety of factors, both external (seasonality, trends) and
internal (marketing and promotions, pricing strategies). Ordering costs are typically stable,
however, they can decrease as you order inventory in bulk.
And the holding cost, also known as carrying or storage expenses, also vary depending on
how much inventory you have. This includes expenses associated with maintaining the space,
interest on money borrowed to purchase stock, or shrinkage. You may also have higher
insurance rates if the value of your stock is greater. Therefore, the more product you have, the
higher those holding costs may be per product.

CONCLUSION

Final Closing words there is no best technique for staying on top of your inventory. The right
method of your business will depend on your product and process among other thing. By
using such inventory management technique the journey of the RETAIL SECTOR effectively
move according to the plan.
 ANSWER 3 a

INTRODUCTION

Plant location refers to the choice of the region where men, materials, money, machinery
and equipment are brought together for setting up a business or factory. While taking
plant location decision organizations need to consider various factors such as availability of
men materials money machinery and equipment.

Plant location plays vital role in the beverage manufacturing and the specific reason for
the same are as follow –

 Geographical Area

Even if we hated it in high school, geography matters when it comes to site

selection. Geographical logistics actually have the biggest impact on the bottom line

The distance to sources of raw materials and your customers is definitely something to keep
in mind. To manage costs, you don’t want to be too far from either of them. The
surrounding transportation infrastructure is crucially important. Robust access is key both
for transporting materials and finished products to and from the site and for a reasonable
employee movement.

 Environmental impacts

The immediate surroundings of our new site are also important. A neighbouring facility, for
example may produce air emissions that will impact your operations. we will also need to
keep in mind environmental regulations and make sure we can comply in terms of any
expected emissions your baking facility will generate.

Local labour market

This is another big reason we must access the labour market in the city or region we are
considering for a new facility. This includes understanding the unemployment rate
available labour overall economy and other factors. If we require a significant labour force
for example, a site far away from a major metropolitan area or town would not be ideal. 

 Government regulations

Carefully choosing a site for our new facility can help minimize headaches. As we know we
might be able to negotiate certain things when it comes to permitting and zoning. But it is
likely some regulations that just have to live with, so make sure those are known as soon as
possible, in order to not negatively impact our bottom line.

Utilities
Our facility will need adequate electricity gas water and sewer access. Everything we need
in terms of utilities available at our preferred expected site Is the infrastructure in place to
meet our basic needs If not additional time and expenses may be required to make the site
suitable for your operations. Because without the basic utility factor we cannot set up a
beverage plant over there so firstly we have to focus on that only part.

Conclusion

The number one priority is understanding your logistics. That comes first and everything
else flows from it. If the location is too far from raw materials and customer or there is no
available labour in the area, then we are not setting yourself up for success. 

All these above point is the basic need for set up the beverage plant without think about these
specific factor we cannot proceed accordingly and did not meet the desired result.

ANSWER 3 b

Aggregate planning is a planning method in the production process which is also considered a
marketing activity used to determine the required resource capacity to meet expected
demand.

The aggregate planning is done in advance of 6 – 18 months and includes a combination of

sub-contracting, sourcing, outsourcing, employment, labour overtime, amount of inventory
and planned output to match demand and supply cost-effectively
.
Aggregate planning is critical to an organization which wants to optimize its operational
activity because it helps in balancing short term production plans and long term
strategic plans.

First we to have to look into the both strategy level and chase and then decide whether which
one is best suited for NM Ltd because they have major presence in pan india.

 Level strategy

This type of aggregate planning deals with producing goods of similar quantities over equal
duration. This is done to handle a peak in market demand by filling out back orders or by
sending the extra products to inventory. The level strategy is considered a traditional
aggregate planning method that maintains a steady production rate as well as the level of the
workforce by continuing consistent human resources and production in the organization.
It is best suited where the inventory carrying costs are not high and are adopted by mainly
manufacturing companies. The advantages of using level strategy are well-trained workforce
as their changes are not so frequent, experienced workers and a low rate of absenteeism and
employee turnover. An essential disadvantage of level strategy is building up inventory costs
during the lean period when the demand is low.

Chase strategy
The chase strategy of aggregate planning puts its onus on reducing inventory. It keeps pace
with demand fluctuations by varying either actual level of output or the workforce number. It
is considered not as rigid as a level strategy as it allows room for some deviation from the
conventional approach. This methodology helps to minimize waste by receiving goods when
needed. It often leads to stressed employees.

By looking on both strategy production cost, inventory cost, overtime under time and normal
production rate NM Ltd should go for Chase Strategy because we can plan accordingly if the
demand fluctuate we can tackle on their own otherwise in level strategy it is much more
difficult. In Chase strategy we can minimize the waste because we approach when we actual
needed.