Operations Management

Question 1-
Answer-
When picking a business location, whether opening a new office or store or wanting to expand into
new locations, there are several factors that business owners should take into account. the most
important elements a company should take into account while choosing a new site:-
1. Accessibility – It's important to bring into account local transportation options, especially major
roads and highways. If your everyday company operations won't be limited by inadequate
transportation options, there are undoubtedly financial advantages to looking for a more rural site.
Property rental and purchase rates are frequently higher in greater density, more commercialised
locations. Equally crucial is making sure your site is reachable by car, bus, and even train if you
depend on substantial client foot traffic. Don't forget about your workers either, since a decent
location is frequently a crucial element in attracting the appropriate individuals to your
organisation, particularly if they need to weigh the benefits and drawbacks of many job offers.

2. Safety- It may surprise you to learn that your location might affect your likelihood of becoming a
victim of crime, which can effect your insurance costs as well as the additional security
precautions you may need to take to keep your property secure. We can all agree that while
making business decisions, information, intuition, and probability are all used, along with a little
bit of chance. However, a key component of the decision-making process is understanding the
likelihood of crime in the regions you are considering. Government crime data may be used to
guide businesses in choosing the best location for a new store, office, or warehouse. You may
better plan and take the necessary safeguards by being aware of the hazards associated with
probable criminal conduct.

3. Competition- Your success could be greatly impacted by how close you are to rival companies.
Could they be advantageous to your company or a hindrance? Knowing your local rivals'
offerings and where they are located might help you pick the best location for your company. If
there is too much competition, it can be an indication that you should broaden your search to a
different area. The best strategy to get consumers rapidly and create a presence in a new place in
a reasonable amount of time is to choose a region that already has a ripe market if one of your
offerings is unique or offers some sort of fresh innovation.

4. Business Rates - Cash flow is important because it affects whether a firm can survive and pay its
debts. To make sure you can afford the property, it is crucial to examine the typical business rates
in the region, including rent, energy costs, and taxes. Before agreeing to a site, simple hidden
charges like deposits and if you need to pay for parking should be eliminated. A commitment that
is beyond of your resources can be avoided by estimating the location's cost of living.

5. Skill base in the area - Check the local skill base to see if it can meet your needs. Likewise,
consider employment rates. It is ideal to go where there is a strong pool of talent if you depend on
competent personnel. Since employees are sometimes a company's greatest asset, picking a
location where the necessary skill is absent might be the beginning of your company's demise.
 Some employment companies would gladly give you CVs without charge so you can get a feel
for the market; they only charge you if you choose to interview and hire someone. As an
alternative, you may easily determine the calibre of workers in a specific location by advertising a
free job on an internet job board.

6. Potential for growth - Will the location be able to handle increased business or demand?
Moving locations is a major disruption that may be expensive and time demanding. It must be
determined if the chosen place will be used only temporarily or if you intend to occupy it
permanently. Therefore, a location's adaptability may be a crucial consideration when
determining if the space is appropriate for your company's demands.
A Perfect business location is different for every business, Healthcare setup like Hospital can also
refer to this decision criteria and some other criteria. Imagine a hospital that offers real-time care for
medical crises. A facility that is close by and accessible in a short amount of time? A hospital where
the on-call doctor shows up on time to take care of the patients? They all have the same quality: having
the ideal location. Even though you may believe it's simply a piece of land, location is crucial for
effectively starting or growing a healthcare business. The location of a hospital will have an effect on
practically every element of its operations. The following are some justifications for why the location
of Hospital is essential:
1. It impacts how accessible you are.
2. It influences your operational expenses.
3. It determines your manpower possibilities.
4. It controls the state rules and legislation you must follow.
Some factors that may influence the existence of a Hospital :-
1. Location-
(i) Area of hospital should be in decent environment and not at much crowdy area.
(ii) Proximity to other healthcare systems like lab, medical, X-rays etc.
(iii) Visibility of hospital building should be consider. Regular inflow of public from like
temple, school etc. are led to visibility.
(iv) Commute time and transportation nearby should available.
(v) Accessibility must considered
(vi) Upcoming Area/ Old Area
2. Demographics – Age and average income of local area where the hospital is setting should
considered.
3. Competition- Nearby competition and Doctors with similar specification should also get into
knowledge .
4. Facilities of building like Parking, elevators, open area out side the building must also take in
account.
5. Other factors like Water supply, Drainage, Electricity, power backups should also consider
while choosing a location for a Hospital.
Question 2-
Answer- Plant Layout- Industrial and service companies include the physical placement of various
system resources in their layout plans to improve operating system performance and improve customer
service. Depending on the production organization, a machine shop typically requires more than 200
machine tools of various types. As with hospitality businesses such as hospitals and hotels, many
assets need to be physically located. Effectively planning your corporate structure can help you
determine the ideal locations for your various resources. Operations managers use a set of tools and
procedures called layout planning to help determine where to allocate resources and assess the impact
of potential alternate sites.
The four main types of plant layout are as follows:
1. Process Layout
2. Product Layout
3. Fixed Position Layout
4. Group Technology Layout
1. Product Layout-
• Machines and equipment are organised in a product layout according to the order of the
manufacturing processes needed to make the product.
• Without turning around or deviating, the material is transferred consecutively from one work
station to the next.
• Due to the fact that machines are typically grouped in straight lines, it is also known as line
layout. On one end, raw materials are supplied, while on the other, the final product is
removed.
• One machine's output becomes the next machine's input.
• It is a collection of devices operating in concert. A product layout may take the form of a
straight line, a U-shape, or a circle.
• Examples include food processing chains, cement facilities, rolling mills, sugar refineries,
paper mills, and paper mills.
Some advantages of product layout are Low cost of material handling because of the short, direct road
and lack of detours. operations that are uninterrupted and free of bottlenecks. Continuous work flow
enables the manipulation of materials by machines. Less money is spent on inventories and ongoing
projects. Semi-skilled personnel can operate special purpose machinery. Maximum floor space
utilisation and reduced work-related congestion. less time spent processing. Simple and efficient
production control and job inspection procedures. lower unit production costs.
2. Process Layout-
• According to their function, comparable machines are grouped together in a process
architecture.
• Products are moved between equipment groups in the sequence of the needed processes.
• The necessary work is distributed among the machines in accordance with the loading
schedules, with the goal of making sure that each machine is completely loaded.
• It is utilised when the operations system must manage a broad range of items in only modest
quantities.
• Functional Layout is another name for it.
• It functions best in intermittent conditions.
• This configuration includes general-purpose machinery.
Machines and equipment demand a lower initial capital outlay. Due to a machine's independence from
one particular product, there is a better level of machine usage. There are hardly many overhead
expenses. The output of a range of items can be more easily accommodated by changes in product
design and volume. One machine failing does not mean that all work must halt. More specialised and
effective supervision is possible. There is more freedom and room for growth. Low setup and upkeep
expenses. These are some advantages of process layout.
3. Fixed Position Layout –
In a fixed position plan, workers and equipment are brought to the material, which stays in one
location, and the result is assembled there. This style of layout is employed in the construction of
ships, aircraft, and large-scale structures, among other things. To guarantee continuity of work, it is
feasible to allocate one or more qualified personnel to a project from beginning to end. There is the
least amount of material mobility. The ability to adjust products and processes in any way is
maximised. With the same layout, other projects that are very different can be undertaken.
4. Group Technology Layout-
• The advantages of both forms of layout are combined in group layout, which blends process
and product layouts.
• All three processes—the intermittent process (job shops), the continuous process (mass
production shops), and the combination process—might be necessary in some manufacturing
units.
• Only a product layout, process layout, or permanent location layout exists in the majority of
businesses. As a result, a mix of the product and process layout or another combination is
typically encountered in manufacturing concerns where a variety of items are produced in
repeated quantities.
• Industries where components are made and assembled typically use both process and product
layouts, with assembly sections frequently using the former.
• The equipment used to make soap in a soap manufacturing facility is organised according to
the product line concept, while auxiliary services like heating, glycerin production, electricity
generation, water treatment facilities, etc. are organised according to functional needs.
As far as Restaurant perspective, It is important to remember that a Process Layout is the most
efficient way to organize the work involved in running a restaurant.
A process layout is an arrangement of resources on the basis of the process characteristics of the
resources available. Each department in a Process layout is typically organized into functional groups.
Thus, all the requirements of a restaurant like Amount of Space Required, Service area size and
design, Dishwashing area size and dish machine capacity, Types of cooking equipment, Equipment
capacity, Size of dry and refrigerated storage areas could manage easily.
Process layout provide some good points like Flexibility, Cost reduction, Task diversification,
Functionality protection, full utilization of equipment and space, better supervision which can make
ease in running a Restaurant smoothly. Some bottlenecks of process layout are High space
requirement, High investment in inventory, Skilled labor requirement etc. which can be neglected.
Question 3a-
Answer- Operations manager - In practically every industry, operations managers are essential
members of upper-level management who ensure that the firm is operating at its peak efficiency. They
keep a watch on several departments inside the business, guaranteeing production and efficiency while
looking for ways to save expenses. They supervise other important departmental leaders and mentor
teams of workers while they accomplish their particular jobs to meet organisational objectives.
Operations managers typically collaborate with support employees in an office setting. Because of the
duties they are in charge of, they frequently put in extra time and work on the weekends. Depending on
the particular business, they could also need to work on-site. As their individual performance reflects
on the company, this job necessitates handling numerous stressful situations. The managers'
employment may be terminated if they don't demonstrate improvement in the operations and goals of
the business.
Operation manager competencies
A effective operations manager must have the following abilities:
Making choices
It's crucial to have good decision-making abilities if you want to manage operations. You evaluate a
number of variables impacting the firm to make wise judgments. The operations and performance of
the business are impacted by the strategic choices you make.
Budget management
Interdepartmental and corporate budgets are under the control of operations managers. They oversee
financial flow and make important choices related to it. Making predictions, keeping tabs on earnings,
and scheduling manufacturing expenses are all part of this profession. Budgets should be planned by
an effective operations manager in accordance with the objectives of the business.
Managing time
An operations manager ensures that the team's schedules are optimised to match project timetables in
order to utilise the company's resources as fully as possible. To ensure that goals are met in a useful
way, they are conscious of the employees' working hours.
Adaptability
Managers of operations operate in a changing setting. They must be quick to act and flexible in
response to changing conditions. An operations manager needs to be adaptable and open-minded in
today's changing world.
Management of personnel
Being in charge of the whole workforce of the organisation is a requirement of the position of
operations manager. The expectations of each employee are addressed while increasing productivity,
as an operations manager, you make sure. In order to monitor the team's development, evaluations are
another task you have been given.
Conclusion-
To ensure the success of their business unit and the organisation as a whole, collaborate with all other
divisions within the company. possess the ability to develop, record, and put into effect best practises
and standard operating procedures for a variety of operations. Ideally, possess a degree in engineering,
a business or accounting degree, and a strong sense of responsibility. possess a strong sense of logic
and quantitative aptitude.
Question3 b-
Answer 3b –
Any product must be supplied by the manufacturer in accordance with the demands of the customers.
But the product needs to have a certain set of traits and features. Customers are the ones who
ultimately decide whether a product is of the expected caliber. Only the qualities of a product are
determined by the various quality criteria that customers look for in a product to meet their needs.
. 1.Performance
Performance describes the key functional elements of a product. Performance for a car would
encompass features like acceleration, handling, cruising speed, and comfort. Because this part of
quality comprises quantifiable characteristics, brands may often be evaluated objectively on certain
performance facets. Rankings of overall performance, however, are more challenging to create,
particularly when they include features that not every consumer need.

2. Features
The "bells and whistles" of products and services, or the secondary components of performance, are
often those qualities that enhance or complement their fundamental functionality. It might be
challenging to identify the boundary between key performance parameters and secondary aspects. The
most important thing is that features involve quantifiable, objective attributes; subjective preferences
do not influence how these attributes translate into quality differences.
3. Reputation
This factor shows the likelihood that a product may malfunction or fail within a given time frame. The
mean time to first failure, the mean time between failures, and the failure rate per unit time are some of
the most used reliability metrics. These regulations apply more to durable items than to those that are
eaten immediately since they call for a product to be used for a predetermined amount of time.
4. Compliance
Conformance refers to how closely a product's operational characteristics and design adhere to
predetermined criteria. The prevalence of service calls after a product has been delivered to the
customer and the defect rates in the manufacturing process are the two most popular indicators of
failure in compliance.
5. Durability
Durability is a metric for product life that takes into account both economic and technical factors.
According to technical definitions, durability is the amount of use a product can withstand before
degrading. An alternative definition is the amount of use a product receives before breaking down and
necessitating replacement over ongoing maintenance.