Course: Operations Management - Internal Assignment December 2022 Examination

Answer No 1

Introduction

Despite the increasing pace of technology and digital enterprise, there will be almost always
be a requirement for a bricks and mortar presence whether that’s to house your staff, store
shock in a secure warehouse or provide a physical brand presence for your customers.

There are many things for business owners to consider when choosing a business location,
whether setting up an office or a shop for the first time, or looking to expand into new areas.

Besides the core team members that are involved with the start-up one of the most important
elements affecting the initial success or failure of a business is as the saying goes, ’location,
location, location.’ While modern entrepreneurial endeavors are less restricted by geography
with the advent of technology and the expanding interconnectedness of the global market,
location still remains an important factor.

One of the biggest challenges in finding a suitable location for your facility is that it might be
impossible to find one location that is arguably better than other options.

Therefore, while starting a new business, the various decision criteria for deciding a location
for a healthcare business setup are as follows:

a) Assess Accessibility –
Accessibility is the key – your location can change your sales by as much as 30 –
40%. Is your location nearby a supplier and conductive to drop-offs and or pick-ups?
Is there convenient parking nearby for clients? Take the time to monitor the facility
at different periods of the day so you can develop a good idea of how the location
functions and how your clients interact with the location. As with most elements of
entrepreneurship, business location requires in depth research. However, if you invest
the time and make sure to dot your “i’s” and cross your “t’s” you are sure to reap the
long-term rewards.

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b) Create a clear vision –
Planning ahead can make or break your business. It is imperative that you take the
time to develop a systematic and realistic vision of your start-up- detail the strengths
your currently possess, what your weaknesses are (missing team member with
technical expertise, personal budget, location etc.) and envision where you see your
company going (expanding into new markets or developing new products etc.) Time
is a resource and it is important to spend it wisely. Using some of your time to create
vision for your company will ensure that you can avoid future mistakes, such as poor
location choice. A mistake is something impossible to overcome for a small business.

Identify your overarching goals before beginning the design process prevents having
to retrofit later.
Questions to ask include the following:
 What services will you offer your location?
 What metric of performance will be used to determine if a location is
successful? Is there a minimum number of visits or a revenue threshold you
need to achieve?

Once you understand your goals, you can identify the available real estate that
best allows you to meet those goals and provide clear direction during the design
phase.

c) Demographics –
To paraphrase another famous saying, ‘Go where the people are’ Regardless of where
you set up your hospital, there should be constituency of potential customers in your
local area. Not only will this influence how you market your business, but could also
affect your hiring pool if you need to bring on additional employees as your business
expands. There are two important angles to the issue of demographics. First consider
who your customers are and how important their proximity to your location. Then
take a look at your community. If your customer base is local, does a sufficient
percentage of that population match your customer profile to support your business?
Does the community have a stable economic base that will provide a healthy
environment for your business? Be cautious when considering communities that are
largely dependent on a particular industry for their economy a downturn could be bad
for business.

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d) Know your competition –
Regardless of what industry you are in, there will be always other companies who
will get trying to get a piece of same market share. It will pay off in the long term to
conduct research on their business model and determine what you can do differently
or better to convince their customer base to choose your product over theirs.
We need to determine how many providers are in the area, how big their practices are
and what their specialties are. Finding a space that’s well known as site for medical
practitioners can work to our advantage since people are accustomed to travelling
there. “It’s a lot easier to tap into an existing behavior they to create a behavior all by
itself.”

e) Go with Growth –
Planting a business seed is a risky endeavor-you have to nurture your idea and provide
it with constant attention and support. Before you undertake such a challenging
venture, you should investigate whether the local market supports small business
growth. Factors in the community such as quality of life, startup growth etc. can have
a huge impact on the financial success of a starting venture.

f) Building -
The state of building and its exterior also plays an important role in determining the
location of the practice. Following are the factors to be considered for the healthcare
setup:
o Exterior – The exterior appearance is your first impression and should,
therefore project and maintain a manner which attracts and invite patients to
the clinic.

o Parking – Maintaining adequate parking is vital, as patients will simply go

elsewhere if their journey is frustrated by a lack of parking options. A secured
or monitored parking area will provide an extra level of comfort for patients
that their welfare is being considered both inside and outside the building.

o Elevator – If your clinic is above ground level, an elevator is a must-have

feature. Full Stop.

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g) Interiors –
o Aesthetics - The comfort and aesthetic appeal of the waiting area can’t be
overestimated, as this will form the basis of the patient’s entire clinic
experience. Adequate seating, proper ventilation and entertainment should be
integrated, with, colours, textural graphics and children’s play areas helpful
in retaining composure and attentiveness from patients who may be in varying
levels of discomfort. See our page on our medical clinic fitout service for
more information

o Washroom - Your washroom should be well signed and easily accessible. A

high level of cleanliness is imperative, and component functions should be
kept in good working order.

o Size of the clinic - It is advisable to choose a clinic layout which is at least

20% larger of your current requirement in terms of size. When you practice
becomes popular and you want to include more seating or perhaps another
consulting room, the extra space will come in handy and will mitigate another
relocation or an expensive refurbishment.

Conclusion –
A final factor to pay attention to is the closer the products are to the customers, the
higher the market value. Planning future expansion, relocating to new offices,
opening new shops in right location can mean many things for the business. The main
criteria while planning a location we should always ask ourself that, “What is the right
location for business?” and “What is to be considered while selecting the place for
business?”
Hence, all the above factors are important and need to be kept in mind while looking
for a healthcare setup. It is also very likely that you might not find a place that scores
well on all of the above criteria, make sure that you make compromises wisely.

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 Answer No 2

Introduction -

Plant Layout is defined as ‘The plan of or the act of planning, an optimum arrangement of
facilities, including personnel, operating equipment, storage space, material handling
equipment and all supporting services along with the design of the best structure to
accommodate these facilities’

There are three basic types of plant layout and these correspond to the three types of processing
systems. Product layouts are most conductive to continuing processing, process layout is used
for intermittent processing and fixed position layouts are used when projects require layouts.

1. Product Layout –
Product Layout is used to achieve a smooth and rapid flow of large volumes of products
or customers through system. This is made possible by highly standardizing products
or services which require highly standardized, repetitive processing operations. A job
is divided into series of standardized tasks, permitting specialization of both labour and
equipment. The large volumes handled by these systems usually make it economical to
invest substantial sums of money in equipment and in job design. This layout is for

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 product focused systems and are popularly known as assembly line. The work centers
are arranged in in job systems. The raw materials entered at one end of the line and
individual operations are performed in the pre-fix sequence and get converted to final
shape. The work in progress and material handling is minimal.
Following conditions favor the selection of product layout:
o High Volume of production.
o Reasonably stable product demand.
o Standardization of Product.
o Uninterrupted supply of material.
o Holding up of inventory is possible.

Product layout achieve a high degree of both labour and equipment utilization, and this
offsets the high equipment costs, the investment in work in progress is minimum because the
items move quickly from operation to operation. This also reduces congestion and ensure
smooth flow of items in the shop floor. Overall supervision and control are effective.

2. Process Layout –
These layouts are designed to facilitate processing items or providing service with
present variations in their processing requirements. The processing units are organized
by functions into departments on the assumption that certain skills and facilities are
available in each department. Similar equipment and operations are grouped together.
For example- turning, milling, foundry, heat treatment. These layouts known as
Functional layout is process focused system and are used widely in manufacturing and
service sectors. The use of general-purpose machines provides flexibility necessary to
handle a wide range of processing requirements. Workers who operate the equipment’s
are usually skilled or semi-killed. The example of process layout includes hospitals,
colleges and universities, banks, airlines and public libraries. Hence this layout is more
suited for low volumes of production and particularly when the product is standardized.
It is economical when flexibility is the basic system requirements.

3. Fixed Layout –
In this layout, the material remains in fixed position, but machinery, tools handling
equipment, workers are brought to the place the material. This is in contrast to both

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 product and process layouts. Such a layout may be preferred when the equipment and
the machinery is small in number and size and where the workmen are highly skilled to
perform the various small jobs on the product. Fixed Position layouts are used in large
construction projects, ship building, air crafting, manufacturing etc.

Further as required in the question regarding the restaurant layout format is explained below:

A good restaurant layout can truly make a difference in your restaurant. In terms of restaurant
management, it not only makes things easy on your staff but looks appealing to the customers
and works well during all hours of business. It should be flexible, yet have standards that you
and your staff can follow. It should be your primary tool for success and a backbone for your
servers that allows service to flow at an even and controlled pace. Below are several key
components in creating the most effective restaurant floor layout for your restaurant

A commercial kitchen’s layout can determine how smoothly the restaurant functions. When
the kitchen is designed strategically, it enables the back of house team to work efficiently and
produce high-quality meals consistently. A successful commercial layout is easy to use, meets
the restaurant’s needs and enables your service staff to deliver an amazing restaurant
experience.

The components of a functional commercial kitchen and have thought about elements such as
safety and ergonomics, so the best layout applicable for Restaurant format is Assembly Line
layout plan.

The Assembly line configuration consists of a central row or island that starts with food
preparation and ends with a completed item that is ready to be taken to your guests.

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 Benefits of Assembly Line layout

 The commercial kitchen layout facilitates the production of lots of the same type of
dish over and over again. The assembly line works best with multiple cooks who are
each responsible for one part of the food production process.
 This layout is also great when serving many people fast, such as cafeterias, fast food
or fast casual where the ease of reach can make work quickly. The work transition can
be seamless until the final dish is completed, packed or handed over to the customer.
 Food businesses that don’t have wide range of dishes on their menu can benefit from
an assembly line layout. Service can be straightforward and fast if the same types of
dishes are replicated repeatedly in a systemic fashion.
 Accommodates multiple workers at once, each focusing on an individual task.
 Ideal for high-volume, quick service restaurants with limited layouts and systematic
preparation.
 Seamless flow of ingredients from one station to the next creates kitchen efficiencies
that allow for faster service.

Examples –

Fast-casual chains like Chipotle and Sweetgreen use an assembly line configuration in the
customer-facing side of their kitchens.

Conclusion –

Therefore, the assembly line layout is best for fast food and fast casual restaurants with
systematic preparation like Chipotle or Sweetgreen.

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 Answer No 3.a

Introduction -

In the given scenario we observe that ‘The education sector is a good example wherein the
operations involve the involvement of the core teaching function to be coordinating and
working in sync with other departments’ with reference to the education sector

Operations Management in its simplest forms, is the control of corporate operations for the
purpose of achieving objectives, increasing productivity and maximize profitability. Operation
management is a branch of management that oversees the entire production timeline of a
service or product from the input stage to the finished stage. This includes planning, organizing
and supervising operations, manufacturing and production processes and service delivery to
produce the desired outcome of a high-quality product or service that satisfies customer
demands. Operations managers handle variety of daily tasks for the business. They also make
sure that resources are used as efficiently as possible.

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With reference to the education sector the aspects of operations in an educational setup are as
follows:

The roles and responsibilities of an operation manager is the most important part of the job.
Most organization outline the roles and responsibilities of an operation manager position in the
job description.

Here’s look at some of the major roles and responsibilities of an operation manager

❑ Analyzing data to calculate the cost-benefit ratio.

❑ Preparation and compilation of reports/documents of activities, Managing ERP and
other MIS and making accurate data available as required, Formal communication to
companies and students as required.
❑ Manage all special events, field trips, cafeteria, transportation, maintenance,
playgrounds and cleaning.
❑ Coordinate with the management to maintain a positive, safe learning environment for
students by enforcing the education discipline plan.
❑ Organizing events to increase staff motivation and engagement.
❑ Locating problems in the company’s supply chain through quality control checks.
❑ Establishing and monitoring employee schedules.
❑ Monitoring the overall budget of the business as well as departmental budgets.
❑ Establishing objectives for increased output and improved efficiency.
❑ Resolving disputes between departments about resources.
❑ Examining the company’s resource management and looking for ways to boost
employee productivity.
❑ Resolving inventory management concerns.
❑ Ensure appropriate administration and management systems and processes are
developed and implemented and all necessary equipment provided for all the delivery
of the contract to a high standard and including across all offices.
❑ Ensure the delivery mechanisms are in place of grants, sub-contracting, recruitment and
engagement of advisers, web-based resources, travel and reporting.
❑ Ensure the quality management and administration and finance manual is developed
implemented and maintained.
❑ Lead the preparation of review and revision of operational guidelines for effective and
efficient program management.

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 ❑ Support the coordination and preparation of the Annual Plans, Budget and reports.
❑ Overview the preparation of clear and up to date financial records of expenditures and
commitments outstanding acquittals and ensure annual audits are carried out on all
accounts.
❑ Support a culture of team work, learning and results-based management among
colleagues and counterparties.
❑ Enquire staff are appropriately supported in undertaking their work that their
performance is regularly appraised and the appropriate disciplinary action is taken if
required. Ensure the field-based staff are administrative supported.
❑ Help ensure annual audits are carried out.
❑ Develop maintain and review project management systems. Monitor and
anticipate/identify project performance issues and address.
❑ Manage project cash flows and forecasts.
❑ Prepare annual budgets for their operations based on previous year’s expenditure, seek
approval on budget from reporting manager, monitor and control budget, take
corrective action if required.
❑ Plan and facilitate visits to centers and organization. Organize and analyze feedbacks
and develop process improvement measures in consultation with senior faculty.
❑ Preparation and compilation of reports/documents of activities, managing ERP and
other MIS and making accurate data available as required, formal communication to
companies and students as required.
❑ Allocate responsibility within team and monitor performance and provide guidance as
required. Resolve grievances of various stakeholders.

Conclusion –

Hence all the listed above are the role of operation manager in their interface with other
functions in the institute.

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 Answer No 3.b

Definition of Quality & List

Quality is the degree to which an object or entity (E.g., Process, Product or service) satisfies a
specified set of attributes or requirements. The quality of something can be determined by
comparing a set of inherent characteristics with a set of requirements. The critical difference in
their approaches stem from their definition of quality. For instance, Deming’s emphasis on
process improvements and use of statistical process control charts clearly point to a definition
of quality that is linked to specification.

Quality is defined as the measure of excellence of product. In other words, how well a product
satisfies its customer and has the product or service meet the demand or requirement of the
market or not is known as quality of product.

It is strategic management tool that can be used as a framework to analyze characteristics of

quality.

The various dimensions of quality in operations are as follows:

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➢ Performance
Performance has to do with the expected operating characteristics of a product or
service. Does a service or product do what it’s supposed to do? The primary operating
characteristics involve measurable elements which makes it easier to objectively
measure the performance.
Some of the performance requirements are related to subjective preferences, but when
they are the preference of almost every customer they become as powerful as an
objective requirement.
For example, for a smartphone, performance would include characteristics like clear
phone reception, data speed etc.

➢ Features –
What the dimension performance doesn’t focus on are the features, the characteristics
that decide how appealing a product or service is to the consumer. Such features are the
extras of a product or service and complement its basic functioning. This means that
the ones designing a product or service should be familiar with the end-users and should
be updated on developments in consumer preferences. Often, it’s difficult to see a clear
line between primary performance attributes and additional features.
For example, feature in service is offering free drinks on a plane.

➢ Reliability -
Reliability is usually closely related to performance. The focus of the dimension
reliability is more on how long a product will perform consistently according to the
specification of that product. This is important to customers who need the product to
work without any errors and contributes to a brand or company’s image. The dimension
reliability shows the probability of the product having signs of error within a specific
time of period. For measuring reliability, you should measure the time to the first
failure, how much time there is between failures and the failure rate per a specific time
of period.
For example, for parents with children who depend on a car, the reliability of the car
becomes an important element. Also, for most farmers, reliability is a key attribute.

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➢ Conformance –
This dimension is closely related to the dimension’s performance and features. The
dimension of conformance is about to what extent the product or service comforts to
the specifications. Does it function and have all the features as specified? Every product
and service have some sort of specifications that comes with it.
For example, the materials used or the dimensions of a product can be specified and set
as a target specification for the product.
When it comes to serve businesses, conformance is measured by focusing on the
accuracy, the number of processing errors, unexpected delays and other common
mistakes.

➢ Durability –
Out of the eight dimensions of quality, the dimension quality is about how long a
product will last or perform and under what conditions it will perform. Estimating the
length of a product’s life becomes complicated when it’s possible to repair the product.
For such product, the durability will be counted until it is no longer economically
beneficial to use it. This is when the repairs and the costs of repairing increase.
For example, in the case when a light bulb burns up and must be replaced by a new one.
In this case repairing it is impossible.

➢ Serviceability –
Serviceability is one of the eight dimensions of quality that reflects on if the product is
relatively easy to maintain and repair. This becomes important for consumers who are
more focused on the total cost of ownership as criteria for selecting a product.
Customers concerns are mainly about the product getting defects but also how long it
takes for the product to be repaired. It is not only important if a product can be fixed,
but also how satisfied the customer is about the company’s complaint handling
procedures. For example – improving a company’s serviceability is by installing a cost-
free phone number to reach the helplines.

➢ Aesthetics –
The aesthetics dimension is all about the way a product looks and contributes to the
company’s identity or a brand. Aesthetics is not only about how a product looks but
also how it feels, tastes, smells or sounds. This is clearly determined by individual
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 preference and personal judgement however there is a way to measure this dimension.
There are some clear patterns found in the way consumers rank products based on
personal taste. Not all people prefer the same taste or smell which it is impossible to
please every single customer. For this reason, companies end up searching for niche.

➢ Perceived Quality -
The perception of something is not always reality. Meaning that a product or service
can have high scores on each of the seven dimensions of quality, but still receive a bad
rating from customers as a result of negative perceptions from customers or the public.
Customers sometimes lack information about a service or product and for comparing
brands will rely on indirect reviews. This is usually the case when it comes to a
product’s durability because in most cases it can’t be observed directly.
Also, reputation plays a significant role when it comes to perceived quality. It’s easier
for a customer to trust the quality of a company’s new product when the established
product received positive reviews.

➢ Competing on the right dimensions of quality –

For a company to apply all eight dimensions at the same time is not always possible.
Some dimensions can reinforce one another, while others can’t. An improvement in
one dimension can result in a decline in the other dimension.
Another reason why it’s not always possible to pursue all dimension is because of the
cost of investment which could lead to unreasonable prices for the customer.
Therefore, understanding which trade-offs among the eight dimensions are preferred
by the customers can lead to a competitive advantage.

Conclusion –
Above all detailed explained are the various dimensions of quality in operation
management.

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