UNIVERSITY OF CENTRAL PUNJAB

FALL 2023
Course Title: BAMG 2823
Course Code: Fundamentals of Operations Management

Assignment No. 03

Course Instructor: Mr. Jahanzeb Asim

Section: Program: BS(BA) Date: 4-01-2024

Submission Date: 17-01-2024 Maximum Marks: 10

Program Objective: 1, 3, Course Objective: 1,2, Course Learning Objective: 1,2,3, 4, 5, 6,

4, 5 3, 4, 5 7, 8

TO BE FILLED IN BY THE STUDENT

Registration No:
Student Name: L1f21bsba0005
Hasan shafqat
L1f21bsba0025 Sr. No:
Javeria umar
L1f21bsba0050
Zainab mamtaz

Instructions:
a. All the students are bound to submit the hard copy of this assignment before the class on
the said date.
b. No delays will be allowed in the submission.
c. All the steps should be followed while solving the assignment.

case 1
Page 1 of 10 Assignment
 ARCO plastics Pakistan
Identify the problems & critically do the analysis and respond to each problem.

graphical visualization

(1) Average Production Time for Different Product Lines (Bar Graph)

This graph visualizes the average production time for various product lines.

Analysis: You can identify which product lines are less efficient, helping to pinpoint areas where process
improvements might be needed.

(2) Monthly Quality Control Analysis (Line Graph):

This graph shows the number of defects reported each month, providing insight into quality control.

Analysis: Trends in this graph can help identify periods with increased quality issues, which may warrant
further investigation into production processes or material quality during those times.

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 (3) Inventory Levels vs. Production Delays (Scatter Plot)

This graph plots inventory levels

against production delays, providing insight into inventory management effectiveness.

Analysis: A pattern or correlation here might suggest how inventory levels are impacting production
efficiency, helping to identify if inventory mismanagement contributes to production delays.

problem identification and analysis

Problem 1: Outdated product layout inhibiting efficient production of customized plastic products.

Analysis: The outdated product layout is a significant hindrance to the efficient production of customized
plastic products, leading to longer lead times. A comprehensive analysis of the work cell design is
necessary to identify inefficiencies, bottlenecks, and unnecessary movements. Implementing lean
manufacturing principles, employee training, and visual management techniques can optimize layouts and
streamline workflows, improving overall efficiency within work cells.

Problem 2: Challenges in meeting required takt time, especially in the injection molding process.

Analysis: Variability in processing times and inconsistent production rates contribute to imbalances,
affecting overall efficiency and hindering ARCO Plastics from meeting required takt time. A thorough
analysis of the injection molding process is essential to identify root causes of variability. Implementing
measures such as standardizing processes, addressing equipment issues, and training personnel can help
achieve more consistent production rates and meet takt time requirements.

Problem 3: Imbalances in certain production lines causing delays and disruptions.

Analysis: Imbalances in production lines contribute to delays and disruptions in the overall production
process. Conducting a detailed analysis of production lines to identify bottlenecks, resource constraints,
or equipment issues is crucial. Implementing measures such as workload balancing, cross-training
employees, and addressing equipment reliability issues can help mitigate imbalances and improve overall
production efficiency.

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Problem 4: Difficulty in identifying root causes of quality issues in plastic molding processes.

Analysis: The challenge of identifying root causes of quality issues requires a systematic analysis of the
plastic molding processes. Implementing quality control measures, utilizing statistical process control
tools, and conducting root cause analysis can help identify and address the underlying issues affecting
product quality. Continuous monitoring and improvement processes should be established to ensure
sustained quality improvements.

Problem 5: Inefficiencies in resource allocation leading to underutilization of certain production

lines.

Analysis: Inefficient resource allocation contributes to underutilization of production lines, impacting

overall capacity utilization. Conducting a resource allocation analysis, considering factors such as
machine capabilities, workforce skills, and demand variability, is crucial. Implementing a more flexible
resource allocation strategy, cross-training employees, and adopting demand-driven production
approaches can help optimize resource utilization.

Problem 6: Inconsistencies in the management of raw material and finished goods inventory.

Analysis: Inconsistent inventory management leads to occasional shortages and excess stockpiles.
Conducting a thorough analysis of inventory management processes, demand forecasting, and supply
chain coordination is essential. Implementing inventory control measures, adopting Just-in-Time (JIT)
principles, and leveraging technology for real-time inventory tracking can help address inconsistencies
and improve overall inventory management.

Problem 7: Challenges in determining the optimal number of Kanbans for production processes.

Analysis: Determining the optimal number of Kanbans requires a careful analysis of production
processes, demand variability, and lead times. Implementing Kanban systems, conducting regular
reviews, and adjusting Kanban quantities based on demand fluctuations can help optimize inventory
levels and improve production responsiveness.

Problem 8: Difficulty in developing a reliable Master Production Schedule (MPS).

Analysis: Developing a reliable MPS is crucial for coordinating production with market demand.
Conducting a comprehensive analysis of demand forecasting, production lead times, and production
capacity is necessary. Implementing advanced planning and scheduling tools, improving communication
between departments, and incorporating real-time data can help develop a more accurate and reliable
MPS.

Problem 9: Lack of a clear philosophy and implementation of JIT and Lean Operations.

Analysis: The absence of a clear philosophy and implementation of JIT and Lean Operations contributes
to excess inventory and inefficient workflows. Conducting a cultural and organizational analysis to
promote a Lean mindset is essential. Providing training, establishing key performance indicators (KPIs),
and fostering a continuous improvement culture can help align the organization with JIT and Lean
principles.

Problem 10: Excess inventory and inefficient workflows.

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Analysis: Excess inventory and inefficient workflows are the result of various operational challenges
identified above. Implementing solutions to address each specific problem, such as optimizing layouts,
improving production processes, enhancing inventory management, and promoting Lean principles, will
collectively contribute to reducing excess inventory and improving overall workflow efficiency.
Continuous monitoring and adjustment of processes are necessary to sustain improvements over time.

case 2
proctor and gamble(P&G)
Identify the problems & critically do the analysis and respond to each problem.

graphical visualization

(1) sales distribution by retailers (bar chart):

this graph shows sales distribution by retailers

Analysis:

Diversify Sales Channels: If the graph shows heavy reliance on specific retailers, P&G should consider
diversifying its sales channels. This could involve strengthening e-commerce platforms or exploring
alternative retail partnerships.

Strengthen Relationships with Key Retailers: Develop strategic alliances with major retailers to secure
better shelf space and promotional opportunities.

Direct-to-Consumer (DTC) Initiatives: Invest in DTC channels to reduce dependency on retailers and
to gather valuable consumer data for targeted marketing.

(2) Market Share Over Years (Line Graph):

Page 5 of 10 Assignment
This graph shows the market shares of P&G over years.

Analysis:

Market Penetration and Expansion: If market share is stagnant or declining, P&G should consider
penetrating untapped markets or expanding in existing ones with new or adapted products.

Innovation and Product Development: Focus on innovation to keep up with changing consumer
preferences, especially in high-growth potential segments like natural ingredients or men's products.

Competitive Analysis and Strategy Adjustment: Regularly analyze competitors' strategies and adjust
accordingly to maintain or increase market share.

(3) Commodity Prices vs. Profit Margins (Scatter Plot):

this shows the relation between prices and profit margin for P&G companies

Analysis:

Cost Management Strategies: Implement effective cost management strategies to mitigate the impact of
rising commodity prices. This could include negotiating better terms with suppliers or investing in cost-
saving technologies.
Page 6 of 10 Assignment
Pricing Strategies: Reassess pricing strategies to ensure they align with changes in input costs while
remaining competitive in the market.

Product Portfolio Diversification: Diversify the product portfolio to include items with different cost
structures, reducing the overall impact of commodity price fluctuations on profit margins.

Problem identification and analysis

Problem 1: Dependency on large retailers and competition from private-label products.

Analysis: P&G's reliance on large retailers and the threat from private-label products pose challenges to
its market position. Diversifying distribution channels and exploring direct-to-consumer models could
reduce dependency on specific retailers. Additionally, investing in brand loyalty programs and strategic
partnerships can help counter the competition from private-label products.

Solution: Implement a multi-channel distribution strategy, including online platforms and specialty
stores. Strengthen relationships with retailers through exclusive partnerships and invest in direct-to-
consumer initiatives to build brand loyalty.

Problem 2: Lack of presence in prestigious, premium-brand products.

Analysis: P&G's absence in prestigious, premium-brand products limits its market reach and potential for
higher profit margins. This gap in the product portfolio may hinder the company from tapping into certain
consumer segments and capturing premium pricing opportunities.

Solution: Consider strategic acquisitions or partnerships to enter the premium-brand segment. Develop
and launch premium product lines under existing brands or create new brands that cater specifically to the
premium market, emphasizing exclusivity and quality.

Problem 3: Need for innovation to revitalize the beauty care market.

Analysis: The beauty care market is dynamic, and continuous innovation is essential to stay competitive.
P&G needs to address any perceived lack of innovation to maintain its leadership in this segment and
respond to changing consumer preferences.

Solution: Invest heavily in research and development to drive innovation in beauty care products. Engage
with consumers to understand evolving trends and preferences. Launch new and improved products with
unique features, sustainable packaging, and natural ingredients to appeal to a broader consumer base.

Problem 4: Rising commodity prices affecting profit margins.

Analysis: Fluctuations in commodity prices can impact P&G's profit margins. The company needs to
develop strategies to manage these cost pressures effectively.

Solution: Implement cost-saving initiatives, such as supply chain optimization, strategic sourcing, and
efficiency improvements. Explore long-term contracts with suppliers to mitigate the impact of commodity
price volatility. Pass on some cost increases through selective price adjustments while maintaining a focus
on value for consumers.

Problem 5: Intense competition in the industry with low switching costs.

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Analysis: The consumer products industry is highly competitive, and low switching costs make it easier
for consumers to shift between brands. P&G needs to find ways to enhance customer loyalty and
differentiate its products from competitors.

Solution: Invest in marketing and branding efforts to create strong brand associations and loyalty. Focus
on delivering exceptional customer experiences, ensuring product quality, and leveraging digital
marketing strategies to engage and retain customers. Continuous market analysis can help identify trends
and consumer preferences for timely adjustments.

Problem 6: Limited penetration in the natural ingredient and men's market segments.

Analysis: Opportunities exist in the growing demand for natural ingredient products and beauty products
for men. P&G needs to address its limited presence in these segments to capitalize on evolving consumer
preferences.

Solution: Develop and launch natural ingredient products within existing brands or create new product
lines. Invest in marketing campaigns targeting the male demographic to increase awareness and
penetration in the men's market. Consider acquisitions or partnerships with companies specializing in
natural products or catering to male grooming needs.

By addressing these identified problems with the proposed solutions, P&G can enhance its
competitiveness, capture new market segments, and ensure sustained growth in the ever-evolving
consumer products industry.

Comparison of ARCO plastics and P&G company

Comparison Analysis Setup

1. Sales Distribution Comparison

We compare the sales distribution across different retailers or markets for both ARCO and P&G.

2. Market Share Comparison

Page 8 of 10 Assignment
We compare the market share trends of both companies over a set period.

3. Operational Efficiency Comparison

We compare aspects like production time or inventory management efficiency between the two
companies.

Recommendations through comparison

Recommendations for ARCO Plastics Pakistan

Enhance Sales Distribution Strategy:

If ARCO shows a limited range in sales distribution, consider expanding into new markets or
channels .Strengthen relationships with key retailers and explore partnerships for exclusive product
launches.

Boost Market Share:

Identify and target market segments where ARCO has less presence compared to P&G.

Innovate in product development to cater to unmet market needs or emerging trends.

Improve Operational Efficiency:

Analyze production lines with longer times and identify bottlenecks. Implement lean manufacturing
techniques to optimize these lines. Invest in automation where feasible to increase efficiency and reduce
production time.

Recommendations for Procter & Gamble (P&G)

Diversify and Optimize Sales Channels:

If over-reliance on certain retailers is observed, P&G should consider diversifying its sales channels,
including strengthening its online presence. Leverage data analytics to tailor products and marketing
strategies to different sales channels.

Maintain and Grow Market Share:

Continue investing in R&D to innovate and stay ahead of market trends. Focus on sustainability and eco-
friendly products, as these are growing trends and can help in capturing a more conscious consumer base.

Streamline Operational Processes:

If P&G shows more efficient production times, maintain these standards and apply the successful
strategies to other production lines. Regularly review and update operational processes to maintain
efficiency, especially in response to external market changes.

General Strategic Recommendations

Market Analysis and Customer Insights: Both companies should continuously analyze market trends
and gather customer insights to inform their product development and marketing strategies.

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Sustainability Focus: Given the global trend towards sustainability, both companies should consider
enhancing their sustainability practices in production and product development.

Leverage Technology and Innovation: Utilize advanced technologies such as AI and machine learning
for market analysis, production optimization, and personalized customer experiences.

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