Starting question:

1-Ans

To be the preferred choice of customers through innovative products and solutions and be a
leading contributor to the economy by enhancing value for stakeholders.

Corporate is the fundamental beliefs upon which a business and its behavior are based. At
Crestex we believe that our employees are the representation of our business to the world,
so they should be technical yet ethical in their profession. Our values include

Being a composite textile, organization crestex’s operation department is engaged in

production of supreme quality manufacturing of Yarn, Greige/Processed Fabrics, Home
Textile, and Institutional Garments.

2-Ans
Operation Management has evolved historically in terms of inventory management like
shifting of whole organization office work to ERP/Oracle & EBS for better traceability & cost
management of store & spares or other inventory like yarn or fabric. Crestex always follows
the market trends by observing customer requirements.
The Crescent Textile Mills (CTM) has a culture of dedication, empowerment, development &
recognition of its Human Capital. This is the reason that people are working with us for three
generations.
3-Ans
Operations management department play a very vital role in maintaining & improving
productivity for the firm. Greater the production greater profitability.
a- Improvement in the contribution of labor to productivity can be attributed to better
education, better training, well -balanced work and life opportunities. Other factors such
as, better employee morale and healthier work environment can contribute to increased
productivity as happy employees are usually more productive.
b- Capital investments provide the tools required by human capital to increase
productivity. For instance, annual capital investments in the U.S have increased at an
annual rate of 1.5% after depreciation. If the capital investment per employee drops,
one can expect a drop in productivity; therefore, capital investment is a necessary
ingredient in the pursuit of increased productivity.
c- a factor of production, management is responsible to ensure that labor and capital are
effectively used to enhance productivity through the increase of training, knowledge and
application of new technologies. Effective use of capital is also a catalyst to increased
productivity as managers are required to select the best new capital investments while
improving the productivity of existing ones.

4-Ans

Crestex is adopting export strategy by focusing on the current economic situation of our

country. Similarly, during covid-19 we shifted our strategy to multidomestic to meet

the needs of local market also. We have around 70 million $ sales during last year 2021.

5- Ans

Operations department is always being a helping hand in implementing globalization

strategy by producing finished products as per the customer standards & specifications.

Intermediate questions

1- Ans

Crestex is a composite textile firm & export-oriented strategy makes a big difference from
our competitive firms. Most famous brands like Next, Ralph lauren, JC peeney etc worked
with Crestex due to culture of dedication, empowerment, development & recognition of its
Human Capital. Our priority is to focus on the costing and customer responses.

2-Ans

No ethical or cultural issues faced by Crestex in the past.

3-Ans

Operations management decisions of strategic relevance are concerned with shaping the
long-term capabilities of any type of operations and their contribution to the organization's
overall strategy. Operations management decisions of strategic relevance can be guided by
the following operations’ strategic decision areas:

Location – Crestex is located in the hub of textile Faisalabad which allows for example,
optimum transportation of its products to distribution channels; optimum transportation of
material and parts to manufacturing facilities, etc., Crestex Operations management decision
makers had given due consideration to the supply chain and how the facility location will
receive supplies, the movement of goods and services to customers, and the role of
marketing and public relations in the location choice.

Layout Design and Strategy - Crestex layout design & strategy are decision area of operations
management is concerned with the company's design of its workflows and facilities for
example the work flow & layout of different facilities like spinning, weaving, processing &
H.T are designed in a way to eliminate rework during each process.
Process and Capacity Design – KPI’s are developed by the senior management to enhance &
optimized production process. KPI’s are properly monitored by zonal head’s to further
increase capacities.

Design of Goods and services - Pre costing is done in Crestex before booking of any order or
services to implement consistency in costs, quality, and resources across business divisions
or brands.

Quality Management – Centralized quality management & assurance department is built for
systematic control process of keeping an intended level of quality in the goods and services,
in which the organization deals.

Human Resources and Job Design – Crestex is concerned with recruiting good talent and
continuous improvement programs and training and institute employee satisfaction
programs to achieve success.

Supply Chain Management – Separate supply chain department is working in crestex to

determine the best strategies to streamline be cost effective and to develop trusted
partners.

Inventory Management – In crestex the inventory management is concerned with planning

and strategies for effective inventory control subject to influences of weather, supply
shortages, and labor on how an organization maintains its inventory.

Scheduling – In Crestex scheduling resources for production and other company activities to
ensure efficient and effective achievement of operations goals.

Maintenance – Crestex Operation management strategic is concerned with maintaining

people, machines, processes needed to create and deliver value to customers.

4- Ans
Yarn from spinning is received and stored in a pre-identified area with respect to the yarn
count. First process of fabric manufacturing (weaving) is warping. In the warping yarn from
small packages (cones) are wrapped warp beams to convert small packages into the large
beams. After warping these warp beams are carried out to sizing. In sizing process, the
application of size material is done on warp beam resulting in the formation of sized beam
ready to be placed on looms for production of fabric. On looms there are two or more than
two yarn interlaced by 90 degrees to produce fabric. The yarn parallel to the sized beam are
called warp yarn & yarns perpendicular to it are called weft yarn. The fabric produces after
the interlacement of warp & weft yarn. After fabric is produced on loom. Fabric rolls are
sent for Inspection, grading & packing.

Our whole weaving process is product focused because of its low-cost, high-volume
production & efficiency.

5-Ans

45 days lead time is provided by the customer for the delivery of their product.

6- Ans

SWOT:

S: Strength: Textile composite firm, good working environment, Job security.

W: Weakness: Low Wages, lack of facilities, old machinery

O: Opportunity: Automation, Technology Use

T: Threat: Economic situation, Global recession, high energy prices

7- Ans

Senior management along with zonal head’s get together to devise & implement a strategy.

8- Ans

Our firm follows global strategy which sacrifices responsiveness to local requirements within
each of its markets in favor of emphasizing lower costs and better efficiency.

9- Ans

5 Characteristics of projects devised by Crestex.

1- Specific 2- Measurable 3- Achievable 4- Relevant 5- Time Bound

10-Ans

In planning phase, plan is made and strategies are set, taking into consideration the
company policies, procedures and rules Planning provides direction, unifying frame work,
performance standards, and helps to reveal future opportunities and threats.

Scheduling is the allocation of resources. Resources in conceptual sense are time & energy
but in practical sense are the time, manpower, equipment applied to material. Scheduling is
the process of formalizing the planned functions, assigning the starting and completion
dates to each activity which proceeds in a logical sequence and in an orderly and systematic
manner.
Controlling phase is carried during the execution of the project.

The difference between the scheduled performance and actual performance are reviewed
once the project starts.

Project control is established to determine deviations from the basic plan, to determine the
precise effect of these deviations on the plan, and to replan and reschedule to compensate
for the deviations.

11- Ans

Planning issues commonly involve a conflict of values and, often, there are large private
interests at stake.

Preferential Sequencing: structuring IMS logic to favor one stakeholder’s position or

interests over another’s

Duration Padding: adding an artificial time buffer “just in case”

Duration Compression: arbitrarily reducing durations to offset the impact of late or slipping
predecessor tasks

Hiding Slack: using constraints, lags, improper logic or inflated durations to mask slack
Abusing Project Logic: intentionally manipulating dependencies to mask schedule issues or
potential problems

Excluding Scope from the IMS: intentionally not including tasks in the IMS to show an
artificially early project completion

Goal incongruences through role conflicts between different levels of organizational

structure

Through different levels in organizations’ structure and different interests between single
employees, like business unit controllers and the organization as a whole, represented by
the higher management, it is possible that also targets may drift apart. If these not
convenient or even contrary targets appear, this situation is called goal incongruence. As a
controller this problem is likely to appear because of the duality between different roles on
different levels of the organizational structure.

ROLE CONFLICT AS A REASON FOR GOAL INCONGRUENCES

Business unit controllers experience a role conflict between their function as a “watchdog”
and an “advisory” within the company. This conflict has a great impact on the quality and
truth of financial reporting. For that reason, it is important to know why such conflicts
appear and how they can be turned away. The roles of a controller can be separated in a
“functional responsibility” and a “local responsibility”. In the functional role, the controller is
seen as a “watchdog”, responsible for the whole company control and an objective report of
the business unit. The local role includes the task to offer information to the unit manager
for operational and strategic decisions.

12-Ans

Crestex Uses Critical Path Method (CPM).

13-Ans

Forecasting of future in crestex is carried out by planning & supply chain departments for
predicting future market conditions by using business intelligence/trends, tools and
forecasting methods to analyze historical data.

14- Ans

Short-term forecasting horizons (less than three months) is best suited for Crestex & it is the
most preferred time horizon for our company.

15- Ans

Time series model is used in Crestex.

16-Ans

Straight line forecasting approach is mostly used in Crestex.

Ending Questions

1- Ans

Quality means “Performance upon expectations” and “fit for functions.”

A product is said to be of good quality if it satisfies the customer requirements in terms of

performance, grade, durability, appearance and intended use/purpose, etc.

2- Ans
Crestex manages quality of its products by centralized quality control system.
3- Ans
Quality of our products has drastically improved due to centralized quality control
system & quality assurance department.

4-Ans

In my opinion due to high qualities products of crestex our company is deriving profits &
customer satisfaction.
5-Ans
Already explained in question#4.
6-Ans
1. Performance:
2. Features:
3. Reliability
4. Conformance
5. Durability
6. Serviceability
7. Aesthetics
8. Perceived Quality

7-Ans
Appraisal costs are more than Prevention costs.
8-Ans

On a senior management position in the crestex.