Toy Manufacturing Location Toys after QA checking Delhi Chennai Kolkata Goa Mumbai Jaipur Bhopal Shimla

Noida 3833699 3229340     75399 0 528960     Problem : Unable to

Nagpur 1817166     1321168   495998       replenish toys in
Bhubaneshwar 1471564         826138 58212 587214   distribution centers
Lucknow 944439         357309     587130
Rajkot 1245727   880737   364990        
  Total Demand 3229340 880737 1321168 440389 4110034 587172 587214 587130
  Demand that can be fulfil 3229340 880737 1321168 440389 1679445 587172 587214 587130

POSSIBLE COST EFFECTIVE ROUTES Reason: Production is Reason: Due to poor

Green representing best route considering freight cost and lead time less supply chain management
Orange representing second best route considering freight cost and lead time
Red representing third best route considering freight cost and lead time
Empty but coloured represents alternate best option
Empty represents costly route

• As only Shimla's demand can be fulfilled by Lucknow in cost effective way, we should only supply PVC
to fulfil Shimla's demand. To fulfil Shimla's demand Lucknow would need 11743 MT PVC, rest PVC can
be given to Nagpur Plant to fulfil Mumbai's demand.
• Bhubaneshwar can distribute to only Bhopal and Jaipur in cost effective way, therefore 13000 MT PVC
should be given to Bhubaneshwar and rest can be given to either Nagpur or Noida.
• Additional reason of preferring Nagpur and Noida over Bhubaneshwar and Lucknow is their error Green- Best manufacturing location considering cost
rates which are highest amongst all. Total 106226 toys rejected from these two location which is Orange- Second best manufacturing location considering cost
Red – Third best manufacturing location considering cost
almost 40 percent of the total toy loss.

Assumptions Toy Manufacturing Location Error Rate PVC to Toy conversion Toys Rejected
Noida 1.5 38,92,080 58381
All kind of toys area Every manufacturing location can Nagpur and Noida Nagpur 1.65 18,47,652 30486
manufactured in send toys to any distribution manufacturing location Bhubaneshwar 4.6 15,42,520 70956
every location centre can process extra PVC Lucknow 3.6 9,79,709 35270
Rajkot 5.55 13,18,928 73201
 Equipment​ Equipment #​ Current capacity Current Output New capacity New Output Year​ Total Projected Demand Net Projected Profit
Utilization (%)​ (MT)​ utilization​ (MT)​ (CAGR – 15%)​ (INR Cr)​

Tank​ T1, A1, B1, T2​ 50​ ​ ​ ​

2021​ 13504661​ 43.5​
Reactor​ R1​ 80​ 355​ 90​ 399​
Column Stripping​ C1​ 75​ 248​ 84.29​ 278.738​ 2022​ 15530360​ 50​

Compressor​ E1​ 80​ 213​ 89.91​ 239.4​ 2023​ 17859914​ 57.5​

Dryer​ D1​ 75​ 195​ 84.29​ 219.169​
2024​ 20538901​ 66​
Magnetic Separator​ M1​ 75​
  177​ 84.29​ 198.938​
2025​ 23619737​ 70​
Warehouse Tank​ WH1​ 50​  177​ 78.32​ 198.938​

• As we can use Reactor (R1) at 90 percent capacity, we suggest to implement that as it • Current total production of toys is
will increase the PVC production by 12.39%. 95,80,889. After utilizing 90% capacity it
• The reactor remains idle for 4 hours due to waiting time. Therefore, we suggest to will be 1,08,91,855.
install additional reactor which can be utilize while other is in waiting period. By this • Total current demand is 117,43,184.
we can double the production capacity, which is essential for future perspective as However, only 93,12,595 toys are able to
CAGR 15% suggest demand will be more than double in next 5 years. reach distributor.
• After addition of another reactor total
toys production capacity will be
Assumptions 2,34,86,368 which is sufficient to fulfil
• Net profit will increase according to sales. demand till next 5 years.
• Necessary changes will be done after addition of reactor so that addiction of another reactor does
• Net income will be double after 4 years.
not affect the production capacity and process
• Demand is increasing in next five year with 15% CAGR Therefore, addition of reactor can be
consider profitable.
 SOP

•Prior to testing, each sample shall be subjected to a temperature of (21 ± 5) °C for at least 4 h. Textile toys and textile soft-filled (stuffed) toys shall
be conditioned at a temperature of (21 ± 5) °C and (65 ± 10) % relative humidity for at least 4 h. The testing shall commence within 5 min after the toy has been
removed from the preconditioning atmosphere. ​

•A toy should be age-labelled in a clear manner, If during a test the toy has been materially affected,  further relevant testing shall be carried out on a new toy. ​

•Plastic film used in toys either have an average thickness of ≥ 0.038 mm and individual thickness of ≥0.032 mm when tested.​

•The safety labelling should be visible, easily legible, understandable and indelible form. ​

•Sample containers shall be handled to avoid contamination during the sampling, log-in, and transportation process. Sample cards shall be fixed to
their corresponding sample or container and transported to the appropriate laboratory for further analysis​

•Verify the manufacturing unit has a facility for testing and monitoring the production of PVC.  The program must have testing facility for the following tests;
Minimum Density (raw material), Melt Index (raw material), Brittleness , Elongation, Stiffness, Flattening, Dimensions and Perforations, and Unit Weight
 PVC MANUFACTURING TOY MANUFACTURING DISTRIBUTION RETAIL
PLANT PLANT CHANNEL CENTER

Total PVC production

- 1,91,617 MT – 50 toys per MT
PVC to Toy conversion
– 95,80,850 Toys/
Annum (80% Capacity (2020) -  95,80,889​
Utilization)​
Optimized production (90%
capacity utilization) of the
Total Demand: 1,17,43,184​
toys= 1,08,00,000
Toys/Annum
• PVC Manufacturing : We can check about the
optimization of the process by finding
bottlenecks in the
• PVC Transportation : Supply chain network
should be reorganized if possible new
alternatives should be used
• Toy Manufacturing : Skilled professionals can
be used for the better quality and productivity.
• Distribution Network : Alternative source of
distribution channel should be analyzed.