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Operations Management
Individual Assignment
Submitted By
Lalit Joshi
Roll# 2321
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Operations Management
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Exercise 1
Draw a flow chart of any function in your organization (Marketing, operations, finance,accounting, human resource and information system).
Use special symbols to draw the flow chart for the above question.
Analyze the flow chart drawn above using basic question (How, What, when, where,and who).
Suggest improvements for increasing the efficiency of effectiveness of the abovechosen function.
Answer
The company considered is manufacturer of salty snacks. The portfolio consists of potato
wafers, puffed corns, flavored popcorns, crispy chunky nuts, tortilla chips, baked wafers etc
(almost 15-20 segments). The flow chart of operations includes activity from receipt of raw
material to production of finished goods (packages put in shipping boxes)
The operations process is illustrated in the flow-chart as below:
S No. Details of Operations
1 Raw material received (In Ti ) x 1 hr500 metr
2 Quality Check Q x 1 hr
3 QC Conducted x 3 hrs
4Raw material preparation
Soaking, Dying & Washing x 1 hr
5 WIP - step 4 x 2 hrs
6Processing (1) Shredding, &
Coating x 2 hrs
7Processing (2) Frying / Baking, &
Roasting x 2 hrs
8 Processing (3) Flavoring x 1 hr
9 Wait for Cooling x 1 hr
10 Check final product x 1hr
11 Packaging x5hr
12 Inspection - Labeling, marking etc
x
1 hr
13Transportation to warehouse
(Out TO ) x5km
Storage Time DistanFlow Process Chart Operations Movement Inspection Delay
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No. of
StepsTime Distance
Operations 5 11 hrs
Movement 2 5.5 km
Inspection 3 5 hrs
Delay 3 4 hrs
Storage 0
Activity Summary
Analysis of existing process flow chart
As detailed in the above flow process chart the tasks pertaining to processing and
packaging are spread across series of continuous steps. The process starts with the
delivery of raw material at plant (Time in -T i) and ends with dispatch of finished
packaged goods to warehouse (Time out -To)
Below are in between steps to answer basic & important questions:
How the entire process is executed by using limited resources. Total of 15
people are involved in the operations process. The manufacturing unit is semi-automated and raw material is sourced from US, South Africa and China
What the flow chart illustrates details of manufacturing process of snacks as
potato wafers, puffed corns, flavored popcorns, crispy chunky nuts, tortilla chips,
baked wafers etc (almost 15-20 segments); many other products are
manufactured as per customer demand
When manufacturing is a continuous process but quantity of production varies
with the market demand; the company has B2B companies as regular customers
such as entertainment franchise groups cinemas, clubs, hotels, water park,
etc.
Where the manufacturing unit is a medium sized factory located near Jebel Ali
port. All production processes are executed in a single production line.
Who the entire manufacturing process is executed by a team of 15 people,
most of the team is semi-skilled; while some part of the process are semi-
automated, the process also includes manually driven steps
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Suggested areas of improvement to increase efficiency or effectiveness in
production
Reduce WIP time steps as raw material preparation (soaking, washing, etc.) involve in
between work in progress time. This increases the overall production time. Hence,
during WIP time other process activity can be executed simultaneously. This would
improve resource utilization and thereby improving production efficiency.
Revise Inspection procedure in a total manufacturing time of 20hrs, 25% of the time is
spent in conducting inspection. While the number of inspection checks is appropriate,
formulate the current process to reduce the overall time spent on inspection procedure.
Utilize Delay Time delay time of one batch process to be utilized for other batch WIP or
set up.
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Exercise 2
Specify where your organization fits in the Volume Variety Matrix. Explain.
Evaluate the competences within the organization and determine the competences gaps
if any
Answer
1. Illustrating Volume-Variety Matrix
The organization offers snack products across 15-20 segments. The demand for each
segment fluctuates through the year as it is influenced by season, holidays, etc. For each of
the segment demand is not uniform and it is difficult to forecast demand by segments,
therefore, single production line is used to manufacture snack products across segments.
The manufacturing line falls under the category of batch processing. Below is the
representation of Volume-Variety matrix:
Volume Variety Matrix
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The production set up for the organization is characterized as Batch processing because of the
following reasons:
Multiple products with low to moderate volume Moderate variable cost
Moderate capital investment
Labor content and skill - moderate
Organizations Competency
Following are the key competencies for the company providing an edge over the
competition:
Production process flexible to accommodate sudden change in customers demand
with minimal impact on costs and business profitability
Product offering across 15-20 segments helps cater widespread base of institutionalcustomers
One stop solution for customers as provides both product and vending /dispensing
machines that are difficult to procure (as part of marketing strategy company leases
and sells various machines required by customers for display and selling at serving
outlet along with salty snacks)
Provides after sales service and ongoing technical support on machines
Following are the competency gaps in current scenario:
Production capacity equipped to handle small scale orders
High cost disadvantage compared to large scale competition manufacturers High cycle time and lead time due to in between set up time required for running
multiple batches
High work in process time involved in raw material preparation and set up activities
Throughput imbalance due to varying process leading to low direct labor utilization
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Exercise 3
Determine the basis of competitiveness of your company, by contacting at least 5customers (2 of which are satisfied, 2 who used to avail your company services/productsin the past and 1 satisfied)
Answer
Customer Feedback
Satisfied Customer Dis-satisfied Customer Past (discontinued) CustomerProducts assorted with USbrands highly famousamongst premium customers
Minimum order constraint Product range not suitable tobusiness
Understands client businessneed
Inconsistent rates, additionaldelivery charges
No warehouse support forstocking customer specificpackaging boxes
Prompt response and on timedelivery
No response on replacementrequests for damaged orexpired consignments
Unable to meet big orders ontime; suitable for small quantityorders
One stop solution for fun foodsegment product & vending
/ dispensing machines
Lack customer centricity,especially marketing team
High Priced
Efficient technical supportteam
Summarizing Competitive Advantage Basis Customer Feedback
1. Preferred supplier for B2B customers as shopping malls, entertainment multiplex, fun andsports joints, cafeterias, etc due to its wide variety offering in fun food snacks
2. Product offering enhanced by supplying snacks assorted with flavored complements
3. Qualifies as one stop solution offering both product and concession equipments as cheese
dispenser, popcorn machine, slush machine, fryer, popping machines, etc. which are
required by B2B customers for displaying, stocking and serving as a fresh plate at the outlet
4. Efficient technical support for ongoing customers
5. Responsive to customer requirements; for e.g. scheduling on time delivery on short notice;
supporting delivery even during holidays to meet peak business hours of customers
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