ASSIGNMENT-I

By
Name Roll number

Sayeed Rahmatullah 69

Section II

Submitted to:
Prof. Tanmoy Chakraborty
(PRODUCTION AND OPERATIONS MANAGEMENT)
Paper Code: MBR2050T

Xavier Business School

St. Xavier’s University
 Case Study-I
ABS Pvt. Ltd. Was one of the leading manufacturers of valves in India. The
organization was mainly focused on achieving a high level of efficiency in the
production process. Over a passage of time, it was noticed that the sales of the
organization’s product were declining gradually. As a result, the organization
conducted a research to understand reason for a constant decline in sales. In the
research, it was found, that the main reason for this decline was that the organization
was lacking service orientation. Due to this the customer were not satisfied with the
organization’s product and switched to other brands.
It was also found that ABS was using only production as a competitive
advantage for surviving in the market. On the other hand, the competitors of the
organization were using various advanced method to gain competitive advantages
such as Total Quality Management, Business process Re-engineering, Flexible
Manufacturing Systems, Computer Integrated Manufacturing and above of all
extensively Customer Relationship Management.
From the above situation find out the probable solutions for the followings:
1. Determine the objectives of ABS to be taken based on above scenario.
2. What would be the functions of the Production Manager so that ABS can came back
to compete.
3. Highlight few are which can be taken into consideration to increase sales of ABS.

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 ANSWERS
1. We see in the case above that ABS is completely into the production aspect. The
production aspect cannot be the only tool to gain competitive advantage.
The main objectives which needs to set by ABS are:
a) Operations Management system since after production if the company wants
to deal with offering services it needs an operation management system.
b) A regular SWOT analysis in order to achieve competitive advantage.
c) A proper customer relation system along with a well-balanced operation
strategy.

2. The production manager needs to adapt to newer methods of gaining competitive

advantage.
Firstly, he needs to implement Total Quality Management (TQM) whose basic objective is
to meeting customer’s requirements and that is the key to the survival and growth of the
company. There should be a continuous improvement in the quality of the product to avoid
minimum customer complaints and they should encourage the employees to be more
creative.
Secondly using Flexible Manufacturing System there can be an increased production
flexibility reducing waiting time for the next lot of sales.
Using Computer Integrated Manufacturing, all production and support processes could be
integrated using computer networks and cross-functional business software.
Along with that it is essential for the production manager to analyze all reports starting
from the inventory level to the shipping level and make sure no discrepancies occur.

3. To increase sales the following needs to be done:

a) Create a solid CRM which stands for Customer Relations Management. A
CRM would help in tracking sales, analyzing sales reports and most importantly automate
the process of sales.
b) Build sales plans for each customer. Separate account management from new
revenue development in each account. For account management, grid relationships by
customer contact. Establish relationship objectives for your personnel. Ensure that

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outcomes are well defined and timelines established and managed. Manage account details.
Consider re-allocating some outside sales activities to inside staff.
c) Compensate your people and teams for attaining the plans' objectives. Focus
on collaboration. Train your staff to listen and communicate. Use recognition to change
behaviors - it is as important as rewards. Many companies have one or more high-
performance sales people who stress people internally. Don't insist that they change if you
want new sales quickly. Surround them with people who can multiply their efforts. Hire
new staff to give them competition.
d) Use technology to interact with customers wherever possible. Integrate
communications so you have a single, real-time view of customer interactions and
transactions. Give your customers access to information such as the stage of project
completion, inventory levels, payment history, etc. Perhaps each should have their own
Web-page.
e) Re-examine your distribution channels. The Internet offers new
opportunities for customer management and new potential for confusion if channel
strategies have not been carefully considered. Now might be the time to reconsider channel
strategy and confirm channel roles. Consider narrowing your channels to key
intermediaries. For a quick sales lift, explore e-procurement opportunities from company
and industry portals.
f) Compete on scope, not scale. Supply customers with what they want, not
necessarily what you make. You might offer services with products. You could buy
products from other companies who will produce under your brand.
g) Target the customers of weaker competitors. You need to know: which
competitors to target, which customers and how to target. Where you have customers in
common, the challenge is to increase customer share.
h) Retain a third party for objective advice. If you have tried some of these ideas
without results, consider using an external advisor to review sales and marketing plans,
performance and people to diagnose and prioritize issues, frame options and recommend
corrective actions.