NAME: DANIAL ALI KHAN

ID: 15563
Q1 - In our operations management course, we have studied that there are four types of
manufacturing strategies, i.e., Engineer to order (ETO), Make to order (MTO), Assemble to order
(ATO), and make to stock (MTS).

Now, please provide two practical examples for each strategy with clearly indicating “push and pull
boundary” in each. (Marks = 04)

ETO:

1. A manufacture power supplies, chargers, batteries, cables and power cords. They provide small
electronic products by rigorously testing based on the requirements set by the regulatory body.
2. Another example is of custom-made aluminum products. From solid lightweight components for
the automobile industry to titanium implants for the medical industry, they make everything.
These engineer-to-order goods complement other configure-to-order products, including forged
wheel blanks.

MTO:

1. A computer company like Dell which employs the MTO production strategy, where customers
can order and receive a personalized machine online in a few weeks.
2. An aircraft manufacturer to think, as aircraft are costly goods. The manufacturer will build an
aircraft according to what the consumer wants. It even needs no additional stock.

ATO:

1. Take a personal computer maker. It will have all the core computing elements in order, because
they are already manufactured – motherboards, graphic cards, processors, displays and
keyboards. These components are for these parts, the business relies on different
manufacturers.
2. Take an example of automobile industry in Pakistan in which more than 90% of the major parts
of cars are imported and then assembled to make a full working car.

MTS:

1. For e.g., in the fourth quarter of the year, several retailers in order to brace for market growth,
much of their output needs to be generated by production companies supplying these dealers in
the second and third quarters of the year.
2. Take a pharmacy business that sells cough syrup. It usually keeps stocks on the individual market
in order to supply the wholesaler’s short notice. To effectively handle this stock using MTS
company is countless on its predictions to estimate how many cough units will be sold in each
market in the cold season for several months in advance. However, cough is unforeseeable.
People are sicker in some years than others.
Q2 – When do we prefer to use qualitative forecasting? Please provide the pros and cons of any three
qualitative forecasting techniques. (Marks = 3)

Qualitative forecasting is particularly effective where projected outcomes are suspect of being
significantly different from previous results, and thus not quantitatively predictable. For instance, the
historic market pattern can mean that sales rise again in the coming year, usually calculated with trend
line analysis; however, an industry analyst notes that a key supplier's material shortage will push sales
down.

JURY OF EXECUTIVE OPINION:

Pros:

1. For a business that innovates new technologies, this approach is helpful.

2. Very fast and convenient procedure and regular meetings are easy to carry out.

3. Considering the views of all senior management, the collective decision was made.

Cons:

1. The views and experience are not fact-oriented.

2. Biased views can exist.
3. All the executives shall be held accountable for the decision and no one shall be held
responsible for any wrong prediction.

DELPHI METHOD:

Pros:

1. Allows the use of a commission with less inconveniences

2. Reactions are therefore weighted so that nobody can change the group's opinions
3. Regulated feedback on the opinion of the audience reduces noise

Cons:

1. The methodological principles are not explicit.

2. Reliability is not proven
3. Do not encourage dialogue with participants

SALES FORCE COMPOSITE:

Pros:

1. The sales force in their respective territory will use its intimate expertise and experience with
efficiency.
2. The sales manager is responsible for predicting sales and will also be held accountable if
anything goes wrong. If something goes wrong.
3. Because the sales agents themselves predict the sales, they are doing it further.
Cons:

1. The sales officers are not prediction experts

2. They cannot deliberately employ advanced forecasting technology so that the sales agent can
obtain further rewards or bonuses
3. The sales representative should be well aware of all the circumstances in his territories

Q3 – Why new product development is a need for various organizations? Also, briefly explain different
categories of new product development with a couple of examples for each. (Marks = 3)

The manufacturing of products is the blood of life for businesses and companies. The device could be an
auto, smartphone or coffee maker, for example. Services like the latest IT approach, new production
processes or a new philosophy in real estate marketing may also be used.

TYPES OF NEW PRODUCT DEVELOPMENT:

1. New to world products: The alternative term for new products (actually new products) already
shows that this is what most people will call a modern product. These are innovations which
produce a whole new market. Examples include: Polaroid, iPod, iPad and laser.
2. New to firm products: Products which include a company in a new category. The goods are not
new, but new to the company. The new product line asks the question of the product of
imitation: a "me-too." Examples: P&G shampoo, Hallmark gift products, the universal credit card
of AT&T, and so forth.
3. Existing product line: These are simple extending intended to represent the product line
available to the present markets of the company. Examples are P&G's Line Special K detergent,
Bud Light (drinks, snack bars, and cereals).
4. Revisions to existing Products: Today's goods have improved. Examples: Ivory Soap from P&G
and Tide power washing detergent have been revamped many times in their history.
5. Repositioning: Repositioning are items aimed at a new purpose or use. repositioning Examples:
Arm & Hammer baking soda relocated as a deodorant drain or refrigerator; aspirin repositioned
as a heart attack safety device.
6. Cost Reductions: This refers simply to new goods replacing old products within the chain,
delivering a comparable efficiency to the client at a lower cost. In terms of concept or
development, this may be more than selling a "new product."