Operations Management

December 2021 Examination

Question 1. Explain in detail the various types of plant layout concepts that are available in
operations management. Give examples on where each of these types can be employed
respectively. Briefly explain which layout would be applicable for a Retail store format.
(10 Marks)

Ans 1.
Introduction

Plant format alludes to the actual course of action of creation offices. It is the setup of offices,
work focuses and gear in the transformation interaction. It is a story plan of the actual offices,
which are utilized underway.

As per Moore "Plant format is an arrangement of an ideal course of action of offices including
staff, working gear, extra room, material taking care of hardware and any remaining supporting
administrations alongside the plan of best construction to contain this load of offices".

Idea and investigation

Goals of Plant Layout

The essential objective of the plant format is to amplify the benefit by course of action of all the
plant offices to the greatest benefit of absolute assembling of the item. The targets of plant
design are:

1. Streamline the progression of materials through the plant.

2. Facilitate the assembling system.

3. Maintain high turnover of in-process stock.

4. Minimize materials taking care of and cost.

5. Effective use of men, gear and space.

6. Make viable use of cubic space.

7. Flexibility of assembling activities and plans.

8. Provide for worker accommodation, wellbeing and solace.

9. Minimize interest in gear.

10. Minimize in general creation time.

11. Maintain adaptability of course of action and activity.

1. Item Layout

Item format is utilized to accomplish a smooth and quick progression of enormous volumes of
items or clients through a framework. This is made conceivable by profoundly normalized items
or administrations which require exceptionally normalized, dull handling tasks. A task is isolated
into a progression of normalized undertakings, allowing specialization of both work and gear.
The enormous volumes took care of by these frameworks for the most part make it affordable to
put significant amounts of cash in hardware and in work plan. Since just one or scarcely any very
much like things are involved, it is possible to mastermind a whole format to compare to the
innovative handling prerequisites of the item or administration included.

This format is for item centered frameworks, and are prominently known as 'Mechanical
production system". The work places are orchestrated in the work succession. The unrefined
substances enters toward one side of the line and individual activities are acted in the pre-fixed
succession and get changed over to the last shape. There is one stream for every item. The work
in-process and the material dealing with are least.
2. Interaction Layout

These format are intended to work with handling things or offering types of assistance which
present varieties in their handling necessities. The handling units are coordinated by capacities
into offices with the understanding that specific abilities and offices are accessible in every
office. Comparative supplies and activities are assembled together. For instance, turning,
processing, foundry, heat treatment. Things which require these tasks are much of the time
moved in groups to the divisions in a succession directed by specialized contemplations. Various
items may cal for various handling prerequisites and diverse succession of tasks. Thus, factor
way material dealing with gear is expected to deal with assortment of courses and things.

These formats, otherwise called "Utilitarian Layout' is process centered frameworks and are
utilized generally in assembling and administration areas. The utilization of universally useful
machines gives adaptability important to deal with a wide scope of handling prerequisites.
Laborers who work the types of gear are generally gifted or semi-talented. The case of cycle
design incorporates clinics, schools and colleges, banks, aircrafts and public libraries. For
example, medical clinics have numerous divisions like a medical procedure, maternity, crisis,
and so on Also colleges have separate offices that focus on various spaces of study as designing,
business the executives, math, and material science. In business association, there will be offices
like records, staff, and frameworks.

Since process formats mastermind types of gear by type instead of as per handling grouping, the
framework is substantially less powerless against closure brought about by either mechanical
disappointment or non-attendance. Material dealing with in wasteful and unit taking care of
expenses are for the most part a lot higher than in item designs. The interest in work-in-process is
high and material developments will take a crisscross course. The gear use nearly will be less.
Henceforth, this format is more appropriate for low volumes of creation and especially when the
item isn't normalized. It is efficient when adaptability is the essential framework necessities.
3. Fixed Layout

In this format, the material remaining parts in a proper position, yet hardware, apparatuses taking
care of gear, laborers are brought to the spot the material. This is as opposed to both item and
cycle formats. Such a format might be favored when the hardware and the apparatus is little in
number and size, and where the workers are exceptionally talented to play out the different little
positions on the item. Fixed position formats are utilized in huge development projects, transport
building, airplane producing and so forth

As a shopping complex, it is vital for join the capacities they have with holding open regions for
customers to walk through and examine the product available to be purchased. This will support
taking advantage of their benefits too. There should be a framework for putting away the items in
racks to keep them flawless and efficient. Retail shops need to monitor product offering formats
across their dividers. This is particularly significant when setting up their presentations. This
would decrease the wastage of the limit near the parts. It would also part with a phantom of the
accessibility of satisfactory offers in the store. The last space inside the center ought to be filled
through racks with product of comparable classifications. Same items can be grouped thusly. In
this manner, the blend design is the most fitting for the retail location. A mix format may give
the most reasonable answer for arranging retail keep because of its mixed technique. According
to necessity, the company's capacity permits the store to embrace the making arrangements
according to their picks.
Conclusion
The foremost unbiased of an appropriate plant design is to augment creation at the base of the
expenses. Additionally, This goal should remember while planning a format for another plant
just as while rolling out the essential improvements in the current design in light of changes in
administration strategies and cycles, and methods of creation. In addition, it should fulfill the
necessities surprisingly connected with the creation framework, for example laborers, bosses,
and chiefs.

Question 2. List down briefly the various inventory management techniques prevalent in
the industry.
Discuss how some of these techniques would be applicable to a General Store in effective
management of their inventories; i.e. grocery supplies, etc. (assume several inventories of
your choice). (10 Marks)

Ans 2.

Introduction
Stock administration is the means by which you track and control your business' stock as it is
purchased, fabricated, put away, and utilized. It oversees the whole progression of merchandise
— from buying directly through to deal — guaranteeing that you generally have the right
amounts of the right thing in the perfect area at the ideal time.

Idea and examination

Stock Management Techniques

That being said, stock administration is just pretty much as amazing as the manner in which you
use it.
It's certainly worth the additional time and cash to have stock administration set up by the
specialists who made the product. Work with them to ensure you're using the appropriate
strategies and components to get the most value for your money.

How about we investigate some stock control methods that might decide to use in retail
locations.

1. Financial request amount.

Financial request amount, or EOQ, is an equation for the ideal request amount an organization
needs to buy for its stock with a bunch of factors like complete expenses of creation, request rate,
and different components.

The general objective of EOQ is to limit related expenses. The recipe is utilized to recognize the
best number of item units to request to limit purchasing. The equation additionally takes the
quantity of units in the conveyance of and putting away of stock unit costs. This assists free with
increasing tied money in stock for most organizations.

2. Least request amount.

On the provider side, least request amount (MOQ) is the littlest measure of set stock a provider
will sell. In case retailers can't buy the MOQ of an item, the provider will not offer it to you.
For instance, stock things that cost more to create commonly have a more modest MOQ rather
than less expensive things that are simpler and more practical to make.

3. ABC investigation.

This stock arrangement method divides subjects into three classifications to distinguish things
that vigorously affect in general stock expense.

• Category A fills in as your most significant items that contribute the most to by and large
benefit.

• Category B is the items that fall some place in the middle of the most and least
significant.

• Category C is for the little exchanges that are essential for generally speaking benefit yet
don't make any difference much independently to the organization by and large.

4. Without a moment to spare stock administration.

Without a moment to spare (JIT) stock administration is a strategy that orchestrates natural
substance orders from providers in direct association with creation plans.
JIT is an incredible way of lessening stock expenses. Organizations get stock dependent upon the
situation as opposed to requesting excessively and gambling dead stock. Dead stock is stock that
was never sold or utilized by clients prior to being eliminated from deal status.

5. Wellbeing stock.

Wellbeing stock administration is additional stock being requested past anticipated interest. This
strategy is utilized to forestall stockouts regularly brought about by wrong guaging or
unexpected changes in client interest.

6. FIFO and LIFO.

LIFO and FIFO are techniques to decide the expense of stock. FIFO, or First in, First out,
expects the more seasoned stock is sold first. FIFO is an extraordinary way of keeping stock
new.

LIFO, or Last-in, First-out, accepts the more current stock is normally sold first. LIFO keeps
stock from turning sour.

7. Reorder point equation.

The reorder point equation is a stock administration strategy that depends on a business' own buy
and deals cycles that changes on a for every item premise. A reorder point is typically higher
than a wellbeing stock number to factor in lead time.
8. Cluster following.

Cluster following is a quality control stock administration method wherein clients can gathering
and screen a bunch of stock with comparable characteristics. This technique assists with
following the termination of stock or follow imperfect things back to their unique bunch.

9. Request estimating.

Request estimating ought to turn into a natural stock administration method to retailers. Request
anticipating depends on authentic deals information to detail a gauge of the normal estimate of
client interest. Basically, it's a gauge of the labor and products an organization anticipates that
customers should buy later on.

Conclusion

Stock is the greatest resource for your organization, so to set aside cash and bring in cash, you
want to secure that resource and sustain it the correct way. Without executing stock
administration methods, you'll never excel.

Question 3. A prominent caterer is planning to open up a mid-sized multi cuisine

restaurant. Considering his expertise and knowledge in the food and beverages services, he
is confident of getting into a full-fledged restaurant operation. You are required to suggest
the team on the following points:
a. Suggest a site location for the restaurant, assuming it to be Metro city (you can assume a
city of your choice). Give your reasons for the same (5
Marks)

b. What strategy would the restaurant adopt for an Aggregate Operation Plan of resources
given a time frame of a year? (5
Marks)

Ans 3a.

Introduction

Picking an area for your café is one of only a couple keys to productivity. Stopping and
availability can be as essential to an eatery's prosperity as extraordinary food and administration.
There is a well known saying in land that additionally remains constant for eateries: "You bring
in your cash when you purchase."

An eatery's area impacts numerous parts of your activity, including the menu and style of the
lounge area. In the event that you as of now have a specific eatery area at the top of the priority
list, couldn't get excessively connected until you say whether it has the appropriate prerequisites
for an effective café.

Idea and investigation

Four Important Factors

1. Parking: Ideally, another café area ought to have its own parking garage. In case that isn't
a choice—for instance, in a significant city—consider cooperating with an inn in the space that
has its own stopping choices. Numerous renowned cafés are housed in inns, and for a valid
justification. Not exclusively is there stopping, however the advantage of pedestrian activity that
is remaining right higher up is endless.

2. Accessibility: There's an explanation that significant café networks are regularly situated
close to thruway exits: It makes them available for clients. Certain cafés can pull off food or
administration that isn't the best just on the grounds that their areas are so open, similar to
eateries close to the Eiffel Tower or Collisseum. There is a lot of people strolling through in
urbanized regions, and eateries just need to draw in clients from the road into their business. Best
eateries—other than the genuinely first class—are not difficult to track down, and you will see
them in downtown areas or novel areas all through the world.

3. Visibility: This obliges openness and is vital for new café areas. Individuals need to
realize the eatery is there, either face to face or on their cell phones. It is the reason property
costs in midtown regions and created strips are higher than in different regions. They offer a
degree of perceivability that can acquire a lot of stroll in business. Think about publicizing in
web indexes and web-based media to upgrade your essence across all types of media. Try to
enroll your café in web indexes as the sort of food you offer and your value point, as it will be
simpler to draw in the customers you need when they go to look.

4. Population Base: Are there sufficient individuals nearby to help your business? There
should be sufficient individuals who live in or go through the space routinely to keep you
occupied. To decide a specific region's populace base, you could do a site study. In any case,
these can cost up to $25,000. The vast majority checking out their first café need more cash in
their spending plan for an expert overview. A more affordable technique to decide the populace
base of a specific region is to utilize a pie graph, just as requesting the neighborhood chamber
from business and town office for more data. On the off chance that you would prefer to look for
some kind of employment, basically stroll around the space where you intend to assemble.
Instinct can put a major job in picking your site.
Conclusion

Address this load of components when you plunk down to draft your field-tested strategy for
another eatery, which you will require prior to applying for an advance. Likewise, by seeing
every one of these components, you can more readily pick the right area for your new eatery.

Ans 3b.

Presentation

If a business decides to direct its activities decidedly, it can aid the satisfaction of the
organization's destinations. After choosing the plans, the business can tweak its arrangements as
per what will be accessible to them as far as substances and resources. If an arrangement has a
span of one year, it is feasible to deconstruct that arrangement into the necessary work force,
materials, monetary assets, and different assets needed for the business to achieve its
destinations. The term total activity plan alludes to arranging that happens in such a way. There
are three styles of systems to be had for this.

Idea and Analysis

1. Level technique
This sort of total arranging manages creating merchandise of comparative amounts over
equivalent length. This is done to deal with a top in market interest by taking care of out back
requests or by sending the additional items to stock. The level system is viewed as a
conventional total arranging strategy that keeps a consistent creation rate just as the level of the
labor force by proceeding with steady HR and creation in the association.

It is most appropriate where the stock conveying costs are not high and are taken on by chiefly
producing organizations. The upsides of utilizing level procedure are all around prepared labor
force as their progressions are not really regular, experienced specialists and a low pace of
truancy and representative turnover. A fundamental weakness of level methodology is
developing stock expenses during the lean time frame when the interest is low.

2. Pursue procedure

The pursuit procedure of total arranging puts its onus on diminishing stock. It stays up with
request variances by changing either real degree of yield or the labor force number. It is
considered not so inflexible as a level technique as it permits space for some deviation from the
traditional methodology. This approach assists with limiting waste by getting products when
required. It regularly prompts focused on representatives.

This procedure is well known in a few enterprises like emergency clinics, accommodation
business and instructive focuses like schools. The upside of pursue procedure is high adaptability
to satisfy the changes in need and the weaknesses identified with the system incorporate
significant expenses related with employing just as preparing the labor force.

3. Mixture technique for a total arranging

As the name demonstrates, the Hybrid technique is a mix of both level and pursue procedures to
improve result. It keeps an adequate harmony between stock level, selecting, end and creation
rate. In the half breed procedure of total arranging, the associations develop stock prior to rising
requests. It utilizes rainchecks to even out with high pinnacle periods.

It can undoubtedly cover transient tops by employing laborers for a brief time or by
subcontracting creation. Employing, lay-off and reassigning laborers is a typical piece of the
mixture technique.

Conclusion

Have a designated activity plan to limit pointless expenses for an organization. As such, it is
feasible to guarantee the arrangement has a possibility of progress. There are a few factors that
are just about as huge as choosing where to find your organization. Because of the presence of
opponent organizations, their clients might encounter less exchanges. Assuming half and half
methodologies are taken on, the probability of such misfortunes can be limited.