OPERATIONS MANAGEMENT

Ans1

Opting the right force operation for your business is no easy task. The briskly your
business grows, the more delicate managing your force becomes. That’s why setting
the right foundation from the launch is so critical.
Inventory Management Ways-
1. Bulk Shipments
2. ABC Inventory Management
3. Backordering
4. Just In Time( JIT)
5. Consignment
6. Dropshipping andCross-docking
7. Cycle Counting

1. Bulk shipments
This system banks on the notion that it's nearly always cheaper to buy and transport
goods in bulk. Bulk shipping is one of the predominant ways in the assiduity, which
can be applied for goods with high client demand.
The strike to bulk shipping is that you'll need to lay out redundant plutocrat on
warehousing the force, which will most probably be neutralize by the quantum of
plutocrat saved from copping products in huge volumes and dealing them off presto.
Pros of bulk shipments
• Loftiest eventuality for profitability
• Smaller shipments mean lower shipping costs
• Workshop well for staple products with predictable demand and long shelf lives
Cons of bulk shipments
• Loftiest capital threat eventuality
• Increased holding costs for storehouse
• Delicate to acclimate snappily when demand fluctuates

2. ABC force operation

ABC force operation is a fashion that’s grounded on putting products into orders in
order of significance, with A being the most precious and C being the least. Not all
products are of equal value and further attention should be paid to further popular
products.
Although there are no hard- and-fast rules, ABC analysis leans on periodic
consumption units, force value, and cost significance. Orders generally look
commodity like
Order A
Particulars of high value( 70)
and small in number( 10)
Order B
Particulars of moderate value( 20)
and moderate in number( 20)
Order C
Particulars of small value( 10)
and large in number( 70)
The key is to operate each order independently, particularly when picky control,
allocation of finances, and mortal coffers are needed.
Pros of ABC force operation
• Aids demand soothsaying by assaying a product’s fashionability over time
• Allows for better time operation and resource allocation
• Helps determine a tiered client service approach
• Enables force delicacy
• Fosters strategic pricing
Cons of ABC force operation
• Could ignore products that are just starting to trend overhead
• Frequently conflicts with other force strategies
• Requires time and mortal coffers

3. Backordering
Backordering refers to a company’s decision to take orders and admit payments for
out- of- stock products. It’s a dream for utmost businesses but it can also be a
logistical agony … if you ’re not prepared.
When there’s just one out- of- stock item, it’s simply a case of creating a new
purchase order for that one item and informing the client when the backordered item
will arrive. When it’s knockouts or indeed hundreds of different deals a day, problems
begin to mount.
Alternately, some businesses run with a “ no- stock ” approach which involves taking
only backorders until they ’ve generated enough deals to also place a large bulk in
order with a supplier.
Pros of backordering
• Increased deals and cash inflow
• Further inflexibility for small businesses
• Lower holding costs and lower overstock threat
Cons of backordering
• Advanced threat of client dissatisfaction
• Longer fulfillment times

4. Just in Time( JIT)

Just In Time( JIT) force operation lowers the volume of force that a business keeps
on hand. It's considered a parlous fashion because you only buy force a many days
before it's demanded for distribution or trade.
JIT helps associations save on force holding costs by keeping stock situations low
and eliminates situations where deadstock- basically frozen capital- sits on shelves
for months on end.
Pros of JIT
• Lower force holding costs
• Advanced cash inflow
• Lower deadstock
Cons of JIT
• Problems fulfilling orders on time
• Minimum room for crimes
• Threat of stockouts

5. Consignment
Consignment involves a wholesaler placing stock in the hands of a retailer, but
retaining power until the product is vended, at which point the retailer purchases the
consumed stock.
For retailers, dealing on consignment can have several benefits, including the
capability to
• Offer a wider product range to guests without tying up capital
• Drop pause times when restocking products
• Return unsold goods at no cost
While utmost of the threat in dealing on consignment falls on the wholesaler, there
are still a number of implicit advantages for the supplier
• Test new products
• Transfer marketing to the retailer
• Collect useful information about product performance
If you consider dealing on consignment — as either a retailer or wholesaler — set
terms easily regarding the
• Return, freight, and insurance programs
• How, when, and what client data is changed
• Chance of the purchase price retailer will be taking as deals commission

6. Dropshipping andcross-docking
This force operation fashion eliminates the cost of holding force altogether. When
you have a dropshipping agreement, you can directly transfer client orders and
payload details to your manufacturer or wholesaler, who also vessels the goods.
Analogous to dropshipping,cross-docking is a practice where incomingsemi-trailer
exchanges or road buses discharge accoutrements directly onto outbound
exchanges, campers, or rail buses.
7. Force Cycle counting
Cycle counting or involves counting a small quantum of force on a specific day
without having to do an entire homemade stocktake. It’s a type of slice that allows
you to see how directly your force records match up with what you actually have in
stock.
This system is a common part of numerous businesses ’ force operation practices,
as it eventually helps insure that guests can get what they want, when they want it,
while keeping force holding costs as low as possible.
Pros of cycle counting
• Further time- and cost-effective than doing a full stocktake
• Can be done without dismembering operations
• Keeps force holding costs low
Cons of cycle counting
• Lower comprehensive and accurate than a full stocktake
• May not regard for seasonality

Ans 2
Type of Plant Layout
The popular sorts of plant layout are:
1. Process layout
2. Product layout
3. Combined layout
4. Project layout
5. Group Layout
Process Layout
This type of layout is additionally called functional layout. All machines performing an
analogous style of operations are grouped at one location within the process layout
e.g., all lathes, milling, machines, cutting machines etc. within the engineering shop
are clustered in their like groups. Thus all forging are going to be worn out one area
and every one the lathes are going to be placed in another area.
In this layout, several products may share a machine to form its full use. The
sequential arrangement of the machine group is mostly, but not necessarily made on
the idea of labor operations.
In this form of layout, the method instead of the merchandise has dominating role.
the merchandise is given secondary consideration and is moved for the aim of
operations to the method section with like machines stationed at a specific point. this
kind of layout is more suitable to job order kind of production.
Product layout
In this kind of layout, the machines are arranged within the sequence as needed by
the actual product. All machines pro re nata to balance the actual merchandise are
arranged in a very sequential line but not necessarily within the line. it's also referred
to as “ the merchandise line layout.”
In this layout, one product goes through all the machines lined up, within the order
required by its manufacture. The best-known example of this sort of layout is seen in
motor car production. to form this layout successful, the workload on the assorted
machines must be balanced. the method of return loading at each stage of
production is termed line balancing.
In this style of layout, the merchandise is dominating over the method, within the
sense that the merchandise is given the first importance and also the process
machine must remain present at some extent where the merchandise needs its
services.
Thus, unlike the method layout, the method is given secondary importance in regard
to the merchandise. Product layout is more suitable for continuous flow-production
with few items of production. It doesn't require frequent changes in machine founded.
Combined Layout
Generally pure process or pure product layout isn't found in practice. Both process
and merchandise layouts are mutually exclusive. Proper compromise reaping the
advantages of both the layouts is feasible to some extent. So efforts are made to
possess the combined layout incorporating the advantages of process and products
layout.
Combined layout is developed as under:
• Product layout for the most product with a process layout for joint or by-product
tapping the idle capacity of product layout together with marginal investments
required in process layout.
• To diversify the assembly with a view to tap the idle capacity of the merchandise
layout. Products with an entire correlation with the merchandise line can make the
utmost use of idle capacity of the merchandise layout.
• In the merchandise layout, some process could also be segregated from the
merchandise line e.g., objectionable, hazardous, requiring special treatment and
repetitive performance etc.
Project Layout
The manufacturing operation require the movements of men, machines and
materials. Generally few inputs tend to be static while the others are moving.
In the product layout and process layout generally the machines have fixed
installations and also the operators are static in terms of their specified work stations.
It is only the materials which move form operation to operation for the aim of
processing. But where the merchandise is large in size and heavy in weight, it tends
to be static, e.g., shipbuilding.
In such a production system, the merchandise remains static and also the men and
machines move performing the operations on the merchandise. the assembly
characteristics are sufficient enough to treat it as a separate sort of layout, viz. static
product layout.
Group Layout
Here an effort is formed to introduce a number of the benefits of a line layout into a
situation where pure line layout isn't practicable. Here machines are placed in
groups.
Each machine group makes maximally of parts which require similar treatment. This
layout lies between process layout and line layout. it's easier to regulate than a
strictly process layout and has more flexibility into the manufacturing system as
regards the batch size variations and therefore the differing operations sequences.
Store Layout

What you'll learn to do: Explain the value of a thoughtful store layout

A retailer measures so many things: the average ticket sale for each customer that
comes through, the sales per square foot of the store, the penetration of particular
product brands, and more. But one thing matters more than any other—customer foot
traffic. None of those other metrics matter if you can’t get a customer in the door.

In the last section, we talked about the different kinds of store layouts and the products
that are best displayed in them. Now we’re going to talk about traffic flow in a store, how
ignoring our four customer behaviors can make or break a sale. A happy, relaxed
customer who’s engaged in the shopping experience will spend more, and a confused,
disoriented customer will leave.
LEARNING OUTCOMES

 Describe customer shopping behaviors and traffic-flow patterns

 Compare and contrast various store layout designs
 Explain how a retailer classifies its products into layout groupings

Customer Shopping Behaviors

We’ve talked about store layout—that is, how your store is physically constructed to
serve the customer. Now we’re going to talk a little bit about customer traffic-flow
patterns, or how your customer walks through the store.

Remember that customers can only buy the merchandise they see. If your layout doesn’t
encourage them to move past the merchandise you have on display, they aren’t going to
buy it. Or, as they say in retail, you won’t see sales conversion for those products.

This is a good time to remind you about those customer behaviors we discussed in the
last section:

 Shoppers enter and almost always turn right, walking counterclockwise

 Shoppers avoid upper and lower floors, they like to shop the floor they
entered on
 Shoppers hate narrow aisles
 Shoppers need to “orient” themselves before starting to shop the store

Any part of your store layout that doesn’t serve these four customer behaviors in mind is
going to fail you.

Let’s take a look at a store layout and a heat map of its traffic flow. [2]

It appears this store is mostly a grid format, with a little free form or “mixed layout” going
on near the entrance to add some visual interest. Is this layout working for the retailer?
Let’s take a look at those customer behaviors and see if all of their shopping layout
needs have been met.

Does this store allow for counterclockwise walking? It does! In fact, it doesn’t give the
customer any choice, turning left would be walking into the storage area of the store.
They have to go right.

Does this store have upper and lower floors? It’s hard to determine from this drawing.
We’ll say no.

Does this store have wide enough aisles? It would appear not! Look at the area that’s
circled. The fixtures there are set quite close together. And the heat map shows that
customers aren’t going back there. The merchandise the retailer has displayed there is
going unseen by customers (and is therefore not purchased).

Does this store have a “transition zone”? It absolutely does. The area right after the
entrance is open and clean, and the first fixtures aren’t for another few feet.

This quick analysis lets us know that the retailer’s customer traffic flow through the store
isn’t what he hoped in certain areas, and he’s maybe not converting as well as he could
be. We know that customers aren’t going back there because they don’t want to shop in
tight spaces, so traffic flow could be improved by removing a fixture and making the area
easier to walk through.

In the next section, we’ll study some examples of store layouts and how a retailer can
leverage those layouts to influence customer traffic flow and increase sales conversion.

Store Layout Designs

Each store layout has its pros and cons, and every layout provides a retailer with some
ways to influence traffic flow. Here we’ll take a look at a pair of various layouts, what
the pros and cons are for shoppers who are experiencing this kind of layout, and a few
ways in which retailers can maximize their sales conversions.

Grid Layout
The grid layout is that the most typical store layout you’re visiting find in retail.
employed in supermarkets, drug stores, and lots of big box retail stores, it’s used when
stores carry lots of products (particularly different sorts of products), or when a retail
location must maximize space.

Pros of the grid layout

• It’s easy to categorize products
• Shoppers are accustomed the grid layout style and shop it easily

Cons of the grid layout

• It’s boring, and it’s difficult to use this layout to make a “shopping experience” for
the customer
• Customers often can’t take shortcuts to what they have
• Line of sight is proscribed, forcing a customer to appear up and down aisles
• Visual “breaks” are needed to stay shoppers engaged

That said, the grid format is so common in retail that it’s been well studied and
retailers understand how to leverage it to extend sales conversion. Here are some ways
they are doing that:
• Well-placed promotions. Eye level and a touch to the left, in fact. If you’re walking
through a grid format store counterclockwise, you’re visiting notice that which could
be a little earlier than you. On a turn, meaning the promotion are at eye level and a bit
off to your left, where you’re looking as you walk. Things don’t get noticed in
corners.
• Power walls. Because you'll be able to leverage your wall space so well during a grid
format store, you'll cash in of this to make power walls. Power walls allow you to
display merchandise to draw shoppers into a region they may otherwise overleap in
normal traffic patterns. Retailers use repetition by putting plenty of a specific product
on the wall, perhaps in numerous colors or sizes. take a look at this great one-minute
video about power walls.
• End caps and visual displays. Aisle fixtures must end, and typically the ends of these
aisles are prime assets to place up a product display. We’ll learn more about these
within the next section, but suffice it to mention, you've got more opportunities to
leverage the ends of these aisles with displays and signage during this format than the
other.

Racetrack or Loop Layouts

If you’re selling a product that folks want to browse, touch and appearance at, then the
racetrack, or loop, layout is one to contemplate. Customers follow a prescribed path
through the merchandise and skill it the way the retailer wants it to be seen.

Pros of the racetrack layout

• Retailers can provide an excellent “shopping experience” using this layout
• Promotions are easier to execute, because the layout really controls what the
consumer sees
• Encourages browsing

Cons of the racetrack layout

• Customers who want to run in and develop something quickly are often discouraged
when faced with this layout
• Not an honest layout for a high-turnover store, sort of a pharmacy or a shop

In this reasonably layout, the retailer doesn’t actually need to influence traffic flow,
because traffic can really only move a method. this is often what makes the layout so
perfect for executing promotions. The retailer knows where the consumer goes to
seem next, and promotions are arranged accordingly – eye level and a bit to the
proper.

Mixed, or Free Flow, Layout

This layout is anything the retailer wants it to be, in any shape or place. Customer
behavior is that the only consistent aspect of this type of layout: we all know they'll
enter and switch right, we all know that they won’t want to travel up or down a floor
which they won’t shop in too narrow an aisle.

Pros of the mixed layout

• Ideal for a store offering smaller amounts of merchandise
• Easy to form a shopping experience during this layout

Cons of the mixed layout

• Less space to display product
• Easier to confuse the customer

Traffic flow can easily be disrupted if there isn’t some logic to how items are
displayed within the store, and if that logic doesn’t exist, it’ll create shopper
confusion. Confused shoppers exit the shop nearly immediately and typically without
purchasing anything.

Retailers can control traffic flow by placing promotions and visual displays as “speed
bumps” can entice the consumer from one merchandise “lily pad” to the following.
Power walls are often created during this format to draw in the patron as he or she
moves along the shop. If customers are missing part of the shop, retailers can alter
traffic flow by altering the fixtures within to make a replacement path.

Ans 3 (a)

How does one Choose the foremost Appropriate Location for various varieties of
Restaurants?

Different restaurants demand different sorts of audiences and thus it's important to
grasp the proper location or ’hotspot’ for your quite restaurant. Five types of
restaurants are mentioned here with their respective hotspots.

a) Quick Service Restaurant

A Quick Service Restaurant must be around universities or schools where they're

able to meet the correct quite audience. Since people come to Delhi from
everywhere the country for his or her studies and other purposes, they have places
like these to require care of their hunger pans and are also pocket-friendly.

Places like North Campus, GTB Nagar, Kamla Nagar, Netaji Subhash Place and
places surrounding these areas are well-established teenage-spots, which is why
they're popularly the most effective location for sustenance restaurants. People with
vegetarian as their specialty cuisine should choose areas from North Delhi.
Accessibility and recognition is one aspect which you won’t must worry about here.
together with that, there's ample room for growth here. Whereas, the downside of
selecting these places is that you simply will must face plenty of competition.

Other places like Greater Kailash, South Campus, and Khan Market work for every
kind of restaurants as there's plenty of corporate crowd for your visibility. Another
advantageous aspect would be the recognition aspect that you simply gain there.

Some university students may additionally be attracted once you've got a reputation
within the market. All said and done, you would like to target the standard of your
menu and place, to face out from your competitors.

b) Casual-Dining Restaurant

There is a mixed population in Delhi, which implies there are people from villages,
students and families. to contemplate an informal dining place, you wish to either
focus well-established malls or markets near households as walk-in traffic is one
among the key sources of revenue for them.

A few of my suggestions would be the Khan Market, where you'll expect plenty of
families. it's a secure area for families, with a minimal rate, you’d get enough space
for your restaurant and also would be ready to grow more. The property costing here
would vary from Rs. 600-800 per square feet.

On the opposite hand, places like Greater Kailash part1 and Epicuria Mall in Nehru
Place, where you'll be able to expect a rental costing of about Rs. 300-500 per
square feet. There are lots of families expected here, and there aren't any issues
associated with parking.

For vegetarian cuisine, Prashant Vihar in Rohini is one amongst the hotshot markets
for casual dines. In fact, they'd not allow non-vegetarian restaurants an area within
the market. Whereas Indian and Chinese cuisine would mostly add Janakpuri but
would be priced a touch on the lower side.

CP is that the central a part of Delhi, and thereby attracts plenty of traffic. Marketing
are a cakewalk for a restaurant in CP, as there are spaces for advertisements and
therefore the word of mouth being an in depth strategy. the simplest part about
choosing a restaurant here is that the accessibility from everywhere Delhi. You’d find
people from Gurgaon and people of Noida hanging come in CP. Renting an area
here would cost you a touch extra but there would be an altogether profit of about 4
times. Having the correct technology to streamline operations and handle higher
footfall in these restaurants becomes crucial.

Some areas of Rohini including Sector 7, Sector 9 and around M2K market may be a
pleasant place for casual dining. you'll expect lots of family crowd as there are plenty
of societies around.
You could also try Hudson Lane in North Delhi to be your ideal restaurant location
because it is kind of famous among families and teenagers. Being close to
household areas, walk-in traffic would be the most effective thanks to make a profit
here. you'd should loosen your pockets a bit here and might expect a rent of about
300-500 per square feet. Also, watch out for the competition!

c) Fine Dining Restaurant

A fine dining restaurant is best suited in areas where there are people that have a
much better paying capacity and need to measure the next standard of living. There
are many such areas in South Delhi including Greater Kailash, Lodhi Road and Khan
Market where the property rate may be a touch high but the profits are equivalently
higher. Other important advantages of getting an area here are safety, minimal
parking issues and adequate space.

Since it's a widely known indisputable fact that South Delhi has posh traffic, it'd be a
wiser decision to take a position in those markets if it fits your pocket. aside from
those, Connaught Place being the hub for all foodies, you need to consider getting
an area there. the simplest fine-dine places presently are dead CP, thanks to
accessibility, popularity, room for growth and marketing perspectives.

A very few areas in Dwarka have some Fine Dine restaurants in Delhi. it's mostly a
community and also the rental costings are touching the sky, because of which not
all restaurants survive. The delivery market overpowers different kinds of restaurants
in and around this area.

Since investments are one major issue, you may consider Indirapuram and Noida as
your go-to places for a fine dining restaurant.

d) Restrobar

A restrobar could be a major attraction for office going crowd and younger
generation. there's often loud music and a vibe unmatching that of a family. The
hotspots for resto-bars in Delhi are CP and Punjabi Bagh. there's regular traffic
together with it being the very best on weekends. a number of these places don’t
have parking facilities as they promote no driving after drinking, which is right.

Along with these Sector 29, Gurgaon is additionally gaining popularity among
youngsters. but extensive crowd, you'll also expect competition, and space issues.
the most important issues here would be getting all of your licenses in situ, there are
about 20-25 licenses that you just must put so as before you serve your first pint!

The main market of Rajouri Garden is totally famous for Restrobars, but you'll mostly
find a family crowd in there. this can be why you need to choose this place just in
case you’re bringing in your non-vegetarian and also the place incorporates a theme
specializing in families.
e) Food Truck

Food trucks are generally accepted to a tolerable degree where people are able to
experiment with newer cuisines and aren’t pocket sensitive. this can be why
Gurgaon, which is that the corporate hub of Delhi NCR sees more food trucks than
the other a part of Delhi.

A couple of areas in Gurgaon, especially Sector 29 should be your ideal space for
that. However, the newer food trucks in Sector 29 are losing their charm. we'd
suggest that you simply try other areas from Gurugram, just like the golf links Road,
Sohna Road, Sector 60, Sector 61 and lots more around these markets

A mixed crowd of families, youngsters and therefore the office crowd is mostly seen
here. together with that, you'll expect to sell different forms of cuisines here as
families expect slightly of newness. Your marketing strategies could end up to be
super successful for you here as there are regular food bloggers and social media
influencers stepping during this area.

To sum up, a restaurant owner must be prepared for both the adversities, the
simplest and worst of the outcomes. Choosing the correct restaurant location would
only raise the higher side of outcomes and will turn it into an even bigger success
than predicted. Whereas you want to also understand that the statistics and
population are constantly changing, affecting your decisions thereafter.

Ans 3(b)

What's Aggregate Planning?- Significance and its Strategies

Preface

An association can finalize its business plans on the recommendation of

demand cast. Once business plans are ready, an association can do
backward working from the final deals unit to raw accoutrements needed.
Therefore periodic and daily plans are broken down into labor, raw material,
working capital,etc. conditions over a medium- range period( 6 months to 18
months). This process of working out product conditions for a medium range
is called aggregate planning.

Factors Affecting Aggregate Planning

Aggregate planning is an functional exertion critical to the association as it

looks to balance long- term strategic planning with short term product
success. Following factors are critical before an aggregate planning process
can actually start;

A complete information is needed about available product installation and raw

accoutrements.
A solid demand cast covering the medium- range period

Fiscal planning girding the product cost which includes raw material, labor,
force planning, etc.

Organization policy around labor operation, quality operation,etc.

For total planning to be a success, following inputs are needed;

An aggregate demand cast for the applicable period

Evaluation of all the available means to manage capacity planning likesub-

contracting, outsourcing, etc.

Being functional status of pool( number, skill set,etc.), force position and
product effectiveness

Aggregate planning will insure that association can plan for pool position,
force position and product rate in line with its strategic thing and ideal.

Aggregate planning as an Functional Tool

Aggregate planning helps achieve balance between operation thing, fiscal

thing and overall strategic ideal of the association. It serves as a platform to
manage capacity and demand planning.

In a script where demand isn't matching the capacity, an association can try to
balance both by pricing, creation, order operation and new demand creation.

In script where capacity isn't matching demand, an association can try to

balance the both by colorful druthers similar as.

Laying off/ hiring excess/ shy excess/ shy excess/ shy pool until demand drop/
increase.

Including overtime as part of scheduling there by creating fresh capacity.

Hiring a temporary pool for a fix period or outsourcing exertion to asub-

contrator.

Significance of Aggregate Planning

Aggregate planning plays an important part in achieving long- term objects of

the association. Aggregate planning helps in

Achieving fiscal pretensions by reducing overall variable cost and perfecting

the nethermost line

Maximum Application of the available product installation

Give client delight by matching demand and reducing stay time for guests

Reduce investment in force grazing

Suitable to meet scheduling pretensions there by creating a happy and

satisfied work force

Aggregate Planning Strategies

There are three types of aggregate planning strategies available for

association to choose from. They're as follows.

1. Level Strategy

As the name suggests, position strategy looks to maintain a steady product

rate and pool position. In this strategy, association requires a robust cast
demand as to increase or drop product in expectation of lower or advanced
client demand. Advantage of position strategy is steady pool. Disadvantage of
position strategy is high force and increase back logs.

2. Chase Strategy

As the name suggests, chase strategy looks to stoutly match demand with
product. Advantage of chase strategy is lower force situations and back logs.
Disadvantage is lower productivity, quality and depressed work force.

3. Mongrel Strategy

As the name suggests, mongrel strategy looks to balance between position

strategy and chase strategy.