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CRITICAL ANALYSIS OF PRODUCTION


OPERATION MANAGEMENT OF PUSTI
FOOD
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From Farm to Table: Exploring PUSTI's Journey in Bangladesh


(MGT337)

Prepared For,
Sunny Saha
Senior Lecturer
Department of Business Administration
East West University

Prepared By,

Member Name Student ID Participation

Tasneem Kayser Moona 2020-2-10-020 20%


Md Nahid Hassan Utsho 2020-2-10-089 20%
Mir Arshedul Islam Nibir 2020-1-10-102 20%
Ammatun Ferdous 2021-3-10-327 20%
Afsana Biswas Samia 2022-1-10-174 20%

Submission Date: 25 April 2024


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Letter Of Transmittal
25.04.2024
Sunny Saha
Senior Lecturer,
Department of Business Administration
East West University
Aftabnagar, Dhaka-1212, Bangladesh

Subject: Term paper on Pushti by T K Group

Dear Sir/Ma’am,
We are pleased to submit the attached term paper titled "From Farm To Table : Exploring PUSHTI’s
Journey In Bangladesh" as part of the requirements for MGT337 at East West University.

The primary objective of this study was to conduct a comprehensive analysis of PUSTI, a prominent
consumer brand in Bangladesh under the esteemed T.K. Group conglomerate. This paper explores the
brand's evolution, market strategies, and impact within the consumer goods industry of Bangladesh.
The term paper delves into key aspects of PUSTI's success, including its operation management process,
productivity variables, forecasting, product layout and quality assurance. Through a combination of
primary research, including interviews and surveys, and secondary research utilizing industry reports and
academic literature, this study offers valuable insights into PUSTI's significance within the market.
We trust that this term paper will provide valuable insights into the success story of PUSTI and its
significance within the broader context of Bangladesh's economic landscape.

Thank you for considering this submission. We are available to discuss the contents of this term paper in
further detail if needed.

Yours sincerely,

Afsana Biswas

ID : 2022-1-10-174

On Behalf Of The Group


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Acknowledgement
We would like to express my sincere gratitude and appreciation to all those who contributed to the
completion of this term paper titled "From Farm To Table : Exploring PUSHTI’s Journey In Bangladesh".

First and foremost, We are deeply thankful to Miss Sunny Saha, our academic supervisor, for their
invaluable guidance, support, and insightful feedback throughout the research process. Their expertise and
encouragement played a crucial role in shaping the content and structure of this term paper.

We extend our appreciation to the management and staff of T.K. Group, particularly those associated with
the PUSTI brand, for their cooperation and willingness to share insights into the operations and strategies
that have propelled PUSTI's success in the consumer goods market of Bangladesh.

We are also grateful to the individuals who provided valuable information related to PUSTI's market
presence and consumer perception. Their contributions enriched the qualitative aspects of this study.

Furthermore, We acknowledge the authors of the academic literature, industry reports, and publications
that formed the foundation of this research. Their work provided essential context and theoretical insights
into the dynamics of the consumer goods industry and brand management.

Each of these individuals and organizations played a significant role in the completion of this term paper.
I am truly grateful for their assistance and contributions.

Thank you all for your support.


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Table of Contents
LETTER OF TRANSMITAL ....................................................................................................................... 3
ACKNOWLEDGMENT ............................................................................................................................... 4
EXECUTIVE SUMMARY ........................................................................................................................... 6
Introduction ................................................................................................................................................... 8
Operation management process ..................................................................................................................... 8
Input-Transformation-output process .......................................................................................................... 10
Operation process characteristics ................................................................................................................ 12
Volume .................................................................................................................................................... 12
Variety ..................................................................................................................................................... 12
Variation .................................................................................................................................................. 12
Degree of visibility .................................................................................................................................. 12
Productivity .................................................................................................................................................. 13
Productivity variables .................................................................................................................................. 14
Labor....................................................................................................................................................... 14
Capital ..................................................................................................................................................... 14
Management ............................................................................................................................................ 14
Forecasting time horizon ............................................................................................................................. 15
Types of time horizon .............................................................................................................................. 15
Time horizon of PUSTI Food Ltd. .............................................................................................................. 16
Forecasting approaches ............................................................................................................................... 16
Qualitative ............................................................................................................................................... 16
Quantitative ............................................................................................................................................. 17
Components of Demand............................................................................................................................... 18
Basic layout types ........................................................................................................................................ 19
Product layout types .................................................................................................................................... 20
MRP inputs & outputs ................................................................................................................................. 21
Quality assurance of pusti.................................................................................................................23
Conclusion ................................................................................................................................................... 23
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Executive Summary
This executive summary provides a condensed overview of the key findings and analyses presented in the
comprehensive term paper on operation management processes, with a focus on a variety of aspects
including input-transformation-output processes, operation process characteristics, productivity,
forecasting, layout types, and quality assurance.

The term paper begins with an Introduction that sets the stage by outlining the importance of operational
management in modern business environments. It highlights how efficient operation management
processes can contribute to organizational success and competitiveness.

The Operation Management Process section delves into the fundamental processes involved, emphasizing
the interplay between inputs, transformations, and outputs within operational systems. This section serves
as the foundational framework for understanding subsequent discussions.

Next, the term paper explores the characteristics of operation processes, encompassing volume, variety,
variation, and degree of visibility. These characteristics are essential in determining the appropriate
operational strategies and resource allocation.

Productivity is a central theme analysed in the paper, with a detailed examination of productivity variables
such as labour, capital, and management. The discussion underscores the significance of optimizing
productivity to achieve operational efficiency and performance.

Forecasting emerges as a critical aspect of operational management, where different forecasting time
horizons and approaches—qualitative and quantitative—are explored. Understanding demand
components and forecasting methods assists in effective resource planning and decision-making.

Layout types in operations management are examined, distinguishing between basic layout types and
product layout types. Each layout type has unique implications for workflow efficiency and resource
utilization.

The term paper further delves into the concept of Material Requirements Planning (MRP), detailing its
inputs, processes, and outputs. MRP is crucial for managing inventory and production schedules, ensuring
timely availability of materials.

Quality assurance is another pivotal area covered, emphasizing the importance of implementing quality
control measures to meet customer expectations and uphold organizational standards.
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In conclusion, the term paper consolidates the discussed topics and emphasizes the integral role of
operational management in optimizing processes, enhancing productivity, and ensuring quality in
organizational operations. It underscores the strategic importance of operational decisions in achieving
competitive advantage and organizational success.
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Introduction
Bangladesh's consumer products sector has experienced impressive expansion and change as a result of
creative brands that respond to changing customer wants and market trends. TK Group's Pushti is one of
these brands that has become well-known and is renowned for its dedication to quality, innovation, and
customer satisfaction.

This term paper aims to delve into the success story of Pushti, a leading consumer brand from the
renowned TK Group conglomerate in Bangladesh. Pushti has carved a niche for itself in the competitive
consumer goods market, offering a diverse range of products that resonate with Bangladeshi consumers.

This term paper's introduction establishes the background by emphasizing the importance of researching
Pushti in relation to the larger consumer goods sector. It emphasizes how crucial it is to comprehend
Pushti's history, target market, creative goods, and tactical moves that have fueled the company's growth.

By conducting a comprehensive analysis of Pushti, this term paper seeks to provide insights into the
factors driving its success and its implications for the broader business landscape in Bangladesh. It will
leverage primary research, including interviews and surveys, along with secondary research using industry
reports and academic literature, to paint a holistic picture of Pushti's brand journey and market impact.

In summary, the subsequent sections of this term paper will explore the intricacies of Pushti by TK Group,
offering a detailed examination of its brand identity, market strategies, product innovation, and
contributions to the consumer goods sector in Bangladesh.

Operation Management Process


The operation management process of Pushti by TK Group involves a strategic approach to managing its
manufacturing and supply chain operations to ensure the production and delivery of high-quality consumer
goods efficiently. Here is an outline of the operation management process specific to Pushti:

Product Design and Development:

Pushti emphasizes product design that reflects consumer preferences and market trends.
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The operation management team collaborates with product development to create innovative and
appealing products.

Procurement and Supplier Management:

Pushti's operation management involves sourcing raw materials, packaging materials, and other inputs
from reliable suppliers.

Supplier relationships are managed effectively to ensure timely delivery and quality consistency.

Production Planning and Scheduling:

The operation management team develops production plans and schedules based on demand forecasts and
inventory levels.

Efficient scheduling optimizes production capacity and minimizes lead times.

Quality Control and Assurance:

Pushti maintains stringent quality standards throughout the production process.

Quality control measures are implemented to monitor product quality and identify areas for improvement.

Inventory Management:

Operation management oversees inventory levels to balance supply and demand.

Just-in-time (JIT) principles may be applied to minimize inventory holding costs while ensuring product
availability.

Manufacturing Operations:

The manufacturing process is optimized for efficiency and productivity.

Lean manufacturing principles may be applied to eliminate waste and streamline operations.

Logistics and Distribution:

Operation management coordinates logistics activities, including transportation and warehousing.

Distribution networks are managed to ensure timely and accurate delivery to retailers and customers.

Performance Monitoring and Continuous Improvement:


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Key performance indicators (KPIs) such as production output, quality metrics, and cost efficiencies are
monitored.

Continuous improvement initiatives are implemented based on data analysis and feedback.

Risk Management:

Operation management identifies and mitigates operational risks that could impact production or supply
chain continuity.

Contingency plans are in place to address potential disruptions.

Environmental Sustainability:

Pushti's operation management integrates sustainability practices into operations, such as reducing waste
and minimizing environmental impact.

Overall, the operation management process of Pushti by TK Group focuses on optimizing every stage of
the value chain to deliver high-quality consumer goods efficiently while maintaining sustainability and
continuous improvement. This strategic approach contributes to Pushti's success in the competitive
consumer goods market of Bangladesh.

Input-Transformation-Output Process
The TK Group's Pushti Input-Transformation-Output (ITO) process describes how operational procedures
convert inputs into completed goods. This is a thorough rundown of the Pushti-specific ITO procedure:

1.Input:

Raw Materials: Pushti sources high-quality raw materials, such as grains, pulses, spices, and other
ingredients, from trusted suppliers.

Packaging Materials: Various types of packaging materials, including pouches, jars, and containers, are
procured to ensure product freshness and shelf appeal.
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Labor: Skilled labor is employed for production activities, including processing, packaging, and quality
control.

Equipment and Machinery: Pushti utilizes modern equipment and machinery for processing, mixing,
filling, and packaging products efficiently.

Information and Technology: Operational processes are supported by information systems for inventory
management, production planning, and quality assurance.

2. Transformation:

Processing: Raw materials undergo various processing stages, including cleaning, sorting, grinding,
mixing, and cooking as per product requirements.

Packaging: Processed products are packaged using automated packaging lines, ensuring hygiene and
product integrity.

Quality Control: Throughout the transformation process, quality checks are conducted to maintain
product standards and compliance with regulatory requirements.

Value Addition: Value-added processes such as flavor enhancement, fortification, and product
customization are performed to meet consumer preferences.

3. Outputs:

Finished Products: The transformed outputs are high-quality food products, including spices, pulses,
flour, snacks, and ready-to-eat meals, packaged and labeled under the Pushti brand.

Packaged Goods: The finished products are packaged in attractive and functional packaging, ready for
distribution and sale in retail outlets.

Waste and By-products: Waste materials generated during processing are managed responsibly,
minimizing environmental impact through recycling or disposal.

The Input-Transformation-Output process at Pushti focuses on efficiency, quality, and innovation to


deliver consumer goods that meet market demands and exceed customer expectations. By optimizing each
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stage of the process, Pushti ensures the production of safe, nutritious, and flavourful products that
contribute to its success in the consumer goods industry of Bangladesh.This ITO process underscores
Pushti's commitment to operational excellence and continuous improvement in transforming inputs into
value-added outputs that benefit consumers and stakeholders alike.

Operation process characteristics


PUSTI’ is one of the leading consumer brands of Bangladesh from the house of T. K. GROUP.

Though operation processes are similar in that they all transform inputs to outputs, they do differ

in some ways. Four of them are:

1. The volume of their output


2. The variety of their output
3. The variation in the demand for their output
4. The degree of visibility which customers have of the creation of their output

These four characteristics are categorized into low and high.

Volume: Pusti's operation process might have high volume, especially if it's a popular or widely-used
service or product. This means they might produce or handle a large quantity of items or serve a large
number of customers.

Variety: Depending on the nature of Pusti's operations, there have variety of products involved. For
instance, Pusti is a retailer so they offer a diverse range of products for different customers need. They
produce different kinds of product. But all items are about food. The variety of their products is high.

Variation: Pusti's operations may experience variations in demand, supply, or processes. Seasonal
fluctuations, market trends, or changes in customer preferences could all contribute to these variations.
PUSTI produce large variety of products for their consumer.

Degree of Visibility: This refers to how visible or transparent Pusti's operations are to customers.
PUSTI’s products are produced in large quantities and go through a well-organized manufacturing
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process in their factory. It is unlikely that customers will be able to observe the manufacturing process,
so the sellers do not require strong interpersonal skills. So they have low degree of visibility of their
products.

Each of these characteristics plays a crucial role in shaping Pusti's operational strategy and efficiency.

Productivity
Productivity is the measure of efficiency and effectiveness in completing tasks and achieving goals
within a given timeframe. It's not just about doing more work but rather about accomplishing the right
tasks in a timely manner while maintaining quality. Several strategies can enhance productivity, such as
time management techniques, setting clear goals, prioritizing tasks, minimizing distractions, delegating
responsibilities, and adopting tools and technologies that streamline workflows. It's a key concept in
economics and business management that assesses how effectively inputs are transformed into outputs.
Productivity can be evaluated at various levels, including individual, team, organizational, and national
levels. The formula for productivity is:

There are two types of productivity:

1. Single-factor productivity: It is a measure of productivity that uses a single component to


measure productivity while multiple factors consider numerous factors. An example of a single
factor is labor productivity and multiple factors are the productivity of a company's total of labor,
materials, energy, outsourcing.
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PUSTI’S one single factor productivity: According to PUSTI’s annual report for 2020, the
company’s total revenue was 40.5 billion BDT, and the total number of employees was 26,000
and they works 160 hours per month. Assuming that revenue is a proxy for output and number of
employees is a proxy for labor input, we can plug in these values into the formula and get:
Labor Productivity=40.5×10^9/(26,000*160*12) =9735.549 BDT per hour
This means that each employee of PUSTI generated an average of 9735.549 BDT worth of
output in 2020.

2. Multi-Factor Productivity: It means the proportion of many or all resources or inputs to the
output of products and services. It evaluates the total productivity of all the inputs utilized to
generate a product. The following is the multi-factor productivity formula:

Productivity variables
Productivity in economics refers to the efficiency of production, often measured by the amount of output
produced per unit of input. The three primary variables affecting productivity are:

Labor: The efficiency and productivity of Pusti can be significantly influenced by its labor force. This
includes the skills, training, motivation, and number of employees. Effective training programs and a
motivated workforce can enhance productivity, while inadequate staffing or lack of training can lead to
inefficiencies.

Capital: Capital refers to the resources, equipment, and technology that Pusti utilizes in its operations.
Investment in modern machinery, technology, and infrastructure can boost productivity by streamlining
processes, reducing manual errors, and increasing output capacity. Proper maintenance and timely
upgrades are also essential to ensure optimal performance and longevity of capital assets.
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Management: Effective management practices are crucial for optimizing productivity. This includes
strategic planning, decision-making, resource allocation, and leadership. Strong management can foster
a culture of efficiency, innovation, and continuous improvement within Pusti. On the other hand, poor
management can lead to misaligned objectives, inefficiencies, and lower overall productivity.

These productivity variables interact with each other and need to be carefully managed and balanced to
ensure Pusti operates efficiently and achieves its objectives.

Forecasting time horizon


Types of time horizon

The forecasting time horizon indicates how far into the future forecasts should be generated.
Forecasting time horizons can be divided into three categories:

1. Short-range forecast: This type of forecast usually involves a time frame of less than three
months, but it can also cover up to a year. The expected value for simple tasks like
purchasing, labor force sizes, employment time frames, and job assignments are
determined using this method. Operations managers require short term forecasts in order
to assess manufacturing difficulties that span a few-week time horizon.

2. Medium-range forecast: This covers a time frame typically between three months and
three years. Budgets, sales forecasts, and production planning are all done using it.

3. Long-range forecast: It includes a time frame that is longer than three years. It is used for
important job planning. It is used to organize the introduction of new goods, the building
of new factories, or the creation of any research and development facilities. Operations
managers make strategic decisions based on long-term projections.
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Time horizon of PUSTI


Short-range forecast
The short-term strategies known as operational goals are intended to help the business realize its
long-term plan. Therefore, they will increase the product basket's contents to include Pusti margarine,
Dolce vita margarine and Pusti special ghee.

Long range forecast


A strategic plan is an in-depth plan that identifies the decisions regarding the allocation of
resources, priorities, and actions required to achieve specific objectives. The strategic objective of PUSTI
is to increase sales to grow their business not only in Bangladesh but also in some other important nations
of the world. PUSTI must properly allocate resources, establish priorities, and take appropriate action
steps to achieve this objective.

Medium range forecast


PUSTI’s tactical goal is to increase customer demand with their dozens of new products. This goal will
help PUSTI to expand their business rapidly and they also have a target to grow their export not only their
oil but also their other products. To achieve these tactical goals, they need to develop tactical plans to
implement parts of the strategic plan.

Forecasting approaches
There are two types of forecasting approaches:
1. Qualitative
2. Quantitative

Qualitative
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PUSTI may employ qualitative forecasting approaches in cases where they are introducing new products
or when historical numerical data is limited. Some qualitative methods they could consider are:
Consumer Surveys: Conduct market surveys to gather opinions and preferences of potential
consumers for new products. This approach can provide insights into the potential demand for
these products.
Expert Opinion: Engage experts in the food and beverage industry to provide insights and
opinions on potential market trends and demand for new products.

Quantitative
PUSTI can also utilize quantitative forecasting methods when they have sufficient historical data
available. Here is a quantitative approach they could consider:
Exponential Smoothing: PUSTI can implement exponential smoothing to forecast the demand for their
products. This method involves assigning weights to historical data points, with more recent data receiving
higher weights. The formula for exponential smoothing is:
Ft +1 = α Dt + (1 - α) Ft
Where,
Ft +1 = forecast for next period
Dt = actual demand for present period
Ft = previously determined forecast for present period
α = weighting factor, smoothing constant (0 ≤ α ≤ 1)
Moving Average: For products with relatively stable demand patterns,PUSTI could also use the
moving average method. This involves calculating the average of demand over a certain number
of previous periods. A weighted moving average can also be considered to give more importance
to recent periods.
Trend Projection: If PUSTI has historical data that shows a clear trend, they could use trend projection
to forecast future demand. By fitting a trend line to past data points, they can extend the trend into the
future.
Combination of Approaches: PUSTI can choose to use a combination of qualitative and
quantitative approaches, depending on the specific product and situation. For established products with
sufficient historical data, they can focus on quantitative methods. For new product launches for situations
with limited data, qualitative methods can provide valuable insights.
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Continuous Monitoring and Improvement: Regardless of the chosen approach, PUSTI should
continuously monitor the accuracy of their forecasts and refine their methods based on actual sales data.
They should also consider incorporating feedback from the sales team and market trends to improve the
accuracy of their forecasts over time.

Components of Demand
Trend Component: The trend component of demand for Pusti products reflects the long-term
consumption pattern influenced by various factors. Market trends, consumer preferences, technological
advancements, and competitive dynamics shape this component. Pusti has observed a positive trend in
product demand, attributed to growing health consciousness and the increasing demand for healthier food
options. To cater to these preferences, Pusti has introduced a range of products, including organic options,
healthier snacks, and products with reduced sugar and salt content.

Seasonal Component: The seasonal component of demand in Pusti's products is influenced by factors
such as weather, holidays, and cultural events. For instance, Pusti might experience increased demand for
drinks like juice and ice creams during the summer months. Similarly, warm beverages and comfort foods
might see higher demand in colder weather. Special occasions like festivals and cultural events also impact
demand. Pusti's confectionery products, for example, may witness heightened demand during festive
seasons such as Eid and Pohela Boishakh.

Cyclical Component: The cyclical component of demand for Pusti's products responds to the overall
economic health and business cycles. During periods of economic prosperity, there might be a rise in
demand for Pusti's premium products as consumers have greater disposable income. Conversely, during
economic downturns, consumers may opt for more cost-effective alternatives. Economic indicators like
interest rates, inflation, and unemployment levels also affect this component. High interest rates might
lead consumers to cut back on luxury food and beverage items.

Random Component: The random component of demand introduces unpredictability that isn't easily
explained by trends, seasonality, or economic conditions. Pusti faces challenges in production scheduling,
inventory management, and supply chain planning due to the uncertain swings in demand. To mitigate
these effects, Pusti can employ strategies like flexible manufacturing processes, maintaining safety stock,
and embracing agile supply chain practices.
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Basic layout types


Pusti’s Industry Bangladesh uses the following basic layout types:

•Fixed Position Layout: This layout is used for large, complex products or projects that cannot be easily
moved. The product stays in one place while workers, tools and materials move around it. Pusti Industry
Bangladesh is using this layout for construction projects such as building a new factory.

•Product Layout: This layout is used for the mass production of a single product. Machines and
workstations are arranged in a straight line, allowing products to move smoothly from one stage to the
next. This layout is often used in food and beverage processing. Pusti Industry Bangladesh uses this layout
for its juice, snacks, and dairy production lines.

•Process Layout: This layout is used for manufacturing different products that require different processes.
Machines and workstations are arranged according to different processes, and products can be moved
from one process to the next as required. Pusti by TK group of Industry Bangladesh uses this layout for
its factories that manufacture metal products, and cement .Since we are writing about the food ,Pusti uses
the product layout type. This means that machines and workstations are arranged in a straight line and
products can move smoothly from one stage to the next. This layout is ideal for large organizations with
ongoing operations such as Pusti.

For example, Pusti's juice production line begins by washing and sorting fruit. The fruit is then ground
and mixed, and the juice is filtered and pasteurized. The juice is then bottled and packaged, ready for
shipment as a finished product. All these processes are carried out in machines arranged in a straight line,
allowing the juice to move smoothly to the next process.This product layout has several advantages for
the plan.

First, it enables mass production. Machines are arranged to minimize the time it takes to produce one
product. This means Pusti can produce a large number of juice bottles in a short period of time.

Second, the product layout is efficient. Machines are positioned to minimize product and worker
movement. This saves time and energy and also reduces the risk of accidents.

Third, the product layout is flexible. Pusti allows you to easily change the production line to make several
types of juice. This will enable Pusti to respond to changing demand and open up new markets.

Overall, the product layout is a good choice for the planned food and beverage industry in Bangladesh.
This will enable the company to mass produce its products efficiently and flexibly. This makes Plan one
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of the leading food and beverage companies in Bangladesh. Here are some concrete examples of how
Pusti uses product layouts on the production line.

•The juice production line is arranged linearly, the machines are arranged linearly from the washing and
sorting station to the bottling and packaging station.

•The snack food production line is laid out in a U shape, with machines arranged in the U shape around a
central conveyor.
In all these cases the product layout is designed for maximum efficiency and flexibility. This will allow
Pran to respond to changes quickly and easily in demand while producing large volumes at a low cost.

Product layout types


A product layout is the arrangement of activities according to the order of operations for a particular
product or service. We know that product layout is about fully localizing the resources you convert so that
the converted resources are practical. Since Pusti follows the product layout, he also has a product strategy.
This will determine what kind of products you want and why that strategy is beneficial to your business.
Product strategy helps companies track further development. A company has several product strategies.
Once a company has decided to manufacture a particular product or service for a particular service, it must
decide whether that product or service will:

•Made to order
•Assemble to order
•Made to Stock

Pusti employs a "Made to Stock" strategy for its products. This means Pusti builds products based on
historical sales data ahead of customer demand. This allows Pusti to keep inventory high and respond
quickly to customer demand.

A Made to Stock strategy fits well into your plan for several reasons. First, the plan's products have a
relatively long shelf life, so they can be stored for a period of time without losing quality. Second, Pust's
products are relatively standardized, requiring little customization. Third, Pusti's customers are
accustomed to buying his Pusti products from retailers and expect them to be in stock.
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The Made to Stock strategy has several advantages for plans. First, Pusti will be able to manage inventory
levels and avoid out-of-stocks. Second, Pusti will be able to respond quickly to customer demand. Third,
Pusti will be able to take advantage of economies of scale.
However, the Made to Stock strategy also has some drawbacks. First, Pusti has to invest in a large amount
of inventory. Second, when a plan's products become outdated, it can lead to obsolescence. Third, failure
to sell Pusti's products by the sell-by date can result in waste.
Overall, the tailor-made strategy fits well into the Pusti food. This will enable Pusti to produce products
efficiently and respond quickly to customer demand. However, to maximize the benefits of this strategy,
Pusti must manage inventory carefully to avoid obsolescence.

MRP inputs & outputs


Material requirements planning (MRP) is a production planning, scheduling, and inventory control system
used to manage manufacturing processes. It is a computer-based system that uses bill of materials (BOM),
inventory levels, and production schedules to calculate the quantity and timing of materials and
components needed to produce finished goods.

MRP works by first determining the demand for finished goods. This demand is typically based on sales
forecasts or customer orders. The MRP system then calculates the quantity and timing of the components
and raw materials needed to produce the finished goods.This is done by recursively exploding the BOM,
starting with the finished goods and working down to the individual components.

Master production Schedule:

A Master Schedule, often referred to as a Master Production Schedule (MPS) in the context of
manufacturing and production planning, is a detailed plan that outlines what products will be produced,
how much will be produced, and when they will be produced. It acts as a link between the overall business
plan and the actual production process. Product demand for end items stems from two main reasons:
1. First is known customers who have placed specific orders.
2. Second is, source forecast demand.
These two combined and become the input to the master production schedule.

PUSTI is the leading food of our country which produces snacks, dairy and confectionery. So, from the
theory of this product line, we understand that the focus should be on the forecasted demand as these
products have a good market in the country.
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Bill of Materials:
The bill of Materials file contains the complete product description, listing materials, parts, and
components but also the sequence in which the product is created. The BOM file is often called the product
structure file or product tree because it shows how a product is put together. It contains the information to
identify each item and the quantity used per unit of the item of which it is a part.

As PUSTI produces multiple types of products so we cannot make a list of every product material. So, we
are mentioning about only PUSTI happy Time mango drink Ingredients:
•Water
•Mango pulp (20%)
•Sugar
•Acidity regulator (330)
•Stabilizer (440)
•Artificial Mango Flavor
•Preservatives (202, 211)
•Salt
•Antioxidant (300)
•Natural Food Color (160a)

Inventory records:

Inventory records filed under a computerized system can be quite lengthy. Each item in inventory is
carried as a separate file and the range of details carried about an item is almost limitless. For each item,
additional information is also provided, such as the supplier, the lead time, and the lot size policy. PUSTI
as a large global company with operations in food, has several main types of inventories that it manages.
They always have some inventory on hand because they have a very large demand for food not only in
the country but also in the global market. So here we mention some raw materials inventory which they
always have on hand:

•Several types of fruit pulp


•Wheat
•Crop
•Sugar
•Food color
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Quality assurance of pusti


Quality assurance (QA) of "pusti" (assuming it refers to a product or process) involves ensuring that it
meets the required standards and specifications. This can include testing for functionality, performance,
reliability, and user satisfaction. Steps may include:

Specification Review: Ensure the product or process meets all specified requirements.

Testing: Conduct various tests to identify defects or issues. This could involve unit testing, integration
testing, and user acceptance testing.

Documentation: Maintain thorough documentation of testing procedures, results, and any issues found.

Feedback Loop: Implement a system to collect feedback from users or stakeholders to identify areas for
improvement.

Continuous Improvement: Regularly review and update QA processes to adapt to changes and improve
efficiency.

By implementing a comprehensive QA process, you can ensure that the "pusti" product or process is of
high quality and meets the expectations of its users.

Conclusion
The Consumer Division, the generation next SBU of T. K. GROUP, is moving forward to excellence
with dominating footmarks in modern distribution trade. Since the inception in late 2004, and the SBU
has the proven track record of managing the nation’s two admiring brands ‘PUSTI’ and ‘Family’. As its
offerings are best suited to its target clients, its commercial operations are expanding day by day. The
sales force is capable of successfully operating the system. Pusti has a strong network of distributors
who are steadily improving and becoming more competitive. As far as product promotion is concerned,
to cope with changing market needs, the company should maintain sufficient flexibility in combining the
parts of its management with those of its market needs. A pragmatic approach in this area necessitates a
24 | P a g e

constant and regular assessment of the millennium's evolving technological and socioeconomic
conditions.

If it competes with other companies, T.K. must focus on marketing distribution channels, price margins,
and marketing skills to advertise its products and reach its target customers.

References

1. https://pusti.com.bd/
2. https://www.scribd.com/document/551847132/Final-Term-Paper-On-Tk-Group
3. https://en.wikipedia.org/wiki/T_K_Group_of_Industries
4. https://tkgroupbd.com/
5. https://www.coursehero.com/file/p8rle2/To-achieve-strategic-goal-PUSTI-set-a-tacticalgoal-of-
increasing-customer/
6. TeachersCollegesj. (2019, October 16). TeachersCollegesj. Retrieved from TeachersCollegesj:
7. https://teacherscollegesj.org/what-is-single-factor-productivity-example/

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