GEP GAMEPLAN

Institute name : Goa Institute of Management

Team Members : Praneeth Kulkarni [Team Leader]
Satyam Poddar
Sambhu Sankar
 CURRENT STATE
Objectives :
• To Increase operating profit
• provide a plan to change toy
• Bottlenecks : Single reactor segmentation strategy
• Review current scrappage
• Performance Issues: policy
• Increase operating capacity of the pune PVC plant from 80% to 90%.
• face shelf availability issues as we are not able to replenish toys in our
toy distribution centers, which in turn aren’t able to reach the retail
stores, leading to loss of sales
• Attrition has gone up in the last few years which has led to increased
training efforts and costs.
• logistics team is always challenged with the overall costs whenever
we take a longer route to deliver toys
 Problems Identified
PROBLEMS IDENTIFIED:
• i) Attrition rate and training and attrition costs.
• ii) Distribution system inefficiencies and transportation costs
• iii) Only one channel of distribution.
• iv) Low capacity utilizations of the plants machineries.
• v) profitability of wholesale discard the erroneous iterations of a
product without hurting the brand identity
 SOLUTION CREATION
Production Destination Avg Cost/toy
city

i)To tackle increasing attrition rate: Noida Kolkata, 1

Provide employee category specific perks : Goa
Lunch/water refreshments provided by the company itself to the Nagpur Chennai, Shimla=1,C
wage based/contractual workers. Shimla hennai=2
Performance and tenure based bonuses and incentives to
engineers/mid-level managers. Bhubanes Mumbai 1
hwar
ii) Distribution system inefficiencies and transportation costs
Restrict cost of transportation per toy to Rs 1 , according to the Lucknow Bhopal 1
data given
Rajkot Delhi, 1
iii) Only one channel of distribution. Jaipur
Add new channels of distributions:
i)Online store ii) Online Platforms(Amazon) iii)Door-to-Door
 SOLUTION CREATION
Equipment Current Increase
Utilization Required

Tank 50 40
iv) Low capacity utilizations of the plants machineries.
As of now the various machines in the plants are running Reactor 80 10
under their optimum utilization rate of 90%. We need to Column 75 15
increase the utilization capacity to meet the 90% by Stripping
eliminating the bottlenecks so we are producing more
efficiently. Compressor 80 10

v) Increase Profitability of wholesale discard in the erroneous iterations

of a product without hurting the brand identity Magnetic 75 15
Separator
The production plant should have a tie up with local vendors
and sell the erroneous products at a set price which would be
Warehouse 50 30
at least 1/3rd of the original selling price. Tank
 FUTURE
RECOMMENDATIONS
i)Produce toys based on DYNAMIC ASSORTMENT , which means to
produce toys based on what the major trends in the children's entertainment
sphere, and do that on a much faster rate, dynamic assortment production
models are followed by textile giants such as H&M and Zara.
ii)Diversify into Online purchasing platforms to increase sales and
revenue resulting in increased profits.
ii)Release exclusives limited items to create a sense of hype
and collectorship and thus slowly try to enter or create a
market of Veblen goods toy. This can also increase our
client demographic to figurine collectors.