Assignment of Production and operation Management

Group Members
Ali yar awan BBHM s19 043
Syed Arslan BBHM 19 027
Hamza BBHM s19 032
Areej umar hayat BBHM s19 045
Iqsa Hussain BBHM s19 028

Submted to : Sir Ahmad Bilal

Assignment of Production and operation Management

Contents
Short Cases..............................................................................................................................................3
1. Case of Organically good Quality.........................................................................................................3
2. Case of Flexibility and dependability in the news room......................................................................5
3. Case of operation control at Air France...............................................................................................7
4. Case of SVT program investment in technology..................................................................................9
5. Case of Pret A Manager.....................................................................................................................11
6. Case of Mwagusi Safari Lodge...........................................................................................................13
7. Case of customer’s are not always human........................................................................................14
8. Case of Acme whistles.......................................................................................................................16
9. Case of Two very different hotels......................................................................................................17
10. Case of Taxi Stockholm....................................................................................................................18
11. Case of Air traffic control: a world class juggling.............................................................................19
12. Case study of TNT Express Learning Outcomes...............................................................................22
13. Case study of Ryanair.......................................................................................................................23
14. Case study of United Kingdom National Blood service....................................................................24
15. Case study of automotive system suppliers.....................................................................................25
16. Case study of behind the brand names...........................................................................................26
17. Case study of every low prices at Aldi..............................................................................................27
18. Case study when speed means life or death ...................................................................................28
19. Case study of Haward smith paper Group.......................................................................................30
20. Case study of Flextronics.................................................................................................................31
21. Case study of Dell............................................................................................................................33
22. Case study of operation in practice IKEA.........................................................................................34
23. Case study Tea and sympathy..........................................................................................................36
24. Case study of Manor Bakeries.........................................................................................................37
Long Cases.............................................................................................................................................38
1. Long case of Study of blue Ocean strategy.......................................................................................38
2. Long case of Disruptive innovation....................................................................................................43
3. Long case study of Polyface: The farm...............................................................................................47
4. Long case study for Reshore manufacturing successfully..................................................................53
Assignment of Production and operation Management

Short Cases
1. Case of Organically good Quality

Organically good Quality

Lower Hurst Farm, located at the Peak District National Park of UK is 85-acre farm started in
1998, after serving for 20 years converted into organic farming for the improvement of their
meat. Organic farming means no use of artificial fertilizers, genetically modified feedstuff or
growth promoting agents. In fact, the veterinarian is contacted in to prevent the problem.
When slaughtered, meat is individually packed, weighted and frozen. Meat gets packed into
reusable air tight bags. After products get ordered mostly online. Hurst Farm give personal level
of service to our customer. Which make them believe in our product and quality.
Learning Outcomes
In this case study we will learn
About the Organic farm named Lower Hurst Farm
Assignment of Production and operation Management

How an Organic farm work compare to the conventional farm.

How Organic farm pack their meet.
How Veterinarian works in organic farm.
How customer service is provided in Organic farm.
What does Lower Hurst Farm have to get right to keep the quality of its products and its
services so high?
Lower Hurst Farm, located at the Peak District National Park of UK turned into organic farming
for the better of their meet quality. Which means to maintain their quality they don't have to
use artificial fertilizers, genetically modified feedstuff or growth promoting agent. All the beef is
home bred living in good quality herd and the farm is very strict on their organic principles.
As they believe that the quality of meat is the quality of life. After slaughtering, they pack their
meat which get ordered by clients. Giving inclusive service to client make them trust the brand
and their products.
What is Nick’s point about veterinarian help important for all type of operations?
Nick’s point of view about veterinarian help is that don’t need veterinarian in all type of
operations since it's an organic farm. They only need veterinaries consultancy to help them to
prevent the problem unlike other farms where they need veterinarian’s to put things right
when there is problem with animal.
Therefore, we pay veterinarian very less to veterinarian compare to conventional farms. Nick
believes that costumers trust their cattle being organic and their way of slaughtering is in a
manner that reduce the stress.

2. Case of Flexibility and dependability in the news room

Assignment of Production and operation Management

Flexibility and dependability in the news room

BBC, 24 hours news channel has to stay up-to-date and make sure that the news is delivered on
time. BBC has achieved high level of dependability is made possible by Technology employee
gathers news and editing. New editors have to schedule a video-taped record 5 second prior to
its broadcasting time. Using new technology, they can do freeze-frame broadcast the instant
the command play is given in order to broadcast the story that break just before. Journals have
to prepare inventory of news stored electronically in Autocue.
Editors can type news directly into the Autocue which allow the reader to read as they are
typed.
Learning Outcomes
In this lesson you will learn
How BBC channel works?
How live news are broadcast?
How Autocue is used for editing and reading?
How news information is gathered?
Assignment of Production and operation Management

What do the five performance objectives mean for an operation such as the BBC’s
newsroom?
The five performance objectives mean for an operation such as the BBC’s newsroom are new
editors have to schedule a video-taped record 5 second prior to its broadcasting time.
Technology employee gathers news and editing to achieve high level of dependability. Using
new technology, they can do freeze-frame broadcast the instant the command play is given in
order to broadcast the story that break just before.
Journals have to prepare inventory of news stored electronically in Autocue. Editors can type
news directly into the Autocue which allow the reader to read as they are typed.
How do these performance objectives influence each other?
The influence of performance objective is for pre-recorded video tape broadcasting we get to
listen then news with more details of the incident or event. When news information is gathered
well, it gets deliver to viewers well. With freeze-frame broadcasting, any emergency, incident or
event news can be delivered to viewers instantly Autocue used for news editing is one of the
effective device which let the latest news deliver to audience instantly as the reader can read it
as they are typed.

3. Case of operation control at Air France

Assignment of Production and operation Management

Operation Controls at AirFrance

For success in any airline planning and control plays an important role. AirFrance has 80
employees for planning that work in 24 hours shift. Planning need in sectors crews, reservation
agents, luggage, flight, through trip, maintenance, gates, inventory, equipment purchases.
Overall goal of flight is the safety, economy and passenger comfort. How to plan in case of
weather change or minimum fuel. Following are the major planning sectors of AirFrance.
Frequency: Separate services provided by airport, Banks: For passengers comfort Organize flight
into banks of several planes that let passenger change plane. Fleet Assignment: What type of
plain should be used on each leg of a flight? Block time: Time between departure and arrival of
plane. Planned maintenance: To maintain the plain on time. Crew Planning: To allocate the pilot
and crew on time to minimize the flight delays. Recovery: Many things can cause deviations
from any plan in the airline industry allowance must be built for recovery.

Learning Outcomes
Assignment of Production and operation Management

In this lesson you will learn

How AirFrance function it major role?
How Airline plan their entire system?
Importance of planning and controlling
What factors in the nature of demand are likely to affect the long-, medium- and short-term
planning and control activities at AirFrance?
The major demand of any airline like AirFrance is Safety, economy, passenger comfort.
Frequency: Separate services provided by airport. This demand requires a long-term planning.
This planning also includes the demand safety, passenger comfort.Banks: For passengers
comfort this is medium-term planning. Organize flight into banks of several planes that let
passenger change plane. Block time: short-term planning time between departure and arrival of
plane. Planned maintenance: Short term planning for passenger safety. To maintain the plain
on time. Crew Planning: Short –term planning is to allocate the pilot and crew on time to
minimize the flight delays. Recovery: It is long-term planning that can cause deviations from any
plan in the airline industry allowance must be built for recovery.
How is the supply of transformed and transforming resources likely to affect planning and
control?
There are 80 flight planners for 24 hours in AirFrance who plan for optimum flight routes and in
case of transform recourse like weather change, minimum fuel consumption they need instant
planning.
In case of weather change the Block time I.e. Time between departure and arrival of plane may
increase as the plane may have to do an emergency landing which results into fewer flight
scheduling.
Crew planning is affected is case of weather change as the crew currently on-board time may
increase. And they may also be allocated to some other plane.
To reduce the fuel consumption, gate plotting plan should be done effectively which is many
planes should not be on ground for loading or unloading
To reduce fuel consumption plain should do planned maintenance.
Assignment of Production and operation Management

4. Case of SVT program investment in technology

SVT program investment in technology

SVT, Swedish public television Company decided to invest in whole new type of digital news
technology in 2000. They move their news operations in the new building and launched 24
hours news channel. Includes 11 huge room news studios and 600 employees. Investing $20
million in news production system. Most importantly their SVT software coded by SVT
employee that let the employee share, create and store released in 2001. The Video quality of
news also get improved as new system don’t need any video cassette. The atmosphere at news
room got much calmer. Finally, the news resources got improved.
Assignment of Production and operation Management

In this case study we will learn

About SVT, Swedish public television company?
How new channel got improved their quality?
How SVT software works?
If you were assessing news-gathering and broadcasting technology such as that described
above, what would be your main criteria for choosing between alternative technological
options?
Firstly, I would like to invest in live-broadcasting system and a software where news can be read
by reader and edit by editor at the same time. Then since it's not 2001, it’s 2021 technology has
changed a lot in two decades. So, I would like to invest in high quality news cameras. And for
news sharing in this era, we have many mediums like Facebook, YouTube, Instagram, and
Television. I this age, I don’t think anyone would be investing in a software like SVC. Also, I
would like to invest in good quality portable camera for outdoor broadcasting connivance.
Assignment of Production and operation Management

5. Case of Pret A Manager

Learning Outcomes

In this case study we will learn

About Pret a manager sandwich shop.
How they gain so much success in sandwich making?
Secret of their high quality and standards.
How they focus on their customer service?
Pret A Manager
Pret A manager is a London sandwich making shop started in 1980. Now Pret A manager has
130 shops in Tokyo, New York and UK. The major secret of Pret A manager success is not to
compromise on quality over quantity. All their sandwich ingredients are freshly chopped each
morning they don’t use any preserved food in their sandwiches. Even after having 130 shops,
each shop is supervised by the owners in order to maintain their quality and services. Pret A
manager maintain good relation with high staff in retail sector. A manager focuses on
customer’s feedback and implement the changes in their system accordingly.
What are advantages and disadvantages of Pret A manager organization itself so that the
individual shops make the sandwich as they sell?
Advantages
When organizing the individual shop itself is that the owners can ensure the high standard
service and their burgers ingredients are fresh.
Assignment of Production and operation Management

Costumers knows that all the branches are managed by the owners. So, they don’t need to
worry about the products.
Each branch works same as other branches.
Disadvantages
When organizing 130 branches it can be very hectic for the owners itself.
How can effective operations management at Pret A manager contribute significantly to its
success? What would be the consequence of poor operations management in this kind of
organization?
Effective Operations
They look keenly on customer's feedback and then try to implement it in their system.
They try to maintain the freshness of their sandwiches by chopping fresh vegetables.
Managing all the stores they maintain the freshness of sandwiches and costumer services.
Poor Operations
Using preserved ingredients in the sandwiches.
Not overviewing the costumer feedbacks.
Not overlooking all the stores, themselves.

6. Case of Mwagusi Safari Lodge

Learning Outcomes
Assignment of Production and operation Management

In this case study you will learn about

About wild landscape Mwagusi Safari Lodge Park with many wild animals. For residence, there
are well furnished camps that includes en-suite bathrooms. To meet the needs of guests, two
staff members are allocated per room. There are facilitated drives equipped with reference
books, photography equipment's, medical kits and many more necessities.
Mwagui Safari Lodge
The Mwagusi Safari Lodge located in Tanania’s Ruaha National Park. It is a beautiful landscape
with huge wilderness. The animals here include elephants, Buffalo, wild dogs, giraffes and lions.
For residence there are well furnished and equipped camps that includes en-suite bathrooms.
To meet the needs of guests, two staff members are allocated per room. This park is filled with
guests from September to November and this number reduce other months. There are
facilitated drives equipped with reference books, photography equipment's, medical kits and
many more necessities. Game drive views can be from the tent and dinner is served in the dry
river bed. Safari visit can be accompanied by the experienced guide.
For each hotel, what is the role of technology and the role of operation’s staff in delivering an
appropriate level of service?
There are ten tented camps furnished comfortably in the traditional style with en-suite
bathroom and flush toilet and a hot shower. There are two staff for each customer, allowing
individual needs and preferences to be met quickly at all times.
What are the main differences in the operations management challenges facing the two
hotels?
Both the hotels in the operation managements are to cater large number of guests and fulfil
their needs. Provide them with best tour guide provider.
Assignment of Production and operation Management

7. Case of customer’s are not always human

Learning Outcomes
In this lesson you will learn about
Milkmaid robot in Netherland?
How that robot reduces human farmers?
How milkmaid robot functions?
Customers are not always human
Assignment of Production and operation Management

Milkmaid robot machine was introduced to farmer that don’t need farmers hand to attach the
device to the cow in Netherland. This machine reduces the need of human farmers. Milkmaid
robot can process 60-80 cows a day. The system let the cow enter, check their health, connect
them with the milking machine and feed them while they are milking. Cows are moved to
farmers after inspection, it the system find them unhealthy or fails to connect with milking cup.
Initially, the effort is to make cows comfortable with the system by getting them in machine
once a day, rather than twice or thrice.
What advantage do you think the technology described above given?
Milkmaid robot can process 60-80 cows a day. The system let the cow enter, check their health,
connect them with the milking machine and feed them while they are milking. Cows are moved
to farmers after inspection, it the system find them unhealthy or fails to connect with milking
cup.
Do you think the cows mind?
Initially, the cows will be uncomfortable with the machine. But after entering the machine more
than thrice. They will get comfortable.
Do you think the farmer still goes and watch the process?
Yes, only those farmers who love waking up early more and like to see the entire process or if
things so wrong and the beep rings.

8. Case of Acme whistles

Assignment of Production and operation Management

Learning Outcome
In this case study we will learn
About London's famous Acme Whistles Company
How a small company manage all their operations?
Advantages of small company
Acme whistles
Acme whistles, owned by Joseph Hudson started in 1870 in London, become first supplier of
premium quality whistlers that replace the police's wooden riddle. They offer variety of
products like snail-shape whistles for football referees, sports whistlers, distress whistlers, dog
whistlers, novelty whistlers, instrumental whistlers and many more. Acme Whistles maintain
their quality for 130 years using same traditional production style and blowing all the whistlers
using airline before the product left the factory. All the operations are managed in a small
company where people know each other. Where everyone is free to give ideas and innovative
ideas are processed. Everyone wants to contribute in company.
Assignment of Production and operation Management

What is the overlapping between operations, marketing and product development at Acme
whistles?
Managing operation in small company is very different than managing in a large company
where everyone has to perform broader jobs. We hire specialized people for specialized jobs
only. Every employee knows each other and they all believe in the philosophy of quality.
How does its small size affect Acme’s ability to innovate?
Small company is not a barrier to innovate. Infect, there is something about the culture of
company that is important in fostering innovation. Everyone knows each other well and want to
contribute to company.

9. Case of Two very different hotels

Learning Outcomes
In this case study you will learn
How formula 1 hostels functions?
How formula 1 makes the hotel functionality simple and manageable?
The two very different Hotel
Assignment of Production and operation Management

Formula 1 hotel is a high chain of successful, affordable hotels that function on some principles
that makes it manageable and simple. Making hotel closer to the road makes it visible and
accessible. All rooms are nine square meter in area that is clear, furnished and comfortable
includes double-bed, additional bunk bed, storage area, working table, television and
wardrobe. The reception functions from 6.30am to 10am and 5pm to 10pm. Other times the
automatic machine works for credit card customers provide them room, print slips etc. The
cleaning system is also automated the shower and toilets are automatically cleaned using
nozzle. The hotel doesn't include restaurant, it only provides the continental breakfast.

10. Case of Taxi Stockholm

Learning Outcomes
In this case study you will learn
About Taxi Stockholm, a known cap company
How to implement automation in Cap Company?
How Cap Company functions successfully?
Assignment of Production and operation Management

Taxi Stockholm's
Taxi Stockholm's plan is to automatically estimate the arrival time for the cab. And
automatically call back for reservation to customer. Taxi Stockholm, a century old and
recognized as technically advance Taxi Company with maximum customer satisfaction. When
customer calls for reservation, after knowing the customer location the cap arrives due to
which our call centre productivity is low. The system knows the costumer's location and instruct
the nearest cap.
How can Taxi Stockholm keep its dependability high during those times when demand is high
and traffic is congested?
When customer phone for a cab, a voice-recognition system identifies your location and system
find and interact with the nearest cab available. Due to this efficient system of Taxi Stockholm,
its dependability high during those times when demand is high and traffic is congested.
11. Case of Air traffic control: a world class juggling
Assignment of Production and operation Management

Learning Outcomes
In this case study we will learn
About the job of air controllers?
About New York’s busiest airport?
How air-controllers manage the air traffic from ground?
What are the responsibilities of air controllers?
How serious and major role air controllers play in air travel?
Air traffic control: a world-class juggling act
Air controllers have toughest job in this world as last 15 years the number of planes in the sky
has doubled with increasing pressure to control the air traffic. New York, the world’s busiest
airspace where 7500 planes land and depart a day has three airports each 15 miles away from
each other were using predetermined invisible corridors in the sky to keep the planes away
from each other. Now Big planes have computers that negotiate when two or more plain comes
closer. Each New York controller has to handle 100 landings and take-offs an hour using a 2D
screen that display the plane’s type, altitude, speed and destination. Tower controllers are
responsible for coordinating the landing and take-off. Mini-Hurricanes which trail downstream
of plane’s wing tip is another major factor to consider for gap.
Controllers also have to control over 2000 helicopters and aircrafts to keep them out of the
airspace. Controllers have to land the plane in case of poor visibility. Controllers have to make
instant decisions with 100% accuracy if two planes are in same directions or any emergency be
it a problem arises in plane, fuel shortage or an emergency landing.
What does ‘planning and control’ mean to air traffic controllers?
Traffic controllers have to make instant and efficient decisions. Controllers also have to control
over helicopters and aircrafts to keep them away from each other. Controllers have to land the
plane in case of poor visibility. Controllers have to make instant decisions with 100% accuracy if
two planes are in same directions or any emergency be it a problem arises in plane, fuel
shortage or an emergency landing.
What are the differing problems faced by TRACON tower and ground controllers?
In TRACON tower, controllers have to control air traffic in a two-dimensional radar screen
display the plane’s type, altitude, speed and destination however the plane is in three-
dimensional airspace. Controllers have to funnel plane from different directions into an orderly
queue. ground controllers are responsible to navigate the aircraft through the maze of
interconnecting taxiways. Ground controllers have to do a very careful coordination especially
in case of poor visibility, fog and low clouds.
Assignment of Production and operation Management

What sequencing rules do you think the tower controllers use?

The sequence of rules tower controllers has to follow.
At the peak time the tower controllers have to shoot the gap to get plane take off in steam of
landing aircrafts. Tower controller need to be able of calculating the safe take off interval in an
instance. Tower controllers have to manage small aircraft and helicopters to keep them out of
the airspace of airport.

12. Case study of TNT Express Learning Outcomes

Learning Outcomes
In this case study you will learn
How TNT Express works?
What makes a delivery service more effective?
How to improve the delivery services?
TNT Express
TNT Express is the world’s leading business-to-business express delivery company with 3.5
million item delivery a week in 200 countries using 900 depots, hubs and sortation centres. TNT
Express has 48k employees, operates over 19k vehicles and 43 crafts and has biggest door-to-
Assignment of Production and operation Management

door air and road express. Its services include next-day door-to-door and same day deliveries.
TNT is considered as fastest and reliable delivery service with high customer satisfaction.
Investment is made in TNT express to improve their services and to reduce door-to-door
delivery time.

13. Case study of Ryanair

Learning Outcomes
In this case study we will learn
How Ryanair airline works?
How Ryanair airline become successful?
How Ryanair airline reduce their flight cost to minimum?
Ryanair
Ryanair is Europe’s largest low-cost airline (LCA), started in 1985, operating at low-fair, no-frills
formula, has 1700 employees, 50 Boeing, 737 aircraft to provide services over 70 routes in 13
countries throughout Europe, and carries 12 million passengers every year. Initially Ryanair was
Assignment of Production and operation Management

not launched to provide low-cost services in London and Iceland but after losing IR20 million in
1991 the company decided to use smaller airports, providing no-frill service on board, selling
directly tickets to passengers at low-fare Ryanair become success. Ryanair cost is reduced
because no meal has to be loaded on airplane, employees improved productivity, using
secondary airport for landing, developing low-cost internet booking service, contracting with
Stansted airport for baggage-handling.
14. Case study of United Kingdom National Blood service

Learning Outcomes
In this case study we will learn
How UK’s National Blood Service fulfil the blood requests?
How UK’s National Blood Service collect, process and distribute blood?
How UK’s National Blood Service minimize the loss of blood?
The UK’s National Blood Service NBS
Assignment of Production and operation Management

Many people lives are based on NBS. NBS supply chain has three main stages. Collection which
includes gathering people for blood donations and transport it to local blood centre, Processing
includes breaking blood into red cells, platelets and plasma and other blood-based products.
Distribution includes transporting blood to blood centres, hospitals with 200,000 blood
deliveries a year, 2500 emergency deliveries.11% of the blood is lost during the processing, 5%
becomes unavailable when stored long.
Blood deteriorate depends on shelf life of platelets 5 days and red blood cells 35 days. As giving
patients wrong type of blood can be fatal. Large-scale accidents usually generate a surge of
offers from donors. NBS tries to minimize the blood wastage by controlling the blood stock
carefully and measure the percentage of requests and emergency requests within 2 hours. The
traceability of donated blood is increasingly important. If any problem arises to the blood
product, its source is traced.

15. Case study of automotive system suppliers

Learning Outcomes
In this lesson we will learn
How big car companies deal to suppliers for small components ?
About car parts supplier company Magna?
Assignment of Production and operation Management

How the number of system suppliers have reduced?

Automotive System Suppliers
Small traditional car makers rely on system suppliers like TRW in US, Bosch in Germany and
Magna in Canada to provide them with the whole chunk of car.Magna with 40000 employees is
expanded throughout the US. They earn most of their revenue from making and supplying
assembled parts for cars. But due to rise in cost the suppliers are reduced as they have to take
responsibility for the engineering and pre-assembly parts which make the system component
easy to update. The suppliers also make joint development easier. Specialist suppliers have
many cars system developed at one time.
What are the implications for companies reducing the number of their direct suppliers, both
for the suppliers and for customers?
For big companies, the reduced number of suppliers make it easy to update the components.
The Joint development becomes easy with fewer suppliers. With the increase in cost the
suppliers have to take responsibility for the engineering and pre-assembly parts which make
the product well assemble/made and the car with best assembling part is delivered to
customer.

16. Case study of behind the brand names

Learning Outcomes
In this case study we will learn?
About the Korean and Taiwan Manufacturers?
Why big brand contract with manufacturers?
Behind the brand names
Assignment of Production and operation Management

Small traditional car makers rely on system suppliers like TRW in US, 60% of the world's
computer notebooks including the big brand names like Dell and Apple are manufactured by
the small Taiwan and Korean manufacturers. In order to achieve high quality product with high
quantity within the minimum cost and innovative designs these companies make contracts with
manufacturers. Dell, a reputed company said that their production lines are set and managed
by them and they have strict quality control policy.

What are the dangers to companies like Dell and Sony in outsourcing their notebook
manufacture?
To source a huge number of products by big, reputed companies let security issues in the
products. This can also defame big names and major of the work is done by manufacturers. This
can reduce people's faith in the brand.
What do you think the subcontracting companies will compete in future?
Yes, Of Course the manufacture companies have much more advance technology that will get
more advance in future so they will be able to compete in future.

17. Case study of every low prices at Aldi

Leaning Outcomes
In the case study we will learn
Assignment of Production and operation Management

About Aldi, a successful superstore?

How it managed to reduce the prices to minimum?
Everyday low prices at Aldi
Aldi, a supermarket with super low price of their products compared to market. Aldi only keep
basic facilitation stuff for low overheads using the private label approach product got
manufactured and sold on 30% low price at Aldi with no marketing. Cost saving strategy
includes no grocery bags, open carton display with no shelf and trolley rental system i.e., to
return trolley to get the deposited coin back.
What are the main ways in which Aldi operations try to minimize cost?
Aldi operations try to minimize cost by using the private label approach product got
manufactured and sold on 30% low price at Aldi with no marketing. Cost saving strategy
includes no grocery bags, open carton display with no shelf and trolley rental system i.e., to
return trolley to get the deposited coin back.
How is cost affected by the performance objective?
By eliminating the small expenses like marketing product, the supermarket attracts more
people. As their price is low compared to other markets so the user gets to save a lot of money.

18. Case study when speed means life or death

Learning Outcomes
In this case study you will learn
About the functionality of emergency service?
How AI works in Mercedes-Benz in case of accident?
Assignment of Production and operation Management

Importance of emergency service reaching on site on time?

When Speed means Life or Death
In road accident, the emergency service must respond quickly as the first hour of accident is
golden hour which decides whether you survive or not. To make full use of golden hours there
are three factors, the time emergency service finds out about the accident, time it takes to
reach to the accident scene and time to do immediate treatment.
In Mercedes-Benz there is emergency service alarm which as soon as the air bag is triggered the
AI system through mobile network connects to control centre and satellite trigger the location
of the car. Emergency service must reach the location quickly by using helicopter or
conventional ambulance. The global positioning system help controller to mobilize the nearest
unit.
Draw a chart which illustrates the stages between an accident occurring and full treatment
being made available.

What are the key issues which determine the time taken at each stage?
In road accident, the emergency service must respond quickly as the first hour of accident is
golden hour which decides whether you survive or not. To make full use of golden hours there
are three factors, the time emergency service finds out about the accident, time it takes to
reach to the accident scene and time to do immediate treatment.
Assignment of Production and operation Management

19. Case study of Haward smith paper Group

Learning Outcomes
In this case study we will learn
How Howard Smith paper Company works?
How it effectively fulfils customer's demand?
Reason for successfully operation at Howard Smith?
Howard Smith Paper Group
Howard Smith Paper Group, paper me chanting sector deliver over 120k tonnes of papers
annually, is most advance warehouse operating within the Europe. It delivers what the
salesperson has promised to the customer. Its operations are divided into two sectors. Logistic
which combine all the warehouse and logistic tasks. Supply side includes all the important
decisions like supply, merchandize, inventory and planning. The key to success is to effectively
Assignment of Production and operation Management

be storing the desired volume, source the desire volume in the inventory, fulfil customer order.
Expert professionals work in the Howard Smith Paper Group. To fulfil the urgent demand
contract labours are called.

20. Case study of Flextronics

Learning Outcomes
In this case study we will learn
About Flextronics, electronic manufacturing service Provider Company?
How Flextronics cut down its price to minimum?
How Flextronics functions?
Flextronics
Flextronics is one of the leading electronic manufacturing service provider company (EMS)
providing services to many big technology companies with over 70000 employees in 28
countries serving throughout the world. EMS is specialized in providing outsourced design,
engineering, manufacturing and logistics operations. Flextronics provide electronic goods to
their customers in competitively low cost with their need for responsive and flexible service.
Assignment of Production and operation Management

Flextronics become successful in their operations by adopting the ‘industrial park strategy’ that
is to find a location with low manufacturing cost and is closer to market. Flextronics’s own are
encouraged to locate neat them to further reduce responsive time.
How does Flextronics’ operations help the company to satisfy its customers?
Flextronics’ operations help the company to satisfy its customers by offering the product on
price less than the competitor's price and by fulfilling their need for responsive and flexible
service.
What specific operations competences must Flextronics have in order to make a success of its
strategy?
In order to make a success of its strategy Flextronics must set up the plant closer to their main
customers. Which would facilitate Flextronics’ fast response and great customer service.
Assignment of Production and operation Management

21. Case study of Dell

Learning Outcomes
In this case study we will learn?
About the success story of Dell?
How they maintain their relationship with their customers?
What makes Dell different from other technology based companies?
Dell
Dell, a computer manufacturing company founded in 1984 launched their first computer. After
that they kept on innovating and expanding their company till date. With many big names lost
dell kept standing due to its successful strategy that is they are directly connected with their
users without any retailors which let the company understand their customers better. Not only
had this Dell also let their customers to customize their device simply by visiting their website.
Their order is then passed to assemble in factory and delivered to customer speedily. If they
spot any problem in their launched device, they stop shipping it until fixed.
Assignment of Production and operation Management

22. Case study of operation in practice IKEA

Assignment of Production and operation Management

Learning Outcomes
In this case study we will learn
How IKEA manage their giant stores?
How IKEA cut their cost to minimum?
How IKEA function?
IKEA
IKEA, founded in 1950s giant furniture selling store with 210 giant stores in 30 countries and
sales of 15 million Euros providing a wide range of well-designed, functional home furniture at
the minimum possible price.
Reasons for the minimum cost is setting the furniture as it could be rather than shelves. After
choosing the furniture from showroom customers pick up the furniture from the warehouse
themselves and pay at checkout stuff. At the store entrance the instructions to shop are
written. There are children's play area, a small cinema, a parent and baby room and toilets, so
parents can leave their children then shop.
IKEA store management operations include store effective design, product packaging, employee
motivation, locating stores, arranging products for deliveries. Coping with fluctuation in
demand, maintaining safety of storage area, avoiding out of stock, enhancing quality service to
customers and improving operations.
Assignment of Production and operation Management

23. Case study Tea and sympathy

In this case study we will learn

How Tea and Sympathy is known for its services?
How Tea and Sympathy follows strict rules?
Tea and Sympathy, a British restaurant for a decade has a novelty factor due to its unusual
services. Which demands from their customers to respect their waiters, wait outside the
restaurant for inside space to get free and a table should be free for new comers if you have
finished the meal? If someone gets rude to the waiters, they are thrown out of the restaurant
Why do you think Nicky's rules help to make the Tea and Sympathy operations more
efficient?
Nicky rules are very clearly set for the efficiency of restaurant operations Tea and Sympathy
make sure that customers respect their waiters otherwise they are thrown out. Wait outside
the restaurant for inside space to get free. Table should be free for new comers if you have
finished the meal and others are waiting .The restaurant approach to the quality seems very
different from other restaurants what do you think it seems to work here? Yes it works due to
their high quality services, the customers are attracted towards their restaurant.
Assignment of Production and operation Management

24. Case study of Manor Bakeries

In this case study we will learn

How Manor Bakery manages its huge supplier bakery?
How they manage to get their constant raw material?
How Manor Bakery manages to remain in stock forever?
Manor's bakery is Europe's largest bakery supplier to small resellers. Manor's bakery has cake
manufacturing company and they have to keep an eye on demand fluctuations, shelf life of raw
material and manufacture products. Some materials can't be stored in bulk and some materials
have to store at certain conditions. Also, they have to make sure that they don't go out of stock.
Therefore, they make products in bulk.
What are the factors which constitute inventory holding cost, order cost and stock out costs
at Manor Bakeries?
It is important to have fresh inventory stock to make sure the Manor bakery have to get fresh
raw material and have to store raw materials in special conditions which costs them Order is
made consistently from small bakeries and resellers so to deliver them fresh and on time cost
the monar bakers Stock out results in cost loss or customer loss because a small bakery that is
ordering from them if they don't have that product they'll order it from some other bakers.
What makes its inventory planning and control so complex?
Assignment of Production and operation Management

Inventory planning and control plays a major role in Monar Bakers as some of the raw materials
used there can be stored for long time, whereas, other materials need to be purchase fresh.
Some raw materials need to be store in special conditions. It is important to keep an eye on the
shelf life of the ingredients. Some small quantity raw material needed are expensive, whereas,
some large quality needed raw materials are expensive. Packages needs to be change
constantly to reflect new promotions and prices. Also, it is important to make sure that no
product is out of stock.

Long Cases

1. Long case of Study of blue Ocean strategy

Blue Ocean Strategy: FROM THEORY TO PRACTICE

Learning Outcomes
In this case study we will learn
What is Blue Ocean?
Difference between Red and Blue Ocean Impact of creating Blue Ocean
A Reconstructionist View of Blue Ocean Strategy Detail discussion on Casella Wines created
[yellow tail] wine, example of Blue Ocean. Success and strategies followed by Casella Wines.
Importance and advantages of following the framework. Reading the curve values that
determine if the company is winner or not For twenty-five years, competition has increased in
Industrial organization (IO) economics. IO economics suggests a causal flow from market
structure. The supply and demand conditions, shapes sellers’ and buyers’, which, determines
end performance called structuralism view. Using this view, company can analyse their
competitor and by using the analytic tools and framework. Company makes zero -sum game
I.e., one company loss is another company benefit. But companies have ignored the aspect of
strategy I.e., creating a new market space where there are no competitors— what we call a
“blue ocean.”
Blue Ocean
Imagine a market universe having two sorts of oceans:
Red oceans represent all the industries in existence today where industry boundaries are
defined and accepted, and the competitive rules of the game are known. Red oceans are well
crowded, prospects for profits and growth are reduced, therefore term “red” oceans. Blue
oceans denote all the industries not in existence today, includes demand creation, and the
opportunity for highly profitable growth. The rules of the game are waiting to be set therefore
Assignment of Production and operation Management

the term “Blue Ocean” is used. Companies need to go beyond competing, new profit and
growth opportunities to create blue oceans.

The Impact of Creating Blue Oceans

As per studies most of the company launch their business in Red Ocean with slight
improvement and a very small ratio tend to enter in Blue Ocean, however the profit margin in
Blue Ocean is greater than red Ocean.
The Rising Imperative of Creating Blue Oceans
Accelerated technological advances have improved industrial productivity. While information
on products and prices becomes globally available so the competition intensifies. The result has
been accelerated commoditization of products and services, increasing price wars, and
shrinking profit margins. Brands are generally becoming more similar, and people increasingly
select based on price. As red oceans become increasingly bloody, management will need to be
more concerned with blue oceans.
Blue Ocean Strategy
Although economic conditions indicate the rising imperative of blue oceans, there is a general
belief that the odds of success are lower when companies venture beyond existing industry
space. With the numerous tools and frameworks to success in business Red Ocean will
dominate the companies. Strategic agenda even as the business imperative for creating blue
oceans takes on new urgency that include both risk and opportunity. It requires you to be
entrepreneurial, to learn from failure, and to seek out revolutionaries.
A Reconstructionist View of Strategy
Blue ocean is Reconstructionist view i.e., Market boundaries and industry structure are not
given and can be reconstructed by the actions and beliefs of industry players. In the red ocean,
companies can either create greater value to customers at a higher cost or create reasonable
value at a lower cost.
In Blue Ocean, the structure and market boundaries exist only in managers’ minds. This,
requires a shift of attention from supply to demand, from a focus on competing to a focus on
leaving the competition behind, reordering existing elements and by stimulating the demand
side of the economy in different markets to reconstruct them into a new market space.
The innovative Blue Ocean strategy is achieved only when the whole system of the company’s
utility, price, and cost activities is properly aligned.
Analytical Frameworks and Tools
Assignment of Production and operation Management

These tools and frameworks applied to demonstrates how these tools can be applied in practice
in the creation of blue oceans. The United States $20 billion wine industry is intensely
competitive and faces intense competition, mounting price pressure, increasing bargaining
power on the part of retail and distribution channels, and flat demand despite overwhelming
choice.
Following conventional strategic thinking, the industry is hardly attractive. The critical question
is, how do you break out of this red ocean of bloody competition to make the competition
irrelevant?
The Strategy Canvas
The industry currently competes on in products, service, and delivery and what customers
receive from the existing competitive offerings on the market.
In the case of the U.S. wine industry, there are seven principal factors:
▪ Price per bottle
▪ Premium packaging
▪ Marketing
▪ Aging quality
▪ The prestige of a wine’s vineyard and its legacy
▪ The complexity and sophistication of a wine’s taste
▪ A diverse range of wines
These factors are viewed as key to the promotion of wine. Despite the plethora of competitors,
when premium brand wines have the same strategic profile. They offer a high price and high
level of offering across all the key competing factors.
Budget wines also have the same essential strategic profile. Their price is low, as is their
offering across all the key competing factors. Moreover, the value curves of premium and low-
cost wines share the same basic shape. The customer wants “offer me more for less.”. To
fundamentally shift the strategy canvas, a company must begin by reorienting its strategic focus
from competitors to alternatives, and from customers to noncustomers of the industry. In the
case of the U.S. wines there are two strategic groups—premium wines and budget wines. The
only difference is that the premium wines are for special occasions for those able to spend
significant money.
Casella learned that to the mass of Americans wine was intimidating and pretentious, and the
complexity of wine’s taste created flavour challenges for the average person even. With this
insight, Casella Wines redraw the strategic profile of the U.S. wine industry to create a blue
Assignment of Production and operation Management

ocean. Casella Wines, an Australian winery, redefined the problem of the wine industry to a
new one: how to make a fun and easy-to-enjoy wine for every day.
The Four Actions Framework
To reconstruct buyer value elements in crafting a new value curve, we have developed the four
actions framework:
▪ A company considers eliminating factors that companies in an industry have long competed
on. Sometimes.
▪ A company determines whether products or services have been over-designed in the race
beat the competition that increasing their cost structure for no gain.
▪ The third question pushes a company to uncover and eliminate the compromises an industry
forces customers to make.
▪ A company to discover entirely new sources of value for buyers and to create new demand
and shift the strategic pricing of the industry.
Casella Wines created [yellow tail], a wine whose strategic profile broke from the competition
and created a blue ocean. Instead of offering wine, Casella created a social drink accessible to
everyone: beer drinkers, cocktail drinkers, and other drinkers of non-wine beverages. In the
space of two years, the fun, yellow tail emerged as the fastest growing brand
[Yellow tail] leapfrogged tall competitors with no promotional campaign steal sales from
competitors with more than 6 million new customers. Casella Wines acted on all four actions—
eliminate, reduce, raise, and create—to unlock uncontested market space that changed the
face of the U.S. wine industry in a span of two years. Casella Wines created three new factors in
the U.S. wine industry—easy drinking, easy to select, and fun and adventure— and eliminated
or reduced everything else. For example, for much sweeter and easier to drink. Accordingly,
[yellow tail] was a completely new combination of wine characteristics that produced an
uncomplicated wine structure that was instantly appealing to the mass of alcohol drinkers.
In line with this simple fruity sweetness, [yellow tail] dramatically reduced or eliminated all the
factors the wine industry had long competed on and customers of all sorts loved the wine.
[Yellow tail] changed all that by creating ease of selection by creating only two: Chardonnay,
the most popular white, and a red, Shiraz. The retail employees' wine they themselves did not
feel intimidated by, and recommendations to buy [yellow tail] flew out of their mouths. In
short, it was fun to recommend [yellow tail].
Casella Wines was the first company to put both red and white wine in the same-shaped bottle
that further simplicity in manufacturing.
[Yellow tail] created a personality that embodied the characteristics of the Australian culture:
bold, laid back, fun, and adventurous. [yellow tail]’s has three complementary qualities: focus,
Assignment of Production and operation Management

divergence, and a compelling tagline. The wine promised to jump from the glass like an Aussie
kangaroo. From the moment the wine hit the retail shelves in July 2001, sales took off.
The Eliminate-Reduce-Raise-Create Grid
The eliminate-reduce-raise grid pushes companies to act on all four frameworks to create a
new value curve.
The grid gives companies four immediate benefits:
▪ It pushes them to simultaneously pursue differentiation and low costs.
▪ Flags companies that are focused only on raising and lifting their cost structure.
▪ It is easily understood and create a high level of engagement in its application.
▪ Completing the grid is a challenging task, it drives companies discover the range of implicit
assumptions they make unconsciously in competing.
Reading the Value Curves
Embedded in the value curves of an industry is a wealth of strategic knowledge on the current
status and future of a business.
A Blue Ocean Strategy
The Value curves or its competitors tells whether a business deserves to be a winner when they
meet the three criteria defines a good blue ocean strategy—focus, divergence, and a
compelling tagline that speaks to the market. If the company lack on these criteria they are not
winner then.
A Company Caught in the Red Ocean
When a company’s value curve converges with its competitors, it signals that a company is
likely caught within the red ocean of bloody competition. A company’s explicit or implicit
strategy tends to be trying to outdo its competition on the basis of cost or quality.
Over-Delivery without Payback
When a company’s value curve on the strategy canvas is shown to deliver high levels across all
factors with low profitability the strategy canvas signals that the company may be
oversupplying its customers. The company must decide which factors to eliminate, reduce,
raise.
An Incoherent Strategy
When a company’s value curve zigzags, it signals that the company doesn’t have a coherent
strategy. They keep the business running and everyone busy, but collectively they do little to
distinguish the company from the best competitor or to provide a clear strategic vision.
Assignment of Production and operation Management

Strategic Contradictions
Strategic contradictions are areas where a company is offering a high level on one competing
factor while ignoring others that support that factor. An example is investing heavily in making
a company’s web site easy to use but failing to correct the site’s slow speed of operation.
An Internally Driven Company
Analysing the language of the strategy canvas helps a company understand how far it is from
creating industry demand. The kind of language used in the strategy canvas gives insight as to
whether a company’s strategic vision is built on an “outside-in” perspective, driven by the
demand side, or an “inside-out” perspective that is operationally driven.
2. Long case of Disruptive innovation
Learning Outcomes
In this case study, we will learn?
What is Disruptive Innovation?
How Uber is Disrupter Innovation?
Why and who should follow Disruptive Innovation?
How new entrants can make their place in market?
How disrupt term can be misguided?
Disruptive Innovation
The theory of disruptive innovation, introduced in 1995. Many leaders of small companies and
well-established organizations praise it as their guiding star. Despite broad dissemination, the
theory’s core concepts have been widely misunderstood and its basic tenets frequently
misapplied.
If we fail to integrate insights from subsequent research and experience into the original
theory, over time, the theory’s usefulness will be undermined.
This article begins by exploring the basic tenets of disruptive innovation and examining whether
they apply to Uber. Then we learn about major evolution turning point and common pitfalls in
the theory’s application.
Incumbents focus on improving their products and services for their most demanding. Entrants
that prove disruptive begin by successfully targeting those overlooked segments, gaining a
foothold by delivering more-suitable functionality— frequently at a lower price. When
mainstream customers start adopting the entrants’ offerings in volume, disruption has
occurred.
Is Uber a Disruptive Innovation?
Assignment of Production and operation Management

Uber, transformed the taxi business whose mobile application connects consumers who need
rides with drivers who are willing to provide them. Founded in 2009, operating in 60 countries
with $50 billion revenue. But is it disrupting the taxi business?
According to the theory, no. Uber’s financial and strategic achievements do not qualify the
company as genuinely disruptive.
Here are two reasons why the label doesn’t fit.
Disruptive innovations originate in low-end or new-market footholds.
Disruptive innovations are made possible because they get started in two types of markets.
Low-end footholds exist because incumbents typically try to provide their most profitable and
demanding
Customers with ever-improving products and services, and they pay less attention to less-
demanding customers. In the case of new-market footholds, disrupters create a market where
none existed. Put simply, they find a way to turn Non consumers into consumers.
A disruptive innovation starts from one of those two footholds. But Uber did not originate in
either one. It is difficult to claim that the company found a low-end opportunity. Uber’s
customers were generally people already in the habit of hiring rides.
Disrupters start by appealing to low-end or unserved consumers and then migrate to the
mainstream market. Uber has gone in exactly the opposite direction: building a position in the
main stream market first.
Disruptive innovations don’t catch on with mainstream customers until quality catches up to
their standards.
Disruptive innovations, on the other hand, are initially considered inferior by most of an
incumbent’s customers. Typically, customers are not willing to switch to the new offering
merely because it is less expensive. Instead, they wait until its quality rises enough to satisfy
them. Most of the elements of Uber’s strategy seem to be sustaining innovations like
punctuality, pricing, booking ride and ratings.
Why Getting It Right Matters
The company has certainly thrown the taxi industry into disarray: Isn’t that “disruptive”
enough? No. Applying the theory correctly is essential to realizing its benefits. As the example
of Uber shows, identifying true disruptive innovation is tricky. Yet even executives with a good
understanding of disruption theory tend to forget some of its subtler aspects when making
strategic decisions.
Disruption is a process. The term “disrup- tive innovation” is misleading when it is used to refer
to a product or service at one fixed point, rather than to the evolution of that product or service
over time.
Assignment of Production and operation Management

Disrupters tend to focus on getting the business model, rather than merely the product, just
right. When they succeed, their movement from the fringe (the low end of the market or a new
market) to the mainstream erodes first the incumbents’ market share and then their
profitability.
Disrupters often build business models that are very different from those of incumbents.
One high-profile example of using an innovative business model to affect a disruption is Apple’s
iPhone. The product that Apple sustaining innovation in the smartphone market: It targeted the
same customers coveted by incumbents with product superiority. This was achieved not merely
through product improvements but also through the introduction of a new business model. By
building a facilitated network connecting application developers with phone users. The iPhone
created a new market for internet access.
Some disruptive innovations succeed; some don’t. A third common mistake is to focus on the
results achieved—to claim that a company is disruptive by virtue of its success. But success is
not built into the definition of disruption: Not every disruptive path leads to a triumph, and not
every triumphant newcomer follows a disruptive path.
Uber, true to its nature as a sustaining innovation, has focused on expanding its network and
functionality in ways that make it better than traditional taxis. Apple, on the other hand, has
followed a disruptive path by building its ecosystem of app developers so as to make the iPhone
more like a personal computer.
The mantra “Disrupt or be disrupted” can misguide us.
Company should continue to strengthen relationships with core customers by investing in
sustaining innovations and create new growth opportunities. Our research suggests that the
success of this new enterprise depends in large part on keeping it separate from the core
business.
Of course, as the disruptive stand-alone business grows, it may eventually steal customers from
the core. But corporate leaders should not try to solve this problem before it is a problem.
What a Disruptive Innovation Lens Can Reveal
Disruption theory dictate what managers to make a strategic choice between taking a
sustaining path and taking a disruptive one. Other companies will beat back the entrant by
offering even better services or products at comparable prices, or one of them will acquire the
entrant. The data supports the theory’s prediction that entrants pursuing a sustaining strategy
for a stand- alone business will face steep odds.
According to disruption theory, Uber is an outlier, and we do not have a universal way to
account for such a typical outcome. In Uber’s case, it can offer better quality and the
competition will find it hard to respond, at least in the short term.
Assignment of Production and operation Management

The company’s Uber SELECT option provides more-luxurious cars and is typically more
expensive than its standard service—but typically less expensive than hiring a traditional
limousine. Consequently, this offering from Uber appeals to the low end of the limousine
service market.
How Our Thinking about Disruption Has Developed
Incumbent companies should strengthen relationships with core customers while also creating
a new division focused on the growth opportunities that arise from the disruption. Incumbents’
focus on their existing customers becomes institutionalized in internal processes that make it
difficult for even senior managers to shift investment to disruptive innovations. There is a novel
technology or business model that allows entrants in higher education to follow a disruptive
path.
What we’ve realized is that, very often, low-end and new-market footholds are populated not
by a lone would-be disrupter, but by several comparable entrant firms whose products are
simpler, more convenient, or less costly than those sold by incumbents. Some entrants will
improve their products and drive upmarket and compete against higher-cost established
competitors.
The key elements of the theory have been tested and validated through studies of many
industries.
Making sense of anomalies.
Low-end disrupters come in at the bottom of the market and take hold within an existing value
network before moving upmarket and attacking that stratum. By contrast, new-market
disruptions take hold in a completely new value network and appeal to customers who have
previously gone without the product.
Many of these new entrants' desire for growth, prestige, and the capacity to do greater good.
Thus, they made costly investments in improvements. Doing so has increased their level of
performance in some ways. Because both incumbents and newcomers are seemingly following
the same game plan, it is perhaps no surprise that incumbents are able to maintain their
positions.
The enabling innovation is online learning, which is becoming broadly available. Real tuition for
online courses is falling, and accessibility and quality are improving. Innovators are making
inroads into the mainstream market at a stunning pace. We’ve come to realize that the
steepness of any disruptive trajectory is a function of how quickly the enabling technology
improves.
Understanding what drives the rate of disruption is helpful for predicting outcomes, but it
doesn’t alter the way disruptions should be managed. Similarly, it is a mistake to assume that
Assignment of Production and operation Management

the strategies adopted by some high-profile entrant's constitute a special kind of disruption.
Often these are simply miscategorized.

We still have a lot to learn.

Disruption theory does not, and never will, explain everything about innovation specifically or
business success generally. Far too many other forces are in play, each of which will reward
further study. Integrating them all into a comprehensive theory of business success is an
ambitious goal, one we are unlikely to attain anytime soon.
Empirical tests show that using disruptive theory makes us measurably and significantly more
accurate in our predictions of which fledgling businesses will succeed.
3. Long case study of Polyface: The farm

Learning Outcomes
In this case study we will learn?
About Salatin family farms and herds?
Salatin’s passion for farming
Why Willian Salatin didn’t follow new raising trend to increase his farm’s productivity?
How grass for animals are grown in Salatin farm?
How eggs, pork, turkey, rabbit, beef and chicken are taken care in farm?
Why Polyface open its door for visitors?
How the meet and eggs are supplied to consumers?
Polyface: The Farm of Many Faces
After years of innovation and experimentation, Salatin had fulfilled his father’s vision of
an economically and environmentally sustainable family-owned farm in Virginia. After
being featured in documentary film Food, Inc., 2 for his approach to raising beef,
poultry, pork, and rabbits in herd of 15 Hereford cowsa and established Polyface farm
learned by his father, Salatin became something of a celebrity
With such increased interest in his products, Salatin wondered how he would grow
his business without violating his commitment to small-scale, local-market farming.
Consumer demand was starting to outpace his resources, and Salatin needed to
continue innovating to keep pace with this positive food movement.
Assignment of Production and operation Management

After graduating from college in 1979 and marring Teresa, Salatin knew that his
dream life resided on the farm. Finally, in 1982, he and Teresa decided to join his father
in running Polyface full-time, hoping to turn the farm into a profitable enterprise.
Farming Industry: Trends and Regulation
Subsequently, the 1950s and 1960s marked a rapid decline in small-scale farming
operations and local food markets, as the growing demand for food convenience gave
way to bigger supermarkets, the advent of the microwave, and newly engineered
pesticides. In addition, the farming industry shifted from a stereotypical polyculture
configuration to less labor-intensive single- output farms which William Salatin didn’t
follow. As a result, a series of new government regulations emerged to regulate the
increased mechanization and scale of operations engaged in the growing, processing,
and selling of food.
Polyface Farming Operations
Salatin’s approach to farming was consistent with his father’s philosophy, which recognized
animals’ natural inclinations and took advantage of their physiological distinctiveness. Polyface
had six full-time-equivalent employees: Salatin and Teresa Salatin.
Grass
The primary component in Polyface’s animal feed and the engine behind pastured
farming. “What we’re really farming here,” Salatin explained, “is not animals; it’s grass.
If we take care of the grass, the grass will take care of the animals.”. Salatin focused on
developing operational techniques to optimize the delivery of the important inputs for
healthy grass growth.
By carefully orchestrating the movement and grazing patterns of different animal
groups, Salatin was able to exploit animal excrement as a rich source of fertilizer. His
management-intensive grazing system abided by three natural animal behaviors:
(1) Moving, to ensure a daily supply of fresh forage;
(2) Mobbing, to mimic the social tendencies of animals; and
(3) Mowing (or grazing), to stimulate further plant growth.
Beef
Every year, Polyface purchased approximately 125 calves from stockyards; The calves
gained, on average, 1.5 pounds per day for roughly ten months. During the no winter
months, the cows were pastured. As the cows moved to a different paddock each day,
the electric fences were moved along with them, containing them in their designated
grazing area.
The optimal size of each paddock depended on the composition of the herd and the
quality of the forage, and was calculated on the basis of “cow- days” per acre. After
Assignment of Production and operation Management

grazing in this paddock for a day and mowing the 16-inch grass down to 4 inches, the
cattle were moved to the next dynamically created paddock to ensure that they were
ingesting fresh, unsoiled grass.
Chicken
Each year, the farm purchased approximately 14,000 broiler chicks from hatcheries.
The chicks were incubated in enclosed, heated houses (brooders) for two to three weeks
before being set out to pasture. Once ready for grazing, the birds were brought to
pasture for five to six weeks and housed in portable, open-air pens built by Salatin
himself, were open to the field from below so the chickens could eat the grass and leave
their nitrogen-rich droppings as fertilizer. The 14,000 broilers were run in eight batches,
with a new batch introduced every three weeks with at most 45 portable pens on the
pasture.
Eggs
About 70,000 dozen Polyface eggs were produced each year. The birds were allowed
to roam in areas recently mowed by the grazing cows down to four-inch grass that was
suitable for the chickens. The hens debugged the pasture by eating the insects and
picking the insect larvae from the recently dropped cow manure.
This diet both gave the chickens nutrients and eliminated parasites that would
otherwise bother the cattle and infect them with disease. Salatin found over the years, a
“sanitation crew” of at least two hens per cow was required to effectively process the cow
manure. During the winter, laying hens were kept in hoop houses.
Rabbit
Polyface raised rabbits in the field during the warm-weather months and in hoop
houses during the winter. The rabbit cages were propped up on slatted tables, which
allowed droppings to pass through. Because birds in hoop houses could not eat insects
and insect larvae from the cow droppings, as they did during the rest of the year, they
required more feed than was provided in the eggmobiles. In the spring, once the animals
were moved back outside, vegetables were planted in the rich raken-house compost.
Turkey
Salatin added pastured turkeys to the farm’s portfolio and raised them in mobile pens
that mimicked the broilers’ migration behind the cows. Salatin exploited one additional
synergy specific to the turkeys: he utilized their labor in Polyface’s backyard vineyard,
which provided grapes for the family’s enjoyment. When he recognized the turkeys’
simultaneous dislike of grapes. Growing grapes was typically a labor-intensive
undertaking because the weeds required constant culling; however, by “employing” the
turkeys to do this work, Polyface generated an additional source of food with very little
additional effort.
Sales and Distribution
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Salatin sold directly to his customers through a number of different channels.

On the Farm
Polyface sold 25% of its goods directly to customers who came to the farm. However,
Salatin had noticed that clients’ willingness to drive to Staunton to see the precedence
over trips to the farm.
Metropolitan Buying Club
In response to the changing needs of its customers, Polyface created the Washington-
area Metropolitan Buying Club (MBC), through which it sold another 45% of its
products. The deal was advantageous to both parties involved: customers obtained a
bulk-purchasing advantage and food delivery services, and Polyface was guaranteed that
all of its transported products would sell, eliminating the guesswork involved in
arrangements such as farmers’ markets.
Restaurants
The remaining 30% of Polyface products were sold to approximately 50 restaurants,
small retail outlets, and other food service establishments in Staunton, Charlottesville,
and Harrisonburg,
Educational Programs
Education was a central theme at Polyface and was ever present in customer
interactions. In addition to providing scheduled tours, Polyface had a completely open-
door policy, allowing its customers and visitors to take unrestricted, self-guided tours
Monday through Saturday at any time of the day. Polyface also welcomed its hard-of-
stomach customers to witness its chicken processing operation, so that they could see
for themselves the quality and care that went into all Polyface products.
The Industrial Food Supply Chain
The demand for food increased and the number of agricultural workers decreased.
Through the use of selective breeding techniques, animals were bred to grow faster and
bigger. In addition, animals were bred so that individuals in a species were all nearly the
same proportions and size, allowing for quick processing through the industry’s
automated equipment.
Corn
The main component in animal feed was corn. Once on the fields, the corn seeds were
put through corn planters and dropped evenly into the ground. After 50 to 100 growing
days, a typical farm could expect to harvest 180 bushelsf of corn per acre of land.7 the
corn kernels were then transported to grain elevators, where they were combined with
corn from other farms and stored until they were purchased by distributors such as
Minnesota-based Cargill.
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Beef
Beef from a typical factory-farm cow went through six main processing areas before
reaching the end consumer: the cow-calf operation, the buyers, the feedlots, the packers,
the distributors, and the retailers. Although the majority of their feed consisted of corn,
cows (and other herbivores in general) did not naturally eat corn. The high starch
content in this diet increased the acid in their digestive systems, leading to increased
incidences of diseases formed by stronger, acid-resistant mutations of bacteria. To
combat the increased probability for disease, the cows received a steady dose of
antibiotics each day.
The packers of slaughtered meat is partitioned, ground, separated, and packaged the
meat for shipping. The processing and rendering facilities’ by-products, including blood
and water, were either treated and discharged into sewer systems or removed by a
commissioned waste management service. Finally, distributors labeled the meat and
shipped it to retailers across the country.
Chicken
At the hatchery, the producing company often injected newborn chicks with
antibiotics and other medications to begin the prevention of disease. The producing
company also provided the growers with feed and medication at regular intervals.
During their seven weeks on the farm, the chickens were fed a mixture of corn and
animal renderings that mimicked the bird’s diet in the wild, though some companies
also added supplements to the feed.
Although most houses contained openings such as doors or screened windows,
chickens were not encouraged to leave the house for fear that they would contract
diseases and, as a result of living in such close quarters, quickly contaminate the entire
flock. Growers installed large fans to keep the air circulating inside the house and to
blow the ammonia buildup out, and feed augers delivered a steady stream of feed and
water.
On the farm, the chicks were grown into 5.5-pound chickens. Chicken producers sent
their own workers to collect and cart the chickens, a task that was performed at night to
prevent the chickens’ natural instincts to resist. The birds were then transported to the
processing facilities, where they were slaughtered, partitioned, packaged, and labeled
for shipping at a rate of 90–130 chickens per minute.
Eggs
Egg-laying hens were kept in henhouses that averaged approximately 22,000 square
feet and were stocked with tiers of wire cages the size of filing cabinets that contained
between five and eight birds each.10 a conveyor delivered feed and water in front of each
cage, and chicken excrement dropped through the cages’ wire mesh floors. Due to the
space restrictions, most animals were unable to carry out natural chicken behaviors,
such as nesting, cleaning, perching, and foraging. As a result, these birds exhibited
Assignment of Production and operation Management

aggressive tendencies and were debeaked to prevent feather-pecking and

cannibalization.
Quality
The nutrient composition of certain foods was found to be changing over time:
according to a USDA food composition study published in 2004, the nutritional value of
garden crops had steadily decreased from 1950 to 1999, with results ranging from
protein deficiencies of 6% to riboflavin deficiencies of 38%.17 Second, food items that
had been commonly perceived by the typical consumer as commodities were slowly
being recognized as vertically differentiable products.
Health
The United States consumed 31% more processed goods per person than any other
country in the world. Meanwhile, the incidences of obesity and diabetes were increasing
dramatically. While the relationship between these trends and the industrial food
system was still being debated, it appeared that Americans’ eating habits and lifestyles
were having a negative impact on their health.
Environment
Farms in the United States generated tens of millions of gallons of animal waste each
year.21. Bodies of water in various locations around the country were showing
increasing pollution levels. The establishment of manure lagoons only temporarily
mitigated this threat. Although these large concrete vats collected slurry from farms,
their contents were so high in acidity that there was a risk of cracking in the concrete
structure. The contaminated waste sometimes leached from these operations and
drained into nearby water systems, tainting ponds and lakes at the expense of the
surrounding communities.
In addition, there were growing concerns over land deterioration related to farming.
Agriculture contributed to 38% of nitrogen and 45% of phosphorus pollution, 22 and
cattle grazing in the western United States eroded a large part of its topsoil and
destroyed much of its indigenous vegetation.
Growing Polyface
Salatin completed a long day’s work: moving animals around the farm, preparing the
van for an upcoming delivery in Maryland, and welcoming an ever-growing number of
visitors to Polyface. Demand for Polyface products was growing at a rate that Salatin
would never have anticipated.
Salatin wondered, how he should go about growing his operation to meet this
demand. He and his staff were constantly thinking of how to better utilize the existing
resources on the farm to produce more output.
Assignment of Production and operation Management

4. Long case study for Reshore manufacturing successfully

Learning Outcomes
In this case study, we will learn about
How and why the labor cost is rising?
How to stabilize the work force?
How to avoid overuse of automations?
Localization of Supply base?
Why all small components of a device have to import from China?
Product design and Market demand?
How Research and development department helps in manufacturing?
Why it is important to have a links between R&D and production?
What is a global local strategy?
What It Takes to Reshore Manufacturing Successfully
RISING LABOR COSTS in China. While some labor-intensive jobs are moving out of China to
Southeast Asia or the next emerging low-cost regions, some high-profile manufacturing work is
returning to the United States, to the cheers of some who are proclaiming the beginnings of a
manufacturing renaissance. Wal-Mart holds supplier conferences to promote “Made in U.S.A.,”
and the retail giant encourages manufacturers to commit to producing in the United States by
promising to purchase $50 billion more in U.S. manufactured goods in the next 10 years. It is
targeting the reshoring of products made for its stores by trying to facilitate and accelerate
reshoring efforts among its suppliers.
While the macroeconomic data on comparative labor and factor costs may be compelling, the
actual process of reshoring bringing assembly work back from abroad is hard work. This
research has looked at several initiatives aimed at rebuilding regional capacity, a high-end
technology product manufactured at Flextronics facilities in Austin, Texas; as well as
comparison factories in Europe and Asia.
Positioning manufacturing close to the market minimizes the inventory of goods in the pipeline
and reduces delivery times and enabling companies to respond more quickly to market
changes. It was important to pay a wage rate that was globally competitive when adjusted for
productivity, and there can be no compromises on quality.
Assignment of Production and operation Management

Stabilizing the workforce, addressing organizational skills gaps, rethinking the capital/labor
ratio, localizing the supply base and rethinking product design to leverage the proximity to
manufacturing turned up consistently as important focus areas for managers.
Stabilizing the Workforce
Establishing product-assembly operations means hiring people, often in large numbers.
Appliance Park had a goal of hiring 2,500 new workers; the reshoring project in Fort Worth had
the same target. Finding enough people with the right skills and finding them fast enough to
support the ramp-up of operations was an enormous challenge. High worker turnover is a
problem on the shop floor because it injects variability and unpredictability into production
schedules. Constantly having to replace workers who drop out is not a path to success; the
expenses associated with recruiting and training new employees when so many walk out the
door are substantial.
I found that this problem had two main components: worker understanding and expectations
of what a modern factory production job is. The first part reflects the great advances
manufacturing processes have made in modern factories over the last two decades. Lean
production systems and sophisticated quality systems have transformed the roles of frontline
production and supply chain logistics workers. “We hired people off the couch,” remarked one
plant manager.
The long-term unemployed represented a major pool from which companies drew. Most new
hires had little idea what they had signed up to do. One Fort Worth manager commented that
high attrition was an inevitable consequence. “If you looked in the trash can at the building exit,
we found a lot of badges” that workers discarded on their way out the door. The investment in
onboarding and initial training was lost.
As for offering workers a reason to stay, Appliance Park managers have tackled the problem of
“job abandonment” by segmenting their remediation efforts into two phases: pre-employment
and post-employment.
1- Pre-employment activities have been encourages applicants to complete training and
certification by the Manufacturing Skills Standards Council. In the programs, candidates
developed proficiency in fundamental factory skills, and their personal investment in training
tended to increase their level of commitment to staying.
Flextronics managers found that thoroughly explaining the content of factory work and the
expectations on the shop floor were vital to reducing turnover. Managers also stressed the
need to set clear expectations about showing up for work on time and getting work done on
time. Success in reducing job dropouts post-hiring occurred most often when companies built a
skills progression system that showed workers a path to more highly skilled and responsible
positions.
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Appliance Park managers built a path for entry- level plastic injection molding machine
employees that progressed through three “A” levels for operators, three “B” levels of molding
technician and three “C” levels of molding processor positions. Managers at other companies
preferred to do training in-house. Flextronics managers in Austin had to recruit and train almost
2,000 new employees for the “Assem- bled in USA” technology project.
Addressing the Skills Gaps
China has developed vast pools of technical resources; the United States and Europe haven’t
trained enough young people in these areas. In the United States, there is still strength in the
automotive, construction equipment and aerospace sectors. However, the gaps in
metalworking and operating sophisticated machine tools — are acute. The offshoring of high-
volume assembly jobs over the last two decades means there also aren’t enough automation
engineers and other specialists to support the setup of extensive new assembly operations.
For some products for which much of the manufacturing has moved offshore, there are
generational skills gaps in both product development and the shop floor. Simply hiring a
capable workforce doesn’t translate into restoring manufacturing capabilities; frequently, the
basic processes have to be rebuilt or transplanted back from offshore. Rather than having a
focus on design for manufacture and efficient assembly and processing, companies had
concentrated on low-cost, competitive sourcing. They built new skills in offshore purchasing,
reverse auctions and global logistics, but forgot how to do the basics of putting products into
production onshore.
In Fort Worth, Flextronics management flew in a team of 150 manufacturing leaders from
around the world. They left behind five experienced managers who then continued to train and
oversee the workforce. Perhaps the greatest challenge was building shop floor leadership.
Flextronics was able to draw on a global resource pool because it frequently established new
facilities or moved existing manufacturing operations as part of routine consolidations. “We
had to build up a critical process-engineering group,” explained the head of the injection-
molding center of excellence. “We went out and hired about 15 to 20 graybeards and put them
out into the organization. We doubled the size of our operations leadership program, and had
those people shadow the graybeards to build up the knowledge.”. “The workforce is brand
new; the equipment is brand new; you have to have the workforce to pull it all together,”
explained one of the GE managers. Filling the capabilities gap takes time. “Nobody coming out
of college these days is knowledgeable or excited about doing this kind of work,” commented a
manager at Fort Worth. “We can’t afford to only hire people who are over 40 or bring people in
from abroad.”
Rethinking the Capital/Labor Ratio
When choosing a location for assembly operations, it is natural to assume that higher wage
rates will justify a greater use of automation. With that offshoring came substantial substitution
of labor for capital — the replacement of “hard” automation using expensive capital equipment
Assignment of Production and operation Management

with manual processes. Manual processes were less expensive, and human operators were far
more flexible than machines that had to be reprogrammed with every model change.
In Austin, Flextronics managers built several “no-touch” electronic printed circuit board lines.
Direct labor content was therefore comparatively low. Having a slightly higher mix of manual
operations promoted significantly more flexibility. Engineers and manufacturing company
should be careful to avoid over-automating. The mix may change over time with production
experience and learning.
Appliance Park managers established a strategy that would increase the amount of vertical
integration — bringing work back in-house to utilize labor freed up from productivity
improvements. If production operators are secure in the knowledge that improving productivity
will translate into growth and not job losses, their goals will be aligned with management’s.
Localizing the Supply Base
When manufacturing went through the first big waves of offshoring to China, companies often
used “kitting” of parts to keep assembly lines supplied. Over time, China-based manufacturers
localized their supply chains, inviting key suppliers to set up near them to reduce costs and
shorten replenishment times. They also replaced suppliers who didn’t move. This lowered costs
and had the ancillary benefit of lowering duties for sales to the Chinese domestic market.
In such industries, moving production back to a country such as the United States therefore
often means a manager will face a hollowed-out supply base. Thus, the economic benefits of
customization and nearness to market had to substantially exceed the increased transportation
and supply chain logistics costs.
Appliance Park faced less of an issue, as parts of the supply base still existed, albeit with
reduced capacity. Managers there realized that they had to take a more strategic view of their
suppliers than in the past. They recognized that, internally, they had lost a whole generation of
manufacturing engineers, so they had to pick the areas where they wanted to focus and rebuild
core competencies.
Rebuilding a supplier is adopting a strategic view of supply relationships, rather than a
transactional view. Some have described the new model as “co-innovation” — a cooperative,
tight partnership between an original equipment manufacturer and its suppliers that entails a
much higher level of information sharing and collaboration to solve design and production
problems.
How Customers Can Help
A retailer such as Wal-Mart can actually do a great deal to improve the efficiency of the overall
supply chain by active partnering and by providing greater transparency to demand. It means
earlier and more frequent sharing of demand signals, as well as a commitment to work
together to improve overall supply chain efficiency for the longer term.
Assignment of Production and operation Management

Manufacturing partners that have more visibility to what is coming, whether demand will move
up or down, can better react to changes. Many of us have not yet learned this lesson. Any
supply chain will perform better with open communication and visibility across all its segments,
but a supply chain centered on a fast-response local production factory will benefit much more
than one that has weeks or months of inventory in ocean containers coming from China.
Leveraging the New Proximity of Manufacturing
As product designs changed and new advanced technologies evolved and were incorporated,
the difficulties in reimagining production have increased. Re-establishing close links between
R&D and production offers a significant opportunity to improve products. “Having the work in-
house is important for our learning. Having that design piece of this thing on-site, having the
design team interact with the operators who actually make it, and seeing the tools open up on
the bench, how the tool works, the thought process — learning that and how those cycles back
into the design — there is a value to that,” explained the head of the plastics competency
center at Appliance Park. Positioning manufacturing close to R&D thus can translate into even
shorter lead times and more rapid product cycles, over and above the time gained by moving
production back onshore.
Toward a Global Location Strategy
Offshoring from the United States and other high- cost economies to low-cost emerging market
countries was a dominant theme of manufacturing in the late 1990s and 2000s. Now reshoring
offers the promise of reestablishing the link between product design and manufacturing. As
managers work through the challenges described in this article, moving to the supplier
ecosystems as a key complementary asset and the importance of developing people, skills and
organizational capabilities that make the most of closeness to the market. In many ways, the
challenges of reshoring to the United States are the challenges of establishing production and
supply to serve any market in the world. Doing that well will always be a source of competitive
advantage.