NMIMS Global Access

School for Continuing Education (NGA-SCE)

Course: Operations Management

Internal Assignment Applicable for June 2022 Examination

1. List down briefly the various inventory management techniques prevalent in the industry.
Discuss how some of these techniques would be applicable to an Automobile Service Shop in
effective management of their inventories; i.e., Spares, Consumables, etc (assume several
inventories of your choice).

Answer: - Inventory management assists organizations with distinguishing which and how
much stock to arrange at what time. It tracks stock from buy to the offer of products. The
training distinguishes and answers patterns to guarantee there's in every case sufficient stock
to satisfy client orders and legitimate admonition of a deficiency.
Once sold, stock becomes income. Before it sells, stock (albeit revealed as a resource on the
monetary record) ties up cash. Accordingly, an excessive amount of stock costs cash and
diminishes income.
One estimation of good stock administration is stock turnover. A bookkeeping estimation,
stock turnover reflects how frequently stock is sold in a period. A business doesn't need more
stock than deals. Unfortunate stock turnover can prompt deadstock, or unsold stock.

The various inventory management techniques prevalent in the industry are: -

Batch Tracking:
This strategy bunches comparable things to follow termination dates and follow flawed things.
Bulk Shipments:
This technique considers unloaded materials that providers load straightforwardly into boats or
trucks. It includes purchasing, putting away and delivering stock in mass.
Cross-Docking:
Utilizing this technique, you'll dump things straightforwardly from a provider truck to the
conveyance truck. Warehousing is basically disposed of.
Drop shipping:
In the act of outsourcing, the provider ships things straightforwardly from its distribution center
to the client.
Economic Order Quantity (EOQ):
This recipe shows precisely how much stock an organization ought to request to diminish
holding and different expenses.
FIFO and LIFO:
First in First Out (FIFO) implies you move the most seasoned stock first. Last in, first out
(LIFO) thinks about those costs generally rise, so the most as of late bought stock is the costliest
and, in this way, sold first.
Just-In-Time Inventory (JIT):
Organizations utilize this strategy with an end goal to keep up with the most reduced stock
levels conceivable before a top off.
Lean Manufacturing:
This approach centres around eliminating waste or anything that doesn't offer some incentive
to the client from the assembling framework.

The various inventory management techniques which are applicable to an Automobile Service
Shop in effective management of their inventories are as follows; -
Have a Sound Operating Strategy
An operating strategy helps an association with the assignment of assets to help foundation and
creation. Think about it like a diagram for your extra administration activity, specifying
everywhere and spreading out plans for how to make it far superior. With a working system set
up, your studio can guarantee better portion and utilization of extra parts at least time and cost
consumed. Having a sound working methodology guarantees that you're furnished against any
unexpected situation.

Manage Your Spare Parts Inventory

Inventory management is a fundamental capacity of any vehicle related work. Use strategies
of stock administration to more readily stock items, for most extreme utilization. Stock
administration guarantees that you're adequately loaded (to forestall drained/no stock) and
permits you to examine and recognize the overabundance and the waste. Most extreme space
utilization at least exertion and bother is a definitive reason for stock administration.

Understand Existing & Projected Consumption

Without a reasonable image of your deal numbers and request remainder, you will constantly
confront trouble in effective extra parts the executives. You really want to start examining your
deal numbers to comprehend and foresee future utilization. This will additionally help you in
dealing with your extra parts stock, empowering you to arrange according to require, and
forestall a lack of overabundance or of extra parts stock.
Shelf-Life Management
Spare parts, similar to all the other things, have a restricted timeframe of realistic usability.
Assuming that timeframe of realistic usability is surpassed and the part is utilized, it can
possibly influence unwavering quality. Take a grip wire for instance. In the event that a grasp
wire is put away in a case and left unattended and neglected years, the grip wire might actually
rust and foster weakness. Assuming that this wire is introduced, how long will it last?
Spare parts additionally require support. Take for instance brake chains, which ought to be
oiled on an intermittent premise to forestall rusting and harm. In the event that this isn't done,
the vehicle on which it is introduced would be absconded and lead to untimely disappointment.
The most effective way to ensure that your extras are saved in the most ideal manner is to
follow the producer's suggestions.

Identify Reliable Suppliers

At the point when you utilize low quality parts, they can bring about disappointment, vehicle
harm and more upkeep work. Distinguish quality-guaranteed providers utilizing a mix of
upkeep records, deal records and buyer input. Get from providers with great input who
additionally satisfies your parts prerequisite. While corporate buying necessities could direct
your selection of providers, it is as yet conceivable to work with your buying division. You can
utilize measurements and reports about seller quality and dependability, to put forth your
defense.

2. Explain in detail the various types of plant layout concepts that area available in operations
management. Give examples on where each of these types can be employed respectively.
Briefly explain a layout applicable for a Retail store format, highlighting the good points and
bottlenecks, if any.

Answer: - Plant layout is an arrangement for viable use of offices for the assembling of items;
including a most proficient and efficient course of action of machines, materials, staff, extra
room and every supporting help, inside accessible floor space.
"Plant format is an arrangement of ideal course of action of offices including faculty,
hardware's, extra room, material taking care of gear and any remaining supporting
administrations alongside the choice of best construction to contain this large number of
offices."

Types of Plant Layout: -

A. Product Layout (or Line Layout):
In this kind of design, every one of the machines are organized in the grouping, as expected to

deliver a particular item. It is called line design since machines are organized in an orderly

fashion. The unrefined components are taken care of toward one side and taken out as

completed item to the opposite end.

Unique reason machines are utilized which play out the expected positions (i.e., capacities)

rapidly and dependably.

Product layout is depicted below:

Product layout is suitable in the following cases:

• Where one or hardly any normalized items are made.
• Where an enormous volume of creation of everything needs to venture to every part of
the creation cycle, throughout a significant timeframe.
• Where time and movement studies should be possible to decide the pace of work.
• Where a chance of a decent equilibrium between work and gear exists.

B. Process Layout (or Functional Layout):

In this sort of format, all machines performing comparative kind of activities are gathered at
one area i.e., all machines, processing machines and so on are assembled in the shop and they
will be bunched in like gatherings.

A typical process layout is depicted below:

Process layout is suitable in the following cases, where:

✓ Non-normalized items are produced; as the accentuation is on exceptional orders.
✓ It is challenging to accomplish great work and hardware balance.
✓ Creation isn't carried for a huge scope.
 ✓ It is hard to embrace satisfactory time and movement studies.
✓ It is as often as possible important to involve a similar machine or work station for at
least two troublesome tasks.

C. Combination Layout:
Practically speaking, plants are seldom spread out either in item or cycle design structure. For
the most part, a blend of the two fundamental designs is utilized; to infer the upsides of the two
frameworks of design. For instance, fridge producing utilizes a blend design.
Process design is utilized to create different activities like stepping, welding, heat treatment
being done in various work communities according to prerequisite. The last gathering of the
item is done in an item type format.
D. Fixed Position Layout:
It is additionally called fixed format. In this kind of design men, materials and machines are
brought to an item that remaining parts in a single spot inferable from its size. Transport
building, air-make producing, cart building, weighty development of dams, spans, structures
and so forth are commonplace instances of such design.

There are floor plans accessible for both independent companies and chain retailers that
decisively arrange product to streamline the accessible space. With viable inside plan,
organizations can coordinate their clients towards high-benefitting things to drive the primary
concern. The most widely recognized retail location designs incorporate-

Grid Floor Plans

The lattice floor plan, otherwise called the straight design, centres around exploiting floor and
divider space. Light apparatuses and shows run lined up with the dividers so retailers can open
up the floor and even utilize the edges of the store. This visual promoting design makes it
extremely simple for clients to track down items and stroll through passageways.
Network floor plans are ordinarily utilized in accommodation and supermarkets, where clients
need to rapidly track down things. Hence, this design is superb for private ventures and
organizations that take care of purchasers in a hurry.

Pros
Simple Navigation - The complete design permits customers to handily track down items.
Handles High Traffic Flow - The open aisleways can oblige enormous volumes of clients all
at once.
Impacts Customers to Browse - With the normalized paths and racking, things are uncovered,
empowering clients to glance around.
Gives Space to Advertisements - Maximizing the divider space permits the board to advance
arrangements and hang shows noticeable to the clients.
Cons
Standard Design - The consistency of this plan generally rules out imagination and can be seen
as dull.
Can Lead to Frustrated Customers - Since the network format permits simple route, on the off
chance that a thing can't be found in its assigned region, customers can end up being disturbed.

3. A restaurant chain is planning to open up a new mid-sized multi cuisine restaurant.

Considering their expertise and knowledge in the food and beverages services, they are
confident of getting into the new restaurant operation. You are required to suggest the team on
the following points:

a. Suggest a site location for the restaurant, assuming it to be Metro city (you can assume a city
of your choice). Give your reasons for the same.

Answer: -Delhi, aside from being the capital city, is additionally authoritatively the place that
is known for foodies. It is likewise normal known as the cafe centre of India, due to the rising
number of eateries coming up in the city. Also, thus the café business is one of the most
discussed strategies among families and companions. By and large, every third table you find
in a café is discussing the extraordinary levels that the eatery business has reached. A couple
of those visionaries are fruitful in satisfying their fantasies, and the initial step to satisfy these
fantasies is by picking the right eatery area for your business in Delhi.
In Delhi very few financial plans well disposed, great bistros are available between Punjabi
Bagh to North Campus. Thus, that is one spot region (sufficiently enormous) to browse for
opening another cafe.

The reasons for choosing the same location are as follows: -

Visibility
The as a matter of some importance factor that you ought to consider ought to be the
perceivability of your fantasy place. Your café's place should be agreeable with your topic.
You should likewise comprehend what sort of individuals are strolling in and can those walkers
come by your eatery. A tad of exploration is required on what portion of the day presents to
you the most traffic. When you sort that out, you're good to go to send off your café.
Furthermore, the area between Punjabi Bagh to North grounds contains all the perceivability
factors for opening a cafe.

Parking
Whether you're wanting to open a top-notch eatery or a Quick Service Restaurant, you should
ensure that there is sufficient spot to stop close to your place. Stopping issues by and large lead
to deficiency of likely clients, and ultimately a major misfortune to your business. The area has
numerous appropriate stopping places, so that won't be an issue for opening the cafe.

Surrounding Competition analysis

As a cafe proprietor, you should pick your ideal area based on the encompassing contest. The
all-around laid out contenders drive the market as of now, which should be changed by your
new residence. In this way, you should establish the spot in like manner. There are very few
rivalries in the cafe section, so opening another eatery in this area will be great.

Your Cuisine:
When you settle on the subject of your eatery, you should rapidly jump to the food and menu
designing. Your food will inform you a great deal regarding the most fit place for your cafe.
"Cooking ought to be your essential worry while picking an area for your cafe," adds Luv
Khosla, an eatery specialist from Champ Foods, Delhi, "Generally in light of the fact that the
group in various areas of Delhi have a decisively unique taste".
Concluding your cooking likewise includes picking whether you need to incorporate non-
veggie lover food into it. There are markets like that of Prashant Vihar in Rohini that are
expressly accessible for veggie lover food. Aside from that, a few areas of North Delhi are
likewise well known for veggie lovers due to the populace living around.
A north-Indian/Punjabi cooking works most in regions like Rajouri Garden and Punjabi Bagh.
You can't anticipate prospering with an Italian menu there.

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

Answer: -An association can conclude its field-tested strategies on the proposal of interest
gauge. When marketable strategies are prepared, an association can accomplish in reverse work
from the last deals unit to natural substances required. Subsequently, yearly and quarterly plans
are separated in the process of childbirth, natural substance, working capital, and so forth
necessities over a medium-range period (a half year to year and a half). This course of working
out creation necessities for a medium reach is called total preparation.
Aggregate planning as an Operational Tool
Total arranging accomplishes balance between activity objective, monetary objective and
generally speaking key target of the association. It fills in as a stage to oversee limit and request
arranging.
In a situation where request isn't matching the limit, an association can attempt to adjust both
by estimating, advancement, request the board and new interest creation.
In situation where limit isn't matching interest, an association can attempt to adjust the both by
different choices, for example,
• Laying off/recruiting overabundance/lacking abundance/insufficient abundance/deficient
labour force until request decline/increment.
• Counting extra time as a component of planning there by making extra limit.
• Recruiting a brief labour force for a fix period or re-appropriating movement to a sub-
worker for hire.
The strategy that would be adopted by the for an Aggregate Operation Plan is: -

Chase Strategy
The chase strategy is one of three creation systems for total preparation being used today. As
per Hamlett (2013), the pursuit procedure, or request matching methodology, sets creation to
fulfil or match the need for items. It is a proper methodology for creation circumstances with
variable interest and almost no stock. To deal with varieties popular, an organization matches
the creation rate to the request rate by recruiting and terminating workers. The chase system is
utilized generally in assistance businesses that attention on fulfilling determined need and
change the labour force in like manner. Fulfilling need can come as labour force changes that
incorporate the utilization of day work, project workers, part time employees, and extra time
pay.

Advantages
An essential benefit is the adaptability to fulfil need changes. Another benefit is keeping stock
low, opening up money to purchase different things, for example, unrefined substances or parts,
along these lines diminishing stock conveying costs that are related with holding stock in stock.
The expense of capital, warehousing, devaluation, protection, assessments, oldness, and
shrinkage are all stock conveying costs. Because of varieties in item request an organization
utilizing the pursuit system can encounter fluctuating labour force levels in light of evolving
request. The effect on the organization is expanded recruiting and preparing costs and a
lessening in worker confidence.

Conclusion
The chase strategy will assist eatery with matching creation to request by recruiting and
terminating laborers as required. The chase system is a best fit for eatery that require fabricating
adaptability and change limit on a successive premise. The significant expense of this system
is the recruiting and terminating of laborers and the related decrease in spirit.