OPERATION MANAGEMENT

ASSINGNMENT 1

1. ASIAN PAINTS (MANUFACTURING ORGANIZATION)

SAILENT ASPECTS
A) PRODUCTS OFFERED
Asian Paint manufactures wide range of paints for Decorative and Industrial use. It has a very
strong Product line, Range and Depth.
Product line is a group of related products under a single brand sold by the company. Various
Product line of Asian Paints includes Interior walls, Exterior walls, Nilaya, Wood finishes,
Metal finishes, Waterproofing Solutions, Professional Range, Adhesives and various Painting
tools and implements.
Product Range is a set of variations on a specific product made to appeal to different market
segments. Product range of Asian Paints includes Special effects paints, plain effects paints,
Distemper, Textured Finishes, Plain Finishes, Design for exteriors, wall coverings and stickers,
paints for furniture floor, doors and windows, exteriors, ancillaries, Enamel and Epoxy,
Undercoats and all waterproofing products.
Product depth is the amount of sub products offered by a business within a particular line of
products. It includes Royale play, Royale, Kids world décor, Stencils for homes, Apcolite
emulsion, Tractor emulsion, Tractor distempers and Interior wall Putty.
B) ISSUES FACED
The prices of paints are very much dependent on raw materials and any fluctuations in the price
of raw materials will eat up the margin of the company. Nearly 30% of the 300 raw materials
are petroleum-based derivatives. So, any change in crude oil prices will lead to change in the
prices of raw materials. The demand of decorative paints is cyclical in nature i.e. it increases
for a period, then decreases and after certain period of time it again increases thus showing
cyclical pattern. The demand is influenced by monsoon also. The import policies play a very
significant role in determining the prices of paints because around 30% of the raw materials
has to be imported from foreign countries. So, any change in import tax regime will have an
impact on the costing.
2. NIRULA’S (SERVICE ORGSNIZATION)
SAILENT ASPECTS
A) PRODUCTS OFFERED
Nirula’s have all together a different product differentiation. Nirula’s have categorized its
products in different levels of providing solutions to its customers like Core benefits for hunger
solution, Basics which contains choice of Desi and Western foods, Augmented foods and
Frozen foods.
Nirula’s Product line includes Family style Restaurants, Hotels, Potpourri, Pegasus bars, Ice
cream Kiosks and Pastry shops.

B) ISSUES FACED
In the fast food industry, profit margins are slim and volume is everything, meaning workers
are pressured to kill more animals in less time. In efforts to make the fast food industry more
profitable, animals are fed hormones that increase growth, milk, and egg production which can
lead to painful inflammation of the udder known as mastitis, as well as crippling and
debilitating conditions for poultry. Use of plastics for packaging, increasing carbon footprints,
transportation and water contamination are the major issues faced by the fast food industry.

Differences between the two in terms of operations:

1. The key difference between service firms and manufacturers is the tangibility of their output.
The output of a service firm, in our case Nirula’s, is intangible. Manufacturers produce physical
goods that customers can see and touch.
2. Service firms, unlike manufacturers, do not hold inventory; they create a service when a
client requires it. Manufacturers produce goods for stock, with inventory levels aligned to
forecasts of market demand.
3. A service firm recruits’ people with specific knowledge and skills in the service disciplines
that it offers. Service delivery is labor intensive and cannot be easily automated. Manufacturers
can automate many of their production processes to reduce their labor requirements.
2. ENVIROMENTAL CONCERN –
ASIAN PAINTS
The majority of paints manufactured in India contain a large amount of lead, mercury and
chromium. These elements are very hazardous in nature and can pose a threat to health of
human beings. Now the policies are becoming very strict and thus companies are required to
come up with newer manufacturing processes so as to produce paints with a low amount of
VOC (volatile organic compound) and minimal aromatic content. Also, the content of lead,
chromium and mercury should be very less thereby making the paint eco safe.
NIRULA’S
Fast food places use a heck of a lot of packaging. From the wrappers and straws to the boxes
and bags, fast food packaging counts for an estimated 40 percent of all litter (including drinks,
chips, candy, and other snacks) with Styrofoam being the most common food waste. What’s
more, Styrofoam takes an unbelievable 900 years to breakdown in landfill.
Fast food chains are the highest contributors of Carbon footprints in the environment. The
intensive resources required to make just a standard cheeseburger, from growing the wheat to
make the buns to feeding the cattle, and eventually their slaughter, and even the energy required
to pickle the cucumbers, the resulting consumption is phenomenal converting to CO2 emissions
of somewhere between 1 – 3.5 kg.
 Ready meals and other prepared food are equally to blame for damaging our precious planet.
Distributing trucks add to the pollution, emissions, and congestion, all of which contribute to
climate change. Reports suggest that ordering online and having groceries delivered to your
door can actually cut carbon costs, but an even better idea is to buy locally and always car share
or walk when possible.
Due to the pathogens, hormones, drugs, and fertilizers that are used to produce fast food,
seeping into our water supplies, water quality has suffered dramatically. Outbreaks of
waterborne illness including E. Coli, marine life dead zones, and numerous other hazards can
all be contributed to fast food.
3. Impact of growing customer expectations on organization and their operations:
Customers seek for reasonable prices; the company acknowledges this demand and start using
different techniques to fulfil it as per required. Paints contain a large amount of lead, mercury
and chromium. These elements are very hazardous in nature and can pose a threat to health of
human beings. The chemicals in these products are inhaled into the lungs, absorbed into the
blood stream, and enter the brain. When the chemicals enter the brain, the user quickly feels
“high” but may also develop toxicities such as muscle weakness, violent behavior, seizures,
and loss of consciousness. These are some of the repercussions of fast growing customer
expectations on organizations and their operations.

ASSIGNMENT-2

How do the two airlines differ in their objectives and strategies?

Jet Airways is a full service carrier. Spice Jet on the other hand is a Low Cost carrier with over
19% of market share in Indian domestic market which runs on low cost model. There are lot
of differences in how Jet Airways and Spice Jet currently function.
 Jet Airways has a big presence in the international sector. Spice Jet on the other hand has a
great domestic presence and it also has a strong foothold in the Tier 2 cities where it flies the
ATR aircrafts. It flies to few limited international destinations like Dubai, Kabul etc.
 Due to its code sharing agreements, Jet Airways draws a lot of passengers. Apart from being
an Etihad Airways partner, Jet Airways also has a code sharing agreement with KLM, Air
France, Delta, Kenya Airways, etc. This might be a great strategy for Jet Airways going
forward which could ensure a good traffic flow into its domestic and international sectors
through code share. Jet is also not part of any alliance which gives it a better flexibility in
forming code sharing agreements. Spice Jet on the other hand being a relatively small player
has to depend on its own network and currently doesn't have code sharing agreements.
In terms of service, Jet airways is considered the best airline while Spice Jet is not.

Why and how are the in-flight services different from each other?

Following are the various parameters on which the in-flight services of Spice Jet and Jet
Airways can be differentiated-
1. Economy Class
Spice Jet provides the standard Economy class services that includes a comfortable 3x3
seating arrangement and a limited in-flight cuisine menu. The Jet Airways provides the same
services with the same 3x3 seating arrangement with a wider variety in-flight cuisine known
as Jet Bistro. Moreover, Spice Jet doesn't include free meals on their ticket price, whereas jet
airways does.

2. First Class
Spice Jet typically focuses on the low cost carrier services model of ‘Economy class only
seating’. However, on August 15, 2014, SpiceMax was introduced which provided premium
services in 2x2 seating arrangement like
 Best in class legroom
 Personal space to work or relax
 Priority check in at dedicated SpiceMax counters at major airports

In Jet Airways, in addition to what Spice Jet provides, additional services are provided

 Private Suite – Various luxurious services like Sliding doors, private wardrobe,
night sky lighting etc. with the same 2x2 seating arrangement is provided.
 Cuisine – Personalised five course meal option is provided with a wide
collection which also includes a wide collection of alcohol products like
‘Bollinger La Grande Anne’ to buy from.
 Entertainment – 0.58m flat screen TV with Bose noise cancelling headphones
are provided for entertainment.

3. In-flight entertainment
The In-flight entertainment of Spice Jet and Jet Airways share many common grounds
with the Jet Airways providing extra benefits in the form of content or services.
Both Spice Jet and Jet Airways provide in-flight entertainment service which include
latest content in the popular culture covering sections like Watch, Eat, Play, Read and
Explore in Spice Jet and includes a wide range of Indian, Hollywood, regional and
international movies, TV shorts, video games and music. In both the conditions a
compatible device is required to avail the service. However, in Jet Airways an
additional screen is also provided in front of the seats to avail the services in
International flights. Another similarity is the availability of magazines in both the
airlines however the roster available is wider in Jet Airways.
A unique service that is available in Jet Airways is the availability of Jet boutique which
offers a wide range of in-fight duty free service which includes categories like
Fragrance, cosmetics, watches, gadgets, jewellery, liquor etc.

These differences noted in the above mentioned points are because of the fact that Spice Jet on
the fundamental level aims at serving the economy class and every step taken by the company
is to serve the same purpose. However Jet Airways doesn’t focus on the economy class, rather
it works on providing the best possible service. This results in reduced focus in cost cutting and
increased efforts in quality provision.

What effect has Spice Jet on airline sector and other airlines?

Fuelled by a slew of discount offers and in spite of an increasing financial burden, low-cost
carrier (LCC) Spice Jet beat Jet Airways to become the second-largest domestic airline. Its
share of the market in the month stood at 20.9 per cent, compared with the Jet Airways-JetLite
combine's 19.6 per cent. This resulted in an increase in shares of Spice Jet as compared to other
airlines, which in turn raised the profit margins of Spice Jet. The market share of
leader IndiGo also declined marginally to 30.7 per cent from 31.6 per cent. The share of GoAir,
another LCC, also saw a slight decline, from 10.1 per cent to 9.2 per cent.

In occupancy, Spice Jet's 79.4 per cent (against 67.9 per cent in July last year) was at least 10
percentage points higher than those of GoAir and IndiGo. This increase in loads and share is
the result of Spice Jet’s new network, improved branding and product, and most importantly,
its dynamic pricing and revenue management approach.

ASSIGNMENT - 3

MARUTI and BMW

1. How are the strategies of the two companies different?

 BMW

BMW’s origins can be traced back to three separate German companies: Rapp
Motorenwerke, Bayerische Flugzeugwerke, and Automobilwerk Eisenach. In April
1917, following the departure of the founder Karl Friedrich Rapp, the company was
renamed Bayerische Motoren Werke (BMW). In 2016 BMW was the 14 th largest
automotive manufacturer in the world with 2,359,756 vehicles sold. BMW has also
ranked among the top automotive manufacturers for customer satisfaction and this
due to the efficient operations strategy used by the company to provide vehicles
with top notch quality.

Strategies of BMW:

 BMW hires high end customers for its products all over the world.
 The after sales service of BMW is top notch.
 BMW provides its customers with many options to modify the cars itself,
according to consumer preferences and can change it anytime until 5 days
before the delivery of the vehicle.
 The BMW Group is pressing ahead with digitalization of its production system
in the following technology clusters:
 Smart data analytics
 Smart logistics
 Innovative automation
  Additive manufacturing.

 Maruti Suzuki

Maruti Suzuki India Limited is a leading manufacturer of passenger vehicles in India.

Over three decades, Maruti Suzuki has won the hearts of customers through high quality
products and services. Today due to innovative marketing strategies Maruti Suzuki
India Limited has become the leading car manufacturers in India. With an object to face
competition, Maruti Suzuki started restructuring exercise. As a part of strategy the
company focused on improving its operational efficiency by upgrading manufacturing
using innovative manufacturing techniques, increasing capacity, using information
technology in manufacturing, continuous eye on launching of new and innovative
products at regular intervals along with venturing into other related businesses like car
finance, insurance.

Strategies of Maruti Suzuki:

 The company has adopted the Japanese System, JIT to achieve higher
operational efficiencies and reduce inventory carrying cost.
 Developing new designs and models of car which are fuel efficient.
 Company has installed many noise curtains in its facilities, creating enclosure
for high noise generation equipment and hence providing safe working
condition to its employees.
 Company is reusing the waste gases, generated during power generation, in its
manufacturing process.
 Prompt service and customer satisfaction.

2. Which segment of the customers do they cater to?

BMW caters to the customers of the luxury segment, because they are the people for
whom BMW will be affordable and moreover, they will appreciate the build, whereas
Maruti Suzuki caters to the mass market segment where volumes matter and the
customer is price sensitive. Maruti aims to provide a balanced approach with just the
basic amenities to be provided without being obsolete at a reasonable price to serve to
the larger set of customers.

3. Why does BMW have different brands whereas Maruti operates under one
Brand?
BMW has various brands under the domain of BMW group like Mini cooper, Rolls
Royce, BMW motorad because they cater to different customer segments. For instance
Rolls Royce tends to cater the higher luxurious segment, where the consumer seeks for
perfection and self-customization. In case of Maruti, it only caters to the mass market
segment so doesn’t require different brands until it enters another segment. Moreover,
it focuses on low segment group so that the customer can afford it and they won’t get
confused with the change in brand every time.
4. Discuss the sustainable operations perspectives of these two companies?
BMW has introduced LED lighting in the showrooms, washing water recycling, heat
pumps and wind turbines, BMW dealerships use less and less resources and step up the
share of renewable energies in business operations. BMW is also at the forefront of
electric vehicles as they have come to the realization that electric vehicles will be the
future of automobiles, so it can be inferred that they will be able to sustain the brand in
near future.

Maruti has taken certain initiatives such as dry wash systems, automated oil
management system, paint less dent repair system, automatic car washing system,
reduction in paper consumption in service operations. Maruti as a company cannot
invest heavily on new technology as that will hike the prices of their vehicles and will
make them unaffordable for the masses thus maruti has partnered with Toyota for
platform sharing and hybrid and electric car development. This way maruti will
continue to be sustainable in the foreseeable future.