C Shiva Charan Reddy MHR 19MBAR0648 Operations Management-Assignment 1
C Shiva Charan Reddy MHR 19MBAR0648 Operations Management-Assignment 1
C Shiva Charan Reddy MHR 19MBAR0648 Operations Management-Assignment 1
MHR
19MBAR0648
OPERATIONS MANAGEMENT- ASSIGNMENT 1
ACTIVITY 1.1:
Identify 5 GOODS and 5 SERVICES Examples of the given below table.
Ans.
5 GOODS: Manufacturing is the production of products for use or sale, using labour and
machines, tools, and chemical or biological processing or formulation. It is the essence of
secondary industry. The term may refer to a range of human activity, from handicraft to high-
tech, but is most commonly applied to industrial design, in which raw materials from primary
industry are transformed into finished goods on a large scale.
Hence these are the 5 goods and services along with their input, throughput and output.
Activity 1.3: From the given below table, measure separately a: HLF & b: HLA.
Ans.
Types of productivity:
1. Partial measure productivity
A partial productivity measure relates output to a single input, examples include labour
productivity(output per hour worked), capital productivity (output per unit of capital).
Formula: output/labour or output/capital or output/energy
Selling price of HLF= 10000*100= 10,00000
Selling price of HLA= 10000*200=20,00,000
Product 1
Standard Customized
10,00,000*20= 2,00,00,000 sales 500000* 30= 1,50,00,000 sales
2,00,00,000*10/100 = 20,00,000 profit 1,50,00,000*15/100= 22,50,000 profit
20,00,000*4/100= 80,000 forecasting error 22,50,000*8/100= 1,80,000 forecasting error
Profit-forecasting error Profit-forecasting error
= 20,00,000-80,000 = 22,50,000-1,80,000
=19,20,000 = 20,70,000
19,20,000-0 (exp) 20,70,000-10,00,000(exp)
=19,20,000 = 10,70,000
Recommendations on Product 1:
From the above case we can invest 19,20,000 for standard products as the company is famous
for its milk products .where as in customized products we got profit of 10,70,000 but
according to me, we shouldn't invest so much amount for these customized products because
by investing this much amount into new products it may also get loss in business.
Product 2
Standard Customized
20,00,000*15= 3,00,00,000 sales 12,00,000*20= 2,40,00,000 sales
3,00,00,000*10/100= 30,00,000 profit 2,40,00,000*15/100= 36,00,000 profit
3,00,000*8/100= 2,40,000 forecasting error 36,00,000*6/100= 2,16,000 forecasting error
Profit - forecasting error Profit-forecasting error
=30,00,000-2,40,000 = 36,00,,000-2,16,000
=27,60,000 = 33,84,000
27,60,000-0(exp) 33,84,000-15,00,000(exp)
=27,60,000 = 18,84,000
Recommendations on product 2:
From the above case we can invest 27,60,000 in standard products but as in customized
products 18,84,000 is a huge amount where we should not take risk by investing that huge
amount into new products which are also called customized products.
Product 3
Standard Customized
30,00,000*20= 6,00,00,000 sales 20,00,000*25=5,00,00,000 sales
6,00,00,000*10/100= 60,00,000 profit 5,00,00,000*15/100= 75,00,000 profit
60,00,000*4/100= 2,40,000 forecasting error 75,00,000*6/100= 4,50,000 forecasting error
Profit-forecasting error Profit-forecasting error
=60,00,000-2,40,000 = 75,00,000-4,50,000
=57,60,000 =70,50,000
57,60,000-0(exp) 70,50,000- 20,00,000(exp)
= 57,60,000 = 50,50,000
Recommendations on product 3:
From the above case also there is risk of investing in customised products where as investing
57,60,000 in standard products is very much safe compared to invest in standard products.