OPERATION MANAGEMNT

FINAL PROJECT

LAHORE BUSINESS SCHOOL

Section: C

SUBMITTED BY:

SALMAN MUNAWAR (BBA-02103181)

ZAIN SHAHID BUTT (BBA-02103037)

MUHAMMAD UMAIR (BBA-020103137)

MUHAMMAD YASIR (BBA-02103150)

AYSHA HAMEED (BBA-020103182)

SONIA GULAM NABI (BBA-021030…)

Prepared for MAM. SAMRA HUSSAIN

COMPANY

THE EXORDIUM

“In the Name of Allah the compassionate the Merciful”

All the acclamation and admiration is for Almighty Allah the most

merciful, gracious and beneficent who is entire source of all the

knowledge and wisdom endowed to mankind. We offer our humblest

thank from the core of our heart to Holy Prophet Muhammad (Peace Be

Upon Him), who is forever source of guidance and knowledge for the

humanity.

“Praise to Allah, Lord of the creation, the Compassionate, the

Merciful, the King of the Judgment day! Alone.”

(AlQuran)

ACKNOWLEDGMENT

First and foremost, we are grateful to ‘ALLAH ALMIGHTY’, most beneficent and

the most merciful who made us able to complete our given project successfully.

We would also like to pay tribute to the benefactor of humanity ‘HOLYPROPHET’

(P.B.U.H) who gave us complete knowledge on every aspect and field of life.

In short of words, to express our modest gratitude and recognition on cuddly and

loveable ‘PARENTS’ who at each and every moment prays for our success. We are also

deeply thankful to our ‘TEACHER’ to have taught us from childhood to still especially

‘MAM, SHAZIA GULZAR’ who taught us ‘PSYCOLOGY’.

Thank you all, without you this would have not been possible.

TABLE OF CONTENTS

Objectives of the project--------------------------------------------------------------------------------4

Sona Feed Profile---------------------------------------------------------------------------------------4

Vision--------------------------------------------------------------------------------------------------------5

Mission-------------------------------------------------------------------------------------------------------5

Operations Strategies-------------------------------------------------------------------------------------6

Different Competitors------------------------------------------------------------------------------------6

Productivity of Sona Feed-----------------------------------------------------------------------------7

Forecasting--------------------------------------------------------------------------------------------------7

Design/layout Strategies---------------------------------------------------------------------------------8

Capacity Planning----------------------------------------------------------------------------------------9

Location Strategies--------------------------------------------------------------------------------------10

Recommendations---------------------------------------------------------------------------------------11

Executive Summary-------------------------------------------------------------------------------------12

Exhibit 1----------------------------------------------------------------------------------------------------13

Exhibit 2-----------------------------------------------------------------------------------------------------14

EXECUTIVE SUMMARY

This project is undertaken to analyze the operations of Sona Feed and then to

measure their performance in accordance with Operations Management Strategies

and Policies. For this purpose various aspects, techniques and financial tools are

used in this project. The tools used in this report are as follows:

Operation Strategies

Productivity Tools

Layout Strategies

Capacity Planning

Location Strategies

Group suggestions/recommendations for making Sona feeds operational strategies

are more effective

SONA FEED

(History):-

In 2000 Mr. Inam Started his business of Venda (Cattle Feed) from

a little Godown, he started his business at low level with a small

investment. At the time he started his business few people are familiar

with that product, people are unaware about the existence of the product

as well as the benefits of using this Venda.

First he targeted the local Dairy Farms (Local Market), and tried to

convince the people by giving some samples, with the passage of time

farmers realized the benefit of the Venda and due to this reason the

demand for Venda increased. Since 2007 he is using the traditional tools

which required a lot of effort as well as labor hours. In 2007 Mr. Inam

made some advancement in his machinery, he installed the machines

which are among the best machines made in Pakistan. As the new

machinery increased his production / output, so his existing Godown

was not enough to handle all the production output, he acquired another

place for the storage of the bags. As the demand for the poultry was

increasing day by day, the demand for chicken feed was also increased.

Mr. Inam found a great chance to capture the market of Chicken feed by

providing quality chicken feed as he did before in Cattle Feed.

The reason for the success is not only the quality product, but also the

delivery service which Mr. Inam provides to his customers. (Exhibit 2)

-:OBJECTIVES OF THE PROJECT :-

The basic purpose of this project is to understand the operations of Sona

Feed and to know about their financial as well as other operations by

applying our analytical and professional skills. This project will help the

reader to understand and analyze the Operations of Sona Feed.

MISSION STATEMENT

We are committed to producing & marketing best quality feed at lowest costs to customers who look for consistent quality feed. Unlike other feed producers in the state, we establish & maintain long term, mutually rewarding relationships with our customers.

VISION STATEMENT

To be a role model for feed production operations

-:OPERATION STRATEGIES OF SONA FEED:-

DIFFERENTIATION STRATEGY OF SONA FEED:-

They are involved in Mass Customerization because each product is produced according to the specifications of each customer. That’s why they are different then their other competitors.

Low Cost and High Quality Strategy of Sona Feed:-

Sona feed is producing Feed at low cost because of some subsidiaries by the Government of Pakistan on Electricity, Taxes.

Quick Response Strategy of Sona Feed:-

Sona Feed has an edge of quick response to their customers because they have their factory nearby forms.

Different Competitors of Sona Feed in Islamabad

Dr. Feed

Shahdab Feed

Lasani Feed

Super Feed

-:Productivity of Sona Feed:-

Productivity of Sona Feed Per Day:-

Units produced = 400bags of cattle feed per day

Labor hrs = 8 hr per day

Productivity = 400 bags per day / 8 labor hrs per day

Productivity = 50 Bags per labor-hours

Productivity of Sona Feed Per Day:-

Units produced = 400 bags of cattle feed per day

Labor = 8hrs x 9 workers = 72

Daily Consumption of Material = Rs. 200,000 for

Energy = Avg. daily Consumption 15000 / 30 = Rs. 500 daily

Misc. (Workers Refreshment etc.) = Rs. 500

Productivity = 400 bags per day / 40+200,000+500+500

Productivity = .0015 bag per rupee

Forecasting:-

Sona feed have no forecasting technique. They Produce Venda on Demand of their customers.

-:DESIGN/LAYOUT STRATEGIES:-

-:WAREHOUSING AND STORAGE LAYOUT:-

Warehouse(Exhibit 1)

ENTRY / EXIT

PLANT 1

PLANT 2

PLANT 3

-:CAPACITY PLANNING:-

-:Design Capacity of Lasani Feed:-

*Machinery is designed to produce 60 bags of per hour

Input = 1 shift, 7 hrs and 7 days

Design to produce = 60 bags per hr

Design Capacity = (1 day x 1shift x 7 hrs per day) x (60 bags per hr)

Design Capacity = 7 hrs x 60 bags per hr

Design Capacity of Lasani Feed = 420 Bags per day

-:Utilization of Lasani Feed:-

Actual output per week = 300 bags

Design Capacity = 420

Utilization = 300 / 420

Utilization = .7143 x 100 = 71.43%

-:Efficiency of Lasani Feed:-

Actual output = 300 bags per day

Effective capacity = 380 bags per day

Efficiency = 300 / 380

Efficiency = .7895 x 100 = 78.95%

-:LOCATION STRATEGIES:-

Location:-

“A place where business or factory physically exist”

-:Location of Lasani Feed:-

Lasani Feed is located in Poultry, Dairy and Vegetable Scheme Chak Shehzad, Islamabad.

-:Main Distribution Areas Of Lasani Feed:-

Lasani Feed distributes Feed in different areas. Following are the main distribution areas of Lasani Feed.

Local Forms Chakwal Peshawar Gujarat Talagang

RECOMMENDATIONS:-

Currently the machines used by Lasani Feed is no doubt one of the best machines which are being used in Pakistan and is producing a good quality of products but he still can improve his production by importing a quality machines that can have unique features which are not available in the machines in use. By using imported machines he can further reduces his labor cost as well as energy and labor hours.

Proper training facility should be provided to labor.

The company must keep safety measures for its Labor Staff as well as Products.

In order to develop business Lasani Feed, must have well equipped business premises as well as trained Labor.

Company is enjoying good market reputation even though the name of the company is not printed on the sacks (Bags), The company can capture a major part of market if they have proper means of communication and advertisement.