MGT613 Assignment # 2 Solution

TENTATIVE SOLUTION OF ASSIGNMENT # 2
MGT613 (PRODUCTION & OPERATIONS MANAGEMENT)
Question:
HiStars a manufacturing company deals in manufacturing computers. Marketing,
Finance and Operations are three important departments of the Company. The
functions of these departments are interrelated and can’t carry without each other in
maintaining their production process.
1: Describe the importance of each department to the other.
2: Describe why it is necessary for an Operations Manager to have the knowledge of
Marketing and Finance.
SOLUTION
For Question # 1
Organizational goals are achieved more efficiently by the concerted efforts different
departments and functions. A business organization has three basic functions: finance,
marketing, and production/operations. These three functions perform different but
related activities necessary for the operations of the organization and each makes an
important contribution. For instance, unless production and marketing work together,
marketing may promote goods and services that production cannot profitably deliver, or
production may turn out goods or services for which there is no demand. Marketing
division is the front end of any because it gathers information about customer’s
requirement, creates demand forecast for the product or service in order to plan
production. The basic function of finance is allocation of resources, so, unless finance
and production people work closely, funds for expansion or new equipment may not be
available when needed.
For Question # 2
Operations Manager needs to have knowledge of budgeting, budgets are periodically
prepared to plan financial requirements. Budgets are sometimes adjusted and
performance relative to a budget must be evaluated. Moreover, evaluation of
alternative investments in plant and equipment requires inputs from both operations
and finance people.
Operations manager needs to have the information about demand of a specific product
in the market so that it can plan for the material to be purchased and work to be
scheduled. Business organizations compete with one another in a variety of ways like
price, quality, product or service differentiation, flexibility and time to perform certain
activities, so, it is important for an operations manager to have knowledge about all of
these areas in order to know “what do the customers want” .And “how we are going to
deliver that to them”.

MGT613 Assignment # 1 Slution

SOLUTION OF ASSIGNMENT # 1
MGT613 PRODUCTION & OPERATIONS MANAGEMENT
Requirement:
Select a product of your own choice and:
1. Describe the major factors you will consider in the design strategy of
that specified product.
2. Being an Operations Manger what would be your major objective
while designing that specified product?
Solution
Ans. Q. 01
As an operations Manger I will consider the following major factors in the
design strategy of beauty soap.
· Cost:
I will emphasize on minimizing the cost of ingredients and raw material in
the process of making soap and using an easy recipe so that the cost should
not increase much.
· Quality:
Quality can not be compromised so I will focus on maintaining the quality
while keeping the cost minimum. My main focus will be that customers
should have a good feeling while using the soap, its fragrance, packing and
a good impact on skin by using the soap for a long time.
· Time-to-market:
I will ensure that the soap is readily available in the market so that
customers may find it every time when they visit to different stores to buy
it.
· Customer Satisfaction:
I will focus heavily on customer satisfaction so that I may sustain them. The
usage of the soap and its price along with quality will provide maximum
satisfaction to the customers.
· Competitive Advantage:
The formula, recipe, cost, price, and quality will make the soap a superior
one to the competitor’s product.
Ans. Q. 02
Following objectives will be considered while designing the soap:
· To satisfy the customer while making a reasonable profit
· To produce quality soap as quality is typically high on the list of
priorities in the design strategy.
· Design for Operations: I will take into account the capabilities of my
company in designing quality product.