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. Thats 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:-

ENTRY / EXIT

PLANT 1

PLANT 2

PLANT 3

Warehouse
(Exhibit 1)

-: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.