Task 1

Implementing operations management concept

on textile finishing organization (Fine Printers)
Abstract:
Application of Operations Management concepts is a chance to improve the product quality,
and reduce product cost and shortens the response time. This case study analyzes operations
(production process) of an organization (Fine Printers) from textile finishing sector. Weathers
influence, Labor management, response time and high production cost are the major problems.
Objectives of this case study are to examine the operations (production process) of the
organization (Fine Printers). To establish a base for understanding the current and future aspects
involved in the operations (production process) of the organization (Fine Printers). To improve
the product quality, enhance production capacity, reduce production cost and shortens the
response time of the organization.

Introduction:
In the market where competition is high and all the manufacturers are striving to reduce
the product cost and improves quality of product and shortens the production or response time.
Operations Management concept has become a revolutionary management tool. This views the
production process as important factor and importance of material, quality, capacity, costs
focused. Textile sector is the most important in the economy of Pakistan contributing 50% in
exports earnings and 39% of the production labor force. Pakistan is the emerging major supplier
of textile product with 5% share. In the value addition chain fabric processing is the most
important. This stage remains week despite of investment in this sector. Pakistan textile
finishing industry is almost 660 units both independent and integrated and many other small
units. In some small factories table printing is done by manually and these factories are
assemblage (work on order).

Fine Printers a privately owned business. Three persons were the owners of this business. But
on 20th of October one partner withdrew his share and now two persons own this partnership
business. Now the organization is suffering from changes process in administration and working
style. Fine Printers was engaged in business for four years from 2010. Fine printers use Manual
table printing process on printing tables by hand. It have ten pairs of printing tables in open
area which are used for printing, two directors who are also the owners of this business, one
supervisor, one color master with his assistant and sixty two workers. Workers are somehow
skilled in respective field. Organization uses no advance and reward policy and Color master,
Supervisor are working on salary and other workers are working on daily wages system. Fine
printers work is also dependent on the orders received and requirements of the customers. It has
three thousand meter printing capacity in a clear day with ideal design. They do not have
standards and equipment to check the quality of the materials and final product, they depends
on personal judgments. Business opportunity is to start calendar standard. They focus on quality
primarily.
The purpose of the visit is to understand the Fine Printers operations. Primary interviews
conducted and try to study the fabric printing process used by the Fine printers to identify the
problems faced by them in this production process. Process includes printing on tables in open
area manually spread the cloth and print the design by pressing design frame (Dye) after
printing fabric is steamed and then washed by hand and packed after completing these value
addition stages.

Questions Discussed:
Following are discussed (in questions) with the directors and supervisor of Fine printers

About Fine printers history and in general?

What are Issues faced in completing orders?

What is the production process of fine printers?

What are the problems faced in the process?

What is the important factor that highly affects the production capacity?

How they can enhance their production capacity?

Problems:
Fine printers are facing following process, environmental and managerial problems.

Major problem is the weathers influence on the production capacity at very high level
in manual table printing due to an open area. In winter season or bad weather process of
printing is stopped or continued for very less time that cause increase in cost, wastage

and less production.

Mis fitting and blockage of Dye cause misprint, double print, reduction and saturation of

colors.
No Print table to check the printing quality. Only check quality of output on personal
judgment. Overlapping is due to loose fitting of fabric sometimes costs customers

dissatisfaction.
Time required for exposing a Dye and color matching also cause low production level.
Labor management is also a problem for fine printers. Less skilled labor cause increase
in costs as it is totally labor intensive work.

Objectives:
The aim of this case is to apply the operations management concepts for improvement of the
propose area of the organization. For this following will be done
1. To examine the operations (production process) of the organization (Fine Printers).
2. To establish a base for understanding the current and future aspects involved in the
operations (production process) of the organization (Fine Printers).
3. To improve the product quality, enhance production capacity, reduce production cost
and shortens the response time of the organization.

Literature Review:
This research must be built on existing theory and reviewed the theory against the literature
which already exists. This issue has not studied before is not a valid because there is always
some literature to refer. This theory review involves asking what is similar, what is different and
why (Eisenhardt, 1989). To make findings more confident it is very important to address the

literature. That literature should conflict with findings. Effective use of literature increases the
quality and validity of the findings. Environmental factors affect table printing on large scale.
Heat and moisture transfer in textile materials (Li etal., 2002; and Zhu 2003). Test the role case
study emphasized social enablers to high success rate. System design and skilled employees,
better communication, employees motivation etc. cause reducing costs and increase success rate
(Sarker and Lee). This is the field where consumer demanding more and more comfort but in
business increasing problems like employees resistance and implementation costs cause
hesitance to organizations (Saeed, Amir 2013). At present, the dyes are mainly aromatic and
heterocyclic compounds (Shaolan Ding et al.,2010) . The structure is stable, resulting in greater
difficulty to degrade the printing and dyeing waste (Shaolan Ding et al.,2010).

Research Methodology:
A theory Building case study Research Design
Objective of the case study is not just to explain about the existing power and problem areas in
operations of the organization but also make a proper research framework to describe the
relation between Operations Management (Production Process). For this we had selected case
theory building research design for exploration.
Action Research for Research Relevance
In this research we were involved with the management of the organization (Fine Printers) as
consultants. And fulfill the role for four months in the last quarter of 2014 and first month of
2015.

Measures to ensure Reliability

We took many measures to insure reliability for this research. To accomplish the goal of having
different perspective direct observation and interview the multiple members of the organization
(Fine Printers) are conducted.
Theory Driven case Selection
To understand more about the operations management (OM) two organizations were selected
one where success rate is low (Fine Printers) and second where success rate is high (Gill

Printers). Many Variables like year of starting, investment and size of organization, industry,
etc. that are not of primary interest are identical. Within a single organization we have sufficient
data relevant to both stages high and low success rate.
Research Questions
While we were asking questions from relevant management personals and analyzing the data;
following points were kept in mind.

Operations management (production process) of the organization (Fine printers) and

its present and future aspects.

How operations management (OM) can be used for improvement of the propose area
of the organization (Fine Printers) effectively.

Serial
No
1
2
3
4
5
6

Research questions

Methods

What is the production process of Question

fine printers
Who are your suppliers?
Question
What are Issues faced in completing
orders?
What are the problems faced in
production process?
production meets the standard with
competitor (Gill Printers)
What is the important factor that
highly affects the production
capacity?
How they can enhance their
production capacity?

Question

Purpose
Theory
building
Theory
building
Theory
building

Question

Theory
building

Direct observation

Theory
building

Direct
observation,
Question

Theory
building

Question,
Observation

Theory
building

Case Data Collection

We visited the organization (Fine Printers) and collect data by observing directly the operations
Management (production process) and conducted interviews from Directors (Ahmad Ali, Shah)
and Supervisor (Salman). The purpose of interview from more than two persons is to find
multiple data on a question.

Case Data Type

Data is the information which is translated in to convenient form for moving a process. There
are two types of data one is primary which is collected by investigator himself for a specific
purpose and other is secondary which is collected by other for some other purpose. In this case
we used both (primary and secondary) type of data.
Case Data Analysis
This section describes how we implemented the operations management concepts to the case.
We visited the organization for understanding operations management and found data about the
production process of the organization. Not only the data of concerning organization (Fine
Printers) but also of their competitor organization (Gill Printers). We seek major differences
among them in the perspective of operations Management like production process, raw
material, labor, infrastructure, communication chain, systems design, finance, recycling and
quality. We found many differences. Our parent organization (Fine printers) have low success
rate. Production Process: is the manual printing by spreading fabric on printing tables in open
area. After drying colors fabric is steamed and washed by hand then packed. Factors like
Weather, materials, Design, labor and production capacity affects the production. Production
level can be enhanced by enhancing production hours especially in winters. For this weathers
influence can be overcome to a limit and setting standards. There is no standard of quality while
competitor has measures to reduce the weather influence, settled standards and equipment to
check the quality.

Results and Discussions:

The objective of this case study is not only to identify the problems in production process of the
organization (Fine Printers). But also provide solutions to the problems to improve the
efficiency. We are very careful while presenting our findings as our case is limited.
We found weathers influence is the major problem. In winter season or bad weather process of
printing is stopped or continued for very less time that cause increase in cost, wastage and less
production. Rooms, shelters or barracks can cover the area to reduce the influence of weather.
Barracks or rooms are very costly to cover large area. As they have limited investment and very
short cost flexibility. We recommend them to make gradual changes to overcome the problems
and increase success rate. They should plan shelters for covering the printing area. This will

cause increase in their production time and capacity in winter they can use throw of hot air on
tables.
Less skilled labor cause increase in costs as it is totally labor intensive work. Give training to
the workers because there is shortage of the workers in field and also costs of hiring are high.
Trained workers should be hired in future and rewarded properly to motivate them and
overcome management problem. Misfit ting and blockage of Dye cause misprint, double print,
reduction and saturation of colors, overlapping is due to loose fitting of fabric sometimes costs
customers dissatisfaction, time required for exposing a Dye and color matching also cause low
production level. Skilled labor will minimize the wastage due to double printing or misprinting
and handle above said problems. No Print table to check the printing quality. Only check quality
of output on personal judgment. Proper quality standards should be set for material process and
outputs. Tests should be made to check the quality as per they are according to defined
standards. If there is any problem regarding those measures should be taken to resolve the
problem. Conductor (to check the quality of binders) and Pick checker (to check the quality of
the color and its thickness) should be purchased. Recycling of colors is possible by using
recycling methods. They convert colors into black if color is wasted which caused minimizing
the wastage. Quality editor should be used to check the printing quality and adjust the standard
of printing. And color mixing and dye frame etc. should be proper and cause reducing wastage
and costs. This minimizes the wastage due to double printing or misprinting. This equipment is
low in costs but have very positive impact to satisfy the customers and enhance the efficiency of
the organization (Fine Printers) effectively.
Q1

While operations management is focused on the production of goods and/or services in an

organization, its importance to the overall organization cannot be underestimated. When an
organization's operations are properly managed, the functions of all other departments are
smooth, and when an organization's operations are managed improperly, all other departments
suffer.
A human resources department is able to make good predictions on the need for staff, to
develop good job descriptions, and to recruit and train more easily when operations are run

well. Jobs are easier to fill, and turnover remains lower. If an operations are not run well, the
consequences for human resources are not good. For example, the human resources people
cannot develop good job descriptions and requirements for the production department, find it
more difficult to recruit and train, and face higher turnover, which is costly to any organization.
An accounting department that is supporting a smooth operation can pay materials and supplies
bills promptly since a well-run operation plans ahead. Payroll is easy to handle, with
predictable costs. But if the operation is run poorly, predictable costs such as these are difficult
to ascertain, making it difficult for the accounting department to do its job well.
A finance department, which is charged with finding capital, either through debt or equity
financing, can raise money far more easily with a smooth-running, successful operations
division, being able to point to high productivity, trimming of costs, and good scheduling to
meet demand. On the other hand, if the finance department can only show a record of
inefficiencies, too much or too little inventory, and uneven productivity, it is difficult to raise
capital.
The marketing division's success is reliant on successful operations as well. It must have a
successful and on-time product or service to market. It must have a product or service that
works and that is being produced in appropriate numbers. If it does not, if there is a shoddy
product or a product for which production is behind, the best marketing in the world is of little
use.
The legal division's ability to support operations is dependent upon a well-managed operation,
too. A well-made product does not lead to liability claims. When supplies and materials are
planned for, there is less likelihood of contract disputes with suppliers. When products are
produced on-time, there is less likelihood of contract disputes with purchaser.
Q2
Operations management focuses on the tools and techniques a manufacturing firm uses to
ensure a smooth, effective production process. If the company provides services, operations
administration indicates to top leadership the factors that can prop up customer loyalty and
sales. The discipline offers various benefits, including better profitability tracking,
manufacturing expertise and regulatory compliance.

Profitability Management

Sound operations management causes corporate leadership to challenge conventional

wisdom or employees sense of what's operationally correct. Simply put, senior executives rely
on this activity to question existing processes and ask personnel to come up with new ideas to
do business and increase sales. In fact, companies with experienced, competent operations
managers are generally adept at monitoring their revenues and expenses. They do so by delving
into corporate statements of income, profitability trends and budget reports, to name a few.
Competitive Advantage

Businesses adequately manage their operations to get a handle on key internal and
external factors. Internal factors include operating policies, intellectual capital and the average
attrition rate. This reflects the number of employees leaving as a result of resignations,
retirements and deaths. Forced workforce reductions, such as terminations, do not count as
attrition-rate components. Intellectual capital represents various abilities, expertise and
knowledge that a firm has gathered over time. External factors that operations managers heed
include the state of the economy and rivals strategies. By helping a firm understand its internal
and external conditions, operations management improves the companys competitive standing.
This is because the business gets a better understanding of its operating environment and can
adapt its tactics more effectively to changing conditions. Marketing specialists use the SWOT
concept -- strengths, weaknesses, opportunities, threats -- to describe this analytical process.
Manufacturing Edge
Operations management allows a manufacturing firm to change or improve the way it produces
goods, as well as how it stores items such as raw materials, work-in process merchandise and
completely finished products. This important benefit helps the manufacturer prevent a
deterioration in debt affordability, which may happen if the firm incurs losses and cannot repay
its existing liabilities. Manufacturing tools used in operations management include computeraided production software, defect-tracking programs, warehouse management software and
process re-engineering applications.
Regulatory Compliance
By studiously analyzing operating activities, corporate management waves goodbye to the days
of hefty government fines and adverse regulatory decisions. Department heads and segment
chiefs set adequate internal controls to make sure rank-and-file personnel perform tasks in
accordance with the law. For example, adequate operations management helps improve
workplace safety, a key criterion that the U.S. Occupational Safety and Health Administration
watches closely.
Q3

The process of business planning is made up of several steps. A strategic plan is used to outline
company objectives and to identify the methods in which those objectives can be reached. An
operational plan is the comprehensive way in which each department or division will use its
resources to achieve company goals. Strong links between the strategic plan and the operational
plan are needed to allow the company to operate efficiently.
Budgets
The primary financial link between a strategic plan and an operational plan is the establishment
of a departmental budget. The strategic plan gives a budget estimate that is based on projected
revenue. The operational plan gives a more accurate number that can be used to gauge the
success of a strategic plan. If the operational budget is more than the strategic plan provides for,
then the company needs to work to bring the two numbers more in line.
Resource Allocation
An operational plan is used to determine job duties and the proper use of company resources,
such as equipment and facilities. A strategic plan outlines what kind of resource allocation is
needed to achieve the goals of the plan. The operational and strategic plan are then put side-byside to determine the most effective allocation of resources for each department while pursuing
the objectives of a strategic plan.
Performance Management
Operational plans base their needs on performance management numbers. For example, if the
manufacturing department is expected to produce 20 units an hour, but the current personnel
only allows for 15 units an hour, then that performance management number dictates the need
for more personnel. Those performance management numbers are set by the projections in the
company strategic plans.
Details
One essential link between the strategic plan and the operational plan is that the operational plan
provides the details necessary to execute the strategic plan. For example, if part of the strategic
plan involves building a new distribution center, then the operational plan would go into the
details of getting contractors, finding land, obtaining permits for doing business in that state and
populating the new facility with employees.

Task 2
Q1
1. Sort (Seiri): Keep only necessary items in the workplace. Divide items in the workplace in 3
categories; retain, return and rid.
2. Set in Order (Seiton): Arrange items to promote efficient workflow. It includes organizing,
arranging and storing material, equipment and information.

3. Shine (Seiso): Clean the work area so that it is neat and tidy and that too on a daily basis. Try
establishing preventative measures to produce ongoing cleanliness.
4. Standardize (Seiketsu): Set standards for a consistently organized workplace. Maintain and make
the top 3S habitual. 5S becomes a part of the regular work routine.
5. Systematize (Shitsuke): Maintain and review standards.

Ultimately, it is the organization and the people who work for an organization take care of it and
maintain proper discipline.

Its advantages include:

1. It increases the safety and reduces pollution.
2. It motivates the employer to work, increasing productivity and hence profits.

Disadvantages include:
1. In case there is lack of management support or people are not bringing up their problems in the
workplace, 5S might create an issue.
2. There should be proper understanding of what 5S can accomplish. Resistance to change is also a
problem.

Q2

Operations performance objectives

This first point made in this section is that operations objectives are very broad. Operations
management has an impact on the five broad categories of stakeholders in any organisation.
Stakeholders is a broad term but is generally used to mean anybody who could have an
interest in, or is affected by, the operation. The five groups are:

Customers - These are the most obvious people who will be affected by any business.
What the chapter goes on to call the five operations performance objectives apply
primarily to this group of people.
Suppliers - Operations can have a major impact on suppliers, both on how they prosper
themselves, and on how effective they are at supplying the operation.
Shareholders - Clearly, the better an operation is at producing goods and services, the
more likely the whole business is to prosper and shareholders will be one of the major
beneficiaries of this.
Employees - Similarly, employees will be generally better off if the company is
prosperous; if only because they are more likely to be employed in the future. However
operations responsibilities to employees go far beyond this. It includes the general
working conditions which are determined by the way the operation has been designed.
Society - Although often having no direct economic connection with the company,
individuals and groups in society at large can be impacted by the way its operations
managers behave. The most obvious example is in the environmental responsibility
exhibited by operations managers.

The five performance objectives

quality, speed, dependability, flexibility, and cost.
Quality
Quality is placed first in our list of performance objectives because many authorities believe it
to be the most important. Certainly more has been written about it than almost any other
operations performance objective over the last twenty years. As far as this introduction to the
topic is concerned, quality is discussed largely in terms of it meaning 'conformance'. That is,
the most basic definition of quality is that a product or service is as it is supposed to be. In
other words, it conforms to its specifications.
There are two important points to remember when reading on quality as a performance
objective.

The external affect of good quality within in operations is that the customers who
'consume' the operations products and services will have less (or nothing) to complain
about. And if they have nothing to complain about they will (presumably) be happy with
their products and services and are more likely to consume them again. This brings in
more revenue for the company (or clients satisfaction in a not-for-profit organisation.
Inside the operation quality has a different affect. If conformance quality is high in all the
operations processes and activities very few mistakes will be being made. This
generally means that cost is saved, dependability increases and speed of response
increases. This is because, if an operation is continually correcting mistakes, it finds it
difficult to respond quickly to customers requests.

and services

Speed
Speed is a shorthand way of saying 'Speed of response'. It means the time between an
external or internal customer requesting a product or service, and them getting it. Again, there
are internal and external affects

Externally speed is important because it helps to respond quickly to customers. Again,

this is usually viewed positively by customers who will be more likely to return with more
business. Sometimes also it is possible to charge higher prices when service is fast.
The postal service in most countries and most transportation and delivery services
charge more for faster delivery, for example.

The internal affects of speed have much to do with cost reduction. There are two areas
where speed reduces cost (reducing inventories and reducing risks). The examples
used are from manufacturing but the same thing applies to service operations. Usually,
faster throughput of information (or customers) will mean reduced costs. So, for
example, processing passengers quickly through the terminal gate at an airport can
reduce the turn round time of the aircraft, thereby increasing its utilisation. What is not
stressed is the affect the fast throughput can have on dependability. This is best thought
of the other way round, 'how is it possible to be on time when the speed of internal
throughput within an operation is slow?' When materials, or information, or customers
'hangs around' in a system for long periods (slow throughput speed) there is more
chance of them getting lost or damaged with a knock-on effect on dependability. See the
figure below

and services
Dependability
Dependability means 'being on time'. In other words, customers receive their products or
services on time. In practice, although this definition sounds simple, it can be difficult to
measure. What exactly is on time? Is it when the customer needed delivery of the product or
service? Is it when they expected delivery? Is it when they were promised delivery? Is it when
they were promised delivery the second time after it failed to be delivered the first time? Again,
it has external and internal affects.

Externally (no matter how it is defined) dependability is generally regarded by

customers as a good thing. Certainly being late with delivery of goods and services can
be a considerable irritation to customers. Especially with business customers,
dependability is a particularly important criterion used to determine whether suppliers
have their contracts renewed. So, again, the external affects of this performance
objective are to increase the chances of customers returning with more business.
Internally dependability has an affect on cost. The chapter identifies three ways in which
costs are affected - by saving time (and therefore money), by saving money directly,
and by giving an organisation the stability which allows it to improve its efficiencies.
What the chapter does not stress is that highly dependable systems can help increase
speed performance. Once more, think about it the other way round -'how can an
operation which is not dependable ever promise its customers fast response?" See the
figure below.

and services

Flexibility
This is a more complex objective because we use the word 'flexibility' to mean so many
different things. The important point to remember is that flexibility always means 'being able to
change the operation in some way'. Some of the different types of flexibility (product/service
flexibility, mix flexibility, volume flexibility, and delivery flexibility). It is important to understand
the difference between these different types of flexibility, but it is more important to understand
the affect flexibility can have on the operation.

Externally the different types of flexibility allow an operation to fit its products and
services to its customers in some way. Mix flexibility allows an operation to produce a
wide variety of products and services for its customers to choose from. Product/service
flexibility allows it develop new products and services incorporating new ideas which
customers may find attractive. Volume and delivery flexibility allow the operation to
adjust its output levels and its delivery procedures in order to cope with unexpected
changes in how many products and services customers want, or when they want them,
or where they want them.

The internal affects associated with this performance objective. The three most
important are namely flexibility speeds up response, flexibility saves time (and therefore
money), and flexibility helps maintain dependability. See the figure beiow.

Cost

More innovation Cope with volume fluctuations

There are two important points here. The first is that the cost structure of different organizations
can vary greatly. Second, and most importantly, the other four performance objectives all
contribute, internally, to reducing cost. This has been one of the major revelations within
operations management over the last twenty years.
"If managed properly, high quality, high speed, high dependability and high flexibility can not
only bring their own external rewards, they can also save the operation cost."
Lower prices (or higher profits)
Faster customer
response

Error-free products and services

Task 3

n-time deliveries

Wider variety
More customisation
More innovation
Cope with volume
fluctuations

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