Assignment # 1

Operation and
Production
Management

Name : Ameer Ahmed Khan

Class: BBA-6A

Reg no: 36313

Q1. What is the impact of E-business on Operational
Management?
Electronic business in an organization invariably has a significant
impact on various operations and aspects of the organization,
causing changes in areas such as human resources, strategy
planning, technological infrastructure and customer service.
Operations supervisors have needed to confirm and retool how
business is done since the initiation of e-trade. Administration has
additionally needed to figure out how to embrace new innovation
with the developing e-business world. The effect that e-business
has had on how an operations chief address a circumstance can
fluctuate from compelling to scarcely discernible. E-business
initiatives across the organization and integrate the e-business
plan with corporate goals.

Q2. Write Down at least 5 benefits of E-Business and its impact

on operations in any one Industrial organization of your Choice?

1) Decreasing cost of inventory Management:

With e-commerce business, the suppliers can decrease the
cost of managing their inventory of goods that they can automate
the inventory management using web-based management
system. Indirectly, they can save their operational costs.as
compare with other retailers shops.

2) Selling Products across the World:

If you are running a physical store, it will be limited by the

geographical area that you can service, but with an e-Commerce
website, you can sell your products and services across the world.
The entire world is your playground, where you can sell your
complete range of products without any geographical limits.
Moreover, the remaining limitation of geography has dissolved by
commerce that is also known as mobile commerce.

3) Stay open 24*7/365:

One of the most important benefits that ecommerce
merchants can enjoy is store timings are now 24/7/365 as they
can run e-commerce websites all the time. By this way, they can
increase their sales by boosting their number of orders. However,
it is also beneficial for customers as they can purchase products
whenever they want no matter whether it is early morning or midnight.

4) Decrease Costs:
One of the most positive things about ecommerce is that you
can decrease the costs of your business. Below are some of the
costs that you can reduce by opting for ecommerce:

Advertising & Marketing Cost: If you opt for ecommerce,

you dont have to spend your money on advertising and
marketing. However, organic search engine traffic, social media
traffic and pay-per-click are some of the advertising channels
that are cost-effective.

Personnel: A complete automation of check-out, billing,

inventory management, payments and other type of
operational costs lower the total number of employees that you
require to run your ecommerce business.

Eliminate Travel Cost: Now, customers do not have to

travel long distances to reach their desired stores as
ecommerce allows them to visit the e-store anytime without
traveling. With few mouse clicks, customers can make their
purchase and have wonderful shopping experience.

5) Reduces Transaction Cost

Running an online business reduces the cost per transaction
because it takes less labor to finish an online exchange. When you
get your site up and running, the client submits the request on
the web, which evacuates the requirement for a salesman. The
client installment experiences your online installment preparing
programming or framework; again disposing of the requirement
for a store agent. Somebody needs to download the request and
ship it, which is presumably you, however an e-business exchange
has less weight of expense on the business, making every
exchange more practical than a block and-mortar business.

Impacts on Organizations:
A very significant way in which organizations are impacted by Ebusiness adoption is in the change in the way people work.
Proficient and viable interchanges, access to an abundance of
different sorts of data, and the robotization of procedures
unavoidably prompt work upgrade and an expansion in "virtual"
work. Truth be told, to completely abuse the abilities of these
innovations and procedures, an association must upgrade what
errands laborers must perform, where and when they perform
them, who takes the necessary steps and what sorts of aptitudes
are required. Individuals best do a few assignments, however PCs

can successfully do numerous others inside the Ecommerce

domain. As more associations embrace E-business and its
usefulness grows, increasingly procedures will be computerized.
Disintermediation endeavorsfor instance, the supplanting of
phone request assistants with online requestingsupplant
specialists who once performed fundamental deals and client
administration undertakings and acquaint learning laborers who
need with be equipped for gathering, breaking down, and
incorporating data. They handle the more perplexing exchanges
and inquiries that require more incorporated complex aptitudes
and which can't be effortlessly mechanized. Where and when
individuals work is additionally evolving. System based work is
data and learning serious and is less fixing to prohibitive time and
place parameters. In spite of the fact that the remote information
correspondence industry has had a rough begin, versatile Ebusiness holds the possibility to convey continuous data to
remote areas and to empower numerous sorts of business
exchanges that can be executed outside the customary workplace
and work hours, accordingly supporting a more portable work
power. Web-empowered individual gadgets will extraordinarily
develop usefulness and portability and Virtual Private Networks
will give the adaptability and security specialists need.
Associations will all the more much of the time confront the
difficulties of overseeing, assessing, and remunerating virtual
laborers who are universally scattered. As noted before, the
changing correspondence examples of specialists lead to a
compliment hierarchical structure. They likewise prompt more
community oriented work. Cross-utilitarian coordination,
interorganizational and intra-authoritative structures are regular
parts of E-trade that are encouraged by community advances.
Assignment arranged work groups are not constrained by
geographic vicinity. Virtual people group, joining supervisors,
laborers and experts inside and crosswise over associations, and
even crosswise over businesses, can be all the more effortlessly
created and kept up for supporting information sharing and
learning. From the laborer's perspective, there are a few

noteworthy negatives for specialists. One is the specialist stretch

that is an inescapable consequence of augmenting the work into
recreation time and into homes and autos and other generally
non-work spaces. The quick pace of progress, the need to receive
new aptitudes rapidly, and autonomy in information work, are
likewise stretch components. Another worry to laborers is the
simplicity with which procedures can be outsourced. Once a base
for virtual work is built up, work can be expert abroad as
effectively as it should be possible locally. While less demanding
access to less excessive HR is a money related advantage to
organizations, "electronic movement" can bring about occupation
misfortunes.

Q3. Problem 1:
(Refer to solved problem 1.) Coach Bjourn Toulouse led the
Big Red Herrings to several disappointing football
seasons. Only better recruiting will return the Big Red
Herring to winning from. Because of the current state of
the program, Behring University fans are unlikely to
support increases in the $192 season ticket price.

Improved recruitment will increase overhead costs to

$30,000 per class section from the current $25,000 per
class section. The universitys budget plan is to cover
recruitment costs by increasing the average class size to
75 students. Labor cost will increase to 6,500 per threecredit course. Material costs are about $25 per student for
each three-credit course. Tuition will be $200 per
semester credit, which is matched by state support of
$100 per semester credit.
A. What is the productivity ration? Compared to the
result obtained in solved problem 1, did productivity
increase or decrease for the course process?
B. If instructors work an average of 20 hours per week
for 16 weeks for each three-credit class of 75
students, what is the labor productivity ratio?
Answer: A

Productivity Ratio:
Value of output: (75 students per class) (3 credit hours per
student) (200 tuition + 100 state support per credit hour)
= $ 67,500 / Class
Value of input: Labor + Material + overheads
= 6,500 + (25 per Student x 75 student per class) + 25,000
= $33,375/ Class
Applying Formula
Output / Input (67,500/33,375) =2.022
There has been an increase in the productivity from 1.00 to
2.022(which is the incremental rise of 1.022)

Answer: B
Labor Productivity Ratio:
Labor hours of input:
(20 hours per week) x (16 weeks per class)
320 hours per class
Labor productivity:
Output / Input (67,500 / 320) = 210.937 per hour

Q6. Problem 2:
The Big Black Bird Company (BBBC) has a large order for
special plastic-lined military uniforms to be used in an
urgent military operation. Working the normal two shifts
of 40 hours, the BBBS production process usually

produces 2,500 uniforms per week at a standard cost of

$120 each. Seventy employees work the first shift and 30
the second. The contract price is #200 per uniform.
Because of the urgent need, BBBC is authorized to use
around-the-clock production, six days per week. When
each of three shifts works 72 hours per week, production
increases to 4,000 uniforms per week but at a cost of $144
each.
a. Did the productivity ration increase, decrease, or
remain constant? If it changed, by what percentage
did it change?
b. Did the labor productivity ration increase, decrease,
or remain constant? If it changed, by what percentage
did it change?
c. Did weekly profits increase, decrease, or remain
constant?
Answer: A
Value of output (2500 x 200 = 500,000)
Value of input

(2500 x 120 = 300,000)

Productivity ratio (output / input)

500,000 / 300,000= 1.66
Value of output (4000 x 20=800,000)
Value of input

(4000 x 144=576,000)

Productivity ratio (output / input)

(800,000 / 576,000)=1.38
Notifiable there has been a change in Productivity by 20%
referring as decrease

Answer: B
Labor productivity (Output / input)
(500, 000 /40)
12,500 per hour
Labor productivity (Output / Input)
(800,000 / 72)=11.111 per hour
There has been a change by 11%
Answer: C
Profit (Output Input (500,000 300,000) =200,000
Profit (Output Input) (800,000 576,000) =224,000
Difference

(224,000 200,000=24,000

Incremental Profits=$24,000.