Task 1:

(a) Explain why businesses give importance to the operations

management.
Based upon my visit to SAFFRON PHARMACEUTICALS (Pvt.) Ltd., it highlights
that operations management is a supply chain process in which employment of raw
material is to the finished product or service. And it signifies to the activities,
decisions and responsibilities of dealing with the resources cost-effectively that are
committed to the production of products and services.

(Programsuccess.files.wordpress.com)

Operations managers are the persons who are accountable for supervising and
managing the resources that structure the operations function. The operations
function is also responsible for satisfying customer requirements through the
production and distribution of products and services precisely.

The importance and purpose behind why businesses perform operations management
is because every business cannot run its production system without operations
management. Similarly this management system is substantial towards SAFFRON
PHAMACEUTICALS as well and is established on following factors:

Cost Control:
Cost control indicates to the tactics to produce goods or services at the lowest
possible cost whilst they are still conventional to customers. By reducing the
costs of production and supply chain, business will be able to gain a benefit
over its competitors. Yet, it is significant for the customers to perceive, they
are acquiring worth for money spent, else this technique will not foresee
longstanding rewards for the business. Businesses such as SAFFRON
PHAMACEUTICALS, adopting a cost control strategy frequently have
standardized products.

(Programsuccess.files.wordpress.com)
 Quality Control:
Quality control in respect to operations management plays a vital role in the
business of SAFRON PHARMACEUTICALS. It is a procedure that
appraises output qualified to a standard and takes remedial action when
output doesn't meet these preset standards. The purpose of quality control is
to make sure that evident processes are performing up to a firm's customary
benchmarks.
Based on the quality control, SAFFRON PHARMACAEUTICALS is the
only company who has achieved quality management certificate of ISO as
follows:
ISO 17025:2005

(Teneightygroup.com)

Production, planning and control:

Production, planning and control are an essential element for achievement of
an operation unit, for a company like SAFFRON PHARMACAEUTICALS
as it has a large production and assembly lines. It safeguards that finest
utilization of production volume is achieved, by proper programing of the
system, which lessens the idle time, as well as over use.

(Image.slidesharecdn.com)

Product Design:
Product Design encompasses an extensive tactic to the designing and making
 of advanced or new products. This text is intended at those businesses that
are interested in the way industry ascertains potential products and
magnificently designs and manufactures them, such as SAFFRON
PHARMACAEUTICALS.

(Saffronpharma.com)

(b) What are the advantages when producing safely, on time, to cost, to
quality and within the law.
Every business such as SAFFRON PHARMACAEUTICALS has to keep following
five points in context while carrying out production process:
Producing safely:
Producing safely means, when businesses have all the equipments and
methodology of producing safely and protect its employees, and premises
from any hazard.
Safe productions has many benefits, if businesses follow and they are as
following:
Reputation:
Producing safely in a firm, SAFFRON PHARMACEUTICALS, will
assist to create a positive reputation with clients, employees and other
associates. The subsequent good public relations can aid to increase
sales and generate more profit.
Productivity and Profits:
Good safety measures means that the workforce can do their work
more work more undoubtedly and securely. This will enhance
optimism, increase output and diminish costs.
Avoid insurance and legal costs:
Worthy standard of safe production in the workstation can lower
insurance payments, as well as the costs of accidents that aren't
concealed through insurance.

On time:
Producing on time refers to the efficient and lead-time production. When the
time between input and output is operative enough to produce product within
accurate time.
The advantages of on time production are as follows:
Improved Supply Chain Management:
It can help companies, such as SAFFRON PHARMACEUTICALS,
become more competent and competitive in the manner they handle
supply chains and assemble products for their customers. A more
efficient supply chain can stipulate lower costs throughout the
manufacturing process, and those lower costs can then be dispatched
on to the customer.
Less Waste:
When a company produces in certain time it requires producing a
product, it leads to less wastage and more productivity. This on time
model condenses the waste and helps firm respond more quickly to
the distribution centers and customers.
Ceases Over Production:
In on time production, products are not actually over produced
because the accuracy level of production is high and every batch of
products is inspected according to the instructions given.

To cost:
Producing to cost means, producing cost effectively, in economical term it
means to produce goods and services that has a good value where procedure
and benefits are less than the cost paid.
Producing efficiently to cost has following advantages to SAFFRON
PHARMACEUTICALS:
Excessive profits:
When a business produces with cost proficiency, it leads to lessen the
cost and raise the productivity and ultimately high-pitched profits.
Achieve Economies of scale:
A company that is producing high dimensions of products such as
tablets, injections and other pharmacy products confer with its
suppliers to get massive bulk discounts on raw materials that will
lower its production costs.
Lower prices:
Customers and firm can benefit from cost efficiency in terms of
lower prices at same time for the same price. Therefore a company
can attain competitive advantage based on operational management
of its costs.

To Quality:
The word 'quality' in a business intellect means 'fitness for purpose'. A
business produces a quality product when it correctly meets the requirements
of the final customer for example, in a filed of pharmaceutical, business has
to produce finest quality product in order to enhance the consumer.
Producing quality products benefits organization in following way:
 Customer Loyalty:
Providing customers with quality products helps to upturn customer
satisfaction and loyalty. Mollified customers have self-assurance that
your products will endure to provide consistent performance in the
future because quality is an essential element for pharmaceutical
products.
Costs:
Quality can help to lower production and product support costs. A
quality control system helps to lower levels of waste and rework,
cutting costs and improving productivity and production efficiency.
Compliance:
Compliance with renowned quality standards may be fundamental
for doing business. If business such as SAFFRON
PHARMACEUTICAL, is part of a supply chain process business
may execute consistent quality norms on all associates of the chain
process.

Within the law:

Producing within the law means, when the government fixes some sets of
standards and company has to follow them. Similarly, SAFFRON
PHARMACEUTICALS are certified with the ISO 17025:2005, ISO
14001:2004 and ISO 9001:2008. According to this they are following all the
laws and fulfilling the requirements.
Therefore, they have following remunerations of it:
Avoid Legal turbulence:
Following the set of laws in order to produce, a business always
avoids legal turbulence. Companies such as SAFFRON
PHARMACEUTICALS maintain the highest ethical standards and
work according to the set of rules that is why it is only company,
which has achieved all three ISO certificates.
Affirmative Work Environment:
In this pharmaceutical company, employees have restraint to be
ethical and understand law requirements from the moment they have
their first job interview. Good workforce creates a positive
environment for the company and their supervisors trust them with
discretion and it outcomes in a respectable business.

(c) Explain the relationship between strategic and operational

management at different levels of management.
Management's primary function is to get people to work together for the attainment of
an organization's goals and objectives. ("Definition Of Management")

The relationship between strategic and operational management is as following:

Strategic management is an organizational extensive activity where the operations,
sales and finance are concerned from the top level to the bottom level of the
organization. In former words, strategic management is concerned about all the
activities in the organization as a whole. The operations management is concerned
of operations as in production function of the organization at the operations ground
level of the organization.

Strategic management is a long-standing progression where it ascertains the long

term anticipated level of implementation and tries to achieve it, however, Operation
management, is short-range engrossed and handles day to day activities in the
organization.

Strategic management is a multifaceted process, which requires strong management

abilities to handle it, whereas, Operations management is impartially simple process
of transmuting inputs into outputs and average skilled management can supervise it as
well.

Persistence of a business is straight associated with strategic management process as

it accomplishes critical success factors of an organization. Operation management is
not directly linked to the endurance of the organization relatively it indirectly effect
the survival through increasing performance on a day-to-day base.

There are three levels of management in every business, and so SAFFRON

PHARMACEUTICALS have. These levels of management are directly allied to
strategic and operational management.
The management levels are as follows:
Corporate level management:
It is associated with management as it is the higher-level
management, which copes with entire entity. It includes Board of
directors, directors, vice presidents and etc. At this level of
management, top bottom approach is being followed and strategic
decisions are accelerated to next level of management to be applied.

(Educationdev.net)
Business level management:
Business level management is a central level of management where
decisions are taken regarding the transformation of upper decisions to
the lower level of decisions. Managers provide support and
encourage a sense of unity within the organization and to enable
lower-level management and front-line employees to produce work
that encounters quantity standards.
 (Acceleratedbr.com)

Functional level management:

It is the lower level of management that is straightaway associated
with operations management as different production processes are
carried out. At this level, production is actually done and everything
related to production for example, quality control, packaging, Just In
Time techniques, and distribution is proven.

(Naturallawsblog.com)

(d) Produce a system diagram that shows how business manages their
operations at different levels effectively.

SAFFRON PHARMACEUTICALS manages their operations effectively in a

following way:
Raw Material Ware House:
Semi-Solids Section:
Packaging Section:
Finished Goods Store:
Task 2:
(a) Give evidence from facility, and explain the importance of 3Es for
this facility.
After I visited the facility of Saffron Pharmaceuticals I assessed the significance
of 3Es for this facility, based on the following facts:

Efficiency:
Efficiency measures the correlation of inputs and finished product. We might
measure inputs in terminologies of cost incurred or by some substantial
measure, such as materials or labor-hours. Likewise, outputs can be
measured in terms of sales, income or amount of articles produced. It is
evidently well to attain a greater output for less cost so firms such as Saffron
Pharmaceuticals perpetually want to adopt such link between inputs and
productivity in order to lead the production in field of pharmacy.
As there will be more efficiency, turnovers are going to eventually rise.

(Bydesign-inc.com)

Economy:
Economy is the overall concern of how funds, resources and revenues of a
business are structured. It considers the change of any cost in the business
brings what effect elsewhere. For instance, in Saffron Pharmaceuticals, if a
cost of any production unit such as tablets increases or decreases, the
consequence either would be efficiency in the operations or deficiency.
Therefore in order to improve economy, firms operations must be proficient.

(Copacabanahomes.com.ng)
Effectiveness:
Effectiveness weighs whether the production succeeds the anticipated target
or standard or not. A process may not be optimally efficient but may achieve
flawless quality. Effectiveness is a non-measurable factor as it only assess
that the techniques which are applied in operations process, either they are
resulting in any success or not.
It is hard to measure effectiveness statistically, but response and market
demand can be considered to measure how well business has satisfied
customer expectations and requirements.
(Differencebetween.info)

(b) What are factors involved to minimize the cost and maximizing the
profit, particular this facility, and how are achieving five
performance objectives?
Remember that the firm's problem is maximizing profits by choosing the optimal
quantities of inputs to employ and output to produce.

Saffron Pharmaceuticals uses following factors to minimize cost and

maximize profit:

Substitute Lower Materials Cost Where Feasible:

Pharmaceutical products can normally be mass-produced through utilizing a
variety of different materials, depending on market necessities and the
practices of the producers. Technology is continually refining older materials
and generating new ones, prices change up and down due to supply and
demand, and dispensation processes change. These kinds of procedures
upturn the profit of the firm.
Diminish Wastage:
Companies such as Saffron Pharmaceuticals usually strategize their products
without bearing in mind the production magnitudes; specifically in what way
acquisition a unit of size is done, capacity, or mass must be reformed to
produce the finish product. Production techniques are normally established to
minimize the costs of the utmost element of production, either workforce or
materials, at the time the method is acknowledged.
Convert Purchasers Into Dealers:
In Saffron Pharmaceuticals, the finished product is an element of final
product. Buyers of your module should deal straight with the raw material
merchant to supply raw materials to you for the dispensation of
the medicines. In all prospect, profit margin on the raw materials is
noticeably less than the margin on the employment and overhead. Displacing
material resource charges to buyer will abolish a substantial cost exclusive of
reducing profit margin.

Five performance objectives:

Performance objectives are a magnificent management technique used by Saffron
Pharmaceuticals and can be accomplished through following aspects:
1. Productive Costs:
One of the meticulous production objective, specifically where firms
compete with price is cost. Lessening the cost of inputs or making
efficient use of them by cutting down waste, allows for the increase in
production.
2. Quality Standards:
It is classically outlined through literature, as the level of excellence of
something when dignified against other things or products of similar
nature, for example pharmacy products.
The quality of a product can be weighed in relation of performance,
consistency and durability.
3. Flexibility:
Being able to do the modification of production process in various ways,
as follows:
Product or service flexibility.
Capacity flexibility.
Distribution flexibility.
Flexibility accelerates customer and supplier response, saves time and assists
retain loyalty.

4. Promptness in Production Process:

Its the interval between the beginning and end of a production process.
It can be either in-house, the time between when resources initiate and
complete its production or outdoor, the time course between customers
demand and buying product or service.
5. Economies of Scale:
A firms effectiveness is affected by its size. Outsized firms are often
more competent than small ones because they can gain from economies
of scale. (www.economicsonline.co.uk)
Saffron Pharmaceuticals has large scale operations, and achieving
economies of scale can enhance their performance objectives through
following advantages:
Bulk Buying and discounts
Specialization in production
Efficiency
Technical economies
Task 3:
Linear programming implicates the over-all setback of finding the finest way to
allocate inadequate resources among rival behaviors. This allocation drawback arises
certainly in a number of circumstances such as:
Planning the production process to boost profit.
Integrating the resources for a product to minimize its cost.
Picking an ideal range of investments in the business.
Assigning sales persons to sales area.
And outlining a minimum cost conveyance setup.

Application of linear programming:

Linear Programming is applied for defining the optimal allocation of such resources
as materials, machines, and labor source by a firm or any project engineer such as
Metro Bus Service. It is used to regulate the optimum product- mix of any firm or
project to rise its revenue generation. It is also used for smoothing the project such as
Metro Bus and balancing its outcomes.

Following method is used for application of linear programming:

Simplex Method:
It is an arithmetical technique for resolving complications in linear programming. It
encompasses of following steps that are used in simplex method:
Articulate the problem in context of task, a set of limitations and a set
of non-negativity disorders.
Reformulate the problem in normal linear programming layout, adding
limp variables where required, to transform the actual variations to
equivalences.
Create a primary simplex step design.
Chose the variable to add into the answer.
Pick the variable to vacate the solution.
Complete and check upon the subsequent new solution for optimality
Repeat the procedure till resource optimum target is achieved.

It can be achieved through putting values into the following formula of

Simplex Method:

Maximize p = x+y subject to x+y <= 2, 3x+y >= 4 (Zweigmedia.com)

Critical Path Analysis and Application:

Critical path analysis is a tool that is broadly used in project development. It is
based on network diagrams, appropriate for both planning and control aspects of
production. Graphical display of the network improves the communication and
emphasizes the interdependency of numerous activities essential for
accomplishment of a project such as Metro Bus Service.
Perhaps the utmost influence of this technique is the identification of successively
time-critical activities that necessitate the contiguous supervising.
The fundamental procedure for using critical path analysis is to create a
model of the project that incorporates the following:
List down all the activities that are required to complete a project.
The time capacity each activity will consume to complete the
project.
The territories between the activities.
Critical Path Analysis Calculates the following for projects such as Metro
Bus Service:
The lengthiest time of scheduled activities till the completion of
the project.
The initial and up-to-the-minute that all activities can start and end
without lengthening the project.

Network Planning:
Network planning is a formation and control method constructed on the use of
network diagrams. This planning technique allows the development of the
interconnection between planned activities and acquired results makes probable
and accurate calculation of the plan and permits well-timed modification of the
project.

Network planning is also very advantageous in following states:

Assists decision making process.
Saves time hence capital investment.
Ascertains critical activities that have to be completed by the time.
Displays projects, which can be finished at the same time, aiding
efficiency.

Operational Planning and Control:

An operational planning can be outlined as a plan equipped by a constituent of an
organization and project planning, for example based on scenario, the Metro Bus
Service that evidently explains actions it will take to support the goals of the
business.
For the success of a business for example, Metro Bus Service, an operational
planning is crucial and there are many reasons why a business demands an
operational planning.
It aids the business to move from initial level to its success level, including the
resources that will be consumed along the way, all of which are required for
success. It is known that without operational planning in setup of a business, it
would not be able to stay concentrated, nor operate proficiently. After the
business is optimistic and successfully in a go, operational planning is an ultimate
tool to progress and run a business.
Other than this, it distinctly defines the most critical resource necessities. It even
diminishes the risks where possible, and formulates contingency plans where
compulsory. It even gives an idea of long-lasting future of a project, embracing
its sustainability.
Task 4:
(a) Produce a set of clearly defined production outcomes?
As an operations manager for the project of construction of Metro Bus Service,
the setups, which are already implemented on this project, can be clearly defined
in effective results and can be enriched through following applications:
It should provide fast and accurate travel time for the travellers,
in order to satisfy their necessities to reach specific destinations
without any delay.
There should be provision of transit service for those passengers
who have to travel at two or more than two destinations,
subsequently their time and money will be saved altogether.
Metro Bus should make service modifications three times,
revising some routes and schedules to operate more efficiently,
improve travel times and better bus service to passengers demand
within accessible budgets.
The facility of bus repair and petrol filling must be well-
organized at all the stations and every route should have
alternative bus provision, in situation if one ride is not available
due to any technical factor.
A separate arrangement for disables and older persons ought to
be taken into account, so that it turn out to be easygoing and
restful for them to travel anywhere.

(b) Produce a network plan and resultant critical path?

Metro Bus Network Plan Islamabad:
Critical path approach is frequently used practices in project planning such as
Metro Bus Service project. Such projects consumes numerous tasks comprising a
huge amount of workforce involved in the project process that is why project
managers have a tough time upholding those things in a certain track, which is why
critical path analysis is used.
Critical path technique helps managers discover two essential things. How much time
it will take to finish the project and what are the critical tasks that must be completed
before starting other related tasks.
The best way for the project managers to prevent insignificant planning is to
encompass critical path method in the diagram as drawn above. All the activities
constructed on the network diagram above, states the time duration of each activity to
be completed. This process helps in identifying the routes on the network diagram,
for example, Metro Bus, clearly and accordingly to the directions.
The network diagrams can be appropriate in this type of time management. Once you
have all of the required activities operated and added to the diagram, you can use the
critical path method to find the prime way to finish those tasks.

(c) Explain how quality is maintained?

Quality control certifies that employees, workstations, and products are kept
secure and up to a sound standard. Producing a good quality control process is a
measure of successful business projects such as Metro Bus Service. Maintaining
extraordinary quality control standards can aid them to develop reputation and
make the workplace safer and more pleasant for employees. By employing a
comprehensive and well-resourced process, maintaining quality control standards
can become part of a regular practice.

For projects such as Metro Bus Service, it is essential to maintain consistent

quality since huge amount of passengers travel everyday and to different places.
Their quality standards can be maintained through following steps:
Quality Control
Quality Assurance

These two practices make sure that the end product or the service meets the
 quality requirements and standards defined for the product or the service.
Quality control is a process of making sure that if quality is adhered to the
distinct standards and procedures or not. However in Quality assurance an
endless potency is set to enhance the quality practices.

References:

Saffronpharma.com,. "Saffron Pharma". N.p., 2013. Web. 16 Dec. 2015.

www.economicsonline.co.uk,. "Economicsonline". N.p., 2015. Web. 18 Dec. 2015.

"Definition Of Management". Boundless (2015): n. pag. Web. 16 Dec. 2015.

Acceleratedbr.com,. N.p., 2015. Web. 16 Dec. 2015.

Bydesign-inc.com,. N.p., 2015. Web. 18 Dec. 2015.

Copacabanahomes.com.ng,. N.p., 2015. Web. 18 Dec. 2015.

Differencebetween.info,. N.p., 2015. Web. 18 Dec. 2015.

Educationdev.net,. N.p., 2015. Web. 16 Dec. 2015.

Image.slidesharecdn.com,. N.p., 2015. Web. 16 Dec. 2015.

Programsuccess.files.wordpress.com,. N.p., 2015. Web. 15 Dec. 2015.

Teneightygroup.com,. N.p., 2015. Web. 16 Dec. 2015.

Strategic-control.24xls.com,. "Strategic Management :: The Operations Management

Process". N.p., 2015. Web. 18 Dec. 2015.

1
Name: Ramisha Fahim
Unit: Operations Management
Assessor Name: Samreen Awais