Operations Management

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  • Topic: Oven, Marketing, Kitchen stove
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  • Published : May 5, 2013
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Operations Management
Project Report
Company: Corona

Group: J
Section: B
Group Members:
Aatka Zafar BBA 02093054
Adeel Shafique BBA 02093090
Faiza Ahmed BBA 02093071
Usman Ali BBA 02093108
Hina Jabbar BBA 02093052

Submitted to:
Sir Sarmad Irfan

Executive Summary
In this era of globalization and immense competition, the only organizations with lean and fittest operations can survive. Organizations must integrate their strategies among every function to achieve a common goal. Efficient supply chains, good capacity management, quality control and immediate responsiveness to the changes is necessary to win the race. Corona is an old and established name in the industry of home appliances. Although, it has a significant market share, the problem lies with conventional practices and inflexibility of organization towards the changing environment of market. We analyzed and found out the problems in supply chain management, product design and capacity planning. The company must own the distribution network of its products in market and manage it more efficiently. Corona must have its own retail store in the market. There must be a technical team for designing the products as they subject to home safety.

Failure Mode and Effect Analysis (FMEA)
Failure Mode| Cause of failure| Effect of Failure| Corrective Action| No fixed supplier| * Conventional practices| * Delay * Weak relation with supplier| Fix to a single or few suppliers.| Distribution is outsourced| * Fear of taking risks * Weak strategies. * Unknown of hidden profits| * No control over sales * Less profits| * Must own distribution * Establish own factory outlets in markets| Design faults| Designed by owner himself| * Oven heat up problems and oven burner problems| * Establish a design department of technicians and engineers.| Heating up of oven| Wooden boards | * No insulation to heat| * Proper insulators must be used| Paint of burner sticks to food.| Upper burner made up of iron and painted| * Contamination of food * Bad smell| * Upper burners must be made up of steel * No paint| INTRODUCTION

Objectives of the project:
The project will help us to understand the insight of operations management course through practical research on operations of a company. The objective of the project is to find out the problems and the shortcomings in the operations and replace it with some productive and value adding solution. Introduction of Company:

Corona is a Lahore based company manufacturing gas cooking range, gas room heater, water geysers, and water coolers. The company is part of Al Fatah Industries. They are making a complete range of all of these products featuring different styles, sizes, designs and capacities. Corona also imports instant geysers from china. With over 25 years of experience in manufacturing of electric and gas appliances, Corona products have become most reliable and quality home appliances. Corona offers the best range of gas heaters in the entire market. The company was established in 1986 and with a very small production unit in Lahore. The company initially started manufacturing a small range of cooking gas stoves. Total employees of the company are not more than 75. Corona owns two plants situated in Kot Lakhpat, Lahore.

Introduction of the Problem Area:
During the analysis of operations of Corona, we found out few problems: * Mainly the company has trouble with its supply chain. There is not a fix supplier. Every time the supplier with least price is chosen. There is no strategy of managing and choosing suppliers for raw materials. * The company outsources its distribution and a distributer purchases the products from corona and sells in the market and distribute to other parts of the country. While other companies distribute their...
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