The intent of the project is to analyse the procedure process of developing or service organisation, thriving to attain the efficiency and productivity in the functions process, through various organisational and operational strategies carried out on a short term or a permanent basis. The analysis of the record is dependant on the many key finding which decides the success of organisation and exactly how company manages between your quality, cost, velocity, dependability and versatility of its products using the key competitive factors such as order success and order qualifiers to preserve in the market. The process design employed by the company is to improve competence and effective inventory management style with help of suppliers and marketers; analysing the problems confronted by the company and solution for the same.
INTRODUCTION
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TRANSFORMATION PROCESS
FEEDBACK
INPUT
TRANSFORMATION
PROCESS
RAW MATERIAL
Wheat flour, sugar, hydrogenate vegetable olive oil, salt, dairy, added flavors
PRODUCTS
OUTPUT
SWOT Evaluation OF PARLE PRODUCTS
STRENGTH WEAKNESS
Low price Irregular supply
Distribution system Reliant on Parle-G brand
Wide range Delivery system
OPPORTUNITY THREATS
Export potential Rivals (Britannia, ITC)
Untapped Rural market Substitutions (toast)
Retain of devoted customers Bakery products
The above research reflects durability of the business is based on its good deal technique, wide selection of products and syndication system of Parle, opportunities prevailing are the export potential, untapped rural market, anticipated to increase in the purchasing electricity of the buyer retention of loyal customers, Threats experienced by Parle are from the rivals, substitutes available for sale and the bakery products whereas the weakness posses will be the irregular supply, dependency on the brand Parle-G and fragile delivery system to penetrate in rural areas. Babaria, M. and Dharod, M. (2009)
STRATEGY
Strategy used by any corporation is develop the functions required to shows the needs of the customers and market, direct how to invest key resources like time and money and to cope up with the higher level of complexness different sections are maintained in the organizations.
Different types of strategy used at different levels in the business.
1. Corporate and business level strategy is set by the company where to spend the money of the business to be able to meet up with the business demand of today's and the future. eg. E. g. increase in the quantity of sales through sales staffing, increase in sales by increasing the amount of factory floor.
2. Business product strategy is executed by different part of organization to attain the desire aim in a particular market predicated on the present and the near future market. E. g. - marketing, funding, sales and marketing and businesses departments.
3. Functional strategy is to keep the main element resources using the tactical and the day-to-day activity. E. g. Market necessity and function of procedure manger in monitoring the line of development. Hill, A. and Hill, T. (2011)
The term strategy signifies route and how you need to put into action it. Strategies implemented by Parle will be the business product strategy where selection of product is sold to identify group of customers in competitive market and efficient strategy where decision of key resources including the raw material required for the production is performed on daily basis by the operation administrator to compete on the market, to expand on the market, to have an perception of the competitors. Hill, A. and Hill, T. (2011).
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CAUSE EFFECT Hill, A. and Hill, T. (2011)
Process
Producing mass product irrespective the taste
Diminish of market talk about of Parle
Competitors
Due go up in growing
Competition.
Fluctuating demand
Due to high competition the demand for parle product is not constant.
Innovation
Using same organic material over the
Years
PERFORMANCE OBJECTIVE
Performance Objectives are fundamental steps to align the needs of the client with the desired effectiveness of the entire business. Performance goals are Quality, Swiftness, Dependability, Versatility and Cost. Each one of these dimensions brings its twist to the value proposition. Each dimension hypothetically attracts different customers. Delivery each goal simultaneously at their highest levels of each one of these product attributes, operations mangers need to arrange objectives predicated on goal, also identify that happen to be an order winners and qualifiers of the targeted critical customers, Operation management (2012).
Quality
Quality is fitness for ingestion in conditions of reaching customers' needs and desires. Quality can either be an order success or order qualifier for customer predicated on the quality taken care of. Quality conformance, which means to regular delivering services based on design specs which, in turn, needs to mirror customer needs. Operation management (2012). To maintain good quality companies like Parle need to maintain and manage quality gaps. Cleanliness is the precursor of every process in Parle. Every batch and confectionery is thoroughly checked by an expert staff by adopting Quality conformance level after every level maintain similar quality throughout all countries neglecting quality control system.
Cost
Cost is one of the major efforts running a business welfare since products that cost a lower amount but have good quality attract customers. Operation managers make an effort to reduce costs and also maintain quality so the company profits. Procedure management (2012). Parle as a firm will maintain quality and keep a low purchase cost. Parle uses an insurance plan of Kaizen, which means to produce increasingly more value with less wastage attaining better environment and producing steady process by standardization.
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Buthmann, A. (2010) describes that Quality cost is the price caused through producing of flaws. Quality cost is priciest strategy used at Parle to repay the good and poor quality cost.
Buthmann, A. (2010) details that External failing is the cost associated to the external deficit of the product received by the consumer at Parle exterior cost is to keep up the product quality cost is devote to the problems received from consumers through online reviews, losses occurred anticipated to reduction in sales anticipated market acquisition by the competition and environmental cost.
Internal failure occurs prior to the product is sent to the clients, not confirming to requirement of customers through the product resulting in less satisfied customers, Internal quality Cost at Parle is because of shortage of fresh material is due to smaller safe-keeping capacity limited by only 3 days and nights. Buthmann, A. (2010).
Appraisal cost arise in-order to keep quality in all levels, conformance to quality standard Through Quality storage area condition, maintaining Cleanliness and monitoring quality by expert personnel followed at Parle. Buthmann, A. (2010).
Prevention quality cost is to prevent low quality of product is provided to consumer Buthmann, A. (2010). Parle spends in Quality improvement in personnel inspection, Quality planning of new product and Quality improvement in team decision.
Dependability
Dependability is a degree of availability of the merchandise when the client needs or requires product. Operation management (2012). Parle is a multination company it handles multiple nations it has a constant management of products regarding demand and offer. To handle demand Parle produces 13 billion biscuits in a month.
Flexibility
Operations potential is to reply efficiently to changes in products, processes (including supply chain human relationships), and competitive surroundings. Procedure management (2012). Flexibility differs in companies but companies like Parle have a standardized strategy and there is less change in the procedures of the business.
Speed
It means by doing things faster to minimize the time between the order and the option of the product to provide a speed benefit to the wholesaler, shop which ultimate the benefits to the clients. Slack, N. et al. (2004) Parle preserves their rate through their wholesalers who deliver their products to the stores, that are finally received by the consumers. Parle maintain the acceleration by keeping a systematic approach to the system.
POLAR DIAGRAM
The polar radar chart depicts the goal of the performance goals Slack, N. et al. (2004) in Parle. Parle as a corporation strives to produce the best material with minimum wastage. After quality Parle talks about customer benefit and cost management. By producing in large Parle maintain availability of products increasing stability. Parle sustains standard technique to increase operation speed.
COMPETITIVE FACTORS
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ORDER WINNER
Order winners The competitive characteristics own by Parle are both time-specific and market-specific to Parle product are most monetary since their products are starting at a price range of Rs2 - Rs 25, Product selection of Parle are into 3 categories
Biscuits - having 18 types of biscuit in the Indian market making them the major biscuit company in the country.
Sweets- Parle has 11 varieties of chocolates and candies in its product line-up.
Snacks- fairly not used to the marketplace Parle have only 4 types of snacks on the market.
Product design & quality is initiated by Parle product by making use of automated packaging facilities and all the Parle product are produced under hygienic condition and retaining quality standard at each stage of biscuits and confectioneries are extensively checked out by expert staff using modern equipment at Parle they follow the seven HACCP concepts for total quality management. Great care is exercised in the selection and quality control of recycleables; presentation materials and rigid quality expectations are ensured at every stage of the creation process (parleproducts, 2012)
ORDER QUALIFIER
Certain characteristics suggests that certain qualifiers are same for the whole market Hill, A. and Hill, T. (2011), that was seen also seen in Parle rivals where delivery quickness plays a crucial role in providing the product to its end consumers and product packaging of the product is performed to attract the clients.
LESS IMPORTANT FACTORS
There are certain factors at Parle, which does not affect the production of the merchandise irrespective of the located weather it is at tier1, tier2 and tier3. Hill, A. and Hill, T. (2011), Parle factory located in teir1 and Campaign activates of Parle is not considered the initial selling point since to produce hype on the market its mandatory to utilize various promotional activities to produce understanding among consumers.
ORDER Victor ORDER QUALIFER
LESS IMPORTANT FACTORS
Order Winner is quality that helps companies get markets. In case there is Parle insurance plan is to strive to provide consistently nutritious and quality food products to meet customer's satisfaction by using quality materials and by adopting appropriate procedures. Therefore Quality is an order champion for Parle. While, also producing the best possible quality for customers prefer to sell it at convenient or cheap prices that are affordable by everyone. This makes PRICE an order winner for Parle also. Whereas the delivery system and product packaging is comparable as their rival it is therefore an order qualifier. Hill, A. and Hill, T. (2011).
PEOCESS
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Most processing organisations provides standard product in high volumes. The repeat, mass development and standardization of the merchandise indicate a need of process design that could profit these characteristics. Batch process appears to be feasible choice as it simplifies, automate and reduces manufacturing cost. Hill, A. and Hill, T. (2011).
The building of batch process can be such that it can be used and reused for developing of range of products, hence enabling companies to reduce cost by investing in equipment's. The downside to the process is the fact that for making each product the procedure line should be reset, it is costly and skilled representatives can only make changes. Hill, A. and Hill, T. (2011). At Parle making is based on batch process to create their products; as mass development can be done without hampering the quality standards of the merchandise. Being cost effective is one of the major standards at Parle as it uses the same collection to make more 33 types of products. Parle do not make special product, as their main aim for are the people. Standard products are costly rather than in mass creation by Parle. Mass products are cheap and made in large volumes.
VOLUME
PRODUCT VARIETY VARI
Milano, Hide Seek, Bourbon.
STANDARD PRODUCTS
None
MASS PRODUCT
Parle-G, Krack-Jack, Dairy Shakti.
SPECIAL PRODUCTS
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Hill, A. and Hill, T. (2011) argues that quantity variety demonstrations marriage between your product categories and volume of the product to be produce at Parle which shows the manufacturing is based on standardize and mass development.
LINE OF FIT
The above graph depict the line of fit maintain by parle to be able to survive on the market through the availability of the products in the range of the line of fit. Kaul, D. (2012)
MANUFACTURING FLOW CHART
RAW Materials TESTING
MIXING
MOULDING
BAKING
COOLING
PACKAGING
The manufacturing process flow graph illustrates how the development process is transported at Parle, In the initial stage, Tests of recycleables is completed, which is dispatched for moulding through the conveyor belt the unfinished product goes through oven for cooking and then to air conditioning of the product and later for packaging through machines like pack tapping and closing machine and onward to dispatched section for the whole vendors to channelize to the dealer for the customers to buy.
PACKAGE AND PROCESS
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The physical source used for Packaging of the completed goods at Parle is done through the assistance of pack tapping and sealing machines while facilitating packed goods and done product. The actions required during the process is done in the front office i. e. supervision room coordinating with the back office i. e. the storeroom, dispatch section and development area as well as the process Parle also provides stream of material, information to the clients with the help of implicit service where site visitors are allow to go to the manufacturing plant by getting a visit at the creation section at the front end office. Kaul, D. (2012)
LAYOUT
Hill, A. and Hill, T. (2011) argues that process or functional can be an layout of process and function at a specific area.
The structure used at Parle is an activity or functional structure reflecting that the structure is made in such a manner that similar businesses are used in a single areas where large batched of goods are produced. Hill, A. and Hill, T. (2011). This sort of layout is well suited for Parle where large batches of production is done with help of varied functions where layout reflects the levels mixed up in making of the Parle products that is the product making is started with the trials of the natural materials then moulding and mixing up machine would go to range and then for cooling down prior to going to the product packaging and then finally as a completed product.
Functional layout advantages
1. Wide variety of products - Parle as brand itself produces around 33 different varieties of products for consumption at its Parle stock at vile-Parle.
2. Lower capital cost -The infrastructure at Parle used for the creation i. e. the autonomous machine assists with decrease the capital cost incurred to make of the product.
3. Usage of processes - since all the source used in the making of the Parle product are group in the stock itself helps in proper utilization of all resources e. g. Equipment's and skilled staff. Hill, A. and Hill, T. (2011)
Functional layout disadvantages
1. In-process inventories at Parle are the price tag on the direct material, immediate labour, and manufacturing plant overhead placed into the products on the factory floor.
2. Materials handling can be costly and inefficient - handling of inventories at Parle are costlier since storeroom are created to provide these inventories in proper conditions, which enhance the cost and are inefficient when the sales income is not up to projected symbol. Hill, A. and Hill, T. (2011)
The development process adopted at Parle is Repeat (standard) Product where in fact the making of product is done a repeated basis made for functional structure where high level of production is done using batch and mass creation.
INVENTORY
Inventory consists of the type which is area of the unfinished goods undergoes various operational process levels know as work in progress for a desired output by means of completed products to sold to the clients. Hill, A. and Hill, T. (2011)
The inventory type followed by Parle is the procedure inventory where in fact the raw materials for 3 days and nights is store in the warehouse from where they are sends for tests the raw material weather it is achieving required benchmarks for the creation. After testing raw materials are dispatched for production. Where the raw material goes through various stages of baking and air conditioning and shifted to the dispatched room where they are stored and sent to their vendors and the finish customers. The natural material found in the merchandise can be stored about for 3 times because the herb is designed in such a way that the organic material can't be stored more than 3 days.
INVENTORY Movement CHART
STORE ROOM
WORK IN
PROGRESS
SUPPLIER
DISPATCHED SECTION
CUSTOMERS
The inventory flow chart depicts the proper execution of inventory present throughout the three-process levels i. e. source, procedure process and productivity at Parle. The inventory such as organic material like wheat flour, sugar, hydrogenate vegetable engine oil, salt, milk and added flavours are stored in the store room from where they used in the process stages for the processing of biscuits, delivered to the dispatched section where in fact the packaging occurs and sent out to the wholesaler and then to merchants for the finish consumers. Due to limited length of time of the safe-keeping capacity there are specific issues which may have to be dealt such concerning meet the global requirement and the diminishing demand for the merchandise from local market segments.
SUPPLY CHAIN
Before keeping the supply chain has to determine whether to help make the raw materials or choose the material. Every manufacturing unit has different benefits if they make in-house / outsource. Advantages for making in house are that company has more control over the materials it is more versatile and last minute modifications are possible. The advantages of outsourcing are that cost is simpler to manage and increases focus on last product. In case of Parle, raw materials is outsourced and the ultimate product is manufactured in house. That is depicted through their resource chain.
Supply Chain comprises all the steps required to supply something or product to a person. Hill, A. and Hill, T. (2011). Parle has many products, that have multiple raw material requirements. Multiple suppliers of provide these materials as their tier 1 dealer.
Tier 1 company such as Godrej, Gurgaon Sweets Mill, Kopoli Flour mill, Wallace Flour Mill and Ahmed Bhai Sugars Mill.
Tier 1
Tier 1
Godrej glucose mills
Tier 2
Tier 3
Retailor
Wholesaler
Final Customer
Kopoli flourmill
INTERNAL
OPERATIONS
Retailor
Wallace Flour mill
Wholesaler
Ahmedbhai glucose mill
WHOLESALER, Retailor
CUSTOMER
INTERNAL SUPPLY String - PROCESS
SUPPLIER
Delay in Inventory
The above body shows how inventory at parle are buffered and maintained at each stage through the gap in the source chain. But with proper co-ordination with the activities in the supply chain helps parle to build a products design, customer management and final delivery of the product to be consumed. Hill, A. and Hill, T. (2011)
Conclusion
The report covers Distinctive features of Parle operation process through procedure analysis of the organisation by taking a synopsis on the strength of distribution system and cheap good thing about Parle over it competitors, tremendous measure are taken to maintain quality and at the same time be affordable, which can be reflected using their quality control methods and the way factory was created to carry out functions and buffer their inventory through various phases of the functions and maintaining designed supply chain management with the coordination of the suppliers parle create a products design, customer management and last delivery of the merchandise to be used, with the aid of analysis carried out on parle we were able to identify the operational problems and given appropriate recommendation, which has assisted our group to learn the functioning associated with an procedure management and the way the functional surrounding play a vital role in processing of something or service delivered to a customers, which was the motive of your project. Hill, A. and Hill, T. (2011)
RECOMMENDATION
TYPE OF PROBLEM
RECOMMENDATION
A)
SOLUTION
Fluctuating in the demand.
Rise in competition, Insufficient innovative ideas (Same Use of raw materials. )
Diminish market talk about of parle.
Parle should spend money on capacity or inventory for fluctuating demand.
Parle can improvement by using passive or proactive procedure for better innovation and sustenance against rise in contests.
Parle should Constantly compare their order-losing hypersensitive qualifiers with the competitors, since a slight change in the environment can cause them to start out losing market talk about.
B)
SOLUTION
Lack of flexibility
Costlier to maintain the equipment's
Reset of process series.
Operation quantities.
Quality conformance level after every stage.
There should be continuous change in procedure for better advancements.
Equipment's, which are not essential should be should out or should be leased somewhat purchasing the equipment's.
Different procedure should be looked after range for different selection of product instead of reset following the end of the every process.
Reduction in depletion and the changeover and set-up times for processing process.
To maintain the operation volume labour and materials should be properly utilised.
Parle should build control system somewhat than conformance at each stage
C)
INVENTORY
SOLUTION
Cost of in-process inventory
Handling of inventory
Storage capacity
Holding of inventory
To reduce cost of the inventory Casual analysis should be done and inventory should be group into commercial, decoupling, pattern, pipeline and buffer for better handling and upsurge in the safe-keeping capacity to carry the inventory.
D)
SUPPLY
SOLUTION
Fluctuation cost of raw materials E. g. - sugars.
Maintaining dedicated suppliers due surge in demand.
Slow technical up gradation compared to competitors.
Parle should take up the release cash method where they have to delay the payment to suppliers resulting in improvisation in operation.
Build better relationship for constant way to obtain raw material, which can only help to maintain loyal suppliers.
To avoid cost on up-gradation of the technology it ought to be outsourced.
Hill, A. and Hill, T. (2011)
