Project Report on Operations Management (Case Study Analysis)

Submitted To Prof. Modi

Submitted By Nagesh Hiren Aditya Komal Ruchi

Q-1)

Should keep three washing machines and one dryer. We think its better to run more machine simultaneously which saves on wages.

Q-2) Plant Layout

Q-3) He should charge Ordinary cloths Rs. 25/ item Large cloths Rs. 50/ item OR Even he can outsource the ironing to any other small laundry person and he can charge the same rate of laundry what others charging. What he can do is he can give 4 Rs/cloths and 15 Rs/cloths, for ordinary and large cloths respectively. Here he can earn additional 1 Rs. And 5 Rs on small and large cloths respectively.

Q-4) 1 Person for Washing 1 Person for Drying 1 for clerical work and reception We can use Drying person and Washer even to collect cloths and dispense it, As they may be free once they set machine. Average salary ( as per min. wages prescribed ) Washer = for 14 hours = 13562 Dryer = for 14 hours = 13562

For clerical person = for 14 hours = 23250 Total Wages = 50374

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Q-5) Detergent Given Rs. 150 per Kg Total clothes washed daily- 800 Per 20 clothes (as assumed that 1 cycle of washing, washes 20 clothes) 50 gm of detergent 50gm * 40 cycles = 2000 gm/day 2000gm * 26 days = 52 kg/month (Considering 4 Sundays closed) 52kg * 150 Rs/kg= Rs.7800/month The monthly cost will be Rs.7800 for Henko detergent.

Q-6)

Given Washer Electricity per cycle = 3.5 * 12.50 = 43.75 Per 40 cycle = 43.75 * 40=1750 Water per cycle = Rs. 1 (since 1000 ltr = Rs.50) Water per 40 cycle = Rs.40
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So a washer uses: Electricity = 1750 /day * 26 days = Rs. 45500/month Water = 40/day*26 days= Rs.1040/month Dryer Light each cycle = Rs. 9.375 Per 40 cycles = 9.375 * 40 = Rs. 375 /day = 375 * 26 = Rs.9750/month Q-7) Cost ( per month ) = Operating Cost + Wages + Rent = 63570 + 50734 + 25000 = 138944 Rs/Month

Revenue Assuming total 800 cloths daily ( 400 customers , each carrying 2 units of cloths ) 800 * 26 days = 20800 cloths we receive for washing monthly If we assume 15800 cloths are ordinary cloths & 5000 cloths are large cloths Then our revenue is 15800 * 25 Rs = 395000 5000 * 50 Rs = 250000
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Total Revenue = 645000 Rs/month Now we calculate the average gross Profit ( per month ) Revenue - Cost of all work = 645000 138944 = 506056

Now we will calculate primary investment : As we have paid a shop deposit = 500000 Mahanagar gas ltd deposite = 15000 MSEB deposite = 10000 Washing machine cost 35000 / unit * 3 units = 105000 Dryer cost = 28000

Total primary investment = 658000 As we have taken loan from bank and paying interest rate of 18% / annum. So we are paying 9870 rupees/ month on 658000 rupees.

Net profit = gross profit non operating investment So Mr. Rohit patel should earn 496186 Rs. / month

= 506056 9870 = 496186

If he want to break even net profit with cost of operation, he should get 100 to 120 customers per day ( they will carry 240 cloths daily) .

Q-8 ) Dropping of cloths

He should collect cloths as per customer and label it, provide a token to customer. He should keep the cloths as per urgency if customer willing to pick it up early. Picking at Night As all cloths are labeled and it placed in respective store window of which token is given to customer. This will ensure that no cloths are exchanged in night to other person. Other Working Condition All the other work should be done in Neat and Clean way so that no cloth get damaged. It should be operated so that less amount of electricity and water will be consumed. Proper documentation is provided to keep the good track record of all customer cloths to ensure a good service.