Operation Management Final Presentation By Group 4 Syapass from ITM Business School , Kharghar

1. Submitted By:
Group - 4
Sameeksha Verma (204)
Yogesh kumar Agarwal (202)
Amit Binwani (195 )
Paul Chandranath( 201 )
Anshul Kothari( 231 )
Soumya Sharma( 211 )
Shiva Ganesh( 212 ).
REFRIGERATOR
Company:
friOven.- Glitter of Innovation.

2. Introduction
• Common household appliance & White Good.
• Applications :Domestic,Commercial and Industrial (Volume &
Product markets)
• Growth potential
• In 2012-13 more than 7.5 Million units Sold , which accounts at
around Rs 11,200 crores.
• 46 % of urban households And 8 % of rural households in India
own a refrigerator
Prominent Player:
• Videocon International Limited
• LG Electronics India Limited
• Samsung India Electronics Limited
• Whirlpool of India Ltd
• Godrej & Boyce Mfg. Co. Ltd
• Voltas Limited
About the Sector & Prominent Player

3. Market Analysis
Frost
free
29%
Direct
cool
71%
Category Wise Market
Share
0
5
10
15
20
25
30
LG Samsung Godrej Videocon Whirlpool Others
Market Share of Companies
28.6%
18.6% 18.6%
17.6%
12%
5%
Region wise Refrigerator Sales
North
29%
East
13%
West
24%
South
34%

4. SWOT Analysis Of Refrigerator Sector
Strengths
1.Generation of Employment in the
rural & urban areas.
2. FDI Support by government .
3.Existence of the product provide flexibility
in adapting to brand- access to
markets.
Weakness
1.Downsizing margins .
2.Need to Regularly update the
technology
3.Seasonal demand & Price Variations &
Margins.
Opportunity
1. Growing Middle class & micro families.
2. Potential Demanding Electrical &
Appliances Markets .
3. India's Market Stretch & Resources .
4.Emerging E-commerce market .
5. Increase in Nuclear Family.
Threats
1. Heavy tax levied on consumers
2. Govt. Changing policies and rules
3. Increasing competition &Copyrights.
4.Increase in raw material cost .
5. Availability of power .
6. Fluctuations in Exchange Rates.
7.Technologies & Adherence to
International Compliance Laws (ISO) etc.
Swot

5. SWOT Analysis Of Refrigerator Company
Strengths
1. Good Quality .
2. Enhanced Features (Micro-oven,
Control Panel etc.).
3. After sales Service & reverse logistics
framework.
4. Focus on a Specific region
(Consolidating positioning).
Weakness
1.Contract channel Involvement .
2. Limited Line Offering .
3. High Operating Cost (Initial Start-up).
4. Product Variety is less.
5. Brand Positioning.
Opportunity
1. Improved Technology and Widening
Product portfolio .
2. E-commerce( Direct Sales & Support
Service).
3. Manufacturing & Operations at large
scale.
4. Redesign, Improved Brand & Quality
Image.
Threats
1. Highly Competitive Industry
Dynamics(LG , Godrej, Samsung etc ) .
2. Economics Instability .
3. Stagnant Market Demand .
4. High End products & Services .
5. Financial Support & Instances of false
claims eroding value & Customer trust.
6.Current product design of competitors .
Swot

6. Operations Strategy
Location
Assembling
Infrastructure
Market Analysis
Product plan/div
Raw Material
Assembling
Distribution
Branding Promotion
Direct Sales
Direct Sales Channel Sales
Customer Service Warranty Support
Location
Customer Retention
Supply Chain

7. Basic Operational Strategy
Press shop Paint shop Final Assembly Testing
Refrigerator – Manufacturing Process:

8. Basic Operational Strategy
Corporate Strategy
Business Strategy
Functional Strategy

9. Marketing Strategy:
• Product marketing concept
• Give advertisement in News paper on weekend
• participate in more exhibitions
• Introduction at least 4 new model of refrigerator in a year
• Focus on quality
Branding Strategy :
• Brand Visibility by sponsored in Events
• Convey any good message by Logo
Networking Strategy:
• Give Best after sales service
• Take the Reviews from customers via Email and phone
Growth Strategy:
• Societal Marketing
• Capture Emerging Markets and High-volume segments
• Expansion of B to B Business
• Launch New technology
STRATEGY
Segmentation
• Demographic
Occupation-
Service and Business.
• Geographic
Noida
Delhi
Targeting
Upper class Segment and
middle class Segment
People who are More
concern on life style
product .
Positioning
Innovative Features
Touch Panel
Refrigerator with
microwave oven

10. Factor Related to Location
Location
(Delhi)
Land
Cost/Rental
Charge
Availability
of Raw
Material
Proximity of
market
Labour
Availability
Transport -
ation
Facility
Power
Availability
Export
processing
Zone
Demographic &
Pschographic
Factors.
• Space-land, building and building
services;
• Fire protection;
• Handling equipment including
maintenance;
• Staff;
• Information management
systems.

11. Components
Functional Parts :
Part name Price
Compressor Rs 4000
Over load Protector(OLP) Rs 350
Thermo State Rs 450
Touch temp. Panel Rs 900
Freezer fan Motor Rs1000
Thermal Bi Metel Rs 650
Heater Rs 750
Temperature Sensor Rs 250
Timer Rs 800
Single Door (215 ltr)
Double Door
(292 ltr)
Body Part:
•Door
•chillers
•Shelves
•Drain Pan
•Ice Maker
Microwave oven Parts (20 ltr) Price
Magnetron RS 900
PCV Rs 1260
H.T. Transformer Rs 900
Magnetron Rs 880
H.T. Capacitor Rs 90
Hand motor Rs 250
Body Rs 1100.

12. Single Door Price :
Refrigerator Parts price Rs 9200
Microwave oven Parts price Rs 5380
Assembly labour charges Rs 1000
Others Rs 1000
TOTAL Rs 16580
Double Door Price :
Refrigerator Parts price Rs 14150
Microwave oven Parts price Rs 5380
Assembly labour charges Rs 1200
Others Rs 1200
Total Rs 21930
Pricing
Spend on Marketing - Rs. 5,00,000 /
Month

13. Plant Rent - 20 Rs Sq feet
Total Plant area 11200 sq feet
Total rent Rs 224000
Marketing person – 20,000/month + Incentives
Service person - 10,000
Others charges 20,000
One month production - 1 day refrigerator Assembly – 3 by one labour
So 3 labour work = 9 refrigerator (Single door - 5 , Double Door - 4 )
Total refrigerator in a month = 25 days * 5 Single door = 125 Refrigerator
25 days * 4 Double door = 100 Refrigerator
One month spend for single door = Rs 1658000
double door = Rs 2741250
Marketing spend for one month = Rs 5,00,000
Rent for one month = Rs 2,24,000
Others Expenses = Rs 1,00,000
Extra Expenses Increase one refrigerator cost = 3000
Single Door Refrigerator Price = Rs 19,580
Selling price to retailers = Rs 21,500 + Tax
Selling price to End Customer = Rs 24,999 + Tax
Profit in one month = 1920 * 100 = Rs 1,92,000
Double Door Cost = Rs 24930
Selling price to Retailers = Rs 26,990 + Tax
Selling price to End user customer = Rs 29,999+ Tax
Profit in One month = 2060 * 125 = Rs 2,57,500
Total Money we need = 52,23,250 or Approx 53,00,000
Total Profit in a month = Rs 4,49,500

14. Plant Layout
Office
Raw
Material
/Components
Assembly Line
Performance
testing
Lab
Warehouse
Raw material
Testing
140 Ft
80 Ft

15. Distribution Strategy
Manufacturing Unit
Distributor
E-commerce
Small Retailers
Retail Chains
Eg. NEXT
Warehouse
•Centralized Pooled System:
Initial Distribution Strategy: Direct sell to retailers in Noida, Delhi,Gurgaon
After 2 year Distribution Strategy:
Manufacturing
Unit
. Warehouse. Retailers.
Designing Infrastructure:
• Internal Allocation
Decision .
• Increase in Multi
Echelon Networks
(locating
Central warehouse &
Downstream Customer
facing Locations.)
• Designing Interior
Layouts
• Order Line
Distribution.
( Lines per order
distribution-
• Order Mix distribution
(handling unit
distribution & the order
increment distribution.)

16. Core Competency
Order qualifiers of the business:
• Evaporator
• Expansion valve
• Condenser
• Compressor
• Refrigerant
• Heat-exchanging pipes
• Door
• Icemaker
Value added competencies / Order winners:
• Refrigerator with Microwave
• Refrigerator with Touch temperature control panel
• Vegetable Shelf at the middle, not at the bottom

17. Point of Differentiation
(POD) :
• No. and type of doors .
• Crushed ice and water dispenser.
• Quick chilling zones .
• Multiple temperature zones .
• Adjustable racks and shelves .
• Multiple use compartments .
• Refrigerant – CFC free Vs CFC .
• Energy efficient compressor .
• Freezer space vis-a-vis
refrigeration space .

18. •Let It Run Dry.
•Sell Shares.
•Liquidate
•Go Public
•Merge
•Be Acquired
•Sell .
EXIT STRATEGY
MERGER&
ACQUISI-
TION
INITIAL
PUBLIC
OFFERING
(IPO)
CASH-
OUT
SELL
STAKE CASH –
COW
(Working
on
Annuity)
LiQUIDATI
ON &
CLOSE .

19. THANK YOU.