Oscm assignment no 2 (group) by arjun priya ram pratik

sales(units)
labours(hours)
raw materials ($)
capital equipments(hours)

usa
100000
20000
20000
60000

ldc
20000
15000
20000
5000

(a)
partial labour productivity for us
partial labour productivity for ldc
partial capital productivity for us
partial capital productivity for ldc
Yes. You might expect the capital
productivity measure to be higher in us
than its subsidiary.also, the measures
seem to be contradictory. Each plant
appears to be far more productive than
the other on measure, but worse on the
other.
(b)
multifactor productivity for labour
and capital for us
multifactor productivity for labour
and capital for ldc

5
1.3333
33
1.6666
67
4

1.25
1

{OUTPUT(SALES)/INPUT(
LABOUR)}
{OUTPUT(SALES)/INPUT(
LABOUR)}
{OUTPUT(SALES)/INPUT(
CAPITAL)}
{OUTPUT(SALES)/INPUT(
CAPITAL)}

{OUTPUT(SALES)/INPUT(LABOUR
+CAPITAL)}
{OUTPUT(SALES)/INPUT(LABOUR
+CAPITAL)}

Yes, results are better because labor and equipment can be substituted for each other. Therefore,
Measure is a better indicator of
productivity in this instance.

{OUTPUT(SALES)/INPUT(RAW
raw material productivity for us
5
MATERIAL)}
input in hours
2000
raw material productivity for ldc
10
The raw materials productivity might be greater in subsidiary due to a reduced cost
paid for raw materials, which is typical of subsidiaries, especially if there arelocal
sources for the raw materials.

Oscm assignment no 2 (group) by arjun priya ram pratik

Problem case 2
Year Output in Dollars
Input in Dollars
Productivity (Output/Input)
2007
$200,000 $30,000+35,000+5,000+50,000+2,000 = $122,000 200,000/122,000 = 1.64
2008

$220,000 $40,000+45,000+6,000+50,000+3,000 = $144,000

220,000/144,000 = 1.53

Partial Measure Labor

Year
2007
2008

Output in Dollars
$200,000
$220,000

Input in Dollars Productivity (Output/Input)

$30,000
200,000/30,000 = 6.67
$40,000

220,000/40,000 = 5.50

Partial Measure Raw Materials

Year
2007
2008

Output in Dollars
$200,000
$220,000

Input in Dollars Productivity (Output/Input)

$35,000
200,000/35,000 = 5.71
$45,000

220,000/45,000 = 4.89

Partial Measure Capital

Year
2007
2008

Output in Dollars
$200,000
$220,000

Input in Dollars Productivity (Output/Input)

$50,000
200,000/50,000 = 4.00
$50,000

220,000/50,000 = 4.40

The overall productivity measure is declining, which indicates a possible problem. The possible
measures can be used to indicate cause of declining productivity. In this case, it is a combination
of declines in both labor productivity and raw material productivity, but an increase in capital
productivity. Further investigation should be taken to explain the drops in both labor and raw
materials productivity. An increase in the cost of both of these measures, without an
accompanying increase in the selling price might explain these measures.

Oscm assignment no 2 (group) by arjun priya ram pratik

Hard rock field study

Hard Rock:
Visual communication points:
Hard Rock India wanted to leverage the social media space in an optimal way to engage,
communicate and converse with their ardent fan base. With five Hard Rocks in India, close to 40
events every month across the country and thousands of foot-falls every week, there was
tremendous opportunity to connect and engage with Hard Rocks audience.
Also, there were scattered and unorganized groups/pages on Facebook touting the Hard Rock
brand and talking about events. Many of these were unofficial, unprofessional, inconsistent and
not properly maintained.
There was no centralized social media strategy for the five Hard Rock Cafs across the country,
whether it was Facebook, twitter, a blog or any other social media space for that matter.
Therefore, we put a plan together to help Hard Rock leverage the social media space in an
organized, professional and consistent way but also make sure the tone, voice and engagement
was fun, interactive and conversational.
Order Fulfillment process:

Oscm assignment no 2 (group) by arjun priya ram pratik

Kano Analysis:
Kano considered two aspects of any given quality attribute- an objective aspect involving the
fulfilment of quality and a subjective aspect involving the customers perception of satisfaction.

Oscm assignment no 2 (group) by arjun priya ram pratik

Using this model, quality attributes can be divided into 5 categories as follows:
1. Attractive quality attribute: an attribute that gives satisfaction if present, but that produces
no dissatisfaction if absent.
2. Must be quality attribute: an attribute whose absence will result in customer
dissatisfaction, but whose presence does not significantly contribute to customer
satisfaction.
3. One-dimensional quality attribute: an attribute that is positively and linearly related to
customer satisfaction that is, the greater the degree of fulfilment of the attribute, the
greater the degree of customer satisfaction.
4. Indifferent quality attribute: an attribute whose presence or absence does not cause any
satisfaction or dissatisfaction to customers.
5. Reverse quality attribute: an attribute whose presence causes customer dissatisfaction,
and whose absence results in customer satisfaction.

Service Blueprint of this Outlet:

Oscm assignment no 2 (group) by arjun priya ram pratik

STARBUCKS:
Visual communication points/items:
Starbucks has done a great job communicating their image, using visual communication. Even
without the words, people know Starbucks. The symbol represents quality coffee, for the real
coffee drinkers. Over the years they have developed their brand, covering all markets. Starbucks
has their own music label, they showcase books in their stores, itunes free song from an up and
coming artist, and their own brand of coffee mugs, traveling mugs, etc. One of their best visual
designs, in my opinion, is the back of the cup- "The Way I see it." These are quotes from people
meant to start conversation. These people can be artists, musicians, politicians, whoever. This is
another example of how Starbucks brands their product. It is not just about coffee, its about the
whole experience while drinking it and the intellectual thoughts they get going by their products,
quotes, and caffeine.
Kano Model:
The least we can say is that Starbucks has a strong personality: this map shows its consumers
that the brand does not leave indifferent! Because the company has founded its entire strategy on
the customer experience, they are the basis of brand identity. The typical consumer likes of
Starbucks brand, it is surprised and attached to it. But it has not as followers: it is also hated and
many groups on Facebook show that consumers are very disappointed assets and do not hesitate
to express their hatred. Look at the Kano model of Starbucks, which shows a map of its
consumers:

Oscm assignment no 2 (group) by arjun priya ram pratik

Flow chart of order fulfilment process:

Service Blueprint of this outlet:

Case study

Oscm assignment no 2 (group) by arjun priya ram pratik

Narayan hrudayalaya

1.)How does N.H plan to scale up its services?

Their caregivers were the rural hospitals run by both the government and other
charitable organizations where they got three days of inpatient care for free and
paid half the price for outpatient services.

NHs Response to the Challenge of Access to the Poor

Affordable health care services address one key barrier for the poor, however, making it physically
accessible raised another challenge. The solution was innovated by NH with mobile vans, telemedicine
and overseas outreach programs.
Mobile health clinics were designed to help the rural poor gain access to health
services. Two mobile units were donated by K. Dinesh, a founding director of Infosys
(a leading Indian software multinational). One operated in the state of Karnataka (of
which Bangalore was the capital), and the other operated in West Bengal. With
these, NH organized outreach camps for cardiac diagnosis and care.
However, India still had miles to go to bring healthcare infrastructure and services
up to international standards.

2.)Is core competency important for success

similar to N.H? Think of other examples of similar
type.
The NH business model also included philanthropy. It hoped that its provision of
high-quality cardiac care and social missions to provide affordable treatment for the
poor would influence others to underwrite the cost of surgeries by donating to the
foundation. This was found to be successful as both patients and non-patients,
through word-of-mouth, poured in close to US$1 million every month. We treat
about 3.3 percent of our patients without accepting any fees while ten percent of
cases receive substantial support, said Lakshmi Mani, the person responsible for
running NHs philanthropy wing. This did not include the lower fees that the staff
determined for poor patients based on their needs.

Challenges for expansion and future plans

The use of communication technology, charitable donations, large patient volume, innovative use of
existing hospital space, enterprising purchasing of bulk drugs and medical equipment, and initiating
medical training programs to ensure a constant supply of trained medical staff have all been the main
variables in the success of the NH enterprise.

Conclusion
Dr. Shetty, in a recent presentation at Harvard Medical School, said that poor people are weak when they
are alone but have a lot of power when together. He successfully used this notion to craft a business

Oscm assignment no 2 (group) by arjun priya ram pratik

model that focused on the strength of large numbers to drive down costs in all aspects of cardiac
healthcare. He followed an economic model that was quite distinct from that of the west. For instance,
western hospitals spent 60 percent of their revenue on salaries, while NH spent only 12 to 13 percent
under that heading. NH tirelessly innovated, bargained and lobbied to bring a new hope for the poor into
the Indian healthcare scenario. Several developing nations approached NH for collaboration in healthcare.
Several state governments from India also took note of NHs success and started to reach out to NH for
setting up cardiac hospitals and creating health insurance schemes. This is only the beginning, as the
Indian healthcare sector needed many more NHs before 2012 to keep its population healthy.

3.)List and explain the enablers, barriers and

success factor of N.H?
In line with its mission, NH didnt turn anyone away from getting care at NH. There
were no barriers, financial or otherwise, to getting an appointment with NH doctors.
Most beds were filled by the working poor whose payment was based on what they
could afford while the rest of their care was taken care of by NH through its charity
unit and donations from wealthy patients. With this combination of economic
counseling, charity and donor money, NH had also treated several poor patients
free of cost. Approximately 3.3 percent of its patients fell into this category, while
84 percent of its patients received some form of discount. In most cases, the poor
came to NH through a referral from one of the mobile outreach vans, the
telemedicine program, or rural and town clinics that serviced the Arogya Raksha
members or the overseas outreach program.
There were a few major factors that allowed NH to run leaner than its private
counterparts:
VOLUME
PROCUREMENT
INNOVATION
PARTNERSHIPS
HUMAN CAPITAL MANAGEMENT

4.) Explore a slightly similar example of " Aravind

Eye Hospital." What are its operations, strategies
and list its enablers and the success factors?
(Refer: Reading Material)
Aravind Eye Hospital
Operations:

Oscm assignment no 2 (group) by arjun priya ram pratik

The Aravind Eye Care Hospital in Madurai India, is the largest provider of ophthalmological
services in the world. Although it performs almost 350,000 eye operations a year- 60% of them
delivered at low or no cost the quality of care it offers is excellent.

Rigorous performance management,

Highly standardized care delivery,
Maintaining high quality standards,
Organizing rural camps to attract volumes of patients,
In house manufacture of Intraocular Cataract Lenses,
Extremely high staff productivity and
A willingness to innovate in everything from how to source supplies to who can deliver

services.
Aravind therefore offers a number of useful insights for health systems and providers
looking to improve the quality and cost-efficiency of care.

Strategies:
A global initiative to eliminate needless blindness worldwide has framed solid strategies aimed
to disease control, awareness creation and increased uptake of eye care services. This is to be
achieved by increasing the trained human resources and establishing adequate infrastructure that
incorporates primary to tertiary eye care,

Effective strategy is to transcend the barriers of poverty and ignorance,

Design and delivery of eye care services,
Develop an understanding of various monitoring and evaluation methods/processes,
Understand the factors and challenges specific to eye care in programme development,
To improve accuracy of patient identification,
To improve communication among care givers and with patients,

The workshops provide an environment for the key personal from each hospital team to
evolve a vision for their hospital. It also helps them to develop various strategies by
which this vision can be translated into reality. These strategies are then formed into
detailed action plans relating to demand generation, quality assurance, resource
utilization and financial viability.

Oscm assignment no 2 (group) by arjun priya ram pratik

Enablers:
In the early stage The Chairman Dr.Venkataswamys family members was their first enablers. He
had to mortgage all the jewellery of his family members to raise funds to start the first hospital.
ICTs have been key enablers of globalization, facilitating world-wide flows of information,
capital, ideas, people and products. They have transformed business, markets and organizations,
revolutionized learning and knowledge-sharing, empowered citizens and communities, and
created significant economic growth in many countries.
Success Factors:

Initiatives to sow the seeds for Growth in Business of the future,

Increasing community involvement,
Community eye health education through various programmes,
Reliability: At the hospital the staff must inform patients when and where services will be

run like eye camps

Optimum use of surgeons on time,
Maintaining high quality standards,
Organizing rural camps to attract volumes of patients,
Doctors works 60 hours a week instead of 30,
Carrying out high quality process at Low cost,
Keeping in view the requirements of every patients, so as to instill a satisfaction within

them as far as the services were concerned,

They had build up an excellent IT system that kept track of all the patients,
Meeting up the salary scale as compared to Private Hospital

5.)N.H is " Walmart personifying the service spirit

of Mother Theresa." Critically examine this
statement and state your views?
Narayana Hrudayalaya is a specialty hospital a brainchild of cardiologist Dr Devi Shetty with the
altruistic motive of making complicated surgeries affordable.

Oscm assignment no 2 (group) by arjun priya ram pratik

By thinking differently about everything from the unusually high number of patients it treats to the
millions it provides insurance, and by thinking a lot like the worlds largest retailer, the hospital group is
able to continually wring out costs
It is aptly said that, Narayana Hrudayalaya is Walmart personifying the service spirit of Mother Teresa.
The hospital negotiates for better prices and buys directly from manufacturers, cutting out distributors.
Starting with cardiac care, an equipment-intensive specialty, made it easier for the hospital group to
expand into other areas that require the same infrastructure.
This is a new and effective strategy adopted by NH in order to grow and continually help the
people that are in need of critical surgeries at a low effective rate and still running it like a business.
These kind of strategies can be adopted in various business organisations.

6.)The Yashaswini Health Scheme is a group

scheme where the premiums of Healthy Members
finance the sick. Can this model be extended to
other sectors as well? Illustrate with some
suggestions?
Yes, this model can be extended to the other sectors
Example: this could be used in the education sector as it could be used to pay the fees of the
children which cant afford to pay fees sometimes and by this way they could be helped and
building a better for children and country.
Another example: this could be used for providing some money for building toilets and
bathrooms inside the house so that women from poor families in the rural sector dont have to go
out for going to toilet and other purposes.

Oscm assignment no 2 (group) by arjun priya ram pratik

Case study no 2 timbuk2

1. The two Categories of Product that Timbuk2 makes and sell were Custom messenger bag and
Laptop bags.
The key competitive dimension that drives sales in the custom messenger bag includes:
Quality
Delivery Speed
Delivery Reliability
Specialization
Brand Identification
Service
The critical competitive dimension of Timbuk2 is the delivery speed of custom messenger bags.
The key competitive dimensions that are driving sales are high-quality custom, reasonable price,
high differentiated design, convenience in purchasing, quick delivery, flexible and very quick
new product introduction speed.
The Competitive priorities are the same for the new laptop bags as the custom messenger bags.
Their top competitive priority for the new laptop bags is quality. Since the new laptop bags are
made in China, the delivery speed would not be as quick as the custom messenger bags that are
made in San Francisco. New laptop bags still custom designed based on the specification of the
customer. The other dimension is the customization of the bag. Other than being able to get the
colors which customers prefer, the customers also get pockets that meet the unique needs of
customers has in mind. They can be successful with standardizing the laptop bags since the
purpose here is pretty well defined.
Even though the new laptops are manufactured in China, they are designed still in San Francisco,
where features and specifications that made Timbuk2 a competitive market. Based on the
informations, Timbuk2 claims that demand for the custom messenger bags are still high and
people are raving about the new laptop bags. Timbuk2 s competitive priorities for the new laptop
bags are as some of the custom messenger bags.

2. Comparison of assembly line in China to that in San Francisco along the following Dimensions:

Oscm assignment no 2 (group) by arjun priya ram pratik

DIMENSIONS

SAN FRANCISCO

CHINA

Volume or Rate of Production

More Orders

New Machines

Required skill of workers

Skilled workers High Salary

Skilled workers Less Cost Salary

Level of Automation

No new automation and

Technology
Good amount of Raw
materials and finished goods
inventory

More Automation and newer

technology
More amount of raw materials and
finished goods inventory compared
to San Francisco

Amount of Raw Materials and

Finished Goods Inventory

DIMENSIONS

SAN FRANCISCO

CHINA

Volume or Rate of Production

Low

High

Required skill of workers

High

Low

Level of Automation

Low

High

Amount of Raw Materials and

Finished Goods Inventory

High raw materials but no

finished goods

Low raw materials but may have

finished goods

Volume or rate of production: San Francisco getting more orders but china factory can make the same
and may be more products because of the new machines. The type of production used in both is mass
production where large amounts of standardized products are produced. In San Francisco standards are set
and dispatched in their website where the customers are given many configurations to choose from which
makes them appear to manufacture specifically to order. Batch production is also used in San Francisco
where an approach to design production is used. Customers are allowed to give their own specification of
the bag and its tailored to the exact specification leading to the production of individual designs in
limited quantities. Volume therefore is dependent on the orders placed by the customers.
In china, continuous production is used since the products are made in a similar manner. The products are
designed in San Francisco and produced in China providing a flow of the best features possible, quality
and value at reasonable price reducing the manufacturing cost. China has an increased capacity for
production and the laptop bag requires more labor and assembly. These requirements are met by the
Chinese workers and machinery. In comparison of China and San Francisco the Chinese factory can give
more products and adapt to the market demand since China has long standing customers

Oscm assignment no 2 (group) by arjun priya ram pratik

Required skill of workers: San Francisco workers are very skilled same like china workers and both of
them are hard workers but china workers less cost salary and china factory have more workers
In china the assembly is larger and hence more labor is required. China factory has employed a team of
hardworking people who may not necessarily be skilled. The nature of the work is repetitive and
mechanical hence special skills are not required as workers can learn from experience. Division of labor
is likely to be used since a number of sections must be set out in the factory.
In San Francisco, the assembly line is not repetitive since customized bags are produced. some skills are
therefore required to meet the process of putting together a different bag each time a set of specifications
are given by the customer. The work varies and incorporates more than one specific task hence the
workers have more technical skills. Design is done at San Francisco justifying the skills level to be higher
than that of China.
Level of Automation: Specialized machines were used to handle the complexities of the laptop bags in
China. The factory is expected to produce particular product with may have some slight variations making
it necessary to set up expensive machines to help in the production process for mass production. The new
bag is noted to be more complex to build hence requires a variety of expensive machines which makes the
setup cost to be high. San Francisco factory focuses on the custom messenger bags which may not depend
too much on automated systems. Complex automated systems cannot be set up since each bag is made
according to a given set of customer instruction.

Amount of Raw materials: The Chinese factory requires a massive flow of raw materials which are
processed to finished good inventory during a production run. The factory uses raw materials
continuously in making the laptop bags which means that raw materials are accumulated prior and during
the production run. Finished goods inventory therefore increases for a particular design until the end of
the process run. The raw material at a given time may comprise of only that of a particular design.

San Franciscos factory operates on customers order and therefore may have raw materials stored away
for longer periods. The raw material here may be composed of different materials depending on the offer
put on their website and may not necessarily be stored in large numbers. The factory can also have large
quantities in process inventory since they may have partly assembled products waiting further detailing.
The factory may have no finished good inventory since they are sent to their customers as soon after their
completion.

3. Diagram Depicting Supply Chain for the products sourced in china:

SUPPLIERS

WAREHOUSE
CHINA

WEBSITE

Oscm assignment no 2 (group) by arjun priya ram pratik

WAREHOUSE
SAN FRANCISCO

SALES OFFICE

CUSTOMER

The suppliers provide raw materials to the factory in China, which manufacture laptop bags out of the raw
materials. It serves as a ware house depending on the factory function while awaiting the entire order to
be completed. The production runs and after the order has been fulfilled, the bags are shipped overseas to
San Francisco to be stored in a warehouse. Customers can either order the bags through the Timbuk2
website or just purchase them directly from the retail outlet. For Internet orders, the bags may ship
directly from the warehouse.

Diagram Depicting Supply Chain for the products sourced in San Francisco:

WEBSITE

SUPPLIERS

FACTORY
WAREHOUSE

CUSTOMERS

SAN FRANCISCO

The factory sources the raw materials from different suppliers and places them in storage for easy access.
Customers exclusively place their orders through the website, which communicates the information to the
factory/warehouse. Since the raw materials are stored nearby, the factory easily assembles the custom bag
according to the specifications given by customers through the website. The factory/warehouse then ships
out the customized bags to the customers.

Oscm assignment no 2 (group) by arjun priya ram pratik

Supply Chain Process:

SUPPLIERS
RAW
MATERIALS
CUSTOMER

LOCAL
MARKETS

MANUFACTURI
NG
CUSTOMIZATIO

DISTRIBUTI
ON

INVENTORY

Costs to be considered when making the sourcing decision. Transportation costs - stock is transferred
every time from one location to another. A high cost is incurred in having the bags shipped from China
Storage costs-Timbuk2 has to account for all the expenses incurred when it stocks items, whether raw
materials or inventory, such as warehouse rental. Other costs include subsidiary costs such as processing,
handling fees, and taxes.