Yams Handicrafts

Introduction;
 We have selected a business named Yams handicrafts which sells customized
earrings online. It is a small business owned by a girl which is in its developing
phase. It deals in hand made traditional earrings and provides you options to
customize your earrings completely according to your desired design style and
color. Yams handicrafts offers different pretty samples of earrings and you can
choose from them or can request for any customization in the shown samples. One
can also order completely new design according to his choice.
 It works on Engineer to order, so basically manufactures the product on orders
of customers offering the option of customization.
 Keeping in view the concept of volume and variety, this business is concerned
with high variety because it is a customization based business and it manufactures
different varying products according to choice of customers .Volume is low
because a product is made only upon order of customer so there is no concept of
bulk manufacturing.

Strategy of Yams handicrafts;

Regarding to strategy of Yams Handicrafts, we asked the following questions.
1. Where do you compete?
We basically compete in handmade Jewelry in online medium. We have to
compete with market as well which is difficult because you have to compete with
both mediums.

2. What unique value do you bring?

We do our best to provide maximum value to the customers keeping in view the
choice of customers .The unique value that we bring to customers is customization
which they cannot get in market. For example, they can get earrings in market
according to their choice but they may want some variations like different color in
a specific design which might not be available. Providing the customers, what they
want, which is missing in market is the unique value that we bring.

3. What resources and capabilities do you utilize?

4. How do you aim to sustain unique value?

Application of OM decisions on Yams Handicrafts;
Here is just a brief overview of how Yams Handicrafts apply different operation
management decisions to run their business effectively and efficiently;
 Design of Goods: The designs of goods depend upon the choice of customers.
The size, style and color selection are the options which are given to a customer.

 Managing Quality: Yams Handicrafts promises to deliver value to customer

through providing the best quality product and service. It uses finest material that
is durable and long lasting. Also it is improving its order placement and delivery
system day by day.

 Process design: Taking volume and variety into consideration

 Layout strategy:

 Supply Chain Management: Yams Handicrafts pays a lot of attention to supply

chain management as it takes into account and maintains an appropriate balance
between the forward and backward flow of information (updates regarding
products and feedback from customers), material (Raw material and finished
products) and cash (Investment and Return on Investment, Profits etc.)

 Inventory: Based on engineer to order ,Yams Handicrafts keeps a limited amount

of inventory such as threads , beads and rings which are a must use in each
product and acquires the rest of material according to order of customer.

 Maintenance: As far as the maintenance is concerned, Yams Handicrafts apply

the maintenance policy as the product damaged is during delivery than Yams
Handicraft is held responsible and will replace the product. It is not responsible for
any damage done by customer to the product after delivery.

Operations
The operations that we chose to study in detail are
 Production
 Inventory
 Product design

Inventory:
 Raw material: Yams handicrafts is a small business and does not hold a lot of
inventory. It stores the basic raw material such as
 thread,
 loop
 Beads and stones of multiple colors.
These all basic items are purchased from a local market. As this is a small home
based business, so purchasing process is quite simple.

 Storage: This business deals in manufacture of small sized products so they don’t
need any extra space for storage and hence storage cost does not incur. Also
these items are not perishable so they can be stored for longer time period. The
loop of the earrings cannot be stored for so long because it may get rusted after a
specific time period. The storage of products in inventory is beneficial because
upon sudden order you don’t have to rush to market to buy the material, you have
stored material which you can utilize.

 Work in process:
 Finished goods:
Production
 Planning: In order to create a product, Yams handicrafts first prepares a plan that
demonstrates how to create a product. As choice of each customer is different, so
plans are formed accordingly. For creating a unique product according to design
proposed by customer, Yams handicrafts has to plan effectively and efficiently to
meet the customer expectation.

 Routing: As this business is based on handmade traditional products, so it does

not require any kind of machinery. But still the product has to go through some
specific and sequenced paths and processes to reach its final shape. The
sequence of the processes cannot be altered. The routing process helps Yams
handicrafts to save time by working upon the predefined paths.

 Scheduling: Scheduling is one of the most important

 Dispatching:

 Follow up:

 Inspection:

 Over production: This is done in order to keep some hot selling products in
inventory so that they can be delivered as soon as possible. This is done to achieve
efficiency.