Importance Of Operations Management

Published Date: 02 Nov 2017

The following report prepared gives an insight on CG WAI WAI production process and how it uses operation management to keep pace with external environment (technological development, competitors etc.). The CG Group is one of the highly valued Companies in Nepal who has branched out in various business sectors. This report focuses on WAI WAI manufacturing process. But every process requires people and a plan for execution. Operation Management ensures that product are manufactured and delivered in its right quality and quantity through its four functions: marketing, finance, operation and human resource. Through these processes CG Group achieves its objectives such as quality, speed, flexibility and dependability. To maintain the consistency of the product, operation strategy will use different perspective to make decisions, check whether they have enough resources and capabilities to carry on task and whether the product matches the current market and customer’s requirement. A product design will take all of this information and design the process of the product. This process is important as it is responsible for not only matching product with customer requirement but also to ensure they are produced at low cost (good quality) to achieve return on investment. Once the final designs are selected companies now will make planning and control decisions. In this case, decision regarding availability of finance, marketing strategy to create curiosity, hiring employees for research and development, creating relation with suppliers and ensuring machines are in good condition to carry out production. These are generally included in Supply Chain Management whose objective is to achieve lower cost without compromising the quality of the product. Quality consists of reliability, durability, feature, reliability, performance, safety, serviceability etc. Information system is an integral part of the organization, through this system company is able to collect, store and distribute information required to make decisions. There are different types of information system: one to keep track of everyday activities, another to integrate knowledge into the organization, and the last two are used by middle and senior management to plan controlling activities and make a long term decisions. However, there is a system within a system although it serves the similar purpose as the main system but it is equally important (Decision and Executive Support System) it allows managers to respond to problems whose solutions has not been pre-defined. Also in order to gain competitive advantage a company uses various systems such as ERP: allows business to be efficient by managing operation such as human resource, planning, finance etc. CRM is used to attract new and retain old and loyal customers. SCM has two functions Upstream is used to receive material from suppliers while Downstream is concerned with distributing product to customers. But no amount of careful planning controls or systems are beneficial if the employees are not motivated enough to work hard and this is achieved through job design. Job design is concerned with designing task in consistent with employees need, skills and requirement. A company can motivate employees by allocating more tasks this is called job enlargement. Job enrichment is when more responsibility is delegated to employees so that they feel less monotonous. Job rotation is not very helpful to motivate employees however they do get to learn new skills. Therefore, with proper design company will achieve quality, speed, dependability, flexibility and cost.

Table of Contents

List of figures

Figure 1: Operation Process…………………………………………………………….10

Figure 2: Operation Management Function……………………………………..12

Figure 3: Performance Objectives of an Organization………………………14

Figure 4: Perspective of Operation Strategy…………………………………….16

Figure 5: Supply Chain Management……………………………………………….23

Figure 6: Types of Information System…………………………………………...26

Figure 7: Information Connected with different system…………………..29

Figure 8: Wai Wai Supply Chain……………………………………………………….32

Figure 9: Key Elements of Job Designs……………………………………………..34

List of Acronyms

CG Chaudhary Group

CUG Ganga Devi Chaudhary Udyog Gram

FUDCO Chaudhary Food Complex

STARLEC Steel and Electronics Complex

CAD Computer Aided Design

DSS Decision Support System

ERP Enterprise Resource Planning

CRM Customer Relationship Management

SCM Supply Chain Management

Introduction

1.1 Introduction

The Chaudhary Group is one of the most successful business enterprises in Nepalese Industry. As a matter of fact the Company’s President and Managing director Mr. Binod Chaudhary has been named one of the first billionaire of Nepal by Forbes list 2013. The Company was initially founded by Late Mr. Bhuramull Chaudhary in 1933 as a small shop selling textile goods imported from various parts of India. Over the years the Company has branched out in different areas including healthcare, education, retails, hotels, telecom, entertainment etc.

The CG has successfully grown over last 80 years standing today with a total of over 40 Companies under its umbrella and investment outlay of over $1 Billion. (http://www.chaudharygroup.com/index.php/about-us/history.html)

The CG production center has been divided into 3 groups.

1. CUG

2. FUDCO

3. STARLEC

The CG FUDCO is a large production complex located in Bhaisepati, Lalitpur and offers a true quality product to its customers. It was the first Nepalese noodle company to be awarded ISO (http://www.chaudharygroup.com/index.php/production-centres/fudco-chaudhary-food-complex.html). FUDCO is divided into four main sub-units:

Thai Foods Pvt. Ltd

Quick Foods Pvt. Ltd

Gold Beverage Nepal Pvt. Ltd

TQM and R&D Centre

Task 1:

1.2 Operation Management

Operation Management is the activity of managing the resources which are devoted to the production and delivery of goods and services (Nigel Slack S. C., 2007). It means every organization produces goods and services therefore require a proper management or operation managers to bear the responsibility of production and its functions are performed accurately.

An operation is often defined as a transformation process (Roberta S. Rusell, 2007) that is a function or system that transforms input into output. As shown below:

Figure 1:

(http://cnx.org/content/m35439/latest/)

The figure shows how inputs are transferred into outputs. Transformation system indicates how well the company meets the need and desire of the customer. This system is very important and all companies must maximize their transformation system to meet the customer needs (http://cnx.org/content/m35439/latest/)

1.3 Operations Management Function

The four primary functions of the firms are marketing, finance, operation, human resource. Operation is the core of the organization as it interacts with other departments to produce goods and services. For example: marketing provides information about customer’s expectation, the current trend and feedback on improving the quality of product. In return operations provide information on availability of goods, delivery time etc. (Roberta S. Rusell, 2007)

In CG they initially produced non-vegetarian noodles; however after much research and feedbacks from customer they started producing vegetarian noodle. See in Appendix A

Also operations provide information regarding payments to finance department. They pay suppliers, workers and approve on finance required for product improvement research. For personnel need they rely on human resources to recruit, train, evaluate and to assist with legal issues, union activities and so on. (Roberta S. Rusell, 2007)

Figure 2:

(Roberta S. Rusell, 2007)

1.4 Importance of Operations Management

An organizations success depends on its efficient and effective operations i.e. if their operations are effective then they can produce goods that satisfy the need of the customers. Therefore, an effective organization can give the following advantage to the business. (Nigel Slack S. C., 2007)

Reduction of cost in production

Better quality goods and services increasing customer satisfaction and revenue of the organization

Better utilization of available resources reducing the amount of investment needed for production

Provide a basis for future innovation by building a solid base of operation within the business (Nigel Slack S. C., 2007)

1.5 Performance Objective

As per (Nigel Slack S. C., 2007) there are five performance objectives that can be used to check whether an organization’s operation is achieving the intended results. They are as follows:

Quality : The company’s ability to produce goods in consistence with customers expectation (Nigel Slack S. C., 2007)

Speed : Ability to perform the task quickly so that the lead time is shorter between when demand is made and when company delivers it to them (Barnes, 2008)

Dependability : Delivering goods and services in a condition that was initially promised to a customer (Barnes, 2008)

Flexibility: Ability to change the operation process i.e. the way they were doing, how they were doing it and when it is doing it. (Nigel Slack S. C., 2007)

Flexibility can comprise of the following four aspects –

- Ability to change the volume of the production (Barnes, 2008)

- Ability to change the time taken to produce (Barnes, 2008)

- Ability to change the mix of different products or services produced (Barnes, 2008)

- Ability to innovate and introduce new products and services (Barnes, 2008)

Cost : Ability to produce goods and services at a cheaper price but at the same time able to price them appropriately in order to allow return to the organization (Nigel Slack S. C., 2007)

By excelling at one or more of the performance objectives an organization can gain a competitive advantage over its competitor. Refer to the figure below:

Figure 3:

1.6 Operation Strategy

Strategy is a common vision that unites an organization, provides consistence in decisions, and keeps the organization moving in the right decisions. (Roberta S. Rusell, 2007)

Operation Strategy is concerned with what the operation has to do in order to meet current and future challenges and also is concerned with the long term development of its operation resources and processes so that they can provide the basis for a sustainable advantage (Lewis, 2011)

The content of operations is the specific decision that sets the role, objective and activities of the operations. And the processes are the method that is used to make specific decisions. (Nigel Slack S. C., 2007)

The four different perspective of operation strategy are:

Figure 4:

(Barnes, 2008)

1.6.1 Top Down: It is the strategy that an organization uses to realize its business strategy, which includes the kind of business group wants to be in, its operation process, and allocation of cash etc. (Nigel Slack S. C., 2007) e.g.: CG decided to expand their consumer market from non- vegetarian to vegetarian. So they took feedbacks, conducted research and when the result indicated Nepalese Vegetarian community comprised of over 20% of the population. They grasp the opportunity to provide a better quality product with a fast and reliable service. (It has a capacity of producing over 300 cartons of noodle every day) (http://www.chaudharygroup.com/index.php/production-centres/fudco-chaudhary-food-complex.html)

1.6.2 Bottom Up: This operation strategy emerges through decisions taken over time. This can be a part of a series of continuous improvement rather than a one off large technological changes. Under this, organization learns through its experiences, developing and enhancing its operational activities as operation managers try new things it is often even known as learning laboratory (Leonard-Barton, 1992). E.g. if Chaudhary group realizes that the new vegetarian product has been widely accepted and there are consumers who are willing to pay a premium price for the pack of a noodle they might decide to open a separate factory for its production which will focus on profitability for the organization.

1.6.3 Market Requirement: Understanding the market is essential for any business to survive. An operation that has been performed without any thorough research of the market will not survive in a long term. Without the knowledge, business will not be able to determine if its operation is achieving the five important performance objectives. (Nigel Slack S. C., 2007)

(Hill, 1985) Identifies two possible competitive criteria in any market. Market qualifying criteria are the factors customers consider before making a purchase and order winning criteria are the factors in which customers finally makes their purchase decision (Barnes, 2008). e.g. in the case of Wai Wai customer might opt for a vegetarian noodle because it goes with their diet however other might choose them because it provides them with a different taste.

1.6.4 Capabilities of Operation Resources: This strategy is based on a particular influential theory of business strategy- the resource based view. It means that the way company acquires, inherits or develop its resources will have a significant impact on its operation over a long period of time. (Nigel Slack S. C., 2007). Thus, the process of strategy development should be based on current operational capabilities and how these can be improved in near future. (Barnes, 2008). Six resources such as tangible resource, knowledge resource, skills and experience, system and procedural resource, cultural resource and values, network resources and resources important for change are compared against value, sustainability and versatility and resources that score high are considered to be important (Barnes, 2008). These are generally taken as a competitive advantage of the company and they might use these to deal with customer or competitors in the future.

1.7 Product Design and Process Design

Design is the activity which shapes the physical form and purpose of both products and services and the processes that produces them. (Nigel Slack S. C., 2007)

Product design is extremely important in an organizations process. Without a design a company cannot decide on its operation, production, processes etc. Every organization has an objective therefore a product should be designed in such a creative way that it serves organization purpose for a long period of time. A product design is usually based on providing value to the customer, return on investment and competitive advantage over its rival (S. Anil Kumar, 2009)

Product design defines products characteristics of:

- Appearance

- Materials

- Dimensions

- Tolerance

- Performance Standard (Sanders, 2007)

And service design specifies what physical items, sensual benefit, and psychological benefits the customer is to receive from the service. (Roberta S. Rusell, 2007)

Product design and process design are interrelated (Nigel Slack S. C., 2007). Therefore, overlapping the activities of product and process design is very beneficial in the manufacturing process. An effective design process includes:

Matching product or service with the customer’s requirement.

Meeting customer requirement in the least costliest manner

Reducing time required to design a product or service and

Minimize the revisions necessary to make a design workable

(Roberta S. Rusell, 2007)

This process usually starts with generating an idea of a product through research and feedback. The second stage is product screening which includes market, economic and technical analysis.

E.g.: Initially CG produced vegetarian noodle in small quantity and sold them at low cost. They collected customers and shopkeeper’s feedback to ensure market for such product existed. In second stage they looked at the estimates of production and development costs and compared them to estimated sales volume. Quantitative techniques such as cost/benefit analysis, net present value or internal rate of return are commonly used to evaluate the profit potential of the project (Roberta S. Rusell, 2007). In preliminary design, designers will then build a prototype (e.g. add extra spices; change the packaging style and so on until a viable design is determined. Lastly, CAD and Simulation Modeling can be used to produce a computer-based prototype of the product design. See product layout in Appendix B.

1.8 Planning and Control

Planning and control are different but closely related. Planning is usually concerned with activities happening in the future whereas control looks at the activities happening right now. A plan may not always be executed in an exact way it was planned, in such situation control come in as it copes with such changes. There are different kinds of planning and control: short term, medium term and long term. And they each serve different purpose of the company’s objectives. (Nigel Slack S. C., 2007)

Operation Control in CG:

1.8.1 Accounting and Finance:

They collect records and process information needed to make management decision. E.g. Availability of Finance for production or is the product achieving desired return on investment? (http://www.poshan.coote.us/projects/case_study_CG.pdf)

1.8.2 Marketing:

CG uses media such as newspaper, radio, television, famous celebrity to create awareness of their product. Also the introduction of gifts (such as cars, bikes, phones) has helped Wai Wai to increase its popularity. (http://www.poshan.coote.us/projects/case_study_CG.pdf)

1.8.3 Purchase and Distribution:

Focus on purchasing good quality material at cheaper price for production. Distribution department is more focused on creating chains of network. They have implemented Retail Chain Management to strengthen their network. (http://www.poshan.coote.us/projects/case_study_CG.pdf)

1.8.4 Research and Development:

Focused on creating different taste. E.g. changing or adding new spices to expand the market. (http://www.poshan.coote.us/projects/case_study_CG.pdf)

1.8.5 Human Resource:

Responsible for allocating right task to right people. E.g.: Non-vegetarian noodle is more popular so allocating more workers in that department. (http://www.poshan.coote.us/projects/case_study_CG.pdf)

1.8.6 Engineering:

Responsible to keep machine running by examining them and giving input to improve its efficiency. (http://www.poshan.coote.us/projects/case_study_CG.pdf)

1.9 Supply Chain Management

"Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements" (http://highered.mcgraw-hill.com/sites/dl/free/007298239x/450202/Chapter_1.pdf)

It means each department should be efficient enough to understand customers’ needs and deliver them in same quality at lower cost. The lower cost is achieved by owning or controlling all different stages of supply chain. E.g. CG runs different businesses therefore the material required to produce noodle i.e. flour comes from their own land, the production is carried out in their own factory and all their marketing is carried out by their entertainment sector and delivery is done by the trucks they own therefore the transaction of cash is carried out in different braches but within a same company. This way they have been able to maintain the quality of product and at the same time achieved a lower cost.

Figure 5:

(http://www.google.co.uk/imgres?imgurl=https://wiki.aalto.fi/download/attachments/25833231/diagram.bmp%3Fversion%3D3%26modificationDate%3D1226319032000%26api%3Dv2&imgrefurl=https://wiki.aalto.fi/display/TU22/5.%2BSupply%2BChain%2BManagement&h=500&w=1250&sz)

1.10 Quality Management

"The consumer is the most important part of the production line. Quality should be aimed at the needs of the consumer, present and future" (W. Edwards Deming). Therefore, product and service quality should be based on what customer wants and is willing to pay for it. (Roberta S. Rusell, 2007)

These are the following quality consumer looks in a product:

Performance

Feature

Reliability

Conformance

Durability

Serviceability

Aesthetics

Safety

Other perceptions

(Roberta S. Rusell, 2007)

In Wai Wai production plant they have their own quality control department that looks after the quality of the product. They use statistical quality control like sampling method (checking weight, color, taste) to detect quality level and correct them if they deviate from the expected result. (http://www.poshan.coote.us/projects/case_study_CG.pdf)

Task 2:

2.1 Information System

Information system is the process of collecting, storing and distributing information that helps management to make decisions about business. Business needs different types of information to make decisions and as a market is growing and numbers of competitors increasing many are opting for enterprise wide system that integrates information and business processes from different functional areas (Kenneth C. Laudon).

2.2 Types of information system in an organization:

2.2.1 Operational Level Systems: This level keeps track of day to day activities and transaction of the organization. E.g. cash receipt, deposit made, payroll, sales, material purchased etc. (Kenneth C. Laudon)

2.2.2 Knowledge-level Systems: It integrates new knowledge acquired into the business making the function more efficient and supports data workers of the organization (Kenneth C. Laudon).

2.2.3 Management Level Systems: These activities are performed by middle level managers who bear the responsibility of controlling, monitoring and decision making of the business (Kenneth C. Laudon).

2.2.4 Strategic Level Systems: This level is operated by senior management who is focused on the long terms goals of the business. I.e. their main focus is to match the external environment with the current organization capabilities to ensure business can survive and thrive in any situation (Kenneth C. Laudon).

Refer to figure below:

Figure 6:

The following are the six major types of systems found in each organizational level:

Transaction processing systems: This system serves at operational level. At this level goal, resources and tasks are defined. Basically, TPS is a system that performs and records day to day routine transaction required to carry out necessary business performance (Kenneth C. Laudon)

Knowledge Work and Office Systems: It is the system that helps knowledge and Data workers to integrate new information in the organization (Kenneth C. Laudon).

Management Information Systems: This system serves the managers by providing them with current and historical reports or records of the organization that are basically needed to make business decisions (Kenneth C. Laudon).

Decision Support Systems: This system helps managers to deal with problems whose solution is not pre-defined. DSS is more analytical and powerful thus can analyze large number of data into a form where they can be analyzed by the decision makers. The system is user friendly (Kenneth C. Laudon).

Executive Support System: The system serves the senior managers who then addresses problem for which a rational judgment and evaluation is required. Basically, they use the system to find a solution for a problem for which no agreed procedure has been defined (Kenneth C. Laudon).

2.3 Importance of Information System for Operational Excellence:

Information systems collect data from various resources and integrate it into the system so that it is available for decision making for the different departments within the organization. In other words, it helps business to reach operational efficiency by doing things better, faster and cheaper (Russell, 2009). There are different functions within an organization and each of them serves a purpose to reach operational efficiency. E.g.

2.3.1 Sales and Marketing Systems: Marketing is concerned with identifying customer needs through research and feedback to develop a product. A sale is concerned with taking orders, purchasing material and selling product and services. An information system such as use of computer or internet to take such orders and feedback reduces the number of staff and time required for a research. Therefore, is more efficient for a business purpose (Kenneth C. Laudon).

2.3.2 Manufacturing and Production Systems: Feedback and suggestion acquired are integrated into the system which is then used by this department to plan and develop a product and services. Since time is the essence here, so if information is upgraded in advance products can be matched with customer’s expectation thus gaining advantage over the competitors (Kenneth C. Laudon).

2.3.3 Finance and Accounting Systems: This function keeps track of firm’s cash, stock, bond investment. They are responsible to keep records of cash receipt, payroll, depreciation, payment to supplier etc. They provide information on availability of cash to finance the new venture and if it’s lacking find an alternative source to invest. Also they keep track of whether the firm is getting return on their investment (Kenneth C. Laudon).

2.3.4 Human Resource Systems: They maintain record of employee’s performance, skills, training. In order to allocate right work to right employees they constantly look for ways to improve employee’s skills through training to increase operational efficiency (Kenneth C. Laudon).

The figure below shows how information system is connected with different functions:

Figure 7:

Finance and Accounting

Centralized Database

Sales Human

And Marketing Resources

Manufacturing and Production

2.4 Type of Information System and its Competitive Advantage:

2.4.1 Enterprise Resource Planning (ERP)

ERP has been defined as "a complete enterprise-wide business solution. The ERP system consists of software support modules such as marketing and sales, field service, product design and development, production and inventory control, procurement, distribution, industrial facilities management, process design and development, manufacturing, quality, human resources, finance and accounting and information services. Integration between the modules is stressed without the duplication of information" (Nigel Slack S. C., 2007). Its main objective is to give access to information sharing, planning, decision making in an enterprise- wide basis. ERP is computer software that allows business to manage its various operations such as finance, human resource, planning, and order fulfillment. Thus, allowing company to be more efficient by reducing delivery time, staff requirement, improved customer service etc. Thus, efficient operation means happier and loyal customer achieved at a lower cost which could definitely be seen as an advantage from its competitors (http://www.inc.com/encyclopedia/enterprise-resource-planning-erp.html).

2.4.2 Customer Relationship Management (CRM):

It is concerned with satisfying the customers need and then providing good quality and responsive services (R. Kelly Rainer). In today’s competitive environment business do understand that in order to survive they must treat their customers as their long term assets, and this is achieved through CRM (Kenneth C. Laudon). CRM helps attract new and build, retain long term customers as it is more expensive to get customers back once they switch to other product or services (R. Kelly Rainer). A good CRM system helps company identify loyal customer, what they desire and need from us and how the company can achieve it. By understanding them company can offer more services thus fulfilling their needs and retaining their loyalty for a long term. This is definitely a competitive advantage as retaining old customer is much cheaper compare to getting new customers. And company usually generated more than 80% of its revenue through its old customers who will not usually change their preference in long term (Kenneth C. Laudon). e.g.: Wai Wai has retained its old customer by being a nutritional snack.

2.4.3 Supply Chain Management (SCM):

The system is concerned with acquiring materials, turning them into product and distributing them to the customers.

Upstream: Suppliers deliver materials needed by the company to produce goods and services. (R. Kelly Rainer).

Downstream: Organization selects carrier vehicles to distribute product to the customers (R. Kelly Rainer).

Increasing number of companies is opting for websites to trade and receive orders from the customers. The competitive advantage of SCM is increased sales through online orders, reduction of inventory level as a company is able to match supply to demand and fast delivery service to customers.

Refer to figure below:

WAI WAI Supply Chain

Figure 8:

Upstream

Contract

Suppliers

Customer

WAI WAI

Retailer

Distributor

Contract

Suppliers

Downstream

Task 3

3.1 Job Design

The process of job design has been defined as, "specification of the contents, methods, and relationships of jobs in order to satisfy technological and organizational requirements as well as the social and personal requirements of the job holders." (Buchanan, 1979)

In simpler terms, job design involves structuring individual’s work in consistent with the work environment and technology they use. (Nigel Slack S. C., 2007)

The main purpose of job design is to increase employee’s motivation and productivity.eg: reduction in training cost, employee turnover, production of good quality goods and services can be seen as increase in productivity whereas employees can be motivated by being provided a healthy working environment, appreciation of work, promotion, bonus etc. (http://edweb.sdsu.edu/people/arossett/pie/Interventions/jobdesign_2.htm).

Job Design must be economically, behaviorally and technically feasible to both organization and its employees.

Refer figure 9 for different key elements of job designs:

Figure 9:

(http://www.mbaknol.com/operations-management/meaning-of-job-design/)

3.2 Importance of Job Design for Employees Motivation

Job design should take into account an employee’s desire to fulfill their need for self-esteem and personal development. By doing so an organization will be able to achieve two things first a quality working environment and secondly a higher motivated employees i.e. if the job is satisfactory and in line with what the employees desire then they will be happy and motivated to perform better in their respective fields. (Nigel Slack S. C., 2007)

There are different job design methods through which an organization can increase employee motivation. They are:

3.2.1 Job Enlargement: It involves allocating extra tasks that does not require skills to make it less monotonous. E.g. in a production of Wai Wai suppose there are different teams responsible for mixing, cutting, souping the noodle. However if the number of teams were cut down to few and one individual assigned to different task he would be less likely to perform the same task over and over again.

3.2.2 Job Enrichment: It involves employees taking responsibility that is usually delegated to management meaning more responsibility, greater autonomy and control over the job. (http://edweb.sdsu.edu/people/arossett/pie/Interventions/jobdesign_2.htm) E.g. employees involved in Wai Wai production could take responsibility of quality management, maintenance of machines, decision regarding change of suppliers etc.

3.2.3 Job Rotation: It involves rotating employees into different departments so that they get better knowledge of the operation. It contributes less to employee motivation however they gain an insight and learn something new in the process.

3.3 Use of Job Design to gain the performance objectives:

As discussed above job design is crucial to achieve employee motivation. A motivated employee is the finest employee as they will always be willing to learn and modify their work process for the good of the company as well as their own personal growth. However, beside achieving higher productivity and employee motivation job design also has an objective to achieve the following five performance objective:

3.3.1 Quality: Job design will ensure right person has been assigned the right work that way there will be less error and employees themselves will be open to enhance the quality of product.

3.3.2 Speed: Different departments are created consisting employees with specific knowledge therefore if any problem arises e.g. machine breakdown then repair department can quickly respond to the problem and solve it.

3.3.3 Dependability: A purchase department with sufficient knowledge and contact with customer will ensure supply of materials is constant and of good quality.

3.3.4 Flexibility: Job Design can affect the ability of the operation to change the nature of its activities. It means change in product mix, services, delivery system are mostly dependent on job design. Employees who have been through job rotation, enlargement, and enrichment may find it easy cope with such changes. (Nigel Slack S. C.)

3.3.5 Cost: Elements described above will have an impact on job design and productivity (Nigel Slack S. C.). E.g. If production process runs smoothly then an organization can produce goods at low cost and at the same time charge a premium price to get return on investment.

4.1 Conclusion and Recommendation:

After a thorough research of CG Wai Wai manufacturing I can say that the company has used the best material, supplier and system that there is available in their production process. With these they have been able to serve well to customers a proof of this is that it is one of the highly valued and popular noodle making company of Nepal. They have an effective production system that helps them to minimize the cost of production thus more profit to the company. Their marketing strategy is good and location is supportive of their production needs. Although they could make it more efficient by reducing the number of staff in the production facility. Increase employee motivation by sending them abroad for training. And by having a more hand on approach in providing services such as creating a department who will handle customer complaints, feedback etc.