COMSATS Institute of Information Technology

Department of Management Sciences

OPERATIONS MANAGEMENT Final Project Report

LASANI FEED Poultry, Dairy and vegetable Scheme, Islamabad

Presented To:

Aziz-ur-Rehman Khan

Presented By: SHINING PATH

Ubaid ullah Jan CIIT/FA09-MBE-021

Saleha Satti CIIT/FA09-MBE-020

Mian Murtaza Shahid CIIT/FA09-MBE-011

Umer Naseh CIIT/FA09-MBE-014

Inam-ullah CIIT/FA09-MBE-006

DATE:07\01\2011

LASANI FEED

The Exordium

“In the Name of Allah the compassionate the Merciful”

All the acclamation and admiration is for Almighty Allah the most merciful, gracious and beneficent who is entire source of all the knowledge and wisdom endowed to mankind. We offer our humblest thank from the core of our heart to Holy Prophet Muhammad (Peace Be Upon Him), who is forever source of guidance and knowledge for the humanity.

“Praise to Allah, Lord of the creation, the Compassionate, the Merciful, the King of the Judgment day! Alone.”

(AlQuran)

ACKNOWLEDGEMENT

First of all we are thankful to Almighty ALLAH for giving us much cooperation and supporting parents who have given us this opportunity to study in COMSATS. I would like to thanks Sir Aziz Khan for giving us the confidence and opportunity to prove ourselves.

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LASANI FEED

Table of Contents

Objectives of the project---------------------------------------------------------------------------------4Lasani Feed Profile-----------------------------------------------------------------------------------------4Vision----------------------------------------------------------------------------------------------------------5Mission--------------------------------------------------------------------------------------------------------5Operations Strategies-------------------------------------------------------------------------------------6Different Competitors-------------------------------------------------------------------------------------6Productivity of Lasani Feed------------------------------------------------------------------------------7Forecasting---------------------------------------------------------------------------------------------------7Design/layout Strategies---------------------------------------------------------------------------------8Capacity Planning------------------------------------------------------------------------------------------9Location Strategies---------------------------------------------------------------------------------------10Recommendations----------------------------------------------------------------------------------------11Executive Summary---------------------------------------------------------------------------------------12Exhibit 1------------------------------------------------------------------------------------------------------13Exhibit 2------------------------------------------------------------------------------------------------------14

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LASANI FEED

OBJECTIVES OF THE PROJECT

The basic purpose of this project is to understand the operations of Lasani Feed and to know about their financial as well as other operations by applying our analytical and professional skills. This project will help the reader to understand and analyze the Operations of Lasani Feed.

-:Lasani Feed (History):-

In 2000 Mr. Inam Started his business of Venda (Cattle Feed) from a little Godown, he started his business at low level with a small investment. At the time he started his business few people are familiar with that product, people are unaware about the existence

of the product as well as the benefits of using this Venda.

First he targeted the local Dairy Farms (Local Market), and tried to convince the people by giving some samples, with the passage of time farmers realized the benefit of the Venda and due to this reason the demand for Venda increased. Since 2007 he is using the traditional tools which required a lot of effort as well as labor hours. In 2007 Mr. Inam made some advancement in his machinery, he installed the machines which are among the best machines made in Pakistan. As the new machinery increased his production / output, so his existing Godown was not enough to handle all the production output, he acquired another place for the storage of the bags. As the demand for the poultry was increasing day by day, the demand for chicken feed was also increased. Mr. Inam found a great chance to capture the market of Chicken feed by providing quality chicken feed

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LASANI FEED

as he did before in Cattle Feed.

The reason for the success is not only the quality product, but also the delivery service which Mr. Inam provides to his customers. (Exhibit 2)

Mission Statement

We are committed to producing & marketing best quality feed at lowest costs to customers who look for consistent quality feed. Unlike other feed producers in the state, we establish & maintain long term, mutually rewarding relationships with our customers.

Vision Statement

To be a role model for feed production operations

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LASANI FEED

-:OPERATION STRATEGIES OF LASANI FEED:-

Differentiation Strategy of Lasani Feed:-

They are involved in Mass Customerization because each product is produced according to the specifications of each customer. That’s why they are different then their other competitors.

Low Cost and High Quality Strategy of Lasani Feed:-

Lasani feed is producing Feed at low cost because of some subsidiaries by the Government of Pakistan on Electricity, Taxes.

Quick Response Strategy of Lasani Feed:-

Lasani Feed has an edge of quick response to their customers because they have their factory nearby forms.

Different Competitors of Lasani Feed in Islamabad

Dr. Feed

Shahdab Feed

Sona Feed

Super Feed

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LASANI FEED

-:Productivity of Lasani Feed:-

Productivity of Lasani Feed Per Day:-

Units produced = 300bags of cattle feed per day

Labor hrs = 7 hr per day

Productivity = 300 bags per day / 7 labor hrs per day

Productivity = 43 Bags per labor-hours

Productivity of Lasani Feed Per Day:-

Units produced = 300 bags of cattle feed per day

Labor = 7hrs x 6 workers = 42

Daily Consumption of Material = Rs. 200,000 for

Energy = Avg. daily Consumption 15000 / 30 = Rs. 500 daily

Misc. (Workers Refreshment etc.) = Rs. 500

Productivity = 300 bags per day / 40+200,000+500+500

Productivity = .0015 bag per rupee

Forecasting:-

Lasani feed have no forecasting technique. They Produce Venda on Demand of their customers.

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LASANI FEED

-:Design/Layout Strategies:-

-:Warehousing and Storage Layout:-

Warehouse

(Exhibit 1)

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ENTRY / EXIT

PLANT 1PLANT 1

PLANT 2PLANT 2

PLANT 3PLANT 3

LASANI FEED

-:Capacity Planning:-

-:Design Capacity of Lasani Feed:-

*Machinery is designed to produce 60 bags of per hour

Input = 1 shift, 7 hrs and 7 days

Design to produce = 60 bags per hr

Design Capacity = (1 day x 1shift x 7 hrs per day) x (60 bags per hr)

Design Capacity = 7 hrs x 60 bags per hr

Design Capacity of Lasani Feed = 420 Bags per day

-:Utilization of Lasani Feed:-

Actual output per week = 300 bags

Design Capacity = 420

Utilization = 300 / 420

Utilization = .7143 x 100 = 71.43%

-:Efficiency of Lasani Feed:-

Actual output = 300 bags per day

Effective capacity = 380 bags per day

Efficiency = 300 / 380

Efficiency = .7895 x 100 = 78.95%

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LASANI FEED

-:Location Strategies:-

Location:-

“A place where business or factory physically exist”

-:Location of Lasani Feed:-

Lasani Feed is located in Poultry, Dairy and Vegetable Scheme Chak Shehzad, Islamabad.

-:Main Distribution Areas Of Lasani Feed:-

Lasani Feed distributes Feed in different areas. Following are the main distribution areas of Lasani Feed.

1. Local Forms 3. Chakwal

2. Peshawar 4. Gujjar Khan

5. Talagang

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LASANI FEED

Recommendations :-

Currently the machines used by Lasani Feed is no doubt one of the best machines which are being used in Pakistan and is producing a good quality of products but he still can improve his production by importing a quality machines that can have unique features which are not available in the machines in use. By using imported machines he can further reduces his labor cost as well as energy and labor hours.

Proper training facility should be provided to labor.

The company must keep safety measures for its Labor Staff as well as Products.

In order to develop business Lasani Feed, must have well equipped business premises as well as trained Labor.

Company is enjoying good market reputation even though the name of the company is not printed on the sacks (Bags), The company can capture a major part of market if they have proper means of communication and advertisement.

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EXECUTIVE SUMMARY

This project is undertaken to analyze the operations of Lasani Feed and then to measure their performance in accordance with Operations Management Strategies and Policies. For this purpose various aspects, techniques and financial tools are used in this project. The tools used in this report are as follows:

A. Operation Strategies

B. Productivity Tools

C. Layout Strategies

D. Capacity Planning

E. Location Strategies

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Exhibit 1 :- Design Layout and other pictures.

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EXHIBIT 2:- Business Owner Mr. Inam Ullah

Other Pictures of Lasani Feed and Farm

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