KULLIYYAH OF ECONOMICS AND MANAGEMENT SCIENCES

OPERATION MANAGEMENT

(MGT 4010)

GROUP PROJECT:

OPERATION STRATEGY FOR MANISHENNA

PREPARED BY:

AFIFAH NABILAH BINTI MOHAMAD SAFEI 1321976

LAILA SYAHIRAH BINTI GHANI 1321148

NUR FARAH SHAMIMI BINTI MOHD SUKRI 1327814

SHARIFAH SHAHIRAH BINTI SAYED HASSAN 1221572

SECTION: 2

SESSION:

SEMESTER 1, 2016/2017

LECTURER:

MADAM WAN ROHAIDA WAN HUSAIN

SUBMISSION DATE:

14TH

DECEMBER 2016

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CONTENTS

EXECUTIVE SUMMARY .................................................................................................................... 3

GENERAL INTRODUCTION ............................................................................................................... 4

OPERATIONS ....................................................................................................................................... 5

1) QUALITY MANAGEMENT ................................................................................................... 5

Quality Management Approach .................................................................................................... 6

Islamic Perspective on Quality Management ............................................................................... 6

2) LOCATION .............................................................................................................................. 7

Factors to consider ........................................................................................................................ 7

Service location strategy ............................................................................................................... 7

Islamic Perspective on Location Management ............................................................................. 8

3) SUPPLY CHAIN MANAGEMENT ........................................................................................ 8

Supply chain for ManisHenna ...................................................................................................... 9

Sourcing Strategy: Make and Buy ................................................................................................ 9

Islamic Perspective on Location Management ........................................................................... 10

CONCLUSION ..................................................................................................................................... 11

REFERENCES ..................................................................................................................................... 12

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EXECUTIVE SUMMARY

Manishenna is a business that provide a products and services to customer which is make a

henna (dip henna and cone henna) and designing it to the customer’s hands. Customers can

choose any design they want through any google images or booklets and show it to the

owner so that they can have their own design henna in their own hands. The owner of this

business, supplies the henna from the suppliers and she also added her own secret recipe in

the henna so that it may last longer and the colour of henna is bright red. Besides, she works

alone as a worker and the owner of the business. The owner cannot make mistake and mess

up the drawing since the main attraction of the Henna drawing service is the quality of the

drawing itself and it can make the customers not trusting her works because once she design

a henna for the customers’ hands, they cannot do anything to erase it and it may take a

longer time to disappear. Thus, quality and performance is very important in this business in

order to attract more customers and increase the profit of the business. In addition, a

strategic location also one of the way the way to attract customers. If the location is

strategic, there will be a lot of customers who are willing to use this services especially

during public holiday season where there are many wedding and engagement day.

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GENERAL INTRODUCTION

Manishenna is a service business which make a service henna to the customers. The

owner of the business is Shimanisham binti Ruhaini, IIUM students and currently 3rd

year

student who is taking Bachelor in Economics. She started the business in year 2014 with

RM200 as a capital. This service is for customers who want to do henna and she does the

business for event wedding (bridal), engagement and so on. Besides, she also make a

product which is ‘Inai Celup’ in a cup using her own secret recipe and sell henna in cone for

those who want to buy the henna. The location of the business is at Kuala Lumpur and

Melaka. She always join any event in the IIUM festival to sell her business such as during

convocation day, she does henna service at Stanex. For promoting, she does it in the

Facebook, Instagram and also through Whatsapp. The price is different depending on the

design customers’ wants. Henna design for a hand only, IIUM students, and the price given

is RM 5 to RM 8 and for non-IIUM students, the price is RM 10 to RM 15. For bridal, she

set a based price at RM 110 excluding transportation. The adding price is depends on the

place the customers who want to use Manishenna services.

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OPERATIONS

1) QUALITY MANAGEMENT

“An operation manager’s objective is to build a total quality management system that

identifies and satisfies customer needs.” (Heizer & Render, 2014; p. 245). Quality can be

identified as “the ability of a product or service to meet customer needs” (Heizer & Render,

2014; p. 245). According to Investopedia (2016), quality management is an action of

monitoring and executing all activities and tasks which are needed in order to preserve a

certain level of excellence which includes the determination of a quality policy, creating and

implementing quality planning and assurance, and quality control and quality improvement.1

Having said that, it is important for Manishenna to ensure their product and service

qualities are fulfilling the customer needs and preferences in order to retain its reputation

and to improve their products’ reliability among the customers. There are three dimensions

of product quality which Manishenna should take note which are as follow:

1. Performance: Since Manishenna also provides the Henna drawing service along

with the Henna products, Shima should ensure that she performs well when

delivering the Henna drawing service. She cannot afford to make mistake and

mess up the drawing since the main attraction of the Henna drawing service is

the quality of the drawing itself; whether it is beautiful and neatly drawn or not.

If the Henna is drawn beautifully, the customers may come again and will

recommend the service to their friends and acquaintances and vice versa.

2. Features: Manishenna provides various types of Henna products which follow

the latest trend. The Henna drawing service is also delivered a specific features

where the customer can choose the unique pre-made design or request for a

custom made design.

3. Reliabilities: Regardless of the current issue where most of the Henna sellers

sell fake Henna products which are harmful to the skin, Manishenna continues

providing the genuine Henna products which are retrieved from trusted and

reliable suppliers. Besides, the Henna drawings are durable and will not vanish

easily while it is not waterproof and can also be used by the Muslims.

1 http://www.investopedia.com/terms/q/quality-management.asp#ixzz4SeavgzFA

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Since Manishenna provides both service and products, the quality management of the

business is taken seriously. The owener, Shima, which is also the service provider involves

directly with the quality management of the business where she manages the business well

according to the above three dimensions and gives priority to the customer satisfaction. The

quality of the Henna products and Henna drawing service provided by Manishenna are

different from the other industry players in term of the colour and reliability of the Henna

products and the details, unique and custom made design respectively.

Quality Management Approach

On the other hand, Manishenna implements the quality management approach of

Just-In-Time (JIT) for the dip henna product. According to Heizer and Render (2014), just-

in-time (JIT) is a system where the products are produced and delivered as they are needed.

It is related to the quality in three ways where it cuts the cost of quality, it improves quality

and reduces the inventory costs. Since Manishenna brew the dip henna product by mixing

various type of henna at one time, just-in-time system is suitable in order to maintain the

high quality of the dip henna when served to the customers.

Islamic Perspective on Quality Management

Ahmed (1996) as cited by Ogunbado (2013) stated that “quality management is a

wholistic approach where qualities of human resources precede, intermingling with quality

input and quality process to achieve quality output.” (p.7). Firdaus, Hussain, Asaad and

Yusoff (2015) highlighted that Islam teaches its followers on the importance of the quality

and perfection in doing job. It is supported by the Quranic verse (27: 88),

“Thou seest the mountains and thinkest them firmly fixed: but they shall

pass away as the clouds pass away: (such is) the artistry of Allah, Who

disposes of all things in perfect order: for He is well-acquainted with all

that ye do.”

The above verse highlighted how Allah created this world perfectly and beautifully.

It shows the importance of the quality in work. Allah notices everything we do; including

the way we manage our resources or services. Therefore, Manishenna must maintain good

raw materials quality and not discriminate their customers by providing bad services.

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2) LOCATION

Factors to consider

In running a business, particularly in the form of service business, the location plays

a very important role by considering several factors. Currently, Manishenna shop located at

the Student Mall in International Islamic University Malaysia, Gombak campus. Student

Mall area is actually a business space area provided by the university for students who want

to run a business. The university provided there several vacant stalls with a minimum rental

fees as low as only RM 10 per month. The owner of Manishenna who also a student, take

nthis opportunity by opening a shop there. Furthermore, that place proximate to their main

target market which is students because the place itself is the student attractions as its

located nearby café.

The service provided by Manishenna is custom-made henna drawing. Thus, in order

to deliver the service effectively, Manishenna need to a have direct contact with the students

there so that the service can be deliver in no time. In addition, the chosen location is also

proximate to supplier. Manishenna got supplier from Selangor and Kuala Lumpur area

which is within the current shop location. It will ease both parties in term of delivery

because by postage, the supply of raw material will reach within one day only. The time

taken will be reduced and Manishenna will not have shortage in term of their product. The

owner of Manishenna live-in campus which she stay in the hostel. The inventory of raw

material will be kept in hostel. The distance between hostel and her shop in Student Mall

quite close which give her an advantages as she can only walk-in to the shop hence save

transportation cost. Manishenna is sensitive to location as mention earlier, because they

provide custome-made henna drawing which need direct interaction with the customer; they

must make the service approachable to the potential customers.

Service location strategy

One of the service location strategies is to offer service and image compatibility with

demographics of the customers. Demographics is the study of a population based on factors

such as age, race and sex, among others. Manishenna smart in doing business as they

always follow the latest trend of the demographics whether in terms of their product offering

or henna drawing. Besides drawing henna, they also sell a ready-made henna that come in

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the form of cone and dip henna for customer who choose to make henna by their own. The

cone henna comes with several colours for the customer to choose like black and red. Other

product which is dip henna which they reproduce it by themselves with some additional

ingredients will be pack in a small bottle for handy-user. It is crucial for Manishenna to

continue observing the behaviour aspect in their customer so that it will not be outdated.

Manishenna has uniqueness in their service. Some competitors may use ready-made

henna sticker in the drawing process. But, Manishenna provide free hand henna drawing to

their customers which require creativity in the making process as not many henna drawer

can do that. In addition, the pattern is finely drawn with small details. Customers can

choose the pattern directly from the photo book provided or bring their own pattern.

Islamic Perspective on Location Management

“But seek, through that which Allah has given you, the home of the Hereafter;

and [yet], do not forget your share of the world. And do good as Allah has done

good to you. And desire not corruption in the land. Indeed, Allah does not like

corrupters.” (Quran, 28:77)

In the above verse, Allah commanded the man to find its way to the Hereafter

and find their world fulfilment by utilizing the sources that Allah provided in this

world. This verse is also highlighted that we must take a very good care of this world

and must not corrupt and do corruption on the land of this world.

In this context, Manishenna should utilize all the resources which are

available in order to make the location decision while considering both benefits on

this world and in the Hereafter. And when the location is chosen, Manishenna should

not misuse the resource and the availability of the location by doing something

illegal and bring mischief to the land.

3) SUPPLY CHAIN MANAGEMENT

Supply chain management can be defined as “the coordination of all supply chain

activities, starting with raw materials and ending with a satisfied customer.” (Heizer &

Render, 2014; p.468). Heizer and Render (2014) explained that a series of supply chain

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consists of suppliers (manufacturer) and/or service providers, distributors, wholesalers,

and/or retailers who will deliver the products or services to the end user (customer). “The

objective of supply chain management is to coordinate activities within the supply chain to

maximize the supply chain’s competitive advantage and benefits to the ultimate consumer.”

(Heizer & Render, 2014; p.468).

Supply chain for ManisHenna

The suppliers for Manishenna are for the cone henna, dip henna raw materials and dip

henna container. After retrieving the finished goods (cone henna) and work-in-process

goods (dip henna), the finished goods will be stored in inventor which is the owner’s hostel

room in IIUM. While, the work-in-process goods are brewed and mixed together until the

finished goods (dip henna) are produced and stored in the same inventory as the other one.

The finished goods then will be delivered to Manishenna stall at the Student Mall, IIUM to

be sold to the customers. In addition, the henna drawing service will also be provided for

walk-in customer at the Manishenna stall and for home visit request for special occasions

such as wedding and dinner.

Sourcing Strategy: Make and Buy

Manishenna use both make and buy sourcing strategy where they buy and outsource

the raw materials directly from suppliers for the cone henna and brew the dip henna by

themselves.

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Islamic Perspective on Location Management

“He has only forbidden to you dead animals, blood, the flesh of swine, and that

which has been dedicated to other than Allah. But whoever is forced [by

necessity], neither desiring [it] nor transgressing [its limit], there is no sin upon

him. Indeed, Allah is Forgiving and Merciful.” (Quran, 2:173)

In this verse, ALLAH has stated four things, which are prohibited for human

beings which are dead meat, blood ingestion, flesh of swine and those animal over

which any other name than that of Allah has been invoked. In other words, any raw

materials which consist of these prohibited things are haram and should not be used

in the production of the products.

Therefore, Manishenna must make sure that the products and raw materials

are coming from a halal supply chain management which are free from the prohibited

ingredients as mentioned in the above verse.

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CONCLUSION

The location flexibility is good to compete in the market place because the business can

get as many new customers as possible. The customers also don’t have to go all the way to a

fixed shop location if the business happens to operates near their home. However, it is

harder for the business to gain regular customers as the business don’t always stays in one

location. Their quality control is also their competitive advantage because the customers

would return to them if they are satisfied with the services offered. The weather could affect

business operation especially while they operate in tents during IIUM festivals. During rain,

not many customers will go the festivals. Therefore, the business are advised to add one

fixed location and apply extensive marketing is to reach more regular customers. The

business should also create a systematic procedure for stock order with suppliers to avoid

stock deficiency while serving the customers.

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REFERENCES

Heizer, J., & Render, B. (2014). Operations Management: Sustainability and Supply Chain

Management (11th ed.). Pearson.

Firdaus, F. S., Hussain, M. N., Asaad, M. N., & Yusoff, R. Z. (2015). Quality Management

Concept Based On Islamic Worldview. International Academic Research Journal of

Business and Technology, 1(2), 208-213.

Quality Management. (2016). Retrieved December 12, 2016, from

http://www.investopedia.com/terms/q/quality-management.asp

An-Naml (The Ant). Retrieved December 12, 2016, from https://quran.com/27/88-98

Al-Baqarah (The Cow). Retrieved December 12, 2016, from https://quran.com/2/173-183

Al-Qasas (The Stories). Retrieved December 12, 2016, from https://quran.com/28/77-87