Operations Management Case Study

Change in Product Layout Leads to Profitability: A Case Study for DSPL

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Abstract:
After analysing the market survey, Sambhu started an iron ore Pelletisation plant “Dharani Steels Private Limited (DSPL)” with capacity 0.3 MMTPY in 1995. In the initial years of its establishment i.e., 1995–2000, the company growth was quite encouraging and reached to a level of net profit INR 6.5 crore recorded in the financial year 2000. To boost the gains, the company capacity has been doubled. However, few years after its expansion, the company profits were declined. Ajay, who was a classmate of Sambhu, provided technical help in evaluating the operational problems in the plant. Ajay reviewed the existing operations thoroughly and recommended ‘Assembly line Balancing Technique’ to mitigate operational problems. Consequently, the company improved its productivity and achieved targeted profits.

Pedagogical Objectives:

This Case Study may be used to understand:
• Review of the existing system of operations
• Estimate the allowable Cycle time
• Determine the minimum number or Workstations
• Evaluate the efficiency of operations using ‘Assembly Line Balancing concept’.

Keywords : Layout Planning, Assembly Line Balancing, Efficiency, Cycle Time, Work Station, Productivity, Profitability Course Case Mapping

Contents:

• Introduction
• Suggested Questions for Discussion