tedProf.

Suhas Rane
Operations Management – Project

Mr. Anand, a NRI Businessman, has a great faith in the ability

of young MBAs from Indian B-Schools. He has given an open
advertisement inviting proposals for setting up a
Manufacturing or Service operations anywhere in India, for
which he is prepared to provide a seed capital of Rs. 1 Cr.
Should the project require higher investment, the same to be
raised thro’ Bank / FIs / VCs.

You as a team of 4 MBAs are willing to take this Business

Opportunity. Hence please prepare a brief Business plan
covering following 4 topics and present your report to Mr.
Anand –
1. Product Details –(sector wise, small cap, mid cap, large
cap. Selective stock, sensex top 100)8-12% is 2%, above
12% another .5%, above 20% another 2%
i) Product Name, Its utility / features
ii) Product Design i.e. Composition, Inputs
iii) Why this product? Market Study, Other Players
iv) Any foreign tie-up required?

2. Process Details –
i) How do you plan to get process – Self Developed
or thro’ Consultant?
 ii) Give brief Process / Operations
iii) Facilities required & their approx cost.
3. Project Plan –
i) Year-wise volume expected for next 5 years.
ii) Sales T/O expected.
iii) Quality & Quality of Manpower.
iv) Financial Analysis, Break even etc.

4. Location & Layout –

i) Which location & why ? Advantages and
limitations.
ii) Get approx cost idea (either Land + Construction
or Rental)j
iii) Process Focused or product focused?

Mr. Anand is visiting India in about 4 weeks time.

He has asked the interested parties to submit a Project
Report for his reading. Presentation will be scheduled during
his visit to Mumbai.

Last Day for Report Submission –

Exactly 4 weeks from today
 OM – Anand Project
1. First trigger is: to decide which product or
which service?

Once identified, you need to justify it based on

“Demand-Supply Gap Analysis” in your identified
markets area. -vansh

2. Describe product: How it is to be made of (i. e.

components, BoM) -vansh

How it functions and benefits the customer

3. Describe the process of manufacture,

preferably show line diagram. vansh

4. Decide which location, how much area is

required? Show facility layout (gives dimensions
and shows the flow). -Kashish

5. Give the following details in separate

tables/annexure:

b. Land, Building, Construction cost (details

like Area, Land Cost, Rent, Deposit and such
other property details)
c. List of machinery, equipment (name, nos.,
make, specs, price etc.)
d. Manpower list (spread over 5 years):
Positions, Nos., and Salary structure.
-both

6. Capital Costs and Revenue Incomes/Expenses to

be shown separately and not to be mixed up.
(Moneyware software – 12lakhs) maintenance fees –
10%
 a. In capital cost, how Long Term (LT) finance
is raised and spent for land/ building/ facilities –
both(term loan 10-11%)

b. In revenue a/c show how income is

generated and expenses met (like material,
salaries, admin., sales, rent, interest etal) and
thereafter surplus i.e. G.P./Loss -both

7. Show break even analysis/ payback period. –

kash(no of clients, 20 clients of 1 crore and earn
them 8% atleast)
8. How you propose to refund Rs. 1 Cr. to Mr.
Anand over a period. –kash

Birla,
Bajaj

ICICI