Q1.

(a)-Discuss about Rohit’s core competence area to expand

the operations.

Rohit’s company has seen a remarkable growth in past two years through various
sales options like selling his good through departmental stores and his prediction
for future of his brand “Agarbatti” is optimistic. By seeing the growth like this ,
there are various options in front of him and that defines his core competencies
of expanding his business by knowing his strength and looking at the sales result
of past two years.

Core Competencies are areas of deep proficiency that can help distinguish a
company from its competitors because they are hard for competitors to copy or
procure. Rohit’s core competency to expand the operation:

 Team Expansion:- One of the easiest ways to expand your business is to add
talented members to your team. Hiring an assistant to the production team
can enhance your team and free up other employees to focus on other tasks. If
hiring a full-time member isn’t an option right now but you need the extra
help, consider hiring a part-time employee or outsourcing some tasks.
Another strategy may be to employ local workers at lower wages instead of
relying on an existing workforce to produce more products while earning
overtime pay. Contracting with local suppliers, warehouses and shipping
services are all possible ways to address cost and speed during a product
expansion.
 Area for Setting up the Plant:- The place where the manufacturing facility is to
be set up needs to be decided after taking into consideration the following
points:
 Availability of cheap land
 Availability of skilled and cheap labour
 Transportation and logistics
 Easy availability of technical support
 Easy access to market and raw materials
 Financial considerations like tax breaks, subsidies or government incentives
 Market Expansion:- One of the most common growth strategies is to expand
the awareness of what Rohit’s Agarbatti Company is going to offer as
agarbatti with various fragrances. The awareness has to be expanded outside
of the current zone. Innovative operational strategy and marketing strategies
should be involved and evoloved in order to attract new customers in different
markets by knowing what the consumer and economic trends are.

 Equipment Selection:- This is a very crucial decision. Rohit needs to judicially

select the equipment according to the budget and requirement of the
customers.
 Creating ongoing value for customers: He has focused to deliver product i.e.
agarbatti which were tangible and had lasting value. He was more focused on
delivering value and satisfaction to customers rather than focusing on sales
but eventually sales has increased with the promising performance.
 Customer Service: He has anticipated client’s needs and respond to them by
providing same as per customers requirement.
 Flexibility: he was able to adapt to whatever changes that happen in a field of
fragrance and odors without losing focus on his goals i.e. sales maximization.
 Interpersonal Relations: He was having a good understanding and harmonious
working relationship with his workers working in a departmental store.
 Leadership: He was having leadership skills to coordinate workers working in a
departmental store, promote strategies and expand operations to achieve a
goal.
 Store Management and risk management: He was skilled to manage store and
risk timely and with efficient completion.
Functional areas to expand business will be finance, human resource,
marketing, sales and distribution (export) and customer service support.
 Production is interrelated to every aspects of expanding business.
 Finance plays a major role in informing, advising and running a manufacturing
business i.e. agarbatti production. Funding is required for production and
manufacturing of product, purchasing of raw materials, inventory cost, rent for
land and to pay wages to labour.
 Human resource deals primarily on administrative issues regarding payroll and
other matters. It deals with employee management, resolving employees’
issues such as pay, training, communications, and staffing.

(b)-How does production to interact with other functional area

in the expanding business?
Production plays a major rule in an individual product and it decide the sales of it
as well, and for this operation will be a key part for all the area of the firm and so
as in production as well. It will help the firm as it will help to interact with all the
areas of the firm and mainly with the suppliers to produce goods and services.
The main aspect of the production will be the finance and accounting part of the
firm. It will get along with to find the inventory data of the firm as well.

It is required that the Financial Managers take capital budgeting decision based
on production requirements. Cash flow statements and current asset
management has to be examined in the light of production decisions as plant
expansion has financial implications.

Once the plant has been expanded in terms of area and production it is required
that the Marketing Managers must understand production schedules to meet
their delivery requirements. They should understand how products can be
marketed based on the new fragrance launched. Production has a great role to
play in new product development

It will help finance at many a ways which at the end helps the firms to know about
the wages of the workers and the salaries of the employees. It will help to get the
cost analysis of the firm as how it performed last year and how it worked and
then to create a cost analysis of the present scenario.
Q2. Carry out Value Analysis for any one of the above mentioned product
of your choice.

Value analysis is a process to improve the value of a product by understanding its

constituent components and the costs associated to it. Then improvements to the
components are made based on the analysis by either reducing their cost or
increasing the value of the functions.

The value Analysis for Solar Heater can be implemented in the following phase:

1. The Orientation Phase-

 Refinement of the details of Solar Heater with the recording of the stages of
the process with comments related to costs, quality and known problems
related to Solar Heater.
 Development of the cause and effect of problems and analysis of failures in
the conversion process of designing into production.
 Development of a chart that displays the process and costs of each process
stage to demonstrate the points in the conversion process that generate the
most costs.
 Review of customer complaints (or survey) with associated cause-and-effect.
 Benchmarking information where available or practical to collect.

2. Functional Phase-

This represents the commencement of the analysis of Solar Heater as a product

by identifying systematically the most important functions of a product or service.
This is known as functional analysis. Function represents the part of Solar Heater
which gives esteem value to the product. These functions therefore make the
product work effectively or contribute to the ‘saleability’ of the product.

3. Creation Phase-

This stage is concerned with developing alternative that are more cost effective
ways of achieving the basic function.

4. Investigation and Evaluation Phase-

This stage is to evaluate the ‘cost’ and ‘worth’ of each function. The worth is
determined by estimating the lowest cost of producing each basic function if cut
down to its minimum. The value potential is therefore the difference between the
cost and the worth figures.

5. The Recommendation and Implementation Phase-

This is the final stage of the Value Analysis in which the findings as problems and
its solutions from the previous phases is reported to the senior management
team and gain permission to implement the findings of the report to the “has to
produced Solar Heater”. At this point, Solar Heater that is produced with the
knowledge that it generates profit for the business and generates value for the
customer in the most effective and efficient way.
VALUE ANALYSIS PROCESS

Figure represents the correlation between the value, the Value Analysis
methodology and the implementation dynamics.
Solar Water Heating Systems
Solar Water Heating Systems use the sun's energy to heat water for use by
homes, commercial buildings and swimming pools. While some solar
collectors look like solar photovoltaic panels, they are quite different. Solar
thermal panels do not generate electricity, but simply absorb sun's heat.

Solar water heater requires the following major components:

1. Solar collectors and panels-The solar collectors absorb sunlight to

collect heat.
 Evacuated tube collectors-An evacuated-tube collector is a set of
many double-walled, glass tubes and reflectors to heat the fluid
inside the tubes.
 Flat plate collectors-The collector consists of a thin, flat, rectangular
box with a transparent cover that faces the sun. Small tubes run
through the box and carry the fluid.
 Parabolic collectors- It is the most powerful type of collector which
concentrates sunlight at a single, focal point via a parabolic dish
made of reflective surface.
2. Heat exchanger
3. Storage tank-The storage tank holds the hot water.
4. Monitoring system- Used by system owners to measure and track
system performance.
The main component of solar water heater is solar collector. The solar
collector aborbs heat and then the fluid is get heated by different means. The
more will be the solar panel area the more water will get heated up quickly.
COMPONENTS OF SWH
ACTIVE AND PASSIVE SOLAR HEATING SYSTEMS
Solar water heating systems can be either active or passive, but the most
common are active systems. Active systems rely on pumps to move the liquid
between the collector and the storage tank, while passive systems rely on gravity
and the tendency for water to naturally circulate as it is heated.
Active systems come in two types:

 Direct circulation (open loop): water is circulated directly through the solar
collectors. This system cannot be used in areas where temperatures drop
below freezing.
 Indirect circulation (closed loop): a non-freezing liquid is circulated through
the collectors and heats the water in a tank afterwards via a heat exchanger.

Benefits include:
 Electricity cost reduction
 Claiming of renewable heat incentives
 Easy to install
 Stable & durable
 Least reduction of carbon emissions.

Limitations:
 Less hot water
 Low flow
 Doesn’t work properly in cloudy weather
 Solar panel might get leak because of excess pressure within the system.

As its unit price is increasing every year. We should think about cheap
coating material, non-corrosive, more commercialization, etc. but the
efficiency should be high.

AIM:
TO REDUCE COST FOLLOWING MEASURES HAS BEEN ADOPTED BY US:

 We had used PVC pipes for transfers of cold water rather than metal pipes
which may get rusted or corroded.
 We are using thermoplastic coating material, also known as plastic coating
of the water side of steel hot water storage tanks. It cost less as compared
to galvanized coating tank and glass enameled tubes. It also gives higher
efficiency by proving a temperature of 260 °C, while other coated material
gives only maximum up to 95 °C.
  By making the glass tubes more thin we are speeding up the process of
heating the water

If we want to increase the value for solar water heater we can go for the
commercialization by installing the heater on roof top of all apartments in a
society or for large swimming pools. For each family the requirement is 200 LPD
(liters per day)
Since SWH (Solar water heater) requires more space for single home we can use
the common rooftop for the installation of each family’ SWH with the use of 4 m2
area. For large society we can have more area for installation.

Same goes with swimming pool project. Since pool also uses hot water generated
by electricity we can reduce the electricity consumption by installing SWH. It inner
surface should be coated black plastic material. It can also be used large LPD SWH
for generating hot water as on average sunny day 100 liters of water can be
produced at average temperature of 600C.

Installation cost may be high but it ensures a lifetime of 20 to 25 years which is a

very long period of time. Maintenance cost is also not required except for annual
maintenance like de scaling etc.
A 200 LPD Solar water heater costing around Rs 40000 /- , has been used in one
of our team member’s home which has actually reduced the electricity bill for
consecutive years. They are using Red sun solar water heater and the following
data for the year (2013 – 2018) is clearly reflecting how the installation of solar
water heater had reduced their electricity bill:

Year October(in November(in Price Profits

Rs) Rs) reduction
after using
SWH
2013 4580 3664 916 20%
2014 5232 3924 1308 25%
2015 5642 4513.6 1128.4 25%
2016 5783 4337.25 1445.75 25.03%
2017 5690 4267.5 1422.5 25%
2018 5789 4341.75 1447.25 25%

From this data it can be inferred that, if the use of SWH will continue for more
than 25 years than the entire cost of SWH will be recovered and additionally it
brings much more savings in the electricity bill with the usage of abundant and
free radiant source of solar energy.
 ON WHAT GROUNDS, DECISION WAS TAKEN TO INSTALL SWH ???

 Reduced energy bills: Sunlight is free, so once you've paid for the initial
installation your hot water costs will be reduced.
 Lower carbon footprint: Solar hot water is a green, renewable heating
system and can reduce your carbon dioxide emissions.

Conclusion
Solar Water Heater vs. Electric water heater

Today solar and renewable energy has created a revolution in the world. More
people are looking for solar energy or renewable source of energy other than
electricity. So we have installed SWH in our home and it is a success. Due to this
competitive environment, increasing power tariff and high electricity bills are
forcing people to choose Solar energy water heaters than electric water heaters.

Competitive environment is seen when it comes to electric and solar water heater
products. This is one of the most important reasons for the popularity of solar
water heating systems. They get energy from sun to heat water. The system is
installed on a terrace or an open space where proper sunlight comes directly. The
solar system is not connected to electricity. Thus, it doesn’t play any role in
increasing electricity bills. Hot water is stored in an insulated tank to use as when
required.