Operations Management $$

Case Study: NovaTech Appliances Pvt$.$ Ltd$.$ Background: NovaTech Appliances Pvt$.$ Ltd$.$ is a mid$-$sized home appliance manufacturer based in Pune, India. The company specializes in products like washing machines, air conditioners, and water purifiers, catering to both domestic and international markets. Over the last decade, NovaTech built a strong brand image due to its commitment to quality and affordable pricing. The company operates multiple production units and outsources components from suppliers across India and Southeast Asia. Current Operational Scenario: In $2023,$ NovaTech expanded its product line by introducing smart appliances integrated with IoT $($Internet of Things$).$ While this helped increase sales volume and enter new markets, it also exposed the company to multiple operational challenges: Demand Fluctuations: Due to seasonal changes and the introduction of smart features, NovaTech faced irregular demand patterns. Their existing forecasting methods couldn$$t predict surges accurately. Capacity Constraints: The production facilities were running near full capacity, leaving no room to scale up quickly. New product lines often disrupted the schedule of regular items, leading to delivery delays. Supplier Dependence: Some critical IoT components were sourced from a single foreign supplier. Recent geopolitical tensions and shipping delays caused frequent stockouts. Quality Issues: As the company scaled up rapidly, quality control systems didn$$t keep pace. Customer complaints rose, especially regarding smart appliance software malfunctions. Sustainability and Compliance: NovaTech$$s European clients started insisting on environmentally compliant production and packaging practices, while the Indian government pushed for local sourcing under the "Make in India" initiative. Proposed Operations Strategy: To resolve these issues, NovaTech$$s operations team proposed a comprehensive strategy: Adopt advanced demand forecasting using AI tools. Invest in a modular production layout to allow product flexibility. Create a multi$-$vendor sourcing strategy to reduce supply risks. Introduce Total Quality Management $($TQM$)$ and automated testing for smart components. Initiate green operations by switching to biodegradable packaging and energy$-$efficient machinery.

Long Answer Questions

Q$1.$ Discuss how NovaTech can improve its capacity planning to address production constraints without affecting its regular product lines. What role can technology and layout design play in solving this?

Q$2.$ Evaluate the risks of NovaTech$$s current supplier dependency and how a multi$-$vendor sourcing strategy can help. What are the challenges of implementing such a strategy?

Q$3.$ Explain how Total Quality Management $($TQM$)$ could be applied at NovaTech to address increasing quality issues in smart appliances. Include principles and practices of TQM relevant to their situation.