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1
REPORT ON STUDY OF
CONCEPTS OF OPERATIONS
MANAGEMENT IN-
JAGRAN PUBLICATIONS
SUBMITTED TO- SUBMITTED BY-
PROF. SONALI SINGH BORNITA DAS PGFB1513
HARSHITA RAWAT PGFB1517
TANUGOEL PGFB1552
RISHABH SINGH PGFB1537
VIDHI BAJPAI PGFB1558
2
CONTENTS
 EXECUTIVE SUMMARY
 INTRODUCTION
 FORECASTING
 PRODUCT DESIGN AND MANUFACTURING PROCESS
 INVENTORY MANAGEMENT
 MATERIAL REQUIREMENT PLANNING
 TOTAL QUALITY MANAGEMENT
 LEARNINGS
 VISIT TO DAINIK JAGRAN
3
EXECUTIVE SUMMARY
This report is designed to study the concepts of Operations
Management in a practical approach. We have taken “Jagran
Publications Ltd” located at Noida, Sector 63 for the same. Different
processes and concepts that are applicable in the firm has been studied
and summarized in the report.
We have tried and analyzed that how the day to day operations in a
publication house is carried out. We learned that how such a
publication house’s set up is and how they control their inventory and
forecast demand with a small margin of profit within.
Mr. Nitish Shukla, Manager Material, Jagran Publications Ltd, guided us
and provided us with every possible information that was much needed
for the project work.
The report consists of the firm’s Inventory management system,
Material Requirement Planning, Total Quality Management and
Demand Forecasting.
4
INTRODUCTION
Jagran Prakashan Ltd (JPL), a publisher company was born in 18th
July of
the year 1975 as a private limited under the name of Jagran Prakashan
Private Limited. JPL’s birth was the pet project of the Indian freedom
fighter Late Shri Puran Chandra Gupta. The company is engaging in
printing and publishing of newspapers, magazines, journals and media
related businesses.
Vision of Jagran “Just like the morning sun that dispels darkness and
brings warmth to the world, the vision of Jagran is to transform lives
through enlightening and enriching experiences”.
JPL is India’s leading media and communication group, with its main
interests across news papers, magazines etc. it has acquires Radio City
in June 2015. It is listed in BSE/NSE. It has 11 titles, covering almost 13
states, 350 editions and sub editions, comes out in 5 languages, which
makes it the world’s largest read daily newspaper publication company.
In the publication house in Noida they are in the business wherein they
print Times of India, Apollo pamphlets, Business Standards, Economic
Times and Dainik Jagran and Magazines.
5
FORECASTING
Forecasts are vital to every business organization and for every
significant management decision. It gives a base for planning and
control. In the areas of finance and accounting, forecasting provides the
basis for budgetary planning and cost control. Production and
operations department uses such forecasting to make continuous
decisions like selection of supplier, process and facility layout as well as
for inventory, purchase and production planning.
In order to select the forecasting technique it is important to know the
purpose of forecasting to be done depending upon the type and
frequency of demand analysis.
In the case of “Jagran Prakashan Ltd” Noida, sector 63 the forecasting is
done on the basis of the agreement made between the firm and their
clients. The trend analysis is done as it is a day to day based operation
that happens in there.
The agreement consists of all the components such as rates, delivery
time, percentage of wastage allowed etc which is also decided on the
basis of the trend analysis and conditions set by mutual agreement.
PRODUCT DESIGN AND MANUFACTURING PROCESS
Product design is an integral to the success of many companies. It
differs significantly from industry to industry. A product design helps
proper implementation of the service taken into account.
The manufacturing processes are used to make everything that we buy
ranging from the apartment building in which we live to the ink pens
6
with which we write. The manufacturing process starts with sourcing
the parts we need, followed by actually making the item and then
sending the item to the customer.
The manufacturing process of “Jagran Prakashan Ltd” can be explained
with help of following flowchart:
The above flowchart describes the process of manufacturing that takes
place in Jagran Prakashan Ltd from agreements with the clients to final
printing of the newspaper. The process starts with the agreement with
the clients regarding how much ink they need for printing per page, the
volume of the paper, wastage, per page cost, rate per mat cost. They
have different rates for different clients. Then the paper is set in the
cylinder which has aluminum plate which is of one time use. They have
only four types of ink used in printing: Cyan, Magenta, Black and
Yellow. After the final printing the finished good is produced as
newspaper.
The four distribution channel in newspaper supply chain is as below:
Purchased
parts from
vendors
Purchase
parts of
inventory
Final
Assembly
Designing
Final
Enabling
Finished
Goods
7
Printing
Press
Hotels,
Libraries
Printing Press
Distribution
Company
Govt.Offices,
Embassies,Airlines
INVENTORY MANAGEMENT
Inventory is the stock of any item or resource used in an organization.
An inventory system of a firm includes policies and controls that
measures the level of inventory and determine what level should be
maintained so that the production should not get disrupted.
The purpose of maintaining an inventory can be:
 To maintain independence of operations to ensure flexibility.
 To meet any variations in the demand if any in any case or
emergency.
 To allow flexibility in the production scheduling.
Printing Press
Insertion Center
Depo
Vendor
Hawker
Customer
Printing Press
Depo
Agency(Central
News Agency)
Customer
8
 To provide a safeguard for any delay or variations in the delivery
time of raw materials.
Various techniques are there which are used for inventory
management such as ABC analysis and cycle counting methods.
In Jagran Prakashan Ltd they use ABC analysis to control inventory.
They have categorized their raw material into A, B and C class in the
following manner:
1. A class items: most critical items such as ink, aluminium plate,
chemicals etc.
2. B class items: critical items
3. C class items: consumable items such as pen, pencil etc.
There is set minimum and maximum level of A class items and a set
Reorder level is set for the same. The total cycle of ink usage is
considered to be 45 days wherein 15 days are set for delivery time and
rest 30 days for printing. On the 25th
day itself the re-order is made. The
re-order is done in a sequence of steps wherein first the concerned
department sends an intimation mail to the operations notifying the
need of raw materials. The flow charts explain the process:
9
In the indenting part the department that requires the inventory does
an indenting for procurement of raw material. The purchase order
includes the cost, delivery time, quantity, warranty and specific item’s
norms if any. The lead time of different items differs on the basis of the
norms of specific industry. Like for ink it has to be 15 days no matter
what the norms of the vendor are. Sometimes the management
decides upon the lead time, cost and wastage itself depending upon
certain factors for example profit margin, competition etc.
A level of safety stock is also maintained to avoid any kind of
mishappening or emergency that might occur in future. Jagran
Prakashan follows a Fixed-Order quantity model with safety stock in
hand.
After the vendor’s intimation the following steps are taken to regulate
inventory:
10
After the order has been received it goes through the verification
process. A GRN (Goods Receipt Note) entry is done and the order
directly goes into the stock wherein it gets add up to the existing stock.
The department in need of the raw material has to again make intent to
the material house regarding the issue of stock and after the billing,
approval and payment the stock allotted is deducted from the added
one.
Order quantity depends on the requirement of the department in need
and the agreement made with the client. Jagran Prakashan deploys
First in first out (FIFO) concept while managing the inventory depending
upon the expiry of the item.
11
MATERIAL REQUIREMENT PLANNING
MRP is the logic for determining the number of parts, components, and
material needed to produce a product. It also provides the schedule
specifying when each of the items should be ordered or produced. MRP
is based on dependent demand which is required for the demand for
the independent demand items.
MRP is most valuable in such industries wherein the numbers of
products are made in batches using the same productive equipment.
MRP system consists of three components or steps:
1. Master Production Scheduling
2. Bills of Material; Product Structure
3. Inventory Records
Master Production Scheduling: It must specify that exactly what is to
be produced. It is a time phased plan that tells how many and when the
firm plans to build each end items.
Bills of Material: It contains the complete product description, listing
the materials and components as well as the quantity of each item and
also the sequence in which the end item is to be created. Bills of
Material are often called the product structure file or product tree
because it shows how a product is put together. It consists of
information to identify each item and the quantity used per unit of the
item of which it is a part.
Inventory Records: It shows the variety of information contained in the
inventory records. The MRP programs access the status segment of the
record according to specific time periods.
12
The inventory status file is to be kept up-to-date in order to avoid an
confusion and losses.
The MRP process is process is as follows:
 The requirement for level 0 items are retrieved from the master
schedule. These requirements are termed as Gross Requirements.
 The program uses the current on-hand balance together with the
schedule of orders that will be received in future to calculate the Net
Requirements.
Net Requirement is the amounts that are needed in the future.
 Using net requirements, the program calculates when orders should
be received to meet these requirements. This schedule of decide
when order should arrive is referred to as planned order receipts.
 A schedule is to be find out when orders are actually released on the
basis of the lead time. The schedule is known as planned order
release.
 In such a way from 0 levels to all the high levels items in Bills of
Material are treated.
Now explaining the MRP program in context to the company selected
by us i.e., Jagran Prakashan Ltd.
The master production schedule of JPL is created on the basis of the
agreement made between the firm and their agents, hawkers and other
firms. The agreement for newspapers and supplements are done on
regular basis. It is a printing house which runs 24 hours. After 6:00 pm
every day the produced newspaper’s shelf life becomes nil. The agent
of such industry gives an order for the very next day on the regular
basis and thus it is completely based on demand and supply
phenomenon.
13
When it comes to Bills of Material, it does not consist of many levels as
the end item majorly includes fixed equipments and other variables are
completely consumable.
Newspaper printing is a process and thus it does not include much of
the levels in its Bills of Material. The paper used and the dimensions are
customized to the folder size that can be printed. The amount of ink
used also depends on the content to be printed on the paper. The
demand for ink will depend upon the pages that are supposed to be
printed and on the estimate of grams ink used in a single page.
Last but not the least is the Inventory records of the raw material which
has been explained earlier in the inventory management part. The
Material department keeps a complete check on the warehouses and
the level of inventory there. The warehouse of JPL Noida sector 63 is
located at Noida, sector 68. The Material department is kept up-to date
about the inventory level. Any requirement from any department, in
any at any time has to be given to the Material department and the
Material department will thus issue the stock to the same department.
NEWSPAPER
INK ALUMINIUM PLATEPAPER
14
MRP enables and help JPL to avoid any delays and thus losses which
may occur because of shortage of raw material. Such a loss and
ignorance a print industry cannot afford because of high competition
and it is a 24 hours running industry and thus have to have a good level
of inventory all along.
There is no inventory that is held for the finished goods as earlier
explain that the shelf life of the product (newspaper) becomes nil after
6:00 pm. If in case any stock is left then it is sold off as scrap.
TOTAL QUALITY MANAGEMENT
Total Quality Management is a comprehensive and structured
approach to organisational management that seeks to improve the
quality of products and services through ongoing refinements in
response to continuous feedback. TQM has two fundamental
operational goals,viz.:
1. Careful design of the product or service
2. Ensuring that the organization’s systems can consistently produce
the design.
Jagran Prakashan Ltd follow ISO when there is audit in the company
related to their organization’s system or designing of product or service
of the newspapers. They have a proper systemized designing of the
printing of newspaper.
The unsold newspapers which are returned back are recycled back for
further use. They have only 5% wastage as papers are of vital use for
every human being. So there is less wastage of newspaper in the
industry. Wastage in the newspaper industry is of five types: the cover,
newspaper core in which the paper is rolled, when any paper during
15
manufacturing process has got cut in it, during hot and cold run of the
machine(during cold run the paper comes out white which is again
recycled for future) and during circulation of paper.
Distribution Structure:
Jagran
PrakashanLtd
Printing
press
Depots Clients
Vendors Vendors
Beat boys Newspaper
strands
Beat boys Newspaper
starnds
Customers
16
LEARNINGS
 By this project of Operations Management we got the opportunity
to visit the production house of Dainik Jagran which was located
in Noida Sector-63.
 There we learnt how the concepts of Operations Management are
actually applied in an organization.
 We are very thankful to our faculty Prof. Sonali Singh and Mr.
Nitish Shukla who helped us to learn many new things.
17
OUR VISIT
18

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REPORT ON STUDY OF CONCEPTS OF OPERATIONS MANAGEMENT IN

  • 1. 1 REPORT ON STUDY OF CONCEPTS OF OPERATIONS MANAGEMENT IN- JAGRAN PUBLICATIONS SUBMITTED TO- SUBMITTED BY- PROF. SONALI SINGH BORNITA DAS PGFB1513 HARSHITA RAWAT PGFB1517 TANUGOEL PGFB1552 RISHABH SINGH PGFB1537 VIDHI BAJPAI PGFB1558
  • 2. 2 CONTENTS  EXECUTIVE SUMMARY  INTRODUCTION  FORECASTING  PRODUCT DESIGN AND MANUFACTURING PROCESS  INVENTORY MANAGEMENT  MATERIAL REQUIREMENT PLANNING  TOTAL QUALITY MANAGEMENT  LEARNINGS  VISIT TO DAINIK JAGRAN
  • 3. 3 EXECUTIVE SUMMARY This report is designed to study the concepts of Operations Management in a practical approach. We have taken “Jagran Publications Ltd” located at Noida, Sector 63 for the same. Different processes and concepts that are applicable in the firm has been studied and summarized in the report. We have tried and analyzed that how the day to day operations in a publication house is carried out. We learned that how such a publication house’s set up is and how they control their inventory and forecast demand with a small margin of profit within. Mr. Nitish Shukla, Manager Material, Jagran Publications Ltd, guided us and provided us with every possible information that was much needed for the project work. The report consists of the firm’s Inventory management system, Material Requirement Planning, Total Quality Management and Demand Forecasting.
  • 4. 4 INTRODUCTION Jagran Prakashan Ltd (JPL), a publisher company was born in 18th July of the year 1975 as a private limited under the name of Jagran Prakashan Private Limited. JPL’s birth was the pet project of the Indian freedom fighter Late Shri Puran Chandra Gupta. The company is engaging in printing and publishing of newspapers, magazines, journals and media related businesses. Vision of Jagran “Just like the morning sun that dispels darkness and brings warmth to the world, the vision of Jagran is to transform lives through enlightening and enriching experiences”. JPL is India’s leading media and communication group, with its main interests across news papers, magazines etc. it has acquires Radio City in June 2015. It is listed in BSE/NSE. It has 11 titles, covering almost 13 states, 350 editions and sub editions, comes out in 5 languages, which makes it the world’s largest read daily newspaper publication company. In the publication house in Noida they are in the business wherein they print Times of India, Apollo pamphlets, Business Standards, Economic Times and Dainik Jagran and Magazines.
  • 5. 5 FORECASTING Forecasts are vital to every business organization and for every significant management decision. It gives a base for planning and control. In the areas of finance and accounting, forecasting provides the basis for budgetary planning and cost control. Production and operations department uses such forecasting to make continuous decisions like selection of supplier, process and facility layout as well as for inventory, purchase and production planning. In order to select the forecasting technique it is important to know the purpose of forecasting to be done depending upon the type and frequency of demand analysis. In the case of “Jagran Prakashan Ltd” Noida, sector 63 the forecasting is done on the basis of the agreement made between the firm and their clients. The trend analysis is done as it is a day to day based operation that happens in there. The agreement consists of all the components such as rates, delivery time, percentage of wastage allowed etc which is also decided on the basis of the trend analysis and conditions set by mutual agreement. PRODUCT DESIGN AND MANUFACTURING PROCESS Product design is an integral to the success of many companies. It differs significantly from industry to industry. A product design helps proper implementation of the service taken into account. The manufacturing processes are used to make everything that we buy ranging from the apartment building in which we live to the ink pens
  • 6. 6 with which we write. The manufacturing process starts with sourcing the parts we need, followed by actually making the item and then sending the item to the customer. The manufacturing process of “Jagran Prakashan Ltd” can be explained with help of following flowchart: The above flowchart describes the process of manufacturing that takes place in Jagran Prakashan Ltd from agreements with the clients to final printing of the newspaper. The process starts with the agreement with the clients regarding how much ink they need for printing per page, the volume of the paper, wastage, per page cost, rate per mat cost. They have different rates for different clients. Then the paper is set in the cylinder which has aluminum plate which is of one time use. They have only four types of ink used in printing: Cyan, Magenta, Black and Yellow. After the final printing the finished good is produced as newspaper. The four distribution channel in newspaper supply chain is as below: Purchased parts from vendors Purchase parts of inventory Final Assembly Designing Final Enabling Finished Goods
  • 7. 7 Printing Press Hotels, Libraries Printing Press Distribution Company Govt.Offices, Embassies,Airlines INVENTORY MANAGEMENT Inventory is the stock of any item or resource used in an organization. An inventory system of a firm includes policies and controls that measures the level of inventory and determine what level should be maintained so that the production should not get disrupted. The purpose of maintaining an inventory can be:  To maintain independence of operations to ensure flexibility.  To meet any variations in the demand if any in any case or emergency.  To allow flexibility in the production scheduling. Printing Press Insertion Center Depo Vendor Hawker Customer Printing Press Depo Agency(Central News Agency) Customer
  • 8. 8  To provide a safeguard for any delay or variations in the delivery time of raw materials. Various techniques are there which are used for inventory management such as ABC analysis and cycle counting methods. In Jagran Prakashan Ltd they use ABC analysis to control inventory. They have categorized their raw material into A, B and C class in the following manner: 1. A class items: most critical items such as ink, aluminium plate, chemicals etc. 2. B class items: critical items 3. C class items: consumable items such as pen, pencil etc. There is set minimum and maximum level of A class items and a set Reorder level is set for the same. The total cycle of ink usage is considered to be 45 days wherein 15 days are set for delivery time and rest 30 days for printing. On the 25th day itself the re-order is made. The re-order is done in a sequence of steps wherein first the concerned department sends an intimation mail to the operations notifying the need of raw materials. The flow charts explain the process:
  • 9. 9 In the indenting part the department that requires the inventory does an indenting for procurement of raw material. The purchase order includes the cost, delivery time, quantity, warranty and specific item’s norms if any. The lead time of different items differs on the basis of the norms of specific industry. Like for ink it has to be 15 days no matter what the norms of the vendor are. Sometimes the management decides upon the lead time, cost and wastage itself depending upon certain factors for example profit margin, competition etc. A level of safety stock is also maintained to avoid any kind of mishappening or emergency that might occur in future. Jagran Prakashan follows a Fixed-Order quantity model with safety stock in hand. After the vendor’s intimation the following steps are taken to regulate inventory:
  • 10. 10 After the order has been received it goes through the verification process. A GRN (Goods Receipt Note) entry is done and the order directly goes into the stock wherein it gets add up to the existing stock. The department in need of the raw material has to again make intent to the material house regarding the issue of stock and after the billing, approval and payment the stock allotted is deducted from the added one. Order quantity depends on the requirement of the department in need and the agreement made with the client. Jagran Prakashan deploys First in first out (FIFO) concept while managing the inventory depending upon the expiry of the item.
  • 11. 11 MATERIAL REQUIREMENT PLANNING MRP is the logic for determining the number of parts, components, and material needed to produce a product. It also provides the schedule specifying when each of the items should be ordered or produced. MRP is based on dependent demand which is required for the demand for the independent demand items. MRP is most valuable in such industries wherein the numbers of products are made in batches using the same productive equipment. MRP system consists of three components or steps: 1. Master Production Scheduling 2. Bills of Material; Product Structure 3. Inventory Records Master Production Scheduling: It must specify that exactly what is to be produced. It is a time phased plan that tells how many and when the firm plans to build each end items. Bills of Material: It contains the complete product description, listing the materials and components as well as the quantity of each item and also the sequence in which the end item is to be created. Bills of Material are often called the product structure file or product tree because it shows how a product is put together. It consists of information to identify each item and the quantity used per unit of the item of which it is a part. Inventory Records: It shows the variety of information contained in the inventory records. The MRP programs access the status segment of the record according to specific time periods.
  • 12. 12 The inventory status file is to be kept up-to-date in order to avoid an confusion and losses. The MRP process is process is as follows:  The requirement for level 0 items are retrieved from the master schedule. These requirements are termed as Gross Requirements.  The program uses the current on-hand balance together with the schedule of orders that will be received in future to calculate the Net Requirements. Net Requirement is the amounts that are needed in the future.  Using net requirements, the program calculates when orders should be received to meet these requirements. This schedule of decide when order should arrive is referred to as planned order receipts.  A schedule is to be find out when orders are actually released on the basis of the lead time. The schedule is known as planned order release.  In such a way from 0 levels to all the high levels items in Bills of Material are treated. Now explaining the MRP program in context to the company selected by us i.e., Jagran Prakashan Ltd. The master production schedule of JPL is created on the basis of the agreement made between the firm and their agents, hawkers and other firms. The agreement for newspapers and supplements are done on regular basis. It is a printing house which runs 24 hours. After 6:00 pm every day the produced newspaper’s shelf life becomes nil. The agent of such industry gives an order for the very next day on the regular basis and thus it is completely based on demand and supply phenomenon.
  • 13. 13 When it comes to Bills of Material, it does not consist of many levels as the end item majorly includes fixed equipments and other variables are completely consumable. Newspaper printing is a process and thus it does not include much of the levels in its Bills of Material. The paper used and the dimensions are customized to the folder size that can be printed. The amount of ink used also depends on the content to be printed on the paper. The demand for ink will depend upon the pages that are supposed to be printed and on the estimate of grams ink used in a single page. Last but not the least is the Inventory records of the raw material which has been explained earlier in the inventory management part. The Material department keeps a complete check on the warehouses and the level of inventory there. The warehouse of JPL Noida sector 63 is located at Noida, sector 68. The Material department is kept up-to date about the inventory level. Any requirement from any department, in any at any time has to be given to the Material department and the Material department will thus issue the stock to the same department. NEWSPAPER INK ALUMINIUM PLATEPAPER
  • 14. 14 MRP enables and help JPL to avoid any delays and thus losses which may occur because of shortage of raw material. Such a loss and ignorance a print industry cannot afford because of high competition and it is a 24 hours running industry and thus have to have a good level of inventory all along. There is no inventory that is held for the finished goods as earlier explain that the shelf life of the product (newspaper) becomes nil after 6:00 pm. If in case any stock is left then it is sold off as scrap. TOTAL QUALITY MANAGEMENT Total Quality Management is a comprehensive and structured approach to organisational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback. TQM has two fundamental operational goals,viz.: 1. Careful design of the product or service 2. Ensuring that the organization’s systems can consistently produce the design. Jagran Prakashan Ltd follow ISO when there is audit in the company related to their organization’s system or designing of product or service of the newspapers. They have a proper systemized designing of the printing of newspaper. The unsold newspapers which are returned back are recycled back for further use. They have only 5% wastage as papers are of vital use for every human being. So there is less wastage of newspaper in the industry. Wastage in the newspaper industry is of five types: the cover, newspaper core in which the paper is rolled, when any paper during
  • 15. 15 manufacturing process has got cut in it, during hot and cold run of the machine(during cold run the paper comes out white which is again recycled for future) and during circulation of paper. Distribution Structure: Jagran PrakashanLtd Printing press Depots Clients Vendors Vendors Beat boys Newspaper strands Beat boys Newspaper starnds Customers
  • 16. 16 LEARNINGS  By this project of Operations Management we got the opportunity to visit the production house of Dainik Jagran which was located in Noida Sector-63.  There we learnt how the concepts of Operations Management are actually applied in an organization.  We are very thankful to our faculty Prof. Sonali Singh and Mr. Nitish Shukla who helped us to learn many new things.
  • 18. 18