ANS 1. Hindustan Coca Cola Beverages (HCCB) HCCB is a FMCG Company in India answerable for creating India's preferred drink juices like CocaCola and Minute Maid. It began in 1997 with the straightforward point of making drinks for the India of the 21st century. They regulate fabricating the last item, bundling, conveyance and promoting the refreshment to the client and distributing accomplices who at that point offer the item to a definitive customer. The provisions of crude materials are for the most part connected to explicit nutritive and nonnutritive sugars which are accessible either inside the United States or outside. There are various wellsprings of crude materials and they are regularly subject of costs changes. HCCB has a wide decision of crude materials providers so it can spread the costs vacillation among them and in this manner control its gracefully chain. The obtainment providers must satisfy certain guideline to manage HCCB Company and should resolve to control standards and fuse manageability. Subsequently, HCCB can accomplish its goal of value and control. The HCCB gracefully fasten association permits to improve client assistance and to streamline cost and venture. Contenders: 1. PepsiCo: PepsiCo is Hindustan Coca-Cola Beverages' #3 rival. PepsiCo was established in 1898 in Purchase, New York. PepsiCo is in the Non-Alcoholic Beverages industry. PepsiCo produces $68.1B more income than Hindustan Coca-Cola Beverages. PepsiCo is the second greatest player in the worldwide food and refreshment industry. PepsiCo's activities the executives does as such through market-based innovative work and item development. PepsiCo conducts statistical surveying about current patterns, for example, customer ways of life. The consequences of such research are utilized to decide future headings of PepsiCo's items, for example, future variations of Pepsi. PepsiCo's tasks the board means to give the greatest items under the organization's "Human Sustainability" objectives. For instance, new PepsiCo items are generally improved variations, for example, low-calorie Pepsi items and less-salt Frito-Lay items. 2. Tetra Pak: Tetra Pak has been one of Hindustan Coca-Cola Beverages' top rivals. Tetra Pak is a Private organization that was established in Lausanne, Vaud in 1951. Tetra Pak contends in the Food Processing industry. Tetra Pak has 25,400 additional representatives versus Hindustan CocaCola Beverages. 3. Unicorn Industries is the greatest opponent of Hindustan Coca-Cola Beverages. Unicorn Industries was established in 2014, and its base camp is in Berlin, Berlin. Unicorn Industries works in the Apparel Retail industry. Unicorn Industries has 68 less workers than Hindustan Coca-Cola Beverages. Arrangement of market necessities and operational capacities of the organization Appropriation: HCCB is one of India's biggest FMCG organizations and it along these lines has certain utilization focuses (retail outlets/cafés and so forth) in regions that have discontinuous or no force gracefully. Standard visi-coolers, that we all know about, set aside a great deal of effort to chill items (in view of irregular power) and, when the lights went off, they would not hold the chill, either. In such a circumstance, jugs of different refreshments couldn't be chilled. There was a critical requirement for coolers that could hold cooling without nonstop force gracefully. The HCCB group worked with providers and the worldwide R&D groups of The Coca-Cola Company, and built up a chest cooler with eutectic arrangements that had the option to hold the chilling for as long as 12 hours with a serving temperature of under 10°C. Near 60,000 units of these coolers have just advanced into the market and are utilized to circulate your preferred items. This caused HCCB to oblige more shoppers, who required our juices, water, dairy or shimmering items. The second chilling gear that must be conceptualized distinctively with the goal that they could help disseminate HCCB items was the localisation of the wellspring container. HCCB and Coca-Cola India worked together with one of its Mumbai-based providers - Western Refrigeration - and before long concocted a restricted arrangement. It was nearly at standard regarding usefulness and better as far as execution in contrast with the globally made hardware. The Company was additionally ready to spare 35-40% regarding CapEx (Capital Expenditure) interest in purchasing the hardware. Because of this creativity, the quantity of wellspring hardware put by HCCB, has multiplied in the range of the most recent three years, when contrasted with the most recent 10 years. Digitization: The key to appropriating a FMCG item and keeping the clients' cheerful is the same as what any merchant does each day. He follows a thorough calendar of arriving at the market each day to meet retailers in his general vicinity. As an agent for HCCB, when he is on an ordinary visit to the market, he gets a direct comprehension of the interest, basic for the organization to design. With an associated tablet close by, he can offer the best arrangements to his clients (retailers) as and when he is on the day by day adjusts in the market. On the off chance that there is any client about who he has to know more, it is only a tick away on his constantly associated tablet. As retailer (clients') place arranges, the product on the tab is discreetly preparing the request to make the most ideal dissemination plan to re-fill the retailer's reason with the item that they most need. His clients are thinking that its an extraordinary method of working as well. At the point when he has finished taking a stock of the considerable number of items that are required by the retailer, the last spends and edge for the client is shown on his tablet screen. The computerized capacity and the utilization of the tab is an ability that different merchants have gained in the course of the most recent two years at HCCB. Alongside hundreds like him, HCCB composed a fourteen day preparing to upgrade his commonality with the computerized environment and for the utilization of tablets to help the pre-deals group to concentrate on their activity better. Programmed Storage and Retrieval System: The Automatic Storage and Retrieval System (ASRS) introduced at distribution center, inside the HCCB industrial facility at Goblej, Gujarat, is a progressive advance in the organization's worth chain of coordinations the board. There are a couple ASRS in India however this is interesting. Essentially, this not just oversees mass bed in bed out activity, yet it likewise oversees Mixed Pallet Making, in accordance with our technique to make Supply Chain agile. It is effectively the first of its sort in the drink business in India. ASRS streamlines item stockpiling, material stream and recovery inside the distribution center, consequently empowering quicker conveyance of items. With machines overseeing set aside and recovery of completed products, there is just about zero blunder. On account of ASRS, the whole material dealing with activity in the organization's high-inlet Goblej distribution center, directly from accepting, putting away, blended bed making to stacking of definite items is completed flawlessly, according to the request satisfaction plan with no human intercession. The framework converses with our ERP and Transport Management framework on an ongoing premise to satisfy client arranges effectively. The framework is modified to meet the dynamic and developing requests of the advanced business. Created as a green field venture by HCCB in 2018, the ASRS office in the stockroom has drastically improved the organization's structure handling throughput and dissemination metrices. Adaptability: The greatest favorable position of utilizing ASRS innovation is the adaptability that it accommodates acclimating to the inconstancy sought after according to season. The innovation empowers the distribution center to increase its ability to take into account as much as a 20% spike sought after inside one hour with no extra labor prerequisite. Simply envision, if one somehow happened to orchestrate extra labor and different assets to deal with the remaining burden of the expanded interest and if the administrators were to physically sort items, read dispatching marks and push the beds out on transports – this would have been a bad dream. The computerized arrangement is characteristically adaptable preparing the distribution center for future extension. The highest point of-the-line innovation is for sure an incredible empowering agent for the association to expand volume, satisfy orders, dispose of arranging mistakes, guarantee conveyed bundled quality and win clients' trust and certainty. ANS 2: Yes. Operation strategy should always aim for operational excellence. Operational excellence started from manufacturing environment the sole objective of which is to meet regulatory requirements. Operational excellence as the name suggest is done or achieved to mitigate risks from catastrophic failures. Strategy being of method or plan chosen to bring about a desired future or achieve a desired goal or solution to a problem. In order for any operational strategy to be successful operational excellence becomes fundamental. Every organisation, no matter in what sector, heaven operation functions because every organisation produces some mix of product and services. This idea has given birth to input transformation output model of operations. Here, all operations used there resources and processes to transform inputs into outputs that satisfy customer need. Operational strategy is something that is not an individual process and it has more to do with overall total transformation process that affects the whole business. It is mainly concerned with the long term development of the company's operational resources and to provide a basis for a sustainable advantage. The strategic impact that effective operations and process management can have is quite important. Example: From Tesco to IKEA, from Ryanair to Singapore Airlines, it is not just that their operations strategy provides these companies with adequate support; it is their operations strategy that is the pivotal reason for their competitive superiority. The idea of transformation model is applied to all types of operations manufacturing and services. hotels produce accommodation services financial services invest store or sell us money and investment opportunities, and manufacturing businesses physically change the shape and the nature of materials to produce products. Alto this business is are from different sectors de chef a significantly similar set of issues and problems. • • • • • • Other than these operational functions, certain marketing common finance, information systems and HRM are also included. They all transform input into output to satisfy customer need. Reducing the cost of production of products and services in an efficient way. Try and increase revenue by promoting outstanding customer satisfaction that can be only achieved by providing exceptional quality, responsiveness, reliability and flexibility. Operational related risk is something that should be aimed to reduce and resilience should be paid and promoted. Resilience is something that gives the company and the processes an ability to recover after operational failure. overall operational excellence can reduce the amount of investment that is necessary to produce required type of and quantity of product and services. It becomes evident time and time again that the most effective way to improve speed is to build responses that are flexible in nature. Thus we understand that operational efficiency and excellence is something that operational strategy always aim for. A convincing strategic intent, a sound strategy and robust action plan, an almost perfect methodical deployment of plants all the way from ground level and a method to measure this progress is what makes buzzing operational excellence a journey that an operation strategy always aimed for. Sand cone model of operational excellence. According to the sandcone theory, the first priority should be quality, since this is a precondition to all lasting improvement. Only when the operation has reached a minimally acceptable level in quality should it then tackle the next issue, that of internal dependability. Importantly though, moving on to include dependability in the improvement process should not stop the operation making further improvements in quality. Indeed, improvement in dependability will actually require further improvement in quality. Once a critical level of dependability is reached, enough to provide some stability to the operation, the next stage is to turn attention to the speed of internal throughput, but again only while continuing to improve quality and dependability further. Soon it will become evident that the most effective way to improve speed is through improvements in response flexibility, that is, changing things more quickly within the operation: for example, reacting to new customer requirements quickly, changing production volumes rapidly and introducing new products faster. Again, including flexibility in the improvement process should not divert attention from continuing to work further on quality, dependability and speed. Only now, according to the sandcone theory, should cost be tackled head on. The ‘sandcone model’ is so called because the sand is analogous to management effort and resources. To build a stable sandcone a stable foundation of quality improvement must be created. Upon such a foundation one can build layers of dependability, speed, flexibility and cost – but only by widening up the lower parts of the sandcone as it is built up (see Figure 7.8). Building up improvement is thus a cumulative process, not a sequential one. ANS 3 (A) Disruptive Innovation: Disruptive Innovation refers to a technology whose application significantly affects the way a market or industry functions. Example: The Internet which significantly altered the way companies did business and which negatively impacted companies that were unwilling to adapt to it. The Internet is an example of disruptive innovation, in that it turned the business world on its head, forcing companies to either adapt or lose out. • E-commerce is another example of disruption. People especially during the on-going pandemic have adapted themselves to home delivery and online ordering. People who stick to brick and mortar will be victims of this disruption. There are other innumerable examples of disruptions like PayTM, Google Pay etc which boosted the online payment in our country. • Procter & Gamble’s preeminence in the packaged goods industry has its roots in the early 1930s, when the company began to formalize its approach to brand management. In the decades since, P&G has steadily built upon its early success in creating value out of intangible assets. P&G’s product portfolio includes 16 brands that have produced $1 billion-plus in sales every year. • Visa, the world’s first near-virtual company, owes its success to organizational innovation. When Visa’s founder banks formed a consortium in the United States in the early 1970s, they laid the groundwork for one of the world’s most ubiquitous brands. Today, Visa is a global financial web that links more than 21,000 financial institutions and more than 1.3 billion cardholders. • Linux, the computer operating system, is the best-known example of a recent management innovation: open source development. Based on other innovations like the general public license and online collaboration tools, open source development has proved to be a highly effective mechanism for eliciting and coordinating the efforts of geographically dispersed individuals. • A classic example of the disruptive innovation of the Internet being unleashed was the restructuring of the bookselling industry. The big bookselling chains lost out to Amazon because it could display its inventory without having to own a physical store in every town and then ship the book to the buyer's home. In contrast, the Model T car is not considered disruptive because it was an improvement on existing technology and it wasn't widely adopted upon its release. The auto industry did not take off until mass production brought prices down, moving the entire transportation system from hooves to wheels. In that sense, the system of mass production does meet the criteria for disruptive innovation. Disruptive innovation refers to a new development that dramatically changes the way a structure or industry functions. The term refers to the use of technology that upsets a structure, as opposed to disruptive technology, which refers to the technology itself. These technologies and the way they were incorporated into the business were primarily designed to allow companies to remain competitive, or at least maintain a status quo. Disruptive technologies and the way they are integrated—the disruptive innovations—were less easy to plan for and potentially more devastating to companies that did not pay enough attention to them. Disruptive innovation is differentiated from disruptive technology in that it focuses on the use of the technology rather than the technology itself. a. Sustainable Innovation: While disruptive innovation means creating a new market but applying or different set of values which ultimately and unexpectedly over-take an existing market, sustainable innovation is that which will not affect any existing market. Sustainable Innovation can be Revolutionary or Evolutionary. EVOLUTION is defined as gradual change, adaptation, progression, metamorphosis. REVOLUTION is defined as forcible overthrow for an entirely new system…drastic, disruptive, far-reaching, momentous change. Companies must pursue both revolutionary and evolutionary innovation to survive. Evolutionary innovation focuses on orientation towards today’s customers and revolutionary innovation focuses on orientation of tomorrow’s customers. Only revolutionary innovation is associated with uncertainty. Evolutionary Innovation mounts challenging hill after hill at an even pace, day after day. Evolutionary innovation plans for the world as it could be and begins calculated migration to new ideas while understanding the world as it is today. Revolutionary innovation (particularly unmitigated, first or speed to market revolutionary innovation) can deplete energy and resources; akin to climbing a hill comprised of Confectioner’s sugar. Frenetic pacing over unstable, dramatically varied terrain – forcing change for a new system or idea prematurely while ignoring the realities of today’s market — is a lot more challenging. Revolutionary innovation (speed or first to market concepts) is only optimal under the following conditions: high performance products, long product lifecycles, a relatively long window of market opportunity, relatively high sales, stable margins, and relatively flat development costs. Only given these conditions, can companies generate sufficient revenue to offset the increased costs incurred with speed to market and revolutionary innovation. Examples: The Automotive Industry: Fuel efficiency standards and adaptation to hybrid combining combustion and electric has achieved relative success, allowing for orderly transition of supply manufacturers to new reality. The Energy Industry: Development of shale gas / fracking implications for mix of use of refined oil has been successful. The Technology Industry: Laptops were an evolution of the mainframe computer — and they caught on like wildfire. iTunes (and now Spotify) have evolved listening and file swapping for the Digital Age. The Cloud is not new breakthrough technology; rather it is “a continuous, step-by-step evolution.” The Transportation Industry: Building out and modernizing traditional rail transit in known areas of dense population to include automated light rail has been successful. ANS 5 (A) Methodology and culture are among the essential switches available to top pioneers in their endless mission to keep up authoritative reasonability and viability. System offers a conventional rationale for the organization's objectives and arranges individuals around them. Culture communicates objectives through qualities and convictions and aides action through shared presumptions and gathering standards. Methodology gives clearness and center to aggregate activity and dynamic. It depends on plans and sets of decisions to prepare individuals and can regularly be implemented by both solid prizes for accomplishing objectives and ramifications for neglecting to do as such. In a perfect world, it additionally joins versatile components that can filter and investigate the outside condition and sense when changes are required to keep up coherence and development. Administration goes together with procedure arrangement, and most pioneers comprehend the essentials. Culture, be that as it may, is a progressively tricky switch, since quite a bit of it is moored in implicit practices, mentalities, and social examples. In spite of the fact that the significance of culture in deciding security and operational execution is perceived, associations make some intense memories moving beyond the language and utilizing society as a switch to drive improvement. This is regularly because of absence of a typical comprehension of what culture is, the way it is shaped and the stuff it to transform it. Association Culture: Shared Assumptions Influence Behavior The way of life of a gathering is an example of shared essential suppositions that was found out by a gathering as it tackled its issues, that has functioned admirably enough to be viewed as substantial and, in this way, to be instructed to new individuals as the right method to see, think, and feel corresponding to those issues. This meaning of culture centers around "the right method to see, think, and feel," which thusly impacts individual and cooperative choice creation and conduct in the work environment. After some time, associations create examples of conduct mirroring the way of life, and affecting EHS and operational execution in everyday activities. It is not necessarily the case that culture exclusively decides execution. Or maybe it is a key part of an association that connects with and impacts different measurements, for example, procedure, structures, frameworks, procedures, innovation, and assets. How culture impacts execution doesn't rely upon the way of life alone, yet rather on its relationship to the hierarchical condition it has a place. Influence esteems and culture to acquire operational greatness. The beginning stage for any culture change activity is official authority. At least one key individuals at the top need to conclude that something about the present methods of working needs to change, at that point build up an unmistakable vision for the required change. Above all, they have to begin "strolling the discussion" in a noticeable way and enrolling others to do as such. The key is that the change activity must be something beyond giving orders and making declarations, pioneers need to set a steady model and enroll others to do as such. A great case of top-down authority as the lynchpin of culture change is the methodology taken by Paul O'Neil at aluminum producer, Alcoa when he became CEO in 1987. O'Neil's first request of business with all partner gatherings - speculators, the board, and representatives was to make a pledge to work environment wellbeing; the TOP need for him by and by, and the organization. He accepted that this center would ingrain a culture of "constant greatness" that would pervade the association. His methodology worked. During his 13-year residency as CEO, Alcoa's lost workday occurrence rate tumbled from 1.86 to 0.2. Concentrating on improving security prompted the improvement of wasteful assembling procedures and item quality. Net gain expanded five-overlay. ANS 5 (B) Operations managers should, to a much greater extent, include flexibility as a key component when developing their operations and manufacturing strategies. Flexibility allows a business to respond effectively and efficiently to fluctuations from the norm. In fact the beneficial impact an operations strategy can have on performance, provided flexibility is included in the strategy. Two trends in many markets make development flexibility particularly important. The first is the pace and magnitude of environmental change. Although flexibility may not be needed in relatively predictable environments, it is clearly valuable in more fast-moving and volatile environments. The second factor, however, which amplifies environmental volatility is increasing complexity and interconnectedness of products and services. The way flexibility can be achieved in different aspects is al follows: – Flexibility in coping with incoming materials of varying quality levels – Flexibility in satisfying the market demand for products of varying quality levels – Flexibility in competing against new products introduced by competitors – Flexibility in modifying existing products – Flexibility in changing delivery and development schedules – Flexibility in accepting demand volumes of varying levels – Flexibility in making changes to the product mix – Flexibility in coping with changes to the resource mix One of the biggest benefits of development flexibility is that it can reduce development risk. Much development risk derives from the changes that occur during the development period. This concept of focus is both powerful and proven because at its heart lies a very simple notion, that many operations are carrying out too many (often conflicting) tasks. The obvious result is that they are unable to perform them all with any real degree of success, whereas concentrating on one or two specific objectives, even at the expense of adopting a vulnerable ‘concave’ trade-off curve as discussed previously, can lead to substantially superior performance in those few objectives. It means redeploying operations resources to the needs of only a very specific part of the market. Most of the early work on what was then called the ‘focused factory’ concept was carried out by Wickham Skinner of Harvard Business School. Based on his ideas of how trade-offs dominated operations decision making, he argued that one way of achieving an effective operations strategy is through the concept of factory focus. This meant that first a business should establish a consistent set of policies for the various elements of its operations, which will support, not only each other, but also marketing requirements. Second, because of the inherent trade-offs, one operation cannot provide peak performance in all performance objectives at the same time. What we have called ‘focus’ is very similar to the process of segmentation. In fact it can be regarded as operations segmentation. Operations, like markets, are complex. A whole range of different skills, process technologies, flow sequences, knowledge applications, individual decisions, and so on, come together to create a range of different products and/or services. The equipment, systems and procedures that are necessary to achieve a more limited range of tasks for a smaller set of customers could also result in lower (especially overhead) costs. Focus, according to Skinner, can be expressed as dedicating each operation to a limited, concise, manageable set of products, technologies, volumes and markets, then structuring policies and support services so they focus on one explicit task, rather than on a variety of inconsistent, conflicting, implicit tasks. Performance objective focus. The operation is set up solely to satisfy the performance requirements of a particular market or market segment. So all products or services produced in an operation have very similar characteristics in terms of generic performance objectives. ●● Product/service specification focus. The operation is set up for a clearly defined product or service, or range of products or services, the implication being that each defined range of products or services is targeted at a clearly defined market segment. ●● Geographic focus. Sometimes operations can be segmented in terms of the geographic market they serve. This may be because the characteristics of a company’s different market segments are largely defined by their geographic location. Alternatively, it may mean that the nature of the service offered by an operation is geographically limited. Most high-contact operations, such as fast-food restaurants, would fall into this category. ●● Variety focus. A company may wish to segment its operations in terms of the number of different activities (usually dictated by the number of different products or services) it is engaged in. So, for example, one site may concentrate on relatively low variety or standardised products and services while another concentrates on high variety or customised products and services. ●● Volume focus. High-volume operations, with their emphasis on standardisation and repetition, are likely to need different process technologies, labour skills and planningand control systems from those with lower volume. Volume focus extends this thinking to the creation of separate operations for different volume requirements. ●● Process requirements focus. Here, a particular technology is the point of focus for the operation. This allows the organisation to concentrate on extending its knowledge and expertise about the process. Over the life cycle of a production/ service system, the likely advantage to be gained from a process focus will change. As an operation starts up and moves into the growth phase, building process capability will be critical; however, as volumes stabilise the process itself will become more stable. A process focus can also become very significant as volumes decline and the organisation seeks to redirect its operations. However, many firms choose to close an operation rather than redirect it. ANS 6 (A) A recurring theme in operations process development is the idea that continuous improvement is cyclical in nature – a literally never-ending cycle of repeatedly questioning and adjusting the detailed workings of processes. There are many improvement cycles which attempt to provide a prescription for continuous improvement, some of them proposed by academics, others devised by consultancy firms. And although most of these cycles are not ‘strategic’, the concept of improvement as a cycle can be translated to mean an ongoing readjustment of strategic understandings,objectives and performance. In fact the model of operations strategy and reconciliation between market requirements and operations resources itself implies ongoing cyclical readjustment. Market potential responds to the capabilities which the operations function is capable of deploying. Conversely, the operation adjusts its resources and processes in response to the direction set by the company’s intended market position. Also, within the operations function, operations capabilities arecontinually developed or evolved by learning how to use operations resources and processes more effectively. Similarly, within the marketing function, the company’s intended market position may be refined and adjusted at least partly by the potential market positioning made possible because of operations capabilities. ● Direct. A company’s intended market position is a major influence on how the operations function builds up its resources and processes. Some authorities argue that the most important feature of any improvement path is that of selecting a direction. In other words, even micro-level, employee-driven improvement efforts must reflect the intended strategic direction of the firm. ● Develop. Within the operations function those resources and processes are increasingly understood and developed over time so as to establish the capabilities of the operation. Essentially this is a process of learning. ● Deploy. Operations capabilities need to be leveraged into the company’s markets. These capabilities, in effect, define the range of potential market positions which the company may wish to adopt. But this will depend on how effectively operations capabilities are articulated and promoted within the organisation. ● Market strategy. The potential market positions that are made possible by an operation’s capabilities are not always adopted. An important element in any company’s market strategy is to decide which of many alternative market positions it wishes to adopt. Strictly, this lies outside the concerns of operations strategy. In reality, the improvement process is never so straightforward, sequential or simple. This cyclical model is not prescriptive. Rather, it merely identifies the types of activity which together contribute to operations improvement at a strategic level. Moreover, no organisation would execute each link in the cycle in a rigorous sequential manner. The activities of directing the overall shape of the operations resources and processes, developing their capabilities through learning, deploying the operations contribution and deciding on market strategy, all should occur continually and simultaneously. ANS 6 (B) In the automobile industry, Toyota, a Japanese firm, acts as a good example of a company that has a very strong relationship with its suppliers. It follows the ”Keiretsu” model. Some of the important features are continuous feedback system, clustering of suppliers around Toyota’s assembly plants and more focus on face to face meetings. In the aircraft manufacturing industry, Boeing has held the first mover advantage. To bridge the gap, AirBus has relied heavily on suppliers all across the world. In fact, over the 30-odd years of Airbus’ existence up to the A380 project, it had built up a network of 1,500 contractors in more than 30 countries. Procurement was one of the major branches of the Airbus. The case that is referred to is the Greenville Operation case. The Beginning: The Greenville Operation was an operation undertaken by Carlsen group that set up a new site with much larger capacity to manufacture photoresist imaging film at a higher quality and with a lower overall cost. This operation proved successful for Carlsen group and resulted in a 100% supply agreement with Phanchem for 10 years. The Environment: Both Carlsen group and Phanchem have heavily invested in each other and are mutually reliant on each other’s success. Phanchem needs Carlsen to be successful to be able to fulfill their orders and Carlsen directly benefits from Phanchem’s success as their sole supplier of photoresist imaging film. The Issue: Phanchem and managers at Carlsen have determined that moving Phanchem to an extension of the Greenville plant would be beneficial to both Phanchem and Carlsen. The main board of Carlsen has concerns over this move as providing factory space is a long way from Carlsen’s core business, and operating this close to a customer opens up even more concerns. Relationship: During the start up of The Greenville Operation, Phanchem began co-operation with Carlsen and significaly contributed to the overall success of the operation. Phanchem staff undertook burdens that were caused by Carlsen machines and Carlsen invested in more reliable machines to ensure supply was continual to Phanchem. Sharing each other’s burdens created a stronger bond between the two companies that could not be defined in a contractual agreement. The site was selected partly because of the cooperation from the authorities and partly because of the intrinsic attractiveness of the area. Technology: The decision regarding the design of the process technology what faced by the technical design team. Finally, the construction of the new extension proceeded smoothly with no significant deviation from the design or time frame. The customer was involved from the very beginning. Few problems which the customer had where about shifting their operations rather than any interface problems. It concludes that, managers can present their proposal to the customers. Specially the industrial customer who is where is specific about a lot of things. It may require several months of persuasion. Nevertheless all the concerns will be shared and discussed and capabilities will be achieved.