Solution
Karan answered on
Sep 22 2020
Operations
Management
TABLE OF CONTENTS
Introduction 3
1. Investigating into Woolworths Operations 3
2. Existing business operations 3
3. Layout, location and flow of information 5
4. Discussion on supply chain management 7
5. Business quality aspect 8
6. Alternative managing operation aspect 9
7. Improvement of newly suggested aspect 10
Conclusion 10
References 11
Introduction
In the modern era, effective management of operations and supply chain is considered as vital for the growth and success of organisations. In simpler terms, operational management is defined as the business process used by companies to achieve the highest and best possible level of efficiency (Harvey Heineke and Lewis, 2016). On the other hand, supply chain management is defined as the process of control and improving the inflow and outflow of products and services of a business enterprise.
The present study is based on Woolworth’s supermarket which is a leading supermarket retailer in Australia and New Zealand. The report outlines the existing business operations of the selected organisations along with inefficiencies and ineffectiveness in the existing process. The significance of facility layouts and inventory control are also explained in the present study.
1. Investigating into Woolworths Operations
Operation management is considered as critical for businesses because the concept assists in ca
ying out the smooth flow of all operations and activities in the long-run. The operations at Woolworth supermarkets are directed towards the concept of sub-contracting with different suppliers (Choi, Cheng and Zhao, 2016). After ca
ying out the investigation of Woolworth operations, it has been identified that instead of buying stocks from the open market, the business emphasises on purchasing stock directly from the suppliers. Furthermore, the suppliers for Woolworth are the one who produces the products for Woolworth only. The benefit of purchasing the products directly from the supplier is that it helps in the developing and maintaining long-term relationships with the selected organisation and its suppliers.
2. Existing business operations
The existing business operations of Woolworth are directed towards purchasing the products from suppliers and selling the same to the customers or people in the target market. It can be expressed that Woolworth sell its products and services using online and offline channels of distributions (Santibanez-Gonzalez et al. 2016). The
and has developed and is operating with an e-commerce website, and at the same time, it is also operating with supermarket retail stores within the country. The businesses operations of Woolworth are also directed towards delivering high quality of assistance and services to the customers within the stores. In addition to this, the operations are also directed towards offering fresh and quality products to the customers.
The principles of operation management can be critical because they support in enhancing the overall effectiveness and efficiencies of the operations. Below mentioned are some crucial principles of operation management:
Reality- According to this principle of operation management, Woolworth is required to make sure that its process of operation management is directed towards problems and issues faced instead of focusing on tools and techniques (Bromiley and Rau, 2016).
Fundamentals – This principle of operation management outline the fact that businesses achieve the majority that is 80% of the overall success through maintaining effective records and discipline in the process of operations management. Woolworth is required to understand the fact that the only 20% of the success is attained by the implementation of different tools and techniques of operation management.
Accountability – The management of the selected business enterprise is responsible for making sure that appropriate rules and metrics are used during the process of operation management. At the same time, the managers working in Woolworth supermarket are accountable for ca
ying out regular inspection and monitoring of the process linked with operation management.
Change – The selected organisation is also required to understand the fact that changes are essential for success and growth in the long run. Therefore, this principle of operation management outlines the fact that instead of sticking to specific tools and techniques of operation management, businesses should em
ace changes in the tools and techniques.
Managing operations is not an easy task for companies, and there are wide ranges of issues and challenges faced by businesses during the same (Bromiley and Rau, 2016). Sustainability is the major issue in the operation management practice of Woolworth, and the issue has resulted in making the process ineffective and inefficient. The selected business is required to take co
ective measures to make its existing process of operation management more sustainable. Apart from this, inconsistence communication is also a major challenge which has resulted in making the operation management process of Woolworth as ineffective and inefficient.
It can be expressed that poor communication among internal and external stakeholder has resulted in creating issues for Woolworth to manage the activities and operations in the best possible manner (Mahadevan, 2015). The
and is required to emphasise on improving its communication process to enhance the effectiveness and overall efficiencies of the operational management process in the long-run.
3. Layout, location and flow of information
Considering the case of Woolworth supermarket, it can be expressed that the majority of the products are sourced from the local farmers and growers operating in the country. The below-mentioned map represents the layout and location of sourcing ca
ied out by Woolworths
Figure 1: Layout and Location of Woolworths sourcing
(Source: The Facts About Grocery Retailing at Woolworths, 2008)
To deliver fast, effective and satisfactory services to its customers, the selected organisation has emphasised on opening physical stores in different locations of the country (Harvey, Heineke and Lewis, 2016)....