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Business consists of different departments namely finance, marketing and operations. For example; finance could include in sectors like banking, real estate, insurance etc. Management is considered as an actual part of these three fundamental areas. Ä°n support and development of firms, strategic objectives operation management is considered along with the area of having efficiency and effectiveness of operations to be carried out smoothly. Opetaion management is indeed plays the most importanat part in the sucess of an organisation.
Consiesly operation management is nothing but the planning, controlling and scheduling of the activities which transforms input such as raw materials and labour into outputs which are finished goods and services. A set of good tools and techniques along with recognised and well developed concepts which belongs in the frame work is considered as operation management.
Operation Management is a vast term it deals with management of every aspect of an organization. Specifically in retail sector it is managing the products, services, processes and supply chains. It is the process of acquiring, developing and utilizing resources to fulfill the requirements of the clients, pertaining to their demands for goods and services. Operations management deals from strategic to tactical issues and operational levels. Strategic issues' consist of determining the place and size of where the products and services are to be manufactured,determining the use of various services and telecommunications and designing its supply chains. Tactical issues' consist of the plant structure, managing projects, equipment selection and restoration. Operational issues deal with production procedure and its control, managing inventory, upkeep ofquality and inspection, handling materials and maintenance of equipment.
Operational management is a concept more than a decade old. It has undergone several changes and was being modified according to the fast paced business environment. But during the course of its constant changes; the core and the basic objectives remain the same. The main objectives are customer relations, customer satisfaction, interpersonal relation etc. All the said terms can be consolidated into two words: "Customer Service ". Customer service acts like the blood cell for the success of the organisation. For the retail store to be financially or competitively successful or the prerequisites for being successful are being quality good focused and they must be competent in delivering quality service. (Inman, A.)
Inman, A. n.d. "Operations Management" 2010 Advameg. Inc. Viewed on 19 August, 2010.
The price offered is an important factor to enhance the competitive edge leading to the success of the organisation. The price levels should be maintained without making any compromise in the quality of the products. Since the main objective is to overhaul the quality line the manager should be willing to accept a smaller profit margin. Dealing with the vendors and making long term relations will help the purchasing to be much cheaper hence enabling us to maintain the low price levels. Consumers always want the products to be cheaper. Usually a customer is not aware of the brand difference, but has total awareness of the price difference and will opt for the goods which are priced lower.
It is the duty of branch manager to maintain the supply of quality products to the customers. Goodwill of an organisation is built on the quality of goods and services provided. Hence it is very important from the point of view of any business. In these changing times the company cannot be called a good company if they manufacture just good products. The after sales services of the product carry more importance the product itself. The customer always looks for convenience which is delivered by providing such services. Bearing in mind the review, one of the important duties of an operations manager is to maintain relations in an organisation so as to have a positive environment at the work place. If the employees themselves are not happy or cannot derive job satisfaction, giving good service to customers is even more difficult. Setting up proper logistics and customer care agency will help the operational manager to achieve a milestone for being able to provide goods at doorstep. Everything will be just a click or a call away for all the customers. EMPLOYEE SATISFACTION AND SERVICE QUALITY IN CONTACT CENTRES. Authors: AdomaitienÄ-, Roma1 email@example.com; SlatkeviÄienÄ-, GiedrÄ-1 firstname.lastname@example.org
Performance refers to the stores primary operating characteristics. For example, for Holden it means that their cars should run properly giving performance and mileage all these factors should be satisfactory to every consumer. For retail, performance is that the goods and prices must be desirable and should be able to attract customers. Proper care should be taken of the employees as they are the main performers on whom the betterment of any store is depended.
This review focuses more on the responsibilities as a manager and maintaining the business and social balances with the customers. Hence the manager has to first find the short comings in the organisation that are causing hindrance to the growth of the firm. The second objective should certainly be, analyse and solve those defects for the smooth running and thus increase the overall performance of the store. Leading a group is always a difficult and important job as there are other people who are following on your footsteps. An operational manager has to act as a leader and has to take vital and stubborn decisions for the betterment of his fellow working mates. On the basis of this the manager would certainly try to make good decisions instead of favourable ones. (INCREASING CUSTOMER SERVICE BEHAVIORS USING MANAGER- DELIVERED TASK CLARIFICATION AND SOCIAL PRAISE. Authors: Rice, Anna; Austin, John email@example.com; Gravina, Nicole.)
The manager should make sure that the quality provided to the customers is the prices that are claimed which are also known as conformance. Regular interim inspection will help to achieve it. Keeping a positive environment at the work place is necessary in today's business; it could only be done by developing new ideas and motivating the employees in order to maintain good surrounding. Research has shown that intended guide emotional display enables the employee to know employees emotional display, affective delivery, job attitudes etc. This review elaborates on all the above and how it affects the way they deal with the customers. This technique is predictable and hence can be used as the motivational force to display positive emotions and commitment in dealing with the customers.
Realizing and making an effort to integrate this practise should be the focus of the management. It will take a great deal to make this happen because the employees fail to realize that they are not displaying an appropriate emotion. ( Antecedents of Emotional Display Rule Commitment. Authors: Diefendorff, James M; Croyle, Meredith H)
In the context of the retail industry this would means that the storage and the transport of the goods should be such that the goods stay fresh and in consumable state for a longer time. Proper refrigeration and good logistics to transport the good should help us in giving good product every time to our customers. The customers should not worry about the reliability of the services provided by organisation. A good team of management for daily operations will ensure that the needs are met and no failure occurs in its way.
It is very important for a product to feel, smell and taste good. Though it is difficult to please every customer, it is certainly possible to provide a quality service and quality goods to as many customers as possible.
Perceived Quality will be concluded after looking into various tangible and intangible sides of the services provided to the customers as they are the lifelines to any business in order to succeed. If one customer is happy with our services, he is more likely to get many other customers as we. In modern times with the advent of technology like blogs or forums word of mouth has become a major source of information for the buyers. Hence maintaining relations with the customers and continuous efforts to make them happy is the key to success. This review states how different strategies are used for this which includes training to employees, design the store according to the customer preference.
A manager should first train employee's customer behaviour. On this they will be asked to deal with everyone. The employees who are consistently failing to perform their task will be expelled from their duty and a better replacement will be recruited in order for a smooth flow of work. A manager should also bring new technology into the store so as to make day to day processing transactions more reliable and convenient.( The Customer Relationship Management Strategies: Personal Needs Assessment of Training and Customer Turnover. Authors: Anvari, Royaryâ€¢firstname.lastname@example.org; Amin, Salmiah bt Mohmad.)
There are hundreds of ways to define service. In broader view it means easy to locate techniques, good and clean environment in the store. In case of delivery to customers, the goods should be on time and the way desired by the customer etc. Competitions will be kept in order to maintain an open environment at the work place. Different types of rewards should be given to the employees who are performing consistently well in the work. This practice is currently carried out by one of the largest retail food chain Mc Donald's. On monthly basis one of the high performing candidates (employee) is given a discount card on which he/she is entitled to get a 50% discount at any of their stores for period of 1 year. This type of tactics will certainly help the employee's of the firm and amplify the working effects at our retail outlet. (Server Emotional Experiences and Affective Service Delivery: Mechanisms Linking Climate for Service and Customer Outcomes. Authors:Yongmei Liu email@example.com; Jixia Yang2 firstname.lastname@example.org) (http://mcdonalds.com.au/#/home)
McDonald's Australia Limited ("McDonald's") 2009 McDonalds Corporation.
Flexibility is one of the key success factors in business. The prices in the store should be according to the market demand. To keep the customers content and to have an edge over the competitors, prices should be kept competitive at all times. Luxury or brand items will be kept at a bit higher prices looking at the level of consumption.
Innovation also plays a very vital role when it comes to development and modification of the product. These innovations if applied in a systematic and desired manner then the organisation can attain its goals. This has been elaborated in this review. The manager should encourage various new innovations and ideas. Each person will be getting the reward which is entitled to the people who are bringing new plans and ides for the betterment of the store. Proper work doing candidate will be given promotions in order to motivate him/her. So this is how motivation plays vital important role while it comes to employees and work related issues and it has always proved to be very effective. (Frontline employee motivation to participate in service innovation implementation. Authors: Cadwallader, Susan email@example.com; Jarvis, Cheryl Burke firstname.lastname@example.org; Bitner, Mary Jo3 email@example.com; Ostrom, Amy L.3 firstname.lastname@example.org)
Analysis of the service quality cannot be completed unless and until we look into the processes that will help us establish a performance and quality orientated services to the customers. Good understanding of process and capacity design will help us structure the operations of our store in order to reach the benchmark of customer satisfaction. Let us first understand what these two are.
Design Capacity refers to an upper most limit or ceiling on the load that an operating unit can handle. Ä°t is nothing but the match between the long term supply capasity of an organisation and the long term demand predicted. Design capacity can also be explained as a facility which is designed for the maximum output rate or service capacity an operation, process.
Demand for new products is very uncertain. Even the existing product may face an unpredicted demand variblity, capacity, flexiblity and, inventory are the mechanism which a firm can use to deal with its uncertainities. A firm can invest in suffiecient capacity to fulfill the product demand with high probablity. Capacity design is very uselfull tool when it comes to retail industry as in retail sector there is always an incoming and outgoing flow of goods and services. Ä°f capacity design is used in retail outlets it provides lot of help as the authority could figure out how much ammount of goods should be brought in order to maintain the supply and demand relationship. Now days it has become a hot tool or instrument which is carried out in most of the retail outlets and is prooving to be very effective.
( Brian T. Tomlin, 1992). http://web.mit.edu/sgraves/www/BTomlin%20Thesis.pdf
Tomlin, B. 1992 "Supply Chain Design:
Capacity, Flexibility And Wholesale Price Strategies" Massachusetts Institute of technology, Viewed on 28 August 2010,
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Process design is the map of the flow of the business operation for providing the goods to the customers. This includes operations like purchasing, warehousing of the goods, collating, polywrap management and shipping to the customers.
There are three strategies for the process namely process focused, repetitive focused, product focused.
In process focused the facilities are organised according to process. The activities of the similar processes are together, for example the drill process are always together. Banks, hospitals also follow the process focused strategy. It is also called as the intermittent process and the job shop. The advantages of this strategy are that it is possible for manufacturing high variety of products. It enables the organisation to have greater product flexibility. The capital investment required in such type of retail business is comparatively lower than the product focused.
The low volume manufacture output and jumbled flow are the major backdrops. Since this is a more job focused method there is a requirement of highly trained personnel. Personnel trained for the particular job results in higher productivity and lower marginal cost. Planning and control are required for every operation. This has a more complicated and difficult planning process. Controls need to be revamped at every stage.
Assembly lines are responsible for organizing the facilities in a repetitive focused environment. Various modules are prepared on the basis of parts and assembly made previously. As desired by the retail market, these different modules are combined. Different output options require the implication of different modules. Repetitive focused strategy is also called as the assembly line. Assembly lines are more structured than process focused. Production line enables quasi customisation. Repetitive focused or production line gets a major economic advantage from continuous process. This strategy gives the consumers a wide variety of products to choose.
Product focus is fairly a straight forward process. All the facilities are organised by the nature and features of the product. The facilities make sure that the customers are classified and are being provided with the products. This is the high volume generating strategy. Varieties of products are lower than that of process focused. Product focused strategies are mainly found in the organisations following discrete unit distribution or a line flow production.
In such type of product focused entity, variable cost per unit is low. The labours are skilled and trained. From a retail industry point of view this method is highly efficient in keeping in control the operations and can be planned in a straight and simple way. The resources can be used to the optimum level. On the other hand the varieties of product are low. This causes a hindrance in the flexibility in the product. The requirement of special type of equipments makes this an expensive strategy.
In the retail industry giving the customer good products at reasonable price and joy of shopping are the main objective. I would select the product focused strategy so that my customers can get not only diversified products but also a better quality product. Keeping the prices at a competitive price will further enhance the edge over other retail stores. Opting for customer survey is always a good option as one can get an idea about their needs and can change accordingly.
This review tells us about the advantages and disadvantages of taking customer feedback. This is a bit difficult to implement since not all employees are comfortable with this. The most important thing is to maintain the standards of the goods so as to increase sale of the supermarket. Proper fresh and standard goods will be provided to the consumers no matter what it cost to the treasury department of the supermarket. Feedback forms or online survey will be conducted on monthly basis. Though it's an overhead expense, it is good tool for self assessment. There are only improvements to be expected after that and my customers will be more contented with the goods and services provided. It is seen in ages that if the consumers are happy then there is no need to worry.(Organizational learning from customer feedback received by service employees. Authors: Wirtz, Jochen email@example.com; Tambyah, Siok Kuan; Mattila, Anna S)
The field of operation managment is gaining lot of importance now a days compared to the last two decades. One of the main reason for the awareness of operation management is the success of japanese manufacture and the viewpoint that the quality of japanese is far more better than that of american manufacturers. As a result many firms and manufacturers started beliving that operation management is as important as marketing and finance for the development of an organisation. Ä°n context with this, firm started adopting operation management as thier internal part of managemant in order to compete in a global market so that the operation starategy would support the mission and overall strategy of the firm.