Operation Management

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Question 1:

The administration of the practices of business is known as the operations


management.The purpose of the operation management is to emphasize on the
conversion of both the materials and labor work to turn into relevant products or
services that has the highest efficiency level in order to generate maximum profit for
the organization. Following globalization, the trends of operation management has
been changed management trends which are related to globalization are consisting of
trends such as the demographic, scientific, governance, economic interdependence,
and technology.
Looking at the case study, the operations management transformation process
demonstrated by FamilyMart Co. are the physical transformation and exchange
transformation. These are two transformation that is present in operation management
of FamilyMart Co.
The physical transformation is the changes in the input to manufacture better
output for the customers or the clients. In FamilyMart Co. The physical
transformation process involves the manufacturing part of the operation management.
This involves the changes in the physical characteristics of the materials of
FamilyMart Co. FamilyMart Co. Trannsformed physcially from selling Japanese
"yoshikin" home steamed bun and kanto cooking machine and bento shelf to selling
Chinese food portfolio such as the meat buns, rice balls, cold noodles, sandwiches and
midnight snacks.
The exchange transformation of FamilyMart Co. is involving the retailing aspect.
Retailing. Exchange tranformation involves the changes in the materials or service
offered by a company. FamilyMart Co. Exchange transformation happens when they
start to sell private brand goods which are from overseas also, offer food delivery
service and offered bill payment services. The private brand goods includes the fruit
juice and canned goods. The food delivery service is performed to deliver food to the
people ordered via FoodPanda. This is the new exchange transformation in
FamilyMart Co.
These are the operation management transformation process involved in
FamilyMart Co. These changes has been briefly explained above.
Question 2 : Analyse the competitive strategy of convenient stores business using
a suitable model.

Competitive strategy is the strategic approach that an organization uses to be


competitive in the market place with it’s rivalry companies. These competitive
strategy is best defined as the combination of all the decisions taken and actions
performed by the business to accomplish business goals and to secure a competitive
position in the market. These strategies are being placed by implementing setting
broad policies and plan for using the resources of a firm to best support its long-term
competitive strategy. These strategies can be implemented as the corporate strategy,
business strategy or functional strategy.
There are various tools that can be utilized to analyze the competitive strategy of
convenient stores business. For this case study, the selected tool is SWOT analysis.
SWOT analysis tool is the too that performs an environmental analysis of an
organization. SWOT stands for strength, weakness, opportunity and threats. This four
aspects are very crucial to be monitored in an organization to remain it’s
sustainability.
Strengths analyzes the existing organizational strengths that helps in the
sustainability of the organization. Weaknesses analyzes the existing weakness of the
organization that may harm the sustainability of the organization. Opportunities
analyzes the opportunity that an organization may have to remain it’s sustainability.
Threats analyzes the possible threats that may be risk and cause harm in the
sustainability of the organization. These four aspects analyzes in detail on the
environment of the organization to assess it’s competitive strategy. Environmental
analysis is performed in an organization to identify the status of internal and external
condition of the organization to function efficiently and successfully.

STRENGTH WEAKNESS
 Recognition as the second largest  No HALAL logo on products that
convenience store retail chain in are imported
the world  High cost for E-commerce
 Multiple outlets upgrade
 Open 24 hours a day
 Good relationship with suppliers
OPPORTUNITIES THREATS
 Increase in demand  High competition with other
 Technology based service(robots) convenience store
 Tight labour market
Table 1: SWOT Analysis

Based on the SWOT analysis of the convenience store, the strength of the
organization is the position as the second largest convenience store retail chain in the
world. This allows more recognition ad more support from the customers as they are
aware that this convenience store is globally recognized. It also has multiple outlets
around the world which enhance the reputation of the company. The brand image and
reputation lasting adds the point for customer attraction to choose this convenience
store.
This is because most of the products are offered. Thus, the customers who are
Islam does not prefer to buy due to HALAL issues. There is also another weakness
where the need of high cost for E-commerce upgrade. The convenience shop needs
huge capital to fund for E-commerce based upgrades to sell online.
On the opportunities aspect, there in increase in demand as there is growing
demand for the products. This raises the demand and supports the business of
convenience stores. To add this point, being the second top convenience store, they
had gained the fund for implementing robot in the business operations. This is another
opportunity for the convenience store to grow and be competitively advantage.
The threats available based on the analysis is the competition which is huge due
to the convenience store where most of the competitors apply similar strategies
resulting in large competitions. There is also labour issue where they face tight labour
shortage due to tight labour market.
Question 3 :

Seven quality control (7QC) tools can be used as the tools for quality
management (TQM) such as the flow chart, cause-effect-diagram, check sheet, Pareto
diagram, histogram, scatter plot and control charts. These TQM tools can be used in
all process phases, from the beginning of a product development up to management of
a production process and delivery (Neyestani, 2017). By using these TQM, the
organization analyzes the problem and its potential causes. The organization then
propose a solution and developed a plan to test and improve the problem.
For FamilyMart Co., the suggested TQM tool are such as the flow chart, cause-
effect-diagram, scatter plot and check sheet. These methods are suitable to monitor
it’s performance. The process on how to apply each tools are briefly described below:

Procedures:
FamilyMart Co. Has to first draw out the flow chart in order to determine the
proposed solution to solve issues such as defect on the name, expiry date and product
description.

Procedures:
FamilyMart Co. Has to use the cause-effect-diagram to analyze the root causes that
results in issues such as defect on the name, expiry date and product description.

FamilyMart Co. May use scatter plot to assess the opted solution has decreased the
defect in the product offered. his scatter plot provides details on the improvement of
the problem based on the proposed solution. Actions are performed according to the
set time period in the planned space. Action should be in accordance with the planned
plan.

Procedures:
FamilyMart Co. May use check sheet to assess the defect on their products such as
name, expiry date and product description. They can use this check sheet every 2
weeks to analyze the quality of the product offered and assess whether the solution
implemented is working or not. Assessment is done with certain systematic methods.
Assessment results or data are analyzed. This can measure the effectiveness of a plan.

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