Operations Management And Decision Making: A Case Study Of Woolworths

Logistic Regression Analysis to Identify Differences Between Manufacturing and Service Industries

This document focuses on demonstrating the critical components that are associated with operations management function within different organizations. The concept of operations management is an essential part of any business organization which helps to manage successful delivery of products or services to the customers. This plan also illustrates upon relationship between the critical components of operations management with decision making and value chain. The discussions are also provided in this document to reflect on the principles and quantitative methodologies that assists decision making for the operations management. This document also highlights the role played by operations management to facilitate strategic management of organizations as well as supply chains.

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The focus of this plan is on analyzing the concept of operations management within a supermarket store “Woolworths” that is situated in CBD of Sydney. The chosen organization “Woolworths” is a prominent chain of retail stores that operates in Australia and various countries throughout the globe. Woolworths have developed measures starting from store to retail outlets to ensure quality associations that are offered by the staffs. Current circumstance of the Woolworths branch is that they are having issues with the individual execution of the branch staff, which is affecting the business processes of the organization.

Operational framework is a business limit of an affiliation, which is, as it were, associated with supervision, diagram and refreshing of the business errand for production of stock and organization (Greco, Figueira & Ehrgott, 2016). An association can layout a convincing and capable system for using resources and work process by securing of mechanically push contraptions and contracting of talented staff. Operational technique of Woolworth’s is relied upon to pass on the quality things and organizations to customers. Operational technique is grasped by operational divisions. Under this division various kind of regions are administered to like organization of store system and scattering centers, enthusiasm for unfaltering difference in information advancement and methodology to diminish the shrinkage.

Woolworth believes in sub-contracting with its suppliers, so it does not have manufacturing plant. Along these lines, the association needs to improve assurance methodology of suppliers, as the idea of things received from suppliers will choose satisfaction of customers. Woolworth underlines on developing whole deal relationship with supplier, since it does not acknowledge to buy a thing from open market (Christopher, 2016). Or on the other hand perhaps it has confidence in obtaining stock from the suppliers, who are conveying things only for Woolworth.

Predictor Variables for Successful IT Programs in Manufacturing and Service Industries

In every organization, there are operations function required for effective management of their business processes which is defined as operations. The aim of almost every organization is associated with delivery of products or services. To do this, they have to get resources, change over them into yields and scatter them to their proposed customers. Woolworths retails the combination of products as well as services where goods are tangible and keeping in mind that the organizations are unimportant. Association implied as a demonstrating that is done to or for clients. Slope (2017), strengthen that association shapes require the cooperation of the client without the client, advantage outlines cannot happen. Association at Woolworths are made and expended in the meantime right when the clients are shopping at Woolworths.

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Woolworths have developed measures starting from store to retail outlets to ensure quality associations that are offered by the staffs. The process are stock managing, displaying stock on racks as well as helping clients inside the outlet so that less pressure is on the customers. The differing accumulations of evident things are easily reached at Woolworths that involves the base client advantage transport. As the clients chooses the stock and passes it to the counter to acquire. The self-checkout counters are in like course accessible at the particular outlets of Woolworths, for the straightforwardness of the clients to chop down the need of the relationship from the Woolworths staff, they do have a staff open for assisting clients at the self-checkout counters and this cannot be considered as the aggregate kind of alliance (Rezaei, 2015). Thusly, affiliations those are reliant on client joint effort causes disturbances in managing successful connection process outline. Organization is given by an organization transport structure which fuses workplaces, methods and capacities anticipated that would give the organization.

By virtue of Woolworths retail outlet there is lack found in assessing organization quality execution in light of inspected criteria which prompts poor organization quality and declining customer steadfastness. The affiliation ought to research what is going on outside the affiliation and how it impacts the relationship in setting of future and recognizing openings and threats for the future preferred standpoint of the affiliation. Furthermore, also researching the affiliation including its quality and deficiency (perhaps doing SWOT examination). Setting up decrees of mission, vision and characteristics furthermore helps in the undertaking methodology for future. Working up of goals to accomplish for what is to come. Recognizing how these targets are to be accomplished, for instance, (obligations, strategies and objectives). Execution destinations to be developed by the relationship for the future framework. Resources will be required to achieve the destinations for what is to come. Accordingly, they should manage the benefits in show so they can use these advantages later on to achieve various leveled goals. Planning is most basic for the future goals.

Critical Components of Operations Management

Quantitative procedures enable an administrator to enhance the general nature of decision making. These procedures are most ordinarily utilized as a part of the discerning/intelligent choice model, yet it could be applied in alternate models also. Decision tree, Payback analysis along with Simulations are considered as some of the renowned procedures that assists to make decisions in operations management.

Decision Tree: An aggregate photograph of potential choices and authorizations are reflected through decision trees such that an administrator is able to chart elective decision ways. This procedure is a significant strategy to dismember obtaining, displaying, theories, purchasing of equipment’s, assessment and similar choices that incorporate a development of little judgments (Tjader et al., 2014). The role of decision trees is evaluation of decisions at times of risks so that proper decisions can be taken for fruitful operations management.

The term “decision tree” begins with sensible arrival of the method that ensures fundamental decision which is considered as the basis for decision making. The diverse decisions, in perspective of probable future natural situations and the settlements related with each one in the decision making group from the capacity compartment.

This procedure drive a chairman to be expressive while looking at situations related to future choices and selecting the consequence of diverse decisions. It is considered as a versatile strategy (Helleno et al., 2015). It can be utilized for a few conditions where complement could be put into progressive decisions, probability of occurring different situations or highlighting the decisions.

Payback Analysis: This technique proves to be useful in case a director requires to choose whether a piece of hardware has to be purchased or not. For instance, there is a requirement to buy cars to start a car rental organization. In spite of the fact that low car may set aside a less opportunity to pay off while more rich models may be requested by few customers (Walker et al., 2014). To choose which autos to buy, a chief ought to think about a few components, for example, the normal valuable existence of car, its guarantee as well as record or repairs, the protection costs and obviously, the rental interest associated with the car. In view of the data accumulated, a chief would then be able to rank options in light of the price of every car. An expensive car might be more suitable in view of its more drawn out life and client rental request. The technique, obviously, is for the administrator to pick the elective that has the speediest payback of the underlying expense.

Woolworths: A Case Study on Operations Management

Numerous people utilize payback examination when they choose whether they should proceed with their training. They decide how much courses will cost, how much compensation they will procure because of finished courses and maybe, the degree being earned and to what extent the project can be recovered (Brandenburg et al., 2014). Besides that the advantages exceed the required expenses therefore the payback analysis is beneficial.

Simulations: The term “Simulation” is defined as exhibiting any kind of activity that relates to imitating the present system or even situation in a different way. Simulation is in a general sense indicate working where the test framework is attempting to expand the concept with the help of continuing something then controlling it through changing the elements utilized for manufacturing the model (Rezaei, 2015). This technique have amazing contribution in the process of decision making. In the steps for basic decision?making, fourth step is evaluating the decisions. Other than that decisions could be impersonated by the manager outcomes can be predicted now in the methodology for decision making, he or she would discard a huge piece of the secret from basic leadership.

Anderson et al. (2018), prescribed that in the point of view of an organization industry, scheduling the customers is known as demand management while scheduling the workforce is termed as capacity management. Kabir, Sadiq & Tesfamariam (2014), in like manner reinforce that the demand organization is trying to affect when customer go to the organization and farthest point organization is ensuring the affiliation ability to deal with the request. In the development of retail industry, for example, the Woolworths store, request association is the association of the request made for the things and endeavors at the store by the client foreseen that would buy the stock and association as appeared by their taste and inclinations. Engineering and giving the clients stock and ventures they require at the time of their shopping is the most distant point association. Differing clients visit the store on reliable logbook and buy the things and expend the administrations according to their own accommodation, the staff at the Woolworths cannot deal with the request and pass on the stock and association as indicated by their ability. Understanding the request is not adequate to deal with the request change. It also consolidates the ability of organization to satisfy the request. Thusly, it is key for a relationship to comprehend its ability objectives to the degree time, work, mechanical assembly, and work environments. The immense test looked by outlet is the shy of the ability to compel the holding up time of the clients at the pickup counter (Hitt, Xu & Carnes, 2016). The nonattendance of equipment and staffing in the midst of the apex hours has made an opening amid demand and fulfilment of the demand.

Operational Framework of Woolworths

Supply chain management is accepted to be oversight of the materials, data and backings as they move in to a procedure from provider to makers to wholesalers and from retailer to buyers toward the end. Store orchestrate association is said to be the tradeoff of the exercises that get materials and associations change them into coordinate stock and keep going things and pass on them to the clients (Pettigrew, 2014). The central operational game plan and the framework which is being taken after at Woolworths is to save money as much as it can without exchanging off on quality since making available the quality things is the thing that gives them high ground in the market. Considering each one of these components and inspecting each one of the benchmarks of organization it has been found that Woolworths is executing most of the norms of exercises organization at any rate the best realized are the Process development Strategy where it has completed the arrangement advancement nearby process design in most perfect way. Nevertheless, the Lean Production and the MRP ought to be realized in much better route at Woolworths.

In multi decade from now the undertakings organization downy end up being altogether more positive towards supplier change technique rather being basically customer focused. The execution and change philosophy would in like manner be more connected with towards trying more prominent condition friendly undertakings (Walker et al., 2014). The parts which encourage Operations organization to change are the achievement of goals, cost diminish, reducing of waste, affecting the spread to sort out stream smoother, extending the general proficiency and transfer of unsafe zones existing inside the distribution network.

The above diagram depicts the process map for a service that is “Online Shopping” in which customer visits an online store to purchase products or items. The customer visits the online store and selects products or items to purchase which is placed as an order to the seller. Meanwhile, the Marketing department also plays an important role to suggest another items similar to that of ordered items to increase the popularity of new products. The seller then checks for the customer data whether it is valid means if the ordered items can be delivered, after that the order is being checked for completeness. Then, the ordered items are being checked with the store to determine whether those are available in store. If there is availability of ordered items, then the order is processed and delivery is done after confirmation from the customer. If the ordered items are not available then, the store takes action to restore their stocks or in case if it is not possible then the order is rejected and the customer is informed about the same upon which the order is completed.

Relationship between Woolworths and its Suppliers


From the above discussions on operations management, it can be said that in every organization, there are operations function required for effective management of their business processes which is defined as operations. The aim of almost every organization is associated with delivery of products or services. To do this, they have to get resources, change over them into yields and scatter them to their proposed customers. Decision trees drive an administrator to be expressive while examining situations related to future decisions and determining the result from various options. Decision tree is considered as an adaptable technique for most of the organizations. Hence, decision tree can be said as the suitable technique for decision making in operations management of any organization.


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