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Assignment Format
• Report Style
• List your observation times/visits
Observation time Target supermarket
31 March 2020 Sainsbury’s
1 April 2020 ASDA
5 April 2020 ASDA
9 April 2020 Sainsbury’s
Assignment Format
• Report Style
• List your observation times/visits
Report Structure
• Introduction
• Section 1, 2, and 3
• Subsection 1.1, 1.2; 2.1…….
• Conclusion
• Appendix (not include in word count)
• Remarks: Introduction and conclusion are optional
IMPORTANT
• DON’T disturb the staff during your visit
• DON’T try to enter the restricted area in the
store!
• Public area
Instructions of Assignment
• Report style. Have a clear headings for Section 1 and
Section 2
• Structure – include an abstract (a short executive summary)
• USE Diagrams to illustrate your ideas.
• If you draw your diagrams in MS Words, use “Autoshape”.
• If you draw your diagram on the paper, please scan it and
attach it to the report.
• Use Pictures, and make indications on the pictures if
appropriate, see examples in next slide.
• Pictures, Diagrams and Tables should be located within the
content (Not appendix!)
• DON’T only rely on the information in the literature and/or
internet. You need to visit the case companies in order to
answer the questions. 7
Reminder
• Please reserve plenty of time to upload your work to
the submission point (i.e. don’t submit your work at
the last minute).
• Please be aware the file size of your report. Your file
size may be large since you may include some large
photos (i.e. without reducing the resolution and the
size of photo)
• In the previous year, a very few students uploaded the
report to the submission point at the last minute. It
might take a long time to upload it to the VLE system
due to the file size (delay for a few second, but this is
still a late submission)
diagrams in
MSWord
Step 1
Create New Canvas
This is Canvas
Step 2
Insert picture into the
Canvas
Step 3
Mark the indication(s) within the
Canvas
(please use Autoshape to make
the drawings)
Task1 (35 Marks)
• What are the major differences in operation
management practices between these two
supermarkets? You will need to consider the
key aspects of operation topics such as
layout and flow, process management (draw
process mapping of one selected product),
i n v e n t o r y m a n a g e m e n t , a n d l e a n
management. You only need to focus on two
selected aspects in your discussion.
Task 1 Tips (1)
Layout and flow
• Map the layout diagrams of the supermarkets
• Identify the layout types
— Fixed position layout, functional layout, cell layout,
product layout
• Critically evaluate the characteristics of them
— how they influence the 5 performance
objectives: quality, flexibility, cost, speed,
dependability
— how the flow happens in the layout
— what are the advantages and disadvantages
Cost
Quality Flexibility
Speed Dependability
• Does the layout match the polar diagram
objectives? (optional)
Task 1 Tips (2.1)
Process management (draw process
mapping of one selected product)
• Select an important process in the
supermarket to evaluate their flows and
steps.
• You should apply the process mapping
technique to describe the processes in
detail, and state how the activities within the
process relate to each other.
• Critically evaluate the flow of the process
and try to challenge the current setting of
activities, and find any way to improve the
current process (e.g. reducing unnecessary
activities).
Task 1 Tips (2.2)
Process management (draw process
mapping of one selected product)
• Process analysis
• Identify the ‘wastes’ in the shopfloor.
Wastes influence the production lead
time, cause a longer time for the
customer to receive the product/service,
and even affect the quality of the
product/service.
• 5 performance objectives
Process Mapping (flow charts)
• Can be used to give a detailed understanding prior to
improvement.
• The act of recording each stage in the process quickly
shows up poorly organized flows.
• Can also clarify improvement opportunities and shed
further light on the internal mechanics or workings of
an operation
• It highlights problem areas where no procedure exists
to cope with a particular circumstances
17
Delay (a wait, e.g. for materials)
Operation (an activity
that directly adds value)
Inspection (a check of
some sort)
Transport (a movement
of something)
Storage (deliberate storage,
as opposed to a delay)
Process mapping symbols
derived from ‘Scientific
Management’
Decision (exercising discretion)
Process mapping symbols
derived from Systems
Analysis
Direction of flow
Input or Output from the
process
Activity
Beginning or end of
process
Process mapping symbols
19
Example of Process Mapping – Sandwich making and selling process
Exercise – A “make to order”
example
Place Production Order
Start
Check BOM
Check Material inventory
Enough
material?
Material purchasing
process
Material
inventory
Assembly1 WIP1 Assembly X FG
…..
Yes
No
QC
inspection
Delay
Rework
Delivery
Up to standard?to customer
Yes
No
End
Purchase Material
21
21
Search the potential supplier list
Start
Select the appropriate supplier
according to criteria
Enquiry of required stock from
supplier
Enough
stock?
Place order
delivery from supplier
Incoming
inspection
Receive stock Up to standard?
Material
inventory
Return to supplier
End
Yes
No
Yes
No
Process Analysis
Task 1 Tips (2.3)
• You should map the diagram more in
details
— Identify the process time of each process
step
• Don’t choose a product which is too
simple in process, e.g. Americano or
Espresso
Task 1 Tips (3.1)
Lean management
• Push and pull system
• Waste
• How to eliminate the waste
• 5S
• Kanban (system)
• VSM
• 5 performance objectives
Traditional approach and Lean synchronization
Caused by non-value
added movement of
people and machines
• Unnecessary walking, bending,
twisting
• Searching through database,
files, manuals
• Extra clicks or keystrokes
• Work in process waiting for
input/ information
• Awaiting Approval
• Wait for meeting to start
• Waiting for systems to start
WAITING
Waiting for Upstream
process to provide
inputs
MOTION
What might it look like
Caused by the
unnecessary movement
of material , information
TRANSPORTATION
• Moving documents
from place to place in
the process
• Manual workflows
• Office Moves 26
This type of waste
occurs whenever we
have rework, defects or
audit
• Incorrect reports/data
entry errors
• Information not right
the first time
• More finished product
than the customer needs
• Emails/ requests to be
read or handled
INVENTORY
This waste is work in
process or finished
product
DEFECTS/ CORRECTION
What might it look like
Caused by
unnecessary
processes & operations
OVER PROCESSING
• Unnecessary hands-off
• No decision rights
• Complicated approvals
Producing more product /
information than the customer
wants and before the customer
wants it
• Printing extra copies of reports
• Reports or information nobody
uses
• Back ups between departments
OVER PRODUCTION
What might it look like
28
Kanban System
The Kanban System is a easy mean
to control the material flow.
https://www.youtube.com/watch?v
=R8dYLbJiTUE (Kanban video)
29
Source: www.ebz-beratungszentrum.de Source: www.shelftaguspply.com
5S is a Foundation for Improvement
1S
Sort
4S
Standardize
3S
Shine
2S
Set
5S
30
‘Value stream’ mapping focuses on value-adding activities and distinguishes
between value-adding and non-value-adding activities. It is similar to process
mapping but different in four ways:
It uses a broader range of information than most process maps.
It is usually at a higher level (5–10 activities) than most process maps.
It often has a wider scope, frequently spanning the whole supply chain.
It can be used to identify where to focus future improvement activities.
‘Value stream’ mapping
Task 1 Tips (4.1)
Inventory management
• Role of inventory
• Identify inventories
- Physical inventory
- Queues of customers
- Information in databases
• Inventory systems Single system ?
• Inventory types
Task 1 Tips (4.2)
Inventory management
• How much to order?
• When to order?
• How to control the system？
• 5 performance objectives
Examples of inventory held in processes,
operations and supply networks
34
Single-stage
inventory system
Suppliers
e.g. Automotive parts
distributor
e.g. Local retail store
Suppliers
Stock Sales
operation
Central
depot
Distribution Local
distribution
point
Sales
operation
Two-stage inventory
system
Single-stage and two-stage inventory systems
e.g. Television manufacturer
Suppliers
Input
stock
Stage
1
WIP Stage
2
WIP Stage
3
Finished
goods
stock
A multi-stage inventory system
Four types of inventory
- Buffer inventory
- Cycle inventory
- Anticipating inventory
- Pipeline inventory
37
Task 2 (25 marks)
• Analyse and discuss the differences in operation
strategies between the two supermarkets, and
how their operations strategies influence the
operation settings of both supermarkets.
• Operations objectives (goals):
Cost, Quality, Speed, Dependability and Flexibility
• Operations plan or course of action, i.e.,
how the organisation builds and maintains
competitive advantage?
Task 2 tips (1)
• Identify Competitive factors of both Supermarket
• Map the Competitive factors to Performance
objectives
• Do the their operation strategies reflect on
operations settings (activities, layout, resources) in
both stores? Give solid examples (and take pictures
for evidence
• How to match the operations strategies with the
market requirements?
• What are the advantages and disadvantages?
About Operation strategy
• Others hints: product variety, procedures of operation
and activities, no. of staff, facility layout (types of
layout?)
Examples: Different banking
services require different
performance objectives (1)
Different banking services require
different performance objectives (2)
Different competitive factors imply
different performance objectives
Competitive factors
If the customers value these …
Performance objectives
Then, the operations will need to
excel at these …
Low price Cost
High quality Quality
Fast delivery Speed
Reliable delivery Dependability
Innovative products and services Flexibility (products and services)
Wide range of products and services Flexibility (mix)
Ability to change the timing or quantity
of products and services Flexibility (volume and/or delivery)
Order Winning, Qualifying, less important factors
• Order winners – are those things which directly and
significantly contribute to winning business.
• Qualifying factors — are those aspects of
competitiveness where the operation’s performance
has to be above a particular level just to be
considered by the customer.
Performance below this ‘qualifying’ level of performance
will possibly disqualify the company from being considered
by many customers.
• Less important factors — They do not influence
customers in any significant way
Task 2 Tips (2)
• You will find a lot of interesting “operation settings”
in the two supermarkets.
• There must be reasons for the supermarkets to setup
these designs (operation design, layout design). E.g.
reducing cost? Better utilising space? Better utilising
human resources? Better customer service?
• The biggest challenge is to link this design and
settings into performance objectives.
• If you do not have any clue, Try to spot the
differences between one supermarkret to another
supermarket
44
ALDI example (1)
45
Width
Reduction
Area
ALDI example (2)
46
Portable
ALDI example (3)
47
ALDI example (4)
48
Task 3 (40 marks)
• The managers of both supermarkets would like to
implement quality management techniques to improve
the operations. Select one of the supermarkets (either
Sainsbury’s or ASDA) and discuss the feasibility and
potential benefits of applying the following quality
management techniques. You only need to focus on
two selected quality management techniques in your
discussion.
• Gap analysis
• Statistical process control
• David Garvin’s 8 quality dimensions
• Fishbone
• 5 why’s
Task 3 Tips (1)
• Feasibility of adopting two selected
techniques to one of the supermarkets: Gap
analysis, Statistical process control, David
Garvin’s 8 quality dimensions, Fishbone, 5
why’s.
• Study its feasibility (very important)
— Do you think it is a good idea to use the
selected techniques?
— Are the quality tools useful in identifying the
weaknesses in the operations and/or root
cause of quality problem in a cafe? (Hints
Machine performance, staff performance,
customer complaint.)
Task 3 Tips (1)
• Please illustrate (use tables/figures/drawings)
your ideas about how to use it and implement it
in one of the supermarkets .
• The benefit of using the selected techniques
• The challenge of applying the selected
techniques
— mindset?
— sustainability?
• Use literature to support your
arguments/analysis
Remarks: You can plot a diagram based on
some dummy data to illustrate your idea.
Task 3 Tips (3)
• Statistical process control
You can discuss which process is worth to use run
chart to investigate the quality over time
You can plot a mean chart and a range chart based
on some dummy data to illustrate your idea.
Hints – quality of the food, quality of the service
53
Control Chart Advantages
• Simple to use and understand
• Common language between employees and
management
• Indicates when the process is in control
• Indicates when action is necessary to eliminate
SPECIAL CAUSE variation
• Identification of special and common cause
variation reduces confusion and
misunderstanding
The perception –
Expectation Gap
Gap Action required to ensure high
perceived quality
Main organizational
responsibility
Gap 3 Operations
Ensure actual product or service
conforms to internally specified
quality level
Gap 4 Marketing
Ensure that promises made to
customers concerning the product or
service can really be delivered
Gap 1
Ensure consistency between internal
quality specification and the
expectations of customers
Marketing, operations,
product/service
development
Gap 2 Ensure internal specification meets
its intended concept of design
Marketing, operations,
product/service
development
For example, a car may be designed to need servicing every 10,000
kilometres but the customer may expect 15,000-kilometre service
intervals.
For example, the concept of a car might have been for an inexpensive, energyefficient
means of transportation, but the inclusion of a climate control system
may have both added to its cost and made it less energy-efficient.
For example, the internal quality specification
for a car may be that the gap between its doors
and body, when closed, must not exceed 7 mm.
However, because of inadequate equipment, the
gap in reality is 9 mm.
For example, an advertising campaign for an
airline might show a cabin attendant offering to
replace a customer’s shirt on which food or
drink has been spilt, whereas such a service
may not in fact be available should this h5a4ppen
David Garvin’s 8 Quality
Dimensions
Dimension 1: Performance
• Performance refers to a product’s primary operating characteristics
• Does the product perform to its standards? Does the product do what it
says on the box?
Dimension 2: Features
• Features are additional characteristics that enhance the appeal of the
product or service to the user.
• What additional benefits will be added to the product? Will they be they
tangible or non-tangible benefits. For example this could be after sales
service, or guarantees.
Dimension 3: Reliability
• Reliability is the likelihood that a product will not fail within a specific time
period
• Is the product consistent. Will it perform well over its lifetime and perform
consistently. Many brands have developed trust with customers because
of the issue of reliability.
55
David Garvin’s 8 Quality
Dimensions (2)
• Dimension 4: Durability
• Durability measures the length of a product’s life.
• How durable is your product. Will it last with daily use?
• Dimension 5: Conformance
• Conformance is the precision with which the product or
service meets the specified standards
• Does your product meet with any agreed internal and
national specifications? For example, safety regulations and
laws.
• Dimension 6: Serviceability
• Serviceability is the speed with which the product can be put
into service when it breaks down
• Is the product easy to service. Does the organisation offer
enough service support. 56
David Garvin’s 8 Quality
Dimensions (3)
• Dimension 7: Aesthetics
• How a product looks, feels, sounds, tastes, or smells. Aesthetics is
largely a matter of personal judgment and a reflection of individual
preference; it is a highly subjective dimension
• Is the product appealing to the eye? Design is important for many
products; the colour picked indicates certain things.
• Dimension 8: Perceived Quality
• Perceived Quality is the quality attributed to a good or service
based on indirect measures., e.g. made in France
• Reputation. Consumers do not always have complete information
about a product’s or service’s attributes; indirect measures or
perceived quality may be their only basis for comparing brands..
• What sort of quality perception does the marketing team want to
convey in their marketing message? Will price charged reflect the
quality of the product? What brand name is going to be used and
does this convey any sort of quality perception. 57
Structure of a cause and effect (fishbone)
diagram
Effect
Category of causes Category of causes Category of causes
Category of causes Category of causes Category of causes
Principle cause
Principal cause
Principle cause
Principle cause Principle cause
Principle cause
Principle cause
Principle cause
Principle cause
Detailed causes
Detailed causes
Detailed causes
Detailed causes
Detailed causes
Detailed causes Detailed causes
Root effect arrow
Root cause
5Whys: an effective problem-solving
technique – example 1
59
Why is our client, unhappy?
Because we did not deliver our services when we said we would.
Why were we unable to meet the agreed-upon timeline or schedule for delivery?
The job took much longer than we thought it would.
Why did it take so much longer?
Because we underestimated the complexity of the job.
Why did we underestimate the complexity of the job?
Because we made a quick estimate of the time needed to complete it, and
did not list the individual stages needed to complete the project.
Why didn’t we do this?
Because we were running behind on other projects. We clearly need to
review our time estimation and specification procedures.
Link the fishbone to 5 Whys ? - Establish which are the most likely causes. Circle these and
develop them further by asking 5 Whys to reach root cause - Substantiate each “Why” step with real data to confirm. This
may take some time depending on data availability but will
prove to be entirely worthwhile in resolving any doubt within
or external to the team and in justifying possible
expenditure - Agree corrective actions and begin trials.
60
Data Data
5thWhy
Data Data Data
2ndWhy 3rdWhy
Root Cause
1stWhy 4thWhy Cause
Cause
Cause
Cause
HUMAN
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