The use of Operational Analysis and Effectiveness Essay Example

identify and address these issues. Certain operations management tools and models can be used for this purpose. Key Performance Indicators (KPIs) are particularly important for measuring performance. They track progress towards organizational goals and are used to measure activities that are difficult to quantify, such as engagement, service, and satisfaction. The monitoring of KPIs is referred to as Business Activity Monitoring (BAM). Supermarket shops have specific KPIs with sales being a crucial measure. Comparing actual sales to targets can reflect the success of supermarket operations and whether set sales targets are being met.Additionally, it is possible to analyze and compare sales for the year with last year's sales or a specific period in the past. The efficiency of the total floor area can be reflected in sales per square meter. Pay cost can be calculated by dividing actual pay for a period by actual sales for the same period. Other important data includes average sale per individual customer/transaction and actual sales per trading hour. The conversion rate indicates the number of transactions per customer who entered the store. Units sold per customer/transaction may also be a valuable measure. The average time spent by customers in the supermarket can be measured using advanced techniques like Radio Frequency Identification (RFID) and wireless technologies or manually. The amount of time customers spend in the store correlates directly with the number of products they purchase. However, key performance indicators (KPIs) do not measure staff morale. Additionally, they can be costly and challenging for the company. Sometimes they only provide a rough guide for company performance and should be carefully defined according to industry standards and customer perception and values.(DMS

Retail 2010) KPIs, which are commonly linked to an organization's policy, can be measured using the Balanced Scorecard. This measurement system combines both financial and non-financial indicators of business performance. (Finch & Byron 2006) The Balanced Scorecard suggests that businesses should be observed from four perspectives: financial, customer, internal processes, and innovation/growth. To effectively measure performance, data should be collected and analyzed for each of these perspectives. While the financial perspective is important, it alone is not sufficient for guiding company actions and strategic decisions. (Balanced Scorecard Institute 2009) Process analysis is a fundamental skill necessary to understand business operations. (Jacobs et al. 2008) In process analysis, specific operations management tools like flow diagrams, time-function maps, process charts, and service blueprinting are used. Flow diagrams help understand and analyze the employees' movements within a process. Time-function maps or process maps depict activities in a process considering both flow and time dimensions.It ensures designation, and thus eliminates unnecessary steps, duplicates, or delays in the process. On the first level, the client is in control, such as when a customer arrives at a supermarket. This could encompass all the steps a client takes during the service delivery process (Keogh 2009). The second level involves interaction between the client and supermarket employee, such as a warm greeting followed by a service request. If the request is standard, it moves to the third level where the service is taken out of the client's control and the employee performs the necessary work. The end of the process is at the first level, where the client is once again the focus. For example, this could involve paying the bill and leaving

the supermarket. Total quality management (TQM) plays a crucial role in business success. The quality of services is determined by specific dimensions. Convenience refers to the availability and accessibility of the service. Reliability is the ability to consistently and accurately perform the service. Responsiveness is how willing the service provider is to assist customers and address problems. Time refers to how quickly the service is delivered. Assurance is represented by the knowledge and ability of personnel to convey trust and confidence to customers. Courtesy refers to the manner in which customers are treated. Tangibles involve the physical appearance of equipment, facilities, and personnel.Consistency refers to the ability to provide consistent quality service continuously. To analyze the service quality of a supermarket, the SERVQUAL instrument can be used. This instrument focuses on tangibles, dependability, responsiveness, assurance, and empathy. By pinpointing gaps in service quality, SERVQUAL helps identify strengths and weaknesses of the business. These gaps could result from differences between customer expectations and the company's perception of these expectations, or differences between service quality and actual service delivery. Additionally, gaps may arise between the service delivered and how it is communicated to the customer (Stevenson 2009).

In the context of Total Quality Management (TQM), some useful tools include check sheets, scatter diagrams, cause-and-effect diagrams, Pareto analysis, and statistical process control (SPC). Check sheets are used to record information, ensuring recognition of relevant facts and patterns for subsequent analysis. Scatter diagrams show the relationship between two variables, such as absenteeism and productivity. Cause-and-effect diagrams help identify potential causes for specific quality issues. These problem-solving tools allow for exploration of potential causes through brainstorming sessions (Heizer & Render 2003).

Pareto analysis is a technique used to prioritize quality problems based on their importance. It focuses on addressing a select few quality issues that are considered significant, as these are often the root causes of other problems.The purpose of this text is to identify and address the main causes of problems in a TQM framework. According to Reid & Sanders (2005), this is often referred to as the 80-20 rule, as Pareto's concept states that around 80% of the problems are caused by 20% of the items. Stevenson (2009) provides examples of areas that can be measured, such as frequency of effort, number of mistakes, overtime spent on correcting them, and number of customer complaints. Another important tool for measuring supermarket service quality in TQM is benchmarking, which involves comparing business performance and practices to those of competitors. This systematic approach helps identify areas for improvement and set targets. To apply benchmarking methodology to a supermarket, several steps need to be taken. First, problem areas should be identified through research techniques such as informal conversations with customers, employees, or suppliers, or through exploratory research methods like focus groups, surveys, and financial ratio analysis.The second measure involves creating a benchmark squad consisting of representatives from all key stakeholders involved in the studied procedure. The third measure is to establish a baseline for the relationship, gaining a comprehensive understanding of the supermarket's own practices and performance, and identifying areas for improvement through methods such as flow charts, problem identification, and cause-and-effect analysis. Following this, research and selection of non-competitor and non-necessarily-related partners is conducted. The next step is to compare processes through site visits or detailed discussions

with partners, exchanging information to generate new ideas and improve the process's performance. Planning for change is then done based on the information and knowledge transfer from benchmarking partners. Adopted and potential ideas for improving the supermarket process and methods of implementation should be identified. Lastly, the new process should be implemented, monitored for success, and periodically re-benchmarked.The text discusses the advantages and disadvantages of benchmarking procedures in the supermarket industry. Some advantages include the ability to focus on procedures that improve supermarket efficiency, as well as providing a meeting point for clients and improving overall efficiency. Benchmarking also allows for a detailed examination of success drivers and enables both individual and organizational development. However, there are some disadvantages such as time-consuming implementation and the need for significant staff resources. To successfully implement benchmarking, certain key elements should be considered, including not rushing into comparisons without understanding one's own processes, choosing partners based on convenience rather than excellence, allowing enough time for proper methodology, and selecting a process with potential for improvement. In the modern supermarket industry, understanding the environment is crucial due to intense competition and increasing customer demands for improved service. Continuous monitoring of business processes and operations is necessary to keep up with changes. Useful measures for monitoring service quality are both internal and external. (Hill 2005)Internal steps are gathered from proficient and operational records, while external steps are obtained directly from clients (Pura-Leal & Pereira 2007). Customer satisfaction is crucial for success. Therefore, client surveys and questionnaires can be helpful in analyzing supermarket retail sector operations and service quality. Conducting the survey can help identify the main reasons for the decline

in service quality. When conducting a customer satisfaction survey, what they are being asked is important. However, the client survey should start by defining quality from clients' perspective, not from an internal perspective. Surveys should be an integral part of the service quality program. There are several purposes for conducting a survey, such as determining the objectives for potential reengineering of service delivery processes, establishing both the definition of service quality measures and supermarket target quality standards, and defining priorities for managing quality or service issues. Additionally, it measures progress towards service quality targets and recognizes changes in market perception, as clients' perception, needs, and priorities change over time. By conducting regular customer surveys and taking actions based on client feedback, supermarkets demonstrate their commitment to customer satisfaction. These surveys include content, type, frequency, and who administers them.The study should include how service is delivered and the client's preferred delivery method. It should also consider who delivers the service and their approach. The importance of different aspects of service to clients should be evaluated. There are various methods to conduct the study. Informal client feedback is continuously obtained and used in daily interactions. Mail surveys are commonly used, where a questionnaire is sent to clients and they respond in writing, typically anonymously. These surveys can address specific issues with a few questions or be more comprehensive. They allow for reaching a large number of clients in a short amount of time, providing valuable input. However, the response rate may be limited. Face-to-face interviews are the most resource-intensive and logistically challenging type of study, but they offer in-depth understanding of client needs and perceptions. Questionnaires are

administered in person by staff. This type of study requires skilled interviewers who can accurately capture the reasons behind client responses. Focus groups use similar techniques as face-to-face interviews, with a facilitator guiding a group discussion on specific issues and questions.The text discusses the importance of focus groups in new merchandise development and selling activities. It emphasizes the need for trained staff with clear guidelines on which information is necessary and how to process customer feedback. The text also highlights the significance of identifying priorities, improving areas perceived as important by customers, and determining supermarket shop direction. It stresses the importance of measuring what is important to customers rather than what is easy to measure. The identified service quality standards should be integrated into ongoing management reporting processes, with measurable results reported to management, staff, and customers. The text suggests various methods, such as employee surveys, vision systems, and why-why appraisals, to analyze supermarket staff and identify causes of performance decline. Surveys are typically designed to improve organizational communication, gauge employee perspectives on operations and procedures, and enhance employee engagement. Employee engagement is often the desired outcome of employee surveys. Furthermore, conducting surveys is the initial step in establishing a value chain that fosters the organizational environment necessary for success. (Austin 1995)When managed well, employee surveys can help increase staff retention rates, decrease absenteeism, improve productivity, enhance customer relations, and boost profitability (Sanchez 2007).

Essential factors for effective and efficient supermarket operations include employees, programming, procedures and capacity design, service quality, inventory management, and supply chain. Employees are often considered a company's most important asset (Finch 2006). Furthermore, employees' motivation, morale, commitment, and satisfaction

all have a significant impact on business performance. Higher levels of motivation can lead to more efficient and effective performance, which directly affects productivity and profitability. Regarding staff performance, important factors include skills, knowledge, and training received. Additionally, the work environment can influence employee satisfaction and morale. For example, studies suggest that lighting or air conditioning can impact productivity (Heizer & Render 2003). Process selection involves determining how supermarket services are organized. This decision significantly affects capacity planning, facility layout, equipment selection, and work system design. Process selection may be necessary for new services, technological changes in products or equipment, or to stay competitive.The approach to treating choice in the procedure scheme should associate to cardinal facets such as capital strength and procedure flexibleness (Stevenson 2009). In deciding on the procedure choice, factors to consider include the assortment of services and merchandise, the necessary equipment and flexibleness, and the expected volume of end product. The layout of installations is an integral part of supermarket service and can provide product exposure, customer education, and product enhancement (Heizer & Render 2003). The design of layouts should take into account the presence of customers and the opportunity to influence sales volume and customer attitudes through carefully designed layouts. Factors to consider are traffic patterns and traffic flow (Stevenson 2009). Strategic decisions must be made by managers to improve supermarket operations, focusing on total quality management (TQM) in terms of process and capacity design, as well as human resource management issues. TQM emphasizes quality throughout the entire operation, from suppliers to customers, and requires the manager's commitment to continuous improvement towards excellence. TQM is important as it influences each

of the ten critical decisions of operation management.The execution of Total Quality Management (TQM) encompasses six constructs, which are changeless sweetening, employee authorization, benchmarking, Just-in-Time, Taguchi constructs, and TQM tools. These constructs can be utilized by a supermarket director to enhance supermarket procedures. The doctrine of continuous improvements involves a constant process of enhancing employees, equipment, suppliers, and procedures. The underlying belief is that every aspect of the operation can be enhanced. This approach keeps employees and management aware of current processes, systems, and structures. It involves understanding the system and procedures, continuously reflecting on their effectiveness, identifying problems that aid in realizing improvements, and creating a conducive environment for development. Kaizen, which is the Japanese term for continuous improvement, suggests three guiding principles: process reviews, success benchmarks from individuals, and a constant need for change. Process reviews are the fundamental step for analysis and encompass the entire supply chain from service design to customer delivery. Successful Kaizen programs depend on the knowledge and ability of people to identify improvements. A high level of skills, employee involvement, and management support are crucial factors in achieving success.The constant need for change is crucial for success, as the success of a program depends on everyone recognizing the constant need for change (Hill 2005). One approach that managers could take to improve supermarket operations is the Deming cycle or PDCA (plan, do, check, and act) (Reid & Sanders 2005). This tool is used to analyze systems and processes and helps identify opportunities for continuous improvements. The first step involves planning, where the manager evaluates the current supermarket procedures and creates plans based on any issues identified. It is

important to document all current procedures, collect relevant data, and identify any problems (Reid & Sanders 2005). TQM philosophy emphasizes employee empowerment, where employees are encouraged to identify and correct quality issues. TQM provides incentives for identifying quality issues (Heizer & Render 2003). Techniques for employee empowerment include building a communicative network that includes employees, having supportive supervisors, and creating a positive work environment. Quality circles could be established, which are groups of employees that meet regularly to solve work-related problems. Members of these circles receive training in group planning, problem-solving, and statistical quality control (Heizer & Render 2003). By empowering employees, managers can improve supermarket retail operations and achieve high-quality standards that rank among the top five in the country.Another way for directors to increase efficiency and effectiveness in supermarket operations is through business procedure reengineering (BPR). BPR involves rethinking how business is done and making radical changes to improve processes. This includes restructuring existing roles and tasks to better meet customer needs. The goal is to achieve significant improvements in key areas of performance. To do this, operations should be focused on adding value to customers, rather than simply following existing roles and activities. The analysis should start by identifying the desired outcomes customers want from the process. The next step is to develop a process or system that can deliver these outcomes (Hill 2005). In conclusion, by using various operations management tools like flow diagrams, time-function mapping, process charts, service blueprinting, KPIs, TQM tools, balanced scorecards, benchmarking, customer and employee surveys, or video surveillance, directors can identify the causes of declining service quality in the supermarket retail sector.In addition, directors who are

aware of the key factors affecting public presentation can decide on a focus and effectively address the issues. The primary emphasis should be on employees, procedures and capacity design, service quality, inventory management, scheduling, etc. Each of these areas can be enhanced by implementing specific operations management strategies and concepts, like TQM (Keizen, PDCA, and Empowerment) or business process reengineering. However, it is crucial to involve employees in order to support any of these approaches, as they are the ones responsible for implementing changes and improvements.