Unit - Operations Management
Operations Management • Systematic direction, control, and evaluation of the entire range of processes that transform inputs into finished goods or services. • Environmental factors-culture, political, and market influences • Inputs-HR, capital, materials, land, energy, information, customer • Transformations-convert inputs into outputs
• Three basic functions ▫ Operations/Production Goods oriented (manufacturing and assembly) Service oriented (health care, transportation and retailing) Value-added (the essence of the operations functions) ▫ Finance-Accounting Budgets (plan financial requirements) Provision of funds (the necessary funding of the operations) ▫ Marketing Selling, Promoting Assessing customer wants and needs Organization Finance Operations Marketing
Providing customer shopping Experience Receiving & displaying goods Recording sales Managing alliance and partnerships Store Administration and management of premises Tasks performed at the store level
Significant Areas Of Retail Operations 1. Customer Service and Accommodation. 2. Retail selling Process. 3. Store Staffing & Scheduling. 4. Retail Floor & Shelf Management. 5. Stores Administration & Facilities Management. 6. Warehousing & Supply Chain Management. 7. Loss ( Shrinkage ) Prevention. 8. POS/ Cashiering Process. 9. Visual Merchandising and Displays.
Stores Operating Parameters To Evaluate Day to day operations of Stores , Dip stick parameters are used to measure retail performance. They enable retailers to find out health of specific area of operation. Parameters • Customer Transactions • Stocks • Space • Employees
Stores Operating Parameters - Customer Transactions • Customer Conversion Ratio Number of Transactions ------------------------------- * 100 Customer Traffic