Mismatches and Development in Operations Strategy

Fahad.Ajireen [Email address] Fahad.Ajireen [Email address] 21/HNDENG/CH75/0011 21/HNDENG/CH75/0011 Management & Operations Mohamed Fahad Ajireen Management & Operations Mohamed Fahad Ajireen Content Introduction Company Outline Critically discuss the importance of strong operational strategies for an organization to take advantage of global opportunities. Benchmark the current practices with driving hones within the industry and suggest required changes Conclusion Introduction Activities can be viewed

Management & Operations
Mohamed Fahad Ajireen
Fahad.Ajireen
[Email address]
21/HNDENG/CH75/0011

Content
1. Introduction
2. Company Outline
3. Critically discuss the importance of strong operational
strategies for an organization to take advantage of
global opportunities.
4. Mismatches and Development in Operations Strategy
5. Identify major trade forms within the organization and
expound them utilizing standard prepare
administration devices and charts. Major trade forms
can be recognized from the zones such as “Quality
Management”, “Inventory Management”, “Customer
Management”, and “Supplier Management”.
6. Critically analyze and propose the
improvements/changes of the organization within the
see of “Process development and improvement”.
Bolster the reply with innovation procurement and
mechanization.
7. Describe the “New Product/Service Development”
handle within the organization. Benchmark the current
practices with driving hones within the industry and
suggest required changes
8. Conclusion

Introduction
Activities can be viewed as one of many capacities (for example creation, quality control,
individual, advertising, finance) inside the association. The activity capacity can be portrayed as
the piece of the association dedicated to the creation or conveyance of items or administrations.
This implies all activities embrace activity assignments as at last the whole association which
works to deliver items or administrations. Tasks Management is communicated as the exercises
which creates and conveys items and administrations to the end client. Activity the executives is
additionally characterized as "The Management of the change of interaction, which converts
Land, Labor, Capital and Management inputs into wanted results or labor and products (Adam
el al., 1996: p. 06). Likewise one more definition gave on Operation Management is that, to deal
with the association liable for the creation of labor and products for business arranging and
planning by means of utilization of authoritative assets to change over inputs into yields
(Stevenson, 2002).
Operation Management has made it presence in the cutting edge time as an administration idea
which enhances innovations to build efficiency while decreasing expenses, improving
adaptability to meet quickly changing requirements and needs of the client base, in providing
food quality item and administrations. The creator clarifies the idea of Operation Management in
this report isolating the report in to four fundamental segments of with regards to DAMRO
Furniture:
1. Importance of a strong Operation Procedure in DAMRO furniture to stabilize worldwide
opportunities
2. Identification of Wider business Procedure in DAMRO and combine them using standard
process management tools and diagrams. Wider business process can be realized from
the areas such as Quality Management, Inventory Management, Customer management
and Supplier Management etc.
3. Major and critical analysis of proposing the developments and changes to the
procedures mentioned above in DAMRO Furniture.
4. Description about the "New Product/Service Development" process in DAMRO, while
benchmarking the current practices with driving practices in the business and suggesting
required changes.
Company Outline
DAMRO FURNITURE being one of South Asia's biggest furniture produces is presently among
the world's biggest furniture makers who offers combination of current and customary
furnishings (The Nation, 22 July 2012). DAMRO Furniture started its business thirty years prior
in 1986 by delivering delicate wood furniture. From that point forward the organization has been
extending its tasks locally just as worldwide. Today DAMRO Furniture has 65 abroad display
areas and 102 own display areas locally. Also they have a solid vendor organization of 3000
locally and globally. As of now DAMRO Furniture is ruling the Sri Lankan furniture market with
33% piece of the pie (DAMRO Furniture - About Us, 2014).
It is clear that DAMRO Furniture is the market chief in the furniture business in the midst of the
remainder of the players on the lookout (DAMRO Furniture - About Us, 2014). In breaking down
the market, the chance reachable in the furniture market is monstrous in Sri Lanka, as the
complete size of the business is around 36 billion every year. The furniture market can be
isolated into two classes – market dependent on unrefined components and the other

dependent on use. The market generally is profoundly divided as no player in the market can
get over 35% of piece of the pie. A significant piece of the portion of the overall industry is
gained by little wooden furniture makers who are dispersed all over Sri Lanka particularly in
geological regions, for example, Moratuwa.
In light of the examination discoveries it is obvious that DAMRO Furniture keep up with the
expense initiative methodology through mass scale fabricating and enhancing business in to
new business sectors, for example, Hospitality and Leisure administration. The principle
accomplishment behind DAMRO Furniture in furniture is their assembling abilities and
Technologies. With condition of workmanship fabricating spreads in seven diverse key areas in
Sri Lanka giving a whole scope of better furniture than families in the country. DAMRO Furniture
is the main Sri Lankan furniture organization who has presence in the worldwide market with 65
abroad display areas and is the biggest furniture produce in south Asia.
DAMRO Furniture is that the pioneer in Panel Furniture and Sofas in Ceylon, maintaining
market leadership for the past 12 years. Locally they need the most effective distribution
coverage with 102 owned showrooms and 1200 within the country. DAMRO Furniture has
grown strength to strength and recorded Rs 8 Billion income during the past years.
Critically discuss the importance of strong operational strategies for an organization to
take advantage of global opportunities.
Importants of Operational Strategy
A business strategy cannot be determined in isolation, it needs to emerge endlessly from the
corporate strategy (James, 2011). The company's operating strategy combines all the elements
of the organization, such as production, quality management, inventory management, finance,
marketing and customer relations, human resources, etc., so as to achieve goal consistency in
the end. Therefore, the effectiveness of operational strategy is a key theme when discussing the
success of any organization. In addition, the organization's operating strategy should reflect top-
down and bottom-up requirements and four perspectives of operating resources (Figure 1).
DAMRO Furniture is a company that focuses its business strategy on furniture products. From
the perspective of the overall corporate strategy, Damuro Furniture is their key business. Due to
the nature of the product, it is necessary to support DAMRO Furniture's operational strategy and
all operations to meet these specific customer and business needs.
The furniture produced by DAMRO Furniture enables DAMRO Furniture to conduct large-scale
capital-intensive operations. Compared with its local market competitor "Arpico", "Arpico" does
have scattered small manufacturers, these manufacturers are independent manufacturers,
which allows them to provide products and services to consumers with a shorter delivery time.
Operational strategies, cascaded from a company's business strategy, provide a plan for how
well business resources can be used and outline plans for using organizational resources
(Porter, 2011). This certainly supports the business strategy being implemented in the

organization. Therefore, this plan is based on the company's specific ability to give it a
competitive edge compared to other players in the market.
Competitive priorities can be based on cost, quality, time, and flexibility platforms. This report
details the operational strategies you need to make to meet your overall business strategy.
Mismatches and Development in Operations Strategy
The operational strategy of a particular company must be compatible with the type of industry in
which it operates. An analysis of DAMRO's strengths and weaknesses reveals that DAMRO has
certain discrepancies in its industry-related operational strategies. DAMRO Furniture has
several attributes that were excellent in its business strategy, and brought about the success of
the company in each target segment.
DAMRO Furniture has overseen to set up a solid conveyance arrange island wide, possess
state of the craftsmanship fabricating office, concentrated center on furniture industry &
conveyance of tall quality items. The success of DAMRO Furniture is obvious by the reality that
it commands a showcase share of 33% of the furniture industry building up itself as the
advertise pioneer. In any case the showcase is intensely congested with competitors
subsequently on looking into their operations procedure it was distinguished that a number of
advancements can be made in arrange to raise their standard to higher level anticipated by the
clients within the furniture industry.
1. Expansion of DAMRO to India.
In a Operation Procedure point of see opening DAMRO’s to begin with universal department
and appear room in October 2000 department and showroom in Chennai was basic for them
and the use the India – Sri Lanka free exchange understanding which permitted them to
trade them to India in a charge free premise. This bolstered DAMRO in a squander way for
its development in South India whereas understanding the competing furniture monsters in
India such as Pace Furniture, Gothiya Furniture and Jayabarthan Furniture (Sunday Times,
2000). India can be considered as capitalisation of a worldwide opportunity by DAMRO as
populace astute it is the moment biggest Chennai India. Once DAMRO extended their
outlets locally and after got to be a family brand amid past twenty odd a long time, it started
the worldwide operations by starting an outlet and establishment operation in Chennai. This
operation extended so quickly that inside few a long time, it extended to Karnataka, Andhra
Pradesh and other southern and northern parts of India
2. Expanding to Oceania locale: Australia which is another nation which parts of Sri
Lankans relocate at show, DAMRO is pointing tall for their future and plans to grow to
the Distant East as well. DAMRO’s early sensation amplified to more than 80
showrooms askew the world and they right now have 40 showrooms Island field (Day by
day Reflect, 2002). Concurring to insights DAMRO has 5 branched in Australia.
Consequently Australia could be a positive worldwide opportunity which may be a
created nation with significant tall living guidelines. Thus the reasonableness of the
populace is clearly tall where DAMRO can use the opportunity to developing Sri Lankan
populace to a mode of building their brand in worldwide level. Drawing nearer the

residential client base in Australia whereas giving work openings this opportunity can to
utilize as a gat way to enter to the European showcase.
3. Low cost technique: Plastic furniture getting to be a slant within the showcase where as
client has recognised it as a straightforward and strong item for utilization. DAMRO as of
now produces these sort of items whereas overlooking the items which are made up of
characteristic wood DAMRO was able to decrease its crude fabric and operational
fetched hugely by utilizing locally realistic crude fabric and moo estimated timber and
locating the mass scale production line in Nittambuwa which may be a farther zone of
the nation as a start. The Entrance procedure of DAMRO was effective in by means of
these moo taken a toll items in residential field as well as in India which it had entered
the advertise whereas confronting furious competition from existing advertise players.
4. Electronic Domestic Machines is one of the most recent operation techniques of
DAMRO in broadening to diverse businesses DAMRO has being distinguished as one of
the anticipated competitor within the “Consumer Durable” advertise where “Singer Sir
Lanka” leads the showcase and overwhelms shape a longer period (Every day Reflect,
2013). The dependability picked up through DAMRO’s nearness in household advertise
for nearly 30 years has ended up the foremost basic victory calculate. Thus DAMRO
was able to advertise the DAMRO Washing machine, Inovex Driven TV and other Home
Machines without hesitation. The item moved within the showcase at the side the
Promoting campaign carried out by DAMRO. The opportunity emerges by means of this
modern item extend of DAMRO empower the bunch to broaden its operations chance
additionally to gotten to be more grounded as a best commerce profile in Sri Lankan
economy (The Country, 2012).
5. Fashion Retail: In spite of the fact that it was uncommon for the Sri Lankan showcase
pioneer in furniture retailer to wander into design retail, DAMRO took the move to
dispatch its to begin with mold retail store naming ‘Diliganz’. The outlet stocks
neighborhood and worldwide clothing brands, furniture and gadgets (The Country,
2012). This is often still in exploratory arrange as DAMRO bunch in not expects to open
any showroom in this nature in close future. But it is very obvious that DAMRO bunch is
working with a methodology of using their existing client base for its modern wander of
trade and advertising them more choice through a diverse shopping involvement.
6. Damro Group’s Marino Inn being distinguished as US $ 40 M , 12-storey building with
more than 400,000 sq feet by 2016 and this has being focusing on Indian traveler in
middle-class through DAMRO’s department organize and extreme to pull in 50,000 ‘new
tourists’ to the nation per annum (The Leader,2013). Acknowledgment of clear potential
of Sri Lanka which come to its target of 1 Mn traveler on Admirable 2014 within the
tourism, they anticipate development achievement of 2.5 Mn traveler entries by 2016
(SLTDA, 2014). DAMRO gather has taken another Key operational approach. This
endures differentiating operations methodology of DAMRO which included colour to
Colombo sky line with this extravagances inn comprise of 12 story development could be
a key step taken up by the administration. The tourism industry is getting to be more
competitive with the universal hotel chains which are around to begin their operation in
Colombo within the period of 2015-2016. These are world famous inn chains named
Shangri-La Colombo, Hyatt Rule, Movenpick and Sheraton. The wander of the DAMRO
gather is an curiously approach in a setting where the measurement clearly appears the
increase of traveler entries to the nation.

Identify major trade forms within the organization and expound them utilizing standard
prepare administration devices and charts. Major trade forms can be recognized
from the zones such as “Quality Management”, “Inventory Management”, “Customer
Management”, and “Supplier Management”.
 Production Process
DAMRO as of now gives standard item extend which is fetched compelling and solid for the
clients. Inside DAMRO customization isn't accessible. DAMRO Furniture’s without being
dependable third party providers in getting the items by means of fabricating in mass requested
conveyed generation done at the production line space. The quality of DAMRO HAS Gotten to
be THE fetched based technique which drives its operations and readymade structure was its
technique frame the being which catered to the client at an reasonable moo fetched
 Product and Design
DAMRO Furniture on the other hand since they don't give customization of items, the items are
much more nonexclusive and steady. Subsequently, measures such as, Total Quality
management may well be utilized in fabricating operations. DAMRO Furniture will see at a zero
imperfection procedure in fabricating their items in their generation line but for Arpico’s
customized items which is exceptionally work seriously quality cannot be made reliable of all the
orders being the same. Arpico’s furniture extend is much more lavish and comprises of
modernized furniture combined with tall quality. Subsequently, it makes a tall quality recognition
within the advertise versus the rest of the players where as DAMRO is additionally eminent for
its quality and toughness.
 Inventory Management
DAMRO Furniture goes with a no stocks arrangement of wrapped up items so it does not
contribute in warehousing offices. This taken a toll as well is spared in terms of the estimating
arrangement that DAMRO Furniture charges its buyers. While Arpico don't work with no stocks
but at a least amount to meet buyer needs at a given time. So they do have stock administration
frameworks such as, reorder levels, least arrange amounts in checking stock levels.
Client Administration, of DAMRO can be dissected by means of its operations administration
which extreme to construct dependability by means of demonstrating taken a toll viable, strong
items coming to the clients through its wide span of Appear Rooms Island wide. Usually caught
on b y the areas determination of DAMRO bunch as DAMRO Furniture has more constrained
spaces inside their showrooms as well as branches are found within the primary town areas
island wide. DAMRO Furniture’s methodology is to enter to the whole nation through their claim
showrooms found and their merchants (Piyestra) in order to get mass scale operations.
However the nearest competitor of DAMRO , Arpico is solid within the greater organize because
it could be a broadened company and since they are looking at a exchanging demonstrate they
see at exceptionally restricted claim showroom offices and looks at coming to the advertise
through the third party merchants (DAMRO Approximately us, 2014).

The business was originally located in remote are in western providence and that is to
approach the suppliers without any middle man. In terms of distribution, since DAMRO
Furniture has a mass scale of production they do have extensive distribution in putting up
their showrooms and their Piyestra which gives DAMRO Furniture even greater reach. This
will need to be done since they are a manufacturer of furniture but whereas, Arpico the
competitor of DAMRO does trading which is extensive distribution through their third party
dealers. Therefore, it is evident that the operations strategy worked out by DAMRO is will
differ as per the business strategy selected.
Supplier Management & Distribution
The trade was initially found in inaccessible are in western provision which is to approach
the providers without any center man. In terms of dispersion, since DAMRO Furniture
includes a mass scale of generation they do have broad conveyance in putting up their
showrooms and their Piyestra which gives DAMRO Furniture indeed more noteworthy
reach. This will ought to be done since they are a producer of furniture but whereas, Arpico
the competitor of DAMRO does exchanging which is broad conveyance through their third
party merchants. Subsequently, it is clear that the operations procedure worked out by
DAMRO is will vary as per the commerce technique chosen.
Critically analyze and propose the improvements/changes of the organization within the
see of “Process development and improvement”. Bolster the reply with innovation
procurement and mechanization.
Quality Administration viewpoint, as of now DAMRO is famous for its quality and solidness. The
competitor of DAMRO which is Arpico is additionally in to Furniture, Domestic Machines, and
Design Retail etc. The right now recognition of the showcase is that Arpico gives more quality
items and it has win the devotion of the client via its long presence within the Sri Lankan
showcase. DAMRO forms the QUALITY Affirmation within the manufacturing plant level it isn't
clear whether operation are focusing on a Continuation Advancement concept inside DAMRO.
The gather ought to present the total Quality Management (TQM) which points increment the
effectiveness of the operations of the association whereas decreasing the time hungry errands
which does not include esteem toward the conclusion item. Moreover TQM point on disposing of
wastage. It is this approach to guarantee that the organization capacities with a dedication to
ceaseless enhancement of quality and catering the customer needs proficiently. With any alter
there will continuously check The moderate street bumps can back DAMRO to reinforce the foot
line of the commerce in all divisions (Fabricating, Mold, Relaxation etc.) improving generation
via enhancing ethical of its work constrain additionally picking up common positive environment
do trade. The strongly strain on the advertise competition will underpins exchange and to fight
around the world for modern thoughts investigated.
Utilization of HR in Client Administration – choice & buy of furniture is considered something
insinuate & extraordinary by clients. Subsequently it is essential that the clients are supported
by competent & charming staff in their choosing of furniture to their family. Be that as it may
DAMRO Furniture apportions representatives from rustic foundations with no satisfactory

preparing in their showrooms which may result is client disappointment in terms of quality of
benefit. Consequently it is basic l that DAMRO Furniture center on preparing workers on client
behavior which would permit them to move forward their quality of benefit to anticipated levels.
Inventory Management: This goes with hand in hand with Suppler Administration as Providers
will give the vital crude fabric which is put away as crude fabric stock and after the generation
the Wrap up products stock will be put away once more. It is obvious that Right now DAMRO
does not hone any advanced day stock Administration framework such as Fair In Time indeed
in spite of the fact that its primary manufacturing plant is arranged in a range where the crude
fabric is very accessible, which in Nittambuwa and it has moreover arranged the other
production lines in Pannala etc. In arrange to hone JIT the solid providers ought to be found
close to the production line which disposes of the stock Administration errand as Providers will
oversee the stock on sake of trade and give the vital stock (crude fabric) at the point of which
generation begins. Since DAMRO does mass generation which drives taken a toll calculate in
tall volume it is conceivable for them to hone JIT in arrange to be in line with the worldwide best
hone.
Describe the “New Product/Service Development” handle within the organization.
Benchmark the current practices with driving hones within the industry and suggest
required changes
DAMRO Durable Bed: The loathe expansion to the item portfolio of DAMRO which they
promote as a solid twofold bed with an alluring promoting which appears that it can hold the
weight of up to 15 individuals. It is very curiously who they illustrate the unusual quality of the
bed. The concern is that current setting of competition speed of conveyance is an completely
basic calculate to draw in unused & hold clients. One essential shortcoming of DAMRO
Furniture is its long item conveyance time which may give a competitive advantage to its
competitors. In this manner it is imperative that DAMRO Furniture progresses its effectiveness
in all operational ranges, conceivably re-engineer its fabricating handle & start steps to reduce
the time taken to convey the ultimate item to its customers. Since the competition within the
showcase develops day by day the client needs ought to be tended to given the sort period of
time. Clients will lock in with modern trends and the modern think is decreasing within the
intellect set of client
Customization: Manufacture of furniture on to client detail can be alluded as “customisation”.
Display day most of the associations gives redone administrations because it got to be a
worldwide drift through computer industry (Dell computers, USA) whereas DAMRO’s household
competitor Arpico takes after. Generation Programs should be made to preserve productivity.
Operation Administration guarantees that best crude materials and providers of outsourcing
finest chosen on the basis of combination to oversee redone orders. Consequently the ultimate
item to guarantee quality each time, the operational emphasize of which seem advance create
the generation.

Distribution Strategy : There are two Fundamental dispersion channels in customer tough
markets, which is company claim showroom arrange & merchants. DAMRO Furniture has
tapped both these markets with a really imaginative methodology to play down client perplexity
and channel strife. Whereas advancing DAMRO Furniture items through their possess
showroom arrange, for the merchant advertise they came up with a unused brand called
Piyestra, which helps them to enter the showcase since Piyestra could be a fetched pioneer
Conclusion
Corporate targets ought to drive towards in make the shareholders upbeat to coordinate to
contamination to be effective within the market. DAMRO’s Commerce targets can be
accomplished by expanding income (more deals) and within the same time by means of
generation efficiency. Hence, the working division is required to supply more noteworthy duty for
their work in arrange to attain corporate targets within the credit run. DAMRO technique ought to
be “how the company boost productivity at slightest by 20% compared to past year”. It has
presently expanded to Electronic Domestic Machines, Mold Hold advertisement moreover in to
Recreation and Neighborliness through the certainty accomplished in Furniture fabricating which
was its initiation.
Concluding the report, it is caught on that DAMRO picked up its’ victory by means of the
compelling utilize of Operations Administration in catering the residential and universal markets
by means of entering which driven through its accomplishment in mass generation getting a
charge out of Economies of scale. Moreover it is prescribed that DAMRO to take after the
suggestion given within the re4port which are not however tended to by the administration in
upgrading its Operation Landmark expertise in coming to DAMRO’s potential.