Operations Management at Walmart: Quality Characteristics, Statistical Techniques, Facility Location, Work System Design, and Project Management

This presentation covers the various aspects of operations management at Walmart, including quality characteristics, statistical techniques, facility location, work system design, and project management. It also discusses the elements of project life cycle, project management, and issues faced by Walmart in operations management.

Operations
Management
Student Name
Institution Affiliation

Quality Characteristics of
Walmart
 Achieving sustainable growth in the
supply chain practices
 Provision of high quality customer
service, respect for workers, and strive
for excellence
 Enhancing efficiencies in the use of
resources under procurement and stock
management (Bjelland & Wood, 2015).
 Unique retail services to the market

Statistical Techniques
 ABC Pareto Analysis: Used by IT department in
categorizing items of value to enhance efficiencies
in the use of resources under procurement,
customer relationship management (CRM), and
inventory management.
 Inventory Information System: A database set for
storing and administering all data categories and
accurate warehouse inventory management.
 Bullwhip Effect: A supply chain management
technique to forecast yield supply chain
inefficiencies in the company.

Statistical Techniques
Application Examples
 ABC analysis suits in inventory management
for stock in and stock outs are accurately
recorded and stored in the system.
 Inventory management information system
ensures that all product categories offered by
Walmart are accurately recorded while in the
retail stores.
 Walmart uses the bullwhip effect in
forecasting future demand and supply thus
avoiding inefficiencies.

Current Facility Location
Currently, Walmart’s location is in various
places. Walmart stores are located in the US
and other international markets where it
operates. The main facility location areas are:
 Cullman
 Bentonville
 LaGrange
 Illinois Highway
 North Iris Street

Determining a New Location
 Identification of dominant location factors:
such factors include logistics, competition,
political risks, and labor among others.
 Development of location alternatives: On
realization that one of these factors is
dominant, identification of a location that
satisfies market needs is required.
 Evaluation of location alternatives: Managers
evaluate all locations and decide on the best
facility location to launch.

Concepts Related to Capacity
Planning and Facility Location
 Services level: The level of services
offered in this retail firm determines
what quality of service is acceptable.
 Demand in the market: Rate of demand
affects the strategic location decision of
a facility by the management.
 Workload and system capacity: This
depends on timing to plan and decide
on a location.

Current Work System Design
 Manages movement of goods and services
to enhance efficiency and proper flow of
commodities in and out of the premise
 Encourages personnel management in
terms of training and development, proper
compensation, and enhancement of equity
and fair treatment
 Division of labor and specialization is used
to limit errors from occurring

Walmart’s Job Design
Feasibility
 Technical: Walmart invests a lot in
technology; as a result the company has
been very innovative of new products that
suit market needs
 Economic: In terms of financial stability,
Walmart is feasible and reports a lot of
profits per annum.
 Behavior: The business operations of
Walmart are guided by an ethical code of
conduct that enhances integrity.

Elements of Rationale in the Work
Design Competitive Advantage
 Clear and open: A solid work design which is
clear and open to all motivates employees,
who raise productivity hence gaining a
competitive edge over rivals firms
 Equity, fairness, and full of opportunities: A
work design that enhances equity and
fairness creates a competitive advantage to a
company (Muñoz, Kenny, & Stecher, 2018).
 Inclusive of all: Where all stakeholders take
role in work designs, this leads to excellence

Defend New Change
Implementation Process
 Helps in cost minimization thus preventing
Walmart against financial constraints in its future
growth plans
 Helps in enhancing total quality control given the
specific strategies used in relation to scouting
quality and products demand (Muñoz, Kenny, &
Stecher, 2018).
 Helps in minimizing time used in decision making
and the overall ordering period
 Enhances flexibility in the new system used by
Walmart in replenishment

Rationale for the Change of
Implementation Method
 Need to minimize costs associated with
outdated implementation processes
 Need to enhance flexibility in the logistics
and supply systems of the company
 Need to boost product quality
manufactures and sold by the company in
the market
 Need to save time wasted when ordering
the retail products by customers

Network Planning Technique
(NPT)
In NPT, time, resources and cost are carefully
considered. The two main NPT methods are:
 Program evaluation and review technique: A
statistical tool employed by managers in
project management, designed to analyze
and represents project tasks until their
completion.
 Critical path method: A step by step
technique for process planning company
tasks.

Program Evaluation and
Review Technique (PERT)
1 4
5
2 3
Start
Client Meeting
Department heads
meeting
Presentation
Managers Meeting

Critical Path Method (CPM)
Activity Number Time in days
Client Meeting 1 3
Department heads meeting 2 4
Managers meeting 3 2
Managers meeting 4 5
Presentation for implementation 5 1

Critical Path Calculation
 The total time required in this excerpt is;
(3+4+2+5+1) = 15 days
 There are two critical paths possible in
this situation:
 Critical path 1, 1-4-; 3+5+1= 9 days
 Critical path 2, 2-3-5; 4+2+1 = 7 days
 So the critical path is number 2 which
uses the least days, 7 days

Tasks without Alignment to
Operational Strategy
 Cross dicking
 Inventory size minimization
 Stock support system during high
demand rates

Elements of Project Life Cycle
 Comprised of suppliers, shoppers, and
store associates
 The start and end dates of the project set
in place by the management
 Planning techniques on how the project
will be managed in terms of scope and
completion rationale (LeCavalier, 2016).
 Execution and implementation of the
project

Elements of Project
Management
 Time management strategies to abide to
the set start and end date of the project
 Workforce, their knowledge and skills as
required in doing the project
 Supervision of the project by the leader
together with the team’s cooperation
 Review techniques as the project is
underway to note any deficiencies for
corrective action

Operation Management Issues
 Globalization effects in the logistics and
supply chain management industry
 Growth and sustainability issues in the
market place where the facility is located and
operating
 Ethical conduct in terms of objectivity, total
quality management, and proper business
relations
 Communication within and without the
organization as it affects workforce morale

Project Management at
Walmart
 Walmart runs both medium and small
size projects
 A cross functional collaboration of
projects by the management is vital
 Project programs keep track on Walmart
operations
 Communication skills are highly set and
leveraged by the management

References
 Bjelland, O. M., & Wood, R. C. (2015). To nurture
transformational technology, build a community
like Sam Walton’s. Strategy & Leadership, 43(2),
41-46.
 LeCavalier, J. (2016). The Rule of Logistics:
Walmart and the Architecture of Fulfillment.
University of Minnesota Press.
 Muñoz, C. B., Kenny, B., & Stecher, A. (Eds.).
(2018). Walmart in the Global South: Workplace
Culture, Labor Politics, and Supply Chains.
University of Texas Press.