MGT603: Systems Thinking in Operations Management Proposal

This report provides an operations management proposal focusing on the challenges faced by Woolworths in Australia, including inventory management issues and competitive pressures. As the operations manager, the author identifies the need for a systems thinking framework to address these complex problems. The report details the application of systems thinking, including the use of Rich pictures and CATWOE analysis, to identify root causes, propose solutions, and make effective decisions. The author emphasizes the importance of considering stakeholders, such as suppliers, employees, and shareholders, in the transformation process. The proposal suggests reengineering feedback loops, implementing new technologies like SAP, and focusing on cost management to improve inventory management, enhance supply chains, and achieve desired business outcomes. References from academic sources support the analysis and proposed solutions.

Running head: OPERATIONS MANAGEMENT
Operations management
Name of student
Name of University
Author note

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Table of Contents
Part A........................................................................................................................................3
References.................................................................................................................................7

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Part A
Considering the business organisation Woolworths in Australia, it is found that there
have been several issues and challenges that are faced by the company, which has ultimately
lead to poor brand image, reputation and improper business functioning too. Being the
Operations Manager of the organisation, I have found that there were few issues raised by
clients regarding lack of enough supplies and failing to meet their demands and expectations
as well (Krajewski, Ritzman & Malhotra, 2013). When, I looked into the matter, I found that
there have been inventory management issues and problems, which are not always easy to be
resolved and thus the proposal of a systems thinking framework is required so as to deal with
the complex issues and problems, furthermore, bring in more ideas to resolve the problems of
inventory management much more comprehensively and in a practical fashion. On the other
hand, with the immense competitive within the marketplace (Reid & Sanders 2015).
Woolworths has experienced major problems, which tend to make thousands of cuts along
with facing a record loss of A$1.2 billion and even due to this, legal actions have been
undertaken against the company.
While inventory management problem remains a major issue experienced by the
company, the main focus has been on the development of systems thinking so as to solve the
inventory management problem while at the same time, gain insight about the real world
inventory management problems that might happen in the future. Due to the unbalanced flow
between the demands and supplies, the inventory management issues mainly occur and this
might affect the production level too (Wild, 2017). As the inventory management problems
are dynamic in nature and also consider the multi-dimensional information of the setting of
systems thinking. According to Arnold & Wade (2015), to resolve the problems of inventory
management, the systems thinking could be applied at the data analysis platform of

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Woolworths for logically thinking before undertaking any actions and then ensure that the
right course of action is being undertaken.
The Rich picture enabled the company to draw a situation that should emphasize on
the various elements needed to be considered while making some improvements. Such has
been the case while implementing the Systems Thinking framework at Woolworths,
Australia. This could help in identifying the problem, determine the root causes, propose
solutions and finally make proper plan and effective decisions for generating positive
business outcomes (Howard et al., 2014).

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Due to the complex business problems, the CATWOE analysis would help in needing
the address of customers at first and the check whether their demands are met or not If not,
then the inventory is checked and whether it has been managed properly or not. The suppliers
a, employees and shareholders play important roles of actors, considered as stakeholders,
who could be a part of the transformation process and allow for looking at the bigger picture
about how more profit could be made (Parpia & Singh, 2016). The owner or manager must be
cautious about managing the workforce properly by keeping them motivated with the help of
rewards, benefits. Growth opportunities also should align with the environmental attributes to
ensure accomplishment of the goals within the allocated time and budget.
Considering the importance of shareholders or investors in business, it would be much
easier to implement the systems thinking process for improving the inventory management
and supply chains. On the other hand, with the competition in the market and because of the
legal actions undertaken against the company, a new model or system has been implemented,

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which ensures consisting the costs at centre and then changing the roles and responsibilities
of employees to gain insight about the various processes all across the supply chain activities.
As there were many job cuts as well, the company has focused on the reengineering of the
feedback loops, which has helped in introducing a new app that could allow the employees
and the in-store staffs to provide feedbacks to the support office regarding the supplies and
production (Arnold & Wade, 2015). Also stated by Young & Leveson (2013), the systems
thinking also could enable Woolworths to implement the SAP implementation in order to
replace the Enterprise Resource Planning or ERP system and make sure to resolve the
availability issue too. This should benefit the company to manage the stocks to take forward
ad even ensure that the desired profit level is achieved, which could also ensure addressing
the needs of stakeholders and meeting their needs effectively too (Young & Leveson, 2013).

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References
Arnold, R. D., & Wade, J. P. (2015). A definition of systems thinking: A systems approach.
Procedia Computer Science, 44(2015), 669-678.
Howard, M., Caldwell, N., Smith, L., Maull, R., & Ng, I. C. (2014). Servitization and
operations management: a service dominant-logic approach. International Journal of
Operations & Production Management.
Krajewski, L. J., Ritzman, L. P., & Malhotra, M. K. (2013). Operations management. Pearson
Education UK.
Parpia, I. H., & Singh, G. (2016). U.S. Patent No. 9,280,757. Washington, DC: U.S. Patent
and Trademark Office.
Reid, R. D., & Sanders, N. R. (2015). Operations management: an integrated approach. John
Wiley & Sons.
Wild, T. (2017). Best practice in inventory management. Routledge.
Young, W., & Leveson, N. (2013, December). Systems thinking for safety and security. In
Proceedings of the 29th Annual Computer Security Applications Conference (pp. 1-
8).

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