Operations Management Report: Wesfarmers and Quality Analysis

This report provides a comprehensive analysis of operations management, focusing on quality management and process strategy within the context of Wesfarmers, a conglomerate operating in various sectors including the retail sector with Coles Supermarket. The report explores the importance of quality management, customer satisfaction, productivity improvement, and cost reduction. It delves into the House of Quality (HoQ) strategy, examining customer requirements, technical features, and their relationships. The report also discusses process strategy, emphasizing its role in achieving organizational goals, utilizing resources effectively, managing risk, and building strong teams. The literature review covers various perspectives on quality management and process strategy, highlighting the significance of customer satisfaction, continuous improvement, and strategic planning. The report further includes a theoretical layout and improvement suggestions, providing insights into product distribution stages and strategies for enhancing operational efficiency and customer satisfaction. The report is written in response to a case study report assignment for BUS20003 Operations Management.

OPERATIONS
MANAGEMENT

Executive summary
The most important factors that affects the organisation in its working, cost of
production, customer satisfaction, etc are discussed in this report. Quality management is
effective process which make sure that organisation possess effective results through offer
products and services. The background of the process strategy and quality management has been
done. The importance and role of quality management in an organisation is explained here. The
discussion on the quality management and planning of strategy is focused. The importance of the
customer for an organisation to achieve its goals and aims are briefly highlighted. The theoretical
factors of the workplace is described here in the report.
Wesfarmers which is a conglomerate and operates in all sector and has retail sector as
Coles Supermarket in Australia. It also works in making chemicals, fertilisers, coal mining, etc.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Literature review.........................................................................................................................1
Importance of quality management.............................................................................................2
House of quality..........................................................................................................................3
PART B............................................................................................................................................3
Background and importance about process strategy..................................................................3
Literature review of process strategy .........................................................................................5
Theoretical layout........................................................................................................................5
SUGGESTION FOR IMPROVEMENT.........................................................................................6
Discussion and conclusion..........................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Quality management is the process that make sure that the organisation follows quality
planning, assurance for the quality product and services, control and timely audits for the
improvement in the quality. The present report is based on the Wesfarmers which is a
conglomerate and operates in retail sector as Coles Supermarket. Its headquarter is in Perth,
Western Australia. It is the largest private employer in Australia. Here, the importance and
factors of quality management will be discussed. Furthermore, process strategy, theoretical
layout and improvement suggestion will be discussed.
PART A
Literature review
According to the Helleno and et.al., 2015, the satisfaction of the customer is very
important factor in the quality management. Manufacturing of the product and services with a
good quality leads to customer retention and satisfaction. The quality management helps to
increase the profitability and revenue of the organisation. On the other hand, Bahmani-Firouzi
and et.al., 2014, by customer satisfaction the level of excellence need to be maintained properly
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for better profitability. The quality management is not about satisfying the customers but to earn
profit and success in the market. The quality of products and services should be maintained to
ensure customer satisfaction.
As per the views of Kavousi‐Fard and et.al., 2015 requires the continuous improvement
in product and services with innovative ideas. The proper planning of quality control and
management helps to assure good quality products and services. Joo and et.al., 2015, explored
that quality management focuses on customer needs. The organisation’s main aim is to ensure
and focus on the customers.
Izquierdo and et.al., 2017, argued that effective change in management process allows to
have better improvement of new products and services through innovation. It impacts on the
organisation’s position in the market.
Importance of quality management
The word quality can have different interpretations according to the places where it has
been used. This is because, there are several aspects in which it takes important place such as
customer satisfaction, brand loyalty, revenue, etc. Customer satisfaction: Quality management for Coles supermarket is important for the
customer satisfaction which will lead to customer loyalty. The product with quality
attracts the customers to meet their needs. Customers always like those products which
are durable and have good quality. Productivity improvement: It is necessary for the better productivity to ensure increase in
revenues in the organisation. To gain more profits and generate revenue there should be a
regular quality check. There should be improvement in quality so that customer needs can
be accomplished properly. Cost reduction: It helps to reduce the waste and inventory in the organisation. Regular
quality checks help in maintaining the brand loyalty of the customers as well as to reduce
to cost of production. It also helps to lessen the loss on capital. Increases market base: It also helps to motivate the employee morale for better quality to
meet the demands of the market. The encouragement of the employees gives the
innovative ideas and techniques to increase the production according to the trends of the
market.
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 Effective monitoring: It mainly helps in effective monitoring of the products and services
for their quality by internal audits and meetings. The regular audits also help to improve
efficiency of employee to design a new product with innovation.
House of quality.
The strategy to determine the relationship between customer satisfaction and good’s
quality, capabilities and many other things. It is related to how an organisation is going to fulfil
its customer wants according to their demands. Planning matrix is used to relate the wants of the
customers and it is the part of Quality Function Deployment (QFD).
The customer requirements: Under this the organisation 'Cole supermarket' has to take
care about the needs of their customers. The organisation will have to priorities the expectation
of their customers according to the demand and trend in the market.
Identification of technical features: The identification of importance of those desires and
characteristics which is related to the development of business. It is necessary to set priorities to
meet the needs of the system (Copil and et.al., 2015). This process can be applied at any system
to the level of composition. It helps to design the products and can allow the assessment of the
different concepts of a system.
Relationship in the customer attributes and technical features: The information given by
the customers plays an important role to identify the customer attributes. If the relationship
between the customers and the technical features is not strong, it shows that the organisation has
not taken care of its consumers according to the information collected by them. It leads to
disloyalty towards the organisation.
PART B
Background and importance about process strategy
Process Strategy is the management of the strategies to formulate and implement the
plans that are carried out with the activities related to the matters and situations on a vital level so
that better support can be offered to the organisation process. The process strategy mainly
depends on external environment and internal environment and the determination of the
important issues and the questions that need to be addressed by the employees. The
determination of the position of organisation in the market is important to get updated with the
trend and the demands of the customers. It also helps in recognising the wants and needs of the
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customer for better service and products. Identification of values is important and priorities of
the organisation. Every organisation must have some priority to serve their customers
accordingly. The organisation must collect feedbacks about the product and services they
provide to their customers to improve and create new products.
Importance of process strategy:
The process strategy in an organisation helps to achieve the goals. It helps to fulfil the
customer satisfaction. It helps in beating the competition and to innovate the new ideas to
manufacture new products. The process of strategy planning should be according to the needs
and trends of the customers. The planning of the strategy should be according to the customer
demands to fulfil their wants. It helps to earn profits for the organisation.
Use of resources in an effective way: The planning process helps to get the information
from the top level of management. It helps in making effective decision to allocate the resource
in the organisation. The maximisation of the productivity and the resources must be utilised
properly in order to have better outcome. With the help of quality management system, Coles
supermarket assists to develop their operations and functions in significant manner so that
resources can be utilised in optimum way. Therefore, it will be helpful to undertake several
benefits through which the profits and revenue can be generated more effectively.
Goal establishment: The goals are established for better performance. Organisation
cannot satisfy themselves on their current performance. The goal of the employees should be
clear to retain customers and give best to them (Inamori and et.al., 2016). The goals of the
organisation should be realistic. In this aspect, Coles supermarket easily attract several
customers together so that high profits can be earned.
Management of risk and uncertainty: Risk management is essential in any organisation to
achieve success. There should be a plan to overcome and manage the risk and uncertainties in the
organisation. Management of risk leads to faster success and to beat the economic environment.
Further, it is also helpful in developing successful results to manage risk and uncertainties at
workplace. Hence, Coles supermarket assists in making sure profitability can be manage in
significant manner.
Building of team: A proper team building with a good planning, built spirit and ensure
that performance in improved. Communication skills are required to transfer the information
among the employees. The conflicts are reduced by creating a strong team. Further, quality
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management team also develop group number of people at workplace that assists to develop high
profits and revenue. It has positive impact on the overall performance of organisation.
Creating competitive advantages: The strengths and weakness of the organisation can be
solved by creating competitive advantages. The action of the competitors helps to know the
opportunities in the market where it is lacking. With the help of quality management strategy,
Coles supermarket can easily compete with several businesses which would be helpful to take
profits and revenue.
Literature review of process strategy
As per the views of Kavousi‐Fard and et.al., 2015, process strategy is defined as the
pattern of making decisions in managing processes to achieve the competitive priorities in an
organisation. This process involves the use of the resources in an organisation for higher
productivity. However, Wakui and et.al., 2016 argued that, the practice to consider results from
both the intended. Theexperienced to reflect the indication of the institutionalised practices in the
process. The experience strategy process helps in identifying the difference in employment
modes so that better performance can be promoted..
According to Helleno and et.al., 2015, the importance of strategy process for an
organisation is to provide direction and guidance to measure and achieve the goals. It is the tool
which is useful for making day to day decision and to evaluate progress. It also helps to change
the approaches when the organisation is in growing stage or moving forward with its goals. On
the other hand, Jiang and et.al., 2016, says that the process strategy helps to clear the vision and
mission of the organisation to the employees working in it. It also helps to fulfil the aims of the
organisation as well as it reminds an individual about his aim towards the organisation.
Zheng and et.al., 2017, explored that the strategy process plays an important role in
setting the direction to the organisation. It also helps in understanding the organisation and its
working, internal as well as external environment. It helps to prioritise the resources and the
efforts towards the customer satisfaction in the organisation.
Theoretical layout
From the development of time, product is continuously selling in effective manner which
would be helpful to target customers in significant manner. Within the selected enterprise,
product type and target customers are based on the distribution method which is adopted to bring
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high profits and revenue at workplace. In this way, organisation can compete with others people
in market through focuses on the convenience stores brokers and agents as well.
Product distribution stages as per the product type
Through manufacturing the better option to distribution can be provided so that better
development can be taken into account. (Bahmani-Firouzi and et.al., 2014). In respect to view of
the numerous products' are being provided in order to have better consideration of success
outcomes.
In order to make effective production process for retail products, following stages can be
adopted by Coles supermarket:
 Selling directly to consumers: With the help of effective distribution channel, shortest and
completely middlemen. It is generally limited to high value for industrial products which
possess limited manufacturers and users. Selling through retailers: In this type of
distribution channel, recently prominent to make growth of large retailers so that
effective outcome can be attained (Mohammadi and et.al., 2014). Therefore, Coles
supermarket followed warehouses to make sure they are connected directly with work of
manufacturer. This system is ideally used for small sector business which have limited
production capabilities and produce effective goods.
 Selling through wholesalers: In this aspect, traditional stage for a product has been
developed which flows from producer to the wholesalers to distribution in retail sector
operations. Manufacture under this system allows to have better profit through
application of diverse standards
o Within Coles supermarket, this product distribution system assists to work as
middlemen who is more powerful in the entire system and depends on the grocery
distributor.
SUGGESTION FOR IMPROVEMENT
Discussion and conclusion
In this report, the organisation Coles supermarket has discussed about management of the
quality of the product and services. The customer satisfaction is discussed, which is important for
success and growth of the organisation. The communication skills should be perfect for the
effective working of the employees to fulfil the goals. The role of manufacturing is very
important to improve the quality of product and services (Zhang and et.al., 2013). Process
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strategy is very important to achieve success. Goals establishment is necessary part of work with
employees in a proper way. Management of risk and uncertainty leads to back up and customer
retention. The management of risk is most important because it helps to bear the uncertainty in
the organisation easily. Building of team helps to work faster and effective working of the
employees. The team building helps to manage the function of the organisation properly.
CONCLUSION
From the above report, it can be concluded that, Coles supermarket organisation's main
goal is to satisfy its customers. The customer satisfaction plays main role in the success as well
as failure of any organisation. The regular improvement in products and services by internal
audits helps to retain the customers. It also helps in beating the competition in market. Here, the
process strategy of the organisation is explained for its importance towards the profitability. Its
helps in updating the organisation with trends to fulfil the wants of customers.
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