Wednesday, December 18, 2019
Operations Management At Sainsbury s Value Chain
Operations Management is the systematic (where everything can be defined, measured and managed) control of processes that translates inputs into services and products (output). All the processes are linked together to form a supply chain and all the operations are about transformations (adding value). Two types of operation systems are used : opened and closed-loop. The first one treats time (speed) as a high priority and starts from the input, through the process to the output. In the opposite, the second one includes a control stage between the process and the output and, a feedback at the end. In the first part, Iââ¬â¢m going to describe briefly some of Sainsburyââ¬â¢s operations using Porterââ¬â¢s value chain. Two categories of operations management exist : service or manufacturing based. Services processes can be analysed through the customer-contact matrix, the degree of labour intensity-degree of interaction and customisation, and the volume and variety against customer contact. In this case, by delivering goods ordered online to customers from a local supermarket, Sainsburyââ¬â¢s more like a service process because their outputs are perishable ; thereââ¬â¢s a low customer contact (face to face or moment of truth) ; thereââ¬â¢s a short response time (feedback is quick) ; it is labor intensive ; the quality is not easily measured ; and there is low level of customisation (basic process). It is the downstream part of the supply chain. 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