THE IMPLEMENTATION OF TEN OPERATION MANAGEMENT DECISION IN BUSINESS.

The Case Study of 7-Eleven Section 7 Reatil Outlet

By

IRWAN BIN IBRAHIM Staff ID 225623 Lecturer – Operation Management

HISTORY

•It was founded in 1927 in Dallas, Texas •The original name was The Southland Corporation.•The name 7-Eleven was inspired back in the year of 1946 when the stores were open from 7 am to 11 pm.

7-ELEVEN IN MALAYSIAIncorporated on June 4, 1984 by the Berjaya Group Berhad.The 1st 7-Eleven store opened on October 1984 in Jalan Bukit Bintang.

FOCUS POINT

providing a broad selection of fresh, high-quality products and services

everyday fair prices

clean and friendly shopping environment

speedy transactions and a

VARIETY OF PRODUCTS

Foods, beverages, convenience products

Variety of services

Automated money orders, copiers, automatic teller machines, phone cards

10 CRITICAL DECISION

1. PRODUCT DESIGN AND SERVICE2. QUALITY MANAGEMENT3. PROCESS, CAPACITY DESIGN4. LOCATION5. LAYOUT DESIGN6. HUMAN RESOURCES, JOB DESIGN7. SUPPLY-CHAIN MANAGEMENT8. INVENTORY MANAGEMENT9. SCHEDULING10. MAINTENANCE

MAIN MENU

•Retailing•24 hours •Friendly service•Product invention – slurpee, big gulp

SERVICE AND PRODUCT

DESIGN

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Clean workplace

Standardization- items & uniform

QUALITY

Good & experience

workers

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PROCESS, CAPACITY DESIGN

Process on 7-eleven stores is retailing. They do their business and gain profits by selling different products from different company.

Retailing is a mass

service which is on

high degree of labor

but low degree of

customization.

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LOCATION

Address

7-Eleven Malaysia Sdn Bhd,

Lot No UG/27 (GF) Block Q,

Jalan Plumbum U7/U,

Seksyen 7, 40000 Shah Alam,

Selangor Darul Ehsan.

7-eleven store is located near the housing area of

Seksyen 7 and University Technology Mara

(UiTM).

Also this store is situated by the main road.

There are competitors nearby such as One Shot,

Speed Mart 999, My Choice, ESSO, Bintang.

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LAYOUT

Uniform and

standardized

LAYOUT

Products

arrangement is

also systematic

Sells the products that most of the

people buy

Promotional products at the

front part

COMPETITIVE ADVANTAGE

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HUMAN RESOURCES

AND JOB DESIGNField Manager

Store Manager

Assistant Store Manager

Management Trainee

Store Associate Store Associate

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•Monitor all aspects of store operations, providing advice, coaching and assistance to store management.•Promote the image of 7-eleven through excellent customer service and community involvement

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•Recruit, train, develop and

motivate your employees

•Develop successful sales

plans to grow your store's

profitability

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Maintain a clean, customer fri

endly

environment in the store

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•Forecast, order, stock and merchandise product (upon completion of training)

•Maintain a clean, customer friendly environment in the store

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•Maintain a clean, customer Maintain a clean, customer friendly environment in the friendly environment in the storestore

•Receive cash from Receive cash from customers and give correct customers and give correct changechange

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SUPPLY-CHAIN MANAGEMENT

All 7-Eleven outlet are connected electronically to the head office, distribution centers (DCs), and suppliers.

•Orders are passed to the

suppliers that package store-

specific orders and deliver

them to the distribution

centers.

•At the distribution centers, all orders of like products from different suppliers are combined and distribute to 7-Eleven outlet at that area.

•7-Eleven distribution

center for Shah Alam

located at Seksyen 24,

Shah Alam. There are two types of supply-

chain management at 7-

Eleven in Shah Alam.

via distribution center

direct from supplier.

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VIA DISTRIBUTION CENTER

DIRECT FROM SUPPLIER

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INVENTORY MANAGEMENT

•Check the inventory of their outlet every shift

•The shelves are always checked and stocked up when the products become lesser

•7-eleven outlets-small store in their outlet and store the long-term products.

•At their store, the inventory management based on how fast the products sell.

•They arrange the products at the place which is easy to find and take. For example near the door, which easy to take it to stock up that product at the shelves.

•For short-term product the inventory is

counted at the shelves.

•Expired date should be considered.

•Assemble that product and return it back

to supplier.

INVENTORY MANAGEMENT

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7.00 am

3.00 pm

11.00 pm

SCHEDULING

24 HourCustomers do not

rush go to the shop at night

24 HourAvoid from

the robbery

Shift SystemAvoid the worker

from getting tired and increase the

working efficiency

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Broken Stock- Change with new one

MAINTENANCE

Cleaning-Use own worker to do various task

 Prevention From Stolen and Robbery- CCTV camera- police officers will be on patrol

CONCLUSION

•Among the best retailers in the world

Fulfill the 10 critical

decisions

Competitive advantage-layout

THE END