Group no-01

MGT 314.07

An In Depth Analysis of Operational management Process

OF Shwapno

Prepared For

Khan Muhammad Saqiful Alam

Submission Date: 11th Dec, 2014

Prepared By:

ID Name1020183030 Md.Zakaria Shayd 1020107030 Md.Zahidul Islam 1020833030 Tania Alam1020964060 Fatema Tus Sumi1020440030 Kajiul Hazad Khondoker1020171030 Sumon Bhattacharja1030613030 Shajia Nowshin 1210614030 Farhana Ahmed

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An In Depth Analysis of Operational management Process OF Shwapno

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Executive Summery

We have analyzed existing operations of shwapno superstore, in order to find out how they are

serving. We have figured out their existing polar diagram, 4Vdiagram, in order to identify, the

weak point of these operations and how they can be improved. As we did our tests using the

tools which we were taught in this course, so our projects are based on those tools. The very

first thing we did was the 4V diagram model analysis. Here we have tried to analyze the

shawpno super store volume, variety, variation, visibility. Almost all of them were high. We also

made a polar diagram of shawpno super store, showing where they need to improve. In the

polar diagram we have observed a lack in the consistency of their service in terms of customer

satisfaction. And we saw their one of the key operations objective is growth stage is to improve

dependability. We have formulated process map for the main processes of shawpno super

store and also the improve process map of those processes. It was seen that most of the

existing process were lengthy, and sometimes it takes extra trouble for customer, so we made

their improve process map. In business process re-engineering we have shown a new process

for online selling. And in fishbone diagram we have shown the cause and effect relationship.

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ContentsIntroduction.............................................................................................................5

4Vs Analysis of Shwapno..........................................................................................6

Performance Polar Diagram of Shwapno.................................................................6

Comparative Analysis:..............................................................................................7

Process map of ordering new stock.........................................................................9

Improved Process map of ordering new stock.......................................................10

Process map of Selling Product..............................................................................11

Improved process map of Selling Product..............................................................12

Process of Security Maintenance...........................................................................13

Process of security maintenance (improving process)...........................................14

Business Improvement tools & techniques............................................................15

Improved process map of Shwapno’s selling product............................................16

Recommendation...................................................................................................17

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Introduction

The company that we have decided to work is Shwapno. Shwapno is a new dimensional

superstore in Bangladesh. The mother company (ACI Limited) started its journey in 1940 and in

2008ACI Logistics Ltd. is launched with the dream to change the life of Bangladeshi consumers

with the brand name “SHWAPNO” in the form of retail chain.

Shwapno has a lot of brunches around 39. These branches are situated around the Dhaka and

Chittagong. Shwapno has their own firm, so they can provide the fresh food to the people. There

price is lower than market price. Originally specializing in food, it has moved into areas such as

clothes, consumer electronics, selling and renting DVDs, compact discs and consumer telecom

accessories.

The main reason of choosing this company is for its mother company Shwapno has a brand

image and reputation on consumers mind. Besides, Md. Salah Uddin (Executive, Grocery

category) of Shwapno will help us to collect information about Shwapno. Apart from that we

think Shwapno goes well with the course and to do a project on.

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Operation Strategy Analysis

4Vs Analysis of Shwapno

VOLUMEHIGH

VARIETY HIGH

VARIATION IN DEMAND HIGH

VISIBILITY HIGH

Shwapno is a new dimensional superstore in Bangladesh. They target lower middle class to top level customer and their selling point is high, so their volume of service is high. Shwapno offers a wide variety of services, customer get their necessary products in hand for example-- consumer goods, cloth, electronic, motorbike; that`s why their services of variety is high. Again, this retail chain focused on maximum customer thus; there is a high variation in the demand for their services. The visibility of their operation process is high because all products are totally transparent, communication level easily accessible.

Performance Polar Diagram of Shwapno

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Cost: Shwapno is a popular retail store in Bangladesh and they are trying to create a customer base through maintaining a level of quality in the service. For that reason they are operating minimum cost.

Dependability: The recent years showing that there is some retail store have been booming for

their business but they still have some negative feedbacks about their consistency. That is why

they are entertaining a below average rate of dependability.

Flexibility: Shwapno is very eager to provide customer flexibility based on the physically enable, over phone of home delivery and also online shopping services.

Quality: According to the last 4 years data, they have performed very well to create a noticeable demand in the market

Speed: The demand for their services is being successfully met till now. Now days they are 46outlets in Bangladesh as like Dhaka, Chittagong and Sylhet. So their speed is very fast.

Comparative Analysis:Polar Diagram vs. PLC of Shwapno

It has been only six years since Shwapno has started its journey. Though the market has a

number of retail super shop company who are operating successfully, Shwapno can be put into

the “Growth Stage” of PLC. It has been performing successfully, and it has some areas to look

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The graph shows us the comparison between the important operation aspects

(which refer to the elements of polar diagram) in relation to the stage of the PLC

for Shwapno. In addition, this gives us a clear idea where is the lack of

improvement. In the polar diagram we have observed a lack in the consistency of

their service in terms of customer satisfaction. Now, we see here that one of the

key operation objectives in the growth stage is to improve “Dependability”

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Request for supply of product

Product exist in stock Mention amount of product Photograph?

Ask in other Warehouses

Verify details and location to send

Verify signature

Ask for genuine information

Add a new entry into the database with

necessary information

Verification by outlet in-charge

and authorize the entry

Ready to sell items

Update with the previous stock amount

Process Analysis

Process map of ordering new stock

Yes No

No

Yes

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Improved Process map of ordering new stock

Here, we have used this process in order to improve the overall “Ordering new stock” process. There were some quick wins as well in some steps, where the whole process can be simplified.

NO

YES

NO

YES

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Check for the product

Request for supply of the product

Mention the amount, Verify of all information bya senior officer andask for signature

Authorized the entry & update with the previous stock amount

Ready to sell items

Ask for genuine information

Ask for other warehouse

Process map of Selling Product

Yes

No

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Customer entering outlet

Pack the product and customer leaves the counter

Customer chooses to buy a product

Customer brings the product to the

counter to buy

Cashier taking the product and giving

input of the product

Money is given

Ask for Card

Ask for moneyTake money and

return the exchange

Punch the card and take signature

Improved process map of Selling Product

Yes

NO

Yes

NO

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Customer entering outlet

They take a basket and go for buying the

product

Customer brings the

product to the counter to buy

Cashier taking the

product and giving input

of the product

Money is given

Ask for Card

Ask for moneyTake money and

return the exchange

Check for the product availability

Ask for when the product will be available

They take the phone number and make call when the

product is available

The customer comes again too

pick that

Process of Security Maintenance

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Customer entering outlet Customer giving

hand gave in the pigeon hole

Customer keeping token with them

Keeping sellers in front of every

row

Take the bag

After marketing return to the pigeon

hole

Leave the shop

Submit the token

Pack the product and customer leaves the counter

Punch the card and take signature

Process of security maintenance (improving process)

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Customer entering outlet

o

Security camera in every corner of

the shop

Keeping seller in front ofevery

row

They finish their shopping

and pay

Leave the shop

Poor Supply chain management

Variation in Service

FloorCapacity Conducted Old Structure Lack of Training

We think SWAPNO’S process of security maintenance is lengthy. Its takes time to finish and sometimes it adds extra trouble for customer so here ,if they remove this pigeon hole process and set up security camera every corner of the shop though it’s quite expensive process but still it will be more easier for them to maintain shops security and also it safes customer’s time.

Business Improvement tools & techniques

Fishbone DiagramHere we have done a fishbone diagram of service dissatisfaction to customers. The diagram is given below-

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Equipment Environment People

Not having

Structured

Procedure

Lack of HR

Activity

Management Process

Customer goes to Shwapno’s official website

Select the quantity and

add the product into

your card

Collect address and Shwapno’s

membership card number

Total amount and quantity will be shown

Select payment method = credit card

Choose home delivery payment option with extra service charge

Send a message to the customer for

order confirmation

Search for the product availability

Add the product in Favorite list

A message will be send to the customer’s number

when the product is available

Customer goes to Shwapno’s official website

and chose the product

Choose the product to buyCustomers

Dissatisfaction On service

BUSINESS PROCESS RE-ENGINEERING (BPR)

Here, we have used online product selling process for Shwapno. The customer goes to Shwapno’s official website and selects the product. Place order and choose the payment method. The order will be delivering in according to address. If the payment is not in credit card then collect the money when delivering the product.

Improved process map of Shwapno’s selling product

Yes

No

Yes

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Equipment Environment People

No

NO

RecommendationBased on our studies and tools we have used on the three processes of SWAPNO. We have

recommendations for SWAPNO which we believe can make a lot of positive changes

The process of stock replenishment need to be improvises. Faster and easy ordering for

new stock would help them to minimize their operating cost. This would only be

possible if SWAPNO cut down the step checking process and simplified their new stock

authorisation by new technology.

Manual security system needs to be replaced. Modern security system like installing

camera and other detective machineries will give more fruitful outcome than manual

process. Hence reduce in operating cost due to replacement of security employees.

According to the polar diagram analysis SWAPNO has failed to maintain the

dependability. We recommend SWAPNO to increase the customer dependability

through providing other facilities, e.g. membership card, bonus card and other facilities.

From the product life cycle diagram we have inferred that during its maturity and

decline stage, SWAPNO has failed to maintain the cost and quality of the product.

However, if they make a fine tune and give a proper attention to the quality and cost

SWAPNO will take over its market again.

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