Operation ManagementExecutive summaryThe report aims to find out how an effective operation management model can help an organisation to solve its operational issues, especially related to quality control and inventory management. This report would study various theories propagated by experts on quality and inventory management and would try to establish whether these theories had been implemented by the company that has been taken for the case study. Further, it attempts to establish a benchmark for creating a successful operation management matrix in a given industry. In order to achieve these objectives, the report would discuss the meaning of operation management in detail and undertake a case study of an organisation that has successfully implemented quality and inventory management in its company to solve the operational issues.
For this report, the business case of GR Thangamaligai (GRT), a leading jewellery store in Chennai has been selected, and the conclusions from the case study helped in establishing a success matrix for retail jewelers in India. The research further established that GRT can leverage the existing operation management model to realise its goals to expand its businesses in other parts of the company by employing innovative ideas and focusing on quality and inventory management.
Introduction Meredith & Shafer believes, “Organisations exist to create value, and operations involves tasks that create value” (Meredith & Shafer 2007). Even experts such as Hammer maintain that through innovations in operation management, companies can gain tactical advantages over their competitors. Thus operation is defined as utilising strategic inputs to produce useful results that can add value to a company (Hammer 2004). Through this report, I would explore how an effective operation management model can help in the success of a company.
The results of these research objectives would help in establishing benchmark for creating success matrix (Fitzsimmons 2001). For this particular research paper, I have chosen to study the operation management model followed by GR Thangamaligai or GRT, a leading jewellery store in Chennai, Tamil Nadu. However, in today’s changing retail scenario, GRT faces various new operational challenges, especially related to its inventory management and quality control. Due to the recent recession in the economy, the entire jewellery industry in India faced various issues.
GRT also faced several problems due to the recessionary trend, which particularly focused on inventory management and quality control. Some of the problems faced by the company are as follows: Sourcing jewellery from regional makers: GRT is known for its variety of designs, which the company generally sources from different local jewellery makers of the country. However, due to recession, most these small local jewellery makers suffered heavy losses and many could not sustain their businesses. This also meant that GRT was not able to stock their stores with new designs and had to look for other partners.
Rising gold prices: Due to the rise in gold prices, GRT like other prominent jewellery retailers came up with the concept of introducing gold jewellery pieces of lesser value. This meant that the retailer had to produce jewellery of lesser weight and carat, which often led to creating inferior quality products.