Student Name:
UWIC ID Number: ICBT ID Number: Subje Sub ject ct Name: Name: Sub ubjject Code Code::
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Assessment Number:
ACKNOWLEDGEMENT Firstly I would like to express my gratitude towards for various individuals who supported to do the assignment by all means. I wish convey my special thanks to all lecture, who gave me conceptu conceptual al knowledg knowledgee at the class class room regarding regarding research research methods methods.. Seconda Secondary ry,, I am thankfully to ICB campus for the coordination of this assignment.
EXECUTIVE SUMMARY
he report he report aims aims at analy analysin sing g the the !per !perati ation on "anag "anageme ement nt effi efficie ciency ncy of the the #$%" #$%"&! &! Furniture' which is engaged in the furniture business in Sri (anka for almost ) decades. *hile considering the !perations "anagement perspective of $%"&! Furniture it further illustrate the operational strategies adopted by the $%"&! specifically on +roduct $esign, uali uality ty "anage "anageme ment, nt, !pera !perati tion, on, invent inventory ory manag managem ement ent,, Suppl Supplie ierr relati relations onship hipss and and Consumer "anagement.
-ventually it has become the secret of the success gained by $%"&! which is the capability to produce high uality furniture in more affordable prices while providing exceptional customer service. he organisation/s organisation/s existing existing vision is to be among the world0s top furniture manufacturers offering an assorted range of modern and traditional furniture. %nyone who does observer the groups expansion towards the -lectronic goods, Fashion &etail and to (eisure and 1ospitality industry purely from furniture industry, it is evident that $%"&! operations were managed by its management team drives the $%"&! 2roup towards a tactical path with a endeavour of clear success. Its venture in to different industries with in these hirty years clearly shows the strength of the $%"&! group and the confidence they gained via the loyalty they built in Sri (anka hearts. India and %ustralia brace their success and current the target market of the $%"&! group has become -urope.
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INTRODUCTION !perations can be seen as one of many functions 3e.g. production, uality control, personal, marketing, finance4 within the organisation. he operation function can be described as the part of the organisation devoted to the production or delivery of products or services. his means all operations undertake operation tasks as eventually the entire organisation which operates to produce products or services. !perations "anagement is expressed as the activities which produces and delivers products and services to the end user. !peration management is also defined as #he "anagement of the conversion of process, which converts (and, (abour, Capital and "anagement inputs into desired outputs or goods and services 3%dam el al., 56678 p. 974. %lso another definition provided on !peration "anagement is that, to manage the organi:ation responsible for the production of goods and services for business planning and coordinating via use of organi:ational resources to convert inputs into outputs 3Stevenson, ;99;4.
!peration management has made it presence in the modern era as a management concept which enriches technologies to increase productivity while reducing costs, enhancing flexibility to meet rapidly changing needs and wants of the customer base, in catering uality product and services. he author explains the concept of !peration "anagement in this report segregating the report in to four main sections of in the context of $%"&! Furniture8 354 Importance of a strong oerat!on strate"# in $%"&! Furniture to capitali:e global opportunities. 3;4 Identification of ma4 $escription about the #Ne) (roduct*Ser'!ce De'e%oment& process in $%"&!, while benchmarking the current practices with leading practices in the industry and recommending reuired changes.
Coman# +ut%!ne 3
$%"&! F?&@I?&- being one of South %sia/s largest furniture manufactures is now among the world/s largest furniture manufacturers who offers assortment of modern and traditional furniture 3he @ation, ;; Auly ;95;4. $%"&! Furniture commenced its business ) decades ago in 567 by producing soft wood furniture. Since then the company has been expanding its operations locally as well as globally. oday $%"&! Furniture has 7 overseas showrooms and 59; own showrooms locally. In addition they have a strong dealer network of )999 locally D internationally. Currently $%"&! Furniture is dominating the Sri (ankan furniture market with ))E market share 3$%"&! Furniture %bout ?s, ;95>4.
It is evident that $%"&! Furniture is the market leader in the furniture industry amidst the rest of the players in the market 3$%"&! Furniture %bout ?s, ;95>4. In analysing the market, the opportunity obtainable in the furniture market is gigantic in Sri (anka, as the total si:e of the business is around )7 billion annually. he furniture market can be divided into two categories G market based on raw materials and the other based on usage. he market overall is highly fragmented as no player in the market is able to secure more than )E of market share. % ma
Based on the research findings it is evident that $%"&! Furniture maintain the cost leadership strategy through mass scale manufacturing and diversifying business in to new markets such as 1ospitality and (eisure service. he main success behind $%"&! Furniture in furniture is their manufacturing capabilities and echnologies. *ith state of art manufacturing spreads in seven different strategic locations in Sri (anka providing an entire range of superior furniture to households in the country. $%"&! Furniture is the only Sri (ankan furniture company who has presence in the global market with 7 overseas showrooms and is the largest furniture manufacture in south %sia. $%"&! Furniture is the pioneer in +anel Furniture and Sofas in Sri (anka, maintaining market leadership for the past 5; years. (ocally they have the best distribution coverage with 59; owned showrooms and 5;99 in the country. $%"&! Furniture has grown strength to strength and recorded &s Billion net sales during the past financial year.
,- Cr!t!ca%%# d!scuss t.e !mortance o/ a stron" oerat!on strate"# to t.e or"an!0at!on to ca!ta%!0e "%oba% oortun!t!es4
Imort ants o/ +erat!ons Strate"#
%n operation strategy cannot be decided in isolation, it needs to be cascaded down from the corporate strategy 3Aames, ;9554. he operation strategy of the company combines all the elements of the organisation such as +roduction, uality "anagement, Inventory "anagement, Finance, "arketing and Customer &elationships, 1uman &esources etc. which provides the goal congruency in the eventuality. 1ence the forcefulness of the !peration Strategy is a critical sub
Figure 01: Operation Strategy reflections
$%"&! Furniture is a player who has focused their business strategy on furniture products. From the overall corporate strategy, $%"&! Furniture it is their key business focus. $ue to this nature of products, the operations strategy $%"&! Furniture and all operations will need to be supported in order to meet these specific customer as well as business reuirements.
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$%"&! Furniture manufactures furniture which enables $%"&! Furniture to perform operations in mass scale which is highly capital intensive. Compared to its local market competitor #%rpico' does have small manufacturers scattered who are individual manufacturers which enables them to provide products and services with much more shorter lead times in delivering the products to the consumers. he operation strategy cascaded from the corporate business strategy provides a plan on how well the business resources could be used and outlines the plans for using the organi:ational resources 3+orter, ;9554. his will indeed support the business strategy that is in place in the organi:ation. 1ence, this plan will be based on the specific capabilities of the company which gives it a competitive edge in the market place versus the rest of the players in the market. he competitive priorities could be based on the platforms of cost, uality, time and flexibility. his report will further look at the operations strategies that will need to be decided in order to meet the overall business strategy. M!smatc.es 1 Imro'ements !n +erat!ons strate"#
he operations strategy of any particular company should be compatible with the type of industry in which the company operates. %naly:ing the strengths D weaknesses of $%"&! it is evident that the company has certain inconsistencies in their operations strategy in relation to the industry. here are several attributes which $%"&! Furniture excelled within their operations strategy which has resulted in success of the companies in their respective target segments. $%"&! Furniture has managed to establish a strong distribution network island wide, own state of the art manufacturing facility, concentrated focus on furniture industry D delivery of high uality products. he success of $%"&! Furniture is evident by the fact that it commands a market share of ))E of the furniture industry establishing itself as the market leader. 1owever the market is heavily congested with competitors hence on reviewing their operations strategy it was identified that a number of improvements can be made in order to elevate their standard to higher level expected by the customers in the furniture industry.
5.5 $%"&! -xpansion to India8 In a !peration Strategy point of view opening $%"&!/s first international branch and show room in !ctober ;999 branch and showroom in Chennai was critical for them and the utilise the India G Sri (anka free trade agreement which allowed them to export them to India in a tax free basis. his supported $%"&! in a waste manner for its expansion in South India while understanding the competing furniture giants in India such as +ace Furniture, 2othiya Furniture and Aayabarthan Furniture 3Sunday imes, ;9994. India can be considered as capitalisation of a global opportunity by $%"&! as population wise it is the second largest Chennai India. !nce $%"&! expanded their outlets domestically and after became a household brand during past twenty odd years, it began the international operations by initiating an outlet and franchise operation in 6
Chennai. his operation expanded so rapidly that within few years, it expanded to Harnataka, %ndhra +radesh and other southern and northern parts of India 3$aily @ews, ;99;4. 5.; -xpanding to !ceania region8 %ustralia which is another country which lots of Sri (ankans migrate at present, $%"&! is aiming high for their future and plans to expand to the Far -ast as well. $%"&!/s early sensation extended to more than 9 showrooms diagonally the world and they currently have >9 showrooms Island field 3$aily "irror, ;99;4. %ccording to statistics $%"&! has branched in %ustralia. 1ence %ustralia is a definite global opportunity which is a developed country with considerable high living standards. 1ence the affordability of the population is obviously high where $%"&! can utilise the opportunity to growing Sri (ankan population to a mode of building their brand in global level. %pproaching the domestic customer base in %ustralia while providing
(ow cost strategy8 +lastic furniture becoming a trend in the market where as customer has recognised it as an easy and durable product for usage. $%"&! already produces these type of products while ignoring the products which are made up of natural wood $%"&! was able to reduce its raw material and operational cost enormously by using locally obtainable raw material and low priced timber and locating the mass scale factory in @ittambuwa which is a remote area of the country as a initiation. he +enetration strategy of $%"&! was successful in via these low cost products in domestic arena as well as in India which it had penetrated the market while facing fierce competition from existing market players.
5.> -lectronic 1ome %ppliances is one of the latest operation strategies of $%"&! in diversifying to different industries $%"&! has being identified as one of the pro
existing customer base for its new venture of business and offering them more option through a different shopping experience. 5.7 $amro 2roup/s "arino 1otel being identified as ?S K >9 " , 5;storey building with more than >99,999 s feet by ;957 and this has being targeting Indian tourist in middleclass through $%"&!/s branch network and intends to attract 9,999 Jnew tourists/ to the country per annum 3he (eader,;95)4. &ecognition of clear potential of Sri (anka which reached its target of 5 "n tourist on %ugust ;95> in the tourism, they expect growth accomplishment of ;. "n tourist arrivals by ;957 3S($%, ;95>4. $%"&! group has taken another Strategic operational approach. his lasts diversifying operations strategy of $%"&! which added colour to Colombo sky line with this luxuries hotel consist of 5; story construction is a key step taken up by the management. he tourism industry is becoming more competitive with the international hotel chains which are about to start their operation in Colombo in the period of ;95 ;957. hese are world renowned hotel chains named Shangri(a Colombo, 1yatt &egency, "ovenpick and Sheraton. he venture of the $%"&! group is an interesting approach in a context where the statistic clearly shows the augmentation of tourist arrivals to the country 3%ppendix 954.
2- Identify ma
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+roduction +rocesses $%"!& currently provides standard product range which is cost effective and durable for the customers. *ithin $%"&! customi:ation is not available. $%"&! Furniture/s without being reliable third party suppliers in getting the products via manufacturing in mass ordered delivered production done at the factory space. he strength of $%"&! 1%S B-C!"- 1- cost based strategy which drives its operations and readymade structure was its strategy form the being which catered to the customer at an affordable low cost 3Figure 9;4.
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Figure 02: Furniture production “DAMRO”
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+roduct $esign and uality $%"&! Furniture on the other hand since they do not provide customi:ation of products, the products are much more generic and consistent. herefore, measures such as, otal uality management could be used in manufacturing operations. $%"&! Furniture will look at a :ero defect strategy in manufacturing their products in their production line but for %rpico/s customi:ed products which is very labour intensive uality cannot be made consistent of all the orders being the same. %rpico/s furniture range is much more luxurious and consists of moderni:ed furniture combined with high uality. herefore, it creates a high uality perception in the market versus the rest of the players where as $%"&! is also renowned for its uality and durability.
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Inventory "anagement $%"&! Furniture goes with a no stocks policy of finished products so it does not invest in warehousing facilities. his cost too is saved in terms of the pricing policy that $%"&! Furniture charges its consumers. *hereas %rpico do not operate with no stocks but at a minimum uantity to meet consumer needs at a given time. So they do have stock management systems such as, reorder levels, minimum order uantities in monitoring stock levels 3%ppendix 9;4.
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Customer "anagement, of $%"&! can be analysed via its operations management which intends to build loyalty via proving cost effective, durable products reaching the customers via its wide span of Show &ooms Island wide. his is understood b y the 9
locations selection of $%"&! group as $%"&! Furniture has more limited spaces within their showrooms as well as branches are located in the main town areas island wide. $%"&! Furniture/s strategy is to penetrate to the entire country through their own showrooms located and their dealers 3+iyestra4 in order to obtain mass scale operations. 1owever the nearest competitor of $%"&! , %rpico is strong in the bigger network as it is a diversified company and since they are looking at a trading model they look at very limited own showroom facilities and looks at reaching the market through the third party dealers 3$%"&! %bout us, ;95>4.
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Supplier "anagement D $istribution he business was originally located in remote are in western providence and that is to approach the suppliers without any middle man. In terms of distribution, since $%"&! Furniture has a mass scale of production they do have extensive distribution in putting up their showrooms and their +iyestra which gives $%"&! Furniture even greater reach. his will need to be done since they are a manufacturer of furniture but whereas, %rpico the competitor of $%"&! does trading which is extensive distribution through their third party dealers. herefore, it is evident that the operations strategy worked out by $%"&! is will differ as per the business strateg y selected.
3- Cr!t!ca%%# ana%#0e and roose t.e !mro'ements*c.an"es o/ t.e or"an!0at!on !n t.e '!e) o/ 4(rocess !nno'at!on and !mro'ement&- Suort t.e ans)er )!t. tec.no%o"# ac5u!s!t!on and automat!on-
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uality "anagement perspective, currently $%"&! is renowned for its uality and durability. he competitor of $%"&! which is %rpico is also in to Furniture, 1ome %ppliances, and Fashion &etail etc. he currently perception of the market is that %rpico provides more uality products and it has win the loyalty of the customer via its long existence in the Sri (ankan market. $%"&! processes the ?%(IL %SS?&%@C- in the factory level it is not clear whether operation are targeting a Continuance Improvement concept within $%"&!. he group should introduce the otal uality "anagement 3"4 which aims increase the efficiency of the operations of the organisation while diminishing the time hungry tasks which does not add value toward the end product. %lso " aim on eliminating wastage. It is this approach to ensure that the organi:ation functions with a devotion to continual improvement of uality and catering the consumer needs efficiently. *ith any change there will always count he slow road bumps can support $%"&! to strengthen the bottom line of the business in all sectors 3"anufacturing, Fashion, (eisure etc.4 enriching production via enhancing moral of its work force and also 10
gaining general positive environment do business. he intense strain on the market competition will supports trade and to contend worldwide for new ideas explored. ).;
?tili:ation of 1& in Customer "anagement G selection D purchase of furniture is considered something intimate D special by customers. herefore it is necessary that the customers are aided by competent D pleasant staff in their choosing of furniture to their household. 1owever $%"&! Furniture allocates employees from rural backgrounds with no adeuate training in their showrooms which may result is customer dissatisfaction in terms of uality of service. 1ence it is essential l that $%"&! Furniture focus on training employees on customer etiuette which would allow them to improve their uality of service to expected levels.
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Inventory "anagement8 his goes with hand in hand with Suppler "anagement as Suppliers will provide the necessary raw material which is stored as raw material inventory and after the production the Finish goods inventory will be stored again. It is visible that Currently $%"&! does not practice any modern day inventory "anagement system such as Aust In ime even though its main factory is situated in a area where the raw material is uite available, which in @ittambuwa and it has also situated the other factories in +annala etc. In order to practice AI the reliable suppliers should be located near to the factory which eliminates the inventory "anagement task as Suppliers will manage the inventory on behalf of business and provide the necessary inventory 3raw material4 at the point of which production starts. Since $%"&! does mass production which drives cost factor in high volume it is possible for them to practice AI in order to be in line with the global best practice.
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Supplier "anagement8 his is the initiation sate for the production process. he suppliers who have ability to provide necessary material will ensure the inventory availability for a smooth production line. -ven the In'entor# Mana"ement task would not be efficient in a context where the suppliers are not reliable which make it tedious to meet the demand of the market. he materials supplied as part of the management and operation. Selection of suppliers based on uality, consistency of supply is critical in achieving business ob
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6- Descr!be t.e 4Ne) (roduct*Ser'!ce De'e%oment& rocess !n t.e or"an!0at!onBenc.mar7 t.e current ract!ces )!t. %ead!n" ract!ces !n t.e !ndustr# and recommend re5u!red c.an"es
+rocess innovation in vital to an organisation as world is seeking in to new options= aspects in terms of products as well as services. >.5
$%"&! durable beds G he resent addition to the product portfolio of $%"&! which they advertise as a durable double bed with an attractive advertising which shows that it can hold the weight of up to 5 people. It is uite interesting who they demonstrate the strangeness of the bed. he concern is that current context of competition speed of delivery is an absolutely critical factor to attract new D retain customers. !ne primary weakness of $%"&! Furniture is its long product delivery time which may provide a competitive advantage to its competitors. herefore it is vital that $%"&! Furniture improves its efficiency in all operational areas, possibly reengineer its manufacturing process D initiate steps to lessen the time taken to deliver the final product to its customers. Since the competition in the market grows day by day the customer needs should be addressed given the sort period of time. Customers will engage with modern trends and the contemporary think is diminishing in the mind set of customers.
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$ifferentiation Furniture is an aspect intended to provide a differentiation to a residence which is a prime expectation of customers D therefore some customers prefer to have access to variety in their choices. It will also act as a competitive advantage for $%"&! over its rivals. 1owever in terms of availability of varieties $%"&! Furniture lags behind its competitors. hough allowing flexibility would reuire an alteration of the current process of manufacturing it will enable $%"&! Furniture to improve its competitive position in the market, capture more market share D be consistent with the expectations of the customers as an entity operating in the furniture industry.
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Customisation8 "anufacture of furniture on to customer specification can be referred as #customisation'. +resent day most of the organisations provides customised services as it became a global trend via computer industry 3$ell computers, ?S%4 while $%"&!/s domestic competitor %rpico follows. +roduction +rograms should be made to maintain efficiency. !peration "anagement ensures that best raw materials and suppliers of outsourcing finest selected on the basis of assortment to manage customised orders. 1ence the final product to ensure uality each time, the operational emphasi:e of which could further develop the production.
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?ntapped "arket G *hen considering the total furniture market based on raw material segregate, larger potion comes from wooden furniture which is )E. Being the market leader for past many years $%"&! Furniture has never given any attempt to getting into wooden furniture market which is eccentric. Since there/s no big company in 12
wooden furniture market, it is understood there/s a colossal opportunity hidden there to capitali:e >.
(ocation layout G $%"&! cater to premium customer segments the ambience of a furniture showroom to these upper class segments expects it to be comfortable D spacious with room to manoeuvre between various products offerings. Since %rpico offer several different product categories within the same super centre, area allocated for furniture is limited with products clustered creating an inconvenience for customers. herefore as a method for improvement %rpico in line with their corporate strategy of allowing many products under one roof, can construct their supercenters in the future by allocating more expanded area to furniture in their supercentres providing the comfort their target high class customers seek.
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$istribution Strategy as a new service development G here are two "ain distribution channels in consumer durable markets, which is company own showroom network D dealers. $%"&! Furniture has tapped both these markets with a very innovative strategy to minimi:e customer confusion and channel conflict. *hile promoting $%"&! Furniture products through their own showroom network, for the dealer market they came up with a new brand called +iyestra, which helps them to penetrate the market since +iyestra is a cost leader
CONCLUSION
Corporat o"#$t%&' '(o)*+ +r%& to,ar+' %- .a/ t( '(ar(o*+r' (app to +%r$t to %-$t%o- to " ')$$'')* %- t( .ar/t DAMRO' )'%-'' o"#$t%&' $o)*+ " a$(%&+ " %-$ra'%- r&-) .or 'a*' a-+ %- t( 'a. t%. &%a pro+)$t%o- $%-$ -$: t( oprat%- +%&%'%o- %' r;)%r+ to pro&%+ ratr r'po-'%"%*%t or t(%r ,or/ %- or+r to a$(%& $orporat o"#$t%&' %- t( *oa- r)- DAMRO 'trat '(o)*+ " <(o, t( $o.pa- "oo't pro=ta"%*%t at *a't " 20> $o.par+ to pr&%o)' ar? It (a' -o, +%&r'%=+ to E*$tro-%$ o. App*%a-$': @a'(%o- Rta%- a+ a*'o %- to L%')r a-+ o'p%ta*%t t(ro)( t( $o-=+-$ a$(%&+ %- @)r-%t)r .a-)a$t)r%- ,(%$( ,a' %t' %-$pt%o- )t t(at %' -ot &%oro)' or DAMRO' =-a-$%a* +&*op.-t Ra'o- "%- %t $o)*+ a$(%& *o-tr. +&*op.-t ,%t( -&%ro-.-ta* o$)' T()': t(%$' a-+ t(%$a* +&*op.-t o %--o&at%& pro+)$t' %' %.porta-t So$%a* R'po-'%"%*%t CSR '(o)*+ "$o. a- %.prat%& oa* o t( Da.ro ro)p' .ot%o-: ,(%$( $a--ot " .t ,%t(o)t $rat%- t( "'t 13
at.o'p(r or .p*o': oBr%- t(%$a* pro+)$t' or $)'to.r' a-+ 'o$%t Concluding the report, it is understood that $%"&! gained its/ success via the effective use of !perations "anagement in catering the domestic and international markets via penetrating which driven through its achievement in mass production enport which are not yet addressed by the management in optimising its !peration "onument skill in reaching $%"&!/s potential.
RECOMMENDATIONS &ecommendations for future action in gaining more success and to answer the challenges. •
Aroac.!n" otent!a% mar7ets:
$amro already approached the India market as well as %ustralian and ?%-. Considering the population aspect in the world which exceeds M billion by now China holds almost ;9 E 3%ppendix 9)4. herefore it is an obvious success factor as population grows the family/s needs 1ousehold items such as Furniture, 1ome %ppliances opens global opportunities to $%"&!. %lso the boot in Fashion retail has a positive correlation ship with the population factor. !bserving its success in India and the Success in %ustralia it is evident that $amro can gain clear success in other countries as same. •
Ne) roduct des!"ns: he trend needed to answer by $%"&! as otherwise
competitor will have a competitive advantage of lack of new products introduced by $%"&!. $%"&! needs to improve product design and supervision uality product. Internal and external audit is necessary to maintain uality. •
Brand A)areness G Since $%"&! Furniture heavily spends on advertising this
affected in the long run. he advertisement which targets the global market should be in international standards as it would alarm the global customer base the strength of the group and the confidence on the products which are exported.
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Ventur!n" !n to ne) !ndustr!es: 2lobalisation provides opportunities to grow as well
as threats through crisis which may initiate in a corner and expand throughout the world due to the connectivity in economies. 1ence diversifying !perational and Financial &isk is a wise decision made by the management of $%"&! group. Further it may diversify the business in to the industries such as 1ospital and -ducation form the learning obtained from the existing business. -.g.8 Since $%"&! is already approached the 1otel industry via its ?S% >9 "n investment in "arino 1otels 3he (eader, ;95)4, they could use the experience in 1ospital service to understand the 1ospital operations which has similarities such as high !verhead cost and ;> hours service. •
De/!c!ent /ocus 1owever it is imperative that the Furniture segment is given high
attention along with all other segments since the customer will benchmark the uality of $%"&! Brand from all its product D service offerings. -ffort must be made to ensure that the Furniture segment of $%"&! is at minimum parallel in terms of uality D service with its competitors. hey loyalty created through almost three decades should not be vanished in a poor performance in any of the segments. here is a risk of failure in -lectronic 1ome %ppliances sector due to the inherent nature of the industry. here is a fair uestion asked as #how durable and reliable the brands such as #+reethi', the Indian mixer and 2rinder'. !ne sector failure will negatively affect the others sector as customer buy goods or services with trust they have in the previous experience. •
Con'en!ence G allowing the customer to access the product desired with relative ease
has become a critical element in current market dynamics. 1owever lacks a wide network of showrooms therefore has to rely on the loyalty of customers to generate revenue since it reuires effort to locate show rooms.
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Tec.no%o"#8
-mployment of technology in operational procedures is essential to develop top uality products in an efficient manner. $%"&! lacks their own state of the art technology utili:ed by other competitors such as %rpico Furniture. Investing in state of the art manufacturing technology may enable $%"&! to acuire long term benefits from its Furniture division. echnological enhancement eliminates the
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(ro'!de ade5uate tra!n!n":
his should be carried out in a gradually basis ensuring that staff absorbs the training in a proper manner. he trainings should be carried out focusing the aspects such as uality, (-%@ and Six Sigma. hese are essential where as the employee/s understand the value of operations effectiveness and how to eliminate inefficiencies. -ncouraging employees to take part in the training and assessing their capabilities ensures the enrichment of skill levels. he work force should understand the reuirement of the
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management via these training with convey the message of goal congruence ultimately across organisation.
$ua%!t# Aud!ts to ensure t.at e'er#one !n educated on act!ons-
*hile carrying out the debate of uality in the organisation the control check should be strength in terms of audits. hese audit controls will ensure the necessary gaps are filled and appropriate actions are taken and communicated to the individual in a timely basis. %ll the controls need to be governed by appropriate responsibilities and the individuals who are responsible needed to be delegate with authority. Freuent uality audits should be carried out and result should be share among the necessary individuals enabling them to #(earn from their mistakes'.
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Ta7e correct!'e measures and mon!tor!n" rocedures 8
Building a culture of +roactive action within the organisation is vital. Corrective actions and measure should de designed in operations which always provide solution in a failure. Failure "ode %nalysis 3F"-%4 enables to understand possible failure in operations and the effect of the failure. %lso it allows understanding the risk and available option to correct the failure. $%"&! needs to inculcated the practice of corrective measure as in is now moving in to service sector with its strategic moment in to (eisure and 1ospitality 3Sri (anka -uity Forum, ;95)4. he importance of the corrective measure in the service industry is huge as the response time for failures is very less than producing goods. Customers are directly interacting with the work force and en
(romot!n" 8o#a%t# cards:
By now $%"&! has ventured in to several industries which are having inter connectivity, it is a high time for $%"&! to introduce a (oyalty card. his convey the vital message to the market and to the customers to connect to the $%"&! as it has recognise the customers as loyal factor and it has carried $%"&!/s customer to a level which allows the customer to en
customer which helps them to retain their customer while proving benefits for its customer whenever they do business with %rpico. For now $%"&! lack any service as such which provide a competitive edge to other players to garb $%"&! customer via promotions towards them.
RE9ERENCE
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%bout $%"&! Furniture 3;95>4, %vailable from8 http8==www.$%"&!.lk= , 3%ccessed on 9;nd September ;95>4
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he @ation 3;95;4, #$%"&! to enter fashion retailing, Sunday', %vailable from8 http8==www.nation.lk=edition=bi:news=item=>6>$%"&!toenterfashion retailing.html 3%ccessed on 9;nd September ;95>4
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he @ation 3;95;4, #$%"&! looks to fashion, electronics', %vailable from8 http8==www.nation.lk=edition=bi:news=item=5))9)$%"&!lookstofashion electronics.html 3%ccessed on 9;nd September ;95>4
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$aily @ews 3;99;4, #$%"&! Furniture to expand "arket beyond', %vailable from8 http8==archives.dailynews.lk=;99;=9)=;9=bus95.html
.
$aily @ews 3;95)4, #$%"&! diversifies to leisure sector', %vailable from8 http8==archives.dailynews.lk=;95)=97=97=bus95.asp
7.
$aily @ews 3;95)4, #Colombo hotels to add M99 rooms', %vailable from8 http8==www.dailynews.lk=NObusiness=colombohotelsaddM99rooms
M.
%da $erana 3;95)4, #$%"&! to build "arino Sands 1otel', %vailable from8 http8==adaderana.lk=bi:news.phpNnidO7; 17
.
he (eader 3;95)4, #$%"&! to Invest ?SK >9m !n ;M9&oom 1otel', %vailable from8 http8==www.thesundayleader.lk=;95)=97=96=$%"&!toinvestus>9mon;M9 roomhotel=
6.
Sunday imes 3;9994, #$%"&! gets a seat in Chennai', %vailable from8 http8==sundaytimes.lk=99595=bus).html
59.
$aily "irror 3;95), #Consumer durables to see weak demand', %vailable from8 http8==www.dailymirror.lk=business=economy=;);9consumerdurablestoseeweak demand.html
55.
Sri (anka -uity Forum 3;95)4, $%"&! into 1otel business', %vailable from8 https8==www.google.lk=webhpNsourceidOchrome instantDrl:O5C5C1"!Pen(H6(H6DionO5DespvO;DieO?F QO$%"&!RnewsDstartO59
5;.
Sri (anka ourism $evelopment %uthority 3S($%4 3;95>4, %vailable from8 http8==www.srilanka.travel=index.phpNrouteOevent=travelnews
5).
Crosby, +.B. 356674, uality is free8 "aking uality Certain in ?ncertain imes, ?S%8 "c2raw1ill
5>.
%dam, -. -. and -bert, &. A. 356674, +roduction and !perations "anagement, ?S%8 +rentice 1all
5.
1ill, ;99, !perations "anagement, ;nd edition, +algrave "acmillan, Basingstoke
57.
Hamauff, A. 3;9964, "anager0s 2uide to !perations "anagement, 5st -dition, ?S%8 "c2raw1ill
5M.
&ussell, &.S D aylor, B.* ;996, !perations "anagement8 %long the Supply Chain, 7th edition, @ew Lork8 Aohn *iley D Sons (td
5.
Schneider, "., 3;99)4, !perations "anagement @ew Lork8 Aohn *iley D Sons (td
56.
Slack , @., Chambers, S., Aohnston &., ;959, !perations management, ?S%8 +rentice 1all
;9.
Slack @., (ewis, "., ;955, !perations Strategy,
;5.
S($% 3;95>4, Sri (anka ourism $evelopment %uthority, ;95>8 #*onder of %sia', %vailable from8 http8==www.sltda.gov.lk=index.html, 3%ccessed on 9;nd September ;95>4
18
;;.
&eid, &. $. and Sanders, @. &. 3;9594, !peration "anagement, >th -dition, ?S%8 *illey
;).
+orter %., 3;9554 , !perations "anagement,
;>.
Auran, A. "., 3;9954, Auran/s uality 1andbook, th edn, "c2raw1ill
;.
Barnes, $., 3;994, !perations "anagement8 %n International +erspective, homson (earning, (ondon
;7.
Aames, ., 3;9554, !peration Strategy
;M.
Stevenson, *., 3;99;4, !perations "anagement
AENDI 1 To)r%'t Arr%&a*' t( ro,t( %- Sr% La-/a- To)r%'. %-+)'tr
Source: S8TDA 2,6; stat!st!cs
2- In'entor# Mana"ement
19
3- Wor%d (ou%at!on < B# countr#
Source8 -fergy http8==efergy.com=blog=worldpopulation 20
21
