OpM Wshop Assig_Group 4_Philips Brand Store_final

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    Operations Management Workshop Presentation

    (OpM Wshop Assig_Group 4_Philips Brand Store)

    Tan Hong Kai (8255090)

    Renato Sliva(8040404)

    Sumarleki Amjah(8221158)

    Ashok Bhattacharya(8266804)

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    Facility Layout

    ZONING OF AREAS WITHIN THE STORE

    INSPIRE EXPLORE PURCHASE

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    Main Entrance

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    Inspire

    Push Corner/Best

    Sellers/New ArrivalsSection in first 3m of store

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    Explore / Engage

    Clear specific themes onproduct display.

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    Explore / Engage

    Touch buttonsforlight switches

    Simple but clearstore communications

    Explore lighting optionsin various settings.

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    Consultancy / Purchase

    Lets Plan Station for

    CustomerEngagement

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    Philips Type of Layout

    Process Layout (Job shop/functional layout) Transformed resource moves according to established

    sequence

    Layout of transforming resources optimised

    Transforming resources are fixed and the transformed resources take an appropriate pathway through them

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    Impact of Store Layout Optimal utilisation of space, equipment and people

    Effective flows of materials, information and people

    High employee morale (employees look cosy)

    Safe working conditions (from field observation)

    Good customer / client interaction (direct experience)

    Flexibility (ample space for re-layout)

    Nice ambience and aesthetics; exude comfort

    Shopper traffic flow - logical sequence from Inspire toExplore and finally Purchase all within 150 sqm

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    Process Flow

    10

    Inspire ExplorePurchase(Consultancy)

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    Linking Process Flow to Layout

    SERVICEPROCESS

    TYPESERVICESHOPS

    ADVANTAGES

    DISADVANTAGES

    High product and mixflexibility

    Relatively robust incase of disruptionsEase to supervise

    Low utilizationCan have very high

    inventory 500skus

    PROCESSLAYOUT

    LOW VOLUMEHIGH VARIETYHIGH VARIATIONHIGH VISIBILITY

    PROFESSIONALSERVICES

    PHILIPS

    PHILIPS BRAND STORE PROVIDES TOTAL

    LIGHTING SOLUTIONS WHICH INCLUDEINTERIOR DESIGN CONSULTANCY, HOMELIGHTING DESIGNER SERVICES AND STYLEORIENTATION /COMPATIBILITY TO HOME

    PhilipsBrandStore

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    Copyright 2006 John Wiley &Sons, Inc. 2-12

    Operations Strategy at Philips RetailPhilips

    Transformative power oflighting

    Branded RetailPhilips Way

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    Philips Retail Service Concept

    13

    Philips Home Lighting Proposition:

    Retail Implications

    Easy to explore& learn

    Context, learningFun, enjoyable,

    Easy to understand,Intuitive, Editorial

    Experience whatlight can do

    Transformative effect oflight on spaces and

    moods

    LightingPlaygroundClean, Bright,Uncluttered,

    Highly InteractiveBeing a Protagonist

    For your Home

    Home, hot HouseRelevant

    Achievable butaspirationalHow to

    Get the Look

    Philips Home Lighting Retail Proposition:

    A Lighting Playground where its easy to explore, learn and experience what light can do for your Home

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    Operational ImplicationsSERVICE = EXPERIENCE + OUTCOME

    ADVANTAGES

    Service experience maximization

    The lay-out allows showing more products variation and its applications helping on the salesprocess (managing multiple customers).Tentative to make more tangible the service outcome -providing customer value : 3D software (innovation)

    DISADVANTAGES

    Increase complexity in staff requirements (software knowledge / more and specific sociableinteraction).

    Increase one more step in the process (coordinating different parts of organization) -communication between front and back office.

    Increase time in service experience (including 3D simulation) could lead to workload increase staff or customer waiting time.

    Risk of increase after sales services as a result of 3D simulation (results could not fitcustomer requirements)

    How to ensure consistent quality in the lighting consultancy and designs?

    It is an additional service, not provided before, that requires management. Increase sales butincrease costs too = can I charge more for it? Extremely flexible processes may be excellentfor responding to a wide range of special customer requirements but may be quite costly tomaintain (R.Johnson and G.Clark, 2005).

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    Thank You.

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    References

    Johnston, R. and Clark, G. (2005). Introduction to Service OperationsManagement: Improving Service Delivery. 2nd ed. Harlow: PearsonEducation Limited.

    Slack, N., Chambers, S., Johnston, R. and Betts, A. (2009). Operationsand Process Management. 2nd ed. Harlow: Pearson Education Limited.

    Philips Singapore. http://www.philips.com.sg/

    http://www.philips.com.sg/http://www.philips.com.sg/http://www.philips.com.sg/