Effective Operations Management Strategies for Walmart Assignment Sample

Operations Management Assignment

ASSIGNMENT TASK 1

Introduction

Operating business in the global market and the threats from the competitors created challenges for each organization in improving their efficiency. The success of the company Walmart is based on the effective decision-making process which values its internal operation as well as enhances its market reputation by prioritizing customer requirements. At present when every customer is looking forward to getting a good quality product and service the improvement in the product quality is found necessary in satisfying customers' demand. However, the operation management department is responsible for analyzing the day-to-day operation in the organization and also for addressing the changes in the organization which are valuable in enhancing the employees' productivity. Accordingly, the current change in the market and the change in the customer requirement created challenges for the company Walmart in maintaining its market position. Additionally, technological support was found beneficial in mitigating market risk by providing the best service to the customer. Further, the two tools which have been selected here for Walmart in analyzing the customer perspective effectively and managing the investor are benchmarking and JIT. Moreover, the implementation of the information systems is crucial in analyzing the market trend and making differentiation in the product or services provided by the competitors. Nevertheless, ICT can give the opportunity to Walmart in improving the quality and service by considering the requirements of the customers. On the other hand, the company's focus is on developing flexible scheduling and inventory management by using the technology found effective in giving Walmart a competitive advantage. However, the report is made to analyze the importance of the best operation management for the company Walmart in enhancing its efficiency and improving its service quality.

Figure 1: Logo of the company

(Source: Corporate.walmart.com, 2023)

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Identify the values of the existing operations and quality management process in achieving the management objectives

Innovative approaches, best leadership, and providing quality service and product to the customer is the uttermost priority of the company Walmart. The company is focused on including changes in the current operation of the organization for being more sustainable and also in gaining competitive advantages. However, the company set an international business strategy where the company is looking forward to creating a strong local business which can give the opportunity for the organization to be customer-focused (S201.q4cdn.com, 2023). In addition, the taken decision of the company of divested from the Asda Group in the year 2021 was beneficial in strengthening the international market of Walmart. Although the company is one of the largest retailers worldwide the poor practice in maintaining the supply chain created challenges for the organization in operating its business smoothly in the global market According to that, to enhance the market reputation and for strengthening the market position the adoption of the best operation management strategy is crucial (de Sousa Jabbour et al. 2019). However, the company has developed various strategies for improving its service and product quality which are beneficial in achieving the goal of the company in the meantime. Firstly, the challenges which are faced by the company need to be addressed for analyzing the effectiveness of the strategies in reducing the impact of the challenges on the organization's performance, however, the challenges are,

Inventory level management

The company is operating its business worldwide, however, with more than 100 stores in different countries the company faces challenges in maintaining the inventory level of each store effectively. In addition, with the poor practice in operating the real-time data created the situation where the company is experiencing difficulty in balancing its inventory.

Suppliers' and vendors' engagement

Supply chain management issue is the major problem for the company which is caused due to the involvement of numerous numbers of vendors and supplier in the organization. The relationship with both parties requires to be maintained properly in order to get the high-quality raw material and deliver the quality product to the customer. However, the requirement of the tolls in monitoring the performance of the vendors is found effective in reducing the complexity of the operation process.

Operation scale

Walmart has more than 10000 stores globally and with the involvement of a large number of employees and various suppliers the company faces challenges from the side of logistics. However, the movement of vast quality of products and complexity in the supply chains are the major problem in the organization.

The company is focused on reducing these challenges' negative impact on the organization's performance for which the company developed some strategy which is effective in improving the market position of the company. Firstly, the omnichannel gives the opportunity to the organization in satisfying the requirement of the customer in an effective way. As per the report of the company in the first month of 2023, there is more than 3900 same-day delivery made among approx 4600 pickups (S201.q4cdn.com, 2023). Further, to provide high-quality items to the customer in an affordable range Walmart also adopted a merchandise strategy where the company listed the product in three segments which are, grocery, general and health care. Moreover, the company is focused on continuing its investment in the supply chain, additionally, the company's decision to divest was also effective in operating its business separately which supports the organization's growth.

Evaluate the operation management tools and describe how they will help Walmart to achieve its goals

“Operation management tools” play a vital role in the success of any association, and Walmart is no exception. Walmart, being one of the global largest retail chains, relies heavily on efficient and adequate operation management instruments to reach its goals. However, it also said that proper management of operation management tools will help the company to manage the company operations in an effective way. In addition, the following company will be able to get more profit by managing those tools. Two key tools that can significantly benefit Walmart are “Just-in-Time (JIT) and Benchmarking”.

“Just-in-Time (JIT) and Benchmarking”

Just-in-Time (JIT) is an operation management perspective that concentrates on creating and providing goods or services at the identical time they are required. Based on the views of Palange and Dhatrak (2021), the primary objective of JIT is to eradicate waste, lower inventory costs, and enhance overall operational efficiency. However, JIT can help Walmart minimize inventory expenses. Walmart works on a huge scale, with numerous shops and a vast range of outcomes. Furthermore, by adopting JIT regulations, Walmart can simplify its supply chain, providing that outcomes are provided to stocks only when they are required. This decreases the need for excessive storage space and inventory holding expenses, ultimately resulting in substantial cost savings. However, JIT also helps Walmart to enhance customer satisfaction along with the right outcomes available at the right time. Walmart can meet buyers' needs more accurately (Panmore.com, 2023). This decreases the risk of stock outs and provides that buyers can find the outcomes they require when they visit Walmart shops.

Figure 2: JIT

(Source: Mbaskool.com 2023)

Enhanced customer satisfaction directs to boosted customer dedication and repeat trade, eventually contributing to Walmart's overall success. Furthermore, JIT can improve operational efficiency within Walmart's stores. With JIT, Walmart can optimize its methods and workflows, decreasing bottlenecks and eradicating unnecessary actions. In addition, by adopting lean principles and continuous improvement methods, Walmart can make a culture of efficiency and significance throughout its processes, resulting in enhanced productivity and decreased expenses. Benchmarking is another valuable tool that can greatly benefit Walmart. However, benchmarking fall an impact on organization's operations and implementation procedures against those of industry leaders or competitors (Bhattacharya et al. 2020). Furthermore, by analyzing and learning from the best practices of other successful organizations, Walmart can identify areas for advancement and execute strategies to enhance its functions. One area where benchmarking can help Walmart is supply chain management. As per the views of Forbes.com (2023), Walmart's supply chain is known for its efficiency, but there is still room for improvement.

However, benchmarking against other retailers known for their supply chain excellence, Walmart can recognize innovative practices and technologies that can further enhance its supply chain processes. This could include advances in transportation logistics, warehouse management, or information systems integration, among other competitors. Furthermore, benchmarking can help Walmart in remaining ahead of industry trends and innovations. However, by analyzing competitors' methods and observing emerging trends, Walmart can proactively adapt its processes to meet varying customer demands and priorities. This can include assuming new technologies, executing innovative marketing techniques, or exploring new business standards. “Just-in-Time (JIT) and Benchmarking” are powerful operation management tools that can significantly benefit Walmart in reaching its goals. JIT can help Walmart decrease inventory costs, enhance buyers' satisfaction, and enhance operational efficiency. Benchmarking, on the other hand, can supply Walmart with valuable insights and best techniques from industry leaders, helping the organization optimize its supply chain, store procedures, and overall business processes. Moreover, by leveraging these tools effectively, Walmart can continue to succeed in the highly competitive retail enterprise.

Evaluate how the application of ICT helps in enhancing the business operation and is valuable in gaining competitive advantages

Walmart is one of the largest retail companies in the global market which operate its business in more than 29 counties with approx10000 stores. However, the involvement of the various suppliers and the requirement in maintaining the employees in a proper way for improving the company's efficiency increases the value of implementing technology in the operation. The current challenges faced by the company due to the poor maintenance of customer relationships and the making of effective decisions in mitigating the market risk can be solved with the help of ICT. Effective communication, analyzing the data properly, and identifying the requirement of the consumer are beneficial in addressing the drawbacks in the internal operation of an organization (Kumar et al. 2020). At present the market competition has increased which impacted the market position of the company, hence better practices in valuing the customer are required in strengthening the customer base. The ICT implementation in the organization can give the opportunity to Walmart in gathering the data of the suppliers and vendors, as well as teh work of the employees can also be monitored with the help of technology.

On the other hand, internal communication can also be improved by taking advantage of the communication tools such as "Google Workspace". However, this tool is effective in improving communication mainly when employees work remotely, besides that with the help of it the company can easily identify the issues in the management. Moreover, by taking advantage of technology the quality of the service can also be improved, such as by giving the chance to the customer to interact with the executive can enhance customer loyalty (Martínez-Caro et al. 2020). Communication with the suppliers and vendors with the help of the tool is crucial in addressing the issues in the supply chain; nevertheless, this is also effective in reducing the complexity of the operation. However, the company is focused on delivering higher quality products at low prices, for which the company requires to cut down operation costs which imply the raw material price needs to be minimized. Therefore it can be said that, with the help of the p[roper market analysis the company can choose the quilted raw material at a minimum price from the different suppliers. Additionally, if the customers get the quality product and service from a company at a lower price then it enhances the loyalty to the business as well as attract more customer.

Analysis of how AI can improve the business operation in both contexts along with the challenges the organization faces if executed

“Artificial intelligence (AI)” has the potential to immensely improve the overall business operations of Walmart, both in domestic and global contexts. While leveraging AI technologies, businesses can simplify operations, enhance efficiency, and make data-driven decisions. However, implementing AI also arrives with its own set of challenges that Walmart need to be conscious of. In domestic operations, AI can be used to automate redundant tasks, like data entry and report generation, allowing employees to focus on more strategic and innovative work. AI-powered chatbots and virtual associates can handle customer questions and support, delivering quick and personalized answers. This enhances buyer satisfaction and frees up human resources for more complex tasks. AI can also explore the large importance of data to identify practices, movements, and wisdom, helping businesses make knowledgeable decisions and optimize their processes (Mekhanikov, 2022). For example, AI algorithms can examine buyers' behaviour to recommend personalized products or services.

In the global context, AI can enable contact and cooperation across borders. Language translation tools powered by AI can bridge language obstacles, permitting businesses to engage with buyers and supporters from different sectors. AI can also help in researching market trends and customer choices in different countries, allowing businesses to tailor their products and marketing methods accordingly.

Despite the numerous advantages, Walmarts may face several challenges when executing AI. One major challenge is the availability and quality of data. AI algorithms need large amounts of high-quality data to train and make correct predictions. Walmarts must confirm that they have access to appropriate data and that it is correctly labelled and arranged. Additionally, privacy concerns and data protection are crucial respects. Walmarts must handle buyer data with care and comply with applicable regulations to detour data breaches and preserve buyers' trust. However, one of the big challenges is the demand for skilled AI experts. Acquiring and deploying AI systems needs expertise in data science, machine knowledge, and programming. There is a requirement for more skilled experts in AI, making it challenging for Walmarts to find and employ the right talent. Upskilling existing workers or partnering with external specialists can help handle this challenge (Benbya et al. 2020). However, Walmarts must handle challenges connected to data availability and quality, privacy and safety, talent investment, and ethical regard. Furthermore, if the company carefully guides these challenges, Walmarts can leverage AI to achieve a competitive advantage and guide success in the ever-evolving company landscape.

Conclusion & Recommendations

Conclusion

The report contains a brief analysis of the operation management tools along with their effectiveness in the company. However, the report also discusses the quality management process of the Walmart Company. In addition, the effectiveness of AI tools and their challenges are included in the project. Ethical reviews also come into play with AI performance. Walmarts must confirm that AI systems are fair, translucent, and equitable. They should regularly observe and audit AI algorithms to recognize and mitigate potential predispositions. Additionally, AI should be used responsibly, carrying into account possible societal impacts and detouring unintended consequences. Moreover, there is also an evaluation of two operation management tools JIT and Benchmarking are discussed in the report. Walmart employs a vast network of shops, and benchmarking against other thriving retailers can deliver insights into the best methods for store layout, product ordering, staffing standards, and customer service. Based on the report in recent years Walmart also adopted a merchandise strategy where the company recorded the product in three parts which are, grocery, general and health care. While adopting proven methods, Walmart can additionally improve the shopping knowledge of its buyers and enhance overall operational implementation.

Recommendations

There is a small recommendation for the Walmart Company. However, with the growing trend of online shopping, it's important for Walmart to continue funding its e-commerce capabilities. Improve the user knowledge on the website and mobile app, offer convenient delivery choices, and provide seamless integration between online and offline shopping incidents. However, Walmart already maintains a global presence, but there may still be options to develop further into emerging needs. Conduct thorough market analysis to identify countries with the possibility for growth and develop plans tailored to each market's special characteristics. In addition, continuously enhance the efficiency of .r supply chain to decrease costs and improve product availability.

Execute technologies like RFID search, advanced analytics, and industrialization to streamline stock management, optimize logistics, and improve forecasting accuracy. At present times buyers are increasingly concerned about sustainability and environmental effect (Darvazeh et al. 2020). Walmart can indicate its commitment to sustainability by executing eco-friendly practices across its processes, diminishing waste, and sourcing products from sustainable and ethical suppliers. Enable these efforts to improve the brand's image and attract aware consumers. Employee satisfaction and skill expansion are critical for preserving high operational standards and customer assistance. Provide regular activity programs to improve employee knowledge, facilitate career advancement options, and foster a positive work culture.

ASSIGNMENT TASK 2

Question 1

Identify the importance of developing a network diagram in project management

The network diagram is prepared in presenting the required time for the project development in graphical form. However, there is a particular time set by the project developer for the competition of the project, for which the analysis of each task needs to be represented in an effective manner for reducing the chance of time expansion for finishing the project. Nevertheless, as per the given data by the company ABC Construction group there is a total of 14 tasks that need to be completed within one year. In addition, as per the terms of the company, the project requires to be finished within 40 weeks, and more than that might result in a penalty. However, the network diagram is created in giving the visual identification of the required time for completing each task (Bagshaw, 2021). Besides that, the dependency of each task on others shows the value of completing a task before starting the next one. In addition, the network diagram also shows the interconnectivity of each task which is effective in giving detailed information to the team member about the importance of a specific task. Moreover, for identifying the importance of each task and the dependency of one task on another for the project development the network diagram is created here. However, the network diagram is effective for time management in the project as it shows the exact time which is appropriate in completing the projected jobs.

Network diagram presentation

Figure : Network diagram

Source: Self-created

The above figure represents the required time for completing each task in the project. However, the total time required for completing the whole project is estimated at 79 weeks, and based on the dependency of each task the above figure is made. In addition, the preparation of the network diagram is valuable in giving the graphical presentation which is effective in giving a detailed identification of each job value.

Question 2

Evaluate the significance Critical Path Method in project development

Every organization has limited resources for investing in a project, accordingly for completing the project within the budget proper time management is necessary. However, considering CPM for Project development is crucial for effective communication between the team members at every step of the project. On the other hand, this method helps the project manager in identifying the values of each task, and based on this project manager can give priority to the task for improving the quality of the project (ANGELIN, 2019). Moreover, for improving the project schedule accuracy this method is effective, accordingly, this method shows the dependency on each task on another. Therefore, the project manager can give priority to each task for completing the project in the scheduled time.

Disadvantages:

There are also some disadvantages found in the CPM technique. However, in the case the project needs to improve in that case CPM methods are not applied in that project. However, the CPM calculation is complex and the project manager found this method difficult to perform before starting the project (Shah, 2021). Nevertheless, this method does not show the effect of the resource limitation on the project schedule, for example, if the schedule overlaps then the budget of the project might fluctuate, which is not considered in this method.

Critical Path Method

The “Critical Path Method (CPM)” is a project management method used to define the sequence of actions that must be finished on time in order to finish a project within its planned time period. It helps in defining the critical activities and their interdependencies, allowing project managers to effectively allocate resources, estimate project periods, and manage project hazards. However, by determining the critical path, which describes the longest series of dependent actions, project managers can estimate the minimum time directed to complete the project (Andiyan et al. 2021). This information is crucial for project planning, scheduling, and developing realistic deadlines. The critical path determines activities that have zero slack or float, indicating any delay in these actions will directly impact the project's overall time. In addition, by recognising critical actions, project managers can concentrate their awareness on managing these activities effectively, providing they are completed on time to avoid project delays. The critical path method assists in comprehending the resource needs for each activity and their dependencies. It allows project managers to assign resources efficiently by determining activities that are critical and require additional help or attention to ensure timely completion.

Table 1: Project Schedule

“Total time if no delays occur”

The critical path is defined by the activities with zero total floats, which are activities A, B, C, D, G, I, and M. The total project period, without any delays, is the duration of the activities on the critical path, which is 40 weeks.

“The start and finish of individual activities”

Table 2: “Start and finish of individual activities”

“The start and finish of individual activities if no delays”

The total project period, without any delays, is the duration of the activities on the critical path, which is 40 weeks.

“Critical activities where any delays must be avoided”

“The critical activities where any delays must be avoided to prevent delaying project completion are A, B, C, D, G, I, and M”.

“Delays that can be tolerated”

The uncertainty that can be accepted for other actions without waiting for project completion is estimated by deducting the duration of the activity from the total float for that activity. For example, “for activity J, the total float is 1 week, so the delay that can be tolerated” and “for activity J without delaying project completion is 1 week”.

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