PRET A MANGER
Described by the press as having ‘revolutionized ‘revolutionized the concept of sandwich making and eating’ , Pret A Manger opened their first shop in the mid-1980s, in London. o! they have over 1"0 shops in #$, e! %or&, 'ong $ong and (o&yo. (hey say that their secret is to foc)s contin)a**y on +)a*ity not )st of their food, b)t in every aspect of their operations practice. (hey go to etraordinary *engths to avoid the chemica*s and preservatives common in most /fast food, say the company. ‘Many food retailers focus on extending the shelf life of their food, but that’s of no interest to us. We maintain our edge by selling food that simply can’t can’t be beaten for freshness. t the end of the day, we give whatever we haven’t sold sold to charity to help feed those who would otherwise go hungry. When we were !ust starting out, a big supplier tried to sell us coleslaw that lasted sixteen days. "an you imagine# $alad that lasts sixteen days% &here and then we decided 'ret would stick to wholesome fresh food ( natural stuff. We have not changed that policy.’ (he first Pret A Manger shop had
its o!n &itchen !here fresh ingredients !ere de*ivered first thing every morning, and food !as prepared thro)gho)t the day. very Pret shop since has fo**o!ed this mode*. (he team members serving on the ti**s at *)nchtime !i** have been ma&ing sand!iches in the &itchen that morning. (he company reected the idea of a h)ge centra*i2ed sand!ich factory even tho)gh it co)*d significant*y red)ce costs. Pret a*so o!n and manage a** their shops their shops direct*y so that they can ens)re consistent*y high standards in a** their shops. ‘We are determined never to forget that our hard)working people make all the difference. difference. &hey are our heart and soul. When they care, our business is sound. *f they cease to care, our business goes down the drain. *n a retail sector where high staff turnover is normal, we’re pleased to say our people are much more likely to stay around# We work hard at building great teams. We take our reward schemes and career opportunities very seriously. seriously. We don’t work nights +generally, we wear !eans, we party#’ 3)stomer feedbac& is regarded as being partic)*ar*y being partic)*ar*y important important
at Pret. amining c)stomers comments for improvement ideas is a &ey part of !ee&*y of !ee&*y management meetings, and of the dai*y team briefs team briefs in each shop. OXFAM INTERNATIONAL
4fam 5nternationa* is a confederation of 1" *i&e-minded organi2ations based aro)nd the !or*d that, together !ith partners and a**ies, !or& direct*y !ith comm)nities see&ing to ens)re that poor peop*e can improve their *ives and *ive*ihoods and have a say in decisions that affect them. 6ith an ann)a* ependit)re that eceeds #700 mi**ion, 4fam 5nternationa* foc)ses its efforts in severa* areas, inc*)ding deve*opment !or&, *ong-term programme to eradicate poverty and combat in)stice, emergency re*ief de*ivering immediate *ife-saving assistance to peop*e affected by nat)ra* disasters or conf*ict, he*ping to b)i*d their resi*ience to f)t)re disasters, campaigning and raising p)b*ic a!areness of the ca)ses of poverty, poverty, enco)raging ordinary peop*e to ta&e action for a fairer !or*d, and advocacy and research that press)res decisionma&ers to change po*icies and practices that reinforce poverty and in)stice. A** of 4fam 5nternationa*s activities activities depend on effective and professiona* operations management. :or eamp*e, 4fams net!or& of charity shops, r)n b y vo*)nteers, is a &ey so)rce of income. (he shops se** donated items and handcrafts from aro)nd the !or*d giving sma**-sca*e prod)cers fair prices, training, advice and f)nding. 7)pp*y chain management and deve*opment is )st as centra* to the r)nning of these shops as it is to the biggest commercia* chain of stores. (he operations cha**enges invo*ved in 4fams ongoing /3*ean 6ater 6ater eercise eercise are different b)t certain*y no *ess important. Aro)nd Aro)nd 80 per cent of diseases and over onethird of deaths in the deve*oping !or*d are ca)sed by contaminated !ater and 4fam has a partic)*ar epertise in providing c*ean !ater and sanitation faci*ities. (he better their coordinated efforts of identifying potentia* proects, !or&ing !ith *oca* comm)nities, providing he*p and ed)cation, and he*ping to providing civi* engineering epertise, the more effective 4fam is at f)*fi**ing its obectives. More dramatica**y, 4fam 5nternationa*s response to emergency sit)ations, providing h)manitarian h)manitarian aid !here it is needed, m)st be fast, appropriate and efficient. 6hether the disasters are nat)ra* or po*itica*, they become emergencies !hen the peop*e invo*ved can no *onger cope. 5n s)ch sit)ations, 4fam, thro)gh its net!or& of staff in *oca* offices, is ab*e to advice on !hat and !here he*p is needed. 5ndeed, *oca* teams are often ab*e to provide !arnings of impending disasters, giving more time to assess needs and coordinate a m)*ti-agency response. (he organi2ations head+)arters in 4ford in the #$ provides advice, materia*s and staff, often dep*oying emergency s)pport staff on short-term assignments. 7he*ters, b*an&ets and c*othing can be f*o!n o)t at short notice from the mergencies 6areho)se. ngineers and sanitation e+)ipment can a*so be provided, inc*)ding !ater tan&s, *atrines, hygiene &its and containers. 6hen an emergency e mergency is over, 4fam contin)es to !or& !ith the affected comm)nities comm)nities thro)gh their *oca* offices to he*p peop*e reb)i*d their *ives and *ive*ihoods. 5n an effort to improve the time*iness, effectiveness and appropriateness of its response to emergencies, 4fam recent*y adopted a more systematic s ystematic approach to eva*)ating the s)ccesses and fai*)res of its h)manitarian !or&. ;ea*-time eva*)ations, !hich see& to assess and inf*)ence emergency response programme in their ear*y stages, !ere imp*emented d)ring the response to f*oods in Mo2ambi+)e and 7o)th the earth+)a&e in Per), ')rricane :e*i in icarag)a and the conf*icts in #ganda. (hese eercises provided Asia Asia,, the
4fams h)manitarian teams !ith the opport)nity to ga)ge the effectiveness of their response, and ma&e cr)cia* ad)stments at an ear*y stage if necessary. (he eva*)ations high*ighted severa* potentia* improvements. :or eamp*e, it became evident that there !as a need to improve preparation ahead of emergencies, as !e** as the need to deve*op more effective coordination p*anning too*s. 5t !as a*so decided that adopting a common !or&ing approach !ith shared standards !o)*d improve the effectiveness of their response to emergencies. 4fam a*so emphasi2es the importance of the ro*e p*ayed by *oca* partners in emergencies. (hey are often c*oser to, and more in t)ne !ith, affected comm)nities, b)t may re+)ire additiona* s)pport and empo!erment to sca*e )p their response and comp*y !ith the internationa* h)manitarian standards. ACME WHISTLE’S
Acme 6hist*es can trace its history bac& to 180 !hen , distress !hist*es, =si*ent> dog !hist*es, nove*ty !hist*es, instr)menta* !hist*es =)sed by a** of the !or*ds top orchestras>, and many more types. /6e are a*!ays trying to improve o)r prod)cts, says 7imon, /its a b)siness of constant innovation. 7ometimes 5 thin& that after 1"0 years s)re*y there is nothing more to do, b)t !e a*!ays find some ne! feat)re to incorporate. 4f co)rse, managing the operations in a sma** company is very different to !or&ing in a *arge one. veryone has m)ch broader obs? !e cannot afford the overheads of having specia*ist peop*e in specia*i2ed ro*es. @)t this re*ative informa*ity has a *ot of advantages. 5t means that !e can maintain o)r phi*osophy of +)a*ity amongst everybody in the company, and it means that !e can react very +)ic&*y !hen the mar&et demands it. or is the companys sma** si2e any barrier to its abi*ity to innovate. /4n the contrary, says 7imon, /there is something abo)t the c)*t)re of the company that is etreme*y important in fostering innovation. @eca)se !e are sma** !e a** &no! each other and !e a** !ant to contrib)te something to the company. 5t is not )ncommon for emp*oyees to fig)re o)t ne! ideas for different types of !hist*e. 5f an idea *oo&s promising, !e !i** p)t a sma** and informa* team together to *oo& at it f)rther. 5t is not )n)s)a* for peop*e !ho have been !ith )s on*y a fe! months to start !anting to ma&e innovations. 5ts as tho)gh something happens to them !hen they !a*& thro)gh the door of the factory that enco)rages their nat)ra* inventiveness. IKEA – OPERATIONS IN PRACTICE
Love it or hate it, 5$A is the most s)ccessf)* f)rnit)re retai*er ever. 6ith B stores in "B co)ntries, it has managed to deve*op its o!n specia* !ay of se**ing f)rnit)re. (he stores *ayo)t means c)stomers often spend t!o ho)rs in the store far *onger than in riva* f)rnit)re retai*ers. 5$As phi*osophy goes bac& to the origina* b)siness, started in the 19C0s in 7!eden by 5ngvar $amprad. 'e b)i*t a sho!room on the o)ts&irts of 7toc&ho*m !here *and !as cheap and simp*y disp*ayed s)pp*iers f)rnit)re as it !o)*d be in a domestic setting. 5ncreasing sa*es soon a**o!ed 5$A to start ordering its o!n se*f-designed prod)cts from *oca* man)fact)rers. @)t it !as innovation in its operations that dramatica**y red)ced its se**ing costs. (hese inc*)ded the idea of se**ing f)rnit)re as se*f-assemb*y f*at pac&s =!hich red)ced prod)ction and transport costs> and its /sho!room!areho)se concept !hich re+)ired c)stomers to pic& the f)rnit)re )p themse*ves from the !areho)se =!hich red)ced retai*ing costs>. @oth of these operating princip*es are sti** the basis of 5$As retai* operations process today. 7tores are designed to faci*itate the smooth f*o! of c)stomers, from par&ing, moving thro)gh the store itse*f, to ordering and pic&ing )p goods. At the entrance to each store *arge notice-boards provide advice to shoppers. :or yo)ng chi*dren, there is a s)pervised chi*drens p*ay area, a sma** cinema, and a parent and baby room so parents can *eave their chi*dren in the s)pervised p*ay area for a time. Parents are reca**ed via the *o)dspea&er system if the chi*d has any prob*ems. 5$A /a**o! c)stomers to ma&e )p their minds in their o!n time b)t /information points have staff !ho can he*p. A** f)rnit)re carries a tic&et !ith a code n)mber !hich indicates its *ocation in the !areho)se. =:or *arger items c)stomers go to the information des&s for assistance.> (here is a*so an area !here sma**er items are disp*ayed, and can be pic&ed direct*y. 3)stomers then pass thro)gh the !areho)se !here they pic& )p the items vie!ed in the sho!room. :ina**y, c)stomers pay at the chec&o)ts, !here a ramped conveyor be*t moves p)rchases )p to the
chec&o)t staff. (he eit area has service points and a *oading area that a**o!s c)stomers to bring their cars from the car par& and *oad their p)rchases. @ehind the p)b*ic face of 5$As h)ge stores is a comp*e !or*d!ide net!or& of s)pp*iers, 1,"00 direct s)pp*iers, abo)t 10,000 s)b-s)pp*iers, !ho*esa*e and transport operations inc*)de B Distrib)tion 3entres. (his s)pp*y net!or& is vita**y important to 5$A. :rom p)rchasing ra! materia*s, right thro)gh to finished prod)cts arriving in its c)stomers homes, 5$A re*ies on c*ose partnerships !ith its s)pp*iers to achieve both ongoing s)pp*y efficiency and ne! prod)ct deve*opment. 'o!ever, 5$A c*ose*y contro*s a** s)pp*y and deve*opment activities from 5$As home to!n of *mh)*t in 7!eden. @)t s)ccess brings its o!n prob*ems and some c)stomers became increasing*y fr)strated !ith overcro!ding and *ong !aiting times. 5n response 5$A in the #$ *a)nched a E1C0 m programme to /design o)t the bott*enec&s. (he changes inc*)dedF G 3*ear*y mar&ed in-store short c)ts a**o!ing c)stomers !ho )st !ant to visit one area, to avoid having to go thro)gh a** the preceding areas. G press chec&o)t ti**s for c)stomers !ith a bag on*y rather than a tro**ey. G tra /he*p staff at &ey points to he*p c)stomers. G ;edesign of the car par&s, ma&ing them easier to navigate. G Dropping the ban on ta&ing tro**eys o)t to the car par&s for *oading =origina**y imp*emented to stop vehic*es being damaged>. G A ne! !areho)se system to stop pop)*ar prod)ct *ines r)nning o)t d)ring the day. G More chi*drens p*ay areas. 5$A spo&es!oman ic&i 3raddoc& saidF ‘We know people love our products but hate our shopping experience. We are being told that by customers every day, so we can’t afford not to make changes. We realized a lot of people took offence at being herded like sheep on the long route around stores. -ow if you know what you are looking for and !ust want to get in, grab it and get out, you can.’ Operations manaement is a !ita" part o# IKEA’s s$%%ess 5$A sho!s ho! important operations management is for its o!n s)ccess and the s)ccess of any type of organi2ation. 4f co)rse, 5$A )nderstands its mar&et and its c)stomers. @)t, )st as important, it &no!s that the !ay it manages the net!or& of operations that design, prod)ce and de*iver its prod)cts and services m)st be right for its mar&et. o organi2ation can s)rvive in the *ong term if it cannot s)pp*y its c)stomers effective*y. And this is essentia**y !hat operations management is abo)t designing, prod)cing and de*ivering prod)cts and services that satisfy mar&et re+)irements. :or any b)siness, it is a vita**y important activity. 3onsider )st some of the activities that 5$As operations managers are invo*ved in. G Arranging the stores *ayo)t to gives smooth and effective f*o! of c)stomers =ca**ed process design> G Designing sty*ish prod)cts that can be f*at-pac&ed efficient*y =ca**ed prod)ct design> G Ma&ing s)re that a** staff can contrib)te to the companys s)ccess =ca**ed ob design> G Locating stores of an appropriate si2e in the most effective p*ace =ca**ed s)pp*y net!or& design> G Arranging for the de*ivery of prod)cts to stores =ca**ed s)pp*y chain management> G 3oping !ith f*)ct)ations in demand =ca**ed capacity management> G Maintaining c*ean*iness and safety of storage area =ca**ed fai*)re prevention> G Avoiding r)nning o)t of prod)cts for sa*e =ca**ed inventory management> G Monitoring and enhancing +)a*ity of service to c)stomers =ca**ed +)a*ity management> G 3ontin)a**y eamining and improving operations practice =ca**ed operations improvement>. And these activities are on*y a sma** part of 5$As tota* operations management effort. @)t they do give an indication, first of ho! operations management sho)*d contrib)te to the b)sinesses s)ccess, and second, !hat !o)*d happen if 5$As operations managers fai*ed to be effective in carrying o)t any of its activities. @ad*y designed processes, inappropriate prod)cts, poor *ocations, disaffected staff, empty she*ves, or forgetting the importance of contin)a**y improving +)a*ity, co)*d a** t)rn a previo)s*y s)ccessf)* organi2ation into a fai*ing one. %et, a*tho)gh the re*ative importance of these activities !i** vary bet!een different organi2ations, operations managers in a** organi2ations !i** be ma&ing the same type of decision =even if what they act)a**y decide is different>.
