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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
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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
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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/