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Primark. The company I have chosen to look at is Primark, in this report I shall be looking into the operations management. Followed by the inputs, transformations and outputs to the company.

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PRIMARK Contents Page Title Page Page N0 Contents page 1.0 Introduction 2 2.0 Operations Management 2 2.1 Primark 3 3.0 Managing Process 3 3.1 Inputs 3 3.2 Transformations 4 3.3 Outputs 4 4.0 Capacity Management 5 4.1 Forecasting Demand 6 4.2 Utilisation of Resources 7 4.3 Yield Management 7 4.4 Type of Demand 8 4.5 Human Resource Management 8 5.0 Improvement 10 6.0 Conclusion 10 7.0 Bibliography 11 8.0 Appendix 12 OPERATIONS MANAGEMENT AND DECISION MAKING 1.0 INTRODUCTION The company I have chosen to look at is Primark, in this report I shall be looking into the operations management. Followed by the inputs, transformations and outputs to the company. Then discussing capacity management in terms of what it means and how it affects Primark's organisation. In this report I shall expect to analyse the operations management according to Primark business, and additionally how it could possibly improve. As an employee of Primark, I am aware of how it operates internally, and hope to express this information into my report. My main sources of information regarding Primark, is primary data, as I was able to have a detailed discussion with the store manager of Primark, Mr Costello. Furthermore, I have also obtained secondary information from, the Internet and books. 2.0 OPERATIONS MANAGEMENT Finance, marketing and operations are three major functions of business, in this report I will only be focusing on the operations management aspects of my chosen business Primark. Operations management helps us understand the flow of production, by breaking down the stages, and hence identifies any causes of concern, anomalies or areas of improvement. According to Schonberger & Knod, there is no clear definition of OM, however if you break down the word, you can begin to understand what OM means. Operation can mean a number of things, but I perceive operations as the breaking down of functions. Whereas, management is "a social process, which consists of planning, control, coordination and motivation," as mentioned in Cole G A (2000). ...read more.


Nevertheless, the store still has room for expansion. At the moment, the store operates on two levels. There is also a third floor (warehouse) as well as a lower floor (TK MAX), which they could possibly expand into. If need be the manager of the store, would prefer, the space of the lower ground floor, as there is already easy access to the floor. Having said this though, this is only an idea they could pursue if needed. 4.1 FORECASTING DEMAND Primark is able to forecast demand based on past experiences and also, take into account issues, which may fluctuate demand such as competition in the market, weather, cost, and supply. There are several steps, which may influence their approach to forecasting. Firstly, includes measuring aggregate demand and capacity, secondly identifying the alternatives and capacity plan, thirdly and finally choosing the most appropriate capacity plan base on past events as discussed in Slack N, Chambers S, Johnston R. (2004). Primark has incorporated this strategy by employing specialist, which look at the future, market trends, of the following seasons, and predict next year's stock in advance. They base this looking at fashion trends and past events, furthermore, they provide a high stock range and therefore there are many alternatives to people's tastes. This stock comes from across the globe, and is purchased based on the best price concept and delivered in mass to keep costs down. The stock is delivered into the main warehouse in Reading, where it then can be distributed to the stores by means of lorries and trucks. In terms of capacity, a store can order which lines it wants. Whereas companies such as Next may order a mass amount of particular stock and have high levels of unsold items. All of Primark's stock is listed on a database, which records, how much stock there is in the warehouse and shop floor, the cost, as well as sales of stock. ...read more.


Furthermore, employees are always will to do over time and hence, they never short of employees. 5.0 IMPROVEMENTS In my opinion Primark's operations is working perfectly fine, if I could suggested any improvement to the company, it would address the issue of turnover. Primark is a low skilled job, where skills can be easily transferred onto the next employee. However trying to maintain staff by keeping up moral, would keep recruitment and selection cost down, and therefore provide money for other improvements. In the possible future, the could look into developing by expanding into a e-retailing developing a website, increasing the range of consumers across the world. In addition to this, they could also look into catalogues, which would also broaden their scope of clients. 6.0 CONCLUSION As a result of this report I have established that Operations Management is a set of activities, creating, implementing and improving. OM is a vital ingredient to all businesses without it; companies would be less efficient, operations looks at the inputs transformations and outputs, over a time scale. Analysing the outcomes through feedback, there able to plan for future short and long-term plans. It helps to Implement support and drive strategic decision. Looking at Primark you can clearly see how operations can be connected to other departments. Primark continuously thrives on improvement, and innovation, it highly believes in forecasting as you can clearly see in their stores when looking at the latest fashion trends. Following demand help them remain competitive in such a highly competitive market and the cost advantage of the products gives it that extra "value added" quality that consumers value. It can be concluded that after assessing Primark's capacity management, it obvious to me that they have spent time in looking and developing their stores. There innovative approach to managing capacity has lead to a higher efficiency of the company, which is the reasoning behind why Primark's success. 7. ...read more.

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4 star(s)

This essay improves as it goes on. Towards the end the writer is really getting into well applied detail on how Primark operate. It starts off poorly with many sweeping statements and irrelevancies.

Marked by teacher Dennis Salter 01/05/2013

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