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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)

Facility Layout
ZONING OF AREAS WITHIN THE STORE

INSPIRE

EXPLORE

PURCHASE

Main Entrance

Inspire
Push Corner/Best Sellers/New Arrivals Section in first 3m of store

Explore / Engage
Clear specific themes on product display.

Explore / Engage
Explore lighting options in various settings.

Simple but clear store communications


Touch buttons for light switches

Consultancy / Purchase

Lets Plan Station for Customer Engagement

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

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 to Explore and finally Purchase all within 150 sqm

Process Flow

Inspire

Explore

Purchase (Consultancy)

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Linking Process Flow to Layout


PHILIPS
PROCESS LAYOUT PROFESSIONAL SERVICES SERVICE SHOPS

SERVICE PROCESS TYPE

ADVANTAGES

High product and mix flexibility Relatively robust in case of disruptions Ease to supervise

PHILIPS BRAND STORE PROVIDES TOTAL LIGHTING SOLUTIONS WHICH INCLUDE INTERIOR DESIGN CONSULTANCY, HOME LIGHTING DESIGNER SERVICES AND STYLE ORIENTATION /COMPATIBILITY TO HOME

DISADVANTAGES

Low utilization Can have very high inventory 500 skus LOW VOLUME HIGH VARIETY HIGH VARIATION HIGH VISIBILITY

Philips Brand Store

Operations Strategy at Philips Retail


Philips

Transformative power of lighting

Copyright 2006 John Wiley & Branded Retail Philips Way Sons, Inc.

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Philips Retail Service Concept


Philips Home Lighting Proposition:

Philips Home Lighting Retail Proposition:


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

Retail Implications

Lighting Playground
Clean, Bright, Uncluttered, Highly Interactive Being a Protagonist

Easy to explore & learn


Context, learning Fun, enjoyable, Easy to understand, Intuitive, Editorial

Experience what light can do


Transformative effect of light on spaces and moods

For your Home


Home, hot House Relevant Achievable but aspirational How to Get the Look
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Operational Implications
SERVICE = EXPERIENCE + OUTCOME
ADVANTAGES Service experience maximization The lay-out allows showing more products variation and its applications helping on the sales process (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 sociable interaction). 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 fit customer 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 but increase costs too = can I charge more for it? Extremely flexible processes may be excellent for responding to a wide range of special customer requirements but may be quite costly to maintain (R.Johnson and G.Clark, 2005).

Thank You.

References
Johnston, R. and Clark, G. (2005). Introduction to Service Operations

Management: Improving Service Delivery. 2nd ed. Harlow: Pearson Education Limited.
Slack, N., Chambers, S., Johnston, R. and Betts, A. (2009). Operations

and Process Management. 2nd ed. Harlow: Pearson Education Limited.


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