Neeran Maharaj

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

OPERATIONAL MANAGEMENT ASSIGNMENT 01

NR MAHARAJ

Student No : 117098

10 October 2011

TABLE OF CONTENTS

1.0 Executive Summary 1

2.0 Design of Goods 1

3.0 Process and Capacity Design 4

4.0 Location Selection 6

5.0 Layout Design 10

6.0 Supply Chain Management 12

7.0 Inventory Management 14

8.0 Scheduling 17

9.0 Conclusion and Recommendations 20

10.0 References 21

List of Annexures

Annexure A: Hierarchical Framework (Han et al, 2001:800) 25

Annexure B: Continuum of mass production and mass customization (Pine, 1993 cited in Radder & Louw, 1999:40) 26

Annexure C: The CIMple Composite model (Forrester, Tang, Hawksley, 1995:26) 27

Annexure D: Summary of major criteria and sub-factors affecting international location decisions (MacCarthy & Atthirawong, 2003:797) 28

Annexure E : Framework for Design of Warehouse Design (Hassan, 2002) 29

Executive Summary

The clothing industry is an interesting case from a design point of view, as apparel is subject to changes more than any other consumer good. Clothing products have a short shelf-life, their demand is difficult to forecast, there is a high level of impulse purchase, and strong value chain interdependence. Zara has succeeded, in the utilisation of technology, vertical integration, just-in-time manufacturing, innovative design process and information/data utilisation to mention a few, in gaining market share and completive advantage over GAP.

Zara’s strategy requires the generation of a great deal of product variety throughout the year. The global apparel chain had been characterized as a prototypical example of a buyer-driven global chain, in which profits derived from “unique combinations of high-value research, design, sales, marketing, and financial services that allow retailers, branded marketers, and branded manufacturers to act as strategic brokers in linking...