Management Leadership

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Conestoga College *

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3075

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Management

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Apr 3, 2024

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Case Study - 3 Manufacturing Leadership MGMT8671 - Section 9 Group Members: Adnan Gangerdiwala: 8831050 Ikenna Elvis Igwilo:8911174 Date Submitted: 8 th March, 2024

Location: Walmart on 2960 Kingsway Dr, in Kitchener, Ontario. Observing the clothing department near the fitting rooms. Selfie: Due to security protocols, we cannot take a selfie within the store (As per the employee). We took a selfie outside the store! 2. Value-Add Goal: Maintaining a neat, organized, and well-stocked clothing department to enhance customer experience and encourage sales. 3. Observations:  Time: 10:30 PM Initial Observations (First 5 Minutes):  An employee folds a pile of t-shirts on a nearby table, meticulously placing them in size order according to a colour gradient (dark to light).

 They then move to a rack of jeans, picking up misplaced items, checking for tears or damage, and hanging them on the correct size hanger, ensuring all zippers are fastened.  The employee scans a handheld device and checks a box of merchandise on a bottom shelf. They efficiently restock the shelf with new folded shirts from the box, ensuring all tags are facing outward.  A customer with a basket approaches the employee. The employee greets the customer with a smile and asks if they need any assistance.  The employee notices a fallen hanger on the floor and picks it up before returning to their tasks. Ongoing Observations (Next 5 Minutes):  The restocking pattern seems strategic, with the employee focusing on areas with low stock or disarray first.  The employee scans price tags on several items throughout the aisle, possibly checking for accuracy or potential markdowns.  Another customer approaches, looking for a specific colour in a particular brand of athletic wear. The employee checks their handheld device and walks the customer directly to the correct section, pointing out different options.  The employee observes a group of teenagers rummaging through a display of graphic tees. They politely approach the group and ask if they need any help folding or finding specific sizes. Final Observations (Last 5 Minutes):  A significant amount of discarded clothes accumulates near the fitting rooms. The employee gathers them into a laundry basket, occasionally stopping to answer customer questions about product availability.  The employee straightens a display of scarves, ensuring they are evenly spaced and visually appealing.  There's a constant flow of customers browsing the clothes, with some leaving items on the floor and others struggling to find specific sizes. Focus on Hiccups:  Discarded clothes near the fitting room create a cluttered look and require frequent cleaning, taking away from restocking and merchandising tasks.  The employee seems to prioritize customer service and tidying up over focusing on creating a visually appealing display throughout the department.  It's unclear if there's a designated schedule for restocking specific sections, potentially leading to uneven inventory levels across the department.

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Summarize the value added activity you observed. What actions did you see that were genuine "value adding."  Value-Added Activities (VA) are actions that directly contribute to the customer experience and overall efficiency of the merchandising process. Here's a table summarizing the VA activities observed and the estimated time spent on each: Activity Estimated Time (minutes) Folding and restocking clothes (organized by size and color) 5 Checking inventory with handheld device 2 Assisting customers with locating items 3 Straightening displays for visual appeal 1 Total VA Time 11 Summarize the non-value add activity. What are the recurring actions you saw that were not adding value. Estimate the total number of minutes of NVA over your observed time.  Non-Value-Added Activities (NVA) are actions that do not directly contribute to the customer experience or efficiency. Here's a table summarizing the NVA activities observed and the estimated time spent on each: Activity Estimated Time (minutes) Picking up discarded clothes from the floor 4 Total NVA Time 4

 In conclusion, the majority of the observed time (11 minutes out of 15) was spent on value-added activities. However, there were recurring non-value-added activities that could be addressed to improve overall efficiency. Identify 3 of your observations/problems where you would want to ask "why?..." if you were responsibly for supporting the employee shift merchandiser and the process. 1. Frequent Cleaning of Discarded Clothes: o Why?  Isn’t there a designated area for customers to discard unwanted clothes, or is the current system encouraging them to leave them on the floor?  Could signage or small bins near fitting rooms reduce the amount of discarded clothes and free up employee time for other tasks? 2. Prioritization of Tidying Over Merchandising: o Why?  Is there a specific reason the employee prioritizes tidying up after customers over creating visually appealing displays?  Is there a designated time for visual merchandising tasks, or is it left to the employee's discretion?  Could a revised schedule or additional resources be allocated to ensure both aspects of the job are addressed effectively? 3. Uneven Inventory Levels Across Sections: o Why?  Why is there no apparent schedule for restocking specific sections?  Could implementing a designated restocking plan based on sales data or inventory levels improve efficiency and product availability throughout the department? For each of these 3 observations; list 2 or 3 potential reasons "why." Observation 1: Frequent Cleaning of Discarded Clothes 1. Customer Behavior: o Why? Customers might not be aware of a designated area for unwanted clothes, leading them to simply leave them on the floor. 2. Fitting Room Design: o Why? The fitting rooms might be cramped or lack space for discarded clothes, prompting customers to leave them outside. Observation 2: Prioritization of Tidying Over Merchandising: 1. Work Allocation: o Why? The employee's tasks might be prioritized towards customer service and tidying up, leaving limited time for dedicated visual merchandising.

2. Lack of Resources: o Why? There might be a lack of additional staff or tools to efficiently manage both restocking and creating displays. Observation 3: Uneven Inventory Levels Across Sections: 1. Data Availability: o Why? Real-time inventory data for specific sections might not be readily available to the employee for restocking decisions. 2. Restocking Strategy: o Why? There might be no designated plan for restocking specific sections, leading to a reactive approach based on empty shelves. Make a reasonable and specific suggestion of how each of 3 chosen problems could be reduced, eliminated, or improved. Be as specific as possible. Try not to add cost to the process - for example, adding another person is not generally an acceptable solution. Consider relocating items, improving procedures, introducing Poke Yoke, 5S, etc. Based on the observations made using the Go See principle, here are some specific and cost-effective solutions to address the three identified problems: Problem 1: Frequent Cleaning of Discarded Clothes Solution: Leverage 5S & Implement Signage: The 5S methodology focuses on Sort, Set In Order, Shine, Standardize, and Sustain. Here's how it can be applied: 1. Sort: During a designated period (e.g., first hour of the shift), the employee could separate unwanted clothes from those needing to be returned to the shelf. 2. Set In Order: A small designated bin for unwanted clothes could be placed near each fitting room entrance. 3. Shine: The designated bin should be emptied regularly throughout the day to maintain a clean and organized look. 4. Standardize: A clear and consistent visual cue, like a brightly colored bin or a sign with the text "Unwanted Clothes" above it, would encourage proper disposal. 5. Sustain: Regular audits can ensure the bins remain empty and the signage is clear and visible. This approach addresses the root cause by providing a designated space for unwanted clothes, reducing the need for constant cleaning from the floor.

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Problem 2: Prioritization of Tidying Over Merchandising Solution: Implement Timeboxing & Visual Merchandising Kits: Timeboxing involves allocating specific time slots for various tasks. Here's how it can be applied:  The first half of the shift could be dedicated to restocking shelves and tidying up after the previous day's sales.  The second half could focus on creating visually appealing displays in specific sections that rotate on a weekly basis. Visual Merchandising Kits could be pre-designed using readily available materials like cardboard boxes or wire hangers. These kits could include layouts and instructions for creating specific displays, saving the employee time and effort. By utilizing timeboxing and providing visual merchandising kits, the employee can focus on creating a visually appealing department without neglecting restocking and customer service needs. Problem 3: Uneven Inventory Levels Across Sections Solution: Implement a Kanban System & Utilize Existing Technology: Kanban is a visual inventory management system. Here's a simple application:  Colored cards could be placed on each shelf section, indicating a restocking threshold (e.g., red card for "low stock").  Employees restocking shelves would be responsible for checking these cards and refilling sections that reach the threshold. The existing handheld device used for checking inventory could be further utilized. By adding a feature that displays real-time section-specific inventory levels, the employee could make informed restocking decisions without relying solely on empty shelves. This approach leverages the existing technology and introduces a simple visual system to ensure a more balanced distribution of stock across the clothing department. References:  Hencic, D. (2014). Go And See - Identifying Waste and NVA [PowerPoint slides]. eConestoga.

 What is a Gemba walk and what are its benefits? - Gemba-Walk. (2020, September 7). Gemba-Walk - Tournée de Plancher Gemba Walk Numérique. https://gemba-walk.com/en/blog/article/what-is-a-gemba-walk/  5S Lean & 5S Principles in the Workplace | SafetyCulture. (2019, December 18). SafetyCulture. https://safetyculture.com/topics/5s-lean/

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