Home Retail Group is the UK's leading home and standard merchandise dealer with sales of over £6bn in the last financial 12 months. They sell products under two distinctive and complementary brands - Argos and Homebase, with large customer bases over the UK and Ireland. Between them, their retail brands have more than 60 years of market heritage and consumer awareness. Argos was founded in 1973 and Homebase in 1981. They have been shaping modern retailing since. Until September 2006 the two operations acquired collectively been known within GUS as Argos Retail Group, but a month ahead of the split up of GUS the name was modified to Home Retail Group
Argos, the UK's major general merchandise merchant, comes with an unrivalled blend of choice, value and convenience to meet customer needs. It provides more than 19, 000 basic goods products for the house, which are lay out in its twice-yearly 1, 800 page catalogue which reaches the heart of its proposition. They serve more than hundred thirty million customers per season through its stores and take nearly six million customer purchases online or higher the telephone. And, normally, seventeen million UK households, roughly two-thirds of the populace, have a current Argos catalogue at home anytime. Its scale, supply chain and operating model efficiencies continue steadily to deliver excellent value for customers. As well as the integration of stores with website and cell phone buying, as well as the greatest home delivery procedure, make the Argos shopping experience children favourite for convenience.
Homebase is the UK's second largest home improvement merchant, with a customer offer that's differentiated from the competition and is regarded for choice, style and customer support over the wider home advancement market. It offers around 350 large out-of-town stores, which sell over 35, 000 products across a broad selection of home development products, services and traditional DIY items. It targets a wide range of customers with an inspirational collection of home merchandise and offers the convenience of home delivery for bulky, high-value items. Homebase assists around sixty million customers per 12 months through its stores. However, using its product markets more subjected to consumer discretionary spending pressures and the housing market downturn, it is undertaking additional work to ensure it is best-placed for a return to longer-term market progress.
The Argos brand is synonymous with choice, value and convenience and their inside techniques ensure that Argos is well placed to continue to provide its customer proposition. Investment has been designed to extend the choice available at all price levels, particularly the Argos Value range and non-catalogue lines on the website. Homebase has taken care of immediately customers' needs by developing further runs centred on environmental consciousness, as well as widening its initiatives in e-commerce development. They may have many mitigating activities such as clear communication of choice and value-led product offering to customers, driving a vehicle market share in targeted product categories, centered and relevant customer service training in Argos and Homebase, Store format development and technologies such as Check & Reserve and Quick Pay Kiosks, sustained evolution of the broader home enhancement position at Homebase and Regular review of pension trustee activities and ideas to mitigate any account deficit.
Argos and Homebase are backed by an in-house financial services business, which provides a range of credit offers to customers. Home Retail Group Financial Services is the largest store card company in the united kingdom, with over one million dynamic store credit card customers.
The main aim of lean businesses is to analyse the current production process accompanied by the companies and enhance the efficiency of the procedure to an increased competence level. The main principle of low fat manufacturing is to lessen waste in an operation, such as long lead times, defects and material waste material. In order to visually screen where waste materials occurs in the process, a value stream map (VSM) is drawn. VSMs can be used to assess current developing functions as well as create ideal, future talk about processes. With the making field escalating and growing more widely across the globe, it's important for companies to adjust to the increasing and evolving business strategies. Management of developing sectors consistently concentrating on the lean operation activities. They are mainly determined to reduce the waste time and increase the value added concept to accomplish their goals. This technique is very much indeed useful to identify every procedure of the system and help the management to gratify the customer demands and increases the productive of the vegetable with lesser time frame.
Main goal of the Low fat is to lessen the waste. Trim helps the organisation to manufacture the products in correct ways, to lessen the cost, to lessen the customer's lead time, to reduce the waste within an optimum timeframe, to reduce a chance to start new product, to increase market talk about and also to increase product diversity.
Lean Considering - Principles
Specify value: value can only just be identified by the ultimate customer.
Identify the worthiness stream: all the distinct tasks necessary to bring a product to delivery.
Flow: eliminate waste to create systems to allow value creating steps to move.
Pull the product: only make what the customer requires.
Perfection: continue steadily to look forwards and eliminate misuse.
From the theory the first think is to get the focus on customer who planning on their product so that they must be specific in their process and then they must find the best way to attain their goal. The process which will never add value must be removed to be able to be efficient. Across the circulation of process there will be several losses that must definitely be reduced. Over development must be avoided in order to minimize the price tag on inventories. Depends upon the necessity of the client only the development must have to vary. When the process keep continuing the ultimate think is the efficiency which will give added value to the production process. Similarly perfection is only slice out of waste. Lean implementation is mainly focused on getting the right things, to the right place, at the right time, in the right number and minimizing waste.
Homebase has applied SAP for Retail and the mySAP Business Portal with a primary concentrate on integrating and increasing its supply string management, merchandise management, inventory management and order operations solutions. Homebase decided on SAP because of its ability to assimilate the company's source chain and realign its disparate complex infrastructure. As retail businesses increasingly develop their business models to add multiple channels of customer contact, they'll require the flexibility offered by solutions such as SAP for Retail to manage and administer all the information in one central data source.
Traditional Press system
In olden day most of the business uses the push system which is producing the large product without knowing the demand of the product. Without knowing the requirement of the merchandise they will produce the product and finally they will discover a way to push the merchandise in the customer. Until that the produced product will be stagnated as a stoke. Finally a large amount money will be lost for selling the product through increasing the advertising offers, discount etc. By this also there is no assurance of the product to be sold. This method will raise the inventories products and stokes. Likewise homebased also produced a whole lot of product in olden method and keep it as a stoke and they found that there is a huge damage in maintaining the strokes so from that they intend to study the customers demand and from that they began to produce it. This they attain through online purchasing and entire retail advertising.
Modern Yank System
Now a times most of this company following the draw system which is producing the merchandise depends upon the customers demand. Here the manufacturer will produce the product only there is a bulk need often they won't produce it. By this method they can able to minimize the overproduction and decrease the waste in expense and time. Homebase companies now third, model in creation, when the demands come they will produce the product. Depends after the vendors need they'll produce the merchandise. This method offers them an extremely high flexibility no waste material. Customers requirements are mailnly is based upon the making system of the organisation and home-based understand it's the way to obtain market dynamics.
Tools and Techniques of Lean Manufacturing
Several methods are used for bettering the organizational process. For this different methods are used which they called as tools for the work. There are many techniques used for the improvement of the creation. They are described below,
Value Mapping: Initially of slim Value stream mapping is normal tool which ultimately shows the process of material move and explain the merchandise or service make its way from first to keep going of value stream. A value stream map is principally concern with the near future development and the method to minimize or purge the non value added activities, circuit time and cost.
The 5S System- A Key Prerequisite to Lean
Set in Order
The 5S system can be designed as a good housekeeping practise. It'll definitely have a high impact on the following assemblage. (Tapping. D, 2002, P. 45)
Reduced Lead Time
As per the proposals the full total lead time of homebased plc is to be reduced. Putting into action the 5S activities mentioned above the lead time of can be reduced.
Reduced Changeover Times
As per the future ideas in Homebase the changeover times of most processes must be reduced to a productive time. The implementation of 5S activities can reduce the waste like extra action, and can help achieve the aforementioned.
Elimination of Accidents
Implementation of 5S can reduce the damages in the shop floor.
Poka-yoke is otherwise known as fault proofing concept. Quite view of this concept is to avoid the process whenever a defect occurs, and describe the cause as well as prevent it from reoccurring and also provides source of the defect. Alternatively 'on-line' adjustment can be produced to the merchandise or process, which allows the continuous process improvement. As production whole lot sizes are constantly reduced which results in defect free parts. This technique avoids the defects to occur in developing work stream. Although this idea developed for production systems (Shingo, . S. 1986, Zero Quality Control)
SMED Solitary Minute Exchange of Dies, an idea by Shigeo Shingo at Toyota, goal is to reduce all stock setups by 59/60ths. In other words, a setup of one hour should take one minute. The adoption of SMED to the traditional mass creation system is a tough job. This method also used to reduce waste the main objective is to reduce the changeover time. Two elements for setup time is Inside (machine need to avoid) and external (machine need not to stop). Improvement can be made in simplified methods: jigs, clamps, and quick-release. (Shingo, . S. 1986, No Quality Control)
Kan Ban: Kan Ban is otherwise defined as both bin system. It is material control system which only demands materials when required. Inventories are not maintained up at lines side or in part of done goods.
Central Activities symbolizes the cost of central corporate and business functions and the investment costs of new development opportunities. Corporate functions charges for the entire year were about ten percentages lower reflecting ongoing cost management, while the investment costs of new development opportunities were also at a lesser level than the last year.
A review of the trial to develop the Argos format in India was completed in January 2009. A decision to discontinue the trial following initial two yr development period was used mutually by Home Retail Group and its Indian partners Customers' Stop and Hyper CITY. The trial had not met the planned performance levels to support the investment required in today's Indian economic climate. The retail operations are being wound down at little cost to Home Retail Group. At some point in the future, the Indian retail market may still present a nice-looking long-term growth chance for the Argos multi-channel model.
Kaizen (Constant Improvement):
Kaizen is a Japanese term that is normally referred to as ongoing improvement of a system. It is based on the product quality, technology, operations, culture, productivity, basic safety, and leadership. In a lean environment, Kaizen is dependant on making small changes on a regular basis. The deployment of constant improvement effort with Kaizen can be coordinated by using a PDCA (plan, do, check, and act) routine.
Simultaneous development and constant improvement steps that:
Design the product right the first time.
Use ongoing improvement processes to recognize the non-value-added problems.
Drive dedication to getting rid of problems (controlling them is not enough).
Advocate just-in-time material control systems.
Promote continuous improvement throughout the supply chain.
Leverage the knowledge of the organization with the data bases of suppliers and customers.
Continually train and develop highly skilled workers.
Use scoreboards or measurement systems to screen progress
As Homebase's business evolves and expands, they would like to provide their employees with the best technology resources to provide their customers. Technology reaches the heart of Homebase's drive to increase efficiencies in the supply chain and in customer service. The SAP software is empowering Homebase to have this drive forward, in addition to providing more extensive functionality to our personnel and providing them with presence across the complete supply chain.
Homebase made it a priority in this ultra-competitive market to carefully connect the store to the needs of the clients and manage stocks and options through the source chain. Homebase turned to SAP to meet this concern.
(Sourcing and offer Chain)
They act ethically and with integrity when sourcing products and coping using their suppliers. This year they may have stepped up their audit programmed significantly and have met their goal of ensuring that, over the last two years, hundred percentage of their direct source factories and fifty ratio of their direct import factories have been audited - a complete of eight fifty six factories.
The Seven Deadly Wastes
Before heading further analyse the current state it is important to know what are the misuse we have to identify in the process over time seven deadly waste materials have recognized as
Waste of over producing means producing goods /components that aren't require immediately for sale or for next downstream process. Waiting means idling of operators between operations this may be due inappropriate housekeeping practise bad arranging and unbalanced line etc. The throw away of move occurs when materials is moved pointless, this usually happens when the design of the manufacturer is poor. Next waste products is the misuse of over handling this means to do more to a product than it's important. This is the most difficult kind of waste to identify and eliminate from the procedure line. A good example of this is inspection which is obviously confusion whether we ought to eliminate it or not. Another important waste material is the waste material in form of excessive inventory which could be any form of uncooked material, work in progress and done goods. Next is the waste products of action any motions that not add valuing to work is considered under. This is due to lacking tools work instructions etc. Any moment when a employee stretches, bends or twists, it is a waste of movement. Wastes of flaws are simply just scrap or rework of any sort. This could be due lack of operator training, machine tuning etc.
They have joined up with the Provider Ethical Data Exchange (Sedex) that allows them to talk about moral data with global suppliers and also other businesses, enabling those to work together to accomplish ongoing improvement.
They have employed separately with decided on groups of suppliers to determine and apply their policies on timber sourcing, peat, quarried materials, jewellery and chemicals. For example, their Group policy is to source timber and wood-based products from confirmed, known and legal, non-controversial forest sources. In 2008, eighty one percentage of timber established products are either Forest Stewardship Council (FSC) qualified (35%) or from other authorized or known and legal sources (46%).
They are participants of the Responsible Jewellery Council. This season they have centered on stimulating their jewellery suppliers to become listed on - therefore influencing techniques further the supply chain.
They have significantly increased the volume of catalogue newspaper which is either recycled or certified. Across all magazines, this total has already reached 67%, of which 19% is recycled. By making recognised recognition a pre-requisite of resource in 2009/10, they are simply comfortable that by the end of the year they have achieved either completely authorized or recycled content for any magazines, including, for the very first time, the main UK catalogue. All their paper publications are hundred ratio recyclable.
Their product and supply chain group satisfies quarterly to concentrate on sourcing from a cultural, honest and environmental perspective. This group studies into the misuse, energy, products and supply chain management group, which is chaired by the Group commercial director.
The Group has achieved a good final result in a challenging calendar year, provided by their appropriate approach on an functional, financial and tactical basis. In the years ahead, they will be increasing their investment in the firms, and given the Group's strong cash era, they will also be going back capital to our shareholders by way of a share buy-back programme.
Argos and Homebase have distinctive brand appeal and clear customer propositions. They both gain significant leverage from a distributed infrastructure, providing cost efficiency and multiple programs to advertise. Their market leading size gives them tremendous sourcing and supply chain advantages, permitting them to offer their customers affordability across a broad selection of products.
They continue making an investment to extend their customer reach and also to develop new product runs and services that meet changing customer requirements. And in these specifically challenging financial times, their strong financing position makes them particularly well located to come through the pattern for significant longer-term profit.
They help their customers to be dependable consumers giving them relevant information and alternatives. Their customers assess them primarily on the product range, shopping experience and value proposition. They offer their customers clear information and products that will assist those to make responsible alternatives. Customers have responded particularly well to products which help them to conserve their resources and for that reason save money. This includes insulating their homes, using more energy-efficient electric powered, growing their own produce and even mending their clothes. However they also have an expectation that they can do the right thing on their behalf according of interpersonal and environmental issues.
Homebase do regular research which is dedicated to understanding and responding to customers' views. This includes mystery shopper visits, exit studies and customer listening teams. One key customer satisfaction solution for Argos is 'trustworthiness' (based on choice, value and convenience) and this year seventy five percentage of customers associated Argos with this information (vs 76% last year). For Homebase an online survey across 10 product categories every month measures customer satisfaction and the average score for the entire year was 77% (vs 74% this past year).
The efficiency benefits they may have achieved as a result of their CR activities are assisting to keep costs only possible across the business.
In their Financial Services business, they remain committed to adhering to their responsible loaning insurance policy, and continue their concentrate on dealing with their customers reasonably, including refining the tools they use to evaluate this. Their Credit Union Colleges project provides them a thrilling possibility to support the introduction of financial capability between young people.
The Group experienced 33, 966 normal shareholders at 28 February 2009, comprising a mix of corporations and individuals.
Home Retail Group, as the UK's leading home and basic merchandise store will continue steadily to demonstrate plainly its competitive advantage and its strong budget.
Product Development Process
New product development process (PDP) is the process by which a new product is launched in to the market which involves its complete development from its design to advertise analysis. The techniques involved in product development process are idea technology, product design, executive, general market trends and market examination. Usually new product development process is the first stage in making and commercializing new products within the overall strategic process of product life cycle management used to keep its market share.
Lean in Product Development
Applying lean in product development process requires optimizing the progress of understanding of the product, its customer and its own manufacturing process. The process of expanding process is the integration of knowledge progress and move. Many companies like Toyota and others have developed a product development process that maximizes the knowledge expansion at reduced lead-times. Slim product development contain a lot of linked techniques and tools like supplier participation, cross-functional teams, concurrent anatomist, integration of varied functional aspects of each project, the utilization of any heavyweight team structure, and proper management of every development job. But a business cannot simply achieve trim product development by putting into action a few of these techniques. An effective move toward slim product development needs getting close to these linked techniques as components of a coherent whole A capable product development process is way better equipped to take care of redirection and interrupts from its market, customer, company and technical issues. It is important for each company to observe how speedy cycles of learning with concurrent development can form a product with greater versatility and market potential while lowering risk. Every company has to apply this knowledge of product and process. Making use of slim techniques like value stream mapping in the merchandise development process identifies the waste in the process and create lean product development value stream. This value stream mapping specifically deals with complexities natural in product development process. This allows easy mapping of flow of knowledge as it goes through impartial work streams. It can track the improvement of design that resides in multiple locations concurrently. It can take knowledge work and map jobs over long lead times. Because of these complexities value stream mapping is a more powerful tool in product development process than it has been in making. (http://www. design-for-lean. com/leanproddevel. html )
Application of Trim in Product Development Cycle
The trim initiatives were at first applied to processing the creation shop floor aspect rather than to planning. But if we can drive the low fat concepts to product development process it is coming to development planning and comes to product design. When lean is applied to product development process the benefits are more when compared to manufacturing shop floor. For instance a blunder in design can lead to more reduction than we make a blunder in developing environment. This is because when there is a blunder in design and if it's manufactured consistently it can make constant loss to the company. . The further up the product lifecycle, the bigger the huge benefits you get. So there is no wonder that companies are looking to have a lean step of progress that is into product development. But product development differs from supply string and development process and both requires standardized work this does not happen in product development process. The product development process goes in hand with the merchandise life cycle management it is because product - development, slim requires data management. This implies understanding of data is vital to get an improved deal with on data, to make sure it is the right data etc. Therefore we can web page link the product cycle management to IT system for taking care of data to a IT system to help control the procedures that are sitting on top of those data. (http://www3. interscience. wiley. com/journal/119217128/abstract?CRETRY=1&SRETRY=0 )
Product Development as a Lean System
Is the new product part of an existing trim family or could it be a new lean product family? And if it's a preexisting product does it needs new value channels?
Does the prevailing value streams have to be altered, divided or modified?
Does the product requires new tools and has quick changeovers is taken cared within the tooling selection or design process?
If new suppliers are needed? Are they experienced for slim deliveries?
Is Pokayoke or oversight proofing considered cared whenever we can in the product development process for upstreaming processing processes?
A company wanting to implement trim initiatives in their product development processes should ask these questions. When lean is applied properly in the factory the factory talks to u its self evident when there is a problem and in product development also we are in need of the same.
(http://www3. interscience. wiley. com/journal/119217128/abstract?CRETRY=1&SRETRY=0 )
System has to identify product development stages, milestones and deliverables in forms that accommodate the many complications of the business enterprise. Processes that are template motivated becomes the working version of a new product development program are essential to both standardization and output.
System must have the ability to see the progress and position of product programs as they travel through product development process. Clear aesthetic monitoring and measurements are needed in eliminating waste material as a consequence to misinformation and duplicated responsibilities.
System must have the capability to gather, store, sort, and easily retrievable product information in a thorough context.
Ability to System must have the ability to smoothly alter the business operations and information human relationships to quickly adjust to business conditions.
Web allows easy communication, collaboration and coordination among the list of related systems with no limitations in comparison with existing systems.
Conclusion to Slim Product Development Process
If trim product development is integrated it definitely claims to increase the competitive position of the company. If trim is practised and put in place properly it offers to provide faster product development with fewer anatomist hours, improved manufacturability of products, higher quality products, fewer production start-up problems, and faster time to advertise. And definitely it will win the marketplace success.
Issues Connected with Lean
Employee Related Issues
Response of men and women changes when we try to implement slim in the organization. Some may try withstand it credited reasons like operator balancing and takt time etc. Therefore subsequent training on low fat both paid and unpaid should be provided to all employees. People resisting the change should be called separately and talked about the value of lean.
Management commitment is vital in execution of lean. ongoing improvement in improving lean methods is the organisations key toll in seeking its strategic aim. The senior management staff must have a good notion about lean and its own benefits.
Supplier Related Issues
Supplier development in association with lean guidelines is key factor in the successful execution of lean practises. When the supply string is poor in growing suppliers it will surely have an impact on the lean execution and delivery commitments.
Lean software development is a translation of Low fat manufacturing and Lean IT rules and procedures to the program development domain. Designed from the Toyota Development System, a pro-lean subculture is growing from within the Agile community. The problems of the software development entire world are accountable for almost all of the task failures that force managements worldwide to put more rigid operations in place to ensure compliance. More stringent processes at each stage are making the complete process a "Concrete-Life jacket". By using Lean Production/Manufacturing ideas not only quality concerns and other issues can be fixed, but also a continuing improvement routine can be built-in to the process. This assists in improving the quality of the software solutions/products whenever a new software solution/product is built.
The problem with the conventional software development methodology is based on the assumption that customer requirements are static and can be identified by way of a predetermined system. Because requirements do change, and change frequently, throughout the life span of all systems, they can not be adequately fulfilled by a rigid design. "Do It Right" has also been misinterpreted as "don't allow changes". In case the changes aren't allowed customers are not satisfied. In case the changes are allowed the company will have problems in delivering the program in conformity with the job base collection.
At large the Software development firms still follow the traditional "control and command line" style in decision-making concerning the projects. Every time a decision has to be made it must come completely from the top of the task organization structure. This method actually increases the lead-time and makes the whole process rigid and gradual.
Holding the task scope to just what was envisioned at the beginning of a project offers little value to the user whose world is changing. Actually, it imparts stress and paralyzes decision-making, guaranteeing only that the ultimate system will be partly outdated by enough time it's delivered. Controlling to a range that's no longer valid wastes time and space, necessitating inefficient concern lists, extensive trade-off discussions and multiple system fixes.
Most of the product quality issues in the software components are also as a result of linearity in the development process that does not permit the iterations and quality bank checks to occur prior to the components move to the next level in the development circuit. Therefore the development progresses even there are a few quality issues ' Insects'.
The lean making principles may also be applied to the program development process to solve the issues and also to increase the process and obtain greater results.
Lean Software Practices can be utilized as a construction, or a guide to address the majority of the problems of software development world. The procedures includes seeing waste materials, Value streaming mapping, set-based development, take systems, queuing theory, motivation and measurements.
A basic theory of Lean Development is to operate a vehicle decisions down to the cheapest possible level, delegating decision-making tools and power to the people "on to the floor. " Often when software development environments under-perform, the instinctive response is to impose more rigid processes, specifying in greater detail how people must do their jobs. Slim Production concepts suggest the opposite approach. Whenever there are problems in production, a team of outside the house experts is not submitted to document in greater detail how the process should be run. Instead, people on the manufacturing floor are given tools to evaluate and enhance their own areas. They work in collaborative teams with the charter to improve their own operations and the links to close by processes that they may be suppliers or customers. Their supervisors are trained in methods of building and encouraging work teams to solve their own problems.
Lean development similarly gives priority to the people and collaborating clubs over paperwork and processes. It focuses on methods of creating and encouraging teams to address and solve their own problems, recognizing that the folks doing the work must determine the details.
In slim software development, the theory is to maximize the flow of information and delivered value. In slim production, Maximizing flow does not mean automation. Instead this means limiting what has to be transferred, and moving that as few times as is possible on the shortest distance with the widest communication bandwidth.
The simple tenets of Lean Production and Low fat thinking have helped bring dramatic advancements in an array of industries. If put on software development process as "Lean Software development", these methods can make finest quality, most reasonably priced, shortest lead-time software development possible.
The lean production is a good metaphor for software development, if it's applied commensurate with the underlying nature of lean thinking.
Organizations have made huge investment funds in IT infrastructure and are constantly spending on maintenance, improvements and related administration and management. Lean IT Transformation is an strategy for creating new cost-effective, agile and versatile IT service models by moving over from company-owned IT hardware, software and services to per-use based models. It leverages the latest fads in cloud processing technology and next-generation SaaS business models. This process will help organizations to significantly reduce total cost of possession, help achieve desired business agility and promise quality-of-service through new IT service models.
Lean It's the extension of slim manufacturing and lean services key points to the development and management of it (IT) products and services. Its central matter, applied in the context of computer, is the eradication of misuse, where waste material is work that adds no value to a product or service. Low fat IT poses significant obstacles for practitioners while nurturing the promises of no less significant benefits. And whereas Lean IT initiatives can be limited in range and deliver results quickly, employing Lean IT is a continuing and long-term process that may take years before low fat principles become intrinsic to a organization's culture. .
Lean IT Change is an attempt to resolve the problems cost-effectively by creating new IT service models and transitioning from company-owned IT hardware, software and services to per-use centered models. It focuses on minimizing the IT infrastructure and related liabilities to lessen total cost of ownership. It targets changes in IT services and repayment models to achieve desired business agility and flexibility without any software, hardware and seller lock-in. It also focuses on attaining assured quality-of-services from various service providers. All these topics are understood by leveraging latest styles in cloud computing technology and next technology SaaS IT service models.
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