Wegmans: Operations Management

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CONTENTS

ABSTRACT
INTRODUCTION TO WEGMANS AND OPERATION MANAGEMENT
COMPETITIVENESS
FORECASTING
PRODUCT AND SERVICE DESIGN
PROCESS SELECTIONS AND FACILITY LAYOUT
MANAGEMENT OF QUALITY/ QUALITY CONTROL
AGGREGATE PLANNING AND MASTER SCHEDULING
MRP AND ERP
INVENTORY MANAGEMENT
JIT AND LEAN OPERATIONS
SUPPLY CHAIN MANAGEMENT
CONCLUSION
REFERENCES

Abstract: Wegmans is a dominate presence in the supermarket industry on the east coast. There are many attributes that Wegmans prides itself on to have earned a place on the Top 75 Supermarkets Based on Sales Volume, Largest Private Companies in the U.S., and Fortune’s 100 Best Companies to Work For lists. The success is due greatly in part to the company’s operations management. Most, if not all aspects are near flawless, and for those areas that need improvement Wegmans is hard at work. Many of the theories and topics covered in OM331 can be seen in the daily practice of the Wegmans supermarkets. Introduction to Wegmans and operations management Operations management is the management of systems or processes that create goods and/or provide services. What better way to apply the concepts learned this semester then to analyze one of the stronger companies in the New York area that attempts to cater to both the goods and the service needs of the consumer? Wegmans, first established in 1916 by the Wegmans brothers in Rochester, NY under the name of Rochester Fruit & Vegetable has since then boomed into a popular privately held supermarket that does an exquisite job of catering to the needs of the consumer. Wegmans has consistently updated its image and technology through the ages to stay on top of the supermarket industry including its recent creation of an iPhone app and a blog called Fresh Stories. In 2010 Wegmans’ annual sale was approximately $5.6 billion and in 2011 was ranked 28th on the Supermarket News list of Top 75 Supermarkets based on sales volume. In addition Forbes ranked Wegmans 55 on the 2011 “Largest Private Companies in the U.S.” Currently Wegmans operates 79 stores (47 in New York, 14 in Pennsylvania, 7 in New Jersey, 6 in Virginia, 4 in Maryland and 1 in Massachusetts) and employs 42,000 people. (Wegmans) In order to achieve successful numbers such as these Wegmans must maintain the scope of operations management that ranges across the organization. Wegmans’ operation function includes many interrelated activities such as forecasting, capacity planning, facilities and layout, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities, etc. Competitiveness Competitiveness is how effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services. It is clear that there are many competitors for a supermarket in the central New York region. Directly this includes other supermarkets such as Price Chopper, Tops, etc. Indirectly Wegmans is also competing against the possibility consumers have to eat out. However, anyone who is from an area that has a Wegmans would most likely agree on one thing, it is the best. Everyone has their favorite aspects to Wegmans, and these favorites can vary from one person to the next because Wegmans has much to offer that cannot be found in the typical grocery store that not only gives it a competitive advantage, but also directly identifies what the consumers wants and needs are. For example, Wegmans makes the attempt to be more like a European open-air market. They offer numerous displays of locally grown fresh produce, freshly baked breads and other assorted goods, the highest quality meats and varying cheeses from all over the globe all strategically...
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