The Role Of Systems And Simulation - Research Paper Example

 The Role Of Systems And Simulation INTRODUCTION In modern era, globalization has driven the business sector to the field of perfect competition. In order to get sustainability in the industry, companies are becoming more cautious regarding their performance. The performance of any company is largely referred to as a key influencer for its development. Contextually, it becomes mandatory for every company to monitor its performance very effectively. The process management is recognized as an ensemble of performances that includes the planning as well monitoring of all performers of the company (Grean and. Shaw, 1-3). In order to describe about the adoption of performances management, Wall Mart is recognize to be one of the most important player with regard to the adoption of performance management tools. THESIS STATEMENT The prime intention of the study is to describe about how Wal-Mart has been benefited by adopting process management in terms of earning high revenues. PROCESS MANAGEMENT OF WAL-MART The process management is recognized to be one of the most important tools for developing better operational management as well as performance of a company. In order to maintain the business process in a smooth manner, every company has developed its own process. Most of the companies have built their own process chart such as producing widget, paying vendor administering pay roll and many more. Contextually, it is evident that Wal-Mart has also played a vital role for preparing its own process management. The process name six sigma has been regarded as a more critical organizational process that includes a large number of operational activities of the organisations has been implemented within the operations of Wal-Mart (Grewal, 1-3). It is notable that the concept of process management is recognized to be one of the most important concepts of managing the operations of the business in the most efficient manner. Through the implication of six sigma techniques of process management, the company has been able to reduce its additional cost within the business. It will be worth mentioning that the strategy of sig sigma is recognized to be more efficient in reducing extra cost of the company. In this regard, the company has decided to implement the six sigma process within the logistics department. Apparently, it can be stated that Wal-Mart is recognized to be successful in establishing sustainable supply chain management with the help of a new concept name six sigma (Cengage Learning 1-2). With the help of the concept of process management tool name six sigma, Wal-Mart has initiated to reduce its cost from with the help of better formation of business operations. In this regard, the company has been able to reduce unnecessary cost in its distribution step. This process is recognized to be a significant one as it can be useful in providing the company with proper value. There is another strategy, which has been included by the management of Wal-Mart to reduce external efforts from its distribution channel. Wal-Mart has built or develop a strategy for making direct connection between its supplier as well as its retail stores with the assistance of proper IT or technological implementation. In order to build an effective supply chain management, Wal-Mart has developed a large number of strategies, which influences the companies’ operational activities. To reduce the additional cost as well as increasing its profits, Wal-Mart has developed an enterprise-wide information system. This system is effective for developing a process, which has made a direct connection between all distribution warehouses, retail locations as well as all the major suppliers (Colla and Dupuis, 103-105). Apart from this, it is found that Wal-Mart has adopted the defense software process in its supply chain management process. With the help of effective supply chain process, the company has been able to provide world class services to others. As per a particular report based upon Wal-Mart, it is notable that the company has gained huge revenues when it has been able to establish new technology in the supply chain management (Grewal, 1-3). Six Sigma. Six Sigma process was developed by Motorola in the year of 1986. It is one kind of business management strategy, which is currently used by a large number of diversified industries. This process is primarily liable for improving quality of the products as well as it help companies to provide excellent services to its customers. More specifically, it can be stated that six sigma has two types of methodology, which includes one as DMAICT while the other is DMADV. The DMAICT is referred to the data driven quality strategy, which is mainly used for improving process. The DMAICT process is mainly used for improving the existing business process. It is mainly implemented for providing the efficient product services. The concept of DMAICT is acronym, which has its own meaning. Here, D stands for define opportunities, M stands for measuring performance, A stands for analyzing opportunities, I for improving performance, C for controlling performance as well as T stands for transferring best practice (Business balls “Six sigma training, history, definitions - six sigma and quality management glossary”). Wal-Mart has paid attention towards enhancing its performance as well as raise revenue. It is notable that to improve its performance opportunities, the company has decided to apply method i.e. Six sigma. In this regard, the company has adopted this method and has also designed its operational activities as per the six sigma process. Correspondingly, the company has been able to take decision to adopt the DMAICT concept for developing its internal business process. It will be worth mentioning that increasing profitability of Wal-Mart is recognized to be a significant example for every company belonging to the content industry (Grean and. Shaw, 1-3). Contextually, it has been also stated that the approach DMAICT is beneficial for the company in a considerable manner. The present status of Wal-Mart reflects a competitive advantage of its profile, which is a result of successful implementation of DMAICT strategies. Wal-Mart is considered as the first grocery chains and general Merchandise Company, which has implemented the strategies for developing self-service supermarket business model. This model provides the opportunities to the customers to shop as per their own choice. Apart from this to increase the revenue as well as annual turnover, Wal-Mart has paid attention towards small towns and promotes its revenue earnings. In this regard, it has been observed that the Wal-Mart has increased its popularity by selling products lower than the local mom and pop retailers (Cengage Learning 1-2). Besides, Wal-Mart has also imposed the DMAICT or six sigma method in supply chain management process for developing its supply chain more effectively. It has also been proved that due to the efficiency in the logistics department, Wal-Mart has been able to raise its profitability through providing effective performances as well as services. It has observed that Wal-Mart is capable to define the opportunities towards its customers by implementing self-services business model for its customers. Apart from this, the company is also set its stores in several small town areas where its rivals are not setting its business. Simultaneously, the company has also implemented few innovative strategies to improve its performance at large. In this regard, the company provides its products to the customers in comparatively lower price than other local retailers (Colla and Dupuis, 103-105). CONCLUSION From the overall study, it can be noted that process management is recognized to be one of the most effective concept of improving the internal performance of companies. In this regard, six sigma is recognized to be more efficient strategy, which is helpful in improving the company’s performances. Contextually, Wal-Mart is the prime adopter of the concept i.e. six sigma. It is also found that through the implementation of six sigma Wal-Mart has earned higher revenues than its rivals. Hence, it can be concluded that process management is indeed an important part of the operations of the present day business. Works Cited “Six sigma training, history, definitions - six sigma and quality management glossary” Business balls, 2015. Web. 23 Mar, 2015. < http://www.businessballs.com/sixsigma.htm > Cengage Learning, “Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage”. Case Study (2014): 1-41. Colla, Enrico and Marc Dupuis, “Research and managerial issues on global retail competition: Carrefour/Wal-Mart”. International Journal of Retail & Distribution Management, 30.2 (2011): 103-111. Grean, Michael and Michael J. Shaw, “Supply-Chain Integration through Information Sharing: Channel Partnership between Wal-Mart and Procter & Gamble”. University of Illinois at Urbana-Champaign (2000): 1-21. Grewal, Dhruv., Ram Krishnan, Michael Levy and Jeanne Munger. “Retail Success and Key Drivers”. Newbooks (2001): 1-16. Read More