Production management MBA-206

ASSIGNMENT
MBA-206
Production Management

By
Muskan gupta
Roll number: 2023c1r032
Semester: 1ST
Department Name : MBA

Model Institute of Engineering & Technology (Autonomous)

(Permanently Affiliated to the University of Jammu, Accredited by NAAC with
“A”
Grade)
Jammu, India
2024

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 Production management MBA-206

TABLES OF CONTENT………

S.NO CONTENT

1. INTORDUCTION OF REILANCE

2. INTRODUCTION OF RELIANCE SMART BAZAAR

2.1 ABOUT SMART BAZAAR,JAMMU

2.1.1 PICTURES

2.2 LAYOUT

2.2.1 LAYOUT OF JAMMU SMART BAZAAR

2.2.2 DIAGRAM OF LAYOUT

2.2.3 TYPICAL SUPERMARKET LAYOUT

2.2.4 PROBLEM OBSERVED

2.2.5 SUGGESTIONS

3. INVENTORY MANAGEMENT

3.1 TYPES OF INVENTORY MANAGEMENT

3.2 METHODS USE BY SMART BAZAAR

4 QUALITY MANGEMENT

4.1 METHOD USE BY SMART BZAAR

5 RECOMMANDATIONS

6. CONCLUSION

7. REFRENCES

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1.INTRODUCTION:

A Reliance Gathering was established by Dhirubhai Ambani, who started a new business
during the 1950s. The organization ventured into materials during the 1960s and entered the
petrochemical area during the 1980s, hoarding a fortune for Ambani.

After Ambani kicked the bucket in 2002, his children Mukesh, the oldest, and Anil had a
column over corporate strategy. The gathering was partitioned in 2005 as Mukesh assumed
control over the petrochemical and material tasks while Anil assumed responsibility for the
monetary and media communications fragments. Mukesh drives Dependence Ventures as
executive and extended its activities by driving into retail and broadcast communications
administrations.

Dependence Ventures is the biggest private-area organization in India. It is associated with

the oil refining, petrochemical, gas, retail and material organizations and flaunts united deals
of more than $60 billion. It is a center unit of Dependence Gathering, which positions close
by Goodbye and Birla among the nation's major conglomerates

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Question 1: Find any retail outlet (Retail/Wholesale /Restaurant) nearby to your home
place and discuss the layout of the outlet. Identify the problems in the layout and give your
suggestions to improve the layout

For this question we choose reliance smart bazaar, jammu as our outlet so here is the
introduction and then layout of the mart.

2.INTRODUCTION:

Reliance Smart is one of the biggest and quickest developing Staple corporate store in India.
Equivalent to its name, Smart is another age grocery store serving the requirements of the
present savvy and worth looking for clients. Dependence Brilliant offers a one-quit shopping
experience by offering new produce, bread kitchen, dairy items, home and individual
consideration items, general product, shrewd clothes and machines, making it a total
shopping objective. Much of the time Smart stores are co-situated with our style and gadgets
store Dependence Patterns and Dependence Computerized, giving clients a wide decision for
all their shopping needs. Dependence Brilliant's unbelievable incentive prizes customers
something else for greater buys, each and every time they shop, with 100 percent variety
being presented underneath MRP lasting through the year. This while conveying predominant
quality items, best of the brands, most recent send-offs and a top notch shopping experience.

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Further reinforcing the incentive Brilliant stores offer Dependence Retail Confidential
Brands. Our Confidential Brands offer item decisions across 110 classes spread over staples
to handled food sources and drinks, individual consideration, beauty care products and scents
to wellbeing and cleanliness, texture and home consideration to home stylistic layout range.
GoodLife, Snactac, Better believe it!, Desi Kitchen, Purik, Enzo, Get Genuine, My Home,
Samvaad, Gleam, Petals and Blissful Residing are a portion of the confidential brands which
are tenaciously created and quality tried items offering extraordinary incentive.

2.1 ABOUT SMART BAZZAAR,JAMMU:

On October 30, 2022,Big bazaar shifts to Jio Mart, initially known as Smart Bazar, was
launched, marking the beginning of a transformative journey in the e-commerce landscape.
With its inception, Smart Bazar aimed to revolutionize the way Indians shop for groceries and
everyday essentials. This launch signaled the entry of Reliance Industries, led by Mukesh
Ambani, into the rapidly growing e-commerce sector in India. Under the brand Jio Mart, it
sought to leverage the widespread penetration of Jio's telecom network to offer seamless
online shopping experiences to consumers across the country. This move not only introduced
a new player in the market but also intensified competition among existing e-commerce
giants, promising innovation and convenience for Indian consumers.

SMART Bazaar is a one-stop shopping destination for all your needs. It offers a wide range
of Groceries, Homeware & Stylish Affordable Fashion. Choose from our range of Fruits &
Vegetables, Staples, Dairy, Packaged Food, Home & Personal Care, largest range of
Homeware Brands, and trendy apparel for Men's, Women’s & Kids
The address of this store is The City Square Mall, Samadhian Road, Chandnagar, Jammu,
Jammu And Kashmir.

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2.1.1.1Here are some pictures of smart bazaar jammu:

2.2 LAYOUT:

"Layout" refer to the overall plan or structure of something. It encompasses the arrangement,
organization, and distribution of various components within a system, design, or space.
Layouts can be found in diverse contexts, including graphic design, urban planning,
manufacturing, and software development. They serve to define the spatial relationships and
interactions between different elements to achieve specific objectives or functionalities.

2.2.1 LAYOUT OF SMART BAZAAR,JAMMU:

The layout was made by Ashish Mehta and it flows seamlessly from left to right, with the
ground floor serving as both the entrance and the initial point of exploration for customers.

There are four floor of this mart:

 Lower ground floor

 Ground floor
 First floor
 Second floor

As visitors step through the entrance,

1. At ground floor they are greeted by a vibrant cash area and an enticing display of
staples, fresh fruits, and vegetables.
2. Descending to the lower floor reveals a comprehensive selection of hygiene and
personal care products alongside an array of tempting processed foods.

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3.

Ascending to the first floor, shoppers can explore an expansive range of home furnishings
and luggage, interspersed with federal merchandise of impeccable quality.
4. Finally, reaching the second floor, the store showcases an extensive collection of

apparel, including clothing and garments to suit every style and occasion. With each
floor meticulously curated to cater to diverse needs and preferences.
Ashish Mehta who chose this current layout made sure that everyone who enters the
door experiences a fulfilling shopping time.

Here are the pictures of layout:

2.2.2Layout made by us:

Fig :1 Fig : 2

2.2.3 Typical supermarket layout:

 Entrance:- Wide aisles for easy product browsing with promotional displays.

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 Grocery staples:- Core grocery items like rice, flour and pulses located at the back to
encourage customers to navigate the entire store.
 Perishables:-Fresh produce ,meat and daily typically placed around the perimeter for
better temperature control.
 High-margin Items:- Eye -catching displays for higher -margins goods like
confectionery and personal care products placed strategically near checkout counters.

2.2.4 Problems observed:

Problems that we identified on our visit to this outlet:

 Dead zones:-
Some areas might receive less customer traffic leading slower product turnover.
 Longest Aisles:-
Aisles are too narrow, leading congestion and difficulty for customer to navigate.
 Poor Signage :-
Inadequate or confusing signage makes it difficult for customers to find specific
product.
 Lack of accessibility:-
Some areas of smart bazaar are not easily accessible to all customer including
disabilities or mobility issues.
 Impulse purchase:-
Placement of high margin items might not be optimal for max.
 Storage space constraints:-

There is limited storage space and it leads to cluttered backroom areas and difficulties
in restocking selves.

2.2.5 Some of the improvement suggestions for the following problems are:

I. Widening aisles or rearranging shelves to create wider pathways that can

improve traffic flow and prevent congestion.
II. Implement clear and consistent signage throughout the store including
overhead signs, aisle markers and product labels to guide customers
effectively.

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III. Ensure that aisles are wide enough for wheelchair acess and that merchandise
is displayed at reachable heights for all customers. Install elevators that work
and are also for customers not just staff members to provide access to different
levels of store.
IV. Optimise backrooms layout and storage solution to maximize available space.
Implement better inventory management system to track stock levels
accurately and recorder merchandise efficiently.
V. Track customer movement pattern to identify congised ares and dead zones to
balance customer traffic in these areas.
VI. Position high margin items near checkout counters and impulse purchase
tiggers throughout stores.

Additional considerations for smart bazaar:

 Local Preferences : Stock should cater to local preferences and dietary needs.
 Seasonal Products: Dedicate space for seasonal products to improve sales.
 Digital Integration: Consider incorporating digital kiosks or displays for promotion
of product information.

Question 2:-Discuss the inventory management/ Quality Management of chosen

outlet. Which method of inventory management/ Quality assurance technique they
are opting. Give your recommendations to improve the inventory
management/quality management. .

3.INVENTORY MANAGEMENT:

Inventory management refers to the process of ordering, storing, using, and selling a
company's inventory. This includes the management of raw materials, components,
and finished products, as well as warehousing and processing of such items. There
are different types of inventory management, each with its pros and cons, depending
on a company’s needs.
3.1 TYPES :
Inventory management can be categorized into several types, each with its own approach and
focus. Here are some common types of inventory management:

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TYPES
ABC
Just-in-time Mninmum stock level
analysis

Batching Vendor Managed

FIFO LIFO EOQ Inventory
tracking

Perpetual
Cross-Docking
Inventory System

Let discuss them:

I. ABC Analysis: Sort inventory into three groups based on how valuable they
are. Group A is the most important, Group B is medium, and Group C is the
least important.
II. Just-in-Time (JIT): Only order what you need, when you need it. This saves
money by reducing extra stuff sitting around.
III. First-in-first-out (FIFO):FIFO is a method where the oldest inventory items
are used or sold first. This is particularly useful for perishable goods or items
with expiration dates, ensuring that goods don't expire in storage.
IV. Last In, First Out (LIFO): LIFO is the opposite of FIFO, where the most
recently acquired inventory items are used or sold first. While this may not be
suitable for perishable goods, it can be beneficial for businesses during periods
of inflation, as it assigns the highest cost to goods sold, reducing taxable
income.
V. Minimum Stock Level: Always keep a certain amount of stock so you don’t
run out.
VI. Batch Tracking: Give each group of items a special label so you can track
them separately. Useful for things like medicine.
VII. Perpetual Inventory System: Keep track of your inventory all the time to
know exactly what you have.
VIII. Economic Order Quantity (EOQ): Figure out the best amount to order each
time so you don’t waste money on extra costs.
IX. Vendor Managed Inventory (VMI): Let the supplier handle your inventory
for you. They'll keep an eye on it and send more when you need it.

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X. Cross-Docking: Move goods directly from incoming shipments to outgoing

ones without storing them. Saves time and money on storage.

3.2 INVENTORY CONTROL METHOD USE BY SMART

BAZAAR,JAMMU:
 FIFO
 FEFO
 SAP
Let explain them:
I. FIFO: First-in-first-out method where the oldest inventory items are used or
sold first. This is particularly useful for perishable goods or items with
expiration dates, ensuring that goods don't expire in storage.
II. FEFO: First-expiry-first-out is a way of organizing and using inventory. It means
that the items which are closest to their expiration date are used or sold first. This
method is extremely important for perishables as it ensures items which are near to
expire are sold first.
III. SAP: Smart bazaar uses SAP (Systems applications and products) for
inventory management. SAP produces comprehensive functionalities for stock
control, purchasing and order management as SAP is a popular enterprise
planning (ERP) system.

4.QUALITY MANAGEMENT:
Quality management is the act of overseeing all activities and tasks that must
be accomplished to maintain a desired level of excellence. This includes the
determination of a quality policy, creating and implementing quality planning
and assurance, and quality control and quality improvement. It is also referred
to as total quality management.

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4.1 QUALITY MANAGEMENT USE BY SMART BAZAAR ,JAMMU:

Let discuss them below:

1. Sorting and culling: This practices involves regularly sorting and
removing damaged or expired products to maintain product’s
quality(In this process we separate damaged or expired products from
sellable inventory).
2. Misting : This practices is used for fruits and vegetables to maintain
there freshness and quality. This process minimise the product spoilage
and maximize shelf life.
3. Shrinkage : Shrinkage is monitoring product loss due to they damage
or other factors such spoilage.

5.RECOMMENDATIONS:
First for inventory management:
1. ABC analysis:- Implement techniques like abc analysis to categorize
items based on value and adjust ordering frequency accordingly. This
analysis involves:
 ‘A’ items: High value items with tight stock control like
electronics.
 ‘B’ items: Medium value items with moderate stock control

Sorting and
culling

Misting

Shrinkage

like packaged food.

 ‘C’ items: Low value items with low frequent stock check like
screws ,nuts, bolts.

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2. Real time inventory tracking: Implement a system for real time inventory
tracking, enabling better stock control and timely reordering.
3. Demand forecasting: Utilize sales data to product future demad and
optimize stock levels, avoiding stockouts or excess inventory.
4. Safety stock: Maintain a buffer stock of essential items to handle un
expected demand fluctuations.
5. Vendors : Managed inventory cvm collaborate with key suppliers to
manage inventory levels, potentially reducing stock holding cost.

Second for quality management:

1. Supplier quality management: Implement quality control
measures with supplier to ensure products meet specifications and
also develop strong relationships with suppliers to ensure timely
deliveries.
2. Shrinkage control: Address shrinkage inventory loss due to theft,
damage or errors through measures like:
Improved security measures ( CCTV, security, guards).
Regular cycle counts to identify discrepancies.
Staff training on proper inventory handling procedure.
3. Customer feedback: Actively collect customer feedback about
product quality and address ang recurring issues.
4. Employee training: Train staff on proper handling, storage and
quality control procedure for different product categories.
5. Quality management systems: Consider implementing a
standardized systems for a structured approach to quickly control
such as ISO9000.
6. Incoming product inspection: Inspect deliveries for
damage ,defects or expiry dates or only inconsistencies.

6.CONCLUSION:
In conclusion, this assignment has provided valuable insights into the
potential layout, inventory management, and quality management practices
at Smart Bazaar. By strategically implementing the recommendations and

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conducting further research, Smart Bazaar can enhance customer

satisfaction and achieve operational excellence.

In This assignment we examined the layout, inventory management, and

quality management practices at Smart Bazaar (formerly Big Bazaar) in
Jammu.
 Regarding Layout: We analyzed potential layout issues like
congestion and unclear signage, suggesting improvements like
traffic flow analysis, strategic product placement, and clear signage
for a more customer-friendly shopping experience.
 For Inventory Management: We explored Smart Bazaar's potential
use of SAP, FIFO/FEFO methods, and identified areas for
improvement. Recommendations included ABC analysis, demand
forecasting, safety stock, and vendor-managed inventory to
optimize stock levels and reduce costs.
 In Quality Management: We discussed potential practices like
sorting, culling, and misting, and suggested additional methods like
supplier quality management, employee training, and customer
feedback to ensure consistent product quality. We also explored
how these practices could align with the principles of ISO 9001, a
quality management framework.

7.REFRENCES:

a. https://relianceretail.com/reliance-smart.html
b. https://www.investopedia.com/terms/i/inventory-management.asp
c. www.investopedia.com/terms/q/quality-management.asp
d. https://www.plex.com/products/quality-management-system/types-
quality-management-systems
e. https://asq.org/training/catalog/topics/supplier-quality
f. https://asq.org/training/catalog/topics/supplier-quality
g. https://en.wikipedia.org/wiki/ABC_analysis
h. https://www.investopedia.com/terms/f/forecasting.asp
i. https://en.wikipedia.org/wiki/Safety_stock
j. https://en.wikipedia.org/wiki/Vendor-managed_inventory
k. The APICS Dictionary by the American Production and Inventory
Control Society (APICS): This online resource provides definitions
and explanations of key terms in production and inventory

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management.
https://www.ascm.org/learning-development/certifications-
credentials/dictionary/

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