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PNB 36104

INDUSTRIAL ENGINEERING
PROBLEM BASED LEARNING
JANUARY 2018
NAME:
AMIRAH KHALISAH BINTI YAZELI
ID NO:
58220116007
DATE OF SUBMISSION:
6th MARCH 2018
LECTURER’S NAME:
PUNNOSE P KOVOOR
CONTENTS

CONTENTS PAGES
4
PROBLEM BASED LEARNING

OBJECTIVE 5

GRAPH 6

ISHIKAWA DIAGRAM 7-9

KIPLING METHOD 10-12

PORTER’S FOUR CORNER ANALYSIS 13

PORTER’S FIVE FORCES ANALYSIS 14

VALUE CHAIN ANALYSIS 15

RECOMMENDATIONS 16

CONCLUSION 17

REFERENCES 18
PROBLEM BASED LEARNING

Retail businesses include large department stores and chains, or individual shops located in every community. Online vendors of
consumer goods are also retailers. Examples of consumer goods are clothing, furniture, toys etc. Some retailers provide personal
services. A hair salon is an example of a retail service business. A business may combine retailing with other business operations. For
example, building supply stores can sell on a wholesale basis to contractors as well as sell retail to individual consumers. A few
industries fall into a grey area because they market to consumers but aren’t generally counted as retailers. For example, the National
Retail Federation excludes automobile sales, gasoline stations and restaurants when reporting national retail sales.

Planet 96 is a retail business company dealing with clothes, groceries, stationaries, fresh produce and other household items. Since the
beginning of 2016, there is a decline in the business section where the fresh produce was sold. It was around this time that another
retail company of the same scale as Planet 96 had started around the neighbourhood and observers view that this could be one of the
reasons why the fresh produce from Planet96 is not sold well.
OBJECTIVE

1. To study the competition between Planet 96 and the new retail company.
2. To determine the factors that affect Planet 96 fresh produce selling.
3. To identify improvements to be made in augmenting Planet 96 fresh produce selling.
GRAPH

FACTORS PERCENTAGE (%)


Price 95
Hygiene 90
Quality 95
Layout 85
Customer-friendly 85
Parking spaces 80

Factors Affecting Planet 96 Fresh Products Selling


100

95

90

85

80
PERCENTAGE (%)
75

70
Main factors affecting the selling of Planet 96 fresh products

Hygiene Quality Price

Selling of Planet 96 fresh


products went down

Layout Customer- Parking


friendly Spaces
The factor of price which affecting the selling of Planet 96 fresh products

Inflation Maintenance cost


is high

Price of fresh products at


Planet 96 is expensive

Implementation
Shops rental
of taxes by
increases
government
The factor of quality which affects the selling of Planet 96 fresh products

Occurrence of
Inflation
pathogens

Quality of fresh products at


Planet 96 is unpleasant

Storage materials
Temperature of
are non-food
typed. storage is not apt
KIPLING METHOD

What?
What is the problem experienced by Planet 96?

There is a decline in the business section where the fresh produce was sold.

When?
When did the problem arise?

Earlier in 2016.

Who?
Who is affected by this problem?

 Regular customers of Planet 96 which might lose their interest in purchasing any goods in future.
 Employees of Planet 96 as business profit drops, their salary might be paid partially or late.
 Top management of Planet 96 as second-rate business might impoverish the existence of Planet 96.

Where does this happen? Where?


This happen at Planet 96 fresh products department.
Why?
Why does this happen?

A new retail company alike Planet 96 just begun its operation in the vicinity.

Few factors being thought likely to affect the retailing of Planet 96:

 Price-
The price set by Planet 96 is higher.
 Quality-
The quality of fresh products in Planet 96 is bad.
 Layout-
The fresh goods corners are narrow which cramped customers in purchasing any at one time.
 Parking spaces-
The slots for customer vehicles are not sufficiently available.
 Customer-friendly-
Planet 96 workers do not nicely entertain any customers with enquiries on their products/services.
 Sanitation
The cleanliness is not well-maintained like bad smell of the perishable goods like fish.
How?
How can this problem be overcome?

 Price-
Set a price which is aligned with the market price.
 Quality-
Set a suitable temperature for the fresh products storage.
 Layout-
Paint the fresh products department with brighter colours which will create a wider vision of its space.
 Parking spaces-
Set a time limitation to make certain customers are not ‘missing in action’.
 Customer-friendly-
Accept customers’ reviews positively.
 Sanitation
Workers of Planet 96 need to hourly leaning the corners of fresh products.
PORTER’S FOUR CORNER ANALYSIS

Drivers: Current Strategy:

 High demand of fresh  Set a price lower than


products Planet 96
 Acting as new branch at  Offering discount to
a new place customers
 Planet 96 is the only  Importing fresh
retail company which products daily from
existed in the area- less supplier.
competitors Competitor’s
Future
Strategy

Management Assumptions: Capabilities:


 The location is strategic  Stable financial
for their retailing standing
business
 Vast supplier globally
 Customers are losing
 Awarded as one of the
interest in Planet 96
best fresh products
 Their company strategy retailer recently
is presently aggressive
and reactive
PORTER’S FIVE FORCES
New Entrants: ANALYSIS
Competitive Rivalry:
-Government reduce barriers fee to
foreign brands -Only one competitor
-New comers’ brands well- -Good standing
recognised New Entrants -Low prices
-Effective marketing
-Entrants have strong capital based strategy
-Discounts given to
customers

Intensity of
Suppliers Buyers
Rivalry

Supplier power: Buyer power:


-Seeking for less cost
-Seeking for less complexity
-Existence of alternate -Save up to 50% if purchasing
products Substitutes goods from the new retail company
-Bonded by contract for a
period of time- difficult to
switch to new supplier Substitutes threats:
-Relying on one supplier -The price is much cheaper
-Can be purchased personally
-Demand of current goods drop
-
VALUE CHAIN ANALYSIS

Inbound Logistics

Operations Outbound
Marketing &
Logistics
Sales Services
-real-time inventory -fresh products are
data -pricing is higher -no warranty
-based on real-time being distributed
than competitor
sales and inventory collectively, up to
-truckloads as fresh -lack of
operation customers to pick -less
product carrier maintenance
any. advertisements

Firm Structure
Technology
-poor management Development Human Resource
knowledge Procurement Management
-lack of technical
skills -obtaining fresh -hiring part-time
-non-effective
products from one employees
planning as
-focusing on sole supplier.
-with or without
manual ways to
-proactive than working experience
save cost
reactive

-
RECOMMENDATIONS

1. Planet 96 need to maintain the good quality of their fresh products.

E.g. Planet 96 has to ensure perishable goods are in fresh condition for customers’ purchasing. Remove fresh products which are
seen to begin rotten or smelly.

2. Planet 96 need to set a price for their fresh products which is not against the market price.

E.g. Planet 96 has to ensure even if it is during festive seasons, those prices for high demanding goods like sugar, cooking oil price
are still in accordance to the market price.

3. Planet 96 has to improve their sanitation involving fresh products departments.

E.g. Planet 96 need to order their workers to carry out hourly cleaning like sweeping, mopping especially wet goods like fish, meat
as it might lead to bad smell ambience.

4. Planet 96 need to improve their parking slots for customers’ convenience.

E.g. Planet 96 needs to identify wide spaces for customers’ vehicles parking as this is essential to save their time and streamlining
Planet 96 operating system.

5. Planet 96 has to build a layout for customers’ trouble-free movement.

E.g. Planet 96 needs to create a layout which will organize the storage of fresh products that will ease customers’ to pick.
Vegetables for instance should be at a corner while wet goods should be at another corner.

6. Planet 96 management should be easy-going with customers.

E.g. Planet 96 should be free in accepting any complaints/feedbacks from customers in improving and offering the best services o
customers. Provide any official form or any official website for customers’ reviews.
CONCLUSION

Planet 96 is a well-potential company. However, due to some reasons, it might downgrade their existing customers’ interest of
purchasing with them. Hence, reactive ways need to be carried out in sustaining their existence in the market.
REFERENCES