Zara: Operations, Supply Chain Management and Information Management Systems

Background of Zara

Critically evaluate how operations management contributes to the competitiveness of an organization.Critically evaluate how quality management processes and supply chain networks contribute to achieving the overall strategic objectives of an organization Critically evaluate the information management/systems in relation to the operation management processes Design a project plan for a given business scenario and implement a project.

The following case study is about how Zara with its innovative Operations, Supply chain and Project management methods retain a top position in the retail industry since its inception. Zara SA, stylized as ZARA, is a Spanish apparel retailer based in Arteixo in Galicia, Spain. The company specializes in fast fashion, and products include clothing, accessories, shoes, swimwear, beauty, and perfumes. It is the largest company in the Inditex group, the world's largest apparel retailer.

The prominent reason behind Zara’s success is that it keeps up the pace with rapidly changing street fashion. Zara’s operational goals are to achieve short lead times, lower inventory and increased variety of styles/choice, together with its focus on quality, excellent supply chain system and project management frame work. Zara changes its clothing designs every two weeks on average, while competitors change their designs every two or three months. It carries about 11,000 distinct items per year in thousands of stores worldwide compared to competitors that carry 2,000 to 4,000 items per year in their stores.

Analyse the background of the company, the internal and the external operational challenges they face in an ever-changing Retail Business world and discuss about how their operational policies and strategies help in Zara’s rapid growth and ongoing success in a fiercely competitive environment.

 Provide insight into the quality management and the supply chain management processes adopted by the company to ensure their success, with emphasis on the tools and techniques, strategies and plans used to ensure high quality products with least wastage and thereby ensuring profitability.

Analyse the information management/systems being used in Zara and identify the key points which is addressed while designing for these systems. Explain how this information management system integrates with the operational procedure to ensure seamless delivery of products ensuring profitability. Also suggest any inputs to make this system work even better.

Discuss the concepts and process of six sigma and lean management from both operation & quality perspective and assess if Zara is following these methods and evaluate how following or not following these methods will affect the overall profitability of their business.

Discuss about the risks which may be associated if a new design is introduced into market; emphasis on how you will make a risk management plan-identifying risk and plans to address it, if it happens.

You are a consultant with Zara and given the responsibility of establishing a construct site for them. The steps required is given below in the table. Prepare Work break down structure (WBS) and WBS Dictionary as per the steps given up to the lowest work package. Also create a basic network diagram, assuming the time and cost required for each step.