Mahatma Gandhi MissionsInstitute of Management Studies & Research MGM Educational Campus, Sector 18, Kamothe, Navi Mumbai 410 209

PROJECT REPORTON

STUDY OF OPERATIONAL PROCESSES AT HYPERCITY

SUBMITTED TO MGMS INSTITUTE OF MANAGEMENT STUDIES & RESEARCH, NAVI MUMBAIBY

NOOPUR MAHESH KOLIRoll No. 24

IN PARTIAL FULFILLMENT OF MASTER OF MANAGEMENT STUDIES (MMS), UNIVERSITY OF MUMBAIMay-June 2015-16DECLARATION

I, Ms. Noopur Mahesh Koli hereby declare that this project report is the record of authentic work carried out by me during the period from 4th May to 2nd July 2015 and has not been submitted to any other University or Institute for the award of any degree / diploma etc.

Signature

Name of the student

Date

CERTIFICATEThis is to certify that Ms. Noopur Mahesh Koli of MGMs Institute of Management Studies & Research has successfully completed the project work titled Study of Operational Processes of Hypercity in partial fulfillment of requirement for the completion of MMS as prescribed by the University of Mumbai.This project report is the record of authentic work carried out by her during the period from 1st May to 30th June 2015.She has worked under my guidance.

Signature Name Project Guide (Internal)Date :

Counter signed bySignature Name

DirectorDate :

CERTIFICATE FROM THE COMPANY/ORGANISATION

Acknowledgement

The project of this nature is a learning task which gave me an exposure to understand the operations of the retail sector in acute manners. Although this project report is being brought by me, it bears an imprint of guidance and cooperation of many individuals. I take this responsibility to express gratitude to all those who helped me in various ways for the successful completion of my project report.It is a privilege for me to have been associated with Prof.Monika Khanna, my mentor, for the unflinching support and guidance throughout the project. I express my deep sense of gratitude for her constant encouragement and patience throughout this work.I am thankful to Prof. Rashmi Belval for providing me this opportunity to do this project & for the successful completion of my summer internship.In the successful & trouble free completion of my project titled Study of Operational Processes of Hypercity, I am grateful to HyperCITY Retail India Limited and all the staff for their valuable time, guidance and support.I would also like to thank Mrs. Manasi HR Manager of Hyper CITY Vashi Store who permitted me to work there as an intern. I am grateful to my Mentor Mr.Kunal General Manager of Hyper City Vashi Store for giving me his valuable time out of his busy schedule and who have been a constant encouragement. I extend my sincere thanks to Mr. Vinay Team Leader Receiving Department who provided me lot of information regarding operations of the store, many of which I have used in this report and without which this project could not have been completed.I take this opportunity to thank my classmates for their company during the summer internship and for the useful discussions I had with them.I would be failing in my duty if I do not mention my family for providing moral support and their blessings.

Chapter SchemeChapter NoTitlePage No.

1.

Introduction1

2.

Research Methodology

15

3.Operational Processes of Hypercity

24

4.

Data Processing And Analysis48

5.

Findings58

6.

Conclusion60

7.

Recommendation62

List of TablesTable No.Title

Page No.

1.3.1Company Profile

06

1.3.2Hypercity Brands

11

2.1.1Research Design

17

List of GraphsGraph No.TitlePage

4.1Frequency of operational processes50

4.2Occurrences of problems in MIS56

4.3Effect on sales due to introduction of MIS57

List of ChartsChart NoTitlePage

3.1Purchase Order Receiving Process35

4.1Operational activity Important for growth49

4.2Best process for managing damage51

4.3Impact on sales52

4.4Best process stock receiving process53

4.5Inspection for conformance54

4.6RTV of non-conforming goods54

4.7Accurateness of MIS55

List of FiguresFigure NoTitlePage

3.1.1Hypercity flash Ticket27

3.1.2Format of Purchase Order29

3.1.3Format of Invoice31

3.1.4DSD Network32

3.4.3Handheld Scanners46

List of AbbreviationsChapter No.AbbreviationsPage

1MIS:Management Information System14

3SST:Stock Service Team25

3SKU:Stock Keeping Unit25

3EAN:European Article Number25

3UPC:Universal Product Code25

3DC:Distribution Center26

3SEL:Self-Edge Label28

3PO:Purchase Order28

3SAV:Stock Adjustment Voucher28

3RTV:Return to Vendor28

3FMV:Fair Market Value31

3DSD:Direct Store Delivery32

3ADSD:Auto Direct Store Delivery32

3PICS:Perpetual Inventory Count System37

3FMR:Floor Movement Register37

3OOS:Out of Stock38

3DCMS:Distribution Center Management System42

3WMS:Warehouse Management System42

3MMS:Merchandise Management System44

Executive SummaryWithout practical training, management education is meaningless so long with the theory, practical training is provided to the management students to expose them to the actual working environment of any organization. Such training provides a framework of knowledge relating to the concepts and practices of the assigned topics in the organization. The summer training is an integral part of the course curriculum of MMS In this the student is in a position to analyze the integral working of an organization with mature eyes and understand the dynamics in a much better manner.The project entitled Study of Operational Processes of Hypercity carried out, was the result of extensive study of the HyperCity store situated atVashi, Navi Mumbai. My subject of study was analyzing the role of the operational department for growth, the processes, their impact on the sales and the implementation of the MIS system for these processes in the store.The project provides an opportunity to know about in and out of the functioning of the retail store which serves both as the frontline of operations and the revenue earner for the organization engaged in the business of organized retailing. The retail store which serves as the point of interaction and transaction between the organization and the customers is the biggest stakeholder in determining the level of success of the business. Operations set that regulate the entire workings of a store thus have a pivotal role. Thus while being engaged in a project work in a retailing organization, to develop knowledge about the retail store operations provides a kind of completeness to the task of understanding the trade. I had learned a lot about the operational activities occurring in the retail stores to manage their retail store.

Chapter 1Introduction

I. Introduction1.1 Background of the studyThe project undertaken is on STUDY OF OPERATIONAL PROCESS OF HYPERCITY. It describes about how the store manages its operational processes and the various steps that are required in the management of this process.The study gives an idea about fundamentals of the stock receiving process of the retail sector. It also illustrates the daily working procedure followed by the stock receiving department and the challenges faced by them.The study also describes about the various operational activities which helps the store to provide best service to the customers, the role of the management information system in controlling the stocks, managing the inventory and generating sales reports.

1.2 Background of the TopicRetailRetail involves the sale of goods from a single point (malls, markets, department stores etc) directly to the consumer in small quantities for his end use. In a laymans language, retailing is about transaction of goods between the seller and the end user as a single unit in small quantities to satisfy the needs of the individual for his direct consumption.Retailis the sale of goods and services from individuals or businesses to theend user. Retailing can be done in either fixed locations like stores or markets,door-to-dooror bydelivery. The retail sector due to its increasing trend gave rise to supermarkets, hypermarkets and departmental stores.Hypermarketis asuperstorecombining asupermarketand adepartment store. The result is an expansiveretailfacility carrying a wide range of products under one roof, including fullgrocerylines andgeneral merchandise. Hypermarkets allow customers to satisfy all their routine shopping needs in one trip.

Growth trends of Indian retail sectorRetail sector is the booming sector in the Indian economy. It is on the threshold of a big revolution after IT sector. The retail boom faces a strong competition from millions of stores which are easily accessible & approachable and provides services like free home delivery and goods at credit. But buying from supermarkets, hypermarkets and departmental stores like Subhiksha, Marks & Spencer etc. gives a different feeling and environment of pick and choose from variety of products and brands.A number of retail giants such as Reliance retail, D-mart, Wal-Mart are exploring the market.The retail sector of Indian economy is going through the phase of tremendous transformation. The sector is organised into two; organised retail sector and unorganised retail sector with the latter holding the large share of the retail market. At present the organized retail sector is catching up very fast in India.

Introduction to Operation ManagementThe business function responsible for planning, coordinating & controlling the resources needed to produce a companys product or services.It can be defined as the management of the conversion process, which converts the inputs such as land, labour, capital into outputs i.e. product and services.The concept of operations management is related to the optimum utilization of the resources in the best possible way.Operations also refer to the production of goods and services, the set of value-added activities that transform inputs into many outputs. Fundamentally, these value-adding creative activities should be aligned with market opportunity for optimal enterprise performance.

Operations as a Transformation Process

Operations management is about the way organizations produce goods and services. Everything you wear, eat, sit on, use, read or knock about on the sports field comes to you courtesy of the operations managers who organized its production. Every book you borrow from the library, every treatment you receive at the hospital, every service you expect in the shops and every lecture you attend at university all have been produced. This definition reflects the essential nature of Operations Management; it is a central activity in organizing things. Another way of looking at an operation is to consider it as a transformation process.Operations are a transformation process; they convert a set of resources (INPUTS) into services and goods (OUTPUTS). These resources may be raw materials, information, or the customer itself.

InputsSome inputs are used up in the process of creating goods or services; others play a part in the creation process but are not used up. To distinguish between these, input resources are usually classified as: Transformed resources those that are transformed in some way by the operation to produce the goods or services that are its outputs Transforming resources those that are used to perform the transformation process.Inputs include different types of both transformed and transforming resources.Three types of resource that may be transformed in operations are: materials the physical inputs to the process information- that is being processed or used in the process customers the people who are transformed in some wayThe two types of transforming resource are: staff the people involved directly in the transformation process or supporting it Facilities land, buildings, machines and equipment.The staff involved in the transformation process may include both people who are directly employed by the organization and those contracted to supply services to it. They are sometimes described as labour. The facilities of an organizationincluding buildings, machinery and equipment; are sometimes referred to as capital. Operations vary greatly in the mix of labourand capital that make up their inputs. Highly automated operations depend largely on capital; others rely mainly on labour.

Transformation processesA transformation process is any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides outputs for customers or clients. Where the inputs are raw materials, it is relatively easy to identify the transformation involved, as when milk is transformed into cheese and butter. Where the inputs are information or people, the nature of the transformation may be less obvious. Transformation processes include: changes in the physical characteristics of materials or customers changes in the location of materials, information or customers changes in the ownership of materials or information storage or accommodation of materials, information or customers changes in the purpose or form of information Changes in the physiological or psychological state of customers.

OutputsMany transformation processes produce both goods and services. For example, a restaurant provides a service, but also produces goods such as food and drinks.Transformation processes may result in some undesirable outputs (such as nuclear waste in the example above) as well as the goods and services they are designed to deliver. An important aspect of operations management in some organizations is minimizing the environmental impact of waste over the entire life cycle of their products, up to the point of final disposal.Extending the process-If we add a few more parts to the transformation process, we can see the key elements that operations managers need to consider. An operation is about designing services, products and delivery systems; 1. Managing and controlling the operations system.2. Finding ways to improve operations.

1.3 Company Profile

HyperCITY is one of the best retail shopping stores, supermarket and super store in India.Founded in 2006, HyperCity Retail (India) Ltd. is part of the K. Raheja Corp. Group, a leader in the Indian retail sector. K. Raheja Corp helped create modern retailing in India with the Shopper's Stop, Inorbit Mall and Crossword chains in addition to its successes in realty and hospitality.TypeHypermarket

IndustryRetailing

Founded2006

Number of Locations12

Area ServedIndia

ParentK. Raheja Corp

Websitewww.hypercityindia.com/

Table No. 1.3.1: Company Profile

HyperCITY offers its customers a dominating assortment of quality products at great value in a large, modern and exciting format. It also offers other value added services like consumer finance, ATM facility, telecom services, pharmacy, Bakery and Restaurants etc under one roof. Hyper CITY launched its first store in Malad, Mumbai, which is spread over 1, 20,000 sq ft. Today, HyperCITY has accomplished a total of 12 stores since inception and have marked its presence in cities like Mumbai, Hyderabad, Bangalore, Bhopal, Ludhiana, Amritsar and Jaipur. It offers over 44,000 products sourced from both local & global markets to choose from & boasts of quality, distinctive, dominant assortment at great value. HyperCITY promises convenience of everything under one roof & International shopping ambience that rivals the best in the world.There's more to discoverHyperCITY provides a truly international shopping experience, where customers can shop in comfort in a large, modern, & exciting environment. It offers a wide and contemporary range of innovative products, sourced from both local and international markets.Our Vision & MissionTo be an integral part of customer lives, by offering them high quality shopping experience through great products at ever better prices.Partnering For SuccessHyperCITY features the best global design, infrastructure and safety features by partnering with the best talent from around the world.Caring For the CommunityHyperCITYs commitment to the environment extends beyond energy-saving infrastructure and design.

Products provided by Hypercity:Hypercity provides an international shopping experience, where customers can shop in comfort in a large, modern, & exciting environment. With the widest range of products sourced from around the world, Hypercity is India's favourite Hypermarket. To make shopping easy and comfortable Hypercity Segregates its Store in 8 sections. Those are, 1) Foods & Grocery: It contains vegetables, fruits, packet food, staples, meat & fish, beverages, snacks, ready to make products, spices etc.2) Health & Beauty:It contains fragrances, hair care, skin care, baby care, cosmetics, personal care, dental care etc.3) Home &Furniture:It contains, home ware, home linen, home dcor, furniture, stationery, toiletries, cleaning needs etc.4) Fashion:It contains all apparels like men and women clothing, baby and kids ware, jewellery, men and women accessories, foot ware, etc.5) Electronics:It contains electronic appliances like, cooler, iron, fans, music players, air conditions, food makers, pen drive, printers etc.6) Toys: It contains soft toys, remote control cars and gadgets, brain boosting games, dolls, beach toys, puzzles and board games etc.

7) Sports & fitness:It contains health proteins, gym equipment, cycles, swimming accessories, sports accessories, indoor games etc.

Services provided by HyperCityHyper CITY Extended Warranty : Our electronics come with a unique feature. Peace of mind! Pay a nominal fee. We'll cover mechanical & electrical breakdown. Get the benefit of genuine parts. Free parts and no labour charge. Hassle free repairs. Inflation proof. Free replacement if not repaired.

Accepts all International Cards:Hyper CITY has tied up with ICICI bank for swiping international cards of foreign nationals on separate EDC machines. The following are the benefits of the facility to these customers: The customer can choose to make payment in home or foreign currency. The conversion from foreign currency to INR will be at the current prevailing rate. Master/Visa will not charge any extra charges to the customer. The customer gets a bill for the exact amount from the card issuing bank, in home currency, on a charge slip.

Home Delivery:Home Delivery: Hyper CITY is committed to extending high standards of customer service even beyond shopping through our Home delivery service. Our aim is to delight our customers through timely delivery of goods, every time.Hyper CITY's home delivery service is aimed at setting the industry benchmark. The mantra of 'Delivery on Time-Every Time' is what underlines the service. Also to ensure that the service standards are raised and not compromised Hyper CITY has decided to manage the process in-house.

Home Delivery Team: Home delivery are handled by a highly capable, friendly and well groomed team comprising of delivery people, installers, customer service associates etc. who would be adapt in handling installation of goods ranging from furniture to electronics and health equipment etc. Exchange PolicyWe are pleased to offer exchange within 14 days of your purchase on production of the original cash memo. The product should be unused, undamaged, in the original packaging and in saleable condition. Jewelry, watches, cosmetics, mobile phones, MP3 players, innerwear, swimwear and any altered merchandise will not be exchanged. All appliances & electronics items will be exchanged subject to the warranty & guarantee terms of the manufacturer, with a valid receipt. Furniture items will be exchanged or refunded in any circumstances unless it has a manufacturing defect in the first year of its purchase and if it is not repairable by us once the furniture has been assembled at the customer's address.Repairs & Warranty Comprehensive after-sales services are provided through an exclusive Service Centre backup facility, on products that have a guarantee or service warranty.Titan EyeTitan Eye offers wide range of stylish and contemporary eyewear through exclusive optical stores across the country. They provide zero-error eye testing, international designs and style trends, wide range of distinctive, attractive frames, scratch-resistant lenses in a friendly environment with specially trained retail & clinic staff at selected Hyper CITY stores.

HYPER CITY BRANDSHYPER CITY has a wide array of exclusive brands across all categories. These brands ensure increased value to our customers through superior product offerings, quality and uniqueness at great prices.FOOD & GROCERYEveryday

Everyday is dedicated to bring wholesome food to your family at great prices. Our products are packed under hygienic conditions and are priced to offer real value, every day. Hyper CITY encompasses everyday foods like cereals, spices, flour, pulses, dry fruits and other products

Fresh Basket

Every Fresh Basket product guarantees freshness and quality on a daily basis, with all the goodness locked in. Fresh Basket offers the freshest selection of meat, seafood, fresh produce, freshly baked breads, specialty bread, etc.

Waitrose

Waitrose Voted the top supermarket chain in UK. Exclusively available at Hyper CITY. Come and taste the best of teas, coffees, juices, jams and more.

HOMEEBANO

Discover stylish essentials for your home with Hyper CITYs exclusive brand ebano. ebano presents a selection of basic products with a modern appeal. Bringing your home to life with contemporary designs, vibrant colours, great value & is present across Utensils, Cutlery, Bakeware, Crockery, Glassware, Pots'n'pans, Implements, Bed linen, Towels, Cushions, Table linen, pillows and more.

AVORIO

Make your home a more luxurious place with Avorio, the exclusive brand from Hyper CITY. AVORIO offers exclusive, versatile and classic designs to enhance your lifestyle. Avorio spans Implements, Pots'n'pans, Glassware, Cutlery, Crockery, Towels, Bed linen, Table linen, Duvets & quilts and more.

FASHIONJOOJOOBS

Discover Fashion for your little ones!! The Joojoobs range of comfortable garments for infants includes designer infant wear and infant western wear. The range combines the finest quality fabrics & vivid colors to create a high value range of infant wear.

CITYstyle

CITY Style Offers the latest trends in clothing in the market, at prices that are affordable.

RIVERinc

A range of quality denims for men, ladies and kids. The range comprises of basic denims, fashion denims, tees, cargos, denim shirts and jackets.

APPLIANCESTECHNIX

Our Technix range of appliances will be available across microwaves, cook-tops and mixer-grinders.

SPORTSRALEIGH

The Raleigh Series of bicycles are available exclusively at Hyper CITY. Raleigh is one of the worlds biggest brands in Bicycles. Raleigh bicycles are simple, elegant, efficient and fun. They are designed with care and fitted with latest technology. Raleigh has the following varieties in bicycles - Mountain Sport, Platinum, Juvenile, Toy cycles, etc.

MAXIT

The Maxit line of sports equipment and apparels is available exclusively at Hyper CITY. Maxit stands for - Maximum Range, i.e. it offers a superior line up of sports gear at great value. Maxit is available across sports categories like cricket, football, basketball, volleyball, boxing and baseball.

Table No. 1.3.2: Hypercity Brands

AWARDS & RECOGNITIONS

International Awards

HyperCITY, Mumbai won The Award of Merit for Large Format Specialty Store at the United States International Design Awards in New York on 15th January, 2007. This is the first time that an Indian Company has received an award like this. This was the 36th awards function for the Institute of Store Planners/VM+SD International Store Design, New York.

HyperCITY was voted as India's top retail store by Retail Week, a leading U.K. magazine revered by retailersworld wide. It was voted as the 100 Shops You Must Visit, across the world and was featured amongst internationally renowned stores such as Bloomingdales New York, Selfridges U.K, Louis Vuitton Paris and Carrefour Shanghai. The special report carried weightage for innovation and creativity in retail, as well as recognizing retail excellence. The report was based on a survey carried out by Retail Week amongst key players in the retail industry consisting of businessmen, analysts, retail consultants, editors and top shoppers around the globe.

Domestic Awards

Coca Cola Golden Spoon Awards 2009 - Images award for excellence in food retailing awarded Gourmet city as "Most Admired Food Retailer of the Year" & "Innovative Retail Concept".

Star Retailer Awards awarded Gourmet city "Debutant Retailer of the Year 2008".

The Bold 100 - IDG India CIO magazine has recognized Shoppers Stop and HyperCITY as a recipient of 2008 CIO 100 Award. The annual award program recognizes those executives and organizations those are playing not just to survive, but to win and embrace great risk for the sake of great reward.

Most Admired Retailer of the Year for Retail Design & Visual Merchandising - Images India Retail Forum, 2007.

Star Retailer - Value Retailer of the Year 2007.

Asia Retail Congress - Reid & Taylor Retailer of The Year (Hypermarket)

1.4 Statement of problemThe present situation in the market scenario is the survival of the fittest. Thus in orderto survive in the market for a longer time the retail store and its people must concentrate on the operational processes carried out in the store on daily basis.This study helps to determine the importance that must be given to supply chain, ordering, purchasing, managing inventory, refilling and merchandising the store in order to have growth in sales, to study the Management information system, to determine the acceptance of the system by the employees and improve the understanding of the employees towards it.

1.5 Need of StudyThe findings of the study will benefit the operations area of retail sector and the people related to it. It would advantageous as the study covers the practises followed by the retail store, their comparison to find out the best processes and its benefits. It will also prove beneficial to identify to identify the processes that will prove preeminent to be followed in order to increase the sales of the store. It will help understand the significance of the receiving process in the retail sector which is often overlooked.The study will benefit the retail sector to understand the need of an effective Management information system and other technologies to operate the store.

1.6 Scope of the StudyMany factors contribute to a retailer stores overall performance. Literature indicates that retailperformance should be judged on multiple dimensions: based on customer perception, based on operational efficiency, and based on financial performance.The present research study is limited to performance evaluation of Hypercity based on operational processes & their efficiency, examining the current practices of the operations department of Hypercity and comparing the best operational processes.This study will also be useful as follows:

The study is limited to the employees of Hypercity,Vashi. Therefore, targeted employees are the one who use the operational processes on daily basis. This study will be a learning device for operation student. It would be useful to learn the various retail operational departments and their processes. The study will show how MIS proves useful in managing the inventory, for stock receiving, sales analysis and creating sales & forecaster reports.

1.7 Objectives of the study To understand the role of operational department in the growth of HyperCity. To study the various operational processes used to manage the store. To study the working of the stock receiving department of Hypercity To study the role of MIS in operational processes.

Chapter 2Research Methodology

II. Research MethodologyResearch methodology is a way, to systematically solve the research problem. Research in common place refers to a search of knowledge. Research is an original contribution to the existing state of knowledge making for its advancements. This project requires a detailed understanding of the concept Operation Management. Therefore, firstly we need to have a clear idea of what are the operational departments, how they are managed in Hyper city, what is the operating process in which store manages its operations. The operation management involves managing inventories, receivable and payable and managing the information of inventories. Therefore one also needs to have a sound knowledge about purchase order, invoice and the management information system.And, in the end, suggestions and recommendations on ways for better management and control of operations are provided.2.1 Research designA research design is purely and simply a plan for a study that guides the collection and analysis of data.A good research design has the characteristics like problem definition, specific method of data collection and analysis. Time required for research project and estimate of expenses to be incurred. It mainly calls for decisions on research approaches.The research will be descriptive in nature and survey is used as data collection technique will be conducted on already existing employees. Questionnaire was used as a data gathering tool.Descriptive researchDescriptive research refers to research that provides an accurate portrayal of characteristics of a particular individual, situation, or group. Descriptive research is also known as statistical research.These studies are a means of discovering new meaning, describing what exists, determining the frequency with which something occurs, and categorizing information.In short descriptive research deals with everything that can be counted and studied, which has an impact of the lives of the people it deals with.Exploratory ResearchExploratory research is a type of research conducted for a problem that has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects.The results of exploratory research are not usually useful for decision-making by themselves, but they can provide significant insight into a given situationExploratory research can be quite informal, relying on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies.

Research DesignResearch TypeExploratory, Descriptive

VenueHyperCity,Vashi

Research InstrumentQuestionnaire, Observation

Research ApproachSurvey Method

Sample SizeEmployees-25

Type of QuestionnaireStructured and unstructured

Types of QuestionsOpen as well as close ended questions

Sampling Plan

Sampling UnitRespondents are employees of receiving department

Sampling Size25

Sampling ProcedureNon-random purposive sampling

Contact MethodPersonal

Data Collection

PrimaryQuestionnaire, Observation

SecondaryWebsite

Data ProcessingA number of tables to be prepared to bring out the main characteristics of the collected data. Inferences to be drawn from the data collected.

Table No.2.1.1: Research Design2.2 Primary DataData which is collected for the first time is called primary data. In the study primary data includes the data which is collected from the employees directly with interaction. These employees are the ones working in the operations department of the store. The study includes data got with personal interaction.All data used in evaluation and market studies should be current, relevant, reliable, accurate, and conceptually correct. This article presents a discussion of each of these terms and their significance in the context of the data and in the analysis.The researcher needs to be able to recognize the challenges, understand its significance and evaluate the applicability of that data in the analysis.

2.3 Secondary DataSecondary data is data collected by someone other than the user. Secondary data is the data that have been already collected by and readily available from other sources. Information from secondary sources, i.e., not directly compiled by the analyst; may include published or unpublished work based on research that relies on primary sources of any material other than primary sources used to prepare a written work. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data cannot be obtained at all.Secondary data has been gathered by others for their own purposes, but the data could be useful in the analysis of a wide range of real property. In general, secondary data exists in published sources. Common sources of secondary data for social science include censuses, organisational records and data collected through qualitative methodologies or qualitative research.

2.4 Sample designSampling is a practice a researcher uses to draw data on people, places, or things to study. Sampling allows statisticians to draw conclusions about a whole by examining a part. It enables us to estimates characteristics of a population by openly observing a portion of the entire population. The whole that the researcher wants to know something about is the population is called a sample.2.4.1 Target PopulationPopulation generally refers to the total of the items or units in any field of research. The target population is the Employees working in operations department of Hypercity.2.4.2 Sample SizeSample size determination is the act of choosing the number of observations or replicates to include in a statistical sample. For doing the research, sample of 25 employees were taken 2.4.3 Sampling Method: Purposive Sampling (Non-random)The target population are the employees of Hypercity who are a part of the operations department. So, for the research to be effective the sampling method used was the non-random purposive sampling.This sampling technique provides a focussed effort in gathering rich data to answer the research question. It allows the researcher to identify the specific individuals who have the information and experience in that area related to the research question. The researcher is then able to focus on collecting data from this selected sample of people.

2.5 Methods of data CollectionThe following sources have been sought for the preparation report:Primary data:-Data that is collected for the specific purpose at hand is called as primary data. Information relating to the project was collected during formal and informal discussions with the operation Manager and Staff of Hyper city.a) QuestioningHere, the data is collected is by asking questions from whom we are supposed to have desired information. The question may be asked in written or oral. A format list of question is often called questionnaire. The questionnaire consists of close-ended and open ended questionnaire. The study includes questionnaire of 6 questions.b) ObservationWhen data are collected through the observation, the researcher do not ask the question, instead they keep track of the research design which is used in the necessary data collection in one or both of these two methods.Secondary Data:Probably the quickest and the most economic way for researchers to find out the possible hypothesis are to take advantage of the work of others & of their own earlier efforts. In a relatively short time, researcher can scan a large volume of possible data. It is generally collected through secondary sources like newspapers articles, magazines, journals, internet, earlier reports & surveys.Secondary data highlights the contextual familiarities for primary data collection. It provides rich insights into the research process. Secondary data is collected through following sources: Website Journals Magazines Leaflets2.5.1 Instrument of data collectionThese include Questionnaire, Interview, Observation and Reading. Essentially the researcher must ensure that the instrument chosen is valid and reliable. The validity and reliability of any research project depends to a large extent on the appropriateness of the instruments.QuestionnaireThis is a data collection instrument mostly used in normative surveys. This is a systematically prepared form or document with a set of questions deliberately designed to elicit responses from respondents or research informants for the purpose of collecting data or information. It is a form of inquiry document, which contains a systematically compiled and well organized series of questions intended to elicit the information which will provide insight into the nature of the problem under study. It is a form that contains a set of questions on a topic or group of topics designed to be answered by the respondent. The respondents are the population samples of the study. The answers provided by the respondents constitute the data for the research.Structured questionnaires They are those in which some control or guidance is given for the answer. This may be described as closed form because the questions are basically short, requiring the respondent to provide a yes or no response, or checking an item out of a list of given responses.

Unstructured questionnaire This type of questionnaire is also termed as open-ended or unrestricted type of questionnaire which calls for a free response in the respondent's own words. The respondent frames and supplies the answer to the question raised in the questionnaire. It also constitutes questions which give the respondent an opportunity to express his or her opinions from a set of options.ObservationThe study of photographs, objects, computer software and instruction leaflets fall within this type of data collection procedure. The procedure should be unobtrusive to enable informants to share their reality directly with researchers. It is creative and captures attention visually. The presence of a photographer or the video technician may be intrusive and influence responses.Participant ObserverIn this type of observation the researcher lives as a member of the subjects of the study while observing and keeping notes of the attributes of the subject that is being researched so that he can directly experience, the phenomenon being studied. Non-Participant ObserverIn this approach the researcher does not live as a member of the subjects of the study. The researcher watches the subjects of his or her study, with their knowledge of his status as a researcher, but without taking an active part in the situation under study.

2.6 FieldworkDuring the field operation, all possible efforts were made to minimize the errors so that the data collected may not provide wrong information. Caution was taken at every step while the respondents were filling up the questionnaire. A lot of time was given to the respondents so that they could understand the question asked.2.7 Data Analysis TechniquesThere are two main methods of Data Analysis: Qualitative Data Analysis and Quantitative Data Analysis.The Qualitative method is a conception of working procedures associated with that the researcher himself/herself is part of the social reality being analyzed. The data collection and analysis is performed at the same time and in interaction. Therefore, such studies have high flexibility.The Qualitative method aims to accomplish a complete description of the investigated area, but it tends to include smaller populations than quantitative investigations. Advocates of quantitative studies therefore criticize the qualitative method because of its subjectivity, since the gathering of facts and the results from the analysis to a very high extent is dependent on individuals.Qualitative research is a set of research techniques, used in which data is obtained from a relatively small group of respondents, and not analysed with statistical inferences.In this Project Qualitative Data Analysis technique is used.

2.8 LimitationsRelatively small sample sizeThe people required for conducting survey associated with the questionnaire are simply the employees working in the operations department itself who have gain expertise in it. Therefore, the sample size is relatively small.Frequent ErrorsErrors can occur during the transcription process. Different people may interpret comments differently.Inability of the respondent to provide informationDespite of the willingness to cooperate, the employees were unable to give accurate information on questions asked. In other cases, the employees were unable to remember the accurate facts.

Chapter 3Operational Processes at Hypercity

3.1 Operational Departments of Hypercity3.1.1 SST Stock Service Team3.1.2 Receiving3.1.3 Data Entry3.1.1 Stock Service TeamStock service team is the one which manages the stocks which are ordered by the buyer from the vendor and is delivered by the vendor. They are responsible for classification of the stocks or inventory by assigning code numbers for identification. This code assignment is concerned with the Stock Keeping Unit.1. Stock Keeping Unit- SKU is a unique combination of all components that are assembled into purchasable items. Therefore, any change in packaging or product is a new SKU.1. SKUs used at HypercitySKU is a combination of units for e.g.: 10003256; its of 9 digit which uniquely identifies the specific items. Whenever an item comes into the store the unique SKU is given by which the item is being identified. Different code or SKU is given to different items according to their nature, type and characteristics. All the entries are made in the system when it comes in the store and all the items along with their SKU numbers are stored in the system so that there should not be any confusion while evaluating and managing the inventory.1. International Article Number (EAN)An EAN-13 barcode (originally European Article Number, but now renamed International Article Number even though the abbreviation EAN has been retained) is a 13 digit (12 data and 1 check) bar-coding standard which is a superset of the original 12-digit Universal Product Code (UPC) system developed in the United States. Stock service team is also responsible for managing following tasks:1. Weigh Calibration & Scanning1. Ticketing(Shelf-RMP)1. Price checking

1. Weigh Calibration & ScanningCalibration of weights, means determining its exact mass, which is done by comparisons between reference and test weights. Weight calibration is an intensive and accurate process, which is likely to become even more important as more industries performing routine tests of their weighing equipment to improve their processes, herewith reducing quality issues, thus saving money.The receiving team loads its purchase order on a handheld scanner device. This helps reduce manual entry (and its accompanying errors). Once the items are received, the warehouse management system prints out a 'put-away' document. This document is now available on the scanner and guarantees that a DC staffer puts items away correctly. Finally, when it is time for inventory to be moved to a store a 'pick' document is assigned to a 'picker' using a wireless hand-held scanner. This document shows the exact location of a product and the number of pieces to gather. If an item is not on the pick list an error message informs the picker.1. TicketingTicketing is much more essential than its looks because everyday new products come on to the floor. The new SKU no. is allotted to them & therefore its necessary to be cautious so that all problems which are related to wrong inventory can be eradicated. A ticket generally consists of:-1. Product name & size.1. Offer product category.1. Stock keeping unit (SKU).1. European article number (EAN).1. Bay number.1. Vertical height of shelf in bay from downwards to upwards.1. Horizontal location number of shelf from left to right.1. Facing.1. Height.1. Depth.1. Maximum retail price (MRP).1. Hyper CITY price.A Hyper CITY ticket can be best understood through following diagram:

Figure No. 3.1.1: Hyper City flash Ticket

Key points to remember about ticket1. If our price is reflected in:1. RED COLOUR it indicates markdown (M).1. YELLOW COLOUR it indicates promotion (P).1. GREEN COLOUR it indicates new launch (N).1. Offer product category is represented by various alphabets which represents following:-2. P Promotion.2. R Regular.2. G General.2. M Markdown.2. N New.2. A Active.

1. Price checkingIt is a process of checking the prices of the products whether the prices of the SEL(Shelf Edge Label) prices are matching with the system or not. If the prices are not matching then SHL is changed with new prices, this process is known as price checking. By this process inventory is properly managed, so this process helps in managing the inventory.

3.1.2 Receiving DepartmentThe department which perform the function of Receiving of the product from different vendors as quality prescribed by the Buyers is known as receiving department.Receiving department plays the major role in managing inventory. During receiving from the back gate the employees manage inventory and place the inventory in the proper way at their places. SAV, RTV, FREE GIFTS are also managed by the inventory management team.1. Key terms while receiving stocks from vendorPurchase OrderA purchase order is a document sent to a supplier or vendor, authorizing shipment of a product to the customer at a specified price and terms. The creation of a purchase order creates a legally binding contract which cannot be changed without the consent of both parties. A customer may sometimes create an open or standing purchase order which allows the customer to order quantities of the product(s) from the vendor over a period of time (usually a year) at the specified price. Open POs are often used for services which occur over a period of time.The typical sections of a purchase order are:1. Date1. The purchase order number1. Names and addresses of both the customer and the supplier/vendor.1. Description of the items being ordered, the cost for each, and the total amount.The PO number is an important reference for both the customer and the supplier Also Known As: Purchase Requisition.Companies use purchase orders for several reasons:1. Purchase orders allow buyers to clearly and explicitly communicate their intentions to sellers1. Sellers are protected in case of a buyer's refusal to pay for goods or services1. Purchase orders help a purchasing agent to manage incoming orders and pending orders1. Purchase orders provide economies in that they streamline the purchasing process to a standard procedure

Figure no. 3.1.2: Format of Purchase Order

Commercial lenders or financial institutions may provide financial assistance on the basis of purchase orders. There are various trade finance facilities that almost every financial institution allows to business people against purchase orders such as:Before Shipment credit facility1. Post Shipment credit facility1. Trade Finance facility1. Foreign Bill Purchase credit facility1. Bill retirement credit facility1. Order ConfirmInvoiceAn invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer.Payment terms are usually stated on the invoice. These may specify that the buyer has a maximum number of days in which to pay, and is sometimes offered a discount if paid before the due date. The buyer could have already paid for the products or services listed on the invoice.A typical invoice contains1. The word invoice (or Tax Invoice).1. A unique reference number (in case of correspondence about the invoice)1. Date of the invoice.1. Credit terms.1. Tax payments if relevant (e.g. GST or VAT)1. Name and contact details of the seller1. Tax or company registration details of seller1. Name and contact details of the buyer1. Date that the goods or service was sent or delivered1. Purchase order number (tracking nos. requested by the buyer to be mentioned on the invoice)1. Description of the product(s)1. Unit price(s) of the product(s) (if relevant)1. Total amount charged (optionally with breakdown of taxes, if relevant)1. Payment terms (including method of payment, date of payment, and details about charges for late payment)

Figure no. 3.1.3: Format of Invoice

Stock receiving processes1. FMVFair market value (FMV) is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market.Fair Market Value (FMV) assumes that a buyer and seller are aware of the facts and that the price in which the property exchanges for is not the result of a forced sale.The price that a given property or asset would fetch in the marketplace, subject to the following conditions:1. Prospective buyers and sellers are reasonably knowledgeable about the asset; they are behaving in their own best interests and are free of undue pressure to trade.2. A reasonable time period is given for the transaction to be completed.Given these conditions, an asset's fair market value should represent an accurate valuation or assessment of its worth.1. DSDDirect Store Delivery is the term used to describe a method of delivering products from supplier/distributor directly to a retail store, thereby bypassing a retailers distribution center. DSD is an alternative distribution model to centralized distribution and tends to be used extensively in the food industry for fresh products such as milk and bread where minimizing the number of days in the supply chain is a key concern.

Figure no. 3.1.4: DSD network

1. ADSDAuto Direct Store Delivery is also the method of delivering products from supplier/distributor to the retail store but in this process the stock is not scanned and brought directly to the floors. The number of products or amount of stock sold on the floors is recorded and the data is given to the vendor who then generates a bill of stock which is sold.1. Purchase Order ReceivingThe purchase department prepares a purchase order for the supply of materials. The purchase order is a contractual agreement with the supplier for the supply of materials. Purchase order is prepared in five copies, the original copy is sent to the supplier, the second copy for receiving department, third for account department, fourth for initiating department and fifth one is retained in the purchasing department for reference.The receiving department performs the function of unloading and receiving of materials dispatched by the supplier. The receiving department verifies the materials with the help of a delivery note and the copy of the purchase order after receiving the delivery of goods. The supplier sends detailed information and an invoice of the materials supplied by it. It has to verify and check the quantity and physical condition of materials by making a comparison of the purchase order and the materials received.RECEIVING PROCEDURE:1. Unloading and checking the vehicles- In hypercity the number of containers or package of materials unloaded from the carrier's vehicle is checked against the carrier's manifest (freight bill or delivery order) to ensure that all the full consignment or order has been delivered. All packages of materials are also inspected for external damage; any damage found is inspected by the carrier's representative and noted on the receipt where the receiving clerk signs. Failure to follow this procedure before accepting a shipment or delivery can relieve the carrier of all liability, except liability for concealed damage not evident until the container is unpacked.1. Unpacking and inspecting the material-A receiving clerk is held responsible for three step verification.1. First, he or she checks the material received against the supplier's packing slip and against a copy of the firm's purchase order to verify that the correct items have been shipped.1. Second, the quantity of the shipment is verified in the same manner.1. Finally, the clerk inspects the general condition of the material to determine whether any external damage was incurred during shipment.1. Completion of the receiving report- In hyper city the paperwork system used varies significantly from company to company. In some companies, a multipart receiving report form is produced as a by-product when the purchase order is generated. When the receiving clerk has finished the inspection, he or she completes the form by recording the quantities of the items received, indicating those that are still open, and noting any other useful information on the form. In other firms that utilize a computerized purchasing/inventory system, the clerk records the receiving data on the receiving report or a short form which a data entry clerk keys the data directly into the computer system. The system then updates the order and inventory records and may also generate a receiving report in either hard copy or electronic form. Regardless of the system used, four operating groups generally require notification that the material has been received: the requisitioned, the purchasing department, the accounting department, and the inspection department if technical inspection is required.1. Delivery of the material- For non-stock materials, the receiving department is usually responsible for delivery - directly or via an internal delivery service. In the case of inventory materials, the practice varies. In some firms, the receiving department is responsible for internal deliveries, while in others this function is performed by an internal transportation service. In still others, stores clerk are responsible for picking up their own materials. Upon delivery of the materials, the recipient customarily signs the receiving report or a delivery receipt, relieving the receiving clerk of further responsibility for the material.It should be noted at this point that in some firms not all delivered materials go through the receiving operation, depend on the inventory and purchasing method applied by the company, e.g., when a company apply just in time purchasing shipment, sometimes the delivery is directly to the point of use, so the receiving is bypassed.1. Checking and Passing Bills for Payment-When the invoices are received from the supplier, they are sent to the store and accounting departments for the verification of the quality and price of materials mentioned in the invoices. After checking the required documents, the store department requests the accounting department for making the payment of the invoice to the supplier.

Chart No 3.1: Purchase Order Receiving ProcessPO receiving Flowchart

3.1.3 Data Entry1. Bill CheckPayables shares purchase order information from your purchasing system to enable online matching with invoices. Match your billed (invoice) items to the original purchase orders to ensure that you pay only for the goods or services you ordered. If you are billed for an item over the amount and quantity tolerances you define in the Invoice Tolerances window, during Approval, Payables applies a hold to the invoice which prevents payment.1. Quantity Difference noteWhen you match an invoice to a purchase order, payables ensures that you match only to purchase orders for the supplier on the invoice and that the purchase order and invoice currency match.Approval validates the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exception invoices. If an invoice has a hold, you can release the hold by correcting the exception that caused Approval to apply the hold and then resubmitting Approval. You can manually release certain invoice holds even if you have not resolved the matching error condition.Approval ExampleFor example, you have three invoices on matching hold.

Invoice 1: The first invoice is on matching hold because the quantity billed exceeds the quantity received.Your receiving department receives the goods and records the receipt information. Your invoice now matches the receipt and Payables releases the hold when you submit Approval.

Invoice 2: The second invoice is on matching hold because the invoice price exceeds the purchase order shipment price.A supplier sends a credit to correct the amount due on a previous invoice. After you enter the credit and match it to the same purchase order, your invoice now matches the purchase order and Payables releases the hold when you submit Approval. Use Approve Related Invoices in the Invoice Actions window to submit Approval for both the credit and the original invoice.

Invoice 3: The third invoice is on matching hold because the quantity billed exceeds the quantity ordered.You increase your tolerance levels using the Tolerances window. Your invoice now matches your receipt and purchase order within your newly-defined tolerance levels and Payables releases the hold when you submit Approval.1. Bill MatchingWhen you match an invoice to a purchase order, Payables creates invoice distributions using the purchase order distribution accounting information. You cannot delete invoice distributions created through matching. If you incorrectly match an invoice to a purchase order, you must cancel the invoice or reverse the individual distributions to cancel the match.

3.2 Other daily operational processes at Hypercity

PICS-Perpetual inventory Count SheetPICS is a process of calculating variance of the products and preparing a sheet of physically counted inventory that sheet is known as PICS. The sheet which is prepared matched with the system the difference is calculated is known as variance. This is a process of managing inventory by physically counting products of each and every SKU and then matched with the system showing inventory of each SKU.FMR check- Floor Movement RegisterIt is the register always placed on the floor to check out the employees scheduling. This floor register is placed for the purpose, if any employee has to go from floor; he/she have to register themselves on floor register. By this anybody would come to know that which employee is missing from his/her place. Noticed where they had gone and at what time, this process is known as FMR check.

OOS- Out of StockWhen system show that this product have zero inventory then we can say that product is out of stock this is known as Out Of Stock and then purchase order list is prepared and send to the Buyer.Negative InventoryWhen inventory or stock is shown negative in the system that inventory is known as negative inventory. To check negative inventory, if there are two products having different SKU numbers and different bar codes one product is sold on the other barcode. For example: If A product gets finished and B has the inventory of two units. Product A is of Rs 100 and Product B is of Rs 200 somebody by mistake Product B is kept on A SKU by which pricing mistake would be there and due and due to which product B would be billed at price A by which earlier system shows the inventory of A was zero but now after billed inventory of product A gets negative this is known as negativeinventory. A special procedure is followed to adjust negative inventory.RefillingIt is a daily activity process of filling the goods in their shelves so that product should be placed on bulk quantity that is known as refilling.Visual MerchandiseIt is a process of managing the store merchandising on unrelated Product to attach customers by keeping flowers on cooler this process is known as visual merchandising so that visually it looks good. There is a general tendency of the buyers that they get attracted to those things which are good looking in their outward appearance. So, it is very important for any retail store to create pleasant visual merchandise which shall catch the eye of the customer and they should get tempted to enquire about it.Code ManagementIt is basically to check the expiry date of the products. In this process, it is calculated for next three months and the product which has nearest expiry date is kept in front and rest are placed sequentially behind it. The products which get expired are taken to the back store and their bar codes are changed with new expiry dates if those products are of Hypercity brand. Code management team fills a form and makes a full report that how much products are getting expired and given to the receiving department. By this way expired inventory is removed out from the floor.1. First step to collect or to make the monthly SKU list from 1st to 30th in which coding have to do.1. A file is made in which it is calculated for the next three months and according to that sheet is prepared. The main focus of the code management team is on the latest months expiry.1. Last two months expiry list put on the MMS so that expiry would be updated and every one would get aware. But for this month expiry a special list is prepared and that list is sent to the buyers so to take further decisions.1. If the product would not satisfy RTV criteria then it costs the company, due to which BOGOF (BUY One Get One Free) offer is created due to which some price would be received by the company rather to get Zero amount.Floor WalkIt is a process of checking the Hygiene, ticketing, merchandising etc that whether the products are placed correctly or not, this process of checking out positive and negative points by taking a walk on the floor is known as floor walk.3.3 Operational Processes for Managing damagesSAV- Stock Adjustment voucherIt is basically used when Product gets defective due to any reasons (expiry, broken, leakage etc.) and it has no usage value then voucher is filled to adjust that stock which is removed from the inventory that is known as Stock Adjustment Voucher.RTV- Return to VendorReturn to vendor, vendor claims, and vendor returns all refer to the act of filing a claim against your vendor for damages, shortages, or incorrect products in their product shipment. RTV is when you file a claim against your carrier for losses or damages that they caused in transit. It is a process of Hypercity under which damaged products are returned to the vendor.At Hypercity, all the products which are damaged or needs to be sent back to vendor for reasons like defective/bad quality/wrong price, etc are collected at one allocated place in the section and at 6:00 pm daily the details of the same is entered in the return to back store memo and handled over to the receiving manager.When to Return to Vendor1. If your vendor loaded the trailer and did not allow the carrier to inspect it, then you would use the return to vendor process, rather than filing a concealed damage claim. Carriers typically have the right to inspect a load when it is handed off to them.1. If your vendor sent you the wrong product.1. If you need to make a return to your vendor due to your own ordering error (in this case the vendor may charge you restocking or administrative fees).The Return to Vendor Claim ProcessThe stores responsible individual should submit the RTV claim via email, mail, or fax to ensure that they have a paper trail. To ensure that they have included all necessary information, they use a RTV claim form. This vendor claim form is sent to the vendor and a copy is sent to the companys accounts payable department. This ensures that your company does not pay the invoice.Vendor Return DetailsWhen you file the vendor return claim, collect the following information from the purchase and provide them with your claim:3. Claimant contact information3. Carrier contact information3. Shipper contact information3. Reason for vendor claim3. Purchase order number3. Bill of lading number3. Delivery receipt a copy is acceptable3. Load date3. Ship date3. Seal number3. Quantity3. Description of the product3. Value per unit3. Total valueReturn to Vendor Supporting DocumentsYou should also include the following documents to support your vendor claim:3. Original shipment invoice3. Notification of loss3. Delivery receipt (copy is acceptable)3. Invoices for repairs or replacements3. Copies of request for inspection required if claiming damaged product or concealed3. Inspection report, if completed3. Waiver of inspection by carrier3. Explanation of how losses were calculated3. Photographic evidence of any damage3.4 Management Information SystemMaintaining such a huge store is much difficult process for its management team but this seem to be possible because of their effective management information system (MIS).A management information system (MIS) can be defined as a system that:1. Provides information to support managerial functions like Planning, organizing, directing, controlling.1. Collects information in a systematic and a routine manner which is in accordance with a well-defined set of rules.1. Includes files, hardware, software and operations research models of Processing and storing, retrieving and transmitting information to the users.A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solving business problems such as costing a product, service or a business-wide strategy.Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. The term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems.An effective MIS has the following objectives1. Facilitate the decision making process by furnishing information in the proper time frame. This helps the decision maker to select the best course of action.1. Provide requisite information at each level of management to carry out their functions.1. Help in highlighting the critical factors to the closely monitored for successful functioning of the organization.1. Support decision-making in both structured and unstructured problem environments.MIS systems at HypercityThe MIS systems at Hypercity are deployed by JDA software solutions. They deployed an advanced store replenishment solution that helps them to replenish the stocks back to the shelf at a rapid pace.3.4.1 Distribution centre Management System3.4.2 MMS Inventory Count System3.4.1 Distribution Centre Management SystemThe receiving department uses the Distribution Centre Management System to keep records of the stocks received by the receiving department of Hypercity. This MIS system is useful in keeping the records of inventory and the details of authorised person accepting the inventory from the vendor.Distribution Center Management System (DCMS) is a user friendly Warehouse Management System (WMS), designed to track the activities performed in a Distribution Center (DC)/ Warehouse. It automates the entire process flow of receiving, managing and shipping goods to customers from the warehouse. DCMS solutions are designed for both large and small scale businesses.DCMS helps warehouses to remove the risk of stock pile-up, stock outs, pending orders and loss of sales due to customer dissatisfaction.

Figure No. 3.4.1: Distribution centre Management SystemA typical list of modules for DCMS can be as follows:1. receiving1. put-away1. order processing1. replenishment1. pulling1. restocking1. picking1. validation1. sorting1. shipping

Features of a DCMS also have the following:1. crate management1. supervisory control1. reports

3.4.2 MMS Inventory Count SystemHypercity uses a Merchandise Management System for generating their daily sales and inventory report. The leading host transaction solution for the IBM iSeries environment, JDA Merchandise Management System / MMS offers a short implementation timeframe to quickly enable retailers to drive sales, margins and cash flow by getting the right products to the right place at the right time.The application suite includes the following:1. Inventory Control and Procurement1. Buyers Workbench1. Vendor Management1. Merchandise Receiving, Allocation and Replenishment1. Distribution Center Management1. Price Management1. Promotional Management1. Financial ControlA system of records maintained by controlling department which reflects physical movement of the stock and their current balances. The perpetual counting system can save money, increase accuracy of the count, and reduce disruption in your operation during the count.PICS is a process of calculating variance of the products and preparing a sheet of physically counted inventory that sheet is known as PICS.Once the physical count of the stock is completed during the receiving process, the team has to carry out inventory count in the system.

Steps involved in Inventory Count System:

Purchase Order Receiving on the Hand ScannerIn addition to being able to receive items for which Purchase Orders have been raised on the touchscreen, items such as raw materials (using an EAN128 barcode) and any Dry Goods items can be received using our Purchase Order Receipt application for the handheld scanner.Using the handheld scanner for raw material receipt allows each case scanned to be recorded as a separate item and the weight, pack date and product are all stored instantaneously. The scanner will allow for the selection of Purchase Orders to receive against and even allow items to be moved from one Purchase Order to another if a mistake has been made.

Figure no. 3.4.3: Handheld Scanners

At Hypercity, when a product arrives at the DC, the receiving team loads its purchase order on a handheld scanner device. This helps reduce manual entry (and its accompanying errors). Once the items are received, the warehouse management system prints out a 'put-away' document. This document is now available on the scanner and guarantees that a DC staffer puts items away correctly. Finally, when it is time for inventory to be moved to a store a 'pick' document is assigned to a 'picker' using a wireless hand-held scanner. This document shows the exact location of a product and the number of pieces to gather. If an item is not on the pick list an error message informs the picker.

Chapter 4Data Analysis and Processing

1. Which operational department activity is more important in growth of HyperCity?a.SSTb.Receivingc.Both

Chart No 4.1: Operational activity Important for growthInterpretation: The pie chart shows that 8% of the employees think that SST i.e. the stock service team is more important for growth, whereas 32% people think that receiving activity is important. But almost 60% of people think that both these departments are important for growth of Hypercity.Therefore, for growth and increasing sales of Hypercity both the operational departmental activities are important. Even if one activity is not followed correctly then it may hamper the sales of Hypercity.

2. What is the frequency of following operational processes being followed in the store?ProcessesDailyOnce a weekTwice a weekOnce in 2 weeksOnce in a month

Inventory Count

Stock Receiving

Code Management

Visual Merchandising

Refilling

Floor Walk

RTV

Graph No 4.1: Frequency of operational processes

Interpretation: The graph shows that Stock Receiving, Refilling and Floor walk are the activities that happen daily in Hypercity. Inventory count and Code management activities happen once in a week. Visual Merchandising happens once in two weeks. RTV activity is carried out once in a month.This interprets that the employees are aware about the schedule of the operational processes carried out in Hypercity and these process are carried out accordingly to avoid last minute confusion.3. Out of the two processes used to manage the damaged items on the floor which one is the best?a. SAVb. RTVc. Both

Chart No 4.2: Best process for managing damage

Interpretation: The employees agree that the best process for managing the damaged items is the RTV process i.e. Return To Vendor but RTV is not always possible in all circumstances.When the damages occur after receiving the stocks inside the store or warehouse in such cases we cannot return it to vendor. It is only possible if the vendor agrees to accept such stocks if it fits their policy. Otherwise, the damaged items are managed by the SAV process. In this process a voucher is filled to adjust that stock and find solutions to repair and resale the items on the floor.

4. If one of the operational processes is not used as per their regular schedule, will it have an impact on sales?a. Yesb. Noc. Maybe

Chart No 4.3: Impact on salesInterpretation: The pie chart states that the sales will hamper if any one of the operational processes is not implemented as per their regular schedule. In order to keep the store to be operational in a long run and to smooth up or increase the sales the store must follow the agenda of operational processes.

5. Can you describe the standard working procedure followed by the stock receiving department of Hypercity?i. Firstly quality of the product is checked.ii. Secondly they measure weight or quantity to receive.iii. Then rates or prices are verified and send the list to the internal receiving department where prices are verified.iv. If products get selected then that products are entered to the inventory department after uploading on the server or mms system that this much inventory received and on that prices are also uploaded.v. Then the ordered received send to the inventory department.

6. Which one of the stock receiving processes are the best?a. FMVb. POc. DSDd. ADSD

Chart No 4.4: Best process stock receiving process

Interpretation: Some employees were of the opinion that PO i.e. purchase order receiving process is the best, while other were of the opinion that only the implementation of the PO process cannot be said to be best however combination of process can provide best results. The combination they chose was of PO and FMV.

7. Are the goods inspected for conformance while receiving the stocks from vendor?a. Yesb. No

Chart No 4.5: Inspection for conformance

Interpretation: All the employees agree that the stocks received from the vendor are inspected for conformance. According to the rules the receiving in charge must verify the invoices and the purchase orders for correct items and quantity and they must also inspect the quality, damages if any and hygiene of vehicles and crates. This results into commensurable acceptance and inspection of stocks.8. Are non-conforming goods promptly returned to vendor?a. Yesb. No

Chart No 4.6: RTV of non-conforming goodsInterpretation: All goods and/or services specified in this order are subject to Purchasers inspection within a reasonable time after arrival at the ultimate destination. If, upon inspection, any merchandise is found to be non-conforming, defective, of inferior quality or workmanship, or fails to meet the specifications of any other requirements of this order then Purchaser may reject same and return the Non-Conforming Goods to Supplier at suppliers expense. All the non-conforming goods are thus promptly returned to the vendor according to the policies.9. Which management information systems are used for the operational processes at Hypercity?Answers: Distribution Center Management System (DCMS) Merchandise Management System(MMS)

10. Dose the Management information system responses accurately and timely?a. Yesb. Noc. Sometimes

Chart No 4.7: Accurateness of MIS

Interpretation: The pie chart shows that more than 60% of employee say that the MIS system responses accurately and timely. The remaining employees are of the opinion that the system has a great response time but they face problems while getting accurate information. The problem about accuracy is that they often find price differences of certain products in the system.

11. Which one of the following problems mostly occurs while using the MIS systems?ProblemsVery rarelyRarelyOccasionallyFrequentlyVery Frequently

Less system time-out

Case sensitivity

Difference in prices on system

Product availability issues

Graph No 4.2: Occurrences of problems in MIS

Interpretation: Out of the total number of problems faced by the staff while using the MIS system less system time-out (expiry) occurs very frequently. The default time for expiry of the system is usually 30mins, but at times the system expires in 5-10mins, without any notification. This compels the agent to go through the entire process of signing-in into the system, which is quite time consuming.Other problem faced that occurs frequently is the issue of price differences. When the agent scans for the price of a particular product, the price for particular product shown beside the product description is different to that from the price on the package.These two problems occur in higher percentage than that of the other mentioned problems and they need to look for solutions to reduce such problems.12. Has the enhancement of point of sale operations increased the sales due to the introduction of management information system like the handheld scanners?a. Not at allb. Very littlec. Somewhatd. To great extent

Graph No 4.3: Effect on sales due to introduction of MIS

Interpretation: The graph shows that the enhancement of point of sale operations has increased the sales to a great extent due to the introduction of management information system like the handheld scanners. The use of these scanners has reduced time, reduced errors and helped in maintaining records.

Chapter 5Findings

Findings For growth and increasing sales the operational department carries out their activities and other operational processes according to the schedule. The operational process like the merchandising, refilling and pricing helps the store in making the goods available at the shelves at right time, right quantity and at right price. Stocks are ordered before time to control the stock volume and segregated into various departments and classified with the help of code assignment. Stocks are maintained in such a way that it helps the staff to replenish the stocks back to the shelves at a rapid pace. The stock received follows the concept of Place for everything and everything in its place. To prevent cross contamination color coded crates, separate weighing scales for vegetarian and non-vegetarian products and separate temperature probes are used for monitoring temperatures. At receiving bay the goods are inspected daily for conformance and all the non-conforming goods are returned to the vendor. In Hypercity, MMS system is used in every department which helps to take correct decisions about the inventory, vendor management, price management, financial control etc.Along with the MMS system, all department use DCMS system a warehouse management system which is designed to track the activities performed in a Distribution Centre. It allows smooth communication among the store and the warehouse to avoid any kind of miscommunication.

Chapter 6Recommendations

RecommendationsHyper CITY should move according to the latest trends and should always be ready to introduce innovative features into their products so that they can compete with ever changing environment. According to the trend and for providing the service to the customers online shopping must be started by Hypercity.Credit availability for retail traders must be encouraged with a view to expanding employment and higher utilization of fixed assets. This would lead to less wastage of perishables, enhance nutritional status of producers and increase caloric availability.Hypercity should upgrade their MIS systems in order to solve the drawbacks the staff faces while using the Merchandise management system.

Chapter 7Conclusion

ConclusionFinally analysing all the factors responsible for increasing sales and growth of Hypercity I came to conclusion that Hypercity should give more emphasis on merchandising and analysing the processes.Hypercity should efficiently use various inventory management tools to control the stock levels like ABC analysis, monitor stock levels. They can start an inventory reduction program whenever cash gets tight and can make strategic decisions to manage inventory and continually improve the business results.Hypercitys great mix of daily operational processes makes it organized over other organized hypermarkets.The MIS system used to support the operational processes has helped reducing manual entries which are often accompanied by errors. This provides accurate data entry of stocks and bill matching with reduction in time.Hypercity manufactures its own brands like CITY life, Everyday, City style thereby reducing its unit cost production, enhances its quality and generates competitive advantage over others.

BibliographyBooks: Donald Harris and David Walters, Retail Operations Management: A Strategic Approach: Prentice Hall, 1992 Berman Barry, Retail Management- A Strategic Approach: Pearson Education India, 2013 C.R.Kothari, Research Methodology Methods and Techniques: New Age International Publishers, Second Revised Edition, 2004Magazine Articles: Rajeev Kumar, Hypercity: Pushing Profitability through Small-Format Stores, Images Retail, June 2013Websites: Understanding the Receiving Business Processhttp://www.oracle.com/pls/psft/ HyperCity Automates Distribution Centers for Efficiency, CIO Team, 30 November,2010http://www.cio.in/case-study/hypercity-automates-distribution-centers%E2%80%99-efficiency Hypercity Company Profilewww.hypercityindia.com/ Merchandise Management Systemhttp://www.jda.com/solutions/merchandise-management-system/

AnnexureA. Questionnaire1. Which operational department activity is more important in growth of HyperCity?a. SSTb. Receivingc. Both2. What is the frequency of following operational processes being followed in the store?ProcessesDailyOnce a weekTwice a weekOnce in 2 weeksOnce in a month

Inventory Count

Stock Receiving

Code Management

Visual Merchandising

Refilling

Floor Walk

RTV

3. Out of the two processes used to manage the damaged items on the floor which one is the best?a. SAVb. RTVc. Both4. Will the sales of the store have impact if one of the operational processes is not used as per their regular schedule?a. Yesb. Noc. Maybe5. Can you describe the standard working procedure followed by the stock receiving department of Hypercity?6. Which one of the following stock receiving processes are the best?a. FMVb. POc. DSDd. ADSD

7. Are the goods inspected for conformance while receiving the stocks from vendor?a. Yesb. No8. Are non-conforming goods promptly returned to vendor?a. Yesb. No9. Which management information systems are used for the operational processes at Hypercity?10. Does the Management information system responses accurately and timely?a. Yesb. Noc. Sometimes11. Which one of the following problems mostly occurs while using the MIS systems?ProblemsVery rarelyRarelyOccasionallyFrequentlyVery Frequently

Less system time-out

Case sensitivity

Difference in prices on system

Product availability issues

12. Has the enhancement of point of sale operations increased the sales due to the introduction of management information system like the handheld scanners?a. Not at allb. Very littlec. Somewhatd. To great extent