Project Scheduling

One of the many ongoing projects that Path Mark shopping centers face is the modeling and remodeling of the companyʼs store displays. Every month Path Mark remodels the display in the front of the door so that customers can be advertised to right upon entrance into the store. Most times the items that are on sale in the store weekly are arranged right in the front of the store to allow impulse purchasing and to create customer awareness of what is actually being sold within the store. When holiday seasons come around it is the responsibility of the project managers to create and arrange attractive store displays that encourage the season and encourage shopping.

The project manager has the tasks off deciding what the display should be, the colors that will be involved in the display and what store items will be advertised along with the display. The project manager also has the responsibility of choosing who he wants to be in charge of putting the display together and if they want the display to be specifically aimed at certain departments within the store.

Gannt Charts are often used within Path Mark project activities because of the convience they serve to organizing and handling projects. Since many of the projects are simple it is an easy way to keep organization within the company and it is widely understood by management as well as employees. Not all projects can be organized through Gannt charts because Pathmark does have some very complex projects and Gannt charts become unwieldy. With the example of the project store displays it is easy to use Gannt charts to organize the activity descriptions through what workers are needed, the arrangement of the products and furnishings, and any installments needed for the project.

Pathmark has done a terrific job as far as the project planning and doesn't need many changes. The company can do a better job in making sure more people are qualified enough to create and run a project beside the project managers. The company also tends to make the changes far too often and the remodeling of the store for projects can confuse customers who have established themselves and familarized themselves with the store.

Supply Chain Management

C&S->Pathmark->Customer

The supplier for pathmark is a company called C&S Wholesale Grocers; they supply pathmark with all the necessary raw materials. C&S wholesale grocers purchase goods directly from the manufacturer, they store stock in secure warehouse facilities, and then they distribute the products. Pathmark has a highly computerized inventory and sales tracking system; a pair of distribution centers, one for perishable items and one for nonperishable, together serving stores in a relatively small region, and focus on nonfoods items, because they generate a 30% average profit rather than groceries’ average profit at 3%.

Step 1: C&S wholesale Grocers delivers pathmark with all the necessary raw materials to stock their shelves with.

Step 2: Pathmark uses UCCnet which enables suppliers and their retail partners to reduce costly administrative errors in invoice pricing, purchase orders, product delivery and scanning accuracy. UCCnet synchronizes services to enhance relationships with suppliers and improve supply chain efficiencies.

Steps 3: Customer

Pathmark supply chain could best be described as a business to business supply chain. Companies supply Pathmark with finished goods that follow a downstream flow going straight to company warehouses, then to the retail locations and are later purchased by the customers. Pathmark also has its own brand of goods similar to some of the ones provided by other suppliers that start in Pathmark factories, go through the warehouses, and end up into retail stores where they are also purchased by customers. Anytime products are damaged in the store by employees or by customers or if an item is damaged through delivery a record book is kept to later contact the companies that supplied the product and providing an upstream flow facilitating the return of defective units, recyclables, and information for planning purposes. Each Pathmark has a small in store warehouse that has a temporary supply of products to restock shelves with but inventory checks are done regularly by management, and order forms are sent to Pathmark’s main company location and then those requests are sent to the suppliers when restocking is necessary.

Recommend new ideas

Pathmark should really consider putting more of an emphasis s and better advertising efforts into their own Pathmark brand. Many times some of the company’s private brands like Sears Black and Decker brand take off and become popular amongst consumers and become high selling items. If Pathmark can establish itself as a high quality brand it won’t have to be so reliant on other companies for providing it with the products it needs for sales, and profits will increase within the company since it will be in control of its own creation and production of its line.

Quality Control

What quality control methods do they currently use? What type of inspection is used?
Pathmark has always maintained Process quality control. Pathmark is different from many organizations because not only does it provide its own brand line of products but it also provides a service in selling products from other companies. Random testing and inspections are done monthly to check that employees are correctly doing their jobs and providing the best service to Pathmark’s customers. Cashiers have “secret shoppers” who check out on their lines and ask cashiers questions regarding their store to test the knowledge of each cashier and to ensure that they handle each customer professionally and kindly. Pathmark usually sells items from other companies like Bounty, General mills, and Lays but Pathmark also provides its own private brand. The Process quality control is again utilized and inspection and testing of products are taken while the product is being produced. If there is reason to believe that the quality characteristics of a product have changed or been damaged the process is stopped and a search is done for the assignable cause.

Is continuous improvement used? If so, do they use Pareto analysis or fishbone diagrams?
Pathmark also does aim for continuous improvement within the company. Pathmark is constantly trying to solve problems and improve the quality of their service. Self service registers were created after the company discovered the frustration of customers who waited on long lines ruining their overall experience in the store. Similar to the Pareto analysis, data has been collected over time on various modes of failure from the service provided to customers. Pathmark discovered that customers enjoyed the many weekly sales offered by Pathmark but many customers became dissatisfied with the fact that the item would sell out before they ever had the opportunity to purchase it. Pathmark created an idea for rain checks that allowed customers to come in and if the product they were searching for was sold out they could get a ticket in writing that promised the customer the same product at the same price just at a later time. Customers were satisfied with rain checks and Pathmark has continued offering it and has stayed true to it for many years.

What about Six Sigma practices? Recommend some new ideas they should consider.
Pathmark takes similar approaches in its quality control and improvement approach to that of six sigma. Processes are defined and selected for improvement. Quality variables valued by the customer are measured and goals are set for improvement, in the case of the self service registers the company acknowledged that time was a key value of customers and a goal was set to create a way to speed up check outs. Pathmark analyzes the root causes of their current defect levels and identifies alternatives, just like in the case of creating rain checks for unhappy customers. Improvement by Pathmark is made regularly not just occasionally, and Pathmark makes sure to maintain control over time and ensure that the process of improvement is not lost over time. As far as new ideas to consider Pathmark should create customer surveys that customers can fill out during their checkout where questions about the type of service they received and how the service can be improved are measured. Customers are the number one value and concern at Pathmark so any way Pathmark can improve their experience can not, and will not be overlooked by the company.

Managing Quality---4 dimensions of quality

Quality Design:

Pathmark stores make an easy path for one-stop shopping that focuses on providing a hassle-free shopping experience for their customers. You can find everything you need all under one roof. Pathmark ensures the aisles remain fully stocked with all the necessary items a customer may need. They provide signs at the beginning and end of the isles that show you what items are on the shelf. They also offer ways to save with their power prices and yellow tag savings.

Quality of Conformance:

All pathmark stores look the same when entering you will feel like you’re in the pathmark in your home town. Each pathmark store is looking out for the customer’s well being by offering their yellow tag savings, and their excellent customer service. Pathmark is predominantly noted for its past loyalty to opening stores along major highways and interstates, there warehouses are fully situated to feed the growing demand at all of Pathmark stores.

Availability:

Pathmark stores are open 24 hours 7 days a week. The store hours are perfect for these late night snacks, medication, videos, or appliances. Pathmark stores are located in a convenient location along major highways and interstates. Pathmark is reliable when it comes to saving money. They have their pathmark “advantage club” card which is free to sign-up and offers money-saving coupons. They have a weekly circular that also offers great savings. The catering department offers the finest quality, great service every time; ordering online or in person. On their website they also offer great recipes.

Field Service:

Pathmark offers a wide variety of services, ranging from their customer service counters located in the stores to their online website. The customer service located in the stores gives the customer a one on one experience, while the website offers the same service but with more resources. Pathmark stores are open 24 hours a day 7 days a week, which means that customer service is available all the time.

What quality systems do they currently have in place?

The type of quality systems Pathmark currently have in place is Availability. Pathmark was using one human resource department to handle records management, storage, and retrieval for 143 supermarkets throughout NY, NJ, PA and Delaware. However, they are now working with Archive Systems which has divided its HR workload among 30 individuals, instead of three, in three locations. Since this collaboration, questions are answered faster, problems are solved sooner, and operations managers can focus on maintaining and increasing operations efficiency and higher levels of service created for employees. In addition, with Archive Systems, “Pathmark can take advantage of the Scan-on-Demand services to quickly access documents before they are batch –scanned.” Also, with this integrated system Pathmark can have a level quality assurance that yields time and cost saving without occupying their staff. “Pathmark can gain significant business continuity and disaster recovery capabilities without investing in technology; and can also reduce storage cost by more easily tracking and eliminating unnecessary files.”

However, not only has the Archive System help Pathmark with their quality system but Unicru as well. With Unicru Pathmark is able to put managers on the floor to devote their time and better assist customer; and maintain best associates for the jobs while improving quality and productivity of their frontline.”

Three recommendations Pathmark should consider to improve their quality system is to: adapt and implement some of the quality guru’s theories, especially W. Edwards Deming theory’s and his 14 managing principles. Also, they should consider reviewing the ISO 9000 Standards (currently) to ensure quality product and high levels of customer satisfaction, which is what they are aiming for. Lastly, Pathmark should use the Baldrige criteria (Baldrige Award) as a guide for internal assessment of their management, quality and improvement systems by diagnosing the strengths and weaknesses.

Service Process Design

3 elements of the service-product bundle

The three elements of service product bundle consist of explicit service, implicit service, and facilitating goods. In other words explicit service is a tangible service. While on the other hand, implicit service is a psychological benefit of service. Finally, facilitating goods is a physical good. All three coincide with Pathmark. First Pathmark is a tangible service for the reason that when one steps through the doors they anticipates finding all the necessities one requires. From food to cleaning supplies to a convent pharmacy and one stop photo center Pathmark carries all different products, which makes these facilitating goods. Pathmark has everything to keep ones family happy and healthy while in a pleasant surrounding

The cell they operate in on the Service Matrix

Pathmark customers are given the same shopping experience every time they visit a pathmark store. They provide a "path" for easy, one-stop shopping, and the "mark" of one of the most successful supermarket retailers in the United States. Pathmark falls in the Provider Routed services category. This category is standardized with a highly repeatable process sequence. It has low customer decision making power and limited number of process pathways. Provider routed services is also a Line flow with, low work complexity. Pathmark customers enter the stores with a list of items they need to purchase at reasonable prices (low price).

Types of customer contact encounter and how they respond

Path mark is a high-contact service operation where customers and employees interact regularly. Employees are required to be well dressed usually in collared shirts and are trained to be knowledgeable in assisting customers find any products they are looking for. Customer service reps are highly trained and greet customers on point of entry into the store and help with any of the more complex problems customers may face.

Do they use self service?

Path mark not only has registers with employees who are willing and waiting to scan items, but for customers who are looking for a quicker and faster check out they also have the option of using self service scanners. With self service scanners customers eliminate the employee and customer interaction and take the place of the cashier themselves. Customers are usually supervised by a highly trained cashier who has received numerous amounts of training classes updating them on the self scan scanners and how to solve any dilemmas a customer may run into while scanning out. The self scanners are built in with databases that have the entire store product lists built in so customers can choose from lists of bakery items and produce items in the event the item itself cannot be scanned.

Do they use technology?

Path mark uses some of the most up to date technology in their service operations. Point-of-sale scanners are used during checkout for customers allowing a quick and easy experience for both the customer purchasing the items and the cashier scanning the items. Each register is equipped with a small flat screen monitor that allows the customers to watch and keep track of each item as it is scanned and also to monitor the prices as they are being added up by the register itself. Bar code readers are also used by both customers and employees allowing both to check prices on items. Store managers in the back offices also have personal computers that allow them to email and teleconference with other stores or higher level management who may be inquiring about the events going on in one of the many stores on a given day.

Do they use focused operations?

Pathmark uses focused operations to focus on low cost of operations to support the low prices being offered. Pathmark also maintains a focus on its products ensuring they offer the best quality from other brands and from Pathmarks own personal brand. They make sure the customer experiences the best service from its highly trained employees. Technology is used in assisting both customers and employees in anyway possible. The volumes of sales are closely monitored for replenishment of inventory, and items are made to stock.

How do they support employees?

Path mark uses technology in support of its employees, Cash registers and product scanners assist customers in both scanning out products and checking prices for customers. Training videos are used for training employees and they are watched every few months to keep employees constantly updated on changes in the stores. Managers remain in close contact with employees and monitor their work and progress day to day. Compensation is also given for employees who do well and the speed and efficiency of cashiers is monitored and prizes are given for customer service success.

What type of service recovery and guarantees do they offer?

As mentioned previously, Pathmark is working together with Unicur Inc. to enhance operations and pursue growth opportunities where focus on customer service is a must. According to an article in the Wall Street Journal, Pathmarks online shopping had positive feedback from customers/consumers. For example, for the online shopping the customer found the service very attentive; and for the at-store pick-up the customer had fast and organized groceries. Pathmark's customer service takes these online shoppers phone calls if they want to double check their orders and the accuracy of the order. Also, Pathmark has installed self-checkout tables to satisfy those customers that where picky about the way their bags where done or the quickness to the cashiers. With that said Pathmark's online customer service and technology services guarantees fresh food and speedy delivery.

"Price Impact" Pathmark

"Today (Oct 3rd, 2008) Pathmark unveiled its new price impact format at the store located at Crittenden Street in Philadelphia. This format is designed to make family shopping easier and more efficient, thanks to a wide selection of quality groceries, fresh produce, breads, seafood, meats and more, all at unbeatable prices."

"Each week, customers will find over 5,000 Yellow Tag price reductions throughout the store, as well as thousands of items on Price Hold, which retain the same low price from week-to-week."

"In addition, hundreds of items ranging from soda to fresh corn will be offered at special Power Prices, which are positively the best buys of the week. Further, the new price impact store provides shoppers with great values on fresh foods such as meats and baked goods, as well as seafood through Pathmark's "Catch of The Week" program."

http://www.aptea.com/pressRoom_article.asp?id=131

Process Selection

a) What type of product flow do they use?

Pathmark is a batch flow because they have a large variety of food that fills specific customer orders. Pathmark is a "path" for easy, one-stop shopping, and be the "mark" of one of the most successful supermarket retailers in the United States. Pathmark uses a batch flow because they have a large variety of food that fills specific customer orders. Due to the variety that Pathmark offers they are not specialized in the production of just one product but many products. Pathmark uses general-purpose equipment that allows it to be flexible in its production and continue offering variety. Pathmark has to keep itself constantly prepared and aware of the future. Products are always changing and so are customer needs so it is dire that Pathmark’s equipment is flexible enough to offer and satisfy the needs for those changes. Pathmark is fully capable of handling both the small and large volumes that orders could be placed for. Pathmark has a history of satisfying customers and providing on time service and keeping stores well stocked to fit customer needs. Pathmark is a “path” for easy, one-stop shopping, and be the “mark” of one of the most successful supermarket retailers in the United States.

b) What type of customer order do they process?

The process characteristic matrix that Pathmark uses is the batch and job shop and it falls into the Make-to-stock matrix. Pathmark uses a MTS (Make to Stock) process because it provides faster service for customers from available stock and lower costs.

c) Which cell do they fall into in the process characteristics matrix?

Pathmark falls in the batch and job shop section. This group contains the order type, flow of product, product variety, market type, and volume. Pathmark has a larger batch and it has a larger variety of foods that fill specific customer needs. The market type would be custom and the volume is medium.

d) What are some of the factors influencing their process selection?

Some of the factors influencing their process selection are market conditions, capital requirements, labor, and technology. Due to these factors Pathmark has united with Unicur Inc., a leading provider of Total Work force Acquisition solutions, who seek the highest quality employees that best fit a business, by using many methods to make sure that they select the best employees as well as managers across job roles throughout the corporation and continually measure the improvements. With Unicur Inc., Pathmark plans to enhance operations and pursue growth opportunities by lowering operations cost, focus on customer service, and optimizing processes & productivity. To achieve these goals Pathmark is concentrating "hiring more quickly and efficiently candidates, that best delivers quality and service, and reducing turnover."

In addition, since Pathmark is now owned by The Great Atlantic & Pacific Tea Company Inc. (A&P) the new owners are looking to introduce "freshly cut vegetables and fruits to Pathmark produce sections; following the integration of systems, such as payroll and logistics, at the two grocery chains."

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e) Can they adopt any of the mass customization methods discussed?

Pathmark can't adopt any of the mass customization methods discussed because it was mentioned before, Pathmark has a Make-to-Stock (MTS) process where products are not identified for any particular customer, but for the target market. The products are standardized to some point by the producer not the customer, because the orders are forecasted before hand and then produced and carried in inventory to fulfill the customer's demands. "The production cycle is being operated to replenish stock."