OPERATIONS MANAGEMENT, MASTER CELESTE, CASE ‎STUDY, MAJOR CHARACTERISTICS, COMPANY’S ‎BACKGROUND, INDUSTRY PROFILE, CASE PRESENTATION, ‎MANAGEMENT AND OUTCOME, LIBCORPIO786, BUSINESS ‎ADMINISTRATION, MANAGEMENT SCIENCE, EDUCATION ‎AND LEARNING,‎

1. GENERAL OPERATIONS OF
MASTER CELESTE IN RAWALPINDI REGION
(CASE STUDY)
OPERATIONS MANAGEMENT (5568)
HUMA MALIK
DEPARTMENT OF BUSINESS ADMINISTRATION
ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD

2. TABLE OF CONTENTS
1. ABSTRACT .......................................................................................... 1
2. INTRODUCTION .................................................................................. 3
3. MAJOR CHARACTERISTICS ............................................................. 6
4. COMPANY’S BACKGROUND ……………………........................... 6
5. INDUSTRY PROFILE ………….......................................................... 7
6. CASE PRESENTATION …………………........................................... 8
7. MANAGEMENT AND OUTCOME ……………………………........ 10
8. CONCLUSION ..................................................................................... 11
9. DISCUSSION ………….................................................................... 12
10. EXHIBITS.......................................................................................... 12
11. ACKNOWLEDGMENTS …………………........................................... 13
12. REFERENCES ........................................................................................ 14

3. Case Study- Master Celeste
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ABSTRACT
Activities in operations management (OM) include organizing work, selecting processes,
arranging layouts, locating facilities, designing jobs, measuring performance, controlling
quality, scheduling work, managing inventory, and planning production. Operations
managers deal with people, technology, and deadlines. These managers need good technical,
conceptual, and behavioral skills. Their activities are closely intertwined with other
functional areas of a firm.
This case study is conducted on general operations issue of Master Celeste in Rawalpindi
region. They had been facing the issues in operations in the region that included the retail
outlet inventory management, warehousing of the stock, customer relationship and services.
Initially, five years back they had one company operated outlet in the region and company
factory was sending the required stock in the outlet directly from the company factory to
meet the requisition of the outlet. Later, with passage of time they opened more outlets in the
region and the same approach of stock delivery was practiced for some time till the proper
establishment of the outlets. They were practicing the manual system of paper work to
manage the records and inventory in the outlets. Gradually, issues rose to shift the inventory
from one outlet to another outlet to meet the desired demand of the customers for any specific
product at any other outlet. Inventory was maintained on the papers that created ambiguity
for any two outlets inventory sharing and shifting without any prior intimation at higher level.
Company acquired the regional warehouse to manage the inventory of each outlet and
operations manager was hired to oversee the entire operations of the region that included the
retail of outlets, outlets inventory, customer services and warehousing of the regional stock.
Operations manager visited each outlet once a week to count and recheck the inventory of
each outlet and the desired stocked requirements for regional warehouse was maintained for
the region. Due to diverse variety of the stock, all stock variety was maintained at each outlet.
Transportation of the stock from warehouse to outlets was maintained under the direct
supervision of the operations manager. However, after the sales of the stock unit, again rose
the issue of sharing inventory to meet the demands of the customers. Each outlet was
managed by independent outlet managers and their direct coordination brought issues in sale
of stock, availability of stock, and created ambiguity in the inventory of each outlets.
To eliminate the issue, they automated their system with custom built ERP that enabled
operations manager to have looked at the inventories in outlets, in warehouse, sales records,
outlet team performance and customer satisfaction level, and enabled outlet managers to

4. Case Study- Master Celeste
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manage inventories properly with desired information. Stock delivered to outlets, requisition
of the inventory of each outlet, sales of outlets, and sharing of inventory was managed
through warehouse transportation support that streamlined the operations of the region to
manage all areas properly. They provided trainings to outlet managers to manage the ERP
effectively. Sales teams were provided more training to deal with the customers with product
knowledge, comparisons of products, and comparisons with competitor’s products in order to
meet the customer’s satisfaction.

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INTRODUCTION
Operation is that part of an organization, which is concerned with the transformation of a
range of inputs into the required output (services) having the requisite quality level.
Management is the process, which combines and transforms various resources used in the
operations subsystem of the organization into value added services in a controlled manner as
per the policies of the organization. The set of interrelated management activities, which are
involved in manufacturing certain products, is called as production management. If the same
concept is extended to services management, then the corresponding set of management
activities is called as operations management.
Operations Management concern with the conversion of inputs into outputs, using physical
resources, so as to provide the desired utilities to the customer while meeting the other
organizational objectives of effectiveness, efficiency and adoptability. It distinguishes itself
from other functions such as personnel, marketing, finance, etc. by its primary concern for
‘conversion by using physical resources’. (Kumar & Suresh, 2009)
Following are the activities, which are listed under Production and Operations Management
functions:
1. Location of facilities
2. Plant layouts and Material Handling.
3. Product Design
4. Process Design
5. Production and Planning Control
6. Quality Control
7. Materials Management
8. Maintenance Management

6. Case Study- Master Celeste
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This case study is conducted on general operations issues of Master Celeste in Rawalpindi
region. Master Celeste is a brand name in the market that provides variety of mattress,
furniture and accessories to meet the customer demands to exceed their satisfaction and
comfort level. Initially, five years back they had one company operated outlet in the region
that later increased up to six company operated outlets. With the passage of time demand rose
and company opened more outlets gradually to facilitate the customers at different locations.
Company operated outlet was managed by outlet manager with manual documentation of
inventory requisition, sales records, and outlet operations on excel sheets, and reporting to the
head office based in Lahore. All inventories were directly delivered from company factory to
the outlet based on the outlet requisition submitted.
There were certain delays in the delivery of desired product to the customers in process of
replenishment of the inventory. Outlet managers started mutually managing the inventory
shifting from one outlet to another outlet to meet the customer demand. However, it created
ambiguity in sharing the inventory among outlets and records maintained at head office with
different variety of stock delivered at different outlets. It also increased the transportation cost
for shifting from one outlet location to another outlet location or from one outlet to other
location customer destination to meet customer demand. It also created the difference of
Scope of production and operations
management

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inventory and sales records that was done by one outlet on behalf of anther outlet. It was
taking time to manage and streamline the inventories and sales records at different outlets.
They had been facing the issues in operations in the region that included the retail outlet
inventory management, customer relationship and services. Company factory was sending the
required stock in the outlet directly from the company factory to meet the requisition of the
outlet. Company opened more outlets in the region and the same approach of stock delivery
was practiced for some time till the proper establishment of the outlets. Company acquired
the regional warehouse to manage the inventory of each outlet and operations manager was
hired to oversee the entire operations of the region that included the retail of outlets, outlets
inventory, customer services and warehousing of the regional stock.
It became difficult for regional operation manager to manage all outlets and warehouse as
previous practice of sharing inventory was continues, and however, it reduced the time
comparatively to streamline the inventories with immediate availability of stock from
regional warehouse situated in Rawalpindi. Company initiated the automated process and
streamlined the procedures with the help of operations manager to built custom based ERP to
meet their all requirements to manage all outlets and regional operations. This ERP
eliminated the inventory sharing ambiguity, sales records, and performance and facilitated the
customers easily at large with all reports that enabled the operations manager to manage the
region efficiently. ERP enabled operations manager to manage all operations of the region
easily with all track of records of all outlets. Similarly, enabled the outlet managers to
manage inventories properly and eliminated the ambiguity among outlets dealings by
following certain procedures defined in the system. Operation manager provided trainings to
outlet teams on customer dealings, handling issues, and outlet manager on using ERP system
to follow process and procedures for recording inventories, sales, expenses, and reports
generation. Regional operations of all outlets were running smooth later with certain checks
maintained in the system and controlled by operations manager.

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MAJOR CHARACTERS
Manager outlets were responsible to manage the inventories properly without any ambiguity.
Manager/ regional manager operations was responsible to streamline the operations of all
company operated in the region that included the retail of outlets, outlets inventory, customer
services and warehousing of the regional stock.
COMPANY’S BACKGROUND
Master Celeste was providing the mattress, furniture and related accessories to
the customers in the market to meet their satisfaction with the variety of their
products to facilitate them. Since 1963, Master has been the most trusted name
in bedding, furniture and healthcare industry providing products of unmatched
quality with guaranteed customer satisfaction.

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INDUSTRY PROFILE
Master has been the most trusted name in bedding, furniture and healthcare industry providing
products of unmatched quality with guaranteed customer satisfaction. Their vision had always
been focused at keeping a smile on our customers’ faces. This was the driving force that
keeps them introducing new products. State of the art technology, finest craftsmanship, strict
quality controls, and continuous consumer interactions ensured that they achieved the highest
level of perfection in their products. In 1997, Master introduced the American brand, Celeste
that had become the bench mark of luxurious sleep system in Pakistan. They were committed
to providing customers with a luxury lifestyle that was supported with the Ultimate Sleep
System perfected to the last detail. Wake up every morning feeling refreshed and rejuvenated.

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CASE STORY
This case study is conducted on general operations issue of Master Celeste in Rawalpindi
region. They had been facing the issues in operations in the region that included the retail
outlet inventory management, warehousing of the stock, customer relationship and services.
Initially, five years back they had one company operated outlet in the region and company
factory was sending the required stock in the outlet directly from the company factory to
meet the requisition of the outlet. Later, with passage of time they opened more outlets in the
region and the same approach of stock delivery was practiced for some time till the proper
establishment of the outlets. They were practicing the manual system of paper work to
manage the records and inventory in the outlets.
There were certain delays in the delivery of desired product to the customers in process of
replenishment of the inventory. Outlet managers started mutually managing the inventory
shifting from one outlet to another outlet to meet the customer demand. However, it created
ambiguity in sharing the inventory among outlets and records maintained at head office with
different variety of stock delivered at different outlets. It also increased the transportation cost
for shifting from one outlet location to another outlet location or from one outlet to other
location customer destination to meet customer demand. It also created the difference of
inventory and sales records that was done by one outlet on behalf of anther outlet. It was
taking time to manage and streamline the inventories and sales records at different outlets.
They had been facing the issues in operations in the region that included the retail outlet
inventory management, customer relationship and services. Company factory was sending the
required stock in the outlet directly from the company factory to meet the requisition of the
outlet. Company opened more outlets in the region and the same approach of stock delivery
was practiced for some time till the proper establishment of the outlets. Company acquired
the regional warehouse to manage the inventory of each outlet and operations manager was
hired to oversee the entire operations of the region that included the retail of outlets, outlets
inventory, customer services and warehousing of the regional stock. Operations manager
visited each outlet once a week to count and recheck the inventory of each outlet and the
desired stocked requirements for regional warehouse was maintained for the region. Due to
diverse variety of the stock, all stock variety was maintained at each outlet. Transportation of
the stock from warehouse to outlets was maintained under the direct supervision of the
operations manager. It became difficult for regional operation manager to manage all outlets

11. Case Study- Master Celeste
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and warehouse as previous practice of sharing inventory was continues, and however, it
reduced the time comparatively to streamline the inventories with immediate availability of
stock from regional warehouse situated in Rawalpindi.
Operational issues that were observed and found were below:
 Inventory management and inventory sharing among different outlets
 Ambiguity in the process of inventory sharing among different outlets
 Direct inventory requisition to company head office and later to regional
warehouse
 Inventory transportation cost among different outlets
 Records maintenance on excel sheets that consumed time for streamlining the
records
 Regional warehouse management process and procedures linked to outlets but no
records for direct sharing of inventory among outlets at regional level.
 Process and procedure time consumption increased to streamline all outlets.

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MANAGEMENT AND OUTCOME
Operations manager evaluated all the process and procedures to operate the region properly.
They redefined the process and procedures to streamline the inventory issues, transportation
issues, centralized stock management at regional level and distribution of the inventories to
outlets and sales management by implementing the custom built ERP. They installed ERP at
all outlet systems and with the centralized control at the regional level to stream line all areas
to better manage the regional operations. All inventory requisitions from outlets, stock issued
to outlets, sales of each outlet were then controlled by centralized managed ERP that
eliminated the stock sharing among outlets directly. It also enabled the simplified
transportation of products to the customers and to the outlets controlled at regional level by
operations manager. ERP also streamlined the procedure to shift inventory from one outlet to
another outlet by returning one outlet inventory to regional warehouse and then issuing the
same inventory to another outlet to meet the demand of the customers at other location of the
region easily. It also streamlined the sales, and inventory availability at every company
operated outlet. Operation manager provided trainings to outlet teams on customer dealings,
handling issues, and outlet manager on using ERP system to follow process and procedures
for recording inventories, sales, expenses, and reports generation. Regional operations of all
outlets were running smooth later with certain checks maintained in the system and
controlled by operations manager.

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CONCLUSION
Operational issues that were observed and found were below:
 Inventory management and inventory sharing among different outlets
 Ambiguity in the process of inventory sharing among different outlets
 Direct inventory requisition to company head office and later to regional warehouse
 Inventory transportation cost among different outlets
 Records maintenance on excel sheets that consumed time for streamlining the records
 Regional warehouse management process and procedures linked to outlets but no
records for direct sharing of inventory among outlets at regional level.
 Process and procedure time consumption increased to streamline all outlets.
Operations solutions that were adopted and implemented were below:
 All processes and procedures of outlets were revised and to streamline the regional
operations.
 Custom built ERP was implemented in all outlets with centralized admin control at
regional level having access to operations manager only.
 Regional stock of products was managed, controlled, and transportation handled by
regional manager to make supply at outlets based on requisition.
 Certain processes were adopted through ERP to manage each outlet inventory at
outlets level.
 Certain training on using ERP was provided, and trainings on customer services were
provided.
As few months’ earlier regional operations were automated, with the passage of time results
and efficiency would provide the effectiveness of the team to utilize the new system, and the
need of improvement to enhance the systems, processes, procedures, team skills of customer
relations and customers handling with time management at outlets.

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DISCUSSION
It was important to automate the system earlier or very soon keeping in view the
technological evolvement in the market competition. However, there are certain limits of the
team available with the region to deal with the customers to facilitate them. Another point
that was important to convince the company to introduce the new system for operation
efficiency at earlier stages, but there could be other economical factors involve that might had
made company to implement the automation at later stages to cope with the efficiency issues.
On the other side, there could be simple results of sales of the products that might satisfy the
company requirements or limits of the team trainings based on the skills of the team keeping
in view the market environment of retail industry.
EXHIBITS
Only Operational process and procedure are discussed and improved processes and procedures
adopted and implemented are discussed to eliminate the issues in the regional operations.

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ACKNOWLEDGMENTS
I would like to thank Mr. Shehzad Afzal, regional manager operations with Master Celeste.
He guided and briefed me the regional operation issues and solutions implemented to
improve the operations with some details keeping in view the last five years operation in the
region.

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REFERENCES
Kumar, S. A., & Suresh, N. (2009). Operations management. New Delhi: New Age
International.
Master Moltyfoam. (2019). Retrieved from https://www.moltyfoam.com.pk/about-us/