10
Operations
Decisions
1
How the 10 operations decisions
below are applied in Mango?
•
•
•
•
•
•
•
•
•
•
Goods & service design
Quality
Process & capacity design
Location selection
Layout design
Human resource and job
design
Supply-chain management
Inventory
Scheduling
Maintenance
2
Goods & service design
• All of the garments and accessories are
designed around the idea of collections
and matching items
• Production and distribution is an essential
part of the process, together with high
standards of quality at all stages, from
controls at source to the final point of sale
• Their garments and accessories are highto-medium quality and always seek to
maintain the same manufacturing standard
(a constant level of quality, the same
characteristics, etc.)
3
Quality
• The possible presence of hazardous substances in their
garments and accessories is a risk inherent to the
manufacturing sector
– the instructions to their suppliers and the continual
monitoring of the same by specialised laboratories means
that this risk is controlled in a reasonable way at all times
• Exhaustive quality control at all stages of the production
chain ensures that their garments and accessories are suitable
for any occasion
4
Process & capacity design
• Mango doesn’t have any factories and all of its designs are
subcontracted to extern suppliers who are responsible of the
manufacture process.
• Their suppliers generally cover the entire production process
(cutting, producing, ironing, packaging, etc)
• The nature of their products and their production system largely
determine the characteristics of their manufacturers and
production workshops, and the relationship they have with
these in certain aspects, such as: manufacturing time, price of
garments,
technology,
capacity,
quality,
organisation,
professionalism, international experience, etc.
5
Location selection
The franchise system is used in countries where the cultural and
administrative characteristics are different to ours and it is
therefore more appropriate that people in their own country
manage the stores.
At 2007 the group had over 313 own stores and 682 franchises.
6
Layout design
MANGO is characterised by offering fashion for the young, modern
and urban woman. It has its own design which adopts the latest
fashion tendences and is presented in 3 differentiated lines:
Casual Sport
Suit
Jeans
Furthermore, all the lines in MANGO collection can be combined
with different accessories like shoes, bags, belts, costume jewellery
and other products which are made by MANGO
7
Layout design: logo
2005
2006
2007
8
Human resource and job
design
• Conscious that Mango’s greatest asset is its people
• They want their professionals to develop within the company
and to take on increasing responsibility with time
– they achieve greater professional and personal satisfaction as
well as greater motivation in day-to-day work
• MANGO has over 6.500 employees, 1.650 of which work at the
company’s central offices in Palau-Solità i Plegamans (Barcelona)
• They have young and enthusiastic team with an average age of
30 and which is 82% female
9
Supply-chain management
“At the MANGO organisation we have always tried to
meet the expectations of our interest groups, by
taking their concerns and initiatives on board and
working together with them.”
•
•
•
•
•
The relationship with their suppliers is a long-term one based on a
system of joint planning and implementation
Provide them with direct technical support in their manufacturing plants
in every country in which Mango manufactures
We also have permanent channels of communication with Mango’s
customers through our stores and a department
On a periodic basis suppliers visit their central offices, which enables
them to maintain more direct and personal contact with each on
Their company has specialised departments to provide support to
franchisees in all management areas.
– Furthermore, a team made up of our supervisors and coordinators
visit their stores on a continual basis, offering them advice on all
necessary aspects.
10
Inventory
• Their main goal is that each shop have what it’s necessary in each
moment having the minimum stock.
• Everyday, information is processed and then they replace clothes
or make goods trades between their shops.
• Mango’s main tool is an informatic software that makes
possible to manage the difficult design, purchase, manufacture,
sale and post sale processes automatically  ArchiCAD
11
Scheduling
• Before each season, they plan what will be sent to each store and
order production based on this criterion.
– If finally there is a difference with the sales forecast, the
regulation of the deliveries or exchanges between stores is
carried out from our warehouse and central services.
• If there are surpluses in stores at the end of a season, these are
sold with discounts and promotions.
12
Maintenance
They
want
to
develop
and
implement this set of values in
all of our fields of influence,
both internal and external,
because they believe that their
responsibility extends to their
entire supply chain.
Therefore, they have steadily
developed instructions, policies,
and action codes related to
social, work and environmental
aspects, all with the desire to
improve and move forward.
13