Operations Management and Lean Principles in Tesco

Introduction

Operation management is the administrating operational business practice for creating high level of efficiency of the organisation as possible within the workplace (Bicheno and Holweg, 2016). Operational management refers to converting the materials and labour into final goods and services as efficiently as possible through effective utilisation of the organisational resources. It further enhances the sales volume and organisational excellence where the firms are able to maximise its profitability in long run and secure future sustainable development. The organisations in the recent era of globalisation try to gain high market share and improve their competitive advantage through maximising operational efficiency so that the companies can perform better and run their operations successfully in the market. The study explores the operation management process and continuous improvement techniques for the organisation Tesco, which is a famous retail supermarket chain in the UK. The organisation is able to expand their business and run their operations successful and thus the study provides a scope to evaluate the operational progress and the lean principles in the company for better analysis of the operation management in the retail industry. On the other hand, the project life cycle is the concept where the project management team can develop effective process to complete the project and initiate the planning efficiently. The project life cycle management is also mandatory for the organisation Tesco for total quality management and handling the organisational projects successfully. In this regard, in the second part of the paper, project life cycle management will be discussed for better understanding and evaluation of the Tesco’s initiative to handle the projects. Total numbers of employees of the company are over 450000 as well as the organisation is also successful to generate the revenue £63.911 billion 2019 (Heller, 2017). The operational efficiency and the human resource management are effective in the company to progress in the market by managing their supply chain and operational activities across the international markets.

Review and critique the effectiveness of operations management principles

The principles of operation management are mandatory for the organisations to progress in the market and improve efficiency of the operations so that it is possible to serve the ultimate customers in an innovative way. The organisational process and manufacturing unit are connected to each other is one of the principle, where the organisational departments are developed on the basis of the functions and structures of the firm. Managing transparency and accountability, managed passion, reality management, maximising fundamentals of the business as well as humility and variance management are the major principles of operation management, where the firms try to manage their operations successfully to establish the business in the market (Coetzee, Van der Merwe and Van Dyk, 2016). Six sigma strategies in this regard is a tool through which the organisations try to develop proper strategic planning to manage their operations and reduce waste in long run for better management. There are core principles of six sigma strategy which are fruitful for the organisations to manage their operational excellence. The organisations must focus always on the customers, understand the working activities and making the process smooth with proper information and materials flow, as well as reduce waste and concentrate on values. Removing the variations and enhance communication and collaboration for better management of the origin activities and operations. Tesco as a famous retail firm also focuses on six sigma strategy for analysing their operations and improve their management to secure future sustainable development (Wood, Coe and Wrigley, 2016). The organisation also focuses on lean principles which are deliver the products fast and securely, respect the people, optimise the whole process, create knowledge, build quality in and eliminate waste, these are the major lean principles through which Tesco tries to operate in the retail supermarket across the globe. The organisation in this regard focuses on development lean management with six sigma strategy which is known as six sigma lean principles, where the organisation is able to expand their business through managing supply chain and logistics and warehouse management.

For managing the lean and six sigma tactic, Tesco focuses on point of sale scanning, centralised ordering process and distribution, automated warehouse control and electric data interchange. These are the major initiatives through which the brand is operating across the globe. The primary distribution system of Tesco is effective where the POS data and database management system manage the order execution process which is fast and efficient to serve the customers in a better way. On the other hand, the organisation is also efficient to manage retail analytics to handle the warehouse and stock of the product, Tesco in this regard is efficient to manage the warehouse through the computerised data and data interchange application to improve the data management efficiency and increase the timing of managing the operational activities of the company. The logistics system ion the other hand is good at Tesco, where the company is able to handle stock transfer (Zhou, 2016). Cross docking is the process here the inbound goods are taken off immediately from the receipt location to a starting location for issue without any intermediate storage. Tesco manages cross docking for transferring the raw materials and maintain freshness and quality of the materials through this system which is fruitful for the firm to create quality products. The storage system is also effective where Tesco is able to manage the raw materials and the system of suppliers, delivery to the production house, stores point of sale and sales racks are going through a smooth operational process. Tesco also used RFID since the year of 2003 which is called radio bar code and it is efficient to track the products successfully. It helps to have faster operations and easy tracking activity is advantageous for the firm to manage the operational activities (Rosnizam et al., 2020). It has unique identification and security as well as it helps to measure and control the aspects of supply chain as well as promotes faster processing of goods, lower the costs and higher employees efficiency. Tesco is hereby efficient to manage their operations and management process successfully through the radio bar code system and ensure organisational excellence.

Just-in-Time is also another process, adopted by Tesco where the organisation is able to handle their operational activities efficiently and in this regard, the organisation develops distribution network successfully. Tesco improves scheduling process and manage the operations through the data interchange phase which help faster operations. The components if inventory control mechanism through computerized data and cloud computing system as well as transparency management. It is possible to manage the product stock and distribute it as per the customer’s demand and order details (Evans and Mason, 2018). Over production and over process are also the strategy of Tesco, which are effective to maintain the stock of the products and in this regard it is helpful to manage product design, packaging and safety of the products during stocking and inventory management. The inventory control mechanism through RM, WIP and FG as well as employee empowerment in the operational activities are also the effective tactics of Tesco to be successful in the market and handle the customers efficiently. The suppliers of Tesco are also efficient to handle the operations where the suppliers are empowered and encouraged through monetary incentives and non-monetary rewards for better performance. The suppliers are also handling the product stock and transfer of the products through data interchange system for better management.

For lean management, value stream mapping is also effective where the organisations try to manage the input flow and the final output of the organisation. The flow chart below provides a scope to the firms like Tesco to manage their operations, reduce the time of operations and process of the cycle time, as well as implement the process improvement in future. The organisations are able to utilise the organisational resources and IT infrastructure for better performance management of the staff, as well as improving the organisational excellence and ensuring efficiency to transfer the products to fulfil the orders (Wood, Wrigley and Coe, 2017).

Therefore, Tesco focuses on point-of-sale data, cross-dock distribution centres, and frequent deliveries to many stores to manage their operations and distribution of the final outputs. The organisation manages their operations through the supply chain management, implementing the Enterprise Resource Planning (ERP) system as well As could computing to reduce the time of the operations and improve the organisational efficiency to manage the operational system successfully (Lin and Peng, 2018).

Apply the concept of continuous improvement in an operational context

Continuous improvement plan is the process of improving products, service and process through constant review and measurement as well as taking effective actions to fulfil the organisational aims and objectives. It is developed through the PDCA cycle, which refers to plan, do, check and action. Through continuous improvement process, the lean management tactics can be improved efficiently were the organisations can develop further planning for better performance.

Plan:

The organisational goal is to serve more customers within limited time.

The other goals of the company Tesco are such as,

To enhance customer’s values

To maximise profitability

To increase product quality

To manage customer order

Do:

For continuous improvement, it is necessary for the organisation to tale active step to implement latest technology and improve efficiency of the firm. The cross docking system and instant transfer of the products to the stores are the major strategy of Tesco to manage their lean system and these are beneficial for the brand to manage their operations. The organisation must focus on doing the activities more efficiently. Tesco must focus on implementing Kaizen for better performance and operation management. ERP system development and managing cloud computing system for data interchange management is mandatory for the organisation. It needs to develop Information Technology (IT) infrastructure to manage the Customer relationship management (CRM) software as well as ERP system. For order tracking and process, GPS system must be managed well as well as the organisation should focus on RFID for tracking the order and processing for delivering the final output to the customers as per the market demand. For continuous improvement, it is also necessary for the organisation Tesco to manage human resource by increasing their empowerment and developing partnership working activities at the workplace through high collaborative practice. For enhancing internal communication, it is mandatory to set Information and Communication Technology (ICT) through which the employees and other staff members can ensure high information flow and it would also be possible to enhance knowledge and skill of the staff members to perform better for managing the customer’s successfully in long run.

Check:

For checking the progress in the workplace, it is mandatory to evaluate the results. In this regard, the organisation must focus on customer voice by collecting their feedback so that the organisational improvement can be measurable well. Continuous improvement planning can be checked through continuous monitoring and evaluation of the results. The sales volume and customer’s satisfaction are also reviewed within proper intervals so that it is possible to identify the success factors of the organisation. The performance of the staff members is also necessary to be reviewed in the workplace for continuous improvement and manage their activities efficiently. The organisational performance and efficiency of delivering the organisational products and services to the customers are also the important factors for reviewing the performance and improvement of the firm in the market.

Act:

After reviewing the organisational activities and performance, it is essential to develop further planning for better management and ensuring organisational excellence through operational efficiency (Wang, Huang and Ji, 2017). Implementation of the computerised system and database management system must be there to enhance the operational activities within effective time. The cost of the operations can be controlled through this technique, where Tesco can serve the customers faster and manage the order through order tracking and process technique.

Apply the Project Life Cycle to a given context

Project life cycle is one of the effective ways to develop the project and complete it successfully. As per the project life cycle model, there are five steps which are project conception and initiation, project planning, execution, performance and control and project closure. Through these stages, it is possible for the project manager to manage the projects and complete it successfully. The organisation Tesco also needs to implement project life cycle for better management and operational efficiency.

Project planning

Tesco must focus on improving the skill and efficiency of the staff members and employees to handle the operational activities. The organisation is able to implement the latest technology in the workplace such as ERP, CRM as well as ICT, but it is difficult for the staff members to manage the automated system. It is necessary for Tesco to arrange training program and provide high quality and informative training session to each of the members so that they can improve their knowledge and develop technical skill to handle the data interchange and database management system. This is the major project for maximising operational efficiency of Tesco.

Project scope

The scopes of the project at Vodafone are such as,

Manage the workforce efficiently Enhance communication among the team members Improve collaborative working practice to handle the operations Monitor the employee’s performance regularly for order processing and management Enhancing employee’s creativity and technological innovation for excellent operations at Tesco Maximise operational efficiency in long run

Financial planning

Work break down structure

Communication plan

Performance and control

The project deliverables are such as,

Good decision making skill of the staff Enhancing knowledge about operation management Improving expertise and technical skill to handle the latest technology including ERP, CRM, JIT and Kaizen Contributing positively in managing organisational operations High communication n collaborative working practice

The performance of the staff needs to be monitored and reviewed efficiently after the tanning process, so that the project success can be measured. For successful evaluation of the employee’s performance, it is mandatory for the project manager and trainers at the workplace of the organisation Tesco to provide feedback and monitor their working activities daily. The balanced scope board is hereby effective to maintain the performance of the employees for managing the organisational operational activities and in this regard the factors of balanced score board are internal process innovation, quality management, improving organisational capabilities to manage product stock and order tracking principles to satisfy the customers by managing their operations.

Project closure

The project is mainly related to providing technical training to the staff of Tesco so that the employees can handle the automated systems and software for maximising the organisational excellence through improving operational activities. The project manager tries to implement the plan, estimate budget and arrange the necessary technology and training activities for educating the staff. The project closure can be possible where the project manager can review the employee performance and their participation in managing the operations so that the organisation Tesco can handle their product stock, manage inventory and satisfy the customers through order tracking and delivering the products within effective time.

Review and critique the application of the Project Life Cycle used in a given project

The project life cycle stages are appropriate for the organisations to develop effective project planning to achieve the future aim and objectives of the project. In the above mentioned project, the organisation Tesco aims to enhance their operational management efficiency by providing technical training and developmental programmes to the staff members of the brand, so that the employees can enhance their performance and utilise the latest automated system to manage company’s order ad fulfil the customer’s requirements. The project life cycle is hereby important to give the chance to the project manager to develop the project aim and deliverables as well as create Gantt chart, work break down structure and financial planning which are effective to fulfil the project. The life cycle is also beneficial to develop communication plan and project evaluation and control where the project manager can monitor the progress and fulfil the objective of the project.

Conclusion

As per the discussion, operation management tactics are the major success factors of Tesco, where the strategy of cross docking, JIT lean management as well as automated system of ERP, CRM and GPS tracking are advantageous for Tesco to manage their operations and secure future sustainable development. The project life cycle is also beneficial in this regard to develop the project for Tesco, through which the company can improve their operational performance and ensure knowledge management through providing training and development program, so that the employees can contribute positively to operate in the global retail market and fulfil the customer’s demand.

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