Tesco's Operations Management Analysis

Assignment 1

Introduction

Operation management is the administrative business practice through which, the companies can create highest level of efficiency possible within the organisations. The operational process and management focuses on converting the materials and labour into the goods and services efficiently for successful maximisation of the profit and sales volume of the organisation (Swink et al., 2017; Heizer, Render and Munson, 2017). The aim of the study is to analyse the operational activities and management procedure of Tesco in order to understand and evaluate the effectiveness of the operation management in the organisation. Through this study, it is possible to analyse the effectiveness of the tactics of operation management including the six sigma technique and lean management process to evaluate the objective of the company.

Tesco is a British multinational grocery and general merchandise retailer and it is considered to be third largest retail firm providing quality products and services to wide range of the customers where the company is efficient in serving millions of customers every week, in the stores and also through the online website. Total employees of the company is 450000 in 2019 and the company is efficient to serve a wide variety of geographic area such as UK, Ireland, India, Malaysia, Thailand, Hungary and Poland (Tesco, 2019a). Worldwide presence and brand reputation of the company further enhance their capabilities to expand their business and maximise the profitability and sales volume of the business, where the revenue of the organisation in the this year was approximately £63,911 million and the products are supermarkets, hypermarket, grocery and clothing which are in good quality and it in turn provides a scope to the organisation to satisfy the customers by delivering quality products and efficient services according to the market trend and personal needs and preferences of the buyers (Tesco, 2019b).

Explanation of operations management

In the operation management process, the organisations develop proper strategic planning to reallocate the organisational resources and enhance the capabilities of employees to perform better and fulfil the organisational goals and objectives (Uhl, and Gollenia, 2016). In this regard, the operational management includes location strategy, scheduling, maintenance, job designing and human resource management, inventory control, design of goods and services, supply chain management, process and capacity design. These are the major steps for implementing the strategic planning of the brand and convert the raw materials and employee’s capabilities into final goods and services (Giannakis and Papadopoulos, 2016).

In order to manage the operational activities, the company Tesco is efficient to develop effective strategic planning for proper supply chain management and distribution network management so that the final good ad services can be distributed well according to the market trend and customer’s demand. As per the operational process, the company develops the aims and objectives of the organisation, where the aim of Tesco is every little helps, where the company focuses on delivering quality products at competitive price so that the customers can afford it and can make effective purchase decision for extra unit of goods. The performance objectives of Tesco are speed, flexibility quality, cost and dependability, where the organisation is at delivering high quality products and services by maintaining its cost o that it is possible to serve the customers at competitive price (Tesco, 2019b).

After developing the performance objectives and aims of the organisation, it directs the planning process and adds values to the working relationship. Designing the products according to the plan, managing supply chain, tracking the orders and stock management are controlled properly through the computerised database, GPRS system and Information and communication Technology (ICT). After that, for delivering the quality products and services, the company focuses on supply chain management, maintaining distribution network, lean system and capacity management and planning and control for successful customer service. In this regard, the initiatives of point of sale scanning and centralised ordering process and distribution, automated warehouse control and electronic data interchange are appropriate for the organisation to manage their operations efficiently. The location of warehouse, automated process for managing the stock and warehouse control as well as electronic database are effective to deliver high quality service to the customers within appropriate time. The strategy of Just in Time and Jidokha are such initiatives which provide a scope to Tesco to strengthen their supply chain and track the market demand efficiently to serve the customers efficiently. Consistency in delivery of the products, focusing on what just needed, when needed and where needed are the main focus under Just in time through which the company maintains it speed to deliver the quality products. On the other hand, the one by one confirmation, respond the customers instantly, enabling the machine and automated system to perform better under Jidokha are effective strategic initiatives of Tesco to develop their operational activities proficiently (Tesco, 2019b).

Review and critique of the implementation of operations management principles

The lean management and six sigma principle are effective for the organisation to implement the strategic planning for warehouse management and maintaining the stock at the store in order to serve the customers effectively. In this regard, the strategy of demand-driven product planning, logistics management system, warehouse management through automation process, order execution through electronic database and POS database and stock transfer from one location to other effective to implement the organisational strategic planning for serving the customers proficiently. In addition to these, cross docking and research and development process of Tesco for easy tracking of products, providing unique identification and security an controlling the supply chain are effective for faster product process and delivering the products with lower cost and higher employee performance (Fernie and Sparks, 2018.). The principle of applied lean distribution for managing waste, as well as reducing inventory cost, managing transport system, inventory control mechanism are effective for Tesco. Over processing and over production are effective to handle the supply chain process as well as implement the process for better performance so that the above mentioned performance objective can be achieved well. On the lean manufacturing system of Tesco is also beneficial to control product designing, manufacturing, supply chin and distribution as well as excellent customer service through which, it is possible for the company to implement new technology and cut out the waste for better performance (Tesco, 2019a).

Analysing the operations management of the organisation that meets the requirements of the organisation

The above mentioned operational strategic planning of Tesco is beneficial for the organisation to enhance their performance and deliver high quality products and services to the customer’s according to their needs and preferences. In this regard, through the operational management, lean principle and six sigma strategies, the organisation is able to handle the customer’s order through electronic database as well as it is possible for the brand to maintain warehouse and logistics for delivering the quality products to the customers within effective time (Ramanathan, Subramanian and Parrott, 2017). Hereby, quality products and competitive price can be managed well where the suppliers and distributors of the company are proficient to deliver the products within proper time minimising the cost of operations.

Discussing continuous improvement trough lean principles for further recommendations

In order to improve the lean system in the organisation, it is necessary for Tesco to implement the tracking options for the customers also to track their orders online. Additionally, the company needs to provide training and development program to all the employees for better performance so that the new technology can be handled by the employees. Apart from that, the company needs to reduce cost of operations and improve quality by utilising quality raw materials and ensure over production so that it is possible to maintain proper economies of scale of operations and reduce cost of production. This is helpful for the organisation to reduce marginal cost of production and maximise its profitability. Continuous tracking orders through GPS system and implementation of ERP for resource planning in warehouse as well as implementation of ICT at different location are necessary to enhance communication and improve customer loyalty.

Analysing the effectiveness of a continuous improvement plan

The above mentioned continuous improvement planning is beneficial for Tesco to conduct more in depth research and development for improving the operational strategies where it is possible to implement the lean principles and process the system through electronic database management. The technological up-gradation further helps the company to enhance customer loyalty and it further helps to improve brand reputation in the market where Tesco can strengthen their customer’s base in long run. Through the above mentioned strategies for further improvement, the company is also able to deliver quality products to the customers within effective time and at affordable price, which is the main aim of the company in operation in the global retail chain. Through enhancing the operational process, it is also easy for the barn to ensure fast delivery of the quality products to the customers as well as improve their efficiency to serve the customers in a better and unique way. The lean management principle reduces the waste in the company as well as the six sigma provides a scope for further improvement in the operational management system through proper warehouse and stock management, tracking the orders and serving the customers proficiently.

Reference List

Evans, B. and Mason, R., 2018. The lean supply chain: managing the challenge at Tesco. London: Kogan Page Publishers.

Giannakis, M. and Papadopoulos, T., 2016. Supply chain sustainability: A risk management approach. International Journal of Production Economics, 171, pp.455-470.

Heizer, J., Render, B. and Munson, C., 2017. Operations management. London: Pearson Education Limited.

Hitt, M.A., Xu, K. and Carnes, C.M., 2016. Resource based theory in operations management research. Journal of Operations Management, 41, pp.77-94.

Ramanathan, U., Subramanian, N. and Parrott, G., 2017. Role of social media in retail network operations and marketing to enhance customer satisfaction. International Journal of Operations & Production Management, 37(1), pp.105-123.

Swink, M., Melnyk, S.A., Hartley, J.L. and Cooper, M.B., 2017. Managing operations across the supply chain. New York, NY: McGraw-Hill Education.

Uhl, A. and Gollenia, L.A., 2016. A handbook of business transformation management methodology. London: Routledge.

Assignment 2

Overview of the case study

Project management is the practice of initiation, planning, scheduling, controlling and executing the propjet strategic plan in order to achieve the strategic goals and objectives of the project (Pell et al., 2019; Volkov and Kuzina, 2016). The project is related to catering service where the leader of the manufacturing organisation aims at providing catering service to the employees at Midlands. The catering service is beneficial for the organisation to provide the meal to the employees at lower cost as compared to the market price of the meal. The structured catering service is also beneficial to start onsite service where the employees can get proper meal directly from the catering service according to their needs and preferences. Hereby, it is necessary to manage the change program and implement effective strategic planning to start the catering service sustainably where the employees as well as leader of the organisation would be beneficial in near future. The major business objective behind the project planning of opening catering service is to reduce the movement of staff from the premises during the lunch break which is currently creating congestion issues in the local area. After opening the catering services, the employees will get the opportunity to stay within the premises and get proper meal with variety of foods and beverages as per their choice and preferences. Another objective behind this project planning of staring the catering business within the premises of the organisation is to help the staff members to develop healthy life style which the organisation beliefs which is a part of their corporate social responsibility and will also help to reduce staff absenteeism. These are the major reason behind the project planning, where the staff members can get quality food products for maintaining their health condition so that their absenteeism can be reduced well. Hereby, through the catering service, the staff can be motivated and get proper food within the premises of the organisation successfully. Variety of food products and managing quality of food and beverages further encourage the staff to get healthy food for maintaining their wellbeing.

Describing Project Life Cycle (PLC)

The project life cycle is effective for the project development where there are four major stages such as project initiation, planning, execution and closure (Steenkamp, and Bekker, 2018). The first stage is project initiation, where developing the business case, identifying the scope of the project and project stakeholders are necessary through which the project leader can identify the proper way to develop the project efficiently (Stark, 2015). The second stage is project planning, where the creating workflow document, gathering resources and estimating the budget are necessary as it is important to reallocate the organisational resources and enhancing the capabilities of the employees in order to make the project successful (Harrison, and Lock, 2017; Lock, 2017).

The third stage is project execution under which, briefing the team members, monitoring the quality of work and managing the budget are essential, where the leader of the project is able to manage the workplace and lead the employees towards achieving success (Joslin, and Müller, 2015). The fourth stage of PLC is project closure, where analysing the project and team results, documentation of the project and account used and budgeting are evaluate through which the project can be closed proficiently (Meredith, Mantel Jr, and Shafer, 2017).

Analysing each stage of PLC for implementing the project

Initiation:

Under the project initiation, developing the project case study as well as identify the scope of the project are necessary to initiate the project planning. In this regard, the case of the project is that there are 1250 employees in the organisation and it is problematic for the local residents during the lunch time, as the employees are going out of the premises for their lunch. It is noisy for the residence due to high numbers of employees, misplaced during the lunch from the organisation premises and it creates congestion issues in the local areas. Hereby, the project is necessary for keeping the employees within the premises and provides them proper catering services at affordable price where the organisations will ensure proper quality of the food and beverages so that the health and wellbeing of the employees can be managed well. The scope of the project is that, the employees are not misplaced during the lunch break and they can stay within he the premises of the organisation due to onsite catering service. In addition to these, the health and safety of the workers can be managed through delivering high quality and hygienic food as well as the absenteeism of the employees could be reduced. These are the major scope of the project of opening the catering services within the premises of the organisation. In addition to these, in order to initiate the project, it is necessary to identify the stakeholders of the project, where the major stakeholders of the project are organisational leader, management team of the catering service, staff for maintain the warehouse and logistics of raw materials, chef and the front line staff who provide the service to the employees. On the other hand, the employees, shareholders and organisational managers are also the external stakeholders of the project who are also contributing in the success of the project proficiently.

Planning:

Under the project planning, there needs to create proper workflow documentation, gathering resources and estimating the budget, which are evaluated further.

As per the work break down structure, the catering service has four sections, such as planning, facilities, operations and food. Under the planning section, it is necessary to schedule the resources, invest proper financial resources as well as develop the physical infrastructure in the organisation to open the catering service, in addition to these, the facilities need to be managed well, where employee’s safety and security will be managed and proper ordering system, automation process of verification of the employee’s code within the organisation, clear billing process will be effective to manage the transparency and accountability of the service. under the operational planning and food section, it is necessary to maintain stock the raw materials through cold storage and ensure to utilise the quality raw materials for the food and apart from that, managing the quality of food, presence of Varity of options in the catering service and cheaper price would be beneficial to attract the employees and make the project success.

As per the cost benefit analysis, the total monthly expenses of the project is approximately $11,000, where it would be expected that, the organisation can earn approximately $20,000 in one month by providing the food to the 1250 employees at cheapest possible rate. Hereby, it would be advantageous for the organisation to start the catering service within the premises in order to gain profit and help the employees to choose quality food and beverages according to their choice and preferences at lower price.

Execution:

For execution of the project the planning is necessary for controlling the budget, monitoring the working and managing the budget.

Closure:

In order to close the project successfully, analysing the team performance through group discussion, continuous improvement and monitoring in daily basis as well as utilising the resources would be helpful to serve better catering service to all the employees. In order to make the project successful, it is necessary for the manager of catering service to provide proper training to the staff in order to serve efficiently as well as the manager also focuses on physical environment and technological advancement in order to maintain electronic verification system and developing computerised billing system to maintain transparency and accountability which further helps to make the business ethical and manage corporate social responsibility by serving quality food products to the employees and creating values for them.

Reviewing the effectiveness of PLC in application in the project

The PLC is effective to implement the project of opening onsite catering service, where four stages provide a scope to follow clear planning and initiation of the project in order to make the project successfully (Nicholas, and Steyn, 2017). Proper project planning, cost benefit analysis and work break down structure are also developed well with the help of the PLC.

Reference List

Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. London: Routledge.

Joslin, R. and Müller, R., 2015. Relationships between a project management methodology and project success in different project governance contexts. International Journal of Project Management, 33(6), pp.1377-1392.

Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and controlling. New York: John Wiley & Sons.

Meredith, J.R., Mantel Jr, S.J. and Shafer, S.M., 2017. Project management: a managerial approach. New York: John Wiley & Sons.

Pell, R., Wall, F., Yan, X., Li, J. and Zeng, X., 2019. Mineral processing simulation based-environmental life cycle assessment for rare earth project development: a case study on the Songwe Hill project.

Steenkamp, J.R. and Bekker, M.C., 2018. Validating a project life-cycle review framework for mining projects at Exxaro. South African Journal of Industrial Engineering, 29(1), pp.74-85.

Volkov, A. and Kuzina, O., 2016. Complementary assets in the methodology of implementation unified information model of the city environment project life cycle. Procedia engineering, 153, pp.838-843.