[FULL ACCESS] Operations Management Case Study

This assignment provides a comprehensive analysis of Tesco's operational management practices. It includes a detailed report on the company's product life cycle process, which has led to significant improvements in the organization. The report also features a Work Breakdown Structure (WBS) and Gantt Chart to execute all tasks implemented in the product life cycle process. Additionally, it provides references from various books and journals, as well as online resources for further study.

OPERATION AND
PROJECT MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Critical review of the implementation of operations management principles in TESCO Plc
.....................................................................................................................................................1
P2. Preparing a Continuous Improvement (CI) plan based on the review and critique of
operations management principles of TESCO Plc......................................................................4
TASK 2............................................................................................................................................6
P3. Product Life Cycle (PLC).....................................................................................................6
1. Project Definition....................................................................................................................6
2. Initiation of the Project............................................................................................................7
3. Project Planning of Product....................................................................................................7
4. Execution.................................................................................................................................8
5. Monitoring and Control.........................................................................................................10
6. Closure..................................................................................................................................10
P4. Review and critique the effectiveness of the Product Life Cycle.......................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
APPENDICES...............................................................................................................................14

INTRODUCTION
Operation and project management plays an important for any organization as it helps in
improving their overall performance. Operations management is the planning and execution of
operations (or routine work) in the service and manufacturing worlds, including demand
forecasting, production planning, inventory control, quality management and supply chain
collaboration.
Present report will talk about TESCO Plc which is a retail company. It will review and
critique the implementation of operations management principles in the firm and will prepare a
continuous improvement plan based on that information. This report will analyse each stage of
the PLC and is producing necessary supporting documentation, for example, a business case,
project plan, work breakdown structure etc. and critically reviews the effectiveness of the PLC. It
will also design a WBS or Gantt Chart which will help in explaining all the tasks which are
included in the PLC process.
TASK 1
P1. Critical review of the implementation of operations management principles in TESCO Plc
Operations Management is a field of administration which helps the business to create the
highest level of efficiency that is possible within the organization to make it work effectively. It
basically helps in converting company's materials and labour into goods and services as
efficiently as possible in order to increase the profit of TESCO Plc. Operations management has
involvement of their staff, materials, equipment and technology. Managers in operations
management department take on the liberty to create and deliver goods to their clients based on
consumer's needs and preferences (Kerzner and Kerzner, 2017). There is so much of roles and
responsibilities of operation management department, for example, they manage or handle issues
which includes understanding the manufacturing and delivering processes of TESCO, checking
of their raw material stock, quality control and maintenance policies, etc. Two important factors
that are included in this system are supply chain management and logistics, which has a huge
importance in the organization (Harrison and Lock, 2017).
IPO model: This is also known as Input-Process-Output model which is widely used as an
approach that helps in system analysis and software engineering that is helpful in describing the
structure of an information processing program. This is a graphical representation that helps in
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identifying company's inputs and outputs. With the help of these information it transforms the
inputs into outputs. In this process, inputs are the data and materials that comes from outside,
whereas, output are data and materials which is flowing out of the transformation process
(Mahadevan, 2015).
 Flexible specialization: It is a process that is used in planning business strategy for an
organization to make this more competitive which can help them in competing with their
competitors effectively. There are various employees who are skilled, efficient and
having multiple skills which can help TESCO Plc to improve their performances. This
process helps to adapt the rapidly changing marketplace, which plays a crucial role for
TESCO Plc in order to increase their sales. One important feature of this flexible
specialization is that, such flexibility can make it viable to produce small batches of each
product. Firm can have so much benefit from this process as it can help them in
becoming more competitive (What is flexible specialization? Definition and examples,
2018). It will be also useful in delivering the best products as per the latest trend and
according to their customer's requisition.
 Lean production: This process is used to eliminate all the waste that is generated in the
company while manufacturing and ensuring quality as well. This approach can be applied
to all aspects of a business, such as, from designing, to production and distribution, etc.
The main objective of this process is to cut the costs by making the business more
economic and responsive to market needs as per their customer's preferences and wants.
This method helps in minimizing the process that are not useful for the company or
adding no value to their production, for example, such as keeping of old stock, repairing
faulty products, etc. (Mahadevan, 2015). For TESCO Plc it has a huge importance as this
can help them in maintaining their new stock as per the latest trend and eliminated old
goods in order to increase their sales in market. So they have to improve their lean
production system in order to work properly.
 Mass customization: This process has a huge importance on TESCO Plc as it helped
them to enhance their services and increase the customers rate as well. TESCO uses the
internet marketing to provide mass customisation for customers. But still they have to
work hard on this process to achieve their target (Mass Customization – A Strategy TO
Create a Customer-Centeric Business, 2016).
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 Agile manufacturing: This process helps in increasing the competitive advantage for the
firm in order to enhance their overall business performance in industry. It helps in
focusing on rapid response to their customer needs and preference respectively. This can
be very effective for TESCO Plc as consumers loves to get immediate solutions to their
issues as per their requirements which can help company to increase their sales in market.
There are four factors present in Agile manufacturing process, i.e., modular product
design, information technology, corporate partners and knowledge culture. Implementing
this process in their system will be very beneficial for them in order to attract more
consumers and to respond quickly to their consumer's reactions and feedback.
 Management Control System (MCS): It is a system which is used by an organization to
collect and use information to evaluate the performance of different organizational
resources like human resource, physical, financial, etc. This can be a great tool for
TESCO to evaluate the performance of their competitors which can be very helpful in
improving their performance. It also helps in analysing the goals and objectives of
organization against actual outcomes which has a huge impact on their performance (Lin
and Peng, 2018). Companies that uses management control system use both financial and
non-financial measures to analyse the data (Harris, Wang and Wang, 2015). Six sigma: It is an approach which is used for bringing improvement in an organization.
This is basically a set of tools and techniques which can be used by firm in order to
enhance their performance effectively. Six Sigma strategies seek to improve the quality
of the output of a process by identifying and removing the causes of defects and
minimizing variability in manufacturing and business processes. It is a process which
includes statistical-based analysis, data-driven approach and continuous improvement
methods which is used for eliminating imperfection in a product, procedures or services.
TESCO Plc can have a huge benefit from this process as it will be helpful for them in
improving their product services.
Analyzing the operation management approach of the organization:
TESCO Plc is a retail company which sells grocery, households, etc. Operation
management principles of TESCO Plc should be maintained very carefully as it is a large
enterprise and should also ensure that all the products and services are available properly to their
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customers. They have to make sure that all the methods of processing are working effectively in
the organization. Customers are very important for TESCO Plc as they can lead them to
maximize their profit. This firm does not work in batches and focus on lean manufacturing and
avoids working in large batches (Fleming and Koppelman, 2016). This can have a huge impact
on their business as it can affect their working pattern.
P2. Preparing a Continuous Improvement (CI) plan based on the review and critique of
operations management principles of TESCO Plc
TESCO Plc's current operational management has so much scope for the improvement in
order to deal with their competition, domestic saturation, and self-development demand is
necessary. For this they have to expand their operations to overseas markets and is using its
business model in different countries, for example, China. TESCO Plc has gained significant
success and its growth in foreign markets is rapid. Company has also focussed on improving the
delivery system and innovating the supply chain for delivering better quality products and
services to customers. To improve supply chain management, TESCO Plc also embraced new
technology by introducing the RFID technology. This technique will help them in tracing a
product throughout the chain of supply by using scanning the barcodes (OPERATIONS
MANAGEMENT: A CASE STUDY OF TESCO, 2016). To make these improvements in the
company it is necessary to prepare a Continuous Improvement (CI) plan which can be very
beneficial for them in order to improve and enhance their services in market.
Continuous Improvement Management
This is the most effective approach which can be used by TESCO Plc to make significant
changes or improvement in their company. Continuous Improvement (CI) plan helps in the
improvement of company’s operations that are weak and are improved gradually by them. CI
helps in making improvement in their products, services or operations, etc. This can include
various factors in it, such as, lean principles, Supply Chain Management, New Product
Development, Customer Relationship Management, Education and Training Management, etc.
that are present in TESCO Plc and need some improvement. These factors are explained below:
 Lean Principles: For the improvement in lean principles for TESCO Plc it is necessary
for them to manage their operational department effectively in order to reduce the amount
of waste in their company. This will also help in adding value for their customers.
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 Supply Chain Management: It is very important to have a good management of their
supply chain system as it has a huge impact on their business. To improve this system,
TESCO Plc can continuously monitor their inventory levels and can check where they
take up too much time. They can check their vendor's performance, etc. All these
approaches will be very beneficiary for TESCO Plc in making effective improvement in
their operational management. They can focus on their customers rather than the
conventional approach of competing with their competitors. This will help in increasing
the sales (Mahadevan, 2015).
 New Product Development (NPD): It’s the process which is used in the launching of
new products in the market. TESCO Plc has to improve this service as it can help them in
generating a good revenue for them. For this they can interact with their customers
directly to understand their needs and preferences so that they can deliver the best
products.
 Education and training management: This is the most important factors which has a
huge impact on the operational management of TESCO Plc. Improving management
sometimes requires an organization to consider the education and training aspects of its
employees. For example, there are improvement needed which require new equipment
and machines that are required to provide proper training to their employees on how to
use them (Arena and et.al., 2014). Therefore, educating and training the employees is one
way of managing improvement.
 Customer Relationship Management (CRM): These are helpful in making a good and
healthy relationship with their customers as it is very important for TESCO Plc to satisfy
their customers from their goods and services respectively. It is a type of principles,
practices and guidelines an organization abides by when dealing with customers. To
maintain their relationship with their customers they will interact with them by various
methods, such as, through emails, telephonic conversations, etc.
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TASK 2
P3. Product Life Cycle (PLC)
TESCO Plc is planning to introduce a new healthy and organic drinks. Reason behind the
launch of this product is that customers nowadays preferring healthier and energy drinks as they
are health conscious.
1. Project Definition
Aim: The main aim behind this project is to introduce an entirely a new product in market which
is unique to what their competitors are offering.
Objective of Project: Objective behind this project is that,
 To increasing their overall revenue and profitability rate.
 To expand their business in different market segments.
 To increase health consciousness among people.
 To make their identity unique in their respective industry.
Product Specifications: New product will be totally organic which will contain no chemical
products in them. It will be totally natural and no added sugar juices. There are various flavours
in it, for example, avocado, grapes, orange, etc. These herbal juices are highly concentrated as
well. It will also contain various vitamins and minerals, such as vitamin C.
Responsibility or Job Design: There are various roles and responsibilities of different depart in
the organization, such as,
Department Responsibility
Regional Manager The main role of a regional director is to check all the work
that is being performed in the organization.
Store Manager They have to make sure that they have sufficient stock of their
new product in the store. This has to be managed very
properly.
Supplier Main role of supplier is to supply the product on time to the
store manager so that all the work is managed properly.
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Distributor It is very important for the company to select appropriate
distributor which can help them in distributing their products
to their every outlet.
2. Initiation of the Project
 Conducting Feasibility study (Survey): Before launching the product, it is very
important to do a survey to get all the knowledge that can be very useful for the company
to sell their products. For this, firm has asked some questions to approx., 20 different
people to get that information. Based on the answers of those questions, it becomes easy
for them to plan their product. These questions have helped the company a lot in making
their product most effective and unique.
 Redefined aims or Objectives: Their aim is to introduce an entirely a new product in
market which is herbal and healthy at the same time. This will help TESCO Plc to
increase their sales and revenue. Their objective is to expand their business in different
market segments and increase health consciousness in people so that they can leave a
healthy life. This will make them unique and different in their respective industry.
3. Project Planning of Product
 Schedules (WBS & Gantt chart): This is the process which will help in understanding
all the tasks that are required by the company for the completion of this product life
cycle. This will include, generation of idea, its execution, etc.
 Resources: In this section it will involve all the resources that is required for product
launch. This will include, Human Resource Management, material, supplier, etc. All
these have different roles and responsibilities in the manufacturing of this product range
of organic juices (Dillon, 2015).
 Staffing: In this method, all the employees including managers and labour are considered
by TESCO Plc. This has to managed properly by the company in order to effectively
launch their product in market.
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 Detailed Budget: In this budget process, company will prepare a forecast cash flow
statement which will have all the details of the expenses that will be used in this product
introduction in market, such as, on its preparation, promotional activities, etc.
 Risk Management: It is the identification, evaluation, and prioritization of risk factors
that are present in the market. With the help of this process it becomes easier for TESCO
Plc to accomplish their task. It helps in minimizing, monitoring, and controlling the
probability or impact of unfortunate events (Vaníčková, 2017).
 Quality Management: This helps in managing the quality of the product to make sure
that they maintain all the factors related to its quality like, hygiene, quantity, etc.
 Cost benefit analysis: Also, known as benefit costs analysis (BCA), is a process which is
used to calculate and compare the benefits and costs of a course of action in a given
situation for their particular product in market.
4. Execution
Implementation of task in WBS and Gantt Chart for the following product is given
below:
WBS
Task
Mode Task Name Duration Start Finish Predecessors
Auto
Scheduled
Initiation or Planning
Phase 11 days Mon 17-09-
18
Mon 01-10-
18
Auto
Scheduled Scope of the project 2 days Mon 17-09-
18 Tue 18-09-18
Auto
Scheduled Aim and Objectives 1 day Wed 19-09-
18
Wed 19-09-
18 2
Auto
Scheduled Resources 5 days Thu 20-09-18 Wed 26-09-
18 3,2
Auto
Scheduled Estimated Budget 3 days Thu 27-09-18 Mon 01-10-
18 4
Auto
Scheduled Implementation 13 days Tue 02-10-18 Thu 18-10-18 5,1
Auto
Scheduled Market Analysis 6 days Tue 02-10-18 Tue 09-10-18 5,3,4
Auto
Scheduled Strategic Formulation 3 days Wed 10-10-
18 Fri 12-10-18 7,5,4
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Auto
Scheduled Work Distribution 4 days Mon 15-10-
18 Thu 18-10-18 8
Auto
Scheduled
Monitoring and
Controlling 3 days Fri 19-10-18 Tue 23-10-18 9,6
Auto
Scheduled Closure 2 days Wed 24-10-
18 Thu 25-10-18 10
Gantt Chart:
Critical Path:
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5. Monitoring and Control
Key Performance Indicator is an index that helps in identifying the overall performance
of their product. TESCO Plc can use these key performance indicators at multiple levels in order
to evaluate the success at reaching targets and achieving their objectives effectively (Dillon,
2015). It is very important for the organization to measure the progress of the products and make
sure that they are fulfilling the aim and objectives which has been set for that particular product
range. Any issues or conflicts related to the products has to be carefully analysed and resolved as
early as possible by TESCO Plc. Key Performance Indicator (KPI) and balance score cards will
help in analysing their overall performance of juices in market. Example of key performance
indicators are financial metrics, in this the product performance of product is measured in terms
of profit, cost, day sales. Other is in terms of level of satisfaction gained by customer by
consuming specific product.
6. Closure
For the closure process, overall evaluation of the product life cycle is done. This helped
them in analyzing exploration, screening, analysis, development, etc. of that particular product.
P4. Review and critique the effectiveness of the Product Life Cycle
The concept of product life-cycle facilitates integrated marketing policies which
organization has implemented in their system. This organic fruit juices will be very beneficiary
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for their customers as it does not have any chemical components. It is fresh and healthy at the
same time which makes these juices unique and different from all other energy drinks that are
available in market (Larson and et.al., 2014). Some negative outcomes which can arise for the
company is that as the product does not have added preservative in them there are chances that it
can get expire early, which means this will be difficult for TESCO Plc to stock their products for
longer time. To deal with this situation they have to produce these juices in small batches.
CONCLUSION
From the above report, it can be concluded that operation and project management plays
an important role for an organization to manage their work effectively and properly. This study
has focused on the implementation of operations management principles in TESCO Plc and
evaluating their work process. This report has also helped in preparing a Continuous
Improvement (CI) plan which helped the organization to make significant changes or
improvement in their company. This report has also designed Work Breakdown Structure (WBS)
and Gantt Chart to execute all the tasks that are implemented in the product life cycle process.
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REFERENCES
Books and Journals
Arena, M. and et.al., 2014. A model for operationalizing ERM in project-based operations
through dynamic capabilities. International Journal of Energy Sector Management. 8(2).
pp.178-197.
Dillon, N., 2015. From market trader to global player: oral history and corporate culture in
Tesco, Britain's largest supermarket. Oral History. pp.52-62.
Fleming, Q. W. and Koppelman, J. M., 2016. Earned value project management. Project
Management Institute.
Harris, I., Wang, Y. and Wang, H., 2015. ICT in multimodal transport and technological trends:
Unleashing potential for the future. International Journal of Production Economics. 159.
pp.88-103.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Larson, E.W. and et.al., 2014. Project management: The managerial process (Vol. 6).
Grandview Heights, OH: McGraw-Hill Education.
Lin, C. and Peng, J., 2018. Analysis and Solution of the Problems in the Distribution of Suning
Tesco. Transportation Management, 1(1).
Mahadevan, B., 2015. Operations management: Theory and practice. Pearson Education India.
Vaníčková, R., 2017. Application of PRINCE2 Project Management Methodology. Studia
Commercialia Bratislavensia. 10(38). pp.227-238.
Online
Mass Customization – A Strategy TO Create A Customer-Centeric Business. 2016. [Online].
Available through: <https://www.thepresidentialhustle.com/mass-customization-a-
strategy-to-create-a-customer-centeric-business/>
OPERATIONS MANAGEMENT: A CASE STUDY OF TESCO. 2016. [Online]. Available
through: <https://barbradozier.wordpress.com/2016/02/22/operations-management-a-case-
study-of-tesco/>
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What is flexible specialization? Definition and examples. 2018. [Online]. Available through:
<https://marketbusinessnews.com/financial-glossary/flexible-specialization/>
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APPENDICES
Questionnaire
Question 1: Do you prefer juices which has less content of carbohydrates or sugar, etc. ?
A) Yes
B) No
C) Others
Question 2: Does price affects you?
A) Yes
B) No
C) Others
Question 3: How often you prefer healthy and energy drinks over coffee or cold drinks?
A) 10-30%
B) 40-60%
C) 70-90%
Question 4: Does organic or energy drinks impact the overall body performance?
A) Yes
B) No
C) Others
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