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Operation
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Strategic importance of operational management............................................................1
1.2 Operations function of selected organisations..................................................................2
1.3 Five performance objectives that underpin operations management...............................4
TASK 2............................................................................................................................................6
2.1 Range of approaches to quality management and its improvement.................................6
2.2 Evaluate the quality of systems and operations in Tesco and Sainsbury's......................7
TASK 3............................................................................................................................................8
3.1 How information systems can benefit supply chain management...................................8
3.2 Advantages of e- procurement for supply chain efficiency..............................................9
3.3 Contribution of IT system to supply chain efficiency in Tesco and Sainsbury's...........10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Operational management refers to do all planning and manage things in that way so
organisation leads to achieve all over objectives. In operational management there are few thing
which they manage and with the help of delegates (Nakayama and Bucks, 2012). In this
management they are consist of some activity planning, organising, staffing, leading, controlling.
Motivation, time management and many more through there all activities company Tesco can
reach to their respective goals. In this report is going study about all functional activities and
how to deal with circumstances and negotiate them efficiently and effectively so they achieve
their goals. Every structure needs this because it provides a knowingness of security and
motivate employees to do hard work as well as team work too. Due to this impressive direction,
they will easily cope up with each other and it will also set better tuning and coordination
between them. By adopting this system also leads to provide better ambience and environment to
workplace, so employees will never take activity as encumbrance.
TASK 1
1.1 Strategic importance of operational management
Strategic management can be simple defined as formation of strategies or schemes in order to
achieve the aims and objectives of organisation. The vision, mission and objectives of Tesco are
listed below :
Vision Mission Objectives
 Modern, innovative
and advanced ideas.
 Desired and needed
around the globe.
 Creating value for the
consumer.
 Making loyal
connection with their
users.
 Tesco wants to be stay
leading in retail super
market.
 Produce cheaper
products in relation to
their competitors.
This is essential for company's growth and financial growth of organisation. This can also help
structure's to satisfy customers by their competitive preferences. There are few importance of
strategies in operational managements are :-
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 Improves productivity:- It helps in measure employees accuracy and use them in
organisation's production by using their skills. By planning these strategies in operational
structure it will improve their efficiency and improvise their skills too (Niknam and
Golestaneh, 2012). Through which organisation utilize all of their ability in productive
manner, and this will leads to financially wealth and reputation and expansion of
business. Quality approach in management:- In this management, there is great delegation system
through which they can easily find out the defects, faults. On time by finding mistakes
then, they concentrate on rectifying by re -testing and re -manufacturing. Their also one
goal is to provide consumers good quality product and set great image of organisation.
For example:- They usually re testing to their product every week and if they find any
default sample. Then they send back to the factory for re manufacturing. That's how they
maintain quality. Management coordination and control:- This function is specially in company like
Tesco. Control and coordination is very broad range activity like under this phase they
timely check out the work. If things is going smoothly or not if they are going according
to the plan effectively and efficiently all these activities comes under this process. Its
important to go with the tuning with each of the department (Strande and Brdjanovic,
2014). if there will be any fluctuation in one then rest of the departments will also go
slow. To get rid of these kind of situation they have to work accordingly with time.
 Facilities management:- It is also necessary to make available all the facilities to
employees on time. All operational activities is depend on the impressive management of
installation. If there is any need in company of computer systems, lights, plans,
machineries, then they should manage immediately for employees so they should not
suffer by discontinuity. So these facilities demands to be managed and produce great
quantity of products for company Tesco.
1.2 Operations function of selected organisations
Operation management can be simply defined as tangled set of activities, which involve
many functions through which corporation can achieve their goals. Day by day competition is
increasing globally and to stand in competition. Tesco should develop their capability to reach
their goals and establish adjustable needs. Tesco is known for greatly responded to complexity,
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risk and competition. The strategy of company is evaluate and analysed from some of aspect are
:-  Designing :- From product development, designing start. Basically they maintain quality
and develop the product on basis of features, characteristics, design, shape, colour all
things are compiled in these schemes (Pinkerton, 2011). They design in very artful way
and try to satisfy customer's expectations. They maintain the quality in between with
fully utilization of machineries, and updated system is essential for improvisation. Planning :- Planning is strategy which organisation think in advance for achieving
respective goals. This process helps in to cooperate with changing environment. This is
important for organisation if they don't go with trends then they will be outdated. people
deny to accept them because now everyone demands for new, updated, creative so all
plans made according to current scenario. Planning depicts as a bridge on one hand it
shows where we are and on other hand , where company wants to reach according to that
all scheduling is done by top management. Managing :- When company allot employees for team projects. They should concern
about that initially all members of the team are on same page. Because team work plays
important role in every successful operational management of organisation (Hefetz and
Warner, 2011). It is very important to put employees after measuring their skills and
make sure that employees is doing right work, according to their capability, at right place,
at right time. If every employee is doing work as according to their preferences and
capability then these is more chances of improvement and better performance.
 Coordination:- This is very important phase of company. They have to interrelate all he
thing altogether so they make efforts for better result. Somewhere all department are
interrelated to each other at some stage (Zhang and Chen, 2014). For example :- planning
→ organising →Managing → staffing → leading → controlling between all of them
they have to balance it with coordination.
Pestle analysis of Tesco are done below :
 Political factor : Tesco is operating their business in globally and this is why political
instability creates problems for the venture. Its performance is highly impacted by the
political and legislative conditions in all the countries where it is doing its business
including European Union.
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 Economical factors : One of the major influential factor on the economy is higher level
of unemployment. This minimises the effective demands of various goods and negatively
affecting the demand needed to manufacture such products.
 Social factor : It affects positively as the current trends of British customer is moving
towards bulk shopping. This provides benefits to the company.
 Technological factor : The development in the technology is giving benefits to both
corporation as well as customers. Tecso is using various advanced technologies such as
wireless devices, radio frequency identification, self check out machines, etc.
 Environmental factors : The government has stated to produce less waste materials,
reduction in the resource consumption so that less damage to the environment can be
made.
 Legal factor: Government is imposing high taxation rates that impacts negatively on the
turnover of venture as large sum of money is going in paying such taxes only.
1.3 Five performance objectives that underpin operations management
These operational objectives are very broad and these management has impact on
stakeholders, Stakeholders are defines as those persons who are directly and indirectly connected
to company. There are five groups who are affected by these operational objectives are as
follows:- customers:- These are ones who has capability to affect any business. Whenever they
make objectives primarily they apply on them these group of masses. Suppliers:- Mainly operations effect on them, they expand themselves and supply the
goods and raw. Shareholders:- They are in major receiver, by operation they produce good and services
and unlikely they expand business and get profit by this. Employees :- Employees will get opportunity to better explore themselves so they will
also engage in future also with company.
 Society:- There is no direct connection with organisation but there will be large impact on
the society like how they behave in society. For example :- social and environmental
responsibilities like if they alert for them or not.
There are Five performance objectives are as follows :-
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 Quality:- This is firstly place by company Tesco in performance objectives, Because it is
very important and important to provide it to consumer because it will satisfy them.
Consumer are the ones who approve quality and then buy them. Firstly main objective is
to gratify clients and according to their review (Sakaue and et. al., 2013). It is important
to maintain quality it will also raise up reputation in front of consumer and they will
become loyal clients for the brand. This also help in building better image in society and
goodwill then automatically it will intrigue to many customer. Speed:- It is somewhere inter related to the internal and external customer demands and
its also called as a speed of outcome. Externally, it is important though they easily
respond to company whether they like it or not and through all these they quickly make
the idea about the product environment (Goodarzi, Ziaei and Shokri, 2013). Internally,
cost reduction and so much to do with this speed. They can reduce cost in manufacturing
if they faster through put information then that will. Dependability:- It refers to be on time. Sometime it happens that customers get product
late by time in this spam of time other brands will get chance to sale more. So, it is like
promise to customers that company will surely bring their product on time. Its important
to take care if all the consumers will get the products or not the should allocate in better
way. So every one who demands for the product will get it by time. Flexibility :- It is little bit complex because this word can be taken in various ways. But
as a operational objectives point of view it will be taken as being able to change
operations as according to the current scenario. It is important to be updated by
technologies and many other ting and make companies internal environment in that way.
Now if company Tesco will not update themselves then somewhere they will loose the
victory in race of competitive market.
 Cost:- This is complicated challenge to fix the cost f the product. In between they are in
trap of how to set cost of product. Somewhere they also have to charge profit and on
other hand they have to make it reasonable enough so that consumer can afford that
product. In this case they keep balancing these factors and set the price where they can
gain in some point of margin and make it more convenient to the consumer.
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TASK 2
2.1 Range of approaches to quality management and its improvement
Quality is a term stating how well an individual is satisfied by the product of company.
Generally ongoing performance of management involves many activities like monitor and
control management, control progress towards objectives , make adjustments effectively and
efficiently so it will get better result and through this company will earn organisational goals and
accomplish better reputation among all the market and in between the consumers by satisfying
them by providing them good products. There are few approaches of quality management that
quality can be maintained in Tesco through which company settle up improvement performances
are as follows:- Benchmarking:- This approach states that Tesco should make standards for their goods
or services and try to achieve them and make small as well as long term goals and
comparing them with other company and in order to earn profitable prospective (Niknam,
Meymand and Mojarrad, 2011). This will help in stay in competition by observing the
market. Knowledge management:- Organisation should more focus on collecting data and
creative knowledge in company to help in increase capability and and achieve the
receptive objectives (Moghaddam and et. al., 2011). Through this company can raise
growth and wealth growth too. Knowledge is basic source of any organisation and
observe them analyse and then implement them in market place.
 Strategic planning :- For a wide organisation its important to observe the market and
environment necessarily and them make plan and strategies as according to that. This will
help in identifying upcoming risk and future opportunities for growth.
 Process approach: Process approach is all about skilfulness and effectiveness. This is
also about uniformity and understanding about good processes aids in speed up the
activities.
 Systematic approach to management: The aim and objectives of organisation can be
achieved by identification, understanding and management of interrelated processes.
Corporation give their total focus on the achievement of different processes as well as
positioning antonymous processes to get best sinfulness. This means that more than one
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processes can be managed together as a complete system. This saves the time by
increasing the efficiency of work.
2.2 Evaluate the quality of systems and operations in Tesco and Sainsbury's
Quality of system is the proper functioning of all the areas of any organisation. Possible
improvement in quality of system in the companies like Tesco and Sainsbury's can be maintained
by using following principles:
 Customer focus: This is one of the important principle in maintaining quality
management. The need of users should be examined by organisation and manufacturing
should be done in same manner. This will increase the loyalty among consumers and also
helps in rising the revenue.
 Leadership: Without clear and powerful leadership organisation cannot achieve success.
So, it is very important for corporation to arrange good leaders for their employees. This
will increase the efficiency and quality of work. Leaders will assist their team members
in different situations where they faces any problem (Moghaddam, Seifi and Niknam,
2012). They encourage them in doing well so that work of team members will effectively
contribute in increasing turnover of corporation. In a team, the task of leaders is to
improve employee engagement and enhances the quality of work by motivating their staff
members.
 People involvement: An enterprise is nothing without its employee whether they are
employed for part time or full time. So, it is the task of managers to focus more on hiring
skilled workers in their corporation so that their work get effectively managed and the
need of consumers gets full-filled (Cruz and Rincon, 2012). This can be achieved by
utilising human resource department in firm. They are responsible for arranging training
and development programmes for the newly joined people. The involvement of people is
also necessary as if they get more involved with each other or if they work in a team then
they can solve any problem by sharing their ideas with each other.
 Continual improvements: Development within organisation should be done in regular
basis. This will aids in achieving aims and objectives of corporation. This also increases
the ability and assist in embracing new opportunities. Specially in hard economic times,
business if are not making benefits can adopt new marketing conditions. But this is only
possible when improvements is done continuously.
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 Factual approach to decision making: This is nothing but a logical approach that is
based on the analysis of data. This is very helpful in making decision. Decision making is
very important part of firm that are done by examining all the past and present conditions
of business. Commonly no one takes more time in making decisions. They made this on
the basis of facts. But this is not good as this will not consider all situations. So,
organisation should maintain task of decision making more properly.
 Mutually beneficial supplier relations: This process is dealing with supply chain. This
is promoting the relationship between organization and its suppliers and identifying it is
interdependent on each other (Bazmohammadi, Karimpour and Bazmohammadi, 2012).
A strong relation between company and supplier increases the productivity and also
inspires their workers to do seamless work.
TASK 3
3.1 How information systems can benefit supply chain management
Supply chain management can be simply defined as a process that aids in management of
transferring goods and services to the customers. This involves movement and storage of raw
materials and of finished products from the point of occurrence to point of ingestion.
Information system plays a vital role in supply chain management. There are various processes
that get full benefit of information system that are following:
 Order processing: In conventional era, orders are taken orally or physically. But now
with the help of information system, an enterprise can place their orders or receive orders
via different ways. Such as through phone calls, messaging, email, social media (Face
book, twitter, What's app) and also via video conference. This saves a large amount of
money as well as time (Chen and et. al., 2011). Now for taking orders workers have not
to go here and there. But this can be taken by staying at one place only. Tesco had made
their own website and offering online buying of their goods. So, people order on their
own official website also. Online business of company has increases the number of sales
drastically.
 E- procurement of products or services: One of the main advantage or use of
information technology is in e-procurement. This is nothing but the business to business
or business to user or business to government buy and sales of supplies, works and
8

services via internet. This can also be done from various other networking system. Any
one can purchase or give payment online or with the help of internet.
 Logistics including supply and transport: Supply and transport of good are also now
depending on the information system. As no one can deliver their products or services
without getting any phone call or message from their customers.
3.2 Advantages of e- procurement for supply chain efficiency
E- procurement can be simply defined as an effective seamless business to business
system which is assuring that the complete process is automatically done and this is taking the
process of procurement very high and generating a process of supply chain management that is
more economical and robust (Baek and Kim, 2011). This method of e- procurement are mostly
used in Sainsbury's and Tesco. There are several benefits of e- procurement in the supply chain
of these two companies are explained below:
 Cost reduction benefit: This eliminates the requirement of paper work as every task of
e- procurement is done on a single software. This effectively minimises the total cost of
corporation. Also, because of this less wastage of paper is done which saves a large
amount of trees from getting cut. This makes the whole process environment friendly.
This also saves a lot of time. The main beauty of this method is that it eliminates
checking or tracking of of large number of papers as this can be done via few clicks
only. Tesco and sainsbury's are taking this benefit and saving their costly time as well as
money.
 Tracking orders: As large number of corporations are searching supplies that is to be
provided on the basis of Just- In -Time. E- procurement aids in tracking those supplies
effectively in order to check where they are and where they wanted to be (Niknam and
Golestaneh, 2012). These two ventures are using e-procurement in tracking their orders
as they are concerned about that.
 Keep suppliers happy: There are several system of e- procurement that provide a means
to mechanically or automatically vigilant about the stock levels consisted by consumers.
So stock can automatically send out when the levels are very minimum or low. It is good
from the point of view of suppliers as level of stock should remain maintained rather than
, waiting for getting low level of stock by users and giving request to send item to them
urgently. The complete process is performed electronically, ensuring that suppliers are
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paid quickly and they do not have any debt with them for a long period of time. This
makes continuous flow of cash to them. Tesco and Sainsbury's are taking this advantage
in finding their suppliers.
3.3 Contribution of IT system to supply chain efficiency in Tesco and Sainsbury's
Information system is giving a large contribution in the maintaining the efficiency of
supply chain. This place a vital role in logistics management. It is nothing but a part of supply
chain management that are used in planning, implementing and controlling, flowing well as
storing the goods or services effectively from point of occurrence to point of consumption. It
helps Tesco and Sainsbury's in various ways that are listed below:
 Role of logistic services: Information technology are being used in the flowing or
delivering of goods or services from one place to another (Xiong and et. al., 2012). This
is done via providing address of the destination through text messaging, calling, etc.
 Communicate information: Information can be communicated effectively via using
different tools and techniques like social media (Facebook, twitter, What's app, email,
messaging), video conference, etc. in ventures like Tesco and Sainsbury's. All relevant
information needs to be provided to all employees and even clients of corporation (Park
and Jho, 2012). This is done effectively by using above mentioned methods. Employee
can attend meeting kept by their heads with the help of video conference without being
physically present there. This reduces time as well cost of travelling.
 Tracking and radio frequency identification: Radio frequency identification is a
technology that are incorporating the use of electro magnetic or electro static coupling in
the portion of radio frequency. This aids in recognizing any object or person. Information
technology are being effectively used in this work. Certain software are present to check
the result of RFI that are in the wave form. Both the companies are using radio frequency
identification in increasing the efficiency of their supply-chain management.
CONCLUSION
From the above based report it has been concluded that operation management is very
necessary in working any organisation effectively and gaining benefits. Without this, the
functioning of corporation gets hotchpotch and it become very difficult to maintain accuracy of
different tasks or processes engaged with that operation. There are several methods that aids in
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doing effectual operation management that are doing quality management, using electronic
procurement, etc. Information technology plays a vital role in the management of supply chain
by delivering products or services to the essential customers.
11

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