Operational Management Principles and Project Project

OPERATIONS AND PROJECT MANAGEMENT INTRODUCTION Ad 3 PART 13 1.Introduction of the organization3 2. Different techniques which can be used to ensure the quality, tenure and scope in the implementation of the project13 CONCLUSION 14 REFERENCES 15 INTRODUCTION PART 1 Operational management refers to the managing of all the activities involved in the operation of the businessthat is effectiveplanning, organizing and controlling the activities of orations. Present study is based on the operation management principles which helps the company in effective

OPERATIONS AND
PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1.Introduction of the organization................................................................................................3
2. Operations versus operational management............................................................................3
3. Implementation of principle of operational management in the organization\........................4
4. Analysing the operational management in meeting the requirements of the organization......5
5. Discussing continuous improvement.......................................................................................6
6. Continuous improvement plan bases on reviewing of the operational management principles
......................................................................................................................................................6
7. Justified recommendations for improving the operation functions ........................................7
PART 2............................................................................................................................................7
1. Importance of the new product, target market and its cost benefit analysis of project............7
2. Explaining the each step of the life cycle in context with the project.....................................7
3. Preparation of Work breakdown structure for the development of the new product...............8
4. Gant chart which is based on the Work breakdown structure...............................................10
....................................................................................................................................................11
5. Theoretical and the conceptual arguments in order to justify the use of the project
methodologies, leadership and tools required............................................................................11
4. Different techniques which can be used to ensure the quality, tenure and scope in the
implementation of the project....................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
PART 1
Operational management refers to the managing of all the activities involved in the
operation of the business that is effective planning, organizing and controlling the activities of
orations.
Teso is the British based multinational groceries and the general merchandise retailer
company. This is largest retailer all over the world if it is measured in terms of the gross revenue.
Present study is based on the operation management principles which helps the company
in effective implementation of their process to offer quality goods and services to the customers.
Continuous improvement strategy will also be explained in the report which act as a tool for
improving and maintaining the quality of goods and services.
Furthermore the report will include different stages of product life cycle model which
helps to describe the different stages of the product life cycle model on the project which is
given in the report.
1.Introduction of the organization
Tesco Plc is the multinational groceries and the general merchandise retailer company.
Th company is British based which is headquarter in Hertfordshire, England,UK (Jiang, 2016).
The company is considered to be the largest retailer all over the world if it is measured in terms
of the gross revenue.
The company is also the ninth largest retailer in the entire world measured by the
revenue. Dave Lewis is the Chief Executive officer of the Tesco Plc and company having
subsidiaries which includes the Tesco Mobile, Tesco Bank, Booker Group ,Tesco family dining
Ltd., Tesco Ireland, and many more .
The company having 6569 shops across the world. Its product are offered at
supermarkets, superstores, Hypermarket and convenience shop. Tesco earned yearly revenue of
£57491 million and net income of £1208 million(Häkkinen, 2015). They owned 460000 number
of employees in entire organization. They are considered to be rte market leader og groceries in
UK and they have expanded their shops in around 7 countries across Asia and Europe
2. Operations versus operational management
Operations are the division the organisation which carry out the function of the planning
and operating .operations are generally the outcome of the harvesting value from the assets.

Generally the conversion of raw materials into semi finished goods and than to finished goods is
considered to be the process of operations performed by the business organisation.
Operational management is basically the administration of all the business practices and
activities in order to create higher level of efficiency in the organisation(Zehnder, 2015). It is the
entire management of converting the raw materials into the goods and services which can further
be delivered to the customers effectively and efficiently in order to earn and maximising the
profit. This the area where management is concerned with the designing, planning, organising
and controlling the operational or production process.
3. Implementation of principle of operational management in the organization\
There are different principle of operational management which is need to implement in
the organization for effective and efficient performance of the operational activities of the
organization(Adibe, 2015). Principles are :
Principles of managing operations
This is the principle which focuses in making the effective and efficient decisions in
order to manage all the activities indulged in the operational activities in order to mange and
control the organizational process.
Principles of manufacturing management
This principle implies about the modern concept and technology needs to be adopted y
the Tesco in order to improve the manufacturing process which will result in improvement of
product quality and increasing profitability of the business(Molnar and Peleg, 2015).
Principles of operation planning
This focuses on knowledge of the manufacturing planing and techniques which business
needs to implement which is used at each level of the entire planing process in order to improve
the process of operation in the business.
Principles of inventory management
This is the principles which lay emphasis on tracking and maintaining the inventory and
also the clarification of the roles and responsibilities regarding controlling the inventory level of
the business(Rohr, 2015).
Principles of distribution and logistics
The principle needs to implement in business as it involves the complete and efficient
planing of distribution and logistic management of the products, the activities of warehousing ,

transportation , distribution channels etc(Brunel, 2015). in order to make the effective supply of
gods and services to satisfy the needs and ants of the customer by fulfilling their demand
effectively.
4. Analysing the operational management in meeting the requirements of the organization
Operational management is considered to be the responsible for all of the activities of
the creating the goods and services from the planning of availability of raw materials sources to
the supply of the goods to final consumers to fulfill their demand(Harrison and Lock, 2017). It
manages all the resources of the organization like men, material, machines, technology, financial
resources, people and also the services which is required ta the marketplace. the entire chain of
the events need to be well managed for the business in order to earn profit and to achieve the
organizational goals. there are some of the essential foundations of the operational management
which are explained as follows:
Planning: operations managers needs to continuously forecast , pan and adjust the
processors according to situations and conditions(Kerzner and Kerzner, 2017)
Process: producing gods and services needs a strong repeatable process
Efficiency:mangers need to use all of the resources optimally and to eliminate nay
unnecessary wastage. mangers are required to use resources and perform the activities effectively
and efficiently.
Cost control: Managers are require to perform the production function by efficiently
managing the cost according to the cost structure set by them,(Heizer and et.al., 2017)
Quality: Good and better quality is required by Tesco to maintain in order to satisfy the
needs and wants of the customers.
Continuous improvement: companies need to focus on constantly doing new thing in
production process for being competitive ans also to retain the customers for long.
Technology:using technology effectively and efficiently will helps the company to lead
them in competitive environment and also attraction of the customers towards it.
Profitability: execution of all the above factors will leads to increase the profitability of
the organization.
Hence it can be concluded that the above all activities are required to implement in the
organization for effective and efficient management of resources which will help in achieving
the organizational goals efficiently.

5. Discussing continuous improvement
Continuous improvements is also called as continual improvement process which is
considered to be the continuous and ongoing efforts for improving the products,processes and
services. These efforts bring the continuous and incremental improvement over the time and
also the breakthrough improvement all at one time(Binder, 2016). This culture is shown in Tesco
for the boosting the engagement of the employees and reducing the turnover rates. Employees
giving full efforts efficiently in betterment of the company helps in achievements of
organizational goal There are many different ways of continuous improvement in the
organization which includes adoption of the kanban board, Meetings for continuous
improvement, bringing a leader , optimizing communication, making continuous improvement as
part of the culture, adopting tools and techniques in order to take the continuous improvement in
the organization which ultimately helps in achieving the organizational goal effectively and
efficiently(Wilson, Bhakoo and Samson, 2018).
The ongoing and continuous efforts for improving the products, process and services are
seeking incremental improvement in the organization.
6. Continuous improvement plan bases on reviewing of the operational management principles
Continuous improvement plan is generally set of the activities which is designed to bring
the gradual, continuing, ongoing improvement in the products, processes and services with the
constant reviewing, measuring and taking the actions in organisation.
Continuous improvement plan:
Identifying -Identifying of the requirement where the improvement is required is that
arrangements can be made for better availability of resources through which improvements can
be made.
Planning- planning in relation to the requirement of resources is being done in this stage
and also importing the academic and practical data for defining and designing the assessment
activities are performed under this stage(Sears and et.al., 2015).
Execute- Execution of planned activities so that goal can be achieved and tracking the
progress for matching the actual performance with planed and fro taking corrective measures in
order to eliminate the deviations.
Analysing and review : Built in the tools for effective analysing and reporting the data to
the users and also reviewing the performance for any further plan.

7. Justified recommendations for improving the operation functions
In order to improve the operational function of the organization Tesco needs to focus on
optimum utilization of its resources so that effectively and efficiently the operational and
production function can be performed(Sears and et.al., 2015). The resources being efficiently
manage will also lead in betterment of the completion of process.
Conversion of raw material to semi finished goods and than to finished goods is the entire
process. which needs to be effectively done as all the activities and departments are interlinked
with each other . Delay in one activity leads to stoppage of another and resulting stoppage of the
entire production process.
To eliminate the company needs to execute the integrity and efficient communication
between all the departmental activities so that smooth flow of activities can be done and it will
lead in achievement of the organizational goal.
PART 2
A) Project report on project life cycle for project of developing new product
1. Importance of the new product, target market and its cost benefit analysis of project.
The new product is capable of satisfying the needs and wants of the customers as the soft
drink are need to supplied at target market. The market atw here company is planing to supply
their goods is where the people are not be to afford such drink made of fresh fruits(Sterman and
et.al., 2015). This new product which focusing on development of drink using spring water is the
better attraction of customer a sit will be comparatively cheaper and also indicating optimum
utilisation of all the resources.
This is considered to be cheaper as it is not using the natural preservative or anything
which is costly for preserving the juices and drinks. The company suing the natural substance
that I spring water and wit h just small contribution for the water filter it can be easily available
and hence resulting in very low cost .
2. Explaining the each step of the life cycle in context with the project
There are different stage of product life cycle of the new product from which every
product has to go through and the steps for product t life cycle are ;

Introduction stage: this is the stage where the spring water drink is been introduced in
the market for the first time and sales are increasing as new product bring innovation in market.
The market is less competitive in initial stage which leads to more chances of generating higher
profits for the company.
Growth stage:It is the stage where growth of products tends to increase as product
develop the habitual customers and also leads in growth in sales. more customers who are getting
aware about the product and are attracting towards it which resulting in higher production and
ultimately contribute towards the economies of scale. In this stage company is at stage of earning
higher profits as product is highly demanding in the market(Ravinder and Kollikkathara, 2017) .
The competition also tends to increasing substitute and similar products are also start entering
into the market.
Maturity stage:this is the stage of maturity where tough competitors have entered into the
market and cost of the product also decrease due to larger volume of production .fewer buyers
are left in the market for the product as substitute of product increase sin the market.
Declining stage: this is the stage where the profit and sale of the goods started declining
as due to the elimination and deletion of the product from the market(Wilson, Bhakoo and
Samson, 2018). As market is showing negative rate of product which also results in declining
sales volume,. Profit starts diminishing and considered to be the last stage of the product.
3. Preparation of Work breakdown structure for the development of the new product
Activities
Planning
Availability of resources
Budget
Production place
Labors required
Ingredients research
Research and development
Collection of data regarding its demand

Collection of spring water
Availability of water filter
conversion
Operation activities
Supporting and handling the equipment
Selection of target market
Quality check
Quality control
sample
feedback
Actual production
Efficient management
Distribution and logistics
Promotional activities
Tracking the inventory
controlling
Reviewing and monitoring

4. Gant chart which is based on the Work breakdown structure

5. Theoretical and the conceptual arguments in order to justify the use of the project
methodologies, leadership and tools required.
Project methodologies are generally considered to the system of practice , procedures, rules and
techniques which is used by those who are in the discipline. there are different types of
methodologies, tools which are used for managing the project effectively and efficiently.
Some of the methodologies are ;
Six sigma:

It is the set of techniques and the tools used by Tesco for improvement of the process of
their new products. This is the continuous improvement methodology which focuses on
eliminating the defects in the product , services and process(Molnar and Peleg, 2015). This is
also considered to be the simple process for solving the problems. it consisting five different
phase which includes Defining, measuring, analyzing, improving and controlling Six sigma leads
to the managing time effectively, helps in improving the customer loyalty, brings employee
motivation, and also reduction of the production cycle time.
Lean
This methodology of the project management focuses on eliminating and reducing the
unnecessary waste and activities so that work can be done efficiently and effectively by avoiding
the unnecessary wastage and it also helps in optimum utilization of all the resources(Heizer and
et.al., 2017). on the basis of this methodology design process is basically a set of four different
stages that us evaluation, changes implementation for using resources optimally, controlling the
activities ad standardization.
There are some of the project management tools which helps in efficient managing of all
the activities which are required to accomplishment for the implementation of the activities and
project(Wilson, Bhakoo and Samson, 2018). Above mentioned Gantt chart and work breakdown
structure are some of the tools which is used by the Tesco for effective understanding of the
project and the activities used in order to accomplishment. Instead of using Gantt chart ,
company can also use PERT charts, logic network product breakdown structure which all
shows the sequence of the activities n the project.
B)Effectiveness of the PLC in project using different theories, models and concepts
PLC model is the model which helps in identifying the growth and success of the product
which company is going to launch in the market. The product life cycle helps in defining its
growth , introductory stage and also the stage where the product will decline or deleted from the
market(Ravinder and Kollikkathara, 2017). This will guide the Tesco company in knowing and
forecasting the level ad point where they need to further add the innovation into the product for
expanding their business and also to retain the customers for long.
Designing Plc will leads the Tesco company in forecasting the growth and demand of its
product so tat according,y operational management of activities can be performed(Sterman and
et.al., 2015). This will also leads the company to ascertain the growth and profit earning of the

business in particular tenure, impingement the PLC model helps the company in effective
evaluation and analyzing the demand for the product so tat according to the demand bad
requirements of the customers, product can be generated and planning can be done for making
resources available.
There are different technique through which Tesco can save cost for the project and some
of them are explained below:
preparing of budget
Budgets are considered to be the most effective technique which help business in saving their
cost and elimination of the unnecessary wastage of resources(Jiang, 2016). By effective and
efficient budget preparation will guide the company in performing their activities accordingly so
that actual performance can be matched with the budgeted performance in order to take the
corrective measures which fuhrer helps in eliminate the deviations. directing all the activities in
direction of the budget which will help the company in controlling the cost and also prevent the
company from unnecessary expenses or wastage
lean production
It is also the techniques which helps the company in eliminating the unnecessary waste
and also trying their full efforts to minimize the waste as much as possible(Molnar and Peleg,
2015). Hence these are tow techniques which helps the company in saving ad controlling their
cost which result in improving profitability of the company and its business.
4. Different techniques which can be used to ensure the quality, tenure and scope in the
implementation of the project
The techniques which is used by the companies regarding promoting their soft drinks in
the market within the stipulated time and with better quality resulting in managing the TQM
technique. Total quality management is the techniques which is adapted by the companies to
bring new ideas, rectify the problems which is raised regarding the products and services and
also analyzes the working of the procedure regarding producing such products(Sterman and
et.al., 2015). This is such technique which guides the company to work in the right path and
achieve the goals with more accurate results. It trained the employees and staff to work within
the stipulated time and also their targets are to be assigned to the leaders to motivate the
employees and staff accordingly.

CONCLUSION
From the above report it can be conclude that operations and operational management is
the essential activities sin the organization for achieving the organizational goal .principle of
operational management that is principle of managing operations, manufacturing management,
inventory manage men, distribution and logistics helsp in effective implementation of the
activities sin order to supply the product into the market. Continuous improvement is also the
strategy which helps in maintaining the quality of goods.
The report also concluded that there are different stages of product in market which is
explained using PLC model and its effectiveness in the given project.

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