This report evaluates the implementation of operations management principles in Sainsbury's Plc, including Six Sigma methodology and Lean principles. It also includes a continuous improvement plan based on the review and critique of operations management principles within an organizational context.
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Table of Contents Introduction......................................................................................................................................3 Main Body.......................................................................................................................................3 TASK 1............................................................................................................................................3 P1. Review and critique of the implementation of operations management principles in Sainsbury's Plc........................................................................................................................3 M1. Review and critique the implementation of operations management in relation to Six Sigma methodology and Lean principles...............................................................................7 TASK 2............................................................................................................................................8 P2. Prepare a continuous improvement plan based on the review and critique of operations management principles within an organizational context......................................................8 M2 Analyse the effectiveness of a continuous improvement plan.......................................11 TASK 3..........................................................................................................................................12 P3 Applyeach stageof the PLC toa givenproject,producing necessarysupporting documentation for completing the project............................................................................12 M3 Analyse the rationale for the project methodologies, tools and leadership within the PLC for the given project..............................................................................................................14 TASK 4..........................................................................................................................................14 P4. Review and critique the effectiveness of the PLC in application to the chosen project using appropriate theories, concepts and models.................................................................14 M4. analyse appropriate theories, concepts and models in PLC.........................................15 CONCLUSION..............................................................................................................................16 References.....................................................................................................................................17
Introduction Operational management is the practice that performed by the companies in order to manage their operational working to create high efficiency functions. It plays a major role in planning, organising and execution of their operational activity of company in effective manner. Through effective implementation of such management in operations companies tries to balance their cost in order to encourage their profit maximization. In relation to this operational working of Sainsubury's which is an retail supermarket giant in UK is being taken into consideration. Sainsbury's is one of the largest retail chain in UK. It stores established in various location in United kingdom with diverse number of customer base(Mou, Robb and DeHoratius, 2018). The mentioned company deals in large variety of grocery and consumer products that shows their diversity in operations. In this given report the evaluation of respective company operational management will be reviewed as well as relation with methodology and principle will be reviewed in the report. Further, a plan will be developed in order to review the company operations as well as their effectiveness will also discussed. Further, some supportive document will be provided according to the completion of company project as well as their rationale regard to the company functions will also analyse. At last the efficiency of such project will be deployed with the support of related theories in relation the project size Main Body TASK 1 P1.Reviewandcritiqueoftheimplementationofoperationsmanagementprinciplesin Sainsbury's Plc The operation management is production managementfunction which helps generating production of manufactured goods in efficient way by optimising the business process. The main objective of operation management is to gain profitability and total quality. It is about of managing every operations in effective manner which supports the company goals. This involves the activities of planning, organising and supervising process and proper employee placement which all results in product or services that meets customer needs. Sainsbury's is one of the largest supermarket chain in United Kingdom. It was founded in year 1869 by John James Sainsbury in London, United Kingdom. This supermarket chain operates with a market share of 16% in supermarket sector of industry. It operates with over
1400 outlets within domestic boundaries of United Kingdom. Sainsbury's is providing living to over 1,80,000 employees making up its workforce for carrying out operations and activities. The company is listed in London Stock Exchange and is a component of FTSE 100 index. Respective company is an parent organisation to various brands such as Argos, habitat, Tu, nectar, etc. Sainsbury's is aimed at providing best quality grocery and food products at reasonable and fair prices. Own brand food products and online shopping with delivery services results in being the reasonforsuccessfortherespectivecompany(Malyarandet.al.,2020).Majormarket competitors of the company are Asda, Tesco, Boots, Walmart, etc. operating in the supermarket sector. The company focuses on maintaining environmental sustainability using high-quality certified plastic for packaging of their food products. Sainsbury's is aimed at long run with appropriate consideration of being fair to suppliers as well as customers in carrying out their operations. Differentiation of Operations and Operations Management OperationsOperational Management The term operationsincludes all the activitiesandpracticesinvolvedin converting input into final product and providing it to customers. Operationsmanagementismeantby managing the process of operations for bettermentandprovidingadditional valuetothefunctioningofthe company. Production / manufacturing and sales activitiesismajorlyincludedinthe process of operations. Operationalmanagementincludes designingtasks,managinginputs, maintaining quality in final output, etc. as major elements. Thisprocessprovidesvaluetothe company by regulating production and delivering final products to markets for salestocustomers(Hongandet.al, 2021). Thismanagementpracticeprovides additionalvaluebyenhancingthis process for increasing efficiency and completion of task on time. Decision-making in operation process isderivedwithconsiderationsof Decision-makinginOperational managementisderivedwith
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increasing output and sales.considerations of enhancing quality in thewholeprocessforattaining additional values and increasing sales. Principles of Operations management in Sainsbury's Reality:This principle of operation management determines that management of a company must consider and focus on the real and actual problem rather than considering a smaller part of that problem. It suggests that operations management must be applied in an organisation for improving productivity and efficiency of company's operations for conquering over the real and actual problem(Barnes, 2018). Organisation:This principles of operations management determines interconnectedness of all elements of an organisation with production process or operations. Operations management must be applied in an organisation for maintaining consistency in efficient management practices for increasing productivity and coordination. Change:Efficient and effective operations management facilitates adaptation of change in an organisation's operations for increasing effectiveness and efficiency. It suggests that organisations must apply operations management for adapting various changes in the dynamic market environment for betterment of operations. Quality control-In the workplace the manufacturing operation is required to have quality control. Without this the quality of product or service can note be guaranteed as customer wants to buy quality products that helps in increase of sales and business profitability. The total quality management is a holistic process which involves sever4al areas of procurement, logistics, material management, warehousing etc. Consumer collaboration- In operations management this is an effective principle which is practice of listening to customers and acting on their input. In context to Sainsbury the managers are required to have proper understanding of customer in depth by collecting insights from them in order to improve the produ8ct or services as there is change in customer needs and preferences. Implementation of Operations Management in Sainsbury's SupportingCompany'sstrategies:Importanceofoperationsliesinfacilitating company's core strategies in operating business activities and operations. For instance, providingqualityfoodatreasonablepriceisconsideredasprimarystrategyof
Sainsbury's. Implementation of efficient operations management will allow company in reducing cost of production and providing quality products at fair and reasonable prices. Therefore,itincreaseseffectivenessandefficiencyincarryingoutoperationsof Sainsbury's(Choi, Wallace and Wang , 2018). Product Positioning:Another major aspect of applying operations management in Sainsbury's is to develop products that stand out in the market with superior quality at reasonable price. It ensures operations with green process which provides additional value to company as well as environment. This aspect includes improvisation in product detailing, pricing, appearance, quality, etc. for enhancing product's quality to differentiate from other competitor's products. Product Differentiation:Sainsbury's offers huge amount of consumer products for various segments of people in society. This initiative allows serving people from all the segmentsandachievecustomersatisfaction.Efficientoperationsmanagementwill facilitate product differentiation in Sainsbury's for serving different segments of society. Various approaches to operations management Different approaches of operations management used by Sainsbury's are as follows: Six Sigma:It is one of the approaches of operations management which is comprised designing, measuring, analysis, improvement and controlling regulation of existing operations of company. This approach to operations management results in improvement of overall brand image in the market with enhancing the quality of products and operations. Six Sigma approach facilitatesadaptation of appropriatechanges with eliminating errors and deviations(Hansen, Mowen and Heitger, 2021).This is a management methodology which helps the business in improving its current processes, products and service by finding and eliminating defects. Lean Production:This approach of operations management is mainly determined at eliminating waste in operations. For instance, waste is meant by leftover components which does not provide any value to customers as well as company. Lean production facilitates in proper utilisation of resources incurred in company's operations.This is based on the ideology of maximising the productivity by minimising the waste from process of manufacturingwaste does not produce value for customer. This benefits in reducing lead times, operating costs and product quality is improved.
Theory of scientific management:This theory suggests that practical and scientific decision-making must be applied in analysis and calculations in operation process. Implementationofapplyingpracticalapproachtowardsoperationsmanagement increases overall productivity of company with reducing costs incurred and increasing output. FlexibilityinSpecialisation:Thistheoryofoperationsmanagementpromotes specialisation of skilled workforce into various fields and departments(Harris and et.al., 2021). Moreover, the dynamic changing environment requires multi-specialist workforce to be engaged with multi-functional machinery and equipments. Implementation of flexible specialisation results in increasing overall productivity in carrying out business operations. M1. Review and critique the implementation of operations management in relation to Six Sigma methodology and Lean principles Six Sigma Methodology Six Sigma Methodology is aimed at enhancing quality and productivity of operations managementactivitiesbyeliminationoferrorsanddefectsthatcompanyfacedintheir operational activity. The mentioned methodology ensures in order to create effective operational practices in company through which they eliminate the negative aspects for smooth functioning of operations. Eliminating errors and defects:Six Sigma Methodology is aimed at eliminating errors and deviations faced by operations in a company. This methodology supports operations management by facilitating smooth flow of functioning of the company for better output and results. Reducing Cost:Reduction in cost facilitates company in providing quality products at reasonable pricesto customers as company incurs low cost in production phase. For instance, low production cost provides more profitability to the company and provides a good margin of profit in sales price. Saves Time:Another aim of this methodology is to reduce time incurred in operations process for increasing effectiveness and efficiency. When the operations would be carried out in lesser time, it allow a opportunity to produce more output in order to increase sales in the particular duration of time(De Bruijn and Ten Heuvelhof, 2018).
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Lean Principles There are various lean principles facilitating operations management which are as follows: Defining Value:This lean principle is about defining customer value. Customer value is meant by how much a customer is willing to pay for a company's products or services.It is created by the manufacture and service provider who leeks for eliminating waste and costs so as to meet optimal price for customers and profit maximising. Value stream:This principle involves identification and mapping of customer's value for using it as a reference point. Furthermore, it considers identification of all the required activities which at the end contributes in these values.This principles involves of evaluating materials and other resources which needed in producing product or service in the aim of identifying waste & improvements. This covers the entire life cycle of product from raw material to disposal. Creating Flow:This principle involves maintaining flow of activities after eliminating unwanted wastes from operations. It ensures creation of values from the remaining activities and operations. Establishing pull system-This system work by commencing when there is demand. It is opposite to push system as it determines the inventories in advance with production in order to meet sales or production. In the pull system there is involvement of teams to move on to new tasks as previous steps are already completed and allows team to adapt challenges which arise on knowledge that preceding work is still applicable to deliver product or service. TASK 2 P2. Prepare a continuous improvement plan based on the review and critique of operations management principles within an organizational context. Continuous improvements is meant by consistency in initiating efforts for improvement in entire operations process carried out in the organisation. These improvements includes quality of products and services, incremental improvements, efficiency and overall productivity, etc. Every company and organisation has a huge requirement of continuous improvements for survival and growth in Long run. Furthermore, it results in enhancing company's brand image in
society as well as marketplace. Implementation of continuous improvements is comprised of various steps which are as follows: Plan:This step of continuous improvements process includes identification of area of improvementanddevelopingstrategicplanningforimplementation.Identification involves each aspect and element affecting company's operations in negative as well as positive manner. Strategic planning for improvements is considered in the situation of identification of negative aspects and implementing the plan for eliminating this negative impact. On the other hand, positive aspects are considered for initiating additional efforts towards it for enhancing productivity(Keeling, 2018). Do:This step involves a trial of the strategic plan in the form of implementation on a small scale for prior experience of future changes. It involves consideration of a small unit from entire business and carrying out the strategic plan in that business unit for implementing changes for improvement. Therefore, it allows company's operations not being entirely disturbed due to implementation of changes. Check:Inthisstepanalysisofimplementedtrialonsmallscaleistakeninto consideration. It uses the data for analysing the results of the change and comparing it with the planned results. This step of continuous improvement allows understanding of impact of these changes on operations of the company. Act:This step of continuous improvement defines the status of trial for implementation of planned strategies whether it is successful or not. Furthermore, if the status results successful then these strategic changes are implied on entire large scale operations of the company. On the other hand, if these changes shows ant deviations or errors then it is again considered for planning process. Improvement plan ImprovementExpected OutcomeCurrent performance Level Improvement in Strategies Effective After sales customer service Sainsbury'sprovides groceriesandquality foodproductsto customersfor consumption. Althoughitprovides customerhelplinefor customerswho purchasedSainsbury's products. For instance, Management representativesofthe company should focus moreuponaftersales customerservicefor
Sometimesdueto defectivepieceof productorinefficient product,customers requireaftersales services which includes return/exchangeof products,helpline, complaint services, and manyothercontexts. Providingaftersales services to customers is expectedas improvementin company's operations. helplineserviceand customersupportof companyisnot effectiveenoughand resultinginbeinga negativebarrierfor company'soperations (Le and et.al., 2019). retainingexisting customer base. QualityThough, the company is providingquality products and services at decent price range but stillitlackssuperior quality in its products andservices. Enhancementand improvement in quality ofproductsand servicesshouldbe regulatedwith consistencyfor increasing efficiency in overalloperations management.Initiating Sainsbury'sisserving qualityproductsto customers but still lacks inprovidingeven higherqualityof productsandservices intoconsumer marketplace. Implementationof various strategies and activitiesinto functioningof companytoenhance efficiency and quality ofcompany's operations as well as final products.
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additionalefforts towardsbettermentof qualityprovidedisa scopeofimprovement for company. Global PresenceGlobalpresenceof company'soutletsand reachofcustomersis goodscopeof improvement especially for Sainsbury's. As the companyoperates withingeographical boundariesofUnited kingdom it has a major scope of expansion into global marketplace. Sainsbury's is operating withinUKeconomy which is being barrier infurthergrowthand developmentofthe company'sexpansion worldwide. Gradualapproach towardsexpansion with few initial outlets worldwideandthen considering establishment of more numberofoutlets servingitsproducts and services. Continuous improvement suggests development of various strategies for enhancing operations management of company. It recommends efficient use of appropriate technology as it increases productivity in company's operations. Stepping into the global market will be an immense opportunity for improvement with high profile brand image and quality products served by Sainsbury's. M2 Analyse the effectiveness of a continuous improvement plan Continuous improvement plan results in improving overall productivity of company's operations. For instance, management representatives of the company need to adapt practical approachforimprovingqualityofproductsandoperations.Thisprocessalsoprovides opportunity in expansion of company's outlet units for further growth. Effective after sales facilitates in eliminating issues faced by customers in consumption of products offered by the company(Pekkanen and et.al., 2020). Moreover, these issues will be considered in further operations to prevent from future occurrence of these issues/deviations faced by customers. It
also allows company to consider customer preference into operations for developing products and services for target customer base. Continuous improvement process results in satisfaction of customers with providing products of their preference with high-quality. This process is aimed at initiating efforts towards perfection in company's operations. TASK 3 P3ApplyeachstageofthePLCtoagivenproject,producingnecessarysupporting documentation for completing the project. According to the case study the mentioned company facing the issue in regard to their factory workers behavior. Due to lack of on site catering the workers of mentioned company leave the premises that arises the issue of congestion in the local area as well as due to low grade street food the workers faced the issue regard to their health which increase the absenteeism in company working. Hence, by creating the effective project management life cycle at workplace the mentioned company want to overcome with such issues(Russell and et.al., 2020). Therefore trough the implementation of such project management process at workplace premises the mentioned company can gain the high efficiency of result. The mentioned project life cycle includes several stages in regard to solve the issue; Development:This is the foremost and primary stage in product life cycle. This stage involves development of desired product of the company for introducing into the marketplace. It includes raising funds through investors, developing prototypes, testing product's effectiveness, strategies for launch of product, etc. Success or failure of a new product is majorly depended on its development stage.In context toSainsbury's, here management need to utilise high quality raw materials in their product for developing the prototype. With help of this prototype organization easily understand that the particular product is valuable or not in market. With help of prototype organization also understand which type of customers are important for enhancing the profit margin of company at maximum level. After evaluating the prototype effectively organization is able to launch their product finally according to the needs and desires of customers. Introduction:This step of product Life cycle considers launching of product into the market. Marketing management initiates promotional and advertising practices in this stage for increasing sales of newly launched product. In this stage, sales for the product
are quite low as this is the initial stage of product life cycle. Efficiency is majorly required in this stage of Product Life Cycle as it involves initial image of product into the market.In context toSainsbury's, management must introduce their product in market with new features and specifications effectively. Due to highlighting the features of the product customers are easily attracted in large number. It leads to sustain the sale and popularity of their product in market and in customer's minds for long time. In initial stage effective and attractive launch is highly essential for displaying the uniqueness and value in market at high rate. Growth:Growth stage is considered in the duration of increasing sales of the products in the market. This stage involves expansion of sales of products and rising competition of similar products or alternatives.In this stage the overall productivity and performance of organization are highly increased with help of diversifying their product at wide range. Due to diversifying and adding features in their product effectively the desires and wants of the users are highly increased for buying the particular product. Due to increasing the sale of goods firm easily expanded their services and business activities in various location within low time. With help of expanding their activities convenience are highly increased for customers to buy their product within low time (Anh and Quyen, 2020). Maturity:This stage of product Life Cycle begins after the period of rapid growth of the products in the market. Companies considers reduction in prices for maintaining sales of products. It involves various considerations for maintaining sales of products such as differentiation, cost reduction, marketing campaigns, etc. In this stage cost of production decreases while sales of products keeps on rising gradually.In context toSainsbury's management must use various types of marketing strategies such as fixing competitive price, online advertising and others. Due to the effective use of these type of strategy organization easily gained competitive advantage and popularity in market regarding their services and product at maximum level within low time. In this way the awareness of company products are easily sustained in customer mind for long time. Saturation:This stage of product life cycle is when the company's product is neither in profit nor in sales. It involves highest competition into the market for similar products or alternatives available in the marketplace. Management representatives of the company attempts for implementation of all aspects that could prevent product from getting into
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the decline stage.In the context ofSainsbury's here management need to produce more than one product in the form of alternatives. Because due keeping backup or alternative chances are highly decreased for losing their goodwill and financial status in market. Due to keeping alternatives organization easily sustained positive relation with all customer segments for long time. Positive relationship are highly essential for identifying the real needs and desires of customers quickly. Decline:This is the last stage of Product Life Cycle which involves decrease in product's sales in the marketplace. This stage occurs after company attains its saturation point and incurring loss with sale of each unit to the customers.In context toSainsbury's, here management needs to use various types of techniques for sustaining the popularity of the product at particular point for long time. Due to keeping popularity of product at particular point the financial loss of company are easily decreased effectively for long time. M3 Analyse the rationale for the project methodologies, tools and leadership within the PLC for the given project. It could be analysed that various tools and methodologies can be used and implied in carrying out a Project life cycle in completion of a project. Implementation of critical path method which will facilitate in representation of activities to be carried out on design chart for timely completion of task on time. These methodologies and tools will promote future expansion of the company if considered. The company could also consider the use of Agile method which involves software that supports completion of project in the specific duration of time. It also involves various aspects that impact on company's operations to eliminate occurrence of errors or deviations for achieving desired objectives. Furthermore, tools such as Gantt chart could be used which involves specific time frame for every activity and results in efficient completion of task/project.
TASK 4 P4. Review and critique the effectiveness of the PLC in application to the chosen project using appropriate theories, concepts and models ProjectLifeCyclecouldbeusefulincompletionofaprojectandfacilitatesin accomplishment of specific goals and objectives in a given time. It has been experienced and observed that organisations may face various issues and errors in the execution of a strategic plan such as organising of resources, raising funds, adaptation of dynamic market changes, etc. On the other hand, Project Life Cycle could also result in creating appropriate and suitable condition of management representatives as objectives could be accomplished within given period of time. Project Life Cycle will facilitate in further expansion of business units worldwide with establishment of new outlets(Shuanglong and et.al., 2018). Expansion of companies business units facilitated by efficient PLC will increase overall brand image and entire sales of company's products and services. This process allows smooth adaptation of changes into the functioning of company's operations. Customer preferences are considered for developing desired product for fulfilment of consumer demands. This also provide advantage to management making changes in technological aspects for serving quality in products offered into the market. Methodologies such as WBS, PLC, and Gantt chart which could provide several benefits in acquiring a strong market position among competitors in the market. It includes segmentation of work assigned and allocating it particularly to individuals for better understanding and implementation. All these efforts and initiatives will promote company's operations in order to achieve its desired targets. Therefore, resulting in escalating company's operations towards growth and expansion of business. M4. analyse appropriate theories, concepts and models in PLC Work breakdown structure and Gantt chart can be taken into consideration as major theories to be implied by management representatives to achieve targets successfully. These theories differs in case of small as well as large scale projects(KeuperSchomann and Grimm, 2018). In small scale projects activities will also be regulated on small scale whereas activities are regulated on large scales in large scale projects.
CONCLUSION From the above assessment it could be concluded that operations management plays an important role in every business company or organisation. Efficient operations management will result in improving quality of products and services offered by company in the marketplace. The assessment is provided with a improvementplan for betterunderstanding of Continuous improvement process in an organisation's operations. Break down structure is considered for developing a plan in the Project Life Cycle process. Furthermore, various stages of PLC is provided for better understanding of this process.
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