This document provides a review and critique of the implementation of operations management principles, focusing on lean principles and continuous improvement. It also discusses the application of product life cycle in a case study. Suitable for students studying operation management or related courses.
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Review and Critics of operation Management
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY..................................................................................................................................1 PART 1...........................................................................................................................................1 Background of company............................................................................................................1 Operation vs Operations management........................................................................................1 Conduct a review and critique of the implementation of operations management principles...2 Analyse the extent to which the operations management...........................................................4 Continuous improvement as a philosophy and the Lean principles............................................4 Continuous improvement plan based on your review and critique of operations management.5 Recommendation........................................................................................................................5 PART 2...........................................................................................................................................6 Applying product life cycle........................................................................................................6 References......................................................................................................................................11
INTRODUCTION Operational Management is the establishment of business pattern to create the broad level of skilfulness achievable within an structure. It is basically convert labour and material into good and services. As it helps to maximise the profitability in the enterprise. In part one the chosen firm is Tesco as it is the British multinational groceries and general merchandise retailer. As it was founded by Jack Cohen in 1919. this report will cover the explanation of operation and operational management and also review and critique of the implementation of operational management. It will also describe various philosophy. Further in part two the chosencompany Sunshine drinks. In this it will discuss the Product Development life cycle and it will discuss the different type of cost saving techniques and various ways to ensure quality , scope and model and procedures. MAIN BODY PART 1 Background of company Tesco is the one of the leading company as it offer many peroduct6s and services to the customers. As it is multinational groceries and general merchandise retailer. It was founded by Jack Cohen in 1919. it is the third largest retailer in the world measured by the gross revenue. Tesco has loyal base customers and employees as it has 460000 employees who work for Tesco in order to achieve the goals and objective of the company. Tesco believe in high quality as it sell high quality products in low and affordable prices which help the organisation in increasing the sale and profitability (Kato, NEC Corp, 2016). Operation vs Operations management Operation is basically it is the process of managing the internal working of the business in order to run the enterprise in effective manner. It is very important to improve the operation of the business as it helps to increase the productivity of the concern. Operation also mean to think in the strategic way about the system and process. Operation is the wide process as it include various steps from making the products or providing the services. On the other hand operational management id the administration of the business practices in which it helps to create the highest level of effectiveness in the business in order to achieve the goals and objective of the company 1
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in easy manner (Yamashita and Kimura, Isuzu Motors Ltd, 2019). It helps the enterprise to run in the right direction. As it taken up with mortal the raw material and labour into effective goods and services as effectively as possible. It helps to maximise the profitability and also increases the productivity in the business. It also describe as the are of manager which focus in designing and controlling the production process or as to carry the process in the effective and smother way (Bott and Luna, Seven Networks Inc, 2017). Hence both operation and operational management are two different concept used in the business enterprise (Johnstone, 2016). Conduct a review and critique of the implementation of operations management principles There are many two type of they that are use in the business concern such as Agile manufacturing and the other one of Lean production which are discuss below - Agile Manufacturing – it is the statement applied to an structure that has created procedure implement and grooming to alter it to report rapidly to client needs and market changes while still reimbursement and superior. As it is newest strategy use by the business as it is used by the small lot of manufacturing. In this customer exactly getting the same thing the way they want. As every goods and services are customer in any ways. It helps to increase the sale of the business. As customers are demanding more and more of their supplier and the competition. By the help of agile manufacturing it helps to outperform and outsell their competition. By using agile manufacturing it will help Tesco to increase its sales , profitability and productivity. And also it will help to satisfy the customer to a large extent (Park, Kim, and Lee, 2018). Advantages– as it is the newest strategy which comes with many advantages such as - Customer focus product design – the first and foremost advantage is that it always focus to satisfy the customer and design the products in order to satisfy the customers.Agile manufacturing help to build strong and best customer base product and also keep up with a varying demand. As it help to attract many customers as by fulfilling their demand (Webb, 2017.). Cooperation within supply chain – it helps to ensure production to reach full latent as by conformity flow of content throughout the entire supply chain. This can be done by sharing the customer information with various outside areas of the supply chain such as suppliers. This will help to make the supply chain to work in order to fulfilling the demand of thesupply chain (White, 2016). 2
Connected with IT – The third advantage is that it connected with IT . As by utilization of an integrated system , the system is able to stay efficient and work in effective and on time. This required accurate data and information which help the business to take quick decision and helps to increase productivity (Vuchic, 2017). Disadvantages- Limited resource Planning – the first disadvantage of this theory is limited resources asv in this approaches there are unclear of the end results of their production. This makes the face to face many challenges and problems as it may include cost , time ajnd various other factor related to production process (Johnstone, 2016). Measuring Difficulties – this approach is very challenging approach as just because of lack of proper planning as it sometime become nearly impossible to track overall production progress (Shiffman, Engfer and Paty, eResearch Tech Inc, 2018.). Lean production– The second approach which is help to focus on cutting out the waste and also help to ensure the quality of the product. This approach helps Tesco to a large extent. As this approach can be applied to all the aspect of the business enterprise. As it help to make the company to work in effective and efficient way. This approach is set to cut the cost and minimise activitiesthatdonotaddvaluetotheproductionprocess(Ivanov,Tsipoulanidisand Schönberger, 2017). Advantages- Minimise wastage - The biggest advantage is that it maximise the wastage in the business which help Tesco to work in the efficient and effective way. As by minimising the wastage it will help to increase the productivity of the company. Enhanced Customer Relationships – As by this approach it will help to focus on the need of all customers and by satisfying them it will help to build the relationship with the customers. Disadvantage- Equipment Failure – Equipment and labourcan lead to major inconsistencies within lean and can make the entire operation fall behind. Delivery Inconsistencies – this hinders the process of customer relationships and also It make the delivery process ineffective. 3
Analyse the extent to which the operations management Lean management help the Tesco to a large extent. As it will help to increase the effectiveness and efficiency of the company . As by applying this approach it will help Tesco to minimise thewastage and cut the resources which does not add value to the organisation. Its basic motive is to increase the production by reducing the waste of the company and minimised the cost so to increase productivity. As this method of manufacturing is able to efficiently optimize production with the help of waste maximization and cost reduction technique. By implementing this manufacturing approach it will help Tesco in enhancing customer relationship as it help the Tesco to focus on the needs and wants of the customers it will help to gain the loyalty of the customers and helps to build the strong relationship with them. Ans also by minimising waste and cost reduction technique the company gain the competitive advantages. The second method is Agile management as by implementing this method Tescowill gain the loyal customers based as it will focus to satisfy the customer and design the product according to the need and wants of the customers. And this approach helps to share customer information with the supply department that will help Tesco to a large extent. And also Tesco will be connected with the IT department as in this to work in the effective and timely manner. Continuous improvement as a philosophy and the Lean principles. Continuous Improvement– it is basically a continuous process as it is an ongoing efforts to improve the products , services or processes. As it will help Tesco to improve itself by continues basis. As it is the method for identifying all the opportunities for streamlining work and reducing waste. It help to give the company continuous improvement and effective result as by this the effectiveness of the business increases. As it will help Tesco in reducing the cost as it reduces the cost helps to work in cost effective manner. As it help Tesco by saving time and money and help to run in the effective manner. As continuous improvement model is based on four step quality assurance methods as it include Plan as in this Tesco identify all the opportunity and plan in the systematic manner in order to achieve that opportunity. The second step is Do in this Tesco will implement this change in the small scale basis as it is trail for the change. The third step is Check in this Tesco uses data to analyse the results of the change and also to determine the differences. And at last step is Actin this Tesco will change itself successfully and then it will implement this change on the wide scale (Higuchi, NEC Corp, 2016). 4
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Lean Principles –The basic idea about the Lean manufacturing is to maximizing customer value while minimizing the waste as it focus to minimise the wastage of the business and cut the resources which no longer add to the company. As it simply create more value for the customers with fewer resources. There basically four principle which help the company to a large extent - Identify value - In this it is very important to constantly review the products and services so to have a effective results (Flake, Western Digital Technologies Inc, 2017) Value stream – once the value has been determined then the next step is value stream. As it help to identify all the actions that take a product and services through any process. Flow – this is the third step as after the waste has been removed from the value stream as in this step the it ensure that the product an services will flow in the smooth manner. Perfection – in this every employees is making the efforts to minimising the efforts as in order to help the Tesco to work in the effective manner. Continuous improvement plan based on your review and critique of operations management Kaizen – as this is the most popular approach which help the business to a large extent. In this it help to improve the company on the continuous basis. And also help to maximise the efficiency of the company. In this approach it will help Tesco to launch the product in the easy manner. As by fulfilling the proper steps it will help to achieve the goal of the company. Tesco will apply PDCA plan that is plan, check, do and Act. On the basis of this continuous improvement cycle focus is placed on identify problems or opportunities present for improvement. Referring the same, management team of an organization make focus on developing competent plan for improvement. As per the strategic framework business unit implements strategies and review the same. As, by reviewing such aspects firm can assess whether further actions need to be taken for improvement purpose or not. Plan – in this Tesco will identify the plan as its plan is to launch the new product. Do - as it will launch at the small scale basis. Check – then it will check the result weather the result is positive and negative. Act – and in this step Tesco will implement the product on the large scale basis as in order to increase the profitability of the products. Company can ensure continuous improvement by undertaking following actions: 5
Tesco needs to make focus on conducting training & development session for personnel. This in turn helps in delivering quality services to the customers. Along with this, in relation to introducing new product in the market Tesco should take reviews from the customers. This in turn helps in assessing loopholes and gives indication pertaining to taking strategic measures for improvement. Recommendation It has been recommend that the company should use the KPI that key performance indicator as it will help the company to analyse the performance of the company and work in the better manner. Also it will help to increase the efficiency of the company as if performance increase then it will directly affect the profitability of the company. It has also recommended that to use all the lean principle as to run the company in right direction. PART 2 Applying product life cycle Project initiation As these is the first step is project initiation as in these the project objective and the need is identified. As it also include the need to launch the product as Sunshine drink company launches its new drink that is energy drink made with the natural spring water. As the need to launch this product is to satisfy the need ans want of the customers and also by increasing the sale and profitability of the business. As it has wide range of drinks that has been serve by the Sunshine company as it help to expand its business. And also energy drinks are very popular among the customers so it will help the company to a large extent. Project Planning As after identifying the need and objective of the product the next step is project planning as it will include the five key stages of the product life cycle that is - Pre-launch – this is the first stage of the product life cycle as in this the product is still in this the product is still in development stage as sunshine drinks company is just planning to launch the new products. Introduction – the second stage is introduction stage as this is the introduction of the products where the initial sales are been made to innovators, consumers also enjoy the new products but there is insufficient development costs. 6
Growth – this is the third sales where there is sudden growth in the sales of the company and also the sunshine drink product that is energy drink become very popular as it attract many customers. As in this stage the profit are generate as it is just a beginning. Maturity – this is the longest stage where it generate majority of sales and sunshine drinks are now become very famous as it will run for the long term basis. Decline -this is the product decline stage in which there is a drop in the profit and sales of the company. As in the the product is no more profitable. For these it is important to communicate the plan in proper manner and also it is very important to make the effective communication plan as it is very important to communicate the plan in the systematic manner. And also it is very essential to assist the risk in effective manner as by this there are many risk that can be arises that is there can be financial risk as there at the time of launching the product there can be shortage of finance. And also it is very important to overcome this risk. And the second risk is shortage of human resource as there can be short fall of employees. 7 Illustration1: gantt chart
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Project execution Effectiveness of the PLC - As the product life cycle is very effective oneas it help to give the proper guideline of the product. As it is very effective as it help to set the objective of the company and give the proper direction to the company as by focusing on the product and services. As by initiating the project it will help to increase the productivity of the organisation. As product life cycle is very effective as it help to provide the complete structure and guidance 8 Illustration2: critical path Illustration3: WBS
as it will to give the guidance about the structure as it help to identify all the outcome of the company. As designing and implement the product life cycle help the company to focus on the result and help to increase the efficiency of the company. As product life cycle help to focus on the efforts by addressing all the questions and helps to create the effective product. As it helps to identify all the stages by which when the product will earn the maximum interest and profit so that it can apply various strategy to achieve more results. Also it provide various tools and technique from which one can achieve the profit. As it will give proper direction to the company . Project closure Cost saving techniques As there many techniques which are used to save the cost of the product as it help to run the company in the effective manner. And also help to work in the cost effective way. As it saves the cost by purchasing fewer parts in large volumes as for this it will help the company to work on the cost effective manner. And also it help to increase the production experiences as it ensures longer production runs , increase production experiences results more rapidly. Different technique used to ensure quality, scope and tenure As for the quality it is used different type of technique such as it helps to set the particular standards which help to work in more effective manner and also it helps decide which quality standards to focus on and third one is that it create operational process to deliver quality and at last it will review the result and at last feedback. It also ensure the different technique as it has created a wide scope in the organisation and it used different technique as it has set different tenure to complete the work on time. Different theories Large and small company – the theory which are used by large company is NPV that is new product develop as it is the process of bringing a new product to the market place. New product development is very effective as it used to transform the market opportunity into product availability. 9
Evaluate PLC Product life cycle is very effective as it help the organisation to a large extent as it increases the productivity of the organisation. And also helps to known the maximum profit margin and it has given the proper direction to the company. So overall it is good for the company (DiFazio and Chitrapu, InterDigital Patent Holdings Inc, 2016). Advantage of project life cycle are enumerated below: Assists in decision making Helps in making forecast about product’s performance pertaining to the near future Helps in gaining competitive advantage over rivals Disadvantages: PLC is too rigid due to the inclusion several strategic framework Low applicability in certain markets CONCLUSION The above report is based on operational management which help the business to work in the effecti9ve manner. As it create raw material and labour into goods and services. As operational management plays an important role in the organisation. As this report has cover the difference between operation and operational management. It will also cover the different operational management principle that is Agile management and lean production. As both help the company to a large extent. Further it has concluded different type of philosophies. It has also articulate in the second part as to launch the product life cycle as it has basically four stages that is project initiation , project planning , project execution and project closure. 10
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