Comprehensive Report: Operations and Project Management at ASDA

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This report provides a comprehensive analysis of operations and project management within the context of ASDA, a British supermarket retailer. It begins with an introduction to business operations and project management, highlighting their importance in driving production and profitability. The report then delves into ASDA's operations, evaluating key principles such as variance, change, organization, and fundamentals. It proposes a continuous improvement plan, incorporating lean principles to enhance cost management, quality, and delivery. The report further presents a business case for a fictional "Sunshine" company, analyzing project initiation, planning, execution, and closure, including work breakdown structures and leadership styles. The analysis covers critical aspects of the project life cycle, including objectives, strategies, and the importance of effective communication and quality management. The report concludes by summarizing the project's effectiveness and offering recommendations for future improvements.
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Operations & Project
Management
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Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
TASK 1............................................................................................................................................1
P1 Review and implementation of operations management principles......................................1
TASK 2............................................................................................................................................2
P2 Continuous improvement plan and lean principles................................................................2
PART 2............................................................................................................................................3
TASK 3............................................................................................................................................3
P3.................................................................................................................................................3
Project closer - ................................................................................................................................7
TASK 4............................................................................................................................................8
P4 PLC effectiveness..................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Business operation and project management is the planning and execution of operation in
manufacturing worlds. It involves demand forecasting, planning production, inventory control
supply chain collaboration and quality management which helps to run and grow a business. The
main purpose is to make effective planning and implement in order to increase production and
profitability (Turner, Kutsch and Leybourne, 2016). To understand about operation and project
management ASDA has been taken that is British super market retailer which was founded in
1949. It deals in different types of products such as grocery, food item, non food item etc. This
report discusses about operation management principles, continuous improvement plan, each
stage of PLC to given project, producing necessary supporting documentation and effectiveness
of PLC in application to chosen project.
PART 1
TASK 1
P1 Review and implementation of operations management principles
Company overview - ASDA is a British supermarket retailer headquarter in West
Yorkshire. It was established in 1949 when supermarket merged with Associated Dairies
company of Yorkshire. It provides different types of products and services such as grocery,
general merchandise and financial services in order to maintain productivity and profitability. It
has many competitors such as Tesco, Sainsburry and Morrison who deals in same products and
services. Therefore, continuous improvement of ASDA operation and project management given
a tough competition in retain market (Fleming and Koppelman, 2016).
Organisation focuses on operation and management for implementing business strategy
in to effective manner, so that goals can be achieved. It has various principles which can be
implement by ASDA to raise its operations and project management by supplying product and
services. The principles are defined as:
Variance - This states deviation that can be arise due to gap between actual performance
and budgeted performance. This principle is helpful to minimize this difference and expenses of
company. By adopting this principles ASDA can operate its business and also can reduce
deviation between standard and actual performance.
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Change - Changes are important for company by time to time that helps to increase
production and profitability with the help to increasing sales. It also helps to complete future
needs and wants by adopting changes. In context to ASDA, it make changes such as new theory
and model that helps in better management of supply and operate business in large area.
Moreover, it can increase delivery of services that helps to run a business successfully.
Organization - This means organization should manage its operation work in order to
gain profitability. ASDA is British supermarket that deals in retailing products, it manage its
operation by delivering products. It also manage logistics and supply chain by hiring heavy
vehicles and trucks for delivery of products. It may be difficult for organisation to manage all
operation activities at same time so it can minimize profit margin (Heldman, 2018).
Fundamentals - As per this principle it involves various rules and regulation which is
important for organisation to follow them in order to complete goals and objectives. Company
adopts green clauses for the purpose of promoting sustainable development as growth of
business organisation. In ASDA, manager follows different types of rules and regulation that
help to grow business and sustainable development.
TASK 2
P2 Continuous improvement plan and lean principles
Continuous improvement plan refers as a strategy which is prepared by organization to
bring some improvement in existing operations. This plan helps to improve the quality of
product and services and increase customer interest for the purpose of increasing production.
ASDA make continuous plan that help to enhance operations of business and produce a desirable
output in certain period of time. The main aim of continuous plan is to build some strategy and
make improvements in order to attract customers.
Lean principles - This is a methodology which is used to get maximum value to the
customers by minimizing and controlling over excessive expenses. It is based on define, value,
map, stream, create flow and establish pull that helps to maintain productivity and profitability.
This is helpful for ASDA to enhance overall productivity an profitability of firm (Kerzner,
2019).
Therefore, the continuous improvement plan for ASDA is designed as below:
BASIS CURRENT METHODOLOGIES PROPOSED
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METHODOLOGIES
Cost Management ASDA is focusing on variance that
helps to focus on operation instead
of expenses. For better production it
need to maintain expenses of
company by making planning.
The variance of industry between
actual and standard performance
can be reduced. Moreover,
company can low its cost manage
its operation and logistic works in
order to increase productivity.
Quality This principle is used to maintain
the quality of customer service and
increase the number of customer by
managing chain of output.
Company make sure that quality
of service is good and internal
operations of organization are
performing effectively for the
purpose of maintaining quality of
products and services.
Delivery This methodology is require change,
which helps to deliver products and
services effectively. ASDA uses this
methodology in order to deliver
products and enhance its operations
in stipulated time.
This means company enhance its
distribution channel rather than
delivering products. It is
important for retailer company to
enhance their distribution channel
so products can be reach to
customers.
From the above information it has been recommended that ASDA can increase its
production by making improvement plan. It can help ASDA organisation to adopt new
technology for gaining competitive advantages and better production. Along with this ASDA can
use Just in time method that helps to reduce the storage and wastage of cost for inventory of
company.
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PART 2
TASK 3
P3
Business case-
Basis Description
Requirement/ importance
Sunshine organization who is dealing in
manufacturing market and distribution channel
sales different flavor of drinks such as summer
fruit, winter fruit and tropical flavour for the
purpose of influencing people. Apart from this
company offered different drinks according to
season. These drinks are of good quality and
fresh fruit, serve to their customers. In sunshine
company, manager focuses that drinks should
have sugar content, healthy and preservative for
customers that attracts customers.
Target market: Sunshine company target middle and youth class of
people who are local resident of United
Kingdom. It targets those people who are health
and taste conscious and interested to take
organic food.
Analysis of cost benefits
Particulars Situation 1 Situation 2
Costs 100000 120
000
Benefit 0 200
00
(BEP
point)
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Project initiation -
The first phases of project life cycle is used to define objectives, chances and requirement
that is important for project. Herein, sunshine company check feasibility of whole project and its
value will drive to the customers. This process involves decision making procedure where
internal staff suggest idea to solve problem in order to meet with objectives and requirement of
business (Pheng and Meng, 2018).
Objectives of Sunshine
ï‚· Main objective of Sunshine is to capture market share of company at least 10% so
customer uses this product and increase promotion by word of mouth (Slack and
Brandon-Jones, 2018).
ï‚· Additionally, the goal or aim of this entity is to raise customer base continuously.
Company cannot force customer to buy this product. It can only suggest to switch
product and taste it.
Strategy –
ï‚· The strategy of Sunshine is to make planning for development of products by providing
top quality of drinks. To use marketing planning for increasing the customers such
advertisement and social media. This will adopt market penetration pricing strategy.
ï‚· Hence, in such step project manager of Sunshine company will pass the report to higher
authority for getting approval. If any error is arises then it rectify the omission of project.
Project planning:
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ï‚· This stage is required to make detail planning for development of new and innovative
product. it involves the role of senior authority and project manager get more details
about project and implement it within organization. Here are different factors that are
associated with implementation of project is required funds for implement it. Therefore,
manager of sunshine make a budget accordingly. The project planning for Sunshine are
given as:
ï‚· Cost - It is required 80000 GPB to run this project as it need to adopt new technology
which is necessary for organization in order to increase productivity and profitability.
ï‚· Communication - For maintaining better communication manager of Sunshine will use
face to face communication that will help to understand the problem and get solution of
problem in order to launch this product. In this communication method employees are
free to share their suggestion and to implement them if is right (Verzuh, 2015).
ï‚· Quality - To maintain the quality of new product it will be check by quality manager
who gives rating for their project by check quality of product.
ï‚· Scope - The scope of this project is it will establish a new market and employees under
this project are most suitable and feasible who focuses on quality and achieve sustainable
development.
Hence, at this phases Sunshine can use lean principle that will help to control production
as well as wastage. By adopting this principle organization can focus on towards objectives and
maintain profitability of company. The main target of company also can be achieved with the
help of this principle. Along with this Sunshine can adopt democratic leadership style instead of
autocratic leadership style in which it share all information with employees and make correct
business decision with the permission of all. This help to make feel good employees and they
work more effectively for the purpose of launching new innovation and completing goals. By
adopting this manager of Sunshine allocate roles and responsibilities among staff and make
efforts to complete targets (Simpson and et. al., 2015).
Work break structure –
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Project Execution:
In this phase the project planning is converted in to reality with the help of plan execution.
The work is performed task on the basis of allotted task in which employer as well as employees
know they work and perform it effectively for the purpose of achieving goals. The manager of
chosen entity make efforts to enhance the knowledge of available staff and provide them training
that help to reduce the chances of reduction (Nicholas and Steyn, 2017). It can be understand
through an example like company can use Zoho project that is helpful to give guidance to
company regarding execution and suggest what need to do in future in order to complete goals.
Hence, organization uses democratic leadership style that help to encourage employees for
checking completing project effectively and influence behavior of staff. And with the help of
qualify management Sunshine manage the quality of products which is required for all customer
and provide healthy products that helps to achieve goals in stipulated time (Thaler and Levin-
Keitel, 2016).
Project closer -
In this stage the overall performance of company as well as employees is analysed that
helps to know about how it is working for completing project. The communication is conducted
between staff and management that helps to share information and get ideas to complete
innovation. In context to Sunshine company this phases helps to determine whether task is
complete successfully or not. Moreover it consider budget that states how project can be covered
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under a decided budget. If there is any variance arises then it can be identified and modify the
strategy as per requirement. By doing such Sunshine can make future planning and complete
targets with the help of standard budget (Heldman, 2018).
TASK 4
P4 PLC effectiveness
It is important for manger of Sunshine to make proper planning and implement PLC by
providing guidance and performing project activities in effective manner. Thus Water fall model
is used by company to define effectiveness of PLC. It's description is as follows:
ï‚· Requirement - In this step Sunshine's manager should analyze the requirement of
resources like human resources, financial resources that project related to activities that
can be perform in effective manner. For providing key deliverable products company
adopts six sigma approach that helps to reduce waste and errors in order to achieve
maximum efficiency in productivity. This approach is used to enhance quality of
products (Taillandier and Breysse, 2016).
 Design – The particular phases is associated with the development and attractive design
of products that influence customers. It also helps to complete overall project within
organization. This is concerned with planning strategy of PLC where entity uses lean
manufacturing. Organization adopts democratic leadership style that help to increase the
participation of employees towards growth and sustainable development of business
entity.
ï‚· Development - In this phases execution and development of whole project are needed to
have in effective manner. Sunshine company has adopted Total quality management
approach during execution process that help in development of products as well as
project. This approach also focuses and make sure that customers are getting good quality
of products and also getting satisfaction while using new product. As enterprise has
adopted democratic leadership style in which manager transform ideas and get suggestion
to employees that helps to contribute towards firm's objectives and success in their work.
Another side, Sunshine can adopt Just in time inventory tool for the purpose of of
minimizing inventory management or storage cost within organization. And it provides
cost effective and better quality of products to their customers (Kundu and et. al., 2015).
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ï‚· Testing and maintenance - In this phases Sunshine company analysis the effectiveness of
plan and focus on testing and maintenance of overall business's projects. Thus for all
scenario Sunshine uses strategic leadership that helps to make more profits in an
organization. This is most effective method which is used by Sunshine's manager to deal
with situation accurately (Dao, Nguyen and Han, 2017).
Therefore, here are different tools that is used by company to enhance its performance
and development of project. Serum methodology that is a simple technique and part of agile
development can be used by Sunshine to maintain success project. It is mainly used by company
for the purpose of self management of team that requires low interference and supervision of
leader of selected company. Thus, organization implement such methodology that helps in
proper project management by increasing productivity (Navimipour and Charband, 2016).
Different uses of methodology for large and small scale project
Methodology Small scale large scale
Six sigma - In small scale case project
Sunshine company has
adopted labelling that helps to
reduce cost of repetition work
within organization. In
selected company managers
classify the work among their
staff accordingly
specialization that helps to
work effectively without any
errors and complete project in
stipulated time period (Falkner
and Hiebl, 2015).
Large project also adopts six
sigma method in order to to
manage project wisely and
increase their production and
profits. by providing customer
satisfaction. Moreover this
method helps to reduce the
waste of material and increase
proficiency of projects
(Xiaohui and et. al., 2015).
Lean principle - In context of small projects
like packaging organization
focuses on unnecessary cost
and make efforts to avoid
them in appropriate manner.
On the other side, large size of
business are require huge
operation as well as
managerial activity that helps
in development of new
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The main objective of
organization is to use this
method and reduce the
unnecessary cost which arises
within entity while working on
particular projects (Jharko and
Sakrutina, 2016).
product with the help of
proper planning. In Sunshine
company manager make
effective business decision
with the help of budget that
helps to complete project
accordingly. Moreover, it
helps to get competitive and
sustainable advantage of
company (Mills and
Razmdoost, 2016).
CONCLUSION
From the above report it can be concluded that operation and project management is
important for company as it helps to maintain the productivity as well as profitability of
organization by making many efforts. It is mainly emphasis on production process such as to
convert the raw material in to finished good for the purpose of launching new product and
services. Therefore, organisation need to adopt some methodology like lean manufacturing and
six sigma in order to reduce waste and increase productivity. The continuous development plan
helps organisation to identify errors and suggest step to make improvements in existing plan that
helps to work effectively and achieve goals. Moreover, project management helps to initiate
development of new product by evaluation and reviewing projects and make efforts to complete
it within given time period. Further, organisation uses waterfall model and comparison of
different method like six sigma and lean principle to evaluate the product life cycle for the
purpose of development of project and continuous sustainable advantage of project.
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REFERENCES
Books and Journals
Turner, N., Kutsch, E. and Leybourne, S. A., 2016. Rethinking project reliability using the
ambidexterity and mindfulness perspectives. International Journal of Managing
Projects in Business. 9(4). pp.845-864.
Fleming, Q. W. and Koppelman, J. M., 2016, December. Earned value project management.
Project Management Institute.
Heldman, K., 2018. PMP: project management professional exam study guide. John Wiley &
Sons.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. Wiley.
Pheng, L. S. and Meng, C. Y., 2018. Managing productivity in construction: JIT operations and
measurements. Routledge.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.
Simpson and et. al., 2015. Professional, research, and publishing trends in operations and supply
chain management. Journal of Supply Chain Management.51(3). pp.87-100.
Nicholas, J. M. and Steyn, H., 2017. Project management for engineering, business and
technology. Routledge.
Thaler, T. and Levin-Keitel, M., 2016. Multi-level stakeholder engagement in flood risk
management—A question of roles and power: Lessons from England. Environmental
science & policy. 55. pp.292-301.
Heldman, K., 2018. PMP: project management professional exam study guide. John Wiley &
Sons.
Taillandier, F. and Breysse, D., 2016. Decision aiding for lower soil risk in urban planning
operation. Civil Engineering and Environmental Systems. 33(4). pp.267-285.
Kundu and et. al., 2015. A journey from normative to behavioral operations in supply chain
management: A review using Latent Semantic Analysis. Expert Systems with
Applications.42(2). pp.796-809.
Dao, A. D., Nguyen, D. C. and Han, M. Y., 2017. Design and operation of a rainwater for
drinking (RFD) project in a rural area: case study at Cukhe Elementary School,
Vietnam. Journal of Water, Sanitation and Hygiene for Development. 7(4). pp.651-658.
Navimipour, N. J. and Charband, Y., 2016. Knowledge sharing mechanisms and techniques in
project teams: Literature review, classification, and current trends. Computers in Human
Behavior. 62. pp.730-742.
Falkner, E. M. and Hiebl, M. R., 2015. Risk management in SMEs: a systematic review of
available evidence. The Journal of Risk Finance. 16(2). pp.122-144.
Jharko, E. and Sakrutina, E., 2016, May. On creating safety control systems for high operation
risk plants. In 2016 International Siberian Conference on Control and Communications
(SIBCON) (pp. 1-6). IEEE.
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Mills, G. R. and Razmdoost, K., 2016. Managing value co-creation/destruction: a longitudinal
education capital programme/project case study. Construction Management and
Economics. 34(4-5), pp.286-301.
Xiaohui, X. U., and et. al., 2015. Architecture and performance analysis of a smart battery
charging and swapping operation service network for electric vehicles in China. Journal
of Modern Power Systems and Clean Energy. 3(2). pp.259-268.
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