BTEC Unit 16: Operations Management Review and Critique Report

This report provides a comprehensive review and critique of operations management principles, focusing on the application of these principles within the context of Tesco. The report begins with an introduction to operations and operations management, followed by a background on Tesco, a multinational grocery retailer. It then delves into a comparative analysis of agile manufacturing and lean production, evaluating their respective advantages and disadvantages. The analysis extends to the extent to which operations management principles, particularly lean management, are implemented within Tesco, examining the impact of continuous improvement as a philosophy. The report also includes a continuous improvement plan based on the review and critique of operations management. The second part of the report discusses the product life cycle and the cost-saving techniques.

Review and Critics of
operation Management

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 chosen company
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
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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 the supply chain
(White, 2016).
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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
activities that do not add value to the production process (Ivanov, Tsipoulanidis and
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 labour can 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.
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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 the wastage 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 Tesco will
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 Act in this Tesco will change itself successfully and then it will implement
this change on the wide scale (Higuchi, NEC Corp, 2016).
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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 busi9ness 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.
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.
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.
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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.
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
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overcome this risk. And the second risk is shortage of human resource as there can be short fall
of employees.
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Illustration 1: gantt chart
Illustration 2: critical path

Project execution
Effectiveness of the PLC - As the product life cycle is very effective one as 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
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
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Illustration 3: WBS

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 .
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 give the proper direction to the company. So overall it is good for the company
(DiFazio and Chitrapu, InterDigital Patent Holdings Inc, 2016).
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