Co-op: Operations Management, Process, and Capacity Analysis
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AI Summary
This report provides a comprehensive analysis of the Co-op, a leading UK cooperative organization, focusing on its operations management, business processes, and capacity utilization. The report begins with an executive summary and an introduction to the Co-op, outlining its business model, which emphasizes member benefits and social welfare over maximizing profit. Part A delves into the overview of the company, operations management in various Co-op services (online food delivery, health services, funeral care, and legal services), and key issues such as economic viability and supply chain weaknesses. Part B examines capacity management, including planning frameworks. Part C offers recommendations for improvement. The report also explores process management, lean management strategies, and the importance of capacity planning to meet customer demands. It concludes with recommendations and a summary of the findings, providing valuable insights into the Co-op's operational strategies and areas for potential enhancement.
Running Head: Co-op
Co-op
Report
System04104
5/11/2019
Co-op
Report
System04104
5/11/2019
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Co-op
1
Executive Summary
Operation management in organisations determine the way of business process and efficiency
of the organisation. Operation management helps the organisation to create highest level of
efficiency in the organisation by converting labour and materials into finished goods and
services with high efficiency and maximise the profit of the organisation. Co-op is one of the
leading Cooperative organisations in UK that deals in Food products and also provides
services like insurance, health, and legal to its members. Co-op is operating its business on a
set of value and principles for a fairer and better way of doing business. The members of Co-
op cooperate in the business operation. However, operations management is one of the key
parts of Co-op business as it provides opportunities for the organisation to develop and grow
its business. Operation management also helps in smoothing the organisational functions and
further helps to maintain lean process. Lean process helps the organisation to reduce the
wastes of both material and time. Lean process also helps the organisation to reduce the cost
of operation on different organisational activities. However, Co-op is not known for lean
process or techniques in its business process but it maintain basic principles of lean
management. The organisation uses the various quality management techniques and tools to
manage its online and offline business operations. The efficiency of the business depends of
the capacity utilisation of the organisation. In this report, it has been found that Co-op should
follow the leading strategy for its capacity management because it helps the organisation to
future demands of the customer. Leading strategy also helps Co-op to exactly predict the
future increasing demand of customers and produce food such as pizza, according to the
anticipated demand. However, a major problem in capacity utilisation is that sometimes it
leads to the poor inventory management system and leads to wastage in the organisation of
both raw material and finished products (In case of Pizza, which is perishable). Operation
management
1
Executive Summary
Operation management in organisations determine the way of business process and efficiency
of the organisation. Operation management helps the organisation to create highest level of
efficiency in the organisation by converting labour and materials into finished goods and
services with high efficiency and maximise the profit of the organisation. Co-op is one of the
leading Cooperative organisations in UK that deals in Food products and also provides
services like insurance, health, and legal to its members. Co-op is operating its business on a
set of value and principles for a fairer and better way of doing business. The members of Co-
op cooperate in the business operation. However, operations management is one of the key
parts of Co-op business as it provides opportunities for the organisation to develop and grow
its business. Operation management also helps in smoothing the organisational functions and
further helps to maintain lean process. Lean process helps the organisation to reduce the
wastes of both material and time. Lean process also helps the organisation to reduce the cost
of operation on different organisational activities. However, Co-op is not known for lean
process or techniques in its business process but it maintain basic principles of lean
management. The organisation uses the various quality management techniques and tools to
manage its online and offline business operations. The efficiency of the business depends of
the capacity utilisation of the organisation. In this report, it has been found that Co-op should
follow the leading strategy for its capacity management because it helps the organisation to
future demands of the customer. Leading strategy also helps Co-op to exactly predict the
future increasing demand of customers and produce food such as pizza, according to the
anticipated demand. However, a major problem in capacity utilisation is that sometimes it
leads to the poor inventory management system and leads to wastage in the organisation of
both raw material and finished products (In case of Pizza, which is perishable). Operation
management
Co-op
2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................4
Purpose of the Report.............................................................................................................4
PART-A.....................................................................................................................................5
Overview about the Company....................................................................................................5
i. Operations Management in Co-op..................................................................................5
Operations Management in Various services of Co-op......................................................6
Key Issues...............................................................................................................................7
ii. Process Management in Co-op........................................................................................8
Process Chart..........................................................................................................................9
1. Process Analysis and improvement...........................................................................10
2. Customer Service Strategies......................................................................................10
3. Inventory Management..............................................................................................11
4. Scheduling operations...............................................................................................11
5. Purchasing and Supplier Management......................................................................12
iii. Lean Management.........................................................................................................12
PART-B....................................................................................................................................14
Capacity Management..........................................................................................................14
Capacity Planning Framework for Co-op.........................................................................15
PART-C....................................................................................................................................16
Recommendations................................................................................................................16
Conclusion............................................................................................................................17
References................................................................................................................................18
2
Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................4
Purpose of the Report.............................................................................................................4
PART-A.....................................................................................................................................5
Overview about the Company....................................................................................................5
i. Operations Management in Co-op..................................................................................5
Operations Management in Various services of Co-op......................................................6
Key Issues...............................................................................................................................7
ii. Process Management in Co-op........................................................................................8
Process Chart..........................................................................................................................9
1. Process Analysis and improvement...........................................................................10
2. Customer Service Strategies......................................................................................10
3. Inventory Management..............................................................................................11
4. Scheduling operations...............................................................................................11
5. Purchasing and Supplier Management......................................................................12
iii. Lean Management.........................................................................................................12
PART-B....................................................................................................................................14
Capacity Management..........................................................................................................14
Capacity Planning Framework for Co-op.........................................................................15
PART-C....................................................................................................................................16
Recommendations................................................................................................................16
Conclusion............................................................................................................................17
References................................................................................................................................18
Co-op
3
Introduction
The Co-op Food was previously known as ‘The Co-operative Food’. The Co-op is a food
retail business of the consumer co-operative movement in the United Kingdom. The Co-op is
operating its business through more than 4500 stores and it has more than 15 different co-
operative societies, which are operating the business jointly with Co-op (Co-op, 2018).
however, the Co-op does not represent a single food retail business. This research is based on
the business operation of the Co-op Food and its different services. The Co-op food is
accountable for 6.6% of UK grocery markets and it is known for its large number of
customers in the UK (Co-op, 2019). The research report based on the continuous
improvement opportunities in the business of Co-op and how it can improve its business in
the UK. The role of business process management in the Co-op has been also discussed in
consideration with its current business performance and strategies. Cooperative organisations
are known for operating the business on marginal profit and focusing on social welfare in all
over the world because their main motive is not to earn maximum profit. The research paper
also discussed how Co-op supports to its member people and organisations. The main motive
of the research paper is to examine the current business process of Co-op Food and analyse
that what are the management and operation management strategies are available to improve
the business performance of the company (Co-op, 2018).
The present research report analyses the process management in the Co-op organisation. It
further includes a process chart that represents how Co-op operates and manages its business
process. Further, in the report, an analysis has been done on the planning of process
management where it has been described that how Co-op can achieve the operational
excellence by focusing on five factors such as Process analysis and improvement, Customer
service design, inventory management etc. In the third part of the report, several strategies for
lean processes have been discussed which includes that how Co-op can reduce the
operational waste, minimise the time required in business processes, and effectively improve
the efficiency of a business process by implementing lean processes in the organisation. The
report also includes that how Co-op can maximise its capacity and what are the strategies
available for the company to maximise its capacity to fulfil the market demand for its food
products and other services. In the end, of the report, some recommendations have been
added based on the study, followed by a short conclusion which summarises the whole report
in a short paragraph.
3
Introduction
The Co-op Food was previously known as ‘The Co-operative Food’. The Co-op is a food
retail business of the consumer co-operative movement in the United Kingdom. The Co-op is
operating its business through more than 4500 stores and it has more than 15 different co-
operative societies, which are operating the business jointly with Co-op (Co-op, 2018).
however, the Co-op does not represent a single food retail business. This research is based on
the business operation of the Co-op Food and its different services. The Co-op food is
accountable for 6.6% of UK grocery markets and it is known for its large number of
customers in the UK (Co-op, 2019). The research report based on the continuous
improvement opportunities in the business of Co-op and how it can improve its business in
the UK. The role of business process management in the Co-op has been also discussed in
consideration with its current business performance and strategies. Cooperative organisations
are known for operating the business on marginal profit and focusing on social welfare in all
over the world because their main motive is not to earn maximum profit. The research paper
also discussed how Co-op supports to its member people and organisations. The main motive
of the research paper is to examine the current business process of Co-op Food and analyse
that what are the management and operation management strategies are available to improve
the business performance of the company (Co-op, 2018).
The present research report analyses the process management in the Co-op organisation. It
further includes a process chart that represents how Co-op operates and manages its business
process. Further, in the report, an analysis has been done on the planning of process
management where it has been described that how Co-op can achieve the operational
excellence by focusing on five factors such as Process analysis and improvement, Customer
service design, inventory management etc. In the third part of the report, several strategies for
lean processes have been discussed which includes that how Co-op can reduce the
operational waste, minimise the time required in business processes, and effectively improve
the efficiency of a business process by implementing lean processes in the organisation. The
report also includes that how Co-op can maximise its capacity and what are the strategies
available for the company to maximise its capacity to fulfil the market demand for its food
products and other services. In the end, of the report, some recommendations have been
added based on the study, followed by a short conclusion which summarises the whole report
in a short paragraph.
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Co-op
4
Purpose of the Report
The purpose of this report is to present the importance of operation management. This report
shows how it can improve the organisational performance and business processes by adopting
various techniques and tools of operation management. The importance of the Lean process
and capacity utilisation is also included in the report that helps to understand how Co-op can
improve its business process.
PART-A
Overview of the Company
Co-op Group was founded by Rochadale Pioneers. In 1863, the independent co-operative
societies formed a Co-operative Wholesale society that was called CWS. These stores
provide hundreds of co-op products by different Co-op stores (Co-op, 2018). However, over
the next century CWS has gone for many more changed in its business model and eventually
become the Co-operative group. This company is located in the UK and headquarter based in
Manchester. The main objective of this company is to serve its members and operate its
business for the benefit of its members in accordance with organisational values and
principles. The Co-op Company is dealing with many services including providing insurance
services, rental services, funeral services, financial services, and it also provides credit
transactions to its members. The business of Co-op depends on a different type of business
process and strategies. The Co-op is owned by individual people and other Co-ops, not big
investors (Co-op, 2018). The members of co-operative organisations determine the way of
business operation by mutual consent and voting system. Overall, Co-op Company working
on the principle of mutual help and they are operating the company with a mutual decision
and they are also working together. Any individual people can join the Co-op for their own
interest or for the promotion of the economic interest of themselves.
i. Operations Management in Co-op
Co-op provides various services to its members and the main objective of Co-op is not to
maximise profit rather than providing services to its members and various other cooperative
organisations that are associated with the Co-op. The C0-op is working on the concept of
“Survival of the weakest instead of survival of the fittest.” Co-op is operated its business by
its own members rather than member organisation and people by its own effort and business
4
Purpose of the Report
The purpose of this report is to present the importance of operation management. This report
shows how it can improve the organisational performance and business processes by adopting
various techniques and tools of operation management. The importance of the Lean process
and capacity utilisation is also included in the report that helps to understand how Co-op can
improve its business process.
PART-A
Overview of the Company
Co-op Group was founded by Rochadale Pioneers. In 1863, the independent co-operative
societies formed a Co-operative Wholesale society that was called CWS. These stores
provide hundreds of co-op products by different Co-op stores (Co-op, 2018). However, over
the next century CWS has gone for many more changed in its business model and eventually
become the Co-operative group. This company is located in the UK and headquarter based in
Manchester. The main objective of this company is to serve its members and operate its
business for the benefit of its members in accordance with organisational values and
principles. The Co-op Company is dealing with many services including providing insurance
services, rental services, funeral services, financial services, and it also provides credit
transactions to its members. The business of Co-op depends on a different type of business
process and strategies. The Co-op is owned by individual people and other Co-ops, not big
investors (Co-op, 2018). The members of co-operative organisations determine the way of
business operation by mutual consent and voting system. Overall, Co-op Company working
on the principle of mutual help and they are operating the company with a mutual decision
and they are also working together. Any individual people can join the Co-op for their own
interest or for the promotion of the economic interest of themselves.
i. Operations Management in Co-op
Co-op provides various services to its members and the main objective of Co-op is not to
maximise profit rather than providing services to its members and various other cooperative
organisations that are associated with the Co-op. The C0-op is working on the concept of
“Survival of the weakest instead of survival of the fittest.” Co-op is operated its business by
its own members rather than member organisation and people by its own effort and business
Co-op
5
processes. Overall, we can say that the Co-op Company is operating its business as a
voluntary association of persons and not of capital (Mazzarol, Simmons, Mamouni Limnios,
and Clark, 2014).
(Source: Puusa, Hokkila, and Varis, 2016)
Cooperative organisations play an important role in the development of society and country
as well because it considers the need of society and its members rather than earning profit.
The Co-op Company mainly deals with social functions and provides food to insurance
facilities and services to its members. While some other co-operative organisations in the UK
are working for farmers and agriculture's welfare, the Co-op is working for overall society
and for its members. However, the Co-op is known for providing foods, funeral care,
insurance, and other financial assistance to its customers (Tomlinson, 2010).
Operations Management in Various services of Co-op
Operations Management in Online Food Delivery: Co-op delivers Pizza, Tiramisu
Pavlova, Antipasti pull-apart loaf, marinated tomato salad, tomato and olive tart etc. to its
customers. The members of Co-op have some credit benefits over Co-op online services. Co-
op manages the online product delivery through various supply chain network and delivers
the product to its customers and member via a delivery boy (Meade, 2013). Apart from this,
5
processes. Overall, we can say that the Co-op Company is operating its business as a
voluntary association of persons and not of capital (Mazzarol, Simmons, Mamouni Limnios,
and Clark, 2014).
(Source: Puusa, Hokkila, and Varis, 2016)
Cooperative organisations play an important role in the development of society and country
as well because it considers the need of society and its members rather than earning profit.
The Co-op Company mainly deals with social functions and provides food to insurance
facilities and services to its members. While some other co-operative organisations in the UK
are working for farmers and agriculture's welfare, the Co-op is working for overall society
and for its members. However, the Co-op is known for providing foods, funeral care,
insurance, and other financial assistance to its customers (Tomlinson, 2010).
Operations Management in Various services of Co-op
Operations Management in Online Food Delivery: Co-op delivers Pizza, Tiramisu
Pavlova, Antipasti pull-apart loaf, marinated tomato salad, tomato and olive tart etc. to its
customers. The members of Co-op have some credit benefits over Co-op online services. Co-
op manages the online product delivery through various supply chain network and delivers
the product to its customers and member via a delivery boy (Meade, 2013). Apart from this,
Co-op
6
Co-op provides various continental dishes and world-class favour in its food including
American taste and Asian taste (including Chinese and Indian food taste). There are many
Co-op stores all over the country that serve more than hundreds of food dishes to its member
and customers (Trkman, 2010).
Operational Management in Health Service: Co-op provides medical facilities and health-
related service care to its members and people. There is large number of people and medical
stores are connected with Co-op and it provides the best healthcare service and medicines for
their health problems (Hammer, 2015). Apart from this, Co-op provides online facilities of
medication via its online app "Co-op App" on mobile. People who have a GP card and having
a prescription of GP in England can order any medicine or Medicare help from their mobile
phones. The Company provides regular updates on online order of medicines and delivers the
medicine on the doorstep of the customer. People can easily repeat and order their
prescription from the Co-op app and it is secured link for availing medical and health
facilities with the help of Co-op App (Cornforth and Spear, 2010).
Operational Management in Funeral Care Service: The Co-op Company provide services
related to funeral care as well. The company take the request of its members and arrange
funeral care in the near funeral house at very low care cost. The Co-op societies arrange the
resources and arrange the funeral in the near funeral home on request of its member.
However, there are few members of the company who provide all arrangement in the funeral
of any person. The person who needs of the Company, he or she can contact to local Funeral
Director at any time, every day of the year and Co-op will arrange the funeral care. The Co-
op also provides facilities for paying service charge after the funeral and provides discounts
to its customers (Viljoen and Wiskerke, 2012).
Operations Management in Legal Services: The Co-op organisation in the UK provides
legal services through an excellent business operation process. The Co-op provides agents to
every customer for personal injury and medical care negligence claims, in making a will,
probate solicitors, with an appropriate price. Co-op is associated with various law and legal
expert members and they provide services to other people with link of Co-op organisation
(Weske, 2012). Co-op is known for its best services and food product delivery to its
customers and its members. The online facility of the Company provides day and night
facilities to the customers. The operation management function applies on many middle
operators and Co-op stores, Co-op supply chain networks, and delivery boys.
6
Co-op provides various continental dishes and world-class favour in its food including
American taste and Asian taste (including Chinese and Indian food taste). There are many
Co-op stores all over the country that serve more than hundreds of food dishes to its member
and customers (Trkman, 2010).
Operational Management in Health Service: Co-op provides medical facilities and health-
related service care to its members and people. There is large number of people and medical
stores are connected with Co-op and it provides the best healthcare service and medicines for
their health problems (Hammer, 2015). Apart from this, Co-op provides online facilities of
medication via its online app "Co-op App" on mobile. People who have a GP card and having
a prescription of GP in England can order any medicine or Medicare help from their mobile
phones. The Company provides regular updates on online order of medicines and delivers the
medicine on the doorstep of the customer. People can easily repeat and order their
prescription from the Co-op app and it is secured link for availing medical and health
facilities with the help of Co-op App (Cornforth and Spear, 2010).
Operational Management in Funeral Care Service: The Co-op Company provide services
related to funeral care as well. The company take the request of its members and arrange
funeral care in the near funeral house at very low care cost. The Co-op societies arrange the
resources and arrange the funeral in the near funeral home on request of its member.
However, there are few members of the company who provide all arrangement in the funeral
of any person. The person who needs of the Company, he or she can contact to local Funeral
Director at any time, every day of the year and Co-op will arrange the funeral care. The Co-
op also provides facilities for paying service charge after the funeral and provides discounts
to its customers (Viljoen and Wiskerke, 2012).
Operations Management in Legal Services: The Co-op organisation in the UK provides
legal services through an excellent business operation process. The Co-op provides agents to
every customer for personal injury and medical care negligence claims, in making a will,
probate solicitors, with an appropriate price. Co-op is associated with various law and legal
expert members and they provide services to other people with link of Co-op organisation
(Weske, 2012). Co-op is known for its best services and food product delivery to its
customers and its members. The online facility of the Company provides day and night
facilities to the customers. The operation management function applies on many middle
operators and Co-op stores, Co-op supply chain networks, and delivery boys.
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Co-op
7
Key Issues
There are some major issues in the business operation management of the Co-op. The key
problem of the organisation is that it operates its business on very small profit and salary of
members or people who are connected with Co-op organisation is also given from this
minimal profit (Röglinger, Pöppelbuß, and Becker, 2012). Co-op is working and operating its
business on social welfare theme, which is almost all the cooperative organisation does in the
country. However, the investment funds are not allowed by the company in the organisation
from any external members. However, there are some of the key issues in Co-op
organisations are as follow:
1. Economic Viability, because Co-op is not accepting investment funds from external
sources, it is lacking in financial resources.
2. Weak supply chain network is major issues. Although the Co-op is operating its business
on a very small margin and earn low profitability that further leads to a weak supply
chain network and poor business performance (Borda-Rodriguez and Vicari, 2014).
3. People who are connected with Co-op are not seriously performing the business
operation because of very less profit or a small income they earned after their services.
4. Lack of governmental and technical support to this organisation also creates a problem
for the Co-op organisation. It needed funds for improving its business operations and its
effectiveness and it will only possible if the organisation get funds from outsiders or
from governments (Dogarawa, 2010).
5. Delivery of products and services through online is important for everyone. However,
delivery of medicine online needs immediate and urgent delivery to the customers. Here
the company is lacking in quick and on time delivery of food and medicines to its
customers.
6. The interference of local government and community also affect its business operations
in the country.
ii. Process Management in Co-op
A business process is a set of activities that are required to perform a business operation in
the organisation. Process management in any organisation is necessary to handle the business
process and the activities, which are performed in the organisation. The business process in
any organisation may be performed by people or by system or by both sequentially or
parallel. Business process management in any organisation can be done under the following
7
Key Issues
There are some major issues in the business operation management of the Co-op. The key
problem of the organisation is that it operates its business on very small profit and salary of
members or people who are connected with Co-op organisation is also given from this
minimal profit (Röglinger, Pöppelbuß, and Becker, 2012). Co-op is working and operating its
business on social welfare theme, which is almost all the cooperative organisation does in the
country. However, the investment funds are not allowed by the company in the organisation
from any external members. However, there are some of the key issues in Co-op
organisations are as follow:
1. Economic Viability, because Co-op is not accepting investment funds from external
sources, it is lacking in financial resources.
2. Weak supply chain network is major issues. Although the Co-op is operating its business
on a very small margin and earn low profitability that further leads to a weak supply
chain network and poor business performance (Borda-Rodriguez and Vicari, 2014).
3. People who are connected with Co-op are not seriously performing the business
operation because of very less profit or a small income they earned after their services.
4. Lack of governmental and technical support to this organisation also creates a problem
for the Co-op organisation. It needed funds for improving its business operations and its
effectiveness and it will only possible if the organisation get funds from outsiders or
from governments (Dogarawa, 2010).
5. Delivery of products and services through online is important for everyone. However,
delivery of medicine online needs immediate and urgent delivery to the customers. Here
the company is lacking in quick and on time delivery of food and medicines to its
customers.
6. The interference of local government and community also affect its business operations
in the country.
ii. Process Management in Co-op
A business process is a set of activities that are required to perform a business operation in
the organisation. Process management in any organisation is necessary to handle the business
process and the activities, which are performed in the organisation. The business process in
any organisation may be performed by people or by system or by both sequentially or
parallel. Business process management in any organisation can be done under the following
Co-op
8
steps: Design, modelling, execution, monitoring, and optimization business process to
enhance the profit of the organisation (Teich and Faddoul, 2013). Co-op is almost following
the same business process management in the organisation like other organisations, but its
emphasis is not earning or maximising profits, rather it works for the society and its
members.
Co-op focuses on providing the best services to its member organisation and people by
aligning all aspects of the Co-op organisation. The co-op uses a holistic approach in business
process management and its attempt to improve the processes on a regular basis so it can
provide the best service to its customers. For example, Co-op provides facilities to its
member to purchase the products on credit without any interest. The Co-op organisation
facilitates its members to order their medicines online and organisation utilises its all
resources to provide the medicines within the time to its customers and charges a very little
delivery cost. There are various steps in process management that are important for business
process management and the execution of this step is also necessary for any organisation.
Co-op connects people by giving them membership of the organisation and provides benefits
to them by offering low prices and various offers. The business process of the company is
managed by organisational and store managers. There are plenty of stores all around the
country in the UK and these all stores are proving their demanded products and service
facilities to the Co-op members on cheap cost and on a priority basis. For example, if a
8
steps: Design, modelling, execution, monitoring, and optimization business process to
enhance the profit of the organisation (Teich and Faddoul, 2013). Co-op is almost following
the same business process management in the organisation like other organisations, but its
emphasis is not earning or maximising profits, rather it works for the society and its
members.
Co-op focuses on providing the best services to its member organisation and people by
aligning all aspects of the Co-op organisation. The co-op uses a holistic approach in business
process management and its attempt to improve the processes on a regular basis so it can
provide the best service to its customers. For example, Co-op provides facilities to its
member to purchase the products on credit without any interest. The Co-op organisation
facilitates its members to order their medicines online and organisation utilises its all
resources to provide the medicines within the time to its customers and charges a very little
delivery cost. There are various steps in process management that are important for business
process management and the execution of this step is also necessary for any organisation.
Co-op connects people by giving them membership of the organisation and provides benefits
to them by offering low prices and various offers. The business process of the company is
managed by organisational and store managers. There are plenty of stores all around the
country in the UK and these all stores are proving their demanded products and service
facilities to the Co-op members on cheap cost and on a priority basis. For example, if a
Co-op
9
person wants to funeral plan then he/she should become a member of the organisation by
payment of one Euro. The Co-op provides benefits to the community as well as it provides
1% of its income to the community and spends it for their welfare. However, if the
organisation wants to introduce new product or services, the members of Co-op vote in
favour of the new service or products and then it is launched by the organisation. People
benefited from the Co-op must have a membership of the organisation to get benefit before
accessing the service of the organisation.
Process Map of the Co-op
Members
Store Manager
Member council
Board Members
General meeting of Members
Supervisory Boards
Executive Board
Chairman’s
Meeting
Food
Products
Health
products
Insurance
services Legal services
Members/Customers
Cooperative
Stores
Co-op Organisation
9
person wants to funeral plan then he/she should become a member of the organisation by
payment of one Euro. The Co-op provides benefits to the community as well as it provides
1% of its income to the community and spends it for their welfare. However, if the
organisation wants to introduce new product or services, the members of Co-op vote in
favour of the new service or products and then it is launched by the organisation. People
benefited from the Co-op must have a membership of the organisation to get benefit before
accessing the service of the organisation.
Process Map of the Co-op
Members
Store Manager
Member council
Board Members
General meeting of Members
Supervisory Boards
Executive Board
Chairman’s
Meeting
Food
Products
Health
products
Insurance
services Legal services
Members/Customers
Cooperative
Stores
Co-op Organisation
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Co-op
10
The process chart shows the Business process and business management structure that how
Co-op operates its business. However, the business management processes in the Co-op
depends on its organisational members and on those stores, which are associated with the Co-
op organisation. The operation manager is responsible for operating the business of the Co-
op, regulates the activities of these stores, and provides them all the necessary guidelines for
conducting the business operations (Cornforth and Spear, 2010). The Co-op can plan its
activities to achieve organisational excellence under the following actions:
1. Process Analysis and improvement
Co-op can take several actions to improve and manage its business operations. These steps
are as follow:
Improve business process: Co-op can define the business process to its members and stores
and ask them for any complaint or issue that should be resolved to improve the business of
the Co-op. A major problem in Co-op is that it charges very fewer prices for its services that
can be improved. However, the Delivery of products is also arriving late to the customers in
online orders. These problems need immediate improvement. Apart from this, the supply
chain network of the company is so weak (Birchall, 2014).
Integrated Business Process: The Co-op somewhere lacking in integrating business process
approach. There are too many business models for both products and services create
problems to manage the whole business in Co-ops. It has been seen if an organisational
creates an integrated approach in the business operation; it will help the organisation to
improve its business process. For example, If Co-op improves the supply chain network and
adds a third party logistics company in its online sales processing, then it can effectively meet
the requirements of its users or members. However, another good example of it to improve
the online supply chain processes and use advanced technology and techniques to deliver the
products to the customer as quickly as possible (Birchall and Simmons, 2010).
Monitoring: The monitoring process of the organisation is also not effective. There are many
orders are arriving late and people are not happy with the quality of its insurance and legal
services. For example, The Co-op organisation should monitor the business activities and
other online processes to improve its business operations.
10
The process chart shows the Business process and business management structure that how
Co-op operates its business. However, the business management processes in the Co-op
depends on its organisational members and on those stores, which are associated with the Co-
op organisation. The operation manager is responsible for operating the business of the Co-
op, regulates the activities of these stores, and provides them all the necessary guidelines for
conducting the business operations (Cornforth and Spear, 2010). The Co-op can plan its
activities to achieve organisational excellence under the following actions:
1. Process Analysis and improvement
Co-op can take several actions to improve and manage its business operations. These steps
are as follow:
Improve business process: Co-op can define the business process to its members and stores
and ask them for any complaint or issue that should be resolved to improve the business of
the Co-op. A major problem in Co-op is that it charges very fewer prices for its services that
can be improved. However, the Delivery of products is also arriving late to the customers in
online orders. These problems need immediate improvement. Apart from this, the supply
chain network of the company is so weak (Birchall, 2014).
Integrated Business Process: The Co-op somewhere lacking in integrating business process
approach. There are too many business models for both products and services create
problems to manage the whole business in Co-ops. It has been seen if an organisational
creates an integrated approach in the business operation; it will help the organisation to
improve its business process. For example, If Co-op improves the supply chain network and
adds a third party logistics company in its online sales processing, then it can effectively meet
the requirements of its users or members. However, another good example of it to improve
the online supply chain processes and use advanced technology and techniques to deliver the
products to the customer as quickly as possible (Birchall and Simmons, 2010).
Monitoring: The monitoring process of the organisation is also not effective. There are many
orders are arriving late and people are not happy with the quality of its insurance and legal
services. For example, The Co-op organisation should monitor the business activities and
other online processes to improve its business operations.
Co-op
11
2. Customer Service Strategies
Customers are the key to every business organisations and their success. However, the
members of Co-op are also very important for the company. To improve the customer service
the Co-op should adopt various strategies (Mazzarol, Limnios, and Reboud, 2011). Happy
customers in the organisation build the credibility of the organisation. Thus, it is essential for
Co-op to care about their customers and adopt various strategies that help them to gain better
customer experience with Co-op. For example, the organisation can ask customer feedback
about the service they avail from Co-op stores and online orders. Connecting with members
and customers is a better option to design good customer service strategies (Hodge, Goforth
Ross, Joines, and Thoney, 2011). For example, the website of the Company can invite its
customers for providing feedback about the services. This can also be done through live chat,
online phone calls, and mobile apps.
3. Inventory Management
Co-op is dealing with foods and providing its products to the customer on cheap prices with
best quality products. It has been seen that the Inventory management system of the
organisation somewhere lies in the multi-retailer inventory control system (Singh, 2012). The
motivation of storekeepers, a better communication system, good facilities of storage of
products in the stores is some of the key factors in Inventory control in Co-op. However, the
use of technology like automatic control of technology on inventory control process can be
effective in such organisations. Apart from this, the Co-op should also provide information
about the availability of products on its website and mobile app. Thus, no customer or
member will suffer from the poor inventory control system (Behrouzi and Wong, 2011).
Apart from this, the central warehouse system of Co-op should be connected with true value
member vendors who supply the products to the customer on a regular basis. However, the
shipping cost is another problem for Co-op and it should be reduced by the organisation as it
operates its business on very less margin (Co-op, 2018). To reduce the shipping cost the Co-
op can store the products on a centralised location which should be accessible and on less
distance for the cooperative stores (Jussila, Goel, and Tuominen, 2012). The organisation can
also promote the combined buying power of members, which gives more benefits to the Co-
op. The cost of goods is the largest expense for the Co-op and for most of the retail stores of
Co-op. The cost of goods like foods and pizza almost covers more than 60% of store owners'
expense and if it will be minimised by the company and offer relatively less costly products
to its retail cooperative stores, then it will be good for the inventory management of the
11
2. Customer Service Strategies
Customers are the key to every business organisations and their success. However, the
members of Co-op are also very important for the company. To improve the customer service
the Co-op should adopt various strategies (Mazzarol, Limnios, and Reboud, 2011). Happy
customers in the organisation build the credibility of the organisation. Thus, it is essential for
Co-op to care about their customers and adopt various strategies that help them to gain better
customer experience with Co-op. For example, the organisation can ask customer feedback
about the service they avail from Co-op stores and online orders. Connecting with members
and customers is a better option to design good customer service strategies (Hodge, Goforth
Ross, Joines, and Thoney, 2011). For example, the website of the Company can invite its
customers for providing feedback about the services. This can also be done through live chat,
online phone calls, and mobile apps.
3. Inventory Management
Co-op is dealing with foods and providing its products to the customer on cheap prices with
best quality products. It has been seen that the Inventory management system of the
organisation somewhere lies in the multi-retailer inventory control system (Singh, 2012). The
motivation of storekeepers, a better communication system, good facilities of storage of
products in the stores is some of the key factors in Inventory control in Co-op. However, the
use of technology like automatic control of technology on inventory control process can be
effective in such organisations. Apart from this, the Co-op should also provide information
about the availability of products on its website and mobile app. Thus, no customer or
member will suffer from the poor inventory control system (Behrouzi and Wong, 2011).
Apart from this, the central warehouse system of Co-op should be connected with true value
member vendors who supply the products to the customer on a regular basis. However, the
shipping cost is another problem for Co-op and it should be reduced by the organisation as it
operates its business on very less margin (Co-op, 2018). To reduce the shipping cost the Co-
op can store the products on a centralised location which should be accessible and on less
distance for the cooperative stores (Jussila, Goel, and Tuominen, 2012). The organisation can
also promote the combined buying power of members, which gives more benefits to the Co-
op. The cost of goods is the largest expense for the Co-op and for most of the retail stores of
Co-op. The cost of goods like foods and pizza almost covers more than 60% of store owners'
expense and if it will be minimised by the company and offer relatively less costly products
to its retail cooperative stores, then it will be good for the inventory management of the
Co-op
12
company (Co-op, 2018). However, the wholesale stores of the Co-op are more efficient as
they purchase products in bulk and are capable of managing the inventory at low cost.
4. Scheduling operations
Scheduling is the business process that is related to arranging, controlling, and optimising the
business process. The Co-op is responsible for scheduling human resources, production
processes, machinery processes etc. The business process in Co-op largely depends on human
processes (Novkovic and Holm, 2012). The Co-op is scheduling these processes in such a
way that it improves the business process and, member of the organisation will be benefited
from the Co-op organisations. The figure shows how Co-op planning its operation schedules
as the company focuses especially on transportation management and then its focus on
manufacturing operations. However, the scheduling operation is warehouse is also a tough
job for the company as it expands almost equal time and effort on warehouse activities
(Borda-Rodriguez and Vicari, 2014).
(Source: Sonnino and Griggs-Trevarthen, 2013
12
company (Co-op, 2018). However, the wholesale stores of the Co-op are more efficient as
they purchase products in bulk and are capable of managing the inventory at low cost.
4. Scheduling operations
Scheduling is the business process that is related to arranging, controlling, and optimising the
business process. The Co-op is responsible for scheduling human resources, production
processes, machinery processes etc. The business process in Co-op largely depends on human
processes (Novkovic and Holm, 2012). The Co-op is scheduling these processes in such a
way that it improves the business process and, member of the organisation will be benefited
from the Co-op organisations. The figure shows how Co-op planning its operation schedules
as the company focuses especially on transportation management and then its focus on
manufacturing operations. However, the scheduling operation is warehouse is also a tough
job for the company as it expands almost equal time and effort on warehouse activities
(Borda-Rodriguez and Vicari, 2014).
(Source: Sonnino and Griggs-Trevarthen, 2013
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Co-op
13
5. Purchasing and Supplier Management
The Co-op believes in to establish a good relationship with its suppliers. The organisation
provides membership to the supplier and provides them with all the facilities for supply raw
materials and goods to the organisation. Apart from this, the organisation also acquires Nisa
wholesaling and provides products in the market at very low cost. Co-op is spreading its area
by expanding the number of stores in the country in both retail and wholesale stores. It means
the company is reaching a large number of customers and also increase the numbers of Co-op
products in the market that helps to increase the scale of the relationship with its suppliers.
iii. Lean Management
Lean Management is the process of reducing the manufacturing or production waste in the
organisation. Lean management is one of the growing and famous concepts in the business
world (Rahman, Sharif, and Esa, 2013). Lean management is widely accepted by many
industries and organisation, including Co-op organisation as well. Lean management can be
applied to both business and production processes (Bhamu and Singh Sangwan, 2014). It can
also apply to the manufacturing of products to software development. Co-op is known for it's
funeral and life planning business in the UK and the competition in this industry is growing
every day. However, the market is changing rapidly and the need and requirements of
customers also changing every passing day. However, the other business of Co-op is
del9vering food and medicine to customers from both physical and online mode. In cases,
delivering quality services to the customers and applying lean management in the service and
business process is compulsory. To improve the quality of service and reduce the waste in the
food manufacturing process, the organisation applies the ISO standards and applies it in the
organisation. The best tool for lean management in the organisation is adopted by the Co-op
organisation (Dombrowski and Mielke, 2013).
The organisation is using various lean methods for continuous improvement in business
organisations. However, the organisation mainly focuses on the business process that it will
not affect the environmental system as well. However, the Co-op is focusing on competitive
business and providing the best tools and technology to its food manufacturer that will further
help in maintaining safety and reducing waste. However, it has been seen that the response of
online customers about the product and services of Co-op is not as good as it is showing in its
site. People are not happy with the lean management of the organisation especially in
insurance service and online food delivery service (Ghosh, 2012). The business principle and
13
5. Purchasing and Supplier Management
The Co-op believes in to establish a good relationship with its suppliers. The organisation
provides membership to the supplier and provides them with all the facilities for supply raw
materials and goods to the organisation. Apart from this, the organisation also acquires Nisa
wholesaling and provides products in the market at very low cost. Co-op is spreading its area
by expanding the number of stores in the country in both retail and wholesale stores. It means
the company is reaching a large number of customers and also increase the numbers of Co-op
products in the market that helps to increase the scale of the relationship with its suppliers.
iii. Lean Management
Lean Management is the process of reducing the manufacturing or production waste in the
organisation. Lean management is one of the growing and famous concepts in the business
world (Rahman, Sharif, and Esa, 2013). Lean management is widely accepted by many
industries and organisation, including Co-op organisation as well. Lean management can be
applied to both business and production processes (Bhamu and Singh Sangwan, 2014). It can
also apply to the manufacturing of products to software development. Co-op is known for it's
funeral and life planning business in the UK and the competition in this industry is growing
every day. However, the market is changing rapidly and the need and requirements of
customers also changing every passing day. However, the other business of Co-op is
del9vering food and medicine to customers from both physical and online mode. In cases,
delivering quality services to the customers and applying lean management in the service and
business process is compulsory. To improve the quality of service and reduce the waste in the
food manufacturing process, the organisation applies the ISO standards and applies it in the
organisation. The best tool for lean management in the organisation is adopted by the Co-op
organisation (Dombrowski and Mielke, 2013).
The organisation is using various lean methods for continuous improvement in business
organisations. However, the organisation mainly focuses on the business process that it will
not affect the environmental system as well. However, the Co-op is focusing on competitive
business and providing the best tools and technology to its food manufacturer that will further
help in maintaining safety and reducing waste. However, it has been seen that the response of
online customers about the product and services of Co-op is not as good as it is showing in its
site. People are not happy with the lean management of the organisation especially in
insurance service and online food delivery service (Ghosh, 2012). The business principle and
Co-op
14
values of the company are somewhat is inspired by international cooperative business
practices. The food manufacturing process in the Company aims at maximising the output in
the organisation by utilising optimal input and efforts. The Co-op aims at reducing the waste
and use of the excess raw material used in the production process. Waste can be created in
various ways, which are discussed below:
1. Overburdened work: The Co-op does never believe to give extra pressure on its
employees or members for producing or manufacturing excessively. The
manufacturing process of foods in Co-op is decided by the demand of the customers
and according to the need of customers who wants to consume the products or use the
services. For example, in the stores of Co-op organisation the delivery of pizza
through online is based on a number of sequences works such as ordering, payment,
accept of order and payments by Co-op and then deliver it to the customers through
the supply chain network (Goel, 2013). Apart from this, every process is visible and
well understandable for the customers of Co-op and the delivery can easily execute by
following a sequence of steps. Lean process in the organisation helps in the online
delivery process because the organisation is lacking in delivering products in a timely
manner.
2. Unevenness of Workloads: Sometimes it has been seen that uneven distribution of
work is also caused waste in the organisation. Co-op manages this situation by
distributing the work equally in the organisation. Every people are responsible for his
or her own work. Although, the unevenness of workload is not possible in the online
delivery of foods such type of mistakes always happens in the manufacturing
organisation where the role of people is divided on daily-based customer demands.
However, to implement the lean management in the organisation there are several
principles should be followed:
1. Identification of customers with specified values: It helps to analyse the efforts of
customers, time that he/she spends to get the services or products, or the money
customer invested to get the services or products from the organisation.
2. Identification of value streams: it means to provide the same quality services to
each customer and ensure that every customer will get an equal level of satisfaction or
value from purchasing the products or services. For example, Co-op provides an equal
type of services and equal quality products to its customer.
14
values of the company are somewhat is inspired by international cooperative business
practices. The food manufacturing process in the Company aims at maximising the output in
the organisation by utilising optimal input and efforts. The Co-op aims at reducing the waste
and use of the excess raw material used in the production process. Waste can be created in
various ways, which are discussed below:
1. Overburdened work: The Co-op does never believe to give extra pressure on its
employees or members for producing or manufacturing excessively. The
manufacturing process of foods in Co-op is decided by the demand of the customers
and according to the need of customers who wants to consume the products or use the
services. For example, in the stores of Co-op organisation the delivery of pizza
through online is based on a number of sequences works such as ordering, payment,
accept of order and payments by Co-op and then deliver it to the customers through
the supply chain network (Goel, 2013). Apart from this, every process is visible and
well understandable for the customers of Co-op and the delivery can easily execute by
following a sequence of steps. Lean process in the organisation helps in the online
delivery process because the organisation is lacking in delivering products in a timely
manner.
2. Unevenness of Workloads: Sometimes it has been seen that uneven distribution of
work is also caused waste in the organisation. Co-op manages this situation by
distributing the work equally in the organisation. Every people are responsible for his
or her own work. Although, the unevenness of workload is not possible in the online
delivery of foods such type of mistakes always happens in the manufacturing
organisation where the role of people is divided on daily-based customer demands.
However, to implement the lean management in the organisation there are several
principles should be followed:
1. Identification of customers with specified values: It helps to analyse the efforts of
customers, time that he/she spends to get the services or products, or the money
customer invested to get the services or products from the organisation.
2. Identification of value streams: it means to provide the same quality services to
each customer and ensure that every customer will get an equal level of satisfaction or
value from purchasing the products or services. For example, Co-op provides an equal
type of services and equal quality products to its customer.
Co-op
15
3. Elimination of Waste: The Co-op organisation also uses lean management principles
to improve its business processes. Although the Co-op is not advertising itself as the
lean management organisation it uses the basic principles of lean management in the
organisation while it delivers the product or services to its customers. The co-op uses
lean management principles to reduce the time in online delivery of products,
reducing efforts of people in the organisation, and reduce the cost of different
operation in the organisation.
4. Act in response to the customer pull: This is an important principle that is followed
by the Co-op in which it assess and calculate the demand of customers and then
manufactures and supply food products or supply medicines in the stores that meet the
demand of customers. It also reduces in unnecessary inventory management and
reduces the cost of maintenance.
5. Pursue Perfection: The Co-op eliminated the wasteful processes in the business
process especially in food and service providing services. The Co-op focuses on
continuous improvement and adjustment in the rearrangement and adjustment of
business processes that eliminate the unnecessary activity and waste in the
organisation.
These five principles of lean management normally help any organisation to reduce waste
and improve business processes. It helps in continuous business improvements and
ensures that every activity in the organisation will be performed in the right directions.
Co-op implies all the principles of lean management in the organisation to reduce waste
and improve its business processes.
PART-B
Capacity Management
Capacity is the upper limit load on the work or manufacturing process in an organisation,
which is handled by almost every organisation to improve its efficiency and effectiveness of
business operations. Capacity management determines the production capacity of the
organisation. However, capacity planning is essential to fulfil the market demand of customer
in any organisation. Capacity planning is the process of determining how much production or
manufacturing is necessary to fulfil the changing customer demands of a particular product or
services (Mazzarol, Limnios, and Reboud, 2013). In other words, capacity is a maximum
15
3. Elimination of Waste: The Co-op organisation also uses lean management principles
to improve its business processes. Although the Co-op is not advertising itself as the
lean management organisation it uses the basic principles of lean management in the
organisation while it delivers the product or services to its customers. The co-op uses
lean management principles to reduce the time in online delivery of products,
reducing efforts of people in the organisation, and reduce the cost of different
operation in the organisation.
4. Act in response to the customer pull: This is an important principle that is followed
by the Co-op in which it assess and calculate the demand of customers and then
manufactures and supply food products or supply medicines in the stores that meet the
demand of customers. It also reduces in unnecessary inventory management and
reduces the cost of maintenance.
5. Pursue Perfection: The Co-op eliminated the wasteful processes in the business
process especially in food and service providing services. The Co-op focuses on
continuous improvement and adjustment in the rearrangement and adjustment of
business processes that eliminate the unnecessary activity and waste in the
organisation.
These five principles of lean management normally help any organisation to reduce waste
and improve business processes. It helps in continuous business improvements and
ensures that every activity in the organisation will be performed in the right directions.
Co-op implies all the principles of lean management in the organisation to reduce waste
and improve its business processes.
PART-B
Capacity Management
Capacity is the upper limit load on the work or manufacturing process in an organisation,
which is handled by almost every organisation to improve its efficiency and effectiveness of
business operations. Capacity management determines the production capacity of the
organisation. However, capacity planning is essential to fulfil the market demand of customer
in any organisation. Capacity planning is the process of determining how much production or
manufacturing is necessary to fulfil the changing customer demands of a particular product or
services (Mazzarol, Limnios, and Reboud, 2013). In other words, capacity is a maximum
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Co-op
16
amount of work that can be completed by the organisation within a specified period. If the
organisation failed to analyse the capacity and demand of the products in the market, it results
in inefficiency of the organisation. However, the capacity of any organisation can be
improved by introducing new techniques, new technology, adopting new method of
production, provides training to the organisational workers, increasing the number of
machines, or increasing the number of employees or increasing the shifts of current
employees (Lorange, 2013).
Co-op is one of the leading cooperative organisations in the UK, it is known for its large
number of stores on all over the country, and it has many subsidiary cooperative partners that
help in the business processes. Co-op is dealing in both product delivery, food delivery, and
provides legal and insurance services to its customers. Although the Co-op offers various
products to its customers and various food products and it needed high quality of production
capacity (Poppendieck, 2011). However, the Co-op is targeting a large number of customers
in the UK and it has an urgent need of improving its product quality and capacity both. To
meet the requirements of customers, Co-op needs a high quality of business process strategy
that helps the organisation to improve its business operation and it's capacity of production
foods. To meet the customer's demand and improve the capacity of the organisation in food
segments, the Co-op can adopt various strategies in the UK cooperative market:
1. Lead Strategy: Lead strategy can help the company to increase its production
capacity in advance of predicted or anticipated increase demands of customers.
However, this strategy is suitable for the Co-op as it has registered members for its
services and they know the demand for their services. However, the product demand
such as food items can be produced in advance, but it is not necessary that demand of
pizza is automatically rising or decline (Staats, Brunner, and Upton, 2011).
2. Lag Strategy: In such a strategy, the company boosted the production or increase the
supply of products or services after knowing the actual demands of customers. This
strategy can be applied to Co-op organisation as it has a large number of customers
for its insurance and legal services. Although calculating or knowing the exact
number of customers for food products is not possible, thus it should use this strategy
in the insurance and health sector, but not in the food segment.
16
amount of work that can be completed by the organisation within a specified period. If the
organisation failed to analyse the capacity and demand of the products in the market, it results
in inefficiency of the organisation. However, the capacity of any organisation can be
improved by introducing new techniques, new technology, adopting new method of
production, provides training to the organisational workers, increasing the number of
machines, or increasing the number of employees or increasing the shifts of current
employees (Lorange, 2013).
Co-op is one of the leading cooperative organisations in the UK, it is known for its large
number of stores on all over the country, and it has many subsidiary cooperative partners that
help in the business processes. Co-op is dealing in both product delivery, food delivery, and
provides legal and insurance services to its customers. Although the Co-op offers various
products to its customers and various food products and it needed high quality of production
capacity (Poppendieck, 2011). However, the Co-op is targeting a large number of customers
in the UK and it has an urgent need of improving its product quality and capacity both. To
meet the requirements of customers, Co-op needs a high quality of business process strategy
that helps the organisation to improve its business operation and it's capacity of production
foods. To meet the customer's demand and improve the capacity of the organisation in food
segments, the Co-op can adopt various strategies in the UK cooperative market:
1. Lead Strategy: Lead strategy can help the company to increase its production
capacity in advance of predicted or anticipated increase demands of customers.
However, this strategy is suitable for the Co-op as it has registered members for its
services and they know the demand for their services. However, the product demand
such as food items can be produced in advance, but it is not necessary that demand of
pizza is automatically rising or decline (Staats, Brunner, and Upton, 2011).
2. Lag Strategy: In such a strategy, the company boosted the production or increase the
supply of products or services after knowing the actual demands of customers. This
strategy can be applied to Co-op organisation as it has a large number of customers
for its insurance and legal services. Although calculating or knowing the exact
number of customers for food products is not possible, thus it should use this strategy
in the insurance and health sector, but not in the food segment.
Co-op
17
3. Match Strategy: In the match strategy, the company matches the demand with
supply and supply the products and services in the market according to the exact
demand for products and services.
However, in such a scenario, the lead strategy is not suitable for the Co-op Company as the
high number of stores all around the country for both food products. Although, its funeral
care service also needs to match strategy rather than lead strategy. The increasing competition
in the same industry is also a major cause that Co-op cannot apply the lead strategy of
capacity planning in the country. Although for Pizza and food delivery products, the Co-op
can adopt the lead strategy because it needs raw material for advanced production of pizza
and food items.
Capacity Planning Framework for Co-op
There are several steps in the capacity planning process. These steps can also be followed by
the Co-op organisation in the UK for better business performance:
1. Estimating Total Requirements: The Co-op can estimate and calculate the total
requirements of its products and services. Such as Co-op can predict its consumption
of Pizza product of each month or week and can project the demand for the next
week. However, the same strategies can also be applied to funeral care services.
2. Estimating Labour and Machine requirements: The Co-op can estimate the labour
and machine requirements, which is necessary to fulfil the market demands. The
increasing number of competitors in the cooperative industry is also a major cause to
estimate the demand and increase or decrease the number of machinery or workforce
accordingly (Swart and Kinnie, 2010).
3. Comparison of Availability and Requirements: Co-op should compare the current
resources with the future demands and requirement of machines and labours. It will
help to supply sufficient and efficient products and services in the organisation.
PART-C
Recommendations
Co-op is operating its business in almost all part of the UK and it has more than 4000 stores
all over the country. However, in such situation managing business operational and maintain
efficiency at all level of the business function is a tough job. It has been seen that Co-op is
17
3. Match Strategy: In the match strategy, the company matches the demand with
supply and supply the products and services in the market according to the exact
demand for products and services.
However, in such a scenario, the lead strategy is not suitable for the Co-op Company as the
high number of stores all around the country for both food products. Although, its funeral
care service also needs to match strategy rather than lead strategy. The increasing competition
in the same industry is also a major cause that Co-op cannot apply the lead strategy of
capacity planning in the country. Although for Pizza and food delivery products, the Co-op
can adopt the lead strategy because it needs raw material for advanced production of pizza
and food items.
Capacity Planning Framework for Co-op
There are several steps in the capacity planning process. These steps can also be followed by
the Co-op organisation in the UK for better business performance:
1. Estimating Total Requirements: The Co-op can estimate and calculate the total
requirements of its products and services. Such as Co-op can predict its consumption
of Pizza product of each month or week and can project the demand for the next
week. However, the same strategies can also be applied to funeral care services.
2. Estimating Labour and Machine requirements: The Co-op can estimate the labour
and machine requirements, which is necessary to fulfil the market demands. The
increasing number of competitors in the cooperative industry is also a major cause to
estimate the demand and increase or decrease the number of machinery or workforce
accordingly (Swart and Kinnie, 2010).
3. Comparison of Availability and Requirements: Co-op should compare the current
resources with the future demands and requirement of machines and labours. It will
help to supply sufficient and efficient products and services in the organisation.
PART-C
Recommendations
Co-op is operating its business in almost all part of the UK and it has more than 4000 stores
all over the country. However, in such situation managing business operational and maintain
efficiency at all level of the business function is a tough job. It has been seen that Co-op is
Co-op
18
generally focused on its values and principles rather than profit maximisation objective.
However, it is good for the organisation and it improves the image of the organisation among
people. The role of effective business operation and function is an important part of any
business organisation. However, the role of Co-op is to help its members and support them
with cheap and quality services but it also needs an effective business policy and using
operation management techniques in the organisation. Operations management can be used at
all level of the organisation function including planning, organising, staffing, controlling, and
supervising, because these all functions are necessary for production planning and process.
To improve the business operation and efficiency of the organisation Co-op should follow the
following recommendations:
1. The productivity in the food business is a major concern for the Co-op. To improve
the productivity the organisation should work on the lean process. It has been studied
in the present report that Co-op is not implementing the lean technique in its business
process. However, it uses basic principles of the lean process but it is necessary for
the organisation to use the lean process to improve the wastage and productivity of the
organisation.
2. Capacity utilisation is also a major concern for the organisation and it should be
resolved as soon as possible. To increase the productivity of the organisation, Co-op
should use lead strategy in capacity utilisation. Lead strategy can help the company to
increase its production capacity in advance of predicted or anticipated increase
demands of customers. However, this strategy is suitable for the Co-op as it has
registered members for its services and they know the demand for their services.
3. Co-op is facing a strong problem of liquidity and cash. The concept of this business is
to provide services and products to its members (both people and other co-operative
organisations) at very low cost and in high quality. It also provides various services
that help its member to solve their problem with the help of Co-op organisation.
Therefore, it should work on maximising its profit and increase the profit margins on
its product and services.
4. Inventory management is also an issue for the Co-op. Co-op is mainly dealing with
Food items and deliver the pizza and foods to its customer by delivery boys. Co-op is
also receiving orders online and thus, it is a tough job for the company to maintain a
high level of inventory level. Inventory management is compulsory for managing
stock in the warehouse and in various stores as well. Although Co-op provides
18
generally focused on its values and principles rather than profit maximisation objective.
However, it is good for the organisation and it improves the image of the organisation among
people. The role of effective business operation and function is an important part of any
business organisation. However, the role of Co-op is to help its members and support them
with cheap and quality services but it also needs an effective business policy and using
operation management techniques in the organisation. Operations management can be used at
all level of the organisation function including planning, organising, staffing, controlling, and
supervising, because these all functions are necessary for production planning and process.
To improve the business operation and efficiency of the organisation Co-op should follow the
following recommendations:
1. The productivity in the food business is a major concern for the Co-op. To improve
the productivity the organisation should work on the lean process. It has been studied
in the present report that Co-op is not implementing the lean technique in its business
process. However, it uses basic principles of the lean process but it is necessary for
the organisation to use the lean process to improve the wastage and productivity of the
organisation.
2. Capacity utilisation is also a major concern for the organisation and it should be
resolved as soon as possible. To increase the productivity of the organisation, Co-op
should use lead strategy in capacity utilisation. Lead strategy can help the company to
increase its production capacity in advance of predicted or anticipated increase
demands of customers. However, this strategy is suitable for the Co-op as it has
registered members for its services and they know the demand for their services.
3. Co-op is facing a strong problem of liquidity and cash. The concept of this business is
to provide services and products to its members (both people and other co-operative
organisations) at very low cost and in high quality. It also provides various services
that help its member to solve their problem with the help of Co-op organisation.
Therefore, it should work on maximising its profit and increase the profit margins on
its product and services.
4. Inventory management is also an issue for the Co-op. Co-op is mainly dealing with
Food items and deliver the pizza and foods to its customer by delivery boys. Co-op is
also receiving orders online and thus, it is a tough job for the company to maintain a
high level of inventory level. Inventory management is compulsory for managing
stock in the warehouse and in various stores as well. Although Co-op provides
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Co-op
19
facilities to its stores to protect the perishable food items wastage is still a major
concern for the Co-op.
5. Increasing completion in the funeral care services is also a major concern for the Co-
op. The number of services in funeral care is decreasing every year for the Co-op. It is
a major concern for the Company. To resolve this issue, the company should provide
additional services. However, to face the competition in funeral care services the
organisation should minimise the cost of service which helps in making new
customers in this segment of the business.
Conclusion
Cooperative organisations are known for the self-help approach. The Co-op Food
organisation is also working on the same concept of managing and helping people and
connecting them with the organisation by providing membership. All members are equal in
the organisation and all meme have equal right of voting system. However, the major
problem in the Co-op organisation is to manage its business process and inefficiency of the
business operations. Co-op should work in improving its business operation and efficiency
and it is only possible if it works on improving its quality of service and efficiency of work.
To improve the business operation, if Co-op will focus on applying the lean process in the
manufacturing and production of goods then it will be good for the organisation. The major
concern for the organisation is to improve its business process and functions, managing
inventory level of perishable goods, and utilising its full capacity to fulfil the market demand
of customers and its member co-operative organisation. The lack of facilities in the
cooperative stores to preserve and protect perishable items is also a concern that can be
eliminated by using the best technology in the stores.
19
facilities to its stores to protect the perishable food items wastage is still a major
concern for the Co-op.
5. Increasing completion in the funeral care services is also a major concern for the Co-
op. The number of services in funeral care is decreasing every year for the Co-op. It is
a major concern for the Company. To resolve this issue, the company should provide
additional services. However, to face the competition in funeral care services the
organisation should minimise the cost of service which helps in making new
customers in this segment of the business.
Conclusion
Cooperative organisations are known for the self-help approach. The Co-op Food
organisation is also working on the same concept of managing and helping people and
connecting them with the organisation by providing membership. All members are equal in
the organisation and all meme have equal right of voting system. However, the major
problem in the Co-op organisation is to manage its business process and inefficiency of the
business operations. Co-op should work in improving its business operation and efficiency
and it is only possible if it works on improving its quality of service and efficiency of work.
To improve the business operation, if Co-op will focus on applying the lean process in the
manufacturing and production of goods then it will be good for the organisation. The major
concern for the organisation is to improve its business process and functions, managing
inventory level of perishable goods, and utilising its full capacity to fulfil the market demand
of customers and its member co-operative organisation. The lack of facilities in the
cooperative stores to preserve and protect perishable items is also a concern that can be
eliminated by using the best technology in the stores.
Co-op
20
References
Battilani, P. and Zamagni, V. (2012) The managerial transformation of Italian co-operative
enterprises 1946–2010. Business History, 54(6), pp.964-985.
Behrouzi, F. and Wong, K.Y. (2011) Lean performance evaluation of manufacturing systems:
a dynamic and innovative approach. Procedia Computer Science, 3, pp.388-395.
Bhamu, J. and Singh Sangwan, K. (2014) Lean manufacturing: literature review and research
issues. International Journal of Operations & Production Management, 34(7), pp.876-940.
Birchall, J. and Simmons, R. (2010) THE CO‐OPERATIVE REFORM PROCESS IN
TANZANIA AND SRI LANKA. Annals of Public and Cooperative Economics, 81(3),
pp.467-500.
Birchall, J., (2014) The governance of large co-operative businesses. Manchester: Co-
operatives UK. Journal of Management, 14(5), pp. 55-64.
Borda-Rodriguez, A. and Vicari, S. (2014) Rural co-operative resilience: the case of
Malawi. Journal of Co-operative Organization and Management, 2(1), pp.43-52.
Co-op (2018) CO-OPERATIVE GROUP LIMITED MEMBERSHIP REGULATIONS [online].
Available from:
https://assets.ctfassets.net/5ywmq66472jr/6OUF7sJSOkWa6YmWAaKIIK/bf9e5275b973e0a
f0d3f574d618c0b0f/06_-_Membership_Regulations_January_2017.pdf [Accessed:
12/05/2019].
Co-op (2018) CO-OPERATIVE GROUP LIMITED POLICIES AND PROCEDURES
MANUAL FOR SOCIETY GENERAL MEETINGS [online]. Available from:
https://assets.ctfassets.net/5ywmq66472jr/22op7D4i0AUG2W2oUoEAWk/9b9e784d9d3820
bc48d94a0bc3b27125/Policies_and_Procedures_Manual_for_Society_General_Meetings.pdf
[Accessed: 12/05/2019].
Co-op (2018) Here’s our update on our 2018 AGM motions [online]. Available from:
https://assets.ctfassets.net/5ywmq66472jr/2NGUXCYJIuFkBh2Nz8WyLp/92eb13d50756f29
68e1222399dc9ae48/You_Said__We_Did_2019.pdf [Accessed: 12/05/2019].
20
References
Battilani, P. and Zamagni, V. (2012) The managerial transformation of Italian co-operative
enterprises 1946–2010. Business History, 54(6), pp.964-985.
Behrouzi, F. and Wong, K.Y. (2011) Lean performance evaluation of manufacturing systems:
a dynamic and innovative approach. Procedia Computer Science, 3, pp.388-395.
Bhamu, J. and Singh Sangwan, K. (2014) Lean manufacturing: literature review and research
issues. International Journal of Operations & Production Management, 34(7), pp.876-940.
Birchall, J. and Simmons, R. (2010) THE CO‐OPERATIVE REFORM PROCESS IN
TANZANIA AND SRI LANKA. Annals of Public and Cooperative Economics, 81(3),
pp.467-500.
Birchall, J., (2014) The governance of large co-operative businesses. Manchester: Co-
operatives UK. Journal of Management, 14(5), pp. 55-64.
Borda-Rodriguez, A. and Vicari, S. (2014) Rural co-operative resilience: the case of
Malawi. Journal of Co-operative Organization and Management, 2(1), pp.43-52.
Co-op (2018) CO-OPERATIVE GROUP LIMITED MEMBERSHIP REGULATIONS [online].
Available from:
https://assets.ctfassets.net/5ywmq66472jr/6OUF7sJSOkWa6YmWAaKIIK/bf9e5275b973e0a
f0d3f574d618c0b0f/06_-_Membership_Regulations_January_2017.pdf [Accessed:
12/05/2019].
Co-op (2018) CO-OPERATIVE GROUP LIMITED POLICIES AND PROCEDURES
MANUAL FOR SOCIETY GENERAL MEETINGS [online]. Available from:
https://assets.ctfassets.net/5ywmq66472jr/22op7D4i0AUG2W2oUoEAWk/9b9e784d9d3820
bc48d94a0bc3b27125/Policies_and_Procedures_Manual_for_Society_General_Meetings.pdf
[Accessed: 12/05/2019].
Co-op (2018) Here’s our update on our 2018 AGM motions [online]. Available from:
https://assets.ctfassets.net/5ywmq66472jr/2NGUXCYJIuFkBh2Nz8WyLp/92eb13d50756f29
68e1222399dc9ae48/You_Said__We_Did_2019.pdf [Accessed: 12/05/2019].
Co-op
21
Co-op (2018) Rules of Cooperative Group Limited [online]. Available from:
https://assets.ctfassets.net/5ywmq66472jr/33nk9F52wMWKMgEcwQymS8/fb78da3901fc35
4e4540ea798d7f43ea/01_-_Co-op_Group_Rules_-_Final_June_2018.pdf [Accessed:
12/05/2019].
Co-op (2019) About us [online]. Available from:
https://www.co-operative.coop/about-us/what-is-a-coop [Accessed: 12/05/2019].
Cornforth, C. and Spear, R., (2010) The governance of hybrid organizations. Hybrid
Organizations and the Third Sector, pp.70-89.
Dogarawa, A.B. (2010) The role of cooperative societies in economic development.
Dombrowski, U. and Mielke, T. (2013) Lean leadership–fundamental principles and their
application. Procedia CIRP, 7, pp.569-574.
Ghosh, M. (2012) Lean manufacturing performance in Indian manufacturing plants. Journal
of Manufacturing Technology Management, 24(1), pp.113-122.
Goel, S. (2013) Relevance and potential of co-operative values and principles for family
business research and practice. Journal of Co-operative Organization and Management, 1(1),
pp.41-46.
Hammer, M. (2015) What is business process management?. In Handbook on business
process management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Hodge, G.L., Goforth Ross, K., Joines, J.A. and Thoney, K., (2011) Adapting lean
manufacturing principles to the textile industry. Production Planning & Control, 22(3),
pp.237-247.
Jussila, I., Goel, S. and Tuominen, P. (2012) Governance of co-operative organizations: A
social exchange perspective. Business and Management Research, 1(2), pp.14-25.
Lorange, P. (2013) Co-operative strategies: planning and control considerations. Strategies in
global competition, pp.370-389.
Mazzarol, T., Limnios, E.M. and Reboud, S. (2011) December. Co-operative enterprise: a
unique business model. In Paper submitted for the Australia and New Zealand Academy of
Management (ANZAM) Annual Conference, Wellington.
21
Co-op (2018) Rules of Cooperative Group Limited [online]. Available from:
https://assets.ctfassets.net/5ywmq66472jr/33nk9F52wMWKMgEcwQymS8/fb78da3901fc35
4e4540ea798d7f43ea/01_-_Co-op_Group_Rules_-_Final_June_2018.pdf [Accessed:
12/05/2019].
Co-op (2019) About us [online]. Available from:
https://www.co-operative.coop/about-us/what-is-a-coop [Accessed: 12/05/2019].
Cornforth, C. and Spear, R., (2010) The governance of hybrid organizations. Hybrid
Organizations and the Third Sector, pp.70-89.
Dogarawa, A.B. (2010) The role of cooperative societies in economic development.
Dombrowski, U. and Mielke, T. (2013) Lean leadership–fundamental principles and their
application. Procedia CIRP, 7, pp.569-574.
Ghosh, M. (2012) Lean manufacturing performance in Indian manufacturing plants. Journal
of Manufacturing Technology Management, 24(1), pp.113-122.
Goel, S. (2013) Relevance and potential of co-operative values and principles for family
business research and practice. Journal of Co-operative Organization and Management, 1(1),
pp.41-46.
Hammer, M. (2015) What is business process management?. In Handbook on business
process management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Hodge, G.L., Goforth Ross, K., Joines, J.A. and Thoney, K., (2011) Adapting lean
manufacturing principles to the textile industry. Production Planning & Control, 22(3),
pp.237-247.
Jussila, I., Goel, S. and Tuominen, P. (2012) Governance of co-operative organizations: A
social exchange perspective. Business and Management Research, 1(2), pp.14-25.
Lorange, P. (2013) Co-operative strategies: planning and control considerations. Strategies in
global competition, pp.370-389.
Mazzarol, T., Limnios, E.M. and Reboud, S. (2011) December. Co-operative enterprise: a
unique business model. In Paper submitted for the Australia and New Zealand Academy of
Management (ANZAM) Annual Conference, Wellington.
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Co-op
22
Mazzarol, T., Limnios, E.M. and Reboud, S. (2013) Co-operatives as a strategic network of
small firms: Case studies from Australian and French co-operatives. Journal of Co-operative
Organization and Management, 1(1), pp.27-40.
Mazzarol, T., Simmons, R., Mamouni Limnios, E. and Clark, D. (2014) A conceptual
framework for research into co-operative enterprise. Research handbook on sustainable co-
operative enterprise: Case studies of organisational resilience in the co-operative business
model, pp.22-50.
Meade, J.E., (2013) Alternative Systems of Business Organization and of Workers'
Renumeration. Routledge.
Novkovic, S. and Holm, W. (2012) Co-operative networks as a source of organizational
innovation. International Journal of Co-operative Management, 6(1), pp.51-60.
Poppendieck, M. (2011) Principles of lean thinking. IT Management Select, 18(1), pp.1-7.
Puusa, A., Hokkila, K. and Varis, A. (2016) Individuality vs. communality: A new dual role
of co-operatives?. Journal of Co-operative Organization and Management, 4(1), pp.22-30.
Rahman, N.A.A., Sharif, S.M. and Esa, M.M. (2013) Lean manufacturing case study with
Kanban system implementation. Procedia Economics and Finance, 7, pp.174-180.
Röglinger, M., Pöppelbuß, J. and Becker, J. (2012) Maturity models in business process
management. Business process management journal, 18(2), pp.328-346.
Singh, P.K. (2012) Management of Business Processes Can Help an Organization Achieve
Competitive Advantage. International Management Review, 8(2).
Sonnino, R. and Griggs-Trevarthen, C. (2013) A resilient social economy? Insights from the
community food sector in the UK. Entrepreneurship & Regional Development, 25(3-4),
pp.272-292.
Staats, B.R., Brunner, D.J. and Upton, D.M. (2011) Lean principles, learning, and knowledge
work: Evidence from a software services provider. Journal of operations management, 29(5),
pp.376-390.
Swart, J. and Kinnie, N. (2010) Organisational learning, knowledge assets and HR practices
in professional service firms. Human Resource Management Journal, 20(1), pp.64-79.
22
Mazzarol, T., Limnios, E.M. and Reboud, S. (2013) Co-operatives as a strategic network of
small firms: Case studies from Australian and French co-operatives. Journal of Co-operative
Organization and Management, 1(1), pp.27-40.
Mazzarol, T., Simmons, R., Mamouni Limnios, E. and Clark, D. (2014) A conceptual
framework for research into co-operative enterprise. Research handbook on sustainable co-
operative enterprise: Case studies of organisational resilience in the co-operative business
model, pp.22-50.
Meade, J.E., (2013) Alternative Systems of Business Organization and of Workers'
Renumeration. Routledge.
Novkovic, S. and Holm, W. (2012) Co-operative networks as a source of organizational
innovation. International Journal of Co-operative Management, 6(1), pp.51-60.
Poppendieck, M. (2011) Principles of lean thinking. IT Management Select, 18(1), pp.1-7.
Puusa, A., Hokkila, K. and Varis, A. (2016) Individuality vs. communality: A new dual role
of co-operatives?. Journal of Co-operative Organization and Management, 4(1), pp.22-30.
Rahman, N.A.A., Sharif, S.M. and Esa, M.M. (2013) Lean manufacturing case study with
Kanban system implementation. Procedia Economics and Finance, 7, pp.174-180.
Röglinger, M., Pöppelbuß, J. and Becker, J. (2012) Maturity models in business process
management. Business process management journal, 18(2), pp.328-346.
Singh, P.K. (2012) Management of Business Processes Can Help an Organization Achieve
Competitive Advantage. International Management Review, 8(2).
Sonnino, R. and Griggs-Trevarthen, C. (2013) A resilient social economy? Insights from the
community food sector in the UK. Entrepreneurship & Regional Development, 25(3-4),
pp.272-292.
Staats, B.R., Brunner, D.J. and Upton, D.M. (2011) Lean principles, learning, and knowledge
work: Evidence from a software services provider. Journal of operations management, 29(5),
pp.376-390.
Swart, J. and Kinnie, N. (2010) Organisational learning, knowledge assets and HR practices
in professional service firms. Human Resource Management Journal, 20(1), pp.64-79.
Co-op
23
Teich, S.T. and Faddoul, F.F., (2013) Lean management—the journey from Toyota to
healthcare. Rambam Maimonides Medical Journal, 4(2).
Tomlinson, P.R. (2010) Co-operative ties and innovation: Some new evidence for UK
manufacturing. Research Policy, 39(6), pp. 762-775.
Trkman, P. (2010) The critical success factors of business process management. International
journal of information management, 30(2), pp.125-134.
Viljoen, A. and Wiskerke, J.S. (2012) Sustainable food planning: evolving theory and
practice [online]. Available from:
http://eprints.brighton.ac.uk/10252/1/foodplanning_chapter31.pdf [Accessed: 11/05/2019].
Weske, M., (2012) Business process management architectures. In Business Process
Management (pp. 333-371). Springer, Berlin, Heidelberg.
23
Teich, S.T. and Faddoul, F.F., (2013) Lean management—the journey from Toyota to
healthcare. Rambam Maimonides Medical Journal, 4(2).
Tomlinson, P.R. (2010) Co-operative ties and innovation: Some new evidence for UK
manufacturing. Research Policy, 39(6), pp. 762-775.
Trkman, P. (2010) The critical success factors of business process management. International
journal of information management, 30(2), pp.125-134.
Viljoen, A. and Wiskerke, J.S. (2012) Sustainable food planning: evolving theory and
practice [online]. Available from:
http://eprints.brighton.ac.uk/10252/1/foodplanning_chapter31.pdf [Accessed: 11/05/2019].
Weske, M., (2012) Business process management architectures. In Business Process
Management (pp. 333-371). Springer, Berlin, Heidelberg.
1 out of 24
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