Coles Supermarket Operational Plan: Improving Manufacturing Efficiency

This report provides a detailed analysis of Coles Supermarket's operational plan, focusing on its manufacturing operations, quality management, and risk management strategies. It identifies the company's background, main operations, and applies operational models such as the Target Operating Model (TOM) and Total Quality Management (TQM) to enhance efficiency and effectiveness. The report critically reviews the manufacturing processes, emphasizing the importance of stock management, waste reduction, and adapting to market demands. Furthermore, it develops an operational plan that includes human resource allocation, annual budgeting, cash management, setting timelines, and establishing performance indicators to ensure continuous improvement and competitive advantage in the market. The analysis concludes that effective operational management is crucial for Coles Supermarket to reduce costs, increase production capacity, and ultimately improve profitability.

Operational plan

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identification of the company which will be analysed in this study and company.....................3
Background.................................................................................................................................3
Main operations at Coles Supermarket.......................................................................................3
Applying operation models for a particular operation................................................................4
Critical review of the Manufacturing operations........................................................................5
Developing an operational plan..................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Operation management is one of the most important aspect of the company. Operations
department of the company is directly related to the processes and manufacturing department of
the company. It is important for the company to make sure that their processes are effective and
efficient as in that case the company will be able to reduce the cost of their products and will also
enhance the profitability of the company. Operations management is an administration practise
done by the management of the company in order to achieve highest level of efficiency in the
organisation (Sadrani and et. al., 2021). In context to Coles Supermarkets, it is an Australian
supermarket consumer services and retail chain. The company was established in the year 1914
by George Coles. The company is presently headquartered in Hawthorn East, Victoria, Australia.
In this report, a detailed overview of the company is provided. Along with that main operations
of the organisation and the models of particular operations are provided. The report also covers,
the manufacturing operation's critical evaluation along with an operational plan.
MAIN BODY
Identification of the company which will be analysed in this study and company
Background
Coles supermarket is a retailer and consumer service chain which is providing services
and products to the people of Australia. The company is present in 807 locations throughout
Australia. The company owns approximately 27% market share of Australia and is employing
more than 100000 employees. The company was founded by George Coles in the year 1914 and
the original slogan of the company was "nothing over 2/6". The company is a Public limited
company and is having a revenue of approximately $38 billion. The company is having more
than 8 company owned brands which helps the company in attracting customers.
Main operations at Coles Supermarket
There are several operations or processes in the company which help the company in delivering
goods and services on time and according to the demand in the market.
Manufacturing operations: It refers to the process of the company which helps the
company in making their products. It refers to the department which utilizes the raw material and
convert it into finished goods which then helps the company in serving those products to the
customers (Pembarti and Prabhu., 2020). In this department, the first step is to collect best raw

material from suppliers which can help the company in making best products. The aim of the
department is to reduce the cost of the products and to reduce the wastage occurring in the
processes of manufacturing. Traditionally the workings of the manufacturing department was
done by employees of the company whereas in modern times, machines have taken place which
helped the company in increasing their productivity as well as their efficiency.
Quality management operations: it is one of the most important department of the
company as it keeps a close check on the quality of the products that the company is providing to
its customers. It is important for the company to make sure that they are providing best in class
products as well as services to their customers which will help them in creating a loyal customer
base of the company. As the company is dealing in food products it is important for the company
to provide fresh material to its customers. The food products are highly perishable and requires
utmost care which is the reason why quality check is most important as the health of customer
can get affected.
Risk management operations: Risk management department of the organisation helps
the company in analysing all the risk that are related to the workings of the company. It is
important for the company to analyse risk proactively in order to make correct decisions
accordingly (Mesquita and et. al., 2021). An appropriate risk management plan will help the
company in providing safety solutions and will also help the company in dealing with
contingencies and uncertainties. In case of Coles supermarket, the company is manufacturing
household products, organic products, cleaning products, etc and its is important for the company
to make sure that during these manufacturing processes the employees of the company are safe
and secure.
Applying operation models for a particular operation
The manufacturing operations of the company are needed to analyse these operation models
which will help them in becoming more effective and efficient.
TOM (Target operating model): according to this model, the company tries to analyse
the needs and preferences of the customers in the market (Suárez-Barraza and et. al., 2021). The
markets of the company are highly dynamic and it is important for the company to make
continuous changes in their products and services so that they can become according to the
changed taste of the customers. In this method the company also take feedbacks from the

customers so that they can make effective changes in their products and services. The old and
obsolete business strategies are then deleted from the business process of the company.
TQM model: according to this model, the company analyses the quality of their raw
material and finished goods. This model is needed to be considered in the manufacturing process
as if the company fails to implement this model they will not be able to analyse the quality of the
material they are using and are providing to their customers (Dardir and et. al., 2020). In case of
Colen Supermarkets, the company cannot take risk of providing bad quality material to their
customers as it can have a bad impact on the hard earned reputation of the company. It is
essential for the company to make a quality check before raw material enters the process and
before final product reaches to the customers.
Process model: At the end, the model helps the company in making their processes
utmost efficient and effective. The model make sure that the processes of the company are
effective and the tasks of the company are completed within the minimum time possible
(Castelletti and et. al., 2020). The targets are set by the company and the model helps them in
creating their processes highly efficient which can complete the given task in the minimum time
possible.
Critical review of the Manufacturing operations
The manufacturing processes of the company helps them in capturing the market share as they
help the company in creating good and services which are required by the customers of the
company. The company can analyse the needs and demands of the customers and the production
department makes it possible for the company to create such products (Obligis and et. al., 2021,
April). It is important for the company to work according to the demands and trends of the
market as in that case only they will be able to survive in the market. It is important for the
organisation to analyse the demands correctly and to make effective changes in their products
and services so that it can be suited to the needs of the customers.
The stock management capacity of the company is needed to be developed as in that case only
the comp[any will be able to work effectively and efficiently and according to the capacity which
can fulfil the needs and demands of the customers. The inventory of the company is needed to be
managed efficiently as in that case only the company will be able to have profits from their
processes. It is essential for the company to make sure that they are managing their inventory

appropriately as they are dealing in perishable goods which requires utmost care otherwise they
will be of no use.
In manufacturing process it is important for the companies to make sure that they are having a
strong waste management system and processes which are making minimum wastage possible.,
it will help the company in making sure that the production cost is low and the company is
having more profit margin then its competitors. It is important for the company to make sure that
no unnecessary wastage is taking place in the process and if there is any unnecessary waste then
it is rectified appropriately (Inoue and et. al., 2020). It will help the company in having increased
profitability and in creating a highly effective and efficient process of manufacturing which can
provide them competitors advantage in the market. Having an effective process will help the
company in increasing capacity as well which can help the company in increasing their sales and
in capturing the big market share.
Developing an operational plan
Allocation of Human resources: it refers to the investment which is needed to be made
by the company on its human resource or the employees of the company. In context to Coles
Supermarket, the human resource of the company includes machine operators, supervisors,
quality controllers, etc.
Strategy Person responsible
Quality check of raw material and finished goods Quality control
department
Effective use of machinery Machine operator
Timely completion of orders Supervisor.
Annual budget for manufacturing operation: it refers to the allocation of funds to the
manufacturing department of the company. It is important for the company to prepare a budget
first and then analyse the cost of production according to which the cost can be allocated.

Particulars Amount
Purchase of raw materials $250
Purchase of manufacturing technologies $550
Rent for manufacturing assets $360
Salary to manufacturing staffs $135
Cost regarding waste management $45
Total annual budget $1340
Cash management plan: It refers to the plan which helps the company in analysing the
matter which are directly related to the allocation of money or investment by the company.
Options Management plan
Cost identification Analysing cost per unit of the product
Cash outflow management Purchasing raw materials which is relevant for the company.
Analysing cash inflows Identification of additional income of the company.
Avoiding loss To avoid irrelevant or unnecessary investments.
Setting timelines: it refers to providing particular time period to the tasks of the
company so that it can be easier for the company to complete their task and have a proper time
management (Gizzawi., 2021). The effective time which can help the company in completing
their task are given below:
strategy Timelines
Analysing demands of customers regarding
food products
2 months
Capturing the trends and implementing 2 months

strategic change in manufacturing process
Introducing effective technologies 4 months
Developing high quality products for the customers. 12 months
Checking the quality and possible reactions that the products can do 5 months
Set performance indicators: it is important for the company to analyse the performance of the
employees as well as management of the company (Fan, Liu and Zhang., 2020, December). The
respective measuring units of performance indicators are given below:
Strategy Respective measurement using
performance indicators
Understanding needs of customers Target analysis
Understanding quality of equipment Overall Equipment Effectiveness (OEE)
Machine capability analysis Machine Downtime
Product unit analysis First Pass Yield
Overtime identification Working hours analysis
CONCLUSION
From the above report it is concluded that, manufacturing department is considered to be
one of the most important department in an organisation. It will help the company in completing
their task in the given set period of time. In this report, different operational models are given
which can help the company in becoming much more effective and efficient. It is important for
the company to make sure that they are working effectively and efficiently as only in that case
they will be able to succeed in the market. The manufacturing processes of the company can help
the company in decreasing the cost of products or can increase the capacity of production of an
organisation. Both the cases are highly beneficial for the company as it will help the company in
increasing their sales as well as profitability.

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