Operations and Project Management Report: Sainsbury's and JCB Analysis

This report delves into the realms of operations and project management, encompassing a detailed review and critique of operations management principles, with a specific focus on their implementation within Sainsbury's. The report meticulously examines key concepts such as Six Sigma, Lean Principles, and Total Quality Management, evaluating their effectiveness and impact on various operational aspects. Furthermore, it constructs a continuous improvement plan tailored for Sainsbury's, followed by an analysis of its potential effectiveness. The report then transitions to project management, applying the Project Life Cycle (PLC) to a case study involving JCB, and critically analyzing the effectiveness of the PLC stages. The analysis includes application of appropriate concepts to justify strategies of continuous improvement plan, along with recommendations for enhancing operations. The report concludes with a comprehensive overview of the findings, emphasizing the significance of effective operations and project management within a business context.

OPERATIONS AND
PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Conducting a review and critique of implementation of operations management principles
................................................................................................................................................1
M1. Reviewing and critiquing implementation of operations management in Six Sigma and
Lean Principles.......................................................................................................................3
LO 2.................................................................................................................................................5
P2. Preparation of Continuous Improvement Plan.................................................................5
M2. Analysis of effectiveness of Continuous Improvement Plan..........................................6
D1. Application of appropriate concepts to justify strategies of continuous improvement plan
................................................................................................................................................6
LO 3.................................................................................................................................................6
P3 & M4. Application of each stage of PLC to a given project.............................................6
LO 4...............................................................................................................................................12
P4 & D2. Reviewing and critiquing effectiveness of PLC...................................................12
M4. Critical Analysis of usage of concepts in large and small projects...............................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Operations and Project Management is an appropriate area of study and practice, that is
related towards overall planning, organisation, execution and monitoring of all the operations, as
well as projects of a company (Brewer and Dittman, 2018). It is a highly imperative activity
which ensures that the operations and functions of the firm are very much supportive towards its
projects that have been taking place within the enterprise. Hence, in regards to this, the following
report is divided into two parts, where part one of the report undertakes a detailed review and
critique of effectiveness of operations management principles, along with applications of concept
of continuous improvement in operational context. In relation to part two, it includes application
of Project Life Cycle, along with its critique on a specific project.
LO 1
P1. Conducting a review and critique of implementation of operations management principles
Introduction to Sainsbury’s:
Sainsbury’s is one of the most recognised and prominent organisations within the United
Kingdom which operates within the retail sector. It deals in a range of products and services
within its stores and has several operations like supply chain management, logistics, stocking,
customer service, after sales services and so forth, which requires implementation of operations
management
Operations vs. Operations Management:
There is a considerable difference between operations and operations management that is
necessary to be understood to be familiar with the nature of both these concepts. Hence, some of
the pointers of differentiation are explored below:
BASIS OPERATIONS OPERATIONS
MANAGEMENT
SCOPE
Operations have a narrow
scope, as each operation is
subjected upon a specific area
of the company.
Operations Management has a
wider scope as it includes
appropriate planning,
structuring and execution of
all the operations within the
firm.
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STRUCTURE
Operations have a single level
structure, considering the fact
that each operation is
independent from one another.
A multi level structure is
supported by operations
management as it is
responsible to combine the
operations to achieve common
targets.
Review and Critique of Operations Management Principles:
Operations management includes a range of principles which sets up guidance for
companies to function upon, it is necessary to review and critique these elements so that their
application within the company is well understood. Hence, some of the most prominent
operations management principles in relation to Sainsbury’s are discussed below, which are in
context to logistics and supply chain management, that are two of the most important operations
of the company:
 Variance: This principle of operations management is subjected towards reduction in
cost or enhancement in diversity. If the costs are to be decreased and limited, then
variance must be appropriately measured, or else, it must be implemented more in case of
enhanced diversity. In context of Sainsbury’s, the firm has a very costly supply chain
management due to inappropriate optimisation and minimal control and hence, its
application in the firm is not appropriately witnessed (Rostami, Creemers and Leus,
2018).
 Organisation: This principles works on the notion that in order to ensure consistency in
profits and revenue, each operation must be interconnected and outcomes are required to
be predicted effectively. Within Sainsbury’s, the firm ensures on effective interlink
between each of its operations which contributes towards better customer satisfaction and
hence, higher revenues.
 Reality: Within this principle, the operations management of the organisation must
emphasise on problems rather than tools and techniques, as there are no universal
solution to the issues. Sainsbury’s is known to focus on heavy investments in techniques
to manage supply chain and logistics which only partially solve the overall issue of high
cost within the firm.
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 Change: It is imperative that the organisation focuses on latest theories and concepts and
do not stick with old ones for a long time. The logistics operation of Sainsbury’s is still
very much manually managed, which has caused huge errors for the firm, especially in
stocking, as well as creating safety issues as well..
M1. Reviewing and critiquing implementation of operations management in Six Sigma and Lean
Principles
Apart from the above principles, there are several other methods and techniques upon
which the implementation of operations management is necessary to be reviewed and critiqued.
Hence, these methods are explored as under: Six Sigma:
Six Sigma is an effective technique for achieving improvements in processes adopted by the
organisation (Fettermann and et. al., 2018). The notion upon which it functions is associated with
reducing any scope of error within the company’s functions. Its steps are divided into two parts,
where one part is related to manufacturing new products without defects, termed as DMADV,
the other is associated with ensuring improvement in existing processes of the company, which is
DMAIC and is explained below:
o Define: The very first step in this relation is defining the problem within the
organisation.
o Measure: It is related to measuring the current performance of processes and
operations of the company.
o Analyse: Within this step, a detailed analysis is provided towards the issues within
these operations.
o Improve: Necessary solutions are decided in this step towards dealing with the above
issues.
o Control: Appropriate monitoring and necessary modifications are analysed/
Critical Analysis: Principle of Six Sigma within Sainsbury’s is used in almost each and
every operation adopted by the company, particularly in stocking and managing the product
portfolio. The major advantage which the firm gains from using this technique is that it allows
them to ensure minimal errors in their operations. However, due to its rigid nature, it adds to the
cost because of lack of scope in relation to deviation.
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 Lean Principles:
These principles have a worldwide implementation and within every industry. The whole
technique is directed towards limiting and minimising waste within the operations of the
company. Certain principles related to this method are listed below:
o Value Identification is the first principle which is directed towards identifying what
is valuable for individuals.
o Value Stream Mapping is another principle which ensures spreading of value
throughout the firm.
o Third Principle is Flow Creation that is related to enhancement of efficiency in
operations by waste minimisation.
o The next principle of Lean is Establishment of Pull, which is subjected upon analysis
of customer needs along with modification of operations
o The last principle is Perfection Seeking, where each operation minimises waste and
maximises utility.
Critical Evaluation: The principles of lean are not appropriately implemented within
Sainsbury’s as the company is yet to work upon its waste minimisation. The benefit which the
firm would have gotten with lean principles is related to enhanced sustainability in operations.
However, its application might also leads to decreased quality in terms of saving resources.
 Total Quality Management:
This concept is associated with management of overall quality of operations, along with
offerings of an organisation. The principle upon which this works is continuous improvement. Its
major advantage is related to high end quality within the firm’s functions and products.
However, it could lead to the high cost of maintenance. Within Sainsbury’s, TQM is partially
applied in operations, particularly in its suppliers, which enhances the quality of its offerings.
Extent to which operations management meets the need of Sainsbury’s:
There are several needs within a firm, which are addressed by operations management
(Daniel and Daniel, 2018). They are necessary to be evaluated to measure the effectiveness of
this management on the company. Thus, in regards to Sainsbury’s, this extent is evaluated
below:
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 Cost is one crucial requirement of the company which is to be managed and controlled in
order to enhance scope of improvement. This requirement is not appropriately addressed
by operations management of Sainsbury’s due to ineffective application of Variance.
 Quality is another necessity of the firm, which enhances the scope of customer
engagement and profits. However, operations management of the firm is still ineffective
in this regard due to limited application of TQM and Lean principles.
 For a retail company, Delivery is yet another crucial requirement, which means
managing the overall supply chain. Sainsbury’s quite effective in this regard, due to
effective application of principle of Organisation.
 Safety is also needed to be managed by a company where it could provide safe
alternatives to its employees for operating. However, principle of Change is not adopted
appropriately by Sainsbury’s and hence, this requirement is also not effectively fulfilled.
LO 2
P2. Preparation of Continuous Improvement Plan
Continuous Improvement is a philosophy which deals with a consistent enhancement of
effectiveness within operations and offerings of a company. It is an imperative element which is
directed towards ensuring high quality, low cost and minimal wastage in the operations within
the company (Gemünden, Lehner and Kock, 2018). In regards to the critical analysis of
operations management of Sainsbury’s, its continuous improvement plan is formed below:
BASIS CURRENT METHODS PROPOSED METHODS
COST
Variance is applied within the
company towards decreasing cost;
however, its application is not that
effective.
Six Sigma should be adopted by
Sainsbury’s in order to reduce the
cost, along with errors in
operations.
QUALITY The firm is implementing
principle of reality by
incorporating a range of effective
techniques to improve the quality
of operations.
The organisation must adopt Total
Quality Management which would
be subjected towards sustainability
as well, which will limit the cost
and enhance the quality of
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operations.
SAFETY
Change is the principle which is
currently being applied by the
company for safety, but its
application is very constrained on
this part.
This principle must appropriately
be applied by incorporating more
autonomous techniques to digitally
accomplish tasks and enhance
safety considerations for
employees.
M2. Analysis of effectiveness of Continuous Improvement Plan
It is crucial that the above plan is analysed on effectiveness upon several fronts within the
company that would be contributing towards its performance in relation to its operations. In
context of the above plan, all the methodologies are strategically been put into place which are
directed towards addressing the specific requirements. Hence, the effectiveness of the same is
quite high (Lee, 2018).
D1. Application of appropriate concepts to justify strategies of continuous improvement plan
The strategies mentioned above are inclusive of change, automation and waste
minimisation, which are effective in relation to addressing the requirements of the firm.
Moreover, principle of change, along with TQM and Six Sigma are very effectively placed that
would be supporting these strategies and ensure effectiveness in the supply chain and logistics
functions of Sainsbury’s. However, there are certain recommendations on this regard that are
given below:
 The firm must embed change within the company as a routine activity to ensure high
safety and better quality in operations.
 To enhance its logistics function, Just-In-Time method could also be applied by the firm
to enhance effectiveness of its operations.
LO 3
P3 & M4. Application of each stage of PLC to a given project
Case Study Overview
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JCB is one of the most recognised companies in the United Kingdom which is based in
Midlands and has 1,250 employees, who have diverse roles within the organisation. Currently,
the company is facing a problem of high absenteeism and high movement of staff during lunch
due to absence of onsite catering. Hence, a change management project is being organised which
would be installing a food delivery truck within the campus for individuals to develop their
healthy lifestyle, reduce absenteeism, as well as lack of movement (Kasemsap, 2018).
Description and Application of Project Life Cycle
Project Life Cycle covers all the necessary steps, processes and techniques that are related
towards an appropriate execution of a given project. As for the change management programme
within JCB, this cycle is explored below:
 Project Initiation:
This is the very first phase of this life cycle and is aimed towards giving an authorisation and
initiation to the project. It covers several steps that is associated with analysis of the idea. In
relation to the new project within the JCB, this stage would be undergoing feasibility study,
along with acquiring the authorisation of the senior management in terms of determining the cost
and benefit to the company from this project. In relation to tools, this step sees formation of a
Business Case and Cost Benefit Analysis that is mentioned below:
Business Case:
BASIS EXPLANATION
OBJECTIVES
Through this new project, JCB is planning to:
 Reduce absenteeism by almost 40% in the next 3 months
 Decrease movement of employees by at least 65% in the next 6
months.
IMPORTANCE
This project is very crucial for individuals within the company as
having an in-house catering would help them maintaining their health
status, along with enhancing their motivating and boosting their
performance (Chirumalla, 2018).
STRATEGIES
Diversification is the strategy which would be applied by JCB to attract
more employees towards this project by providing a range of organic
and tasty food items to the individuals working within the company.
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TARGET The main target of this new project are the workers and employees of
JCB, particularly individuals ranging from 25-50 years of age.
Cost Benefit Analysis:
Particulars Situation 1 Situation 2
Costs 100000 120000
Benefit 0 20000
(Break Even Point)
Costs Benefit
0
20000
40000
60000
80000
100000
120000
140000
Chart Title
Column C Column D
Illustration 1: Cost Benefit Analysis
Moreover, apart from these tools, the firm would also be using Project Charter which
would be giving a complete structure to the same. As for leadership, the company implemented
Autocratic Leadership which provides the complete authority to the seniors of the company
(Prasad and et. al., 2019). In regards to the methodology, Six Sigma has been used to develop the
structure of this project.
 Project Planning:
The second stage of this lifecycle commences after the upper management approves the
project. Moreover, this marks the beginning of the overall structure and execution of the whole
project. It covers determination of tasks, roles which individuals would be playing and resource
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planning. As for the current project, below is a Project Plan, which is a tool, related towards
development of a whole plan for the project:
Cost
The overall cost of the project is decided to be around £1, 20,000,
which will be covering the overall set up of campus, equipments and
human resources (Tonchia, Tonchia and Mahagaonkar, 2018).
Communication
The company will be engaging in verbal and non-verbal modes of
communication at all levels, along with internal and external
communication too.
Quality
In relation to enhance quality of the project, tools like Artificial
Intelligence and Automation would be used to monitor the quality
standards of the project.
Scope The scope of this project is very wide, as it covers employees of each
department in an appropriate manner.
In relation to the leadership, JCB is willing to adopt Democratic Leadership within this stage
to allow individuals to decide their own roles and responsibilities to maximise their productivity.
In context of methodology, Lean Manufacturing is being used to plan the activities in terms of
reduction of waste. Apart from these however, there are several time related tools that are
presented below:
Gantt Chart:
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Illustration 2: Gantt Chart
Illustration 3: Gantt Chart
Illustration 4: Network Diagram
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