Operations Management Report: Euro Tunnel's Business Strategies

This report provides a comprehensive analysis of operations management within the context of Euro Tunnel SE, examining its importance in designing and controlling production processes. The report delves into the operational functions of Euro Tunnel, including planning, organizing, coordinating, and controlling, and evaluates the company's operations using process models. It explores the use of linear programming to enhance the production process, analyzes critical path analysis and network planning, and discusses the necessity of operational planning and control. The report also assesses the impact of cost minimization versus quality maximization and identifies five performance objectives of operations management, offering a detailed understanding of the company's strategies and challenges. The report concludes by highlighting the importance of operations management in improving efficiency and profitability.

OPERATIONS
MANAGEMENT IN
BUSINESS

INTRODUCTION
Operation management is the area of administration which is concerned with designing
and controlling process of the production. Other than this, it is also associated with redesigning
of business operations for producing goods and services (Bakliwal, 2011). Present report is based
on the given scenario of Group Euro Tunnel SE which manages and operates the channel tunnel
between Britain and France that includes the vehicle shuttle services and also earn revenue of on
the other trains. Report explains the importance of operations management for Euro tunnel along
with a detailed analysis of its operations . Evaluation of three E's i.e. economy, efficiency and
effectiveness is also explained in the report. Apart from that, impact of tension between cost
minimization and quality maximization is identified as well as five performance objectives of
operations management are explained. In addition to this, critical path has been analysed in the
report along with the network plan of the operational activities.
TASK 1
1.1) Importance of operations management for Euro Tunnel
Operation management is an important function of company. It helps the firm to plan, co-
ordinate and in controlling of business resources that are essential for the production of products
and services for the business of Euro Tunnel. Other than this, it is having the responsibility of
solving issues regarding tactical matters and strategic problems (Allen, Todd and Alting, 2012).
All of these responsibilities are helpful in solving the problems at operational level. Apart from
this, it is also having an aim of maintaining the effectiveness and efficiency of organization
through transforming labor and materials into goods and services of Euro Tunnel which help
them to get better profit margin.
Importance of operations management: As operations management is responsible for
designing and controlling the process of production and redesigning business operations in the
production of goods and services, it will help Euro Tunnel to get more profits from the tunnel
(Fitsimmons, 2012). Other than this, it will also help company to perform their business
functions effectively so that they will be able to attain benefits from the tunnels. Apart from that,
operations management is known as the key to assure production of high quality of goods. The
ideas used in the operations management will help to reduce the cost of company so that Euro

Tunnel will be able to attain profits. Other than this, it will also help to improve the flexibility of
responding with changing needs of customers (Khanna, 2015).
Importance of operations management on Euro Tunnel: According to the case
scenario, passengers are facing the problem of waiting on Tunnel. For this, operation
management will help Euro Tunnel to make the management of Tunnel improved so that
passengers would not face the problem of waiting. Apart from that, it will also help Euro Tunnel
to gain more profits (Kloppenborg, 2011). Other than this, it will also help to behave in
accordance with the changing needs of customers.
1.2) Operations functions of Euro Tunnel

Different operation functions are there which are performed by Euro Tunnel such as
functions related to production, designing and development of services provided by company.
(Lowson, 2014) According to the scenario, certain functions of Euro Tunnel are explained as
below:

 Planning: This function of Euro Tunnel means looking ahead for the future. Through
this, tunnel will be able to make planning for the growth of Tunnel in future. Euro Tunnel
is doing planning at different levels within organization (McCrie, 2015). The process of
planning includes organization's accessible resources and flexibility of its personnel into
deliberation as this will guarantee continuity. Organizing: It is one of the major operation functions of Euro Tunnel as they have to
organize all the functions of company which are related to operate their business. In
addition to this, Euro Tunnel also manages the need of capital, staff and raw materials
which help the firm to run their business smoothly and also, it will help to build a good
working structure (Roth and et.al., 2016). Through this, they will be able to manage their
work effectively. Other than this, Euro Tunnel also performs the responsibility of
reducing the environmental issues. Coordinating: It is also the function of Euro Tunnel to co-ordinate the function at
operational level. Coordination has an aim of stimulating motivation and discipline
within group dynamics (Schneider, 2013). This will help to make discipline among
employees. Through making co-ordination, Euro Tunnel will be able to get the work
done easily from employees.
 Controlling: Controlling is also an operational function of Euro Tunnel. It will be helpful
in controlling the business activities of employees. Mainly four steps are there which are
responsible for controlling the activities of employees (Simpson and et.al., 2015). The
steps are described as follows:Establish performance standards based on organizational
objectives, measure and report on actual performance,compare results with performance
and standards, take corrective or preventive measures as needed. Euro Tunnel makes
performance standards for people which are based on the organizational objectives.
Through this, company helps in dealing with the supply chain management through
which they will be able to manage the supply of raw material (Slack, 2015).
1.3) Use of process models for evaluating the operational management of Euro Tunnel
Process of transformation is related with involving the systematic direction and control of
through which it transforms into finished god and services for the customer or the clients of Euro

Tunnel. It is an activity that takes one or more inputs and then gets transformed and adds value to
them which provides output for customers or clients (Slack, Chambers and Johnston, 2010).
Customers and materials are the transformed resources while employees and customers are the
transforming resources.
Inputs to the process:
Transformed resources: These resources are treated, transformed and converted in the
process. Major factors that are included in the transformed resources are Material, Information
and Customers (Vaidya and et.al., 2013).
Transforming resources: Transforming resources are those which work upon the
transformed resources. In these resources, staff members of company and facilities are included
through which Euro Tunnel is able to complete the demand of customers.
Within process:
Materials processing: It is related with the physical properties, location and possession
of materials which are used in the production process (Yawar and Seuring, 2015).
Information processing: It deals with the information that is involved in the
transformation of information properties, possession and location where information is stored.
Customers Processing: This processing transforms physical properties, physiological
state and psychological state of customers (Allen, Todd and Alting, 2012).
Output from the process:
 It can be differentiated among products and services which are based on the
organizational process of Euro Tunnel.
 Most of the operations are involved in management of product and services.
From the above shown process, Euro Tunnel is using ‘input of the process’ method in
which transformed and transforming resources are identified that will help to make the process
smooth and effective (Bakliwal, 2011).
Understanding of volume, variety, variation, visibility, business process modeling, lean
management techniques and integration of supply chain in Euro Tunnel:

The volume: Volume of the Euro Tunnel explains classification of work where the
standard processes are set in the operations manually (Fitsimmons, 2012). Other than this,
consequence of these structuring results in lowering unit cost which has spread over a large
number of products.
The variety: It deals with the necessitates in flexible services which are offered to the
customers. According to this, organization has to develop well established and good contacts
with the skilled staff so that they will be able to adapt the organizational changes quickly.
The variation: Variation is related with reflecting how demand and seasonal patterns
make impact on the profits of the Euro Tunnel. It identifies staff that can get over strained at the
time of peak season and the low season will lead to increase in opportunity cost of company
(Khanna, 2015).
The visibility: It will make focus on how visible are company's functions to the
customers. Different types of firms use technology through which they can achieve greater
volume of profit.
Lean management: It is the method of running a company with having the idea of
continuous progression, a longstanding approach which is systematically seeking to get small,
incremental changes in processes to improve on efficiency and also, quality of services
(Kloppenborg, 2011). Through this the company will be able to deal with getting the
organizational objectives more effectively.

Illustration 1: Lean management
(Source: Lean management, 2013)
§
TASK 2
Task 2 is covered in PPT
TASK 3
3.1) How linear programming add value to the production process of the above scenario of Euro
Tunnel
Linear Programming is simulation which is looking for the best possible solution in the
allocating the limited resources of the organization such as machines, energy, materials, money,
personnel, space and time. This will help the to get more profit in the market and also it will
help to reduce the cost of the company (Lowson, 2014.). It is only applicable when all
relationships are linear as independent variables will produces a change in the dependent
variables of the company. This will also help the company to get solution of the various
problems such as finding the effective decisions for the growth of the company. The model can
be defined into the following five step process such as:
 Locating the decision on the variables

 Outlining the decision variables
 Objective function classification
 Design of these constraints
 Accumulation of the non-negative constraints
Linear programming will be helpful in proving targets to the management plans so that the
company can make maximum contribution in the the profits (McCrie, 2015). Linear
programming can be used in the other parts of the business for making it more profitable. Other
than this, the company can also use linear programming for maximizing its profits. Apart from
the business the linear programming lab can also be applied on the customer and the products
which are purchased and when they are purchased (Linear Programming: Introduction, 2012).
This will be done to provide a better indication of the sufficient quantities that need to be made
of each. Apart from this, it can also be done to help in eliminating waste, reducing costs of this
and increasing profits for Euro Tunnel. Other than all this, it will be helpful in making the
business operations more easily through which they can get more profits in the market.
3.2) Evaluate critical path analysis and network planning briefly
Critical path analysis is techniques used to manage project in less time in an effectual
manner. For example Pret a Manger seeks is wiling to launch its coffee in the market. It is the
step taken to diversify the overall risk so that corporation can ensure its long run survival in the
marketplace. Through use of critical path analysis Pret a Manger can complete the project in
minimum time with use of longest path. The main purpose of using longest path is to cover all
important project activities to save the overall time of the company (Schneider, 2013). On the
other hand, network planning is the initial process which consists of list of activities to be
covered into project of Pret a Manger. It consists of detail related to time and cost taken for each
activity along preceding relationship. Network plan is shown with the help of table and diagram
which provides deep understanding related to working of expansion project. Network diagram
supports project manager to allocate task and resources among team members. This aspect of
completing project aid team members so as to finish all project activities in given time span.

3.3) How operational planning and control is necessary in the above case
The goals and objectives of the Euro Tunnel is somewhere connected with the tactical
objectiveness of the company. Operational planning refers to the resolution where key success
points are used to evaluate the performance of the company. Through making the operating
budget the plan is created on this (Simpson and et.al., 2015). Other than this, questions are made
on this about the current state of the company’s, future goals of the company and the plan to get
the goals of the organization. Other than this, the progress of the company is also measured that
will help to make planning accordingly. Operational planning will also help Euro Tunnel to get
their goals easily.
Apart from this, operational control is related to take appropriate actions through which
the organization can make profits. As it deals with discipline, termination or governance, training
or motivation to the employees so that they will work for getting more benefits. Four major
activities are there which are included in the planning and control such as scheduling, loading,
monitoring and sequencing. Planning will help to make future planing for getting the goals of the
Euro Tunnel. Other than this Routing help to determine the quality and type of material.
Scheduling will be helpful in deciding the working criteria for the company. This will also help
to manage the schedule for production of the services (Slack, 2015). Apart from this
Dispatching will be useful in solving the issue of production orders for starting the operations of
Euro Tunnel.
TASK 4
4.1) A set of clearly defined operational outcomes of Euro Tunnel
Outcomes is related with the achievement of the specific goal with the constraints of
time, objectives and cost. It will states that the organization is having the capability to make
achievement of the objectives on time (Slack, Chambers and Johnston, 2010). The major
operational outcomes of Euro Tunnel is to make regular income. For achieving this, Euro Tunnel
a must check the amount of profit they are always making consequently and other than this, they
should also do the execution of the structured service which are delivered to the customers.

Other than this, securing the income and the value of the company will rest on the
demand of the company. To fulfill the management constraint Euro Tunnels should take care
about the five performance objectives which are described as follows:
The quality: Euro Tunnel should make consistent and accurate use of the goods and
services to produce the better quality of the services. Other than this, they should work on
developing good services for the growth of the company (Trkman and et.al., 2015).
Efficiency: Euro Tunnel must be able to reduce the waste of time at the minimum level
and identify secondary option to substitute the services which are expensive with the aspects of
increased productivity from their employees.
Responsiveness: Euro Tunnel should find solutions for increasing the employee’s
response to customer queries by providing them training (Vaidya and et.al., 2013).
Dependability: Euro Tunnel must work on concentrating on dependability through
which will not fall under a planned level. This will help them to make proper planning and the
improvement of a more operative contingency plan.
Flexibility: Euro Tunnel should create a flexible planing so it can give a certain degree of
flexibility
4.2) Network plan of the activities of the operations and indicate the resultant
critical path
The network plan for the project has been analyzed as below which help to show that the
network plan for Pret a Manger which is going tom launch their coffee in market. This will help
to show in how much time it will get completed (Yawar and Seuring, 2015).