Management and Operations: Leaders, Managers, and Operations

This report explores the critical roles of leaders and managers within operations management, emphasizing the design and control of production processes to enhance efficiency and achieve business objectives. It delves into various approaches, including Just-in-Time (JIT), Total Quality Management (TQM), Lean Production, Kaizen, and Six Sigma, detailing their methodologies, benefits, and limitations. The report analyzes the transformation processes inherent in operations management and examines performance at both system and operating condition levels. Furthermore, it highlights the distinct responsibilities of managers and leaders, such as daily operations, goal setting, delegation, and motivation. The report also provides a case study of Tesco, illustrating how lean thinking principles and effective operations management contribute to customer satisfaction, quality, and supply chain efficiency, ultimately driving business success. The assignment concludes by emphasizing the importance of operations management in aligning resources, meeting market demands, and achieving overall business goals.

Additional Handout: : Management and Operations
LO3: Demonstrate an appreciation of the role leaders and managers
play in the operations function of an organisation
Key approaches to operations managements and the roles that
leaders and managers play
“Operations management is an area of management concerned with
designing and controlling the process of production and redesigning
business operations in the production of goods or services.”
According to Are et al. (2017), in this section, the different methods
retained in operations management that constitute the leaders for the
managers with the inability to include the operations management that
managers play a greater role in increasing efficiency have been addressed.
Designing and managing the process methodology of the results for
redesigning company processes and maintaining the successful return
undertaken the products and services involved in the manufacturing
process for directing the effort and achieving the power and results by
ensuring that is operations management.
Approaches Explanation
Just in time Appropriate resources must be available for the production of goods
and services in order to manage and organize the production
process. It can also be argued that it ensures inventory management
is required (Imran, et., al., 2018). This method is used to ensure that
the raw material order is in sync with the production schedule. This
aids the organization in meeting manufacturing costs, reducing
resource waste, and so on. It also entails that good cooperation is
established between the production manager and the raw material
supplier.
TQM Total quality management (TQM) is the process of detecting and
reducing or eliminating manufacturing errors, streamlining supply
chain management, improving customer experience, and ensuring

that employees are properly trained. Total quality management aims
to hold all parties involved in the manufacturing process accountable
for the final product's or service's overall quality.
Lean Production Lean production is a management approach that focuses on
reducing waste while maintaining quality. This method can be used
in all aspects of a company, from design to production and
distribution.
Lean manufacturing aims to reduce costs by increasing efficiency
and responsiveness to market demands.
This method aims to eliminate or reduce activities that do not add
value to the manufacturing process, such as stock holding, product
repair, and unnecessary movement of people and goods around the
company.
Kaizen Kaizen is defined as a continuous effort by each and every employee
(from the CEO to field staff) to ensure improvement of all processes
and systems of a particular organization.
Kaizen is a broad concept that encompasses a variety of ideas. It
entails creating a team atmosphere, improving daily procedures,
ensuring employee engagement, and making a job more fulfilling,
less tiring, and safer.
The transformation processes;
Operations management is a transformation process. The components of
an operations system are:
• transformed resources (e.g., materials that are transformed into
something else);
• transforming resources (e.g., staff and equipment that does the
transforming);
• outputs (the new products and services that are sold to customers).

The above is the normal transformational process however using the
different operation approaches will change this process:
1. The art of an Italian research program on the applicability of the just-
in-time (JIT) approach.. There are two levels of performance: First,
various performances at the system level (critical manufacturing
tasks), where the dimensions and measurements of productivity,
service, quality, and flexibility are defined; o Second, “operating
conditions,” which are variables describing the characteristics of
single production factors and their interconnection (such as
efficiencies, capability, process flexibility and lead times). The set of
JIT techniques in the areas of product, process, organization,
planning and control, and supply are classified, and the ways in which
the techniques affect operating conditions and, through them,
production system performance are examined. The changes in
traditional trade-offs within overall performance are explained by a
paradigm of JIT approach.
2. TQM: Assessing the current reality of the organization is a first step in
TQM implementation. Preconditions that are relevant include the
organization's history, current needs, precipitating events that lead to
TQM, and current employee quality of life. TQM implementation

should be postponed until the organization is in a state where TQM is
likely to succeed, if the current reality does not include important
preconditions. TQM will be easier to implement if an organization has
a track record of effective environmental responsiveness and the
ability to successfully change how it operates when needed.
Employee scepticism and a scarcity of skilled change agents will
result if an organization has a history of being reactive and lacking in
the ability to improve its operating systems. If this situation persists, a
comprehensive management and leadership development program
may be implemented.
3. Lean production: A lean approach can cut costs dramatically, typically
by 15 to 30 percent, by improving a "operating system"—the
configuration of assets, material resources, and staff. However, as
Toyota Motor, the pioneer of these techniques in the 1950s and the
only consistently profitable volume car manufacturer, has
demonstrated, cost savings are only part of lean's appeal. Lean aims
to constantly improve costs, quality, and customer service. It
accomplishes this by motivating and equipping employees to focus
on creating and delivering value in the eyes of customers, while
eliminating anything that does not help them achieve this goal. Unlike
popular belief, lean is about getting a process or operation "fighting
fit," not about slashing it to the bone.
4. Kaizen: Because Kaizen is more of a philosophy than a tool, it can be
found in a variety of process improvement techniques, from Total
Quality Management (TQM) to employee suggestion boxes. Every
employee, at every level of the organization, is responsible for
identifying gaps and inefficiencies, and everyone, at every level,
suggests areas for improvement.
Kaizen aims to improve productivity, effectiveness, safety, and waste
reduction, but those who follow the method often discover a lot more:
 There is less waste because inventory is used more efficiently and
employee skills are improved.

 People are happier because they have a direct influence on how
things are done.
 Improved commitment – team members are more invested in their
work and are more motivated to do a good job.
 Improved retention – people who are happy and engaged are
more likely to stay.
 Increased efficiency leads to lower costs and higher-quality
products, which improves competitiveness.
 Consumer satisfaction is higher as a result of higher-quality
products with fewer flaws.
Role of Manager Role of Leader
Daily Operations: The primary role of a
manager is to ensure the daily functioning
of a department or group of employees.
Inspire and Motivate: Good leaders don't
simply issue orders or directives without
explanation. Instead, they employ effective
communication and motivational
techniques to encourage their teams to
take action.
Set Goals: To ensure a company's long-
term viability, a manager lays out both
short and long-term objectives.
Effective Time Management: This an
important part of being a good leader. If
you spend the majority of your time
dealing with complaints and solving
problems, it's a sign that you're not
effectively delegating or empowering your
team.
Delegation: Effective managers have faith
in their employees and delegate tasks
based on the needs of the department.
Communication: is essential for all
organizational leaders—and, in fact, for
any employee at any level of her career.
You must be able to communicate your
thoughts to your co-workers, the general
public, and your bosses.
Six sigma approach:
Six Sigma is a methodology that gives businesses the tools they need to
improve their business processes. This improvement in performance and

reduction in process variation helps to reduce defects and improve profits,
employee morale, and product or service quality.
Six Sigma was originally developed for manufacturing, but it is now used in
a variety of industries. However, just because companies from various
industries have adopted this methodology does not mean they have done
so correctly or effectively. Outside of a manufacturing environment, Six
Sigma frequently fails to produce the kind of results required to justify such
a time-consuming and costly management shift.
The Six Sigma process improvement steps, also known as DMAIC, are
straightforward and as followed:
1. Define the issue: Make a problem statement, a goal statement, a project
charter, a customer requirement, and a process map for your project.
2. Define the issue: Make a problem statement, a goal statement, a project
charter, a customer requirement, and a process map for your project.
3.Define the problem: For your project, create a problem statement, a goal
statement, a project charter, a customer requirement, and a process map.
4. Improve the process: by deciding on issues to be resolved and creating
process maps for those new solutions. Take steps to implement the new
fixes and keep track of your progress.
5. Control: Fine-tune the new process, keep an eye on it, and apply what
you've learned elsewhere in the company if possible.
Limitation of Six Sigma:
One of the difficulties with the assumption approach to identifying a
problem and working toward a solution is that it frequently overlooks a
crucial component: humans—and, more importantly, how humans interact
with and overcome various obstacles. Giving employees the opportunity to
address issues head-on before investing in a complete operational
overhaul is sometimes beneficial.
The Importance And Value Of Operations Management In Achieving
Business Objectives.

Tesco's operations management is based on lean thinking principles. The
advantages of which are enormous. It gives the company an advantage
over its competitors by lowering production costs, allowing it to keep
product prices down by up to 30%. It combines and transforms the various
resources that are used in Tesco's operations. It regulates services in a
controlled manner in accordance with Tesco's policies. The transformation
of inputs into required outputs with a certain level of quality is the
responsibility of operation management.
Lean thinking is important in operations management because it results in
more effective and efficient services and products, as well as affecting
Tesco's profitability. The Tesco makes efficient use of resources to improve
the quality of its services and products, as well as to meet market needs
and demands. It can also be seen that the function of product and service
development aids in the maintenance of service and product quality, speed,
cost, and flexibility. The operation management is responsible for
maintaining better relationships that aid in the proper use of raw materials.
Customer relationship management is a method of providing standard
service to clients in order to meet their demands and needs (Jaques,
2017).
Since Tesco has incorporated lean thinking principles into the operations of
every department of the company, operational management reflects the
same goals as lean thinking. These goals are discussed further below:
Quality: This can be defined as the standards set by customers or the
things that help them meet their needs. Tesco should provide higher-quality
goods and services that are appropriate for their intended use. It also aids
in lowering costs and increasing their dependability in terms of operations
management. For the continuous improvement of the operations
associated with this organization, Tesco can use the total quality
management approach. In relation to Tesco, six sigma approaches are a
method for maintaining quality in the operation.
Speed: This is the amount of time it takes ALDI to deliver their services in
accordance with the needs and desires of their customers. Customers are
more likely to pay for services and products if they are delivered quickly. It
is the responsibility of management to better implement the strategies in
order to achieve their objectives (Hugos, 2018).

Supply chain management: Tesco's organizational goal is to ensure that
services and products are delivered in a timely and efficient manner in
order to meet demand for Tesco's products. For effective supply chain
management, the manager must analyze market trends, determine supply
and demand, and implement an action plan in accordance with that trend.
Customer satisfaction: Tesco's primary goal is to meet the needs of its
customers. If customers are happy with the services and products they
receive, the organization will be able to meet its goals and objectives with
ease. Customers will be satisfied in that case, as long as better-quality
services are provided in accordance with their needs and preferences.
Evaluation on how leaders and managers can improve efficiencies of
operational management to successfully meet business objectives.
First and foremost, managers and leaders must comprehend the supply
chain. They can use various strategies to improve efficiency once they are
familiar with their organization's supply chain. For them, one such tool is
lean thinking. When it comes to tesco, lean production principles were
planned and built into every task or operation the company performs. This
organization's leaders and managers used to develop and implement
operational management strategies in order to increase the company's
revenues. This organization can achieve its business goal of long-term
viability and survival in a competitive environment by implementing
operational management approaches. With the help of Total Quality
Management and the Six Sigma approach, this organization can achieve
continuous improvement.
This has a positive impact on the organization's growth and development.
The continuous improvement approach used by this department's research
and development to improve and innovate the organization's product and
services can be used to achieve innovation in this organization. This aids in
the achievement of the organization's goal of increasing sales (Laureani
and Antony, 2018).
LO4: Demonstrate an understanding of the relationship between
leadership and management in a contemporary business
environment.

Assessing the factors within the business environment that impact
upon operational management and decision-making by leaders and
managers
Tesco's operational management and decision-making are influenced by a
number of factors. These factors have an impact on the organization's
ability to meet its objectives and goals (Hidayat and Akhmad, 2015).
Positive and negative decisions are made by leaders and managers in
response to the changes. The following are the factors that will be
discussed:
Economic Dimension: Tesco is able to keep its prices lower than its
competitors thanks to lean production. All of this occurred as a result of the
company's high efficiency. It lowers the cost of production and reduces the
amount of waste produced. It is the entire state of the Tesco’s financial
position in which the company operates and functions. Interest rates,
inflation, unemployment, and other significant factors are among them.
These factors have a large impact on product demand during times of
inflation, requiring the company to spend a significant amount of money.
Technological dimension: Technology influences Tesco’s growth and
development of products and services, and it is a critical competitive factor.
The socio-cultural dimension: encompasses the values, customs, cultures,
and demographic characteristics of the society in which the company's
Tesco managers are responsible for conducting research into the social-
cultural factors of the area in which the products are sold. Because human
taste differs from place to place and culture to culture, much attention is
paid to the company's sustainability, ethics, culture, and responsibility
(Kuratko, et, al., 2014).
Legal political dimension: It includes the law of business, government, and
business relationships, as well as the country's entire legal and political
nature. Business laws govern what can and cannot be done by in its
operations and other functions.
International dimension: Tesco is affected by both the national and
international dimensions because it operates in multiple locations. The idea
of a global society brought all countries together through a modern

communication network and an innovative transportation system that
connects all parts of the globe (Bryman and Bell, 2015).
Some other external factors of environment that affect the operational
management and decision-making process of the leaders and managers
are:
Competitors: Tesco's policies are directly influenced by market competitors.
For better growth and development, the company makes every effort to
remain competitive in the market. Competitors and competition are a
common occurrence in the supermarket sector, where ALDI operates.
Customers: Every company's primary goal is to meet the needs and
demands of its customers. The customer pays a fee to the company in
exchange for certain products that meet his or her needs. The company's
sales and profits are determined by the number of customers it attracts, as
well as the prices and quality of its products.
Suppliers: They are the ones who provide the goods and services. Dealing
with suppliers is difficult. For a better input of quality products, the
organization must maintain a good relationship with the supplier.
Internal factors which impact decision making and operational
management are:
Directors: They are the governing body of the Tesco who are elected by
shareholders, and they are responsible for overlooking the senior and
general manager of the company.
Culture: Broad impact on the entire organization, affecting visions, habits,
behavior, and values. In the internal environment, culture plays a significant
role.
Owners: They made an investment in the company and have claims and
rights in it. Owners can be a group or a single person who founded the
company or purchased a market share. The company's policies can be
changed at any time by the owners (and Quaddus, 2015).

Tesco's managers and leaders have in-depth knowledge of all factors
because their decisions have an impact on the functions and operations of
the company's future growth and success.
Relationship between management and stakeholders in a
contemporary business environment.
Contemporary business management includes the management of
stakeholder new expectations relating to CSR.
“Corporate social responsibility (CSR) is an organisation’s commitment to
operating in an economically, socially and environmentally responsible
manner, while engaging in dialogue with its stakeholders and recognising
their interests. As discussed earlier, stakeholders can include government,
investors, customers, employees, business partners and local
communities.” CSR is a very important aspect to any company this must be
applied to the culture to the business.
An organization's corporate culture can be defined as the organization's
ethical principles expressed in terms of their ethics. The definition itself
states that the organization must examine and comprehend the
phenomenon of their organization, beginning with corporate values, which
are viewed in annual reports, particularly those given by the CEO. Second,
it establishes the terms and policies that the organization must adhere to in
order to maintain its integrity. It even defines the public practices that the
organization must follow, as customers consider themselves to be a part of
the organization. The organization's culture and ethics are important
aspects of its financial performance, and even that performance can be
improved with the help of some cultural values that serve as motivation for
employees while also increasing productivity (Simon A. Booth & Kristian
Hamer, 2008).
Analysing how different factors affect Tesco’s business environments
and community
The recognized factors of the Tesco’s business's internal and external
environment have a large impact on the company's success and failure. It
is a necessary requirement for the company's functions and operations, as
well as decision-making power. Economic policy, financial position, inflation
rates, and other factors influence managers' decision-making in any given

situation. The company's culture and social value, both internally and
externally, have an impact on its future growth. Customers' demands and
preferences, market competitors, and societal ethical values are all given a
lot of attention (Khan. and Quaddus, 2015).
In 2001, Tesco formed a Corporate Responsibility Committee, which
consisted of cross-functional executives. The board of directors discussed
the company's CSR strategy every year, and the company's performance
was evaluated every quarter. The board and executives were given
quarterly updates on CSR performance, which they used to assess future
risks and opportunities.
Tesco's corporate strategy is based on long-term growth and focuses on
the primary goal of creating value for customers in order to generate
lifetime loyalty. The company is dedicated to conducting business in a
socially responsible and ethical manner. It upholds a code of conduct for its
employees and suppliers in order to protect the environment by employing
commercial strength to put its principles into practice (CSR Best Practice,
2003). Tesco uses CSR in their business dealings to show that they care
about society, and they believe that CSR is neither a burden on the
company nor a distraction from providing services to customers. However,
in 2004, it was rated as one of the worst lawbreakers on environmental and
social issues, and it was heavily criticized by independent companies for its
CSR (Accountability / CSR Network, 2004).
Tesco is one of the largest companies in the United Kingdom, and the
supermarket is the most profitable industry in the country. They are also
expanding their business internationally. According to many studies, Tesco
will impose the risks and costs of its new business process primarily on
farmers, who are considered to be major stakeholders in the organization.
The organization's main goal is to ensure that the working environment and
the working conditions of the employees or workers meet international
labor standards. They have followed some ethics in the organization to
carry out their business process, one of which is ethical trading, which is
having an impact on the employees' and the organization's standards.