Operational and Project Management Final Consultancy Report - ARU

This report provides a detailed analysis of operational and project management strategies for a shopping center refurbishment project. The report covers various aspects, including product sourcing and inventory management using the EOQ method, floor layout and process flow analysis for a new juice outlet, staff resource planning for a call center, quality management and cost analysis for a restaurant, and procurement and supplier selection. The report also explores the impact of bulk buying discounts, queuing systems, and the implementation of a new web-based call handling system. Furthermore, the report examines quality control issues, cost-benefit analysis of different proposals, and the selection of a new fire engine. The analysis includes financial considerations, such as total annual costs, gross annual profits, and the impact of external factors on project outcomes. The report aims to provide practical recommendations for improving efficiency, reducing costs, and enhancing customer satisfaction within the shopping center.

Operational and Project
Management

EXECUTIVE SUMMARY
Project management is the detailed approach or techniques employed in monitoring,
achieving, and handling valuable tasks and also activities of a project. The analysis is focusing
on a platform named "Riverside shopping centre," and it consists of several tasks that must be
completed in order to finish the project. The report provides refurbishment programmes and
processes that describe the PLC mechanism in accordance with the deadline requirements. Three
separate project activities are addressed: execution and preparation framework, budget planning
and resource control, and protection system implementation, all of which make it easier to
complete the project.

Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
TASK 5.......................................................................................................................................................4
Product sourcing and inventory management..........................................................................................4
TASK 6.......................................................................................................................................................7
Floor layout and process flow analysis....................................................................................................7
TASK 7.....................................................................................................................................................10
Staff resource planning..........................................................................................................................10
TASK 8.....................................................................................................................................................14
Quality management and cost analysis..................................................................................................14
TASK 9.....................................................................................................................................................15
Procurement and supplier selection.......................................................................................................15
REFERENCES..........................................................................................................................................18

INTRODUCTION
Operations administration is concerned with consistently managing both day as well as
future market topics. Project management is concerned with the strategy, organisation,
motivation, and utilization of capital in order to accomplish particular objectives. A project is a
short-term entity established with the aim of producing one or more business items in accordance
with a Financial Model. Operations are the continuing implementation of operations that adhere
to an institution's protocols in order to achieve the same outcome or include a maintaining the
identity. The essence of operations is eternal.
MAIN BODY
TASK 5
Product sourcing and inventory management
The EOQ method: The best order quantity for a business to buy to reduce product costs
including such keeping costs, inventory cost, and order costs is the economic order quantity
(EOQ). Ford W. Harris created this manufacturing model in 1913, and it has been improved over
time. Request, ordering, and retaining costs are all assumed to be stable in the equation. The
EOQ formula's aim is to determine the best number of commodity items to order. A company's
expenses for purchasing, shipping, and maintaining units will be reduced if this goal is met.
The EOQ formula = √2*D*S/H
D = Annual demand
S = Cost of order
H = Holding cost for one item per year
As per the information provided by the Caffine coffee supplies
Unit Cost £ £15.75
Units Sold 2 weeks 200

Average sale (1 week)
Unit
sold/2 100
Annual Demand D
Number Weeks
Selling 52
Total Demand (100 x 52) 5200
Holding cost per year H
1 coffee container £ £9
Single Order Cost S
Cost of Placing Order £ £38
Shipping £ 0
Therefore, now we could determinate the amount of the coffee containers to order in each order:
EOQ = 2*5200*38 / 9 = 220
According to the EOQ, 220 coffee containers per order is the optimal number of coffee
containers to satisfy consumer needs at the lowest possible rate.
Revising Economic order quantity
Total demand per annum: 5200
Number of coffee containers per 1 order (EOQ): 220
The number of orders per annum (EOQ method): Total demand per annum/EOQ= 5200/220=
23.63 24 are required to be placed per annum to satisfy the demand
The currently spending on coffee containers such as:
Total Units (containers)Costs Unit Cost x D (£15.75 x 5200) £81,900
Order Costs No. of orders x S (23.63 x £38) £897.94
Storage Costs Units per order/2 x H (220/2x £9) £897.94
Shipping Costs £7,500 £7,500
Total Cost per Annam £83694

As per the above calculation it is analyzed that annual cost using the EOQ 836694.
Apply discount
The bulk buying discount was suggested with the price £12,75 per container if the order will be
placed with at least 2,500 containers at a time.
Units per order (new offer)
2500
Number of orders (average) D/Unite per
Order
5200/2500 = 2.08
Unit cost 12.75
Total units ( containers) Unit Cost x D (£12.75 x 5200) = 66300
Costs order costs No. of orders (average) x S (2.08 x £40) =
83.20
Storage costs Units per order/2 x H (2500/2x £9) = 11250
Shipping costs 7500
Total cost per 85133
Recommendation: Based on above figures, if Coffee Caffeine takes advantage of the proposed
discount for bulk purchases, each coffee container would cost £0.06 more. Furthermore, the cost
of stock keeping could rise by £10,282, while the cost of purchasing would fall by £884.20.
As a result, the first recommendation of using the EOQ approach is the best one.

TASK 6
Floor layout and process flow analysis

The quenening system
Since the easiest way for a queue to shape is where all buyers are standing in the same row, the
Freshpress Juices queuing scheme would be focused on a completely line structure since all
consumers are waiting in the very same line. To allow the company' encounter interaction less
complicated, two indicators will be shown to figure out where all the ORDERING POINT and
PICK-UP POINT are.
The Job roles
Manager (1)
 Problem solving
 Recruiting staff
 Handling administration and paperwork

Assistant manager
 Weekly schedules
 Ordering
 Organization staff
 From time to time assistant would be necessary to present supervisor role
Waiters (25)
 Preparing food
 Serving juice
 Daily cleaning activities
The Opening hours
The store is allocated in mall and arriving different types of customers so Fresh press would be
opened for 24 hours. According to customer requirement average customer per hour the store
should have this amount as per the staff duty:
 00:00 to 6:00 (60 customer per hour) = 1 supervisor (support either on the bar or on the
till when guests busier and arranging sitting area and food counter and 2 waiter: 1 per on
the counter and 1 per serving food
 6:00 to 11:00 (100 customer per hour) = one supervisor (manage all the activities on the
bar whenever guest busier and manage all activities effectively) and 3 waiters ( 2 on the
table and other on counter)
 11:00 to 14:00 (150 customer per hour) = 2 supervisor and 5 waiters doing their work as
per the capacity and manage all the guests effectively.
 14:00 to 18:00 (200 customers per hour)
 18:00 to 00:00 (50 customers per hour)
These variables have been taken into account.
1. The necessary request
2. Hours of day, which will necessitate making three shifts accessible to all people (AM, PM,
Night shift)
3. Considering the fact that a single employee needs two days off per week
4. At any point, the assistant manager will take over as a barista or boss.
5. At any moment, the boss will take on the task of the barista.

TASK 7
Staff resource planning
Riverside Centre has a small contact centre that helps tourists, recreational guests, and
store tenants get information more about mall, including hours of operation, product ranges, big
occasions, and other topics. Specific vendors and call centre customers can communicate about
inventory, consumer inquiries, and other issues through the call centre. The decisions businesses
make on how to manage their businesses will have a significant impact on the quality of their
jobs and the amount of customer support they provide. As a result, one of the most important
things for a boss or business person is to make effective hiring decisions. Proper training ensures
that businesses have the right people on hand when they need them.
Total annual budget
Information collecting from research file
Number of Working days 250
Number of calls 26200
Number of permanent staff 3
Number of calls ( one temporary) 30 (per day)
Cost of 1 temporary staff 20 (per day)
The call center data present number of calls per day and present additional work that requires to
be done and present detail about the temporary staff member underneath:
Perio
d
Day
s
Tot
al
Work per day Perm
s
Perm
capaci
ty
Extra
work
Tem
ps
neede
d
1 0-
100
520
0
Call
s
Total calls/Days=
5200/100= 52
calls
2
30 calls*3
people=
90 calls
(per
day)
0 0

2 100-
150
1500
0
Call
s
Total
calls/Days=15000/50=
300 calls 2
30 calls*3
people=
90 calls
(per day)
300
calls-
90
calls=
24
0
call
s
(pe
r
day
)
240
calls/20
calls=
12
temps
3 150-
250
600
0
Call
s
Total
calls/Days=6000/100=60
calls
2
30 calls*2
people=
60 calls
(per day) 0 0
The call center requires recruiting about 12 temporary staff members in the second period of the
year.
The total cost per year will be;
Period Days Temps
needed
Cost
per
day
Working
days Cost of
temps
1 0-100 0 £76.75 100 £0
2 100-
150
12 £76.75 50 £46050 (Cost per day*Working
days* Temps needed)
3 150-
250
0 £76.75 100 £0
TOTAL £46050
Based on the fact that each temp staff cost £76.75 per day, the total annual budget for temporary
staff is £46050 to meet the customer demand.

New web based call handling system
Any IT organisation claims the new system offers the following:
Number of Working days 250
Number of calls 26200
Number of permanent staff 3
Number of calls ( one temporary) 50 (per day)
Cost of 1 temporary staff 40 (per day)
New system cost 34000
New web based call handling system (Temporary staff required)
The quantity of temporary workers required every day to satisfy the job requirement, according
the web-based call handling system bid, would be:
Perio
d
Day
s
Tota
l
Work per day Perm
s
Perm
capacit
y
Extra
work
Temps
needed
1 0-
100
5200
Call
s
Total calls/Days=
5200/100= 52
calls
2
50
calls*2
people
= 100
calls
(per
day)
0 0
2 100-
150
1500
0
calls
Total
calls/Days=15000/50=3
00 calls 2
50
calls*2
people
= 100
calls
(per
day)
300
calls-
100
calls=
20
0
call
s
(pe
r
day
)
200
calls/
40
calls=
5
temps