Operations Management Analysis Report: ASDA Business Operations

This report delves into the realm of operations management, exploring its significance and core functions within a business context. It begins by defining operations management and its importance, followed by an examination of the input-transformation-output process model. The report then analyzes the 'Three Es' (efficiency, economy, and effectiveness) in operations, alongside a PESTLE analysis focusing on cost and quality. Further, the report covers the importance of various factors such as quality, speed, cost, reliability, and flexibility. It also explores linear programming, critical path analysis, and the need for operational planning. Finally, the report defines operational outcomes and produces a network plan, concluding with a discussion of management techniques.

Operations Management
in Business

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Operation management and its importance...........................................................................3
1.2 Operation function of an organisation...................................................................................4
1.3 Input-transformation-output process model..........................................................................5
TASK 2............................................................................................................................................5
2.1 Importance of the ‘Three Es’................................................................................................5
2.2 PESTLE analysis, of a company between cost minimisation and quality maximisation.....6
2.3 Significance of Quality, Speed, Cost, Reliability and Flexibility in operations management
.....................................................................................................................................................7
TASK 3............................................................................................................................................8
3.1 How they use linear programming to add value to the production process..........................8
3.2 Critical path analysis and network plan of ASDA................................................................9
3.3 Need of operational planning ...............................................................................................9
TASK 4..........................................................................................................................................11
4.1 Define operational outcomes for an organisation of your choice.......................................11
4.2 Produce a network plan indicating the resultant critical path.............................................11
4.3 management techniques......................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Operation is a process of producing goods as well as services. In the business
organization, operation is the important part of a business that they provide and manufacture
goods ans services. Goods include raw materials and they are physical items. Along with this
service can be defined as a activity that provide to the customers as well as composite of time. In
the business operation function is responsible for providing good as well as service to the
customers in the market (Wheelen and Hunger, 2011). In the organization for success they
include the finance, operation along with the marketing. Supply chain of the product is also
included in operation management which include some steps and they are interconnected that is
suppliers suppliers, direct suppliers, producer, distributor and final customers. Supply chain of
the product are both internal as well as external to the business. The external factors are included
raw material, equipment and suppliers and the internal factors of supply chain are also related by
the operation function of the business. ASDA company is related to the food retailer in UK
(Operations Management, 2017). The ASDA company had increase in the cost that can help in
enhance sales volume within store. In the below mention report concept of operation
management has to be discussed.
TASK 1
1.1 Operation management and its importance
Operation management is a part of a company without it company will not work
properly. In operation management we transformation of operational and production of inputs
and get the the output for the customers. Operation management is run by the higher level of a
company. The main aim of the operation management is to convert labour and material into the
services and goods. They will invest money into the products and generate revenue by the
manufacturing of product (Becker, Kugeler and Rosemann, 2013).
Operation management utilise resources such as material, technology, staff and
equipments. operation managers deliver their products to their clients and generate relation with
them. Take a example of ASDA it is British superstore who sales toys, general commodities and
food. The value chain of ASDA has better image in the market. It is in core idea in strategic and
marketing management field. The value chain of ASDA is very similar to the value chain of

porters five value chain. Their are two functions in an organisation core functions and primary
functions.
Primary function is to convert raw material into the finished goods and the operation part
is to outbound logistics. Select the target market and fulfil their demand by sales service. It is a
major player in the market and economies of scope which are considered as key bargaining
power. It helps to achieve target by low cost from the suppliers of an organisation. Marketing
and sales program of ASDA are they provide many scheme and benefits to the customer. The
issues which are related to the public awareness, environment, reduction of waste and carbon
footprint involved in making of product (Myers, 2013).
The operation management of Sainsbury's is very broad. IT is the third largest super
market company in the UK. They have various products in the market which related to the food
items. They provide fresh, healthy and safe product which is cure for your health.
1.2 Operation function of an organisation
Operation function of ASDA is to provide goods and services to the customers.
Operation management has to focus on trend which is in the market and they have to make
quality of goods and services. It is the part of an organisation the higher level of an organisation
decide which type of quality of goods they have to provide in the market. Which type of products
their customer wants. They focused on planning, controlling, quality management,information
system, inventory system, accounting. Orchestrate all the resources needed to produce the final
product. Transform organisational inputs into the final products (The importance of operations
Management, 2016).
ASDA provide many products in the super market which are useful for people. The
services of the ASDA is very well In comparatively to the other brands which are in the super
market and also the competitor of ASDA. The long term performance is based on operation
function. If you wants to get profit from your employers you will have to motivate them and give
incentives to them by they will work more effectively and efficiently. It is helpful for the
organisation to generate the margin in the super market (Karlsson, 2016).
Identifies the priorities for the continuous improvement of the company and employees.
Work with in the culture and develop your performance skills. Company have to understand
about their capabilities. Managers organise the plan and apply on the production strategy it will
helpful for satisfy the customer internal and external need. It is a continuous process, reducing

need to repeat in work, improving accuracy. Operators are responsible for the day to day
transaction which is in the under of operation management. Basically main aim of operation is
to satisfy the need of the customer. In it we have to improve our quality of the product.
1.3 Input-transformation-output process model
Transformation is a process in which a group or activity make some input to transform
and add value to the product to get some output for the customer. The input of transformation is
material, labour, information and capital to get the output like services and goods. The flow of
data and material into the process to get the output of the production. ASDA has wide range of
product such as wine, clothing, pharmacies, gifts etc. we have to analyse the strength and
opportunities to the portfolio of business they have to work for the increasing of share in the
market and generate profit from the products (Yang, Hong and Modi, 2011).
Operation management apply low cost tom generate the large amount of products. ASDA
understand the needs and wants of the customer. They make new strategies to find out the
modern needs of the customer and supply to the customer. They emphasize on the innovation
and quality of its products at low price which is not working in the market. The inputs represent
the flow of data and materials into the process from the outside. Example, small firm of super
market believes there are problems with hiring the employees in the firm. And the cost of
training is very high to trained each employee so they decide to make group for training it will be
beneficial for the firm. ASDA will make their website on online the products which is available
in the market those are available on online also.
By it they can get maximum profit and output by invest low amount of input. ASDA is
well renowned firm in the super market it is awarded on third position in the meeting of super
market firm. They have well trained staff who do their work very well.
TASK 2.
2.1 Importance of the ‘Three Es’
The importance of these 3Es in the operation management and strategic planning are to
run the system systematically efficiency is one of the most familiar to the operation management
and with then technical background. By we can measure the relationship between the input of
labour and raw material with the out put of product. In the term of man power also we can see
the input and we can measure the output in the term of sales and the number of items that we had

produced. It is a better way to achieve our target in a short time of period in a low cost. when we
see the 2 more E's then we understand why we need to avoid becoming to concerned with
efficiency. Economy is all about in the term of money, cost and revenues. It is all about to earn
more profit from the selling of the products to the customers or consumer in behalf of money
(Tang and Musa, 2011).
If we want benefits and earn money than we have to improve our efficiency by it will be
help to invest to money in making the products. If we pressure to much on our employees they
will do their work efficiently and it will reduce the cost of raw material. Effectiveness is for
achieving our target easily. It is important in the ASDA to get then profit. In it we have provide
service rather than to make profit. If the employees of ASDA to do their work effectively then it
will generate some profit. It is the better way to maximise the profit of the firm because in the
organisation the main is to focus on their customer that which type of product customer wants
and what is the need of the customer. It is helpful to achieve the long term goals which is set by
the organisation. ASDA and Sainsbury are the competitor in the super market the make better
product by it they have better image in the market (Ageron, Gunasekaran and Spalanzani, 2012).
2.2 PESTLE analysis, of a company between cost minimisation and quality maximisation
Political have main role in the organisation the government make many rules by which
organisation will run. Their are certain policies and procedure which will have to follow by the
organisation which is registered in the companies law. Take the example of two companies
ASDA and SAINSBURY. They are then competitors in the super market. They make their
products better than the other firm they are the kings of their market. ASDA is the company who
make certain types of products. One the change in government policy the taxes will increase and
the price of wine will be decrease and it will effect the profit of ASDA. One time in the market
sainsbury has to face the problem in the market the product that they had launch it will not be
acceptable by the consumer it will affect the market of Sainsbury.
Economical is based on money, price and revenue when the company earns the profit it
will helpful to sustain in market and it will helps in the growing of the company. It has vital role
in the industry. The economy will go down when the inflation comes. In Sainsbury case growing
unemployment, inflation in food price are the main factors which effects company (Barratt, Choi
and Li, 2011).

Social factors are those factors in which customer have main role they decide that which
product is better for them. Accordingly to their need and wants. By it only the company will
make the products.
Technological factors have significant growth potential in the online or web based
operations of the business. Sainsbury online food delivery is expanding in the market. Many
people will like to purchase there product. By using new technology in the organisation you will
expand the production.
Legal factors are those factors which is run by the government or by the law. The
organisation have to follow the rules which is made by the government. In the supermarket a
new tax on advertising is apply on the food products.
Environmental factors are both the direct and the indirect ways who impacts on the
organisation or effect the organisation. If you are making the products which are decomposable
you have to through into the garbage. Sainsbury has to take initiative to recycle the products and
they are also working on footprints (Peng and Lai, 2012).
2.3 Significance of Quality, Speed, Cost, Reliability and Flexibility in operations management
Significance of product according to their quality,cost, reliability, speed and flexibility if
the quality of product Is good every wants to use it and it make the better image of an
organisation (Subramanian and Ramanathan, 2012).
 Quality of Sainsbury product is better in the supermarket the product of business entity
very authentic people will rely on them the food products are healthy accordingly to their
size they less expensive product it create better image in the market. Performance the
primary operating characteristics are optional extras Reliability likelihood of breakdown.
conformance to specification. Technical durability length of time before the product
becomes obsolete. Service ability ease of service Aesthetics look, smell, feel, taste.
Perceived quality reputation (Pettit, Fiksel and Croxton, 2010).
 Speed the service they had provided was far better than the other brands because in the
other brand they will not provide this such types of services as compare to the speed
which
 Cost of the manufacturing goods will low have price by it we can sell or product at higher
price we can earn profit through it. If the quality of product is high and the price is low
then people will shift on our product in comparatively to the other brands.

 Reliability of a products matters because if your product is reliable than people will trust
on your brand and it will make good image in the market (Meskendahl, 2010).
 Flexibility means the material quality and output quality should be best of your product.
TASK 3
3.1 How they use linear programming to add value to the production process.
The product line of ASDA company sell a large type of merchandise that have including
food or apparel as well as house wares music videos and books. The main of ASDA is to
provide and shown to cheaper than with the cost which are shows the lower than main and
important competitor, and with in outstanding involved fresh food, clothing, home, grocery. In
ASDA company provide friendly services to their customers and based on reputation for quality
and services(Yang, Hong and Modi, 2011). The company play the positive role in all entities of life in
the local state to start a new regional supplier to work done with the emergency service in the
area. The linear programming is used in mathematical modal which is define the problem of the
concern. It can used to limited production to evaluated problem of business with the help of
metamathematical process. It is also based on the ranking process. The linear programming does
not used to computer programming to evaluated problem of the business. It can be involved the
planning of the activities as well as movement to accomplish an effective result and also shows
the specific goal along with feasible alternatives. The linear programming included number of
hours to production time available in new products. They can use plant for every collection of
new product. Linear programming solves the maximize or minimize quantity and quantity can be
include profit or cost the specific product. The main purpose of linear programming is to enhance
along with maximize profit in dollar in the long time of period. The most common linear
programming element is the product mix problem when two or more product are produced using
with the help of limited resources and also evaluated the profit in the long time by the limited
resources.

3.2 Critical path analysis and network plan of ASDA
Critical path analysis based on mathematical network analysis and process of working
procedures within reference to find the critical path of system. Critical path is a wide nature of
process that can used widely in project management. It is time related operation and help in
analysis of project manager to handle complexity. Is is define the risk in project management
including the time. The critical path is a process of set of project activities. It is step by step
project management to fine the higher critical path in the business. It is a diagrammatic al
process and also define the relation between critical and non critical activities to help in keep in
the project on track (Karlsson, 2016).
Network plan is process of iterative process to evaluated in topological design and the
aim of the network plan that is ensure by the new telecommunication network or service that can
meet the subscriber and operator. It is iterative process to design topological manner. A better
designed network is a successful network. This helps in systems integrators and value added. It is
establishment of common network performance also develop a personalized network plan.
3.3 Need of operational planning
Operational planning and control can involve scheduling as well as control of human
resources and financial input to evaluate the quantity and quality of output most effectively. It is
based on future demand by the help of output of the system as well as forecasting system. It is

also include the overall manufacture system to outcome a product. Production planning include
designing a product, determine the equipment also designing chart of physical facilities.
Improvement maintain to get profit through maintenance of balance, balance of product,
maximum utilization of resources, lowest investment in stock, reduce the cost of scrap. In the
operation planning there are some element of production are involved in this process which are
control of planning, material,activity, as well as quantity. They can provide the system to
produce and take decision regarding the product. In the long term operation they plan to how
they can achieve the objectives with the help of limited resources. They can set strategies and
objective to achieve financial targets and define cost ans targets of business. Stock planning is
depend on demand planning. Planning and control is define the relation between the market
requires and operation resources can deliver the product. Control is the process of identifying the
change in variables (Beckek, ugeler and Rosemann 2013). The nature of planning and control is
based on long term to make plan that what resources they need and what objectives to achieve.
Sometime operations are related to independent demand. The scope of production planning are
related to the material, method, machine, equipment, manpower, routing, estimating, loading,
dispatching,expending, evaluating, as well as cost control. Operational planning is related with
managing the outgoing activities can be satisfy customer demand as well as wants to achieve the
target of the organization. In organization have to require plan to evaluated and controlling of
product. Operation planning have to design, develop and deliver the product to customers to get
more satisfaction.
Capacity planning is process of define the production capacity that can help in
organization to meet demand for product. They can also maximize of work that can able of
completing in a specific period. The inventory planning is process of selling product it is direct
impact on company to get quick turnover of goods as well as materials. It has direct impact on
cash flow of company. Project management is the process of maintain the discipline of initiating,
controlling the work of team that can help in achieve specific goal and also define specific
criteria. Quality assurance is part of the maintenance of a specific level of service and quality to
deliver the product.

TASK 4
4.1 Define operational outcomes for an organisation of your choice
Operation outcome is the part of business strategic plan and important for effective
leadership in organization. It can define that how the work will be done and including the
resources which is use in effective way. Operational plan is also known as action plan that can
evaluated the strategies of business to achieve higher outcome and they can include action
resources policies and responsibilities within organization. Operational outcome is completely
based on operational plan that shows action and implementation goal to identifying the strategic
plan within organization. Operational outcome set goal for achieve success. In business goal set
for the achieving the top level profit to evaluate the business in better manner. It is focus on the
knowledge and helps to organize the objectives. They are specific and measurable statement
regarding the improvement of unit. Operational outcome must be smart as well as specific,
measurable, attainable, realistic, and timely. Every outcome have to flow directly to get more
goal of the unit (Wheelen and Hunger,2011). Operational outcome is divided in two parts:
Strategic outcomes: It can involve implementation of initiatives and contribute to strategic goal.
Strategic outcome is process of implementation of performance.
Operational outcomes: Operational outcomes is generally based on provide service as well as
product. It can include direct and indirect effects on stakeholders. The specific definition of
operation outcome is clear and it can be define the terms of describing abilities, knowledge as
well as performance. Operational outcome should be measurable that they can get the data which
are right along with reliable. They have to aggressive but they attainable to move the program in
forward. It is result oriented that can define standard of service and program. Operational
outcome is based two approach (Tang and Musa 2011). In the first approach describe mission,
describe vision, list goal, list outcomes. In the second approach the include brainstorm
performance indicators, select important performance indicators.
4.2 Produce a network plan indicating the resultant critical path
Task Name Duration Start Finish Predecessors
Deciding the
test market area 1 days Sat 15/4/17 Sun 16/4/17
Marketing
activities which
2 days Tue 16/4/17 Thu /4/17 1

is to be agreed
Specification
related to
agreed
production
3 days Fri 4/7/17 Thu 4/13/17 2
Brand name
should be
decided
1 days Fri 4/7/17 Mon 4/10/17 2
Advertising
plan should be
prepared
2 days Fri 4/14/17 Wed 4/19/17 3,4
Agree
advertising
package
3 day Thu 4/20/17 Thu 4/20/17 5
Designing
package 2 days Fri 4/21/17 Tue 4/25/17 6
Production of
test batch 5 days Wed 4/26/17 Thu 4/27/17 7
Package and
distribute 10 days Fri 4/28/17 Mon 5/1/17 8
Monitor and
media support 3day Tue 5/2/17 Tue 5/2/17 9