Operations Management and Project Life Cycle: A Tesco Case Study

This report provides a comprehensive review and critique of operations management principles, focusing on a case study of Tesco. The report delves into Tesco's business operations, examining the application of continuous improvement plans, Six Sigma methodology, and lean principles to enhance efficiency and customer satisfaction. The analysis includes a discussion of the project life cycle, outlining the stages from initiation to closure, and how these stages are applied within Tesco to address specific challenges such as employee movement during lunch breaks and staff absenteeism. The report also explores the costs, benefits, and risks associated with implementing various operational strategies, such as on-site catering services, to improve employee well-being and productivity. Overall, the report offers insights into how Tesco utilizes operations management techniques to maintain its competitive edge in the retail market.

REVIEW AND
CRITIQUE OF
OPERATIONS
MANAGEMENT /
PROJECT LIFE CYCLE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Project 1.......................................................................................................................................3
Project 2.......................................................................................................................................7
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Operations management is the management of business practices in order to build the
higher level of efficiency possible within the organization. The concept is directly related to
converting materials and resources into services and goods as efficiently as possible. The
environment of the business is getting more competitive as with the increase in the number of
companies. Along with that the consumers are getting more conscious about the product and
services they are consuming, they are in need of the effectively managed operations and
production processes (Benjaafar, 2020). Operations management includes the effective planning,
organizing, directing and controlling processes within the organization.
Tesco is a British multinational merchandize retailer and grocery store having
headquarter in England (Alajmi, 2020). Tesco has various shops in five countries across Europe
and is the market leader of groceries in the UK.
This report will consist of the concept of operational management principles with the
involvement of continuous improvement plan. Along with this, the study will also highlight the
thought of project life cycle along with their effectiveness with the help of various theories,
concepts and models.
MAIN BODY
Project 1
Tesco is a multinational grocery retailer business having stores at various places across
the country. The business of the Tesco expands rapidly as recently the organization has overall
100 plus Tesco shops across the country (Netessine, 2020). Organization is the first European
grocery and commercialized store chain which has released its club card system which provides
the shoppers to get the points after their each transaction. Tesco served services in various areas
such as retailing clothes, electronics, books, furniture, financial services, telecom and internet.
The organization is committed towards offer reduced prices for customers and offer great quality
products to their buyers.
Operations also described as business operations in an organization includes a group of
various activities which is channelized to keep the company able to run efficiently and to earn
profit. It involves various kind of technology, equipments, process and locations (Thomé, 2018).
In the case of Tesco, the process shows a great impact on the productivity and overall company

efficiency. Proper mixture of activities affects the performance and efficiency of the Tesco.
Location affects the customer satisfaction and the amount of products sells by the company. The
technology, the company used also have a great impact upon productivity and efficiency of the
performance of Tesco.
Operations management describes when the business operations are practised with an
intention of achieving higher level of the organization with the help of properly managing all of
them are known as operations management. It is the most crucial and critical classification of the
management procedure of the Tesco which includes implementation, designing and controlling
activities of the production process of Tesco.
Six sigma approach focused on identifying and eliminating anything that caused
fluctuation in the process. The goal of this methodology is to improve the way the quality and
measurement system worked in a manner which helps to eliminate the errors. The Tesco
production system identifies errors results in creation of scrap, excess testing, rework and
frequently consumer dissatisfaction (Hernández-Callejo, 2019). This approach is majorly focus
on distinguishing and obviate anything that caused modification within the operation. When the
variation is gone, the result of the process can be predictable. There six sigma has been
characterized into five stages: Define: In this stage the process has been analysed on the basis of expectations and
desires of the consumers. In order to ensure a change, the Tesco guarantee about the
customer satisfaction and keep continue enhances it. Measure: In this phase, on the basis of customer perception, the evaluation of the process
of goods and services offered has been measured by the Tesco. It is because to ensure
that the analysis has been completed on the basis of actual performances rather than
theoretical knowledge. Analyse: After analysing the measured data according to the source of variation that may
cause problems have been analysed in this stage. This is to identify the basic root cause
of the problem within the company. Improve: In this phase necessary changes has been adopted by the company to their
process, services or products if required. This pledge the desired outcome and elimination
of any error.

 Control: At this last stage, the implementation of changes taken place and support system
also has been updated. Tesco ensures that the solution is completely implemented in
appropriate manner and to identify if performance starts to degrade.
Lean principles encourage the practice of continuous improvement and is completely
based on the fundamental idea of respect for person. This approach ensures steady elimination of
waste from production process (Antony, 2019). There are five principles of lean manufacturing
are:  Value: It is defined by the consumers in a way that what is important or significant for
them rather than what Tesco wants to give to the customers according to their set criteria
of goods and services. Value stream: This particular is the set of activities that has been performed by Tesco
that are involved in creation of goods and services for their consumers. Flow: It is the step at which the smooth flow of the activities that add value to the
customers rather than waste that prevent the flow through value stream. Pull: This system allows the Tesco in order to do just in time delivery and manufacturing
of goods and services where the products are needed and in just the right quantity
required.
 Perfection: The continuous assessment of value stream performances in order to identify
value created to the consumer rather than resisting changes that improve the procedure.
The operation management of Tesco is based on the strategy in order to influence the
elements of marketing mix in order to build competitive advantages and have positive effects on
its sales. Company offers variety of products and services to its consumers. The price element of
the organization is considered as the business strategy which helps the Tesco to become
differentiate from other retailers. Company offers its services through both the medium i.e.
online and offline as well. Organization also works for uninterrupted improvement of its offered
products and services with sustaining its high quality in order to satisfy their consumers.
Operation management is the administration of consistent flow of goods and services with the
help of logistics team through which the ultimate target of sales can be achieved.
Continuous improvement through lean principles shows that the Tesco needs to improve
its services and products in continuous basis till company reaches the stage of customer

expectations completely. It refers to the continual improvement of processes with the help of
incremental and breakthrough alterations. It is designed in order to authorize employees of Tesco
to solve problems which gradually improves the efficiency of the company (Pellicer, 2020). Lean
principles enable the company to reduce wastage at the time of production of goods and also
helps the employees in order to encourage them for doing efficient work. The expectations and
market demand has been fulfilled by the company with the help of continuous improvements in
product offers to consumers (Hester, 2019). Continuous improvement plan involves the
following stages:
 Plan: In this stage teams of Tesco have to measure current standards in order to come in
front of various ideas of improvement and also identify about how these improvements
should be implemented while setting goals as well as action plan. Do: In this stage implementation of plan that was created in primary step includes not
only changing process but also provide necessary training which helps in adding control
in order to avoid potential problems within the organization Tesco.
Illustration 1:
Continuous Improvement Plan
Source: (Creative safety supply, 2021)

 Check: At this stage the Tesco managers checks the previous steps with the new planned
strategies in order to compare new measurements with the old ones. Analysis of results
and take corrective actions to ensure the desired outcome are being achieved.
 Act: All the collected data has been analysed by the team members of Tesco in order to
check whether the change will become appropriate or can be used as permanent method
or requires further improvements. At this stage it is proper time to looking for new and
innovative ways to make further improvements.
In order to improve the operation function with the help of continuous improvement plan
Tesco follows certain things:
 Selection and training procedure of the company needs to be effective in terms to develop
efficient products with cost effective activities which also helps the organization in order
to achieve profit margin of company (Winter, G., and et,al., 2018). It helps to enhance the
employee satisfaction level through effective training and development programs and
also increases employee morale.
 Consumers demand and expectations should be analysed properly in order to make them
feel satisfied in all terms. In order to fulfil demand and expectations of customers, Tesco
can lead the market with its efficient market strategies which is offering low cost
products with good quality.
Project 2
The case study given in this project describes the large manufacturing company based in
the Midlands having overall 1250 employees. In order to achieve the company's objectives
efficiently, company prepared organization program with the development in induction and
personal development process (Kowang, 2019). Major issues within the organization which
needs to be efficiently handled with the help of effective planning and strategies are initially
company have to take certain measures in order to reduce the movement of staff members from
the premises during lunch break which results currently in creating congestion issues and another
is to help their staff to develop a healthy life style of employees in order to reduce staff
absenteeism.

Business Case Reason: Reduce the movement of employees outside during lunch breaks and also
decrease the level of absenteeism within the organization. Options: Start office premises catering services in order to serve food items for the
employees of the company so that they automatically avoid roaming outside during lunch
hours. Another option is involvement of effective training sessions to introduce or make
employees aware about healthy foods habits which helps to resolve issue related to
absenteeism. Benefits: It enhances the overall productivity of company and also enhance the brand
value within the market space. Costs: The cost in order to start catering services within the office premises will around
£18000. Time frame: Approximately company requires 6 months in order to start catering
services within office premises.
 Risks: Budget risk, resource risk, contract risk, integration risk and risk related to
disputes may arises.
Project Plan
The project life cycle plan involves the 4 main stages which define the plan from its
primary stage till the last stage (Guimarães, 2017). These stages help the organization in order to
make the plan efficiently to achieve objectives and goals of the company. The stages include:

Illustration 2: Project Life Cycle Plan
Source: (Invensis, 2021)
 Project initiation: This stage includes the introduction of problem within the company
which ensures the company to analyse problems and do certain actions for the betterment
of the company. Problem arises in the company is that employees roaming at surrounded
areas of company premises during lunch break creates problems related to congestion
issues at surrounded places does affect the brand image of the company in the market
space. Another issue is related to the development of healthy lifestyle habits within the
employees to reduce absenteeism practices. Work Planning: After the complete analysis of the problems arises within the company,
managers have to take certain actions through effective planning of on-site catering
services. It helps the organization to resolve the problems with the involvement of
discipline activities in action to reduce congestion issue created by the employees and
also motivate or guide them to adapt healthy practices in their lifestyle to avoid
absenteeism along with enhancement of productivity. Task Execution: At this stage, the company execute the planned project into working
condition in order to achieve desired outcome. The managers at this stage also ensures
that the changes has been followed by the employees in a disciplined and effective
manner. Monitoring of activities also plays vital role in order to ensure the enhancement
of productivity along with employee morale to perform their individual pre defines tasks.
 Projection Closure: This is the last and final stage which explains the tasks and their
execution along with outcome in detail with the help of effective monitoring and control
process which helps the organization to achieve pre-defined objective. In order to sustain
planning for long term, monitoring and controlling of plan is highly important in order to
adapt prepared plan to resolve certain issues.
Cost benefit analysis is a systematic approach in order to estimate the strengths and
weaknesses of alternatives used to find out various choices which helps to identify the best
approach in order to achieve benefits while conserving savings (Paipa-Galeano, L., and et.al.,

2020). The benefit of cost is gained from the actions taken after subtracting the total cost
associated with the plan.
Particulars Cost in £
Company Benefits 23000
1. Enhancement of overall productivity 15000
2. Reduced absenteeism 8000
Company Costs -18000
1. Training and development regarding healthy
life style
5000
2. Workers cost 7000
3. Corporate social responsibility activities 6000
Total £5000
From the above table it has been illustrated that the cost benefit for the company which
helps the organization to achieve its objectives effectively is £5000. The total cost of the
organization during the implementation of plan has been deducted from the total company
benefits to analyse the final result. Thus, at the time of evaluation it has been identified that the
majority of benefit has been achieved through the enhancement of productivity level of
employees that able to boost project workings through adoption of plan in disciplined manner
during working hours and lunch break as well. It also gives their outcome in positive way to
decrease the absenteeism level with the help of effective training programs related to
enhancement of healthy lifestyle which is also considered as a part of CSR activities and thus
increase the morale of the employees to do their task efficiently.
Work Breakdown Structure

Gantt Chart