Operations & Project Management: Tesco and Crossrail Analysis

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This report delves into the realm of operations and project management, employing case studies of Tesco and the Crossrail project to illustrate key principles. The report begins with an introduction to operations management, emphasizing its role in enhancing organizational efficiency and effectiveness. It then presents a detailed analysis of Tesco's operations, critiquing the implementation of operations management principles, including Taylor's scientific management, lean production, and Six Sigma. The report further develops a continuous improvement plan tailored to Tesco, leveraging lean principles to reduce waste and enhance efficiency across various operational aspects. The second part of the report focuses on the Crossrail project, applying the project lifecycle stages and offering a review and critique of its effectiveness using relevant theories, concepts, and models. The report concludes with a summary of the findings and a list of references.
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Operations and Project
Management
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Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Review & critique of the implementation of operations management principles in an
organizational context............................................................................................................3
Task 2...............................................................................................................................................6
Develop a continuous improvement plan based on the critique and review of operations
management principles in context to organization.................................................................6
TASK 3............................................................................................................................................9
P3 Apply each stage of Project life cycle to a given project, producing necessary supporting
documentation for completing project....................................................................................9
TASK 4..........................................................................................................................................13
P4 Review and critique effectiveness of PLC in application to the chosen project using
appropriate theories, concepts and models...........................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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Introduction
Operation management is defined as administration of business practices for attaining
maximum level of efficiency and effectiveness in terms of organizational resources. It is an area
of management associated with controlling and designing the production procedure of product
and services. It is a system that supports all functions of an organization in order to enhance
productivity and profitability (Heizer, Render and Munson, 2017). The present report will
include two parts. For the first part, Tesco is taken into consideration, which is a multinational
grocery and general merchandise retailer that was established in year 1919. In second part, a case
study of crossrail project is considered. It is one of the biggest railway infrastructure project
within Europe & is largest single investment undertaken in United Kingdom. The report will
cover critique of execution of operation management principle in an organization. In addition to
this, a continuous improvement plan is developed on the basis of operation principles. Moreover,
project lifecycle of a given project is developed in a proper manner. In the last, there is review as
well as critique of effectiveness of project lifecycle by using appropriate concepts, theories and
models.
Task 1
Review & critique of the implementation of operations management principles in an
organizational context
Operations are those primal activity of an organization which includes procurement of raw
materials, conversion into final goods an then available it to user. Operations of a company are
basically the functions that involves procedure of transforming raw material into final product
that is served in market to customers.
Operation management is also defined as administration of business practices that develop
high efficiency and allow to optimally utilising the given resources. It is stated that
administration action enables a company to develop a balance among cost and revenue in order
to obtain high net profit margin.
Operation versus operations management
Tesco is one of the largest retailer in UK that involves large number of operations
including from initial stage to final stage till aftersales. Organization mainly engaged in
manufacturing and retailing segment that involved operations such as manufacturing/ production,
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human resources, marketing, inventory management, sales, customers care, service provider and
many more.
Along with this, operation management is associated with primary activities that are
required to be performed in order to execute theoperations in a systematic manner. It is also
concerned with designing and controlling, improvement of system, effective management that is
necessary in order to produce goods as well as services that is offered to customers. It is one of
the important critical phenomena that is linked with growth and success of an organization. It is
stated that operations management approaches provide a systematic manner to leaders and
managers of Tesco in order to look into their functions and system that results positively and
effectively.
Different approaches of operation management
Taylor theory of scientific management
This theory is also referred as classical management theory which is dedicated to
workforce and staff members of an organization. In addition to this Taylor theory state that staff
members require to be rewarded and motivated for their performance instead of being criticized
for the small mistakes. It is also stated that employ efficiency as well as productivity would be
enhanced by optimum utilization of their skills and capabilities and simplifying their
complexities of the job (Lee, 2018). Some of the principles of scientific management theory is
given below in relation to respective organization:
Science, not rule of thumb is one of the primary principle that state management of
respective organization to adopt scientific approaches in making effective as well as appropriate
thinking prior to implementation of activities.
Harmony, not discord focuses upon needs of developing a relationship among managers
and employees of Tesco. Therefore, as per Taylor change of attitude is required for both the
groups which is management and workers.
Cooperation not individualism principle focuses on the significance of cooperation and
team work. In addition to this, it bring mutual work that is advantageous for the respective
organisation.
Development of each individual to their prosperity and efficiency, Principal emphasis
on the need of providing training to employee in order to develop their skills, capabilities and
competencies which in turn effect on productivity of organisation.
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Maximum, not restricted output as respective organizations basic requirements is to
have high productive workforce and functions. Therefore, production system as well as operation
has to be optimally utilized and maximized.
Lean production
It is another important operations management approach which focuses on to cut down
waste and to increase quality of products as well as services that results into high profitability
and productivity of an organization. In addition to this, lean production system is appropriate for
the operations of Tesco that is from beginning to designing of product, to distribution and after
sales services (Haniff and Caldwell, 2019). Another objective of Lean production system is to
decline waste that automatically reduces cost and make organization more effective and
profitable. There are various aspects on which higher authorities’ of Tesco should be careful,
which are as follows:
ď‚· Kaizen which is related to continuous improvement, to improve the efficiency it
combines all talented employees within an organisation. In context to Tesco, they focus
on specific area needs to be change and involve all level of employees.
ď‚· Quality improvement and management relates to the continuous process where leaders
find to do better and the process to manage and improve quality is plan-do-check-act.
According to Tesco, they determine and plan to solve the problem and do to improve then
check the actual work done and implement the solution.
ď‚· Acquiring Just in time approach means strategy used in manufacturing process where
raw material are maintained to supply with schedules of production to increase the
efficiency. In context to Tesco, they use this approach because to reduce delay and meet
demand of consumer.
ď‚· Time based management and development of Tesco, this concept is used in production
department to complete process on time. This reduction eliminate inventory holding and
labour cost.
Six Sigma
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This approach of operation management offering instruments and tools in order to make
improvements within organizational capabilities and process is in an effective manner. It is
basically a improvement technique through making small variations in processes and developing
existing one highly competent. By the assistance of six Sigma, operation manager of Tesco can
develop huge changes as well as addition to competencies and capabilities of organization by
declining diversion within functioning an operations. One of the limitation of six Sigma
processing is, if there is variation and changes in process then it can lead to decline in
performance and morale of employees. The main emphasis of this technique is to decline process
variation an improve process controls. It help company to increase as well as promote our
standard approach of performing work by creating a synergistic flow within operations.
Task 2
Develop a continuous improvement plan based on the critique and review of operations
management principles in context to organization
Continuous improvement is defined as an ongoing process or a system that include
different efforts made in order to improvise product, processes and services of an organization
with an objective to raise efficiency and profitability level. In addition to this, improvement is
being introduced can be breakthrough or incremental which is either alteration as well as
development is taking place slowly or functions were included all at once. Continuous
improvement plan is basically a systematic idea which lays out blueprint of why company is
improvising on evolving and how it processes in order to bring change within the product and
services in an appropriate manner.
Lean principle
It is an effective way that was firstly introduced by Toyota with an objective to decline
waste as well as inefficiency from production and manufacturing system and processes. Lean
principle is renowned and embraced within the manufacturing industry globally (Kerzner,
2019).The main motive of lean principle is to decline waste on components that did not add any
kind of value within production process. It is stated that the efficiency of lean principle is visible
after it has gone through multiple lean cycles as waste factors are gradually declined in every
round that leads to attainment of positive results. Moreover, there are various areas that is
enhanced by lean practices and if it is properly used and applied these are organization cycle
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time, efficiency, material cost, productivity and most importantly scrap that in end outcome as
lowering down cost an improved competency. Tesco is one of renowned organization that deals
in manufacturing as well as other operations in which business entity can introduce lean
principles in order to get better as well as productive results. Furthermore, there are mainly five
principles included within process that is given below in context to Tesco:
ď‚· Identifying value: Here in, company determines the customer preferences are needs in
context to their offerings. In relation to this, higher authorities of Tesco conducts market
research by questioning some question to people in a systematic manner. It helped them
to know about willing power of customers that help in setting price of the projects in an
appropriate manner. It also helped in retaining and satisfying customers for longer time
period.
ď‚· Map the value stream: In this, main focus is on developing final step in order to take the
final product from raw materials step on delivering finished goods and services to the
buyers. In addition to this it is an eye opening stage for respective organization that
includes development and discussion of blueprint of actions required in order to produce
this specific product and services within a particular process. It is also known as re
engineering process that results into high level of understanding and knowledge of whole
business operations.
ď‚· Create flow: It is the third stage and here in wastes factors are removed with in
procedure and a new set of path is created (Anand and Gray, 2017). It is mainly used to
keep operations and functioning of stages in a smooth manner without any delays,
hindrances and interruptions The higher authorities’ of Tesco can face challenge offline
program which is of making efforts in order to become cross functional as well as move
across all departments.
ď‚· Establish pull: Herein, flow of processes are enhanced and improved as it is the time to
market goods and services. In addition to this, it is the time to reach final customer and
satisfy their needs by systems of just in time manufacturing as well as delivering
procedure. It is determined that respective organization did not require to develop goods
in advance and to spent high amount within production as well as inventory management.
The product can be manufactured or delivered as per needs raised by customers. It will
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result an outcome of decline in expenses, reduce cost involvement, increase productivity
and profitability.
ď‚· Seek perfection: It is the last stage and is one of critical and important principle that is
associated to the making of lean procedure and development of organizational operations
and culture. It is stated earlier that lean principle is not a systematic procedure as it
requires regular and continuous efforts by company. Therefore, management and leaders
of Tesco make efforts at the time of executing activities in order to drive perfection.
CONTINUOUS IMPROVEMENT PLAN FOR TESCO
BASIS EXISTING
METHODOLOGY
PROPOSED
METHODOLOGY
Cost TESCO is one of theleading
brand that uses operational
principles in order to perform
activities (Kerzner, 2018). It is
analysed that production cost
of Tesco is raise because of
rapid change within social
trends that impacting on
supply chain.
For declining cost and reduce
level of waste, Tesco can adopt
Lean principle that help in
optimal utilisation of
resources.
Quality Organisation ensure that high
quality is given to its
customers as it help in
maintain brand image at
marketplace.
For keeping up quality of
product and dealing with the
changing social trends, it is
suggested to Tesco to use six
sigma technique as it help in
improving quality as well as
processes.
Delivery It is determine that deliver
factor of respective
organisation is lacking as
For declining issues & improve
efficiency, Just-in-time is one
of the appropriate and suitable
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organisation procure raw
materials, develop products &
once batch is consumed then
new round will start. Raw
material is affecting the
process too.
approach that develops a
smooth flow of activities and
functions.
Time plan TESCO requires 4 to 5 months
of time in order to accomplish
goals devised in this strategy.
TESCO requires to utilise
different operations
management procedure such as
Kaizen for smooth conducting
of activities as it help in
attaining objectives timely.
Accountable people Managers and heads of various
organisations take the
accountability of operations in
TESCO & delegate
responsibility to the employees
with less emphasis on their
involvement.
The respective organisation
require to motivate every
employee for increasing
accountability. This will not
only enhance workflow but
also improve work culture of
the company.
The above table described change as well as development Tesco required to make within
process in order to attain profitability. In context to cost, organization moved itself from different
costing to lean principle with an objective to decline level of waste within process of
manufacturing and production. Moreover, to bring such changes, it is analysed by the higher
authorities of Tesco that approx 3 months is required. In regards to quality, it is suggested to
company to make use of six Sigma technique as it helped in regular improvements and also
declined variations within process. Moreover delivering and packaging factors, Tesco is offering
to make use of just in time approach that saves costs, and uses productivity and develop a smooth
flow of sales as well as deliveries.
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TASK 3
P3 Apply each stage of Project life cycle to a given project, producing necessary supporting
documentation for completing project.
In order to use project lifecycle for project of Crossrail, the important aspects are used for
estimating cost and time required by organization (Meredith, 2020). It is one of the European’s
biggest railway infrastructure projects that are developing for delivering the railway line in
Elizabeth. It is stated that the project has started with the assistance of more than 15,000 workers.
The project lifecycle include different stages from introduction to completion stage. Along with
this, project life cycle is mainly used in order to manage operations that directly leads to growth
and success of projects. The higher authorities of Crossrail follow various project lifecycle stages
which are as follows:
Initiation stage: At this stage, managers focuses on examining preferences of customers
and develop their products accordingly in order to fulfil their requirements. In context to
Crossrail, its higher authorities has started developing cross rail tunnel which have been
constructed in order to make is for people as streets of London is busy. In addition to this, herein
it is important to take approval from the stakeholders that can be attained by clearly
communicating to them about the project and get approval on documents as well.
Planning stage: It is significant to develop their strategies and plan in order to complete
project within time period. At this stage, higher authorities of Crossrail project try to create
marketing plan and making use of various project portfolio, initialization documents, work
statements and many more. In order to complete project, Crossrail project managers select
effective and employed labours who have the capability to perform activities and complete
project within stipulated time.
Execution stage: In this, the developed plan is implement with an aim to meet targets. With
reference to Crossrail project, it’s operation manager ensure that project activities is execute &
implement in a proper and appropriate manner (Chary, 2017). As now, Crossrail project testing
procedure is running in order to check the new automatic train control system that are operated
within central section of the route.
Closure stage: It is the last stage of project and here in the important documents that are
useful for completion of project is being provided. It is stated that Crossrail project takes a year
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for completion. It is also expected to test whole Crossrail line project prior to the opening of
central section that are used for Elizabeth line.
GANTT CHART
It is defined as a tool that is used by managers and researcher in order to schedule
activities as per given time period. In addition to this, Gantt chart provided a relationship among
task and schedule of activities that are executed within process of attaining objectives. The graph
consists of horizontal axis and vertical axis that represent time interval of respective project. The
project and operational Department of Crossrail project make use of Gantt chart in order to show
performance of activities that are diversifying as per their time intervals (Kerzner, 2017). It is
determined that Gantt chart involved both starting and ending time of activity that help in
completion of project within stipulated time period.
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Project portfolio
It is basically centralized management procedure that shows executive summary, goals,
methods, cost and different steps that assist in managing and completing current project.
Executive summary: Cross rail is the biggest railway infrastructure project & is one of
the biggest single investigate undertaken within United Kingdom. organization is renowned for
its innovation within construction program.
Goals: The main objective is to fulfil requirements all London people and to decline
burden of busy streets within London. In addition to this, company try to give knowledge and
understanding which are important for customer.
Solution: Market research is conducted in order to gain insight about the requirements
and demands of customer that is significant in order to resolve issue.
Cost: This factor plays an important role for completion of project timely an effectively.
The cost of project is high that is around $14.8 billion.
Benefits: It is stated that when in organization launches new product within market, it is
significant to develop value as it help in gaining higher growth and success for the organization
(Chirumalla, 2018).
Execution time: The project takes around 10 months in order to complete in a proper
manner.
Project plan: In order to complete Crossrail project, some of the aspects are given below:
ď‚· Cost: In the work of 50 kilometers there is requirement of more than 200 CCTV, 750
speakers ,15,000 workforce that arise high cost to company.
ď‚· Risk: In order to decline risk it is significant to make use of risk mitigation tools as it will help in
proper execution of activities timely and effectively.
ď‚· Scope: By the assistant of large railway line, more revenue and more customer can be earn by
organization.
ď‚· Resources: The Major resources that is required in order to complete project are human and
machines.
WORK BREAK DOWN STRUCTURE
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This method is used in categorising the whole task into small parts that help in proper
execution of activities.
TASK 4
P4 Review and critique effectiveness of PLC in application to the chosen project using
appropriate theories, concepts and models
It is determined that effectiveness of PLC within a project is depend on the different theories
as well as concepts. These theories assist project executives to develop and again objectives,
which is given below:
Initiatialisation phase: Crossrail make use of autocratic leadership style that is helpful
mainly for large-scale organization. In addition to this, it assist leaders as they are not required to
advise subordinates within decision making process (Bjorvatn and Wald, 2018). Crossrail is one
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of the large scale projects that requires autocratic leaders in order to perform in an effective
manner.
Planning phase: Here in, leaders make use of situational leadership style in order to make
decisions and perform functions as per the conditions arise at time of project process. Initially
planning is not effective but alterations happens at the time of process is significant as well as
effective for implementing and completing project.
Execution phase: At this stage, servant leadership style is used by manager in order to
execute plan. The leaders is required to emphasize on team development as it is one of the main
reasons of project success. It is stated that in large projects, there is requirement of huge funds
and effective planning so that all the activities is implemented without any interruptions.
Closure phase: It is the last stage, where in leader and managers of Crossrail project uses
team leadership style (Eriksson, Larsson and Pesämaa, 2017). Crossrail project is a large scale
project that involves high number of workforce and to make them perform activities,
appreciation is required. This strategy will assist in gaining growth as well as development of
team members after the completion of project.
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Review and critique PLC:
It is important for higher authorities of crossrail project to review and critique the
effectiveness of PLC in an appropriate manner. For this, various methods is used that is given
below:
Performance management: It is consider as a continuous procedure of enhancing
performance by setting team and individual objectives that are aligned towards the strategic
goals of the company. By the assistance of such method, the higher authorities is able to review
the effectiveness of PLC that is at what stage they need to focus and at what level they perform
associated to the set objectives.
KPI: Key performance indicators is a measurable value which state how effectively an
organisation is attaining business goals or objectives. This assist crossrail to measure its
performance and effectiveness in an appropriate manner and help in achieving objectives timely
and effectively.
The problem is arise at the initial phase of PLC while taking approval from the stakeholders
and these issue is resolve by respective organisation to clearly communicating with them and
providing them appropriate documents that help in the execution of project activities without any
interruptions. In addition to this, some alterations take place at planning phase that arise issue
and impact on the overall functioning and activities. These issue is resolved by company with the
help of situational leadership style as it help in dealing with the situations at any period of time.
CONCLUSION
From the above study, it has been concluded that operational management plays an
important role in an organization as it help in completion of project within given time period. In
addition to this, there are various operational management principles that is adopted by company
in order to attain objective in an effective manner. Lean principle, six Sigma technique, just in
time principle are some of the approaches that help in declining level of waste and improving
productivity of production process often organization. By the assistance of continuous
improvement plan, an organization is able to bring innovation and something new at
marketplace. It is determined that using of Gantt chart will help in setting activities as per the
given time which will lead to completion of project timely and appropriately.
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REFERENCES
Books & Journal
Heizer, J., Render, B. and Munson, C., 2017. Principles of Operations Management:
Sustainability and Supply Chain Management (Global editon). Pearson.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Taylor & Francis.
Lee, C.K.H., 2018. A review of applications of genetic algorithms in operations
management. Engineering Applications of Artificial Intelligence, 76, pp.1-12.
Haniff, A. and Caldwell, N., 2019. The 24th International Annual Conference: Inspiring
Operations Management. International Journal of Operations & Production
Management.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. John Wiley & Sons.
Anand, G. and Gray, J.V., 2017. Strategy and organization research in operations
management. Journal of Operations Management, 53, pp.1-8.
Kerzner, H., 2018. Project management best practices: Achieving global excellence. John Wiley
& Sons.
Meredith, J.R., and et. al., 2020. Project management in practice. John Wiley & Sons.
Chary, S.N., 2017. Production and operations management. McGraw Hill Education.
Kerzner, H., 2017. Project management metrics, KPIs, and dashboards: a guide to measuring
and monitoring project performance. John Wiley & Sons.
Chirumalla, K., 2018. Managing Product Introduction Projects in Operations: Key challenges in
heavy-duty vehicle industry. The Journal of Modern Project Management, 5(3).
Bjorvatn, T. and Wald, A., 2018. Project complexity and team-level absorptive capacity as
drivers of project management performance. International Journal of Project
Management, 36(6), pp.876-888.
Eriksson, P.E., Larsson, J. and Pesämaa, O., 2017. Managing complex projects in the
infrastructure sector—A structural equation model for flexibility-focused project
management. International journal of project management, 35(8), pp.1512-1523.
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