An Analysis of Operations and Project Management at Tesco Retail

This report provides a detailed analysis of Tesco's operations and project management strategies. It begins with an overview of the company and differentiates between operations and operations management. The report then critiques the implementation of operations management principles, including variance, organization, change, and fundamentals, and assesses the extent to which these principles meet requirements. A continuous improvement plan and lean principles are discussed, along with recommendations for improvement. The second part of the report focuses on the project life cycle (PLC), including initiation, planning, execution, and closure, and critiques the effectiveness of the PLC in a hypothetical project. The report concludes with an overview of the findings and recommendations for Tesco to enhance its operational and project management practices.

Operations & Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Company Overview.....................................................................................................................3
Operations v/s Operations Management......................................................................................3
Review and Critique implementation of Operations Management Principles............................4
Extent to which Principles of Operations Management meets the Requirements.......................5
Continuous Improvement Plan and Lean Principles...................................................................5
Recommendations........................................................................................................................7
PART 2............................................................................................................................................7
Project Life Cycle........................................................................................................................7
Review and critique the effectiveness of the PLC in application to your project.....................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Operations management can be referred to as a field of administration which is largely
linked to design, monitoring, production and control of commodities of a company with an aim
to attain the goals and objectives in the due course of time. When the activities and processes
within an organisation are carried out in the desired manner, it results in increment of
profitability as well as revenues of the respective organisation. Besides this, project management
can be said to be the process whereby review and control of activities of project take place in
order to inflate the probability of its success. In this relation, the following report is carried out
upon Tesco which is a multinational retail company dealing in a wide variety of products to
serve customers across the globe. It is headquartered in UK and is the leading entity within the
specific business sector to which it pertains in that nation. Tesco is bringing a new Television set
in market in order to capture high market share and enhance its profit margins. This assignment
consists of principles of operations management along with CIP. Furthermore, it constitutes PLC
as well as review and critique of its associated effectiveness.
PART 1
Company Overview
TESCO is the popular British multinational retail sector store which do have the number of
branches in current scenario and performing really well within the market. They deal in the
multiple sector such as wooden furniture, groceries and even electric home appliances too. In
present scenario, there are more than 1000 stores are there while which is providing number of
services to its customers (Heizer and et. al., 2017). Even company has been able to compete well
within the market by delivering the best services to its customers. Due to their continuous effort
they have been ranked as one of the most popular retail store in the world.
Operations v/s Operations Management
Operations refer to the work or task done by providing value to the client to transfer the
raw material into relevant product. It essentially highlights operations related only to the
management of manufacturing or operations. In other hand, Operations Management includes
activities such as developing or redesigning company’s operations to create desirable goods and
services. In addition, it adds on some of the important activities is crucial for any of the
organisation such as planning, controlling, coordination and many more.

Review and Critique implementation of Operations Management Principles
Operation management has different principles that TESCO business can execute in order
to reinforce its activities that add on supply chain and logistics. The detail information about all
of its principles are explained below.
Variance: It is explained as the difference which is caused just because of required
performance by the company and actual output of the organisation. For the purpose of reducing
the gap in performance organisation can easily adopt this principle. In context of TESCO, they to
deliver the products and services to their customers as per their needs and wants and at the end of
the day it actually increases the overall cost of an association (Harrison and Lock, 2017). Even it
needs additional manpower where proper training is also required to be given which needs huge
amount of fund. Therefore, TESCO is required to select the best alternative so that they can
reduce the unnecessary cost of a product.
Organisation: In any of the organisation it is necessary that they must try to focus on
operations activities so that they can earn huge amount of profit for the longer period of time. In
terms of TESCO, they think different to manage its operations activities and for that they supply
their products in big vehicles so that large quantity of product can be easily supplied at a same
time. Furthermore, it will become difficult for the organization to handle all activities with the
same level of effectiveness with the development and diversification of the business that can
operate ineffectively to operate activities.
Change: If organisation wants to improve it is necessary for them to enhance their skills
and operational needs so that they can achieve their goals easily. While talking about TESCO,
they are required introduce new theories and models so that their management can work better in
the field of supply chain and logistics. In addition, organisation have adopted the quickest
method to deliver the product which increases the overall cost of an organisation (Binder, 2016).
Fundamentals: Whenever any of the organisation wants to achieve its goals and target it
is necessary for them that their staffs follow all of the rules and regulation which are mentioned
in the guidelines of a company. Here, it is important for company like TESCO to work as per the
requirement of environment and societies so that it can be easily proved that applied principle are
effective for obtaining better results and targets.

Extent to which Principles of Operations Management meets the Requirements
Whenever company is not performing well they try to think that how they can meet the goals and
targets so that effective results can be obtained. Organisation tries to enforce the principle of
operation management so that requirements which are essential to meet the targets can be found
easily. The detail analysing on operational management are listed below:
 If company wants to reduce the overall cost of an organisation they are required to focus
that how the reduce the overall cost the more profit can be earned. For example: if
company takes the help of variance principle then they will be required to bring number
of products within the company which will have the direct impact on the company. Even
cost will also not reduce which means that this theory will not be helpful for the
organisation if they are willing to reduce the overall cost (Fleming and Koppelman,
2016).
 In addition, it is necessary for any of the company that they must try to manage their
supply chain and logistics and for that it is important that effective principle must be
applied so that every areas can be covered easily. Here, it is more important that all of the
requirements must be met which can minimise the cost and which can affect the
organisational principle.
 The main thing in which company is required to focus is that how they can maintain the
supply chain and for that how they can take the help of best principles so that they can
focus more on logistics work of an organisation. In short, it is necessary that company
must think that how they can fulfil all of the demand of customers.
Continuous Improvement Plan and Lean Principles
Continuous Improvement Plan is defined as the ongoing process in which organisation is
required to focus that how they can put their best efforts so that quality of products can be
enhanced. This process is mainly conducted after taking the reviews and feedback of the
customers who are connected with the company. In context of TESCO, they can take the help of
continuous planning plan so that performance of a company can be improved and even they can
deliver the product which they are willing to deliver within the market in specific time period
(Pheng and Meng, 2018).
Lean principle is the methodology which is applied in the company where major focus is
on reducing the overall cost of a product which an organisation delivers to their customers. It is

made up of five different principles and they are defining, value, map the value stream, create
flow, establish pull as well as pursue perfection. It has the direct connection with performance
and output of the company.
For the purpose of enhancing the performance of company, the continuous
improvement plan for TESCO is explained below:
BASIS CURRENT
METHODOLOGIES
PROPOSED
METHODOLOGIES
COST
MANAGEMENT
Principle of variance is applied
for number of products and
goods of TESCO which can
manage the daily basis operation
rather than managing the
expenses of an organisation (van
Aken, Chandrasekaran and
Halman, 2016).
It is possible to minimize the
business variance between real and
standard results. Together with that
business, they can reduce their
costs, handle their logistics, which
further minimizes labour intensive
technique costs.
QUALITY
In order to achieve better
production, the concept applied
to improve the quality of
customer support as well as
supply chain management
requires to be improved.
If company wants to perform better
it is necessary for them to make
sure that they are capable of
managing all of the internal works
so that better results can be
obtained and even it necessary that
proper supplier relations should be
maintained so that products can be
delivered as per the requirement of
customers.
DELIVERY Organisations is required to
change its current methodology
because current goods must be
delivered in specific time period
and for that improvement is
Organisation have the option to
select airways and waterway to
deliver its product in quick
succession in effective manner
(Verzuh, 2015).

required in the operation
department of delivery.
Recommendations
 It is necessary for company like TESCO to introduce new technologies to work in
smoother manner instead of using existing innovation methods. This will help to gain
additional advantage from the market.
 If company can be able to use just in time method then it will be helpful for them because
unnecessary cost will not occur and that will have a direct impact on profitability of a
company.
PART 2
Project Life Cycle
Number of phases are there in product life cycle for example initiation, planning, execution
and closure which help to accomplish the goals of an organisation.
Business Case:
BASIS DESCRIPTION
Importance
Moonlight Company is involved within the field of production,
marketing and even sale of various types of fruit drinks. This drinks
are good for consumers as it helps them to refresh whenever they
are tired. Even it is healthier too for customers health.
Target Market
The main target of company is to focus on new generation who
wants loves to maintain their health and old age people who
requires the healthy drinks to keep them healthy (Kerzner, 2019).
Cost Benefit Analysis:
Particulars Situation 1 Situation 2
Costs 100000 120000
Benefit 0 20000

(BEP point)
Project Initiation:
The first stage of product life cycle is helpful in finding the objectives, basic requirement
and opportunity that helps to earn profit in any of the business. It is necessary because with the
help of internal members of the company, it becomes easy for organisation to solve any of the
issues which arise in front of them.
Objectives
The major object of Moonlight Company is that how they can grab
the market show the sale can be increase through which automatic
promotion ca also be done easily. Their target is almost 5% of total
share to increase the sale (Simpson and et. al., 2015).
Strategies
Here, company can use price penetration strategy to their good
where organisation will also focus that how they can product the best
energy drink. In addition, online marketing will be the key factor for
success.
At this stage, it is the responsibility of project manager to submit the report to higher
authorities. In addition, Moonlight Company take the help of six sigma methodology so that their
functions can be improved. Also, it will reduce the overall cost of the company.
Project Planning:
This is the stage in which there is the requirement of detail planning that what are those
innovative products which can help to grow the goodwill of organisation. Here, top level
management are required to take active participation as they are the who have complete detail

about the project of a company. They can play the crucial role in preparing the budget of a
company. Also, project planning Moonlight is mentioned below:
Cost
The approximately cost which company will have to incur is £95,000
as various sources and technology will be required in it (Slack and
Brandon-Jones, 2018).
Communication
Here, company have selected the both ways communication in which
both management and employee’s will get the opportunity to explain
their points.
Quality
Upgraded technology is being implemented by Moonlight so that
product can be manufactured in suitable way in appropriate time
period.
Scope Project scope is the most appropriate workforce for employees and can
retain quality and contribute to sustainable development.
Here, it is necessary for organisation to use lean principle so that find the solution to
reduce the quantity of wastage product which will automatically reduce the cost. In addition,
company have the option to apply autocratic leadership rather than democratic because roles are
needed to be divided in it which is available only with top management. Gantt chart and
breakdown structure is presented below.
Gantt Chart: •••••••

Work breakdown structure:

Project Execution:
This is the stage where it is necessary for organisation to implement the plans and polices
which they have decided. Managers have the role to give appropriate training to each and every
employee’s so that they can perform better. Organisation has the option to select Zoho project
which tells that how plans and polices are needed to be executed. In addition, company has the
option to select Total Quality Management as it helps to keep the record of stock of an
organisation (Maylor, Turner and Murray-Webster, 2015).
Review and critique the effectiveness of the PLC in application to your project
Project life cycle (Plc) is one of the necessary project is required to conduct defined
product properly and accomplishing defined goals or targets. This life cycle is necessary to led
full and productive accomplishment of the project into defined manner or purpose. In context of
Tesco, in house project is need to be evaluates or manages into the defined manner. As, this is
the large scale project, hence in that situation valuable or product models will be utilised such as
waterfall model. This model is used to evaluates Plc stages from starting of this and till it’s the
ending. As the project officer, it’s the primary responsibility to takes right decision making on
completion of this project work successfully (Heldman, 2018). As, project officer of the Tesco,
discussion of this model is as follows:

Requirement: This stage deals with analyse and requirement of resource like funds, manpower,
technology and strategy etc., which is valuable in case of starting for this in-house project. To
give key deliverables to the Tesco, six sigma approach is useful to decrease occurring of the
wastage, errors and achieves deliverables of this project. By using six sigma, chances of increase
of actual output is probably high and can be led to saving of cost, time and excess resources
(McArthur, 2015).
Design: This second stage deals for developing perfect design and structure, with
purpose of completing this in-house project within effective time frame. This is the part of
planning stage for PLC, in which company has to be utilises its lean manufacturing tools to
decrease wastage and opts for democratic leadership style which is the perfect style and rise an
employee’s participation to accomplishes project target and led this work to be complete. In this
stage, planning is need to be evaluates and develops strategy to complete it.
Development: This stage deals to develop and executes this whole project in a
appropriate manner. While execution of this project, Tesco should go for TQM approach which
mainly focuses on giving quality of in house structure to an employees of the Tesco and focuses
on democratic style of leadership has been applied, so that each employees could positively
contributes towards the success of the project. Project manager is required to evaluate al it’s the
resources and injects development of this project. Along with this, Tesco can go for Just in Time
Inventory (JIT) tool to reduction of waste to inventory storage cost and also gives quality &
enables cost effective structure to the Tesco.
Testing and Maintenance: In this last step of the waterfall model, final testing and evaluates of
the in-house structure of the Tesco will be done and right decision will be done in respect of the
same. Thus in order to gain the whole scenario strategic leadership is used within respective
company. Also, this method is suitable to deal with situation as well as removal of the barrier out
of this project (Kundu and et. al., 2015).
Effective of quality tools for this project: In this, tools such as TQM, six sigmas, lean
manufacturing etc., will be undertaken with help of which quality for this project would be
maintain.
Six sigma: This is mainly focused on improving quality and brings improvement into
process of manufacturing or adaptation. This technique is required during arranging resources
and checks how reliable and feasible they are to continue this project on time.