Analysis of Operations Management Strategies in Three UK Companies

This report provides an in-depth analysis of operations management strategies employed by three UK-based companies: WH Smith, Jaguar Land Rover (JLR), and Prêt a Manger. The report begins with an overview of operations management and its contribution to business strategy and customer demands, followed by an analysis of the operational functions of JLR, Prêt a Manger, and WH Smith. It examines the significance of five performance objectives underpinning effective operations management, specifically focusing on WH Smith's approach to cost reduction, digitalization, customer reach, promotional campaigns, and efficiency. The report then delves into quality management activities, including TQM at WH Smith and JLR, alongside an evaluation of quality systems and operations, identifying potential improvements. The report concludes with an evaluation of supply chain management and the role of IT systems in the context of these organizations.

Introduction
Operation management is important for every business organization no matter what size, industry it
belongs to. The companies that follow proper planning in operations management are more
successful than those companies that do not properly plan the operation management. In this
assignment operation management approaches and strategies used by three different organization
will be discussed in detail. Operation management significantly contributes in the success of the
company. It also helps the company is gaining sustainable competitive advantage. This assignment
also discusses the role of quality management in achieving objectives and goals of the company.
The assignment end with the evaluation of the supply chain management and the role of IT system
in supply chain of the organization. The three companies discussed in the assignment includes WH
Smith which is a UK based retail company, Jaguar which is the UK based luxury vehicle brand and
Prêt a Manger is a sandwich shop chain based in the UK.
Task 1
1.1 Explain and evaluate how operations management
activities contribute to your organization’s business strategy
and customer demands. Within your response you should:
Operation management is a set of management activities performed by the organization to
convert the input resources into output products and services. The input resources includes
materials, machinery, supplies, capital, human resource, technology and information. The
process of transformation includes activities through which output is produced that is valued by
the customer of the company. Hence, for operation management the concept of adding value
is crucial. Value added to the resource input by the operations helps the company in earning
profits. In short, for the success of the company efficiently managing the operational activities
is essential. Managing efficiently the operations of the company is also essential to produce
output (products and services) that can satisfy the customers.
1.2 Analyze the operations functions of two selected
organizations other than your own company
Operations functions of Jaguar (JLR)
Jaguar Land Rover is a luxury car owned by two leading British automakers that design
and produce automobiles in the UK. Now JLR is a part of Tata Motor India’s leading
automaker. One of the world’s leading sports car producer globally is JLR. IN the
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United Kingdom JLR is a well-known for producing premium 4x4’s. In the 60 year long
history of JLR it is specifically known for its association with the planet. The company
has adopted different methodologies to minimize the impact of its cars on earth mainly
through e-Terrain advances, more viable assembling lanes, Co2 balancing and so on.
The maintainability structure of administration
Operation management is one of the significant part of all the organization regardless it
size and industry. In JLR operation management is involved in all the activities.
Management of the company is responsible to ensure all the operation are working as
anticipated. JLR also considers operation management as a tool to manage the
production capacity, measure the performance, reduce cycle time, maintain high
quality and reduce the overall cost of the product.
In the product department of JLR operation Supervisor is responsible for managing
and controlling all the production tasks. The managers of all the department are
responsible for implementing operations management in their respective departments.
The aim of JLR is to earn high revenues while minimizing the use of resources
available to the company. To achieve this JLR develops and implements different
operational management strategies. Once these strategies are implemented managers
monitor the outcomes and take corrective actions if necessary.
Operation function at PRÊT A MANAGER
In French Prêt a Manger means ready to eat. Prêt a Manger is a famous UK based
food chain found by Jeffery Hyman in 1984. In operations management of the food
chain a crucial role is played by the store manager. The manager has the copy of the
projected sales of the day. Based on the projected sales manager coordinates with the
suppliers for the raw material. The manager also coordinates with the production team
and informs them the projects sales so that can accordingly do preparations. Prêt a
Manger is a brand known for its quality and fresh food. It is the responsibility of store
manager to ensure the quality and freshness of food being served to the customers. It
is also the responsibility of the manager to ensure that employees proved the services
to customer in timely manner and all the operation of the store are running smoothly.
The operational functions of the store include food preparation for which proper kitchen
staff is recruited. Another operation in store is order taking where waiters take order
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from customers and deliver it to kitchen. The manager based on the requirement work
at different levels and also from time to time takes feedbacks from customers.
Operation function at WH Smith
In all the activities performed by WH Smith an important role is played by operation
management. Efficiency and effectiveness in all the operation of WH Smith is
maintained with the help of operations management. In WH Smith efficiency means
proper use of all resources (human resource and capital etc.) in each and every activity
of the company. Trough operation function the management ensures that it achieve the
main goals of the company which are to generate high profits and maximize value for
shareholders. The cost is reduced by the management of the company by stopping the
projects that are less profitable. This means that WH Smiths effectively achieves its
objective of being a market leader by using minimum resource and achieving maximum
output. Effective and efficient operations are measured by productivity, capacity, and
working capital utilization. Effective operation management helps the company in
achieving an efficient production system.
In WH Smith it is inevitable to ignore the importance of management, control and
coordination of operations management. There are various activities included in
management, control and coordination, these activities ensures that the objectives of
the company are attained effectively and efficiently. Coordination and control are the
activities that company use to systematically determine what the company is doing
right and wrong. This helps the company to overcome issues and take corrective
actions. Some of the control and coordination activities of WH Smith includes
evaluation product, product development, sales and services.
1.3 Explain the significance of the five performance objectives
that underpin effective operations management.
Effective operation management is underpinned by five performance objective: these
five performance objective are discussed in detail below:
1. Reducing Cost
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The first performance objective of operations management at WH Smith is reducing
cost. The aim of cost reduction strategy of WH Smith is to accomplish economic
strength. WH Smith reduces is cost by discontinuing the projects that are less
profitable, this creates opportunity for the company to invest and develop projects that
are profitable and will help the company in growth.
2. Digitalization
The Second performance objective of operations management at WH Smith is
digitalization. The major source of the success of WH Smith is its capability to cope up
with the changing technological trends in the market. WH Smith understand the
importance and demand of internet shopping in this era and has introduced online
shopping which enables its customers to buy and receive the products at their door
step. Online shopping is also one of contributed in the success of the organization.
3. Reaching More Customers
The third performance objective of operations management at WH Smith is improving
the customer reach. WH Smith to increase its customer base and making it product
available to customer has started operating it stores in different location. Hence
customers can easily access the products and services offered by the company and
attract potential customers.
4. Promotional Campaign
The fourth performance objective of operations management at WH Smith is
promotional campaigns. WH Smith have effectively used attractive promotional
campaigns to attract customers and increase the overall sales of the company. These
promotional campaigns also attracted potential customer and helped the company to
grow further in the market.
5. Focusing on efficiency
The fifth performance objective of operations management at WH Smith is efficiency.
The focus of management of WH Smith on efficiency in all the operations performed
has significantly contributed in the success of the company. To achieve efficiency at
every level of the organization proper strategies have been adopted by the
management. The management also ensures that all the strategic decisions taken by
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the company leads to efficiency so that growth and high productivity can be achieved
by all the employees working within the company.
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TASK 2
Explain and evaluate:
2.1 How a range of quality management activities contribute to
your organization’s performance
WH Smith sells books along with various stationary products. To ensure the quality of
these products the company follow TQM (Total Quality Management). There are set
standards that define the quality of the products. These standards are followed and
measured to ensure that quality of end products of the company meets standards set.
Necessary corrective actions are taken by the management in case the products fail to
meet the quality standards set by the company. This system helps the company to ensure
that quality of the products in maintained.
2.2The quality of systems and operations in two other, selected
organizations and identify possible improvements.
Quality Management at JLR
Business Protection and Security: Business protection ensures the safe and secure
environment for the suppliers, customers, employees. It also ensures that privet data,
notoriety and item of the company.
Corporate: Many organizations fail is his part of the business. Mainly companies only
focus on the critical part for the success. However JLR focuses on corporate techniques,
product cycle and marketing strategies to ensure quality in all the operations performed by
the company. The management of JLR ensures that all the operations are performed to
meet the corporate social responsibilities of the company.
Government Affairs: To ensure quality of the all its operation, the management of the
company ensures that the company consider all the political aspects of the market in which
it is operating as these factors can impact the operational functions of the company.
TQM at JLR: JLR uses total quality control as a management tool to maintain and improve
the quality of all the automobiles produced by the company. Implementation of total quality
management helps JLR to deliver high quality products and services which eventually
increases the performance of the company. Kaizen is used by the company as its total
quality control tool. The Kaizen system helps in connecting everyone from management to
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employees in the company. JLR through TQM outs an effort to implement consistent and
integrated strategy to improve the overall performance of the company. Hence, leading to
improved customer satisfaction by achieving the organizational objectives such as maintain
quality, cost-effectiveness, improve human resource, product development. In JLR the
Kaizen strategy is used as a tool to supervise the operation which help in improving the
performance of management at every level of the organization. By implementing Kaizen
JLR also focuses on the people as it understands good quality of employees of the
company will result in quality products and services.
Quality Management at Prêt a Manger
The aim of quality management is to maintain and improve the quality of products and
service provided by the company. Quality management efforts made by the company are
considered effectively only if the methods adopted are able to meet the quality expectation
of the customer and satisfies the customer. The quality management process of Prêt a
Manger is considered ineffective if it fails to meet the quality expectations and needs of the
customer. The main focus of Prêt a Manger in quality management is to inventory
management as any inconsistence in the inventory management will hinder the operation
of the company and it will fail in providing customer service as per the needs and
requirements of the customer. For instance if inventory is short Prêt a Manger will not be
able to provide the food order by the customer leading to customer dissatisfaction and it
will not be able to retain the customers. Similarly if there is excess inventory is maintained
by the company it will lead to spoilage of perishable items increasing the inventory and
cost of raw material (Cleland andIreland, 2006). The list below indicates the key
responsibilities of operation management:
 Developing strategies
 Monitoring flow of work
 Developing policies
 Making strategic decisions
Quality management is necessary for the company to develop brand name among the
customer. To maintain and improve the quality of the product the management of Prêt a
Manger can seek advice from the customer this will help the company to understand the
quality customer expects from the company and can develop strategies that can achieve
the objective. Prêt a Manger can also ask the advice of supplier to maintain and improve
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the quality. Suppliers can guide the company about the quality trend in the market and
what the competitors are doing.
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Task 3
3.1 Explain and evaluate the contribution of information
systems to procurement and supply chain efficiency in chosen
organizations. Within your response, you should cover the
advantages of e-procurement and IT systems for supply chain
efficiency using a minimum of two other organizations for
examples, as appropriate.
Contribution of IT in SC of WH Smith
The main concern of supply chain management is the flow of information and products
among the organization in the supply chain. Organization can now easily access the
information from both internal and external source due to rapid development in technology.
Advanced technology helps organizations like WH Smith to coordinate all the activities
within the supply chain. Implementing technology in supply chain has also helped the
company in reducing the cost of information. The figure below illustrates integrated supply
chain model followed by WH Smith. The bi directional arrow indicates the adaptation of
reverse material and feedback information flow. The managers of WH Smith understand
that technology is far beyond computers, technology includes factory automation,
communication technology, and data reorganization system etc.
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Till 1980’s most of the organizations used paper based approach to share information
among the functional areas of the organization and among the supply chain members of
the organization. However with the developments in technology WH Smith understood that
paper based approach is time consuming. During the paper based approach information
was not considered as critical part of the supply chain by WH Smith as it failed to
understand its importance and value to supply chain members. Now, WH Smith has
implemented the IT infrastructure which enables the company achieve competitive position
by reducing the cycle time, redesigning the cross- functional process. Supply chain
relationships are also maintained by WH Smith with the help of information technology. In
the importance of information there are mainly three factors that have been strongly
impacted this change. At first, satisfying and pleasing customers has become obsession of
the company. It is now critical to provide the customers with best, efficient and effective
services. Secondly, information is considered a critical factor for managers to be able to
reduce inventory, human resource required. In strategic planning a major role is played by
the information.
E-procurement
Organizations like WH Smith and JLR gain main benefits by implementing the process of
e-procurement in the supply chain. Some of the benefits gained by both the organization
are as follows;
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Reduced Transaction Time: E-procurements allows both WH Smith and JLR to complete
individual business transaction at faster speed. Employees are not restricted to complete
by the office hours and at time does not even required human intervention. Hence
allowing the employees to complete the transaction on the basis of real-time. In short,
downstream process are not restricted as they do not have to wait for transaction to
complete.
Electronic catalogues: E-catalogues have enabled the organization to market the
products electronically. It is great tool for both supplier and organizations. E-catalogue has
led to price transparency which helps the organizations to compare prices of different e-
catalogue suppliers.
Increased Standardization: Development of electronic catalogues has led to
development of standardized products by some suppliers, enabling the buyers to compare
the offers in the e-catalogue. As it is difficult for the organization to evaluate the product
quality without the samples hence the management of both the organizations have to be
extra careful when comparing the offering in the e-catalogues.
Wider Spread Supplier Bases: E-procurement portals are web-based this allows WH
Smith and JLR to search suppliers globally. This means that organizations can select from
a wider range of products and services and if the product is not available in domestic
market organization can procure internationally. However it is necessary for both the
organization to consider time and cost related to international procurement. At time the
products are available in domestic market at higher price, these products can be procured
from other nations at a lower rate allowing organization to control the product cost.
Simplified Global Procurement: E-procurement application support different languages,
currencies, taxation, shipping regulations and financing making it simple for both supplier
and buyer globally to easily communicate and cooperate with each other.
Conclusion
Operation management of WH Smith helps its management to achieve the strategic
objectives and goals of the company. By implement IT system within the supply chain WH
Smith maintain strong relationships with all its supplier and customers. Operation
management and implementation of IT in supply chain helps the company is effectively
managing and controlling all the operations of the company. Effective operations
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management also helps the management in decision making process. Operation
management is significant for successful operation of WH Smith as it is able to achieve
competitive position through operations management.
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