Primark's Operational Efficiency: A Continuous Improvement Project

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Project and Operations
Management
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TABLE OF CONTENTS
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1, M1 Conduct a review and critique of the implementation of operations management
principles within the organizational context................................................................................2
P2 Prepare a Continuous Improvement Plan (CIP) based on the review and critique of
operations management principles within the organization context............................................6
M2 Analyse the effectiveness of a continuous improvement plan using appropriate theories,
concepts and/or models................................................................................................................8
D1 Apply appropriate theories, concepts and/or models to justify strategies of a continuous
improvement plan for achieving improved efficiency.................................................................8
LO3................................................................................................................................................10
P3 Apply each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project.................................................................................10
M3 Analyse the rationale for the project methodologies, tools and leadership within the PLC
for the given project...................................................................................................................12
D2 Critically evaluate the PLC through a practical and theoretical exploration of its
effectiveness..............................................................................................................................13
LO4................................................................................................................................................14
P4, D3 Review and critique the effectiveness of the PLC in application to the chosen project
using appropriate theories, concepts and models......................................................................15
M4 Critically analyse how the use of appropriate theories, concepts and models in the PLC
will differentiate between large and small-scale projects..........................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
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LIST OF FIGURES
Figure 1: Process of Operations Management.................................................................................3
Figure 2: Mass Customization.........................................................................................................5
Figure 3: Lean Principles.................................................................................................................7
Figure 1: WBS for Launching and developing 58 inch television................................................12
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LIST OF TABLES
Table 1: Project Milestone.............................................................................................................16
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Introduction
Operation and project management is very important aspects in the business organization for
improving the quality of product and attracting the customers for enhancing the sales and
profitability. The current report will discuss the topic of operation and project management by
discussing the case study of Primark that is fashion or clothing retailer. The current report will
discuss and highlight different operations management approaches for improving quality of
products and minimizing the production cost. The report will also discuss the effectiveness of the
product life cycle and continuous improvement concepts for developing and accomplishing the
project successfully.
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LO1
P1, M1 Conduct a review and critique of the implementation of operations management
principles within the organizational context
Operations and operations management
Operations within the business can be defined as transformation of resources as well as input into
appropriate products and services so that customers can be served in most effective manner.
Business organizations like Primark include two or more operations that form a process and is
categorised as processing, inspection, transport and storage (KS Rao Kunchala, 2017). On the
other hand, operations management can be defined as most important area of management that is
associated with controlling and redesigning of business operations related to production of
products and services. Operations management support the business to utilise resources such
money, raw material as well as other resources. This will support Primark to improve the overall
productivity.
Process of operations management
The process of operations and management includes input, relevant changes as well as desired
productivity. Input can be defined as required resources that are important for conducting
business operations such as personnel, purchasing of products as well as customers. In context to
Primark, transformation can be defined as process that takes input along with the time it takes to
serve the individual customers. For an example, cashiers or retailers related to Primark provide
assistance to customers while buying products and also support them while handling other issues.
Output can be defined as customer satisfaction or dissatisfaction.
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Figure 1: Process of Operations Management
(Source: KS Rao Kunchala, 2017)
Primark undertakes the operations and management process that includes collection of products
by customers, billing procedure and final checkout to the customers (Uhl and Gollenia, 2016).
Regarding this process, there are certain changes that are essentially to be implemented. For an
example, lengthy process of scanning of products selected by the customers must be reduced so
that waiting time can also be reduced. This can be improved by providing training to their
employees and also make to change some of their software and tools for making check out
process faster.
Relevant theories of operations management
Taylor’s theory of scientific management
It support analyses as well as synthesises of workflows and aims at improving financial flow as
well as labour productivity. The theory helped the Primark to bring some changes for better
process of management. It has been identified that Primark is currently facing issues related to
disputes among management and employees of the organization that negatively influence the
production process of the business (Waring, 2016). The theory successfully supports Primark to
define roles and responsibilities to employees by assigning authorities to skilled and responsible
person.
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The theory is advantageous for Primark as it focuses on completion of task as compared to
working conditions of the employees. Work assigned was guided and instructed by managers and
therefore productivity was increased. However not looking over working conditions is one of its
major disadvantages. Managers are assigned with entire responsibility and are motivated in terms
of only money and no other benefits.
Lean production
To improve the production facilities, Primark has successfully adopted methods for reducing
waste while ensuring quality of the end products. With the help of lean production techniques,
business makes minimum use of resources and management authorities takes initiative of
providing training to all its staff members to make them aware about the concept. For an
example, organization buys clothing products in bulk to experience the benefits of economies of
scale. Primark uses off-season factory time to gain the cost benefits and further sell products at
lower price as compared to its competitors (Rinehart et.al.2018). This supports Primark to
enhance customer base.
Lean production is advantageous for Primark in terms of reducing waste that further provides
cost profits and also support enhancing customer relationship and also enhanced production
efficiency. The process includes bulk production but issues like employee strike, quality errors;
etc might affects the brand image of Primark. In addition to this, lack of clear understanding
about the process of lean manufacturing leads to dissatisfaction of customers.
Mass Customization
Mass customization is the theory that deals with personalization as well as customization of
various products as well as services on demand of customers. It offers products at price of mass
production. The most effective way to carry out mass customization to provide complete package
the product and facilitate customers to subtract or add some specific features. For an example,
Primark customizes T shirts in bulk on demand of its customers.
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Figure 2: Mass Customization
(Source: Mass Customization, 2019)
It is advantageous for Primark in terms of increased product sales as well as higher customer
satisfaction because of few modifications in the product. Customer satisfaction further leads to
put positive impact on sales and reputation of the organization (Mass Customization, 2019).
However it is impossible for the organization to pre stocks the products and therefore waiting
time from placing of order till shipment increases.
Agile Manufacturing
The theory is applicable to the business organization that focuses on development of process and
techniques that support business to respond to customer demands and market changes in much
faster manner while controlling the overall cost and quality. Primark has higher focus over
building of extensive business and supplier networks for securing its supply chain flexibility. Its
network in UK, Europe and Asia help the organization to respond in quick manner within the
changing fashion industry with the effective use of resources. It utilises its supply system as that
market fluctuation can be responded in an effective manner in terms of its production capacity.
The process helps the organization to keep the constant flow of required information within the
supply chain that further ensures production process to show its highest potential. The process
also supports manufacturers to develop the best product while focus on changing market
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demand. However its operations are not much clear and therefore it is challenging in terms of
managing resources, Time and other factors related to production by Primark.
Relationship between operations and other functions
Major functional areas of Primark are operations, marketing and finance. Finance function is
liable for maintaining the records of funds for appropriate functioning of operations and related
tools and equipments (Hitt et.al.2016). The function cannot work without focusing on needs of
operations. Marketing function helps to increase the demand of products and these goals will not
be attained by the Primark if customization needs, production capacity and other activities
related to operations are not identified
P2 Prepare a Continuous Improvement Plan (CIP) based on the review and critique of operations
management principles within the organization context.
Continuous Improvement is the philosophy that aims at continuous improvement of operations
within the organization. In context to Primark, Continuous Improvement focuses on minimising
the length of time to serve customers; minimises the generation of scrap and also on improving
issues related to customers as well as suppliers (Nelson et.al.2018). The application of lean
principles within the cycle of continuous improvement helps Primark to improve the
manufacturing process by reducing the cost and quality of the end products. It is effective in
generating value to the customers. Primark uses lean principles:
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Figure 3: Lean Principles
 By focusing on needs of customers and in this context it is important for the organization
to hire new employees so that customers can be served in an effective manner.
 Identifying the most appropriate process for accomplishing the work
 Managing and smoothing the process flow
 Reduction of wastage and inappropriate steps
 Empowerment of people for improving the process
 Conducting improvement activities in the systematic manner
Primark focuses on eliminating waste in terms of overproduction, reducing queuing time for
customers, unnecessary transportation, and excessive inventory and using the skills of employee
in the most effective manner. Along with the implementation lean principles, it is important to
focus on cross organization activities to enhance the capability of production process and
therefore Primark focuses on compatible workflow generation as well as collaboration with other
business entities with the help of technology.
Enterprise and Resource Planning or ERP
This is software that helps the organization to utilise integrated applications for managing the
business as well as functional activities that are related to technology and human resources. The
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software is used by Primark to manage its employees, inventory as well as customers. In addition
to this, the organization relies on ERP especially for supply chain management that includes
purchasing as well as manufacturing and distribution (Seethamraju, 2015).
Supply chain management (SCM)
It is software that is utilised by business organizations for transactions related to supply chain as
well as for managing relationship with suppliers. With relevance to Primark, it includes
processing of customer demands, order processing, inventory management, sales and
distribution, as well as supplier management.
Customer Relationship Management (CRM)
CRM helps the organisation in management of interaction with the customers to understand the
customer demands and grievances. This helps in building a strong relationship with customers,
increasing the sales and profitability of the organisation.
New product Development (NPD)
NPD is the process of developing products by understanding the demands of the customers and
to meet the competition posed by the competitors. The development is done so as to improve the
existing products and provide technological innovation. NPD is not limited to organisations only,
freelancers and sole traders also develop one off products for selling.
M2 Analyse the effectiveness of a continuous improvement plan using appropriate theories,
concepts and/or models
Total Quality management is an approach states that individual employee of the organization is
liable to maintain the highest quality of standards related to business operations. Primark has
brought significant changes in terms of technology for improving the functioning of employees
as well as outcomes to serve the customers. TQM has further helped the organization to improve
the team work and continuous development in terms of product quality. Kaizen is the important
process for implementing continuous improvement plan by exhibiting small and positive changes
(Ross, 2017). Primark with the help of this approach deals with teamwork, improved morale of
employees, personal discipline, quality of products and services, as well as help to identify
solutions for improvement.
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