Operation and Project Management: Tesco's Drone Delivery PLC Analysis

This report provides a comprehensive analysis of Tesco's drone delivery project, focusing on the application of the Product Life Cycle (PLC) model. It begins with an introduction to operation management and its significance for organizations, using Tesco as a case study. The main body of the report details the application of each stage of the PLC—introduction, growth, maturity, and decline—to Tesco's drone delivery project, including the development of a business case, project plan, and a Gantt chart. Furthermore, the report reviews and critiques the effectiveness of the PLC in the context of the chosen project using system dynamics methodology, evaluating the model's reliability and validity. The conclusion summarizes the key findings, emphasizing the importance of operation management and the PLC in product development and market success. The report also includes references to supporting literature.

OPERATION AND
PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P3. Apply each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project e.g. a business case, project plan, work breakdown
structure.......................................................................................................................................3
P4. Review and critique the effectiveness of the PLC in application to the chosen project
using appropriate theories, concepts and models........................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Operation management is very essential for an organisation. It can be described as area of
management that deals in developing and controlling production process along with redesigning
operation of business in producing products and services. This report is focused on Tesco which
is a multinational general merchandise and grocery retail company. The respective organisation
operates its functions in different part of the world including UK, India, Thailand, Ireland, etc.
(Turner, 2014). Similarly, the report will have a brief discussion about the product life cycle of
improved delivery services of Tesco. Furthermore, effectiveness of PLC on the project will also
be discussed.
MAIN BODY
P3. Apply each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project e.g. a business case, project plan, work
breakdown structure.
Business case:
Tesco is a multinational organisation that deals in variety of products and services. Along
with this, it has numerous subsidiaries like Tesco mobile, Tesco Bank, etc. According to the
current Scenario, Tesco is looking forward to improve its product delivery system along with
enhancing quality of goods and services. In order to achieve this objective, Tesco is looking
forward to introduce new delivery method through drone technique. With the help of drone
delivery system, Tesco will be able to deliver products in lesser time and assure safety of
products. Similarly, this will help in improving quality of services of the respective company.
Tesco will be able to earn trust of customers and enhance reputation of Tesco in international
market.
Furthermore, product life cycle of new technique can be practised which will help in
identifying growth of business from the introduced services. Thus, PLC of Tesco is mentioned
below:
Product Life cycle: It is a tool which helps in understanding stages of product from the
stage of introduction to the end stage of being discontinued (Ramanathan, 2012). Additionally,
this method helps organisation while planning for developing new products and making market
hike for existing products. There are four stages of PLC which are introduction, growth, maturity

and decline stage. As Tesco is looking forward to improve its service delivery system through
new technique that is using drones, Product life cycle of Tesco related to its new technology is
mentioned below:
 Introduction Stage- This is one of the most expensive stage for the company as it deals
in launching new product or services. Similarly, there are various other factors that
increase the cost of launching new goods and services such as Research and
development, marketing, consumer testing, etc. For the launch of new technology as
Drones in delivery management, Tesco requires a high amount of funds along with
expertise of other factors such R&D, consumer testing, etc. This technology provides a
competitive advantage to Tesco which helps the company to stay at the top in retail
market (Gunasekaran and Ngai, 2012.). Similarly, it is important to improve quality of
products and services for which Tesco needs to alter their method of production through
technology that is practised to produce products along with raw materials which will help
in improving the quality of products and services.
 Growth Stage- This is a stage where sale of products or services paces up which leads to
increased profit earning for the company. Thus, Tesco can invest more funds in
Illustration 1: Product Life Cycle
Sources: Product Life Cycle, 2019.

promotional activities for its new delivery management strategy which will assure high
profit margin for the respective organisation. Some of the promotional activities that
Tesco can enrol are advertisement, Digital promotions, social media marketing, etc. This
is the stage where customers starts getting aware about the new services and other
advancements that Tesco has introduced.
 Maturity Stage- This is the most stable stage of Product life cycle as it is the time when
sales of products and services are at its maximum level. Also, demand of these services
are high duet to which organisation achieve a state of temporary stability (Fleming and
Koppelman, 2016). This stage is most favourable for Tesco as drone delivery services are
providing competitive advantage to the company and helps in attaining good hold on the
market. Similarly, these products are highly in demand by the customers. This is the stage
when Tesco is having an opportunity to earn upto its maximum potential through its new
delivery system.
 Decline Stage- This is the saturation stage of the services. This can be due to various
reasons such as customers shifting to other alternatives, new technologies in the market,
etc.. In the context of drone delivery system this stage can be up while organisation
having strong competitors, advancement of technology and so on. Thus, Tesco needs to
come up with new technological advancement in existing techniques. Also, price of the
services can be reduced in order to make profit. Similarly, decision regarding
continuation of products and services are also taken along with further strategies for
improving sales of the companies are analysed.
Project plan
 Cost – It can be the most effective strategic plan of Tesco that assist them in enhancing
their business profitability on desired level. For implementing drone services firm
requires to raise their funds at approx. £60,000 on estimated limits.
 Scope – Concept of innovation always introduced new ideas in market. New idea of
Tesco as drone services will be effective for firm that assist in enhancing business
profitability by maximising delivering of products easily.
 Resources – Drone services requires effectiveness of appropriate resources as
technology, machinery, manpower and so on.

Gantt Chart- It is a type of bar chart which studies scheduling of project. Similarly, it
reflects dependency relation between current schedule status and activities. Thus, Gantt chart of
product life cycle in context of Drone delivery services will study stages of respective model by
which time consumed in the process of introduction, growth, maturity and decline stage can be
measured. Thus, Gantt Chart of Tesco Plc. Is discussed below:
P4. Review and critique the effectiveness of the PLC in application to the chosen project using
appropriate theories, concepts and models.
The effectiveness of product life cycle can be analysed by applying system dynamics
methodology. It is a methodology which frames and discuss different system operations such as
non-liner effects, loops feedback, situation of system, etc. (How to use the Product Life-cycle
model, 2019). It consists 6 steps which are defining problem, Conceptualizing, figuring model,
Simulation and reliability, validity test and policy making. Thus, respective model is discussed
below:

 Defining Problems- This stage consist a deep study about current situation in which
cause of the problem is focused. After evaluating the PLC model, it was found that
reliability on GPS system has been creating issues in tracking product delivery system
which is affecting service quality of Tesco.
 Conceptualizing- While practising these services, it has been found that many customers
complaint about the tracking system of Drone delivery due to which customers faced
inconvenience. The dependency on GPS system has become a hurdle for tracking system
of Tesco.
 Figuring model- From the above discussion, it can be concluded that Product life cycle
model is not an appropriate model for calculating accurate life cycle and results of the
product life. As the details of problems such as GPS technology for drone tracking has
not been taken in consideration. This shows that details of the products are not been
measured. Thus, product life cycle model is not a reliable model to examine the results of
life-cycle of goods.
 Simulation and reliability- From the above discussion, it can be analysed that PLC
model is not a reliable model for achieving effective results (Ramasesh and Browning,
2014). Thus, Tesco needs to make further strategies which includes a detailed study about
the subject.
 Validity test- PLC model have a life-cycle of an year. However, the time period cannot
be measured as there are many factors that affects the life cycle of a product or service
such as new technology, new alternative in market, etc. These factors can affect the life
of drone delivery service in the market.
 Policy making- By evaluating the results and its validity, it is required to make new
policies and strategies which can assure a positive growth of product life. Similarly, it is
important to have a strong promotional strategy which can influence the customers and
affect their buying behaviour.
Thus, by applying system dynamic method, it can be analysed that the effectiveness of
product life cycle model is reliable. Similarly, it can also be said that various strategies needs to
be planned for service launching in Tesco which can focus on details about the product and
service in order to assure customer satisfaction (Pemsel and Wiewiora, 2013). Furthermore, it
will lead to profit earning for Tesco.

CONCLUSION
From the above discussion, it can be analysed that operation management is very
important for an organisation in order to survive in the market. Also, it helps in profit earning for
the company. Similarly, Product life cycle helps in understanding the life cycle of new product
and services that are launched by the company along with recreating hike of existing products in
the market. It can also be concluded that companies should keep investing in new products and
services in order to attract more customers and retain existing loyal service users of the firm.

REFERENCES
Books and Journals
Turner, J. R., 2014. Handbook of project-based management (Vol. 92). New York, NY:
McGraw-hill.
Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
Process in operations management. International Journal of Production
Economics. 138(2). pp.215-241.
Gunasekaran, A. and Ngai, E.W., 2012. The future of operations management: an outlook and
analysis. International Journal of Production Economics. 135(2). pp.687-701.
Fleming, Q. W. and Koppelman, J. M., 2016, December. Earned value project management.
Project Management Institute.
Ramasesh, R. V. and Browning, T. R., 2014. A conceptual framework for tackling knowable
unknown unknowns in project management. Journal of Operations Management. 32(4).
pp.190-204.
Pemsel, S. and Wiewiora, A., 2013. Project management office a knowledge broker in project-
based organisations. International Journal of Project Management. 31(1). pp.31-42.
Beringer, C., Jonas, D. and Kock, A., 2013. Behavior of internal stakeholders in project portfolio
management and its impact on success. International Journal of Project
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Mir, F. A. and Pinnington, A. H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
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Weglarz, J. ed., 2012. Project scheduling: recent models, algorithms and applications (Vol. 14).
Springer Science & Business Media.
Online
How to use the Product Life-cycle model, 2019. [Online]. Available
through:<https://www.smartinsights.com/marketing-planning/marketing-models/
product-life-cycle-model/>.