Operations and Project Management: Tesco Case Study

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OPERATIONS AND PROJECT
MANAGEMENT
1

Contents
LIST OF FIGURES.............................................................................................................................4
INTRODUCTION............................................................................................................................. 5
LO1.................................................................................................................................................6
P1............................................................................................................................................... 6
PRINCIPLES OF OPERATIONS MANAGEMENT........................................................................6
M1............................................................................................................................................. 9
METHODOLOGIES OF OPERATIONS MANAGEMENT..............................................................9
SIX SIGMA.............................................................................................................................. 9
LEAN PRINCIPLES................................................................................................................... 9
LO2............................................................................................................................................... 11
P2............................................................................................................................................. 11
IMPROVEMENT PLAN...........................................................................................................11
M2............................................................................................................................................14
PDCA CYCLE..........................................................................................................................14
LO3............................................................................................................................................... 15
P3 AND M3.............................................................................................................................. 15
BUSINESS CASE.................................................................................................................... 15
PROJECT PLAN......................................................................................................................15
WORK BREAKDOWN STRUCTURE........................................................................................17
GANTT CHART...................................................................................................................... 18
LO4............................................................................................................................................... 20
P4 AND M4.............................................................................................................................. 20
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MEASURING EFFICIENCY OF PLC..........................................................................................20
SIGNIFICANCE OF PLC.......................................................................................................... 20
TECHNIQUES OF COST SAVING............................................................................................21
PRACTICAL EVALUATION OF PLC..........................................................................................22
CONCLUSION............................................................................................................................... 23
REFERENCES.................................................................................................................................24
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LIST OF FIGURES
Figure 1: Tesco Logo...................................................................................................................... 4
Figure 2: Project Life Cycle...........................................................................................................15
4

INTRODUCTION
Operations management can be defined as the method through which organizations efficiently
manage their operational process (Khanna, 2015). The concept of operations management is
being adopted by various organizations so that they can direct their operations in a manner
that maximum efficiency is gained.
Tesco is a UK based global retailer of groceries and is headquartered in London, UK. Tesco holds
a range of supermarkets, hypermarkets, superstores, etc. in over 6800 locations in the world
(Tesco, 2019). Founded in the year 1919, Tesco has expanded its business in 9 countries and has
been growing its business rapidly.
Figure 1: Tesco Logo
[Source: Tesco, 2019]
In this report, the importance of operations management in an organization has been studied.
The report would also cover the formation of an improvement plan through which
enhancement if the organization’s operations could be achieved. Application of the Project Life
Cycle would also be studied in this report through which a project could be successfully
completed. The report would also assist in the application of necessary theories through which
the effectiveness of the PLC could be gained.
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LO1
P1
Operations can be defined as the set of activities that are performed by an organization for the
achievement of the ultimate objective for which the organization has been established. All the
activities that are performed in an organization which leads to the achievement of the
organization's objective are known as the operation activities (Mahadevan, 2015). The
management of these operations activities is known as the process of operations management.
Operations management is a technique through which the operations can be managed for the
accomplishment of the aim of the firm.
PRINCIPLES OF OPERATIONS MANAGEMENT
Tesco has been implementing operations management so that it can efficiently utilize the
resources employed in the operations. There are various principles of operations management
which have been adopted by Tesco so that it can manage its operations efficiently ( Reid and
Sanders, 2015). In the following, a highlight over the principles of operations management that
have been adopted by Tesco has been given:
 Organization
Tesco ensures that all the different activities that are being performed through the
operations are interrelated with each other and can be predicted through each other.
 Reality
Tesco concentrates on the overall problem instead of emphasizing on the technique
which is being used as changing the problem would assist in changing the situation
instead of the technique (Heizer et al., 2017).
 Causality
Through this, Tesco is able to eliminate the main reason from which the problems arise
so that the root of the problems is ended.
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 Accountability
Tesco has set up the functioning of employees based on certain rules and regulation
through which the employees are aware of their accountability towards the
organization (Khanna, 2015).
 Humility
Through this, Tesco is able to understand the limitations that certain processes hold so
that they are not employed while conducting the operations.
 Control of Quality
Controlling the quality of the products that are being produced by the operations has
been ensured by Tesco so that their operational efficiency is maintained (Holweg et al.,
2018).
 Competition
Tesco has been analyzing the competition that the retail market holds so that it can take
the decisions of the operations accordingly.
 Customers
By developing a better understanding of the customers, Tesco is able to use the
information to maximize the satisfaction provided to the customers through its
operations (Slack, 2018).
 Change
Through the principle of change, Tesco is able to use the new methods according to the
changing requirements of the business so that its business can continuously grow.
 Success
For the different operations that are being conducted in Tesco, success is being defined
so that the employees stand with clarity of what has to be achieved through the process
of operations (Mahadevan, 2015).
The principles of operations management allow Tesco in overviewing all the aspects of
operations and allow the firm in gaining overall efficiency of the operational process. Through
the management of the operations, Tesco is able to design an appropriate strategy for
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achieving higher productivity of the operational services and control the activity quality (Slack
and Brandon-Jones, 2018). Proper management of operations by Tesco also allows the firm in
organizing the operational activities in a manner that higher output can be achieved in
minimum invested time.
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M1
METHODOLOGIES OF OPERATIONS MANAGEMENT
There are various other methodologies of operation management that have been applied by
Tesco to achieve higher efficiency in the operational activities. These methodologies of
operations management allow Tesco in implementing practical approaches to handling the
operations to maximize productivity and minimize the costs employed to achieve it.
SIX SIGMA
Six Sigma is a methodology which has been developed for attaining continuous improvement in
the business processes and measures success by reducing the number of defects that occur in
the operation process. Through this method, Tesco is able to limit the number of mistakes done
in the operational activities so that the time required for completion of a process can be
reduced and higher efficiency can be gained (Atmaca and Girenes, 2013). The application of the
Six Sigma methodology assists Tesco in defining the standards of quality that are to be met,
measure the quality of the current operational process, analyzes the same, improves the
required areas and controls the efficiency of the process. Through this method of quality
control, Tesco is able to provide a higher level of satisfaction to the customers and increase its
profitability.
LEAN PRINCIPLES
Lean principles are also a methodology of operations management by the application of which
Tesco is able to attain improved efficiency of its operations process (Jasti and Kodali, 2015). The
lean principles which have been applied by Tesco include five key elements, which have been
described in the following:
 Identifying Value
While managing the operations, this principle assists Tesco in determining the value
which would be provided to the customers through its operations. This principle helps
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Tesco in knowing the expectations that are to be met of the customers (Mrugalska, and
Wyrwicka, 2017).
 Mapping the Value Stream
After deciding the value of the products that would be provided to the customers, Tesco
defines the set of activities through which the value would be attained and the wastage
could be minimized. It includes all the activities which allow in meeting the value for the
customers.
 Creation of Flow
Once the activities have been decided, Tesco ensures that the flow of activities is
smoothly performed and it does not face any interruptions and utilizes the resources
efficiently (Jasti and Kodali, 2015).
 Establishment of Pull
By the smooth flow of activities that are being performed by Tesco, it is ensured that the
products are made timely available to the customers so that they can get it as and when
required.
 Pursue Perfection
After making the timely availability of products to customers, Tesco ensures that the
process which is being followed is continuously improved so that innovative measures
can be undertaken for improving the productivity of the operational process (Mrugalska,
and Wyrwicka, 2017).
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LO2
P2
IMPROVEMENT PLAN
Improvement plan can be defined as a framework which is designed by an organization to
structure the continuous improvement in its process (Mitra, 2016). With the help of an
improvement plan, Tesco is able to determine the areas of improvement and different activities
through which the improvement can be achieved. In the following, an improvement plan is
being made for Tesco:
Principles Improvement Areas Improvement Activities Time Required
Organization Due to international
operations, in certain areas,
synchronization could not be
maintained by Tesco.
Establishment of an
efficient communication
system is required to
overcome this problem.
2 Weeks
Reality Tesco is facing a low tendency
in emphasizing on the tool
(Reid and Sanders, 2015).
Scope of the vision of the
managers is to be enhanced
by requiring training
programs.
3 Weeks
Causality There are various issues being
faced for expediting and
urgent shipments.
The root causes of
problems are to be
identified to overcome
them within time.
3 Weeks
Accountabilit Employees are not willing to Development of team spirit 4 Weeks
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y take accountability of tasks
allotted to a specific team.
in the employees is
required to increase
accountability (Slack and
Brandon-Jones, 2018).
Humility Employees are not able to ask
for help when any problem is
being faced (Holweg et al.,
2018).
Managers of Tesco are
required to communicate
with employees and
provide them with the
flexibility to ask for
solutions when needed.
1 Week
Control of
Quality
Various deviations have been
found in maintain the
standard quality of
operations.
The key issues because of
which quality is not able to
meet the standards shall be
identified and resolved.
3 Weeks
Competition The firm is facing rigid
competition in the retail
sector (Slack, 2018).
Tesco must identify the
strategies adopted by the
competitors to understand
their ways of gaining
efficiency.
1 Week
Customers Tesco is unable to determine
the changes in the needs of
customers.
Communication training
must be given to employees
so that they can
communicate with the
customers to understand
2 Weeks
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