Assignment Sample on Operation and Supply Chain Management
Introduction
This particular assessment will help to understand the operation management of a particular organisation. Operation management is one of the major parameters of any organisation. The efficient management of the operation is necessary for any organisation. The organisation that is selected for the analysis is the “Tesco Plc.”. The report will help to understand the whole process that is involved in the company and how it helps the customers. Various parameters like “4Vs” will be used to analyse the performance. The use of various tools will make the process more efficient and effective. The organisation that is selected for the analysis is very efficient and productive. The viewer will be to understand the policies of the company and analyse them according to the data that is obtained. The report is very efficient and will cover all the necessary data that is mandatory to understand “Operation Management”. In every company, there are some issues, and this is not an exception. The issues are resolved by them, and that is possible because of the efficient management of the operations. The next section will help to understand more about the company and its background. Thus, the viewer will get an idea about the company profile and its history.
Background
Tesco was introduced in England in “1919 by Jack Cohen”. Tesco is Europe’s leading supplier today. It functions in Fourteen countries of the world and supports millions of clients regularly. Any of the business’s shops are Local, Express, Department store and Special variants in four categories. It has also widened its format to have included internet purchases at “Tesco” in recent days. Tesco’s core feature is to “give people a price for working engagement.” Tesco’s dream is to be a successful business. Tesco’s performance largely depends on a groundbreaking planning process, unique business style and effective production leadership, in comparison to its extensive experience and wide scope (Garavelli, et al. 2019). This report would explain the latest “operations management” of Tesco from three major perspectives, namely “operational strategies”, “architecture of operations and management”, based on the case study by Tesco. The report will address in detail its formats, global relations, low price strategy, controlling costs, card policy, system distribution processes, capacity planning and risk allocation. This is the history of the company, and the mentioned strategies will be mentioned (Bahroun, et al. 2019). The various parameters will help to understand the strategies of the company, and thus the analysis will be more efficient. The next section will analyse all the relevant information and the analysis.
Discussion
The retail sector should aim to progress the capacity of services and address growing preferences of customers to surpass their adversaries, with the foreign rivalry (Wong, et al. 2017). Tesco’s effective and aggressive “operational approach” has typically adapted positively to risk, competitiveness and uncertainty. The marketing plan of Tesco can be evaluated and analysed in depth from two aspects: “organisational strategy and business unit strategy”.
4Vs of Operation Management in Tesco
The 4Vs of “operation management” is essential for any organisation to succeed. This framework helps to differentiate between various operations, and thus, the analysis becomes more efficient. All the variables for the company are discussed below. The company also follows the parameters, and thus, they are successfully operating in the market.
Volume- The element of the volume of action is centered on the number of goods or services which that operation includes. In this report, the number of customers served is the consequence of the transformation phase (Wieland, A., 2021). There is undoubtedly a large number of users in Tesco relative to a small local business because Tesco’s costs in relation with small businesses are lower. This is when Tesco imports trade items, selling bulk cuts, distributor conversion costs and even quality reductions which are earned by buying bulk, which decreases the cost of the product. Going to consider that a smaller shop doesn’t buy volume raises in costs, thus growing the expense in effect. Thus, Tesco’s volume is lower than small firms.
Variety- “Variety dimensions” consider the following forms of operational goods or products. Tesco is a standard modus operandi, such that the variety is intermediate to small. Tesco staff are given a number of instructions, and they observe these protocols. Small carriage, customer care and accounting were included in Tesco’s selection of services. Tesco outlets are not ready to sell, nor will they provide the items that the customer asks for.
Variation- Dimensions of variation tackle changes in the product requirement over time. “Sine Tesco Express” is probably close to rural neighborhood’s, large cities, but mostly food, because of the fact that everyone absorbs foodstuffs goods on a routine basis, can’t really change tremendously. That being said, at “Christmas or Easter”, there may be some spikes in the request, but it is easily predictable. Therefore, Tesco will find improved asset use, low unit costs and stable demand grades.
Visibility- Visibility includes knowledge about the risk of attention of its consumers to custom fabrication. In Tesco, some processes are directly available to buyers, such as testing the goods, helping clients to assemble products in the stands, etc. Other processes are seen as the internal matters are resolved accordingly.
Operation performance Objectives
The five operation performance objectives of “Operation Management” and the analysis of the company on the basis of that are discussed in this section. This will make the analysis more efficient and productive.
Quality- “Tesco” is committed to bringing buyers high-quality products. They also give customers a high-quality service. The market is also maintained very calm and safe. Every once in a while, they recycle the old stuff. The sticker price repair is also very evident. It also has fantastic and accommodating interiors. The workers were very skilled, friendly and courteous to the consumers.
Speed- The high transaction time is stagnating back. It was because of the heavyweight in the shop at peak hours, even though the pace was slower at the off times. That being said, the rate of “Tesco” is higher than expected when it was requested at the house. The rate of quality of products was also better.
Dependability- “Tesco” has a high starting and closing time estimate. There’s enough parking from the outside market, which helps to conduct drivers named parks. The queuing time is a little complicated if there are just two tills for the charge (Wang, 2019). The refueling level is high for inventory levels. “Dependability” overall is intermediate to large.
Flexibility- A huge assortment of items, such as “Flexibility”, can be estimated by taking various facets that will highlight the lack of demand in respect of the company in my test case of “Tesco” had to find flaws with the having options products. Top labels or residential transactions were hardly preferred. The issue would be all over the market, and it felt a little heavy.
Cost- “Tesco Express” is a typical subject of modern urban grocery. Optimising companies improve the regional needs of the community while improving the business itself. It is a present-day combination, and “Tesco Express” has a very great performance level. The plan also involves the assistance of customers, the happy and enjoyable choice of consumers.
Operation Layout
The operation strategy is discussed below. The Operation Strategy that is followed for the “Operation management” is discussed in the section. The company that is selected for the report is “Tesco”. The operation strategy is mentioned below. The detailed steps are discussed below-
Product process type
The place of the types of challenges in the production system is primarily for the benefit of the financial assets. When paying a bill at “Tesco”, everybody walks the same course. Consumers must queue up in order to finance the fees. As a product, “Tesco” has both a service and a process level.
Service Process type
Professional services, service stores, and “mass services” are the three types of cost systems. “Tesco Express” is defined as a retail system as it contains a large number of payment systems, shorter processing time, structured system, and huge amounts. Mass systems are currently consumer but provide no choice.
Conclusion
To sum it all up, “Tesco” is an excellent professional with significant market history. The performance of “Tesco” is generally understood for its “operational effectiveness” and strength. The organisation has sought a series of operational methods to satisfy market demands, reduced prices, increase productivity, inventory management and improve supply chains. At about the same time, the firm is able to skillfully blend the strategic path, corporate strategy and competencies by innovative organisation structure and effective ‘operations management.’ A deeper distribution of clients is Tesco’s pick. While the “operations management” of Tesco is good, the business will plan to increase and evolve in a myriad of areas. Usually, in order to obtain maximum lead through the quality of the service, “Tesco” will continue to increase. “Tesco” will definitely continue to invest in technology with the introduction of an “RFID scheme” to promote software to be a profitable order. Thus all the aim and objectives are met, and the analysis is completed successfully and productively.
Assessment 2
Introduction
Each corporation should be specific, resilient to housing assistance with reliability in standard linear to its own sharpness for survival in the cruelly threatened modest period. The answer to a cooperation era, including the “Source Chain of Operations”, is consistency in development and control. “Project Management and Service Management” are two forms of business management. From “Tesco’s” point of view, the discussion will be about recognizing a project successfully in complicated “supply chain management”, hardware stores and quality render at the beginning of the system proposed project. “Tesco” is a major retail company. The headquarters is present in the United Kingdom. On the road from products to the final consumer, the distribution system of “Tesco” can be calculated by a series of complex steps, along with the procurement, service, distribution, software and services, supply scheduling and the forecasting of order forecasts. Tesco focused on the idea of product training to make loyalty beneficial for buyers. Tesco’s common mission is to encourage the engagement of respected customers in the buying path. “Tesco” has unfathomably articulated the expectations of its stakeholders and put them together through challenging days. The “Tesco club card” is an elegant way to acknowledge Tesco’s clients for their spending. The service gives lots, presents product data in order to discern if anywhere and vulnerable people. So, it can be concluded that the “Supply Chain Management” of the company is very good and specific. The policies have helped the company to grow, and the growth is still on.
Background
This paper discusses the Tesco company. The company is a UK based company. The company was established in 1919. Initially, the company has a humble beginning. Jack Cohen was the founder of the company. He started the company in 1919 he started this company by selling groceries in the Eastern part of London. In 1924 the company started selling their own tea brand. The Tesco tea. The tea brand from the company went on to be the biggest hit in the market as the people of London love their tea. This tea brand was a symbol of quality. This tea brand was available throughout London, giving the necessary visibility that a brand is required to have in order to be successful in the market. First forward to five years in the year of 1929. The founder. Jack Cohen has the first step towards opening the store in north London. “The first store of the company was opened in Burnt Oak, Edgeware in North London”. It started its operation in the retail sector in London, and the first brand that ever sold in the store was “Tesco Tea”. The founder of the company has taken the initiative to expand its business. In 1934 the founder of the company bought the land angle road. The purpose behind buying the land is to create a modern warehouse and the headquarters for the company. The company motto was “pile it high and sell it cheap”. In the year of 1947, the company went public. After a certain time, the company started its self-service store, which went on to another hit for the company. At this time, the company was looking for a way to expand its operation, so they are looking for an opportunity to buy the stores. That opportunity came in 1955, and As, the company back then bought 19 “Bernard’s stores” in London, later in the span of five years, the company almost purchased over 500 new stores in London. During this time in the year 1958, the company opened their first-ever supermarket in Essex. The store has few features. The store has the option of counter selling. Only a few commodities are allowed in counter selling. After that, the company has entered a lot of new markets such as Poland, Ireland and a few other nations (Lu, et al. 2020). The growth of the company continues as the company has leveraged the power of technology that allows the company to sustain the growth rate, and also, by using the technology, the company has increased the growth rate. The company is right now operating on a worldwide level.
From that time to till now, the company has grown rapidly. The growth rate of the company is highly impressive (Aitken, et al. 2019). The company right now in the UK’s “largest supermarket chain”. The objective of the Tesco company is to become one of the best in the grocery business worldwide. This paper will help to understand the impact of the same in the business that allows a company like Tesco to succeed in their own nation and in the foreign nation.
Discussion
“Supply chain management”
The supply chain of the organisation helps the organisation to be faster and efficient in its customer service approach as Tesco is a service-based business (Ohida, et al. 2019). So, the customer service plays a very important role in the long-term success of the organisation. The Tesco supply chain has evolved through the year (Timkovich, et al. 2017). The business started its operation in the 1920s. But the business first introduced the supply chain in the 1970s. The company took almost fifty years to introduce the supply chain in their business. Since 1970 the company’s supply chain has been in business for fifty-two years. Within this time timeline, companies have seen many phases in their existing supply chain. In this section of the report, the report will discuss the five main transition phases that the company’s supply chain has gone through during this operation time. The five distinct phases of the supply chain of Tesco are: “Store delivery, Centralization, Composite, lean supply chain, and lastly complexity management”.
Store delivery
This is the first phase of the supply chain of the Tesco company. This phase was started at the initial period of the supply chain adoption in the business (Timkovich, et al. 2017). The company has identified their key supplier, and the department of the supplier was structured and organized. The suppliers have given the control. The retailer of the company and the price of the company’s product was not decided through the range. Due to this, the store has suffered in multiple locations. The company was not profitable during this time using this type of supply chain in the business.
Centralization
This second phase of the supply chain adoption of Tesco. This phase started in 1980. The company was looking forward to minimising their past mistakes. So, the company took control. The company “manufacturer and the supplier” from that time onward had to send their product to the distribution Centre of the company (Longoni, 2019.). Earlier, the product was directly sent to the stores. The distribution Centre of the company allows them to check the quality of the product, and at the same, each and product comes under the price control guideline which is set by the company. The distribution hub started to distribute the product to the stores.
Composite
This is the third phase of the supply chain in the Tesco company. The company was expanding its range of product. Certain products of the company require special attention. So, the management of the company decided to open the regional stores for the company’s supply chain. The purpose of the regional store is to maintain the temperature of the specific product of the company (Koptev, 2017). Due to “the regional store the frequency of delivery to stores increased”. This also reduces the additional space that each supermarket was holding to hold their product. The introduction of the regional store increases the productivity of the company. The quality of the product improved, and the inventory holding was reduced due to the regional stores. So, it was overall significant growth for the company.
“Lean Supply chain”
This is the fourth phase of the company. The phase started in 2000. This phase of the supply chain is mainly concerned about increasing efficiency by reducing waste components in the supply chain of the business. In order to reduce waste components, the Tesco company started to follow the lean methodology for the supply chain. The biggest strength of the company was its transparency, and another key element that is making the company successful is its simple value stream. But there is still improvement needed in the inventory and the logistics segment of the supply chain (Fengli, 2017). So, the company has met their supplier, and both parties have agreed upon a developing “technology and JIT environment” for the business operation.
Complexity Management
This is the final phase of the supply chain, and this is the current stage of the existing supply chain of the company. The Tesco company is the global giant in the grocery business. The company has a worldwide presence. The company is inclined towards global supply chain management, which will help the company to provide the service to the customer without compromising their value (Nakasumi, 2017). Along with the global presence, the company has an online presence. Due to this reason, the supply chain of the company has become complicated now to simplify the complexity of the supply chain as the company introduces the “RFID technology” in their business operation, which allows the supply chain to be less complex.
The above diagram is of the existing supply chain of the company. Though the picture shows the simple representation of the supply chain. But in reality, the company has over 3000 stores in the UK alone, and the report states that the company has distributed close to 3.5 billion products in a year. The aim of the supply chain is to maintain the flow of the product. The efficiency and the effectiveness of the supply chain were based on a few factors. Those factors are: “Increasing availability for their customers, leverage the scale of the business to reduce the waste and maintain the quality of the product and lastly increase the overall efficiency of the business by creating a stable business and at the same time maintaining a great partnership with their suppliers”.
“Organisation involved in the supply chain”
The supply chain of a business requires a lot of organisation to function efficiently. Supply chain management is a living organism of the business that helps the business to efficiently and provide service to the customer.
The first requirement is the facility. The Tesco company consists of a large number of distribution centres in its existing supply chain (Charan, 2018). The distribution centre of Tesco has a significant amount of impact on the productivity of the Tesco company. This segment of the paper will describe the different phases that help to accomplish the task of the supply chain. There are few components which help the supply chain to function better in the business. Those components are: ” Facility, Inventory, transportation, Pricing and Sourcing”. The majority of the operation is based in the UK. In the UK, Tesco has over 3200 stores. The stores in the UK are active. The current employee strength of the company is 310,000 across the UK. Tesco offers a variety of the product in their platform. The main purpose of Tesco is to deliver all the product to their consumer without compromising on the product quality. So, To fulfil this purpose, the company works on a unique way to use the existing supply chain. This improves the result of using the supply chain in the business. At the same time, the methodology also maintains the quality of the product.
The existing supply chain work will be divided into four teams. The four teams will carry out each and every important task of the company. These teams are based in the UK. Those teams of the supply chain are: “The development team, The supplier team, the store team and the lastly the security and the loss prevention team”.
The first team of the supply chain department will focus on the availability of the product. The first team of the supply chain plays a crucial role in problem-solving. This team uses the power of analytics to optimise the supply chain decision. The optimise decision helps the company to have a better profit margin as the analytics will save a lot of money upfront. The development team also helps to improve the overall supply chain system across the globe.
The next team is the supplier team. The supplier team of the supply chain focuses on managing the suppliers and the buyers. This team is responsible for all the necessary planning required to fulfil the task of this segment. According to a report 30 millions of the food item is ordered in a week. The food ordered from their suppliers. Tesco has the largest supply chain in the UK.
The third team in the segment is known as the store team. The main objective behind creating this team to improve customer service throughout the UK. This team mainly focuses on customer satisfaction. The store ensures that there is enough stock available in the store to fulfil all the demand of the customer.
The fourth team, or the last team, is known as the “security and loss prevention team”. The purpose of creating this team is to ensure the security standard level is maintained at the time of business operation. The focus of this team is to maintain all the safety and security measures beforehand, and also, this team works as the anti-theft team.
Tesco has six kinds of stores. These six categories of stores are part of the Tesco Supply chain.
These six different categories of stores are: “Metro, express, Superstore, Extra, Hypermarket and online Stores”.
“Theories and frameworks”
This section of the report will discuss the theories and framework that exist for the improvement of operation management in the business and the supply chain management in the business. This segment will discuss the two theories one the “lean principle and the second one is the Six Sigma methodology” for the improvement of the business process.
The above diagram is of the lean principle. The lean principle focuses on the customer needs in the market. To understand the customer need, this approach uses the five core values.
First, the approach helps an organisation to find out the value they are providing to the customer in the next segment, and the approach identifies the channel required to send the value to the customer. Once the value stream is identified, then one has to make sure the team of an organisation works without any interpretation. Though one critical one has to remember that this step takes time. The creation of any kind of product or service is a time-consuming task, so it is recommended that the people who are involved in the creation process. They must work without interruption in their organisation. This will help to create the flow. The flow increases the productivity of an employee (Afrin, 2019). Thus, it will also increase the productivity of the organisation.
The next stage of this principle complements the previous steps of the process. The organisation must have a “work pulling system” the “work pulling system” means if there is actual demand for the work, then the employee should pursue the task. And lastly, the methods emphasize the continuous improvement of the existing methodology. This principle allows the business to be more flexible and more responsive towards the market needs.
The six sigma is another technique that the organisation uses to improve their existing process. The six-sigma method has six elements. This six-element helps the business process to stand out from the rest. These six elements are “Define, Measure, Analyse, improve/ design, and the last part is the verify”. The first part of the process improvement technique helps to define the process. Once the process is defined, then the second step is involved in measuring the process. This numerical data of the second stage provides insight into the required improvement needed in the process. The third step is analysing the process. The fourth step is involved in improving the design of the process, and the final part is involved in the verification of the process.
Evaluation
The company has held “the number 1 position for the supermarket chain in the UK”. and the company is looking forward to continuing doing so in the UK. The company is the third-largest in the globe, and the company already has a presence in over 14 nations across the globe. The company has high brand value, and the company is good at adopting the new technology with their business. The above-mentioned qualities help the business to stand out in the UK market, and the business performance overseas is also satisfactory. And recently the company has started an initiative to retain their old customers. The initiative also proved to be a great addition to the business. The business started loyalty schemes to retain their old customers. The business is performing well in those areas, but there are certain areas that the business needs to improve in order to become the global leader in the retails sector. Those sections will be discussed in the latter part of this segment.
The company has globally expanded its operation, So, according to the new market, the business had to make decisions. This is one of the main reasons the company is slowly diverting from their main business in the foreign land. The new business may have a profitable index in the future, but the company is losing money by diversifying its assets into different business areas. The company massively relies on the UK market. Almost 75 % of the revenue comes from the UK market. So from their earning point, the company is one dimensional. Last few the company have struggled to earn a profit as they diversify in the business domain, they are liquidating their assets, and they are taking loans from the financial institution. Because of this reason, the company is struggling to make a profit in their own business domain.
Recommendation
In the recent past, the company has struggled in their business. This paper has found out the key areas which are going to help the business to identify the area where the business needs to improve. The improvement of the foundation areas will play a significant role in achieving success for the business.
The evaluation section of this paper discusses the strength and the weakness part of the business. The company must find a way to mitigate all the roadblocks. This can only be done by focusing on the key areas in which the business is performing well. So, the business has to focus on its core strength. Because the company has enough experience in their core sector, with just a touch of innovation, the business can again earn profit. But if the business keeps repeating the same mistake, then the competitor will take a chance, and the competitor has enough potential to beat them in their own game. The company must find a way to become successful in the online retail sector, as the online retail sector has more potential to reach the global stage, so the company must focus their business on the internet platform. And this will also help the company to minimise the logistic cost.
This recommendation will help the company to stay ahead of its competition and stay relevant to the user in this dynamic marketplace.
- The company must focus on their core business.
- The company must increase the amount for the research and development for the core business. This helps them to be more optimised in today’s market context.
- The company has to use their online platform more efficiently, and this will increase user engagement in the platform.
Conclusion
Even as the quality of the planning process also leads to client satisfaction, customer-supplier, production quality managers boost their revenue. The “Total Quality Management (TQM)” principle approach gains from exfiltrate material and increasing manufacturing price. Any external conditions lead to the realisation of the business plan and purpose. Consequently, there are numerous improvements every year and the effects of our conceptual plan. For example, conditions change everyday consumers may choose to order expensive things, such that if the consequence as an objective is a big challenge, therefore the job is impossible and noticeable toward others. Tesco’s business requires quality assurance and “supply chain”, namely qualified operations, namely consumer loyalty, new management, manufacturer partnership productivity, to be taken into consideration. The orientation program, delivering initiatives, return on investment assessment, the interaction collection, abilities are all relevant matters with the product rolling. The “business environment” is necessary for “Tesco” to proceed to be moderate, or the introduction of digital enterprises must concentrate on the issues of ongoing development. Good messaging using technological advances has been established. “Tesco” strives to meet the needs of customers and create value with products. Many existing construction and facilities, namely “Tesco Metro”, a shop view with city shops but dedication to the funding of a big supermarket, have remained existing. Thus, the supply chain management of the company is efficient and productive. So, it can be inferred that if few changes are made in the existing system, then the success rate will be more.
Reference list
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