TESCO

Section A
1. Understand the role of operation management within a business.
1.1. Assess the similarities and differences between production and service
operations.
Production operations are the steps taken to move from basic materials, components, or
resources to a completed product. Manufacturing, assembly, fabrication, and packing are all
examples of operations that fall under this category. In order to turn unprocessed materials into
completed goods, production activities frequently make use of specialized apparatus, equipment,
and tools, and require trained personnel to run and keep these machines (Kumar and Suresh,
2006).

Service operations focus on the development and distribution of immaterial outputs like events
and knowledge. Delivery of services like healthcare, leisure, transit, and counselling typically
involves a blend of human contact and technology (McLaughlin, 2010).

Inputs are transformed into products or services in both manufacturing and commercial
industries. To be efficient and successful, both require the administration of resources like
people, supplies, and technology. They are similar in that they both strive to meet the
requirements and demands of their customers through the provision of high-quality goods and
services. Both need careful oversight of their supply chain management to guarantee a constant
flow of inputs and outputs.
References

1. KUMAR, S. A. & SURESH, N. 2006. Production and operations management, New Age
International.
2. MCLAUGHLIN, S. 2010. Service Operations and Management.

1.2. Analyze the three major functional areas of organizations and describe how
they interrelate.
Marketing, Operations, and Finance are the Three Horsemen of Any Successful Business. Each
of these facets is essential to an organization's growth and is connected to the others in various
ways.
Marketing: Customers' desires and requirements are determined and met by the marketing
department. Organizational promotion includes creating and executing marketing plans, studying
consumer habits and tastes through market research, and keeping tabs on the company's public
persona. For marketing efforts to be successful, operations must be able to provide goods or
services that live up to customers' standards (Deepak and Jeyakumar, 2019).

Finance: When it comes to money, it's up to the finance department to keep things running
smoothly. Investment choices, revenue flow management, and money financing all fall under
this category. For marketing initiatives to be fruitful, sufficient financial backing is essential.
There is a lot of interplay between finance and operations because of how important it is to
effectively manage money when running manufacturing processes (Falahuddin et al., 2022).

Operations: The operations department handles manufacturing and shipping. Taking care of the
supply network, making sure manufacturing runs smoothly, and keeping an eye on quality are all
part of this. Because the success of operations is dependent on the availability of financial means
to spend in machinery, buildings, and people, operations and finance are inextricably intertwined
(Wolniak, 2020).

Some examples of the interplay between these three domains of operation are as follows:

1. Operations and marketing must collaborate to guarantee that the final output exceeds
consumer standards.
2. Production efficiency and cost-effectiveness depend on close collaboration between the
operations and financial departments.
3. The success of marketing initiatives depends on the cooperation of the finance
department.
4. Each department's performance is tied to that of the others, so it's crucial that departments
work together and share information effectively.

1.3. Evaluate a range of theories related to operations management.

Management of operations is an ever evolving and intricate discipline that draws from many
different areas of study. Here is a look at the pros and cons of some of the most prominent
operations management theories:

1. Lean Management
It was developed in 1990s. Lean management is an approach to business that values
minimization of waste and maximization of productivity in manufacturing. This philosophy
stresses constant development and the removal of wasteful processes. Lean management's
strengths lie in its capacity to boost output while decreasing overhead and delighting clients. The
intricacy of applying lean principles in complicated organizations and the risk of
overemphasizing productivity at the cost of quality are two of lean management's flaws (Sinha
and Matharu, 2019).

2. Total Quality Management (TQM)

TQM, or Total Quality Management, is a method of leading a business with the end objective of
always exceeding the standards of your customers. According to this theory, success is achieved
through a combination of strong internal communication, attentiveness to customers, and a
commitment to constant innovation. TQM's advantages lie in the fact that it takes a more all-
encompassing view of quality management, places a premium on satisfied customers, and has
the potential to foster a culture of constant enhancement. TQM's flaws include its high entry
barrier for big companies and the risk of putting too much stress on process development at the
cost of creative problem solving (Lim et al., 2022).

3. Theory of Constraints (TOC)

Eliyahu Goldratt created this theory in the 1980s with the goal of optimizing performance by
locating and removing impediments to production. To increase efficiency, TOC advocates first
locating bottlenecks, then finding ways to work around them, and finally, boosting those
bottlenecks to a higher level (Mabin and Balderstone, 2020).

4. Six Sigma

Six Sigma is a data-driven strategy to quality control that aims to reduce uncertainty in
manufacturing operations. This theory stresses the use of statistical techniques to assess and
evaluate data in order to find and eradicate flaws. Six Sigma's assets lie in its capacity to enhance
quality, decrease expenses, and boost patron happiness. However, the flaws of Six Sigma include
its propensity for overemphasis on analytic techniques at the cost of process knowledge and its
challenge in tackling problems related to user experience (Ahmed, 2019).
In sum, these theories provide helpful guidance for enhancing operations administration.
Companies can improve their productivity, quality, and client happiness by studying and
implementing these ideas. Keep in mind that no theory can be applied universally; rather, each
company must make adjustments to suit its own unique situation.

1.4. Describe the operations function and the nature of the operations manager's
job.
The creation of products and services falls under the purview of the operation function, which is
central to any business. Designing, organizing, and controlling the processes that take raw
materials and turn them into finished products is the focus of the business function.

Several essential tasks fall under the operation function.

Design

 Features, traits, and quality of the goods and services that the company will manufacture
are all planned out by the management function.
 The next step is to identify the resources (both physical and technological) that will be
required to manufacture the goods.

Planning

 When it comes to material and resource acquisition, as well as human and technological
capital deployment, and stock administration, it's all the responsibility of the "operations"
department.
 This entails doing research into anticipated interest in the goods or services and planning
accordingly.

Control

 The operation function keeps an eye on output to make sure it's on track to reach its
targets.
 This entails keeping an eye on quality, keeping expenses in check, and making sure the
manufacturing process runs smoothly and effectively.

Improvement
  The production process is constantly evaluated by the operation function, and
adjustments are made to maximize speed and efficacy.
 Methods to accomplish this goal range from adopting cutting-edge technological tools to
refining product and service designs and cutting down on wastage during manufacturing
(Wolniak, 2020).

As we have chosen the TESCO-Supermarket, so following are the key responsibilities of

operation manager.

 Reducing wastage and controlling expenses by maintaining a steady supply of groceries

in a store.
 Employee selection, coaching, and management for peak performance and happy clients.
 Supervising the supermarket's day-to-day activities, such as stocking stores, arranging
goods attractively on display, and keeping the shop tidy and clean.
 Making and sticking to a plan for the store's financial budget, including monitoring its
income, expenditures, and success.
 Maintaining a high standard of client service by attending to all inquiries and issues in a
prompt and courteous way.
 Responsible for overseeing the supermarket's product quality and safety, including
handling any product recalls or problems that may arise.
 Creating and executing a plan to boost foot traffic, client retention, and sales income.
 Maintaining a safe and secure atmosphere for shoppers and employees, as well as
handling related problems.

In general operation manager is responsible for different tasks and activities.

 Hiring, teaching, organizing, and assessing workers are all tasks that frequently fall under
the purview of an operations manager.
 Monitoring performance measures and finding places for growth are two of an operations
manager's primary responsibilities.
 To guarantee that the company is functioning effectively and in accordance with industry
standards, an operations manager may be tasked with formulating and enforcing relevant
policies and protocols.
  It is possible for an operations manager to be in charge of handling things like stockpiles,
materials, and tools (Wolniak, 2020).
 Quality control and client satisfaction are two of the primary responsibilities of an
operations manager.
 An operations manager's duties may include keeping the company within its financial
means and handling the budget.
 An operations manager's ability to convey the company's vision to employees, clients,
and other interested parties is crucial (Wolniak, 2019).

1.5. Evaluate current issues in business that are impacting operations

management especially in your chosen organization.
Tesco faces a number of threats that could have far-reaching effects on its business management.
Some instances are as follows:

Supply chain interruption: Raw material scarcity, transportation delays, and higher prices have
all resulted from the COVID-19 pandemic's impact on worldwide supply chains. Finding new
vendors, controlling supplies, and preventing manufacturing delays are all challenges
encountered by operations administrators. A disturbance in the supply chain could affect Tesco's
operations management by causing a scarcity or delay in the availability of products. Depending
on the severity of the interruption, Tesco may have to make changes to its stocking levels, seek
out new vendors, or activate its backup plans (Dai and Liu, 2020).

Intense competition: Tesco needs extremely effective operations management to compete in the
retail business, where rivalry is fierce. As a result, Tesco needs to keep a close eye on its
business to find ways to boost productivity while cutting expenses (Palmer, 2005).

Changing preferences of consumers: Tesco may need to modify its procedures in response to
shifts in customer tastes and purchasing patterns. Tesco, for one, has had to make investments in
its online operations and create new distribution methods to keep up with the growing demand
for online purchasing.

Sustainability: There is growing demand for businesses to implement sustainable policies and
procedures across all aspects of their activities in order to lessen their negative effects on the
ecosystem. Costly and time-consuming adjustments to supply chain management, manufacturing
methods, and packing are needed. Managers of operations must weigh the advantages and
drawbacks of green efforts against the need to meet output goals (TESCO, 2018).

The problems listed above are just the tip of the iceberg when it comes to the challenges facing
operations management today. Operations managers need to be flexible in order to meet the
ever-evolving demands of today's businesses, which can vary widely depending on sector and
company size.

2. Understanding strategic capacity planning for products and services

2.1. Critically assess the importance of capacity planning
The goal of any successful business is to provide customers with the products and services they
want, and capacity planning is the method by which that goal is achieved. Examining the present
level of capacity usage, making predictions about future demand, and calculating the number of
available resources is what this entails (Ojstersek and Buchmeister, 2021).

Many viewpoints exist from which to evaluate the significance of capacity planning critically:

To put it simply, capacity planning is crucial for a number of factors. For starters, it helps
businesses stay away from the trap of underutilized assets, which can contribute to higher
expenses and less productiveness. Second, capacity planning aids businesses in preventing the
overuse of resources that can cause longer wait periods, lower product quality, and eventually
dissatisfied customers. Lastly, companies that are growing into new marketplaces or having fast
development must engage in capacity planning. Companies can avoid being taken off guard by
unexpected increases in demand by preparing ahead of time.

Last but not least, capacity planning is essential for catastrophe recovery and company stability.
Businesses can lessen the disruption to their operations and continue to meet client demands by
developing and practicing backup plans in advance of potentially disastrous events like natural
catastrophes or pandemics (Shaw et al., 2017), (Occhino, 2000).

2.2. Analyze ways of defining and measuring capacity.

The greatest amount of output or production that a facility, procedure, or system is capable of
achieving in a specified amount of time is referred to as its capacity (Coutiño and Zandi, 2021),
(Elmaghraby, 2011).
Organizations must define and measure capability to guarantee they have enough resources to
accomplish their goals. Different businesses, industries, and organizational objectives call for
different approaches to defining and quantifying capability.

Following are some common ways to define and measure capacity.

Design capacity: A system, process, or facility's design capacity is its highest potential
production under optimal working circumstances. It's typically measured in how many things can
be made in a given time period, like hours, days, or years. A plant with an annual planned
capability of 100,000 units would make 100,000 units per year (spacey, 2017).

Effective capacity: The term "effective capacity" is used to describe the greatest production that
a system, process, or building can accomplish under typical working circumstances, including
but not limited to the presence of scheduled repair, acceptable levels of quality control, and the
like. Typically, actual capability falls short of theoretical maximums. For instance, if a plant with
a nominal capacity of 100,000 pieces per year encounters 10% delay, its actual capacity will
drop to 90,000 (BROWN, 2021).

Utilization rate: The utilisation rate is the real production divided by the potential output. The
factory's usage rate is 80% if, for instance, it makes 80,000 pieces per year.

Efficiency: Efficacy is the ratio of inputs to outputs, or how well a system or procedure works. It
is found by taking the final product and splitting it by the total amount of resources used to create
it (work, materials, and energy) and then increasing that result by 100. An effective plant is one
that can create the same number of goods with fewer employees.

Production yield: The production yield is the proportion of overall output that is of high grade. It
is determined by increasing 100 by the percentage obtained by dividing the number of high-
quality units by the overall number of created units. For instance, if a factory cranks out 100
pieces and 90 of them are of acceptable quality, the factory will have a 90% output rate.
 2.3. Evaluate the factors to consider when deciding whether to operate inhouse or
outsource.
There are a number of considerations that a company needs to make when choosing whether to
handle operations internally or to hire outside help. Consider the following examples of central
factors:

1. Cost

The price tag of in-house versus outsourcing is a major consideration. When compared to

outsourcing, which may entail giving a charge to an external supplier, in-house operations may
necessitate substantial expenditures in buildings, equipment, and people. Businesses must weigh
the expenses of each alternative to determine which is best for their bottom line (Deshpande,
2020).

2. Expertise

Using an outsourcing service can help you gain access to skills and information that you don't
have in-house. If a company outsources its IT services, it may gain access to cutting-edge tools
and personnel that it could not otherwise pay or keep on staff. However, internal procedures may
allow for more precise management of both quality and timeliness (Deshpande, 2020).

3. Capacity

When debating whether or not to handle tasks in-house or hire outside help, capacity is an
important consideration. In order to decide whether it is more cost-effective to engage in internal
processes or to contract to an external supplier, businesses must first assess their present and
projected capacity requirements.

4. Risk

There are dangers associated with outsourcing, such as surrendering some measure of
management over production, quality, and timeliness. When compared to outsourcing, internal
processes allow for more oversight and risk mitigation. Companies should weigh the potential
downsides of each course of action and devise contingency plans accordingly.

5. Strategic goals
Any viable choice must be weighed against the strategy objectives of the organization. While in-
house operations can give you more say over your company's central procedures, outsourcing
can help you reach new customers and form valuable alliances (Deshpande, 2020).

2.4. Describe the steps that are used to resolve constraint issues.
Constraints are factors that limit the performance of a system or process. Following are the steps
used to resolve the constraints.

1) Identify the constraints: To determine the source of the blockage, you can examine
output statistics, conduct process observations, or conduct employee interviews.
2) Analyze the constraints: The next stage is to investigate the causes of the constraint.
Analyzing the influence of tools, people, materials, and procedures on the constraint can
be helpful here.
3) Develop a plan: Make a strategy to deal with the constraint problem based on the
research. Depending on the situation, this may necessitate making modifications to the
procedure, purchasing new tools, employing new employees, or shifting around the
production timetable.
4) Implement the plan: Implement the plan and track the results of adjustments. To do so,
it may be necessary to try out various strategies and gather statistics on the results.
5) Evaluate the results: In order to determine if the constraint problem has been fixed after
the adjustments have been made, it is necessary to assess the outcomes (Boogaard, 2022),
(Kalender et al., 2014), (Mabin, 1999).
Section B

3. Understand requirements for effective inventory management using information

systems.
3.1. Evaluate the nature and importance of inventories.
The term "inventory" is used to describe a business's supply of basic materials, WIP (Work-in-
Progress), and completed products. When it comes to a company's bottom line, revenue
movement, and client happiness, inventory management is a must. A few examples of catalogues
and their significance are as follows:

Following are the key characteristics of inventories.

 Raw materials
 Work-in-Progress
 Finished goods.
 Perishable goods
 Seasonal goods
 Just-in-time

A few examples of significance of inventories are as follows:

Keeping accurate inventories guarantees that businesses have enough product on hand to satisfy
consumer demand. This is crucial for companies dealing with demand swings or interruptions in
their supply network.

By always having the components and materials required for production on hand, inventories
help businesses keep their production lines running smoothly. This has the potential to boost
productivity and decrease delay (Sheakh, 2018).

Maintaining an inventory allows businesses to save money by making use of mass buying
savings and preventing production delays caused by a lack of supplies.

Keeping an inventory helps businesses get ready for the inevitable uptick in demand that occurs
around holidays. Businesses can better serve their customers and prevent stock-outs by
maintaining adequate levels of inventory (Basit, 2021).
Keeping track of inventory is crucial for accurate bookkeeping and reporting. In order to give
investors and creditors an accurate image of the company's financial health and to meet with
bookkeeping rules, businesses must disclose accurate inventory amounts (Walsh, 2019).

3.2. Analyze the requirements for effective inventory management.

Business success depends on having sufficient stock on hand to satisfy client demand at all times
while keeping stocking expenses to a minimum. The following are some of the most crucial
elements of effective inventory management:

1. Accurate forecasting: The key to successful inventory management is precise demand

projections for customers.
2. Efficient replenishment: Effective restocking procedures are required to keep supplies at
the right amounts.
3. Effective inventory planning: Optimal stocking levels are calculated by factoring in
forecasted demand and wait periods to purchase goods.
4. Real-time visibility: Possessing real-time access to stock amounts is essential for efficient
stock administration.
5. Data analytics: Businesses can benefit from better sales projections and inventory
planning with the aid of data analytics by spotting patterns and trends in sales and stock
data.
6. Inventory optimization: Optimal inventory levels are calculated by factoring in
forecasted demand, wait times, and the expenses involved with keeping merchandise, all
of which can be determined through the application of inventory optimization methods.
7. Inventory audits: In order to guarantee that stock counts are correct and that there are no
inconsistencies between the actual inventory and the inventory data, it is necessary to
conduct frequent inventory audits (Muchaendepi et al., 2019).

3.3. Evaluate the use of the A-B-C approach to inventory management.

The A-B-C technique is widely used in inventory management to classify stock according to how
crucial each item is to the company's operations. Inventory products are classified as either "A,"
"B," or "C" in this method. There is a significant difference in the managerial requirements
between the various groups (Abdolazimi et al., 2021), (Ravinder and Misra, 2016).

Here is how A-B-C approach works:

A items: A items that make up between 10 and 20 percent of the total collection and commands
the greatest price. We need to keep a careful eye on and manage these factors because of how
crucial they are to the success of company.

B items: The products in this group have a modest worth and make up 30–40% of the total stock.
Things with a B priority are crucial but not essential.

C items: In most cases, this group will account for between 40 and 60 percent of total goods and
will have the lowest worth (Ravinder and Misra, 2016).

3.4. Describe the principles of Economic Order Quantity (EOQ) model and its
assumptions.
In order to reduce stocking costs while still satisfying consumer demand, businesses often
employ a statistical model called the Economic Order Quantity (EOQ) model to determine the
ideal order size (Kumar, 2016).
Assumptions of EOQ model

3.5. Examine the single-period model and its assumptions. Define what is global
supply chain ecosystem.
When a product has a finite expiration life or is susceptible to price changes over time, the
single-period model is used to calculate the optimum purchase number for a single transaction.
The model implies that there is only one chance to place an order, so the decision-maker must
determine the optimum order number considering both the anticipated demand and the associated
costs (Ruidas et al., 2019),

Assumptions:

 Once a purchase has been made, there is no way to reorder more of the product or add to
the supply.
 We can assume that product demand will follow a normal or Poisson distribution, but we
can't be sure.
 Once the product's expiration date has passed, it is no longer commercially viable or has
lost a lot of its worth.
 There is no uncertainty about either the purchasing expense or the sales income.
 Expected profit is determined by subtracting the anticipated costs of purchasing and
storing goods from the anticipated income from the sale of the product (Youssef, 2020).

The term "global supply chain ecosystem" is used to describe the system of businesses,
infrastructure, and processes that work together to manufacture, ship, and deliver products and
services around the globe. It includes a complicated network of connections between vendors,
makers, wholesalers, transportation providers, merchants, and end-users, and spans the entire
supply chain from getting basic materials to providing completed goods to consumers
(Amegashie, 2015).

Section C

4. Understanding scheduling operations for project managers

4.1. Explain what scheduling involves and the importance of good scheduling.

Scheduling is the process of organizing and arranging a set of activities or events so that they can
be carried out in a well-thought-out and timely fashion. Time, people, and material must be
allotted to individual tasks in a manner that allows for maximum output with minimal waste
caused by delays or interruptions (Larco et al., 2018).

A well-planned schedule allows companies to, among other things, which are all essential to
their success in reaching their goals and objectives.
  Businesses can maximize the value of their time, effort, and capital by organizing their
day-to-day operations into a rational progression of tasks and activities. The results of
these efforts can include higher output, lower trash, and higher profits.
 The risk of delays or outages, which can interrupt operations and affect client happiness,
can be mitigated through careful timing.
 Businesses can increase consumer satisfaction and devotion by allocating resources in a
way that satisfies the needs of their clientele.
 Better cooperation, cohesiveness, and productivity can result from better scheduling,
which facilitates better communication and collaboration among team members (Journal,
2022).

4.2. Compare product and service scheduling hierarchies.

Typically, the production of a tangible object is the primary focus of product scheduling
hierarchies, which consist of a number of interrelated tasks and activities that must be carried out
in a particular order to ensure the production process works easily and effectively. Several tiers
make up the system, the most common of which are:
Service scheduling systems tend to center on the provision of nebulous services like healthcare,
leisure, and transit. In order to provide services in an efficient and effective manner, a service
ordering hierarchy usually entails a number of tasks and activities that must be finished in a
predetermined order (Framinan et al., 2014).

The primary distinction between the product and service scheduling levels is that the former
deals with the creation of real products while the latter deals with the provision of nebulous
services. Planning and timing are at the heart of both systems, but the specifics of how they are
implemented change from one production or service to the next.

4.3. Evaluate approaches used for scheduling service systems.

Managing the access of resources like personnel, machinery, and buildings is an important part
of scheduling service systems. Following are the three most important approaches for scheduling
service system. 
 1. Time slot scheduling: Assigning clients to particular time periods based on their tastes
and availability, this method divides the total service time into smaller chunks. While
time slot scheduling has the potential to increase efficiency and decrease wait times for
customers, it also has the downside of being rigid and restricting service to a set number
of clients.
2. Priority scheduling: Services are scheduled in accordance with the importance of the
client or the service order in priority-based scheduling. This method is frequently
employed in emergency services and healthcare contexts to prioritize life-threatening
situations over less critical ones.
3. Dynamic scheduling: By monitoring and reacting to changes in both resource demand
and supply, dynamic scheduling allows for continuous optimization of service delivery.
This method is frequently implemented in utility systems such as transit and lodging,
where demand is known to change rapidly (Kim et al., 2020).

4.4. Explain how to overcome a range of unique problems encountered in service

systems.
When compared to product-based systems, service-based systems present their own set of
difficulties due to the nature of the nebulous experiences they provide to consumers. Common
issues in support networks, and how to fix them, are outlined below.

 Keeping your customers happy requires open lines of communication. Be honest about
your capabilities and timelines. Offer reasonable estimates of time and keep clients
apprised of progress as it is being made.
 Frustration and discontent can set in when delays of this sort occur. Prepare for these
eventualities by coming up with a strategy to offer clients refunds or replacement services
in the event of a disruption.
 Services will always have unhappy customers. Pay close attention when a client
complaints, show them you care, and do what you can to address their issues and satisfy
their requirements.
 Satisfaction and loyalty from customers depend on consistent high standard of service.
Make sure the support you provide is reliable, productive, and constant. Keep an eye on
how the service is operating and take care of any problems immediately.
  During busy times, it can be difficult to keep track of available resources. If you want to
keep clients happy and make sure they get their services in a prompt manner, you should
implement strategies like meeting booking and queueing systems.
 Clients experience delays in service and increased frustration due to technological issues.
Prepare for technological breakdowns by having fallback systems and support routes
ready to go.

5. Understand systems for project quality management.

5.1. Identify resources, tools and systems that can support a project's quality
management.
Quality management is essential in any undertaking because it guarantees that the final product
will live up to or even surpass standards.

Following are some tools and resources:

Quality management software: Software designed for quality management is useful for
keeping track of everything to do with quality, from procedures and paperwork to statistics.
Software for meeting standards like ISO 9001, Six Sigma, and Lean management are all good
examples.

Quality assurance and Quality control systems: Quality assurance and control (QA/QC)
methods can be useful for making sure expectations are fulfilled through the use of checks and
balances. Some examples are the International Organization for Standardization 9001 standard,
Total Quality Management (TQM), and the Six Sigma methodology (Abbas, 2020).

Training and development resources: Quality management requires a specific set of skills and
information that can be cultivated through training and growth opportunities. Workshops,
credentialing programmes, and online seminars all fit this description.

5.2. Evaluate quality assurance frameworks that can be applied to a project.

A project can use any one of several quality assurance systems.

1. The International Organization for Standardization (ISO) 90000 provide one such

structure. In order to guarantee the best possible results from an undertaking, this
structure provides several guidelines to follow.
2. The Capability Maturity Model (CMM) is yet another paradigm. Best methods for
enhancing a project's quality are included in this structure.
3. The Project Management Body of Knowledge is another model (PMBOK). The
principles in this structure can be used to raise the bar for any endeavor (Storey et al.,
2011).
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