Operations and Project Management for an Effective Business Organisation Assignment
Introduction
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Operational management refers to the management of corporate processes to ensure that an enterprise is as effective as possible. The goal is to turn resources and energy as effectively as possible into products and services to increase organizational benefit. Operational management departments aim to optimize the cost and sales to generate the best probable net operating margin. On the other hand, the management of tasks for a project requires coordinating and managing the resources of an organization to accomplish a particular mission, event, or job. It may involve a one-time initiative or a continuous operation, and regulated properties including employees, financing, technologies, and property rights (Lon? ar, 2017). It is also connected with fields of architecture and construction and more recently healthcare and IT, which usually have a complicated collection of parts to be constructed and configured to deliver a working device. Therefore, due to significant and specific evaluation of different aspects of theories and models of operation management Tesco has been taken to study. Also, to analyze the different features and effectiveness of the project management process, this study has taken the source of Crossrail, which is the biggest railway infrastructure project in Europe that is delivering the Elizabeth Line across the UK.
Part 1: Operations Management
1.1 Implementation of Strategies for Continuous Improvement Plan
Provision of Better Goods and Services: Using its place in particular for service sectors, completely new fields can be opened up and delivery of services at a higher stage of reliability. Returning users are created by supplying new clients with a fast and appropriate service (Boer et al., 2017). The same happens if a consumer is pleased with the purchase and wants to purchase more. Therefore, Tesco needs to put its focus on this section for the continuous improvement of its business operation.
Development of Organisational Supply Chain: In the performance of an enterprise, the supply chain is important. In nations adjacent to unmatched capital like skills, equipment, or manpower, shifting or placing new installations is greatly advantaged (Ivanov, Tsipoulanidis, and Schönberger, 2017). Through this, during the future business operation of Tesco, the organization will be able to get extensive improvement.
Reduction of Costs: Nowadays, the WTO, sanctions have dropped by an estimated of 3% to 40% in the 1940s. It is an incredible cost-cutting measure and needs to be investigated. In this way, Tesco has the opportunity to reduce the cost of its products and services in the market (McLean, Antony, and Dahlgaard, 2017). Due to this, the organization will be able to sufficiently enhance the consumer engagement rate.
Learning of Improve Operation: Moreover, Tesco needs to learn about how to fetch extensive improvement within its organizational business operation process. They must know inspiring and satisfy consumers by providing effective products and services (Boer et al., 2017). Through this, Tesco will be able to take action for appropriate improvement.
Understanding of Other Markets: The necessity to communicate with overseas clients is one of the strongest side impacts of investing in the global industry. This gives you a good view of recent economies, patterns, and consumer needs that will help the business develop its future path. This helps diversify product range, brings versatility to manufacturing, and can quickly accelerate an economic cycle (Ivanov, Tsipoulanidis, and Schönberger, 2017). Therefore, Tesco needs to apply this approach for the improvement of its operation.
Employment of Top-of-the-line Contributors: Tesco will have more openings and decent jobs. Talented people wanting to create and boost their careers are strongly requested for these incentives. Their advantage is also their income since they can leverage numerous concepts, basic skills, and know-how (McLean, Antony, and Dahlgaard, 2017). This also allows Tesco greater versatility for its staff, the potential to move and use the best employees around the world, and to attract people who see foreign employment as an incentive to see the globe.
1.2 Application of Six Sigma Method and Lean Principles to Justify the Implemented Strategy
Six Sigma Method
Define: Initially, Tesco needs to define and identify the specific requirements of the different consumer communities. In this aspect, the organization has to implement different strategic approaches like surveys, online reviews, ratings, feedback systems, etc. Through this, Tesco will be able to significantly identify different kinds of requirements to operate their business by implementing the strategy for providing better goods and services (Henrique and Godinho Filho, 2020).
Measure: In this way, by effectively defining the requirements of the consumers, Tesco can efficiently measure its needs for changes and innovation within its organizational culture to develop the business operation process (Kemp, 2020). Generally, by utilizing the strategy of developing an organizational supply chain system and cost reduction, the organization will be able to meet its organizational goals of developed operation management.
Analyse: Thus, by measuring the needs for changes and innovation, Tesco needs to form a team to significantly analyze the factors and organizational capabilities for handling the changes (Henrique and Godinho Filho, 2020). During this process, moreover, the organization needs to focus on developing product quality and mitigating the cost of its products through gathering knowledge of operational improvement.
Improve: In this way, by analyzing all the aspects of the changes regarding developing the organizational business operation of Tesco, the organization needs to fetch some technological innovation within its R&D department and the manufacturing department (Kemp, 2020). Moreover, the organization needs to develop its supply chain system to get the raw materials at a low cost. Through this, it will be able to mitigate the cost of the end product of the organization during its business operation in the market.
Control: Thus, after fetching and implementing the innovation and improvement within the organizational culture, the leadership and the management team of Tesco need to effectively monitor the progress to keep the process of operation management development on track to get the expected outcome after the ending of this (de Mattos Nascimento et al., 2019).
Lean Principles
Focus on Consumers: Both consumers want value, eventually. The efficiency of the services rendered is considered to be high in contrast with the costs of value production (de Mattos Nascimento et al., 2019). In this aspect, Tesco needs to put its prominent focus on the consumers and should utilize and implement different technologies for storing a vast amount of data regarding getting knowledge about their needs.
Identification of how the Work Gets Done: Tesco has several theories on how the operation is done that do not precisely show what is going on. Overall, we don't care about how the organization does the job every day; we just have to do it regularly (Sartal, Martinez-Senra, and Cruz-Machado, 2018). Please ask an impartial investigator to document the phases in the procedure so that they can replicate those further help.
Reduction of Wastes and Inefficiencies: When Tesco knows how the method configuration feels, like for every move that would not give the consumer a clear benefit (de Mattos Nascimento et al., 2019). Organise, develop and refine the current procedure to reduce unvalued practices such as wasting, inefficient movement, overconsumption squandered material, consumer pause, hesitating for permits, job process backlog, needless moves, initiative repetition, and loss and redesign.
Tracking of Numbers and Management by Evidence: Often it does not operate perfectly what does function. Check the method, gather information on how well it operates, find mistakes and delete mistakes, and continue to explore value changes. Seek evidence; don't believe there has been a change (Sartal, Martinez-Senra and Cruz-Machado, 2018). Moreover, Tesco needs to study the previously implemented and utilized strategy for tracking the numbers and managing by evidence of the different kinds of activities.
Empowerment of the People: The one who conducts the procedure is the right person to develop the procedure. Using the complete expertise of your employee among them anyone does more. It would be the moment for higher stages if the mechanism is changed. Also, Tesco needs to form a team of trainers to provide significant support, training, and guidance to the employees (Sartal, Martinez-Senra, and Cruz-Machado, 2018). Through this, the organizational employees of Tesco will be able to get empowered by the leadership and management team.
Formation of Systematic Way: The method isn't flawless and it won't remain that place for long, whether it is a wonder. Transformations that include transformation in the procedure can arise. The ability to repeat procedure phases is important to generate lengthy, sustainable value (Sartal, Martinez-Senra, and Cruz-Machado, 2018).In this way, Tesco will be able to more sufficiently form a crucial and systematic way for further development of the organizational operation management system.
1.3 Conduction of a Review and Critique of the Application of Operations Management Theories, Concepts or Models
The policy of Tesco is to exploit the marketing mix components to construct strategic advantages and to have a favorable impact on revenue. The organisational sells a wide variety of items and over the past three years, it has done so. Today, its shops provide food, clothes, investment banking, gadgets, and home furnishings decoration. According to the statement of Kumar(2018), Commodity markets vary, but for the respective goods, the organization retains average prices close to retail rates. A business approach that differentiates Tesco from other retailers is also a cost aspect of the marketing mix. Through its "Every Little Help" advertising messages, the corporation emphasizes narrow percentages which enable it to generate significant profits and make significant savings to consumers when buying in bulk. In several cities worldwide, consumers can obtain Tesco facilities at their shops. The organization also sells internet goods to its clients. As per the statement of de Sousa Jabbour et al.(2018), Online, Tesco delivers the goods Tesco specifically packaged with its name for in-store sales; consumers get the goods Tesco Express, Tesco Metro, Tesco Compact, and the Tesco Superstore in separate category classes. The labels are supplied by the shop size and the possible items contained in the shop. Consumers, therefore, depend on name shops to impact their shopping needs. The ultimate plan advises organizational advertising operations.
Moreover, Tesco during their organizational business operation in both the domestic and the international market utilizes and implements different kinds of operation management theories, concepts, or models. Due to this, the organization has been able to grab a vast range of the market by engaging a huge amount of consumer interest in their business. According to the viewpoint of Kumar(2018), the utilization of the Six Sigma operation management method during the organizational business operation provides sufficient guidance to fetch extensive improvement within its organizational business. Additionally, with the utilization of the Six Sigma model, the organization gets numerous positive impacts on their sales. Due to this, Tesco has been able to enhance its profit margin during its organizational business operation. Also, the implementation and utilization of lean principles for the operation management improvement process help the organization develop the business operation practices in the fastest way. Through this, the organization sufficiently gets the ability to target the consumer and can focus on their fundamental needs. Moreover, by utilizing these principles, Tesco can encourage consumers by providing advanced and digital services to them. As per the viewpoint of de Sousa Jabbour et al.(2018), to develop the organizational business operation, Tesco has to develop its organizational supply chain management system and should focus on its product quality and the cost of the product for grabbing a vast range of consumer base with their business.
However, during the implementation and utilization of these operation management tools and strategies within the organizational culture of Tesco, it is evident that the organization gets sufficient profits, but in some cases, it faces numerous hindrances. Likely, the utilization of Six Sigma is very costly and on the other hand, the utilization of lean principles is very time-consuming (Kumar, 2018). These two operation management tools on the one hand provide extensive benefits; however, on the other hand, they grab a vast amount of time and cost from the organization. Therefore, the organization needs to prepare an effective plan for prominently implementing these tools of operation management improvement.
1.4 Analysis of the Effectiveness of Continuous Improvement in Operation Management
Mapping the Plan for Operation Improvement: Initially, Tesco needs to prepare an efficient plan to fetch some improvement within the organizational operation management process (Tortorella et al., 2021). In this aspect, the leadership team of Tesco has decided to implement a plan and they need to map the plan efficiently for getting success.
Analysis of the Process: In this way, by mapping and implementing the plan for operational improvements, the organizational leadership team needs to analyze the process of operation effectively to keep the plan on track (Sartal, Martinez-Senra, and Cruz-Machado, 2018). Moreover, in case during the analysis of the process is there any kind of lacking?
Redesign the Process of the Plan: Thus, by defining the lacking, the organizational leadership and management team need to redesign the process of the operation management plan (Tortorella et al., 2021). Through this, the organization will be able to get control of the plan.
Draft of the Plan: In this way, after redesigning the plan, the organization needs to draft this plan and hand-over it to the responsible person who can fetch the improvement within the organization management process of Tesco.
Communication and Execution of the Plan: By drafting the plan, the leadership team of Tesco needs to communicate and share the plan and its thoughts among the stakeholders of the organization (Picciotto, 2020). Through this, the organization will get essential support from its stakeholders for executing the plan.
Monitoring and Optimising the Operation: Lastly, by executing the plan of operation management improvement, the organization needs to effectively monitor and optimize the entire process of the operation to control and fetch the improvement within the organizational culture (Sartal, Martinez-Senra and Cruz-Machado, 2018).
Part 2: Project Management
2.1 Implementation of the Project Life Cycle for Managing the Project
The Project Life Cycle
Initiation Phase
The first stage of the project management life cycle initiates the project strategy by clarifying the intuitions and project objectives of the undertaken project or what the project aims to address (Picciotto, 2020). The opportunities are identified and a proper strategic plan is outlined which projects the probable solutions of the opportunities of the project. The proper set of responses is aptly documented and adjusted with the requirements of the project. The recommended solutions are considered and approved by the committee of experts. Crossrail Ltd started the industrial project of the Elizabeth line with a set of objectives that underlines certain criterion (Larsson and Larsson, 2020). After the proposed solutions are accepted, a project is established and a project manager is assigned to implement the approved solution.
The key results and the working groups involved are recognized and the project team gets shape. The project manager then receives permission for extensive preparations (de et al., 2020). The design and maintenance of the Elizabeth line demonstrate a complicated project strategy as is represented by contractual agreements which were expected to deliver processes and equipment, a highly dynamic schedule of the additional projects was considered for management and completion of the project. Crossrail Ltd so far has allocated 23 contracts for the framework and over 80 contracts for construction and logistics.
The objectives of Crossrail Ltd in constructing the Elizabeth Line were to
Reducing the overcrowded services of underground and train services
Adding a further 10% of rail capacity in London
Relieving commute durations across London
Planning Phase
Planning is the second stage of the project management process (Klein and Müller, 2020). In this phase, the solutions are further established and placed according to the strategic outline. Steps are integrated to meet the objectives. The resources and equipment required for the completion of the tasks are recognised and a proper budget is estimated. A specific time frame is also decided to manage and deliver the tasks according to the particular time (Bushuiev and Kozyr, 2020). Although the Crossrail initially decided to follow a design-build delivery method which would transform the risks to the contractors later the idea was rejected and a traditional or construction management method was adopted which involved a detailed design concerning the main structure of the project and special construction packages were allocated regarding the project.
Implementation (Execution) Phase
In this stage, the project tasks are put into action. The actions are placed according to the project strategy. Project implementation includes controlling and monitoring. Continuous adjustments are made according to the requirements. The progress report is constantly provided to the authority (Atkinson, Crawford, and Ward, 2006). The stakeholders are constantly given the required information regarding operational growth. Detailed procurement strategies were developed and followed to define the procurement contracts for supply chain management for key construction, advancement, and support services, tunneling services, stations, and rail networks which were operated by the integrated program management team (Munns and Bjeirmi, 1996). An assurance software for technically ensured operating organizations, including the supply chain, the structure managers, and the operator was developed for the documentation and description of different obligations.
In the finalization of the comprehensive plan, an optimized early contractors' engagement phase was developed and carried out to get the advantage of contractors (Atkinson, 1999). When the main tunneling started, the objectives became more centered on the maintenance of the complicated interfaces between subway drives, stations, portals, and constructions and the local authorities and participants who were involved and affected those operations. Authorities and project funding were given by the Crossrail Act and consent of Parliament in 2008 with the support of the joint patrons including "Transport for London (TfL)" and the "Department for Transport (DfT)".An entire £14·8billion funding package was granted for the project.
Closing Phase
The last phase of the project involves the handing over of the deliverables to the users closing supplies communicating with the authorities for resource management, releasing the resources, and providing accurate documents to the authorities (Bannerman, 2012). Operations of the Elizabeth line have now reached its dynamic final level, at a time of major instability owing to the threats and potential of further outbreaks of the Coronavirus. Crossrail has stepped up its efforts to complete outstanding development and trial-running assurance actions.
2.2 Conduction of Review and Critique for the Implementation of PLC Concept
The execution strategy of Crossrail was designed in the inner document "Crossrail Project Delivery Strategy" in the year 2009. The strategy was founded on the model in which the entire operations would be engineered, procured, developed, and commissioned by Crossrail and its industry partners. The series of integral projects was accomplished by the combined delivery group in which Crossrail was accountable for the distribution and declaration of the necessities of the sponsors (Van et al., 2012). Crossrail got involved in the agreement of "Network Rail", "London Underground" and other parties as it was essential to accomplish the program. Crossrail also clarified the health and security, ecological, and superiority regime under which the entire program was executed. Crossrail managed the financial resources and findings according to the requirements of the project. It also integrated different programs and also managed public relations.
The project was also established and developed based on sustainability. A performance declaration was recognized as a self-determining measure to the agreement of the contractors' contract-related essentials (Larsson and Larsson, 2020). The preparation of a technical assurance policy issued to record and describe these commitments and various tasks between Crossrail, the supply chain, the supervisors of infrastructures, and the operator. To achieve the benefit of contractors in the completion of the specific design an optimised early contractors intervention method was designed and implemented. When every tunneling and station contract was signed, the contractor and the designer had a duration of six weeks to evaluate the security design, constructively and effectively.
The findings of the design evaluations by the contractor then affected the end product and the building schedule of the contractor (Bushuiev and Kozyr, 2020). Via its designers, Crossrail held the ultimate construction liability to ensure that the finished design included all responsibilities and specifications. To ensure continuity among specifications and outputs in parallel contracts, the original disciplinary framework was used during the design, contracting, and operational stages.
2.3 Evaluation of the Rationale for Project Methodologies, Tools, and Leadership within the PLC
Waterfall Project Management Methodology
The Crossrail project in the Elizabeth line went through a series of complicated sequences. The entire approach of the project was centered on a correlated process of multiple phases (Atkinson, Crawford, and Ward, 2006). At least five to seven phases are adopted in the waterfall model which operates in a strict linear sequence, where a process does not commence before the previous phase is finished. The exact names of the stages differ, but they were initially identified in separate names by their inventor, Winston W. Royce.
Requirements: The core feature of the waterfall model is that at the initiation of the procedure, all consumer provisions are collected, permitting any other step to be organized before the cycle is finished without any further client interaction. It is supposed that at this point, all conditions can be gathered.
Design: The design procedure is preferably separated into two sub-categories: "physical" and "conceptual" design (Munns and Bjeirmi, 1996). The logical concept process is where suggesting and hypothesizing ideas are conceivable. The physical design process refers to the process of transformation of theoretical principles and schemes into practical requirements.
Implementation: The implementation step is where project managers and associated constructors integrate and create real functionality with the limitations and criteria from the earlier stages.
Verification: This phase is where the project is patterned and monitored by the client to confirm that it satisfies the provisions set at the beginning of the project (Atkinson, 1999). Through presenting the complete product to the customer, the project aim is accomplished. Crossrail has not yet started the railway services as the operations at the last stage of the project is ongoing and due to the external obligations concerning the coronavirus outbreak, the project cannot be opened for public usage. However, the Crossrail Authority is aiming to start its services in 2021.
Maintenance: Maintenance is when the project gets open for the customers and the clients come up with faults that occurred during the project development phase (Bannerman, 2012). These issues are resolved by the authority until the clients are satisfied with the project outcome.
Tools
Crossrail aimed to recruit management with best practices and Systems of delivery in the management of agreements (Van et al., 2012). Conventional project management approach such as work "breakdown structure" with related cost regulator and "financial management", a combined project management timetable, "commodity-based earned value reporting" and a robust trend and "change control process" was applied in this project.
Leadership
Guides for best practices were organized and released to discuss major risky operations, for instance, excavation preparation, building fire security, operation of the railway tunnel building, and use of sprayers concrete lining exclusion zones (de et al., 2020). Front-line leadership preparation for Subordinates was offered to all supervisor contractors. Therefore, the central section delivery committee rationalized its leadership again to be more coordinated to produce and deliver the official outcome to different stakeholders engaged in the service and management of the railway.
2.4 Critical Analysis of the Utilisation of Appropriate Theories, Concepts, or Models in PLC
The Triple Constraint Theory
A project is typically "bound" or limited by three components in the contemporary business world, which can be represented in various ways (Van et al., 2012). The three elements are described by the triple constraint theory, also called the "Iron Triangle" of project management.
Scope, schedule, cost
Scope, time, budget
Good, fast, cheap
Although the terms of the three triangle components might vary, they quantify the same things in actuality: a fixed budget, a fixed timetable and a fixed collection of requirements or performance metrics (Picciotto, 2020). In project management, the "triple constraint theory" states that a project operates within the restrictions of possibility, time, and cost. The other two would invariably be impacted by an alteration in one of the aspects. For instance, if a customer requests to add any additional things to the development of the project, to get those completed, they would have to invest more resources and time.
Scope: A project has various opportunities that are often transformed into practical deliverables (Klein and Müller, 2020). The project objectives often evolve with the advancement of the project. Additional stretches on news development of features influence time and budget. The Crossrail project of the Elizabeth line had also started with the initial scope alignment process. It covered the probable scopes of project development and advanced concepts were considered while outlining the scope for further development of the quality of the deliverables.
Time: Rapid development of the operations requires a heavy budget extension. Increased scopes often cause increased expenses. Short deadlines require increased resource capacity. During the execution of the Crossrail project, time frames were often altered due to various increments of project scopes.
Cost: Projects involve a range of sequential operations. Thus, consistent scheduling of these tasks requires proper cost breakdown and estimation (de et al., 2020). Increased project features and scopes can impact the time allocated for the accomplishment of the project which directly influences the cost structure of the project. Project cost and schedule were also controlled by a separate dedicated team yet the costs often fluctuated due to the gradual increase in project uncertainty and complexity.
2.5 Work Breakdown Structure
Phase 4
Phase 1
Phase 2
Phase 3
Outlining the objectives
Adapting the probable solutions to address the tasks
The information is given to the authorities and stakeholders
Project requirements are documented according to the objectives
The resources are aligned with the project's strategic moves
Cross-rail Elizabeth Line Project
Resource supply management
A budget is estimated
The time frame is established
The actions are executed
Controlling and monitoring system was implemented
The Elizabeth line is in its final stage and ready for final closure of the project
Communicating with the stakeholders
2.6 Gantt Chart
2008-2009
2009
2009-2011
2009-2020
2020-2021
Planning and budgeting
Beginning of the construction
Designing and advancing resource distribution
Development and strategic implementation
Expected Closure of the Project
Conclusion
Management of operations is mainly concerned with preparation, coordination, and control in the form of construction, industrial, or facility delivery. It is delivery-focused, meaning that an enterprise converts inputs to outputs proficiently in a suitable manner. From tools, machinery, and technologies to human capital, the inputs themselves may reflect everything. A project is a constant process and has a static start and end of time, and therefore a distinct possibility and resource is pre-estimated. A project is not an average set of processes, but a specific collection of operations that are organized on a sequential basis to fulfill a single purpose. The report has been developed to evaluate the process and implementation of operation and project management. A thorough discussion has been established in the report concerning the nuances associated with the operation and project of management.
Both concepts have been evaluated with particular company scenarios. The operation management processes have been rationalized in the context of Tesco. On the other hand, the project management evaluation has been established in the context of Crossrail's largest railway infrastructure project in Europe. A set of supporting evidence has been provided to justify these two concepts to provide a clear insight into them.
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