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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.
Six Sigma Method
Lean Principles
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.
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
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.
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.
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.
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.
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.
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 |
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.
References
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Atkinson, R., Crawford, L. and Ward, S., 2006. Fundamental uncertainties in projects and the scope of project management. International journal of project management, 24(8), pp.687-698.
Bannerman, P.L., 2012. Why good project management is not enough: liabilities of incumbency and newness.
Boer, H., Berger, A., Chapman, R. and Gertsen, F. eds., 2017. CI changes from suggestion box to organizational learning: continuous improvement in Europe and Australia: Continuous Improvement in Europe and Australia. Routledge.
Bushuiev, D. and Kozyr, B., 2020. Hybrid infrastructure project management methodologies. Innovative Technologies and Scientific Solutions for Industries, (1 (11)), pp.35-43.
de Mattos Nascimento, D.L., Quelhas, O.L.G., Caiado, R.G.G., Tortorella, G.L., Garza-Reyes, J.A. and Rocha-Lona, L., 2019. A lean six sigma framework for continuous and incremental improvement in the oil and gas sector. International Journal of Lean Six Sigma.
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