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Managing Business Activities to Achieve Results
Content
Task 1.1 – Interrelationship between different processes and functions of Tesco…………………….. 3
Task 1.2 – Methodology for processes mapping…………………………………………………………………… 4
Task 1.3 – Output of the process and the quality gateways of Tesco………………………………………. 6
Task 2.1 – Production plans……………………………………………………………………………………………… 7
Aggregate Production Plan……………………………………………………………………………………………. 7
Master Production Plan………………………………………………………………………………………………… 8
Production scheduling………………………………………………………………………………………………….. 8
Task 2.2 – SMART objectives…………………………………………………………………………………………… 8
Task 2.3 – Organizational standards of quality…………………………………………………………………….. 9
Organizational Structure……………………………………………………………………………………………….. 9
Budget……………………………………………………………………………………………………………………… 10
Standards and Specifications………………………………………………………………………………………. 10
Task 2.4 – Monitoring and control……………………………………………………………………………………. 10
Task 3.1 – System design……………………………………………………………………………………………….. 11
Task 3.2 – Quality culture………………………………………………………………………………………………. 11
Task 3.3 – Recommended improvements………………………………………………………………………….. 12
Task 3.4 – Implications of the proposed changes……………………………………………………………….. 13
Task 4.1 – Risk assessments on health and safety………………………………………………………………. 14
Task 4.2 – Health and safety legislation, policies and procedures…………………………………………. 15
Task 4.3 – Systematic review of organizational health and safety policies and procedures……… 16
Task 4.4 – Health and safety policies and procedures…………………………………………………………. 16
References……………………………………………………………………………………………………………………. 17
Task 1.1 – Interrelationship between different processes and functions of Tesco
(1) Tesco PLC is a British retailing giant dealing in grocery and general merchandise. With a mission to provide consumers with an enjoyable experience and a high-quality lifestyle, the business aims to deliver greater value (“Core Purpose”, 2015). Its product portfolio comprises of groceries, clothing, wine, Managing Business Activities to Achieve Results as well as financial services. Presently, Managing Business Activities to Achieve Results it operates in 12 countries spanning Europe and Asia (“Our Businesses”, 2015).
(2) The corporate objectives of Tesco PLC are evident in their strategic priorities. Firstly, the company aims to “regain” its competitive edge in the UK market by enhancing its penetration by opening 49 new outlets (“Strategic Report”, 2015). Further, the company is reviewing its product ranges so as to eliminate redundancies. Additionally, Managing Business Activities to Achieve Results the company aims to reduce its debt – reflected by a financial leverage of GBP 22 billion –to provide greater value to its shareholders (“Strategic Report”, 2015).
(3)
Figure 1.Organizational Structure of Tesco PLC.
Figure 1 illustrates the organizational hierarchy at Tesco PLC along with the key functional areas.
(4) Getting the products in stores through the supply chain is a major process for Tesco (Benson, 2009). Tesco uses an automated system for inventory management called the Continuous Replenishment (CR) system (Zhao, 2014). Figure 2 shows the process of stock replenishment at Tesco.
Figure 2.Stock replenishment at Tesco adapted from (Fernie and Sparks, 2009).
(5) The functional areas – finance and operations – are fairly intertwined. Reducing debt implies that Tesco must save up on its costs (“Strategic Report”, 2015). This can be done by mitigating the inefficiencies in its retail operations. In particular, Managing Business Activities to Achieve Results procurement and distribution are two aspects of the supply chain that must be monitored closely for redundancies. In addition, ensuring the availability of its products across various outlets requires joint efforts in the functions of marketing, sales, and retail operations.
Task 1.2 – Methodology for processes mapping
(1) Business process modeling refers to the representation of the involved steps, participants, and decision logic in a specific business process. Diagrammatic (e.g. state diagrams), Managing Business Activities to Achieve Results descriptive (e.g. operational procedures), Managing Business Activities to Achieve Results and active models (e.g. Marga simulation software for entrepreneurial startup) are three methodologies of business process modeling.
(2) Process mapping is a visual way of representing a business process and comes under the diagrammatic modeling technique. The following is a list of activities involved in order replenishment at Tesco stores:
- Point-of-sale (POS) transactions at checkout.
- Stock information updated on the information system.
- Low levels of stock that reach reorder point trigger replenishment alerts.
- Continuous Replenishment (CR) is triggered.
- Orders are made to the supplier.
- Use of primary distribution i.e. Tesco’s domestic fleet to transport goods from supplier.
- Goods reach Tesco depots.
- Orders are assembled.
- Goods are delivered to multiple Tesco outlets.
- Goods are replenished in stores.
(3)
Customer-facing side |
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Supplier |
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Tesco Depot |
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Store managers |
Figure 3. Swap lanes for stock replenishment.
Figure 3 shows a swap lanes diagram for stock replenishment at Tesco stores.
(4) Flowcharts also provide a visual way of representing the involved entities and activities in a business process. They are useful in illustrating the sequence or flow of a process in a way that also shows the logic of the process. Because flowcharts can articulately document the activities involved in a process, they are ideal for diagrammatically representing process flows.
Task 1.3 – Output of the process and the quality gateways of Tesco
(1) Process performance measures provide a quantitative way of evaluating and assessing the performance of a process thereby acting as a control. Key performance indicators (KPI) are measurable metrics that reflect performance. In the case of Tesco, it has identified 6 KPIs: customer loyalty, colleague recommendation, trusted partnerships, Managing Business Activities to Achieve Results sales growth, profit, and operating cash flow (“Strategic Plan”, 2015).
(2) Efficiency refers to the productive employment of the least inputs to attain maximum outputs. Effectiveness however refers to doing a task right. In order to achieve its goals, Tesco must reduce its costs (input) in order to earn customer loyalty, profits, sales, and so on (output).
(3) (a) Sales growth measures financial efficiency in terms of Tesco’s sales turnover (“Strategic Plan”, 2015). Enhancing sales will enable Tesco to reduce its leverage .
(3) (b) (i) Supplier satisfaction reflects the strength of Tesco’s partnership with its suppliers so as to deliver its goods reliably on time.
(3) (b) (ii) Profitability and operating cash flows are two indicators that reflect Tesco’s financial position and is relevant for shareholders to make their investments.
(4) (a) Sales growth reflects Tesco’s sales revenues relative to previous years.
(4) (b) Tesco’s main focus for maintaining its quality remains on its employees at the input stage. At the output stage it measures customer loyalty as a determinant of quality service. Although accuracy indicators are crucial they are not prioritized by Tesco.
(5) In Tesco, productivity relates to the generation of high revenues on minimal costs by utilizing optimized production processes and supply chain activities. Benchmarking is used as a control for eliminating inefficiencies at the supply chain.
Task 2.1 – Production plans
Aggregate Production Plan
The aggregate production plan documents the total output or volume to be produced within a specific period. The plan usually presents the output in terms of number of units. These units of aggregate products are usually computed based on consumer demands for the products. In this regard, three strategies – including demand chase strategy, level strategy, and mixed strategy, are employed to plan production in response to the demand fluctuations.
The most appropriate strategy in the case of Tesco would be mixed strategy. Neither of the two strategies – chase or level – can be implemented in their pure forms. Tesco’s stores need constant stocks and delaying orders or allowing backlogs cannot work in this situation. Also, the company cannot simply rely on hiring and firing employees based on demand. In fact, Tesco could use mixed strategy to subcontract suppliers for delivery and to back up inventory before peak demands.
Master Production Plan Managing Business Activities to Achieve Results
In order to attain the corporate objectives for the year, there is a need to optimize retail operations. Doing so will help cut down on the costs and reduce the financial leverage. Major inefficiencies will need to be removed from the supply chain, which cause unnecessary delays in delivery.
Production scheduling
Production scheduling refers to the use of input information including order information, inventory level, production capacity, and sales forecasts in order to…
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