The History About The Capacity Planning And Control Business Essay


In business organization, every department has its own significance and role to make it successful. Every department has its own importance and not a single department can be declared as a imperative life of company. it is the joint effort of all the department to make any business successful.

Marketing, Sales, Human Resources, Information Technology, Distribution, research and Development and Customer services are mainly the very important function of any organization especially in this century or era. No one can declare from all of these mention department are sole responsible for the organization or corporate success. Every department has its own responsibilities and unique characteristics which guided the department to make it more vital. However, there is a department which is in coordination with the entire remaining department or studies say that it is a launch pad of the entire above mentions department and that particular department is called as Operation.

No matter, what is the function of the department; there will be a guideline and system available to make it work flow properly. Operation is the backbone of any organization, whichever organization or business we select operations play a very important or vital role to make it efficient and successful. Operations management not just make it efficient but also help in getting smooth workflow and create a link between all the departments of the organization. The success of any business is mainly depends on the process and the strategic planning’s.

Organizations goals must be achieved by the effective and useful operation management. Now, we can easily say that operation management ensures the life of the company and play a very vital role in any organization. This work is done for TESCO operation management mechanism. And in this assignment will discuss the operation management, operation function, management function, performances and strategies used by Tesco, product and service design, planning and controlling, inventory and material management, supply chain management, quality management and project management of TESCO

Operations Management:

"Concerns the activities, decisions and responsibilities of those managers in the organisation who have particular responsibility for managing some or all of the resources and processes, which comprise the operations function." (N Slack, S Chambers and R Johnston operation management, 6th Ed)

Operation Management has two scope

Company aspect

Customer aspect

Company Aspect

The operation management for the company is to deal with the operation in a cost effective, efficient and in a less costly way.

Customer aspect

Customer aspect is to require a superior quality of the manufactured goods and services.

Now, business operation require to be fulfil not only its own requirement but also the customers demand

OPERATIONS FUNCTION: - "of the organisation concerns with the process of transforming input resources into useful outputs and thereby adding value to some entity; this constitutes the primary and central function of virtually every organisation." (N Slack, S Chambers and R Johnston operation management, 6th Ed)

In simple words, we can say that the purpose of the operations management is to smooth flow of process to convert input into requiring output, in a cost effective way (Operations_Management)


Product & services

Transformed Process

Product Design, Process Planning, production Control, Maintainance


Men, Material, Machine, Capital, Information


Inventory, Quality, Cost

The fundamental objective of the operations management departments attempt to create the desired balance between the costs and revenue to get the maximum net operational profit, but at the same time to ensure the quality of the product and service. Operations management includes the activities that are involved in the process of production and distribution of the goods and services

Objective of the Operations Management.

The main objective of the operations management is to create a balance between the cost and revenue to achieve the maximum operation profit as well as at the same time provide a good quality of product and services. Operation management involve the activities that are used in the process of production and distribution of goods and services.

Company Overview:

Basically, TESCO is US chain and owned by US retail Wal- Mart store. It is the second largest chain of UK. More than 540 stores operate in UK which includes food and general merchandizing stores, supermarket, Tesco living store and Superstores. TESCO also sells its products online. TESCO offers low price goods with American approach shopping. (Tesco Profile

TESCO was formed in 1949 and its head office is located in leeds West Yorkshire. In 1965 first time name TESCO is used after the merger of Asquith chain of three supermarkets and Associated Dairies. Marketing promotion of TESCO is solely based on price and its slogan is Britain's Lowest Priced Supermarket (the-history-of-Tesco)


A service is the product of the interaction between a provider and a client or the client’s facilities, in order to relieve the client of a problem, or to enable him to resolve it in a satisfactory manner.

In front of Customer, Tesco is known for its "TESCO Price" and its marketing campaigns. Tesco main motive is to provide the good quality product with low prices as possible to make it customer happy and to compete the market.

Tesco has been able to expand so much so that it offers an online retailer. On internet mainly all the products is available for the customers. Tesco finance department is also available and its also offer insurance policies for cars, homes and personal good and also offer the mortgages and loans.

TESCO offers 5 to 10 percent lower price than the market average. Its means that Tesco offers low price product and its aims to increase profit by sales volume. This mean Tesco believe to increase customer bank to enhance it sales volume by offering low prices


TESCO involves those activities in which efficient performance i.e. quality, speed, dependability, flexibility and cost can be measured and effectiveness of strategies i.e. as far as quality is concerned all Tesco stores are clean and tidy. Decor is appropriate and attractive. Goods are in excellent condition. Staffs are well-mannered, friendly and cooperative. Tesco aim is to provide the high quality products

As far as speed is concerned, Tesco is trying to minimize the total time of purchasing in supermarket. All products and goods are immediately available. As far as dependability is concerned Tesco has its expected opening hours. Quantity of goods out of stock kept to a minimum. Keeping to practical queuing times. In Tesco we can find a proper parking. As far as flexibility is concern Tesco aim is to introduce new lines. Variety of stock is available. Tesco has ability to adjust the number of customer served. Tesco has capacity to get out-of-stock items. As far as cost is concerned, Tesco has technology and facilities cost, staff cost and bought in materials and services cost.


"The process by which some functional requirement of customer is satisfied through the shaping or configuration of the resources and/or activities that compose a product, or a service or the transformation process that produces them." (N Slack, S Chambers and R Johnston Operations Management, 6th Ed, Prentice-Hall, 2010)

Product and service design are those method in which idea is generated by the management or the employees, mostly by the group of designer innovating any new product on a regular interval to meet the requirement of customer and satisfying through shaping or configuration of the resources and activity which compose a product or a services or the transformation process that produces the product at any interval of time to meet the needs and demand of a product by the ultimate user (Cowe A. et al., 2010, p221)


Volume and variety:

A relationship between volume and variety are as shown: the operation general position is diagonal, when the volume is high, variety is low or vice versa

Tesco offers high variety of products and product is available in high volume. But in this case Tesco process is standardized for all customers. Tesco aim is to provide similar kind of product to all individuals. Tesco super market offers high volume of product to its customers

Variations: Tesco is in the lofty levels of demand variation and has varying capacity.

Tesco has to keep in touch with the variations in customer demand continually which would lead to high unit cost.

Visibility: A new solution named "hybrid till" has been implemented at TESCO which allows the customer to make easy check out and tills are always open for customer. Tesco normally used various communication tools like Tesco gift card, Tesco vouchers, and posters at the entrance of the super market to help customer which product is available on discount. Also all the promotions is available on Tesco website.

Operations Planning and Control

Operation planning and control are an important part of the organisation. Planning is a formalisation of what is intended to happen at some time in the future. And control is the process of coping with changes in these variables (Slack et al., 2004).


Capicity Planning and control reconciles the required availability for an operation's products and services with the operation's capacity to deliver those (Slack et al., 2004). Capacity linked mainly with, machines, manpower, and supplies of the organisation and all of these are main resources where planning and control is service.


Two managers is working in tesco

Store Manager

Service manager

And also there is number of employee are working in tesco. Tesco recruit and training there staff. Also Tesco give confidence staff to become part owners of the business and share in the success. Also tesco offers employees a discounted price on shares. (Tesco Plc, 2011).


Tesco do business with almost 2,000 own-brand primary suppliers in 98 countries. The supply chain is consist of a relationships – from farmers and growers through to processors, manufacturers and distributors but mainly depend on local distributor (Tesco Plc, 2011).



Supply chain management is concerned with managing the flow of materials and information between the operations which form the strands of 'chains' of a supply network (Slack et al., 2004). Supply chain management needs consider and satisfy end customers.

The current Tesco supply chain network is well documented (IGD, 2003b). The operations performance is now much more rigorously monitored, mainly through the 'steeling wheel' approach widespread throughout Tesco. Any distribution centre steering wheel focuses on operations which include safety and efficiency, people which include appointment, development, commitment and values, finance which include stock results and operating costs, and the customer which includes accuracy and delivery on time (Fernie and Sparks, 2004). Also Tesco measure these performance at all levels, quality standards are maintained and enhanced.


Quality planning and control seeks to deliver products and services at their required specification or above it (Slack et al.2004). The operation views quality is consistent conformance to customer's expectations. Quality is seen as being so important by most operations (Slack et al., 2004).

Tesco ask the suppliers to comply with their Nature's choice scheme to ensure their fruit, vegetables and salad are grown to high safety, quality and environmental standards. Also Tesco offer customers fresh and safety and quality seafood and organic foods. Tesco is committed to purchasing timer and timber products only from legal, sustainable sources (Tesco Plc,2005).