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Running Head: OPERATION MANAGEMENT

To What Extent Has Warburtons Successfully Implemented Continuous

Improvement?

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Contents

Executive Summary .............................................................................................. 2

Introduction ........................................................................................................... 3

Defining Key Terminology ..................................................................................... 4

Part 1 of Report..................................................... Error! Bookmark not defined.

What is Operations Management?........................ Error! Bookmark not defined.

Why is Operations Management important to Corus Construction & Industrial .... 6

Part 2 of Report..................................................... Error! Bookmark not defined.

Role of Operations Manager ................................................................................. 7

Part 3 of Report..................................................... Error! Bookmark not defined.

To what extent do you think Corus Construction & Industrial (CCI) has

successfully implemented continuous? ............................................................... 11

Recommendations to CEO for improving operations management at CCI ......... 14

Conclusion .......................................................................................................... 16

References ......................................................................................................... 17

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Executive Summary

Set out the key ideas, conclusions and arguments of the report.

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 To What Extent Has Warburtons Successfully Implemented Continuous

Improvement?

Introduction

The process of operation management (OM) include adequate

organising, planning, and supervising of organisational operations to

implement improvement strategies (Lam, et al., 2015). Such improvement

can be beneficial for the firm in increasing the profit generation and

sustainability maintenance (Wang, et al., 2015). However, it is necessary

to ensure that the implemented adjustment or changes are aligning with

the strategic objectives and goals of the organisation (Merriam-webster,

2019). Therefore, in-depth analysis and evaluation of the existing

operations are significant Backlund and Sundqvist, 2018).

This report focuses on evaluating the extent to which the

Warburtons, the second largest brand of baked goods in the UK has

successfully implemented the continuous operation management

(Backlund and Sundqvist, 2018). This report will argue whether the firm

has been efficient in such process. Moreover, the report will be structured

in 3 parts to accomplish the aim of the report in an effective manner. The

first part will provide an in-depth demonstration of OM and its importance

in the Warburtons. The second will critically appraise the role of operation

manager within the organisation. In the third part, the case study of

Warburtons will be discussed to evaluate the successful implementation of

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continuous improvement through effective operation management within the

organisation.

Defining Key Terminology

Extent

In the business context, extent can be defined as the degree or length to

which something exists and poses influence within the organization (Merriam-

webster, 2019).

Successful

The term successful in business is considered as the efficacy of the

organisation to continuously improve its processes, attaining high productivity

and revenue. A business can be called successful if it becomes able to satisfy

the expectations of customers by providing improved services or products

(Khatir, et al., 2016).

Implementation

Implementation is the procedure in which a plan or policy is executed

within the organisation. Managers ae responsible for the implementation of the

identified plan through communicating the determined goals to the employees

effectively, considering the required and available resources (Wild, 2017).

Continuous Improvement

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 In terms of definition within the business context, continuous

improvement, also known as “continual improvement” is referred to the

ongoing process of product and service improvement. This process seeks

“increment” or “improvement” in organisational processes and profits

(Richards-Gustafson, 2019).

Operation Management

In term of definition, Slack had defined Operation Management

(OM) as “the set of activities that create goods and services through the

transformation of inputs into outputs” (Slack and Brandon-Jones, 2018).

According to Bharath M, OM is referred to “the administration of business

practices to create the highest level of efficiency possible, within an

organisation” (Lam, et al., 2015). Considering these definitions, it can be

interpreted that to achieve the goal of high profit, certain practices have to

be adapted for the transformation of inputs into outputs as stated by Slack.

These practices are the activities involved in the proper management,

organisation, and coordination of organisational processes (Lce, 2019).

Moreover, successful accomplishment of these activities contribute

in increasing the efficiency and productivity within the organisation.

contributing in this aspect, Galloway et al. (2012) described the goal of

OM by stating that “Operation management is concerned primarily with

manufacturing or the change of state of physical goods”. It can be

interpreted that OM is concerned with the conversion of labour and

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resources into goods for maximising the revenue and productivity of the

organisation. These definitions demonstrate that the main objective of

operation management is perform the transformation process successfully to

achieve the organisational gaols.

Importance of Operations Management in Warburtons

Within an organisation, operation management is responsible for various

functions that contributes in increasing the sustainability and growth of the

business. One of the primary function of OM involve finances (Slack and

Brandon-Jones, 2018). Effective management in the organisation ensures that

financial resources are being utilised in productive activities rather than being

wasted in unproductive. It is important to manage the finance of the organisation

for optimised utilisation of resources, decreasing the risk of resource scarcity. In

the case of Warburtons, it can be assessed that the organisation is responsible

for manufacturing and distributing two million bakery goods all over the UK

(Backlund and Sundqvist, 2018).

The efficient processes in different supply chains achieve this objective.

Moreover, according to the long-term plan of the organisation, Warburtons is

aiming to focus on quality, high sales, smooth running of bakeries, budget

management, and betterment for the employees. Considering these goals of the

company, it is necessary to have adequate and proper finance management to

avoid the risk of resource, raw materials or cost limitation. These risks can

become a barrier in the accomplishment of organisational goals (Wang, et al.,

2015).

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 Moreover, OM involves development and implementation of

effective strategy, important for the organisational and employees’

improvement and well-being. For Warburtons, establishment of

relationships with the farmers, employees, retailers, and stakeholders

based on mutual benefit is significant. OM is important for the

establishment of such relationships with the members of the company,

contributing in their well-being and growth (Lam, et al., 2015).

Motivation is a significant element within the working environment;

OM ensures that each employee is motivated and inspired towards high

productivity and creativity associated with the organisation. In Warburtons,

such management is important for offering motivation to the employees by

making the gaols more clear. Furthermore, the company focuses on the

employee improvement through different strategies of giving rewards that

make them motivated and focused. Therefore, it can be evaluated that

operation management has a vital role in Warburtons to manage both

external as well as internal processes (Warburtons, 2019).

Role of Operations Manager

Operation manager is the key personnel of the organisation who is

responsible for managing all the processes involved in the operation

management system. Operation manager is considered as the important

part of upper-level of hierarchy management and ensures that

organisation is working efficiently (Prajogo, et al., 2016). Furthermore,

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operation manager has the accountability of other managers in the different

departments for their adequate management. They also direct the employees in

successful accomplishment of individual activities. Thus, it can be concluded that

the operation manager manages various areas in Warburtons to assure

efficiency and productivity with decreased costs (Natter, 2019).

Critical Thinking

One of the main roles of operation manager is to reflect critical thinking

during strategic decision-making and management. Operation manager identifies

the need of the customers and align them with the processes of the organisation.

However, this can be achieved only if the manager has effective critical thinking

skills (Geissdoerfer, et al., 2018). Operation manager is responsible for

maintaining the stability of the organisation. Moreover, they also resolve conflicts,

manage budgets, and ensure customer satisfaction.

Therefore, it is necessary that they have “big picture” perspectives, which

can be attained through critical thinking. For example, in the case of Warburtons,

it can be evaluated that regardless of being in a secondary sector, the company

is managing its business in the private and secondary sectors both. Although the

company does not possess any farms itself for the natural resources, however,

Warburtons has managed to function closely with the resource suppliers such as

farmers in Canada and UK. It is achieved only through strategic thinking of the

operation manager within the organisation (Khatir, et al., 2016).

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Supervision of Supply Chain

Operation manager is also responsible for overseeing the

management processes of different supply chains. Operation manager

has to ensure that there is a smooth material or resource supply. Such

personnel has to assess that the manufactured products are inventoried,

supplied, and distributed to the retailers and customers. The operation

manager performs the comprehensive monitoring and evaluation of these

processes (Richards-Gustafson, 2019).

For example, Warburtons is able to manage the services in

different supply chains due to the efficient skills of operation manager.

Services are not just physical products but also the added value to

consumers with the products (Merriam-webster, 2019). The operation

manager of Warburtons ensures that the customers’ expectations are met

in the 15 depots and 14 bakeries effectively. Moreover, operation manager

oversees delivery vehicles of Warburtons, which is above 900 in numbers.

In the organisation, operation manager ensures that the fresh breads are

being delivered on time with high quality across Scotland, England, and

Wales daily (Warburtons, 2019).

Staffing and Workflow

Another important role of the operation manager is to plan and

manage the staffing requirements and workflow within the organisation

(Geissdoerfer, et al., 2018). They are responsible for the hiring and

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training of the employees and resolving disciplinary problems amongst the

employees. As the operation manager has overall knowledge about the

operational processes of the organisational, thus, they can manage the workflow

efficiently (Prajogo, et al., 2016).

This is achieved by appropriate assignment and reassignment of the

activities that can enhance the organisational efficiency. For example, the

operation manager in Warburtons using critical thinking performs many deliveries

in a day but in different time routines (Richards-Gustafson, 2019). Operation

manager utilises advanced technologies such as software to monitor and track

the available routes and adjusting the schedule accordingly. This step reduces

the risk of road congestion, facilitating timely deliveries to the retailers and

customers (Khatir, et al., 2016).

Management of Different Operations

The roles and responsibilities of the operation manager is not limited to a

particularly area rather it is more diversified (Wang, et al., 2015). Operation

manager is responsible for supervising the staffing, finances, marketing, and

policies and their adequate management within the organisation. Furthermore,

operation manager is involved in the identification and establishment of the

organisational goals. For example, it can be demonstrated from the case of

Warburtons that the identified goal plan for the future is accomplished only with

the efforts of operation manager. However, these gaols can be only developed

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through efficient evaluation of the current processes that is ensured by the

operation manager (Backlund and Sundqvist, 2018).

Extent to Which Warburtons Has Successfully Implemented Continuous

Improvement

Effective operation management in Warbutons is important for

continuous improvement of the organisation. According to a research, it

has been observed that the organisation has the total share of 25% in the

market of the UK (Khatir, et al., 2016). There are around 5000 employees

working in 15 distribution units and 14 bakeries of Warburtons. Amongst

these numbers, more than 800 employees are known to be working since

15 years. This organisation is a family-run business and has been

operating for over 130 years in the country (Warburtons, 2019). The main

objective of Warburtons is to supply continuous improvement in the quality

of bakery goods through investment in new goods and innovation.

The identified goals of the organisation for long-term plan include

efficient running of the bakeries, cost management, and increased sale

rate with high quality goods. To accomplish these goals, the organisation

has adapted a sustainable approach in its operation management system

(Wild, 2017). Warburtons has implemented strategic practices within its

working environment to meet the needs of the customers through effective

management of supply chain. Evaluating the success of the continuous

improvement plan is considered to be critical for the organisation.

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However, before implementation of such plan, its value for the organisation

should be identified (Galloway, et al., 2012).

This assists the operation management system in safe allocation of

resources, which can increase the competitiveness of the business in the market.

One of the extensively used model for measuring the success of the continuous

improvement is “Plan-Do-Check-Act” cycle. This model was developed by W.

Edwards Demings and entails observation and measurement of results

(Backlund and Sundqvist, 2018). Three ways can determine the extent to which

the implemented continuous improvement has been successful for Warburtons.

They include improved financial result, reputation in the public, and customer

satisfaction (Wild, 2017).

Supply chain involved the production of goods through different stages

from raw materials to the finished products. It can be evaluated that Warburtons

has added “value” in the goods during production (Backlund and Sundqvist,

2018). Through efficient operation management, the organisation has

accomplished the goal of value addition through different ways in each phase of

product manufacturing. In bread production, Warburtons utilises natural raw

material like wheat for the finishing the baked goods. This results in improving

the quality of baked goods, directly increasing customer satisfaction. Other steps

that are initiated include using packaging that keep the goods fresh, convenient

purchasing locations, sustainable materials, and using the brand reputation for

increasing the sale (Wild, 2017).

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 Operation management in the organisation’s supply chains ensure

that such chain of production is being accomplished properly and value is

added comprehensively. It can be observed that the organisation has

integrated continuous improvement through added value in its production

process as well (Slack and Brandon-Jones, 2018). Such integration

contributes in improving the generated organisational revenue by attaining

customer satisfaction from improved quality. On the other hand, it has

been demonstrated that tertiary sector is recognised to have the biggest

market share in the country’s economy in the last few decades. Moreover,

75% of Gross Domestic Product (GDP) is estimated to be contributed from

service industries (Khatir, et al., 2016). It can be argued that Warburtons

has emphasised in placing the added values in their services as well.

This is achieved by developing relationship with retailers who have

efficient and reliable services. These retailers can assist Warburtons in

assessing and successful meeting the expectations of the customers.

However, it can be evaluated that the organisation may not be efficient in

implementing improvement in this aspect. It is due to the fact that the

organisation has more than thousands of retail outlets, and ensuring each

retailer is portraying a reliable brand image is not easy. On the other hand,

Warburtons has developed a sustainable supply chain by providing

“quality without compromise”. It has been reported that over 95% of the

wheat used in bread making come from reliable and natural sources

(Prajogo, et al., 2016).

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 This is achieved through mutual relationship with farmers who ensure the

supply of best quality raw materials. Moreover, Warburtons has efficiently

manage its cost by reducing waste production and adequate risk assessment to

ensure safety measures (Geissdoerfer, et al., 2018). This has contributed in

continuous improvement of the company by maintaining efficient operations in

the supply chain. It can be evaluated that the company has knowledge about the

significant of technology. Due to this reason, it is continuously working for the

integration of advanced technology within the organisation (Merriam-webster,

2019).

For example, Warburtons has adapted the use of gas burners and oven

insulation that automatically shut down when the production is finished. Such

integration not only decreasing the labour and energy costing but also improves

the high quality production of the goods (Lam, et al., 2015). Therefore, it can be

interrelated from the findings of the report that Warburtons has been successful

in efficient implementation of continuous improvements in its supply chain at

each stage from optimisation of raw materials, production to the supply of the

baked goods. However, this has been achieved with the help of effective

operation management in the working environment of Warburtons (Wang, et al.,

2015).

Recommendations for Improving Operations Management in Warburtons

Although Warburtons has been efficient in maintaining effective operation

management within its working environment, however, continuous improvement

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is required for enhanced growth. Several recommendations can be made

in this context that can assist the organisation in improving the operation

management within Warburtons (Richards-Gustafson, 2019). The

organisation can optimise the supply chain processes by the

establishment and implementation of compliance policies associated with

the vendors (Backlund and Sundqvist, 2018).

This may be beneficial in ensuring that efficient and reliable

services with added values are being offered to the customers. It can be

suggested that the organisation should develop a flexible configuration

within chain of production (Lce, 2019). Such flexibility will contribute in

accommodating new introduced products within its supply chain.

Additionally, flexibility assists the organisation in uncertain and

unpredictable conditions in the markets by producing effective response to

meet the customer needs (Lam, et al., 2015).

Another recommendation is associate with the minimisation of

inventory (Khatir, et al., 2016). It can be evaluated that inventory utilises

space in the organisation, increasing the cost spends on renewable

energy as well. Although some inventory contributes in the running of

smooth operations, however, excessive of it can become a barrier in the

material flow within the organisational processes (Geissdoerfer, et al.,

2018).

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Conclusion

It can be concluded that operation management is an important

part of the organisation, which ensures accomplishment of activities including

organising, planning, and managing. Successful completing of such activities

helps the organisation in reaching the identified goals through continuous

improvement. It can be evaluated in the case of Warburtons that successful

implementation of continuous improvement has increased the sustainability of

the business. However, it can be argued that the organisation has been efficient

in increasing the quality of products by using natural raw materials and advanced

equipment.

This has contributed in obtaining customer satisfaction and high revenues.

Moreover, with efficient operation management in the organisation, delivery of

the baked goods to the retailers and customers on time are ensured.

Furthermore, the organisation manages its operational processes using critical

thinking and decision-making in the market. Therefore, it can be interpreted that

Warburtons is efficient in meeting the expectations of the customers and

maintaining its brand image through the processes of operation

management.

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 References

Backlund, F. and Sundqvist, E., 2018. Continuous improvement: challenges for the

project-based organization. International Journal of Quality & Reliability

Management, 35(7), pp.1306-1320.

Galloway, L., Rowbotham, F. and Azhashemi, M., 2012. Operations management in

context. Routledge.

Geissdoerfer, M., Morioka, S.N., de Carvalho, M.M. and Evans, S., 2018. Business

models and supply chains for the circular economy. Journal of cleaner

production, 190, pp.712-721.

Khatir, Z., Paton, J., Kapur, N., Thompson, H. and Toropov, V., 2016. Energy efficient

bread baking through the appliance of science. Baking Europe, pp.37-41.

Lam, M., O'Donnell, M. and Robertson, D., 2015. Achieving employee commitment for

continuous improvement initiatives. International Journal of Operations &

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