Operations and Project Management: A Review and Critique of Operations Management Principles within AstraZeneca Plc

This report provides a review and critique of the implementation of operations management principles within AstraZeneca Plc, including an analysis of the extent to which operations management meets organizational requirements. It also discusses continuous improvement as a philosophy and describes Lean principles, and provides a continuous improvement plan with justified recommendations for improvement.

ID
Unit Number and Title Unit 187 –
Operations and
Project Management
Title Review and Critique
of Operations
Management (Part
1

Table of Content
Part 1: Business Report
1. An introduction to chosen organization p
2. An explanation of operation vs operations management p
3. A review and critique of the implementation of operations
management principles within the chosen organization p
4. An analysis of the extent to which the operations management of
the organisation in the case study meets the requirements of the
organization p
5. Discussion of continuous improvement as a philosophy and
describe the Lean principles p
6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review and
critique of operations management principles within your
organization p
7. Conclusion p
References p
2

1. An introduction to chosen organization
AstraZeneca is a global pharmaceutical company which is situated in United Kingdom. It
provides innovative medical devices to millions of Patients across the globe. It was founded
in the year 1999 and it is a fusion of Swedish Pharmaceutical and Astra AB company. It
mainly focus on creating genuine medicines and vaccines that cures all kinds of disease of the
patients. It has greater contribution in the healthcare sector and bring major change in
scientific world where it possess commercial excellence and diversity of healthcare
environment. AstraZeneca promotes innovation and launches various new medicines to
provide effective service to the clients (Chen and Yang, 2018). The major reforms has been
taken place in the health sector where pharmaceutical company like AstraZeneca had
developed vaccines to get relief from symptoms of COVID. There main objective is discover,
develop and deliver life changing treatment and increase the potential to cure the multiple
disease of the patients. They are making continuous efforts to enhance R& D productivity to
grow their business by fulfilling the need of the society. It's main mission and vision is to
create value in the market in order to compete with the other organization and reducing the
impact of disease from the planet.
2. An explanation of operation vs operations management
Operation: It refers to operational activities that are taken place in day to day functioning of
an organization. It increases the efficiency and productivity of the business. It is performed to
meet the desired result and profit of the organization. In order to operate a business, an
organization is required to allocate the resources to utilize it in more effective manner. An
organization conducts various kinds of activities that are relevant for meeting the requirement
of clients and to add value in the business. Every organization operate its business to earn
profit and enhance the growth of the business to win in the competitive market.
Operation management: It is important for the effective supervision of the functioning of an
organization. It directs, guides and monitor the staff to work in the systematic manner to
achieve the desired result of the organization. Operational Management consists of planning,
organizing and motivating the employees to operate the business activities according to the
established plans and policies that are made to sustain growth of the organization. It helps to
generate revenue, and supervise the staff to convert raw material into useful product to meet
the need of the potential consumers.
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These two terms are used to facilitate effective guidance in an organization to avoid errors at
workplace. It increases the efficiency and productivity of the organization. Although, it is
significant for an organization to manage all ts business activities to bring transparency and
promote the efforts of its employees who are playing crucial role in the operation of a
business.
3. A review and critique of the implementation of operations
management principles within the chosen organization
Operation Management is important to administer the business activities to maximize
efficiency and profit earning capacity of the organization. It includes planning, organizing
and directing the organization's processes to balance between the cost and revenue to achieve
the desired result. An operational activity is focused on converting resources into more useful
and efficient manner so, that the product developed out of it, can be easily used (Gaikwad and
Sunnapwar, 2020). The operational manager coordinates and integrate the work among the
staffs. The range of principles which are made to operate and mange the organization.
These principles are discussed below in detail:
Accountability: This principle says that every manager is accountable for the operation of
business activities. They are trying to balance between the resources and its implementation.
It defines the mission, vision and core values of an organization that guarantees the higher
performance of the members to achieve the desired result. In context to AstraZeneca Plc,
higher authority are responsible for production and management of activities to fulfill the
medical need of the society in order to provide them effective and quick remedial solution.
 Advantages
Accountability is important to increase dedication and inspiring others to develop choices
and implement that choices in the form of action (Sreedharan V and Sunder M, 2018). It
identifies the knowledge and skills of the members working in an organization to attain
desired result. In context to AstraZeneca, each authority is responsible for the product which
they discover, develop and introduce that medicines in the market.
 Disadvantages
This principle causes mismanagement in the organization due to ambiguity and overlapping
of works. Also, it increases conflicts and misunderstanding at workplace. In context to
AstraZeneca Plc, manager should try to create positive and harmonized environment at
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workplace where the effort of each employees will be beneficial for the operation of a
business. It also helps the organization to engage the members in the process of decision
making to increase their involvement in the functioning of an organization.
Lean production: This principle deals with the optimum use of resources for its effective
and efficient use. The production capacity of the organization can be evaluated with the help
of their operational activities that are conducted by converting raw material into final product
for their consumers. The process and product can be developed through reducing wastage and
enhancing the revenue capacity of the organization.
Advantage:it is one of the principle that emphasis on manpower, machine and other inventory
demand that contributes in the production of product. It help the business to avoid wastage
and maximize profit through various means. It is an approach that analyses the customers
need and demand in the market. It build customer relation and contributes in the effective
operation of a business.
Disadvantage: This principle may increase the chances of error and mistakes in the operation
of a business (Alexander, Antony and Rodgers, 2019). It reduces the flexibility in the
working system and sometime, have negative impact on the business.
Taylor’s theory of Scientific Management:This theory was first introduced by the Frederick
Winslow Taylor. It emphasis mainly on the productivity and efficient use of resources to
carry on business activity in most appropriate manner. According to him, workers are highly
motivated with the monetary assistance that help them to put all their efforts towards the
organizational goal. He had given the “rule of thumb” to ascertain the manner of performing
the job task. He believes that performance of the worker must be evaluated to implement
effective plans and trained the worker so, that they can easily performed their assigned roles
and responsibilities at workplace. This theory is given to prevent conflicts and chaos at
workplace and encouraging cordial relation between the workers. The satisfied employees are
considered as the asset of the organization who contributes in the productivity towards goal.
 Advantage: With the help of this principle, the efforts of the workers are recognized
only when they possess desired skills and knowledge related to their field. This
approach contributes in engaging the employees in various training program where
they can increase their capabilities to contribute in the operation of a business. It aims
to harmonies the relation among the workers to enhance their efficiency.
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 Disadvantage: This approach possess few disadvantages as it involves huge cost that
is incurred to rained and motivate the employees for the business. It is not an
appropriate principle for the small scale enterprises (Grubb, 2018). It requires better
coordination and integration of all the employees to effectively manage all the
activities of the management.
4. An analysis of the extent to which the operations management
of the organization in the case study meets the requirements of
the organization
AstraZeneca Plc is a global bio pharmaceutical company that is established to meet vision
and mission of a company. The ultimate goal of the company is to focus on quality control,
productivity and cost reduction procedure to meet the desired result. The company is using
the operational management principles to develop more effective technique where different
business activities can be performed. The AstraZeneca company is known for its quality
services that cures multiple disease of their patients and exporting the product in various
countries. The organization provides training and development program to the employees to
enhance their diversified knowledge in pharmaceutical industry. Although, customers are
looking for quality product that are easily available in the market. It helps to meet
competitive advantage in the market and leads to increase in brand value.
5. Discussion of continuous improvement as a philosophy and
describe the Lean principles
Lean Production is one of the management principle which is followed by an organization to
make continuous improvement in the operational efficiency. It does not have any impact on
the customers value but important to consider for avoiding the wastage and enhancing the
production capacity of an organization. It includes different methods like Kaizen, Andon and
Kanban. The six sigma is considered as quality control tool that are used by the organization
to reduce the errors and defects, and boost their profit earning capacity. It increase the
performance and efficiency of the work. It is most effective tool that are used by the business
tycoons to achieve long term success in the organization. It is applicable on all forms of
business organization that eliminates waste and unevenness in the production of a product. It
aims to enhance the productivity and quality of the product that are especially manufactured
for the consumer to fulfill their medical needs.
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6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review and
critique of operations management principles within your
organization
Source Principle Outcomes
Cost kaizen Cost is determined as an important factor that requires
effective plans and policies to manage and administer it. In
order to reduce the cost of the AstraZeneca, the Kaizen
principle can be used. It is used to make necessary changes
in the operational activities that gives them desired result. It
encourage the organization to reduce wastage and utilize the
resources in most efficient way (Henrique and Godinho
Filho, 2020). As a result of it, company can save their cost
and expenditure.
Quality TQM It is another approach which helps in detecting and
observing the associated errors that may affect the quality of
the product. The quality of the product is important to attract
the large base of consumers who avail their services and
organization achieves higher profit with those services.
Safety Enterprise
resource
planning
It is an effective mechanism that helps in managing and
coordinating the work among the members. The effective
planning is important for managing the resources and day to
day functioning of an organization. It is used by the business
to assess their risk management and supply chain operations
and other related activities. It's main purpose is to provide
safety to the business.
Delivery Supply chain
management
This approach is dealing with the supply chain that are
managed with the help of operational management. The
product is delivered through systematic channels that
transfer product and services from one sources to another for
the potential consumers.
Effectiveness of a continuous improvement plan using appropriate theories, concepts
and/or models:
An organization is using various appropriate theories and concepts to make necessary
improvement in their business. These plans are beneficial for the organization to ascertain the
future uncertainties and dynamic business culture that may affect their growing capacity. The
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appropriate theories includes total quality management, supply chain management, resource
planning and Kaizen. In relation to AstraZeneca company, they are using innovative plans to
bring reform in the pharmaceutical industry and providing the healthy services to the
consumers. It also provide all the protection to their employees and incentives schemes are
offered to them to retain at workplace (Raval, Kant and Shankar, 2019). It develops
competitive spirit in the employees so that they can contribute their efforts towards the
organizational goal. Such organization emphasis mainly on quality services that are provided
to consumers who are the actual king of the market.
Application of appropriate theories, concepts and models to justify strategies of a
continuous improvement plan for achieving improved efficiency.
The different kinds of theories and models are to enhance the efficiency of organization.
These models includes Taylor's mgt, Flexible specialization system, Kaizen, Six Sigma and
many more. All these theories have their own disadvantage and advantages that may affect
the operation of the organization. Therefore, it is important for AstraZeneca, to consider these
theories and approaches to manage the quality and production of the business.
7. Conclusion
From this above report, it has been concluded that operational management and project
management is one of the crucial factor of the business. It identifies the usefulness of the
resources and focuses on reducing its wastage to enhance the profit earning capacity of the
organisation. The cost of the production should be less than the revenue earned by the
organisation. The efficiency and productivity can be increased by implementing operational
theories and six sigma principles in the operational activities of the business. The high quality
services and supply chain management are significant for meeting the demand of the
consumers. The continuos improvement plan has been made by the company to anticipate the
market need and analyse them in the form of growth and expansion of business.
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References
Alexander, P., Antony, J. and Rodgers, B., 2019. Lean Six Sigma for small-and medium-
sized manufacturing enterprises: a systematic review. International Journal of Quality &
Reliability Management.
Chen, K.S. and Yang, C.M., 2018. Developing a performance index with a Poisson process
and an exponential distribution for operations management and continuous
improvement. Journal of Computational and Applied Mathematics, 343, pp.737-747.
Gaikwad, L. and Sunnapwar, V., 2020. An integrated Lean, Green and Six Sigma strategies:
A systematic literature review and directions for future research. The TQM Journal.
Grubb, T., 2018. How organisations can establish marketing analytics as the common
business language to drive continuous improvement. Applied Marketing Analytics, 4(1),
pp.46-52.
Henrique, D.B. and Godinho Filho, M., 2020. A systematic literature review of empirical
research in Lean and Six Sigma in healthcare. Total Quality Management & Business
Excellence, 31(3-4), pp.429-449.
Raval, S.J., Kant, R. and Shankar, R., 2019. Benchmarking the Lean Six Sigma performance
measures: a balanced score card approach. Benchmarking: An International Journal.
Remneland Wikhamn, B. and Styhre, A., 2019. Managerial challenges of outbound open
innovation: a study of a spinout initiative in AstraZeneca. R&D Management, 49(4), pp.652-
667.
Sreedharan V, R. and Sunder M, V., 2018. A novel approach to lean six sigma project
management: a conceptual framework and empirical application. Production Planning &
Control, 29(11), pp.895-907.
Steiber, A. and Alänge, S., 2020. Corporate-startup collaboration: effects on large firms'
business transformation. European Journal of Innovation Management, 24(2), pp.235-257.
Vance, J., Chung, H. and Hoeppner, E., 2021. Clean Energy and The Need for Effective
Transformation and Continuous Improvement. Climate and Energy, 37(12), pp.20-25.
Willigers, B., 2020. How advanced analytics create (Core) value: an example from a
pharmaceutical company, AstraZeneca. Journal of Business Analytics, 3(2), pp.122-137.
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Table of Content
Part 2: Project Portfolio
Project Title p
An overview of the case study you have been given p
An explanation of each stage of the PLC that applies to your selected
project, including supporting documentation for each stage (e.g., business
case, the project plan, cost-benefit analysis and work breakdown
structure):
 Project initiation p
 Project planning p
 Project execution p
 Project closure p
Analysis of the project methodologies and tools used p
Review and critically evaluate the effectiveness of the PLC in application to
your project using the appropriate theories models and concepts
p
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Project Title
In House Food
An overview of the case study you have been given
The large manufacturing organization in the Midlands consists of 1,250 employees who are
performing different roles and responsibilities in an organization. The emerging issue of the
company is dealing with the movement of employees during lunch time and another issue
associated with the development of healthy lifestyle. These issues can be overcome with the
help of project manager who is responsible to frame plans to deal with it. The objective of
the plan is to avoid movement of employees during lunch break as it is important for the
business. Another reason for making a plan is to helping the staff for the purpose of
promoting healthy lifestyle at workplace (Agarwal, 2020). The organization can prepare food
in the premises or allow them for some refreshment to prevent them from movement. It will
help them to reduce the absenteeism of employees in an organization.
An explanation of each stage of the PLC that applies to your
selected project, including supporting documentation for each
stage (e.g., business case, the project plan, cost-benefit analysis
and work breakdown structure):
 Project initiation
It is an initial stage of project management which demands employees engagement that has
positive impact on establishing goals and objectives of the business. It is one of the important
factor for the business which allows them to initiate the project. As the title of the project is
the In House food which focus on providing food and snacks to the employees keeping in
mind their health and taste simultaneously. The ultimate objective of this project is to give
importance to the health and the movement of the employees. It will take few month to
implement those business system within an organization as it allows the employees to take
benefit of the lunch time with the help of cookies and snacks. In this, manager is responsible
to increase awareness among the employees and promoting employees engagement at
workplace (Chandrasekara and Yapa, 2018).
 Project planning
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It is another step that deals with framing a business plan to implement those document in
most effective manner. The document considers the following planning including resource
planning, budget planning and structural planning and many more.
 Project execution
It deals with the execution of plan to meet the purpose and objective of the business. It bring
transformation in the business plan and follows the action that are required for the benefit of
the employees. It demands change and documentation to fulfil the purpose of the business. It
includes following changes that is essential for reducing employees movement during lunch
time.
 Project closure
It is the last stage of project that closes with its completion. The different members are
planned to end up the project life cycle. The project manager is responsible for completing
the project.
NAME OF THE project: In-House Food
VISION, OBJECTIVES: The organization 's main objective is to encourage the efforts of its
employees by engaging them into the corporate social responsibilities that promotes
sustainability and social interest of the society.
MISSION: The mission of the company is to enhance the product quality and services and
satisfying the employees at workplace (Garcia-Perez, Gheriss and Bedford, 2019).
Executive SUMMARY: This project is planned to prevent the employees form high
employment turnover and absenteeism in the organization. The employees movement is
controlled with the help of the project.
What is the new idea of innovation?
The innovative approach of this project is to develop the new concept which can reduce the
employees movement by providing them lunch break and cookies within the premises of an
organization. They are also allowed to order their food through mobile application and can
get their mean on time. This is basically done for promoting the healthy lifestyle of the
employees.
Why is it an opportunity
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It will help the organization to build trust and faith of the employees by giving paramount
importance to their health.
How does it improve on what we already have?
They can improve by reducing the movement of their employees and can be possible when
they will provide in house food facilities within an organization.
What are the risks and the potential benefits?
The potential risk associated with the taste of food of the employees. The biggest advantages
of the project is to reduce the employees absenteeism from workplace.
How will the cash flow work
It will not contribute on the success of the organization but also motivate the employees to
retain at workplace for a long time. It will save the cost and expenditure of the company.
Business Strategy for the project
Advantages of the above
It is advantageous for the internal management fo the company as it will enhance the
productivity and profit earning capacity of the employees (Lin and Huang, 2020). It will help
them to increase their focus on work performance.
Limitations/problems of the above
The major drawback of this project can be involvement of huge cost that are incurred for
focusing on the employees need instead of core business activities of the business.
Analysis of the project methodologies and tools used
Agile methodology is an effective tool that are used by the project management to make
necessary improvement in their project. This project is further categorised into different parts
including:
 Kanban, this approach is dealing with the goal of the project that allows the team to
oversee the progress and observing the new things they may affect the performance of
the organization.
 Scrum is another tool that are divided the main purpose of the project into different
sprints and manage the sprints at one time.
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Project management is the most useful tool for the managing the information in the most
efficient manner. It is the tool tat are used for effective operation of the management.
Project leadership is responsible for managing the team and encouraging the efforts of each
members . It is art as well as science that are responsible for completing the project in most
appropriate manner.
Review and critically evaluate the effectiveness of the PLC in
application to your project using the appropriate theories models
and concepts
Performance management is defined as the continuos process that facilitate effective
communication between the employees and supervisors. It is required at every stages of
business activities and directly linked to the goal of the organisation. With the help of the
project life cycle, the managers can complete the project to understand the behaviour of the
employees workplace. It consist of following advantages and disadvantage that are discussed
below:
The biggest advantage of using the project life cycle is improvement in the
communication between the team members which helps them to improve work performance
and satisfying the employees at workplace. It reduces the potential risk that may affect the
desired outcome of the organization.
The main disadvantage of using a project life cycle is presence of huge cost for arranging
the lunch and training the employees (Shamshurin and Saltz, 2019). It can affect the ultimate
goal of the organization that is profit maximization and can increase the expenditure of the
company.
There are range of performance management models has been used to set a benchmarks in
the business world. The project helps the business to review the process and other business
activities of the company. Monitoring is another tool that help the project manager to review
the business. It increases the efficiency and productivity of the members.
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References
Agarwal, A., 2020. Investigating design targets for effective performance management
system: an application of balance scorecard using QFD. Journal of Advances in Management
Research.
Chandrasekara, C. and Yapa, S., 2018. Roadmap/Project Plan and Resources. In Effective
Team Management with VSTS and TFS (pp. 117-142). Apress, Berkeley, CA.
Garcia-Perez, A., Gheriss, F. and Bedford, D., 2019. Developing a Knowledge Metrics
Strategy–A Project Plan. In Designing and Tracking Knowledge Management Metrics.
Emerald Publishing Limited.
Karaivanov, D., 2020. How a chemical company improved R&D project performance:
Software brings Kanban methods to project management. Plant Engineering, 74(8), pp.38-
42.
Lin, S. and Huang, D., 2020. Project Life Cycle Management. In Project Management Under
Internet Era (pp. 45-72). Springer, Singapore.
Shamshurin, I. and Saltz, J.S., 2019. A predictive model to identify Kanban teams at
risk. Model Assisted Statistics and Applications, 14(4), pp.321-335.
Shet, S.V., Patil, S.V. and Chandawarkar, M.R., 2019. Competency based superior
performance and organizational effectiveness. International Journal of Productivity and
Performance Management, 68(4), pp.753-773.
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