Operations and Project Management: Review and Critique of Operations Management Principles within Balfour Beatty

This report reviews and critiques the implementation of operations management principles within Balfour Beatty, a leading worldwide engineering, construction and services provider company. It explains the difference between operation and operations management, and analyzes the extent to which the operations management of the organization meets the requirements of the organization. It also discusses continuous improvement as a philosophy and the Lean principles, and provides a continuous improvement plan with 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
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1. An introduction to chosen organization
Operation management is that area of management which includes procedure to
compute the land area, check out the raw material and the process of converting that
raw material into finished goods. It is the basic requirement of every company and if
the company has better operations in the management it will enhance the
productivity and give more profit to the company. There is another term known as
project management which is require in a company to manage the skills and to
acquire knowledge about the equipment and the instruments to use them in their
effective manner. To understand better about the operation management the
organization is chosen name as Balfour Beatty. Its a public limited company of the
United Kingdom, it carries with three main business segments; building, engineering
and rail (Anastasiadou,and Taraza, 2019). In all these three segments of the
company the building segment have the highest percent of revenue I.e. 40% this
segment includes functioning like; design, construction equipping, maintenance and
management of buildings. The segments of engineering provides 39% revenue to
the company by performing the function like; design and management of
hydroelectric dams, tunnels, roads & bridges. The last segment of Balfour Beatty is
the rail segment which generate 15% of revenue by designing, maintenance and
construction of rail systems. It is the leading worldwide engineering, construction and
services provider company formed in year of 1909. its is the company which got the
highest rank in the United Kingdom for the construction contractor. They also expand
their work in Ireland, United States, Canada, and South East Asia. Along with
acquiring the rank it is the company which provides the best construction services
and there are world class. In this report, the operation management will be discuss
and its principles which helps the company to make improve their plan. This report
also includes PLC and its functioning.
2. An explanation of operation vs operations management
An operation in the company generally means the way to perform the function of the
company. It covers all the activities and actions or decisions taken by the company
to regulate their business.
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On the other hand Operation management is the different area which deals
with the different functioning of the company such as; designing, regulate the
process of production and take care the operation of the company including the
manufacturing of goods and services (Hakimi, Zahraee, and Rohani, 2018). In this
operation management the raw materials will get converted into finished goods, it will
enhance the company profitability and in relation to the Balfour Beatty they supply
their equipment's fro construction purpose to the private and also to public
organizations.
3. A review and critique of the implementation of
operations management principles within the chosen
organization
There are various principles of the operation management that are followed by the
Balfour Beatty to run their business activities smoothly or to avoid the chaos and
disturbance from outside the company. The better operation management followed
by the company provides the better environment and better result in the end.
Principle of experience- This principle is follows by the organization to
identify the problems in the management and in the functioning of the machine &
tools. It is very necessary to overlook these operations, it will give the courage to the
Balfour Beatty to overcome with all the problem and make their machinery tools
available in a proper working condition (Jones, 2022). In Balfour Beatty, the
managers themselves check the functioning of the employee's and take feedback
from them, and if any problem was found then it will be remove first.
Principle of Company- All the companies have their own principles and plan
which they execute according to the situation to meet with their desire goals and to
fulfill their objectives. In the Balfour Beatty, there are so many different departments
for different functions. All the departments there have a good relation among the
employee's.
Modification- To run the business effectively it is the necessary step which
have to be taken i.e. to bring changes or to modify the functioning of the company.
Balfour Beatty adopts all the changes according to the demands of the market or the
consumers. They bring advance technology and equipment's which makes their work
easier and fast.
Responsibility- It is the most important function in each and every company.
The managers of the company, employers and the employee's all have some
responsibility on their shoulders towards the organization. The main burden of
responsibilities is on the manger of the company who has take care all the
functioning and performance of all the team and departments. In Balfour Beatty
managers understood this responsibility and take it serious, as a result of this the
company is always able to achieve the set objectives and goals (Luiz, Ganson, and
Wennmann, 2019).
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The companies have the large option in the approaches of operation management
and there are some which are actually become the popular in the organization's.
Some are; Lean Production, Mass customization and agile manufacturing and the
flexible specialization. These approaches of the operation management provides
better result and also helps in improving their profitability.
Lean production and and manufacturing
It is the level of manufacturing which requires less time and resources which
helps the company in utilizing their resources properly. This process of lean
manufacturing got also use in the Balfour Beatty to save their time, energy and
resources which are very essentials elements of the company (Matousek, and Xiang,
2021). The whole company's profitability and success will depend on the usage of
resources, to kept this thing in the operation management Balfour Beatty uses the
already usage resources which helps the company to reduce the cost of production.
The decision of choosing the Lean manufacturing process in the operation
management of Balfour Beatty was beneficial and it will provide success and also
give more profits with less wastage.
4. An analysis of the extent to which the operations
management of the organization in the case study meets
the requirements of the organization
The operation management plays the crucial role in the controlling the business
activities in the organization. There are lot of operations in the business organization
as the company contains many departments and each one has different functions to
perform. The main focus giving by the mangers in the organization is to design the
plan, controlling the business activities and improve the strategies regularly. It would
be done by the mangers to fulfill some objectives such as;
 Reduction in Cost of Production- it is the most important factor of the
business organization is to manufacture the goods or convert the raw
materials into finished goods. Its a task for the company to use the resources
wisely by avoiding the wastage. Managers of Balfour Beatty gives more
importance to their resources as they got aware about the importance of using
the resources. If the cost of production get high it will eventually makes the
price of the product higher, and there will be no such big margin to earn the
profit (Noori, and Latifi, 2018).
 Quality- All the customers have the priority to have the best quality product in
use. They are ready to pay the high price of the product and getting the high
price services from the company only just to get the best quality goods and
services. The Balfour Beatty makes sure this attitude of the customers in a
market, they provide supreme quality product and services in the market
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which, helps the company to achieve the attention of the market and it
develops the reputation of a company in a market.
 Productiveness- if the employee's or the workers in the company are
productive then, it will give the success to the company. The performance of a
company depends up on the performance of the employee's. In Balfour Beatty
managers always motivate their workers which enhance their capability to
perform the task effectively.
5. Discussion of continuous improvement as a philosophy
and describe the Lean principles
It is very essential in the business organization to analyze the improvement. In the
year of 1980, Bill Smith introduce the concept of Six Sigma to process the
improvement of the organization. In Six Sigma there are two approaches which can
be followed i.e. DMAIC & DMADV.
DMIAC is the approach which would be used to determine the customer
utility. It is used in making the product and at the time of providing the services. This
approach helps the managers to analyze the modifying, examine and controlling.
DMADV is the second approach which analyze the innovation in a company.
The company require to use new and unique ideas in their products, its a big
responsibility to study the new innovations and bring it in the company operations. In
Balfour Beatty various types of constructions took place and lot of equipment and
machinery required in the production. This is the best approach of Six Sigma for the
company to build up their products to bring some new ideas in providing the services
(Patel, and Desai, 2018).
 Define- This is the process in which the customers need and wants are
examine. Balfour Beatty managers studies the customer behavior and
according to that bring changes in their equipment and machinery. It require
the research on customer preferences.
 Measure- After defining the customer preference, mangers gives the
importance to identify the number of customers on each product and
according to that, they showed their importance to that product.
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 Analyze- Once the measurement would one its turn to analyze the changes,
issues and challenges that could be seen at the time of promoting the goods
and services.
 Design- Balfour Beatty works more in design the product as they believe that,
the customers preference will change randomly and according to their desire
they produce their product (Robertson, Jones, and Rasha, 2021).
 Verify- After giving importance to customer preferences, its a time to verify
the changes brought by the company. It will be check that, whether customers
are in favor or teary like the new design in the product or not.
6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review
and critique of operations management principles within
your organization
Continuous improvement plan
To get the success in any sector especially in the business sector it is
essential to bring changes in the operations of the company. Changes force the
company mangers to do something different and attractive which would be like by
the customers. It is also essential to bring changes not only in technologies but also
in the management process. In the purview of Balfour Beatty, managers prepare the
plan to meet with the set goals of the company.
Sources Principles Outcomes
Cost Six sigma The managers of the
Balfour Beatty uses the six
sigma principles for smooth
functioning of the business
operations. It helps the
company to get good result
and also save the fund of
the company.
Quality Lean manufacturing The reason behind the
success of the Balfour
Beatty is to adapt changes
according to the demands
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and requirements of the
customer. Changes are
necessary to bring the
business operations, it will
give a fresh start and
motivate the employee's to
achieve the set targets. The
company with the help of
lean manufacturing process
gives more importance to
the quality and also
encourage the workers to
save the resources and do
less waste.
Safety Fundamental In Balfour Beatty which also
won the prize in 2018 in
doing business. Their
managers are very smart
they never showed their
capacity and didn't showed
their procedure to anyone.
Delivery Organisation Company have to use the
better process in the
delivery system. Balfour
Beatty doing the delivery
with extra care and
precautions. It will reduce
the chances of wastage and
also create better image of
the company.
Advantages of six sigma
 The approaches of six sigma gives satisfaction to customers and helps the
company to maintain their stock.
 It improves the outcome of the company, without wasting the material a better
product would be made.
 The procedure and changes brought by the companies through the approach
will make the customer satisfied (Thu, 2018).
Disadvantages of six sigma
 Its a long procedure, it require time to analyze the environment and demands.
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 These approaches consider expensive as compare to other approaches and
also takes a deep study which take the lot of time.
After considering all the facts of the continuous improvement plan, it is clear that the
company have to prepare some active plans which helps the company to identify the
problems. The company have to use this plan regularly as it assure the company
about the changes and according to that company will be able to bring modification
their products. The continuous improvement plan helps the company in reducing the
cost of production and avoid the wastage from the resources.
7. Conclusion
From the above report it is quietly cleared that operation management is the
functioning of the company. As there are many functions hold by the company , all
these function are the business operation and to convert the raw material into
finished goods would be considered as operation management. The different
approaches were used by the different companies which is suitable for them, in the
given report the six sigma approach got discussed in the selected organization to
improve the company performance ans also to reduce the cost production and bring
changes according to customer need and requirements.
References
Anastasiadou, S. and Taraza, E., 2019. Total quality management: implementation
of the six sigma methodology for improving quality in higher education.
In ICERI2019 Proceedings (pp. 9533-9537). IATED.
Hakimi, S., Zahraee, S.M. and Rohani, J.M., 2018. Application of Six Sigma DMAIC
methodology in plain yogurt production process. International Journal of
Lean Six Sigma.
Jones, P., 2022. Warehouse development and town planning policies in the
UK. Property Management.
Luiz, J.M., Ganson, B. and Wennmann, A., 2019. Business environment reforms in
fragile and conflict-affected states: From a transactions towards a systems
approach. Journal of International Business Policy, 2(3), pp.217-236.
Matousek, R. and Xiang, D., 2021. The Challenges and Competitiveness of Fintech
Companies in Europe, UK and USA: An Overview. The Palgrave Handbook
of FinTech and Blockchain, pp.87-107.
Noori, B. and Latifi, M., 2018. Development of Six Sigma methodology to improve
grinding processes: a change management approach. International journal
of lean six sigma.
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Patel, M. and Desai, D.A., 2018. Critical review and analysis of measuring the
success of Six Sigma implementation in manufacturing sector. International
Journal of Quality & Reliability Management.
Robertson, F., Jones, B. and Rasha, A., 2021. SMEs and IR: Evidence from UK.
In Development of Integrated Reporting in the SME Sector (pp. 159-176).
Springer, Cham.
Thu, N.T.A., 2018. The ineffective operating procedure at MORE UK in Ho Chi Minh
City.
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
Project Title
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The objectives of this project is to make avail the healthy and hygienic food to
the members of the staff in a business environment. The title of this project in this
Either cooking in house.
An overview of the case study you have been given
To support this report a case study is taken to demonstrate the application of
various factors in a construction company. The company taken for this report is the
Balfour Beatty construction company who is responsible for providing construction
related equipment to various industries who engaged in construction and agriculture
related activities. The aim of an organization is ensure that the movement of their
staff member during lunch break should be reduced. The other objective of the
company is to assist its staff members to embrace the healthy lifestyle by
considering that CSR is being followed by the company in order to reduce the
absence of the employees. The notion behind this project is to provide healthy food
to its staff members. In order to provide healthy food to staff members company
needs to adopt certain measures to met its objectives. As there are various options
available for initiating the process of providing good food, there is one option by
which company can offer good food to its employees. Cooking food in house is the
option which suits the requirement of the company. Balfour Beatty, using the method
to provide food to their employees by cooking food in their house at work place.
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 a stage of project inception of PLC wherein, managers makes an
estimation for orientation of customers. They initiate the process of designing
products as per the needs of their respective customers. In reference to the Balfour
Beatty construction company, they are primarily focused on availing essential heavy
equipment and machinery to their clients. The other part is, they are focusing on
providing food services to their employees (Kumaresan and Liberona2018). For
debuting the planning, they are analyzing the market structure and related demands
of the business, this process will help in drawing the inference initiating the process
in order to implement the targeted strategies. furthermore, the managers of an
organization are embracing various steps for the organizational growth and
development (Larrucea and et.al2018).
 Project planning
In this stage , the managers are directed prepare a plan or policies for future
growth of an organization. In this stage , especially the Balfour Beatty company can
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make relevant legal procedures and representing the statement reference. The
managers in this stage ensures the distribution of their goals or target into different
small parts and these parts further distributed to each employee considering their
ability. The managers of the Balfour Beatty construction company are following
leading model styles for enhancing the performance of the company (Agca and
Cotone2018). The first step they planning about what amount of ration is needed to
for preparing food for the employees and in what time the food will be prepared. For
complete the planning 3 months are estimated.
 Project execution
In this stage the managers of an organization is analyzing various strategies
they have planned to check whether they have achieved the desired objects or not.
Project execution requires creative ideas and innovation which is planned by
managers for its effective execution in the process. This stage includes, the
performance of project and its deliverable. For Balfour Beatty construction company,
it is essential to test their food product and its quality which they gonna offer to their
employees. If the quality of food is not good then, changes are needed to make it
improve (Alexander Ackermann and Love2019). The company is trying to
reduce the time and cost by adopting lean production method.
 Project closure
At this stage, the project is concluded, which means the growth of an organization is
determined at this stage. The company by providing healthy and hygienic food to its
employees bring satisfaction to its employees. The Balfour Beatty construction company
also at this stage satisfy their workers accordingly. This food is prepared in houses at
working place.
Gantt Chart
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Business case
vision and objectives: The vision and objective of Balfour Beatty company is to
make availability of healthy and hygienic meal to its employees at working site to
reduce the absence of their workers from work site.
Executive Summary: The process of making food is being conducted in house at
working environment. The employees gets the convenience to have the food at the
working premises without wasting any time. The quality of food also satisfy the
needs of the employees which makes them happy and more effective in their work
during the course of their working hours.
Resource: The resources are basic, what needed is the man power, equipment and
time.
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Cost: The cost incurred in this process was estimated by the company was 10,000
pounds.
Advantages: The main advantage by this initiative is that the workers are more
satisfied and relaxed because they easily getting quality food without being worried.
This initiative will reduce the wasting of time and enhance the productivity of the
company.
Work break down structure: it is a process of bifurcating work into different stages
with the view to attain the objectives of the company in given time. In case of Balfour
Beatty, the use of WBS with the view to complete their objectives in a fix time period.
Analysis of the project methodologies and tools used
Agile Methodologies: It is an arrangement which is embracing in respect with the
planning and managing of the business. It aims to provide benefits which helps in
immediate identifying and fixing unexpected issues and challenges and it helps in
introducing many of its change (Murray and Kulakov 2019).
Rational unified process: As per this process, it comprised of several stages which
begins from its inception to its final determination.
Project leadership: In proper leadership an organization is maintained for
enhancing the productivity of the employees and their efficiency. The leaders are
there to assist proper guidance to its team members so that they can work efficiently.
Review and critically evaluate the effectiveness of the PLC
in application to your project using the appropriate
theories models and concepts
Performance management
It is the an arrangement which is used for rewarding an employees as well as
managers for enhancing their performance in their tasks. There are various merits
and demerits in performance management which are explained below:
 Advantages: It is considered as performance based conversation. The
managers try to articulate the performance of their employees whether they
are working efficiently or not. This arrangement aims to provide reward and
recognition to those employees who are working hard at work premises. By
way of this other staff members also encouraged and work hard.
 Disadvantages: there are various disadvantages of performance
management because it consumes a lot of time in evaluating the performance
management (Ying Tookey and Seadon2018).
Key performance indicators: It is a tool which helps in measuring the performance
tasked for particular objectives. There may be several key performance indicators of
task. These measures the revenue growth of an organization and its profitability and
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by articulating the quantifiable measures the conclusion is drawn that the company is
at growth and executing projects successfully. In context to Balfour Beatty
construction company, they evaluate the performance through this method
(Fedorova and et.al2020). If the organization is doing well and earning profits,
then the projects are successful. The next indicator is customer and employees
satisfaction. According to this, the employees satisfaction is evaluate, which resulted
into enhancing the performance of an organization. Reduction in employee turnover-
it is a main performance indicator. It checks on the workers presence and ensures
that no worker leave the organization, if this order is going smooth, then is can be
assured successful completion of projects at work place.
Project monitoring and evaluation: This process begins right after the execution
plan. As the plan of the current project of the company is to provide good meal to the
staff members. The managers of the company are required to monitor the process
and overall performance and to supervise operations in order to check the quality of
of products to attain the targets of the company (Ling and et.al 2021). Further, the
managers are required to focus on any issues or challenges which might face at the
time of implementing strategies in the business premises. Managers in this process
assign leaders to supervise and resolve such standing issues to prevent any
conflicts. The project of providing food can be attained by installing setup in at work
premise. This process directly benefits to both the employees as well as the
organization.
Importance of reliability and validity: Reliability pertains to consistency in the
project outcome. Whereas, validity is to evaluate the the degree which gives
meaningful inference about the test taker. These both factors are important for
evaluating the status of project (Balaji and et.al.,2021). The factors helps in
enhancing the operation of the project and to make it successful by achieving the
organizational goals.
There are four stages of PLC, which begins from the initiation stage, in
respect of an organization, leadership style is embraced with the view to provide
healthy and hygienic food to its employees. The second stage is the planning stage,
wherein leaders participate to create something new and productive for their
operations which is performed in business premises (Tipu and Fantazy2018). The
next stage is the execution stage, in which sufficient funding is needed for
implementing strategies for taking the plan to next stage. The last stage is the
closure stage, wherein the organization comes to a conclusion based on the overall
performance of an organization.
References
Agca, H.S. and Cotone, G., 2018. Introduction to Process Plant Projects.
CRC Press.
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Alexander, J., Ackermann, F. and Love, P.E., 2019. Taking a holistic
exploration of the project life cycle in public–private
partnerships. Project management journal, 50(6), pp.673-685.
Balaji, M.,and et.al., 2021. Balanced Scorecard approach in deducing
supply chain performance. Materials Today: Proceedings, 47,
pp.5217-5222.
Fedorova, I.,and et.al., 2020. Financing and quality of housing
construction: introduction of information systems as a regulatory
tool. Revista Inclusiones, pp.328-339.
Kumaresan, A. and Liberona, D., 2018, August. A Case Study on
Challenges and Obstacles in Transforming to a Data-Driven
Business Model in a Financial Organisation. In International
Conference on Knowledge Management in Organizations (pp. 263-
276). Springer, Cham.
Larrucea, X.,and et.al., 2018, September. Approach for enabling security
across PLC phases: an industrial use case. In European Conference
on Software Process Improvement (pp. 354-367). Springer, Cham.
Ling, F.Y.Y.,and et.al., 2018. Human resource management practices to
improve project managers’ job satisfaction. Engineering,
Construction and Architectural Management.
Murray, A. and Kulakov, A., 2019. Make/buy decisions in international
construction industry firms. In Global Construction Data (pp. 149-
166). Routledge.
Tipu, S.A.A. and Fantazy, K., 2018. Exploring the relationships of strategic
entrepreneurship and social capital to sustainable supply chain
management and organizational performance. International Journal
of Productivity and Performance Management.
Ying, F., Tookey, J. and Seadon, J., 2018. Measuring the invisible: A key
performance indicator for managing construction logistics
performance. Benchmarking: an international journal.
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