Operations and Project Management: Review and Critique of Operations Management Principles in HSBC

This report reviews and critiques the implementation of operations management principles in HSBC, a multinational universal bank and financial services holding company. It includes an analysis of the extent to which the operations management of the organization meets the requirements of the organization, and a discussion of continuous improvement as a philosophy and Lean principles. The report also explains the difference between operation and operations management, and discusses the principles of operations management such as reality, organization, humility, success, accountability, causality, fundamentals, variance, and managed passion.

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 3
2. An explanation of operation vs operations management 3
3. A review and critique of the implementation of operations
management principles within the chosen organization 5
4. An analysis of the extent to which the operations management of
the organisation in the case study meets the requirements of the
organization 7
5. Discussion of continuous improvement as a philosophy and
describe the Lean principles 8
6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review and
critique of operations management principles within your
organization 9
7. Conclusion 10
References 11
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1. An introduction to chosen organization
Operations management develops the highest volume of effectiveness within
an enterprises. It is used goods and services to earn the highest profit of the
company. It balances with the cost and revenue. It includes utilization of resources,
materials, equipment and technology. It develops the goods on the basis of client
needs. It manages different strategies issues such as deciding the size of
manufacturing units, project management techniques and developing the structure of
information system. It also handles other operational issues like as stock levels, work
in progress, raw material acquire, quality control of the product and maintenance the
policies and procedures. It reduces the unnecessary costs that are incurred in
production cost. It used different formula such as economic order quantity and
determine the how much stock is retain in the business so that enterprise can carry
its business activities. The main function of the operations management is related to
management of stock with the supply chain. It evaluates the local demand as well as
global demand of customers and resources for production (Ahuja and et.al, 2018). In
this report discuss about the HSBC company which is situated in UK. It is a
multinational universal bank and financial services holding company. It is the biggest
bank in UK, the total assets consist of US$2.953 trillion as of December 2021. It
conducts three business groups of banking such as commercial, global and wealth
and personal. About 40 million consumers through global business. It provides many
services like as loans, deposit, mortgage, loan and credit card facilitates. It provides
services in Europe, Asia, North Africa and Latin America. The head office of UK in
the London, UK. It brings ideas and capital to the growth of the company. It provides
benefits of their employees like as casual leave, life insurance policy and medical
facilities. It was the profitable bank in the world. It became the world famous banking
brand. The audit has been conduct by PWC. It makes plan to open the office in Paris
so that it maintain the business in the whole world. It mainly provides financial
services to the small and medium sized enterprises.
2. An explanation of operation vs operations management
Operations: It manages the internal work of the organization. If the company
makes product, sell and provides services it is necessary to design the product.
Every organization has different definition of operations because it depends on the
size and work. The operations of HSBC such as financing, deposits and credit card
facility (Bottani and et.al, 2019).
Operational management- It can be view as short term management. It
conduct day to day activities within the enterprises. It is also known as middle
management. There are many form of management such as strategic management,
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middle level and low level management. All the managements are based on the long
term. It defines the plans and objectives of the enterprises (Coban, 2022).
Basis Operation Operations
management
Meaning It creates balance
between output and
input. It can view as
single area because in
organisation has
limited resources for
input.
It is a multidisciplinary
area because it
manages different
areas such as raw
materials, production
system, quality control
and marketing.
Activity It converts the raw
material into the finish
goods and sell the
goods of consumers
and earn the profit of
the enterprises.
It focuses the planning,
organizing, staffing and
controlling activities. It
manages the business
activities and reduces
the cost which is
increased the
production cost.
Profit HSBC gives the various
services such as loan,
investing and any other
financial services and
increases the client in
the whole world. The
HSBC became the
world famous bank and
generate higher
revenue of their
investors.
It expends the bank in
world wide and
increases the existing
consumers as well as
global clients. The
company earns highest
profit through expands
its consumers.
Control It control the financing
activities such as credit
card and loan.
It control the financing
activities as well as non
financing activities of
HSBC
Main area It focuses on the
business activities
(Hazen and et.al, 2018).
It applies the entire
company.
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3. A review and critique of the implementation of
operations management principles within the chosen
organization
Operations management can view as a management function. The main
objectives are profitability and total quality. With the help of operational management
the HSBC bank gives various services to their customers. It is the managing of the
business that develop the goods and services. It helps manufacturing sector as well
as banking sector. All the ones operation components must be controlled nicely,
from the strategic planning stage, the implementation stage, production supervision,
and the very last evaluation of consequences for future improvements, in order that
the employer remains worthwhile and competitive in its enterprise. With the assist of
full-featured ERP software program, components may be managed nicely.
Operational managers have a first rate duty in coping with techniques, projections,
and overseeing day-to-day strategies. For this reason, an automated ERP structures
can without a doubt assist in facilitating the method of operational managers The
bank focuses on frequent holistic process improvement activities to get better results
such as increasing number of customer, loan files increasing and better credit
facilities (Hedaoo and et.al, 2019). There are many principles that relates to
operations management they are as follow:
1. Reality- It should focuses end to end outlook of the enterprises. It should not
concentrate only one technique, one project and one solution. The problem
solving techniques should always based on the company scale. There are
some areas where company must need to pay attention such as training,
designing and servicing. If the HSBC want to become world famous brand
then it should follow the principle of reality. The investors can invest in HSBC
after evaluate the financial position of HSBC.
2. Organization- All the financial activities should not be interrelated with each
other. The financing sector shares similar information like as interconnection
of all departments. The financial manager provides the information related to
services (Kabyl and et.al, 2020). It must improving the services as deposit,
withdrawal and interest. It should provide better services to their local as well
as international customer.
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3. Humility- It plays an vital role in banking company. The manager analyses
the client needs and provide better services to the customer. This strategy
saves time and money of the clients. HSBC should provide all the services
online such as deposit, withdrawal, transfer money one account from another
account and E-commerce services. The banking sector should treat the
customers with humility (Li and Chen 2019).
4. Success- If the enterprise wants to remain in long term then changing the
services according to dynamic environment. The evaluation covers detailed
assessments on the bank's distribution network which includes branches,
ATM. IT skills to help its each day banking operation so that company can
provide higher and included product and give higher services to its
consumers. The financial institution's excellent of carrier is also diligently
assessed. Considered as an crucial thing for a retail bank to draw clients and
assist the financial institution's sustainable. Growth, specially in the intense
commercial enterprise competition. Others, employees' capabilities in
providing banking services and handling court cases from clients, Pace of
services, accessibility, timeliness, and and so forth.
5. Accountability- Before giving the loan the bank sector should check their
customer that is borrower has sufficient fund to pay the loan. The company
should also check the monetary cost is equal to social cost. The bank always
follow the principle of accountability. It should tell their clients where are the
money investing. It is very important because bank invests the money of the
people, it does not money of bank itself. The another meaning of
accountability that it should be decided who are responsible within the bank
for the incorrect decision. The people only know about the loans when the
customer shows the financial position of the bank.
6. Causality- To improve the customer services they adopt various techniques
and tools. The policy of bank is not issue of the workers of bank but it is also
part of every people who is focused on the economy of the country. To
improve the bank performance all the people should reduce the unethical
issues (Müller and et.al, 2020).
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7. Fundamentals- The meaning of fundamentals in reference of bank means all
the principles and standards which should be followed by bank. HSBC is a
financing industry that deals with credit facilities, storage of cash and
investments. Bank charges the interest rate on loan, they charge higher
interest on loan but they pay at lower rate of interest of the customers on
deposits. Bank also performs the myriad functions such as exchange of
foreign currency, forex trading and wealth management services.
8. Variance- Consumers consider variance software maximization trouble for
banks. Mainly, they forget the software maximization issues of the portfolio
return and accounting earnings. Furthermore, they consider financial
statement models for each situations regardless of whether or not the gadgets
on the liability side are internalized in phrases of property. The calibration end
result indicates that there is no considerable difference in the accuracies of
the healthy of the software maximization models for the portfolio go back and
accounting income so long as the balance sheet is internalized.
Consequently, internalization of the balance sheet version is crucial to explain
the financial institution’s conduct (Savignac and et.al, 2020).
9. Managed passion- The passion considers many forms such as zeal,
excitement, enthusiasm and fervor. The banking company faces many
problem everyday. Most of the times they lost in that shuffle is a crucial one.
The banking company is launching new deadline of wholesale. In dynamic
environment the company must need to change the situations according to
customers requirement.
4. An analysis of the extent to which the operations
management of the organization in the case study meets
the requirements of the organization
To manage the situation of the company it is very necessary to follow the
principles of operations management. It manages the limited resources among the
clients and fulfill the needs of consumers. The organization must need to make
proper planning and controlling within the enterprise. The following factors such as
capacity, demand, supply and forecasting should be considered when makes proper
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planning of resources. After implementation of operations management HSBC
considered the following changes:
 After introduce the new operating model there is no need to carry the cash in
hand, the customers can make digital payment through E- wallet. The another
option is also available like as net banking. Through the net banking
customers can apply for cheque books, balance inquiry, make payments,
fixed deposits and submit application of IPO (Ta and et.al, 2021).
 Before some times the banking sector was dependent on the human so that
mistake and error were more apparent. The human were skip to some
calculation like as wrong interest calculated and loan processing fees. With
the introduction of new technology of company the mistake has decreased in
compare to human error. It protects the data with efficiently and effectively
manner.
 The traditional system of banking was very lengthy and tiring so the
experiences of the clients were very bad. It was because the people had to
stand in long queues, and the customers were presented a lot of papers and
must presented physically in bank. Due to net banking has decreased the
time to spend for banking related task. It also provides the hassle free
services to their clients.
 The banking industry should adopt the business intelligence to maximization
the profit of the company. It provides the past, present and future data. This
data provides the accurate decision of the customers. It increases the overall
efficiency and services of the banking industry.
5. Discussion of continuous improvement as a philosophy
and describe the Lean principles
Learn principles using continuous improvement and develop the better
experience to customers. It engages the customers who are doing the work for
increasing the profit of the company and improving the performance of the
organization. It also create the structure and opportunities to the workers so that
employees can retain in the company (Yao and et.al, 2020). It creates the following
advantages to the customers such as paper free document, online deposit and
withdrawal services, decrease the mistake in work processes, increase the interest
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rate of saving bank account and reduce the interest rate of home loan and personal
loan. The basic principles of lean are as follow:
 Define value- The better understanding of first principle first of all to
understand the customer value. Value means what amount is pay by the
customer in return of service. It determines the actual need of the customer.
 Map the value stream- In that principle identifying the mapping value of
consumer. The banking industry identified all the needs of the customer. The
services can be classified into categories such as financial services and non
financial services.
 Create flow- The banking company conducts all the activities online, it
conducts those activities within the bank that is not possible through online.
Some activities are introduced by the bank to the benefits of the customers
such as breaking down steps, reconfiguring the online banking steps and
creating cross- functional departments.
 Establish pull- To opening the customer accounting and e- commerce
services is one of the biggest challenges for the banking industry. It is the
payment system that gives permission to payees to pull the cash out of
provider account into the receiver account. In this system the lender is the
originator of the transaction. The lender gives various information to the
receiver such as routing and account number, if the payment through ACH the
lenders also provides the PIN number.
 Pursue perfection- There are many advantages to pursuing a career in
banking industry such as competitive wages, some job benefits such as
medical insurance, sick leave and paid time off, job security, better working
condition and career development opportunities.
6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review
and critique of operations management principles within
your organization
The non-stop improvement plan contains various techniques which are
applied in banking industry to the improvement. It creates various services to the
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customers such as loan services, credit card and other financial services (Zhang and
et.al, 2021). The continuous improvement plans are applied on HSBC Group they
are as follow:
Plan- It creates various services for the clients. The HSBC is developing the
activities to the future services so that it will become the world largest bank. It is also
create the new opportunities to the customers for the future.
DO- The banking industry must to do practices to come changes into technology.
The innovation should be based on the short term period. The company adopts
techniques for the improvement of customer services.
Check- Every changes should be monitor and control regularly so that changes can
apply within the industry frequently. The HSBC company monitors all the activities
that reduction unnecessary activities.
Act- The HSBC checks that all the activities are applied within the organisation.
7.Conclusion
The above report concluded that the two basic concepts of management defines the
value of the customers and increase the benefits to the company. The principles
introduced the new techniques to the online services so that reduce the paper work
transaction. The lean principles provides many benefits to the employees that
increase the value of the company.
References
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Ahuja and et.al, 2018. Continuity in gatekeepers: Quantifying the impact of care
fragmentation. SMU Cox: IT & Operations Management (Topic).
Bottani and et.al, 2019. Modelling wholesale distribution operations: an artificial
intelligence framework. Industrial Management & Data Systems, 119(4).
pp.698-718.
Coban, B., 2022. Optimizing Pre-Earthquake Mitigation Measures to Improve the
Efficiency of Evacuation Operations (Doctoral dissertation, University of Kent,).
Hazen and et.al, 2018. Back in business: Operations research in support of big data
analytics for operations and supply chain management. Annals of Operations
Research, 270(1). pp.201-211.
Hedaoo and et.al, 2019. Implementation of Total Quality Management in
Manufacturing Firms: An Empirical Study. IUP Journal of Operations
Management, 18(1).
Kabyl and et.al, 2020. A risk-based approach to produced water management in
offshore oil and gas operations. Process safety and Environmental
protection, 139. pp.341-361.
Li, S. and Chen, X., 2019. The role of supplier collaboration and risk management
capabilities in managing product complexity. Operations Management
Research, 12(3). pp.146-158.
Müller and et.al, 2020. Contributions of Industry 4.0 to lean management within the
supply chain operations reference model. International Journal of Integrated
Supply Management, 13(1). pp.74-89.
Savignac and et.al,2020, June. Toward an Educational Supply Chain Operations
Reference Model. In 2022 IEEE 6th International Conference on Logistics
Operations Management (GOL) (pp. 1-10). IEEE.
Ta and et.al, 2021. Appealing to the crowd: Motivation message framing and
crowdsourcing performance in retail operations. Production and Operations
Management, 30(9). pp.3192-3212.
Yao and et.al, 2020. Hybrid operations of human driving vehicles and automated
vehicles with data-driven agent-based simulation. Transportation Research
Part D: Transport and Environment, 86. p.102469.
Zhang and et.al, 2021. An optimal task management and control scheme for military
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Table of Content
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Part 2: Project Portfolio
Project Title 13
An overview of the case study you have been given 13
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 13
 Project planning 13
 Project execution 14
 Project closure 14
Analysis of the project methodologies and tools used 14
Review and critically evaluate the effectiveness of the PLC in
application to your project using the appropriate theories models
and concepts 15
References 16
Project Title
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The purpose of the project is to reduce the motion of workers from the
buildings in the lunch time and giving the benefits of workers to prevention the
healthy life. The organization workers play different roles, including office workers
and factory workers (Fritter and et.al, 2020).
An overview of the case study you have been given
This case presents the 1250 workers work in the medium sized organization.
The objective of the enterprises is to fall down the congestion that take place due to
regular motion of the company group of employees during the lunch time within the
site. It effects the enterprises photo because regular disturbances and congestion's
and affect the running business activities and the dynamic environment of the
organization. The company makes strategies to the improvement the performance of
the employees. They give some benefits to the employees such as medical
insurance and bonus. The company addresses all the problem that come during the
work and improves the activities (Jharko, 2021). It plans some strategies and
techniques which are improve the life style of workers and rise the operating
performance of the company.
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 the first step to start a new project. In this step the project manager analysis the
importance of project. This phase comes through five phase model. The manager
increases the value of the project and business. If the stakeholder satisfy of their
own returns then manager moves to another step. In the given case study the
company identifies the problems that are faced by workers in this stage. It creates
the sustainability for the workers.
 Project planning
It tells about how much time taken to complete the project with available resources.
The planning is to divided into the four tasks such as setting objectives, identifying
deliverables, scheduling and planning the objectives. Organization provides the new
technology and techniques to the project planning. The techniques include Gantt
charts and Pert charts. It is necessary object to all the enterprises. There are five
components that is necessary to complete the project they are as follow:
Scope- It defines the shareholder and the customer requirement. To defining the
scope the project team must set the goals of company.
Budget- The project team determines what material will be needed to complete the
project. The enterprise is spending the money to launch a new technology that
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provides the information to the workers such as bonus performance and defines the
principles to achieve the objects.
Timeline- It defines how much time to taken to complete the project. All the
enterprises are creating all the activities in online mode (Maienza and et.al, 2020).
 Project execution
It is very critical step of project life cycle. In this step the project divides into the small
parts and every single object is to assigned of individual person. The banking
industry divides its works into the different parts such as back office and front office
work. The project manager should established the timeliness to every task. Project
planning and initiation process are simply the beginning but most of the time taken in
this step. Therefore, it can be said it is very critical approach. In this step there are
many general activities to be included to complete the execution process such as
start the work, manage the flow for all activities, change order managed and report
on project status to the shareholders.
 Project closure
It is the last step of the project life cycle. This step defines the success of the project.
In this step the manager reviews the deliverables and compare the report of different
task. The manager will close the task for many causes such as the complete of the
project timely and complete it early. It defines the culture of an enterprises. Under
this step the activities are to included technical, learning and people (Matuštík and
et.al, 2020).
Analysis of the project methodologies and tools used
Project methodologies are the principles and techniques that are necessary to
complete the project. These methodologies are help to the manager to collaborating
the team members. There are many methodologies that defines the goals of the
project. The banking company should follow the methodologies they are as follow:
Scrum methodologies- It is the short sprint techniques to managing the tasks. In
this methodologies there is need to more than 10 people and needs to two weeks
with short daily meetings. The people which is led to this methodology is known as
scrum master. It works within the limit of agile project.
Body of knowledge-It is suitable for not profit oriented organization, project
management certification and standard organization. It develops a book which is
known as project management body of knowledge. This book defines the guidelines,
scheduling and execution of the project.
Critical path method- In this approach the project manager prepares the model of
the project. It includes all the activities related to project such as time duration and
break down structure. The manager can defines the longest path to complete the
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project that is known as critical path. It is suitable of small and medium sized
enterprises.
On the above methodologies are used by banking industry with effectively manner.
This methodologies are used by enterprise to completing the task. The HSBC using
the four phases of project management such as planning, execution, initiation and
closure to complete the online banking activities (Soares and et.al, 2021).
Project tools- These tools are the answer of project manager to manage the
projects. In simple projects require the checklist, it is no need to complete various
step but in complex projects there should be establish the four phases of project
management. To use of tools the project can be divided into the quantify, objectify
and allocation of task properly. There are many project management tools to start a
new project.
1. Kissflow project- It is one of the best tool of project management. It is an ideal
project management tool that helps to start a new project. It checks all the
features of the project. It is easy method so that all the organizations are
adopt it. It provides the tools of modern project but focuses on the functional
managers. It provides project steps active, hold and complete states, different
ways to define the projects, create multiple task and convert into single task.
2. Trello- It is a online project software to collaborate with other projects. It is
straight forward to use. It is used different tools such as lists and boards. It is
free to use but if the management want to choose automation, integration and
supported then it is need to paid the plans.
3. Zoho projects- It is the popular tool that are used in banking industry. The
HSBC is used to giant chart and define the financial ability of the company. It
is used modern technology to do the work. The free plan is limited to basic
feature an standard plan provides the issue track status (Thang and et.al, 2018).
Review and critically evaluate the effectiveness of the PLC
in application to your project using the appropriate
theories models and concepts
The project life cycle defines the way to complete the project. The management is
used to critical path method to define the duration of project. It defines the stages of
loan processing and customer account open. The life cycle of the project depends on
the project type. The four stages, models and principles play an important role with
organization. It is necessary steps to finished the task. In the above case study it
plays a role to the initiation, planning, execution and closure of on site catering
services and proper maintain the healthy life of the employee. It is used various
techniques and provide the optimum solution to the employees. The enterprise used
various methodologies such as scrum and critical path approach and defines the
goals and objects of the company (Wiedmann and et.al, 2019)
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References
Fritter and et.al, 2020. A survey of Life Cycle Inventory database implementations and
architectures, and recommendations for new database initiatives. The International
Journal of Life Cycle Assessment, 25(8). pp.1522-1531.
Jharko, E., 2021, May. Life cycle and quality assurance of software for systems of critical
information infrastructure facilities. In 2021 International Conference on Industrial
Engineering, Applications and Manufacturing (ICIEAM) (pp. 440-444). IEEE.
Maienza and et.al, 2020. A life cycle cost model for floating offshore wind farms. Applied
Energy, 266. p.114716.
Matuštík and et.al, 2020. Life cycle assessment of biochar-to-soil systems: A review. Journal
of Cleaner Production, 259. p.120998.
Soares and et.al, 2021. Social life cycle performance of additive manufacturing in the
healthcare industry: the orthosis and prosthesis cases. International Journal of
Computer Integrated Manufacturing, 34(3). pp.327-340.
Thang and et.al, 2018, December. Optimal planning of renewable sources in micro-grids
based on life cycle cost. In International Conference on Engineering Research and
Applications (pp. 440-447). Springer, Cham.
Wiedmann and et.al, 2019. ICM Database–Integrated Carbon Metrics Embodied Carbon Life
Cycle Inventory Database. University of New South Wales: Kensington, Australia.
Yeter and et.al, 2019. Risk-based life-cycle assessment of offshore wind turbine support
structures accounting for economic constraints. Structural Safety, 81. p.101867.
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