Operation and Project Management

This report explores the principles of operation and project management in the context of MFI, a leading furniture maker and seller in Europe. It discusses the application of these principles, the extent to which they meet the organization's requirements, and the formulation of a continuous improvement plan. The report also examines the use of lean principles and provides recommendations to improve organizational functions.

OPERATION AND
PROJECT
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Introduction to the selected organisation................................................................................1
Explanation for operation versus operational management...................................................1
Critique and review by implementing principles for operation management in case of
organisation............................................................................................................................2
Define the extent by which operation management of firm accomplishes their requirements3
Define continuous improvement aspect in terms of philosophy and mention about lean
principles................................................................................................................................4
Formulate continuous improvement plan after reviewing principles of operational
management............................................................................................................................5
Use continuous improvement principle, justify recommendations to improve organisational
functions.................................................................................................................................6
PART 2............................................................................................................................................6
Overview of case study mentioned in brief............................................................................6
Description regarding PLC and discussion of each stage......................................................7
After apply each stage of PLC for project involve business case, project plan and WBS.....7
Critique and review effectiveness of PLC in project application by using appropriate concepts
and models..............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation management can be defined as the application of business activities and methods in
business expansion in order to use maximum operational capacity to the maximum extent within
marketplace by a business organisation. This concept is related to good manufacturing with the
help of labour and other required raw material. Project management is stated as the process in
which execution, initiation and completion of project takes place by going through from many
activities and to meet sole business objective. This report undertakes all the concepts of project
management and PLC in which company has been taken is MFI which is a leading furniture
maker and seller in Europe. The company deals in their more than 250 stores across UK and
Mainland Europe. The company is followed by vertical integration and contains portfolio of
more than 50 products. This report includes principle of operation management and continuous
improvement plan. Further PLC plan is included which is essential to achieve success of running
project. In the last part of this report project life cycle is being examined in which required
theory and models are applied. (Kawamata and et. al., 2016)
PART 1
Introduction to the selected organisation
MFI is a leading furniture maker and seller in Europe. The company deals in their more
than 250 stores across UK and Mainland Europe. The company is followed by vertical
integration and contains portfolio of more than 50 products. MFI is headquartered in London,
UK and was come into existence in the year of 1964. MFI is a largest kitchen and bathroom
furniture suppliers and for advertisement they are operating business in Retail Park which is
existed outside of the town. Further they suffered from heavy losses so they have to sell their
business to management in the year of 2008 by earning small profits. So in 2015 the company
renamed their identity and entreated in new market segment of home products.
Explanation for operation versus operational management
Operation management is a procedure which contains various procedures, action plans,
equipment and other activities which are advantageous for business in process of adding value to
business offerings which is helpful for the business in producing high quality products.

Operation management is helpful for the business in achieving their business objectives and
generates a path for management to achieve their business goals in sufficient manner.
Operation management is the combination of overall production process in which with
the help of labour and raw material high quality products are manufactured. Operation
management helps the business in earning their desired profits by using efficient manufacturing
process. (Higuchi, NEC Corp, 2016)
Critique and review by implementing principles for operation management in case of
organisation
Operation management is having various principles and that are required to be undertaken in
order to use them in effective manner so that they can give high benefits to the business
(Meredith, Mantel and Shafer, 2017). In this context MFI is having major operation as their
supply chain and logistics.
By utilising these operations in effective manner with the help of operation management
principle business is able to increase their efficiency and productivity for long term. Execution of
operational management principles for MFI is particularised as under:
 Variance: In every business procedure this principle is used widely and prominently.
This principle is used by those businesses that are willing to have business expansion and
for this they want to minimise their cost and review it timely. This principle is having
immense implications in supply chain management as in that using this principle cost of
manufacturing can be minimised. Within the context of MFI they are facing issue of
enhanced cost by which they are required to manage their logistics in such a manner that
they can deal with this problem. For enhancing their logistics the company is willing to
recruit some new personal skill candidates by which company will have to expand more
amount of funds on their training and development this leads the company to expand
more form their profits. So it can be said that this principle is not suitable for the
company as it doesn’t satisfy their core objective (Alomar and et. al., 2016).
 Organisation: This principle is stated as that in every business there are so many
operations which are conducted in order to get high profitability and operational
efficiency so all these functions are required to be conducted in an effective manner. For

this purpose MFI may use high tech machines within their production process so as to
enhance supply chain and logistics. Hybrid trucks may be used by them within
distribution system which gives them additional safety over goods in transit to customers.
On the contrary this principle is having numerous difficulties such as it needs high capital
to be invested so this is not proven to be suitable for MFI.
 Change: This principle is used by businesses in the method of proper supply chain
management system. Similarly when customers get on time delivery of their ordered
product then these efforts are highly appreciated by customers and they become loyal to
the brand. This principle is used by companies so as to have appropriate system of supply
chain management. With this context MFI is trying to establish effective communication
with their clients so as to meet their expectations with them. This effort helps the
company to get to know about client requirement and to satisfy the same with their
product offerings. Similarly by this distinct identity of the product can be made by which
brand value within marketplace can be improvised. This approach requires high
investment as customer relationship manager is required to be appointed by the company
so this principle is not meeting requirement of MFI so it is not appropriate for them
(Desmond, 2017).
 Fundamentals: This principle involves numerous norms and fundamental instructions
which are required by a business to follow in order to get high business efficiency and
high manufacturing standards. In order to high end market sustainability the company is
dealing in green house clause in which they are getting high business benefits. So it can
be deduced that this principle is the most advantageous for MFI as by this they are able to
satisfy their business objectives.
Define the extent by which operation management of firm accomplishes their requirements
This is highly required by business to examine their applied principle so as to employ
them within MFI. If principle does not meet basic requirements then businesses are not required
to apply them as they are not necessary. Detailed discussions of these principles are elaborated as
under:
 In the first context MFI is required to control their total cost of manufacturing activities.
In this activity principle of variance is used in order to enhance product line. This

principle is used by MFI in order to reduce their operational cost and minimise those cost
which are not required by business. This effort helps the business in getting reduced cost
but at the same time this principle is not true for getting high cost efficiency. So this
principle does not provide high business advantages as not proven to be most beneficial.
 The company is having requirement to maintain high business consistency within their
operations. As company is facing problem in consistent supply chain management due to
which business is facing problem in effective management. In every business activity
complexity arises so in order to eradicate those barriers operational management
principles are applies.
 MFI is planning to instrument various techniques in their management system so as to
enhance supply chain in desirable manner by utilising those aspects over there. The
company is highly focused on enhancing customer relations as by effective
communication customer engagement can be improvised and sustainability can be
achieved by the business as well. So this principle is meeting requirement of MFI in
nearby manner.
 With the main motive to attain business efficiency and effective relations with clients
MFI is using fundamental principles of operational management. With the help of these
principles business is able to get its optimum efficiency by which sustainability can be
achieved. This principle is the most advantageous for MFI as this is meeting their core
objective to have effective communication with their clientele.
Define continuous improvement aspect in terms of philosophy and mention about lean principles
This is requisite by MFI that continuous plan is adopted by them in order to get high business
efficiency by which they can meet to their core objective which is to satisfy customers and
establish effective communication with them. Continuous plan is a set of plan in which measures
are taken in order to enhance business output in economic cost. With the help of critical method
high consistency can be reached by business by which production can be enhanced in desirable
manner. With the purpose to get immense output lean production mythology is applied by MFI
in their manufacturing process by which they are able to get efficiency in manufacturing process.
(Butler, Szwejczewski and Sweeney, 2018)

This principle is advantageous for MFI in minimising their incurred cost and to obtain high
output. On the other side MFI is focused on maintaining high end relationship with their clients
so as to increase their profitability and enhance business efficiency as well. MFI is using lean
principle along with its five major principles which are elaborated as under:
Define the value Within this principle businesses are highly focused on adding
value to their offerings in the market so as to obtain distinct
identity that could be easily recognised by customers. MFI is
utilising this principle with the major purpose to attract more
customers within their offerings and enhance their customer
base.
Mapping value stream The company is having sole objective to enhance
communication and establish effective communication with
their customers so in this principle they are designing their
communication style so as to make their customer satisfied
and important. By this high business efficiency can be
received by them.
Creating flow In order to eradicate business problem this principle is
associated with identifying loopholes in manufacturing
process.
Establishing a pull This principle is focused on JIT which is an advantageous
approach for business so as to finish their operational task
within given time period. For this MFI is focused on making
effective communicational relations with their client by which
they are planning to get high business efficiency.
Pursuing perfection Within this principle business tries to use high tech within
their business in order to get high marketplace sustainability.
By this principle market image and goodwill of MFI can be
improvised in considerable manner (Lleo and et. al., 2017).

All these principles of lean production are advantageous for the business in order to get
high business efficiency. This is beneficial for MFI so as to have high end continuous
improvement for managing their logistic and supply chain management in apt manner.
Formulate continuous improvement plan after reviewing principles of operational management
Continuous plan is helpful for the business to improvise manufacturing process so as to
meet customer expectations in prominent manner. This is helpful for the business to improve
their productivity and attain their business objectives within given timeframe. In order to meet
business objectives and a continuous plan is prepared which is described as under:
BASIS CURRENTLY USED
METHODOLOGIES
PROPOSED
METHODOLOGIES FOR
USE
COST
Principle of variance is used
by the business with the main
purpose to enhance efficiency
of product line and to give
appropriate customer service
as well. This principle is not
suitable as this is not focused
on minimising operational
cost.
In order to minimise overall
cost MFI may use this
principle which were earlier
used by them to enhance
customer relations. (Verma and
et. al., 2017)
QUALITY
This principle is utilised by
businesses so as to maintain
their quality within product
and to establish effective
channels of communication
within customers.
In their supply chain
management effective control
is to be enumerated as in order
to get high business efficiency
effective channels are to be
used in connecting to the
clients.
DELIVERY This principle is not suitably
applied by MFI as to their
This is required by business to
inculcate organisational change

management they had to sell
their business so to get positive
implications on business
efficiency MFI is required to
formulate effective
communication with their
clients. (Hough and et. al.,
2017)
in order to enhance
productivity and efficiency. In
the context of this MFI is
highly focused on taking
customer complained on
priority so as to meet their
expectations and have effective
communication with them.
Use continuous improvement principle, justify recommendations to improve organisational
functions
Various suggestions are given to the company in order to enforce principles of operational
management so as to enhance business efficiency. These suggestions are enlisted below:
 MFI is required to put high focus on using various communication channels in order to
make effective communication with them. This is helpful in establishing one to one
communication and distinguish market image.
 Customer demand is to be determined by MFI within this information should be collected
by them for needs of customer and then product can be made according to that. By this
high edge of market competition can be received and this will help the company in
gaining business sustainability. (Bosselmann, 2016)
PART 2
Overview of case study mentioned in brief
MFI is one of the leading furniture retailers and wholesalers in UK and mainland of
Europe with large market coverage and customer base. They deal in 50 different products and
verities due to which they hold their position within top three brands in marketplace. They have
around 250 stores in total across Europe. The focus of this case study is to initiate and design the
project stages to make their customer relationships stronger and come up with an effective and

efficient customer complaint procedure to serve the customer in best possible manner(Englander
and Carraccio, 2018) .
Project: The project is initiated by MFI to improve their existing relationships with
customer and make customer complaint procedure effective and efficient. They have to make the
customer complaint procedure and simpler, faster and more learning.
Description regarding PLC and discussion of each stage
A product life cycle (PLC) can be termed as a project from beginning until end and it
consists of four stages. These stages have to be covered by every manager to ensure the validity
of project and achieve the desired project goals of the organization within desired time frame.
PLC helps to carry on the business activities in an efficient manner and trach the activities and
on regular basis. With respect to MFI, the company is planning to initiate a new project to
enhance customer satisfaction level, customer relationships, customer grievance system, service
quality etc. The different stages of are stated as below:
Project Initiation: - The very first stage of PLC is project initiation in which a strategy needs to
be designed by MFI focused on enhancing customer satisfaction level, customer relationships,
customer grievance system through clear communication and implementation of various
initiatives to improve customer experience. This stage will work as base for other upcoming
project stages and will guide the organization towards desired goals (Langmann and Rojas-Peña,
2016).
Project Planning: - Second stage for project is estimation and planning of resources, cost, time
etc. and finalizes steps to be followed to achieve the goals desired at project initiation stage.
Planning in general is a continuous process it has to be regularly supervised by MFI Sales
division with respect to this project. Plan should also include way to identify customer needs and
improvements that can be brought in existing processes (Sendin and et. al., 2018). Within this
stage KPI is utilised by MFI so as to communicate their objective of project to whole
organisation in order to render responsibilities in effective and considerable manner. KPI is
helpful for the business to create path of reaching out to its ultimate objective in significant
manner.

Project Execution: - Above two stages are done on papers once both of them are completed it is
time to execute what has been planned to achieve what has been desired in stage one. MFI has to
form a team to execute their plans for customer enhancements with respect to quality of goods
and services as per customer expectations, fast and effective remedies and responses to customer
grievances, effective customer communication etc. as defined by Continuous Improvement
Group (CIG) of MFI.
Project Closure: - The final stage of Project is closure of project started. This stage is achieved
when goals decided in project initiation stage are being achieved. With context of MFI when
customer enhancements has been achieved in desired areas till desired level of customers this
stage will take to be completed and project will come to an end with this. After apply each stage
of PLC for project involve business case, project plan and WBS
Business case
Business case is a document in which entire working of the project is included by
business managers so as to get assistance over the project and business objectives as well. The
business case in situation of MFI is explained as under:
Company overview MFI is a leading furniture maker and seller in Europe. The company deals
in their more than 250 stores across UK and Mainland Europe. The
company is followed by vertical integration and contains portfolio of
more than 50 products. MFI is headquartered in London, UK and was
come into existence in the year of 1964. MFI is a largest kitchen and
bathroom furniture suppliers and for advertisement they are operating
business in Retail Park which is existed outside of the town.
Vision and mission The major mission and vision of the company is to formulate strategies
which are to make those strategies for business growth which ate
customer centric. By this best services can be given to them and this will
attract them towards MFI’s product offerings. (Matanza, Alexandres and
Rodriguez-Morcillo, 2016)

Objective The sole objective of the company is to make communication stronger
between customer and business and for this they are willing to make
appropriate process of customer complaints.
Strategy The company is willing to make effective system of customer complaint
procedure so as to have friendly relations with their customer in order to
promote brand value within marketplace.
Follow up In this stage all the past activities are analysed and all the loopholes are
taken within new project so as to enhance project efficiency.
Project plan
Cost The cost which is needed for this project is estimated to be £18,000- £
23,000.
Communication It is required for manager of MFI to form effective communication
amongst entire workforces so as to interconnect all the plans effectively.
For this project manager is having accountability to interconnect all
project member in constant manner.
Scope The company is required to connect their clients so as to begin effective
relations and understand their problem in early manner. This will help
them to get great customer fulfilment.
Work break down structure:
WBS is a type of structure in which activities are broke down into tiny units in order to help
whole working people in making them near to the goal achievement in considerable manner.
Within this context MFI’s manager is dividing all the activities in smaller parts so as to make
them more efficient in attaining objectives in desired manner.

Critique and review effectiveness of PLC in project application by using appropriate concepts
and models
With the help of using waterfall model evaluation can be established of PLC. The model is
explained as under:
Requirement: Within this all the procured resources will be inspected so as to give decision
regarding performance of activities. Within this stage various objectives are decided by the
company within current market scenario. In the context of MFI they are having major objective
of establishing effective communication with their clients, this helps them in understanding their
clients in better manner by which needs and demands can easily be identified. On the contrary
this objective will cause them to face high investment in capital due to which they will have to
sacrifice their profits. (Rástočný and et. al., 2017)
Design: Within this stage channels of communication will be recognised by the company by
taking help effective communication can be established with customers. This is helpful for the
company in appropriately communicating with their client so as to get to know about their needs
and demands. On the other hand if misappropriate communication channel is chosen by MFI
then this will restrict them to reaching out to customer by which generation of ineffective
strategy can take place.

Development: Within this stage all the formulated strategies will be implemented, in
background of MFI they have formulated strategy to have effective communication with their
clients so this strategy will be implemented with a main purpose to get high customer
satisfaction. These strategies can set path for goals achievement for MFI and by this they can
cater their customer in more considerable manner. On the other hand this is having positive
implications on profitability of MFI by which long term sustainability can be received by them.
Testing and maintenance: Within this stage all the details of the new strategy will be
evaluated. Under this all the required changes will be examined by MFI so they can modify them
accordingly in order to give high level of satisfaction to their customer. By the end of this
process major objective of enhancing communication with customer can be achieved by MFI.
CONCLUSION
From the above detailed report it can be deduced that operation management is having
vital role in business and maintaining its efficiency to the desired level. Within the
manufacturing process operation management is having prominent role as this helps the business
in improving internal standards and major objective of attaining customer satisfaction can be
achieved. Continuous plan is helpful for the business as in maintaining firm effectiveness and
consistency in order to get huge satisfaction form customers. In the last various stages of PLC is
helpful for the business in recognising organisational efficiency as compared to business goals
and objectives. (Kerzner, 2017)

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