Operation and Project Management - PDF

Running head: OPERATION AND PROJECT MANAGEMENT 1
OPERATION AND PROJECT MANAGEMENT
[Author]
[Institution]

OPERATION AND PROJECT MANAGEMENT 2
Table of Contents
Introduction..........................................................................................................................3
General and current issues...................................................................................................3
Organizational attributes......................................................................................................4
To what extent the company is providing a core or pure service?..................................4
How is operations and supply chain management integrated with other function
department of the company?........................................................................................................4
How does the industry of the company impact the above described issues in operations
and supply chain management?...................................................................................................5
How does the company size affect the discussed issues in operations and supply chain
management?...............................................................................................................................6
How the competitive environment does impacts the issues in operations and supply
chain management?.....................................................................................................................6
How does the company’s location or network of locations affect the discussed issues in
operations and supply chain management?.................................................................................7
How does the overall corporate strategy have an impact on operations and supply chain
management?...............................................................................................................................8
Conclusion...........................................................................................................................8
References............................................................................................................................9

OPERATION AND PROJECT MANAGEMENT 3
Introduction
Operation management is the planning as well as execution of operations (i.e. routine
work) in the service and manufacturing sectors. It includes, demand forecasting, planning of
production, inventory control, supply chain collaborations and quality management. On the other
hand, project management means the planning the implementation of projects (i.e. non-routine
work) in the service as well as business worlds. It includes the initiation, controlling, monitoring
and termination of projects (Christopher, 2016). The report describes the operation and project
management in Erste Group Bank AG (Erste Group Bank AG, 2018). The report is focused
towards the identification of general issues and organizational attributes. Based upon these,
various queries have been solved that are linked to supply chain management.
General and current issues
There are numerous issues which are faced by the Erste Group Bank AG in performing
its operational activities as well as project activities. Some of the issues have been listed below:
 Globalisation issue: It is the most common or general issue which is arising in the
banking sector. Due to increase in globalisation, banks need to provide more loans and
investment options to its customers oversee (Christopher, 2016). If the success is not
achieved then it becomes difficult for them to recover the amount.
 Economic imbalances: The economy of the Austria is declining and this has created
issues for the bank because the inflation or deflation rate of the country impacts the
profitability and success of the Erste Group Bank AG (Russell and Taylor, 2006).

OPERATION AND PROJECT MANAGEMENT 4
 Consumer expectation: The expectations of consumers are increasing with the time and
trend. Due to this, bank has undergone high pressure.
 Regulatory pressure: The requirement of regulatory keeps on increasing and bank is
required to spend a large part of their discretionary budget on being compliant, on
building systems and processes for keeping up with the escalating requirements (Kerzner
and Kerzner, 2017).
 Increasing competition:Many new banks have been established and it provides new and
innovative services to the customers. Thus, Erste Group Bank AG is facing the issue of
innovation for exceeding the expectations of the customers.
Organizational attributes
To what extent the company is providing a core or pure service?
The core service of the company is to take the deposits from the customers and provide
service of withdrawing the money. Moreover, its service is also to provide loan to the customers
on the basis of their savings and security. However, the company Erste Group Bank AG is not
only focused towards these services but it also doing beyond this (Fleming and Koppelman,
2016). The bank also provides the services like insurance, investment facility, foreign market
shares and many other similar services.
Thus it can be said that Erste Group Bank AG is providing the core service of banking up
to certain limit and it is not availing it for the customers purely. If the bank does not provide
other services to its customer then it will lag behind and could not compete with its competitors.

OPERATION AND PROJECT MANAGEMENT 5
How is operations and supply chain management integrated with other function department of
the company?
Operations and supply chain management helps in getting the work done very quick and
that too in an efficient manner without any error and at lowest cost. This department of the
company does the major work where in operations management, manufacturing or operational
work is done and in supply chain management, the outcome is supplied to the customers. Thus, it
is very necessary for these departments to integrate with other departments of the firm (Adner,
2017). In Erste Group Bank AG, the operation management is the one where customers are
interacted and cash is taken for deposit. Moreover, the supply chain is followed during the
withdrawal by the customers or while providing loan to them. Thus, these two departments are
integrated with other departments like marketing and sales, finance, HR, etc.
The integration of operation department is with finance department and marketing
department. This way they can convey the requirements with the customers and can solve their
queries. Similarly, supply chain management is also connected with finance department so that
fund could be provided to the customers as and when required.
How does the industry of the company impact the above described issues in operations and
supply chain management?
The above describe issues are competition, regulatory pressure, economic imbalances,
and globalisation. These issues impact the operation and supply chain management of banking
because of its industry. The major characteristics of this industry are of dealing in money by
depositing and providing withdrawals to its customer (Langabeer and Helton, 2015). Moreover,

OPERATION AND PROJECT MANAGEMENT 6
this industry plays an effective role in every nation because it is the reason for their economic
growth and currency factor.
The industry of the Erste Group Bank AG is moving towards globalisation and for that
company has to move along in order to stay updated in the market. Due to this, operations and
supply chain management of the company gets impacted because they have to focus more on
globalisation rather than on it is basic or core service. Similarly, due to industry trends,
consumer’s expectation is increasing continuously and due to this, a firm is not able to
concentrate on its operations management. Further, economic balance in the industry is highest
and this has affected the supply chain management of the bank because consumers are
demanding more and deposits are less. It has become difficult to manage the supply chain.
How does the company size affect the discussed issues in operations and supply chain
management?
If the size of the bank is small then its operation will be very less and similarly the supply
chain will not be long. In simpler terms, complexity in the bank will be less. Moreover, the bank
will not be able to exceed the high customer’s satisfaction as well as globalisation will not have a
major impact on it. On the other hand, big banks like Erste Group Bank AG, has to face many
issues which have been described above in operations and supply chain management
(Wuenderlich and et al, 2015). The regulatory pressure on these big banks is high because it
manages the currency factor of the country. While performing operational activity, bank has to
follow each and every regulation. Moreover, the rising expectations of consumers have put the
pressure over supply chain management. The reason is that due to fluctuating economy,

OPERATION AND PROJECT MANAGEMENT 7
consumers are depositing less and withdrawing more and this has disturbed the supply chain of
the bank.
How the competitive environment does impacts the issues in operations and supply chain
management?
Competitive environment exists in banking sector and this environment has impacted
the supply chain and operations management of Erste Group Bank AG. Many new banks have
been established, small or big in size and this has taken the competition on to another level.
Furthermore, due to high competition, customers are moving to other banks and Erste Group
Bank AG is losing its customer base (Heizer, 2016). Because of this competition, operation
department has got extreme pressure to attract more and customers by providing exciting offers.
Along with that, supply chain has been impacted because people are depositing more of money
and are not demanding loans for their use. Because of this, input is less and output is more.
How does the company’s location or network of locations affect the discussed issues in
operations and supply chain management?
Company’s location plays an essential role in the logistic activities that are involved in
supply chain management. In real-life, the optimization of location as well as allocation
decisions is often preceded by an evaluation of the existing distribution network system. This
evaluation often starts by analysing the quality of the current locations of the service facilities
and the allocation of customer demands to that facility (Collins, 2017).
Thus, the network of location of Erste Group Bank AGhas impacted the above described
issues in operations and supply chain management. The location of one of its branch in Slovakia
was not appropriate and it created the issue of high competition. Due to this, the company was

OPERATION AND PROJECT MANAGEMENT 8
unable to get success in the market. Secondly, the location of Austrian branch is at prime and due
to this, regulatory pressure is very high because it represents the country’s economy (Drucker,
2012).
How does the overall corporate strategy have an impact on operations and supply chain
management?
The corporate strategy of Erste Group Bank AG is to achieve financial strength as well as
growth which includes expanded market share and for generating income for its shareholders by
continued profitability (Banks, 1998). Second is to root the banking culture in the European
market with trust and partnership with our customers and an on-going focus on providing
professional as well as quality services.
These strategies often get contradict with the general issues of high customer
expectations and regulatory pressures. Due to this, bank is unable to fulfil its operational goals
and this lead to the loss of customers as well as less employee satisfaction.
Conclusion
From this file, it can be concluded that there are various issues which the bank faces and
due to these issues, its operations and supply chain management is often impacted. There are
various parameters that impacts its operations and supply chain management and that are
industry, competition, size, network location, etc.

OPERATION AND PROJECT MANAGEMENT 9
References
Adner, R. (2017). Ecosystem as structure: An actionable construct for strategy. Journal of
Management, 43(1), 39-58.
http://journals.sagepub.com/doi/abs/10.1177/0149206316678451#
Banks, J. (Ed.). (1998). Handbook of simulation: principles, methodology, advances,
applications, and practice. John Wiley & Sons. https://books.google.co.in/books?
hl=en&lr=&id=dMZ1Zj3TBgAC&oi=fnd&pg=PR9&dq=operation+and+project+manage
ment+free+full+book+&ots=osGGhqZmaq&sig=hrMev52tGdikc66dAbGPonm560I#v=on
epage&q=operation%20and%20project%20management%20free%20full
%20book&f=false.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
https://books.google.co.in/books?
hl=en&lr=&id=NIfQCwAAQBAJ&oi=fnd&pg=PT7&dq=Christopher,+M.+(2016).
+Logistics+%26+supply+chain+management.
+Pearson+UK&ots=x248DxElpA&sig=kRkV_F-
7eJpl13cKK7RQmDJJLbk#v=onepage&q&f=false
Collins, H. (2017). Creative research: the theory and practice of research for the creative
industries. Bloomsbury Publishing. https://books.google.co.in/books?
hl=en&lr=&id=sJA3DwAAQBAJ&oi=fnd&pg=PP1&dq=operation+and+project+manage
ment+free+full+journal+paper&ots=FUr9Qorv3U&sig=XFfSGzHgoRCVAKzR-
FYeK1bt5LA#v=onepage&q&f=false

OPERATION AND PROJECT MANAGEMENT 10
Drucker, P. (2012). The practice of management. Routledge.
file:///C:/Users/Admin/Desktop/9781136356223_googlepreview.pdf
Erste Group Bank AG. 2018. [Online]. https://www.erstegroup.com/en/home.
Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management.
Project Management Institute. https://books.google.co.in/books?
hl=en&lr=&id=yOSuDgAAQBAJ&oi=fnd&pg=PT6&dq=operation+and+project+manage
ment+free+journal+artical&ots=SE1Iae3Kak&sig=5OQhnjoG6K2SMLZQULV8Bomn5n
Q#v=onepage&q&f=false
Heizer, J. (2016). Operations Management, 11/e. Pearson Education India.
https://books.google.co.in/books?
hl=en&lr=&id=ZcbODAAAQBAJ&oi=fnd&pg=PP2&dq=operation+and+project+manage
ment+free+full+journal+paper&ots=gyTBAbu75m&sig=jNcoYErfoF-
I3sV6Y2vbaFJJLiA#v=onepage&q&f=false
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons. https://books.google.co.in/books?
hl=en&lr=&id=xlASDgAAQBAJ&oi=fnd&pg=PR19&dq=operation+and+project+manag
ement+free+full+book+&ots=Xb2q_PW-
CY&sig=zHW1z0svmF7eRWrXBWTdzG2qXFA#v=onepage&q&f=false
Langabeer, J. R., & Helton, J. (2015). Health care operations management. Jones & Bartlett
Publishers. https://books.google.co.in/books?
hl=en&lr=&id=L4WHCgAAQBAJ&oi=fnd&pg=PR1&dq=operation+and+project+manag

OPERATION AND PROJECT MANAGEMENT 11
ement+free+journal+artical&ots=6MkxycfOO1&sig=AfX7GhieqSh__xeWsisyuDrDl5w#v
=onepage&q&f=false
Russell, R. S., & Taylor, B. W. (2006). Operations management: Quality and competitiveness in
a global environment. https://scholar.google.co.in/scholar?
hl=en&as_sdt=0%2C5&q=operation+and+project+management+free+full+book+&btnG=
#d=gs_cit&p=&u=%2Fscholar%3Fq%3Dinfo%3AOtt-08IEKA8J%3Ascholar.google.com
%2F%26output%3Dcite%26scirp%3D0%26hl%3Den
Wuenderlich, N. V., Heinonen, K., Ostrom, A. L., Patricio, L., Sousa, R., Voss, C., & Lemmink,
J. G. (2015). “Futurizing” smart service: implications for service researchers and
managers. Journal of Services Marketing, 29(6/7), 442-447.
https://www.emeraldinsight.com/doi/abs/10.1108/JSM-01-2015-0040