Operation and Project Management

This project analyzes the implementation of operational management principles in Morphy Richards, a subsidiary of Glen Dimplex, as they enter the television market. It includes a review and critique of operational management principles, a continuous improvement plan, and an application of the Product Life Cycle (PLC) to the launch of a new 58-inch television. The project also includes a business case, project plan, and work breakdown structure.

OPERATION AND
PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Conduct review and critique of implementation of operation management principles.........1
TASK 2............................................................................................................................................3
P2 Formulate a continuous improvement plan based on review and critique of operational
management principles................................................................................................................3
TASK 3............................................................................................................................................4
P3 Apply each stage of PLC and produce a business case, project plan and work break down
structure.......................................................................................................................................4
TASK 4............................................................................................................................................9
Review and critique effectiveness of PLC in application to chosen project with the help of
model, concepts and theories......................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operational management is the field of management related with controlling and
designing production procedure & operations within an organization. This process is associated
with supervising, planning and organising during manufacturing of goods & services. Operation
and project management focuses on delivery and ensures that inputs can be transformed into
outputs in a desired manner (Brewer and Dittman, 2013). This assignment is written in context
with Morphy Richards which is a subsidiary of Glen Dimplex, situated in Swinton, England.
Company deals in electrical appliances and offers home products like hair dryers, bread toasters,
wash-dryers, refrigerators and many more. Company is going to enter television market by
introducing TV's having screen of 58 inches and above. This report includes implementation of
operation management principles in respect with organisation. A continuous development plan is
formulated along with critique of operational management principles. Beside this, stages of PLC
and documentation processes such as business case, WBS, project plan are discussed. At last,
effectiveness associated with PLC in application to chosen process is discussed.
TASK 1
P1 Conduct review and critique of implementation of operation management principles
About Morphy Richards: It is a popular brand which deals in electrical appliances and
home products. Company is headquartered in Swinton, England. It is a subsidiary of Glen
Dimplex and offer products such as toasters, kettles, refrigerators, washing machines etc. As
company is going to expand at regional and international scale, they are planning to enter
television market by offering TV's having 58' inches screen and more. Manager of the firm is
given responsibility to manage operation and project in a desirable manner so that televisions can
be introduced in market without facing any barriers.
Operational management is specified as the plan and execution of operations in
manufacturing & production world. These operations involves production planning, demand
forecasting, supply chain collaboration, quality management etc. whereas project management is
defined as the planning and execution of non routine work such as controlling, monitoring and
closing projects. Operational management is associated with planning, managing, controlling the
manufacturing procedures (Bushuyev and Friedrich Wagner, 2014). It will benefits Morphy
Richards in ensuring timely delivery of products and services to customers. It will helps Morphy
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Richards in enhancing their overall productivity as operation management assists in enhancing
overall productivity of the company by eliminating those aspects which do not add value. Six
sigma and lean production methodology are some operational management principles which will
benefits the concerned company in appropriately maintaining their production, manufacturing
and delivery processes by eliminating wastage and reducing cost expanses. Due to this,
launching of television screens will became a huge success for company.
Six sigma: It is defined as a systematic approach which helps the production department
in reducing and eliminating errors. This operation management principle uses statistical methods
to improve and enhances the product quality by minimising variability. There are two tactics by
which six sigma can help Morphy Richards to attain its goals and objectives i.e. DMAIC and
DMADV. Six sigma DMAIC aspect will benefits Morphy Richards in improving their already
existing processes. This approach will include defining the faced problem and the desired
solution by measuring the ability of process. It will allow manager to analyse data so that root
cause of problem can be identified properly. This will benefit the manufacturing team in Morphy
Richards to carry out appropriate modifications and control the process so that while
manufacturing TV, less defects will take place. DMADV is used to design a new process by
defining design standards which align with products or goals. It will help manager in measuring
and identifying characteristics of product. After that, data will be analysed and manufacturing
team will be able to identify potential defects. In accordance with defects, design will be changed
and it will be verified that if the design meets the desires of company or not (Floricel and et. al.,
2014).
Implementation of six sigma: Manager in Morphy Richards company is required to
allocate resources in an optimal and organised manner. Appropriate knowledge and training must
provided to workers related with TV such that new innovative ideas can be introduced to
improve features of TV.
It can be critically evaluated that this operation management principle is helpful to
Morphy Richards to gain advantage against rival firms. In context with TV, quality of machinery
and software implemented carries importance. If defects will be eliminated and reduced
desirably then revenue and profits of company will enhance. But it is complex and expensive
process for Morphy Richards which is a small firm which faces financial issues. To implement
six sigma high investment is required which is difficult for company to manage.
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Lean methodology: It is an operational management principle that emphasize on cutting
waste without compromising with quality. This process can be applied form designing through
production and then distribution. This process will benefits Morphy Richards in reducing their
costs and expanses by eliminating wastage and undesired processes (Garel, 2013). Unless,
concerned company will apply lean process multiple times, some wastage remains due to which
cost of TV will increase. There are different principle associated with this process such as value,
value stream, flow, pull or perfection. Value is defined by requirement of a specific product and
value stream will decide the manner in which final product will be delivered to customers by
eliminating waste elements. Next step will help in performing business activity smoothly.
Products will be produced when required by following just in time case.
Implementation of lean production: To implement lean process, Manager in firm
requires to manage inventory properly. Standing inventory of machinery and electronic
components will assists Morphy Richards in avoiding wastage of resources and space. Due to
which, manufacturing of TV will take place in an organised manner.
It can be critically evaluated that lean production principles will help Morphy Richards in
enhancing productivity of firm by reducing wastage and cost. Because of standing inventory, less
space and resources will be needed. But this procedure is complex to implement due to long term
commitment. This process is risky, in case extra material and resources are needed, workers need
till resources come which results in time wastage (Verzuh, 2015).
TASK 2
P2 Formulate a continuous improvement plan based on review and critique of operational
management principles
Effectiveness of continuous improvement plan: It is essential that Morphy Richards
must maintain quality and cost of their new introduced product which is television. Total quality
management will assists in managing the desired quality of television in a productive manner.
Six sigma will allow the firm to make TV production process more effective by avoiding damage
and defect. Beside this, variance principle will helps in deciding a profitable cost for TV without
mismanaging the expectations of customers. Lean principle will assists company in reducing the
wastage of inventory so that resources can be used optimally (Greene and Stellman, 2018).
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BASIS APPROACH/PRINCIPLE IMPLEMENTATION
Quality
To maintain the quality of television,
Morphy Richard can take advantage of
total quality management so that their
product will include new and
innovative features which will improve
quality of televisions.
This approach will assists Morphy
Richard to prepare an efficient action
plan in which special consideration will
be given quality of software and
machinery used in manufacturing TV.
Cost
To manage and reduce the extra cost,
manager in Morphy Richards can use
variance that will help in deciding the
cost of TV along with required
improvement in already existing
products.
Variance reduction techniques will
measure performance of complex
production in a desired way. It will help
in finding alternative way for a single
task. Company can choose the desired
one that will helps them in reducing
overall cost of 58 inches TV.
Delivery
To sustain a strong delivery process,
firm can implement six sigma. This
will assists in managing delivery and
distribution to a large extent in an
organised manner.
Stages associated with six sigma
involves pilot project, training, team,
plan, execute and evaluate. This will help
in sustaining a robust delivery system to
deliver manufactured TV's.
Safety
To find errors, damages and faults in
products, company can use lean
principles. These principle will provide
safety to manufactured process from
undesired aspects.
Implementing lean method will benefit
Morphy Richards in eliminating errors
and unwanted procedures due to which
safety and security of machinery and
software will enhance while
manufacturing of TV.
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TASK 3
P3 Apply each stage of PLC and produce a business case, project plan and work break down
structure
Every product has a specific life cycle and with time the shelf life of these products starts
decreasing. This results in decreased popularity of the product and demand of new and
innovative products increases. Every product posses a specific life cycle and have limited time
span. One way to enhance life of a product is to invest heavily in new product development so
that firms like Morphy Richards can profitably introduce their new product in market and enjoys
high revenue. In respect with introduction of new 58 inches TV, stages of product life cycle are
mentioned below:
 Introduction stage: This stage of product life cycle is considered as the most expensive
stage as it is related with the launch of new product. As Morphy Richard is not a big
organisation, size of market and customer base for new 58 inches TV is small. This will
results in low sales in starting time period. Costs and expenses will be high due to
processes like research and development, marketing, consumer testing as already existing
companies within same industry are performing very well due to competition for Morphy
Richard during first stage is very high (Karrbom Gustavsson and Gohary, 2012).
 Growth stage: This stage encounters a big rise in profits and sales. As company has
already invested high during first stage, this stage will allow them to enjoy economies of
sale in production. High sales and profits will allow the manager in Morphy Richard to
invest more in promotional and advertising activities so that television introduced by
company can achieve immense popularity within marketplace.
 Maturity stage: At this stage, the new television introduced by Morphy Richards will be
best established in market and main task of manager within company is to maintain the
market shares of firm in an efficient manner. It can be considered as a most difficult and
competitive phase for the firm as most of the potential customers must have already
purchased the product. Any modifications and improvements in manufacturing process
will be carried out at this stage so that sales can be stabilised.
 Decline stage: This is the last stage associated with product life cycle where market and
popularity of a product starts declining. This situation arises because the market have
became saturated and customers will not willingly buy televisions offered by the
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company (Kerzner and Kerzner, 2017). Change in preference of customers towards new
product can also be a reason. Declining stage is inevitable, but manager in Morphy
Richards can reduce its impact on product and company be using less expensive
production methods and reduced promotional activities.
Business case for Morphy Richards:
Executive summary: This business case will show the opportunities for Morphy
Richards to introduce their television of 58 inches. It will also specify about the opportunities
and threats which a company may face in promoting their product within marketplace. It will
involves suggestion so that best action plan can be formulated to convert opportunities into
strengths.
Opportunity: Morphy Richards have opportunity to enhance their expansion, sales and
revenues by introducing 58 inches TV within market. This will be possible due to increased
customer base and sales. Hence, it is vital for concerned company to prepare an appropriate
strategy which will assure their sustainability within market (Kujala, Ahola and Huikuri, 2013).
Project Name Launching of 58 inches television
Date of project
approval
26/02/19
Overview of the
company
Morphy Richard is a brand in United Kingdom which deals with home
and electrical products like kitchen appliances, gas, heaters etc. It was
formed in 1936 and serves UK, India, Israel and Australia. It is
headquartered in Swinton, United Kingdom.
Business strategy Main business strategy of company is to sale electronics which have best
features but present scenario is different. With the introduction of 58
inches TV in market, sales and profit of the company will increase as TV
will incorporate new and unique features that will outdates the existing
technology.
Options considered To achieve expected success:
 Expertise R&D team is assigned responsibility
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 Experienced workers are going to handle production process
 Will incorporate smart and advanced features
Benefits Associated benefits will be:
 Enhanced sales and profitability
 Increased customer base
Timescales According to the initial analysis, production of TV will require 6 to 7
months
Costing Software = 36,000£
Project management = 35,000 £
money given to project members= 100,000 £
Total estimated cost = 171,000 £
Expected return on
investment
Year 1 = 1100 £
Year 2 = 140,000 £
Year 3 = 190,000 £
Associated risks Other firms in same industry are giving tough competition by offering
same products in less range.
Project management:
It is a document that assists in proper execution of project operations and activities.
project management will benefit the manager in Morphy Richard in specifying aims and
objectives of company (Strande and Brdjanovic, 2014).
 Aim: Project is aimed to successfully introduce 58 inches television in market.
 Objective: Organisation is working to achieve 20% increment in revenues of firm in next
6 months.
 Scope: It is specified as area in which business operations are performed. Scope for
company is high as people in UK are economically stable and prefer to buy expensive
products. Company will earn high revenue and growth.
 Quality: It is vital for Morphy Richard to deliver standardised products so that client
base of firm can expand. It will increase market share of firm (Lappe and Spang, 2014).
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 Communication: To manufacture TV in expected manner, it is important for employees
of Morphy Richard to have proper interaction and communication level with one another.
Improper communication can results in business fail.
Work break down structure:
This process benefits in breaking project work in small operational sections. Different
responsibility is given to different persons so that all the tasks can be performed desirably.
Project methodology:
It can be derived that for this project scope is a variable task where as cost and time will
remain same. Project framework will be adaptive and will results in desired outcomes. It is very
essential for manager in Morphy Richards to adjust the scope of project in a desired manner.
This project need appropriate action plan and effective strategies so that competitive advantage
can be gained.
Tools:
To manage work in a desired manner, manager of company is going to use Gantt chart
that will help the company in tracking each and every activity associated with launching of new
58 inches TV in an appropriate and organised manner.
Leadership style:
In respect with company, participative leadership will benefit the manager in Morphy
Richards to achieve success in a expected manner. In this leadership style, all the work will be
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carried out by employees and manager in a unified way and opinion of employees will be given
considerations (Leach, 2014).
TASK 4
Review and critique effectiveness of PLC in application to chosen project with the help of
model, concepts and theories
Effectiveness associated with product life cycle for this particular project will be judged
in accordance with the reliability and suitability. These aspects are associated with the
contribution that is carried out for new product development. In case of Morphy Richards, firm is
going to introduce a new product i.e. 58 inches TV within marketplace. To measure the
effectiveness of PLC, manager of the firm needs to consider project initiation, execution,
planning, evaluation etc. To appropriately introduce product in market, manager in Morphy
Richards needs to use effective techniques and tools (Muller, 2017). For this purpose, concerned
company can use waterfall model that will help in evaluating and structuring every phase of
PLC. This model is taken into consideration for big projects like business expansion, new
product development, development of production unit etc. different stages associated with
waterfall model are mentioned beneath:
 Requirements: This is the first phase of waterfall model and include understanding
about what company need to design so that their new product i.e. 58 inches TV will gain
wide popularity within market. In this phase, specifications related with input and output
are mentioned.
 Product design: Specifications for new product are studied in this phase and in
accordance to that an effective product design is prepared. Product design will help in
acknowledging required software, machinery and tools so that a proper television
architecture can be prepared.
 Implementation: In this step, product design is passed on to various department of
Morphy Richards so that actual clarification regrading product and improvement
suggestions can be acknowledged. It is the execution stage of project and project
management.
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 Integration and testing: This step includes controlling stage in which testing, checking
and monitoring is acknowledged to know strength and suitability of sample product that
company is going to launch in market (Spalek, 2012). This stage takes product at
maturity level where customer base and revenues increase considerably.
 Deployment of system: Here, the newly developed 58 inches TV will be realised into
market so that firm can achieve its desired outcomes. Major target in this stage is to reach
maturity level, which is only possible with the help of strong distribution system.
 Maintenance: This is the last stage of waterfall model. Here modifications and required
changes are carried out in product so that the popularity of product within market will not
fall and stabilised sales can be achieved.
This model is effective for both large scale and small scale projects as it follow
systemic processes while handling project. These projects can either be business expansion or
new product development. Small scale projects include aspects like service handling. This
project will helps in achieving effective results.
CONCLUSION
From above mentioned report, it can be concluded that implementation of operational
management principle helps a firm in eliminating those aspects which do not add value to the
organisation. Continuous improvement plan helps an organisation to improve their product
according to the preference of customers and market demand. PLC is a tool which will specify
the product and its popularity at different time period.
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REFERENCES
Books and Journals
Brewer, J. L. and Dittman, K. C., 2013. Methods of IT project management. Purdue University
Press.
D. Bushuyev, S. and Friedrich Wagner, R., 2014. IPMA Delta and IPMA Organisational
Competence Baseline (OCB) New approaches in the field of project management
maturity. International Journal of Managing Projects in Business. 7(2). pp.302-310.
Floricel, S. and et. al., 2014. Extending project management research: Insights from social
theories. International Journal of Project Management. 32(7). pp.1091-1107.
Garel, G., 2013. A history of project management models: From pre-models to the standard
models. International Journal of Project Management. 31(5). pp.663-669.
Greene, J. and Stellman, A., 2018. Head First PMP: A Learner's Companion to Passing the
Project Management Professional Exam. O'Reilly Media.
Karrbom Gustavsson, T. and Gohary, H., 2012. Boundary action in construction projects: new
collaborative project practices. International Journal of Managing Projects in Business.
5(3). pp.364-376.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Kujala, J., Ahola, T. and Huikuri, S., 2013. Use of services to support the business of a project-
based firm. International Journal of Project Management. 31(2). pp.177-189.
Lappe, M. and Spang, K., 2014. Investments in project management are profitable: A case
study-based analysis of the relationship between the costs and benefits of project
management. International Journal of Project Management. 32(4). pp.603-612.
Leach, L. P., 2014. Critical chain project management. Artech House.
Muller, R., 2017. Project governance. Routledge.
Spalek, S., 2012. The role of project management office in the multi-project environment.
International Journal of Management and Enterprise Development. 12(2). pp.172-188.
Strande, L. and Brdjanovic, D. eds., 2014. Faecal sludge management: systems approach for
implementation and operation. IWA publishing.
Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.
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