Implementing Six Sigma and Lean Principles

This report discusses the implementation of six sigma and lean principles within a company planning to enter the market with large-screen televisions. The company adopts a project life cycle approach, applying six sigma to maintain quality and lean principles to manage cost and delivery. A Gantt chart is presented to illustrate the project plan, highlighting the effectiveness of this approach in both small and large projects.

OPERATION AND
PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 The implementation of principles of operation management in organisational context.. .1
TASK 2............................................................................................................................................3
P2 Continuous improvement plan based on operation management......................................3
TASK 3 ...........................................................................................................................................4
P3 Apply each stage of the PLC along with providing necessary supporting documentation for
the project...............................................................................................................................4
TASK 4............................................................................................................................................9
P4 Review and critique the effectiveness of the PLC in application to the chosen project . .9
CONCLUSION .............................................................................................................................12
.......................................................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Project management can be described as a procedure which includes planing, executing,
controlling and finishing a particular task with the assistance of a team to achieve the desired
objectives for the organisation. The project management consists of knowledge, tools, techniques
and skills which are suitable for the task to fulfil the project requirement. A project can be
termed as a plan that is formulated by the higher authorities of the organisation to gain the
competitive advantage. This report is based on the XYZ company which is located in UK. They
are the manufacturers, and sell the home appliances product in the market. The company is
planning to produce the large screen televisions for the stadiums and parks and have decided the
minimum size which they will produce will be 58 inches. The report will describe the concept of
six sigma, TQM in relation with the company. Further, in the report improvement plan will be
introduced to examine the principles of operation management, it will also cover project life
cycle management and critical review of the effectiveness of plc.
TASK 1
P1 The implementation of principles of operation management in organisational context.
Operation management can be defined as the process which is related with the controlling
of the manufacturing and business activities to be conducted in effective manner to accomplish
the desired objectives in set period of time. The process includes transforming raw materials into
finished products for the sell in the market. The operation management formulates supporting
strategies for the business operations commenced in the organisation. The issues which are
considered are the size of the production unit, implementation of techniques and project
management methods. As, the XYZ is planning to enter the market of television and launching
large screen television and the minimum size range will be 58 inches. To commence the plan
effectively the manager of the company is require to analyse the specific principles like six
sigma, lean principles and total quality management which are as follows:
 Six Sigma: The six sigma approach focuses on the quality of the product and not on the
quantity. This approach consists of particular steps that are related with the financial
strength of the organisation. The approach contains the tools like defect calculation,
trending charts and other specific ratios which will be required by the XYZ at the time of
1

launching large screen televisions in the market. The company wants to manufacture the
large screens for stadiums and parks with good quality. The company will be required to
apply methodologies like DMAIC and DMADV these are the two elements of six sigma
approach which are used to implement certain factors in the company.
Basically, DMAIC is used to analyse, measure and control the quality of the existing
product which is being produced by the company. Whereas, the DMADV is used to define the
different aspects for the launching of the new product process. The XYZ will use DMADV as
they are introducing large screen televisions. The described approach will help in supplying the
product as per the requirement of the market and the company is required to identify the needs
and demands of the customers before commencing the production. After analysing the collected
data from the market the company is required to design the matrix which will define the the
features which has to be added in the product. The technical staff is required to examine the
televisions after the production process to determine if there are any errors in the new product
and to check its reliability and durability for the best experience for the customers. This will lead
to managing the good quality of the product and will result in gaining customer satisfaction.
 Lean principles: The lean principle is the process that helps in improving the efficiency
in the production process. It results in eradicating the wastage in the production process
and helps in reducing the production costs. This principle is also known as the lean
production cycle as it leads in implementing specific qualities in the product. The XYZ
company will face wastage in the production because of overburden of large screen
televisions manufacturing and its productivity. This principle consists of elements like
value define, value stream, establishing pull and pursuing perfection. The defining of
value is the amount that the customers can give for the product in the market. Once the
company is clear with the value they can focus on mapping the required operations that
will be performed to meet those value. After analysing the activities in the production
process it must be constructed in proper flow as per the requirement and the time
consumed by them. After constructing the proper structure and eradicating the unrequited
activities the another step is to establishing pull which will help in limiting the inventory
and work in process components while assuring that the needed materials and substances
are accessible for the smooth flow of work in the organisation. After this, implementation
of perfection will help the production process to eradicate the wastage of the materials
2

and will make sure that the customers satisfaction is maintained properly. This will help
in improving the quality of the product and will also aid XYZ company in saving cost
and excess of time in the production process.
TASK 2
P2 Continuous improvement plan based on operation management.
The business organisation is required to make continuous improvement in their business
operations to gain the competitive advantage in the market. The improvement is based on the
demands and needs of the customers which changes on frequent basis in the market. As, the
XYZ is entering in the television segment the manager is required to use specific management
tools for implementing the improvement plan effectively. The approach six sigma will help the
company in making their large screen televisions in effective manner and will reduce the
possibility of any defect in the product. This principles will eventually help in reducing cost,
improving quality and conducting the production process in effective manner. The
implementation of process are defined as follows:
BASIS APPROACH/
PRINCIPLE
IMPLEMENTA
TION
Responsibility Time frame Progress
Achieved
Qualit
y
To maintain
the quality of
the large screen
televisions
XYZ is
required to use
the approach of
total quality
management to
satisfy the
customers in
appropriate
manner.
The approach of
total quality
management will
help the XYZ to
construct a
proper structure
that will focus on
maintaining the
quality of the
product in the
production
process.
It is the
responsibility of
the Quality
Manager to
ensure that
benchmarks
formed for this
project are
fulfilled.
6 Months So far the
business have
been able to
identify and
procure crucial
technology
which is
essential to form
large inch screen
cost effectively.
3

Cost
To reduce the
production cost
XYZ will use
the lean
principle that
will help in
eradicating the
excess wastage
from the
production
process.
As, the company
is producing
large screen
televisions the
lean principle
will help in
eradicating the
wasteful
activities from
the production
process and will
increase the
productivity that
will eventually
cut the
production cost
and company
will be able to
launch the
product in the
desired price they
want.
It is the
responsibility of
operations
manager to
identify ways
through cost of
production could
be minimized.
The application
of lean
principles will
be overlooked
by the manager
and ensure its
smooth
compliance.
10 Months There is an
identification of
factors/activities
which are of less
use to this
organisation.
The planning
have been
carried out
relating to
optimisation of
production
process.
Deliver
y
To deliver the
new products
in the market
XYZ is
required to
adopt the six
sigma to
The six sigma
approach consists
of defining,
measuring,
analysing,
controlling and
improving will
To ensure ideal
delivery of
products and
services to the
target segment,
Marketing
manager will be
5 Months The application
of Six sigma
approach in
marketing
section of the
organisation
have helped. The
4

manage the
delivery of the
products in the
market in
proper and
effective
manner to a
larger extent.
really help the
XYZ to deliver
their new
products to the
customers
effectively form
the scratch
material now in
the form of
finished products
in the market
effectively.
responsible. views and
opinions of
various
stakeholders is
considered so
that supply chain
could be
modified for
better.
Safety
To guarantee
safety form the
products the
XYZ company
will use lean
principle as, it
will help in
examining the
technical issues
in the product
and will
eradicate them
effectively.
This principle
will help the
company in
finding the faults
and minor issues
in the product
and will help
them to eliminate
those issues or
any hazardous
effect in effective
way for ensuring
safety to the
users and
maintaining their
satisfaction level
towards the
company.
Compliance
manager
working for an
organisation is
responsible to
assure that
products and
services offers
matches quality
standards.
3 Months The progress in
this field have
been substantial
as the electronics
offered by XYZ
complies with
Electrical Safety
Equipments
Regulations
2016.
5

It can be analysed from the above presented table that quality, cost, safety and delivery
are crucial aspects for an electronic manufacturer such as XYZ. Continuous emphasis on above
mentioned grounds assure that products which are offered by the company matches market
standards in terms of quality and safety. The company have undertaken lean principles to
identify and minimize expenses on wasteful activities so that offerings can be delivered at
rational prices.
TASK 3
P3 Apply each stage of the PLC along with providing necessary supporting documentation for
the project
The project life cycle can be defined as the process in which a project goes through the
stage of beginning till accomplishment of the desired results. The plc process consists of
components that are initiation, planing, execution, performance and project closure. As, the XYZ
company is planning to launch the large screen televisions for the stadiums and parks and to
achieve it successfully it is important to understand the each and every stage of the product life
cycle which are as follows:
 Project Initiation: It is considered to be the first stage of the project life cycle in which
the company in planning to introduce the large screen television in the market. It is very
essential for the XYZ to define the objective and the project which they want to
implement in the market. To introduce the television in the market the company is
required to perform research to analyse the market conditions and the demands and the
needs of the customers. The manager is required to use tools to analyse the availability of
all the resources which will be used in effective procedure of the project. The manager
will follow the autocratic leadership style as it does not want to include the other
employees at the initial stage.
 Project planning: This is the second phase of project life cycle which focuses on
preparing a proper plan for the project and setting objectives and constructing a path in
which the project will be followed. The company is required the objectives according to
the SMART objectives. This will help in providing clear understanding of the goals. The
planing of launching large screen televisions in the market should be formulated wit the
6

help of surveys and with the help of questionnaires in the market. The democratic
leadership style is adopted in this phase as, it will help in gathering more ideas with the
help of employees to efficaciously plan the project.
 Project execution: The third phase is to execute the project that is planned with the
SMART objectives. The company is required to be very clear with the tools and
techniques they will use in executing the project effectively. As, the XYZ company is
focusing to launch the large screen television in the market they will focus on providing
good quality product to the customers. The company will adopt the total quality
management principle to properly execute their project with effective production process.
The manager of XYZ will use autocratic leadership style to manufacture the product with
accordance of their ideas.
 Project performance: This phase involves monitoring the performance of the project
and to reduce the excessive cost from the production process. The monitoring of
performance help to ensure the quality of the product is appropriate or not. Key
performance is a tool that is used by the manager of XYZ company to analyse the
performance of the large screen televisions in the production unit. The manager will use
the democratic leadership in this phase to take decisions according to the best of their
knowledge.
 Project closure: It is the last phase of the project life cycle that will close the project of
of manufacturing the large screen televisions. The project will come to closure when the
objectives of the company will be met effectively. In this phase the product is been
delivered to the customers. The manager of the XYZ company will adopt the autocratic
leadership style as they will not require the ideas from the employees at this stage of
project.
Business case: The business case will define the resources which will be required by the
XYZ company to initiate their project of large screen television in the market. The resources are
funds, suppliers of raw materials, manufacturing unit, power, etc. It also defines about the vision
and mission, objective of the company by the project. The business case is to launch the large
screen television in the market with minimum size range of 58 inches. It will be a great
opportunity for the company as they will gain the new customer base in the market and will
capture the market on large extent.
7

Overview of the company XYZ is the company which is based in UK and deals in the home
appliances and is planning to enter the market with the large screen
televisions for customers and is also focusing on capturing the
market of stadiums and parks.
Vision & Mission The vision and mission of XYZ is to capture the market and want
to be the producer of the large screen television manufacturers
among the competitors.
Objectives The major objective is to add more products in the home appliances
sector and to cover a large market share. Presently they want to
produce the large screen televisions and they can achieve this with
the help of continuous growth and development in the business
operations with new and innovative ideas.
Strategies The company is focused for the long term growth in the market as
they are entering with the new product and will gain the large
market share with their large screen televisions and they will
produce minimum 58 inches size and will also target to capture the
market of stadiums and parks with their product.
Project plan: The project plan can be described as the formal document which is
designed to guide to control and to execute the project in effective manner. A project plan can be
defined as the key for successful and effective project and is really important at the time
initiating a project.
Cost The cost is the essential factor that is required to commence the
project in effective manner. The project manager will require around
£200000 to conduct brief research for the project which will go till the
actual production process begins. This amount also includes the cost
of production of the larger television till their launch process.
Resources The resources can be defined as the elements which will form the
8

product so that it can be used by the customers. The resources are
cost, manpower, funds, tools and techniques, etc. will be required to
conduct the project process in successful manner. Skilled work force
along with competent funds will be used to conduct the brief research
on this project for launching large screen television.
Research methodologies This research will contain the information from the secondary sources
that will help in identifying the opportunities for the company in the
market. The data collected in the research will be examined by the
advance statistical tools and techniques for the authenticity of the
information.
Work Breakdown Structure: the work break down structure in project management and
systems engineering is considered as the deliverable oriented breakdown of a new project into
small parts. This structure helps in organising the team work into manageable sections for the
effective results.
Illustration 1: Work break down structure
(Source: Work breakdown structure. 2019)
9

Gantt chart: This is developed as it is used for the production control tool, it will help
the company in scheduling a project plan in effective manner and to manage the project with
clear vision.
TASK 4
P4 Review and critique the effectiveness of the PLC in application to the chosen project
As a organisation who wants to introduce new product needs to use certain tools and
technique. That depends upon the size of the project for example smaller products require less
capital investment as compared to larger products. XYZ company needs to critically examine
10

different approaches and select the best situational approach in order to launch television in the
market. The difference between larger and smaller products can be studied from the following
analysis:
Basis Large project Small project
Project Initiation At the initial stage of product
launch company needs to use
tools like total quality
management as their main
focus is to maintain the quality
of product while launching
television in the market.
Managers will use this
technique in order to create
optimum utilisation of
resources with maintaining the
cost of production. This will
result as an efficient approach
in the initial stage. By
providing clarity in the mind
of employees about the set of
goal it will help to launch
product in a smooth way. In
this autocratic style of
leadership can be used in order
to consider both employees
and managers ideas and
launching product with
management perspective.
For modifying the design of
refrigerator . This approach
will not be useful in this
particular project as the project
is concerned with modifying
design. As it is concerned with
quality they are required to
follow another approach for
implementation of small
project in the market. Business
process re engineering can be
used to modify the design of
refrigerator.
11

Project planning XYZ will use survey and
questionnaire tools to collect
information about the
preferences, trends and current
market conditions. Which will
help to minimise the cost of
production While conducting
research. If planning process
is efficient and effective then
the company need not change
the product line.
This tool is not requires by the
company in launching small
production. Because it will
take time and also will increase
the cost will not benefit
company in fact it will act as a
burden on company expenses.
Project execution Total quality management tool
will be used by the manger of
the XYZ company manager in
order to examine the quality of
production in the production
process of the Organisation.
As organisation is launching
new product they need to
emphasis on the quality
because it is a core activity in
the launch process.
In smaller project manger can
use this approach as they are
launching new product and
their main focus is on
maintaining quality, thus it is
required to be managed while
conducting the modification
process of refrigerator.
Project performance XYZ will examine this with
the help of key performance
tool on project in order to
In smaller projects this tools
tents to be less effective. As
the cost involved in applying is
12

ensure that minimum cost of
production can be achieved.
This needs to be done with
proper care in order to
maintain high level of quality
in the product.
high in this tool in the
organisation.
CONCLUSION
The above report can be concluded as the company is planning to enter the market with
large screen televisions they will require certain approaches to implement the changes in the
company to achieve the desired objectives. The company adopts six sigma approach that will
help in maintaining the quality of the new product and lean principles will be applied to control
and manage the delivery and cost of the production unit in the company. The project life cycle is
explained with the phases and a project plan is formulated according to it. Gantt char is presented
to explain the project plan in effective manner. The effectiveness of project life cycle is
mentioned on the basis of large and small projects.
13

14

REFERENCES
Books and Journals
Binder, J., 2016. Global project management: communication, collaboration and management
across borders. Routledge.Heldman, K., 2018. PMP: project management professional
exam study guide. John Wiley & Sons.
Fleming, Q. W. and Koppelman, J. M., 2016, December. Earned value project management.
Project Management Institute.
Glukhov, V. V., Ilin, I. V. and Levina, A. I., 2015, August. Project management team structure
for internet providing companies. In Conference on Smart Spaces (pp. 543-553).
Springer, Cham.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Lam, J. S. L. and Lai, K. H., 2015. Developing environmental sustainability by ANP-QFD
approach: the case of shipping operations. Journal of Cleaner Production. 105. pp.275-
284.
Mubin, S. and Mubin, G., 2016. Risk analysis for construction and operation of gas pipeline
projects in Pakistan. Pakistan Journal of Engineering and Applied Sciences.
Nenonen, S. and Vasara, J., 2013. Safety management in multiemployer worksites in the
manufacturing industry: opinions on co-operation and problems encountered.
International journal of occupational safety and ergonomics. 19(2). pp.168-183.
Rolstadås, A. and et. al, 2014. Understanding project success through analysis of project
management approach. International journal of managing projects in business. 7(4).
pp.638-660.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer,
Berlin, Heidelberg.
Online
Work breakdown structure. 2019. [Online]. Available through:
<http://www.maxwideman.com/papers/public_relations/wbs.htm>
15