Implementation of Operation Management Principles within British American Tobacco (BAT)

This report reviews and critiques the implementation of operation management principles within British American Tobacco (BAT) and proposes a continuous improvement plan based on the review. It also analyses the effectiveness of the plan using appropriate theories, concepts and models.

Assessment

Table of Contents
Introduction......................................................................................................................................1
Task One..........................................................................................................................................1
P1 Conduct a review and critique of the implementation of operation management principles
within BAT.............................................................................................................................1
M1 Review and critique the implementation of operation management in relation to Six
Sigma methodology and lean principles.................................................................................4
Task Two.........................................................................................................................................5
P2 Prepare a continuous improvements plan based on the review and critique of operation
management principles within BAT.......................................................................................5
M2 Analyse the effectiveness of a continuous improvement plan using appropriate theories,
concepts and models...............................................................................................................7
D1 Apply appropriate theories and models to justify strategies of a continuous improvement
plan for achieving improved efficiency..................................................................................8
Task three.........................................................................................................................................9
P3 Apply each stage of PLC (project life cycle) to a given project, producing necessary
supporting documentation for completing the project............................................................9
M3 Analyse the rationale for the project methodologies, tools and leadership within PLC for
the given project...................................................................................................................12
Task Four.......................................................................................................................................13
P4 Review and critique the effectiveness of the PLC in application to the chosen project using
appropriate theories, concept and models............................................................................13
M4 Critically analyse how the use of appropriate theories, concepts and models in the PLC
will differentiate between large and small scale projects.....................................................14
D2 Critically evaluate the PLC through a practical and theoretical exploration of its
effectiveness to draw valid conclusion and recommendations for improvements...............15

Conclusion.....................................................................................................................................16
References:.....................................................................................................................................17
Books and Journals...............................................................................................................17

Introduction
Operation management is the significant area of management within the business firms which is
concerned with administration of business practices with the aim of creating the highest level of
efficiency within an organisation. Operation management is primarily directed towards the
overseeing, designing and controlling the process of production along with re-designing the
operational activities of production for goods and services (Kamil, 2020). Prime purpose of
operation management is to ensure that operations of business are efficient through converting
raw materials, labour and resources into finished goods using as minimal as needed and effective
in meeting customer needs and wants while maximising the profit for the company. It is
primarily concerned with planning, organising and supervising the entire production or services
system which overlooks the activities of converting material, labour consumers and energy into
finished outputs. British American Tobacco plc (BAT) is one of the two leading tobacco
companies in UK, which manufactures and sells tobacco, cigarettes and other nicotine products.
It was founded in the year 1902 with a joint venture with American Tobacco Company,
headquartered at London, England, United Kingdom. BAT has its operations in more than 180
countries and is largest tobacco company in terms of sales across globe. The further mentioned
report covers the effectiveness of operations management principles, concept of continuous
improvement plan in BAT, application of project life cycle and application of PLC within
specified project (Holubcik and et. al., 2020).
Task One
P1 Conduct a review and critique of the implementation of operation management principles
within BAT
British American Tobacco is one of the largest tobacco manufacturer and seller in the
world dealing in tobacco, cigarettes and other nicotine products across more than 180 countries.
The Company was founded way back in 1902 with a joint venture of Imperial tobacco company
and US based American tobacco company, from there came out the name of BAT, selling wide
range of brands such as Dunhill, Kent, Lucky, Strike, Pall Mall, Rothmans, Vype and Vuse; and
Glu.
Operation management of BAT is concerned with designing, overseeing and controlling the
production process and redesigning the business operations with the aim of studying the use of
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raw materials and ensuring that minimal wastage takes place in the production of tobacco
products. Operation management of the company looks after several strategic issues along with
determining the size of manufacturing plants, methods for project management and
implementing the structure of information technology network (Brown and et. al., 2021). Apart
from this it also looks for operational issue including acquisition of material, quality control,
material handling, maintaining desired standards and policies, management of inventory levels
etc.
Difference between Operations and Operation management
Basis Operations Operation management
Definition It is concerned with
administration of the activities
related with the production of
goods and services.
Operation management is
related with the overall
management of business
operations related with the
production and delivery of
goods and services.
Objective The prime focus is on
producing best quality goods
and services in right quantity
and at right time (Sharma and
Mansour, 2021).
The main objective of the
operation management is to
make effective utilisation of
resources as possible and
meeting customer
expectations.
Decision making Decisions are made only with
regards to the production and
restricted to this department
only.
Whereas, operation
management makes decision
for the regular business
activities within entire
organisation.
Principles of Operation Management
Operation management within BAT have a responsibility related with dealing in forecasting,
overseeing and strategizing the daily process of business. Managers must ensure that all the
components ranging from strategic planning stage, implementation stage, manufacturing
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supervision and final evaluation of the outcome for the innovations must be managed properly to
make company profitable and competitive. The operation management takes into account best
practices with the aim of maximising the level of efficiency and effectiveness with regards to
company’s resources such as machinery technology, materials and labour to derive maximum
value for customer with high quality of goods and generate profit for the business (Bodaghi and
et. al., 2020). Below mentioned are the basic principles of operation management which helps
British American Tobacco plc to make business efficient and productive.
 Reality: One of the basic principles of operation management to attain its objective is to
focus on the problem rather than tools and techniques because no tools will be able to
provide universal solutions to the problems encountered.
 Organisation: Operations under the manufacturing facility is inter-connected with each
other. All the essential elements within the process of manufacturing must be predictable
and consistent or else the operation will fail to meet the outcome for desired profit for
British American Tobacco.
 Humility: Managers at BAT must work like an ordinary people as a learner and can also
makes mistakes, because no-one wants to work with a feeling of know-it-all. Trail and
errors are extensively expensive; therefore managers must understand their limits
resulting in saving money, time and making production more effective (Barrado and et.
al., 2020).
 Success: Managers at British American Tobacco Company must identify the success
parameters and communicate effectively with the employees making them clear in
achieving targets and objectives of an organisation. While defining success within
production, interest of customer should be keep at priority.
 Accountability: As per this principle, managers at British American Tobacco must
determine the rules and metrics, clear defined responsibilities for the subordinates and
also checking frequently to ensure that objectives are achieved. Causality: In order to get rid of themselves for the problems forever, it is essential for
the managers to identify the root cause and eradicate it so that it won’t get worse.
Evidently, sometimes even with the best efforts, problem do arise, so this principle helps
in dealing with unforeseen causalities.
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 Fundamentals: Managers in BAT must be aware of how to comply with the all basic
fundamental which is regarded as key success to production process. Pareto rule of
efficiency in operation management (80/20 rule) is applicable as it suggests the
maintaining current process will lead to 80 % of success and rest comes with the use of
new techniques and tools (Mor and et. al., 2020). Variance: Variance in the demand can be troublesome for BAT; however variance of
process and techniques should be encouraged as they are regarded as the great source of
creativity and a better response to other source of variation. Managed Passion: Employees with high morale, commitment, dedication and passion
are the valuable assets of company as they drive company towards success and growth.
Mangers at BAT must be motivated and passionate to be able instil the same passion in
their employees. Change: Last principle of operation management which will bring efficiency and
effectiveness within organisation is ability to embrace changes happily and willingly.
Open to these changes help company in being one step ahead from competition and
maintain stable operations for a longer duration (Minashkina and Happonen, 2020).
M1 Review and critique the implementation of operation management in relation to Six Sigma
methodology and lean principles.
Six Sigma is defined as the set of management tools and techniques designed for
businesses to enhance the capabilities of their business process by reducing the likelihood of
defects or errors. Six Sigma makes use of data driven approach to limit defects in the business
process with the help of statistical methodology. Use of sig sigma by BAT help them in
improving level of performance and decline in the variations that in turn contribute towards
reduction in errors and enhancing the quality of goods and services, employee morale and profits
too. Sig sigma focus on cycle time improvements while at the same time mitigating the
manufacturing defects to a level of no more than 3.4 occurrences per million of goods and
services, it’s method for working faster but with minimum defects (Guo, Grushka-Cockayne and
De Reyck, 2020). For successful implementation of Six sigma needs extensive training and
developments for managers and executives, and is costly process to inherit. Additionally, this
process does not work unless entire organisation has bought in and supported from executives.
4

Where Six Sigma is focused towards mitigating process variations and improving process
control, lean Six Sigma is primarily aimed at reducing waste in British American Tobacco
Company and enhancing customer experience by eliminating eight kinds of wastage (muda),
defects, over production, waiting, non-utilized talent, inventory, motion, extra-processing and
transportation. It is a data driven philosophy of improvement which prioritise defect prevention
over defect detection and eliminating activities which don’t add value to process. By having lean
six sigma principles, managers at BAT change the mindset of employees and other managers
which focus on process optimization for success, growth and continuous improvements. In
today’s world it is essential to have these principles which are focus on customer needs and what
they value; identify the problem, and measure the value stream; remove variations and
bottleneck; effective communication and training to employees; and seek ongoing
improvements.
Task Two
P2 Prepare a continuous improvements plan based on the review and critique of operation
management principles within BAT
Basis Current Methodology Proposed Methodology
Cost Currently, British American
Tobacco makes use of
principles of variance for
minimise the cost and working
efficiently (Lee and et. al.,
2020). As per this principle
company consider the current
demand and prices for the
availability of raw material
and decides for the prices of
all the products.
In order to mitigate the cost of
production company may
make use of lean principles
which is aimed at maximising
the production process,
reducing wastage, time and
efforts, and in turn focus on
quality of products and
services (Khan and et. al.,
2020).
Quality In order to deliver desired
quality presently, BTA makes
use of principle of success. By
In order to enhance the
quality, BTA may integrate
total quality management
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applying this principle at
production process managers
communicates effectively with
the employees making them
clear in working towards
common goals by expressing
clearly level of expectations
from them (Stephens and et.
al., 2020).
within organisation where
each and every department
and concerned personnel are
contributing equally towards
maintaining desired quality
and increasing customer
satisfaction.
Delivery Implementing the principle of
managed passion BAT makes
fastest and timely delivery to
the customer and compliance
with their desired standards
and commitment towards
delivering value to customers.
For better and quick deliver
services it is imperative for the
company to analyse and
identify the current and
potential trends in the market
with regards to the delivery
methods and how customers
wants to interact with
business. For instance, people
are preferring to buy through
social media ads rather than
strolling aimlessly over
physical stores (Astill and et.
al., 2020).
Safety With the help of causality
principle managers at BTA
finds out the root cause of the
problem and takes necessary
steps proactively in order to
mitigate the risk of worsening
the situation and ensuring the
proper safety and security of
One of the most efficient and
effective methodology in
increasing the safety at
workplace is Six Sigma. As
this framework along with
ways to mitigate the wastage
from production process, also
suggests the best ways to do
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employees. the work along with desired
safety and health standards
which helps the workers in
working with due diligence
and proper handling of tools
and machinery, thus avoiding
the chance of threat to life
(Shibin and et. al., 2020).
M2 Analyse the effectiveness of a continuous improvement plan using appropriate theories,
concepts and models.
With the help of continuous improvement plan business firms strives at improving and finding
out the best way to do the things and this intense desire and mindset of continuous improvement
leads to the evolution of product, services, process, workflows and other aspects of business
through which organisations like British American Tobacco becomes more efficient and optimal
over a period of time. In order to measure the effectiveness of continuous improvement plan
there are several models which includes the mindset and approach that keeps the employees
engaged in understanding the customer, their processes and making efforts towards sustainable
change for the better. Six sigma makes use of two distinct methodologies such as DMAIC
(design, measure, analyse, improve and control) and DFSS (design for six sigma) for making
improvements into the existing business plan and create a new one respectively (Ochara, 2020).
The prime objective of six sigma is to minimise the errors, variations and defects from the
established production process with the desire of maximising the potential and quality of outputs
from production process. As per the rule of six sigma the production process is at its maximum
level of efficiency if it has as low as 3.4 defects in one million of output or with a success rate of
99.99966%.
Another model for measuring the effectiveness of continuous improvement plan is Total quality
management which is a customer focused model aimed at improving quality of products within
entire organisation at each level. It is most commonly used model which makes use of employee
engagement, fact and data based decision making, systematic thinking and use of other principles
in making decision and improvement in the business activities of British American Tobacco.
Furthermore, lean principles also lay emphasis over removing all the non value added activities
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and wastages from the production process and aimed at increasing the quality of products,
minimising the efforts and time of production with minimum wastage (Hwang and Kim, 2020).
D1 Apply appropriate theories and models to justify strategies of a continuous improvement plan
for achieving improved efficiency
The deeming cycle consists of four stages such as plan, do, check, and act, is a systematic
process which is aimed primarily at improving the services or products through colleting
valuable learning and knowledge. The PDCA cycle starts with the identification of problem in
the business firm and creates hypotheses for causes and solution n for the problem which is
further followed by implementing an ideal solution after checking its viability and reliability.
Further, implemented solution is evaluated on a regular basis to determine whether the applied
solution meets the desired criteria and provides optimum solution to the problem. While
evaluating the performance it is also necessary to check whether the defined goals are met or not
and takes necessary measures for further improvement. And in last the process ends up with the
act stage where if desired outcomes are not generated then it is necessary for project manager to
go back at initial stage and start the process again (Ketokivi, Bromiley and Awaysheh, 2021).
Another significant model in continuous improvement plan is Six Sigma which is most
recognised version of lean in business, primarily aimed at eliminating variability and improving
predictability within an organisation. This model is a disciplined and data driven approach with
the prime objective of continuous improvement in the business firm and mitigating the defects
rates in the production process through maximising the efficiency and efficient utilisation of
resources. Furthermore, another significant model for continuous improvement plan is Kaizen
which literally means “change for better”. Unlike Six Sigma, this framework is less structured
and rigid which helps business firms in enhancing both work flow and its processes. Rather than
being a model it is a different mindset of doing things in different way which allows
organisations to eliminate wastage, improving quality of work, boosting employee’s morale and
inspiring all the employees to actively participate in the betterment of daily work life and
activities (Ochieng and Ominde, 2020).
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Task three
P3 Apply each stage of PLC (project life cycle) to a given project, producing necessary
supporting documentation for completing the project
Unilever Plc is an international consumer goods company headquartered at London,
England. The company sells products items including food, ice creams, wellbeing vitamins,
mineral and supplements etc. The company has its office and factors at an extensive location in
Midlands where almost 1250 employees are employed. As there is no onsite catering, the project
manager is assigned to avoid un-necessary congestion in local area during working hours and
providing healthy lifestyle to workers as a CRS initiative. In order to make project successful,
every project passes through the project life cycle stages which consists of initiation, planning,
execution, and closure (Avittathur and Ghosh, 2020). Below mentioned are the four stages of
project life cycle through which project passes through:
Phase 1, Project Initiation: At this stage an abstract idea is developed into a tangible and
meaningful goal. In order to avoid the problem of congestion issue in the local area due to the
lunch break hours and proving an healthy lifestyle to the staff member of Unilever, the project
manager has developed an business case defined the project needs to be undertaken at broad
level. First of all it is imperative to build an in-house canteen so that workers of a concerned
organisation are not moving out of the buildings and helping in maintaining the decorum of the
entire premises. By doing this, employees and workers will gather in a confined place where they
can enjoy their mid-day meal, can talk with colleagues and interact with other personnel without
creating a mess. With the help of developing a project charter, an important document which
consists of minutia details like project constraints, goals, appointment of the project manager,
budget and expected time (Cappanera, Requejo and Scutellà, 2020). Furthermore, after defining
the project goals and scope of the project it is also imperative to determine key stakeholders who
will be involved in this project. Apart from it is also significant to create a stakeholders register
which will define key roles and responsibilities of stakeholders, designation, communication and
influence.
Project charter
Business case: The project plan is to build and develop an onsite catering within the premise in
order to avoid congestion in the local areas during lunch hours and limit the movement of
workers un-necessarily from one building to another. This will help in creating and maintaining
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discipline in the premises and proper management of worker and employees at break hours.
Goals: The prime objective for building the canteen and onsite catering is to reduce un-necessary
movement of workers during lunch hours and refrain them from consuming unhealthy and
unhygienic food from outside. Keeping in mind safety of employees amidst pandemic, the
project is to avoid mass gathering and maintains proper discipline at workplace (Al Bazi, Palade
and Abbas, 2021).
Project Constraints: A project constraints can be non-availability adequate space for the creation
of a canteen building, procuring raw materials, labour for preparing meals, low adaptability of
employees as workforce needs to be completely free and independent during lunch hours.
Appointment of project managers: For the successful implementation of the project it is
necessary to appoint at least two project managers with necessary skills and competencies.
Expected timeline: The deadline for the project completion is maximum six months.
Budget: Estimated budget for the completion of the project is determined to be not more than
£100,000 including infrastructure, machinery, tables, chairs, hiring of personnel, training and
development, licence and tax.
Stakeholders register: They people who are involved in this project are, managers of operations,
finance department, change management and personnel from marketing and research department
to know about the feasibility of the project.
Phase 2, Project Planning: The next phase in the project management is the planning phase
where actual project solution is further developed with due diligence and takes necessary steps to
meet the project’s objectives as per the planned (Prakash and et. al., 2020). This stage outlines
the road map for the project to be carried out and large project is breakdown into smaller tasks,
building an effective team with clearly defined roles and responsibilities to carry out work, and
preparing of a schedule for the timely completion of the project assignments. Creating smaller
goals for developing an onsite catering ensures that goals are attainable in a possible limited time
frame. These goals should be based on SMART criteria and CLEAR criteria which makes in
easy to move step ahead towards the completion of project. Below mentioned are the further
steps taken by project manager at British American Tobacco Company to execute this stage:
 Developing a project plan: There are 3 phases of the project which is construction of
building, establishment of necessary tools and machinery and successful execution of the
project for the use of employees. The determined timeline for the project is not more than
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6 months and in order to set up an onsite catering it is necessary to conduct an extensive
research and determine the feasibility of an idea (Rissman and et. al., 2020).
 Workflow diagrams: By creating work flow diagrams employees becomes aware of their
job duties and responsibilities in order to execute the work towards common goal and
unified project. A detailed project time-line is crucial at this stage as managers
communicate effectively with the stakeholders to get the work done on time.
 Estimating budget: It is necessary at planning stage to determine the actual need of
financial resources so that all the activities are executed within budget and things go in a
right direction as planned. The overall estimation of the project is nearly about £100,000
including bricks and mortar, machinery and accessories.
 Anticipation of risks: Mitigation of risk is another factor which plays a major role in
project life cycle through extrapolating past data to reveal and indentify potential risks
and develop a strategy to mitigate those risks.
Phase 3, Project execution: This is the stage where development of canteen inside the campus is
stating taking shape and abstract idea is taking its physical form (Shou and et. al., 2020). The
role of project manager is to establish clear defined roles and responsibilities so that workers
work efficiently and effectively as per the planned goals and objectives. Another role of project
manager is to effectively monitor the performance level of each employee and provides
necessary training if any discrepancies found. It is imperative to build effective collaborative
between the stakeholders for the success of a project and creates positive working culture that
boost up employee morale and their level of satisfaction. Apart from it is also essential to
manage that activities are going as per the planned budget and resources are used in their best
possible way.
Phase 4, Closure: Once the team of the project concluded the work on project, project enters
into the closure stage and onsite catering is developed in the Unilever Company. The role of
project manager does not end here; there are several things needs to be taken care by project
manager such as:
 Analyse the performance of the project by checking whether the predefined goals are met
or not with a limited time frame and within budget (Altay and Narayanan, 2020). Apart
from this it also essential to determine whether the executed projects is capable of solving
the business problem.
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 Documenting project closure means that it is ensured by project manager that all the
aspects of the projects are completed with no loose ends remaining.
M3 Analyse the rationale for the project methodologies, tools and leadership within PLC for the
given project
Project methodologies in a project life cycle helps in providing the adequate and clear project
road map to be followed which encompasses series of steps required to make a project successful
and brings abstract ideas into reality. These methodologies provide clear and defined governance
structure, guidelines, test activities, processes and deliverables. One of the most essential
methodologies used by the project manager in the above project is Kanban, which is the best
method and helps Unilever in planning and organising project activities visually by prioritizing
tasks on boards. It is one of the best, simple and effective project management framework which
helps project manager in manager their documents, tasks and files in a single interface (Damali
and et. al., 2021). A Kanban board is used significantly in business firms to work effortlessly
with clearly defined roles and responsibilities. Kanban board displays the project workflow in
which columns shows steps in progress along with relevant tasks involved. The Kanban board
consists of three section such as., Yet to be started (work not started and to do); work in progress
(doing currently); and completed work (done). Once the workers are delegated with the tasks,
these cards on Kanban boards are shifted as per the work status which helps in minimising the
wastage of resources, makes changes in the project and clearly measurement of work progress.
Leadership styles used in project life cycle is authoritative leadership styles as concerned
stake holders are asked to do the work as per the instructions of a project manager. With this
style of leadership work is done as per the designed standards and practices along with clear
guidance and direction by the experienced project manager (Jabbour and et. al., 2020).
Furthermore, this style of leadership does not seek any suggestions from the stakeholders which
may leads to the dissatisfaction among stakeholders and may lead to poor performance of a
project execution.
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Task Four
P4 Review and critique the effectiveness of the PLC in application to the chosen project using
appropriate theories, concept and models.
In order to measure the effectiveness of project life cycle the best and effective model used by
the concerned company is Waterfall Model or predictive life cycle model or most commonly
known as fully plan driven life cycle model. Project life cycle is the best way to view the entirety
of a specified project which consists of steps in order to complete the project that helps in
maintaining focus, momentum, and helps in developing high level stages of completion
(Puthiyaprambath, 2021). The project manager applies this model to execute and maintain the
effectiveness of entirely project cycle.
 Requirements: At this stage, all the potential requirements, deadlines and guidelines for
the projects are analyzed and placed into a functional specification by the manager of
Unilever. Necessary resources are collected in order to execute and completion of the
project. With the help of Six Sigma approach Unilever can makes the project life cycle
more efficient and effective through decreasing the wastage of resources and low defects
rate at the production process. At this stage proper defining and planning of the project is
undertaken without mentioning specific process.
 System design: The well indentified and highlighting the requirement specifications at
the initial stage are studied in this stage and a more efficient system design is prepared
which helps in specifying and modifying the hardware and software requirements for the
project and determine overall system architecture. With the help of lean manufacturing
process, Unilever may makes best use of their resources to maximum potentiality, better
ways to do the things, less efforts within less span of time. This method is effective in
adapting easily to the changes taking place in the market (Zhou and Wen, 2020). Implementation: At this stage, inputs from the system designs are implemented through
developing the small programmes called units which are further integrated into next
phase and step. While implementing and executing the project, it is necessary for
Unilever to opt for a TQM into entire business process so that desired quality standards
and practices are maintained while executing the project. With the effective use of
delegative style of leadership, project managers could ensure the high productivity and
quality of products in the production process.
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 Verification: At this stage all the developed software and units designs are checked for
its viability and feasibility and to verify that the system under project life cycle is built as
per the requirements of clients and stakeholders (Akkucuk, 2020). Maintenance: It is the final stage of the water fall model where project manager ensures
that system is ready for the use in the project life cycle and be ready to make necessary
adjustments into the project as per the further requirements and requests of the clients.
M4 Critically analyse how the use of appropriate theories, concepts and models in the PLC will
differentiate between large and small scale projects.
Methodologies Small Scale projects Large Scale Projects
Total Quality Management Total quality management is
the small scale projects are
concentrated more towards on
quality and price to retain and
attract potential customers and
strive to view business from
the perspective of customer
(Chod and et. al., 2020).
In order to maintain consistent
quality and high level of
performance, business firms
like Unilever Company makes
use of TQM in order to
integrate all the concerned
department and employees
within an organisation to work
collectively towards delivering
high quality and reliable
products.
Six Sigma Implementation of Six sigma
in small scale projects bring
efficiency and productivity
among workers as there is
more employee engagement
and better teamwork than
before.
With the successful
implementation of this
methodology on large scale
projects helps the business
firms in reducing wastage,
mitigating errors, increasing
customer satisfaction and
improving overall process
within a large organisation
(Kamil, 2020).
Lean principles Under small scale project, lean Lean principles are most
14

principles are primarily aimed
at optimising the best use of
people working in an
organisation so that they can
work to their maximum
potential and work with cent
percent productivity and
efficiency (Brown and et. al.,
2021).
effective in the large scale
projects, applied by the
business firms like Unilever,
primarily for the reduction of
wastage, better utilisation of
resources, reduction of cost
and time. Furthermore these
principles are applied for
improving the quality of
products.
D2 Critically evaluate the PLC through a practical and theoretical exploration of its effectiveness
to draw valid conclusion and recommendations for improvements
Project life cycle passes through the several stages before launching a project as these stages
determines the success and overall objectives of the projects and project life cycle. The project
life cycle starts with the initiating phase where project manager needs to determine what needs to
be done in order to provide a solution to the problem (Holubcik and et. al., 2020). The prime
objective of this stage is to conduct a loose brief of a project and define it in term of what needs
to be done and ways to achieve them successfully. During this planning stage numerous
documents are prepared such as developing a business case, identification of stakeholders
involved in the project, determination of a budget, projects constraints, determining the timeline
and identifying the necessary resources for the implementation. Furthermore, the next step is the
planning stage where project manager indentifies and set goals on SMART and CLEAR criteria
which make the business firm in attaining these goals in a timely manner. By outlining workflow
diagrams and clearly defined roles and responsibilities, project manager aims at directing the
efforts of employees towards the common goals. Preparation of budget, mitigation of risks and
developing a project plan helps the business firms in aligning necessary resources for the
successful completion of project and meeting the pre-defined objectives (Sharma and Mansour,
2021).
15

Conclusion
From the above mentioned report it has been concluded that project and operation
management are two distinct terms where one is concerned with production process of an
organisation and another one is related with bringing efficiency and effectiveness in the entire
organisation. Operation management is a broad and wider aspect of business which encompasses
several activities aimed at improving the overall business performance, improving the quality of
goods and services and maximising customer satisfaction through delivering additional value
with the application of continuous improvements models and theories. Furthermore, it has also
been revealed that project life cycle stages makes it easier for the project manager to plan and
execute projects within organisation and helps in attaining business objectives within specified
time frame.
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