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Sample on Operations and Project Management - Assignment (Doc)

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Operations and Project
Management

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Table of Contents
INTRODUCTION...........................................................................................................................1
SCENARIO 1...................................................................................................................................1
1) Introduction to organisation.....................................................................................................1
2) Explanation of operations vs operational management ..........................................................1
3) Implementation of operations management principles in M&S..............................................2
4) Operational management meet requirement of M&S..............................................................3
5. Continuous improvement and lean principles..........................................................................3
6. Prepare the continuous improvement plan...............................................................................6
7. Recommendation by using continuous improvement principles.............................................7
SCENARIO 2 ..................................................................................................................................8
1. Overview of the case study......................................................................................................8
2. Project Life Cycle and their stages..........................................................................................8
3. Application of the Project Life Cycle in the organisation.......................................................9
4. Evaluation of the Effectiveness of the Project Life Cycle.......................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
An organisation requires an effective operational management in order to attain goals and
objectives. Operations may vary in different organisation according to their nature and activities.
Beside this, effectiveness of operations needs to be maintained (Sterman and et.al., 2015). A
project is implemented to bring changes. There is also increase in efficiency of operations and
less use of resources. The continuous improvement brings efficiency in process.
This report will review how operational management principles are applied. Also, an
improvement plan to review operation management is described. Moreover, the PLC stage of
specific project is been explained. At last effectiveness of PLC with project is discussed along
with some theories and models.
SCENARIO 1
1) Introduction to organisation
M&S is a British retail firm which operate globally and provide variety of products and
services. They especially deal in clothing, home and food products. It is a public limited
company and is listed on LSE. M&S was founded in 1884 by Michael Marks and Thomas
Spencer. In November 2008, they started selling goods like Kellogg’s corn flakes. At present in
UK there are 959 stores of M&S and in that 615 sell only food products (Eyers and Naim,
2019). They operate in around 1463 locations worldwide and there are 80.787 employees
working in it. The total revenue generated in 2019 is £10,377 million. In May 2018 the
organisation announced that they will close 1000 stores till 2022. It is done to reduce competition
in fashion industry.
2) Explanation of operations vs operational management
Operations are the day to day activities which are performed by different departments.
They differ in each department. Its main purpose is to generate sales and profits. For example –
recording financial transactions, daily sales, etc. whereas operational management refers to
controlling and designing of process in business operations. In this it is ensured that efficiency of
operations is maintained. This is done by reducing the use of resources by redesigning overall
process. In this day to day operations and activities are maintained in production of goods. It also
relate department such as marketing, finance, etc.
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3) Implementation of operations management principles in M&S
In operational management there are different principles followed which enables in making
proper changes (10 principles of OM, 2019). The principles give an insight on how change has to
administered and controlled. They are described below :-
Reality – In this the focus is on problem rather than technique. So, M&S can emphasis on
solving problem.
Organisation- In this all operations are interrelated to each other. They have to be consistent so
that goals are attained (Nicholas and Steyn, 2017). In order to maintain consistency M&S can
implement it through integration of department.
Humility – It is essential to reduce cost per unit in production. It is because it helps in increasing
margin on sales. M&S save money by applying technique of six sigma.
Accountability – the manager should be accountable to make changes in process. It is done by
setting rules and regulations. The manager set procedure of how production process will run.
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Success – the changes are made while considering success of production. The company can
focus is on retaining customers by identifying their needs.
Change – It state that change must be made frequently in order to maintain long term efficiency.
They can bring change in order to maintain stability.
Causality- This principle is related to problem or issues. It state the cause of problem must be
eliminated. In company focus is on change in things.
Quality control – The principle enables to maintain quality while production of goods. For this
methods or procedure can be used as well. M&S should maintain their quality to satisfy
customers (Heldman, 2018).
Knowing competition- Here, the competitors must be identified. Their price, product, service,
etc. should be determined. M&S must know their competitors so that competitive advantage can
be gained.
Collaborating with customers- It is necessary to understand what customer buys and like in
product. This gives an insight on what changes can be made in products. The company needs to
identify customer needs to retain them.
4) Operational management meet requirement of M&S
The operational management of M&S emphasis of bringing changes in production to
reduce cost. This is done to earn more revenue on per unit. Another goal of managers is to
maintain quality as well. So, there is requirement of an effective operational management which
allows M&S to attain goals. In addition to it, by making changes in process it will be easy for
company to utilise resources efficiently. However, there is need to enhance quality so that
customer satisfaction can be gained (Sears and et.al., 2015).
5. Continuous improvement and lean principles
CONTINUOUS IMPROVEMENT
Continuous improvement is a process to make efforts to improve process. It is cycle in
which areas are identified, plan is developed and executed and then it is reviewed. The main
purpose of this process is to reduce cost and utilise resources in efficient way. It is also useful in
finding out errors and eliminating it. This brings in efficiency in process and fasten production.
Continuous improvement is also known as continual improvement. It refers to the progression of
growing or upgrading the products, services, model, technology, procedure or process by adding
more features or improvement in quality or changes in the structure. In business, the philosophy
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of continuous improvement is known as KAIZEN (Arriagada and et.al., 2016). It refers to all
those activities which continuously do improvement in the functions of the organization. There
are two types of approaches through which Kaizen philosophy can applied to the organization.
For the continuous improvement or application of Kaizen on organization, some steps are
used which are as follows -
Standardize – Company should have an idea to innovate the process and implement that process
in business activities.
Measure – Company must measure the performance which is done by the new process and
analysis how the performance is good or bad.
Compare – Company must ensure that the performance which is done through the new process
must meet with the objectives of the company (Swink and et.al., 2017).
Innovate – By measuring and comparing, company should focus on the finding of deviations. If
company don't find any kind of deviations, then company should focus on the improvement of
existing process. In case company find any kinds of deviations, the company should try to
remove that deviations and then focus on the improvement of existing process.
Standardize – Company should not stop here with their new process. Company should focus on
the improvement of their process or any aspects which required innovative.
Repeat – The steps adopted by company should not stop here, it should continue till the company
don't get dissolve.
PRINCIPLES OF THE CONTINUOUS IMPROVEMENT
There are various continuous improvement principles which must be followed by the
company. These principles are as follows -
Company should listen to the employees' ideas; encourage them to think out of box. If
any employee suggests something new, then give him appraise and involve him in the feasibility
of the ideas or checking of the ideas or converting the ideas into physical form etc.
In the continuous improvement process, every staffs, members, employees, management
teams and even CEO of the company should involve in the continuous improvement process and
give their 100%. They should involved in every aspects of the improvement and give their
feedback, reviews and ideas to each other in order to improve or make the process better.
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LEAN PRINCIPLES
Lean refers to the process of making process smaller, faster, and effortless and
effectiveness. It mainly focuses on the process of making it better and better. It is closely related
to the continuously improvement (Binder, 2016). It has following 5 principles which are as
follows -
VALUE
The first principle of lean is to identify and create value from the view of the customers.
By value, company will able to satisfy its customers' needs and wants. In this the importance of
value is understood from customer point of view.
VALUE STREAMS
The second principle of lean is to mapping the value stream in order to know that how a
business can achieve its value stream by conducting the activities and functions in order to attain
the goals. It involves the removal of wastage also. Here, customer value is used as a goal. Then,
activities are categorised on basis of value and non value. It ensures that customer get what they
actually want.
FLOW
The third principle of lean is to create flow in the organization by smooth series of
actions taking place from starting point to ending point. If this flow stop between anywhere that
means there is something either waste of waiting which decrements the value for customers. In
this all waste is eliminated to maintain smooth flow of activities. Through this, value is generated
(Fleming and Koppelman, 2016).
PULL
The forth principle of lean is to establish the pull approach in the process where lean is
applicable. This approach helps company to reduce the quantity of inventory and work in process
items in order to eliminate the waste. So that value can be maintained. The inventory is limited
and JIT approach is implemented. This enables in producing products when there is demand of
it.
PERFECTION
The fifth and last principle of lean is to seek perfection. It is considered to be one of the
most important principle for lean. It leads lean to be become an important part of the
organization. Here, perfection is maintained in continuous process. This enables in generating
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highest value to customer. The flow is maintained throughout process (5 lean principles every
engineer should know, 2016).
6. Prepare the continuous improvement plan
Marks and Spencer Company can prepare the continuous improvement plan by the help
of PDCA approach. It is an acronym of Plan-Do-Check-Act. PDCA approach of Marks and
Spencer are as follows -
CONTINUOUS IMPROVEMENT PLAN
PLAN M&S company should plan for the achievement of the desired result
and objectives. Here company first collects the data and analysis the
data so that they can get to know that their ideas are feasible or not.
In case if their ideas are feasible, they do make plan to convert the
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(Illustration 1: Lean Principles
Source: 5 lean principles every engineer should know, 2016)
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ideas into action by adopting various models, theories, processes and
activities.
DO Here company will adopt various models, theories, processes and
activities. This can include by hiring professionals, lean team and
opening new department. They also can do investment in that field in
which they plan to do something new (Harrison and Lock, 2017).
CHECK After conducting various actions and activities, next step company
will do check, review, monitor and analysis those plan and actions in
order to find about the area of improvement. So that the objectives
can be achieve without making any kind of error.
ACT (ADJUST) Here, in the process of check step, company will find out the area of
improvement and accordingly adopt the new activities in order to
reduce the negative impact and improve the plan.
7. Recommendation by using continuous improvement principles
Following recommendation are given to company for improving their operations in the
organisation -
Marks and Spencer can encourage their employees to think out of box and involve them
in every decision making process, activity process, meetings and planning process. It will make
them feel like they are very important part of the organisation which in turn increases their
attachment to the organization. It will help in reducing the employee turnover and making
working environment good. This will lead employees to do work with effectively and innovative
mind, which will improve the operations of the Marks and Spencer Company.
For the improvement in operations of the Marks and Spencer Company, every staffs from
the CEO to the lower employees of the organisation should work in a co-ordination way and do
communicate with each other properly in order to get ideas and thoughts for improving the
operations of the company. They should also always look upon the flow of improvement which
should not stop and for that they should focus on their activities. The continuous improvement in
operations can be made by small changes so that it can boost the productivity and creativity.
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M1 Critique implementation of OM in relation to six sigma and lean principles
Six sigma is a technique through which changes are done in operations management. Here,
statistical information is gathered and then defects are identified and eliminated. For M&S it will
be easy to enhance operational efficiency through it.
There are 5 lean principles which can be implemented as well in M&S. They are value,
value stream, flow, pull and perfection. By this changes can be made in operations. By this
continuous improvement can be done in operations.
M2 Analyse effectiveness of continuous improvement plan using theories
Here, PDCA method is used for continuous improvement. The benefit of using this is it
improves process in a systematic way. The solutions are applied at small level and then
implemented overall. Besides this, PDCS bring efficiency by eliminating waste of resources.
Moreover, it increases business productivity as well as customer satisfaction. Also, it identifies
errors and analyse them to improve.
SCENARIO 2
1. Overview of the case study
Leonardt Ltd. is a company who is specializes in finishing of metal components and
manufacturing the products. It is working under the Metallurgy industry. It is established by
Diedrich Leonardt. This company was established in year 1856 in West Midland, Birmingham,
England, United Kingdom (UK). This company serves its products at global market. Its products
consist of stationery products and Corner part products. It is considered to be one of those
company who sustain its business in this industry since its inception.
CASE STUDY – Due to lack of resources available in the company, there is conflict occur
between 2 departments of the company. This lead to bad working conditions and poor working
environment. This increase the work load on the overall employees and departments of the
organization. Due to conflicts, there is tension in the environment which impacts the working
style and health of the employees. This all lead to employee turnover rates enhances.
2. Project Life Cycle and their stages
MEANING OF PROJECT LIFE CYCLE
Project life cycle is an important concept for any business as it helps them to understand
the projects in a better way. This life cycle explains the stages of ways of achieving the
objectives behind the start of projects of the company.
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STAGES OF PROJECT LIFE CYCLE
There are four stages of product life cycle which are as follows -
Project Initiation
It is first stage of the project life cycle. In this stage, company launch its new project into
the business and do expense so much on the planning of the project. It is done for the purpose of
achieving some objective or solving the problem.
Project Planning
It is second stage of the project life cycle. In this stage, company makes and prepare the
plan for the implementation of the project. In this stage, company hires the team, assign them
tasks, budget and required resources (Project life cycle, 2017).
Project Execution
It is third stage of the project life cycle. In this stage, company takes permission to
implement the project from the higher authority of the organisation and do work on the
implementation of the project.
Project Closure
It is forth and last stage of the project life cycle. In this stage, company analysis the
execution process of the project and give feedback to the project management team of the
organisation in order to improve it and measure the success of project in term of attainment of
objectives.
3. Application of the Project Life Cycle in the organisation
Due to lack of coordination, increase in conflict and employee turnover, Leonardt Ltd.
Company's line manager plan to bring a new project into business in order to improve the health
of employees. This project is mainly focus on the team building which will help employees to
solve the conflicts, reduce the turnover and work pressure. For the application of the new project
into Leonardt Ltd. Company, line manager has adopted the project life cycle which are as
follows -
Project Initiation – Here Leonardt Ltd. Company will analysis the feasibility of the project, its
impact on business and how will this project help in building the team in the organisation.
Project Planning – Here Leonardt Ltd. Company will create the project plan, hire leaders,
create budget and collect resources in order to help the leader to build strong team in the
organisation (Kerzner, 2017).
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Project Execution - Leonardt Ltd. Company will along with leader break the whole project into
tasks and assign those tasks to the employees, create the opportunities for the communication
between team and its members.
Project Closure – Here Leonardt Ltd. Company analysis the project in term of achieving the
objectives regarding team building and improvement in health of the employees.
4. Evaluation of the Effectiveness of the Project Life Cycle
The Project is mainly focus on the team building. Thus, evaluation of the project is done
by the effectiveness of the team and its members. The effectiveness of the team can be measure
by the various ways which are as follows -
Company should look upon the employee attendance and analysis the turnover rate. If
there is decrease in turnover rate, it means that employees are enjoying with team and try to
create co-ordination between his and team member’s activities. It will tell that team effectiveness
is increase.
Company should look upon the employee satisfaction and performance. If employees are
satisfied, it will improve the performance efficiency and completion of performance on time.
This indicate that employees are trying to involve in team and create an understanding between
him and team members.
Overall the objective behind the team building is achieved by the company and there is
effectiveness in the project life cycle of the company (Heizer, Render and Munson, 2017).
M3. Rationale
PLC is rationale for the company because it helps company to resolve the issues facing
by the organisation. It helps in reducing the work pressure and improve the work efficiency. It
also helps in co-ordination and communication between various employees, teams, departments
and managers which lead to attainment of the organizational goals and objectives.
M4. Differentiate between small and large scale project in the context of PLC
There are so many differences between small and large scale projects which are such as -
Small scale projects will take more time in the process of implementation of the projects and in
the contrast, large scale projects will take fast time in the implementation and execution stage in
PLC.
Small scale projects will consume more costs and less risk but large scale projects will consume
fewer costs and high risks.
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CONCLUSION
From the above study, it has been summarized that operations is an important part of the
organisation as it linked with the core function of the business. Thus, company should always
look upon the effectiveness and improvement of the operations. For the improvement of the
operations, there is a continuous improvement plan which must be adopted by company and
review it time to time. Like a product, Company projects also have a life cycle which must be
take care by the company in order to prevent from the failure of the project. For the effectiveness
of the project life cycle, company should measure their objectives and try to match it with the
project life cycle in order to get to know about the deviations and methods for improvements.
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REFERENCES
Books and Journals
Arriagada, G., and et.al., 2016, August. Management aspects of Gemini's base facility operations
project. In Modeling, Systems Engineering, and Project Management for Astronomy
VI (Vol. 9911, p. 99111R). International Society for Optics and Photonics.
Binder, J., 2016. Global project management: communication, collaboration and management
across borders. Routledge.
Eyers, D. and Naim, M., 2019. Project Management for Effective Operations Management.
In Contemporary Operations and Logistics (pp. 11-27). Palgrave Macmillan, Cham.
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Project Management Institute.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Heizer, J., Render, B. and Munson, C., 2017. Operations management. Pearson Education
Limited.
Heldman, K., 2018. PMP: project management professional exam study guide. John Wiley &
Sons.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and
technology. Routledge.
Sears, S.K., and et.al., 2015. Construction project management. John Wiley & Sons.
Sterman, J. and et.al., 2015. System dynamics perspectives and modeling opportunities for
research in operations management. Journal of Operations Management. 39. p.40.
Swink, M., and et.al., 2017. Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
Online
10 principles of OM, 2019. [online] Available through : <
https://www.planettogether.com/blog/what-are-the-principles-of-operations-management
>
5 lean principles every engineer should know. 2016. [online]. Available through:
<https://www.asme.org/topics-resources/content/5-lean-principles-every-should-know>
5 principles of lean. 2015. [online] Available through : <https://theleanway.net/The-Five-
Principles-of-Lean>
Project life cycle. 2017. [online]. Available through: <https://blog.hubstaff.com/project-lifecycle-
management/>
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