Operation and Project Management

This report provides an overview of operation and project management principles and their implementation in the context of Tyrrells, a potato chip manufacturing company. It covers topics such as the selected organisation, operation versus operational management, critique and review of principles, continuous improvement plans, and the project life cycle. The report also offers recommendations for improving organisational functions and discusses a case study on Lucas Industries.

OPERATION AND
PROJECT
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Introduction to the selected organisation................................................................................1
Explanation for operation versus operational management...................................................1
Critique and review by implementing principles for operation management in case of
organisation............................................................................................................................2
Define the extent by which operation management of firm accomplishes their requirements3
Define continuous improvement aspect in terms of philosophy and mention about lean
principles................................................................................................................................4
Formulate continuous improvement plan after reviewing principles of operational
management............................................................................................................................5
Use continuous improvement principle, justify recommendations to improve organisational
functions.................................................................................................................................6
PART 2............................................................................................................................................6
Overview of case study mentioned in brief............................................................................6
Description regarding PLC and discussion of each stage......................................................7
After apply each stage of PLC for project involve business case, cost benefit analysis, project
plan and WBS.........................................................................................................................8
Critique and review effectiveness of PLC in project application by using appropriate concepts
and models............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Operation management is defined as execution of those business activities and functions which
are practiced so as to enhance business efficiency to the most possible level with reference to the
business. This is related to conversion of labour and material into finished goods in a
considerable manner. Project management is stated as the process under which execution,
initiation, closure and controlling takes place so as to attain desirable success. This report is
made as in context of Tyrrells which is a company engaged in manufacturing of potato chips.
This company was established in 2002 and expanded their business in a fast manner within
European and American market(Kerzner, 2017). This report is covering principles of operation
management and preparation of plan for continuous improvement as according to those
principles. PLC theory is also used along with required documentation so as attain project
success and in the last, project life cycle is analysed with the help of suitable theories and
approaches.
PART 1
Introduction to the selected organisation
Tyrrells is the company which is engaged in production of potato chips and they are
subsidiary company of KP snacks. The company were founded in 2002 and having their
headquarter in Leominster, Herefordshire. After some struggling period, they expanded their
business in Europe and US. The company is renowned for selling high quality potato chips and
they are covering domestic and global market. In the current scenario the company is planning to
enhance their business in Australian market by establishing manufacturing factories over there.
The major products of the company are tortillas, potato and other vegetables chips and popcorns.
Explanation for operation versus operational management
Operations are stated as the process under which various procedures, equipment and
individual collectively come together in order to add value to materials and to offer high quality
produced products. Operation will permit Tyrrells to attain their business goals in an appropriate
manner. Operation management is collection of management of overall production structure
which resultantly provide end product by using raw material and labour (Li and Ma, 2019).
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Operation management help the business in earning high profits and implementing efficient
production techniques.
Critique and review by implementing principles for operation management in case of
organisation
There are different principles of operation management which are essential to be examined in
order to implement proper principles so that to implement them with reference of organisation.
In the background of Tyrrells, their supply chain management system and logistics are the most
important operations for them (Grant, Trautrims and Wong, 2017). With the help of
implementing these principles of operation management the company may have positive impact
on their productivity and efficiency. Application of these operation management principles as in
background of Tyrrells are explained as below:
 Variance: In every process of the business this principle of operation management is
associated. This principle is acquired in case of reducing cost which is measured and
examined on timely basis. In supply chain management, various measures such as
activities to minimise cost which ensures usefulness of this principle. In context of
Tyrrells, the company may manage their logistics which is the main reason for increased
expenditure of the company. So in the process of preparing logistics, company will
recruit new candidates and their training and development cost will maximise their
overall expenses. So this principle is not proved as the most suitable for this venture. Organisation: This principle states that all the operations are required to be organised in
an appropriate manner so as to earn profit and gain business efficiency. Tyrrells can use
advanced and innovative production machineries in the process of managing their supply
chain and logistics. Further in the process of distribution and logistics, hybrid trucks can
be used by them (Kasemsap, 2017). This operational principle is having so many
difficulties such as financial difficulty due to which aspect proves not to be the most
desirable by Tyrrells.
 Change: In the process of appropriate supply chain and logistics management, this
principle is adapted by companies. Further in different theories, they states that on time
delivery is considered by customer and retailer as well. so as in background of Tyrrells,
the company have initiate their tie ups with huge retailer such as Sainsbury’s’ and Tesco
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so that to ensure that their products are reached at target place. On contrary this requires
high investment when tie ups are made with market leader which is not acting as
favourable aspect for Tyrrells. (Khamidullina and Puryaev, 2016)
 Fundamentals: This principle states that there some norms and basic fundamentals
which are followed by business in order to get appropriate standards in the business.
Tyrrells is using green clause with this reference which is the main reason for their long
term market sustainability. Hence application of this principle is beneficial for the
company.
Define the extent by which operation management of firm accomplishes their requirements
It is essential to analyse all the principle before their implementation by Tyrrells. When
principles are not meeting their requirements then there is no need to implement this principle by
the company. Analytical review of all the principles by Tyrrells is given below:
 In the first instance, Tyrrells is required to control their cost in their operational activities.
For this variance principle is used by the entity with the purpose of enhancing their
product line. As this principle is used to reduce cost but not to enhance cost efficiency in
product line so this principal is not advantageous for the company as this is not meeting
their requirements. (Cohen, 2016)
 The company is having requirement to bring consistency in their business operations. The
most inconsistency is created due to supply chain and logistics. So it can be said that
every business activity is having some complications which deemed to be the barrier on
the process of implementing operation management principle within organisation.
 The company is willing to implement desired techniques in their supply chain
management so as to manage that in an appropriate manner. The main focus of the
company is to manage their logistics so they applied change principle which is not
suitable for distribution process. So this principle is moderately meeting the business
requirements.
 On the other hand the major requirement of Tyrrells is safety and for this purpose they
apply principle of fundamentals. Under this principle, safety standards are implemented
for each and every employee in order to enhance their overall welfare and to manage
logistics of the company. This principle is able to meet the business requirements in an
efficient manner. (Srai and Lorentz, 2019)
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Define continuous improvement aspect in terms of philosophy and mention about lean principles
It is essential for Tyrrells so as to adapt continuous improvement planning so as to improvise
various aspects which are related to supply chain (Souza and Alves, 2018). A continuous
improvement plan is set of detailed plan which is prepared with a view to enhance level of
output. This is a critical method and helps the business in gaining consistency in their operations
at the time of functioning their operations. Lean methodology can be used to attain consistency.
This helps the business in minimising their operational wastages which brings efficiency in the
business. This will enhance overall productiveness of Tyrrells due to which profits can be
increased. Lean principle consists of five major sub principles which are explained as under:
Define the value Under this principle, value to product or services of the
company is given so that this can be recognised by customers.
Tyrrells may use this lean principle with the purpose to attract
huge customer in order to buy their products. (Singh and et.
al., 2018)
Mapping value stream This principle is helpful in mapping value stream of various
products so as to apply systematic approach to designing and
manufacturing process. With the help of this principle the
overall productiveness of the business can be improvised.
Creating flow This principle is emphasised on examining the manufacturing
process so as to decrease the problems under the processes.
Establishing a pull This principle is focused in JIT approach which helps the
business in finishing their business task within proper time
frame. This principle will assist Tyrrells in attaining their
goals within stipulated time and efficient manner.
Pursuing perfection This principle is focused to utilise high technology
advancement techniques so that to manufacture sustainable
and qualitative products by the company. This is helpful for
the company in earning high revenues and profits within a
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short period of time.
All these lean principles are emphasised on minimising expenses and business wastages.
This is very essential for Tyrrells to implement such continuous improvement plans so as to have
high operational productivity and to manage logistics and supply change management is a
considerable manner. (Rybkowski and et. al., 2016)
Formulate continuous improvement plan after reviewing principles of operational management
Continuous improvement plans are helpful for the business organisation so as to enhance
their manufacturing process of product offering, due to which all the employees can work in the
way they desired for. This is helpful for enhancing productiveness of the company due to which
organisational goals can be achieved in an efficient way. In order to review all the principles of
operation management, continuous plan is prepared as beneath:
BASIS CURRENTLY USED
METHODOLOGIES
PROPOSED
METHODOLOGIES FOR
USE
COST
The variance principle is used
by the businesses so as to
enhance their product line with
lowest cost. This is not used
for decreasing operational
cost. (Srinivas and Sreedharan,
2018)
Tyrrells may use variance
principle to minimise their
operational cost by
implementing automation in
their logistics process which
will help them to minimise
labour cost.
QUALITY Organisation principle is used
to manage quality under which
hybrid and innovative
machines and vehicles are
used due to this expenses has
increased for the company.
With the purpose to get high
quality it is essential for
Tyrrells to operate and
examine every single activity
of supply chain management.
With this reference the
company can utilise just in
time approach in order to
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perform management of
logistics.
DELIVERY
The principle of change was
not applied in an effective
manner. On the other hand tie
ups were performed with huge
retailer so as to get efficient
production. (Gonzalez and
Martins, 2016)
It is essential to implement
change in business entity rather
than focusing on tie ups so that
to enhance business processes.
On the other hand
transportation methods such as
railways can be used for
product distribution.
.
Use continuous improvement principle, justify recommendations to improve organisational
functions
Numerous suggestions are given to Tyrrells so as to maintain grip over continuous
improvement plans and to stay adhered to principles of operation management. These
suggestions are elaborated as under:
 The company can use automation and artificial intelligence so as to maintain quality of
various products. (Lewis, 2017)
 Just in time inventory model can be used by the company so as to convey those materials
which are demanded by customers. This will minimise their overall cost which were
earlier occurred due to excessive storage of stocks in warehouses.
PART 2
Overview of case study mentioned in brief
Lucas industry is one of the largest manufacturing concerns which are having their
business in motor and auto mobile industry. This is a UK based business entity and
situated in Birmingham, west midlands. They are having 92000 employee within their
company and in order to start a new project, they have hired 1250 employees for the
purpose of site work. Employees are having various functions to perform such as factory
and office functions. Employees are moving to local areas during lunch breaks due to this
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no catering services are given to the employees. This became the problem for the area and
which became overcrowded on the other hand due to problem in conveyance employee
absenteeism has increased. With this purpose, manager of the company will take action so
as to employees movement during lunch can be decreased and on the other hand manage
promoted the employees to adopt healthy lifestyle.
Project- The project undertaken by Lucas is to make arrangement for canteen in the
business premises so that to provide facilities to the employees in their lunch time and to render
healthy lifestyle to workers. On the other hand the company is offering flexible working hours to
their employees.
Description regarding PLC and discussion of each stage
A product life cycle is the combination of four stages which are required to be followed
by manager so as to meet business objectives of the company. This is a framework which is
helps the business activities and their performance in an efficient way. With the reference of
Lucas, the company is initiating their project so as to achieve their business goals and targets.
The stages are stated as below:
 Project initiation: This is the first stage in PLC, under which the main objectives which
are associated with project and company is stated. In this stage, various problems and
concerns are recognised. This is the primary stage of PLC under which the major
objective of the company which is to minimise employee movement and to provide
healthy lifestyle to them is recognised so that to put on proper action plan to solve this
problem. (Trach and Peleshchyshyn, 2016)
 Project planning: This is the second stage of PLC, under which planning with reference
to resources, cost and time is made. So it is important for employees to recognise this
stage is going to continue till the last phase of the project. It is not possible to manage the
project in an effective way in the absence of this stage. In order to attain objective of the
project, the manager of Lucas is preparing effective plan.
 Project execution: Under this stage plan for the project is implemented and their
evolution is examined in order to get extraordinary results in given time frame. This is an
important stage for the company as under this stage as the earlier made plans which are to
reduce absenteeism and to provide healthy lifestyle will be executed under this phase. In
order to execute this plan, the company is adopting numerous strategies such as
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recognising food preferences of employees and assembling funds for investments etc.
(Altunel, 2017)
 Project closure: This stage is the final stage in PLC, under which all the activities will
be finished and the objectives for those activities are attained in an appropriate manner.
In the context of Lucas, when the canteen facilities will be provided to employees then
this project will be closed which will provide them facility to eat during lunch hours
without facing any issue. (Domnina, Savoskina and Shekhova, 2016)
After apply each stage of PLC for project involve business case, cost benefit analysis, project
plan and WBS
Business case
A business case is a formal document which is organised by managers in order to involve
all the individuals who are working in the business can be recognised for their projects,
objectives and strategies in an effective manner (Elsye, Latief and Sagita, 2018). The business
case in reference of Lucas is explained as under:
Company overview Lucas industry is a UK based company which is situated at Birmingham
and operating their business in automobile sector. The company has
initiated their business in midlands with the help of factory labours and
operational staffs.
Vision and mission Vision and mission of the company is to become automobile industry
leader within Midlands.
Objective The major objective of business in to enhance lifestyle of their employees
by giving them flexible working hours and canteen facilities so that they
do not face any issue while their lunch hours.
Strategy The company is willing to build a canteen within factory premises in
order to achieve their organisational objectives.
Follow up Under this stage all the past activities are going to be examined so that to
analyse that the applied operations are implemented by the company in an
effective and advantageous manner or not.
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Project plan
Cost The cost which is needed for this project is estimated to be £17,000- £
22,000.
Communication It is not possible for the project manager of Lucas to manage all the
operational activities without establishing appropriate communication
between employees and management. For this context the project
manager is continuously interacting with their employees via telephonic
and face to face communication.
Scope The company is required to convey that food will be available in canteen
to the employees. This will help the company in their project as they are
desired to reduce absenteeism and overcrowding at local areas. So the
scope of the project is very high as this project is able to solve problems
of employee and management as well..
Cost benefit analysis-
Cost benefit analysis is the concept under which businesses recognise profits by adding
the amount of profit and subtracting it from total cost. With the help of this, the profits can be
determined which is emerged from various activities and functions. In the context of Lucas
industry, the profit can be determined by deducting the amount which is incurred during
construction of canteen from the money received by canteen operations (Pearce, 2016). This will
help the company to analyse cost benefit so that to recognise the appropriate financial position.
Work break down structure:
WBS is the structure which breaks down the activities of project into smaller sections so
that to help employees in attaining their tasks in significant manner. In this context, manager of
Lucas may divide activities of their project in the below manner so that to achieve their
objectives in an appropriate manner.
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Critique and review effectiveness of PLC in project application by using appropriate concepts
and models
With the assistance of waterfall model, the effectiveness of PLC can be reviewed. The
model is explained as under with the reference of Lucas:
 Requirement: Under this all the needed resources are examined by the manager in order
to perform the activities of the project in desirable manner. Within this stage the company
is preparing various objectives and strategies, as in the context of Lucas the company has
an objective to build a canteen within factory premises so for this they have used six
sigma approach in order to enhance efficiency of the project.
 Design: Within this stage, principles of inventory management are utilised so as to
minimise wastages. Various activities are planned as in the process of project
formulation. This stage is helpful for the company in achieving their objectives in
effective manner.
 Development: Under this stage, execution takes place for all the activities of the project.
Company is free to use TQM in order to executing their operations so that to enhance
quality and to maintain that quality throughout. On the other hand the company is using
democratic style of leadership so that to obtain opinions from their employees and create
harmony inside the business. (Kawagata and et. al., 2017)
 Testing and maintenance: Under this stage all the details are examined and
investigated. On the other side all the required alterations and changes are suggested so as
to achieve full efficiency within the project and overall business.
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CONCLUSION
From the above mentioned detailed report it can be deduced that operation management
principles are required to be managed so as to have high business productiveness and efficiency.
In the manufacturing these principles are implemented so as to improvise business operations of
the company. Further with the help of continuous improvement plan the business operations can
be enhanced in an effective manner. With the help of PLC, full efficiency can be attained within
every operation. Various stages of PLC confirms the effectiveness of business operations which
are executed by business so as to achieve organisational objective in desired manner.
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REFERENCES
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management: principles and practices for sustainable operations and management.
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