Importance of Operation Management

The provided report concludes that operation management is an essential attribute in achieving effective results and enhancing productivity. It emphasizes the need for organizations to continuously improve and remain up-to-date with changes. The document highlights key concepts, including situational leadership style and servant leadership style, which are crucial in gaining effective results. It also touches on principles and theories of operation management that help organizations find solutions to problems.

Operations and
Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Conduct a review and critique of the implementation of operations management principles
within an organisational context. ....................................................................................................3
TASK 2.......................................................................................................................................6
P2 Prepare a continuous improvement plan based on the review and critique of operations
management principles within an organisational context...........................................................6
TASK 3.......................................................................................................................................8
P3 Apply each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project e.g. a business case, project plan, work breakdown
structure.......................................................................................................................................8
TASK 4.....................................................................................................................................11
P4 Review and critique the effectiveness of the PLC in application to the chosen project using
appropriate theories, concepts and models................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Operation management is an ongoing organisational function that helps in produce
products and services by supply in proper manner. It majorly use in production operations,
manufacturing and IT services and also in accounting. Operation management is an
administration that helps in create maximum level of efficiency that is possible for an
organisation. It mainly focuses on converting raw materials and labour into goods and services.
This report is based on Bosch corporation which is world leading multinational engineering and
electronics company. In its products are fridges, freezers and gas in electric items and it aimed to
enlarge its market share in TV that is it want to launch 58 inches TV in innovative way to
complete its project line. This report is based on importance of operation and its principles that
are prove to be fruitful in while deal in market. When applying these principles into business it
faces some problems and to improve that issues organisation have to build continuous
improvement plan. To get desirable results while launch a new product PLC and its effectiveness
in business project should be evaluated properly.
TASK 1
P1 Conduct a review and critique of the implementation of operations management principles
within an organisational context.
Operation management is an important attribute in organisational success and successful
completion of work and activities. Project management is an multidisciplinary approach which
focus on planning, organising and delivering right products and services and deliver at right time
with optimization of resources (Galloway, Rowbotham and Azhashemi, 2012).
Principles of operation management:
In operation management there are some principles that helps in planning and deliver
right type of products and services, in which includes
Change:
That principle of operation management states that organisation have to adopt new
strategies and methodologies to solve problems, rather than stick to one solution. Finding new
solutions helps in bring stability in organisation (Binder, 2016). In case of Bosch corporation
when it access changing needs of consumers then it find the solution in expansion of its product

line and satisfy consumers needs by giving them 58 inches TV. So it find new methodology to
solve that problem.
Reality:
Principle of operation management states that Bosch focus on problems, rather than
techniques and tools. There is not any universal solution of any problem. It gives different
solution of their problem by launching new segment in which it launches 58 inches TV in new
market scenario.
Organisation:
In every industry each and every manufacturing unit connected with each other, in
perspective of Bosch it by predicting and should be consistent enough to get better results and
achieve higher outcomes.
Fundamentals:
That principle of operation management states that organisation's most success comes
from the strict adherence of rules and regulations and only 20% of success comes from applying
principles and new techniques. In case of Bosch it access current needs of consumers and aimed
to launch 58 inches TV in new market segment by applying strict rules and regulations to get
better results.
Accountability:
That principle state that managers are responsible for framing rules with metrics and
accordingly distribute roles and responsibilities to their subordinates. In case of Bosch it faces
the problem of accountability in which management not able to access skills set of employees
and in that scenario they wrongly distribute it. Resulting subordinates not give their best in
organisational success and get confused about their tasks and duties (Harrison and Lock, 2017).
Six sigma:
Six sigma is an systematic approach that helps in elimination of errors and mistakes in
existing production and services. It uses statical tools and methods in improve quality by
decrease in variability in production process, in manufacturing to engineering and purchasing of
goods and services (Jacobs, Chase and Lummus, 2014).
It uses different types of methods to improve work and deduction in errors, in which one of them
is DMAIC that stands for Define, Measure, Analyse and Improve, control of processes includes.

Lean six sigma is an improvement system of management that helps in improvement that brings
improvement in pipeline projects and give guidelines in selection of right type of project at right
time frame.
Define:
In that phrase of improvement in performance with help of lean and six sigma plays very
important role. In that improvement phrase leaders and higher authorities creates project charter
and build high level of processes by understanding needs of consumers in that process of
improvement. In case of Bosch corporation it by using that phrase access the potential needs of
consumers and by it aimed to launch 58 inches new TV to satisfy consumer's potential needs.
Measure:
In that process of improvement it focuses on measurement of life of the new project and
team and other members focus on collection of data and information. It determine the start point
of project and find out the root and base of the project. In case of Bosch it focus on majorly on
two tasks in which collection of relevant data and after that focus on starting point of launching
new project (Kerzner and Kerzner, 2017).
Analyse:
In that phrase of improvement in production process organisation find out the root cause
of the wastage in production process and access important insights. In case of Bosch it evaluating
right kind of information and data planned to expand their market share.
Improve:
In that improvement phrase they access on relevant data and information and also add
some additional information also. An additional information also gives by development
department that gives ideas about improvement in work processes by follow structured
improvement plan with innovative way (Morris, 2013).
Control:
That phrase of improvement states about how that organisation can sustain the newly
achievements. It is a phrase in which infrastructure also design by them and results should be
control in proper manner. In case of Bosch it control the results by evaluating each and every
aspect while launching a new TV set.
Lean production:

Lean production/ manufacturing is an systematic method that focus on minimization of
waste while manufacture goods without sacrificing productivity. It emphasised on cutting out
waste and give best quality products and services to their customer’s so that profitability should
be increase.
There are some principles of lean production/ manufacturing that are as follows:
Define value:
That principles of improvement in production process describe about value for the
customer and value refers to consumers desire to pay for that goods or products. It focus on find
out hidden and future needs of consumers. In case of Bosch corporation it by focusing their
needs and wants, it aimed to launch a new product that is 58 inches TV in new market.
Map the value system:
In that principles of lean production it focuses on goal should be originated and use as a
reference point in finding out contribution of each and every activity. In case of Bosch it by
evaluating needs of consumers it formulate needs of consumers and frame product accordingly.
Create flow:
In that process after eliminating wastage in production process by smooth functioning
without interruption in activities. In that scenario of Bosch corporation it by breaking down
steps, reinforcement and leveling workload are major factors that helps in improvement in
production process (Nicholas and Steyn, 2017).
Establish pull:
Inventory is one of the largest waste in production process, its main focus is to reduction
in inventory and work in process so that effective results should be accomplish. In case of Bosch
it eliminate wastage of inventory by proper evaluation of supply of products so they build
product accordingly (Sears and et. al ., 2015).
Pursue perfection:
To get perfection in production process there is need to follow all above steps or
processes in which identifying value and many others. It helps in think lean and continuous
improvement in production process. In case of Bosch it adopt that strategies to adopt continuous
improvement and getting better results.

TASK 2
P2 Prepare a continuous improvement plan based on the review and critique of operations
management principles within an organisational context.
source Principles Outcomes
Quality Lean manufacturing To enhance in quality of products and services
organisation have to adopt lean manufacturing
principle to increase production and efficiency.
Lean manufacturing increase quality of
products by reducing errors and mistakes from
it.
Cost Six sigma Six sigma is an important tool that helps in
reduction in cost by eliminating wastage and
increase in production. It is an effective tool
that give description about cost should be
minimize in context of Bosch.
Delivery Organisation To deliver right type of goods and services
organisation have to included many types of
steps and processes in to one frame to get
effective results. In that principle all resources
should be align in coherent way.
Safety Fundamentals To bring safety in context of organisation they
have to align fundamentals principle. That
principle state that organisation have to record
its important information in fair manner.
According to that principle 80% of success
come from maintaining records. So by keeping
data and information safety should be occurs in
organisation.

Effectiveness of the continuous improvement plan:
All theses factors should bring effectivness by using all these factors in frame and increase in
quality, decrease in cost with enhancement in safety. Continuous improvement plan is very
effective in context of Bosch because by using it organisation can enhance their productivity and
enlarge its market share. Bosch aimed to launch a new product that is TV which complete its
prduct line and increase its profit share. By using other operation management principles they
can get effective results to keep records of data and information and align all resources at time of
launch a new product in marketplace (Swink and et.al ., 2017).
TASK 3
P3 Apply each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project e.g. a business case, project plan, work
breakdown structure.
A new product progresses through various stages or sequences in which introduction,
growth, maturity and decline includes and these sequence known as product-life-cycle-model. It
denotes various changes in marketing conditions and directly and indirectly impacts on
marketing strategy and mix (Swink and et.al ., 2018). In case of Bosch it aimed to expand its
market share by launching a new product that is 58 inches TV in new market scape by
developing a life cycle of product and their implementation strategies. To successful
implementation of strategy there is need to draw attention towards the consumers means target
market and require investment to get desirable results. For successful implementation of their
product they have to build life cycle of product and their estimated revenue is 200 "€".
Product revenues and profits are plotted to show functions of life cycle that is shown in product
life cycle that are as follows:
Introduction stage:
In that stage of product cycle firm seeks to build awareness and develop a market product
and lot of impact on marketing mix are on each area of market such as product, price, place and
promotion and distribution of goods and services. In that stage of production they have to access
needs and wants of consumers and after evaluating their needs and wants according to it
organisation have to frame products and services. In case of Bosch it aimed to develop 58 inches
TV in market by accessing needs and wants of consumers and launch in market to complete their
product line. Potential research shows that it takes approximately 4 to 5 weeks in launch a new

product and services into the marketplace (Turner, 2014). In introduction stage of life-cycle
autocratic leadership style should be use by them due to in that style leaders control over staff
members and workers for suggestions and share power. In introduction stage workers are not
aware about potential requirements of start a business.
Growth stage:
In that stage of product life cycle organisation focus on building brand awareness and
create preferences for the customer’s so that sales can be increase and loyalty of consumers
should be develop in better manner. As the project is very important it takes approximately 2 to 3
weeks. In that stage democratic leadership should be use in which leaders can ask questions from
workers and staff members before making final decisions.
Maturity stage:
In maturity stage product have to compete with alternatives product and services and in
that scenario organisation have to drop their prices and focus on promotions of products (Turner,
2016). In case of Bosch it aimed to launch a new product with services in order to they have to
focus on promotions of their products in distinctive manner so that product remain always in
trend. It takes almost 5 days to get effective results and got desirable results according to that. In
maturity stage situational leadership adopt by organisation must adjust his style that fit with
followers accordingly that help in influence to their followers.
Decline stage:
In that stage of product life-cycle organisation have two options in which either maintain
product or rejuvenate by adding some new features and attributes. Or by reduce cost of products
in niche market. Another option is discontinue the product line. In case of Bosch when its
existing product line in phrase of decline it added some new features in existing product and
aimed to launch 58 inches new TV for market. In that stage servant leadership style should be
follow by them when product is in decline stage. In that leader shares authority, priortise needs
of team and its members and encourage in collective decisions. It takes almost 8 days.
Gantt chart:
Gantt chart is an type of bar chart that defines about the schedule of an project and its
shows dependency relationships between different activities and current schedule status of
project. It is used in project management that use by Bosch to plan and coordinate activities so
that desirable results should be accomplished.

Business case:
In business case consist of major attributes that are as follows:
Executive summary:
Bosch aimed to plan to launch a new product in that scenario they have to check
accessibility of the project. Bosch have to collect data and information about cost, resources and
other relevant information so that they can acquire proper knowledge about new product and its
success factor.
challenge or goal:
Bosch have the goal to expand its market share with complete their project line and
satisfy their existing and new consumer base.
Solution:
Bosch by evaluating needs and wants find out the solution of that problem and aimed to
launch a new product that is 58 inches TV to satisfy consumer future needs.
Cost:
Cost is an important factor that shows viabilty of a project. The overall cost of a project is
250 pond to complete the business plan.
Benefits:
Benefits that can be reap from that project is extention of business line and acquire loyal
consumers. It also increase profitability of business and its projects
Execution time:
Every business and its projects should take long time in execution in proper manner. It
takes almost 2 years in proper achievment in results.
Project plan:
In project plan consist of following factors:
Cost:
Cost is an important factor that checks feasibility of project by observing many factors
such as risk factor, resources and material price. The cost of project plan is 2,00,000 pond to
complete the whole project.
Scope:

In that scenario the scope of the project is to expadn its market share by increase its
profitability in better mannner. It complete their product line and satisfy their needs and wants in
proper way.
Resources:
In that scenario organisation have to adopt various materials and resources so that they
can give better products in desirable manner.
Risk:
When launch a new product in market, many types of risk occurs in organisational
context. Failure or not like by consumers that are major risk factor that consist in business
scenario.

Work break down structure:
In project management work break down consist of systems and engineering, it divides
work into smaller parts and helps in team organisation (Verzuh, 2015). In case of Bosch it
adopts WBS to get proper time duration of each and every work.

TASK 4
P4 Review and critique the effectiveness of the PLC in application to the chosen project using
appropriate theories, concepts and models.

PLC plays an major role in organisational growth and development and it gives effective
results in accomplishing Bosch goals and objectives, that can be explained with help of Waterfall
model that are as follows:
Requirement gathering and analysis:
In that phrase all possible requirement for the system should be developed and
documented in a specific documents. In case of Bosch according to the scenario it aimed to
develop 58 inches TV to satisfy their needs and demands (Weglarz, ed., 2012). To launch it
have to arrange all systems simultaneously and proper recording in separate document. In that
product life-cycle plays major role by gather important information and data regarding product in
particular stage.
System design:
In that phrase of Bosch to launch a best products for the market that satisfy their current
and future needs in proper way. For that organisation have to acquire software and hardware to
give best features and it define overall architectures design of TV. Product life cycle give
important information about taste and preferences of consumers and organisation according to it
attach proper software in it.
Implementation:
While frame the system of TV then firstly it design system accordingly into small units
Illustration 1: SDLC - Waterfall Model
(Source: SDLC – waterfall model 2019)

then it should be attach to one another. All information should be collected from the product life
cycle and integrate all units. In that each unit is developed and function in proper manner. So
while plan and implement all processes and units should be accessed (Binder, 2016).
Integration and testing:
Units that are developed in implementation phrase with the help of product into the
system by evaluating each and every unit. In product-life-cycle-model when product in any
phrase it gives proper knowledge by accessing reviews of consumers in Bosch. It helps in find
out problems in production process and necessary reforms that are needed.
Deployment of system:
In that phrase functional and non functional testing is done by accessing reviews with
help of product life-cycle marketers reform in features of TV and get products out of them. In
that scenario role of PLC enhances to give important information and insights.
Maintenance:
By evaluating proper results on each and every step of PLC, by evaluating various issues
and problems and patches are released to get proper results (Swink and et.al ., 2017). If product
get failure in that case marketers released better versions out of them by analyse PLC. These
changes is done in product by access customer environment.
Hence, it has been summarised that PLC play an very important role in generation of new
product and services to find out faults that exist in particular product. Product life cycle plays an
important role in organising and controlling all activities.
Large and small scale projects use different leadership styles to make successful their business
projects.
Large scale business projects use autocratic and democratic leadership style because scope and
size of project should be large in every aspect. In democratic leadership leaders can take inputs
from their workers and after that final decision accordingly. In autocratic leadership style leaders
have total control on work and activities of workers and employees to keep control over them. So
that they can efficiency in organisational goals and objectives.
In small business projects situational and servent leadership style should be use by them to gain
effective results. In situational leadership style leaders adopt style that help to influence their
subordinates and in servent leadership style they focus on needs and wants of consumers and
take suggetions of subordinates in decision making.

CONCLUSION
From the above report it has been concluded that operation management is an important
attribute in organising, planning and controlling work and activities resulting reduction in errors
and enhance in productivity. The main aim of operation management is to add features in
products and services so that they always satisfy consumer needs in proper way. In operation
management there are some principles and theories that how can an organisation get effective
results and satisfy by finding out solutions of problems. Continuous improvement helps in
remain always up to date with changes and provides accuracy.

REFERENCES
Books and journals
Binder, J., 2016. Global project management: communication, collaboration and management
across borders. Routledge.
Galloway, L., Rowbotham, F. and Azhashemi, M., 2012. Operations management in context.
Routledge.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management
(pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Morris, P.W., 2013. Reconstructing project management. 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.
Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
Process in operations management. International Journal of Production Economics.
138(2). pp.215-241.
Swink, M., and et.al ., 2017. Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
Swink, M., and et.al ., 2018. Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
Turner, J.R., 2014. Handbook of project-based management(Vol. 92). New York, NY: McGraw-
hill.
Turner, R., 2016. Gower handbook of project management. Routledge.

Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.
Weglarz, J. ed., 2012. Project scheduling: recent models, algorithms and applications (Vol. 14).
Springer Science & Business Media.
Online
SDLC – waterfall model. 2019. Available through:
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