Project Management and Process Improvement

This assignment delves into the world of project management, examining key concepts, methodologies, and tools. It analyzes the DMAIC (Define, Measure, Analyze, Improve, Control) framework for process improvement within a project context. Furthermore, it explores Lean principles and their relevance to effective project execution. The document utilizes illustrative examples to clarify these concepts and demonstrate their practical application.

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
................................................................................................................................................3
TASK 2............................................................................................................................................6
P2 Prepare a continuous improvement plan based on the review and critique of operations
management principles...........................................................................................................6
TASK 3............................................................................................................................................7
P3 Apply each stage of the PLC along with providing necessary supporting documentation for
the project...............................................................................................................................7
TASK 4..........................................................................................................................................12
P4 Review and critique the effectiveness of the PLC in application to the chosen project 12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operational management is an area of management which is mainly concerned with
developing and managing the production process of goods & services. This project has been
undertaken on AEG, which is the leading United Kingdom based company which is engaged in
consumer electrical products that consists of home appliances, fridges & freezer, gas & electric
cookers. In addition to this, they are looking for new television product of size 58 inches to use
in home, Commercial, parks and garden. Apart from this, report will be carry forward on
reviewing and critical analysis of implementation of operational management principles along
with telling the suitability for new product and also its relevancy for the market. Also, this report
will contain continuous plan of improvement based on review and critique of operation
management principle along with clear analysis of each and every stage of the PLC process for
supporting of project completion. Lastly, project will consists of effectiveness of PLC for an
entire project using relevant theories and concepts.
TASK 1
P1. Conduct a review and critique of the implementation of operations management principles
Operational management is an area of management which is concerned with designing
and controlling the process of production and redesigning business operation in the production of
goods or services. It has been noticed that operation management has played a necessary role
development of new product along with designing the scope for establishing the higher customer
experience (Fleming, 2013). Operational process has made service sector and manufacturing
industry works more productive and effective with best quality of products or services. Also,
operation management has profit based relationship with other function of business such as
marketing, finance, human resource, R&D etc. In order to make operational functions effective,
principles connected to its management are required to be analysed and make clearly
understandable for AEG company to develop their new product such as 58 inch television. These
principles will help this organisation into their production process of new product, which is
Television. Previously, company used to deal in home appliances such as washing machine,
fridges and freezers, gas and electric cookers etc. The critical analysis of operational principles
are as follows:

Six sigma: This is a measurement based strategy for process improvement. It is aimed at
improving process and customer's satisfaction. The major concept behind this approach is to
reduce the variation in the processes. Also, continuous process improvement with less defects is
the goal of this method. DMAIC is the data driven six sigma methodology for improving existing
products and process (Vartiainen, 2016). Whereas, this methodology has been divided into five
components explained in given diagram:
It is critically analysed that Six sigma is used to improve existing services along with
initiating strategies for new product development. The review of these principles says that it will
be most efficient tool that would help AEG to improve existing products as well as their new
product development of television (Artto, 2012). The negative impact that six sigma is mainly
focuses on one factor of any product that it its quality and delivery, irrespective of cost and
damage. When critique over this, this tool has been proven as most reflective and centric over
adding new product to existing portfolio of the AEG. Lastly, this tool will be implemented to
Illustration 1: Understanding of DMAIC

research & development Dept. of AEG company to generate new idea of product and strategies
to implement and structure it. Six sigma is relevant for launching of this 58 inch television,
which focus over enhancing the quality of the product and measurement to ensure its safety
checks and regulation. After noticing the product failure of companies who are already engaged
in television manufacturing, this six sigma method will be applicable here to enables AEG an
actual improvement into their process to manufactures their television. Also, this will help AEG
to make their existing products more improved and productive.
Lean principle: This method has been initiating for reduction of wastage of material
from the production process. Unless a process has gone through lean multiple times, it contains
some elements of waste. If implementation of this process is done correctly, lean would create
huge improvement into the efficiency, cycle time, productivity, material costs and scrap. From
past few years, several companies have implemented this method to ensure their right utilization
of their existing inputs and reduce the cost composition. The process of lean principle has
explained through given diagram, which is as follows:
Illustration 2: The process of lean principle

Identify value: Value is what the customer is willing to pay for. It is paramount to
discover the actual or latent needs of the customer. Sometimes customers may not know what
they want or are unable to articulate it.
Map the value stream: The second Lean principle is identifying and mapping the value
stream. In this step, the goal is to use the customer’s value as a reference point and identify all
the activities that contribute to these values. Activities that do not add value to the end customer
are considered waste.
Create flow: After removing the wastes from the value stream, the following action is to
ensure that the flow of the remaining steps run smoothly without interruptions or delays.
Establish pull: Inventory is considered one of the biggest wastes in any production
system. The goal of a pull-based system is to limit inventory and work in process (WIP) items
while ensuring that the requisite materials and information are available for a smooth flow of
work.
Seek perfection: Wastes can be prevented through the achievement of the first four steps:
identifying value, mapping value stream, creating flow and adopting a pull system.
In response, this tool will help AEG to implement their production process with measures
to reduce the wastage of materials and ensure the higher customer satisfaction from that
innovative stuff. This method has been initiated to take care of quality belongs to the stored
material. AEG can use this method to protect wastage from their existing manufacturing of their
product as well as saving maximum time and cost.
Brief summary: AEG must use both the method for ensuring the higher improvements in
their products & customer experience along with reducing wastage of material from production
process. For their new product innovation of television, they can use both methods to initiate
planning and implementation of their idea towards its effective production stage.
TASK 2
P2 Prepare a continuous improvement plan based on the review and critique of operations
management principles
BASIS APPROACH/PRINCIPLE IMPLEMENTATION
Quality For enabling the quality of television, This approach will allow AEG to

AEG should use total quality
management to make quality of their
new more flexible and suitable.
structure the complete action planning
that will taken to ensure quality of TV
product more suitable and perfect.
Cost
For making improvement into the cost,
variance will be used to decide the cost
of the television along with further
improvements in their existing
products.
AEG would adopt variance as a principle
to enhance cost effectiveness for their
new products of television of 58 inches.
This will also helpful in reducing cost
burden.
Delivery
For delivery, AEG should apply the
techniques of Six Sigma to manage and
control the delivery and development
of their product at the greater and
larger extent.
The stage of six sigma involves define,
measure, analyse, improvement and
control would help AEG to effectively
deliver product from the phase of
manufacture till delivery.
Safety
Lean principle is suitable for ensuring
safety from the products. This
principle will help AEG to find out
electric faults and damage into the TV.
Lean principle will help AEG to
eradicate any kind of damage or
hazardous factor to make product
effective.
Effectiveness of continuous improvement plan: It is necessary that AEG should take
care of defined quality and cost of their new product as television. Six sigma will help AEG to
make their TV product more effective, to avoid damage and defect situation from the TV
products. Also, variance principle is useful to make cost of the TV well-decided with expectancy
of far better quality. Lastly, total quality management would enables AEG to manage the
responsive quality of the television in most effective and productive manner.
TASK 3
P3 Apply each stage of the PLC along with providing necessary supporting documentation for
the project
Product life cycle is the cyclic process, through which every project goes through stage of
introduction to actual results. Actually, this cyclic process starts with stage of introduction to

result accomplishment (Levina, 2015). This cyclic process has two components comprises of
introduction, growth, maturity and decline. In context with XYZ company, which is looking for
introducing their new product which belongs to same category of electronics, i.e. LED television.
For immense success of this new product, it is required to understand the each and every stage of
product life cycle which is as follows:
Introduction: This is a stage, where any new product brought into the market. During
this, heavy marketing activities have to be conducted with its right and suitable utilization such
as product promotion and marketing (Glukhov, 2016). In context with AEG, this is the stage for
entering their new 58 inch television product, as they are very new in this field. In this adaptive
project framework will be used to initiate the concept of this new TV project of 58 inches, taking
care of its quality and measures to make its production effective. Complete execution of stage
depends on an action planning along with control over design development and execution. This
is instantly after production stage, where sales takes place slowly, because lack of distribution
system. During this stage, AEG needs to effectively undergo the suitable marketing activities for
accelerating their new products along with building the sales team.
Growth: This second stage deals with stand up of the product with its right and actual
potential into the market. This stage also shows targeted behaviour of the product along with
strong growth of sales and product and condition any specific targeted product achieving its hike
and collective image into the market. During growth stage, Project will be continue to maintain
the quality and price of this TV product, for this Gantt chart is the most suitable tools to measure
each and every task of this project to enhance its growth for the longer period of time. In context
with AEG, company would get productive and clear response for their new television along with
higher customer attraction towards it. During this stage, it is advisable that company should
pump more and more money to make their product effective and initiate customer service at the
greater level with equal focus on promotion. This is opportunistic stage for future success of
AEG product.
Maturity: This is the stage, where product has already established into the customer mind
and now their aim is to maintain or enhance the market share. In context with AEG, firm would
get their initial target market, with increased sales & revenue. To make this project at the
maturity stage, it is necessary for AEG to enables democratic leadership style in their
organisation or separate team work to make the decision making easy and cultivatable for the

success of the product. Also, this style would enables sharing of independent idea and views to
make product more nourishing. This is the task, which company wants to take care is continuing
sales of their TV product along with enriching the market share. Here, first AEG should
undertake measures to keep market share equivalent.
Decline: This last stage talks about the situation, where product starts shrink, which is
known as decline move. This could happen, as a result of competition or product not have any
potential to lead the market (Gilbert and et. Al, 2015). This would be a stage where either this
television demand may fall, because of increasing competition. Hence, it is mandatory for AEG
to continue this project with defined tools and methodology to enhance the quality of this
product at the greater and higher level. Gantt chart will be necessary in the future to maintain
each and every stage of product development and optimized service generation. In response to
this, AEG should undertake innovation and following changing trends into their television and
even existing product to continue sales into the market. Also, democratic leadership must be
continue rather than autocratic style of management. This stage would be controlled through
effective customer service along with continuous innovation to accelerate for the future period.
Business case: This will tell about resources, which AEG needs to initiate their new
and innovative television into the market. Resources such as funds, suppliers for raw material,
area for production, electricity and power etc. It is also tells about overview of the company and
its expertise into the products, vision & mission, objectives to be accomplish and strategies.
Executive summary:
Problem/opportunities:
This business case will cover the growing opportunity for AEG to
launch their television of size 58 inches. Also, this will tell about
problem or opportunities connected to company suitability and also
focused towards finding action plan or solution to accomplish it in a
short period of time. This will also includes suggestion over best
solution or action plan to accomplish an opportunities.
Here, the opportunity for AEG is to enter into new product or
market such as large television of 58 inches. This is an opportunity
to get new customer base through product development strategy.
Hence, this opportunity is really important for AEG to make their

Possible solution of the
problem:
long-worthy into the market.
The possible solution of this opportunity is its taking corrective
action plan to manufacture the actual product more productively
and appropriately into the market. This will involves capital
intensive technique through which production will be take care
more effectively and appropriately.
Overview of the company AEG is the leading United Kingdom organisation, which sells
electronics products such as home appliances, gas and electronic
cookers etc. It was established in 1993 with their business in the
fitting of these products. Its headquarter are located in Birmingham,
United Kingdom.
Vision & Mission AEG vision is to “customer favourite choice” and their mission is
focused towards increasing sales with accurate customer's service
and also adding new and innovative products into their portfolio.
Objectives The major objective of AEG is to add more innovative products
into the same segment of electronics. Now, there are focus is lies on
entertainment sector through production of television. This could be
achieved through continuous evaluation of new specific idea of
product development.
Strategies AEG long term is focused towards entering large screen television
market, which will be used in household, stadium and large parks.
The major target behind new product in to gather the new base of
customer along with creating their interest for selling existing
products. They have decided the size of television up-to 58 inches.
Project plan: A project plan is a formal document designed to guide the control and
execution of a project. A project plan is the key to a successful project and is the most important
document that needs to be created when starting any business project.
Cost Cost is the major factors for this entire project of product

development. Project manager has decided the budget requirement of
£200000 to do brief research, which will goes till actual production
process. It also includes the cost of manufacturing till launching of
larger television into the market.
Resources Resources such as cost, manpower, time, communication, funds etc.
will be used to carry out this project more effectively and with
positive results. Skilled manpower along with adequate funds will be
used to conduct the brief research on this project for launching new
television. Time tenure for this project is approx 7 months.
Research methodologies This brief research will include mainly secondary research to identify
the scope for new product as large size television for household basis,
for stadium and large parks. Also, data collected through secondary
method will be analysed through advance statistical tools and
techniques.
Work Breakdown Structure: A work-breakdown structure in project management and
systems engineering, is a deliverable-oriented breakdown of a project into smaller components.
A work breakdown structure is a key project deliverable that organizes the team's work into
manageable sections.

TASK 4
P4 Review and critique the effectiveness of the PLC in application to the chosen project
For the success of this product, it is necessary and important to have continuous
evaluation of this product along with measuring effectiveness of PLC in each stage of product
development. As, this is the large scale project, so Kaizen technique will be used here to make
continuous changes into the product for future project. While doing the effectiveness of PLC, it
is important to co-relate concept of relationship between large and small scale project to know
whether each and every stage of PLC is effective or not as per the defined. As, this is the large
scale project, hence it is not mandatory that there would any difference with small project. It has
to be noticed that Kaizen technique of continuous improvement will be used for both large and
small scale project.
Also, here, in this PLC, Kaizen technique will be used to make stages more effective and
responsive to make existence of this product virtual. As, this project deals with introduction of
the product to growth till maturity stages. Hence, continuous improvement is necessary through
use of Kaizen model to make in each and every stage of this product life cycle. This would lead
to avoiding the decline stage of PLC, which is the complete destruction for AEG television
products. Lastly, effectiveness of the PLC is necessary for AEG to innovate more and more
products in the future period of time.

CONCLUSION
From the above report, it is concluded that project management is an important aspect for
conducting any specific project related to operation, marketing, finance and other function of the
business. Operational management principles has played the necessary role in engaging the
quality measurement of the product along with bringing continuous improvement into the service
and measures to reduce wastage of the products. Product life cycle has become important for
every company to follow as this provide road-map of particular product for introduction stage to
decline. Preparation of continuous improvement plan has been resulted in bringing changes for
business process as well as its products.