Operations and Project Management: Review and Critique of OM Principles and Application of Continuous Improvement

This report provides a review and critique of the effectiveness of OM principles and the application of continuous improvement in operations and project management. It also explores the extent to which operations management meets the needs of the company. The report focuses on two renowned manufacturing companies in the UK, Dyson and New Imperial Motors.

Operations & Project
Management

INTRODUCTION
Project Management can be defined as the accumulation of phases that are executed with
a view to implement a specific project or task within the confines of a company. Organisations
operating in the modern era are encountered with several environmental situations owing to
which they have to come up with new projects at rapid intervals of time. Thus, it can be said that
project management is a crucial process for every corporation.
The present report is done to gain comprehensibility of operations and project
management within 2 renowned manufacturing companies of UK, namely, Dyson and New
Imperial Motors. The report is classified into 2 parts. The first part deals with review and critique
of effectiveness of OM principles and application of concept of continuous improvement
together with extent to which operations management meets the needs of company. The second
part takes into account the description and application of stages of PLC for introducing a new in
house project of company. Further, it also contains review and critique of effectiveness of PLC
through application of relevant models.
PART 1
Organisational Overview
Dyson Limited is a famous tech manufacturing company conducting its operations within
the confines of United Kingdom. This entity is engaged in the production and sale of an array of
household items such as hair dryer, blade less fan, vacuum cleaner and many more. This
company was founded in the year 1991. The management of this entity emphasises over
adoption of principles of operation management and applying the same to facilitate operational
excellence.
Operations vs OM
Operations refer to the activities and processes that take place within the confines of a
company, providing aid in attainment of long term corporate objective. Opposed to this,
operations management can be referred to as the comprehensive procedure which encompasses
activities such as planning, management and implementation of course of action aimed at
transformation of raw materials as well as labour into finished goods in a cost effective manner.
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Critical appraisal of formulation of Principles of OM
There are various principles of operations management which are required to be followed
by all companies for facilitation of smooth business functioning. With reference to Dyson
Limited, it is analysed that the management implements principles of OM within production and
product delivery procedures. The principles of OM are thus explained in a detailed manner as
follows:-
Principle of Organisation: This is regarded to be a crucial principle of OM whereby the
focus is on setting up of a connection between all the organisational procedures related to
manufacturing. With respect to Dyson, it is analysed that the entity is considering to execute the
transition to robotics for production process. Yet the non connectivity between the
manufacturing procedures of Dyson is quite evident. This illustrates the inefficiency of firm in
following this principle.
Principle of Variance: This is considered as yet another significant principle pertaining
to OM that stresses upon the persistence of variance within every activity of a corporation. In
this regard, whereby an entity intends to reduce the overall cost, the management needs to carry
out measurement and controlling of variances. With respect to Dyson, it is determined that the
respective manufacturer carries out distribution operations on its own. This might increase the
cost of supplying products to customers, for the firm. So, the management needs to apply this
principle in a more effective manner to attain favourable outcomes.
Principle of Change: This is a key principle which is concerned with adoption of unique
theory and solution to facilitate execution of business operations in an effective and efficient
manner. In this regard, Dyson is a company which is well renowned for coming up with rapid
innovations in production and designing procedures to meet the needs and requirements of
changing business surroundings.
Principle of Reality: It is a principle of OM which is focussed upon the challenges
instead of technique as there isn't any universal solution for diverse set of business situations.
Thus, the management of an entity is required to devise solution in accordance with the issue
arising in its confines. With respect to Dyson, the management capitalises on innovation and uses
it as a tool to address every organisational issue. Thus, it is seen that company is not effectively
following the provisions of this principle.
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Magnitude to which OM fulfils requirement of Dyson
To facilitate the execution of business operations in an effective manner as per
organisational requirements, it is essential that Dyson implements the principles of OM. Below
mentioned is an analysis depicting the extent to which OM meets the needs of Dyson:-
 The most significant as well as crucial requirement for company is to reduce its overall
cost. In this relation, the Principle Of Variance is applied by Dyson which provides aid to
entity in improving their diversified set of offerings. However, it is seen that the entity
has been unable to apply this principle over the cost of production. This reflects the
failure of organisation to implement this principle in an effective manner.
 Yet another requirement for Dyson Limited is entailment of high quality and consistency
in manufacturing processes. It is seen that the respective firm is inconsistent in setting an
effective connection within all the procedures linked to production and thereby it fails to
apply the Principle of Organisation in an effective manner. Further, the staff members of
Dyson are not much skilled and knowledgeable which is facilitating the corporation to
use robots in key organisational procedures. So, it can be seen that Dyson is not able to
fully and effectively apply this principle for achievement of favourable results.
 Effective delivery of products to end users is another requirement for the respective
household appliances manufacturer. The approach adopted by firm to leverage innovation
for effective delivery of products to customers is regarded to be time consuming. Thus, it
is seen that Principle of Reality is not being effectively applied by the company in
relation to distribution system.
 Safety is one of the most crucial concerns for Dyson in relation to which the management
of this firm is applying Principle of Change. Incorporating innovation within the products
to meet the needs and requirements of people is a strong initiative taken up by firm which
ensures the safety for consumers. Thus, it can be said that this principle is effectively
applied by Dyson within its premises.
CI along with Principles of Lean approach
Being a renowned manufacturing corporation, it is important for Dyson Limited to
exhibit an effective performance in relation to product and delivery of offerings. For this
purpose, the entity should consider to apply continuous improvement within the organisational
premises. It is an effective process whereby repeatedly analysis is done by entity with a view to
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incorporate improvements within the company and facilitate delivery of efficient performance as
per required standards. This approach would provide aid to Dyson in attainment of favourable
outcomes and thereby meeting the standards prevailing within the concerned industry.
Another approach that needs to be taken into account by Dyson is Lean management.
This consists of several principles which provide assistance to an enterprise in manufacturing the
products and services while minimising the wastage. It contains 5 principles which are followed
by Dyson Limited. Such principles are briefly mentioned as follows:-
 The foremost lean principle is acknowledged to be determination of worth that implies
the analyses of aspects which possess significance for organisation. The second principle of lean approach is regarded to be mapping of the value stream that
is considered as a procedure which ensures effective dispersal of value across the
organisational premises.
 Facilitation of Flow is the next principle pertaining to lean approach that is concerned
with assurance of efficiency maximisation within the organisational procedures to reduce
the generation of wastage thereby.
 The fourth and one of the most crucial principles of lean approach is establishment of
pull whereby a company needs to examine the customers' demands and thereby alter their
business functioning as well as offerings in accordance with them.
 In the last principles, the areas having a scope to incorporate improvements are
acknowledged and thereby, the company gets engaged in seeking perfection within their
course of action through minimisation of wastage as well as maximisation of utility
within organisational offerings.
CIP
As per the above analysis, it is important for the firm to prepare a CIP for dealing with
the issues arising within the company. Also, this will ensure effective application of principles of
OM to meet the organisational requirements. Thus, CIP prepared by Dyson is presented as
follows:-
Basis Current Methodologies Proposed Methodologies
Cost The company is applying principle of
variance to reduce costs. However, this
This principle would be applied to cut the
cost associated with production by
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principle is at present being applied only
for enhancement of heterogeneity of
offerings instead of declining the cost.
leveraging technological trends such as
AI capabilities. This would cut the cost of
recruitment as well as training of
employees.
Quality
Principle of Organisation is presently not
applied by Dyson in an effective manner
owing to which effective connection is
not set within the production procedures.
This results in failure of company to
inflate the overall quality of
organisational offerings.
Dyson would incorporate alterations
within their designing process and apply
TQM approach to set effective link
between all the production processes of
company. This would enhance the quality
of products offered by manufacturer at
market place.
Delivery
Principle of reality is presently being
implemented by Dyson through
incorporation of innovation to enhance
the delivery process.
The manufacturer would be using JIT to
enhance the application of this principle
and ensure the storage as well as delivery
of organisational offerings with ease,
without overall increment in cost.
Recommendation
On the basis of above analysis, certain suggestions are given to Dyson, these are as
follows:-
 The firm must implement Just In Time (JIT) approach to reduce the cost and wastage and
produce products in an effective manner.
 Dyson should implement innovation across the overall structure of corporation to
facilitate the fulfilment of needs and requirements of customers at market place.
PART 2
Overview of Case Study
New Imperial Motors is a renowned company operating within Midlands. It is one of the
biggest manufacturing firms across the domestic territory. It has a staff of 1250 individuals
which collaboratively work to attain the corporate objective. The firm is proposing to decrease
the movement of employees from premises during the lunch break to obviate congestion
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challenge and assist personnel in creation of healthy lifestyles for reduction of absenteeism. For
this, the entity is coming up with an in house project named “Health is Wealth!!”.
Overview along with implementation of PLC
Project Life Cycle (PLC) encompasses several phases which seek to effectively execute a
project within the confines of a company. In relation to New Imperial Motors, coming is coming
with the project named “Health is Wealth!!” to establish food provision within the premises of
entity. Prior to the execution of stages of PLC, a business case has been developed by firm
enlisting the significance as well as target market for the new project together with the cost
benefit analysis.
Business Case:
BASIS DESCRIPTION
Importance
The “Health is Wealth!!” project of company holds immense
significance as it seeks to establish in house food provision for the
staff members. The project is aimed at enhancement of health
conditions of personnel so as to deal with the issue of absenteeism
in premises.
Target Market
The target market selected by the entity for this project is the
employees pertaining to age group of 20 to 45 years as they are in
constant need of healthy lifestyle and move out of premises for
having lunch.
Cost Benefit Analysis:
Particulars Situation 1 Situation 2
Costs 100000 120000
Benefit 0 20000
(Break Even Point)
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C os ts B en efit
0
2 0 0 0 0
4 0 0 0 0
6 0 0 0 0
8 0 0 0 0
1 0 0 0 0 0
1 2 0 0 0 0
1 4 0 0 0 0
C h a rt T itle
C olu m n C
Illustration 1: Cost Benefit Analysis
The stages of PLC are explained in context of new project (Health is Wealth!!) of New
Imperial Motors as follows:
Project Initiation:
This being the first stage of PLC witnesses the stipulation of objectives as well as
strategies by the company. With respect to the project of New Imperial Motors, the objectives
and strategies are identified and stated below:-
Objectives
 To decrease the movement of staff by 75% by next 6 months of
launch of “Health is Wealth!!”.
 To cut down absence of personnel by 65% within 1 year of food
provision in the premises of company.
Strategies
The strategy which would be taken into use by New Imperial Motors to
indulge employees in the new project is acknowledged to be
diversification. In this regard, the entity would provide an array of food
items within the organisational premises to cater to the health related needs
and demands of people, thereby influencing them to be a part of the project.
The tool which can be taken into use for this stage is Microsoft Project 2019 Professional.
Further, Six Sigma methodology would be applied for effective start of the project. Further,
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transformational leadership would be taken into use for development of a vision related to
maintenance of staff health.
Project Planning:
The next phase witnesses effective planning being executed by the organisation. For this
purpose, a project plan is devised by companies. With respect to the project of New Imperial
Motors, the project plan is given as follows:-
Cost “Health is Wealth!!” would be implemented by incurring an overall cost
of £1,75,000-2,00,000
Communication
Written, verbal, formal and informal communication would be taken into
use to facilitate interaction for effective flow of information for launch of
new project.
Quality Automation would be leveraged by the company to keep the quality of
food provision as per the health requirements of employees.
Scope The scope is extensive as the project encompasses every staff member
pertaining to the organisation.
For effective execution of this phase of PLC, the respective manufacturing firm would be
implementing lean principles which would provide aid in reducing the wastage and enhancing
the quality of project. In addition to this, autocratic leadership would be applied to provide
proper guidance to employees. Further, 2 tools would be used that are given as follows:-
 Gantt Chart:
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Illustration 2: Gantt Chart
Illustration 3: Gantt Chart
Illustration 4: Network Diagram
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 Work Breakdown Structure:
Illustration 5: Work Breakdown Structure
Project Execution:
This phase of PLC witnesses the actual execution of “Health is Wealth!!” project.
Hereby, For this, Process based training sessions will be provided to employees of New Imperial
Motors. The tool that would be applied herein would be Zoho Projects. Further, the usage of
democratic leadership would ensure effective execution of New Imperial Motors' project. Total
Quality Management methodology would ensure that the quality of food provided within the
premises is maintained as per the standards.
Project Closure:
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The last stage witnesses the analysis of project performance. In this relation, New
Imperial Motors would make use of tool named Base Camp for monitoring as well as
measurement of performance standards. Apart from this, strategic leadership would be applied to
examine the performance of project against the desired standards.
Critique of PLC
Waterfall Model is used for critique of PLC by New Imperial Motors. This model is
explained as follows:-
 Requirement:
This step is associated with initiation stage of PLC. Hereby, company applied Six Sigma
to ensure proper initiation. However, these principles are quite rigid which might not prove to be
effective for New Imperial Motors.
 Design:
This is related to planning stage of PLC. Lean Principles were applied by the firm to
ensure minimum wastage. However, usage of autocracy leadership contain a probability of
occurrence of demotivation within staff.
 Development:
This phase is concerned with the execution stage of Project Life Cycle. TQM
methodology was taken into use which is considered as an expensive approach, that may
enhance the cost of operations for the respective firm. For savings of funds, the entity could have
used inventory management.
 Testing And Maintenance:
This phase is concerned with closure of Project Life Cycle. Hereby, the company
implemented strategic leadership that is effective for an enterprise, yet organisation could use
Agile method for entailment of more favourable outcomes.
CONCLUSIONS
Operations and project management is regarded as a crucial process for each and every
enterprise for effectual formulation of a certain project within due course of time. Further, it is
ascertained that Continuous Improvement Plan provides assistance to a corporation in ensuring
the application of Operations Management principles as per the requirements of organisation. In
addition to this, it has been acknowledged that Project Life Cycle encompasses several stages
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starting from initiation and continuing till closure, which are aimed at implementing a certain
project for attainment of favourable outcomes. Also, it is recognised that each stage of PLC
applies different leadership, tool and method.
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