Critical Analysis of Lean Principles and Six Sigma in Operations and Project Management

This document provides a critical analysis of lean principles and six sigma in operations and project management. It discusses the effectiveness of a continuous improvement plan in product development. The document focuses on the production of large screen televisions for Bosch, a leading multinational engineering company.

OPERATIONS AND PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Critical analysis of concepts and theories such as lean principles and six sigma .................1
ACTIVITY 2....................................................................................................................................6
Continuous improvement plan...............................................................................................6
ACTIVITY 3..................................................................................................................................10
Product life cycle with documentation of business case, project plan, work breakdown
structure................................................................................................................................10
ACTIVITY 4..................................................................................................................................15
Critical analysis of concepts, theories and models of PLC which differentiate small and large
scale projects .......................................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
Project management is a process of business activities which is represented performance
of different countries to accomplish target objectives and goals (Chevalier and et.al., 2015). The
process is continuous and is based on steps like initiate, plan, execute, control and close a
particular activity related to objectives. All of the steps related to project management and there
is also including operational management process for conduct several functions which are related
to production. The below report based on production of large screen television for Bosch, which
is leading supplier of technology and services in the area of industrial technology, energy and
building and consumer goods. It is located in Germany as multinational and engineering
company.
In particular report focused on evaluation of theories and concepts like six sigma
methodology and lean principle. Prepare and analyse effectiveness of the continuous
improvement plan by applying principle of operation management. Determine each stage of
project life cycle for prepare for work break down structure, project plan and business case. For
prepare project, there is analysing appropriate theories, concepts and models in the PLC for
different projects like small and large scale.
ACTIVITY 1
Critical analysis of concepts and theories such as lean principles and six sigma
Operation management is an area of management where designing and controlling of
production process. It focuses on converting raw material into finished goods and services. The
main function of operation management in the relation of Bosch company top develop an action
plan for conduct all business activities of an organisation. In company every department are
interrelated and work with different techniques and approaches to achieve desired goals and
objectives. For this purpose, the manager conducts routine basis meetings, research and
conferences to discuss about new project plan. It is the main responsibility of operational
managers to apply strategies in proper way and communicate about work place with employees.
In the present scenario, Bosch has an existing product line of fridges, freezers, washing
machines as well as electric cookers. The company is involved in manufacturing, marketing and
selling of home appliances with a prospect to enter the large screen television market. Board of
director has decided to launch a new product a 58 inches television in market for their customer
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along with large screens that will be sold to stadiums and parks. In reference to attain there is
required to create a project according to certain set of principles. These principles will help in
meeting company's strategic goals with utmost precision and provide throughout visibility for the
operation activities. Thus, the latter concepts has a much wider scope than its counterpart and
theories are explained as under -
Six Sigma
In general way it can be defined as the process of quality which help to improved product
and services to reduce errors in the process. This approach used by manager of Bosch for reduce
issues in manufacturing and it will provide different techniques for deduct errors regarding to
particular product and make them according to customer needs. The implication of six sigma in
Bosch company is discussed below:
 Define – It is the first step of six sigma approach of operation team that define about the
demand and need of the customer. It is also provided proper direction for complete this
particular stage. It define benchmark for particular project in order to understand
customer needs and the procedure that would go into manufacturing the products (Hill,
2013).
 Measure – It is a second step where company focuses on evaluating production process
and whole improvement from the actual state. In general, terms, it helps to determine
resources which are related to products and bring out qualitative products. In this stage
focus of firm is on quantifying problem in order to set reasonable measure to manage
improvement in business operations. There is measuring capabilities, risks and procedure
with the help of different elements which is CTQ (critical to quality) to initiate the
production procedure.
 Analyse – In this step analysis all problems related to products and determine issues
related to execution and modification of product in specific manner. At this stage
manager of Bosch develop different options, conceptual or process designs and
understand the barriers that are critical to achieve value.
 Improve – After all evaluation identify all issues and problems which are improved in
this section for the succession and for possibilities of changes. In respective manner, this
stage creates to conduct all business activities in systematic manner for modified any
changes at work place.
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 Control – It is the last stage of six sigma approach where is control all business activities
that creates issues and problems in the reference of manufacturing. This stage helps to
operational manager of Bosch for acquire demands of single person in effective manner.
It is a core tool which is applied in projects for new product development. It Bosch
followed particular strategy in order to produce 58 inches television for their customers and also
for stadiums and parks.
Positive: The business would be able to create a model with zero errors and highest
precision possible. On the basis of requirement integration of highly accurate work modules to
develop high definition resolution as well as audio visual experience for the buyers. It is essential
to develop a distinguished product which would be able to attract more customers. Due to apply
particular project on new product would not only assure production of high quality television
model that is durable, customer driven making obligation of the audience a priority.
Negative: However, the application of the principle may show negative impact on the
Bosch TV so as a result time and cost overruns due to the fact that this principle favours internal
quality control measure which is expensive, thus, affecting the innovation and creativity thought
process of the business altogether. For example, Bosch would need to use those resources which
are expensive as they attend to have lesser chances of existence imperfect in comparison to a
cheaper one. If company dies not apply this so they facing many problem such as they easily
does not identified their process in efficient manner.
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Figure 1: Process of six sigma
(Source: Wong and Wong, 2014)
Lean principle
The lean principle is beneficial for operational manager of Bosch, it provides new and
innovative idea for improving the quality of production process. In this principle carry on five
principles like as identify value, create flow, establish pull, define value and pursuit perfection.
These kinds of principles help to make and launch new product in market in impressive way. In
current time, Bosch company is launching their television in 58 inches as carry out new product
for which implication of lean principles will support in successful development of new product.
The implementation of lean principle take place in five steps that are discussed below - Identify Value – In this first step, there is defined about the value of Bosch which is
delivered to their customers. Value is what for which the customer is deriving and paying
from the use of that product. It is also help to find out taste and needs of the customer and
how much price they can afford. Map the value stream - After the plan has been set, there is next step related to process
which help to carry out the product creation to till it reaches to the end of customer for
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consumption. In accordance with this focus of XYZ company is on deducting all
activities which cannot provide any value of the product and relevant customer as both.
The production process will successful when removing of wastages and eliminating all
unwanted process for reduction in cost (Kerzner, 2018). Create flow – In this particular step, all wastages are removed and ensure about the
remaining actions for continuity. In a smooth manner it will help to continue process
without any delay and interruption. For avoiding delays manager in XYZ firm focuses on
proper production process of Bosch and there is also provided training to employees and
make proper distribution of work. Establish pull – In this step assure about the stock level because it is not so hight and not
so low. It must maintain and improve continuous for meet best value which can deliver to
customers.
 Pursue perfection – This step helps in production process which going in traditional way
and improved continuously value for delivered to customers.
Positive: If Bosch selected particular strategy to produce 58 inches TV for their
customers that time business would be able to develop a model with Zero wastages and in a
sustainable manner.
Negative: To production of a television model on the basis of operation principle would
assure not about deviation of budgeted costs of the project hence precautions for a business to
face time or cost overruns. The weakness of this Manufacturing a television model based on this
operation principle would ensure no deviation of budgeted costs of the project thus preventing
for the company to face time or cost overruns altogether.
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Figure 2: Principles of Lean
(Source: Principles of lean)
Recommendations
It is recommended that for implementation of a successful plan in Bosch case, six sigma
methodology has been chosen as it deduct defects and improve precision in the product sought to
be introduced. These methodology apply according to different situation and perform their task
with the proper plans and strategies which have been applied by the senior management of
Bosch.
ACTIVITY 2
Continuous improvement plan
It is quite essential for an organisation to continue analysis the production and new
product development for assure maximum possible result and effectiveness. It is important step
which is followed by company for development and managing improvement in large screen
television product of Bosch (Krishnan, 2013). Continuous improvement plan is a strategy
through which Bosch effective could manage the processes of product development. There is
mention improvement plan for large screen television by Bosch -
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Plan Do Check Act
A manufacturing process based
on Six Sigma Principle that
would ensure:
-Deliverance of quality products
with zero errors.
-Competitive Advantage in
Large Screen Television Market.
-Acquisition of at least 10% or
more of the total market share in
the sector with a budget of £100
million.
- Production of 4K as well as
UHD television units with
android-friendly user interface
including Screen Mirroring.
-Television units would include
LED and OLED Technology, 58
inches-wide screen with a wide
viewing angle of 147 (H)/ 147
(V) as well as High Dynamic
Contrasting Ratio of 300000:1 for
better colour representation,
vividness, sharpness of screen
and crisp image.
-Raw Material used in production
will include metals, plastics,
fluorescent chemical coatings and
silicon.
A blueprint of
television model will
be created that would
guide in producing
the physical parts as
well as the overall
unit of Television
Model.
Small changes to the
blueprint may be
added to check
whether the data
gathered through
these alterations is
effective to achieve
an error-free model.
Multiple pilot
runs conducted
of the prototype
to target issues
arising while
operating the
model as well as
distortion in
images, audio as
well as colour
representation.
Using TQM
approach, the
quality test of the
prototype proved
to be successful
ensuring that the
production process
includes the most
effective blueprint
for the new model.
Also using
Customer
Mapping
technique, it was
ascertained that
the model gives a
high viewing
experience that
would provide
strong customer
relationship for
Hotpoint. Hence,
the solution is
successful and the
project can be
implemented.
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The above table demonstrates a four-stage interrelationship viz. Plan, do, check, and act.
On the basis of these stages support a step wise critical analysis of each aspect of a project
connected to an existing a new product. As per the given scenario, the management of Bosch has
decided to launch a new product through six sigma methodology in television division. In the
continuous improvement plan, it is able to check the objectives that has been set to defined
budget. The company prepared plan regarding to geometry, dimensions and quality of the
television.
Figure 3: Process of Continuous improvement plan
(Source: Continuous improvement plan, 2019)
Effectiveness of continuous improvement plan
In the check stages of the particular plan the product of Bosch company build up a team
in order to determining the different features to start this project to gain error free model that
actually works or not. To order to assess the efficiency of the system, several test iterations of the
experimental system made in the previous phase are performed. The particular stage present
some issues which origin due to user interface of the pro type relating picture distortion, present
colour and good quality of audio. In the last stage for apply improvements use TQM that bring
out shortcomings and mapping techniques to increase customer experience. It is imperative that
Bosch could analysis of effectiveness of continuous improvement plan for the product
development and effective process required for same. According the plan, total quality
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management allow the company foe analysis the overall quality according to product. It is
effective approach that allow to firm for select different techniques and method to assure for
quality of their television. On every stage, it would allow to firm for manage the product as per
the quality required in market (Kundu and et.al., 2015).
Six sigma could not measure performance of Bosch related to delivery of product. On
every step develop of television screens and this approach would allow to company to apply
different sources, methods and technologies for perfect delivery of their products according to
present standards.
Principles of operation management
Reality – This principle focusses on the issue rather that technologies because it is
principle of real life so there is not allow any tool or technique for solution itself. It is required to
manager of Bosch to importance on the issue connected to production of large screen televisions.
Organisation – In this principle establish connection between every manufacturing
process. Manager of Bosch estimate of all results according to business activities in ways which
helps to achieve those results. Estimation and consistent tasks and processes would allow to firm
for achieve predictable and effective profit throughout their televisions.
Fundamentals - According to this, a firm in order to run must adhere to the
fundamentals. To effectively achieve this, it is required by the manager to maintain effective,
trustable and accurate inventory records. It would help in achieve 805 success of Bosch for their
production for large screen televisions. Furthermore, the company has adopted new techniques
for 20% improvement.
Accountability – It is another principle of operation management which are helping to
expand effectiveness in accountability related to operation. It is essential for the managers to find
out their regarding to duties and rules for employees. They are also required to effectively handle
out duties to their subordinates and monitor their goals.
Variances – According to principle, variance is important part of any project which could
be apply for deduct the costs or increasing variety in the process of operation. In the context of
Bosch there must be encouraged an effective management to create effective source (Labban and
et.al., 2013).
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Causality – In the context of an organisation working on a product development and
there is various problem faced by managers and it is treated as symptoms. It is essential for
Bosch to suitable solve these underlying reasons or else these issues would be recurring.
Success – It is depended on the perspective of company as to what it considers as
success, but it always brings out consider to interest of customer. There is essential to company
has revised their principle as per protecting their interests.
Change – The last principle related to changes in operational management because they
are believing to change in necessary and there will always be new solutions and theories to
control and perform several functions. Hence, the manager of Bosch must clutch it and
effectively manage to keep the operations stable in the long run.
Inventory management – It is the part of operational activities which is helping to
understand principles and techniques of stock management. There is provided skills of
vocabulary for identify and apply basic principle in Bosch company.
Principle of manufacturing management – There is provided modern practices and
concepts of manufacturing management. For this principle in Bosch company required control
activities, executing manufacturing planning and material requirements.
Managing operations – This principle consist of fundamentals of principle for the
knowledge and concepts. It will help to take decision regarding to organizational process
management. According to this design products in systematic way.
ACTIVITY 3
Product life cycle with documentation of business case, project plan, work breakdown structure
As per the scenario, Bosch is a multinational engineering and electronic company who
situated in Germany and it provide innovative solutions to the smart homes. It was found in 1886
by Robert Bosch and it improves the quality of product and service's life. Company deals in
technological sectors which includes the mobility solutions, consumers goods, industrial and
energy & building technology. Bosch company plane to entered in the market with new product.
Such as large size television to small screen size television. Company also target the park and
stadium area for the product segmentation. Manager of Bosch company accept the best option
among them and apply on project life cycle (McLaughlin and Durazo-Cardenas, 2013).
Project life cycle
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It includes the high-level process which deliver the successful project. Most of the
organisation waste their enough amount because they don't have proper project management
planning. According to project management institute research, 57 percent of project failed
because of communication breakdown. This cycle divided into four phase such as initiation,
planning, execution and closure. These phases will create a proper path for the organisation to
follow it and complete their project in appropriate way.
 Initiation: - Bosch company need to find out the business problem, need or opportunity
for identify solution of these problems. In this phase, company need to find out the
project objectives and identify the weather it is feasible or not. This phase Bosch firm
will of identifying scope, deliverable time, stakeholders and strategies to enter in Large
Screen Television Market. .
 Planning: - After completing initial stage, Bosch move further for the next step which is
planning. This phase based on project initiation document, statement of work and
business plans. Company break the projects into small units for this process manager
need to build proper team and prepare schedule for the completed task. Employees
training needs to achieve small goals with in a particular time period.
Gantt chart – It shows the whole process in efficient way and there is important for the manager
to follow Bosch Gantt chart because it is systematic process in which day to day activities are
shown.
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 Execution: - It is a time to execute their project from planning to practical so Bosch
company can achieve their objectives. This phase of project will include the monitoring
and controlling stage. Manager of project team ensure that the execution of plan done
according to planning. Such as organise team members, manage timeline and ensure that
work is done according to original plane.
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Closure: - When team members finished their work on project after this team work is completed.
All the members of the team deliver all the information regarding investors or client need to
handover manager.
Business case:
Company Overview Bosch is a leading multinational electronic company founded by
the Robert Bosch and it situated in Germany. Company deals in
hardware as well in software solutions, consumer goods and
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technology (Roper and Payant, 2014).
Vision & Mission Vision of the company is to make people enthusiasm through
their products and improve the product quality life as well which
help the people to enhance their living standard. Mission of the
company is to provide best quality product such as Television
with the different technology. Which is helpful the present or
future use.
Objectives Objective of the company is to provide large size screen T.V for
the better visuals and for the clarity of screen which make
customer experience memorable.
Strategies Bosch company build strategies to increase the sale of product as
well as increase the quality of products. Timely modify the
techniques and products.
Business plan
Cost For project related to large screen televisions, Bosch would
mention cost about TV is £15000- £20000
Communication It is an integral part of the project and the manager of team
conduct various meetings and conference regarding to new project
stages. There is evaluating all modes of communication related to
strategies for the project.
Quality To expand the overall quality, the team would follow several
methods related to technology like AI and automation to measure
the effectiveness of project and quality of product.
Scope It relates to the activities of performance to successful
accomplishment of the project. It is essential to hiring effective
human resources, equipment, managing and measuring product
quality, employing tools, formulation of strategies, implementing
waste management systems and employing system for delivery of
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product (Santos and Ferreira, 2013).
Work breakdown structure
It is the process which is conduct by particular person regarding to work divide into small
part and components. For conduct objectives in appropriate manner in the respect of company to
divide their objectives in small portion after then work on it. There is project methodology used
Prince2 because it is customized according to situation. There is create work break down
structure of selected company is given below -
ACTIVITY 4
Critical analysis of concepts, theories and models of PLC which differentiate small and large
scale projects
It is important to measure effectiveness of project life cycle to expand their opportunities
and it is related to product. For this water fall model could be used to effectively evaluate the
effectiveness of PLC. According to this model, it is important to achieve business activities in
order to move for further stages. When concepts, theories and models of PLC are applied in
small and large scale project so there is coming different changes according to their level, they
are as follows -
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 Requirement – It is the first stage of this model to needs the company to determine the
requirement for achieve project in sufficient manner. In particular company Product design – In this stage, overall product design based on consideration and for the
company requires specification in televisions. The shape, size, material and screens are
supported to technology which is analysis the stage in effective way (William East,
Nisbet and Liebich, 2012) . Implementation – After determination of needs develop the product after that implement
all strategies for acquire necessary resources and accomplish effectively. Integration and testing – In this step provide performance of different units that are
integrated in effective manner and produce pre-set of quantities. The result of this stage
work as inputs. In hence, these products will bes tested to determine as to whether they
are performing on every level. Deployment of system – After evaluation of performance to all functions units there is
upgrading the required changes the product will be released to measure effectiveness.
 Maintenance – It is a final stage where this model requires to maintain the quality in
standard manner. Gap analysis would be performed according to stage and changes are
applying to set quality of products (Wong and Wong, 2014).
There are mainly two Models are help an organisation to know the effectiveness of the
product in particular time. There is applying models are Agile model and water fall model, both
are helping in product development process with their approach. The model agile used for small
scale project that can implement easily attend less priority. While waterfall model used by an
organisation for long time period scale project for the product development.
Positive impact of PLC in project
The project life cycle can help to identify those problems which can origin due to
completion of the project at initial stage. It will help to intensify of the communication in
between of the managers as well as staff members to occupied with finished of any task. After
the feasibility study at the initiation stages that will help to evaluation of positive and negative
aspects of the project. Gantt chart can provide help to set blue print foe work schedule. At the
end of execution stage provide help to provide useful information which can help in decision
making process. The cycle gives an image to the manages regarding where more attention is
required at the different phases for successful completion of the project.
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Negative Impact of PLC
Project life cycle fails to measure the progress of various stages and it is very critical task
due to record and measure individual performance on routine basis. The staff members ate
engaged with the project and resist to make any changes in the middle or at the time of
completion of task or project. Gantt chart produced on the basis of planning but it will not
provide actual schedule in clear way. The feedback report prepared at the execution stage biased
or the managers are not able to prepare them as accurately things going for finished of the
project. If there are done changes so it will create hurdles till the project completion. If the
reviews are not up to the mark or as expected the people engaged gets too much disappoint and
there may be huge losses an organization have to suffer.
CONCLUSION
Thus, it is concluded that operations and project management is important to launch new
product in market because their effective process help to adopt different methods and techniques.
Operation management determine and implemented the effectiveness of the project. The report
outlined implication of continuous improvement plan to measure and monitor the performance
regarding to product development. Project life cycle could help to companies in evaluating
effective strategies which provide help to company to remain log time in market. In the last
evaluate PLC to measure performance of the company with the help of waterfall model. It is
used to expand scope and capability of new products.
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