Importance of Project Management in Business

The provided report emphasizes the necessity of operations and project management for every business enterprise, as it helps attain specific objectives within a specific time frame with agreed parameters. The document mentions several approaches such as total quality management, six sigma, lean principles, and implementation of PLC stages that guide project development. It also references various books and journals related to project management and operations, including topics like earned value project management, advanced project management, operations management, and supply chain management.

Operations and Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Critical review of the execution of principles of operations management in context of an
organisation............................................................................................................................3
TASK 2............................................................................................................................................6
P2 Continuous improvement plan on the basis of critical review of operations management
principles in an organisational context...................................................................................6
TASK 3............................................................................................................................................7
P3 Application of Project Life Cycle to a project and development of essential support
documentation for completing the project..............................................................................7
TASK 4..........................................................................................................................................12
P4 Critical review of the effectiveness of project life cycle in application to the project by
utilizing suitable theories, models and concepts..................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operations management refers to an ongoing organisational function which performs
tasks and activities to develop products or supply services. It includes planning and
implementation of operations in the manufacturing and service world including demand
anticipation, production planning, quality management, inventory control and supply chain
collaboration (Binder, 2016). Project management includes practices of initiating, designing,
implementing, controlling and closing the team work to attain and meet specific goals and
success criteria in specific time. In the present report, chosen organisation is Norton Motorcycle
Company which is a leading motorcycle manufacturer of Birmingham, England, United
Kingdom. This report covers operations management principles and their effective execution in
organisational context. It also includes continuous improvement plan and application of project
life cycle stages on given project. At last, the report critique about the effectiveness of PLC in
application of the project.
TASK 1
P1 Critical review of the execution of principles of operations management in context of an
organisation
Company overview:
Norton Motorcycle Company is one of the leading motorcycle manufacturer firm located
in Birmingham, England, United Kingdom. It is a private limited company founded in year 1898.
Initially, the company started as manufacturer of parts and fittings for two wheel trade and now it
manufactures motorcycles.
Operation vs Operations Management:
Operations is one of the major function in company along with marketing, finance,
supply chain and human resource. It requires administration of both day to day and strategic
production of products and services (Fleming and Koppelman, 2016). Operations management
includes administration of business practices to develop high level efficiency possible in firm.
This function is concerned with conversion of materials and labour into products and services to
maximize organisational profit.
Critical review of execution of principles of Operations Management:

There are various operations management principles that are require to be reviewed for
proper understanding and application of the same in context of organisation. In Norton
Motorcycle Company, supply chain management and quality control are main operations, so it is
necessary for company to ensure its effectiveness. Some of the principle of operations
management and their application in an organisational context are mentioned below:
Variance: It is the principle of operations management which is inherent in each adopted
process of firm (Harrison and Lock, 2017). For reducing cost, it is require to control and measure
this principle. As the major operations of Norton Motorcycle Company includes supply chain
management, parts flow via the building, sub assembly, quality control etc., so it is necessary for
manager to encourage variance of processes as this can be the source of creativity for company if
it is managed well.
Change: In this principle, it is necessary for organisation to ensure better quality control
and supply chain management in manufacturing operations. With new solutions as well as
theories, Norton Motorcycle Company enables to ensure for managing long term stability. It
helps firm in offering better quality product to customers.
Fundamentals: As per this principle, strict adherence of fundamentals and norms is
necessary to ensure standardized process. For better quality control and supply chain
management, Norton Motorcycle Company use standard processes.
Reality: As per this principle, it is necessary for management of company to emphasize
more on problem, rather than on techniques. The main reason behind this is that no tool in itself
will be able to provide universal solution. So, for improving supply chain management and
ensuring better quality, Norton Motorcycle Company can apply reality principle in its operations
and focuses on issues instead of processes.
Degree to which the principles of operations management meets the needs:
In relation to product development, there are some operations management principles
which are needed for firm to understood in order to ensure their effective application. It involves
principle of reality that emphasize on issues, instead of techniques (Heizer and et. al., 2017). For
ensuring better supply chain management and quality control, application of reality principle in
operations proves to be beneficial for Norton Motorcycle Company as this helps in emphasizing
on issues and their solutions. The advantage of applying principles for firm is that these
administers it with set pathway and guidelines to work upon. This will also helps employees in

improving their skills and capabilities through regular monitoring. Operations management helps
company in applying technologies and ideas to reduce cost and increase productivity. This also
helps in enhancing flexibility to meet changing customer needs, improve product quality, shorten
delivery time and enhance customer service.
Continuous improvement as a philosophy and the lean principles:
Continuous improvement involves continuous efforts of firm to enhance processes,
goods and services (Heldman, 2018). It supports in identifying opportunities for minimising
waste and streamlining work. Application of continuous improvement approach helps project
manger of Norton Motorcycle Company in a prevent outrages and reduce project cost. It also
helps in improving productivity and profits of firm.
Lean principles:
Lean manufacturing or lean production is about optimizing the processes by lowering
cost and eliminating waste when adding value to end product. This helps firm in cutting cost of
production and at the same time, delivering value to customers by providing them high quality
products. Lean manufacturing is completely based on five principles and application of these
principles in context of Norton Motorcycle Company are mentioned below:
Define value: This principle helps company in determining value for customers. In this,
firm identify needs of customers and thinks of what creates value from their perspective. This
principle helps Norton Motorcycle Company in offering high quality product to customers that
provide them unique value.
Map the value stream: This principle aims to utilize value for customers as a reference
point and determine the tasks that contributes to value. For ensuring better quality control and
supply chain management, Norton Motorcycle Company eliminates all those steps from
processes that do not create value.
Create flow: In this, after eliminating all the unnecessary steps or processes from value
stream, creating flow ensures smooth running of operation without delays or interruptions.
Project manager of Norton Motorcycle Company optimize flow in all business aspects and
develop value creating steps to ensure smooth flow of product to customer (Kerzner, 2019).
Establish pull: In production system, inventory is seen as the biggest waste. This
principle aims to limit work in process items and inventory while ensuring information and

requisite materials are available for smooth work flow. Application of this principle helps Norton
Motorcycle Company to ensure that manufactured product will be able to satisfy customer needs.
Pursue perfection: By achievement of all the above mentioned four a principles, wastes
are prevented. However, pursuing perfection is crucial. In Norton Motorcycle Company, it is
necessary for each employee to strive towards perfection when delivering products to customers.
Project manager constantly analyse processes to increase value and ensure to render products
that are needed by customers (Kundu and et. al., 2015).
TASK 2
P2 Continuous improvement plan on the basis of critical review of operations management
principles in an organisational context
Continuous improvement plan includes set of activities that are designed to bring gradual,
continuous improvements to processes, products or services through ongoing review,
measurement and action. This plan helps in ensuring consistent improvement in processes related
to supply chain management and quality control. The continuous improvement plan for Norton
Motorcycle Company to enhance productivity of SCM (supply chain management) is mention
below:
BASIS Underway Methodologies Future Projected
Methodologies
COST
Executing variance principle in
manufacturing process is
ineffective a which impacts on
its operations (Lientz and Rea,
2016).
In future, variance should be
implemented by Norton
Motorcycle Company to cut
cost and ensure manufacturing
of high quality product.
QUALITY Organisation principle is not
implemented effectively and
methods to optimize inventory
and synchronize supply with
demand of customer are not as
effective.
In future, for ensuring quality,
Norton Motorcycle Company
needs to organise all aspects
and operations related to
supply chain management.
Instead of utilizing different
techniques for this, data

management and integration
could be utilized by firm to
ensure better supply chain
management.
DELIVERY
Change principle of operations
management is not
implemented properly and
other retailers share the
capacity for effective delivery
of product (Maylor and
Turner, 2017).
In future, firm require to
implement change principle in
its operation and different
transportation modes such as
ship cargo and air train could
be utilized for delivery of
motorcycles, instead of sharing
capacity.
Recommendations to improve operations functions:
For ensuring better quality control, it is recommended to Norton Motorcycle Company to
ensure selection of correct raw material and use right production methods as per the international
standards. The firm should use methods like quality assurance, TQC, failure testing in order to
ensure better quality control in manufacturing process.
For improving supply chain management, it is recommended to Norton Motorcycle
Company to use tools like lean inventory and warehouse management. Lean inventory tool help
in optimizing production planning through cutting down inventory cost, warehousing space and
distinct processes of storing excess inventory. Application of this tool helps in streamlining the
labour force and decrease the requirement for warehouse space.
TASK 3
P3 Application of Project Life Cycle to a project and development of essential support
documentation for completing the project
Overview:
Norton Motorcycle Company is planning to implement a change programme in company
with the aim to reduce staff movement from premises at the time of lunch break so that
congestion issues in local area could be a resolved (McArthur, 2015). The another aim of the

project is to help staff for developing healthy life style to reduce staff absenteeism. For this
undertaken project, company needs to work effectively in each stage of project life cycle.
Below mentioned are the project life cycle and business case for this project of Norton
Motorcycle Company.
Project life cycle: It refers to the four step process which is followed by project managers while
moving through project completion stages. The different stages of project life cycle are mention
below:
Initiation phase: It is the first stage in which Norton Motorcycle Company requires to
identify project objectives and assess threats and opportunities associated with project (Maylor,
Turner and Murray-Webster, 2015). It is needed by firm to document an appropriate response in
business case along with recommended solutions. The overall project is measured on the basis of
its value and feasibility. Appropriate brainstorming is needed for firm to meet the needs and
factors contributing in assessment of opportunity.
Objective:
 The main objective of project is to reduce movement of staff from premises. Another objective is to develop healthy lifestyle among staff and reduce staff absenteeism
by 50%.
Strategies:
For attaining the same, Norton Motorcycle Company would be developing a policy in
which sharing of food will not be allowed in premises. The firm would engaged in CSR practices
so that an ethical culture will be develop in organisation and provide employees with healthy
workplace so that staff absenteeism could be reduced.
It is required by project manger to submit written report to top level administration for
getting approval on it. The tools such as Microsoft Project 2019 Professional could be used by
company. Moreover, at this phase, Six Sigma Methodology can be implied by project manager
that allows them to conduct better feasibility analysis. Main reason behind utilizing this method
is that it will delineate deliverables and also aids firm to determine aspects that minimize cost
for making it more feasible. Leaders can utilize transformational leadership as it will assist to
develop a unified vision for entire project (Nicholas and Steyn, 2017).
Project planning: This is the second stage of project life cycle in which overall planning
related to project is done. After getting confirmation from higher authority, project manager

needed to frame a detailed plan. In this, they need to assess resource gaps in order to determine
the required resources to be employed for project. Apart form this, process maps and project plan
would be prepared as well as financial planning and budget estimation will be done. Below
mentioned is the project plan for Norton Motorcycle Company.
Cost
It involves the cost which is subjective to processes, technology and
resources utilized in implementing change programme. The overall
cost of project would be around £5000 to £8000.
Communication
The company would be undertaking various communication channels
in order to ensure proper communication of information regarding
policy and CSR practices among the employees.
Scope
The scope of this project is wide as it helps firm in ensuring ethical
working within organisation and help in developing healthy working
environment which ultimately reduce employee absenteeism (Pheng
and Meng, 2018).
In this stage, Norton Motorcycle Company could use continuous improvement approach
as this would helps firm in making constant improvements that assist in improving productivity
of workforce. In this stage, democratic leadership style could be use by company as this helps in
increasing engagement of employees within firm's activities which ultimately contributes in
reducing employee absenteeism.

Project execution: It is one of the essential phase of Project Life Cycle in which all the
ideas and concepts are implemented appropriately. Project Manager at Norton Motorcycle
Company will set up workflows that necessitate them to assign responsibilities to each individual
teams. Here, the team manager is responsible to organize team members, keep work on track,
manage timelines and ensure that work is done as per the original plan. For implementing
policy, project manager communicate with team members and top management and provide
updates to stakeholders at all levels. They ensure that all the members meeting time and quality
goals. Democratic leadership style can be use by leaders as this will help in improving
engagement of employees or team members in proper execution of project (Schönsleben, 2016).
Project closure: This is the final stage of project life cycle that requires Norton
Motorcycle Company to examine the overall project's performance. Team performance also
needs to be analysed by organisation. Apart from this, the organisation should frame detailed
documentations regarding project closure along with budgets. Vital role is played by
communication in informing all the stakeholders about successful completion of project, i.e.,
policy implementation and creation of healthy work environment by applying ethical practices.
Company could use tool like Basecamp for determining overall project quality and closure.

Strategic leadership could be effective for firm in assessing effectiveness and modify plan
(Simpson and et. al., 2015).
TASK 4
P4 Critical review of the effectiveness of project life cycle in application to the project by
utilizing suitable theories, models and concepts
Scheming and executing PLC is a helpful practice for company as it provides appropriate
structure and integrated guide in order to manage and monitor all the aspects of project
appropriately. It is vital for Norton Motorcycle Company to critically review all the PLC stages
effectively to assure that high-grade techniques, processes and methods are utilized. To attain
this effectively, organisation can use Waterfall Model in which four steps are included which are
mentioned below: Requirement: This stage of model helps in analysing resource needs for company. In
initiation phase of PLC, this stage assist firm in determining essential needs for project.
Nevertheless, for defining deliverables, six sigma approach is applied. Design: This step is associated with development of flexible design of project. It reflects
second stage of PLC in which lean principles is utilized by a firm to minimize waste.
Democratic leadership style is used in this phase which proves to be beneficial for
company as it helps in increasing engagement of employees within firm. Development: The third stage of PLC is reflected in a this phase in which during
implementation of project plan, firm use continuous improvement approach so that
improvements can be made in project on continuous basis (Slack and Brandon-Jones,
2018).
 Testing and Maintenance: In the final level of model, effective testing and fixing of
project plan could be utilized for assessing the closure phase of PLC. Strategic leadership
is used in this stage for evaluating the effectiveness of entire plan.
The performance of PLC could be effectively measure by utilizing some performance
measurement approaches that are mentioned below: 360 Degree Feedback: It is a technique that can be utilized by organisations for
measuring performance of PLC. The company could effectively collect feedbacks from
stakeholders by which they would effectively evaluate quality of entire developed

project. This techniques would help Norton Motorcycle Company in modifying PLC
stages which could improve its performance (Verzuh, 2015). Key Performance Indicators: The another technique that could be executed by Norton
Motorcycle Company is KPI's. The individual deliverable should be frame effectively
against an indicator that allows company to examine performance appropriately
according to the indicator.
Methodologies use for large and small projects:
METHODOLOGIES Small Scale Projects Large Scale Projects
Six Sigma
For small scale projects, Six
Sigma approach could be utilized
in a lenient way and firm could
achieve sustainable development
by reviewing the operational
process and improve the same
(Maylor, Turner and Murray-
Webster, 2015).
In Large scale projects or a
completely new offering, Six
Sigma methodology and
principles would be implemented
on entire project that involves
defining standards, analysing and
measuring resources, design and
verify the entire process with its
effective management.
Lean Principles
In small projects, lean principles
could be utilized for reducing
unnecessary steps from the
operations process. This will help
in reducing cost and improving
overall efficiency.
For large scale projects, lean
principles could be utilized in
processes of planning where all
the cost-ineffective activities were
eliminated and waste can be
minimized from production
process.
CONCLUSION
As per the above mentioned report, it can be concluded that operations and project
management is necessary for every business enterprise as it helps in attaining specific objectives
of a project in specific time as per the acceptance criteria in agreed parameters. Various
approaches or methods such as total quality management, six sigma, lean principles etc. assists

firms to develop project with utmost quality and set standards. Implementation of PLC stages
provides guidance related to the project.