Operations and Project Management Principles - Assignment

Operations and Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Conduct a review and critique of the implementation of operations management principles
within an organisational context.................................................................................................1
TASK 2.......................................................................................................................................4
P2 Prepare a continuous improvement plan based on the review and critique of operations
management principles within an organisational context...........................................................4
TASK 3.......................................................................................................................................6
P3 Apply each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project e.g. a business case, project plan, work breakdown
structure.......................................................................................................................................6
TASK 4.......................................................................................................................................8
P4 Review and critique the effectiveness of the PLC in application to the chosen project using
appropriate theories, concepts and models..................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Operation management is the process in business administration to create higher level of
efficiency within the organisation (Turner, 2014). It is mainly connected with converting
material and labour into goods and services so that highly efficient goods and services should be
produced to gain maximum profit share in business organisation. It includes fully utilization of
resources in order to attaining desired outcomes and results as well. This report is based on XYZ
corporation which deals in home appliances and have a good market share and reputation also in
its product line. It sells fridges and freezers, gas and electric cookers with washing machines and
plan to expand in Television market with new and innovative product which is 58 inches TV.
The report also include operation management principles in organisational context. It determines
continuous development plan on the basis of some issues to give suitable solution of the
problems. Further it includes discussion about product life cycle and contribution of each and
every stage in development of business organisation and selection of the most important theories
and models that help in PLC.
TASK 1
P1 Conduct a review and critique of the implementation of operations management principles
within an organisational context.
In a business organization, operation management play a vital role for getting outputs
from various types of input. Operation management is used in every type of business
organization whether it is manufacturing entity or service provider. It includes various activities
to get higher profitability and organizational growth such as planing, organising and
establishment of needed improvements. Operation management is multidisciplinary task which is
used by every department of a business organization. It provides effective result by which
organization can use its resources in perfect way.
The major principles of operation management: To understand the potentiality of
operation management there is need to understand its principles that gives important insights and
knowledge in organisational development and its enhancement that are as follows:
1. Reality: This principle means that a business organisation have to focus on problem
rather than methods and techniques because there is not any tool that is self sufficient in
providing a universal solution of problem (Subramanian and Ramanathan, 2012). It
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means not a single tool or method can solve problem properly. In case of XYZ
corporation by analysing the problem or need of consumers they aimed to launch a new
product in the market segment.
2. Organisation: organisation is a whole group of work and activities in which they all are
connected with each other to give effective results. In organisation all manufacturing
activities are connect with each other to give at last best product and services to their
consumers (Gunasekaran and Ngai, 2012). So in case of XYZ corporation their each and
every element should connect with each other to get best outcome in organisational
development. For example in XYZ organisation, all departments and activities are
connected with each other, when they launch a new product that is TV in that scenario
they connect with each department. Marketing department identify need and requirement
of customers in order to providing them quality services properly. So in organisation each
and every department connect with each other.
3. Fundamentals: This principles refers that 80% of success carried out from the old
maintaining records and techniques and 20% comes from the application of new
processes and techniques to that are important steps in progress of organisational
development. In case of XYZ corporation in present scenario it works to give best
products as new TV of 58 inches.
4. Change: There will always be new theories and solutions, so customers will not stick to
one or the other, but embrace the change, and manage for stability in the long term. In
case of XYZ organization, it is unable to adopt changes which occurred day by day.
Hence, in present scenario employees and managers are unable to give their best.
5. Variance: It refers to different organisational processes that are prevail simultaneously
so management of these activities work as a creatively. In case of XYZ corporation it
manage various activities simultaneously to get effective results.
Six sigma: Six sigma is a statical tool and technique that work on reducing defects and
improving variability in processes (Fleming and Koppelman, 2016). In six sigma process major
attributes includes measurement, improvement and validate work and activities. That process
helps in measure the current performance and increase the performance of organisation by using
statically improved performance and tools. This method is associated with DMAIC that stands
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for Define, measure, analyse, improve and control. There are some specified steps that helps in
implementation of six sigma that are as follows:
1. Define: At this stage problem and issues should be describe effectively in order to
achieving organisational growth (Ramasesh and Browning, 2014). In define project
scope, resources and plan should be explain in detail in case of XYZ corporation.
2. Measure: In that step of six sigma, organisation assemble current picture of baseline
according to that and it develop process map and collection plans.
3. Analyse: In analysis stage of six sigma, it identify the factors that are root cause of the
problem. At this stage, XYZ organisation can identify effectiveness of their services that
requires to be done properly at last stage.
4. Improve: In that stage organisation find out the root cause of the problem and corrective
steps and actions should be identify to resolve issues and problems by identify solution
and failure modes where that solution can be fail and then potential improvements in
XYZ organisation.
5. Control: In that phase, proper evaluation of results should be observed and according to
it control on effective measures.
Critique of Six Sigma:
It is quite an effective approach which is essential for the company. Its biggest advantage
which the company could experience by the same is that the firm would be creating a pathway in
order to develop the new offering. However, its principles are quite rigid, which might cause
ineffectiveness in further stage in case modifications are required.
Lean production: Lean production is an operations management tool that focus on
curtail in cost with best quality product and services (Pemsel and Wiewiora, 2013). This
approach is applicable in all areas from design to production to distribution. The main aim of
approach is to minimize activities that not help in given value to production process.
Principles of lean: There are five principles of lean that helps in increase the production
efficiency and eradicate defects also.
1. Define value: The first and foremost principle focus on giving value to their customers
and understand what kind of value the customer wants from organisation. In that case
XYZ corporation build the product and services according to consumer choices and
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preferences. It launch the new TV which satisfy their future needs in order to satisfy
them.
2. Map the value stream: In the second phrase marketers by identify value and use these
value as a reference point and give it in product and services and eliminate activities that
not generate any kind of value (Beringer,Jonas and Kock, 2013). In case of XYZ
corporation it add more features and values in their TV so that it can give delighted
experiences.
3. Create flow: In this respective stage, elimination of stages or activities that not giving
proper value to organisation then it should be eliminate at that time and some strategies
should be adopted to give their best in which includes breaking down, reconfiguration of
steps are major things that added value in XYZ corporation.
4. Establish pull: In an organisation, inventory is considered as the biggest wastage in
production process and the goal of that step is to limit in inventory and work in process
so that proper flow of material and information should be in maintain.
5. Per-sue perfection: This process is one of the most important which helps in continuous
improvement and lean thinking and it become part of organisational progress to improve
product and services (Mir and Pinnington, 2014). Incase of XYZ corporation employee
should be strive to give their best in organisational success.
Critique of Lean Principles:
The biggest benefit which the firm would be experiencing by this method is that the
company would be managing and reducing waste activities and processes in the new product
development which would cause reduction in the cost of production. However, it focuses mainly
on reduction of waste, which might cause ineffectiveness in case better or costly alternatives are
available within the market which could enhance quality of their product.
M1
Six sigma: These kind of practices assist in reducing quality of business products and
services in order to managing the cost for future planning approaches. This approach having
numerous positive and negative impact as -
 Positive – This process assist in enhancing quality of business practices in order to attaing
desired outcomes.
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TASK 2
P2 Prepare a continuous improvement plan based on the review and critique of operations
management principles within an organisational context
Source Anticipated Outcome Recent performance
level
Improvement in
strategies
Employees Due to problem of
change there is lack of
new technology in
organisation, hence it
creates chaos in
organisational
development and
enhancement.
Due to lack in
adoption of changes,
employees do not
give their best in
organisational
development. They are
not interested to do
work in same manner
always.
In case of XYZ
organisation there is
need to adopt new
changes which
occurred in day to day
market scenario at
each and every stage
and before launch a
new product into the
market.
Management In the scenario when
lack of advanced
technology present in
organisation then
management have to
work in effective
manner with existing
methods and tools
(Fleming and
Koppelman, 2016).
Due to the lack in
advancement in
management
techniques it creates
dissatisfaction in
employees because
they not give proper
results.
To improve the
performance of both
employees and
organisation there is
need to introduced
new and interesting
way of working to the
potential employees so
that necessary results
should be accomplish
in organisational
development by
creating their more
interest in work.
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Effectiveness of the continuous improvement plan: Continuous improvement plan is the plan
which help in understand problems in depth and find out the root cause of that problem and then
find out the potential solution of that issue (Weglarz, 2012). That process takes time because
improvements takes time in organisation to adopt and according to them apply in organisational
development and individual also. In case of XYZ corporation it faces the problem of adoption of
new changes in their organisation so in that case both organisation and individual cannot give
their best in works and proceedings. Due to lack of changes employees not give their proper
contribution and remain always bored from existing methods and techniques which is in use of
organization system from a long time. In same case the management is not able to manage
activities properly because they need advance methodology to understand mind of young
generation workers. To reduce that problem, organisation has to access the various employees by
different methods and work to improve their motivation level so that they can give their best in
organisational development. Changes is the major problem in organisational development and its
enhancement so to remove that problem necessary steps should be adopted so that effective
results should be accomplish. So all reliable principles and laws should be work in organisational
effectiveness and overall contribution of each and every principle helps in organisational
development and enhancement.
Kaizen Approach:
The firm could also use Kaizan approach to attain continuous development. This
approach works on the fact that organisation could use small incremental changes to attain bigger
changes which are positive for the company simultaneously. There are several steps which could
help the firm ensure continuous improvement.
 The firm must first identify opportunities within the market.
 Processes must then be analysed which would contribute effectively in achieving
improvement.
 Then, solution must be effectively formulated and implemented.
 The firm must then analyse the results and standardise the solution to ensure effective
continuous improvement.
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TASK 3
P3 Apply each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project e.g. a business case, project plan, work
breakdown structure
Project life cycle is the process in which specific steps occurs, which includes initial,
planning, executing, monitoring, controlling and closing phases (Jacobs, Chase and Lummus,
2014). In that scenario XYZ organisation aimed to expand its market share by launching a new
product that is 58 inches TV in the market. For successful implementation of that project there is
need to follow the proper steps. These steps help in successful completion and for effective
results acquisition in organisation. In case of home appliances people wants innovation at very
rapid pace so for satisfy their needs and wants various kind of strategies should have to follow.
Project life cycle ( PLC):
Project life cycle is the very important tool to determine the stage or phrase in which
product at present and important decisions should be taken on that stage. There are four major
steps that helps to manufacture and deliver to consumers whether it is good or services. In PLC
firms seek knowledge and important insights and accordingly develop products and services to
get success in market. These are the stages of PLC as follows:
1. Initial stage: It is the first and foremost stage in whole PLC process in which
identification of wants and needs of potential consumers should be observed (Kerzner
and Kerzner, 2017). It defines entire processes which are required for starting a new
project. In case of XYZ corporation, it observing needs and important views of their
customer aimed to expand its market share in TV line and launch a new product that is 58
inches TV. It is the most important stage in which brand awareness and insights about
developing a product and services should be observed to get better results. In case of
XYZ corporation it by different types of surveys identify needs of consumer and on
behalf of that plan to expand its market share. In this regard, first stage of PLC allows
project-makers for utilising organisational resources to complete a project.
2. Planning stage: This stage of PLC includes 50% of entire process of developing a new
project. It entails the scope and objects behind launching a new product at marketplace.
As per present project which is based on launching a new TV by XYZ Organisation, it is
essential to develop WBS structure. Project makers need to define roles and
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responsibilities to each team-member as well as time period, under which they have to
complete the same.
3. Project execution stage: In this stage, after completing the initial phase and develop
planning, project team of XYZ needs to concern on how to execute it in appropriate
manner. It includes activities like managing stakeholders’ expectations, develop
coordination between people and company’s resources, perform other activities for
project developers etc.
4. Managing, controlling & closing stage: It refers to last stage of PLC which involves
tracking, monitoring and reviewing each activity for project completion. By tracking
record, performance management, cost and sales forecast, risk plan and more, managers
of XYZ can execute project more appropriately.
Business Case:
Company overview XYZ deals in electronic market of UK and offers a large
variety of products like- heater, washing machine, geyser and
more.
Mission statement To grab attention and retention of loyal customers towards its
electronic products.
Scope In order to expand business market, XYZ is going to enter
into TV marketplace. For this process, it seeks to launch 58”
TV set which includes entire new features, that holds
attention of people. As people always want to get innovative
products especially in entertainment area. Therefore,
launching such a new product, give opportunity to respective
company to increase its market share and gain high
competitive advantage.
Resources For developing a TV set, XYZ needs a team, under which
every member is high skilled, adequate amount of finance,
technology, communication and distribution channels etc.
Time To manufacture and launch TV set, XYZ requires near about
6 months for successful execution.
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Gantt chart: It is a horizontal bar chart developed as a production control tools. It is
used in project management. Gantt chart provides a graphical illustration of a schedule that helps
to plan, coordinate, and track specific tasks in a project (Martins and Martins, 2012). In XYZ
organization it shows relationship between different activities and time duration as follows:
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work break down structure: A WBS is key component to manage team work by help of
organise various sections (Mir and Pinnington, 2014). For organizing and getting effective
results, XYZ organization take the help of WBS bifurcation of works into small parts so that
everyone can do work with effective manner with advance technology.
TASK 4
P4 Review and critique the effectiveness of the PLC in application to the chosen project using
appropriate theories, concepts and models
In organisation effectiveness should be judged on many considerations and methods with
techniques. Under this process, systems dynamics methodology consists of that give important
information and insights to develop effectiveness in both internal and external development. In
context with present project, effectiveness of PLC can be developed by implementing various
theories. At initial stage, defining business goals and identifying stakeholder’s interest, give
opportunity to managers of XYZ to develop effective policies and strategies. While for
completing other stages of PLC, project makers of respective company have used the concept of
Waterfall project management theory (Turner, 2014).
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The waterfall model is a clear and concise project management methodology that majorly
consists of five stage that follows into strict order. This model is useful there is the large project
such as manufacturing of the TV. The explanation of this model is as follows:
Requirements: In this, project manager of the XYZ is need to gather all different kind of
an information on basis of which beginning for this project will be initiates. During this stage,
other stage are needs to be planned even without further customer involvement and phase will
not be begin until unless product would be complete.
Design: In this phase, design including internal and external design will be included.
Logical design is possible, when solution is brainstormed & theorised. The physical design is one
of the sub-phrase, when theoretical ideas and schemas is completely based into concrete specs.
Implementation: In this phrase, when programmer assimilates requirements and specs
from the specification from previous phase & produce actual code. In context of XYZ, change
implementation will be led into by making out suitable alteration into products.
Verification: This stage of the waterfall is majorly customer review the product to make
sure that it meet necessary which is laid out at the beginning of any project. In the XYZ, clear
and concise verification would be gather by launching complete product to business customer's.
Maintenance: During this, maintenance phase will be undertaken for this XYZ TV, when
customer's are using this television product, getting bugs from customer's using feedback and
also find out error's out of the product for its rectification.
This theory refers to linear approach of software development that consists a sequence of
steps. It includes gather information and relevant documents by conducting market research. This
would help in adding features as per requirement of TV. Further steps include designing, code
and unit test, performance testing, deliverables and more (Subramanian and Ramanathan, 2012).
All these sequence of events help in launching new product at marketplace, more appropriately.
Furthermore, each stage of the project life cycle must be effectively reviewed using the
leadership and methodology which were used by the firm.
 The first stage of the PLC effectively addresses the activities which is required to be
performed by the organisation. However, at this stage, the firm could have used
principles of Six Sigma in order to effectively enhance the scope of its effectiveness.
 However, the second stage requires the firm to adopt appropriate leadership which is
essential for appropriately allotting tasks to employees. For this, the firm could have
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effectively used democratic leadership. Furthermore, principles of Lean could have been
used too in this stage, which could have reduced the waste incurred by the company in
further processes.
 For execution, the firm must adopt Total Quality management in order to appropriately
enhance effectiveness of this stage along with other activities.
 As for closure, performance measurement techniques could be used to rank performance
and do necessary modifications which could implement the plan more effectively.
CONCLUSION
From the above report it has been concluded that operations management is an important
attribute in organisational development and planning. It helps a firm in planning, organising and
executing a project more appropriately. By understanding the concept of Project Management
Plan and relevant theories, a firm can easily launch its new product in desired place. Along with
this, some theories like performance management, waterfall project management and more, aid a
team in tracking, monitoring and reviewing each stage of PLC plan more effectively.
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REFERENCES
Books and journals:
Turner, J.R., 2014. Handbook of project-based management(Vol. 92). New York, NY: McGraw-
hill.
Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
Process in operations management. International Journal of Production
Economics. 138(2). pp.215-241.
Gunasekaran, A. and Ngai, E.W., 2012. The future of operations management: an outlook and
analysis. International Journal of Production Economics. 135(2). pp.687-701.
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Project Management Institute.
Ramasesh, R.V. and Browning, T.R., 2014. A conceptual framework for tackling knowable
unknown unknowns in project management. Journal of Operations Management. 32(4).
pp.190-204.
Pemsel, S. and Wiewiora, A., 2013. Project management office a knowledge broker in project-
based organisations. International Journal of Project Management. 31(1). pp.31-42.
Beringer, C., Jonas, D. and Kock, A., 2013. Behavior of internal stakeholders in project portfolio
management and its impact on success. International Journal of Project
Management. 31(6). pp.830-846.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management. 32(2). pp.202-217.
Weglarz, J. ed., 2012. Project scheduling: recent models, algorithms and applications (Vol. 14).
Springer Science & Business Media.
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Project Management Institute.
Jacobs, F.R., Chase, R.B. and Lummus, R.R., 2014. Operations and supply chain management
(pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Martins, V.A. and Martins, M.R., 2012. Outsourcing operations in project management offices:
The reality of Brazilian companies. Project Management Journal. 43(2). pp.68-83.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management. 32(2). pp.202-217.
Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
Process in operations management. International Journal of Production Economics.
138(2). pp.215-241.
Turner, J.R., 2014. Handbook of project-based management(Vol. 92). New York, NY: McGraw-
hill.
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