Operations and Project Management

This study material provides an overview of operations and project management. It covers the principles of operation management, continuous improvement plan, and stages of PLC. The content includes a business case, project plan, and work breakdown structure. Get access to solved assignments, essays, and dissertations on operations and project management at Desklib.

Operations and project
management

Table of Contents
INTRODUCTION.................................................................................................................................3
TASK1..................................................................................................................................................3
P1. Critical review regarding different principles of operation management from organisation
context...............................................................................................................................................3
TASK2..................................................................................................................................................7
P2. Continuous Improvement plan based on review..........................................................................7
TASK3................................................................................................................................................10
P3. Different stages of PLC along with business case, project plan and work breakdown structure 10
TASK4................................................................................................................................................12
P4. Effectiveness of PLC in respect to application of project..........................................................12
CONCLUSION...................................................................................................................................13
REFRENCES......................................................................................................................................14

INTRODUCTION
Operation management plays vital role in overall working of organisation. Further, it
is a way through raw material converted into finished products in order to deliver the goods
to end user. Therefore organisation uses different types of innovative and creative skills for
further improvement in standard quality of products (Fernández-Sánchez, and Rodríguez-
López , 2010). During the whole procedures management team formulate different action
plans in such manner so that operation department carried out their tasks which leads to
increase profits and productivity both. Under this assignment the company which is preferred
i.e. Haier group which is top most multinational division deals in electronic appliances like
washing machines, refrigerator, water heater and gas stoves and famous for their world class
quality. Now they are planning to expand their business by entering into market of television
which is large sized having minimum sized of 58’ inches. Therefore project management has
to predict all the resources which needed to implement organisation objective successfully.
TASK1
P1. Critical review regarding different principles of operation management from organisation
context
Meaning of operation management: -
Operation management is a technical term which can be described as process of
transforming the raw material into finished products so that order can be delivered to
costumer on specified time period. Further it is a responsibility of ensuring that all the
operation is efficient in terms of using available resources and satisfying customer demand.
At the time of manufacturing goods or services different types of decision has been taken out
in relation to formulation of strategies, product design, inventory control and maintaining
proper quality standards. All these require the ability to observe current circumstances and
evaluate better solutions in order to improve efficiency and effectiveness of various
operations.
Operation management is a complex process in which roles and responsibilities are
delegated to different division according to their specialisation (Barratt , Choi and ,2011).
Team work and coordination among superior and subordinate is important in order to achieve
mutual objectives. Operation manager utilised talent and skill of available employees in order

to achieve daily targets of organisation which ensure good outcomes in future. Different
principles of operation management are described below:-
 Reality:- This principle state that organisation must focus on problems and issues
instead of techniques, because adopting particular techniques or tools cannot consider
as universal solution for every situation.
 Organization: - process used in manufacturing are interrelated with each other and all
the elements and factor used under it are consistent and predictable in order to achieve
good outcomes in the form of profits.
 Fundamentals: - under this principle Pareto rule is applicable to all the operation of
business in which 80% of success is derived from strict rules and regulation in
maintaining records and decorum, and 20% of success is coming from applying new
techniques and tools in manufacturing process.
 Accountability: - This principles says that manager must establish particular rules and
assign responsibilities to their subordinates and regularly check whether goals are met
or not.
 Variance: - If variances are running in proper manner then in future it become the
source of creativity.
 Causality: - This is important principle which state that problems are sign of
underlying issues so if the causes are not sort out then same problem will appear soon.
 Managed passion: - This principle state that efforts of employees are not enough in
performing task of organisation. Therefore it is duty of manager to build such
enthusiasm towards work which becomes passion for individual at the time of
completing goals.
 Humility: - This principle says that instead of using costlier trail error Method
Company must acknowledge their limitations get help and move on.
 Success: - It can be achieved only when the goods and services are prepared
according to the demands and wants of customers which satisfy them fully. Apart
from it other factors of environment must be consider adequately.
 Change:- This principle state that organisation need not stick on one theories and
approaches but change it according to the requirement of external environment. For
example Haier group planning to come in television sector so in order to gain success
then they need to scan the environment to know rivalry strategies and then launch
their product by using effective tools and mechanism.

Therefore, it is important for organisation to adopt all the above principles of operation
management must be consider by Haier Group in order to strengthen the product portfolio
of company and enhance market share and profitability both.
SIX SIGMA
It is one of the important techniques which are used by manager of company at the
time of launching any new products and services. The main objective behind it is to
strengthen the product division and enhance the market share and productivity. Haier is
one of the multinational company engaged in different business sector but in order to fix
their position in television sector management need to adopt this tools which is divided
into two parts i.e. DMAIC and DMADV. DMAIC is that techniques which is used at the
time of making any changes or improvement in existing products on the other hand
DMADV is used when company is planning to launch new product with innovative ideas.
Therefore Haier must choose DMADV technique at the time of launching large sized
television in business world which described below:-
 Define: - This is the first step in which all the problems and issues are analysed on
the basis of which final planning has been formulated.
 Measure: - whatever the problems observed measured the possibility of getting
success at the launching new product in market through the use of some tools and
techniques which remove all the barriers.
 Analyse: - At the time of implementing any projects different tools and techniques
has been adopted in order to achieve the organisational objectives within an
specified time period.
 Design:- This step suggest that after analysing the problem choose the best
alternatives through which company is able to satisfy the needs and demand of
target audiences.
 Verify:- It is one of the important step in which company takes the feedback from
customer in respect of their all over experience in respect of particular goods and
service and if any improvement required then corrective steps must be taken on
time.

Figure: DMAIC Source: DMAIC Approach, 2016
LEAN PRINCIPLES
Lean principles help organisation in accomplishing their business goals and it
is broadly classified into five steps which stated below:-
 Define value: - This is that stage which discuss about criteria on the basis of
which price is decided for product which costumers are ready to pay
(Browning ,2010). Investigator collects different data from external market
that assists in fixing price and provides profits in future.
 Mapping value stream: - this is second step in which demand of customers are
analysed on the basis of which systematic framework has been prepared. The
main objective is to reduce cost of production and optimum utilisation of
resources.
 Create flow: - whatever the wastage is there are automatically removed and
focus is on finding such method or mechanism which facilitates smooth flow
of production in efficient manner.

 Establish pull:- This step suggest that company able to find out the optimum
method and then concentrate on mandatory activities that allows them to
maintain the stock of inventory and remove all the useless stock.
 Pursue perfection: - It has been said that no company is perfect in each and
every matter. Therefore it is essential for every organisation to search all the
changes coming in business environment and execute such strategies which
leads to continuous improvement in their product segment.
Figure: Lean principles Source: - Lean principles packaging, 2018
Importance of Six Sigma and Lean Principles
Different points are there that describe all over significance of the two concepts which
described below:-
 Effective technique in making continuous improvements in existing products which
maintain their sustainability for longer period of time.

 Helps in reducing cost of production, maintain quality standards and enhancing
growth and productivity of business.
 Strengthens the product portfolio which leads to accomplishment of planned projects
in efficient manner.
TASK2
P2. Continuous Improvement plan based on review
Meaning of continuous improvement:- This term can be described as way through which
company is able to make some changes in their products segments by removing all the
shortcoming present in that goods (Clarke ,2012). Feedback and through active participation
of target audiences company enable to designed product with attractive packaging and
standards quality for which customer is ready to pay premium prices.
Continuous Improvement Plan
Date:-
Provider:-
Source Anticipated
outcomes
Current level of
performances
Improvement in
strategies
Arrangements of
promotional events
Under this step Haier
marketing team is
serious regarding the
use market
promotional tools
because of which
customers are not
aware regarding new
and upcoming
product of company.
Haier market share is
good because of
dealing in different
electronics
departments but
coming in new area
and establish trust
among people
regarding that one is
complex task.
There is need for
strategic level to
spend more amount
on marketing
promotional tools
like advertising,
social sites and
internal networking.
After Sales services According to data
and research
organisation is fail to
provide good after
Terms and condition
related to warranty
period is not enough
which is about 8
There is a need to
formulate such
policies and
strategies related to

sale service to target
audiences
months. after sale services
which satisfy the
wants of customers.
Designing tools In today dynamic
environment
different techniques
has been coming
because of which
people wants
innovation and
digital tools in
television sector for
more entertainment
and convenience.
Selection of effective
tools that attract
customers is complex
procedure which
requires investigation
and research in order
to get good ideas.
Decision in respect
of design framework
is one of the
expensive and critical
operations in which
company need
technical experts who
give their
professional advices
in order to get
effective designing in
television sectors.
Usability of continuous improvement and its effectiveness from company point of view
Continuous improvement is a compulsory activity which employees have to perform
on daily basis if they want to implement the above project successfully. Research department
require to scan all the digital and creative changes arises in external environment on the basis
of which they can planned for actions which they require to taken in future. Presently Haier
Group is planning to launch large screen television in order to expand their business and they
require to add some features in their goods in order to attract the customers. Therefore with
the use of digitalisation and innovative ideas in products allows them to become top most
industry in this sector and able to increase brand image also.
Apart from it organisation must focuses on after sale services terms and conditions
which must be done according to the requirement of customers. Further marketing team
formulate strong strategies at the time of using promotional tools like advertising, road shows
and exhibition in order to create awareness among large audience regarding the launch of
products.
Strategies used for effective implementation of continuous improvement plan

Different strategies have been used by organisation in order to accomplished organisation
objectives and changing customer thinking in regard to brands in effective manner which
stated below:-
 Effective communication: - Company manager always maintain good communication
with every individuals who working in premises. It helps in improving relation
between employer and employee at the time of performing task which leads to
rational decision making.
 Training and development:- Manager of Haier group must organise the systematic
programmes related to training development of all employees in which trainer guide
them all the latest technologies which were used in operation and production of goods
and services.
 Better relations: - Maintaining good relation between superior and subordinate help
in establishing peace and harmony among them. Apart from it, compliance of all legal
practices and ethical attitude in corporate environment enhance brand value and
goodwill of company.
 Retaining employees: - It is utmost responsibility of manager to ensure that needs and
wants of employees are satisfied fully at the time of working with organisation. It
motivates them to work with full efforts and use their skills and abilities in achieving
daily targets of company. Appreciate those who performing well by rewards then
ensure the retention of professional workforce and reduction of employee turnover.
 Scanning external environment: - Top level need to formulated different types of
strategies in order to scan all the changes coming in environment on the basis of
which they make alteration in their organisation structure for better outcomes in
future.
Organisational theories, concepts and models
It is very important for every organisation to use different types of theories and
models in their organisation structure in order to make improvement in their working styles.
Different styles like autocratic, democratic and bureaucratic model which need to adopt by
management team at the planning, organising, staffing and controlling of management
functions. In project management company has to work on some model on the basis of which
all strategies, policies and tactics has been implemented among working force. Management

of Haier Group needs to select certain approach in order to gain competitive advantage over
competitors.
TASK3
P3. Different stages of PLC along with business case, project plan and work breakdown
structure
Haier group is planning to launch big screen television having minimum sized of 58
inches in order to expand the business of company. Proper planning of finance department in
respect of amount incur in this project implementation. Apart from it time, efforts and asset
needed to execute project effectively (DeHoratius and Rabinovich ,2011). Although there are
different alternatives and sources are available and organisation has to choose best method
out of available options. In dynamic external environment different changes has been coming
in customer trends and demand so in order to remain sustain in market they need to make
improvement in the form of creativity and innovation in respected goods and services. This
will help in increase the productivity and growth of business. Further research department has
to collect the data from primary and secondary source according to vision and objective of
company and use all the relevant information at the time of framework of action plans.
Whatever the data gathered used at the time of manufacturing of products so they produced
everything according to customer demand and wants. Different factors and elements can be
analysed by the market observation which include features, price, packaging, quality standard
and durability. Haier planning to introduce big sized television is complex procedure so they
need deep study of market rivalry and also require huge investment in promotion and
advertisement of goods and services. Apart from all these things it is vital for business to
establish all the rules and regulation after considering the legal legislation enforced by
government for the protection of customers.
Meaning of PLC: - PLC is an important concept in marketing which describes the overall life
or stage of product goes through from when it was first introduced in market till it removed
from market. Company at the time of launching new products in market and make some
improvements in existing products then in such case they observe their chances of success
through PLC measurement. That give the idea regarding over all returns and revenue
organisation get from that products. Further it helps the organisation to execute the concept
related to continuous improvement plan in effective manner.
Product life cycle stages

 Introduction stage:- This is the first stage of PLC in which idea related to new product
launch are officially launch in market by using different tools and techniques which
help in ascertaining price and quality of products. This project takes time of at least 3-
6 weeks.
 Growth stage: - This is the stage of PLC in which company is going to earn profit
because costumer is ready to experience the product which leads to high growth and
efficiency in total operation of company. For example when people ready to purchase
the Haier television then they also successful in strengthen their product portfolio. It
takes the time period of 4-6 weeks.
 Maturity stage: - This is one the successful stage during whole duration of PLC where
company winning the hearts of target audience and build strong brand image. Because
of which they are ready to pay premium prices of standard quality provided by
organisation.
 Decline stage:- This is the last stage of PLC in which product is come to end point
beyond which no growth is possible so if they want to remain sustain for longer
period in market then project department need to insert some innovative and creative
methods in their product segment in order to become the customer choice forever.
Figure: PLC Source: Product life cycle, 2018

Work down structure of new product
Basically it is related to project management in which structure of work has been
divided among different departments according to the specialisation of workforce (Martinelli
and Milosevic ,2016). The main objective of doing this is to achieve effectiveness and
efficiency in over all operation management of company. In other word it is consider as
systematic hierarchy of work executed to employees.
Gantt chart:-
It is basically a type of bar chart that describes the whole project schedule. Under this
chart all the activities which are performed must be shown in vertical axis on horizontal axis
time intervals are shown. This is considering one of the best methods of timely completing all
the assignment in effective manner.

TASK4
P4. Effectiveness of PLC in respect to application of project
Haier is top most electronic company whose is planning to enter into new market
segment for which they require to use different marketing tools through which they can
promote goods and services (Karlsson ,2010). Under TV industry there are different rivalry
present in market like Samsung, LG and Sony who already had huge market share and
develop brand image among customers. Therefore it is vital for the staff of Haier Group to
use their skills and abilities in order to provide best services to customers in order to satisfy
them.
Apart from management need to incur more amount on research centre that develop
some creative and innovative methods in their appliances which enhance the value of product
and when they are launch in market customer is ready to pay premium prices. Further, proper
analysis of PLC so that company predict that how much time the product running
successfully in market. Whatever the strategies company is going to adopted under PLC must
be done after different research and observation. Further company must utilise all the
resources in such manner that help in reducing cost of production and increase the revenue
through operations. Managing all the stock, maintaining logistic department so order deliver
to customer at proper time period.
In PLC stages effectiveness in respect of any project can be achieved only when
organisation examine what each stage trying to say and what type of improvement they
required to made in order to remain sustain in external market for longer period. Proper study
of PLC allows company to gain competitive advantage over competitors.

CONCLUSION
It has concluded from whole assignment that operation management is that part of
business which allows them to deliver the finished product in optimum manner. Further,
different technical changes, quality standard, cost reduction methods and logistics
management all are maintained because of different principles used in operation
management. Apart from this project management is a way of analysis all the factors and
elements in such way which help in accomplishment of objectives in efficient manner.

REFRENCES
Books and Journals
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sustainability indicators in construction project management—Application to
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Barratt, M., Choi, T .Y. and Li, M., 2011. Qualitative case studies in operations management:
Trends, research outcomes, and future research implications. Journal of Operations
Management. 29(4). pp.329-342.
Browning, T .R., 2010. On the alignment of the purposes and views of process models in
project management. Journal of Operations Management. 28(4). pp.316-332.
Caniëls, M .C. and Bakens, R .J., 2012. The effects of Project Management Information
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Project Management. 30(2). pp.162-175.
Clarke, H .J., 4Sight Tech Inc, 2012. Enterprise project management system and method
therefor. U.S. Patent 8,306,841.
DeHoratius, N. and Rabinovich, E., 2011. Field research in operations and supply chain
management.
Karlsson, C., 2010. Researching operations management. In Researching Operations
Management (pp. 20-55). Routledge.
Martinelli, R .J. and Milosevic, D. Z., 2016. Project management toolbox: tools and
techniques for the practicing project manager. John Wiley & Sons.
Rothermel, T., Bentley Systems Inc, 2011. Spatial data enabled engineering, construction,
and operations computer-aided design (CAD) project system, method and computer
program product. U.S. Patent 7,958,185.
Walker, J. R., 2016. Introduction to hospitality. Pearson Higher Ed.
Parry, G., Mills, J. and Turner, C., 2010. Lean competence: integration of theories in
operations management practice. Supply Chain Management: An International
Journal. 15(3). pp.216-226.
Ahsan, K. and Gunawan, I., 2010. Analysis of cost and schedule performance of international
development projects. International Journal of Project Management. 28(1). pp.68-
78.
Meskendahl, S., 2010. The influence of business strategy on project portfolio management
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Turkulainen, V. and et. al. ,2013. Organizing in the context of global project-based firm—
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Online:-
Management Theories & Concepts at the Workplace. 2018. [Online]. Available
through:<http://smallbusiness.chron.com/management-theories-concepts-workplace-
17693.html >.