Operations and Project Management: Review and Critique of Operations Management Principles in BHP Group

This report discusses the operations and project management principles in BHP Group, a multinational public company involved in mining, metals, and petroleum. It includes an introduction to the organization, explanation of operation vs operations management, review and critique of operations management principles, analysis of its extent to meet organizational requirements, and discussion of continuous improvement and Lean principles. Course code: Unit 187, Subject: Operations and Project Management

ID
Unit Number and Title Unit 187 –
Operations and
Project Management
Title Review and Critique
of Operations
Management (Part
1

Table of Content
Part 1: Business Report
1. An introduction to chosen organization 3
2. An explanation of operation vs operations management 4
3. A review and critique of the implementation of operations
management principles within the chosen organization 5
4. An analysis of the extent to which the operations management of
the organization in the case study meets the requirements of the
organization 6
5. Discussion of continuous improvement as a philosophy and
describe the Lean principles 7
6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review and
critique of operations management principles within your
organization 8
7. Conclusion 9
References 10
2

1. An introduction to chosen organization
Operation management is the management of the business to develop the
efficiency and effectiveness within an enterprise. It changes the unfinished goods
into the finish goods and increases the profit of the enterprise. Cooperate
management try to match expenses with incomes to earn operating profit. It includes
using materials from staff, equipment and techniques. The management team
purchase, create and send goods to customers on the basis of customer
requirement and capability of the company. Operations control handles various
strategic issues, which includes figuring out the scale of producing plants and
venture control methods and enforcing the shape of facts technology networks.
Other operational problems encompass the management of stock stages, which
include paintings-in-method stages and raw substances acquisition, excellent
manipulate, substances managing, and upkeep guidelines. Assignment control
includes the planning and organization of a business enterprise's assets to transport
a selected project, occasion, or obligation in the direction of of entirety. It is able to
contain a one-time venture or an ongoing pastime, and resources managed consist
of employees, budget, technology, and intellectual assets. The first part of the report
discussed about the operations conducted in BHP Group and the second part of the
report critically analyzed the project management of BHP Group. BHP Group is
also known as BHP Billiton. It is a multinational public company which head office is
situated in Melbourne, Victoria, Australia. It involves in mining, metals and
petroleum. It is the world famous mining company on the basis of market
capitalization. BHP is indexed as one of the 90 fossil gasoline extraction and
advertising companies responsible for two -thirds of world greenhouse gas
emissions on account that the start of the industrial age. BHP institution restricted
operates as a sources business enterprise in Australia, Europe, China, Japan, India,
South Korea, rest of Asia, North America, South the united states, and
internationally. It generates via Petroleum, Copper, Iron Ore, and Coal segments
(Ashkanani and et.al, 2022). The business enterprise involves in the exploration,
improvement, and manufacturing of oil and gas residences; and mining of copper,
silver, zinc, molybdenum, uranium, gold, iron ore, and metallurgical and power coal.
It's also concerned in mining, smelting, and refining of nickel; and potash
development sports. Similarly, the company offers towing, freight, advertising and
trading, marketing help, finance, administrative, and different offerings. It is a double
listed public company. The BHP Group makes special strategy for employees ,
shareholder, contractors and suppliers. The objective of BHP Group is to conduct the
business activity in according to government policies and legal requirements to
maximization of the company profit. It creates the future value through expansion of
natural resources and focuses on the consumer needs. The BHP Group generates
revenue 10% from direct business and 90% from materials sold by enterprise. About
90000 employees work under the BHP group. It is the merger of two companies that
was build in 2001. It was find for oil in 1954, but generating the oil and petroleum
after in 1964. During the collaboration, BHP Billiton become the biggest varied
3

assets agency in the global, with started in some 20 international locations (Bai, J.
and et.al, 2018).
2. An explanation of operation vs operations management
Operation- It is a detail study the consumption of materials and reduces the
wastage. Operation manager use different strategies such as optimal order quantity
and determines how much stock order to production and how much stock to retain
on year ended.
Operations management- It is very difficult function of operations
management to manage the stock through supply chain management. It works with
efficient manner that analysed the national and international trends, consumer
demand and available materials for production. It includes different techniques such
as purchase of raw materials and utilise of workers with efficiently manner so that
provides the goods consumer requirement (Farias Oliveira Cardoso and et.al, 2018).
Basis Operation Operations management
Definition Operations involves the day
by day responsibilities
referring to the every day
practices which might be
regarding the development
of any items or products of
the enterprise, the control of
income and stock materials
inside the enterprise
Operations control totally
interrelated to the objective
that include coping with and
retaining the production
performance within the
business. Because the
control of operations gives
the company with the
capability of preserving
universal business
efficiency and the faults or
problems, if any that the
management feels to
dispose of from the
commercial enterprise.
Profitability The objective of BHP Group
is produced the oil and
petroleum and delivered to
the consumer and earn
higher profit of the
stakeholders.
The BHP group
reconstruction of the mining
products that consumes the
materials in better manner
by the organisation. The
consumes better materials
of development helps the
company to earn more
income in the future.
Control It controls the total
production of the company.
It makes plan to control the
production.
4

Activities It determines that the
company produced the
product at minium cost.
It includes planning,
designing and supervising
of production activities as
well as non production
activities.
3. A review and critique of the implementation of
operations management principles within the chosen
organization
Operations management includes approaches like right making plans,
stringent pleasant controls, and right worker placement which all bring about
merchandise/services that meet the wishes of customers. It works as a production
management function that produced the goods and services in efficiency manner.
The main objective is profitability and better quality. Every organization has
functioning that make certain goods or services reach consumers (Hu, and et.al,
2022). It is set managing every operation to make it as green as feasible and aid
corporation dreams. This enterprise technique focuses on common holistic
procedure improvement sports to get higher effects such as small stock, decreases
work-in -process, better utilization of equipment and workforce and good quality
materials. There are some principles that are used by BHP Group they are as follow:
1. Reality- Operations and management need to concentrate on the big trouble
in place of little tools which might be part of a hassle (Mehra, 2018). The BHP
Group focuses the production of mining and petroleum rather than techniques
which are used in production. After critically analysed the problems it gives
solution as soon as possible.
2. Humility- It plays an important role in production. The management should
understand all the limitations that relates to trial and reduced at all expenses.
This process saves the time and money till future. This precept is critical as
according to the angle of personnel. It is essential to mange agency's
employees in conjunction with the products (Migdadi and et.al, 2019). The
managers of BHP Group need to create a lifestyle of accepting errors and
construct reference to them in order that, the employees will paintings with
honest and positivity.
3. Enterprise- All the activities of productions are connected with each other that
all components should be foreseeable and compatible. Without planning and
controlling the organisation does not work properly. The BHP group should
give focuses all the elements of oil, petroleum and mining generation that
generates high profitability of the enterprise.
4. Accountability- The manager of the enterprise that manages the operation
should be accountable. The BHP Group should follow all the rules and
regulation that applies on the company. The standards help to determining
5

problem in initial stage of production oil and petroleum (Mishra, and et.al,
2019).
5. Change- This principal plays an vital role in operations management. Trade is
welcome in operational problems. New solutions should be welcome for
continuous operational upgrades to be feasible. It's far helpful to include
present day alternate control methodologies such as Agile, Six and Lean. IT
operations control, the subset of producing that manages production systems,
is a important enterprise feature. The BHP group changes the product as per
the consumer need and dynamic environment basis.
6. Quality control- In every organisation should maintain the quality in the
product. The quality of the product should be checked in according to quality
standards. The quality management should focuses the areas such as
materials management, refining oil and warehousing. The BHP group used
this principal and produced good quality product with minium cost.
7. Success- The customer satisfaction is the main objective of the company. The
company can survive till long term when changes the product time to time in
according to consumers need. It is important principle of the BHP Group.
Fulfilment comes when every and every efforts provide the favoured
outcomes. So all the activities need to be perform in such way that client will
come back to buy the product. They want to put greater efforts till the
company does not preserve consumer dependable.
8. Causality- Operational management includes various techniques such as
enterprise planning system, manufacturing execution system and material
requirement planning system and set up other standard that improves the
quality of product.
It has critically analyzed, that the operations management is based on some
principles that is necessary of BHP Group. The company analyzed all the problem
before refining the petroleum and oil. It follows all the legal requirement and
standards that applies on BHP Group (Mohanty and Vyas, 2018).
4. An analysis of the extent to which the operations
management of the organization in the case study meets
the requirements of the organization
Operations management is very important for the BHP Group. To used of
principles of operations management produced and refining of oil and petroleum at
higher quality. The following changes are made by BHP Group :
 After introduced the new operating model it became a world -class famous
company that concentrate on geographic operating regions. These changes
were improved the product quality.
6

 The centre of the new model might be belongings dedicated to safety, volume
and value enabled by functions included globally and largely co-positioned
with the belongings (Plaskova and et.al, 2020).
 The company preserve their place of work efficaciously. This can keep them
in coordination and stick to the intention of pleasant manipulate in operations.
The organisation have right relations with international providers and
personnel to take the best use of their merchandise and abilities respectively.
 The principle of operations management helps increasing the value of
shareholders in the future. They generates higher profit and profit distributed
the shareholder as a dividend. The BHP Group adopts various strategy that
helps company in planning, organisation, implementation and quality
assurance.
 The centre concepts of BHP’s working version are simplicity and
standardisation. This includes obligatory overall performance necessities,
commonplace organisational layout, commonplace systems and tactics, and
common making plans and reporting. In spite of running and selling products
in different many geographies and markets, given the relative similarity of
extractive operations and the scale of Tier 1 assets, there are vast benefits in
standardizing operating methods, dealer contracts and system throughout the
employer (Raut and et.al, 2019).
 The another companies that engages in natural resources and commodities
business, It has limited sources to control. Prices of the products are decided
by the supply and demand curve. Refining company focuses on the cost-
benefit approaches. BHP Group method of proudly owning best Tier 1 groups
enables it to use its international-class working standards to attain a number
of the bottom costs in the enterprises.
5. Discussion of continuous improvement as a philosophy
and describe the Lean principles
Continuous improvement is very essential tool in mining and refining
business. It seeks to improvement every stages of the business. It focuses on
valuable activities that creates the best value for the consumers while decreases as
many waste activities as possible. It is also known as learning improvement
activities. Many of the enterprises view the learning improvement as a temporary
activity. The objective of continuous improvement is to permit groups to
systematically find methods to supply extra cost to their customers faster. It does this
via presenting a systematic, scientific technique to training non-stop development as
part of day by day paintings. Learning principles are those tools and techniques that
control the wastage in an enterprise (Tetik and et.al, 2018). These principles helps in
reduce the refining cost. The basic principles of the continuous improvement
techniques are as follow:
7

1. Customer value- It is the basic principle that defines the value of the
customer. Value means the amount pays by consumer in return of product or
services. Occasionally clients might not recognise what they need or are
unable to articulate it. That is specially commonplace in relation to novel
products or technology. There are numerous strategies including interviews,
surveys, demographic information, and web analytics that assist you to
decipher and discover what clients find valuable. By using the usage of these
qualitative and quantitative strategies you may uncover what customers want,
how they want the product or service to be introduced, and the rate that they
come up with the money for. The HSB provides the goods or services that
needs to the customer. The main objective of the company to provides the
services at minium cost with better quality.
2. Mapping the value stream- The second Lean precept is figuring out and
mapping the value circulate. In this step, the aim is to use the client’s value as
a reference factor and perceive all the sports that make a contribution to these
values. Activities that do not add cost to the quit patron are taken into
consideration waste. HSB group follow this principle and reduces the cost that
incurs unnecessary to refining the petroleum.
3. Create flow- After decreases the unnecessary cost from the value stream, it
determines that the remaining activities work efficiently such as Breaking
down steps, reconfiguring the production steps, leveling out the workload,
growing go-purposeful departments, and education employees to be multi-
skilled and adaptive. HSB Group ensures the employees that all the
necessary activities works smoothly.
4. Establish pull- On this pull based totally precept, it's far ensured that the
inventory and the WIP within the production is constrained only to the desired
amount and that the considered necessary amounts of procedures regarding
stock and wok in progress runs easily. This essentially ensures that the
refining of petroleum within the needed portions on the place in which they are
needed creating efficiency inside the employer.
5. Pursue perfection- The unnecessary costs are removed with the help of
above steps. It is the most important technique among all the above steps
given. It is important step of the company. Every worker ought to attempt in
the direction of perfection while turning in products based totally at the client
wishes. The organization must be a studying enterprise and always locate
methods to get a little higher each and every day (Wu, 2019).
6. A continuous improvement plan, including your justified
recommendations for improvement, based on your review
and critique of operations management principles within
your organization
8

Non-stop improvement plan includes the set of strategies that are applied to deliver
modifications and adjustments in small ranges, convey continuous changes in the
products, offerings or the approaches with right concurs, critiques and suitable
important movements. The continuous improvement plan for HSB Group as an
employer can be formulated as follows:
Plan- It way creating on an opportunity and making plans for trade. With non-stop
making plans methods, HSB Group can get ahead with the understanding of the
market wishes and making plans upon its future products and activities as in line with
the call for and wishes of its clients.
Do- The enterprise should need to do practices to come changes into activities. The
activities should perform in short period that the innovation changes will be start. The
company adopt strategies for the improvement of refining petroleum.
Check- Every change in the organization activities should be monitor and controlled
with efficiently and effectively manner. The HSB group should monitor all the
activities in better way so that can reduce the mistake that harm of the company.
Act- It can be said that all the activities are performed by the organization in
efficiently manner it means BHP Group is aptly follow the principles of operations
management.
7. Conclusion
In the above report, it can be said that the two basic concepts define the daily
operation activities of the firm. The principles of operations management helps to
reducing the abnormal activities which is not useful for the company. The operation
management plays an important role for the BHP Group. The activities of the
company conducts with efficiently and effectively manner with the help of operational
management. It provides the tools and techniques to the company.
9

References
Ashkanani and et.al, 2022. Impact of Motivation and Workload on Service Time
Components: An Empirical Analysis of Call Center Operations. Management
Science.
Bai, J. and et.al, 2018. Operations research in intensive care unit management: a
literature review. Health care management science, 21(1), pp.1-24.
Farias Oliveira Cardoso and et.al, 2018 December. Performance indicators in
humanitarian operations from the beneficiary perspective: a systematic literature
review. In International Conference on Production and Operations Management
Society. (pp. 283-292). Springer, Cham.
Hu, M. and et.al, 2022. Demand pooling in omnichannel operations. Management
science. 68(2). pp.883-894.
Mehra, S., 2018. Using asset-based criterion to implement quality management
philosophy in service operations to enhance business performance. International
Journal of Quality & Reliability Management. 35(10). pp.2195-2211.
Migdadi and et.al, 2019. Identifying the best practices in green operations strategy of
hospitals. Benchmarking: An International Journal.
Mishra, D. and et.al, 2019. Current trends in disaster management simulation
modelling research. Annals of Operations Research. 283(1). pp.1387-1411.
Mohanty, S. and Vyas, S., 2018. It operations and ai. In How to Compete in the Age
of Artificial Intelligence. (pp. 173-187). Apress, Berkeley, CA.
Plaskova and et.al, 2020. Dealing operations as a means of improving the efficiency
of the financial management of a production company. In Complex Systems:
Innovation and Sustainability in the Digital Age (pp. 61-70). Springer, Cham.
Raut and et.al, 2019. Linking big data analytics and operational sustainability
practices for sustainable business management. Journal of cleaner production, 224.
pp.10-24.
Tetik and et.al, 2018, June. Impacts of an assembly kit logistic solution in renovation
projects: a multiple case study with camera-based measurement. In International
Annual European Operations Management Association Conference. European
Operations Management Association (EurOMA).
Wu, S.J., 2019. Assessing the individual and synergistic effects of quality
management practices on operations performance. International Journal of
Productivity and Performance Management.
10

Table of Content
Part 2: Project Portfolio
Project Title 12
An overview of the case study you have been given 12
An explanation of each stage of the PLC that applies to your
selected project, including supporting documentation for each
stage (e.g., business case, the project plan, cost-benefit analysis
and work breakdown structure):
 Project initiation 12
 Project planning 12
 Project execution 13
 Project closure 13
Analysis of the project methodologies and tools used 13
Review and critically evaluate the effectiveness of the PLC in
application to your project using the appropriate theories models
and concepts 14
References 15
11

Project Title
The aim of this project is to decreasing the movement of employees from the
buildings during the lunch time and providing the benefits of employees to improving
the healthy lifestyle. The enterprise has worker in a range of various roles, including
office employee and factory employee (Devi and et.al, 2022).
An overview of the case study you have been given
This case look at pursuits at an employer which includes 1250 personnel as a mid-
sized enterprise. The goal of the business enterprise is to decrease the congestion
that takes location due to continuous movement of the company group of workers all
through the lunch hours within the premises. Because it impacts the businesses
photo because of the continuous disturbances and congestion's and impacts the
running performance and the operating environment of the enterprise. The case
observe also offers with retaining a healthy way of life for its staff contributors and
workers as it is the company social responsibility of the employer and will also
determining the corporation in decreasing the absenteeism of personnel inside the
enterprises. The enterprise want to formulate upon a challenge shape to address this
problem and to improve the working surroundings inside the enterprise. It also
desires to convey upon some techniques and a best plan of action to help the
workers in imploring their life-style and operating performance (Kim and et.al, 2019).
An explanation of each stage of the PLC that applies to
your selected project, including supporting documentation
for each stage (e.g., business case, the project plan, cost-
benefit analysis and work breakdown structure):
 Project initiation
It is the first step of the project , in this step company determines the need of the
project and how it is benefit for the company. During this step company takes
important decision such as resource requirement. This step accepting new views
and thoughts that are beneficial of the enterprises. This step helps the Cromwell
tools to determining the objective and materials for giving the catering facilities in the
premises. It provides the best guidelines of the company to achieving the desire
objective.
 Project planning
This step determining the time duration and stages to completing the project. The
project planning includes evaluates the objective, deliverables determining,
scheduling and planning project. It evaluates the needs of the customer and
shareholders. The project manager determines the resources are available to
complete the project. It evaluates the completion cost of the project. The
organization starts the project planning with budgets. Then company decided how
12

the planning process taken into the account so that workers will do the work with
proper efficiency.
 Project execution
It is the third step of the project life-cycle. The manager determines the work is done
in according to planning. It is time taking and difficult process. This step starts when
the work gets completed. This step of assignment execution includes the release of
the project using thee records that the agency secured from the first step of
assignment making plans. On this step, the task is ready to be done as the entirety
that the crew or the organization planned upon has been converted into actual
existence and has been placed into action (Kokkaew and et.al, 2018). To use of this
step the organisation determines all the activities within the firm executed properly
and tools and techniques help in improvement ideas that are relates to canteen
facilities and the employees lifestyle.
 Project closure
It is the last step of the project life cycle. This step determines the work has completed in
according to plan and all the activities are executed properly. It gives the opportunities of the
project management to ensure the project will be successful in the future. This process will
be beneficial for the enterprise in the given case study because this step will analyze the
project gives the benefited to the enterprise . The project will be successful only when the
absenteeism of workers has reduced (Li and et.al, 2020).
Analysis of the project methodologies and tools used
Project methodologies are set of rules and principles that are follow by the project
manager to ensure the enterprise has achieved the desired objectives. There are
various management project methodologies that assist the better work of the
employees. The organisation uses some methodologies and tools within the
enterprises.
1. Waterfall methodology- It is very simple and clear method of all the project
management. It is traditional approach. In this methodologies the enterprise
moves the another phase only when the first phase has been successful
uploaded. It is useful for the manufacturing and construction enterprises. It
determines the planning and scheduling process with the help of Gantt charts.
This methodology does not match with the given case study because the
result does not match with the expectation.
2. Agile methodologies- This methodologies define the collaboration with the
employees. This methodologies starts when planning and work management
have been completed. It became beneficial in the given case study because it
accepts the changes in the project.
On the above two methodologies are used by the organisation with efficiently and
effective manner. To use of this methodologies the enterprise have completed the
task. The steps of the project management like initiation, planning, execution and
13

closure have been properly executed within the enterprise has reducing the
movement of workers from the premises during free timing.
Project Tools- These tools and techniques help to carry out the business activities
with better way. The project tools such as diagram, charts and documentation
techniques. These gear help the agency to maintain an effective check at the
venture and its tendencies which take location with time. Those also help the
management and the mission managers of the corporation to use the ideal review
and rectify with the necessary changes as an whilst they're needed in the
undertaking. The network diagrams helps to attach the extraordinary steps that are
required in the completion of the assignment (Manjunatha and et.al, 2020). It
additionally indicates the inter dependencies inside the unique steps of the
undertaking.
Review and critically evaluate the effectiveness of the PLC
in application to your project using the appropriate
theories models and concepts
The project life cycle is the step through which a project is running. The steps of the
project life cycle is based on the the project type. The steps of the project life cycle
plays a vital role in the enterprise. These are important steps which should be follow
to complete the project. In the above case study, project life cycle played an
important role to initiate, process and analyzed the project of on site catering
services and maintain the lifestyle of the worker and decrease the workers of the
enterprise. It analyzed all the problems related to project work and provides the basis
to solve the problems and improve the result of the company. The organisation are
used to two methodologies such as waterfall and agile methodologies (Oquendo-Di
Cosola and et.al, 2020). The organisation are used the waterfall methodology that
helps the project is distributed into small sizes to finish the task in the better way.
The agile methodologies are used to check the project is running in the desired
manner or not.
14

References
Devi and et.al, 2022. Machine Learning: Life Cycle and its Techniques. International
Journal of Research Publication and Reviews, 3(5). pp.616-619.
Kim and et.al, 2019. Identification and reduction of synchronous replacements in life-
cycle cost analysis of equipment. Journal of Management in Engineering, 35(1).
p.04018058.
Kokkaew and et.al, 2018. Comparing life cycle cost of public and PPP transportation
infrastructure in Thailand: an empirical evidence. In ICCREM 2018: Construction
Enterprises and Project Management. (pp. 34-40). Reston, VA: American Society of
Civil Engineers.
Li and et.al, 2020. The economics of green buildings: A life cycle cost analysis of
non-residential buildings in tropic climates. Journal of Cleaner Production, 252.
p.119771.
Manjunatha and et.al, 2021. Life cycle assessment (LCA) of concrete prepared with
sustainable cement-based materials. Materials Today: Proceedings, 47. pp.3637-
3644.
Oquendo-Di Cosola and et.al, 2020. An environmental life cycle assessment of living
wall systems. Journal of environmental management, 254. p.109743.
Pombo and et.al, 2022. Life Cycle Assessment for the design of a pilot recovery
plant. In Assessing Progress Towards Sustainability. (pp. 273-288). Elsevier.
Przybyś, R.A., 2022. Life cycle cost analysis of profitability on the example of a
tenement house from the interwar period (Doctoral dissertation, Instytut Inżynierii
Budowlanej).
Susanti, B., 2020. LIFE CYCLE COST ANALYSIS OF A PBC PILOT PROJECT FOR
ROAD IN INDONESIA (Similarity).
15