Operations & Project Management Report

This report examines the importance of operations and project management for organizations, focusing on the implementation of Six Sigma and Lean principles. It analyzes the effectiveness of these principles in improving quality, cost, delivery, and safety, and develops a continuous improvement plan using the PDCA cycle. The report also explores the Project Life Cycle (PLC) in the context of Sunshine Drinks, a company launching a new product, and assesses the effectiveness of the PLC based on its suitability and reliability.

Operations & Project
Management

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
P1 Critical assessment of implementing operational principle...................................................3
TASK 2.................................................................................................................................................6
P2 Develop a continuous improvement plan..............................................................................6
TASK 3.................................................................................................................................................8
P3 Project Life Cycle in addition with required supporting documentation...............................8
TASK 4...............................................................................................................................................11
P4 Assessment and review of the effectiveness of PLC............................................................11
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13

INTRODUCTION
Operation management is one of the most important process for an organisation, as it help
them in making continuous improvements to functions that organisation use to perform. Also, this
help them in improving the performance of their employees, with the aid of which they can produce
prime goods and services to their consumers. It help them in transforming stuff in final products and
services, so that organisation can attain their goals and objectives and also gain some profits by
these products and services. For completing this report, chosen organisation for first task is Hot
Point, which is Europe and American based organisation, as use to provide their products and
services of home appliances. Where as for second scenario, the organisation which is used for
conducting it is Sunshine Drinks, which use to provide their products and services in soft drink
industry (Artto, Ahola and Vartiainen, 2016). As they use produce and sell soft drink products and
also have very good reputation at market place. In this report, a study will take place on importance
of project and operation management for an organisation and also on results which they use to pose
after application. Along with this, a discussion will take place on project life cycle and also,
business case will get described in this report. Along with this, in the last solution for serious issues
will also come in study.
TASK 1
P1 Critical assessment of implementing operational principle.
The major aim of operations management is one contrasting process of operations and
marketing, so that they can control and manage the information and use it for making future plans
and strategies for their business. For each and every organisation, it is very much important for
them to follow the principles, so that they can get some positive results and also attain their goals
and objectives. Some of these principles are explained beneath :-
Operation Management Principles
1. Principle of Reality This principles help operations manger of an
organisation in making their focus on tools rather
then issues. This is because, no problem have any
fix solution, therefore it is very much possible
that using these tool can provide better solution
(Fleming and Koppelman, 2016).
2. Principle of Organisation This principle says that, for each and every
organisation it is very much important for them to
make proper coordination between all the
operations of them so that they can accomplish

their tasks as well as objectives effectively.
3. Principle of Fundamental Each and every organisation have some goals and
objectives, for which they use to perform their
operations. Therefore, Hot Point use this
principle, so that their employees can work for
attaining organisational goals and objectives.
Six Sigma : This is a methodology, which an organisation can use for solving the issues and
also for solving the problems which they are facing, and also help them in making improvements in
their operations by the use to different tools and techniques (Gilbert and et. al, 2015). This
methodology is customer focused and also very much popular for solving issues by the use of some
powerful and strong tools. This help organisation like Hot Point in eliminating the errors from their
operations and also help them in reducing the cost of different operations they use to perform.
Different tools of six sigma, which can help organisation in solving issues are as follows :-
Define This the stage where Hot Point have to make
analysis of customer requirements, and have to
produce and provide new products and services

according to it only.
Measure This is the stage where Hot Point use to analyse
their current performance, so that required
changes in up gradations can took place in
production and other operations effectively
(Glukhov, Ilin and Levina, 2015).
Analyse This is the stage where, Hot Point use to make
analysis of issues and problems which they are
facing while producing and performing other
operations. Along with this, suitable solution for it
will get made by them, so that they can solve the
issue.
Improve This is the stage where, organisational manager of
Hot Point use to make improvements to their
operations, so that the issues and problems which
are analysed by them can get reduced.
Control This is the stage where manager use to make
monitoring plans, so that they can monitor the
performance of their employees and also can
improve the functionality of operations.
Critical Evaluation of Principles of Six Sigma:
 It is quite effective for an organisation to include these principles within their operations.
This is because it provides the firm with immense guidance and a work pattern to follow.
However, if not applied accurately, this may result in more disadvantages than benefits. The
most apt reason for the same is that this principle, though customer-oriented, fails to be
flexible or adaptable. One of the disadvantages of these principles is that it takes the whole procedure and system
of the organisation into account, rather than the new product development. However, one
disadvantage of the same is that within these principles, there is no scope for employees
within Hot Point to showcase their creativity or innovation within the procedure of
development of the new product.
Lean Principle : This is a methodology, which is used by organisations like Hot Point, so
that they can cut down the cost of them by eliminating some unnecessary thinks from the

production. This will help them in producing some best quality products and services and also help
them in making some innovative products (Harrison and Lock, 2017). Some advantages which Hot
Point can get by this methodology is given below :-
Define value This is the stage where, customers of Hot Point
use to provide value to the new product offered to
them. This all help organisation in gaining
knowledge that where they have to make
improvement and also how they can cut the cost.
Map Value Stream This is the stage, where for manager of Hoy
Point, it is very much important to make proper
flow of information so that goals and objectives
of each stage of PLC can get achieved.
Create Flow This is the stage, where production of products
and services took place in effective manner and
also help in eliminating several issues, so that
they can produce some quality products and
services.
Establish Pull This stage is same as JIT approach, as in this
manager of Hot Point have to fulfil the needs and
requirements of their customers, so that they can
get satisfied (Kerzner and Kerzner, 2017).
Pursue Perfection This stage says that, it is very much difficult for
an organisation to produce products in same
order. Therefore, Hot Point can adopt new and
advanced technologies, so that quality products
and services can get produced.
Critical Evaluation of Lean Principles:
 An advantage which could be experienced by Hot Point through these principles is that with
proper waste management and top class production, the firm could gain a competitive
advantage within the marketplace. However, these principles demand consistency and with
such complex requirement, internal frustrations of employees are likely to rise.
 Lean Principles could help Hot Point in manufacturing effectively, i.e., without waste and
taking quality for granted. However, there are several factors like strikes as well as

employee absenteeism due to which, these principles could be quite disadvantageous for the
firm.
Both these processes are quite crucial for the company and could contribute to effective and
essential advantages to the new product development. However, seeing the disadvantages of both
the methods, it is crucial for Hot Point to understand their application. The firm must apply Six
Sigma effectively during the delivery of the new product, whereas, lean principles must be an active
yet flexible part of the production.
TASK 2
P2 Develop a continuous improvement plan.
BASIS APPROACH/PRINCIPLE IMPLEMENTATION
Quality
For Hot Point, it is very much
important for them to produce products
of good quality, so that they can attract
ample number of customer towards
them. For this the approach which they
can use is TQM.
Hot Point can use lean production, so that
they can manufacture new and quality
products for their customers (Kundu and et.
al, 2015).
Cost
For analysing the cost of new products,
Hot Point can use variance method,
which also help them in making some
additional benefits to their existing
products.
Six Sigma is the methodology which Hot
Point can use, as this help them in reducing
the cost of their organisation and also help
their employees by improving their
performance.
Delivery
In this principle, manager of Hot Point
is needed to manage the delivery
process of them, along with
development of new products.
For this also, Hot Point can use six sigma,
as this help them in delivering and
managing it's process in effective manner.
Along with this, it help manager of them in
controlling and analysing the process in
proper manner, so that the performance of
different operations can get improved.
Safety While launching a new product, there
are ample number of safety issues
which an organisation like Hot Point
may face. Therefore, lean production is
a approach which manager of Hot
Lean production is a methodology which
manger of Hot Point can use for make their
new and existing product safe from
different problems, so that they can produce
new product effectively (Lam and Lai,

Point can use, so that they can solve
issue and problem related to this.
2015).
It is very important for Hot Point to ensure continuous improvement through their
continuous improvement plan. However, to gather proper assurance of the same, it is necessary for
the firm to adopt PDCA Cycle, which is crucial for continuous improvement within the new product
development process. This cycle is discussed below: Plan: The very first step in order to ensure continuous improvement is planning the overall
development of the new product. The firm could not apply principles of Six Sigma in this
stage due to its rigidity. However, the firm must apply Lean Principles effectively to plan the
process without any waste. Do: The method must be applied along with the necessary procedures and strategies and at
this stage, Hot Point must start with development of its new product. Check: This stage undertake the evaluation of effectiveness within the overall process which
is necessary to save cost and ensure quality. In order to achieve the same, the firm must
apply Total Quality Management in order to measure the standard of quality in their new
product. Act: The final step is related to going ahead with the product development along with
necessary implementation of all the processes and methods above.
Effectiveness of Continuous Improvement Plan : The approach which is used by manager
of Hot Point is Six Sigma as well as Lean Principles., as this help them in reducing the error from
production. This all leads to reduction in cost of production and also help organisation by improving
the quality of product and service they have produced.. Some of the operations which is required by
a company to follow which helps them to improve the quality of products, are as follows:-
 Priority to employee's need : For operations management team of Hot Point, it is very much
important for them to make their focus on needs of customers, so that they can produce and
provide provide products and services according to it (Nicholas and Steyn, 2017). Along
with this, it is essential for them to give proper importance to their employees, as they are
the only person which use to make communication between customers and organisation.
 Good relationship of Employee-employer : Along with customers needs, it is very much
important for manager of Hot Point to make strong and good relationship between
employees of organisation and employer. As this will help them in improving the
performance of each of them and also help them, in getting good results, which lead the
organisation in attaining their goals and objectives. Along with this, good relationship
between employees and employer help organisation by improving the quality of results and

by increasing sales and revenue of organisation.
TASK 3
P3 Project Life Cycle in addition with required supporting documentation.
Before launching a brand-new product, it is very much necessary for an organisation to
make sure that the product which they are launching has gone through life cycle of project. Project
Life cycle is a process which helps the firm performing an overall project effectively.(Perry and et.
al, 2018).
In present scenario, Sunshine drink is an organisation, which use to provide energy drink at
market place and the name of their product is spring water. It is very much important for them to
ensure effective life cycle of the project in order to develop appropriate product within the market.
There are 4 steps in PLC which are as follows:
1. Initiation Stage : This is the first stage of PLC, where the management performs activities
such as brainstorming each factor and aspects which help the firm in producing its drink
within the market. This stage undertakes feasibility study along with identification of
stakeholder needs in order to gain their approval. Democratic Leadership could be used by
the management in this stage as all the stakeholders and subordinates are required to be
consulted related to the new range of drinks and ways of its development. Moreover, Six
Sigma Could be used by the firm at this stage in order to devise the process of new product
development.
2. Planning Stage: After approval, the firm requires to plan each activity and resource which
would be necessary for the new drink with natural spring water. This stage requires
establishing communication channels within the firm and development of project plan. At
this stage, the firm must utilise Lean Production to plan for the production of its new range
of drinks. As for leadership, Strategic leadership must be utilised by the firm at this stage.
3. Execution Stage: All the planning related to the development of the new range of drinks
would effectively be converted into actions. A flow of work would be set up towards
objectives set up at initiation stage. Within this stage, Sunshine Drinks must apply Total
Quality Management to monitor the development of new range of drink. Further,
transactional leadership must be applicable here as this would help the firm in providing
required motivation to its clients.
4. Closure Stage: This is the last stage of this life cycle, where the final offering, that is the
new range of drinks by Sunshine Drinks company would be provided to the customers. This
requires the firm to follow up a 360 degree approach which would help firm in removing
any sort of inconsistency. To ensure necessary modifications, the firm must use Autocratic

Leadership (Rosemann and vom Brocke, 2015).
Project methodologies : As per this, changeable elements are the cost, scope and time which
is not constant. Structure is adopted to take initiate in the task for attaining better outcome
(Nicholas, and Steyn, 2017) . That's why when implementing the project, it is required to adjust for
maximisation in values of business.
Tools : The tool which is helpful for Sunshine is Gantt chart, as this will help them in
analysing the time which is required by them for producing and launching a new product at market
place. Business case :
This is a case which is related to ample number of resources like, suppliers, man power, raw
material and other (Schwalbe, 2015). These all are those which are helpful for Sunshine in
producing new products.
Executive summary : This will help Sunshine drink in analysing the future opportunities
which they can grab, so that they can grow and develop their business.
Problem or opportunities : In this, Sunshine drink can analyse the problem and
opportunities they will get after launching a new product at market place.
Solution of the opportunity : Here manager and leader of Sunshine drink use to make
solutions for problems and for opportunities, so that proper plans and strategies can be designed by
growing and developing business.
Overview of the company Sunshine drink is a energy drink manufacture, which use to produce
some fruit juice and other juices.
Vision & Mission The vision of organisation is “Making benefits for the customers”,
where as mission is to keep them happy.
Objectives The major objective of Sunshine is to listen the problems of customers
and provide appropriate solution.
Strategies Sunshine use to make very unique strategies, so that they can attract
ample number of customers.
 Project plan:
For an organisation like Sunshine, it is very much important for them while launching some thing
new at market place.
Cost Cost is the budget which an organisation is going spend on some specific

resource. Here, manager of Sunshine drink has finalise the budget of
about £1000 for “spring drink”.
Resources There are different resources which Sunshine can use like work force,
cost, communication and other for making good product.
Research
methodologies
Finding the scope of new product is categorised under secondary
research.
 Gantt Chart:
This is a type of chart which is used by project manger, so that they can manage the
performance and progress of complete project just by one view.
Illustration 1: Gantt Chart
Illustration 2: Gantt Chart

Illustration 3: Critical Path
 Work breakdown Structure:
This is a process which is used by managers, so that they can divide tough tasks into small part.
This all lead the manger in converting the tough task to easier and also help them in completing
them in effective manner.
Illustration 4: Work Breakdown Structure

TASK 4
P4 Assessment and review of the effectiveness of PLC.
The performance of PLC is depends upon two factors, one of them is suitability and
another is reliability. In present scenario, Sunshine drink is going to establish a new product at
market place, which is made up of spring water (Takey and de Carvalho, 2015). For
understanding the concept of PLC, water fall model of it in context of Sunshine drink is given
below :-
1. Initiation Stage : Within this stage, the firm has used Six Sigma as well as Democratic
Leadership. While the latter is necessary within this processs, the former is quite rigid to be
applied by the organisation at such an early stage and would cause disadvantages in
operations as there will be no flexibility in operations. Thus, there must be a room for
flexibility and creative working in this stage.
2. Planning Stage: Strategic Leadership and Lean Principles are used withi this stage. These
principles would be contributing to its quality, but might lead the firm in choosing processes
and methods that are way too cost effective. Thus, 360 degree feedback is one approach
which could be applied by the company in order to ensure proper planning.
3. Execution Stage: Within this step, TQM and transactional leadership is utilised by Sunshine
Drinks company to ensure effective execution. However, in addition, the firm must also
adopt several techniques of performance measurement to quantify the results and ensure
better outcomes.
4. Closure Stage: Sunshine Drinks Company utilised autocratic leadership within this
stage. However, the firm could have sticked to transactional leadership in order to keep
up with the consistency.
CONCLUSION
From the above report, it has been concluded that, operations management is very much
important for an organisation, as this help them in managing their operations and their
performance in effective manner. Also, continuous improvement plan help an organisation in
making proper improvements to the products and services they use to provide. Along with this,
Project Life cycle is very much important for an organisation, as it help them in managing the
life cycle of product which they are going to produce. Along with this, it is important to
evaluate Project Life cycle in appropriate manner.

REFERENCES
Books & Journals
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Gilbert and et. al., 2015. Case management system and method for collaborative project teaming.
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Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. Routledge.
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