Operations & Project Management

This report discusses the role and importance of operations management principles in Aldi, a family-owned supermarket chain. It includes a review and critique of the implementation of operations management principles, an analysis of the extent to which the operations management of Aldi meets the requirements of the organization, and a discussion on continuous improvement and Lean principles. The report also includes a continuous improvement plan and recommendations for improving the operations function.

Operations & Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
An introduction to your chosen organization..............................................................................4
An explanation of operation vs operations management............................................................4
Conduct a review and critique of the implementation of operations management principles
within organization......................................................................................................................4
Analyze the extent to which the operations management of organization meets the
requirements of the organization.................................................................................................6
Discuss continuous improvement as a philosophy and describe the Lean principles.................6
Prepare a continuous improvement plan based on your review and critique of operations
management principles within your organization.......................................................................7
Using continuous improvement principles, make at least two justified recommendations
which could improve the operations function.............................................................................8
PART 2............................................................................................................................................8
(a) Project life cycle:...................................................................................................................8
B) Review and critique effectiveness of PLC by using theories, concepts and models in
project management..................................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operation management is an administration regarding business practice that helps in
create maximum level of efficiency within an organisation. Operation management concerned
with converting or transforming raw material into finished goods and services by maximum
using raw materials and labour efficiently. This report is based on Aldi which is an family owned
supermarket chain with more than 10,000 stores in almost 20 countries. The another part of
report is based on sunshine drinks which manufactures, sells drinks in market and aimed to
combine range of drinks with a new energy. This report is based on role and importance of
operation management with its various principles to gain goals and objectives. It also includes
critical evaluation of principles of operation management with role and importance of continuous
improvement plan which based on principles of operation management. It also includes Project
life cycle with project plan, WBS and many more factors. At last it evaluates effectiveness of
PLC by kinds of theories, practices and models.
PART 1
An introduction to your chosen organization.
This report is based on Aldi which is an common brand of family owned discount market
chain with 10,000 stores in almost 20 countries and it has estimated turnover more than €50
billion. It is founded by the Albrecht family and opened its first store in 1961 in Germany that
makes Aldi a first discounter in the world. Now it has more than 1600 stores across more than 35
states, employ more than 25,000 employees. They focus on consumers first delivering high
quality first food and provide responsible customer services and everyday low prices with quick
and easy shopping are their major deliverable to their consumers.
An explanation of operation vs operations management.
Operation management is a very important field or sphere due to its multidisciplinary
approach (Aaltonen, 2011. ). Operation management is mainly concerned with planning,
organizing and coordinating with supervising works and activities in context of production or
services. Both operation and Operation management are very much important for organizational
growth and enhancement (Bank and et. al. ,2010.). In operations which is an important area of
management that concerned with designing and controlling process of production with
redesigning of goods and services.

Conduct a review and critique of the implementation of operations management principles within
organization.
Scientific management:
Scientific management is one of well known theory of management that helps to analyze
workflows. The main objective is to improve level of work efficiency majorly labor
productivity. In context of Aldi that faces problem of coordination in various departments and
resist to change in which scientific management helps to enhance work efficiency which majorly
focus on labor productivity by giving proper knowledge and information to give their best in
organizational development and enhancement.
Advantages:
the major advantages of scientific management that it provides trained minds for
achieving higher level of excellence in management of major activities. It also contributes to
revolutionized and bring improvement in layout, routing and scheduling of management of work
and accounting to get important outcomes.
Disadvantages:
there are some major areas that hinders self interest of an organization while adopting the
scientific management that are it occurs higher level of cost. Also time and motion studies
concentrates on improvements in heavy initial level of outlay of capital to get desirable
outcomes.
Flexible specialization:
Flexible specialization which is popular business strategy that used by an organization to
build one self more effective. In context of Aldi by using the multitasking employees they
effectively manage machinery and equipment's that can be able to do many things
simultaneously to reach at desirable goals and objectives. So it work as an effective tool to
coordinate works and activities in proper manner.
Advantages:
Although it takes too much cost and time to implement but it saves time in future as it has
ability to adopt changes by preventing defective products and resources to get potential
outcomes.
Disadvantages:

There are some kind of disadvantages while adopting the flexible specialization that
implementation of it in production process is very much complicated that requires through
planning by crating detailed designing and scheduling. Also it requires high level of skilled
manpower that can operate their machinery and salaries of employees are high.
Lean production:
There are many principles of operation management that proved beneficial for
organizational growth and enhancement. Lean production is one important approach of
management that focus on cutting wastage by ensure quality of products and services. It applied
in every aspect of business in design, manufacturing through production and distribution. In
context of Aldi they use respective management approach to save cost and time to get important
outcomes.
Advantages:
The main advantage of lean production that it requires less infrastructure that saves cost
and time to manage all these important attributes to get important outcomes. With it saves
resources by limiting waste while producing products in an organization. In context of Aldi they
by use that management approach can exploit one of possible opportunities to remain always
competitive.
Disadvantages:
There are some disadvantages of Lean production that in it less margin of error exist, in
case equipment get fail or breaks down than it requires projected labor to get certain output from
whole process. Sometimes it misses deliveries that directly linked with lack of flexibility to get
optimum outcomes.
Reality:
In that organization have to focus on whole problem, not only just tools and techniques
and reason that no tool and technique are not self sufficient in itself.
Organization:
In an organization every work and activity with departments are interconnected with each
other so these should be consistent and predictable in efficient manner (Bouraad, 2010.). In case
of Aldi their all activities and departments with their activities are interconnected with each
other.
Humility:

In that trial and error process takes huge cost and time so it helps in acknowledging
limitations to managers. In case of Aldi after evaluating each and every aspect in proper way
they implement projects so that they can save cost and time.
Success:
The many concepts and definition of success that vary from every organization and
person to person. The one of most important factor to get success is to give delighted experience
to consumers. In case of Aldi their main focus is to deliver best services to consumers.
Accountability:
Accountability is one of important aspect to run a smooth business and their operations.
Managers have to check rules and metrics on daily bases to meet goals (Becerik-Gerber,
Jazizadeh, Li and Calis, 2011. ). In case of Aldi they assign roles and responsibilities to
everyone so that they remain accountable for that work and attain goals and objectives.
Causality:
Problems or concerns are everywhere and to remove or eradicate concerning issue
organization have to find out root cause of it. In case of Aldi when cultural issues arise in their
firm they find out major reason behind it so that permanently they can eradicate it.
Change:
Change is very much obligatory for an organization and it helps in enlarge business
opportunities and growth. In case of Aldi for remain always competitive in market place they
apply new concepts that helps in enchant large no. of consumers.
Review and critique of operation management principles:
The operational management principles are very much important for organization to lead
in market by coordinating each and every activity in better way. With the help of reality principle
firm can be evaluate in whole organization respect that enhance the viability of a project. But on
other hand sometimes covering the whole aspect simultaneous not possible for an organization
that hinders self respect of them. The another principles that are organization states that all
departments are connected with each other and work in self interest of each other but on other
side they are not able to give their best as they have separate targets. In that next principles the
error and takes huge cost to evaluate the gaps while producing the products and services in better
way so organization have to target and attain goals accordingly. In that context organization

faces the problem of coordinating in various departments that they are not able to communicate
in proper manner with each other so for that they have to conduct various works and activities to
reach at desirable goals and objectives. The another problem that employees are very much rigid
to accept changes for that organization have to put best efforts so that employees can gives their
best.
Critical evaluation:
Advantages of operation management principles:
The principles of operation management are very much potential for any organization
that helps in giving direction in which area they have to focus so that desirable goals and
objectives should be achieve (Broadhurst and et. al. ,2010).
Disadvantages of operational management principles:
On other hand it occurs huge cost and time to attain goals also through research and
development so that important results should be occurred. In case of Aldi they adopt change
principle of operation management because it is an multinational organization and frame
products that distinctive from their major competitors to remain enough competitive.
Negative aspects of operational principles:
The negative aspect of that principles that they are large in quantity so create hazardous
effects for an organization to choose best out of them. All these takes lot of time and cost and
small organizations can not afford to adopt it in proper way that create problems in front of
them.
Six sigma
It is a basically a method of quality improvement of process within an organization. Six
sigma uses several techniques to reduce the manufacturing defects and focus on cycle time
improvement. Aldi, limit their production and focus more on quality and customer satisfaction.
Their products have been designed to reduce wastes. Breaking the agenda of big retailers, Aldi
do not keep their stores open 24 hours and try to reduce risks of failures and motivate their
employees.
Lean principles
Lean is a business strategy, which can be applied to any industry. It was firstly created by
Toyota to reduce the amount of wastes and to improve manufacturing processes. It focus on
creating lower cost and value added products to the customers.

In case of Aldi, lean principles help them to achieve goals of producing value products
and 30% cheaper products then its rivalry. Aldi, implement lean for reducing wastes elements
and resource quantity.
Conclusion:
From the above principles it has been concluded that all stages are very much crucial and
related with each other to achieve organizational goals and objectives in proper way.
Analyze the extent to which the operations management of organization meets the requirements
of the organization.
Operation management is one of important and crucial for organization as they help in
produce professional managers that helps in achieving organizational strategic goals in a definite
time period (Bullinger and Warschat, 2012.). Operation management is core of every
organization that helps in control the system of an organization and handle kinds of issues or
concerns regarding designing, operation and maintenance to bring improvement by producing
vital products and services. Hence it plays very vital role in case of Aldi to give direction in
which sphere they have to focus as per their importance.
Discuss continuous improvement as a philosophy and describe the Lean principles.
Continuous improvement is an philosophy which focus on seeking ways to enhance
performance by improve performance. In it also includes identification of benchmarks of
excellence and practices for installing employee ownership process. Every organization for
enhance their productivity apply continuous improvement plan.
Principles of lean:
There are majorly five principles of lean that are as follows:
Identify value:
In that aspect organization continuously evaluate performance and value of products and
services in context of consumers. With factors that helps in attain mission, improvement in
position and helps in provide unique value. In case of Aldi by providing products and services by
accessing their needs give value to them.
Map value stream:
After analyzing unique value that provide by product and services, organization map
value and their direction to reach at desirable goals and objectives (Cook and et. al. ,2011.). In

case of Aldi when they bring change in organization they give necessary with important
information to their employees.
Create flow:
In that step after getting map or direction of each and every factor organization focus on
maximize efficiency and reduce wastage. In that organization optimize flow in every aspect not
only one aspect but every sphere of firm.
Establish pull:
In that perception of customer should be judged after analyzing final product and services
by reversing map. In that aspect customer help to pull the values that revolutionized in practical
way (Eadie and et. al. ,2013.). In case of Aldi after implementing final product and services they
evaluate needs and values to grab attention in positive manner.
Seek perfection:
In that last stage organization seek to improvement in major spheres and bring
meaningful changes to bring effective results in positive manner. In case of Aldi they deals in
discount chain of products so to remain always competitive in market they aimed to bring
continuous change.
Prepare a continuous improvement plan based on your review and critique of operations
management principles within your organization.
Continuous Improvement Plan
Source/Origin Anticipated outcomes Present performances Strategies for
improvement
Promotional events Promotion is very
much important for
any organisation, in
case of Aldi their
promotional technique
are not as much sound
as their competitors.
Due to lack in
promotional events
organisation not able to
reach at every potential
consumers of them and
lot of options with
competitors in market
so it hinders self
To enlarge business
opportunities
organisation have to
adopt strategies and
plan their new
advertising and
promotion tool that
helps to reach at large

interest of Aldi. consumers.
After sale services Aldi deals in every
kind of product and
services so to give
delighted experience to
consumers after sale
services are very much
important. In case of
Aldi sometimes due to
mismanagement they
are unable to provide
to every consumer.
In that case they are
sometimes unable to
give delighted
experience to
consumers because it is
very much important
for any organisation.
To give after sale
services organisation
have to evaluate
products and services in
which after sale
services are very much
necessary so that they
enhance ratio of
customer satisfaction.
Plan Do Check Act
Coordination in
various departments
Coordination in
different departments
is very much crucial
for organisation to
remain always
competitive by
communicating right
kind of message to
people in various
departments. In
context of Aldi they by
giving training and
coordinating various
meeting session build
healthy relationship.
After implementation
that plan in proper way
organisation planned
to check each and
every activity in
proper way.
After that they take
appropriate step to
reach at desirable
goals and objectives.
Resist to change Aldi focus on giving They apply it on In that after giving

education about the
change management
and its importance in
their life so that they
can give their best in
organisational
development and
enhancement.
practical basis and get
their reviews in proper
way.
proper education to
people or employees
organisation can be
able to direct towards
achieving
organisational goals
and objectives in
proper way.
Lean manufacturing:
Lean manufacturing and production is an systematic method that focus on waste
minimization within a manufacturing system with sacrificing productivity that are major cause of
problem.
Kaizen:
Kaizen refers to activities that continuously focus on improving functions and include all
level of employees to manage waste in proper manner.
Process re engineering
Process re engineering is an action to recreate a process in order to improve quality
of product and reduce their prices. It analyses company's workflow and business process
and help company to rethink about improving their quality and to reduce costs to face
their competitors.
Aldi, goes through process re engineering and make their products more efficient
and reduce its prices for customer trusts and satisfaction. And goes through changes to run
their business and to analyses risks of failures.
Target area Actions Major
deliverables
Anticipated
results
Future actions
The target area
before
organisation is to
To get desirable
objectives that to
coordinate
To coordinate
teams and
individual
By using
operational
management
Tor remain
always
competitive in the

manage and
coordinate
various
departments that
they work in self
interest of one
another.
various
departments
organisation
provide proper
roles and
responsibilities to
each and every
individual.
organisation
provides
responsibility to
management to
deliver roles and
responsibility to
each individual. It
deliver when an
individual join
organisation and
when hand over
new role. To
accomplish roles
and
responsibilities so
that each and
every person can
give their best.
Roles and
responsibilities
should be
distributed as per
the designation
and
responsibilities.
principle of
accountability in
which each and
every should be
responsible for
their tasks and
duties. By using it
organisation can
get one of best
outcomes and
remain always
competitive.
marketplace by
distributing roles
and
responsibilities so
organisation
occupy a
systematic format
in which skills
and capabilities of
an individual
should be judged
properly and
accordingly
responsibilities
should be hand
over.
The another area
to work is resist
to change.
By giving proper
education to
employees
regarding
importance of
change for
To educate
regarding change
higher authority
communicate
with their
subordinates with
By using change
principle of
operation
management
organisation
brings harmony in
To always remain
optimistic
regarding changes
that occurs in an
organisation they
provides training

individual as well
as for
organisation so
that they can give
their one of best
efforts.
help of training
outside the office
premises. Change
majorly
demanded as
environment
demanded,
competitors.
works and
activities of
employees to get
potential
outcomes.
to employees and
various factors to
motivate them to
adopt changes
that occurs in
whole industry.
Using continuous improvement principles, make at least two justified recommendations which
could improve the operations function.
Continuous improvement and their principles are very much importance for an
organization to lead in some spheres in which they are lacking behind (Hartmann and et.
al. ,2012.). In case of Aldi one of most important principle that they can use that is change
principles because to remain always competitive into market place they apply new tools and
techniques. On other hand it is an large organization and deals in different nations
simultaneously so maintaining accountability is very much important and it is useful in
distributing roles and responsibilities to individual who has accurate skills according to work
(Shen and et. al. ,2010.).
PART 2
(a) Project life cycle:
Project life cycle which is a four step process that followed by all project managers which
helps to complete a project in a systematic format.
Project initiation:
It is an starting point or phrase of an idea or concept. In that stage organization prepares
answers of following questions in which main concern of organization, can development helps to
solve that problem and goals of organization with resources to give support to project
(Thompson and Bank, 2010). In case of sunshine drinks there major concern that they are not
able to enlarge their consumer share frequently and facing problem in adaptation. It takes 15
days. Example is business case which is explain below:

Business case:
Business case consist of reasoning while initiating project or task. In business case many factors
includes:
Executive
summary:
In
that the
major
concern that
organization
feel
problematic
while
implement
changes for
that they
have to take
various steps.
Challenges or
goal:
The
main challenge
before
organization is
to always
remain
competitive in
market place
they have to
frequently
adopt changes
and their main
goal is to give
delighted
experience to
consumers.
Solution:
To
resolve that
concern
organization
focus on giving
new
promotional
tools and after
sale services.
Cost:
In it
major cost
factor are
their tools
and
techniques
and
resources.
Benefits:
It helps in
enlarge business
opportunities and
reach at large no. of
consumers.
Execution
timeline:
It takes
almost 4 to 5
months to reach at
desirable goals.
Project planning:
In that stage of planning the project, organization have to evaluate their purpose, vision,
mission. Are objectives are measurable and build schedule and set milestones. In case of
sunshine drinks their main objective is to give delighted experience to consumer base so to make
it measurable they conduct research and development to reach at desirable outcomes. It takes 18
days. The example are:

Work break down structure:
It is a key project deliverable that organize work of team in manageable sections. It is a
deliverable oriented small segments that helps in manage work into small parts so that attaining
goals and objectives should be easy. Work break down structure are very much important to
relate the works and activities with their finish criteria so that all activities should be managed in
proper way and best results should be achieve in an organization.
Gantt chart :
Gantt chart is a kind of bar chart which shows schedule of a project, it shows dependency
and relationship with activities and schedule of various activities.
The role of kinds of methodologies and leadership styles that are use while exploiting operation
management, in project initiation and planning organization use situational leadership style
which changes or fluctuate according to various kinds of situations so it is most beneficial for
organization because initially they have to amend in their project (Wikström and et. al. ,2010).
Inproject execution and closure stage they use system leadership style in which leaders can also
participate in deliver right kind of knowledge and information and take participate in every

activity. The WBS and Gantt chart are very important tools in follow a definite path to reach at
desirable goals and objectives((Hartmann and et. al. ,2012.).

Project execution:
The third stage in which actual work of project should be perform in well manner. In that
organization requires tools and techniques, resources that helps to reach at desirable goals (Tsai,
and et. al. ,2011.). In that phrase allocation of resources and budget formulation with planning
and optimization of resources should be evaluated in proper way. In case of sunshine drinks they
evaluate each and every factor with determine their viability in firm. It takes 25 days. The
example of project execution are:
Feedback Report:
In the stage of project execution, it is very important for organization to take feedback
from their users so that if any correction is required then it can be made in proper manner for
achievement of goals and objectives.

Performance management:
Performance management is one of important tool and techniques that helps to evaluate
performance of an organization after delivering best outputs in organizational goals and
objectives. In context of Aldi they take important decision to continue that product or not.
Project closure:
In that stage disbandment of project and tools with personnel by assigning duties. In that
stage after completing project organization have to measure results with predetermined one. It
takes 26 days. The example of project closure includes following:
Project Review:

This document is prepared to know about project success or failure in market. If there is
requirement of any change then it should be modified. This is prepared at the closure of project
for achievement of set goal and objectives. In that aspect organization have to give proper
education to their employees about importance of change management for them so that they can
give their best in organizational development and enhancement to remain always competitive in
marketplace.
Project plan:
Project plan refers to any activity that adopted by an organization to get success, for that
some prescribed steps to define objectives of a project and for achieving it (Weglarz, 2012.). In
case Sunshine drinks their major plan is to bring new flavors of juices with energy in
organizational growth and enhancement.
B) Review and critique effectiveness of PLC by using theories, concepts and models in project
management.
Project life cycle for that project manager and team shared a common goal to carry out a
particular object to meet organizational goals and objectives. The major concern before Aldi is
establish coordination in different departments and another concern is resistance to change.
Project life cycle is one of most effective tool which helps to share a common goal and
objectives to get potential outcomes. In context of Airdri they have to plan and coordinate with
their team and their members regarding issues which they are facing. So they by using the water
fall model that helps to direct whole project for obtaining potential outcomes.
To evaluate effectiveness of project life cycle by using waterfall model that are as
follows:
Requirement gathering and analysis:
In that stage all possible requirement of project and system should be developed. In case
of sunshine drinks they major area of work is to combine all kinds of mixture in juices for that
they have to gather knowledge and information about taste and preferences of consumers.
System design:
In that stage specifications that are require in that stage should be prepared. In case of
sunshine drinks they use specific hardware and software to combine all kinds of drinks.
Implementation:

In that stage sunshine drinks apply their concept firstly at initial level in small units and
after that they aimed to integrate into next phrase.
Integration and testing:
In that stage after implementation after that systems should be integrated of each and
every unit. In case of Sunshine drinks they integrate with system.
Deployment of system:
in that stage functional and non functional testing is conducted. After that stage customer
requirement should be analyzed in proper way.
Maintenance:
In that case some major concerns arise in front of client environment and issues should be
resolved in proper way. In case of Sunshine drinks they face some issue while implementing that
project into market.
Critical evaluation:
That aspect and model helps in evaluation of each and every aspect with it gives direction
about completion of project plan in proper manner but on other hand it is an not possible for
organization to follow all steps in sequential format.
Implementing the project life cycle plays very important role to reach at desirable goals
and objectives because it gives definite path and various ways to reach to results. In case of
Sunshine drinks their main aim is to give products and services according to consumers
requirement. In that it save cost and time and direct to achieve definite goal (Tsai and et.
al. ,2011).
In an organization cost saving techniques plays very major role to attain desirable goals
and objectives in proper way. In sunshine drinks that apply various kinds of lean production
which is an kind of strategy which stands for doing more for less. In case of Sunshine drinks to
give products at moderate cost they apply lean production so that large no. of consumers can
approach towards their product. In context of respective organization they by deliver the right
kind of solution to their employees that are change management with the coordination in
departmental activities for that they use water fall model to get distribute rights and duties in
internal structure of an organization by deliver value to remain always competitive in
marketplace. It can be only possible after the coordinating each and every activity in proper

manner in internal organization so that they build faith in themselves to remain always
competitive in marketplace.
Milestones:
The major goal of an organization is to collect the positive outcomes to deliver right kind
of outcome to remain competitive always in marketplace. So they have to put efforts in giving
education to people so that they can adopt changes.
Targets:
the target is very important accordingly organization as well as individual can be easily
put efforts in positive direction to achieve organizational goals and objectives.
Bench marking:
Bench marking is a kind of standard that helps to give direction so that best efforts should
be paid on right direction to achieve organizational goals and objectives in proper manner.
There are different kinds of tools and techniques to evaluate accuracy of quality, scope
and tenure to reach at desirable goals and objectives. There are various tools and technique that
are total quality management which focus on maintaining high standards in works and
procedures in operations and quality of products (Cook and et. al. ,2011.).. On other hand to
acquire right time scale organization have to adopt WBS which divide work into small parts so
that it make easy to evaluate each and every aspect in perfect manner. To judge the scope of
products and services organization have to apply bench marking is an tool to measure
performance of products, services and processes of respective organization and it also describe
about internal opportunities for bringing improvements.
various kinds of theories and practices should be use in organizational growth and
enhancement such as various kinds of leadership theories and practices which plays very
important role in both small and large scale projects and enterprises to reach at desirable
outcomes. Situational leadership proved useful in case of small scale projects because they can
operate at very small sphere so change in leadership style is very easy for them (Becerik-Gerber,
Jazizadeh, Li and Calis, 2011. ).. On other hand in large scale projects organization use system
leadership because they to bring uniqueness in their works and procedures. So all plays vital role
in organizational growth and enhancement to achieve desirable goals and objectives.
From the above mentioned Project life cycle it has been summarized that plays major role
in determining what is appropriate for an organization and steps with theories give important

indication to direct and achieve desirable goals. In case of Sunshine drinks Project life cycle give
them major attributes so that organization can easily evaluate each and every aspect completely.
Key performance indicators:
KPI is one of the indicator that helps to measure value which denotes about how
effectively an organization can achieve organizational goals and objectives in proper manner.
Organization use it at multiple to reach at the target by defining success. In context of Aldi they
by using respective tool set performance measure to gain profitability and sustainability in the
marketplace.
CONCLUSION
From the above report it has been summarized that operation management is an important
attribute in managing and controlling each and every aspect in their growth and enhancement. To
reach at desirable goals and objectives organisation have to adopt kinds of models and theories
that are important in which project life cycle that give direction and definite path from which an
organisation can attain goals. Organisation have to adopt operation management principles that
give important attributes to focus on major areas in which organisation have to reform so that
desirable goals should be achieve.

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