This assignment discusses the effectiveness of operations management principles and the concept of continuous improvement in an operational context. It also defines the project life cycle and critiques the application of PLC. The case study of Unilever is used as an example throughout the assignment.
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Table of Contents INTRODUCTION...........................................................................................................................1 PART 1............................................................................................................................................1 1. Overview of the company..................................................................................................1 2. Explanation of operation vs operation management..........................................................1 3. Implementation of operations management principles.......................................................2 5. Continuous improvement plan as a philosophy and describe the lean principles..............3 6. Prepare a continuous improvement plan and critique of operations management principles.5 7. Recommendations to improve the operations functions....................................................7 PART 2............................................................................................................................................7 1. Overview of the Portakabin case study..............................................................................7 2. Explanation of each stages of life cycle in relation to Portakabin case study....................8 3. Business case and explain the importance of new product................................................9 4. Work Breakdown Structure for developing a new product................................................9 5. Gantt chart based on WBSabove clearly depicting critical path and project completion time frame.............................................................................................................................10 6. Theoretical and conceptual arguments to justify the use of project methodologies.........11 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Operation management is a business utility which is answerable to administrate the procedure of manufacturing of products and services. It consist preparation, arrangement, coordination and controlling all the origin that are needed to manufacture goods and serveries of a specific company(Zwikael and Smyrk, 2015).Project management is a way through which a n individual organise and manage resources which are required for the completion of the peoject and task.This assignment is based on Unilever which was founded in 1929 by William Lever, 1st Viscount Leverhulme, James Darcy Lever and Samuel van den Bergh. It is a British-Dutch transnational consumer goods company and headquartered in London, UK. This document will discussed about the effectiveness of operations management principles and the concept of continuous improvement in an operational context. Further will define the project life cycle and critique the application of PLC. PART 1 1. Overview of the company Unilever is a multinational organisation which selling consumer goods consisting foods, beverages, cleaning agents and personal care products. This firm was founded in 1829and headquartered in London, UK. There are 163,000 employees are working in this firm and making their contribution in the growth of the organisation. Operating income of this company is €12.535 billion, net income is €9.808 billion and total equity is €12.292 billion. This firm operating its business in more than 100 nations with the help of more than 400 brands. 2. Explanation of operation vs operation management Operationreferstoaprocess,activityandactionwhichisformulatingbythe management of a firm to complete a task and project. For example, in Unilever, if the management of the company produce or manufacture new product then they do some activities like planning, budgeting, manufacturing and others. Whereas operation management indicates to the procedure of managing these activities and operations so that the administration of the organisation can achieve its set aims and objectives(Aarseth and et. al., 2017). It is a ongoing function which performs activities that help in managing production of goods and services. Operation vs operation management 1
OperationOperation management Operationrefertotheactivitiesand actions which are made during the time of producing goods and services. Itconcentrateonformulatingacts regarding product in adequate way. Operationmanagementreferstothe managementoftheseactionsand activities so that are formed in structure way. Itfocusonrunningthebusiness effectively and efficiently. 3. Implementation of operations management principles Principles of operations management Reality:This principle states that operation management should concentrate on business problem instead of techniques. The managers in Unilever generally focuses on the current scenario of the enterprise by carrying out investigation about the market like whether the product launched task is successful or not(Pärn, Edwards and Sing, 2017). If the management of the company willnot focus on the organisation and task's issues then it negatively affect the company in term of profit and productivity. But if the administration focus on techniques and strategies then it positively affect the employees performance. Organisation:According to this principle, organisation consists of various departments where the working of each function is connected with the other function. The management in Unilever can perform their operation in co-ordination with every other department to manage flow of communication. It will help in effective running of the production process because there are various department which make their contribution in it. If the company will not interlinked with other function of the management then it will not perform well and not achieved its set objectives. Fundamentals:This principle help in maintaining appropriate inventory records, general systems disciplines etc.This principle assists the organisation in reducing the cost of the operations. It utilises various other options which helps the company in minimising the costs. Unilever in order to maintain the proper balance in costs and intensify the creativity among employees may use this principle. If the company manage the inventory and cost of operation then it will use this finance in other activities of the company which positively affect the growth 2
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of the company. But it can affect the creativity or innovation of employees unfavourably because they are cost consuming. Accountability:This principle states that it is important to maintain proper records of accounts in an organisation for successful evaluation of profits and losses during the particular time period. Accounting manager in an enterprise is liable to perform this role. Unilever accounting manager can create and implement policies and rules to perform the task in efficient way and in required time period. If the administration of the company will not follow this principle then it will not maintain its production budget etc. Variance:This principle assists the organisation in reducing the cost of the operations. It utilises various other options which helps the company in minimising the costs(Qasim, 2017). Unilever in order to maintain the proper balance in costs and intensify the creativity among employees may use this principle. If the organisation will show creativity and innovation in its products according customer needs then it negatively affect the company in term of maximizing production cost. Causality:According to this principle, problems are symptoms which occurred due to underlying causes.Every businesses faces the issues in management of the operations like capital management, need of crucial shipments and extra requirement of resources. To resolve this problems Unilever can use this principle(Profillidis, 2016). It will result in efficient and effectiveimplementationandexecutionofnecessaryactionsindailyoperationsofthe organisation. This principle is beneficial to manage the problem of capital management and providing extra resources but it unfavourably affect the inventory and wastage management process. 5. Continuous improvement plan as a philosophy and describe the lean principles Lean principles With the utilization of these principles, operation manager of Unilever can create new ideas in context of making development in production in effective manner. There are five principles of this approach and all are relevant to manufacture new product. In Unilever, during the time of producing new products, the management of the company can use them for appropriate production. These principles are described as following: Define value- It is the first phase of this approach and within it, the management of the company can determine the needs and demands of the customers and the income level of the 3
individuals. In Unilever, the administrator make focus on the utilization of the resources so that they manufacture effective products and minimise wastages(Zhou, Goh and Li, 2015). Source: Lean principles,(2019). Map value system- This principle of lean approach provide an appropriate direction regarding production process so that a map can be formulate regarding it(Thiry, 2016). This phase is related to purchasing raw material to manufacture finished goods in form of products. In Unilever, the mangers of the company can monitor all the process of scheming task to employees, producing, formulating effective plan of action for the marketing of the products and others. Create Flow- In this phase, whole process of manufacturing new commodities is operated in efficient manner. In Unilever, it would be beneficial for the company because it help in minimise hindrance which occur in similar kind of activities in context of fulfilling the needs and wants of consumers in effective way. Establish pull- This principle of lean approach follows the same process as just in time approach In Unilever, with the help of it, administration produce products as per the needs of customers. So it is effective to fulfil the needs and demands in a particular time period. PursuePerfection-Accordingtoit,alltheproductsofacompanycannotbe manufactured in same manner. So the administrator of Unilever can make change in their 4 Illustration: Lean principles
technologies to manufacture goods and services according consumers needs and demands (Rickey, Dgd Systems Inc, 2019). Six Sigma Itisacontrolled,statisticalsupported,informationcompulsiveformulationand continuous improvement method to obviate fault in a commodity, procedure and service (Stolzer, 2017). In Unilever this method can be used by the manger of the company to resolve the issues and problems which are occurred in production process. With the help it, the firm can make improvement in the quality of products. This method consider 5 elements and the process of all of them are defined as below: Define- It the first stage and within it, the management of the company produce or manufacture goods and services according to the taste & preferences of customers with the purpose of providing satisfaction to them. It can be helpful for Unilever because it offer appropriate guidance which can be helpful to fulfilling the consumers needs by offering goods according ton them. Measure- In this step, the administration of Unilever can monitor the current situation of the production and if there is any requirement of development them make it in effective way. It is also beneficial to measure the requirement of needed resources which help in effective manufacturing of goods. Analyse-In this stage the administration of the organisation can identifying issues and problems which are occurred in the activities and operation of production process. With the help of it they can monitor the needs for improvement. Improve- This stage related to the making modification in the goods and services of the company. In Unilever, the operation manger can monitor the changes which are arising in customers needs. With help of this, they can make improvement in their wants by offering products according to them. Control- It is the last stage, within it, the administration provide appropriate solution to make balance in the actions and operations of production. In Unilever, with the help of it, the operation manager can provide products to its customers on set time period in order to fulfilling their needs and demands. 6. Prepare a continuous improvement plan and critique of operations management principles Continuous improvement 5
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It indicates to an ongoing process of making improvement in the goods, services and procedures(Pawar and et. al., 2015). In context of organisation, companies make innovation in their products and services due to changes in taste & preferences of their target audiences so that they can offer products and services to them as per their demands. Continuous improvement plan BasisCurrent methodologyProposed methodology CostUnilever Plc has utilised the principle of variance in operation but it is not following by it properly. Creativity and innovation among employees can maximisetheproductioncost(Lin, Hung and Hu, 2018). To monitor the consumer demands and onlymakeinnovationandshow creativity in those products which are highlydemandingincustomers.For this, the company can use principle of variancebecauseit helpin making balanceinproductioncostand increasing productivity of the company. QualityCurrently the company use principle of fundamental to maintain the cost or intensifythecreativitybetween workers.Butduetoincrease innovation and creativity it is able to maintain its production cost. To make balance in the production cost the management of the company can implementtheprincipleofcausality because it is beneficial to manage the problem of capital and fund so it assist managing production cost. DeliveryAtpresenttime,thefirmusethe principleofaccountabilitydueto which cost and budget of production is not manage and the employees of the company will not attain their task and work in appropriate manner. Byfollowingtheprincipleof fundamental,itcanbemanageits budgetbeforerunningoperationand activities related to production of goods and services. With the help of it the employeesofthecompanyalso accomplishtheirtaskeffectively becausethecostofproductionis alreadymanagingaccordingtothe activities(Dai and et. al., 2017). 6
ControlNow, the firm using the principle of casualtywhichiseffectivefor controllingtheproblemofcapital managementbutitisnotableto minimisetheproblemofinventory andwastage.Itaffectthe performanceofthecompany unfavourably(Rezvaniandet.al., 2016). Byimplementingtheprincipleof organisation, the administration of the companycanmanagetheissuesof capitalmanagement,inventoryand wastage controlling. Because the firm is dependent on various other department for different activities. So they also help inminimisingcapital,wastageand inventory etc. Agile methodology It refers to a group of methodologies which are based on iterative development where requirements and solution evolve through collaboration among self organising cross functional teams. The system of this methodology primarily promote a disciplined administration procedure which encourage frequent inspection and adaptation that encourage teamwork, self organisation and accountability. PRINCE2 Methodology- It is a process based method for effective project management. This methodologyis a de factoi standard used by the national authorities of UK, widely recognised and practised in the private sector in the UK and globally. 7
7. Recommendations to improve the operations functions As per the preceding defined improvement plan, it can be monitored that the organisation facedseveralissuesduringthetimeofproducinggoodsandservices.Theoperation administrator of the company should use the principle of organisation because to run the business operations, he firm interlinked with other functions of management. If the company will not make control on capital management and production cost then finance department will prepare budget and cash flow for its production process. Marketing department will help in monitoring the needs and demands of the customers so that the firm can produce goods and services according consumers demand and minimise the wastages and extra production. It can also recommanded to Unilever that if it is following principle of fundamental, the management of the company can develop budget before running activities and operations of production then employees can perform their job roles and assigned work in appropriate manner because it will be already structure according to the budget. PART 2 1. Overview of the Portakabin case study Overview of case study Portakabin Ltd is an organisation which deal in designs and manufactures modular, portable and temporary building for several customers. This firm was founded in 1961 and headquartered in Huntington York, UK. It is operating its business in 6 nation of the world and there are 1300 employees who are working their and making their participation in the success of the company(Haydo, 2018). It is a business to business firm and currently this organisation launched its latest product the “Yorkon Building System”. It is advance technology which help in constructing multi sectional building. 2. Explanation of each stages of life cycle in relation to Portakabin case study Project life cycle It refers to the sequences and series of steps through which a specific project undergoes form starting to closing. It is a series of actions which are essential for accomplishing project objectives or targets.Projects may have different dimensions and difficulty extent but whatever the size such as large or small may be all project could be mapped to the lifestyle structure. This 9
life cycle for the project includes four phases like initiation, planning, execution and closer.The stages of this life cycle is a following which can be also used by the management of Portakabin: Initiation stage- In this stage, the senior administration of the company formulate objectives of the business to carry on the task, monitor project and ultimately appoints the project manager to start the project(Lin, Hung and Hu, 2018). In this stage the management of the company will identify the needs of business, issues and growth options so that the employees can meet they needs and demands. In Portakabin Ltd, the administration of the company can find out an aim and objective of the project that is providing effective services to the customers. For this, the management of this company use effective methods, advance technologies etc. In order ton launch its latest product, “Yorkon Building System”, the management of the firm need 8-10 weeks to launch appropriately at marketplace. Planning- During the time when project is approved to carry forward as per the business case then within planning phase, large projects are separated in to small tasks and formulate a program fro the completion of task. In Portakabin Ltd, the administration of the firm can design small aims to operate their new advance technological system “Yorkon Building System” project. Within it, they can develop a project plan, formulate workflow documents, process map, financial plan and collecting required resources etc. To develop all processes, the management of respective firm will required 4-5 weeks. Execution-It is the third phase of project life cycle and in this stage the administration convert plans in to actions and activities. In it, the project manager of the firm develop task and organise workflows, offer data and information to the member of group related to project, monitor work quality and maintain budget. In Portakabin Ltd, in this stage, merchandiser are required to use certain tools and techniques of promotion to provide information about the new product which is affiliated with advance technology to take the services of it. In context of formulating appropriate plan of action, the management of this respective company will needed 25-30 days. Closure-It is the last phase of this project life cycle, in which the administration of the company provide concluding deliverables, freeing task origins and determine the growth and development of the project(Zwikael and Smyrk, 2015). In Portakabin Ltd, the administration can monitor the execution of the task and staff member and coordinating position effectuation reviews. It is the final stage in which it is demonstrate products that are unsuccessful to catch the 10
attention of consumers regarding it. It create a large influence on the gross sales presentation because commodity become old and consumer need something new and fresh. So the new product“Yorkon Building System”of Portakabin Ltd will help in fulfilling their needs because it affiliated new or advance technology. The new product which is manufactured by the company is beneficial because with the help of its new product the company can more effectively fulfil the needs of its target audiences by offering them proper construction related services. The target audiences of this new product will be business persons, individuals and others. 3. Business case and explain the importance of new product Business Case It is a written and verbal measure statement that is deliberated to improve a determination creator and persuade them to take some kind of action. The main motive of the business case is to document the justification for the undertaking of a project usually based on the estimated cost of development and implementation against the risks and the anticipated business benefits and savings to be gained. CompanyOverview-PortakabinLtddesignsandmanufacturesmodular,portableand temporary buildings for various applications. It was founded in 1961and headquartered in Huntington York, UK. This organisation offers architectural services, professional development seminars, projects management, surveys and customer support. The product of this company are utilised in construction, education, healthcare, offices, storage and events worldwide. Vision and mission- the vision statement of the company is to provide quality products to all customers across Europe. Mission statement of the organisation is manufactured good quality products which provide satisfaction to customers needs and demands. Objectives- The objective of the company is make maximization in customer base with the help of its quality products. Strategies- To achieve its business objective the respective company can use different strategies like market analysis to find out consumers needs so that they can offer goods and services according to them. Another strategy can be STP with the help of it they can segmented their target audiences in small group on the basis of behavioural, demographic and geographic factors. In it they can manufacture product according to customers income, occupation, age and other various elements. 11
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4. Work Breakdown Structure for developing a new product Work Break down structure It indicates to a key project transportation which conducts the work of group in to administrable sections. It is a type of project management which provides a visual way to brief the deliverables within the task. It help in dividing a large project in sub section so that it can be effective complete by the team member and accomplish the set objectives of the project. WBS is a hierarchical verbal description of the work which must be done to absolute the conveyance of a task. Each descendant level in this tool indicates an accelerative detailed statement of the project production. 5. Gantt chart based on WBSabove clearly depicting critical path and project completion time frame Gantt Chart It refers to a timeline which is utilised as a project management tool to elaborate that how the task can be operate(Aarseth and et. al., 2017). It isa bar chart which is formulated by Henery L. Gantt in 1917 as production control tool. There care two axis within it and x axis consist the actions and activities of the project whereas y axis include the performance of those activities. It provide a brief information through a program that assists to plan, organize and lead particular tasks and activities of the project. 12
6. Theoretical and conceptual arguments to justify the use of project methodologies The application of several techniques, methods and plan of actions in processing the task of advance technology system“Yorkon Building System” provided advantage Portakabin Ltd in growth full closing of the task.To monitor the success and proper implementation of this system, the administration of the company firstly use this system at small scale that it work properly and amble to provide effective outcome by providing satisfaction to consumers needs. If it work 13
effective then it can launched in all over the market.There are several models and concepts which can be used but the project manager to complete the project of the organisation. Waterfall Model It was the earliest process model which is formulate to ensue the growth result of the selected company. It is is the first model of SDLC approach which was utilized for software development. It help in making control on those activities, operations and actions which are affiliated in the project and its tasks(Pärn, Edwards and Sing, 2017). The program for each stage of project is manage with needed time period and on the manoeuvre of earliest stage, next stage starts and so on.It is a procedure adjusted model which consider several phases that are defined as below: Requirements- It is the first stage of this model which consider the requirements related to project design, its function and purpose etc. The stimulus of material needed for project is verbal form in requirement report. In it, the project manage of the organisation use visionary leadership style to satisfying needs of project(Qasim,2017). It is hard to make modification s in the project with this leadership style. If there is requirement of modifications then the manager will adopt autocratic leadership. Project report intelligibly allied the observance of the project with the aim of task and assist in origination of the project effectively. 14
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Source: Waterfall Model,(2019). System design- In this phase, the design of the system is prepared and it assist in qualifying hardware and system necessities and also help in describing entire architecture of the system. It is effective to the firm to make adjustment with diverse conditions which is possible bysituationalleadershipstyleoftheleader.Butthemajorconcentrationshouldbeon implementing plan of actions as per the requirements(Profillidis, 2016). In this situation, leader should adopt strategic leadership. Implementation- In this phase the management of Portakabin Ltd can collect data from preceding phases and brief the study of execution of program is to be done in this phase.Each unit of the new planned system is developed and proved for its functionary. Integration and testing- In this stage, all the developed units are incorporated in to system after examination of each unit. In Portakabin Ltd, this process is occurred by the company so that any faults and failures can be analysed(Zhou, Goh and Li, 2015). Developmentofsystem-Inthisphase,whenthefunctionalandnon-functional examination is completed. The product can be deployed by Portakabin Ltd in consumer atmosphere or launched at marketplace. 15 Illustration: Waterfall Model
Maintenance- There can be few problems that can raise in customer environment so minimize and reduces these problem, the management of Portakabin Ltd can make maintenance in the product by enhancing better versions and deliver these changes in consumer atmosphere. CONCLUSION As per the above define information it can be summarised that operation management is an essential aspect to manage, control, coordinate and operate a project activities and operations. Principles of operation management are effective to run the operation of the company in appropriate manner so that the firm can attain its success. It can be monitored that to enhance the performance of gross sales within the firm and gain profits, administratorsneeded to do improvement in organisation and production framework. For assisting this, they can formulate plan in order to analyse status of the market. It would also be effective to monitor the needs of consumers and process they can achieve the similar. REFERENCES Books & Journals Aarseth, W. and et. al., 2017. Project sustainability strategies: A systematic literature review. International Journal of Project Management.35(6). pp.1071-1083. Dai, M. and et. al., 2017. Impact of the Three Gorges Project operation on the water exchange between Dongting Lake and the Yangtze River.International Journal of Sediment Research.32(4). pp.506-514. Haydo, P. A., 2018. From Morphological Analysis to optimizing complex industrial operation scenarios.Technological Forecasting and Social Change.126.pp.147-160. Lin, C. T., Hung, K. P. and Hu, S. H., 2018. A Decision-Making Model for Evaluating and Selecting Suppliers for the Sustainable Operation and Development of Enterprises in the Aerospace Industry.Sustainability.10(3). p.735. Pärn, E. A., Edwards, D. J. and Sing, M. C. P., 2017. The building information modelling trajectory in facilities management: A review.Automation in Construction.75.pp.45- 55. Pawar, R. J. and et. al., 2015. Recent advances in risk assessment and risk management of geologic CO2 storage.International Journal of Greenhouse Gas Control.40.pp.292- 311. 16
Profillidis, V., 2016.Railway management and engineering. Routledge. Qasim, S. R., 2017.Wastewater treatment plants: planning, design, and operation. Routledge. Rezvani, A., and et. al., 2016. Manager emotional intelligence and project success: The mediatingroleofjobsatisfactionandtrust.InternationalJournalofProject Management.34(7). pp.1112-1122. Rickey, B. E., Dgd Systems Inc, 2019.Automated workflow management system for application and data retirement. U.S. Patent Application 10/242,122. Stolzer, A. J., 2017.Safety management systems in aviation. Routledge. Thiry, M., 2016.Program management. Routledge. Zhou, Z., Goh, Y. M. and Li, Q., 2015. Overview and analysis of safety management studies in the construction industry.Safety science.72.pp.337-350. Zwikael, O. and Smyrk, J., 2015. Project governance: Balancing control and trust in dealing with risk.International Journal of Project Management.33(4). pp.852-862. Online CompanyprofileforUnilever.2019.[Online].AvailableThrough: <https://www.theguardian.com/sustainable-business/profile-unilever>. Leanprinciples,2019.[Online].AvailableThrough: <https://www.lean.org/WhatsLean/Principles.cfm>. Waterfallmodel.2019.[Online].AvailableThrough:<https://www.toolsqa.com/software- testing/waterfall-model/>. 17