Operations and Project Management: Aldi Operations and Continuous Improvement Plan

This document provides an overview of operations and project management, focusing on Aldi operations and a continuous improvement plan. It discusses the difference between operation and operational management, principles of OM followed by Aldi, and recommendations to improve operations function. Additionally, it explores a project undertaken by MFI company to enhance customer experience and develop a sales strategy, explaining each stage of the project.

Operations and project management
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INTRODUCTION
In every business there are various types of operations which is performed. These
operations vary as per type and nature of business. Also, operational management is process of
handling and managing operations and its efficiency. It is important to follow certain principles
of OM so that there is smooth flow of operations. There are different types of OM models and
concepts available. The organisation implement it on basis of its requirements. However, success
of goals and objectives depends on effectiveness of operations (Eom, and Luftman, 2020).
In this report it will be described about Aldi operations and difference between operation
and OM. Besides that, it will be explained about OM principles followed in company. Also, a
continuous improvement plan will be discussed. Furthermore, in second part a project of MFI
company will be explained along with its each stage. It will be mentioned about theories and
concepts of PLC as well.
PART 1
Introduction to organisation
Aldi is retail chain of supermarkets founded in 1946 by Karl and Theo albrecht. It is
headquartered in Essen, Germany. They are having across 11,234 stores in 20 countries.
Basically, company is divided into two that is Aldi nord and sud. The company offer various
types of products such as Grocery, household essential, etc. there are 35 regional companies in
nord and 32 in sud. It usually operate in Europe and US.
Explanation of operation vs operational management
Operations refer to daily production activity of products within an organization. It
transform raw material into finished goods. Also, it includes strategic planning of daily business
function. In an organization there can be many types of operations performed.
Operational management refer to practice to create highest level of efficiency within an
organization. Moreover, OM involve use of resources, material, technology, staff etc in
operations. The main purpose is to increase operating profit. It solve issues, use project
management and implement it. In firm there is only one OM department (Keogh, 2020).
Implementation of OM
The nature of OM is flexible and multidisciplinary and is often discussed in context of
manufacturing and production of goods and services. It transforms raw material into finished
products with help of machine, man power and technology. the relations are managing to procure
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organisation’s sustainability. OM consist of processes, such as planning, organising, controlling,
etc. So, in context of Aldi there are several principles which is followed. They are defined as :
Inventory management - It helps business to manage the inventory and bringing efficiency in
optimal use of resources. In this it is also considered about reducing waste of resources, as well
as cost incurred in production of goods in Aldi.
Cost Reduction- This is another principle of OM as it eliminate and discard the unnecessary
processes from the production line. It enables in saving direct and indirect cost incurred on those
processes or procedures.
Optimisation of Available Resources- In Aldi OM principle helps in efficient utilisation of
resources within various operations. Thus, new process or methods are identified and
implemented within operations. It can be either technology, system, statistical analysis, etc.
Management of the Suppliers: In OM it is necessary to manage network of supply chain. Here,
data and info needs to be kept of warehouse, suppliers, stores, distribution centres, etc. of Aldi
Quality management- It is related to bringing the efficiency within operations (Kim, Chang,
and Castro-Lacouture, 2020). OM transforms the working principles of the organisation by
introducing the quality management concept in the organisational objectives. It is essential from
the customer’s view point as all they need is quality products.
However, all OM principles are interrelated with six sigma and lean. This can be
identified that managers apply six sigma principles in order to improve the quality of process by
eliminating the errors. It is useful in reducing cost and saving time of operation as well. Thus, by
implementing the six sigma in organisational operations it can led to use of huge cost, but it
provide long term benefit for Aldi. This results in higher quality products and services, thereby
satisfying the needs of the customers. Likewise, lean principles are related to reducing wastage
of resources and optimising it in efficient way. This method cut the production cost and
therefore, provide an additional benefit to the firm. In Aldi the lean manufacturing is not
implemented overall but in complex areas. In recent era, organisations are analysing importance
of waste reduction, enhancing quality, and gaining customer satisfaction.
Analyse extent to which OM meet requirements of organisation
It has been analysed that in aldi the operation are effectively managed and organised. The
company is able to maintain quality of its products and also efficiency of operations. This has
enabled them to attain goals and objectives. However, in Aldi total quality management is

applied within operations. With this they are able to maintain quality of products and services.
Thus, now product are produced in such a way that its quality is maintained. Hence, company
objectives is met with it (Kozak -Holland, and Procter, 2020). Likewise, the areas are identified
where efficiency is lacking in operations. Furthermore, the use of lean principle has led to
achieving goals of reduction in production cost. There is 8 -12% less cost incurred on goods.
Prepare a continuous improvement plan
Every business needs to make continuous improvement so that they are able to sustain for
long term. For it a continuous improvement plan is document which contain strategies of how to
make a product or process better. There is difference between this and other plan as it consists of
loopholes within process and finding out ways to enhance them. Generally, main aim is to
improve company performance by taking some measures. It emphasis on linear and incremental
improving of process with help of statistical tool. In Aldi continuous improvement plan is
developed to improve quality of products. The plan is as follows
Step Objective Responsible Time
Evaluating previous
goals
it is first step where
Evaluation is done of
previous goals. This
helps in getting insight
about what goals are
not attained.. Likewise,
in aldi operations
principles goals are
evaluated. So, it is
found that goals of
enhancing quality of
all products is not
improved.
Operation manager 1 week
Data analysis- here data analysis is
done by gathering data
Data analyst 3 days
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and info of entire
operations. This will
help in determining
area where
improvement is
required. The data also
help in setting of
comparing of outcome
with goals (Lin,. and
Huang, 2020). Thus, it
provide specific info.
In Aldi operational
process data regarding
principles and task is
obtained. So, it is
found that quality of
grocery food products
is not improved
Evaluating progress in this progress is
evaluated of
operations. It is
ensured that whether
principles are followed
or not. Also, it is
ensured that plan is
implemented in
effective way or not
General manager 5 days
Forming of goals- the new goals are
formed regarding how
continuous
improvement can be
General manager 2 days

done. They are
different from previous
goals. Therefore, in
Aldi goal set is to
enhance quality of all
products and keep
them up at same level.
Planning process- planning is done
regarding how plan
will be executed, who
will be involved in it,
what activities are to
be done etc for that a
manager is appointed.
In organization it is
planned that lean and
TQM OM principles
will be executed. This
will be done within
specific time period.
This will be applied for
different products.
However, some goals
are set in it (Maltese,
and Li, 2020)
Operation manager 2 week
Compliance it is a step where
standards are set of
plan. This is ensured
that plan is
implemented as per
Operation manager 1 week
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certain rules.
Moreover, for what
activity, which
standard is followed.
Recommendations to improve operations function
There are some recommendations which can be followed by Aldi to improve their
function. They are as follows
The company should use advance technology such as AI, IOT and robotics within operation
function. This is because it will help in bringing automation in operations. Furthermore, it will
led to eliminating small error and faults. All standard will be properly maintained and checked.
In this way efficiency of function will increase.
Another is Aldi can provide high profile training to employee. For this they can hire expert. It
will enable in monitoring of operation function in efficient way and determining error. These can
be reported and solved quickly.
PART 2
Overview of MFI project
MFI is a furniture retailer company in UK offering services to customers. There was
increase in a lot of complaints from customer regarding service quality, price, goods quality, etc.
Due to it sales was declining and customer want to shop for value of good. Therefore, in order to
fulfill needs of customers and earn high profits a project was undertaken. The company want to
enhance customer experience and focus on meeting their needs. Thus, MFI wants to developing a
sales strategy (McGrath, and Whitty, 2020). The purpose was to develop an effective system,
procedure, etc and to provide info to solve issues. This strategy will focus on real time demand
of customers and responding to their needs. Moreover, it was taken for a long term success. As
company is having both internal and external customers. Along with it, strategy emphasis on
consulting with customer regarding sale of MFI products. Then, service quality level will be
identified. Here, a team will be formed to identify relationship within internal and external
customers. The TQM method will be applied along with continuous improvement plan to review

process and action. Moreover, service benchmarks will be formed to compare MFI strategy with
others. Within project overall measures and standards will be upgraded.
Importance of project, its target market and cost benefits
Here, importance of this project is to enhance customer service level by fulfilling their
needs. Besides that, sales strategy will help in maintaining value of customers as well as
company. Also, it will develop a new process, structure, system etc through which various
customer related issues are solved. Furthermore, they will analyse real demand and fulfill it in
quick time. Another importance of project is to provide a flexible way of response to customer
needs within framework of company.
Here, sales strategy target market is internal and external customers of MFI. Internal
means customer of different department such as sales staff, store and product designers,
administrators, etc. within MFI and external are those who are outside consumers. Along with it,
sales staff and entire MFI team involved in offering customer services is also target market. It is
because they have an important role to play (Meng and Sun, 2020).
Furthermore, the cost benefit of project is that it will help in offering high quality services
to customers and enhancing their values. Also, TQM will enable in improving process
management and gaining customer satisfaction. Thus, cost of managing process will be reduced
and customer complaints is solved quickly. So, they will be retained for long term and it results
in generating more revenue. Therefore, in order to build customer relation MFI will not have to
incur more cost. It will provide benefit to them.
Explanation of each stage of project
Generally, in every project there are 4 stages which help in completion in deadline. The
stage determine progress of project. With help of that, it is easy to break project into stages and
do planning accordingly. Similarly, in sales strategy project as well the stages are defined as
(Phases of project management life cycle, 2018)
Project initiation- in this first stage the project goals and objectives are identified. Besides that,
project stakeholders are determined and what are their needs. In this project charter is developed
including milestone, constraints, etc. In MFI project initiation stage will be framing of project
charter that is goals of sales strategy, milestone of sales, etc. the stakeholders will be identified of
project and then their needs will be determined of sales strategy. The assumptions, constraints,
etc of sales strategy will be identified as well. So, entire sales strategy will be planned.
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Project planning- this is second stage where planning is done. Here, work break down structure.
Gannt chart, schedule etc are developed. With that project is broken into several stages. The
entire project success depends on planning. Along with it, in project team roles are assigned to
them and task are determined (Shirley, 2020). Here, in MFI sales strategy project planning will
be done that who will be team to implement this, role of sales staff, store and product designer,
etc. how strategy will be executed etc. besides that, what benchmarks and standards are set, goals
of strategy, etc. as it is time consuming process so management of MFI will be involved in it.
Project execution- here, project is executed and stakeholders are managed. Also, task are
monitored by manager. On basis of task data and info is shared . Now, MFI sales strategy will be
executed here. The team members involved in it will perform their roles. Apart from it, data
regarding sales of products will be shared with other departments. Moreover, customer needs and
response towards strategy is done. The new system and structure will be applied and staff will
have to do work accordingly. In this way, sales strategy will be applied.
Project closure – here project is closed and evaluation is done. Then reviews are taken of
stakeholders. In this stage, execution of sales strategy will be done. It will be identified whether
goals and objectives are attained or not. Furthermore, monitoring of strategy activities will be
done. Besides, it will be analyzed whether issues are solved or not.
Prepare a WBS

Produce a ghantt chart
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In MFI project it is required to select a project methodology. This enables in breaking
down project and complete in effective way. Also, it provide a framework on how to finish
project in step by step manner. So, for that lean methodology is suitable. It is because tbe method
focus on enhancing customer value with minimum resources. Similarly, here sales strategy can
be developed by improving process (Soares, Magalhães and Mendes, 2020). It will be useful in
eliminating those resources which are not in use and providing a way on how to improve
customer value. Therefore, a strategy can be developed with short but fast process. In addition,
there are certain tools required as well in it. So, project tools include use of Gannt chart and
project management. It will be useful in developing schedule and network diagram. The manager
can allocate resources and find out critical activity.
The leadership style that can be followed on it is participative. The leader can allow employees
to engage in decision making. He can take suggestions from them and then take final decision.
Besides that, it will help leader to work in collaboration with team members. The leader can
make decisions on basis of views and opinions given by employee. It will help in quick
implementation of decision taken. Leader may also allow member to take decision on themselves
and make things easy to do it.
a)
There is significant role of PLC used in project. This is because it allows in providing a
depth in what project is all about. In project initiation stage it describe of goals, scope, etc and
what it is all about. Thus, it is useful in planning of further process easily. In MFI this will be
easy to develop strategy and find out who will play what role, how it will be executed, what
goals are formed in it, etc the lean method will give info about what changes are to be done, how
project is broken down. Now, in project execution stage, lean method will be useful in focusing
on generating customer value. The sales strategy can be executed to minimize process of
delivery products and services to people (Tang, 2020).
b)
Basically, there are two types of project that is small and large. But in both PLC is
followed as the stages are same in it. Therefore, use of model differ in both of them as they are to

be selected on basis of type and requirement of project. It has been stated that in small project
models applied are traditional one. It is because the project can be easily completed through that.
However, those project are not complex as well. On contrary in large project modern theory and
concept are used because it helps in breaking of project and according completing it. Along with
it, they are complex as well So with modern theory its complexity can be mitigated. This
becomes easy to proceed in step by step manner. For example, lean, PRINCE 2, waterfall, etc are
some modern concept which is used in large project. They can not be uses in small one as it
becomes difficult to understand and apply them in it (Zhang, and Chen, 2020)
c)
In project it is necessary to ensure that quality, scope is maintained and also it is
completed on time. It is because if there is any chain quality than scope is affected. Also, it
impact on tenure of project as well. For that there are some technique which can be used in it. To
ensure quality, a plan can be developed that is quality planning. In this monitoring can be done.
Furthermore, standard can be set and goals are measured with it. Thus, on each stage quality can
be assured. However, for scope the project schedule can be developed. It will enable in finding
out what activities are required. Here, scope planning can be done. It will help in ensuring scope
is not affected. Besides that, for tenure schedule can be developed in which Start and end time of
each activity is mentioned. This will help in monitoring of it and ensuring that activity is finished
on time.
CONCLUSION
Hereby, it is summarised that OM refers to process or method of managing and handling
various operations. There are various principles OM which is followed such as inventory
management, cost reduction, etc in Aldi TQM is applied to maintain quality. Also, continuous
improvement plan is document which contain strategies of how to make a product or process
better. Moreover, there are 4 stages in project they are project initiation, planning, execution and
closure. In MFI lean project methodology is chosen as it will help in focusing on customer value.
The leader will follow participative leadership style.
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REFERENCES
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Online
Phases of project management life cycle, 2018. [online] available through :
<https://www.guru99.com/initiation-phase-project-management-life-cycle.html >