Operations and Project Management: Aldi Operations and Continuous Improvement Plan

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