Project and Operational Management Assignment

ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 5 HND Diploma in Business
Unit number and title Unit 16: Operations and Project Management (528)
Submission date 25/01/2021 Date received (1st submission)
Re-submission date Date received (2nd submission)
Student name Dinh Hong Son Student ID GBH190436
Class GBH0908 Assessor name Nguyen Thi Ngan
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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.
Student’s signature: Son
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Table of contents
I. Introduction...................................................................................................................................4
II. Operational management and relationships with functions in the business...............................4
2.1. The definition of operations, operations management and operations function...............4
2.2. Operational processes.......................................................................................................5
2.3. Operational Process in VNSTEEL.....................................................................................6
2.4. Principles of modern operational management.................................................................8
III. Continuous improvement in the business context...................................................................12
3.1. The concept approaches to operations management.....................................................12
A, TQM and PDCA process.............................................................................................12
B, Lean production...........................................................................................................13
C, Six sigma and DMAIC process....................................................................................13
D, Scientific Management................................................................................................14
3.2. Business Process Reengineering - BPR........................................................................15
3.3. The benefits and drawbacks of Lean and Six Sigma have led to a trend of incorporating
Lean Six Sigma into modern operational management.........................................................15
3.4. Six sigma method is applied to Vnsteel...........................................................................17
3.5. Evaluation the roles of Lean Production in Vnsteel in operations management.............18
IV. Continuous improvement plan for Vnsteel...............................................................................18
4.1. The role of process technology in Vnsteel......................................................................18
A, Apply management software ROSY............................................................................18
B, The Role of ROSY......................................................................................................19
4.2. Evaluation and Recommendation....................................................................................19
A, The Evaluation of Six Sigma at Vnsteel......................................................................19
B, Proposal for additional methods.................................................................................21
V. Conclusion................................................................................................................................21
References....................................................................................................................................22

I. Introduction
Working for Ernst & Young, one of the world's most prominent consulting organizations, as an
operational and management consultant. The goal of this study is to identify HOCHIMINH CITY
METAL CORPORATION - JSC's operation management method, concept, and operation
management approach (VNSTEEL). VNSTEEL was formed by integrating the steel industry's
production and business units, Metallurgical Corporation and Steel Corporation, in Vietnam. The
establishment of Vietnam Steel Corporation - JSC is linked to the country's and the metallurgical
sector's development, laying a firm foundation for the growth of the domestic steel industry.
VNSTEEL is currently organized as a joint-stock company with almost 40 linked units,
subsidiaries, and associated businesses (VNSTEEL, 2021). This report is broken down into
three sections. The essential ideas of operations and operations management are presented in
the first section. The following part focuses on VNSTEEL's operational management processes
implementation. Finally, make recommendations on ways to improve VNSTEEL's operational
management capability.
II. Operational management and relationships with functions in the business
2.1. The definition of operations, operations management and operations function
Slack and Johnston (2001) define operations as "any activity related with the transformation of
goods, information, or customers." The operation, to put it another way, is the process of
converting materials (input) into products or services (output).
Operations management is vital, according to Slack, Chambers, and Johnston (2007). It is
concerned with the delivery of products and services that we all rely on. And the very reason for
any organization's operation, whether large or little, manufacturing or service, for-profit or not-
for-profit, is to provide products and services. Consequently, most businesses are now aware of
the significance of operations. This is because they have understood that effective operations
management can increase profits while also allowing for more efficient production of goods and
services. Any firm understandably values the mix of increased income and reduced costs.

The operations function, according to Porter (2009), is the part of the organization responsible
for the production or delivery of goods and services. Because every business produces
commodities and/or services, this means that all organizations engage in operations activities. In
reality, the operations function is crucial in addressing customer needs and plays a significant
role in the organization's overall performance.
2.2. Operational processes
According to Slack & Johnston (2001), the operating process is understood that the input-
conversion-output process must be executed flawlessly to maintain the company's continuous
competitiveness. Simply explained, operations are processes that use a set of inputs to
transform something or convert outputs of services and products into outputs of services and
products. Even while all operations follow the same fundamental input-conversion-output
architecture, the nature of their inputs and outputs differs. In the case of commercial businesses,
the new process devotes a significant portion of the company's resources to offering consumer-
oriented services.
The different kinds of inputs to any operations process are transformed and transforming
inputs. Raw materials that are transformed into goods that are loved and demanded by the
marketplace are known as transformed inputs. Transformed resources, as the term implies,
are raw materials that undergo a change in order to be converted into marketable shapes.
Consequently, both end products and raw materials are classified as changed goods. All
buildings, machinery, hardware and software, and other related objects that are utilized to
change raw materials into end products are classified as transforming resources (Slack and
Johnston, 2001).
Davis, Kee & Newcomer (2010) pointed out that a transformation process is any action or set
of activities that takes one or more inputs, transforms and adds value to them, and produces
outputs for consumers or clients. It is generally easy to recognize the transformation involved
when the inputs are raw materials, such as when milk is turned into cheese and butter. The
nature of the change may be less evident when the inputs are information or people. A hospital,
for example, converts unwell people (the input) into healthy patients (the output) (the output).

The process's output is the product or service. Products are usually tangible items, whereas
services are primarily actions or processes. A product is something like a car, a newspaper, or a
restaurant meal, but service is the conduct of the client who uses or consumes that commodity.
Some services are unrelated to the product. A consultation, like a haircut, is a series of steps
(although some products may be offered to support the service, such as reports or hair gels).
Furthermore, while most things can be stored, at least temporarily, service is only provided when
it is consumed or used. So, if a hotel room is not sold that night, the reservation will be canceled;
if a restaurant table is not filled that evening, the reservation will be canceled (Slack, Chambers,
and Johnston, 2007).
Although all active processes change the input, they differ in some ways. Production volume,
output variety, output demand fluctuation, and customer visibility are all required features for any
operational processes that affect the input (4Vs). The first is in terms of volume, which relates to
how much of a certain product must be produced to meet the industry's total demand. The
physical number of units or goods produced is referred to as this. The second factor is variety.
This refers to the wide range of goods and services that will be manufactured and supplied to
clients. Selling a diverse range of products and services allows businesses to expand their sales
and profit potential while reducing their reliance on one or two products, which can lead to
organizational collapse if demand for that product dwindles or disappears. The next step is
variation, which refers to how much demand fluctuates over time as a result of external causes.
Several factors, however, make it difficult to predict variance. Finally, there's visibility. This
refers to the entire value chain of a company's procedures. Customers must be able to try out
the company's goods or services. In comparison to the manufacturing industries, the service
industries have a strong presence in the market (Slack and Johnston, 2001).
2.3. Operational Process in VNSTEEL
In this section, the steel production process will be used as an example for the main analysis.
The transformed input to be converted in this process is the raw material (scrap). The scrap
processing stage is a crucial and decisive step in the formation of slag, and it is also a significant
step in the usage and consumption of raw materials for manufacturing slag, to have a good slag
product with high metal recovery. Southern Steel scrap comes from two domestic and