Operations and Project Management: Review and Critique of Operations Management Principles in Unilever
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This report discusses the implementation of operations management principles in Unilever, including a review and critique, analysis of its extent, and a continuous improvement plan. It also covers Lean principles and the Six Sigma tool. The report is based on Unit 187 â Operations and Project Management.
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ID Unit Number and TitleUnit 187 â Operations and Project Management TitleReview and Critique of Operations Management (Part 1
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Table of Content Part 1: Business Report 1. An introduction to chosen organization2 2. An explanation of operation vs operations management2- 3 3. A review and critique of the implementation of operations management principles within the chosen organization3- 6 4. An analysis of the extent to which the operations management of the organisation in the case study meets the requirements of the organization6- 7 5. Discussion of continuous improvement as a philosophy and describe the Lean principles7- 8 6. A continuous improvement plan, including your justified recommendations for improvement, based on your review and critique of operations management principles within your organization8- 9 7. Conclusion9 Referencesp 2
1. An introduction to chosen organization Operations are the day to day activities that the performed in the premises of a business entity by its employees. These operations are necessary as they are process that leads to the final product or service that the business entity is providing to its customers(Yu-lu and Fu-hua, 2018). These operations should be managed properly and when they are managed in a proper way they lead to effective and increased performance of the employees and the organization. The proper planning and execution of the operations also leads to fuller utilization of the resources. The report file is based on the proper management of the operations and projects in a business entity. The company chosen for the file is Unilever which is consumer goods company headquartered in London, United kingdom. It is a multinational company that renders services to different parts of the world. The file first starts from the conduction of the review and critique in implementing principles of the operations management. Then there is a continuous improvement plan based on the critics and review mentioned before. It then moves to the application of project life cycle in a project that produces necessary documentation. At last, there the review and critique of the effectiveness of project life cycle using appropriate models. 2. An explanation of operation vs operations management There are different types of operations that are practiced in a company such as â the manufacturing, supplying of goods or raw materials, producing of final products and many more(Li, 2021). When these different types of operations are organized in a proper format and are already planned in a way to maximize the performance and making efficient in the business process, this phenomenon is called operation management. The management of these operations in an effective way not only helps the firm to manage the quality and amount of production but also helps in 3
the strategy making process and to utilize the resources of the company. Basically the operation management controls all the activities that occur in the company. Several differences between the operations and operation management are mentioned in the following in a tabular format : OperationsOperation management ďˇThese are the activities that are carried out on a day to day basis in a business organisation ďˇOperations are comparatively simplistic. ďˇThe responsibility of maintaining operations are divided to individuals or may be small groups according to the complexity of the operation. ďˇWhen the operations of a business are regulated and managed in an efficient manner to increase the productivity and quality of the results, it is known as operation management. ďˇThese are complex to form and maintain(Wang and et.al., 2020). ďˇThe operation management are managed and formed by a group of individuals that form a team. 3. A review and critique of the implementation of operations management principles within the chosen organization The management of operations and projects is a very crucial concept in the process of executing a business entity effectively. It works in dividing the tasks of a company into different groups by classifying them according of their work or departments. Unilever is a large multinational company. It is one of the leading manufacturer of the consumer goods in UK as well as in the whole world. It is renowned for its quality products. It makes and serves different products in different markets / countries according to the demand of the native people. This helped the company in gaining the trust of a large base of customers. The company works at a high level maintaining its large scale operations to deliver its products globally. For maintaining high number of operations it use operation management and projects (Conway and Leadbetter, 2021). As the demands of the consumers are shifting towards using non toxic organic products that do not contain harsh chemicals in it, Unilever has made several strategies to shift and mould its products towards the concern. The company has used various principles of operations management for 4
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the related concern. There are several principles of operations given by Randall Scheffer (A operations management and manufacturing management expert). These principles are mentioned in the following : ďˇRealityâ Every type of organization faces problems in its working and it is impossible to avoid or stop all the problems that are coming as a hindrance in its way. So this factor says that the companies should focus on large problems that have high effect and ignore the smaller ones, ďˇHumilityâ The limitations should be understood by the managers in place of wasting their efforts on small things. This will help them in saving their time, efforts and money and also positively impact the company in the long term. ďˇOrganizationâ Everything is interconnected in the process of manufacturing goods or producing / rendering services. There should be a prediction and consistency in all the elements(Exner and et.al., 2021). ďˇAccountabilityâ There should accountability in the people who manages the operations and the managers or owners must have check or go through the balance to assure the accountable. ďˇChangeâ The rigid structure and operations are not effective and can not lead to high productivity and performance. There should be flexibility and changes in operational issues. New solutions should be tried and welcomed as the demand of people and way of doing work keeps on changing with the dynamic environment. ďˇQuality controlâ There must be quality controls in the process of manufacturing as these quality control or quality checks guarantee the quality the end products. It involves the process of monitoring the whole process of raw materials as they move through different logistics in the process of getting the end product. ďˇSuccessâ In the process of achieving success in the organization, the final users that are the customers, must be happy with the product or service of the company(Hanzha, 2020). If the customers are satisfied with the products of Unilever they will comeback to buy and vice versa. 5
ďˇKnow your competitionâ The market is full competition. These are the other companies they operate in the same industry and decrease the base of customers by providing service to some of them. The study of these competitors is important in the consumer products industry as if they are practicing some effective operations that are not known by the other companies, they can gain a competitive advantage that will have a negative effect on Unilever. ďˇCausalityâ The problems have some signs that can be seen before they occur. Managers must keep an eye and determine underlying problems to avoid them. ďˇConsumer collaborationâ This principle is about the interaction and understanding of the customers to analyse their wants and satisfy them accordingly. This can be through collecting insights and feedback of the customers. This can also help the company in upgrading its products and services(Heigermoser and et.al., 2019). 4. An analysis of the extent to which the operations management of the organization in the case study meets the requirements of the organization The principles of operations mentioned in the above are very important for a business entity in order to increase profitability, achieve growth and develop a successful enterprise. With a great position in its industry, Unilever is considered as the market leader. The ways in which the company uses operational management to fulfill the demands of its customers are mentioned in the following ways : ďˇThe basic requirement of the consumers in the market for their daily needs is the availability of cost efficient products that are not too much cheap nor much expensive and are in budget of the large base of customers that are middle class. ďˇThe quality is also demanded by the customers. It is also an important factor that influence its sales in the market(Pokorski, 2020). The quality was first considered by the goodwill of the company in the market, its packaging and some important essentials in it. The current market is demanding products 6
that are organic and not contain and harmful chemicals. Unilever is trying to fulfill this demand of the customers and making products accordingly. ďˇThe work place or the premise of the company are well maintained and it is ensured that they are clean, joyful, healthy and promote the efficiency of the employees. The vision and mission of the company are considered very important. 5. Discussion of continuous improvement as a philosophy and describe the Lean principles Continuous improvement is the process of achieving continuous growth by a business entity through operating in effective and efficient manners. This process needs creation of plans and their implementation in appropriate manners. This is a continuous process that needs full focus and hard work with consistency. The continuous improvement leads a business entity to growth and success with increased profitability and stability over the market. Lean principles : There are some principles used in a business organization have control over the wastage that has been happening during the process of producing end product. These principles are known as lean principles. These principles help in reducing the production costs of the product / service for the company(Han and et.al., 2022). The lean production is used in many different ways that are known its methods. Some of the major methods of lean production are mentioned in the following ways : ďˇKaizen âIt is the most common and old method of lean production. It focuses on achieving sustainable improvement of the firm through eliminating waste and improving production. This focuses on making small changes in the routine that leads to high results. ďˇJust in time (JIT)â This is the method of lean production that focuses on inventory management. This elaborates that the goods or raw materials that are needed in the process of production should be ordered or received when they are needed and only in limited quantity(Pu and Zhang, 2020). In terms of Unilever, this method will not prove to be effective as the company needs high 7
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amount of inventory for its large scale operations and it can lead to reduce the productivity of it.ďˇBench markingâ This is the structured way in which products, strategies, process and programs are compared and the most effective ones are chosen for implementation. Application of six sigmas and their effectiveness : Six sigma is a tool that is used by business entities for analyzing the dynamic business environment. This is a helpful tool or technique that are used by companies to enhance their production capacity and achieve objectives in order to increase its overall profitability and achieving growth(Shen and et.al., 2020). As the name six sigma specifies, there are six elements in the tool. These elements are discussed in the following points : ďˇDefineâ The process starts with identifying the goals and objective of the firm that it needs to achieve from the point of view of the customers. This helps in analyzing the deep rooted and actual problems that have been affecting the company negatively. ďˇMeasureâ This element is about measuring the extend of the problems. This also mentions the checking of the level of quality of the products. This principle can help Unilever when it wants to improve its product quality. ďˇAnalyzeâ This principle is about the analysation. The analysation can be about the variations in the planned and actual performance, in the quality of the products and analysation of various cost effective processes and materials, ďˇDesignâ This is the uniqueness, level of satisfaction it is providing and attractiveness that the company is giving in it products and services . Unilever must design its products that can show the involved ingredients, benefits and can attract the base of customers. ďˇVerifyâ This is the last process that is about the verification that all the process have been done in the most effective and efficient manner. 6. A continuous improvement plan, including your justified recommendations for improvement, based on your review 8
and critique of operations management principles within your organization ďˇPlan âA plan is a list of steps that are analysed and put together with the motive of achieving any task. The planning a crucial activity for a business entity to achieve its goals and objectives. Planning is also a complex activity and needs to be properly understand and made with effectiveness. All the tasks or operations that occur in a firm are based on the plan and everyone are ordered to follow the plans made. The plans should be made by considering different influence factors such as the demand of consumer, available resources and efficiency of the manpower. With the changing demand of customers towards organic products, Unilever has shifted its planning accordingly. ďˇDo âAfter making the plan by considering various types of considerations, the step comes to implement the ready plan in the organization(Heissenberger and et.al., 2022). To cope up with the ever changing dynamic market, small or short term plans should be made and implemented. ďˇCheck âThe plan made and presented or the changes in the organization are needed to be checked in detail regularly. When monitored regularly, Unilever can reduce errors in its operations. ďˇAct âNeeded actions for the implementation of the plan and its monitoring are essential to be practiced. The step of act is the most important one as planning only gives us the form or tell about the operations that can be done to ach9ive success, but acting and implementing plan is necessary without it there will be no use of the plans. Unilever should effectively act according to its plan that is clear with its employees so that there are no confusions. 7. Conclusion From the above report it has been analysed that operation and project management is an effective way of controlling the operations and projects of a company that leads to success of the company and higher profitability. There are 9
different and various types of operations that are practiced in a business entity. The effective management of these operations highly helps a company. The projects should be formed according to the needed work and results. References Write your answer here Table of Content Part 2: Project Portfolio Project Titlep An overview of the case study you have been givenp An explanation of each stage of the PLC that applies to your selected project, including supporting documentation for each stage (e.g., business case, the project plan, cost-benefit analysis and work breakdown structure): ďProject initiationp ďProject planningp ďProject executionp ďProject closurep Analysis of the project methodologies and tools usedp Review and critically evaluate the effectiveness of the PLC in application to your project using the appropriate theories models and conceptsp 10
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Project Title ďˇMinimising the movement of workforce outside the premises of the company at the time of lunch break that is becoming to be a congestion issue in local areas. ďˇContribuiting in developing a helathy lifestyle of the staff members to reduce staff absenteeism and assuring CSR practices(Jamous and et.al., 2018). An overview of the case study you have been given Cromwell is a business firm that manufactures different types of tools and is situated in the midlands. It is a large scale company with around 1250 total number of employees on the site including the office staff and field workers. The line manager has given some problems that the company is faci currently and demanded the ways in which the problems can be solved. The problems are â to reduce the numbers of staff people that are moving towards the local areas at the time of lunch breaks and help the workers in leading a healthy lifestyle. The company needs to take some measures or actions that can work towards the corresponding concern. An explanation of each stage of the PLC that applies to your selected project, including supporting documentation for each stage (e.g., business case, the project plan, cost- benefit analysis and work breakdown structure): Project life cycle (PLC) It is a framework that include the processes that are to be followed and the steps in which the processes are going to be practiced in a business entity. The project life cycle is divided into different phases that are expected to be followed in a according manner and which will lead the company towards successs by reaching its 11
goals. There are differences in the project cycle of every company and there can be difference or similarities in the phases of the cylce according to the industry of company. The project involves duration and dates of start and end. There are four stages in it â initiation, planning, execution and closer. These stages have been discussed in the following : ďProject initiation The project cycle starts from the ideas and perceptions that can be developed into a successful project to help the business enterprise grow. The ideas need to be acutally possible and can be implemented with the possible available resources with the thinker. The ideas are needed to be shared with each other between the employees or other related people of Cromwell. ďProject planning After checking the applicability of the ideas and their expected results, the process of planning comes. In this, the budget, needed resources like money, goods and employees are planned. The firm has 50,000 dollars as a fund for employee's health and hygiene. This money can be used to build a canteen area for the employees that have good food available and include peaceful or joyful place where the employees can spend their lunch break happily. Lean principles can be used for the planning by the company. ďProject execution After the planning, the step of actual execution of the plan comes. This is the most hard, important and considerable step of the project cycle(Shi and et.al., 2020). For the execution of the corresponding plan, the needs and wants to employee / workforce should be analysed and built that includes choices of food to eat and things like indoor games that can give pleasure to them. ďProject closure It is the final step where the project ends. The closing reports are made, investors are settled and there is the conclusion of the project. The Cromwell company needs to analyse the results of the project and take measures accordingly. Building a case: Executive summaryIt is a project made for Cromwell company to reduce the number of employees that leave the premises in the lunch time and assisting them to live a healthy life that could help it in decreasing the absenteeism and following CSR activities. VisionEncourage the workforce and people about living healthy lifestyle 12
and maintaining Corporate social responsibilities. MissionThe attract the workers towards the new services / facilities ObjectivesTo improve the level of health of the employees and decrease their move outside the premises at lunch time StrategiesProviding simple and healthy food and low prices can be a strategy for the company to attract the workers. InnovationThey can use buzzers or electric bells that can make sound to tell the employees about the start and end of the lunch break. OpportunityThe canteen can provide an opportunity for passive side income for the company. ImprovementThe feedbacks or reviews can be taken by the workforce of how they liked the service. This can highly help in analysing the needed changes that can help in improvement. Resources requiredResourceslikerawfood,kitchen,foodprocessingmachines, employee that can handle the canteen and playing games are required for the corresponding project. Analysis of the project methodologies and tools used PLC is a very important and effective method that helps in identifying the various influencing elements that effect the operations of a business entity(Ma and et.al., 2020). It leads in providing successful projects to a company that help in its growth and several other achievements. It has been divided into different stages to assure its applicability. Six sigma and lean methods can also be used together with the cycle. Review and critically evaluate the effectiveness of the PLC in application to your project using the appropriate theories models and concepts Project life cycle is a necessary document or process that consider planning, initiation, execution and closure. These are fur accordingly mentioned different stages of PLC assure its effectiveness. These are practiced in the according form 13
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and support the next one. The hazards or errors that can come as hindrance in the way can also be identified using this. The six sigma can support and make the cycle more efficient and effective. 14
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InProceedings of the 3rd International Conference on Information Technologies and Electrical Engineering(pp. 416-419). Shi, S. and et.al., 2020, June. Operation Management System Adapted to High Penetration Distributed Generation Integ Jamous, N. and et.al., 2018. IT Operation Management-A possibility in the flux of digitization. 16