Review and Critique of Operations Management and Project Life Cycle at Unilever
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This report analyzes the implementation of operations management principles and project life cycle at Unilever. It discusses principles of operation management, Taylor's theory, continuous improvement methods, and provides a continuous improvement plan for Unilever.
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ID Unit Number and TitleUnit 187 – Operations and Project Management TitleReview and Critique of Operations Management (Part 1) Project Life Cycle (Part 2) 0
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Table of Content Part 1: Business Report 1. An introduction to chosen organizationp 2. An explanation of operation vs operations managementp 3. A review and critique of the implementation of operations management principles within the chosen organizationp 4. An analysis of the extent to which the operations management of the organisation in the case study meets the requirements of the organizationp 5. Discussion of continuous improvement as a philosophy and describe the Lean principlesp 6. A continuous improvement plan, including your justified recommendations for improvement, based on your review and critique of operations management principles within your organizationp 7. Conclusionp Referencesp 1
1.An introduction to chosen organization Operation and project management refers to business practice to create highest level of efficiency. It helps in generating more revenue and better products can be made which help in satisfying needs of customers (Zhang, Wang and Lin, 2019). The report examines, different operation management principles, analysis of management, continuous improvement plan, effectiveness of continuous improvement. Project management refers to handling all issues and solve problems so that work can be completed on time. Unilever is a public limited company which was founded in the year 1929 by Lever brothers. Its headquarter is situated in London, England. It is one of the well- known organisation and provide good quality products so that needs of customers can be satisfied. Unilever has its branches all over the world and provide products like, food, ice-cream, wellbeing vitamins, tea, coffee, water and air purifiers, beauty products and many other products. For managing day to day activity it is important to make plans or strategies so that better products can be made and there will be no confusion among employees (Murphy and Murphy, 2018). In Unilever company, all employees are working properly and doing work as per the instructions given. So, Unilever is one of the best company which provides good quality products to customers and satisfy their needs. 2. An explanation of operation vs operations management Operation refers to work of managing internal work of an organisation. When all plans or strategies are made by managers then it becomes easy to work and accomplish goals and objectives. For success of business it is important to focus on how to achieve targets by attracting more people and it also help in generating more revenue. It is the responsibility of managers to make plans for running business smoothly and attract people. Operation function describes how business will run, what are the activities which is to be performed by employees and helps in designing function (Liu and et.al., 2018). It is important to identify factors that can affect performance of company and make plans to solve issues so that work can be completed on time and there will be no problem in future. Operation management refers to area of management which describes about designing different functions and controlling day to day activities in an organisation. In Unilever company, all the decisions are taken by managers and they are responsible for managing all work. In Unilever company, managers are analysing market situation and according to that they are making plans so that there will be no confusion. Operation is major function of every organisation because it includes different department such as, supply chain, marketing, finance, human resource. In an organisation it is important to make plans for running business smoothly and to accomplish targets managers should identify market situation (Qin and et.al., 2019). This helps in making better strategies than competitors and an organisation can build positive image in minds of customers. For smooth running of business it is essential to make plans so that work can be completed on time. 2
3. A review and critique of the implementation of operations management principles within the chosen organization There are some operation management principles which can be applied by an organisation to accomplish goals and objectives. Principles of operation management are:Rapid improvement First principle of operation management is rapid improvement means changes should be made in plans or strategies so that goals can be accomplished. This helps in making better plans or strategies and business can run smoothly. For satisfying needs of customers, managers should make changes in plans and try to implement best plan so that targets can be achieved. Managers should check continuously that whether changes are required or not and make improvements accordingly so that there is less chance of mistake (Rosli, Muhammad Tamyez and Zahari, 2020).Know the competition Another principle of operation management is to know about the competitors. It is the responsibility of managers to gather all the details about competitors, their strengths, weakness, opportunity and threats. This helps in making better plans or strategies for future growth and development of organisation. Managers should determine these points and solve issues to avoid confusion among employees and work can be completed on time.Organise resources Next principle of operation management is to organise resources so that production can be done properly and there will be less chances of mistake. For accomplishing targets, managers distribute work among employees and give instructions to perform task properly within given time period. So, this principle can be applied by an organisation to run business smoothly and to avoid misunderstanding among employees (Choudhry, 2018). 4. An analysis of the extent to which the operations management of the organisation in the case study meets the requirements of the organization Taylor theory of scientific management According to Taylor there are four principles which can be applied in Unilever company to motivate employees and to boost their confidence so that they can work efficiently and focus on accomplishing targets. Four principles given by Taylor are: Science, not rule of thumb –According to Taylor, this principle means managers should take decisions after analysing all the situation and they should gather all the information properly. It is important to make plans so that business can be run smoothly and to avoid 3
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confusion among members. It means rules should be applied in every company to maintain equality among employees and it also helps in building positive image in minds of customers. For satisfying needs of employees and to motivate them it is important to take correct decisions (Shulga and et.al., 2021).Harmony, not discord Another principle is harmony, not discord which means that in an organisation everyone should work as a team and solve all the issues. This helps in completing work on time and better decisions can be taken which is beneficial for growth and development of Unilever company. When employees are happy then it becomes easy to work and goals of organisation are achieved.Cooperation, not individualism Next principle is cooperation, not individualism, according to Taylor all employees should work as a team or in group. There must be no confusion or misunderstanding among employees related to work and all should focus on accomplishing targets. It is important to cooperate each other and focus on completing work on time. These principles are applied in Unilever organisation and managers divide work among employees so that there will be no confusion and it also help in reducing confusion or misunderstanding between workers. All employees have to work according to the instructions given to them and there must be no issue (Atkinson, Gesing, Montagnat and Taylor, 2017). The main objective of Unilever company is to satisfy needs of people and provide them good quality products. For fulfilling targets it is important to make plans or strategies so that employees can perform best and suggest new ideas which is beneficial in growth and development of company. For earning more revenue, managers should make products according to need of customers and quality should be good. Nowadays, people want good quality products at low prices and this helps in increasing productivity of firm. Motivating employees also helps in increasing overall productivity of organisation because when employees are working efficiently then goals are accomplished. 5. Discussion of continuous improvement as a philosophy and describe the Lean principles In every organisation it is essential to make changes or improvements so that work can be completed on time and there will be no confusion or misunderstanding. There are some method of continuous improvement which can be applied by managers of Unilever company to run business smoothly and to focus on accomplishing targets (Khan and et.al., 2019). Methods of lean production Six sigma Six sigma method refers to some stages which help in continuous improvement like, define, measure, analyse, improve and control. This is a method which can be applied by managers of Unilever company to improve performance and perform better than others. This has several stages 4
which helps in making changes and better plans can be implemented (Oliveira, Sá and Fernandes, 2017). Firstly, define plans, then measure performance of every employee to find mistakes, analyse problems so that improvements can be made. After that take actions to improve performance of employee and last step is to control all the activities. Kaizen (continuous improvement) Kaizen method helps in making changes or improvements in plans or strategies so that goals can be accomplished. For success of company it is important to apply some methods for continuous improvement and make changes accordingly. This method includes six stages i.e., standardize, measure, compare, innovative, again standardize and last is to repeat (Vinodh and et.al., 2020). This process helps in making improvements in plans and business can be run smoothly. There are five elements of Kaizen method such as, teamwork, personal discipline, improved morale, quality circles and last is to give suggestions for improvements. TQM Total quality management refers to reducing and detecting errors or mistakes while manufacturing products so that good quality products can be provided to customers. TQM helps in improving overall performance of organisation, customer experience, improve performance of employees. This method helps in making changes or improvements as per the requirement and analyse overall performance so that work can be completed on time. 6. A continuous improvement plan, including your justified recommendations for improvement, based on your review and critique of operations management principles within your organization Taylor management principle Taylor management principle helps in enhancing production and has the ability to control all things. It helps in boosting confidence of employees and increase their morale to work as a team so that work can be completed on time. this method decreases inaccuracy, autocracy and cost of production is also reduced. Some negative points are, it requires huge capital, management takes control, overly bureaucratic, demotivating approach and planning reduces approach (Carnerud, Jaca and Bäckström, 2018). Six sigma method Six sigma method is used by most of the companies because it increases efficiency of business and all employees are working efficiently. This method helps in satisfying needs of customers and make plans or improvements for customer satisfaction and improve overall performance of organisation (Yurkofsky and et.al., 2020). Some disadvantages of six sigma method are, it creates rigidity, requires huge investment and it is not useful in solving issues. It is a time- consuming process which is not good for success of company. Kaizen (continuous improvement) 5
Kaizen method helps in improving productivity of company, increases effectiveness, safety and waste reduction. This method is beneficial because in this there is less waste of material and good quality products can be made. Disadvantages of Kaizen method, it is difficult for managers to go back to previous system, employees are not able to adopt changes and they are not performing well. TQM Total quality management has some positive points like, it reduces cost and better management of cost, higher profitability, enhanced market image, higher productivity, eliminate waste or unwanted products. Negative points of TQM are, quality is expensive, discourages creativity, demands planning, time and resources. This method demands for change in culture which is difficult for managers. Effectiveness of continuous improvement It is important to apply some models and theories for continuous improvement so that goals and objectives can be accomplished. For achieving targets it is essential to make changes or continuous improvement so that work can be completed on time. there are some models like, six sigma, Kaizen and other models which can be applied by managers of Unilever company to improve overall performance of company and it also helps in increasing efficiency of employees. Continuous improvement method helps in making better plans or strategies which help in performing better than others and targets can be accomplished (Hirzel, Leyer and Moormann, 2017). For running business smoothly, it is essential to identify needs of customers and according to that products should be made. Continuous improvement is helpful in making new plans or small changes which help in success of business. It is important to focus on accomplishing targets and make changes by using models and analyse performance regularly. 7. Conclusion From the above discussion it can be concluded that, operation and project management plays a crucial role in business and helps in smooth running of business. Operation management is beneficial in managing day to day activities and work can be completed on time. Principles of operation management such as, rapid improvement, know the competitors, organise resources has been discussed. Taylor’s principle like, science, not rule of thumb, cooperation and harmony, not discord has been described. Further, method of continuous improvement such as, six sigma, Kaizen, total quality management has been discussed. 6
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References Zhang, W. J., Wang, J. W. and Lin, Y., 2019. Integrated design and operation management for enterprise systems. Murphy, P. E. and Murphy, C. E., 2018. Sustainable Living: Unilever. InProgressive Business Models(pp. 263-286). Palgrave Macmillan, Cham. Liu, X., and et.al., 2018. Distributed operation management of battery swapping-charging systems.IEEE Transactions on Smart Grid.10(5). pp.5320-5333. Qin, S and et.al., 2019. Applying big data analytics to monitor tourist flow for the scenic area operation management.Discrete Dynamics in Nature and Society,2019. Rosli, M. F., Muhammad Tamyez, P. F. and Zahari, A. R., 2020. The effects of suitability and acceptability of lean principles in the flow of waste management on construction project performance.International Journal of Construction Management, pp.1-27. Choudhry, M., 2018.An introduction to banking: principles, strategy and risk management. John Wiley & Sons. Shulga, M. A., and et.al., 2021. Modernising education: unlearned lessons from Frederick Taylor.Linguistics and Culture Review.5(S2). pp.80-95. Atkinson, M., Gesing, S., Montagnat, J. and Taylor, I., 2017. Scientific workflows: Past, present and future. Khan, S. A., and et.al., 2019. Application of continuous improvement techniques to improve organization performance: A case study.International Journal of Lean Six Sigma. Vinodh, S., and et.al., 2020. Integration of continuous improvement strategies with Industry 4.0: a systematic review and agenda for further research.The TQM Journal. Yurkofsky, M. M., and et.al., 2020. Research on continuous improvement: Exploring the complexitiesofmanagingeducationalchange.ReviewofResearchin Education.44(1). pp.403-433. Carnerud, D., Jaca, C. and Bäckström, I., 2018. Kaizen and continuous improvement–trends and patterns over 30 years.The TQM Journal. Hirzel, A. K., Leyer, M. and Moormann, J., 2017. The role of employee empowerment in the implementation of continuous improvement: Evidence from a case study of a financialservicesprovider.InternationalJournalofOperations&Production Management. Oliveira, J., Sá, J. C. and Fernandes, A., 2017. Continuous improvement through" Lean Tools": An application in a mechanical company.Procedia Manufacturing,13, pp.1082-1089. 7
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): Project initiationp Project planningp Project executionp Project 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 8
Project Title In-house catering An overview of the case study you have been given As there is an existence of issue related with onsite catering and as a result employees of the organization are moving out of the office premises during the lunch hours. This has resulted in a creation of congestion issue within the local area. This has also being affected over the lifestyle of employees. Being a member of project and programme office it is covered under the responsibility of department that a project plan regarding in-house catering or catering from some outside and good place will be carried over so that the health of the employees will not be affected. As this issue is related with the health of the employees so it is very important that an in-house catering will be introduced so that company's responsibilities towards CSR in terms of benefiting employees will be compiled along with reduction of employees absenteeism. 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 initiation This is the initial and important step with respect to project. Under this step a detailed base is being set so that the project will move in a desired direction (Jin and et.al., 2019). With regard to the project of In-house catering, following points are need to be considered: Title: In-house catering Description: As per this project in-house catering will be enabled in the organization. This will lead to have availability of fresh and hygienic food to the employees of the company. Under this project a facility of in-house catering will be enabled so that employees 9
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will not need to move outside the office premises and fresh food will be enabled to them on order. Background: As the rate of absenteeism is raising with the consumption of poor quality outside food so it is made mandatory that the project department of the company will make some plan in the context of problem. For that an opening of in-house catering is planned under which fresh food will be served to employees on order. This will improve employees lifestyle along with enabling the company to comply with CSR. Goals: The main goal behind the introduction of in-house catering is to raise the standard of health among employees with the enabling of good and hygienic food. Scope: Initially the scope of this project is limited up-to the health of employees of the organization but later it will be implemented in other branches of the company too. Impact on other business: Adoption of this project will have a direct impact over other business and industries pertainingtosamefield.Thiswillassisttheorganizationtogaincompetitive advantage along with reducing the rate of absenteeism so that it can further impact the other business with respect to generation of profit. Stakeholders: With respect to concerned project, the stakeholders includes employees, owners, shareholder,projectdepartment,chefs,employeesofin-house catering,finance department and various others. Roles and responsibilities: As per the project the concerned personnel including employees of in-house catering will plays the role of drivers which will drive the entire project. Likewise, they will be responsible for meeting the requirement in terms of enabling best quality food. Finance department also plays a major role in terms of enabling finance and funds for carrying out the project. In the same way it becomes responsibility of project department that they can execute the plan as projected. 10
Milestones: Time and cost will be counted as major milestones with regard to the concerned project. An adequate availability of funds and time would lead enable better and efficient performance. Budget: It refers to the amount of funds which will lead to have actual operation of business. With the proposed project the estimated budget would be 1400£. Constraints, assumption, dependencies and risk: With the proposed project of in-house catering the major constraint includes finance, human resource. However, it is being assumed that it will be soughed and dealt with effective project management and planning. The project is depended on approval of higher management because it involves a risk of finance. Success measurements: Reduced rate of employee's absenteeism and good lifestyle is the major success measurement with the project of in-house catering project. Project planning Under this step a draft plan is being prepared with the determination of certain steps so that the project will pursue in desired direction (Cha and Maytorena-Sanchez, 2019). All the documentation along with scheduling of time is performed here. With respect to project of in-house catering, project plan is as follows: Scope planning: With regard to the In-house catering the deliverable would include the introduction and setting up of catering facility within the office premises so that the employees will not need to move out of the premises. With respect to this project the cost would include 1400£. An alternative with respect to this project would include an arrangement of regular catering services from outside the business frontier. Work Breakdown Structure: 11
Project Schedule: 12
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Resource planning: With regard to this project the major resources include human resources, finance department, production and purchase department and various other. With regard to human resources the entire planned work will be executed in desired direction. For example waiter will take orders during the first break of breakfast regarding food. As per this kitchen staff will start preparation of food. Before the start of lunch hours food will be distributed among employees by the distributor team. Here finance department will plays its role in terms of enabling required funds with respect to production or purchase department so that on adequate time orders will be meet. Budget planning: 15
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The budgeted cost would be around 1400£. This will include the cost of purchase of equipment which will be used in cooking. Likewise, a kitchen set-up cost will also be included in this plan. Salaries to kitchen staff is also included in this. Procurement plan: Under this plan contract with suppliers and other outside agencies will be included (de Araújo, Alencar and de Miranda Mota, 2017). This will include contract with the suppliers of food and vegetables along with other personnel which are deal with kitchen essential. This will also include contract with employment agencies which will plays its role in terms of delivering adequate employees with regard to this project. Risk management: The risk with regard to this project involves low attraction of employees towards the daily and normal food. In order to meet this risk special menu is designed under which choice of healthy as well as fast food is given. Another risk involves shortage of funds. This will be mitigated with the adequate distribution of funds. For example enabling less variety ion initial phase and later allowing diverse rage. Quality planning: The quality criteria will mainly related with the quality of food in terms of its hygiene and healthiness. Likewise, fresh deliverable with the best quality ingredients will be used. Communication planning: Communication with the concerned stakeholder will take place through the use of online medium including e-mail and informal too. This cane be understood as communication between finance department, owners, suppliers will all be done on e- mail as written communication. While communication with employees as customer will take place through offline mode including taking of direct orders from waiters. Project execution As per this phase the entire project will be executed and put to work. Under this stage the planned strategies will be implemented (Meredith, Shafer and Mantel Jr, 2017). This will lead to have a production of results in terms of outcome. As deliverable of 16
this project include enabling best quality of food within the office premises so that the health of the employees will not be affected. This stage also include change request under which as per the performance of the deliverable and plan, an analysis is being performed under which any required changes will be outlined so that the plan and its deliverable will be more efficiently produce. This is usually occurred when the expectation of the client will be changed. This process can be described as under: Performance data: Under this the current performance of the project is being presented (Chawla and et.al.,2018).Asthecurrentperformanceofthein-housecateringshowsthat employees are well attracted towards the health and hygienic food. However, the are not satisfied with the present menu. As per the current performance it is also analysed that if there would be adequate distribution of time and cost then efficiency will more raise because it is often seen that employees need to wait for long hours. Issues: The issue is concerned with the stage-management and menu choice. Change management: As per the reviews and observation it is being analysed that menu need to be reviewed and efficient time and cost management practice will need to be implemented. This will include some choice of fast food and other stuff. Likewise, few more employees who can perform the work of taking order on time will need to be appointed. Thus, in this stage along with evaluation of existing performance, an up-gradation and change management is also involved. Project closure In this stage deliverables in terms of fresh and hygienic food will be made delivered to the employees with the completion of the project. 17
Likewise,variousdocumentsincluding,strategiesandplanalongwithbudget documents will be made availed to the concerned stakeholders so that it will be verified. Setting up of standard and maintaining the quality standard will also be a part of this stage. This will be used as a post-implementation stage. BUSINESS/PROJECT CASE Name: In-house Catering Objectives: To enable healthy and hygienic food within office premises. To raise the standard of health. To reduce the percentage of employee’s absenteeism. Mission: To become a successful catering provider along with ensuring good health among employees and team. Executive summary: As the employee's health in the organization is affecting with the exposure of outside food. Along with this rate of absenteeism is also raising with the use of outside food. Thus, on this analysis and situation a project of in-house catering is being designed so that the problem of the organization would be soughed out. New idea: the new idea behind this project is related with the enabling of best quality home made food within the office premises. Opportunity: It is an opportunity because it will lead to raise the standard of life of employees along with reduction of absenteeism. Improvement: It will lead to improve the existing situation because with the enabling of home made and best quality food, health of employees will be improved. Resources: 18
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Human resources, funds, time, kitchen equipment Project plan: The project plan is related with the enabling of in-house catering so that best quality food will be enabled in-house. Under this in-house catering will be availed so that employees will get good quality food. Risk and benefits: Non acceptance of employees, raised expenditure are major risk. While the benefits includes enabling good health and lifestyle, reduction of absenteeism, employees well-being. Work of cash flow: Cash flow will work in the form of movement of cash in the project in terms of enabling equipment and other requirements and as a result of that it will flow out in terms of enabling best output with regard to company and employee's health. Cost incurring and its benefit Major cost is being incurred at setting up of project and its benefits will emerge in the form of employees good health. Break-even: The project will reach at break even, when cost as well as its acceptance among employees will be equal. Change in project management In case of change management, there would be enough saving that it can meet those changes. Likewise, when employees along with change will be inculcated together then break-even will be achieved in terms of acceptance by employees and earning by company. Business strategy: Advantages: Reduce employees absenteeism Raise standard of health Enable good quality food Disadvantages: Raise expenses 19
Limited choice in menu Raise work division Solution Improve menu by inculcating more dishes Adequate resource management along with work division Analysis of the project methodologies and tools used Project plan is a document that describe how the project will be executed, monitored, controlled and closed. Pros: Goal setting High expertise Cons: High cost Raised complexity Cost benefit analysis: Here cost will be measured in comparison with benefit. Pros: Enabling rational decision Cost differentiation Cons: Non universal applicability Inflexibility Analysation of project methodologies Agile methodology: Under this methodology the entire project will be break into various phases. Here continuous collaboration with stakeholders are possible and continuous improvement is focussed (Ajam, 2018). 20
Pros: Better control Reduce risk Continuous improvement Cons: Poor planning of resources Fragmented results Complex measurement Project management tools: Work breakdown structure: Under this tool the entire work will be break among various phases (Burghate, 2018). Pros: Easy operation Clarity in roles and responsibilities Cons: Time consuming Poor decision-making Review and critically evaluate the effectiveness of the PLC in application to your project using the appropriate theories models and concepts PLC with regard to the current process plays an important role in terms of execution of project along with its performance measurement. Likewise, setting up of standard lead to raise the efficiency of the project. All the steps of the PLC contribute a major role in terms of enhancing the project outcome (Frefer and et.al., 2018). Monitoring will lead to have an important role in terms of performance measurement along with taking adequate action. However, on a critical note the entire process was time-consuming and involves high cost. It has also lead to delay in decision-making. 21
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References Ajam, M.A., 2018.Project management beyond waterfall and agile. Auerbach Publications. Burghate, M., 2018. Work breakdown structure: Simplifying project management.International Journal of Commerce and Management.3(2). pp.453- 461. Cha, J. and Maytorena-Sanchez, E., 2019. Prioritising project management competences across the software project life cycle.International Journal of Managing Projects in Business. Chawla, and et.al., 2018. The sustainable project management: A review and future possibilities.Journal of Project Management.3(3). pp.157-170. de Araújo, M.C.B., Alencar, L.H. and de Miranda Mota, C.M., 2017. Project procurement management: A structured literature review.International Journal of Project Management.35(3). pp.353-377. Frefer, and et.al., 2018. Overview success criteria and critical success factors in project management.Industrial engineering & management.7(1). pp.1-6. Jin, and et.al., 2019. Integrating BIM with building performance analysis in project life- cycle.Automation in Construction.106. p.102861. Meredith, J.R., Shafer, S.M. and Mantel Jr, S.J., 2017.Project management: a strategic managerial approach. John Wiley & Sons. 22