UNIT 16: OPERATIONS AND PROJECT MANAGEMENT - Assignment

UNIT 16: OPERATIONS
AND PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
LO 1.................................................................................................................................................1
P1. Review and Critiques of implementation of Operations Management Principles................1
LO 2.................................................................................................................................................4
P2. Continuous Improvement Plan based on Operation Management Principles......................4
LO 3.................................................................................................................................................6
P3. Application of each stage of Project Life Cycle (PLC) in project........................................6
LO 4.................................................................................................................................................8
P4. Review and Critique of effectiveness of PLC application in project....................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Operations management is considered as the function of business organisation that aims
at administering of the various business practices for creating the highest level of possible
efficiency and effectiveness. Project management refers to the practice of planning, initiating,
executing, controlling and also closing of the task or activity of team in relation to achieving
specific goals and objectives. Bosch company deals in fridge, freezers, gas and electric cookers,
electric friars and in washing machines. The company Bosch aims at entering into markets of
Television by developing and producing different screen size TVs. The present report reviews
and critique the effectiveness of principles of operations management and also applies the
concept of continuous improvement. The report also provides application of Project Life Cycle
(PLC) and further reviews and critiques the application of PLC.
MAIN BODY
LO 1
P1. Review and Critiques of implementation of Operations Management Principles
Operations management is important for manufacturing companies as it assist in different
processes, operations and procedures (Machadoand Martes, 2015). The today's competitive
business environment requires putting of different business strategies into operations
management in order to bring effective results and to drive better performance. Bosch company
aims at entering into new markets therefore, it requires aligning both operations and project
management so that it can achieve great results and outcomes. Bosch company makes use of
different approaches of Operations management in order to gain advantages by successfully
implementing the plans into business operations.
Theories and Concepts of Operations Management
Various theories, concepts, approaches and principles of Operations Management helps
organisation to effectively implement the strategic plans and make key adjustments for assisting
organisation for accomplishing the strategic objectives. Following is given explanation of
different theories and concepts that supports Bosch organisation for developing and entering into
Television markets successfully and effectively.
Lean principles: The lean management principle is an approach that aims at supporting the
concept for continuous improvement in an organisation. The lean management principle focuses
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on eliminating and removing the factors which waste time, money and efforts. But application of
lean operation management in business process makes employees and workers feel frustrated as
organisation put burden on them for cutting cost and removing errors (Klaus and Edvardsson,
2014).
Illustration 1: Lean Management Principle
Source:(Lean Management, 2019)
Bosch company implements the lean principle in its manufacturing and production
process so that it can remove unwanted and waste procedure and steps. This will help
organisation to bring and introduce a product in the market that is cost effective from start to end
and also provides value to end customers. The lean management may not lead to provide
expected results because there is always a little margin for errors in Bosch organisation. The five
principle of lean management are explained as follows:
Identifying value: Bosch organisation needs to first identify the value from customer point of
view. For example, What are the timeline regarding delivery and manufacturing? What is the
price of the product? What are the expectations that needs to be met? All these information helps
in defining the value. This step of lean management may also increase the time taken for
production of products and here the solution itself turn into problem.
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Value stream: After defining the value, the next step is to value stream that refers to
identification of actions that involves in process. The processes can be in production, design, HR,
administration, procurement, customer service, or delivery and it needs to be evaluated in order
to identify that which action does not creates value.
Flow: After successfully removing the waste from value stream, next step is to ensure that
remaining steps do not have any interruptions and they flow in smooth way.
Pull: The improved flow the time to market or deliver process can also be improved. The
customers can pull products and services in weeks instead of months. This leads to provide
benefits to manufacturers and customers (Angolia and Reed, 2016).
Perfection: This is considered as the most important step as it makes the improvement process
the part of corporate culture. Every employee of Bosch company is encouraged to implement
lean principle because lean requires continuous efforts and vigilance to perfection.
Six Sigma Methodology: This is the approach used by organisation to bring improvements in
the business process and activities. This is known as the customer-driven approach which aims at
eliminating waste and also streamlining the business processes. Bosch company aims at
implementing this principle so that it can effectively introduce its new product line in the target
markets. The five phases of Six Sigma approach are explained in detail as follows:
Define: This step involves defining of the problem or issue and also defining of customer and
project requirement. Bosch company aims at defining ultimate goals and also the customer's
expectations.
Measure: At this step performance of current process is done by establishing a proper data
collection plan in order to determine errors, defects.
Analyse: This step of six sigma aims at establishing the root cause of defects and variations for
identifying problems with the current business strategy which stands in the way of
accomplishment of goals.
Improve: The innovation and creative solutions are implemented at this stage in order to
eliminate the root cause of the defects (Ahimbisibwe, Tusiime and Tumuhairwe, 2015).
Control: At this stage, organisation aims at ensuring that it stays on correct track and does not
fall into old errors and defects in process.
Proper implementation of Six sigma approach can bring many benefits and advantages
for Bosch organisation in relation to quality control. But its implementation in planning and
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production process may lead to create bureaucracy and rigidity which may further create delays
and also stifle creativity. Six sigma focuses on addressing entire production and planning process
rather than just final results or outcomes. But it lead to providing adverse effect on productivity
and profitability.
LO 2
P2. Continuous Improvement Plan based on Operation Management Principles
The improvement plan ensures that operations are considered as the cross- organisational
activity instead of an independent function. The Bosch company needs to implement various cost
reduction and quality improvement strategies and align them with the new product development
plan in order to bring effective results and outcomes (Alketbi and Gardiner, 2014). These
strategies will help organisation to increase and improve the operational efficiency and also in
reducing cost of operations. The strategies ensures strategic reallocation of different resources
benefiting organisation to achieve better results and increasing the production and profits of
company. Business process improvement, quality improvement, safety programme, supply chain
management and corrective and prevention action management are some of the strategies that
can be used by Bosch company to improve the operational efficiency and bring better outcomes.
Continuous Improvement Plan is an ongoing and continuous process that helps in
improving products, services, processes and procedures. The approaches of operation
management and Continuous improvement plan aims at removing errors and defects from the
process of production regarding products and services. Bosch Company aims at aligning the
principles or operation management and continuous improvement plan so that it can bring better
results and outcomes.
Kaizen method helps in identifying various opportunities regarding reducing the errors and
waste and also to streamline the work processes (Angolia and Reed, 2016). This method focus on
making small changes in large amounts rather than making fewer changes. This is developed to
bring benefits by reducing defects, boost productivity, eliminating waste, encourage purpose of
employees and workers and promoting innovation. The Bosch organisation adopts this strategy
in order to brings effective results as it is based on the five elements such as, quality circles, team
work, improved morale, personal discipline and suggestions regarding improvements. Lean
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management identifies major approaches in order to achieve continuous improvement, which are
explained as follows:
Plan-Do_Check-Act: This method is also known as Deming cycle. The first step includes
identification of an opportunity or a plan for bringing change. Do step of this model aims at
implementing the changes on a small scale. Then next step is to analyse the data or results and to
check whether the changes has brought any different or not. If the adopted changes brings
positive results, the company aims at implementing the changes on larger scale and also to
continuously assessing the results (Barjaktarović, Milojević and Trajković, 2014).
Root Cause Analysis: This is another technique and tool for adopting continuous improvement
and it can be practised in lean management. This technique helps in identifying the root cause of
the problem or issues happening in the operational processes. This practice drills down in the
problem by effectively analysing what factors cause problem. In order to bring effective results
and bringing continuous improvement, organisation needs to perform thorough analysis of issues
and problems happening in the operational processes. The root cause analysis brings benefits of
identifying the root cause of the problems and eliminating it so that it can lead to bring smooth
flow of business process and increases the productivity.
Kanban: This method aims at having a clear visualization for bringing improvements in the
operational functions and processes (dos Santos Teixeira, Maccari and Simonsen, 2016). The
kanban method is a lean management approach that helps in improving the efficiency of
workflow in the production process. Bosch organisation adopts to this method or theory so that it
can bring continuous improvements and removing the waste. Kanban method relies on following
six core principles in order to reduce waste and improve the effectiveness and efficiency:
 Manage the flow
 Visualization of workflow
 Interruptions are eliminated
 Make policies of process explicit
 Creates feedback loops
 Improves collaboratives
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LO 3
P3. Application of each stage of Project Life Cycle (PLC) in project
The Bosch company currently deals in gas and electric cookers, fridge and freezers,
washing machine and electric friars. Bosch company now focuses on launching a stadium screen
television and 58 inch screen television, therefore, it aims at developing a continuous
improvement plan which is based on various operation management principles. Project Life
Cycle is a four step process including initiation, planning, execution and closure. This life cycle
helps business organisation to make up the path for projects from start to end (Doumbouya, Gao
and Guan, 2016). Bosch can make use of this method for implementing its new product line
projects effectively and brings best outcomes and results. Bosch company applies Project Life
Cycle for producing and developing the new products, and it is explained in brief as follows:
Initiation: This is the first step of any project which is also referred as conceptualization phase.
In order to initiating the project or idea, top management needs to identify and recognize the
strategic need for it. Bosch company aims at manufacturing new products and adding products in
its product line by introducing television of different sizes. The initiation step of Project Life
Cycle involves:
 Presentation of the business case.
 Creation of statement of work.
 Creation of business contract.
Bosch company needs to focus on finding answers for the following question during the
initiation or conceptualization stage:
 What are the certain or specific objectives of project?
 What is the issue or problem?
 Do company have enough funds and resources for creating and supporting the project
effectively?
 Will project development will help in solving the problem?
Planning: The second step of Project Life Cycle helps in developing the project plan after the
approval and launch of business case of project. it includes formal set for plans, initial goals are
outlines and are then established (Klaus and Edvardsson, 2014). The planning stages generally
involves:
 creation of project budget
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 determination of resources availability
 allocation of task and activities to specific resources
Bosch needs to focus on following given question in order to effectively bring the results of
PLC:
 What are vision, mission and purpose of project?
 Success criteria or measurable objectives are there or not?
 Do company have high level description regarding project requirements and risks?
 Company can adequately program and budget for high level of targets and milestones or
not?
Execution: This stage comes when the project is implemented or performed. The Bosch
company aims at effectively executing the project so that it can lead to bring effective results and
outcomes. Required tools, materials and resources are transformed or allocated in order to
accomplish the goals and objectives of project. this stage continuously monitors and measures
process in order to ensure that project brings successful results. This stage of PLC involves the
following:
 strategic plan are made (Machadoand Martes, 2015).
 strategic plans are implementation
Bosch company needs to answer the following questions during the execution phase:
 All the resources are being tracked or not?
 Project is executed according to the budget and time or not?
 Resource planning can be optimized?
 Are there any roadblocks which requires change management?
Closure: This is also known as the termination phase and it begins when the project ends. Bosch
company can effectively implement the product development idea using the project life cycle
phases and achieve better results and outcomes. The termination or closure stage involves:
 disbandment of project team.
 Tools and personnels are assigned with new roles and duties.
 Different resources are then released back with the parent organisation.
 Project is transferred to intended users (Müller, Pemsel and Shao, 2014).
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Bosch company has successfully implemented the idea of developing and manufacturing new
products and it is time for disclosing or terminating the project. at this stage, company focus on
finding the answer for following questions:
 The project closure or completion criteria are met or not?
 Is there any project closure report is in progress?
 All projects artefacts have been collected and archived or not?
 Has work breakdown structure been planned?
Through using Project Life Cycle, organisation can effectively implement the development
ideas and bring effective outcomes and results (Sibila Lebe and Vrecko, 2014). Project
management methodologies are set of guiding process and principles for effectively managing
the project. the project methodology are structured approach that delivers the project effectively
and it also consist different set of processes. Each process have clearly defined activities and
resources within Project Life Cycle (PLC). There are different types of project methodologies
such as Agile, Scrum, Kanban, Lean management, Waterfall, Six Sigma, PMI/ PMBOK, etc.
Bosch organisation can make use of any project methodologies according to its suitability with
the nature and type of project. it aims at selecting lean management and Six sigma
methodologies for effectively implementing the PLC of developing and manufacturing new
products.
LO 4
P4. Review and Critique of effectiveness of PLC application in project
Bosch organisation focuses on developing and manufacturing television of 58 inch and
stadium screens which can be used in parks and stadiums. The company makes use of different
approaches, theories and Project Life Cycle in order to effectively implement the development
idea. The PLC can lead to bring effective benefits and advantages to the organisation while
implementation of any project but it may also bring negative impacts as well. Various theories,
model and concepts are used in the application of different stages of Product Life Cycle
(Stretton, 2016). Project Life Cycle aims at assisting the production and manufacturing process
from start to end. The Bosch organisation aims at evaluating and reviewing the effectiveness of
Project Life Cycle which is applied in the application of project. Project Life Cycle also makes
use of different theories, concepts and models in order to get the best outcomes and results. It is
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essential to ensure the PLC used on the project introduced by Bosch is appropriate to the work
being carried out and split into distinct and manageable phases. Once the customers has accepted
the deliverables and a phase review has been carried out to determine whether the project
objective have been achieved. Project can be monitor with proper management and there are
some tools available that also can be used by the company. The benefit of PLC for Bosch as it
allow them to enhance efficiency in delivering services, enhanced consumer satisfaction, greater
standing and competitive edge and give them opportunity to expand their services. The project
life cycle should be valid and reliable. The stages are also faced some complexities and
difficulties. For example; it is difficult for project managers to identify the resources needed and
associate budgets and clear timelines for completion. The major risk that impacted the project
life cycle included the budget risk. Improper budgeting leads to improper ordering of materials
and the whole process of the cycle.
The large projects is different from small scale projects in many ways, including number
of stakeholders, duration of project, size of budget, level of complexity, level of details for
defining the task of projects (Turkulainen and et.al., 2015). The different can be also in form of
associated risk, potential revenue or political visibility in the organisation. The small-scale
projects can lead to bring moderate benefits and advantages to the organisation which may be
scoped within the department or facility boundaries. The risk factors, complexities, duration of
the project and stakeholder roster are also small and modest in the small scale projects. The
management and maintenance is also one of the difference factor of large scale and small scale
project.
CONCLUSION
Operations management is concerned with designing, controlling, production and
redesigning as well of the different business operations of an organisation regarding the
manufacturing of products and services. The continuous improvement plan also focus on
bringing improvements and increasing the effectiveness and efficiency of business operations
and activities. The project life cycle for a business is the complete process a project goes through
from its initiation stage of just being an idea until it deliver to consumer's hand. It has been
evaluated that no matter what project the organisation is doing it need to be maintained with
consistency.
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REFERENCES
Books And Journal
Ahimbisibwe, A., Tusiime, W. and Tumuhairwe, R., 2015. The Moderating Influence of Inherent
Project Risk on the Relationship between Project Planning and Perceived Project
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Alketbi, S. and Gardiner, P., 2014. Top Down Management Aapproach In Project Portfolio
management. Procedia-Social and Behavioral Sciences. 119. pp.611-614.
Angolia, M. and Reed, A.H., 2016. Preparing Undergraduates for Project Management on the
Manufacturing Shop Floor. Journal of Technology, Management & Applied
Engineering. 32(2).
Barjaktarović, L., Milojević, M. and Trajković, B., 2014. Key aspects of cash managment in the
company’s business. Belgrade, Singidunum University, pp.105-108.
dos Santos Teixeira, G.C., Maccari, E.A. and Simonsen, D., 2016. The Influence of Competency
Level and Maturity in Project Management in the Corporate Income of an Company of
the Transformation Sector. Future Studies Research Journal: Trends and Strategies. 8(1).
pp.3-30.
Doumbouya, L., Gao, G. and Guan, C., 2016. Adoption of the Building Information Modeling
(BIM) for construction project effectiveness: The review of BIM benefits. American
Journal of Civil Engineering and Architecture. 4(3). pp.74-79.
Klaus, P. and Edvardsson, B., 2014. The road back to relevance: How to put marketing (and
marketing scholars) back on the Top Managements’ agendas. Journal of Service
Management. 25(2). pp.166-170.
Machado, F. and Martes, C.D., 2015. Project management success: a bibliometric analisys.
Müller, R., Pemsel, S. and Shao, J., 2014. Organizational enablers for governance and
governmentality of projects: A literature review. International Journal of Project
Management. 32(8). pp.1309-1320.
Sibila Lebe, S. and Vrecko, I., 2014. Systemic integration of holistic project-and hospitality
management. Kybernetes. 43(3/4). pp.363-376.
Stretton, A., 2016. Project interfaces and their management. PM World Journal, 5.
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Turkulainen, V. and et.al., 2015. Managing project-to-project and project-to-organization
interfaces in programs: Organizational integration in a global operations expansion
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Online
Lean Management. 2019. [Online]. Available through: <https://businessjargons.com/lean-
management.html>
Using Continuous Improvement (CI) to Benefit Your Business. 2019. [Online]. Available
through: <https://www.vmec.org/continuous-improvement-benefit-business/>
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