Review and Critique of Operational Management Principles in an Organisation

This report reviews and critiques the implementation of operational management principles in an organisation. It discusses the company overview, principles of operations management, and different approaches to operations management. It also provides recommendations for improvement.

Operations and
Project
Management

ssTable of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Review and critique of the implementation of operational management principles in an
organisation.................................................................................................................................1
TASK 2............................................................................................................................................4
P2 Continuous improvement plan and principles of operation management.............................4
TASK 3............................................................................................................................................7
P3 Application of each stage of PLC to the project and production of necessary information
with supporting documents such as business case, project plan and WBS.................................7
TASK 4..........................................................................................................................................11
P4 Review and critique of the effectiveness of PLC applications............................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Operations management is one of the administration practices which helps in performing
various activities of business in order to ensure highest efficiency of business operations.
Operations management helps in concerting raw material in to finished products in one of the
most productive manner in order to enhance business efficiency. All the process helps in
generating high amount of profits for business organisations. Project management is used to
conduct a project with well defined plan and activities like controlling, measuring and guiding
takes place to achieve the project in best suitable manner (Al-Nady, Al-Hawary and Alolayyan,
2016). To understand the concept of operations and project management Associated British
Foods organisation is considered. It is founded in the year 1935 and deals in retailing industry.
Headquarter of the organisation is situated in London, United Kingdom where operations are
managed through Micheal McLintock and George G. Weston.
This project report involves implementation of operations management principles,
continuous improvement plan. Concept of project life cycle is discussed with review and its
effectiveness in the application of a particular project.
TASK 1
P1 Review and critique of the implementation of operational management principles in an
organisation
Company Overview
Associated British Foods is a multi-national company which has its operations all around
the world. It basically has a work of food-processing and produces emulsifiers, enzymes and
lactose. The organisation aims to provide healthy and nutritious food items to its customers
which are also affordable for them (Arriagada, and et.al., 2016).
Operations and Operations Management
Operations in simple terms defined as an activity through which different types of raw
material are converted into finished goods so that level of earning can be improved (What is
Operations Management?. 2019). On the other hand, operations management ensures that all the
available resources are utilised in such manner that level of productivity can be improved.

Operations management leads to managing outcome, production and resources so that results can
be generated as planned.
Principles of Operations Management
As a retailing organisation Associated British Foods in order to manage various
operations appoints operations manager. Different principles of operations management is
applied by these managers so that activities can be managed effectively.
Variance- This principle means differences created between various processes of an
organisation. It can be good for a company because proper management of variances leads to
increased creativity (Artto, Ahola and Vartiainen, 2016). Associated British Foods implements
this principle in its processing to get ahead of its competitors in the market.
Organisation- According to it, processes are interconnected in a firm and thus their
elements must have predictability and consistency to achieve the desired level of profits. In
context of Associated British Foods they can implement this principle by maintaining an inter-
connectivity between different steps of manufacturing which will help them in increasing
efficiency, effectiveness and productivity.
Change- This principle is essential as change is quite necessary in an organisation
because if it has to stay in market it has to be dynamic in nature to constantly adapt to them. For
Associated British Foods this is important as it has to constantly alter its operation methods
because of the ever-changing needs,demands and tastes of consumers.
Accountability- This means that managers have to set goals, targets and objectives
whether short-term or long-term in front of their subordinates so that they can strive to achieve
them (Fleming and Koppelman, 2016). It is essential for success of a company that its workers
are working properly to achieve the desired outcomes. Associated British Foods can implement.
Analysis of principles in order to meet organisational requirements
Operations Management is essential for any company to properly manage its operations
and processes. This is required for smooth functioning of the organisation so that it functions like
a well-oiled machine. Application of these principles is required for a concern to function
effectively and efficiently. Associated British Foods has to analyse these principles and see the
departments where it can apply them so that it can achieve maximum productivity in its business
model.

The analysis of principles is given as follows-
 This is the first requirement for Associated British Foods as the differences created
between various processes can help it to become dynamic and creative which will thereby
help in producing innovative goods which are desired by consumers in market. Thus, a
variety of products must be included by company in its product line and also it must
reduce its operational cost which will enhance its overall earnings.
 Another requirement is that the company must maintain a uniformity and consistency in
its processes as it will help it in getting to the desired level of profit (Lee, 2018). For
proper implementation of this principle it is essential that it focuses on increasing overall
efficiency, effectiveness and productivity of operations so that goals and targets can be
achieved easily
 Third requirement is that firm must become dynamic and flexible in an ever-changing
market where consumers constantly demand creative and innovative goods and services.
Thus, it is required that focus should be enhanced on R&D department so that ideas
related to new products are generated.
 In addition to this, accountability is something which is required in every company.
When authority is delegated from senior to subordinate it comes with a responsibility for
subordinate but accountability still stays with the senior only (Martens and Carvalho,
2017). Thus, it can be concluded that accountability must be made for different tasks in
an organisation to facilitate achievement of goals.
Different approaches to operations management-
Taylor's Scientific Management Theory- It is a scientific theory which describes how
efficiency, effectiveness and productivity of different tasks in an organisation can be achieved.
The major principles of this theory are as follows-
Science, not the rule of thumb- It states that scientific methods must be used for decision-
making in a firm instead on unscientific methods or rule of thumb approach.
Harmony, not discord- It says that there must be unity among workers so that conflicts
can be avoided and fast decisions can be taken.
Co-operation, not individualism- It represents cooperativeness among workers which
they can achieve by working in coordination to achieve tasks and goals.

Maximum production, in place of restricted production- According to it, maximum
production must be done by enhancing productivity of workers and there must be no deliberate
restriction of production.
Flexible specialisation- A company has different workers with different skills and multi-
use machines which it can use to enhance productivity (Maylor and Turner, 2017). It can be used
by Associated British Foods to become more dynamic and innovative so as to sustain itself for a
long time in the market. this principle by setting high-performance standards for its employees,
providing them proper training to achieve them and ensuring that they meet them.
TASK 2
P2 Continuous improvement plan and principles of operation management
Continuous improvement is termed as an ongoing process through which all the required
efforts are made in order to ensure that required improvement can be made in products served
and services offered. Using a well defined continuous improvement plan Associated British
Foods organisation has planned to improve quality of products. Utilising all the resources in best
manner will improve level of production for business organisations. A effective continuous
improvement plan will help Associated British Foods organisation to gain competitive advantage
over other businesses.
Lean Principles
Lean is considered as a philosophy of continuous improvement. Organisations which are
lean focuses on increasing customer value, eliminating wastage and optimizing operations. The
concept of lean is focused on continuous improvement, collaboration and consumer focus
(Ochieng and et.al., 2018). Main aim of this principal is to ensure that business organisation is
producing more by employing minimum resources. Different principles for Associated British
Foods organisation which helps in improving operations are as follows-
Value: At the first stage value that consumers have for the product and services offered
to them is determined. This will help to analyse value which consumers will be agree to pay and
also pricing for products of Associated British Foods organisation can be managed. Market
analysis to find consumers requirements is made.

Value Stream: In order to achieve goal of lean value stream needs to be achieve as it
involves entire life-cycle of the product form raw material to finished goods and disposal. Value
stream mapping is used to analyse different types of waste so that actions to minimise wastage is
taken and higher productivity can be achieved (Otsuki, Akiyoshi and Samejima, 2017).
Flow: The lean manufacturing principal of flow focuses on creating a value chain in
which no interruption in the process of production is involved. For example- Associated British
Foods organisation has planned its lunch and rest hours so that all the activities form sale to
delivery can be performed effectively.
Pull: As per this principle of lean it is ensured that no activity can be performed before
time. For example- delivery of goods can not be take place without converting raw material into
finished goods. Flexibility is required so that efficient communication can take place at each step
of value chain.
Perfection: Eliminating wastage and using all the resources in best productive manner
helps in achieving perfection. Through this principal Associated British Foods organisation
march towards perfection and this process takes place step by step. Problems related to quality is
minimised and wastage is maintained in perfect manner.
Continuous improvement plan for Associated British Foods organisation
Basis Existing Methodology Proposed Methodology
Environment In the present time huge
amount of environmental
compliances are faced by
Associated British Foods
organisation. In order to deal
with these compliances change
management with environment
is used in the business. Factors
such as air, water and energy
are managed in such manner
that environmental conditions
can be maintained at safe and
In future Associated British
Foods organisation needs to
focus on using techniques
which minimises usage of
resources and maximises
products. Factors that affects
environment in negative
manner will be controlled and
utilisation is made without any
form of waste.

secure level.
People At the present time this
organisation is one of best
opportunity for large number
of candidates. As equal
amount of opportunities are
provided in order to achieve
progress. Proper training is
provided so that efficient can
be improved.
In future for achieving and
generating a effective
workforce advanced training
programme needs to be
introduced by Associated
British Foods organisation.
Following all the legal
legislations will help in
managing people in more
better manner.
Social In the present time Associated
British Foods organisation is
involved with different NGO's
so that social contribution can
be maintained. This will help
to fulfil all the requirements
that businesses needs to follow
as per their social
requirements.
In future business needs to
involve with some specific
NGO's or social service
organisations which helps to
cure some danger issues which
needs to be provided primary
concern.
Recommendations
• Safety of employees is one of the primary concern of employees and Associated British
Foods organisation needs to make all the efforts to ensure that good physical and mental
health can be maintained.
• Cost of serving society and maintaining environmental factors enhances cost for the
business. Using lean principles will help in eliminating wastage and minimising cost of
wastage.

TASK 3
P3 Application of each stage of PLC to the project and production of necessary information with
supporting documents such as business case, project plan and WBS
Overview of project: Camden Council is planning to work on a HS2 project which is
related to building high speed rail. It is mainly related to reduction in the overcrowding because
the company has planned to free up the space on existing lines and place a high speed train there.
It adds around 13000 peak hour seats on the West Coast Main line route by constructing a new
railway.
Project life cycle: In order to complete the project properly it is very important for all the
organisation to follow each and every step of project life cycle. While working on HS2 project it
will be essential for the manage to follow all the steps of it which are described below:
• Project initiation: It is the first stage where essential elements for a project are analysed
and arranged (Padalkar and Gopinath, 2016). While working on HS2 project manager of
Camden Council will be required to analyse market situations and then take appropriate
actions to carry out the whole project. Here, autocratic leadership style will be used by
the management as they have to take quick decisions for betterment of organisation.
• Project planning: It is the second stage project management in which managers try to
formulate effective plans so that the goals which were formulated by them previously
could be attained. In order to successfully complete the HS2 project it will be vital for
managers of Camden Council to form highly effective plans so that objective couls be
achieved. Here, various types of tools are used by the which includes Gantt chart, WBS
etc.
• Project execution: When different plans for project are formed then strategies for
executing them are formulated. Here, managers of Camden Council will be required to
make sure that all the predetermined plans are executed properly so that success could be
attained. While carrying out different activities at this stage various methodologies such
as hybrid, Agile could be used by them to assure the successful completion of all the
tasks (Padalkar and Gopinath, 2016).

• Project closure: It is the last stage of project life cycle in which all the tasks which are
performed by staff are analyse and evaluated by the manager. While working on the
project of HS2 the management of Camden Council will be responsible to make sure that
all the activities are performed by them properly so that goals could be accomplished
successfully.
• Business case: While working on a project it is very important for the managers to make
sure that they generate a new business case so that solution for the problems which may
take place in future could be resolved successfully. The case for HS2 project of Camden
Council is as follows:
Company Overview
Camden Council is a local authority of London. Its chief executive is
Jenny Rowlands. Now the organisation is planning to work on high
speed rail 2 so that overcrowding could be reduced.
Mission and vision
Its mission is to make every one to have access to Camden's culture
and heritage asset.
Vision of the organisation is to build a borough where communities
can live together and share value along with that they also enjoy
diversity.
Objectives Objective of the entity is to reduce the overcrowding at train stations
of London by introducing HS2.
Strategy
The strategy which will be used by the management of the
organisation to carry out the project is allocating responsibilities to
all the staff members properly it will help to accomplish the
predetermined goals and objectives.
Financial Budget Particulars Amount
Material 2000000
Research and development 56000
Staff salaries 460000
Promotions 65000
Total 2525000
Total budget which will be required by Camden Council to execute

the project is 2525000. it is vital for the management to arrange
funds for the project.
Follow Up
It is considered as the last stage of the business case where the
project manager of Camden Council will analyse that the planed
activities are performed properly or not.
Project plan: Detail project plan for Camden Council for the project of HS2 is as
follows:
Cost The cost which is determined by the manage net for Camden Council
for HS2 project is 2525000.
Communication
In order to communicate the details of project with the employees
formal meetings will be conducted. It will help to aware all the staff
m,embers bout their roles and responsibilities.
Quality
It is very important for the project manager of Camden Council to make
sure that quality of the project should be maintained. For this purpose
all the material will be bought from trusted suppliers. Apart from this,
staff members will also be motivated to perform all their jobs properly
so that desired level of qualitative services to the traveller could be
provided (Silvius, 2017).
Scope
In order to accomplish all the desired goals of the project of HS2 it is
very important for the project manager of Camden Council to make
sure that skilled staff members are hired by the management. In order to
enhance their productivity different training sessions could be
conducted for them.
Work breakdown structure:

TASK 4
P4 Review and critique of the effectiveness of PLC applications
Effectiveness of the PLC applications for Associated British Foods organisation is
reviewed on the basis of Waterfall model. Analysis and discussion of this model is as follows-

Source: Waterfall Model, 2020
Requirement: At this stage all the requirements in order to accomplish the project such
as human resource, finances and material is analysed. Using six sigma to minimise wastage of
resources is made (Sunder, 2016). Lean principal will help Camden Council organization to meet
all the requirements.
System design: After studying first phase of requirements of the project a system is
designed which meets all the requirements of the business.
Implementation: After designing of the project task are divided into small units so that
they can be performed in effective manner. Implementation is made after tasting each unit of
task.
Illustration 1: Waterfall Model, 2020

Testing: All the unites generated at the previous stage are tested so that any form of loop
holes are identified. Actions to minimise variations are taken after testing (Waterfall Model,
2020).
Deployment of system: After making tests goods and services are released in the market
to serve them with consumers.
Maintenance: Issues involved while dealing with consumer group to fix the differences
are performed on regular basis. Maintenance is made so that changes can be made in the
environment.
Methodology Small-scale Projects Large-scale Projects
Total Quality Management It is a method of reducing
defects and errors in
manufacturing to reduce
wastage. In Small-scale
projects it is necessary to avoid
unnecessary wastage of limited
resources available.
Large-scale projects operate on
principle of economies of
scale. It is essential to maintain
efficiency and effectiveness of
supply chain and the
employees working in
production department.
Six Sigma It is necessary for them so that
they can use different type of
techniques so as to improve
quality of business processes
in order to attain maximum
productivity and output.
They can use this approach in
controlling manpower and
overall production level so that
effectiveness is maintained.
Lean Principles They are important because
they help in reassessment of
desired objectives and provide
guidelines to create an
efficient and effective
organisation which can
achieve its goals and
This methodology can be used
to reduce inefficiencies of the
organisation which will ensure
that the processes are working
fine in organisation. Also,
costs can be reduced and
profits can be increased if this

objectives. approach is applied
successfully.
CONCLUSION
From the above project report it has been concluded that operation and project
management is the process of analysing all the activities which are performed by an organisation
to reach the predetermined objectives of a project. While working on a project there are various
types of principles which are used by the management to manage the operations properly. While
planning to execute all the operational activities properly it is very important for managers to
formulate a continuous improvement plan to bring effectiveness in business. There are four
different stages which are required to be followed to carry out a project. These are initiation,
planning, execution and closure. There are several essential documents which are used in PLC by
the companies to ignore possibility of failure. These are business case, project plan, work break
down structure, Gantt chart etc.

REFERENCES
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Online
What is Operations Management?. 2019. [Online] Available through
<https://www.topmba.com/mba-programs/what-operations-management>
Waterfall Model. 2020. [Online]. Available through:
<https://www.tutorialspoint.com/sdlc/sdlc_waterfall_model.htm>