Operations and Project Management Report: AEG Company and M&S Analysis

This report delves into the realm of operations and project management, using AEG and Mark and Spencer as case studies. It begins with an introduction to operations and project management, highlighting their significance in business. Task 1 critically reviews AEG's implementation of operations management principles, examining the principles of reality, organization, fundamentals, and accountability. Task 2 focuses on developing a continuous improvement plan for AEG, incorporating lean principles and the PDCA cycle to enhance performance. Part B then shifts to project management, with Task 3 applying the project life cycle (PLC) stages and producing supporting documentation. Finally, Task 4 critically evaluates the effectiveness of the PLC, using relevant theories and concepts to provide a comprehensive analysis of operational and project management strategies.

Operations and
Project Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Review and critique of the execution of operations management principles in organisation.
.....................................................................................................................................................1
TASK 2 ...........................................................................................................................................4
P2 Prepare continuous improvement plan based on the review and critique of principles.........4
PART B............................................................................................................................................6
TASK3.............................................................................................................................................6
P3 Apply each stage of PLC to given project producing necessary supporting documentation.6
TASK 4 ...........................................................................................................................................9
P4 Review and Critique the effectiveness of PLC with the help of appropriate theories and
concepts. .....................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Operation management is the world wide used phenomenon. The process of operation
management is used by organisations in order to plan, supervise and to control the activities of
production and manufacturing. It is the process which helps in rising the overall productivity of
the business. Whereas Project management is concerned with managing all the action or
operations which are related to the projects. It helps the organisation in determining how the
goals and objectives of the firm can be achieved. In this report the chosen association is AEG
company and Mark and Spenser. Both the companies operate their business by manufacturing
different different product. AEG deals in manufacturing of electronic appliances and Mark and
Spenser deals in manufacturing apparels.. In this respective study the focus is on the review and
critics of the implementation of operation management principles and continuous plan for the
improvement will be considered. Along with this, the different stages of project life cycle,
various theories and some concept for the effectiveness of PLC will also be focused.
TASK 1
P1. Review and critique of the execution of operations management principles in organisation.
Introduction of the organisation:
AEG manufacturing is the leading in the electronic sector in the UK economy. The
business of AEG manufacturing deals in providing home appliances to the houses which are of
supreme quality. The company was founded in the year of 1883. At the very initial level the
company was dealing in the production of only iron but later on the company have decided to
manufacture the product such as washing machines, cookers, cookers hoods etc. For the
manufacturing of these product the company first scan the environment and determines the needs
of their customers and than manufacture it accordingly (Gunasekaran and Ngai, 2012). In order
to manage its operation the company must focus on implementing certain principle which are
mentioned beneath :
Operations versus Operation management
Operations : The process of converting of raw material into the finished goods in order
to provide it to the end user . This also help the management in developing efficient strategies,
plans and policies so that the business can accomplish their goals in the best effective manner.

Operation management : It is the process of Planning, supervising and controlling the
activities of production and manufacturing(Subramanian and Ramanathan, 2012). It is the
primary function which is used by the organisation to improve their overall level of productivity.
Basis Operation Operational management
Nature Operations refers to the
accumulation and aggregation
of different activities.
Operational management
deals with the activity of
managing various operational
activities.
Importance To carry out the activities in
the most significant manner
operations are needed.
It helps in dealing with the
production and services
process to increase the quality.
A review and critique of the implementation of operations management principles :
Case study : The company like AEG is now giving more emphasis on the manufacturing of
new products which is washing machine in regard to the current demand of their potential
customers. For the launch of this product the organisation is required to focus on the certain
principles of operational management such as :
Principle of reality This principle of operational management allows companies to
focus on the matter of managing various techniques in comparison
to dissolving of certain issues. This will support the company in
managing their products and services. The company is going to
offer a new product washing machines which is not made with new
tools and techniques.
Principles of organisation This principle allow the organisation to formulate their plans and
strategies in such a way so that the organisational goals can be
achieved. Each departments in the organisations are interlinked to
each other so the management must plan their strategies
accordingly by considering different functional
departments(Fleming and Koppelman, 2016). An effective
planning must be made before the launch of new product in the

market.
Principle of fundamental Establishment of benchmark is necessary for the organisation so
that the targeted benchmark can be attained within a shorter span
of time. The company like AEG must focus on setting a benchmark
and attaining it before launching new washing machines in the
market .
Principle of accountability This principle is solicitous with empowerment of duties and
responsibilities to each individual according to the skills and
knowledge which they fosters (Beringer, Jonas and Kock, 2013).
This principles is applied by the organisation so that the level of
accountability can be maintained among their employees. Here the
company AEG will give more emphasis on the production of
product as per the wants of their customers.
Examine the degree to which the operations management of the organisation meets the
requirements of the organisation:
Operation management in an organisation plays a vital role in accomplishment of all the
needs and expectations of their targeted customers in the best suitable way. In compliance to this
the management of the company AEG is planning to introduce a new product that is washing
machine considering the wants and desire of their customers. Various principles are being
implemented in the organisation so that the standard of the company remains maintained. With
the implementation of these various principles the organisation can plan their activities
effectively and efficiently(Mir and Pinnington, 2014). The workers of the organisation will also
support in the execution and performing various task by adopting the plans and strategies
decided by the top level management of the AEG company. These principle can also be used to
compare actual situation with the past so that the competitive advantage can be gained. These
principles are also utilised in the organization for managing task of manufacture, merchandising
and marketing of new washing machines.

TASK 2
P2 Prepare continuous improvement plan based on the review and critique of principles.
Continuous Improvement plan are those which helps in improving the products, services
and process on a regular basis and also helps in establishing the standard. The primary objective
behind the applicability of these plans is that it supports the organisation in measuring and
improving their current and future situations within a given time frame. This can be done only
through the evaluation of current and future situation.
Lean principle- Lean principle is referred to a process which involves carrying out of
business activities in the most significant manners by reducing the amount of wastage of
financial resources into an association(Turkulainen and et. al., 2013). This involves plans and
strategies which has been created for the production and manufacturing of the products with
reduced wastage. Prime principles related to lean manufacturing which are used by the AEG
companies are mentioned below :
Define value AEG company must used this in order to increase their sales
as this principles helps the organisation in building the value
of their products and services so that they can build large
customer base and can attract more customers.
Map value stream In this principle the manager of the AEG must ensure that the
standard and the target of each stages and phases must be
achieved within a given time period. This can be performed
by managing various activities of production, manufacturing
and designing.
Create flow This principle is taken up with observation and management
of manufacturing process with the motive of reducing trouble
and obstacle.
Establish pull This focuses on the just in time concept which allows
manager of AEG company to complete their task before the
given deadline (Matthews and Marzec, 2012). As by adopting
this the company can achieve the targeted standard within a

short period of time.
5. Pursue perfection This principles states that the use of new technologies and
tools must be their in order to accomplish the vision in a
smooth way so that the quality and the sustainability of the
product can be maintained.
Constant improvement plan is the accumulation of various action which are generally used for
rising actual position. This is generally done by assessment of each and every activity in the
organized manner(Brones, de Carvalho and de Senzi Zancul, 2014). For the business of AEG the
improvement plan has been discussed below :
PDCA cycle will be used by the AEG company to improve their organisations performance.
It is the first and foremost step that is to be considered in the organisation as this provides
business with the guidelines to execute their business operation in a organized way:
Plan Do Check Act
Organisations focuses
on the factor of Six
sigma to improve
overall manufacturing
and business process:
 supplying the
product which
are of
advanced
attribute with
less errors and
difficulty.
 Enhancement
of performance
and gaining
competitive
advantage over
In this stage the
organisation will focus
on creating a rough
mind map to have a
basic idea of the
feature of the washing
machines which will
be transferred to the
department of
production. Than
the plan and strategies
will be formulated
accordingly so that the
occurrence of the
wastage and errors can
be
diminished(Todorović
After the
manufacturing of the
new product which is
washing machine the
operation manager will
keeps on monitoring
its performance an will
analyse the areas of
weaknesses which
have to be solved for
the better functioning
of it.
The tool for checking
the performance of
machine is used that is
Total quality
management which
help in identifying the
actual performance
and compare it to the
targeted one. And if
the performance is not
up to the mark then the
formulation of new
plan and strategies is
being processed for
improving the
performance and
increasing the

the
competitors.
 Capturing the
market share
by 15 % and
using £100
million budget.
 Manufacturing
2000 units of
new product.
 Producing
washing
machines with
different
features and
attributes.
and et. al., 2015)
(Morris, 2013).
profitability.
Recommendation for improving the operational function in AEG company are as follows :
First – The company must focus on the factor of conducting feedback as this would
enable the business of AEG to increase their customer base and will leads to success of the
product which have been launched in the market place(Pradhananga and Teizer, 2013).
Second – The organisation must focus on developing the plans which are of flexible and
simple nature so that it can be modified as per the requirement and demands of the customers.
And should adopt the suitable techniques for evaluating the function of washing machines and it
parts. Which can help the organisation to increase their productivity over a period of time.
PART B
TASK3
P3 Apply each stage of PLC to given project producing necessary supporting documentation.
Overview of case study:

The chosen association under this Mark and Spenser which deals in the manufacturing of
high quality clothing. It is operating the business on a large scale and is serving worldwide.884
The company was established in the year of 1884. The main aim of the organisation is to control
the workforce from coming at the office premises at the time of their lunch the main area of
concern is to reduce the rate of labour turnover and absenteeism. These objectives can be
attained in a significant manner by the implementation of project life cycle(Tsamboulas, Verma
and Moraiti, 2013).
Project- the primary objective behind this project is to establish canteen for the workers
so that they can stay their during the lunch time and the health of the employees stay maintained.
PROJECT LIFE CYCLE
Project life cycle consists of 4 step which involves initiation of the project to the
completion of the project. This helps the organisation in achieving their goals by optimum
utilisation of all the available resources. Stages of project life cycle are described below in
context of the Mark and Spenser :
 Project initiation- This stages is the first and foremost step of the PLC . This steps
involves the process of defining in advance about the objectives, mission and vision of
the firm. This also helps the organisation by allowing them to determine all those hurdles
which may arise in near future and can be a major problem for the business in operating
their business(Love and et. al., 2015)(Drohomeretski and et. al., 2014).The prime aim of
this project is to better the health and working conditions of the employees so that they
work in the organisation with their full dedication and efforts and also helps in
diminishing the movement of employees during the lunch breaks.
 Project planning- Next to the first step is project planning which involves planning in
advance about all the cost which is going to be incurred in order to achieve the
organisational goal. If this stage of the PLC would not be there the company like Mark
and Spenser would not be able to determine what objectives and target is to be attained. It
is important for the organisation as it helps in executing the courses of action which are
beneficial for the future.

 Project execution- This steps involved implementation of the plans and strategies which
has been formulated earlier in the 2nd stage. This helps in converting the plans into
actions so that the standard and the targeted goals can be achieved within a framework. It
is the most essential step if the organisation will not use appropriate plan and strategies
they may face difficulties in achieving the goals , in order to achieve the desired goals
they must develop flexible plans and strategies which can be modified as per the need.
 Project closure- It is the last stage in which all the verifiable behind starting a project are
achieved. This means in this stage organisation will find suitable result to the question
and utilisation of resources will also be done in the effective manner.
Business case of Mark And Spenser:
Company overview  Mark and Spenser which deals in the manufacturing of high
quality clothing. It is operating the business on a large scale and
is serving worldwide. The company was established in the year of
1884. These associations are operating their operation for
satisfying the ultimate user of their products by keeping the prices
low(Too and Weaver, 2014).
Vision and mission  The mission of Mark and Spenser is to become worlds renowned
brands of clothings.
Objective  The primary objectives is to provide the employees with better
working environments by which they can control the problem of
employees turnover.
Strategy  Various strategies can be implemented for achieving these
objectives in a significant manner.
Follow up  The manager of the company will keep on following and
monitoring the performance in order to identify whether the
business is operating as per the plans and strategies or not.

Project plan-
Cost This much Amount of fund of £16,000- £ 28,000 will be required by the
organisation.
Communication Better medium for exchanging the information will be used by the
organisation in order to avoid the duplication of works .So that the goals
of the firm AEG can be achieved with the effective communication
among employees of the different departments.
Scope For the welfare of the employees as well as organisation better strategies
and message will be transmitted in the organisation like AEG. And in
this . It will also enable the organisation in providing flexibility in their
working hours as per the requirement.
Cost benefit analysis- Cost benefits analysis is done to identify the activities which leads to
unnecessary cost of operating. This will help the company AEG in evaluating their profit margin
and the amount of sales and revenues(Turkulainen and et. al., 2015). This would also help the
business in their longer survival in the market place by competing their competitors.
Work break down structure:
in this the activities are subdivided in a series of stages so that it can be managed
appropriately can also helps the organisation in easily attainment of their goals and targets by
dividing all the complex activities into the most simplest one.
TASK 4
P4 Review and Critique the effectiveness of PLC with the help of appropriate theories and
concepts.
Implementing the project life cycle in the business would help the organisation in
carrying their business effectively and would also help them in continuous monitoring of the
firms operations. Water fall method will be best suitable for Mark and Spenser : Stages are as
follows Requirement: It is phase of waterfall model helps the business in identifying the
requirement of resources and this also helps the business to adopt the concept of Six

sigma which reduces the scope of frequent alteration in the business(Matthews and
Marzec, 2012).
 Design: This involves all those plans and design which are necessary for the
management of project the company can focus on the implementation of leans principle
which reduces the wastage. For the achievement of goals the leaders can use autocratic
leadership style for achievement of goal in time.
 Development- In this stage overall all development is considered by using the techniques
of Total Quality Management which helps the business to compare actual performance
with the standard one(Too and Weaver, 2014). This will increase the chances of survival
of the business by improving external as well as internal organisation.
 Testing and maintenance- Under this stage various means and method used are being
tested for the future course of action. Test in done on the basis of actual action and
standard performance. If there is any gap in the performance than suitable scheme are
made reported to the need of condition.
Different Uses of Methodologies for Large and Small Scale Project
METHODOLOGIES SMALL-SCALE PROJECTS LARGE-SCALE PROJECTS
Six Sigma
This concept can be used by the
organisation to solve their
problem of the small project. As
it would provide them with better
ideas to overcome their problems.
The concept of six sigma would
help the large scale project by
allowing them to attain the
targeted standard and to bring
better coordination in the work.
Lean Principles
This technique will be applied for
maintaining the work in small
project as it would help in the
reduction of wastage which are
not important(Turkulainen and et.
al., 2015).
This would help the large scale
project in breaking the complex
task into the simple one by saving
cost and time through the
applicability of various strategies
and plans.