Operations Management Principles: Aldi and Sunshine Drinks Analysis

This report examines the operations and project management practices of Aldi and Sunshine Drinks. Part 1 provides an introduction to Aldi, explaining operations vs. operations management, and reviews the implementation of operations management principles, including scientific management, flexible specialization, and lean production. It critiques these principles, analyzes how Aldi's operations management meets organizational requirements, and discusses continuous improvement and lean principles. A continuous improvement plan is prepared, and recommendations are made. Part 2 focuses on the project life cycle, reviewing its effectiveness using project management theories and models. The report concludes with an evaluation of the principles and practices discussed throughout, providing a comprehensive analysis of operations and project management in these two case studies.

Operations & Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................4
An introduction to your chosen organization..............................................................................4
An explanation of operation vs operations management............................................................4
Conduct a review and critique of the implementation of operations management principles
within organization......................................................................................................................4
Analyze the extent to which the operations management of organization meets the
requirements of the organization.................................................................................................6
Discuss continuous improvement as a philosophy and describe the Lean principles.................6
Prepare a continuous improvement plan based on your review and critique of operations
management principles within your organization.......................................................................7
Using continuous improvement principles, make at least two justified recommendations
which could improve the operations function.............................................................................8
PART 2............................................................................................................................................8
(a) Project life cycle:...................................................................................................................8
B) Review and critique effectiveness of PLC by using theories, concepts and models in
project management..................................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operation management is an administration regarding business practice that helps in
create maximum level of efficiency within an organisation. Operation management concerned
with converting or transforming raw material into finished goods and services by maximum
using raw materials and labour efficiently. This report is based on Aldi which is an family owned
supermarket chain with more than 10,000 stores in almost 20 countries. The another part of
report is based on sunshine drinks which manufactures, sells drinks in market and aimed to
combine range of drinks with a new energy. This report is based on role and importance of
operation management with its various principles to gain goals and objectives. It also includes
critical evaluation of principles of operation management with role and importance of continuous
improvement plan which based on principles of operation management. It also includes Project
life cycle with project plan, WBS and many more factors. At last it evaluates effectiveness of
PLC by kinds of theories, practices and models.
PART 1
An introduction to your chosen organization.
This report is based on Aldi which is an common brand of family owned discount market
chain with 10,000 stores in almost 20 countries and it has estimated turnover more than €50
billion. It is founded by the Albrecht family and opened its first store in 1961 in Germany that
makes Aldi a first discounter in the world. Now it has more than 1600 stores across more than 35
states, employ more than 25,000 employees. They focus on consumers first delivering high
quality first food and provide responsible customer services and everyday low prices with quick
and easy shopping are their major deliverable to their consumers.
An explanation of operation vs operations management.
Operation management is a very important field or sphere due to its multidisciplinary
approach (Aaltonen, 2011. ). Operation management is mainly concerned with planning,
organizing and coordinating with supervising works and activities in context of production or
services. Both operation and Operation management are very much important for organizational
growth and enhancement (Bank and et. al. ,2010.). In operations which is an important area of
management that concerned with designing and controlling process of production with
redesigning of goods and services.

Conduct a review and critique of the implementation of operations management principles within
organization.
Scientific management:
Scientific management is one of well known theory of management that helps to analyze
workflows. The main objective is to improve level of work efficiency majorly labor
productivity. In context of Aldi that faces problem of coordination in various departments and
resist to change in which scientific management helps to enhance work efficiency which majorly
focus on labor productivity by giving proper knowledge and information to give their best in
organizational development and enhancement.
Advantages:
the major advantages of scientific management that it provides trained minds for
achieving higher level of excellence in management of major activities. It also contributes to
revolutionized and bring improvement in layout, routing and scheduling of management of work
and accounting to get important outcomes.
Disadvantages:
there are some major areas that hinders self interest of an organization while adopting the
scientific management that are it occurs higher level of cost. Also time and motion studies
concentrates on improvements in heavy initial level of outlay of capital to get desirable
outcomes.
Flexible specialization:
Flexible specialization which is popular business strategy that used by an organization to
build one self more effective. In context of Aldi by using the multitasking employees they
effectively manage machinery and equipment's that can be able to do many things
simultaneously to reach at desirable goals and objectives. So it work as an effective tool to
coordinate works and activities in proper manner.
Advantages:
Although it takes too much cost and time to implement but it saves time in future as it has
ability to adopt changes by preventing defective products and resources to get potential
outcomes.
Disadvantages:

There are some kind of disadvantages while adopting the flexible specialization that
implementation of it in production process is very much complicated that requires through
planning by crating detailed designing and scheduling. Also it requires high level of skilled
manpower that can operate their machinery and salaries of employees are high.
Lean production:
There are many principles of operation management that proved beneficial for
organizational growth and enhancement. Lean production is one important approach of
management that focus on cutting wastage by ensure quality of products and services. It applied
in every aspect of business in design, manufacturing through production and distribution. In
context of Aldi they use respective management approach to save cost and time to get important
outcomes.
Advantages:
The main advantage of lean production that it requires less infrastructure that saves cost
and time to manage all these important attributes to get important outcomes. With it saves
resources by limiting waste while producing products in an organization. In context of Aldi they
by use that management approach can exploit one of possible opportunities to remain always
competitive.
Disadvantages:
There are some disadvantages of Lean production that in it less margin of error exist, in
case equipment get fail or breaks down than it requires projected labor to get certain output from
whole process. Sometimes it misses deliveries that directly linked with lack of flexibility to get
optimum outcomes.
Reality:
In that organization have to focus on whole problem, not only just tools and techniques
and reason that no tool and technique are not self sufficient in itself.
Organization:
In an organization every work and activity with departments are interconnected with each
other so these should be consistent and predictable in efficient manner (Bouraad, 2010.). In case
of Aldi their all activities and departments with their activities are interconnected with each
other.
Humility:

In that trial and error process takes huge cost and time so it helps in acknowledging
limitations to managers. In case of Aldi after evaluating each and every aspect in proper way
they implement projects so that they can save cost and time.
Success:
The many concepts and definition of success that vary from every organization and
person to person. The one of most important factor to get success is to give delighted experience
to consumers. In case of Aldi their main focus is to deliver best services to consumers.
Accountability:
Accountability is one of important aspect to run a smooth business and their operations.
Managers have to check rules and metrics on daily bases to meet goals (Becerik-Gerber,
Jazizadeh, Li and Calis, 2011. ). In case of Aldi they assign roles and responsibilities to
everyone so that they remain accountable for that work and attain goals and objectives.
Causality:
Problems or concerns are everywhere and to remove or eradicate concerning issue
organization have to find out root cause of it. In case of Aldi when cultural issues arise in their
firm they find out major reason behind it so that permanently they can eradicate it.
Change:
Change is very much obligatory for an organization and it helps in enlarge business
opportunities and growth. In case of Aldi for remain always competitive in market place they
apply new concepts that helps in enchant large no. of consumers.
Review and critique of operation management principles:
The operational management principles are very much important for organization to lead
in market by coordinating each and every activity in better way. With the help of reality principle
firm can be evaluate in whole organization respect that enhance the viability of a project. But on
other hand sometimes covering the whole aspect simultaneous not possible for an organization
that hinders self respect of them. The another principles that are organization states that all
departments are connected with each other and work in self interest of each other but on other
side they are not able to give their best as they have separate targets. In that next principles the
error and takes huge cost to evaluate the gaps while producing the products and services in better
way so organization have to target and attain goals accordingly. In that context organization
faces the problem of coordinating in various departments that they are not able to communicate

in proper manner with each other so for that they have to conduct various works and activities to
reach at desirable goals and objectives. The another problem that employees are very much rigid
to accept changes for that organization have to put best efforts so that employees can gives their
best.
Critical evaluation:
Advantages of operation management principles:
The principles of operation management are very much potential for any organization
that helps in giving direction in which area they have to focus so that desirable goals and
objectives should be achieve (Broadhurst and et. al. ,2010).
Disadvantages of operational management principles:
On other hand it occurs huge cost and time to attain goals also through research and
development so that important results should be occurred. In case of Aldi they adopt change
principle of operation management because it is an multinational organization and frame
products that distinctive from their major competitors to remain enough competitive.
Negative aspects of operational principles:
The negative aspect of that principles that they are large in quantity so create hazardous
effects for an organization to choose best out of them. All these takes lot of time and cost and
small organizations can not afford to adopt it in proper way that create problems in front of
them.
Conclusion:
From the above principles it has been concluded that all stages are very much crucial and
related with each other to achieve organizational goals and objectives in proper way.
Analyze the extent to which the operations management of organization meets the requirements
of the organization.
Operation management is one of important and crucial for organization as they help in
produce professional managers that helps in achieving organizational strategic goals in a definite
time period (Bullinger and Warschat, 2012.). Operation management is core of every
organization that helps in control the system of an organization and handle kinds of issues or

concerns regarding designing, operation and maintenance to bring improvement by producing
vital products and services. Hence it plays very vital role in case of Aldi to give direction in
which sphere they have to focus as per their importance.
Discuss continuous improvement as a philosophy and describe the Lean principles.
Continuous improvement is an philosophy which focus on seeking ways to enhance
performance by improve performance. In it also includes identification of benchmarks of
excellence and practices for installing employee ownership process. Every organization for
enhance their productivity apply continuous improvement plan.
Principles of lean:
There are majorly five principles of lean that are as follows:
Identify value:
In that aspect organization continuously evaluate performance and value of products and
services in context of consumers. With factors that helps in attain mission, improvement in
position and helps in provide unique value. In case of Aldi by providing products and services by
accessing their needs give value to them.
Map value stream:
After analyzing unique value that provide by product and services, organization map
value and their direction to reach at desirable goals and objectives (Cook and et. al. ,2011.). In
case of Aldi when they bring change in organization they give necessary with important
information to their employees.
Create flow:
In that step after getting map or direction of each and every factor organization focus on
maximize efficiency and reduce wastage. In that organization optimize flow in every aspect not
only one aspect but every sphere of firm.
Establish pull:
In that perception of customer should be judged after analyzing final product and services
by reversing map. In that aspect customer help to pull the values that revolutionized in practical
way (Eadie and et. al. ,2013.). In case of Aldi after implementing final product and services they
evaluate needs and values to grab attention in positive manner.
Seek perfection:

In that last stage organization seek to improvement in major spheres and bring
meaningful changes to bring effective results in positive manner. In case of Aldi they deals in
discount chain of products so to remain always competitive in market they aimed to bring
continuous change.
Prepare a continuous improvement plan based on your review and critique of operations
management principles within your organization.
Continuous Improvement Plan
Source/Origin Anticipated outcomes Present performances Strategies for
improvement
Promotional events Promotion is very
much important for
any organisation, in
case of Aldi their
promotional technique
are not as much sound
as their competitors.
Due to lack in
promotional events
organisation not able to
reach at every potential
consumers of them and
lot of options with
competitors in market
so it hinders self
interest of Aldi.
To enlarge business
opportunities
organisation have to
adopt strategies and
plan their new
advertising and
promotion tool that
helps to reach at large
consumers.
After sale services Aldi deals in every
kind of product and
services so to give
delighted experience to
consumers after sale
services are very much
important. In case of
Aldi sometimes due to
mismanagement they
are unable to provide
to every consumer.
In that case they are
sometimes unable to
give delighted
experience to
consumers because it is
very much important
for any organisation.
To give after sale
services organisation
have to evaluate
products and services in
which after sale
services are very much
necessary so that they
enhance ratio of
customer satisfaction.

Plan Do Check Act
Coordination in
various departments
Coordination in
different departments
is very much crucial
for organisation to
remain always
competitive by
communicating right
kind of message to
people in various
departments. In
context of Aldi they by
giving training and
coordinating various
meeting session build
healthy relationship.
After implementation
that plan in proper way
organisation planned
to check each and
every activity in
proper way.
After that they take
appropriate step to
reach at desirable
goals and objectives.
Resist to change Aldi focus on giving
education about the
change management
and its importance in
their life so that they
can give their best in
organisational
development and
enhancement.
They apply it on
practical basis and get
their reviews in proper
way.
In that after giving
proper education to
people or employees
organisation can be
able to direct towards
achieving
organisational goals
and objectives in
proper way.
Lean manufacturing:

Lean manufacturing and production is an systematic method that focus on waste
minimization within a manufacturing system with sacrificing productivity that are major cause of
problem.
Kaizen:
Kaizen refers to activities that continuously focus on improving functions and include all
level of employees to manage waste in proper manner.
Target area Actions Major
deliverables
Anticipated
results
Future actions
The target area
before
organisation is to
manage and
coordinate
various
departments that
they work in self
interest of one
another.
To get desirable
objectives that to
coordinate
various
departments
organisation
provide proper
roles and
responsibilities to
each and every
individual.
To coordinate
teams and
individual
organisation
provides
responsibility to
management to
deliver roles and
responsibility to
each individual. It
deliver when an
individual join
organisation and
when hand over
new role. To
accomplish roles
and
responsibilities so
that each and
every person can
give their best.
Roles and
responsibilities
By using
operational
management
principle of
accountability in
which each and
every should be
responsible for
their tasks and
duties. By using it
organisation can
get one of best
outcomes and
remain always
competitive.
Tor remain
always
competitive in the
marketplace by
distributing roles
and
responsibilities so
organisation
occupy a
systematic format
in which skills
and capabilities of
an individual
should be judged
properly and
accordingly
responsibilities
should be hand
over.