Operation and Project Management Report: Burberry & Sunshine Drink

This report delves into the application of operation and project management principles within the context of two companies: Burberry, a luxury fashion house, and Sunshine Drink. The report begins with an introduction to operations management, defining its core elements and emphasizing its significance in manufacturing and service provision. It explores the implementation of operation management principles, such as variance, organization, and fundamentals, within Burberry's supply chain and logistics. The report critically evaluates the extent to which these principles meet Burberry's organizational requirements, focusing on cost reduction, consistency, and the adoption of best practices. A continuous improvement plan is proposed, outlining strategies to enhance supply chain management and logistics, addressing areas like cost, quality, and delivery. The second part of the report focuses on project life cycles, using Sunshine Drink's new product launch as a case study. It examines the different phases of the project life cycle, from initiation to closure, and includes a business case analysis. The report concludes by reviewing and critiquing the effectiveness of the project life cycle in relation to the Sunshine Drink project, considering various theories, concepts, and models applicable to both small and large-scale projects.

OPERATION AND
PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Introduction to chosen organisation............................................................................................1
Explanation of Operation Vs operations management................................................................1
Implementation of operation management principles in context with chosen organisation.......1
Extent up to which operation management meets the requirement of organisation...................2
Continuous improvement plan based on review and critique of operation management
principle.......................................................................................................................................3
Recommendations to improve operation function......................................................................4
PART 2............................................................................................................................................5
Project life cycle..........................................................................................................................5
Effectiveness of PLC in relation with project using appropriate theories................................10
Different concept, theories and models used between small and large scale projects..............11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operations management is referred to the planning, organising and supervision in relation
with manufacturing and production of goods or provision of services. Its main emphasis is on
delivery of services and product. Project management can be defined as the application of tools,
techniques, knowledge and skills so that project activities can match up with the project
requirements (Binder, 2016). This report is written in context with Burberry which is a luxurious
fashion house, situated in London, England and Sunshine Drink. This assignment will cover
implementation of operation management principles and continuous improvement plan in
organisational context. Beside this different stages of product life cycle is discussed. At last,
review and critique in effectiveness of PLC to the chosen project is carried out in context with
different models, concepts and theories.
PART 1
Introduction to chosen organisation
Burberry Group is a Britain based luxurious fashion house which specialises in dealing
with ready to wear outwear, trench coats, sunglasses, fragrances, cosmetics and fashion
accessories. Company was founded in 1856 by Thomas Burberry and headquartered in London,
UK. At present company is successfully operating at more than 500 locations around globe.
Within UK, company operates around 50 outlets and stores.
Explanation of Operation Vs operations management
Operation is referred to the management of business activities and work so that
organisational goals and objectives can be achieved in an efficient manner. It includes three
fundamentals which are generation of recurring income, increment in value of business assets,
securing value and income of business. Operation management is a management area which is
associated with controlling and designing the procedure of business operations while
manufacturing products or offering services (Bryde, Broquetas and Volm, 2013).
Implementation of operation management principles in context with chosen organisation
There are different kind of operation management principles which can be adopted by an
organisation so that all the work and activities can be performed in an organised manner. In
context with Burberry, supply chain and logistics is considered as essential operations of the
1

company. To perform these functions in an effective manner, company gives special
consideration to them. Below is mentioned the measures by which these functions can be
successfully implemented in Burberry. Variance: This operations management principle is related with each process that is
carried out by company. It will benefits Burberry in reducing their excessive cost of
products and services. Also it will encourage company in enhancing their rage of
products. In case of supply chain management, variance will helps in controlling cost
from production of product till its distribution by eliminating extra resources but
Managing logistics in a direct manner will enhance the cost of company. This is because
to manage logistics, more working staff will be needed due to which cost will be high. It
shows this operations management principle is not implemented within company in a
proper manner. Organisation: As per this principle to enhance profitability and efficiency of Burberry, it
is essential for the operational manager to perform business operations in an organised
manner. To manage logistics and supply chain in an appropriate manner, company is
taking help of fuelled vehicles, hybrid and automotive trucks depending upon the
requirement. Hence, it is not possible for company to manage these operations in a
consistent and organised manner. So, implementation of this operational principle is not
effective in Burberry (Harrison and Lock, 2017).
 Fundamentals: According to this principle of operational management, there are
different fundamentals and norms which are required to be followed by in a strictly
manner so that organisational processes can be carried out effectively. Burberry uses
“clean and green clause” to manage their supply chain management and logistics system
in a proper manner. This fundamental adopted by company ensures that business
operations carried out by them are sustainable and provide no threat to the environment.
This principle is perfectly implemented within organisation.
Extent up to which operation management meets the requirement of organisation
It is important for Burberry to properly evaluate the implementation of operation
management principles in their organisation to acknowledge the extent up to which different
operation management meet organisational requirement. In this context, analysis is carried out
below:
2

 Major requirement of Burberry is to reduce the expenses and cost of their operations.
Company is using principle of variance to enhance their range of products such as
different clothes, accessories, furniture etc. But this principle do not help the company in
reducing their cost as it is applied to increase variety of products. Hence, this principle is
not able to meet the needs and requirements of company.
 Another need of the organisation is to have consistent and organised functions. As
company perform various activities to manage their supply chain management and
logistics, it is difficult for company to maintain consistency. So, this implies the fact that
each activity has its own requirements which can results in hindrance of operation
management principle of organisation (John Wiley & Sons.Kundu and et. al., 2015).
 Another need of Burberry is to assure that best methods and techniques will be used by
company to manage their supply chain system. This will help the company in ensuring
the safety of workforce and other aspects. In this regard, company has implemented
principle associated with fundamentals. Safety standards will ensure the safety of
employees as well as product or services of company. This requirement is achieved with
the help of this principle at high extent.
Continuous improvement plan based on review and critique of operation management principle
It is vital for Burberry to develop a continuous improvement plan so that different
processes of organisation can be performed in an organised and consistent manner. This helps
the company in improving their supply chain management system. Continuous improvement
plain is defined as a detailed description of all tasks and activities which are required to achieve
maximum output. It is a crucial aspect for business organisation that will results in improved
efficiency. This plan will helps Burberry in performing operation and activities in a manner
which will decrease wastage of resources and material. This will ensure enhanced productivity. It
is based on five principles which are flow, pull, perfection, value stream, value etc. A
Continuous improvement plan will benefits the company in improving the productivity of supply
chain management and logistics is mentioned below:
3

BASIS CURRENT
METHODOLOGIES
PROPOSED
METHODOLOGIES
COST
Company is using variance to
increase the diversity of
products offered by company.
This principle enhances cost of
company due to need of more
employees to manage logistics.
Variance can be implemented
so that wide variety of
products and services can be
attained. To manage logistics,
firm can implement
automation so that costs
associated with logistics can
be reduced.
QUALITY
To manage quality, company
is using methods like lean
principles in which wastage of
resources and material is
minimised. But this method
results in equipment failure
and inconsistent deliveries.
In order to manage quality,
company is required to
perform their activities in an
organised manner. Using Just
in time will benefit company
in modifying the quality of
product as per demand of
customers.
DELIVERY
Company is not using different
modes of transportation due to
which delivery is not proper
and customer face issues of
late deliveries.
Company is required to initiate
principle of change by using
different mode of
transportation such as road,
rail, air, sea so that products
can be delivered on timely
basis.
Recommendations to improve operation function
In accordance with the present operational management principles in Burberry, there are
some recommendations which can be given to the manager so company so that organisational
functions can improve further. In these regard, recommendations are mentioned below:
4

 As technology is getting advanced, Burberry is required to use advanced and new
methods like Automation, artificial intelligence and virtual reality so that products of
good quality can be produced in a cost effective method (Leach, 2014).
 Just-In-Time approach will help the company in assuring that inventory will be purchased
according to their requirement. In this regard, only those materials will be ordered by
company which will be in demand from customer's side. By this, wastage of excessive
material and resources will reduce.
PART 2
Project life cycle
Sunshine Drink posses a good reputation in marketplace due to which they have a strong
customer base. To enhance its product line, company is going to offer a new range of drinks by
combining natural spring water with different flavours. This will results in creation of new range
of drinks i.e. Sunshine Energy drink. The project which is initiated by company is required to be
performed effectively by following each phase of Product life cycle (Maylor and Turner, 2017).
This cycle include different sages which are related with timeline of the project till its closure.
Below is mentioned the product life cycle and business case for the new launched product of
Sunshine drinks:
Business Case:
BASIS DESCRIPTION
Importance
Sunshine energy drink is created by combining spring water with
different range of fruit drinks. This will provide numerous health
benefits to the people including increased brain functions. Also,
due to natural sweetness of fruits, additional sugar that harms
health will be avoided.
Target Market For this drink, the target market will be local residents in UK that
are ageing between 20 to 65 and are health conscious.
5

Cost Benefit Analysis:
Particulars Situation 1 2
Costs 100000 120000
Benefit 0 20000
(BEP point)
Costs Benefit
0
20000
40000
60000
80000
100000
120000
140000
Chart Title
Column C Column D
Illustration 1: Cost Benefit Analysis
Project Initiation:
First phase associated with project life cycle is initiation of the project. During this stage,
sunshine drinks will be needed to determine the objectives of project along with identifying their
threats and opportunities. Manager in organisation is needed to measure the entire project in
accordance with value and feasibility. In this regard, brainstorming will helps the company in
meeting their present as well as futuristic needs in the desired manner.
Objectives  Company is planning to increase their market share by 5% in
next 2 month of distributing its product.
 Another objective of organisation is to enhance its customer
6

base by 20% after 6 months of producing and distributing
new drink.
Strategies
With the launch of new product, company will offer high quality
drink to its customers. Appropriate promotion with the help of social
media and newspaper will help company in gathering large customer
base. To sell product, company will use price penetration.
Project manager in Sunshine Drink is needed to submit report to the management of
organisation for getting approval. In this regard, they can use different project tools such as
Microsoft project. Also, company can apply six sigma so that feasibility of manufacturing
products will increase. This methodology will benefits the company in reducing their operational
cost due to which company will gain high profits. In case of leadership, company is going to use
participative leadership where opinion of employees will also given consideration along with
management and employers.
Project Planning:
After project initiation level, next stage of product life cycle is project planning. In this
step, overall planning for new developed product will be carried out. In accordance with
confirmation of company, project manager can prepare detailed plan to identify which activity is
at priority and how much time company can spend to perform it (Muller, 2017). This will assists
the organisation in acknowledging resource gap so that those resource which are in shortage can
be ordered in a timely manner. Estimation of budget and other financial planning will also takes
place in this step. In this regard, project plan is mentioned below:
Cost
It will include cost associated with different resources, technology and
processes that will be used in preparation of new drink. Estimated cost
for new product is 50,000 pounds.
Communication
In this regard, company is going to use different communication
medium such as Emails, text messages, voice call, video call, written
communication in the form of documents, letters etc.
Quality To assure high quality, Sunshine drink will use new technologies like
automation so that resources can be used in an optimal manner and
7

maximum efficiency can be attained. .
Scope
Scope of this entire project is wide as company is going to hire talented
person and provide them different processes and equipments so that all
the work can be performed in an organised manner.
During this stage, company can take help of lean methodology as it will assists in
reducing waste due to which new product will be developed in an efficient manner. In case of
leadership, company can use situational leadership where roles and responsibilities will be given
to workers in according to the varied situations. In case of tool, company can use Gantt chart and
work-break down structure so that project can be accomplished in allotted deadlines.
Work breakdown structure:
8

Gantt chart:
9

Project Execution:
It is a crucial stage in Project life cycle as entire plan is executed in this step. With the
help of work break down, tasks will be allotted to different teams. For instance, one team will
focus on mixing flavours with spring water. Also, team will be needed to manage different
aspects like time, quality, budget etc. With the help of tools like Zoho and Proofhub company
can be guided in proper manner. Democratic leadership can be used and in case of methodology,
Total quality management is best to implement as product with less cost and good quality will be
prepared.
Project Closure:
It is the last stage associated with new drink project of Sunshine Drink company. Here,
detail documentation will be carried out along with budget accounting. In this step,
communication will play a crucial role so that management and stakeholders can be informed
appropriately. For tools, Basemap can be used. For leadership style, autocratic will be best as
leader will give work to members according to their capability due to which organisational goal
will achieved properly (Nicholas and Steyn, 2017).
Effectiveness of PLC in relation with project using appropriate theories
It is necessary for any of the organisation that how they implement the Project Life Cycle
because it is one of the effective way through which any of the organisation can give appropriate
structure to conduct any of the project where they can easily manage and monitor the daily basis
activity. In context of Sunshine Drink Company, it is necessary for them to critique and have the
review of each and every product which they manufacture on regular basis where they need to
check whether technologies and methods are being applied or not. Here, Sunshine Drink
Company can take the help of waterfall Model for the purpose of evaluating the Project Life
Cycle. Requirement: It is the initial stage where this model helps the organisation that what are
the additional requirement which are required for starting any of the project. Here,
company uses six sigma methodologies for the purpose of defining deliverables and
because of that it reduces the overall scope of organisation due to chances of changes are
very rare.
10