Operations and Project Management Report: H&M Expansion Strategies

This report provides a comprehensive analysis of Hennes & Mauritz (H&M), a Swedish multinational clothing retailer, focusing on its operations and project management strategies. The first part of the report delves into the core concepts of operations management, contrasting operations with operations management and critiquing the implementation of operations management principles within H&M. It explores the extent to which H&M's operations management meets requirements and proposes a continuous improvement plan based on lean principles, including defining value, mapping value streams, creating flow, establishing a pull system, and pursuing perfection. Furthermore, it highlights the application of Six Sigma methodologies for problem-solving and quality improvement. The second part of the report examines a case study, providing an overview of the project life cycle (PLC) and explaining each stage's application to projects within H&M. The report aims to provide insights into H&M's operational efficiency, expansion strategies, and continuous improvement initiatives.

Operations
and Project
Management

Table of Contents
PART 1 ...........................................................................................................................................3
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1) An introduction to chosen organisation.............................................................................3
2. Operation vs Operations management................................................................................3
3. Critique and review of implementation of operation management principles..................4
4. Analyse extent to which operations management of an organisation meets the requirement.
................................................................................................................................................5
5. Continuous improvement as a philosophy by describing lean principles..........................6
6. Build a continuous improvement plan after reviewing and critique of operation
management principles...........................................................................................................7
7. By using continuous improvement principles and recommend to improve the operations
functions.................................................................................................................................8
PART 2 ...........................................................................................................................................9
INTRODUCTION...........................................................................................................................9
MAIN BODY.........................................................................................................................9
1. An overview of the case study............................................................................................9
2. A description of PLC and explanation of each stage.........................................................9
3. How each stage of PLC applies to project by supporting documents..............................10
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

PART 1
INTRODUCTION
Operation management is the administration of business organisation practices which
aids to create highest level of efficiency possible within a company. It primarily aims to convert
material as well as labour into products and services as effectively as possible in order to
maximize profitability (Ahmadi, Haddad and Loáiciga, 2015). Furthermore, operation
management attempts to balance out cost with revenue so that highest level of net operating
profit is achieved. However, this part of the report is based on Hennes & Mauritz which came
into existence from 1947. It was founded by Erling Persson. It is a Swedish multinational fast
fashion clothing retailer. The outcome of this report tends to cover several aspects relating to
operation management. Comparison between operation and operation management will be
analysed. Furthermore, principles relating to operation management shall be reviewed in order to
significantly prepare continuous improvement plan,. Lastly, stages of PLC will be considered in
order to identify its effectiveness as well as application.
MAIN BODY
1) An introduction to chosen organisation
The selected company for this report is H&M which is a Swedish multinational clothing
retail organisation, the respective organisation is specialized in selling fast-fashion clothing for
women, men, teenagers as well as children. The company was founded by Erling Persson in the
year 1947. Currently the respective organisation operates its business operation in 62 countries
and has around 4500 stores. Moreover, it is the second largest globe clothing retail organisation
after Zara (Aragonés, García and Montesinos, 2017). The company has good online presence,
while online shopping of H&M is available in 30 countries.
2. Operation vs Operations management
Operation as well as its management are both essentially for an organisation in order to
effectively achieve desired business objective. Through operation management process proper
governance within workforce is essentially maintained. Further, operation management primarily
involves the utilization of resources from staff, materials, equipment as well a technology. The

basic motive of operation manager is to develop and delivers products and services to clients
according to their needs and desire. Operations are basically the activities utilised into order to
effectively convert information into proper goods and services. It primarily includes four factors
namely inspection, transport, processing and storage. Whereas, operation management is
considered with focusing on creating as well as controlling business activities so that
productivity within an organisation can be witnessed. Application of operation management
critically helps in enhancing overall business profitability as well as productivity.
3. Critique and review of implementation of operation management principles
Case Study: Currently, H&M is planning to effectively enhance its business operation in
order to increase the level of profitability. Therefore, to do this effectively the respective
organisation is significantly planning to expand business operation in Bhutan. This will
potentially help in enhancing its business (Badiru and Osisanya, 2016). In order to do this
appropriately proper market research shall be conducted so that the exact condition as well as
demand of people living in Bhutan can be identified. Moreover, after this identification proper
strategies are made so as to capture reasonable market share under Bhutan. Further, in order to
significant make this expansion possible proper planning as well as execution is must.
Operation Management: It is a process wherein planning, organizing as well as
supervising are critically involved. The prime objective of this process is to ensure higher
profitability as well as improvement of efficiency within a manufacturing operation. While
implementation of operation management there are several adjustments which are essentially
adopted in order to reach strategic goals. However, there are several principles of operation
management which are mentioned below:
 Reality: Operation management basically aims to focus on overall problem rather then
techniques. This essentially because no tool can be acquired to provide universal solution
to business problems. Therefore, proper analysis shall be conducted by H&M in order to
significantly identify the problem which may be faced by expansion.
 Organisation: This is one of the most important principle of operation management,
which aims to significantly organise all business activities in such a way the desired
business objective can be effectively accomplished (Gurin and Persiyanova, 2017). With
regard to H&M all the elements shall be consistent and predictable in nature. Therefore,
strategies might be made by H&M management in order to create a positive working

environment so that employees tends to work with their full potential. Implementation of
proper planning is must in order to make the expansion under Bhutan successful.
 Humility: Process of trial and error are very costly in nature, therefore manager shall
effectively understand the limitation which are witnessed within an organisation. In
context to H&M proper production process shall be followed in order to effectively save
time as well as money.
 Accountability: Being accountable is the basic key wherein delegation of authority is
essentially done in order to attain the desired business objective with proper efficiency.
Manager within an organisation are primarily responsible to set rules and regulation so
that consistency shall be witnessed. With reference to H&M proper policies as well as
regulation shall be implement so the business operation under Bhutan can be effectively
done. Each employee shall effectively know to whom he is accountability.
 Change: It is very essential for a business organisation to deal with the changes
effectively (Han, Lee and Nyamsuren, 2015). Changes can impact a business organisation
in positive as well as in negative manner. With reference to H&M, the company shall
adopt new technology available in potential market in order to effectively understand the
demand as well as desire of people living in Bhutan.
However, there many other principle of operation management which are essentially utilised by
an organisation in order to significantly accomplish the desired business objective. Proper
marketing research shall be made so as to know the exact situation prevailing in the market and
adopt strategies accordingly.
4. Analyse extent to which operations management of an organisation meets the requirement.
Operation management within an organisation play a very vital role through which
efficiency is essentially witnessed (Heravi, Coffey and Trigunarsyah, 2015). However, adoption
of operation management will critically help H&M to capture reasonable market share in Bhutan.
Currently the respective organisation have adopted five principles of operation management so
that accomplishment of goals shall be done. These principles includes organising, reality,
humility, accountability as well as change which will help H&M to ensure smoothing
functioning. Every organisation make use of operation function in order to produce the best
product for company's potential customers.

Through adoption of operation management within H&M, management can effectively
understand the actual desire of people living under Bhutan and produce the goods and services
accordingly so that expansion becomes successful. Furthermore, good market reputation of
H&M under different parts of the world due to proper adoption of operation management process
customers under Bhutan will prefer the products.
5. Continuous improvement as a philosophy by describing lean principles
Lean principles is an important strategy which critically helps in enhancing the overall
value of products as well as services. It is a kind of manufacturing practice which has
transformed the process of production. It aims to encourage the practice of continuous
improvement so that productivity within an organisation shall be witnessed. Lean manufacturing
is a systematic method that aims at minimizing the waste during manufacturing process without
sacrificing productivity. Through implementation of this process several benefits to H&M can
be potentially seen (Kerzner, 2017). Therefore, the respective organisation H&M can
significantly adopt the principle of lean manufacturing in order to reduce waste generation and
enhance the overall productivity. This will essentially help H&M to expand its business
operation under Bhutan most appropriately. However, there are five principle of lean
manufacturing which are essentially utilized in order to enhance production process.
 Define Value: Value is anything for which customers is willing to pay. This paramount
primarily aims to discover needs as well as desire of customers. However, with regard to
H&M proper techniques is must be adopted in order to significantly identify the current
situation in Bhutan. The company can make use of surveys, interviews, web analysis and
several other similar aspects in order to discover what are the expectation of customers.
 Map Value: This is the second step of lean manufacturing wherein identification as well
as mapping of value stream is significantly done. The prime objective of this step is to
make use of customer value and effectively contribute. In context to H&M the respective
organisation shall add value to the products which there are going to offer under Bhutan
so that more and more customers are attracted towards the brand. Herein elimination of
waste is effectively done.
 Creation of flow: After proper elimination of waste, evaluation is undertaken in order to
ensure flow of steps smoothly without any interruption. Strategies are made which aims
to ensure proper value adding is done so that smooth flow is witnessed. Through this

H&M can serve its potential customers effectively under Bhutan and desired business
objective can be accomplished.
 Establish a pull system: This principles of lean manufacturing aims to effectively
manager inventory which is considered as one of the biggest factor. The goal of this step
to limit inventory as well as work in progress (Li and Li, 2017). Due to this products
produced by H&M can be effectively delivered to its customers in Bhutan on time.
 Pursuit Perfection: Waste are essentially prevented through achievement all mentioned
above four step whereas the last step is regarding perfection, which is most important.
However, with reference to this H&M can manage its business operations effectively and
more customers can be attracted.
Six Sigma
It is a controlled, statistical supported, information compulsive formulation and constant
development method to obviate fault in a product, process and facility. In H&M, this method can
be utilised through the administrator of the firm to resolve the problems and complexities that are
arisen in manufacturing activity. With the assistance of this, the company can devise
development in the quality of goods. This approach includes 5 elements and the activity of all of
them is explained as under:
Define- It is the first phase and in it, the administration of H&M manufactures products and
facilities as per the needs and demands of target audiences with the motive of offering fulfilment
to them. It can be useful for respective venture as it provide effective direction that can be
beneficial to satisfying the customers requires through providing commodities accordant to them.
Measure- In this phase, the management of H&M can determine the existing condition of the
manufacturing and if there is any need of improvement them devise it in efficient form. It is also
crucial to evaluate to necessity of required assets that assist in efficient production of
commodities.
Analyse- In this phase, the management of the company can finding out issues and
complexities that are arisen in the operation and procedure. With the assistance of it they can
analyse the demands for development.
Improve- This phase associated to the making change in the products and facilities of the
firm. In H&M, the operation administrator can determine the modifications that are occurring in

consumers wants. With the assistance of this, they can form growth in their needs through
providing goods as per to them.
Control- It is the final phase, within it, the management offer effective solution to make
balance in the actions and operations of manufacturing. In H&M, with the assistance of this, the
operation administrator can offer goods to its consumers on granted timeframe in reference to
satisfying their demands and needs.
6. Build a continuous improvement plan after reviewing and critique of operation management
principles.
Continuous Improvement Plan: Continuous Improvement plan is eventually designed
to bring gradual as well as ongoing improvement within products and services through constant
review and measurement. It is a physical aspect which helps in enhancing the overall business
productivity to a great extent. Furthermore, adoption of continuous improvement plan essentially
helps in seeking incremental improvement. With reference to H&M, the company can be highly
benefited through adoption of this process. Because the main focus of this process is to improve
the effectiveness of organisation in order accomplish desired business objective. In context to
H&M following is the continuous improvement plan adopted so that it can potentially expand its
business operation under Bhutan effectively:
Plan Do Check Act
After sales services In order to significantly
expand company's
business operation
under Bhutan, effective
after sales services to
potential customers
shall be provided. This
strategy will critically
help in retaining
customers (Lutsenko,
2015).
Proper training as well
as development of
employees must be
done. This will
potentially help H&M
to effectively solve
quires as well as
problems of
customers.
Huge amount of
customers retention
shall be witnessed this
is essentially because
the customers would
be satisfied with
services provided by
H&M.

Market Analysis This yet another
important factor which
is essentially
considered while
expansion business
operation. Proper
market analysis will
essentially help H&M
to identify needs as
well as exception of
people living under
Bhutan.
To do this H&M can
appoint a proper team
which can conduct
proper market research
in order to find the
exact expectation of
customers from the
respective brand.
After conducting
proper market research
products by respective
company shall be
produced keeping in
mind the desire of
company's potential
customer. This will
further help in
retaining more
customers.
Continuous improvement plan
Basis Current methodology Proposed methodology
Cost H&M has used the principle of
variance in operation but it is not
considering it appropriately.
Creativity and innovation between
workers can increase the
manufacturing cost.
To analyse the customer demands and
only make creation and demonstrate
innovation in those commodities that
are highly demanding among
consumers. For this, the venture can
utilise principle of variance as it assist
in making balance in manufacturing
cost and maximising efficiency of the
firm.
Quality In existing time, the venture executes
the principle of fundamental to
manage the cost or increase the
innovation among employees. But due
to high innovation, it is capable to
manage its manufacturing cost.
To make balance in production cost,
the administration of the firm can
execute the approach and principle of
causality as it is effective to
administrate the issues of fund and
monetary value so it help in
administrating manufacturing cost.

Delivery In current era, the company utilise the
principle of responsibility cause of
which financial plan and cost of
manufacturing is not administrate and
the workers of the firm will not
accomplish their work and task in
effective form.
By considering this principle of
fundamental, it can be administrate its
budget before operating business
activities and operations associated to
manufacturing of commodities and
facilities. With the assistance of it, the
workers of the organisation also attain
their task efficiently as the cost of
manufacturing is already administrating
as per to the actions.
Control Now, the company utilising the
principle of causality which is
efficient for managing the issue of
capital administration but it is not
capable to reduce the complexities of
inventory and wastage, It influence
the execution of the firm negativity.
By executing the approach and principle
of management, the firm can
administrate the problems of capital
administrate, inventory and wastage
management. As the company is
dependent on several other divisions for
several different actions. So they also
assist in reducing capital, waste and
inventory etc.
This is short continuous improvement plan which shall be adopted by H&M in order to
significantly make the expansion successfully under Bhutan. However, this plan be effectively
help in attracting as well as retaining more and more customers towards the brand.
7. By using continuous improvement principles and recommend to improve the operations
functions
Moreover, there are several other major factors which shall be adopted by H&M in order
to significantly capture market share under Bhutan. Proper analysis of market as well as buying
pattern of customers shall be considered so that each and every aspect relating to respect country
shall be made clear (Meredith, Mantel and Shafer, 2017). Proper standard shall be made for
employees so that they work with their full potential in order to accomplish business objective.

Development of products and services shall be done keeping in mind the lifestyle adopted by
people living in Bhutan. However, in order to significantly improve operation function utilization
of sequential flow pattern shall be done and further implementation of a predictable process shall
be adopted.
PART 2
INTRODUCTION
Operation management is a area within a business which is concerned with designing as
well as controlling the manufacturing process in order to redesign business operations. It is
primarily responsible for ensuring that business operation are done so the needs of customers are
effectively full filled (Mubin, 2016). This part of the report is based on Sunshine Drinks which
is involved manufacturing fruit drinks in potential market. The outcome this will critically aim to
analysis project life cycle and as well as several other aspects through the new product launch
can become successful.
MAIN BODY
1. An overview of the case study
Case Study: This part of the report is based on Sunshine drinks. The respective
company's has good market reputation under potential market and tends to enjoy excellent
customer confidence. The company is primarily manufactures and sells fruit based drinks. The
product line of Sunshine drinks company includes range of tropical fruit flavours and summer
fruit flavour. Currently the company is planning to introduce new variety of energy drink made
with natural spring water.
2. A description of PLC and explanation of each stage
Project Life Cycle is a four stage process which is effectively followed by project
manager in order to effectively moving through the stage of project completion. Every project
within an organisation have beginning, middle and completion stage (Thaler and Levin, 2016) .
A standard project typically follows four major stages through agenda as well as task it of a
particular project is made clear. Therefore, Sunshine Drinks will effectively consider each stage
in order to potentially goals as well as established business objective.

 Project Initiation: This is the very first step which is termed a the initiation phase.
Herein identification with regard to business problem is essentially made so as to solve
the desired problem. With resect to Sunshine Drinks this project initiation essentially
helps in identifying needs and wants through this development of several strategies shall
be done.
 Project Planning: This is the second phase of project life-cycle wherein determination
regarding the project planning is done. It tends to include strategic planning as well as
proper implementation. Herein a blueprint is made the basis of which the project is
executed. With regard to Sunshine Drinks the respective shall properly plan the way in
order to accomplish desired objective.
 Project Execution: This is termed as the initiation phase that tends to utilize most of
time, money as well as efforts. Under this stage execution of the implemented plan is
done. With respect to Sunshine Drinks herein the manager will effective measure the
business performance in order to ensure that project becomes successful.
 Project Closure: This is the last and the final stage considered under project life cycle.
The emphasis of manager under this stage is on delivering the final outcome to the
customers (Rokooei, 2015). Herein, the manager of Sunshine Drinks will significantly
develop work break down structure so as to ensure that all major business activities are
performed effectively.
There are several factors which show implementation of project life cycle is effective as
well as ineffective for the Sunshine Drinks, below some of them are given below:-
Advantages Disadvantage
 Respective model is simple to
understand as well as implement.
 It will be effective for the small as well
as middle size business projects.
 Project life cycle include uncertainty
and risk.
 It is considered as out of place or long
term projects.
Cost Benefit analysis is process which a company uses in order to analyse decision as well as
system of a particular project. However, with respect to above company needs to adopt proper
funds in order to make this a success.