Project Portfolio Optimization in Global Organizations

Project Portfolio Management (PPM) is crucial for global organizations managing numerous projects simultaneously. This paper explores the methodologies employed by leading firms such as IBM, GE, Siemens, Unilever, Philips, Ericsson, and Shell to ensure efficient allocation of resources across various projects. It examines their strategic approaches in integrating PPM systems into existing IT frameworks to enhance operational efficiency. The study highlights successful implementation techniques, challenges faced during integration, and the resulting improvements in resource utilization and project prioritization. By analyzing these practices, the paper provides insights into how organizations can effectively optimize their portfolios to achieve better alignment with business goals, ensuring sustainable growth and competitive advantage.

Operations and Project Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Implementation of operations management principles in organisation................................1
TASK 2............................................................................................................................................6
P2 Continuous improvement plan based on the review..............................................................6
TASK 3............................................................................................................................................8
P3 Application of PLC................................................................................................................8
TASK 4..........................................................................................................................................12
P4 Effectiveness of PLC in application of project....................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operations management in organisation is important as it watches the dealings of
company. It is important that manager has to check that whether employees are perusing in an
appropriate manner or not. There are many activities in operations which are linked to each
other. There are possibilities that activities are related to each other, so it reduces the production
time and wastage of resources (Antonio Martins and Ramos Martins, 2012). This report is based
on Haier which has good reputation in market. This company deals in production, marketing and
selling of home appliances such as refrigerator, television, cookers, washing machine, etc. In this
report, principles of operations management and its application in organisation as well as
preparation of continuous improvement plans based on operation and management principles
will be discussed. This report also study about work breakdown structure used in PLC and
theories which shows the effectiveness of implementation of PLC.
1

TASK 1
Implementation of operations management principles in organisation –
Definition of Operation Management
Operation management is about planning done by managers for effective implementation
of policies and strategies. This management is important as company has to work effectively in
the industry. Operational management helps individuals in knowing their code of conduct and
this provides guidance to them. Manager of Haier has to take care of all the departments and it is
important to maintain harmony among them. This helps in smooth running of the business
operations.
Operation management is not an easy task. There are many other duties and
responsibilities associated with them. It is important that operational manager has to keep
interacting with departmental heads and they are responsible to deliver appropriate information.
There are various types of operation management principles which help in accomplishing
objectives and targets in the best manner and this helps in completion of job on time (Beringer,
Jonas and Kock, 2013).
Principles of operational management are discussed as below- Reality- This principle says that there is no specific tool available in the market for all
problems. This tool says to focus on problem and then provide solution in the company
Haier. As per change in situation there is requirement to change plans and policies. Organisation- In Haier organisation, there are various activities to achieve goals and
targets which are related to each other. It reduces the production time and cost. Fundamental- As per this principle, 80% results come from strict rules and regulations
while remaining 20% is the result of application of new tools and techniques. This
provides an advantage of being recognised in the crowd. Accountability- This principle is beneficial for assigning duties and helps to provide
authority accordingly. This principle helps to know the subordinates about flow of
communication and their code of conduct. Variance- When there is reduction in cost, it is important to keep eyes on other related
activities such as quality of products and number of defects. This will help company in
minimising the negative results.
2

 Causality- Future in business cannot be predicted and there are chances that company
may face problem on regular basis (Blomquist and et. al., 2010). So, it is essential to
solve problems diligently. Managed passion- The goals and objectives of company can be fulfilled by efforts of
employees. So, it is important that employees must be energetic regarding their job
duties. It is not necessary that every employee is motivated regarding job and so, manager
must encourage the workers. This will help in successful completion of the targets. Humility- It is not necessary that manager is always learned about all things. So he/ she
must accept about the unawareness of facts and information. This principle helps to
update the knowledge and apply it to operations. Success- Success is not one time task. There are changes in the plans and policies to
achieve a profitable position. This principle says that there is requirement to review all
the above stated principles timely.
 Change- To achieve the targets and objectives, it is important to apply theories and
policies as per need of environment. This will help to achieve the set targets and
providing high level of satisfaction to customers (Brauers and Zavadskas, 2010) .
In Haier Company, there is an important role of principles of operations management for
successful launch and sale of large screen televisions. As this company is new in this market so,
there are chances of change in plans and policies. It is important to learn new things from
environment and then take corrective measures. This launch is successful with the joint efforts of
employee and employer. So, it is the important to motivate employees regarding use of new tools
and techniques. There are chances that many problems and mistakes may arise due to adoption of
new plans and techniques. It is important to take lessons from them and then apply the most
appropriate measure.
Six Sigma methodologie and lean principles
SIX SIGMA
Six Sigma is a technique used by the manager of organisation to know future prospects of
new launch of products and services. This technique includes two main methodologies i.e.
3

DMAIC and DMADV. DMAIC is used to make improvements in the existing product and
services. While, on the other hand, DMADV is useful for creating new products and services. As
Haier company wants to enter in industry with large screen television market so DMADV will
apply (Fernández-Sánchez and Rodríguez-López, 2010). Define- At this stage, problem is defined and then planning has been done regarding it. Measure- There is the use of different techniques to know relevance of new launch. This
will help to know how much that product will be successful. Analyse- There are many methods and technique through which Haier can fulfil its goals
and objectives. Design- After analysing most appropriate method, it has to be adopted to meet customer
demand.
 Verify- This is the stage when manager of Haier has to know views about products and
services from customers. There is the proper test done related to commodity and in case
of shortcomings, it must be cleared.
4

(Source: Six Sigma Technique, 2018)
5
Illustration 1: DMADV

LEAN PRINCIPLES
This principle consists of five steps which are beneficial to achieve goals and targets.
This principle is easy to learn but tough in application.
 Define value- It is important to know that what price customer is ready to pay. This will
help determine and fix cost of product (Fleming and Koppelman, 2016). These
televisions are purchased by schools, colleges, etc. and so, they must be the main targets
of company.
 Mapping value stream- It is important to analyse the demand of customers and they
have to make those points as reference in future. This helps to curtail down the waste
activities.
 Create flow- After removing wastage this will help in creating smooth flow of resources.
This is important to say that manager analyse sources effectively.
 Establish pull- After analysing waste activities it is important that manager has to give
importance to useful activities. This will help to maintain stock of raw material and WIP.
There will be no dead and over stock ion company. Pursue Perfection- This step says that there is always scope of improvement. This steps
emphasis on regular check on operations and adopt best among them.
6

(Source: Lean Principle, 2018)
TASK 2
Continuous improvement plan
DEFINITION OF CONTINOUS IMPROVEMENT
Continuous improvement is a process which is implemented by company to know
shortcoming and after taking feedback those aspects have to modify (Gunasekaran and Ngai,
2012). Continuous improvement help in giving more satisfaction to customer, and this ultimately
affects improves profitability of organisation. This is a constant process and there is need of
regular interference of company.
For Haier continuous improvement plan is important for making changes in their
operations and tries to make improvement their product and services. It is essential to know what
activities has to be taken which help company to make alterations in achieving business
objectives. There are various factors which are required to be considered with demand and need
of society. Workers are are of activities which has to be performed and in what manner.
7
Illustration 2: Lean principles

Continuous improvement plan based on the review
CONTINUOUS IMPROVEMENT PLAN
Provider
Date
Source Anticipated Outcome Current level of
performance
Improvement
Strategies
Promotional events Due to lack of
promotion consumers
are not aware that
Haier launch such
product
Due to less
information customer
are not ready to
purchase television.
As they have less faith
and trust because of
new entrance.
Hence there is
requirement to spend
more money in
advertisement such as
online promotion, TV
advertisement,
Hoardings, etc.
After sales services People in Haier think
that company will not
render after sales
services.
Customer think that
warranty of 6 months
is not sufficient for
such huge investment.
Company should open
more customer service
centre and they have to
take feedback from
customer to improve.
They must provide
services at place so
customer get more
satisfaction.
8

Continuous improvement plan for business case
USE OF CONTINUOUS IMPROVEMENT PLAN AND ITS EFFECTIVENESS
Above discussed plan proves to be fruitful for Haier company. As company wants to
launch new television of large sized screen. This plan says that company has to come with new
and latest technology of promotion. This will help company to remove shortcomings and this
will improve profitability of organisation. Manager of Haier must take feedback from visitors
and they came to know about dislikes of customer. It is important that manager has to give more
emphasis on promotional events, through this they are able to contact to general people and with
this it is possible that company to know about change in plans and policies.
Company must emphasis on giving best after sales services. This will help company to
create faith in company. After sales services such as service centre, free servicing till one year,
etc. this will help manager to know what to do and at what time (Lenfle and Loch, 2010). There
must be requirement of proper feedback by customer and the areas of shortcomings must be
improved. This can be more effective if there is proper control over the activities of employee.
Manager must motivate employee to provide best services to customer.
STRATEGIES FOR EFFICIENT IMPLEMENTATION OF CONTINOUS
IMPROVEMENT PLAN
Continuous improvement is done by manger of Haier but there is equal involvement of
customer also. There must be regular feedback taken by manger to know perception of customer.
As these days environment is dynamic so demand of customer also varies (Mir and Pinnington,
2014). These improvement can be applied in organisation through following strategies- Good employee employer relationship: There must be good relation between employee
and employer. This will help company to know what customer need through employee
because there is customer representative who take reviews of customer. Proper communication channel: Haier must take care of communication in organisation.
There must be proper interacting channel so that employee know who is accountable to
whom. This will help to assign duty and responsibility. Priority to employees need: Management of Haier must take care of employee also with
customer because they are the source which help to know about customer need and
demand. If employee are satisfied then they work with full energy.
9