Operation and Project Management Report: Tyrrells and Lucas Case Study

This report delves into the realms of operation and project management, employing Tyrrells, a potato chips manufacturing company, and Lucas Industries, a manufacturing firm in the motor industry, as case studies. The report commences by introducing Tyrrells, outlining its operational strategies and principles, including supply chain and logistics. It critically reviews the implementation of operational management principles within Tyrrells, assessing their effectiveness and proposing a continuous improvement plan. The report then transitions to a case study of Lucas Industries, examining a project designed to address staff absenteeism and local congestion. The analysis incorporates lean principles, continuous improvement methodologies, and project life cycle considerations to evaluate the organizations' operational efficiency and recommend enhancements. The report also explores how to manage logistics, cost, quality and delivery, with a focus on automation, Just-In-Time approach, and transportation models to improve the overall performance of the companies.

OPERATION AND
PROJECT
MANAGEMENT

Table of Contents

INTRODUCTION
Operation management is depicted as administration of business activities and practices
to develop maximum efficiency which is possible in context with organisation. It is associated
with transformation of labour and material into finished goods in optimal manner. Project
management is referred as procedure of executing, initiating, closing and controlling the work
activities of a team so that expected success can be gained (Artto, Ahola and Vartiainen, 2016).
This assignment is prepared in context with Tyrrells which is a manufacturing company offering
potato crisps to their customer base. This company came into existence in 2002 and expanded
itself quickly in European and American market. This report is going to cover about
implementations of principles associated with operation management and formulation of
continuous improvement plan accordance with review & critique of operational management
principles. PLC is also applied along with necessary documentations to accomplish project and at
last effectiveness of project life cycle is measured by appropriate theories and models.
PART 1
Introduction to the selected organisation
Tyrrells is a potato chips manufacturing company which perform their business
operations under parent company KP snacks. This organisation was established in 2002 and
headquartered in Leominster, Herefordshire. After struggling for some time, organisation was
able to expand their business activities in entire Europe and US. Company is popular in offering
high quality crisps both in domestic and international market. At present, company is enhancing
their presence in Australian market by opening up manufacturing units there. Main products
which are offered by company is popcorn, tortilla and crisps including potato & other vegetables
(Binder, 2016).
Explanation for operation versus operational management
Operation is referred as a procedure in which different processes, equipments and people
come together so that appropriate value can be added to the materials and high quality products
can be produced. They will allow Tyrrells to achieve their business objectives in a proper
manner. Operations management is stated as a management of entire manufacturing and
production system which results in conversion of energy, labour, raw material into end products.
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Operations management will help the company in efficient production of goods to earn high
profits.
Critique and review by implementing principles for operation management in case of
organisation
There are several operational management principles that are important to be critically
reviewed so that appropriate principles can be implemented in context with organisation. In case
of Tyrrells, supply chain and logistics are important operations for company. Implementing
operational management principles effectively will benefit company in increasing its
productivity. Implementation of operation management principle in context with Tyrrells is
mentioned beneath: Variance: This operation management's principle is involved in majorly every process
which is adopted by business firm. In case of reducing cost, this principle is required to
measured and controlled in a timely manner. In supply chain management, there will be
different measures like cost decreasing activities which assures effectiveness of this
principle. In case of Tyrrells, firm can manage their logistics which results in increasing
expenses. This is because in order to prepare logistics, new employees will be needed due
to which expense of company while training and recruiting them will increase. Hence,
this principle is not appropriate for respective company (Gilbert and et. al., 2015). Organisation: In accordance with this principle, to advance profit margins and
efficiency company is required to organise operations in a proper manner. To manage
the logistics & supply chain of company, Tyrrells can use innovative manufacturing
machines, hybrid trucks for distribution purpose etc. These aspects are not easy to
manage due to finance complexities due to which it is not beneficial for Tyrrells to
implement this operational principle. Change: This operation management principle is required by company to assure
appropriate supply chain and logistics management. Also, due to new theories, timely
delivery of products can be assured (Harrison and Lock, 2017). In this context, Tyrrells
can partnership with big retailers like Tesco so that manufacturing of products can be
ensured properly. But implementing this principle will need high investment which is not
in favour of company.
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 Fundamentals: In accordance with this principle, there are some fundamentals and
norms which must be adhered by company so that best standards within organisation can
be gained in an efficient manner. Tyrrells uses green clause as their fundamental
procedure which assures increased sustainability. Hence, implementing this principle is
beneficial for the company.
Define the extent by which operation management of firm accomplishes their requirements
It is very important for Tyrrells to properly analyse before implementing operation
management principles. If these principles will not meet the requirements then it is not beneficial
for concerned company to implement them. Analysis in context with these principles is carried
out below:
 At first, Tyrrells is needed to decrease cost of their business activities and operations. In
this context, variance principle is used by company so that their product line can be
enhanced. But this principle is not going to assist firm in reducing their costs as this
principle is capable to reduce operational cost not to enhance the product line of company
in cost efficient manner. Hence, principle of variance is not is not capable to fulfil the
necessitates of company.
 Another need of company is to have consistency in their operations. In case of supply
chain managing and logistics, there are different activities which create inconsistency for
company (Heldman, 2018). Due to this, it can be stated that each business activity has
some complexity and set of needs which can acts as a barrier in properly implementing
organisation principle of operational management.
 Other need of company is to assure that only desired techniques will be implemented so
that supply chain system can be managed in efficient manner. But, firm has adopted
principle of change as their main aspect to manage logistics. But this principle, does not
work for distribution procedure. Hence, this principal paralytically meets the
requirements of company.
 Additionally, major need of concerned company i.e. Tyrrells is safety and in this context
company applies the principle of fundamentals. In this context, for every employee safety
standards are prepared so that their individual welfare and logistics of company can be
managed properly. This this principle is capable to meet the requirements of company in
a considerable manner (Kerzner, 2019).
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Define continuous improvement aspect in terms of philosophy and mention about lean principles
It is important for Tyrrells to formulate a continuous improvement planning due to that
different kind of procedures related with supply chain can be improved. Continuous
improvement plan is referred as the detailed outline of all activities which are required to attain
maximum output. It is a crucial method due to which consistency can be attained by company
while performing their work. To attain this aspect, lean methodology can be used. This
operational methodology is related with performing operations in a manner so that wastage can
be minimised. This will benefits Tyrrells in increasing their overall productivity. Lean
methodology posses five principle i.e. value stream, value, perfection, flow and pull which are
mentioned below:
Define the value In this principle, company makes value of their services &
products so that this can be acknowledged by customers.
Tyrrells can use this principle to attract large number of
customers for their products.
Mapping value stream With the help of this principle, value stream of different
products will be mapped properly so that various processes of
company such as designing, manufacturing and production
must performed in systematic way. This will enhance overall
productivity of company.
Creating flow It is concerned with monitoring and checking of the
manufacturing process by reducing problems.
Establishing a pull This principle is based up on the JIT approach. This principle
assists in completing tasks on time. This will help Tyrrells in
achieving their goals in timely manner.
Pursuing perfection This principle is concerned with using advanced techniques
so that only sustainable & qualitative products can be
manufactured by company. This will help the company in
attaining high revenues and profits.
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All of this lean principles are concerned with minimisation of expenses and wastage. But
it is very important for Tyrrells to formulate a continuous improvement plan so that productivity
in supply chain management and logistics can be improved considerably (Kundu and et. al.,
2015).
Formulate continuous improvement plan after reviewing principles of operational management
With the help of continuous improvement plan, a business organisation can improve their
working and manufacturing of products. Due to which, employees will be able to perform their
work in a more desired manner. This will improve productivity level of company which
achieving organisational goals will became easy task. Continuous improvement plan after
reviewing different principles of operation management is prepared below:
BASIS CURRENTLY USED
METHODOLOGIES
PROPOSED
METHODOLOGIES FOR
USE
COST
Principle of variance is used
by company to enhance their
product line with reduced cost
rather than using it to decrease
operational cost.
Tyrrells can use variance to
reduce their operational cost
and Automation as a technique
to manage logistics so that
labour cost can be decreased
(Slack and Brandon-Jones,
2018).
QUALITY
To manage quality, principle
of organisation was
implemented under which
hybrid vehicles and
innovative machines is used
which was expensive to
manage (Lam and Lai, 2015).
To assure quality, it is vital for
Tyrrells to organise every
operation of supply chain
management in a proper
manner. In this context,
company can use Just-In-Time
approach so that quality of
logistics can be maintained.
DELIVERY Change principle was not Implementing change in
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implemented in a proper way
also partnership was made
with other big retailers for
efficiency production and
delivery.
business firm is important and
rather than having partnership
with some other retailers,
various transportation models
like train and airways can be
used to distribute products.
Use continuous improvement principle, justify recommendations to improve organisational
functions
In accordance with the operation management & its principles and continuous
improvement plan in Tyrrells, there are different recommendations which can be given to
company. These recommendations are listed below:
 Company can use Automation and Artificial intelligence so that quality of different
products can be maintained in effective way.
 Just-In-Time inventory will assure firm to use of only those materials and resources
which are required by customers as per their demands. Also, it will assist firm in
decreasing their costs which is because of storing of stocks in warehouses and stores
(Lientz and Rea, 2016).
PART 2
Overview of case study mentioned in brief
Lucas Industries is a large scale manufacturing company which is operating in motor
industry and auto-mobile sector. It is a UK based company which is situated in Birmingham,
West Midlands and employing around 92,000 workers. Company is initiating a project in
Midlands where they have hired 1250 employees on site for work purpose. Employees working
there perform different roles which include factory workers and office staff. At present, no
catering service is offered to employees due to which employees moves to local area during
lunch breaks. This has created the issue of congestion in locality and staff absenteeism. In this
context, manager in Lucas Industries is asked to analyse some business objectives in the form of
project so that issues which are faced can be resolved properly. In this context, manager of
company will work so that movement of workers can be reduced in lunch break and assisting
staff to live a healthy lifestyle (Maylor, Turner and Murray-Webster, 2015).
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Project- The project which is initiated by Lucas industries is to arrange canteen within
workplace so that employees do not have to go in local area during lunch break. Also, to provide
healthy lifestyle to workers company is going to offer them flexible working hours.
Description regarding PLC and discussion of each stage
A project life cycle is depicted as a combination of four different steps which must be
followed by the manager of a company so objectives of project can be achieved desirably. It
offers a framework that assists in performing activities of a project in efficient way. In this
context, Lucas industries is going to initiate a project so that their objectives can be acquired
properly. In this context, there are different stages of project life cycle which are discussed
below:
 Project initiation: This is first level in project life cycle where the objectives in relation
with project are stated and different aspects related with project are built. In this phase,
several problems and issues are acknowledged (Nicholas and Steyn, 2017). It is a basic
step of PLC where objectives of Lucas industries i.e. to improve lifestyle of employees
along with reducing the movement of employees in lunch time to local areas is identified
so that these issues can be resolved properly.
 Project planning: This is the second step in PLC where different planning regrading
project are done in context with resources, cost and time. Hence, it is essential for
employees to acknowledge that this stage is a continuous process which will take place
till execution phase. If this stage is not included in PLC, then it is not possible to manage
project in a proper manner. To achieve project's objective, project manager in Lucas
industries is required to prepare an effective plan (Verzuh, 2015).
 Project execution: Under this stage, project plan is implemented and its progress is
monitored so that desired results can be gained in timely manner. It is an essential stage
for company because all the plans which were prepared earlier to reduce stage
absenteeism and movement in local area by developing canteen will be executed in this
phase. To execute this plan, company will be required to adopt different strategies like
identifying the preference of employees in food, arranging investment etc.
 Project closure: This is the final stage of project life cycle in which project and its
activities will be closed when objectives will be achieved properly (Perry and et. al.,
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2018). Hence, in context with Lucas industries, this project will be closed when canteen
will be provided to workers so that they can eat properly during lunch break.
After apply each stage of PLC for project involve business case, cost benefit analysis, project
plan and WBS
Business case
Business case is a formal document which is prepared by manager of a company so that
other individuals associated with company can be acknowledged about their projects, objectives,
values and strategies properly. In context with Lucas industries, business case is mentioned
below:
Company overview Lucas industries is a Birmingham based manufacturing industry
operating in aerospace and Auto-mobile sector. Company has started
business operations in Midlands by employing both staff employees and
factory workers.
Vision and mission Mission and vision of firm is to became market leader in automotive and
aerospace sector, especially in Midlands.
Objective Main objective of organisation is to improve life style of employees by
offering flexible working hours and reducing their movement during
lunch break so that local area do not face any congestion.
Strategy Company is going to introduce a canteen within workplace premises so
that business objectives can be achieved.
Follow up In this stage, all the previous performed activities are analysed to
acknowledge if all the operations which were needed by company are
implemented effectively or not.
Project plan
Cost Estimated cost needed for this project is £15,000- £ 20,000.
Communication Without communication among manager and employees, it is not possible
for the project manager of Lucas industries to perform project activities in
a proper manner. In this context, project manager can interact with
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employees through SMA, e-mails, face to face conversations, telephone
calls etc.
Scope To achieve desired objectives, firm is needed to acknowledge employees
about canteen and the food which will be available there. This will
resolve the problem of congestion in local area and reduce staff
absenteeism. Due to this, scope of project is high.
Cost benefit analysis-
Cost benefit analysis is an aspect in which organisations acknowledge the profit margins
by adding profit amount and then deducting it from total cost. Because of this, organisation can
evaluate profits from different operations and activities. In case of Lucas industries, total revenue
earn after introduction of canteen can be reduced from money spent to build it. By this, benefits
is cost can be analysed (Schönsleben, 2016).
Work break down structure:
WBS breaks down the projects of activities in small manageable sections due to which
employees can accomplish them as per their priority time. In this context, Lucas industries can
bifurcate their project activities as mentioned below so that their objectives can be attained
properly.
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Critique and review effectiveness of PLC in project application by using appropriate concepts
and models
With the help of waterfall model, effectiveness of PLC for the project performed by
Lucas industry is mentioned below:
 Requirement: Here, all the required resources are analysed by manager so that project
activities can be performed desirably. In this stage, company prepares objectives and
strategies for project like Lucas industry has formulated i.e. to create a canteen in
working premises. In this context, six sigma can be used by company to improve
efficiency of project (Schwalbe, 2015).
 Design: In this stage, inventory management principles will be adopted so that wastage
can be minimised. Here, different activities are designed so that project plan can be
formulated. It will help the concerned company in attaining their goals in a proper way.
 Development: In this stage, all the activities of project are executed. Company can adopt
TQM so that during execution of operation, quality can be maintained. Also, leader of
company can adopt, democratic leadership style so that employees can share their
opinions nicely.
 Testing and maintenance: This is last stage in which overall details are analysed and
checked. Here, required modification will take place so that project can be accomplished
with full efficiency.
CONCLUSION
From above mentioned report, it has been concluded that in order to attain high
productivity and efficiency, each organisation is required to manage operations and projects in an
appropriate manner. In this context, there are different principles of operation management
which can be implemented in a manufacturing procedures of company. With the help of
continuous development plan, business operations of a company can be further improved. By
using project life cycle, each project can be managed will full efficiency. Different stages of
project cycle ensures the effectiveness of operations which are performed by company to attain
their business objectives.
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