A Report on Operations Management Principles: Corus and Portakabin

This report delves into the application of operations management principles within two distinct UK-based companies: Corus, a steel manufacturing firm, and Portakabin, a modular construction innovator. The report begins by examining Corus, discussing its operational principles, including reality, success, competitor analysis, humility, and variance, alongside an analysis of how these principles address cost, quality, safety, and delivery requirements. The report then transitions to explore Portakabin's project life cycle. Furthermore, the report incorporates continuous improvement plans, emphasizing lean principles such as defining value, value stream mapping, creating flow, establishing pull, and striving for perfection, to enhance operational efficiency and cost-effectiveness for Corus. Overall, the report aims to provide a comprehensive understanding of how operations management strategies are implemented to improve productivity and achieve organizational goals in the manufacturing and construction sectors.

UNIT 4

INTRODUCTION
Operations management is termed as a process which is mainly undertaken for administer
and control activities and functions of business organisation as to create and develop products
and services in best effective manner (Al-Abrrow, Alnoor and Abbas, 2019). In simple terms
operations management is consider as a process in which conversion of raw material as well as
labour into finished products and services is done. Main purpose of this process is to effectively
increase efficiency of business operations. In this report first part covers discussion which is
made on Corus a steel making company operating their services in UK provinces while
headquartered in London. In addition with this, project include principle of operations
management along with continuous improvement plan. Lastly recommendation and lean
principles are also been discussed in this part. While it is considered in project second part, it is
based on Portakabin a leading modular innovator of UK. Company operates their services in
nearly 6 countries while having 1300 employees in their management structure. Project life cycle
along with its application is covered in this part.
TASK 1
P1: Operation management principles
Background -
Corus Group engage in the function of steel making and operate their activities and
functions while headquartered in provinces of United Kingdom, UK. Company mainly perform
their operations in UK and Netherlands. Organisation was duly created with the merger of
Koninklijke Hoogovens and British Steel plc in the year 1999. Main motive for which company
operate their functions is to effectively make reduction in gap in between Corus and among its
European Competitors as to acquire profitability at high rate. In addition with this organisation
conduct their functioning as to eliminate unnecessary activities as to develop products and
further conduct business functions in more effective way as to gain more competitive advantage
as compared to rivals.
Mentioned below there is differentiation in between operation management and operation
is being done:
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Operation Operations management
This consists of the fact that all such strategies
and schemes plan made by the higher hierarchy
director and member in the company. These
are very important decision which are very
important for future of the company. (Zijm and
et. al., 2019).
Operation management is an area of
management that is concerned with developing
and controlling different processes and
operations of an organisations and ensures
highest level of efficiency to maximize profit.
Operations mainly refer to different processes
and activities carried out for running an
organisations and include staffing processes,
marketing techniques, finance strategy,
different equipments and tools and also include
labour who are responsible for performing
different operations.
Operations management used for ensuring
effective performance of all operations of an
organisation to achieve the targets and
objective in beat possible way. This process is
responsibly for ensuring overall success and
growth of organisation.
Operations management principle
Operations management is a process used for ensuring proper planning, supervising,
organising and controlling all the operations and process of an organisations to achieve the
targets of maximum profitability and also improve efficiency. Their are certain principles of
operation management mainly used by an manufacturing firm to make their production process
more economical and effective through proper implementation of objectives, planning and
strategic processes. The operation management principal that are useful for Corus to achieve its
targets and objective are explained below:
Reality-
The correct solution to remove any issues or disputes which are affecting working
strategies of company is by keeping full focus and try to solve and rectify the issue rather than
just finding a substitute for it. root cause rather than to searching on techniques as no tools as
well as techniques can present universal solution but mainly depend on the manner in which it
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can be used in an effective manner as to solve current problem. Corus operate their business as to
effectively reduce cost of production as to earn more competitive advancements as compared to
its competitors. Thus with the help of this principle they can able to recognise main area
concerned as to further make necessary improvements.
Success-
Any organisation has a general focus on their target market as they are quick & first
source of generating income in company. Thus as per according to this principle organisation in
order to gain long term success are required to take care of customers interest as to satisfy
consumers with best. For this they are required to undertake formative decision and actions as to
ensure that customers are fully satisfied. Thus, it is essential for Corus to offer qualitative
products and services to customers as to ensure maximum success and loyalty from customers. It
is very important for organisation to create several plans and terms which will improve the
quality work of organisation. This has a direct effect on the target market customers and
increases their loyalty towards the brand.
Knowing your competition-
In order to gain more successful advantages in marketplace it is essential for organisation
to have all the necessary and related information regarding competitors. With the help of this
company can effectively able to evaluate their strength and weaknesses that further aid them to
formulate strategies. Thus, Corus can able to conduct timely research as to acquire relevant and
necessary information about competitors as to become more superior. It is known in basic
terminology of any market to be very aware of plans & schemes of the current competitor in the
business. The main contradiction in the body is that the factors which influence and critically
analyse the potential plans and raise an adjustment plan which is more better in nature and more
attractive towards target market.
Humility–
As per according to this principle, organisation are not required to invest their cost as
well as time on error and trial basis rather than this managers are required to acknowledge
limitations of organisation as resolve complex problems. With the help of this principle Corus
can effectively able to deal with unsuitable situation and acquire timely help from other in order
to make sure that there is continuous flow of operations in cost effective manner.
Variance–
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Principle of Variance depicts deviation in between expected level of performance and
actual performance. With the help of this principle Corus can effectively able to fill the gap
between current and desired productivity level. This will further aid them to keep control on their
production aspects and operate organisational functions in cost effective manner.
Analysis of operation management to meet requirement of organisation
In order to gain long term success it is essential for an organisation to maintain quality of
products and maintain organisation function efficiency in order to effectively ensue success for
long run. Mentioned below there are some main components of organisation requirement:
Cost-
The most cost cutting budget is for the findings of using raw materials into finished
products which will seek the utmost monetary income. It has been seen that Corus is being
engaged in the issues which is related to high production cost. As company is more focused
towards steel quality in order to gain more competitive advantages. This at the end does not
accomplish organisation mission which is to develop products in cost effective manner. In order
to overcome this, Corus is looking forward and planned to undertake variance principle in order
to have regular control and check on wasteful expenses.
Quality-
It is very important for every organisation to generate proper wordings and qualitative
work so that the products can never be questioned and the loyalty towards the brand can also
increase through good quality. It has been analysed that steel that has been offered by Corus is
near up-to good remark but not have that much superiority as compared to its competitors. In
addition with this, it has been evaluated that company undertake best quality of raw material in
the process of operations management which include high cost. Thus, company is required to
effectively maintain equal balance in between quality and cost as to remain profitability.
Safety –
Along with the quality of products organisation is also required to ensure that their
product does not impact of customers in a negative and hazardous way. As Corus engaged in the
operation of manufacturing steel that doesn't emit any form of harmful gaseous substances and
are not harmful for use. Thus, company is required to ensure that they provide safe and sound
working environment to customers while they conduct manufacturing process. Their have been
several incidents after which government has regulated several important regulatory acts and
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l;aws which are for the protection of general public violation of such is dangerous for the health
of peio-ple consuming the product and this can also affect the future of the company.
Delivery-
This process indicated the medium and delivery channel that has been undertaken by
manufacturers to offer their products to customers. Organisations are required to make sure that
products and services get timely delivered to end users. In context with Corus it has been
analysed that company is operating their delivery process with the assistance of reality principle
as to effectively determine late delivery root cause in order to implement corrective action as to
offer products on timely manner. Their have been generating of several new schemes win which
the companies have realised to cost cutting one has to generate a direct medium to target market
and kill most of the middle men due to which the product was considered either, wrong or extra
expensive in nature. Here one has to realise the need of their products and shall provide them in
the commodity
TASK 2
P2: Continuous Improvement Plan
Continuous improvement plan involve formative set of activities and planning which is
being performed by an organisation as to make ongoing improvement in their products and
services with constant monitoring of actions and operations (Naim and et. al., 2019). Continuous
improvement main aim is to effectively strengthen product quality in order to satisfy customers
with best and further increase organisation productivity and profitability.
Lean Principal-
Lean principle is a tool which is used to provide qualitative and valuable goods, products
and services to consumer. With the help of this organisation can effectively able to eliminate
wasteful expenses and activities. This is the best way to cut costing and provide reasonable
benefits to company also it is ozone-friendly in nature which brings a very good impact on the
company image.
Defining Value-
This principle aid Corus to identify needs and demands of customers and to ensure that
goods and services that are being provided to customers are of as per according to their
preference.
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Value stream–
With the help of this principle they can effectively able to reduce waste of resources and
raw material. With the help of this Corus can effectively able to accomplish targets in cost
effective manner. This value stream is foe betterment in nature of products plus such things also
save a lot of material and money of company.
Create flow –
This process ensure that all the related activities and functions are facilitating in smooth
and effective manner. In addition with this, with the help of monitoring and evaluation
organisation can ensure uninterrupted flow of activities that further aid Corus to increase
productivity. Such activities are negative & positive in response to company and they are hardly
effecting any nature of the company.
Establish pull –
This process is undertaken to ensure that organisation engage in the functions of timely delivery
of services and products. With the help of this Corus can effectively able to solve their issue
relating to late delivery of their products.
Perfection –
This principle effectively aid an organisation to reach perfection. With the help of this Corus
Continuous improvement plan for Corus company
It has been analysed that Corus engaged in the issue of high cost of production. For this
they are required to frame continuous improvement plan as to eliminate unnecessary activities in
order to further make improvement in their quality of products and process as to gain more
competitive advancements.
Particulars Current performance
level
Proposed Methodology for Improvement
Cost Its been recorded and
noted that the company
is unable to produce and
sell qualitative product
which is effecting its
image on general
Corus is required to undertake use of variance
principle as to effectively monitor and control
their actual cost of production as to determine the
variance in between desired and actual
performance. For this corrective measure can be
undertaken as to further make an reduction in
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monetary terms. unnecessary expenses.
Quality Corus is undertaking
Success Principle in
order to provide
qualitative products to
their customers in order
to effectively ensure
high growth, it rather
lead towards increase in
their cost of products.
In order to keep balance between quality and cost
of products it is important for Corus to know the
principle of their competition as to further offer
superior and qualitative products to customer. In
addition with this, they are also required to focus
that cost of product does not exceed with cost of
competitors in order to gain more competitive
advantage.
Delivery Corus is taking use of
Reality Principle in
order to make sure that
they deliver products in
timely manner.
Company is facing
complains regarding to
late delivery.
Corus can take use of Humility principal as to
make sure that they deliver product in timely
manner in order to further reduce errors and trial
scope. With the help of this they can provide
instant solution to issues and problems with the
help from distributions and retailers.
Recommendation
It has been recommended to Corus to take advantage of variance principle in order to
monitor and control their wasteful activities and expenses in best effective manner as to further
reduce cost of production. In addition with this, company is being recommended to know their
competitors principle as in order to aquire relevant and necessary information about them. With
the help of this they can later develop strategies as to offer qualitative steel in cost effective
manner to their customers and further gain more competitive advancements.
TASK 3
P3) Stages of PLC
Background – Portakabin operate their functions as one of the leading modular building
innovator. Company conduct operations in UK from more than 50 years and currently conduct
their activities in 6 countries with 1300 employees (A Portakabin case study. 2019). Portakabin
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launched Yorkon Building System(YBS) a new product which is mainly based on latest modular
building technology.
Project Life Cycle
It is a process which is implemented by an organisation to effectively execute project.
Portakabin recently launched their new product while undertaking use of diverse stage of project
life cycle:
Project Initiation:
Portakabin launched new Yorkon Building System(YBS) as to effectively increase ability
to fit any form of external wall without any column and further deliver 50% faster manufacturing
of building.
Objectives:
Mentioned below there are some certain objectives along with importance of launch of new
product:
 To make an increase in organisation productivity as with the help of this they can able to
reduce programme time by 50%.
 To effectively increase profitability by decreasing wastage of material by 90%.
 To lower the vehicle movements in order to reduce carbon footprint.
 To use latest technology in order to gain more competitive advantages as compared to its
competitors.
Strategies
Portakabin undertake use of plans and strategies in order to launch new product
(Goodman, L., 2019). In addition with this WBS and Gannt chart is also being uses as to
effectively allot work to team members. It is very important for any company to allot and
describe correct work management so that the flow of work does not stop and increases in the
same number of members and same size or scope of company.
Project planning
It include detailed description of project that include all activities and stages as to
effectively complete a project in exact time. Portakabin made planning to launch their new
product.
Cost Overall cost of new project was £ 1800000 that mainly covers
manufacturing cost of system, technology and other form of
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expenses.
Communication Portakabin undertake use of best effective form of communication
channel that include oral as well as written form. With the help of
this they can lower down the problems related to conflict among
employees.
Quality Portakabin framed new technique for fast construction. Thus,
company is required to have regular check in effectiveness and
quality of their product before launch. For this they can undertake
use of TQM technique.
Scope Portakabin product scope is wide with the help of which
construction can be done in faster way that further lead towards
making an increase in company productivity.
Target market Portakabin operate their functions as business to business. Thus,
they target other manufacturing organisations for their new product
for which there is a need of advanced system in order to construct
building in fast way.
Portakabin is taking use of WBS and Gantt chart as to allocate responsibilities to
employees and further execute operations in best effective manner. This chart has provided
several aspects on which one can be done and this basically eliminates the cost and
misunderstandings in company. Their is a certain level of facts that main exits and providing
wrongly rules notion one has to guide and provide benefits from the disciplined ways of giving
instructions and giving responsibilities.
Gantt Chart: It is termed as horizontal bar chart with the help of which company can effectively
able to control their production process. With the help of this Portakabin can facilitate activities
of project in best effective manner.
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Work Breakdown Structure-
It is a technique with the help of which Portakabin can effectively able to break down
activities of project in small parts. This will aid company to reduce complexity of task and
accomplish it it in desirable timely manner.
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Project execution
It is one of the most crucial stage with the help of which organisation can effectively able
to conduct their operations (Crispim, Silva and Rego, 2019). With the help of this stage company
can effectively able to control and monitor all essential activities while ensuring quality.
Portakabin is taking advantage of TQM tool in order to ensure project life cycle and product
quality. The correct project execution leads to beneficial environment and monetary expenses are
reduced and increase in benefits of market.
TQM (Total Quality Management)
It is an approach with the help of which organisation can effectively able maintain
improvement in their product and service quality. Portakabin take use of TQM approach as to
make an improvement in their functions, product and services quality.
Project Closure
In this stage in which performance are analysed in order to achieve desirable targets. In
this all stages are analysed that further depicts it failure or success. Later this report are sent to
stakeholders and directors. Portakabin develop new system turns out to be successful as it
effectively increase organisation product quality along with reducing waste. Here, if the
company works in correct management and proper following of products cone can achieve the
target decided and avail all monetary benefits the company seeks to achieve in the market.
Task 4
P4) Review and critique at effectiveness of PLC with the help of waterfall model
It is important to critically review efficiency and effectiveness of Project life cycle as
success of project wholly depend on accomplishment of all stages of PLC in best effective
manner. Portakabin is undertaking waterfall model as to monitor and review PLC effectiveness
which is being defined below:
Requirement –
Portakabin evaluated that there is need of new system in order to accomplish the
objective of new Yorkon Building System (Portakabin . 2019).
Analysis –
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Portakabin effectively evaluates that there is need of new system and complete system
in order to develop techniques as well as models which is mainly required for proper execution
of application.
Designing and coding –
Selection of advanced and effective technology and use of R&D department as to
develop advanced technology is included in this factor. Portakabin effectively undertakes all
these activities as further established new system in order to enhance their productivity and
profitability. The company reaches a level above by using correct and better technologies which
in the end helps to give proper return backs with less cost cutting and increased levels of profits.
Testing and operations –
Portakabin is required to undertake test of their new system before implementing them
on practiacal manner. With the help of these they can effectively able to reduce failure changes.
Usage of different theories and concepts for small-scale and large-scale project
Concept Small – scale project Large scale project
TQM Small-scale project have
limited task that make them
less complex and easy to
perform. Thus application of
TQM is not required as it
further lead increase in project
cost.
Large scale projects are mainly
complex in nature. Thus, in
this it is essential to apply
TQM in order to ensure that
functions in all stages are
performed in qualitative
manner and every individual
performance also get improved
while project process.
CONCLUSION
As per the above mentioned report it has been concluded that, operations management
acts as an most crucial factor for an organisation with the help of which they can effectively able
to accomplish their goals and objectives. In this organisation is required to concerned towards
principles like humility, variance etc. as to reduce cost of production. In this report continuous
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improvement plan is also being defined that aid organisation to improve their performance and
gain more competitive advantages as compared to their competitors. Further by increasing
efficiency of project life cycle and take use of waterfall model organisation can effectively able
to increase their productivity and profitability.
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