Report: Operational Management Analysis of Next PLC Business

This report provides a comprehensive analysis of Next PLC's operations management, focusing on the principles and practices used by the UK-based retailer. The report begins with an introduction to operations management and a brief overview of Next PLC's business model, including its retail operations and online presence. It then delves into the core principles of operations management, reviewing and critiquing their implementation within the company, particularly in the context of its expansion into the Monaco market. The analysis covers key concepts such as reality, organization, fundamentals, accountability, variance, managed passion, Taylor's scientific management, mass customization, lean production, flexible specialization, and agile manufacturing. The report also examines the extent to which Next PLC's operations management meets requirements, discussing the application of Six Sigma and lean principles. Furthermore, it explores continuous improvement as a philosophy, detailing lean principles and presenting a continuous improvement plan for Next PLC. The report concludes with an examination of the project life cycle stages, providing supporting documents to validate the respective project's validity.

Operations & Project
Management

INTRODUCTION
OM focuses carefully in managing the processes and procedures to manufacture products
and services in proper way. Project management deals with creation of product, development and
distribution to accumulate desirable outcomes. Respective assignment rely on Next Plc is a
united Kingdom based retailer offered clothing, footwear and accessories so on. In its retail
includes a chain of 500 stores and they operate online and catalogue shopping business with
approximately four million active consumers. This report covers the operational management
principles by critically analyse and review it. Further it elaborates continuous improvement plan
after evaluate it in critical manner. At last it examines the stages of project life cycle by using
various kinds of supporting documents that helps to verify validity of the respective project.
PART 1
1. About Next PLC.
Next Plc is a UK based retailer which deals in various segments such as wearable,
footgear and home appliances. They have large product portfolio with chain of 500 stores in UK
such as online and catalogue shopping. They have international websites which serves
approximately in 70 nations and their international retail with 200 franchised stores. To gain
sustainability organisation focused on brand expansion by using franchising and operates in
almost 20 international markets.
2. Explanation of operation vs operations management
Operations:
Operations management is an important administration of a business to create or build
highest level of efficiency practices in an organisation (Chawla and et.al ., 2018). It is concerned
with converting raw material into finished products and services as to maximise the profit of an
organisation. It proved beneficial for delivering one of best products as per the consumer needs
and wants in which manufacturer involved in buying raw material and convert it into finished
products.
Operation management:
Operation management which consisted the planning, organising and supervising
activities or processes to build necessary improvements for gaining higher profitability (Greene
and Stellman, 2018). The coordination and adjustment in the day to day operations assist

organisation to build effective companies strategic goals and objectives that helps in deep
analysis and measurement of their current as well as emerging processes. The first and foremost
importance of operation management in manufacturing, maintenance of production and
assistance of software's and many more.
Difference in operation and operation management:
Operation Operation management
The principle of operation based on the
decisions and actions which are taken with the
help of participants or deliverables which
directly affect on the production, distribution
and giving services.
On the operation management that elaborate
the functions of an organisation such as
planning, organising and leading by controlling
various works and activities.
It helps in delivering one of best products by
converting raw materials into finished products
and services
On other hand operation management helps to
handling all activities and actions related with
day to day actions.
3. Review and critique of the implementation of operations management principles.
Case study: In context of Next Plc aimed to expand their business activities into the
market of Monaco to enlarge business opportunities. By conducting research and development
they evaluate the emerging needs and wants of consumers in better manner.
Randall Schaeffer who is an experienced manufacturing and operation management
professional, presented a list of principles of operation management that are as follows:
Reality:
Principle of OM states that management have to centring on the problem rather than the
proficiency, because no tool or technique is self sufficient in solving the universal solution.
Organisation:
All aspects related to the production of goods and services organized into a coherent as
an whole (Heldman, 2018.). If one thing changes other things automatically will change in
unexpected manner. In context of Next Plc while aimed to operate in the market of Monaco they
have to organized each and every attribute in proper manner.

Fundamentals:
Strict adherence of the fundamentals is one of effective way of production by maintaining
the inventory records, BOMs and various systems are the disciplines by which organisation can
gain 80% of its success (Heldman, 2018. ). In context of respective organisation they uses
various kinds of tools to build level of accuracy in their works and procedures.
Accountability:
In context of Next Plc employees not put their efforts for which they are not accountable,
by giving rewards and appreciation they can bring great results. They by providing respective
rewards enhance motivation level of employees to accept changes in optimistic way.
Variance:
Variances inbuilt in each and every step of production at the time of expand in market of
Monaco respective organisation with goal of reduce cost measured and controlled variances.
Managed passion:
In context of Next Plc while aimed to launch products and services into the marketplace
of Monaco they majorly pay attention on their employees, their level of passion for their works
and job. They by providing rewards and appreciation can be able to desirable outcomes.
Taylor's theory of scientific management:
Respective theory of scientific management states that there are only one way to
perform some things or duties. With the help of management by objectives, continuous
improvement plan and various procedures for effective business activities and re
engineering helps to gain potential outcomes. In respective organisation individual put one
of their best efforts so that desirable objectives should be achieved.
Mass customisation:
it is one of most important manufacturing tool or techniques that helps to combine
or merge flexibility and personalization of custom products and services by using lower or
less units. In context of Next Plc they focus on giving customisation effect to products and
services in order to gain optimum outputs.
Lean production:
Lean production which is systematic way or method to produce products and
services that helps to reduce the wastage while producing products and services in order to

remain always competitive by saving cost. In context of Next Plc they use lean production
helps to save cost to gain proficiency.
Flexible specialisation:
Flexible specialisation is an form of industrial organisation in which a organisation expert
or specialise in certain task or product but change the respective practice on the short notice of
producing different one. With the help of flexibility they make it viable by building respective
product into small batches so that they pay attention on each and every aspect. In context of Next
Plc they provide proper knowledge and information to their employees regarding the change
management so that they can put one of their best efforts for adopting changes.
Agile manufacturing:
Agile manufacturing is an important term used by an organisation with the help of
various processes, tools and techniques which enables to organisation to respond quickly at time
of changes occurs within the organisation. In context of Next plc by using respective method
they save cost and time by managing and coordinating each and every aspect in proper manner.
4. Analyse extent to which the operations management of the organization meets requirements.
Application of OM is very much crucial for an structure to accord each and every activity
in proper manner (Kasemsap, 2018). In context of Next Plc they aimed to launch their existing
products and services into the new marked that is Monaco in which OM helps to succeed action
that is major portion of production of goods and services. By controlling operational process,
planning control and performance improvement are major role played by OM. The indirect
responsibilities are communicating with managers in their functional areas in the organisation.
Six sigma:
Six sigma is an data driven approach and continuous improvement methodology helps to
eliminate defects from the product or services. It helps to reduce cost and time while
manufacture products and services. Respective methodology developed by the Motorola for
quality management. In context of Next Plc for saving cost and time they use six sigma approach
to remain always competitive in marketplace.
Lean principles:
Lean principles which is an important kind of framework for creating or building an
effective organisation. It helps to manager to eliminate the inefficiency by producing products

and services in better manner. In context of Next Plc by using lean principles saves cost and time
to remain always competitive in the marketplace.
With the help of both the crucial tools of quality improvement of products and services as they
save time and cost to provide one of best products and services to the ultimate consumer base. So
it can be conclude that they proved beneficial for organisation to achieve operation management
and its efficiency level.
5. Discuss continuous improvement as a philosophy and describe the Lean principles.
Continuous improvement or Kaizen is one of important method for identifying
opportunities for enhance productivity and reducing wastage from products and services. It is
used by thousands of companies in all over the world for identification of opportunities by
combining various kinds of ideologies to gain potential outcomes. In context of Next Plc they
apply it by finding out major opportunities in order to identify gaps to waste minimization and
enhance productivity while producing products and services to remain always competitive in the
marketplace.
Lean is an important tool to greatly improve manufacturing efficiency and applied in the
business or production process. In context of Next Plc by applying respective principle they can
be able to save cost and resources for obtaining best products and services. Here are the
principles of lean to improve efficiency level that are as follows:
Identify value:
Value always defined as an customer's needs and wants for a particular products and
services (Kerzner, 2018.). In context of Next Plc aimed to launch existing products into market
of Monaco by setting each and every aspect such as timeline and manufacturing process, price
and other aspects too they direct to organisation towards achieving goals.
Map the value stream:
Once the determining the value of products the next step is value stream by taking all
important steps to converted raw material into finished products for ultimate consumer. In
context of respective firm they design whole process consisted designing, production,
procurement and HR, customer services.
Create flow:
The whole process focus on waste minimization and after the waste product has been
separate from value stream, organisation make sure that remaining steps run smoothly without

any kind of disturbance or bottlenecks. By breaking down the whole process into small steps by
designating roles and responsibilities to each and every personnel.
Establish Pull:
By improving the whole flow of products and services into the marketplace which makes
easier to deliver right kind of products in right time ( Kerzner, 2019.). In context of Next Plc by
following the whole process and minimization of waste the consumer now ready to pull product
as they required.
Seek perfection:
In the last but most important step which helps to making lean thinking and improvement
in process as a corporate culture. In context of Next Plc they continue make practices to take
improvement in their products and services to remain always competitive in the marketplace.
6. Continuous improvement plan on review and critique of operations management principles.
Continuous improvement plan is an chain of activities or actions planned to bring gradual
and ongoing changes in products, services or processes by constant review, measurement and
action (Lee, 2018.). It is advisable in context of Next Plc to imply respective practice to improve
the quality by reducing wastages. Here are the continuous improvement plan while expanding in
market of Monaco.
Enterprise Resource Planning systems (ERP):
Respective system is an kind of modular software system designed and developed to
merge or integrate the major areas of functions of an organisation to process into a unified
system. The major attribute of it focus on the major areas of an organisation which requires
improvement such as finance, accounting and material management and many more. In context
of Next Plc they find out major gaps in their organisation by evaluating each and every aspect in
proper manner so that the can perform well. It is one of most important tool in context of
organisation to improve in their overall performance by finding out opportunities and gaps n
performing well for gaining desirable outcomes.
Supply Chain Management (SCM):
SCM is an broad range of activities related to the planning, controlling and execution of
product's flow by acquiring new chain of products from raw material and production up to
distribution of final products and services to ultimate consumer base. It proved helpful to acquire
new efficiencies, to gain higher profit by reducing cost by increasing collaboration. In context of

Next Plc by using SCM they select one of best way or chain to supply products and services to
the ultimate consumers by enlarge business opportunities in positive manner.
Plan Do Check Action
Conduct Market
Analysis
Before expanding into
the new market
organisation have to
conduct the through
research and
development to
acquire important
knowledge and
information .
With the help of expert
team respective
organisation can
obtain necessary
knowledge and
information in taking
important decisions.
To apply in the whole
market, management
previously have to
launch it at small level
.
With the help of
accountability
principle organisation
can be able to hand out
major roles and
responsibilities to each
and every individual in
proper manner so that
they can contribute
their best.
After Sales Services After sale services is
very much important
for an organisation to
provide delighted
experiences to the
consumers.
For that organisation
have to conduct proper
research to
acknowledge the areas
of major
improvements. They
have to take proper
feedbacks from
consumers to get
optimum outcomes.
To get important kinds
of outcomes for
providing delighted
experiences to
consumers
organisation use
managed passion in
which they coordinate
activities of
employees.
7. Continuous improvement principles and recommendations to improve the operations function.
To improve the operation management principles organisation firstly have to focus on he
areas of major improvements so that they can gain sustainability in the marketplace (Perry and
et.al ., 2018,). In context of Next Plc while aimed to launch new products and services into

marketplace by elaborating each and every process in proper manner. In order to they focus on
waste reduction and improvement in quality to get optimum kinds of output.
The another major area for improvement that they have to find out tools and techniques
that helps to reduce wastage by saving time and resources to remain always competitive in the
marketplace. With the help of Kaizen, Total quality management organisation can deliberate to
plan and control each and every aspect in proper manner to gain desirable outcomes.
PART B
Provide a project report on the Project Life Cycle (PLC) to the project of developing a new
product.
Business case is one of the important aspect for a business developed during early stage
of a project by outlining major attributes such as why, what and how, who to verify worthiness
of a project (Pheng and Meng, 2018. ). In respective tool major aspects included that are as
follows:
Case study:
respective section of report based on the sunshine drinks as conducting research in order
to develop and launch in the market. The organisation proficient to market and sell fruits with
good market reputation that helps to enlarge business opportunities.
Executive summary:
for an organization to remain always competitive in the marketplace have to expand their
products and services into other areas. In context of Sunshine drinks they aimed to expand in
sector of filtered juices by including variety of energy drinks with natural spring water as it is
very much demanded in market. For that they have to conduct the through research and
development to enter successfully in marketplace.
Challenge or goal:
The major challenge in front of respective organization that there are huge competition in
the market and production of healthy drinks takes too much cost.
Solution:
To solve respective problem they apply various kinds of tools and practices such as Lean
principles and TQM to get optimum outcomes.
Cost:

To complete the whole project the total cost is £150 that are fetched from different
sources.
Benefits:
The major benefits in front of respective organization they can complete the whole chain
of products as spring drinks are very demanding in market. So it proved beneficial for
organization to enlarge business opportunities.
Execution time:
To complete the whole project it takes almost a year.
Importance of new product:
New product that sunshine drinks aimed to launch in market place proved beneficial for
them to obtain the market share also enhance the satisfaction level of consumers as they enhance
the product portfolio that are very crucial for firm.
Target market:
The target market of sunshine drinks are people who are health conscious and love fruits
and their juices to remain always healthy. The youngsters and college goings are prefer to
consume juices.
Cost benefit analysis:
Cost benefit analysis is the process or chain of activities that helps to analyse the
decisions with help of situation or actions organisation can gain important outcomes.
Project plan
Project plan is considered as the written documents that is developed for guiding,
controlling as well as implementing project (Rendon and Snider, 2019. ). Moreover, it is key to
project success as well as needs documents that have to be prepared when initiating ant business
plan. In this there are four stage that are explained below:
 Project Initiation: Herein, respective organisation have to examine the marketplace and
its requirements effectively and efficiently. It aids them to analysis appropriately.
 Project Planning: This is considered as the another stage in which plans are developed
in context of areas, budget, targeted customers and many more so that project can be
implemented effectively.

 Project execution: Herein, planning that is develop d are to be implemented within
market area for its customers that can aids them to understand about the new goods as
well as marketplace.
 Project closure: This refers as the last stage in which projects get closed (Schönsleben,
2018. ). As product which are delivered into market for its clients, firm gain profitability
or losses depends upon consumer reviews.
Work Break down structure
This is considered to be the structure that assists firm to divide the project task into
smaller units as well as every work is assigned to proficient and talented individuals for effectual
attainment of plan. Moreover, it aids in managing the work of large project as well as facilitates
more profitable results. This make task more simple through dividing work within smaller parts.
Gantt Chart
Gantt chart is is considered as the kinds of bar chart which shows a project schedules.
Moreover, this is the graphical presentation which shows both initiation as well as finish date of
provided task, dependencies of work, individuals accountable for project and others (Slack and

Brandon-Jones, 2018.). Also, this is helpful for sunshine company to explain the date for
accomplishing delegated project task efficaciously as well as effectually way.

Theoretical and conceptual arguments to justify use of project methodologies, tools and
leadership required within the given project
There are various methodologies, techniques as well as leadership style of project that are
needed to perform the project work appropriately. The methodologies of project like lean
production, six sigma and others that aids them to minimize cost as well as enhance productions
appropriately for profitable results. Likewise, respective projects need style of leadership like

contingency and democratic in order to develop future plans for accomplishing project objectives
efficaciously in order to attained the effective results.
Agile methodologies:
AGILE methodology is an kind of practice which helps to promote the continuous
iteration by development and testing the software development life cycle of the complete project.
It focus on core areas such as individual and team interaction over process tools and techniques
and working software's by using comprehensive documents and many more. In context of
Sunshine drinks by using the respective tool positively responding to the changes by building
effective plan to gain optimum outcomes.
Project management tool ‘Prince 2:
Prince 2 (Projects in controlled environment) is one of the most important process based
method to effectively manage each activity within the project management. It is widely used in
the sector of UK and internationally. In it through understanding should be gathered related to
the whole project and major areas of improvement should be find out in respective project to
gain important insights. In context of Sunshine drinks they by using respective tool control and
evaluate each and every aspect in order to achieve effective results to improve in quality of
projects.
B)
1. Review and critique effectiveness of PLC.
The application of PLC assists Sunshine company to execute their project into
marketplace effectually that is new variety of energy drinks made up of natural spring water.
There are many theories, concepts and models that aids respective organisation project manager
to introduce new product within market area ( Slack, 2018.). Some of them are discussed below:
Waterfall model:
It is defined as the models that assist into project task activities as well as operations. In
this model various stages are included which are explained below: Requirement: Sunshine drink have to identify the resources needs, directions for
performing the project work effective and appropriately for attaining the goals. At this
stage, firm plan and explain the work of project for profitable results.

 Analysis: In this stage, project manager examine the product model as well as business
logic for scrutinize practicability of resources in context of financial as well as technical. Design: At this stage, respective organisation project manager have to design the product
with the assistance of information sources, programming language and others. Coding: This phase help firm in development of models, needs logic that describe
superior model stage. Testing: Sunshine company have to determine the quality, system, units of project for
conducting as well as analysing issues to solve units (Schönsleben, 2018. ). It is
essential stage as testing is performed through firm which helps them to sustain into
competitive market. Operations: at this, stage sunshine drinks have to support as well as manage their work of
project by keeping things upgraded.
 Maintenance: This is refers as the last step of the waterfall model, this assist Sunshine
drinks firm to do the work in such a manner so that improvement, changes as well as
enhancement of final goods or services are done.
Board of directors:
Board of directors is a team of people which is elected by a corporation of shareholder to
represent the interest of shareholder by ensuring the management of companies act on their
behalf. In it head of board of directors is the chairman of the board. In context of Sunshine drinks
by collaboration of them they can be able to take collaborative decisions which not only proved
beneficial for organisation as well as individual to amend the performance of organisation.
2. Why designing and implementing PLC is important to execute the project successfully.
Project life cycle is one of most effective tool to execute the project in proper manner, as
it proved beneficial to direct and control the whole activities and actions in a proper sequence
(Tonchia, Tonchia and Mahagaonkar, 2018.). With the help of designing organization can be
able to properly assign the roles and responsibilities to each and every individual in proper
manner. By it organization majorly evaluate the performance as per the set standards. In context
of Sunshine drinks they with each stage of PLC examine their performance and able to gain
outputs.
Performance management:

Milestones:
The milestone of them that they have to reach at large no. of consumers by building
products that are highly effective in nature.
Targets:
The major target is to enhance sales and profitability by accessing the gaps in performing
well.
Deliverables:
In order to produce products and services in effective manner. Management have to
effectively distribute the roles and responsibilities and other attributes too.
Benchmarks:
Benchmarking is the chain of activities related with the performance of products and
service in against the competitor. It is one of most important aspect for an organisation to
measure the value and performance of employees and products. In context of Next sunshine
drinks they set standards to get effective objectives.
Key performance indicators:
It is one of most measurable value that elaborates about the effectiveness of firm in order
to achieve goals and objectives in business properly. In context of Next Plc they measure
performance of their employees on various basis to set goals and objectives.
3. How cost saving techniques could be incorporated in PLC.
For an organization to complete a project in successful manner there are kinds of cost
saving techniques applied such as value analysis, Total cost control and research regarding best
price and cost of products. After implementation of such kinds of tools in PLC then management
and employees majorly contribute and also consumers purchase products and services as it is
cost effective.
4. What different techniques could be used to ensure quality, scope and tenure in project
implementation.
While producing products and services, quality is very much important for an
organisation to provide one of best products to consumers. With help of various kinds of tools
respective firm can manage and maintain quality such as Total quality management, Lean
principles that reduces wastage and improve quality. To accomplish the project objectives tenure
plays crucial role in which Gantt chart and WBS distribute activities in a specified duration.

5. Critically analyse how different theories, concepts and models could be used between large
and small-scale projects.
There are several models, theories and concepts which can be utilised in order to operate
both large and small project work (Tonchia, Tonchia and Mahagaonkar, 2018.). According to
the project nature, models are utilised to facilitate profitable results. It assists respective
organisation to attain objectives efficaciously which are explained below:
Model Small project Large project
Six Sigma For conducting the small
project, six sigma is applied
into sustainable development
as it is helpful in project
completion by revaluation
procedures and concentrate
upon developing it
appropriately.
For performing the large
project, six sigma help
respective firm to utilise the
overall task that involves
standard explanation, resource
analysis, task designing as well
as verifying procedures with
the assistance of
administration.
6. Critically evaluate the PLC you have prepared within practical and theoretical frameworks
Project life cycle is essential for the sunshine company as this aids them to introduce its
new product at market area. The main advantage of using PLC is it aids in sales forecasting,
obtaining competitive advantage and others. Likewise, it have few limitations in context of
fluctuation into sales data, market situations and many more.
CONCLUSION
As per the above report, it has been concluded that operations as well as project
management are essential for firm in attaining success. There are various principles like lean
production, six sigma and others that are utilised company for their development. For the
formation of new product, project life cycle is performed in order to produce new goods
effectively. In addition to this, continuous improvement plan is prepared for enhancing profit as
well as productivity of firm. Therefore, effectiveness of PLC have been analysed in appropriate
way so that project work get accomplished efficaciously.

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