Detailed Report: Operations and Project Management at XYZ Company

This report provides a comprehensive analysis of operations and project management principles, focusing on the context of the XYZ company, a manufacturer of electronic items. It begins by outlining key operational management principles, including inventory, planning, manufacturing, and distribution, and highlights the benefits of effective operational management, such as profitability and competitive advantages. The report then delves into the importance of Six Sigma and Lean principles for minimizing waste and improving product quality. It further explores continuous improvement processes, performance improvement plans, and the application of models like Lean and Kaizen. The core of the report is an examination of the project life cycle (PLC) for developing a new product, including the creation of a business case, project plan, work breakdown structure, and Gantt chart, along with a discussion of cost-saving and quality assurance techniques. It concludes with a review of PLC within theoretical frameworks.

Operations and project
management

Table of Contents
1INTRODUCTION.........................................................................................................................1
TASK 1............................................................................................................................................1
LO1 Implementation of the operation management principles and the importance of six
sigma and lean principle.........................................................................................................1
2TASK 2 .........................................................................................................................................2
LO2 Defining continuous improvement and its plan based on the review ..........................2
TASK 3............................................................................................................................................4
L03 making of the project life cycle for development of the product with all the documents
which are required in every stage...........................................................................................4
A Business case....................................................................................................................4
B project plan .......................................................................................................................5
C work break down structure ...............................................................................................7
D Gantt chart ........................................................................................................................8
E theoretical and the conceptual idea for the use of the methodologies.............................11
TASK 4..........................................................................................................................................11
A effectiveness of project life cycle ...................................................................................11
B importance of the designing of the implementation of the PLC......................................12
C. Cost saving techniques....................................................................................................12
D Quality assurance techniques ..........................................................................................12
E theories and models .........................................................................................................13
F review of PLC in the context of theoretical frameworks................................................13
3REFERENCES ...........................................................................................................................14

1INTRODUCTION
Operation management refers to daily activities of business properly. Project
management includes the management principles which are made to achieve the goals of the
enterprise. This report will study operation management principles in context of the XYZ
company which are dealing in manufacturing of electronic items. It will also discuss the
importance of six-sigma and lean principles. It will study continuous improvement and making
betterment plan. It will discuss different strategies which are developed for the implementation
of plan. Furthermore, it will also tell about the making of the project life cycle for developing
new product. It will also discuss importance of the project life cycle plan by applying concepts
and models.
TASK 1
LO1 Implementation of the operation management principles and the importance of six sigma
and lean principle
Operation management principles which is to be followed in the business. These
principles are:
 Principles of inventory management- this refers to controlling of the stock or material.
This principle tells about understanding of duties to look after stock and its effect on
business. These are applied because resources are limited and must be used in an efficient
way.
 Principle of operational planning – planning is necessary before every course of action.
In this before manufacturing planning is must. This is the basic knowledge which is used
in the process. Under this strategic planning with techniques are used to make work
easier(Cserhati and Szabo, 2014.).
 Principles of manufacturing management – Here all modern techniques of
manufacturing are used. Topics which are covered under this is as follows:
manufacturing environment, process layout, bills of material and routing, executive
manufacturing planning and control activities, working with the material requirement
planning.

 Principles of distribution and logistics – under this, various topics are discussed such
as logistics management, activities and principles of warehousing, transportation
activities, fulfilment, distribution channel design and many more.
 Principles of managing operation – this principle provides basic knowledge, tools
needed for daily operations. It focus on the designing systems which are able to produce
goods and services.
Advantages of Operation Management - there are many benefits and some of them are:
profitability management - this refers to the starting of the new business with new ideas and
implement in organisation. The new product founds interesting to the client and after that if
consumer like the product then sales will increase(Zareei, 2018.). Manager always focus on the
improvement in existing product which is presentable in market. Competitive Advantages - it
refers to the moving ahead from the contenders. It may be in technological advancement, price,
strategy and many more.
Importance of Six Sigma and Lean Principle-
Lean principle refers to one of the methods for reducing waste in an organisation. This is used to
minimise wastage of resources which is limited in company as well as in nature. It will
emphasise on the waste without compromising on quality. Through waste, unnecessary there is
the increase in the workload and it will create the tension in working environment. Only by
value of product client will consume it. XYZ company is using this method because resources
are scarce in the environment and if these are finished then there is no new resources in the
nature.
Six Sigma is principle which encourages employee to do minimum mistakes within
regular improvement in product. It is necessary for company to make changes in process of
manufacturing. XYZ is also following principles and make worth in the eyes of world.
2TASK 2
LO2 Defining continuous improvement and its plan based on the review
Continuous improvement process refers regular improvement is done in the product or
the services. Resultant is the increase in the efficiency of working(Yap and et.al. 2018.). This
makes the work best in the organisation because there is something new in the existing product
2

which makes the customer attracted towards the product. By applying this technique in the
company will increase the productivity of employees as well as firm.
Performance Improvement Plan is a way through which a company is reaching to new heights.
There are many steps to be followed in an organisation. Some of them are:
 Identifying objectives of a firm and according to it, plan is selected. Through this
employee will know how they have to work on what basis.
 Making of the team and under this choose that people who are able to handle all the
activities related to the time, cost and material.
 Performance is measured according to process by which the firm is following. This will
help the firm to work as well as employees to look for their deficiencies and after that
they will improve.
 Process which firm is following has looking after the activities which are unnecessary
and that are wasting the time of the employees. It can be utilised for other activities.
 The process which is followed in the organisation has understood by the employees and
after that only they will do the minimum mistakes(Rolstadås and et.al.2014.).
 In this step firm will analyse process whether it is achieving goals of organisation. This
also helps in determining loopholes in prevailing process. Under this, only mistakes or
uncover points are considered and after that recovery plan is made to solve all issues.
 Basic issue is chosen and which is following the objective of the entity or not. It will
help the firm in attaining objectives. All workers are following same path that
contributes them to become successful.
 Plan is tested before implementing in the organisation with all the above changes.The
tested plan is working in company or not and implement it.
The models are used named as Lean , Kaizen etc. the improvement plan are
Objectives the latest growth followed plan authority which is
responsible
time
it helps to reduce
to minimise the
cost of production
increase in cost of
production
six sigma, lean
strategy is used
project and the
quality manager
2.5 months
increase in the knowledge is not working on team members, 1.5 months
3

quality of
washing machine
product
up to the mark betterment of
quality and
observing
manager of
quality and
project manager
models in context of business
XYZ company is making washing machine and for that better material, technology with
the minimum cost is required to make the best from others. In this improvement plan the
strategy is used is lean and six sigma which will be helpful for the firm to work with reduce in
the mistakes. Wastage of material is also improved from it. Continuous improvements in
existing product will make the thing more interesting and client will be more satisfied. Sale of
the product is increase from following this method. The cited project is made to make something
new in this product. Its designing, working and many more additional features are added in this.
TASK 3
L03 making of the project life cycle for development of the product with all the documents
which are required in every stage.
Product life cycle is refers to the product development by going through the four stages
which is followed by every manager. It involves the things which are necessary in making the
product.
4

A Business case
Under this company is thinking to make the new product which is differentiated from
other products like large screen TV. on regular basis the company is selling the product like
washing machines, gas, freezers, electric coolers, fridges and many more. Now firm is entering
in the market of the electronics. By making the new improvements in the product it will be more
attractive. In this screen size will be 58 inches and the other additional technological factors
which are added to make it more interesting(Lappe and Spang, 2014.). By entering in the new
market, firms target market will be changed. Now the person who are targeted are kids, women
and professional persons. Product vis new in market for that promotional expenses has to be
occur in huge amount. There scheme for this is first 100 customers are given on 20% discounts.
For saving of the electricity TV set is made with the LED screen and it will help to reduce its
adverse effects on eyes. New product is needed in market because consumer want something
new and by making regular improvement sale will also increase. The cost of production will be
£15000.
cost benefits are
Sections details cost every year
raw material purchasing buying of raw material £10500
staff hiring wages is given to staff with other
benefits
£3000
additional workstations hardware, software and furniture £1000
bills electricity and maintenance and
other expenditure
£500
total cost £15000
benefits within 12 months
benefits £2500
minimisation of resource
wastage
£10000
maximisation of capabilities £1000
5

total benefits £15500
summary
benefits £15500
cost £15000
estimated saving £500
B project plan
in order to make the make plan and in that case, it has to gone through from the
following stages and these are :
initial phase
Under this firm is going through the early phase of the company. In this phase company
has to do lot of things like before the product development it is needed to prepare aims and
objectives of the firm. It involves the allocating of the funds, stake holders, scheduling of the
task, sponsor etc. in early phase the company is look after everything and make the decision
correctly.
Planning phase
In this XYZ company is also making the planning before doing any action. In this before
taking any decision, it must be preplanned one so that no chances of confusion are there.
Planning is done on the basis of market research. Through this market research has made to look
after the demands and wants of the consumer are fulfilled(Kivilä and et.al.2017.). The planning
is of raw material arrangement sources, buying of the extra material and many more. In this
manager has look after the all the documents which are required for then development of the
product. In this plan has communicated to the every team member. There is the need of the
proper communication.
Implementation phase
In this XYZ company has to just implement the plan in this step. For making this phase
successful, planning phase must be properly done. In this all the man, material, money and
human resource are considered and then expectation of the positive results.
closing phase
It is the end stage and under this the necessary information which is necessary for the
stakeholder purpose, supplier contract and people are related to it .
6

C work break down structure
Idea generation- in thus firstly identify the needs of the customer . the quality of the product is
analysed, when designing the new product its objectives are defined. Under this all the work
related to making the new product.
concept designing - making the idea in creative way . the concept are made again after the
recovery. on the basis of the past data the concept are redesign. in this all the work related to the
designing of the product are made.
Feasibility study-the check of the appropriateness of the data which is given in the product.
Checking of market is necessary . Technical changes are made in the product. Financial
capabilities , availability of resources , making decisions which are made to look after the
product of the company.
Detail designing of new product.
In this all the work related to product which is specified by the consumer. designing of the
features of the product which will make the product to look attractive. for making the product
7

looking wise attractive some interesting features of the product must be added. the prototype of
the product must not be same in designing of the product. There are more things which are made
the product perfect are quality, features, branding of the product etc.
Test product
Product vis tested according to the demand of consumer. if certain specification is given in the
product then it must fulfil its requirements.
D Gantt chart
8

9

10