LEC Refrigeration & Sunshine Drinks: Operations & Project Management

This report provides a comprehensive analysis of operations and project management, focusing on two companies: LEC Refrigeration and Sunshine Drinks. The first part examines LEC Refrigeration, exploring operations management principles, their implementation, and a continuous improvement plan incorporating lean principles. It critiques the application of these principles and offers recommendations for enhancement. The second part shifts to Sunshine Drinks, analyzing the project life cycle for a new energy drink launch. The report includes a business case, project initiation details, and a critique of the project's effectiveness. Different methodologies for project management are also discussed. The report aims to provide practical insights into optimizing operations and project management strategies for improved efficiency and success, drawing on real-world examples to illustrate key concepts.

UNIT 16
Operations & Project
Management

Table of Contents
INTRODUCTION 1
PART 1 1
Introduction to company.............................................................................................................1
Operations vs. Operations Management.....................................................................................1
Review and Critique implementation of Operations Management Principles............................1
Extent to which operations management principles meets the organisational requirements......2
Continuous Improvement Plan and Lean Principles...................................................................3
Recommendations.......................................................................................................................4
PART 2 4
Project Life Cycle.......................................................................................................................4
Review and Critique effectiveness of PLC...............................................................................10
Different Uses of Methodologies for Large and Small Scale Project.......................................12
CONCLUSION 12
REFERENCES 14

INTRODUCTION
Operations management is defined as area of management which is associated with
control and designing process of production as well as redesigning of business operations in
manufacturing of services and goods (Binder, 2016). Basically it is governance of business
practices to attain high level of efficiency within organisation. Project management is defined as
application of skills, knowledge, techniques and tools to accomplish requirements of project. In
this report Longford Engineering Company Refrigeration and Sunshine Drinks company is taken
into consideration. First part is based on LEC Refrigeration is an electric company which furnish
services like freezers and refrigerators. It consists of review and critique of effectualness of
operation management principles and their applications in continuous improvement. Second part
comprises of Sunshine Drinks, they deals with manufacturing, markets and selling of fruit based
drinks. This covers project life cycle and critique of same project to ensure its effectiveness.
PART 1
Introduction to company
Longford Engineering Company Refrigeration (LEC Refrigeration), is a manufacturing
company of freezers and refrigerators. It is a British company which is headquartered in Prescot,
Merseyside, United Kingdom. It was incorporated in 1942 and till then they are able to satisfy
their customers with enhanced quality products.
Operations vs. Operations Management
Operations comprises of all those processes as well as activities which are condemned by
organisation to attain their organisational goals and objectives. Operations management is
defined as process of management, planning and trenchant execution of definite processes and
procedures of organisation which are associated with manufacturing, marketing and other tasks
of organisation (Fleming and Koppelman, 2016).
Review and Critique implementation of Operations Management Principles
There are different principles associated with operations management which are essential
to be reviewed critically with respect to effective understanding and their application in
organisational context (Harrison and Lock, 2017). In case of LEC Refrigeration, they have opted
to have quad refrigerator to provide more storage space for their customer. It is necessary for
1

organisation to manage supply chain which is critical to accomplish operations of organisation
by which goals can be attained in required manner. Execution of operations management within
LEC Refrigeration:
Principle of Organisation:
This principle comprises of processes which are associated with manufacturing. In order
to enhance profitability as well as efficiency, operations must be managed in such a way that
they are coherent (Heizer and et. al., 2017). LEC Refrigeration needs to ensure that their
upcoming refrigerator's parts must be inclined with each other so that it can work in desired
manner.
Principles of fundamentals:
According to this principle, there must be rigorous support to definite fundamentals as
well as norms to make sure that the best possible standards are followed by organisation. 20% of
success can be attained by use of various techniques and 80% success can be attained by
following strict records as well as discipline (Heldman, 2018). LEC Refrigeration must take into
consideration both the aspect for assuring long survival within market. For this they need to
maintain trenchant strategies for making records.
Principle of change:
With rapidly growing techniques, solutions and theories are formulated to certain
problems. This will assist them to make change in their existent working methodologies. For this
it is necessary that LEC Refrigeration should update their systems according to standard
techniques for delivering services thereby leads to enhancement in profits as well as meet the
needs customers and market.
Extent to which operations management principles meets the organisational requirements
It is necessary for LEC Refrigeration to identify the execution of principles of operation
management within the organisation to identify extent up to organisation will accomplish their
needs. They are analysed below:
 The foremost requirement of LEC Refrigeration is to have consistency in their
operations. The organisation carries out their operations in specific sector i.e.
manufacturing of refrigerator (Kerzner, 2019). This activity though does not have same
requirements as designing process varies from requirements of customers which lead to
hindrance in acquisition of principles of organisation.
2

 Apart from this, LEC Refrigeration must comply principle of fundamentals to ensure
safety of employees and their customers. Safety standards are building up for employees
when they are manufacturing refrigerators. Thus needs of this principle are met up to
complete extent (Kundu and et. al., 2015).
 Another requirement of the firm is to make sure that best methods and techniques are
adopted by LEC Refrigeration to maintain supply chain. They have opted for principle of
change to implement new technology as well as techniques in development of quad
refrigerator. Organisation needs to imply this principle consistently.
Operations management principle
 Scientific management: This operational management theory basically focused on
enhancing efficiency of each employee in the firm. It assist in improving production
practices of firm by considering towards performance of their workers. On the basis of
this, individual in an organisation requires to imposed their attention towards
standardization of working practices that lead target objectives effectively.
◦ Positive aspect: By implementing this approach, management of LEC Refrigeration
can enhance their organisational productivity easily. This approach usually targets
individual in order to improve overall productivity of firm.
◦ Negative aspect: For the effective implementation of this approach, it is required for
LEC Refrigeration to manage working practices of their senior management staff so
that they an command overall activities without any time consuming aspect.
 Lean production: This approach focuses on reducing wastage within manufacturing
system in order to enhancing opportunity of growth. With the help if this approach, LEC
Refrigeration can take strict action towards the activities that generate waste from uneven
workloads and overburden activities in order to enhance organisational values easily.
◦ Positive aspect: By implementing this approach, LEC Refrigeration can manage cost
of their products and services as well as can provide them effectively to customer on
the basis of their price requirement.
◦ Negative aspect: This process take a long time in identifying appropriate area for its
effective improvement. Lean manufacturing required a constant efforts of employees
which hard to manage easily for along run duration.
3

Continuous Improvement Plan and Lean Principles
It is necessary for LEC Refrigeration to execute continuous improvement plan with
respect to have consistent enhancement in processes which are associated with supply chain.
Continuous improvement plan is defined as disbursement of all tasks which are formulated to
attain consistent and maximised outcome (Lientz and Rea, 2016). It is one of the most critical
methods to make sure that consistent and effectual improvement is attained. One methodology
through which it can be achieved is lean principles. This is linked with carrying out operations as
well as functionalities in such a way that productivity can be enhanced and waste activities can
be minimised.
It is essential for LEC Refrigeration for development of continuous improvement plan
with respect to enhancement of productivity in respect to development of quad refrigerator. This
plan is illustrated below:
BASIS CURRENT
METHODOLOGIES
PROPOSED
METHODOLOGIES
Cost
The execution of principle of
change depends upon diversity
of products as well as latest
alterations or enhancements
made in technology (Maylor
and Turner, 2017). This
directly impact cost as well as
their operations.
Change must be applicable
within organisation to
minimise the cost by effective
use of technology thereby
enhancing their functionalities.
This will also lead to reduction
in labour cost.
Quality Principle of organisation is not
implemented in appropriate
manner and to enhance their
services as well as customer
base they have opted to launch
new product.
To ensure quality of services,
it is necessary for LEC
Refrigeration to organise their
every operation of supply
chain management. They can
make use of Just-In-Time
approach to make sure that
4

high quality can be attained
(Maylor, Turner and Murray-
Webster, 2015).
Recommendations
According to the assessment of principles of operation management within LEC
Refrigeration and continuous improvement plan, certain recommendations can be implemented
by organisation to enhance their functionalities. They are mentioned below:
 With enhancement in technology, LEC Refrigeration can make use of latest methods
such as simulation to make sure that there product will work as per desired standards and
by this they can also analyse the design of their products.
 They can make use of Just-In-Time approach to make sure operations of organisation; by
this they can provide the services on stipulated time as well as their delivery. Thereby,
satisfies the needs of their customer by managing supply chain management.
Improvement plan
Plan Do Check Act
Cost management LEC Refrigeration can
implement Six sigma
approach in their
business activities so
that hey can manage
cost of their products
and services.
By implementing
benchmarking firm
can analyse reduction
in the overall cost of
their services.
This is last step of
improvement plan in
which firm can
analyse final results
after implementation
of different operational
strategies.
Quality improvement LEC Refrigeration can
apply Lean
manufacturing
practices in their
business operation in
order to reducing
wastage from firm.
By applying
monitoring practices
LEC Refrigeration can
identify quality of
their services.
At this stage, LEC
refrigeration can
analyse improvement
in the quality of their
products.
5

PART 2
Project Life Cycle
Sunshine Drinks Company has decided to merge their drinks to have new energy drink
which will made by usage of natural spring water for their customers. This new range will be
named by Sunshine Energy drink. This requires that management need to ensure that each phase
of product life cycle is carried out in effective manner as well as they are attained in required
time frame from its initiation to its completion (McArthur, 2015). Business case and project life
cycle for new product offered by Sunshine Company is provided below:
Business Case:
BASIS DESCRIPTION
Importance
Sunshine Energy drink is prepared by making use of fruit drinks
along with their natural spring water which will render various
health benefits like nutrition’s, vitamins and many others. Apart
from this fruits will provide sweetness rather than making use of
sugar content and caffeine (Nicholas and Steyn, 2017).
Target Market
The target market will people of age group 18-60 for their new
product who have income around £800 and also for health
conscious people who prefers to consume energy drinks.
Cost Benefit Analysis:
Particulars Situation 1 2
Costs 50000 70000
Benefit 0 20000
(BEP point)
6

Project Initiation:Within project life cycle, it is the foremost step of the project. With
respect to this, Sunshine Drinks, they need to identify objectives of project along with threats and
opportunities linked with project. They need to analyse the feasibility and value of entire project.
In this case brainstorming is needed for the organisation to accomplish their requirements and
analyse the opportunities (Pheng and Meng, 2018. Managing productivity in construction: JIT
operations and measurements. Routledge).
Objectives
 With respect to their new drink, they expect that they can
enhance their profit around 5% in near about 2-3 months
after their products are being distributed.
 They are planning to maximise their customer base in one
year after distribution of their new drinks and they are
expecting it to be around 15%.
Strategies To execute the same, they need to provide high quality drinks and
also have appropriate strategies for marketing and advertisement via
social media to have popularity. Furthermore, they need to have
7
Costs Benefit
0
10000
20000
30000
40000
50000
60000
70000
80000
Illustration 1: Cost benefit analysis

strong pricing strategies for selling their products.
Project manager needs to submit report to higher management by which they can attain
approval for carrying out processing of this project. Company can make use of Microsoft Project
2019 Professional. Furthermore, Six sigma methodology can be applied by Sunshine company to
carry out feasibility analysis (Schönsleben, 2016). The reason behind this is that it will define the
deliverables and various aspects associated with it to minimise cost and thereby make project
feasible. Apart from this, transformational leadership can be used by company as it will help
them to create coordinated vision for overall project.
Project Planning: The next stage associated with this is overall planning of new product
which is to be produced by Sunshine drinks. After getting approval from management, project
manager along with project team needs to create a complete plan. This will assist them to analyse
the resource gap for analysing what all resources are required for the project. Furthermore,
process maps as well as project plan will be developed in this stage and calculation of budget and
planning of finance (Simpson and et. al., 2015). The project plan for Sunshine Energy drink is
provided below:
Cost
The cost required for processes, technology and resources for
development of Sunshine Energy must be analysed. It will take around
£70,000 to £100,000 for development of this drink.
Communication
The company will undertake external, vertical, internal and linear
communication for development process to make sure that information
is exchanged smoothly.
Quality
To make sure high quality, company needs acquire new technologies
by which they can ensure high productivity so that quality of products
is not hampered. They can opt for automation.
Scope
The scope of overall project is broad as they have opted to acquire
talented individuals as well as make use of new processes and
equipment’s to ensure sustainability as well as quality of products.
8

In this lean principle is being used by Sunshine Drinks company as by this effectiveness
can be increased in terms of reduction in waste which is essential for planning of project while
contributing in production of new product (Slack and Brandon-Jones, 2018). Autocratic
leadership style can be used as by this leader can allocate responsibilities as well as tasks to their
subordinates in effective manner which can result in enhancement of efficiency. Tools used for
this will be work breakdown structure and Gantt Chart which will assist organisation to develop
an enhanced structure with time required for their implementation.
Gantt Chart:
Illustration 2: Gantt Chart
9

Illustration 3: Gantt Chart
Illustration 4: Network Diagram
Work Breakdown Structure:
10

Illustration 5: Work Breakdown Structure
Project Execution: It is one of the critical stages of Project life as all the ideas and
concepts can be implemented in effective manner. Project manager within Sunshine Drinks
company will organise workflow which is required for allocation of tasks to other teams
(Verzuh, 2015). It can be understood as, consider one team whose focus will be on acquiring of
raw materials, another team will be responsible for development of mixing of products by
making use of natural spring water. Apart from this, it is essential for Sunshine Drinks to give
details about project with essential training. Furthermore, they needs to monitor overall project
with respect to quality, budget and time to identify modifications as well as deviations in project
to overcome them. For this they can make use of tools like Zoho and ProofHub projects as they
Assists Company with respect to overall process of execution. Democratic leadership is chosen
by Sunshine drinks as it will boost up morale of subordinates with respect to contribution in
11

implementation of project. The reason for this is that execution of development procedure can
only occur if subordinates works in collaboration with each other and renders effective inputs.
Total quality management (TQM) can be used by Sunshine Drinks to manage the quality of their
new energy drink. It will be used to focus on mixing process and purifying to make sure that
maximised quality is attained (Binder, 2016). By this overall process of production can be
monitored continuously by making use of TQM in terms of health, safety, cost and quality to
achieve development process.
Project Closure: The last stage of this process within Sunshine Drinks company is to identify the
overall performance of project. In this performance of team will also be accessed. Apart from
this detailed documentation is also formulated with respect to closure of project as well as
accounting of budget. For accomplishment of any project it is necessary that effective
communication must occur with stakeholders for successful completion of process associated
with development of product. In this tool can be used like Basecamp for identification of overall
quality of project and closure. It will assist organisation to review overall standards which are
attained by project and extent up to which standards are accomplished with respect to Sunshine
Energy drinks. Strategic leadership is used so that effectiveness can be evaluated with respect to
decisions made and modifications which are made in project to attain initiation laid with respect
to achievement of objectives (Fleming and Koppelman, 2016).
Review and Critique effectiveness of PLC.
Implementation and designing of project life cycle is essential and crucial practice within
organisation as it provides framework and structured road map for management and monitoring
of project. It is mandatory for Sunshine Drinks company to efficaciously manage and monitor
their PLC to make sure that best techniques, processes and methods are used for the same
process. For this they can make use of Waterfall model for evaluation of project life cycle, this
model is illustrated below:
Requirement:In this stage, model needs to analyse needs of resources at the beginning of
project. At initiation stage, project life cycle assists organisation to determine the essential
requirements related with project. Sunshine Drinks has applied six sigma methodology which
will minimise the scope of alterations in further stages (Harrison and Lock, 2017).
12

Design: This phase of model is related with development which is sustainable as well as
flexible with respect to design of overall project. In this stage Sunshine Drinks has opted to make
use of lean principles to make sure that wastage is minimised. In this autocratic leadership is
used which eliminates participation of employees while formulation of plans with respect to
development of new product (Heizer and et. al., 2017). This will be a threat for the organisation
as this includes minimum contribution of subordinates within later stages which will affect
performance of Sunshine Energy.
Development: In the phase of development, this stage effectively reflects entire development
and proper execution of a procedure. In the process of execution, Sunshine Drinks Company is
taking advantage of Total quality management approach in addition with democratic form of
leadership style (Heldman, 2018). Leadership style effectively makes sure that appropriate
participation and increase in productivity. Method of Total quality management mainly put their
focus on quality factor rather than on cost effective techniques as to save and minimize cost in
this stage. Other techniques is inventory management that allow an organisation to make sure
Just-In-Time procedures, therefore, cost can be effectively saved as orders quantity are directly
depend upon consumers. In addition with this other form of techniques that can be used is
Software Cost Reduction (SCR) Toolkit within the process of production that effectively helps in
ensuring quality along with cost effectiveness. With the help of this method organisation can
easily able to determine their equipment’s and processes which a further altered.
Testing and Maintenance:
It is the last step in waterfall model which is used in proper testing and maintenance of
entire plan that can further be utilized to access the closure stage of a project. Testing and
maintenance stage is mainly linked with proper analyse of plan effectiveness which can help
Sunshine Drinks Company in their strategic leadership. It is mainly known as a tactical decision
with the help of which project manager can effectively able to strategically deal an assessment in
a more accurate manner (Kerzner, 2019).
There are different types of techniques that can be used by an organisation in order to
effectively access tenure, scope, quality of the entire project. For an example, with the help of
agile technology company can effectively evaluate their entire project life cycle in order to
efficiently increase the implementation, management and execution of a project. Other form of
technique that can be used by an organisation is Scrum Methodology within which Sunshine
13

Energy can able to form self-managing, small and cross-functional team (Kundu and et. al.,
2015). This will further help in increasing productivity and performance management relating to
packing, production and distribution process of Sunshine Energy within a marketplace.
Different Uses of Methodologies for Large and Small Scale Project
METHODOLOGIES SMALL-SCALE
PROJECTS
LARGE-SCALE
PROJECTS
Six Sigma Within small-scale projects
like, products packing method
of six sigma can be utilized to
achieve linent and effective
sustainable development. This
can be done by further
reviewing process of package
and make necessary
improvement (Lientz and Rea,
2016).
In the sector of overall new
offering six sigma can be
effectively applied in the
procedures of overall project.
That mainly include, analysing
and measuring resources,
proper defining of standards
and overall verification of
whole process.
Lean Principles Lean principle within small
project such as labelling of
containers can be utilized to
reduce unnecessary operations
like, labelling of caps within
inside.
In the process of new product
development these types of
principles can be effectively
utilized in the process of
planning in which all the form
of unnecessary cost and be
eradicate (Maylor and Turner,
2017).
Programme theory: This theory implement to identify short and long term projects of an
organisation by producing a specific chain for its better accomplishment. In order to completing
short term project it is required for firm to create small chains so that they can monitor each and
every aspects clearly. Whereas for long projects, firm requires to create a large chain of
14

strategies that assist them in attaining business goals easily. This theory basically based on logics
of intervention that how they can be implemented in the work. On the basis of such approaches,
an organisation can easily grab maximum opportunity for effective accomplishment of their
business targets and objectives that can be small or large scale.
CONCLUSION
As per the above mentioned report, it has been concluded that project management is an
important activity that can be effectively used by an organisation to increase quality of their
project. In this report continuous improvement plan are included that helps in ensuring
consistency of operations. It is important for an organisation to effectively implement project life
cycle that will help them to provide proper guidance. In this report, Waterfall model in included
which is utilized to use numerous methodologies in the small and large scale in order to
effectively determine intensity of a project.
15