Operations and Project Management: H&M Case Study and Analysis Report

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This report provides a detailed analysis of operations and project management, focusing on the case of Hennes & Mauritz (H&M). It begins by differentiating between operations and operations management, emphasizing their importance in achieving organizational objectives. The report then critiques H&M's implementation of operations management principles, particularly in the context of expanding into the Nigerian market, highlighting the significance of quality control, competitor analysis, and accountability. The extent to which H&M's operations management meets requirements is assessed, underlining the role of efficiency and productivity. Furthermore, the report explores continuous improvement as a philosophy, describing lean principles and their application within H&M. A continuous improvement plan is built after reviewing and critiquing operations management principles, with recommendations to enhance operational functions. The report also includes an overview of a case study, a description of the Product Life Cycle (PLC), and an analysis of its application to projects, concluding with a review and critique of PLC usage in a given project.
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OPERATIONS
AND
PROJECT
MANAGEMENT
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. An introduction to chosen organisation..............................................................................3
2. Operation vs Operations management................................................................................3
3. Critique and review of implementation of operation management principles..................4
4. Analyse extent to which operations management of an organisation meets the requirement.
................................................................................................................................................5
5. Continuous improvement as a philosophy by describing lean principles..........................6
6. Build a continuous improvement plan after reviewing and critique of operation
management principles...........................................................................................................7
7. By using continuous improvement principles and recommend to improve the operations
functions.................................................................................................................................9
INTRODUCTION.........................................................................................................................10
MAIN BODY.................................................................................................................................10
1. An overview of the case study..........................................................................................10
2. A description of PLC and explanation of each stage.......................................................10
3. How each stage of PLC applies to project by supporting documents..............................11
4. Review and critique the application of the PLC used in a given project.........................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Operations and project management within an organisation are closely related. Where
operations management is basically responsible for directing and controlling business operation.
Moreover, it makes sure that business operations are resourceful and the final customers are
satisfied with the utility of products produced. Whereas project management is temporary in
nature which is undertaken to produce a unique product or service. It helps business organisation
to meet goals within specified period of time. Moreover, project management is application of
knowledge, skills as well as tool which are required to meet project requirements. This report is
based on Hennes & Mauritz which is a Swedish multinational clothing retail company. It
primarily provides clothing for men, women, teenagers and children. Company's operation are
spread around 62 countries with over 4700 stores. The purpose of this report is to cover several
aspects of operation and project management. However, this report will cover critical
effectiveness of operations management principles, product life cycle as well as effectiveness of
plc for the selected company.
MAIN BODY
1. An introduction to chosen organisation
Hennes & Mauritz is a Swedish based multinational retail company. It was founded by
Erling Persson in 1947 (Artto, Ahola and Vartiainen, 2016). The company is specialised in
selling fast-fashion clothing foe men, women, teenagers as well as children. The range basically
includes sportswear, shoes, accessories, cosmetics as well as home textiles. However, H&M
operates its business operations in 62 countries. It has 5000+ stores spread around several
locations around the world. Moreover, H&M is the second largest global clothing brand. The
company also operates through online shopping in 33 countries. H&M has a total number of
125000+ employees who help the company in achieving the overall desired objective within
standard time. It constantly strives to have the best customer offering in each individual market.
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2. Operation vs Operations management
Operations is art of managing inner working within a business to carry out all the
activities with proper efficiency. Moreover, proper functioning of all business operations are
very necessary because due these operations only the desired objective are achieved effectively
(Brioso, 2015). However, both employees and owners should aim at understanding every
operations related aspects and make required improvements if necessary in order to proper
perform business activities. Whereas operation management is process under which the
administration aims at creating highest level of efficiency possible within an organisation. It is
primarily concerned with conversion of materials and labour into products and services as
efficiently as possible in order to maximize the profit of an organisation.
3. Critique and review of implementation of operation management principles
Case Study: Hennes & Mauritz is currently planning to enhance their business operation
in Nigeria by their existing products. This is help the company in increasing company's overall
market share. Moreover, to do this effectively the company need to effectively under the
customers lifestyle and aim at adopting the most effective promotional strategies. Initially the
company would have to keep prices of the product reasonable so that people living in Nigeria
can easily afford. They should decide on target market. Nigerians are very fashion conscious
people so therefore, the products by the company should be made accordingly.
Operations Management is a process which deals with organizing, planning and
supervising (Coughlan and et.al., 2016). These process helps in ensuring higher profitability and
improvement within manufacturing operations. However, when operation management is
implemented, there are several key adjustments which can be made in order to support
organisation in reaching strategic goals with efficiency. Further, these goals are basically
achieved through the important principles of operation management and helps in providing
visibility into the business operations. These principles are: humility, organisation, reality,
success, accountability, causality, change, collaborating with customers, quality control and
knowing competition. Moreover some the principles of operations management are explained
below:
Quality Control: This is an important and most essential principle under operation
management. Without implementation of quality control techniques customers can never
be satisfied with product which the respective company creates. For this the company
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should make use of durable and best materials (Harrison and Lock, 2017). However in
context to H&M the company would have to regularly look after the quality of product
which will be product in order to sale them in Nigeria. Moreover, they have maintain the
same well of quality ans standard in order to efficiently carry out their business operation
and aim at increasing there overall sales.
Knowing the Competition: It is very essential to analyse the competitors. Through this
analysis the company effectively know what strategies they require to implement in order
to capture good market share. Under Nigeria the H&M should understand competitor's
customers, products as well as any form of competitive edge. This will help the company
in understanding the demand and requirements of people living in Nigeria. Moreover,
they can successfully implement strategy accordingly.
Accountability: Being accountable is key of effective operation management. However,
managers of the organisation are expected to set several rules and standards on the basic
of which the employees of the respective company will work (Hazır, 2015). Further they
should regularly check each and every department functioning in order to ensure that all
business activities are running properly. Hence, in order to expand H&M under Nigeria
market the managers are required to look up at all business activities. Moreover under the
principle of accountability the company usually conduct delegation as well as role in
effective way for workers of the organisation according to their skills, knowledge as well
as ability. Manger in order to successfully expand under Nigeria, will have to allocate
work to several departments so that the desired organisational goals would be achieved
with proper efficiency.
However, there are several other principles of operations management which can be effectively
implemented by H&M in order to expand their business operation under Nigeria. With the help
of these principles the companies are usually able to achieve desired business objective within
the specified period of time frame. Each principles helps in making the task easier.
4. Analyse extent to which operations management of an organisation meets the requirement.
Operation management is very important to improve the overall productivity. Moreover,
operation management usually play very crucial role in an organisation because helps in
handling issues like operations, design and maintenance of system used for the production of
goods (Heizer, Render and Munson, 2017). Moreover, operation management is very helpful for
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an organisation in achieving the desired business objectives. Goals and purpose of every business
organisation involves the production of good and services. However, to do this effectively the
company's are required to procure resources, convert into outputs and distribute them to the final
customers. Due these activities only the company successfully reaches their target customers.
This is because the principles of operations management usually covers all the major aspects
which encourages potential customers to engage them into the process of buying. Further,
organisational strategic goal is to use operations management to make business as efficient as
possible. Under the cases of H&M effective implementation of operation management is very
essential in order to effectively expand company's operation under Nigeria. Moreover, when
operation management is efficient products and services are usually produced at higher capacity
and tends at reducing cost per unit (Hu,Cui and Demeulemeester, 2015). Further, managers
need to consider all strategies that are essentially reduced to improve overall efficiency and
H&M productivity as well as profitability. In context in H&M the company have good brand
reputation as well as vast global presence which is a major advance. It can effectively implement
several promotional techniques in order to promote its business operation under Nigeria.
5. Continuous improvement as a philosophy by describing lean principles
Lean Principle is a systematic process which was primarily originated in Japanese
manufacturing industry with the prime aim of minimization of waste within a manufacturing unit
without sacrificing the original productivity. Further attempts are made to add value, through
reducing of wastage (Kerzner, 2017). However, this process shall be successfully implemented
under all company, so as to reduce the wastage and provide higher quality of products to final
customers. Moreover, due to lean cycle time of production, productively, cost of materials,
efficiency as well as scrap can to improved, leading to face competition with efficiency. It also
helps in improving and enhance the overall performance of workers of the respective company.
However, there are five key principles of lean principles which are mentioned below:
Identify Value: Value under principle of lean basically defines customer's need for a
specific goods as well as their expectation from a particular company. Further, under this
identification is made by the company in the field of timeline for manufacturing as well
as delivering products to customers and deciding the value of product in terms of
company. In context to H&M the company can conduct a survey in order to effectively
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identify the expectation of people living in Nigeria. This will help the company in
producing goods and services accordingly.
Mapping of Value Stream: After the end goal are determined by a company, the step is
mapping value stream. Under this all the steps are involved which are performed from the
procurement of raw material to the delivery of final product to ultimate customers.
(KONONENKO and Aghaee, 2016). Further, value stream is a simple process but it
usually identifies all actions that is required to convert and create a final product for
consumption. Prime motive of value stream principle is to eliminate those step that
generate wastage. For H&M the company should implement this principle in order to
avoid wastage generated during manufacturing of goods and services.
Create Flow: After mapping value stream, the third principle of lean is followed. Once
wastage is reduced, the next step is ensure that all the remaining measures flow smoothly
without any kind of interruptions (Kundu and .et.al., 2015). Hence, H&M should
implement this efficiently to perform all the business operation of this company with
accuracy. Moreover, it has been operated that due to this principle organisation gain huge
productivity as well as efficiency.
Establish Pull: With improve flow of goods and services the company are able to
effectively deliver products to final customers. Due this principle several new customers
are attracted. However, H&M can make use of this principles in order to expand their
business operation under Nigeria. Further, company can effectively deliver products to its
final customers within the specified and allocated time frame.
Seek Perfection: This is the final step under the lean principles which is very important
to followed. Under this identification of areas of improvement is made and the
meaningful changes are implemented within an organisation. In respect of H&M each
and every aspect of lean manufacturing should be carry implemented in order to
efficiently establish their business operation under Nigeria.
6. Build a continuous improvement plan after reviewing and critique of operation management
principles.
Continuous Improvement Plan basically involves a set activities which are designed to
bring out gradual improvement in products, services. This plan is adopted an organisation to
make important improvement in the quality of product which is provide to final customer.
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Furthermore, implementation of this plan helps an organisation in improving customer
satisfaction which tend at improving productivity, efficiency and profits for respective
organisation (Lam and Lai, 2015). Further, in context to effectively expand business operation of
H&M under Nigeria the company should aim at adopting the strategy of continuous
improvement, this will help the company in retaining and making new customers.
Plan Do Check Act
Marketing
Analysis
In order to successfully
expand business operation
of H&M under Nigeria
market, the company is
required to effectively
implemented the principle
of knowing the competition.
Without, this analysis the
company can never survive
into the business world.
Company should study the
products of products and
specially the pricing
strategy adopted by
competitors. Therefore,
company aims at making
improvement so that they
can perfectly capture new
market share and increase
the overall performance of
organisations.
Under check, the
company is basically
required to check out the
the improved adopted by
the company is working.
There prime objective is
to capture potential
customers under Nigeria.
It is the overcome of
plan which is initiated
by a company in order
to make improvements
in current products.
However, after
marketing analysis
H&M should have a
look at whether the
strategies adopted by
company in
accordance to
competition are
helpful for an
organisation or not.
Cost
Reduction
Further in order to improve
the quality of product the
Under this the
implemented lean
Through the company
primarily aims at
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company should aim at
implementing the principle
of lean manufacturing
(Padalkar and Gopinath,
2016). This principles helps
helps in reduction of work
and minimizing cost of the
goods and services
produces by the company.
H&M should implement the
process of lean
manufacturing under its
business operation in order
to provide cost effective
products to final customers.
principle is evaluated.
However, H&M after
implementation of lean
principle should
effectively check whether
all the allocated task are
working smoothly or not
within organisation.
knowing the effective
overcome of lean
principles. Moreover,
lean principle would
be very helpful for
H&M because this
principles usually uses
the waste produced.
However, continuous improvement plan would be very help for an organisation because
this usually helps the company in retaining the company's lost customers. Therefore in order to
successfully establish H&M under Nigeria the company should regularly implement the
Continuous improvement plan that will help company in easily understanding the changing
needs of company's potential customers.
7. By using continuous improvement principles and recommend to improve the operations
functions
By effective analysis of each aspect mentioned above, it is recommend that H&M should
effectively aim at improving the operation function. Further, improvement in operation function
would help the respective company in each new target with proper efficiency. These principles
should be regularly evaluate by H&M so that they can effectively implement the required,
changes as soon as possible. These fast improvement made by H&M would help the company in
creating good business reputation and further tend it attracting more customers towards their
brand. H&M should also implement the most effective promotional strategy in order to make
customer aware about their expansion under Nigeria market. Moreover, it should also provide
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final customers with products on time and regularly aim at reducing the waste which is generated
under lean manufacturing. This waste reduction help in improving productivity and cost of
production is required that will ultimately help H&M. Though this process the operational
management of organisational tends to show positive responses in most of the cases.
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INTRODUCTION
Operation Management within a business organisation is basically concerned with
planning, supervising as well as organising. This is basically done in context of production and
manufacturing. Further, this also helps an organisation in expanding company's business
operations which directly tends at increasing profitability. This part covers Thermotec Plastics
Ltd. Which was founded in 1968. the company primarily manufactures polycarbonate, HDPE
and several other products. However, it will basically cover product life cycle as well as several
supporting documents.
MAIN BODY
1. An overview of the case study
Case Study: Currently Thermotec Plastics Ltd. Has conducted a research in which they
have found the company is primarily faces to major issue, which are needed to be solved as soon
as possible. Moreover the two business objective which Thermotec Plastics Ltd. needs to achieve
are: firstly they want to reduce the movement of staff from the premises during the working
hours because the company is situated in local area which create issue of people living there.
Secondly the company is helping the staff to develop healthy life style which will help in
reducing staff absenteeism.
2. A description of PLC and explanation of each stage
Project Life cycle is process which specific that every organisation goes through
introduction to withdrawal or eventual demise of the respective company. It consist of four
different stages under which each stage has its own significance (Rosemann and vom Brocke,
2015). Moreover, in respect Thermotec Plastics Ltd. company has implemented the process of
plc in order to effectively achieve the desired organisational objective within the current
financial year. Four phases of project management life cycle are:
Initiation: Under this phase identification of business needs, problem or opportunity
available to business are identified. In context to Thermotec Plastics Ltd. the company
need to evaluate problem faced by company effectively.
Planning: After initiation of plc the next step involve is to make effective planning in
order in order to make plc successful. For Thermotec Plastics Ltd. Company can
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effectively make a plan in order to achieve their objective. They can basically aim at
making a place where all the employees can go during break hours.
Execution: Once planning is based the implementation and execution of plan made is
executive in order to achieve efficiency. Thermotec Plastics Ltd. Should effectively aim
at executing they plan. This executive will final help them in building and develop
healthy life style which will further help in reducing staff absenteeism.
Closure: This is the last stage under the process of project life cycle. This phase is
usually skipped by many business. Under this emphasis is on releasing the final
deliverables to the customers. Thermotec Plastics Ltd. Can aim at developing a work
break down structure under this stage which will help them in proper execution of the
project and attain the desired objective.
3. How each stage of PLC applies to project by supporting documents.
However, for effectively conducting the project life cycle there are several documents
which are required by Thermotec Plastics Ltd. Which are mentioned below:
Business case: It is a document which basically consists of all important document which are
requirement into to successfully adopt the process of project life cycle.
Executive summary: Thermotec Plastics Ltd aims at developing a proper project management
plan which would efficiency help the respective company in achieving the desired objective
within specified period of time span.
Goal: Thermotec Plastics Ltd goal is to make their employee aware about healthy life style
which will help in reducing staff absenteeism and motivate them to solve the issue movement of
staff from the premises during the working hours because the company is situated in local area
which create issue of people living there
Solution: Moreover, in order solve the arising issue of the management of Thermotec Plastics
Ltd should canteen within the company should that the employees can refresh themselves there.
Cost and Execution time: Moreover for effective execution of this objective the company might
require approximately $4000 within 6 month of duration.
Resources: For this execution the company may require huge amount of funds as well as skilled
labour in order to overcome the problem effectively.
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Work break down structure: It is a process under which project executive is divided into
manageable sections (Swink and et.al., 2017). Moreover, a work break down such basically
includes product, data as well as services.
Gantt chart: Is a type of chart which illustrates a project schedule. Furthermore, the task under
this are performed on vertical axis and time internals (Takey and de Carvalho, 2015). Gantt chart
are commonly made using an initial early start time approach
4. Review and critique the application of the PLC used in a given project
However, there are several application under the process of PLC and each of these
application are very essential in order to achieve the desired business objective (Teslia andet.al.,
2016). The most important application is project monitoring and evaluation which aims at de
terming whether the intended objective of the respective company is achieved or not.
Furthermore, it carry outs initial baseline exercise against which at every end of project
comparison is made. Thermotec Plastics Ltd should successfully monitoring and evaluate each
and each aspect of project management in detail.
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CONCLUSION
From the above report it can be analysed the operation management within an
organisation is every essential in order to function business operation with efficiency. However,
to do this with perfection the organisation should successfully aim at implementing several
operation management principles. These principles helps an organisation in understanding each
and every aspect of business with proper efficiency. Moreover, in order to achieve the objectives
of business the company can implement the project life cycle to achieved desired objective.
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REFERENCES
BOOKS & JOURNALS
Artto, K., Ahola, T. and Vartiainen, V., 2016. From the front end of projects to the back end of
operations: Managing projects for value creation throughout the system
lifecycle. International Journal of Project Management. 34(2). pp.258-270.
Brioso, X., 2015. Integrating ISO 21500 guidance on project management, lean construction and
PMBOK. Procedia Engineering, 123, pp.76-84.
Coughlan, P., and et.al., 2016. Operations and supply chain management: The role of academics
and practitioners in the development of research and practice. International Journal of
Operations & Production Management. 36(12). pp.1673-1695.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Hazır, Ö., 2015. A review of analytical models, approaches and decision support tools in project
monitoring and control. International Journal of Project Management. 33(4). pp.808-
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Heizer, J., Render, B. and Munson, C., 2017. Operations management. Pearson Education
Limited.
Hu, X., Cui, N. and Demeulemeester, E., 2015. Effective expediting to improve project due date
and cost performance through buffer management. International Journal of Production
Research. 53(5). pp.1460-1471.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
KONONENKO, I.V. and Aghaee, A., 2016. Model and method for synthesis of project
management methodology with fuzzy input data. Bulletin of NTU" KhPI". Series:
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scorecard perspective. Information Systems Management 32(2) pp.105-118.
Lam, J.S.L. and Lai, K.H., 2015. Developing environmental sustainability by ANP-QFD
approach: the case of shipping operations. Journal of Cleaner Production, 105, pp.275-
284.
Padalkar, M. and Gopinath, S., 2016. Are complexity and uncertainty distinct concepts in project
management? A taxonomical examination from literature. International journal of
project management 34(4) pp.688-700.
Padalkar, M. and Gopinath, S., 2016. Six decades of project management research: Thematic
trends and future opportunities. International Journal of Project Management 34(7)
pp.1305-1321.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer,
Berlin, Heidelberg.
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Swink, M., and et.al., 2017. Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
Takey, S.M. and de Carvalho, M.M., 2015. Competency mapping in project management: An
action research study in an engineering company. International Journal of Project
Management 33(4) pp.784-796.
Teslia, Y., and et.al., 2016, August. Control of informational Impacts on project management.
In 2016 IEEE First International Conference on Data Stream Mining & Processing
(DSMP) (pp. 387-391). IEEE.
Tsaturyan, T. and Müller, R., 2015. Integration and governance of multiple project management
offices (PMOs) at large organizations. International Journal of Project Management
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Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.
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