Operations and Project Management in HSBC: BTEC HND Analysis

This report provides a detailed analysis of operations and project management within HSBC Bank. It begins by differentiating between 'operations' and 'operations management,' then examines the implementation of operations management principles within HSBC, focusing on how these principles help meet organizational requirements. The report further explores continuous improvement as a philosophy, detailing lean principles and Six Sigma methodologies employed by the bank. Recommendations for improving operational management principles within HSBC are provided. The second part of the report delves into a project lifecycle case study, explaining each stage with supporting documentation such as business cases, project plans, cost-benefit analyses, and work breakdown structures. Project planning tools and methodologies are analyzed, and the effectiveness of the project lifecycle application is critically evaluated using relevant theories and models. The report concludes with a summary of the findings and recommendations.

Operations and Project
Management.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART 1............................................................................................................................................3
Operation v/s operations management...................................................................................3
Implementation of operations management principle in HSBC bank....................................5
Analysis operations management in HSBC bank in order to meet requirement....................6
Continuous improvement as a philosophy and description of lean principles and six sigma.7
Recommendations on improvement of operation management principle in HSBC bank....10
PART 2..........................................................................................................................................12
Project Title..........................................................................................................................12
An overview of the case study..............................................................................................12
An explanation of each stage of the PLC that applies to your selected project, including
supporting documentation for each stage (e.g., business case, the project plan, cost-benefit
analysis and work breakdown structure...............................................................................12
Project planning tool.............................................................................................................14
Analysis of the project methodologies and tools used.........................................................15
Review and critically evaluate the effectiveness of the PLC in application to your project
using the appropriate theories models and concepts............................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Operations management of company deals with deals with day to day and strategic
business issue of an organisation. It ensure that overall operations of business run smoothly and
deliver desired level of result to customer. Project management of an organisation determined the
scope and objectives of project which is require for successful managing and execution of
project. It also ensure that the project of company get complete in timely manner and in proper
budget. Together combining operations and project management is responsible for analysing the
design and improvements in logistics as well as supply chain management of an organisation. IN
this report, HSBC bank is taking into consideration which was founded on 3rd march 1865 having
headquartered in London, United Kingdom. The founder of given company is Sir Thomas
Sutherland. The bank mainly provide its services in Asset management, banking commodities,
equity trading and many more. In this report, operations management principle of an
organisation would discuss and how a given organisation can apply this in their business
operations for continuous improvement.
MAIN BODY
PART 1
Operation v/s operations management.
Operations- It is defined as managing the internal working of an organisations in order to
provide services to clients in effective and efficient manner. The meaning of operations mainly
depends upon businesses to businesses. Below are the several businesses which has different
meaning of operations.
 For restaurant business- For this business, the owner is require to maintain inventory at
sufficient level because the products are perishable in nature. The various operations

carry on in given business are- preparation of food, giving proper customer service ,
cleaning of tables, purchase of vegetable, billing, accounting and many more.
 For retail business- In this business, retail owner is require to maintain sufficient
quantity of goods in order to sell to the customer at the price they want. Different
operations which carry on in given business are store design, display placement, money
and credit handling, maintenance of premises, staff management and many more.
 Service company- In these company operations are generally classified into two types-
client-facing and business related. Client facing service company are those organisations
in which management of company have to do direct interaction or communications with
clients. Whereas, Business related services are those companies which provide support to
another businesses without producing any tangible commodity for them. There are
several operations happen in service provider company are understanding the service
need of customer, managing such process which deliver service to customer, identify
whether objectives of company have been met or not.
HSBC bank which is divided into different segments such as- Commercial banking, Global
banking, investment banking and many more. The major operations in which given bank deals in
banking and financial service, wealth and personal banking and commercial banking.
Operations management- It is considered as a direction and control of process which helps to
transform inputs into products and service. In other words, it is considered as a areas of business
which concerned with overseeing, designing, and controlling the process of production use in
designing of goods or services. Different types of decision of operation management are as
follows:
 Strategic choice- It is mainly considered with determining global strategies of business
and how an organisation would fit with competitive environment.
 Process- It is considered as a fundamental activities which helps in the production of
goods and service. Operations management use in determine the type of work to be done,
level of automation and the methods of improving existing process.
 Quality- It helps to underline all the process and work activities in an organisation. Under
this decision, operation management seeks to determine the quality objective and ways to
improve quality of given product or service.

In the context of HSBC bank, managers of organisation use six sigma and lean approach in the
operational management. By six sigma, management of company identify the defects to solve
them afterwards. Whereas, by lean approach, they put more focus on waste to identify the
defects.
Implementation of operations management principle in HSBC bank.
Operation management principle is define as a process to make operations of company
more efficient for supporting company's goals. Different types of operation management
principle are as follows:
 Reality- By this type of operation management principle, management of an organisation
focus on the problems not the techniques, because they believe that there are no tools
which provide universal solutions.
 Organisation- According to this principle of operation management, all the
manufacturing process in an organisation are interconnected. Elements used in
manufacturing process are predictable and consistent, in order to achieve same level of
profit.
 Fundamentals- By applying this principle, operational management of an organisation
must know how to comply with all basic fundamentals. It also ensures accuracy in
inventory data, BOMs and other general tasks to achieve desired results.
 Managed passion- This operation management principle focuses on development of
employee morale because according to this principle managers of organisation believe
that motivated employees plays a very important role in overall success of an
organisation.
In the terms of HSBC bank, there operational management principle helps managers to measure,
monitor and manage their operational risk. It enable them to planning ahead which they can use
to identify potential problems and take relevant action.
The main purpose of given organisation behind adopting operation management principle in to
manage and control the risk in cost- effective manner. Following objectives given organisation
wants to achieve are as follows:
 Implementation of various number of initiatives to rise standard in relation to conduct of
business.

 To increase monitoring and detective controls to identify risk which arise from new way
of banking and technologies.
 To develop security for protecting customers while using digital channels.
 Development of third party risk management capability to identify risk assessment and to
ensure continuous improvement of business operations.
Analysis operations management in HSBC bank in order to meet requirement.
Operations management is derived as a kind of business practice in which managers of an
organisation create highest level of efficiency in their operations. It primarily concerned with
converting of materials into finished goods to maximize profit for an organisation. Below are the
several functions of operation management department of organisation are as follows:
 Procurement of finance- Finance play a very important role in overall functioning of an
organisation, therefore operation management of an organisation ensures that there
should be properly allocation of money and should be utilized in full extent. Appropriate
utilization of finance allow company to produce product at lowest cost to satisfy overall
need of customer.
 Strategy- Operation management of an organisation helps to plan proper strategy in a
company. This helps company to make better production planning and scheduling.
Several strategies use in an organisation such as supply chain configuration, sales,
capacity to hold money and fuller utilization of human resource.
 Product design- For selling of product in market, its design play a very important role
because it helps to attract customer from market. Therefore operation management of an
organisation helps in making product design as per customer requirement.
HSBC bank which stand for Hongkong and Shanghai Banking Corporation. It provides its
financial services and products to various corporates, government and financial institution. It
offers full range of banking services to support their customers and continue to invest in digital
capabilities.
It also provide high quality relationship to their clients across the world. They also help their
clients to maintain competitive edge in various developed and developing markets. There are
several products and services which given bank offer to their customer are as follows:

1. Several financial facilities in the form of corporate banking, capital markets and
leveraged acquisition finance.
2. Services in other major areas such as credit and rates, foreign exchange and money
market.
3. It also provide global level banking services in the form of trade, global liquidity and
cash management.
4. Investment solutions for different institution, financial intermediaries and private
investors.
5. Management of an organisation also provide fund administration as well as corporate
trust and loan facility.
6. It also cover knowledge about local as well as international markets 24 hour.
Total Quality Management:
It is an approach of managing operations where organisation wide-efforts are made to
increase the quality of work being done and employees are committed towards maintaining a
high standard of work and product quality. Under TQM approach, management aims to derive
long-term success and sustainable business performance with the help of improving quality of
goods and services being offered to the customers (Matias and Coelho, 2011). For
implementation of the principles of TQM, the management of HSBC need to ensure active
employee engagement and participation to improve quality of work being done in each
dimension and aspect of business operations for high level of customer satisfaction.
Just in time by using this approach, the organisation focuses on eliminating or reducing
wastage that is connected to time, work and many more. Herein, the main purpose of manager as
well as leader is emphasized on what the required, when they required as well as needs of goods
at Marketplace. Role of manager in context of chosen organisation, the manager implement
strategy that is connected to reducing wastage. Role of leader herein, the leader make sure that
all activities that is connected to all activity are organised in such a manner that help in
performing different work in an appropriate manner.
Continuous improvement as a philosophy and description of lean principles and six sigma.
Continuous improvement is considered as a process of constantly examining and
improving process of an organisation. There are two main purpose of companies behind adopting
continuous improvement are as follows:

 Focus on growth- Companies by doing continuous improvement generally focuses of
growth through by making development in their services, process and products.
 Create a culture of improvement- By continuous improvement, companies generally
create culture or environment of improvement in their organisation. It also motivate their
employees for doing best of their capability.
There are several advantages continuous improvement in organisation are as follows:
1. Increases productivity and profits- Management of an organisation by doing
continuous improvement focuses on increasing productivity and profits of an
organisation. It helps an organisation to do work in effective and efficient manner which
lead to higher profit margins.
2. Employee morale and accountability- Employees of an organisation has lot of idea
regarding improvement and development of organisation culture. Therefore,by
continuous improvement managers of an organisation take ideas from employees this
helps to develop morale of employees so that they can contribute more towards to the
welfare and development of an organisation.
Lean principles- These principles are holistically applies in an organisation for plan, prioritizes,
manage and measure work. Different types of lean principle are as follows:
 Identify value- This principle of lean helps an organisation to define value for its
customer. Value is define as something offer by company to customer for which they get
paid. There are several techniques companies can use to find value which they can
provide to customer such as interviews, surveys, demographic information, web analytics
and many more. By using these techniques business can find out what there customers
find valuable.
 Map value stream- By applying this principle of lean management of an organisation
identify all those activities which contribute to the values and avoid all those values
which do not contribute any value in an organisation. By eliminating unnecessary process
management of an organisation ensures that customer get exactly what they want by
reducing the cost of product or service.
 Create flow- This principle of lean ensures that all the activities in an organisation run
smoothly without any interruptions and delay. Several strategies which enable

organisation to create flow flow in their activities are as follows: breaking done steps,
reconfiguring the production process, training of employees and many more.
 Establish pull- Sometime inventory is considered as a biggest waste in production
process. Therefore this type of lean principle is apply to limit inventory and work in
process(WIP) which ensures that requisite material and information are available for
smooth flow of work. By this principle organisation ensures that there products are
produced in such a way that would be able to satisfy the needs of customer.
 Pursue perfection- By adopting this principle of lean, management of an organisation
ensures to provide perfection in their work, employees of an organisation also ensures to
provide satisfaction while delivering products as per customer need.
Six sigma- It is defined as a data driven methodology which provide tools and techniques to an
organisation for analysis of each step of process. It provide several methods for improving
efficiency of business organisation, quality of product and increase bottom line profit. There are
two methods use in six sigma such as- DMAIC and DMADV.
1. DMIAC- It is method which is used to improve existing business process. The full form
of DMIAC are:
 Define the problem and project goals
 Measure in details the various aspects of current process
 Analyse the data to find root defects in process
 Improve the process
 Control how process will done in future
2. DMADV- It is method which is used to create new products and services for an
organisation. The full form of DMADV are as follows.
 Define the project goals.
 Measure critical components of process and product capabilities.
 Analyse the data and develop various design for the process, eventually picking the best
one.
 Design and test details of the process.
 Verify the design by running simulations and a pilot program and then handling over the
process to client.

Management of HSBC bank applies the concept of lean and six sigma in their methodology for
achieve excellence. They believe in simple approach that of employees of bank start to embrace
the culture of lean and six sigma operational excellency will follow automatically. In their
upcoming year they will also follow CTQ( Critical to quality) as a key driver for achieving better
satisfaction for their customer. For keeping their lean and six sigma approach sustainable they
will use the culture that will not get tied down by the methodology. Through this approach of
lean and six sigma company make their employees effective in work and develop the capability
of initiative in them.
According to top level management of HSBC bank Successful organisation culture plays a very
important role in continuous improvement. For making an organisation culture PACE concept
play a very important role which stand for Progressive, Adaptive, Creative, Encouraging.
Recommendations on improvement of operation management principle in HSBC bank.
The profit margin of respective bank is much lower as comparison to their competitors.
Therefore several strategies management of bank can use as recommendation for improving their
performance are as follows:

Source: Reuters
 Adopting business realignment- By this strategy, management of given bank can exit
from those areas of business where they are getting less profit and move to those areas
which can increase the profitability of bank. Give bank can also take robust approach for
making strategic planning, assessing the minimum commitment of resource in a
particular line of business to identify opportunities and grab them before their
competitors. This strategy would help given bank to decrease their cost and improve
profit margin and cost in long term.
 Channel optimization- By applying this strategy, given bank can make their branches
fairly aggressive closed, consolidated and sold in their geographic presence. HSBC can
also enhance their contact centres via better operating hours and technical knowledge as
well as make chat and social media capabilities in order to meet customer changing
expectations.
 Training to staff- Managers of respective bank provide more training to their staff to
improve their productivity and performance. There are several ways through which given
bank can judge their employee performance are scorecard, improved motivation and
reward system and through supervision. These ways will help given company to know
whether employees are working well or not so that relevant training can provide to them.
Profit margin of HSBC as comparison to their competitors.

 Reduction of process cost- For improving the efficiency of bank, management of an
organisation can reduce their process cost. There are different cost which bank can reduce
for increasing their customer base are- cost of opening an account, creating a loan
document package and many more. These would help to company to engage more and
more customers and helps to rise in profit of company as well.
PART 2
Project plan states the objectives of projects that specifies activities as well as how that would be
attained, determines what resources would be required and related budgets and accomplishment
time. Additionally, this also explains whole task into project and identifies who will perform it.
Project Title
“To reduce the movement of staff from the premises during the lunch break”.
An overview of the case study
The given case study is related to large manufacturing firms which is located in Midlands. The
entity presently has around 1250 staff on site that performs the various roles and responsibilities.
The different roles involve office workers and staff who would do their work within factory.
Additionally, the organisation have been facing the p[problems due to lack of places and
therefore, they desires to take some projects. The key aim of this section is to reduce the
movement of staff from the premises during the lunch break.
An explanation of each stage of the PLC that applies to your selected project, including
supporting documentation for each stage (e.g., business case, the project plan, cost-benefit
analysis and work breakdown structure
Project life cycle may be described as procedures which are obeyed through almost overall
managers of project for accomplishing the project in effectual way. Moreover, this can be also
stated that it facilitates a framework to manage any forms of project into firm. In respect to give
case study, entity likes to formulate onsite system of catering for minimising the movement of
employees from workplace during their lunch break as well as it is so this cause congestion
problems. Additionally, the project life cycle is essential as it aids project manager to determine
the various stages of project and evaluates its progress effectually. All stages are described
below:

Project Initiation – This is the primary phase of the task the project life cycle wherein the
association chooses if the undertaking is really required and how gainful will it be for them. This
is a significant phase of a PLC on the grounds that it officially guarantees the start of the venture
and there are two measurements that are utilized to pass judgment on a proposed undertaking, for
example, business case and practicality study. The reason for the venture inception stage is to
direct a task by setting out its destinations and how the undertaking will be finished. A business
case can be characterized as a report that explains how an undertaking's objectives line up with
the drawn out plans of the organization. In setting of the individual venture, the fundamental
goals of the organization are to diminish the development of the staff during the mid-day break
just as assist the representatives with fostering a sound way of life. One might say that these
objectives line up with the drawn out plans of the association to diminish clog issues and
furthermore, by setting up an on location caterer, the organization will actually want to give good
dieting choices to the workers. During this stage, it is vital to foster a venture plan with the goal
that the various exercises of the undertaking can be supported before the task is started. The task
director will examine the requirement for various exercises for the undertaking during this stage.
One might say that the task inception stage is likewise significant in light of the fact that it
includes employing a venture group just as putting forth successful objectives.
Project Planning – This is the second period of the undertaking lifecycle that includes
advancement and documentation of a task plan. During this stage, the task expectations just as
the prerequisites of the venture are likewise characterized so the colleagues have a clearness of
the equivalent alongside their separate jobs and responsibilities. The differentactivities that will
be embraced during the undertaking arranging stage will incorporate pre-arranging, leading
gatherings with the partners, draft, plan just as get last endorsement on the venture plan. In
setting to the individual task, the venture supervisor will design out the various assets that will be
required for doing the undertaking just as accomplishing the objectives. The project manager
should guarantee that the task lines up with the set up objectives and goals. Distinctive on
location caterers will be drawn nearer and it will be broke down on the off chance that they offer
quality food choices or not. This is on the grounds that when the representatives will be helped
with fostering a sound way of life, there will be a decrease in the non-attendance. The financial
plan just as assessed cost of the undertaking will likewise be arranged and broke down during
this stage.

Project Execution – This is the fourth period of the undertaking the board cycle that
includes the execution of the task plan. It is vital to guarantee that the undertaking plan is
executed in a viable way so the assessed objectives and destinations are accomplished. During
this stage, the project manager really must deal with individuals of the group in a successful way
by directing and supporting them through various venture activities. Additionally, the assets
ought to be facilitated in a compelling way so generally result isn't affected. In setting to the
individual venture, the on location cooking will be executed and this will guarantee that there is a
decrease in the quantity of staff individuals moving out of the premises during the mid-day break
and furthermore, the general blockage in the neighborhood less. Distinctive smart dieting choices
will likewise be proposed to the workers as a piece of CSR action.
Project Closure – This is the last phase of the undertaking life cycle and includes giving
over the finished task to the customer. The documentation is additionally given to the customer
so they can allude back to it later on, on the off chance that there is a need. This stage is viewed
as one of the main phases of the undertaking lifecycle and this is on the grounds that it helps in
keeping away from any sort of horrible just as unforeseen conditions. During this stage, the
various parts of the undertaking are investigated so that any issues or dangers are recognized and
they can be tended to in a powerful way. There can be sure difficulties that can affect the general
result of the undertaking.
Project planning tool
The project planning tools play a major role in development and completion of a project on
time. It is the major role of a company to analyse and choose the best approach for deciding
timeline related to a project. The Gantt chart for the project is mentioned below:

Analysis of the project methodologies and tools used.
There are various forms of project methodologies and techniques which may be utilised for
accomplishment of project. Some of them are:
Agile methodology: A respective methodology is considered to be flexible as well as adjustable
for permitting the face to face communication within person related to various procedures of
project. Also, it is effective one for project which incorporates specific level of difficulties and
complexities.
Waterfall methodology: Respective technique is regarded as conventional one for controlling the
task. Additionally, within this, responsibilities and stages are accomplished in systematic manner
as well as all phases of project has to be completed before next one.

For this, Waterfall methodology is undertaken as it is vital before new task initiated.
instead of this, few vital tools which would be utilised for project accomplishment is Gantt
chart, WBS and others.
Review and critically evaluate the effectiveness of the PLC in application to your project using
the appropriate theories models and concepts.
PLC would be effective in respect of particular project as this would aids team in
maintaining a concentration on it. Moreover, this is also helpful in determining the various stages
of project and evaluates its progress effectually.
CONCLUSION
Based upon the above report, it has been concluded that Operation and project management
is crucial for organisation. As both operations and project management is responsible for
analysing the design and improvements in logistics as well as supply chain management of an
organisation. Moreover, project life cyle is also performed as it aids project manager to
determine the various stages of project and evaluates its progress effectually.

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