Project Management and Operations: A Case Study on AEG's Strategies

This project analyzes the operations and project management strategies of AEG, a leading UK electronics company. The assignment covers key operational management principles, including Six Sigma and Lean methodologies, and proposes a continuous improvement plan focusing on quality, cost, delivery, and safety. It details the application of the Project Life Cycle (PLC) stages—initiation, planning, execution, and closure—with supporting documentation, specifically a business case for a new air-conditioner. The project evaluates the effectiveness of the PLC, considering factors like market demand, competitive analysis, and financial projections. Overall, the assignment provides a comprehensive overview of AEG's operational and project management practices and proposes strategies for enhancement.

Operations and Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Principle of operation management .....................................................................................1
TASK 2............................................................................................................................................3
P2 Prepare continues improvement plan based on review of operation management principles
.....................................................................................................................................................3
TASK 3 ...........................................................................................................................................4
P3 Apply each stage of the PLC along with providing necessary supporting documentation for
the project....................................................................................................................................4
TASK 4............................................................................................................................................6
P4 Review and critique the effectiveness of the PLC in application to chosen project..............6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Operations management is introduced as an area of management which is considered
with monitoring and controlling the production process of an organisation. Operations are
considered to convert raw materials and labour into finished goods and services with more
efficiency and effectiveness through this it helps an organisation to increase their profits . Project
management refers to the managing, planning and organising company resources that is essential
to complete the project and task of company. It is considered with combination of all resources
through which organisation achieve their goals in smooth and quick way. This present
assignment is written in context of AEG which is the leading UK management system that is
operating their business in electronics sector. As they are leader of home appliances market.
P1 Principle of operation management
Operation management focus on different problems or issue that are face by the
organisation instead of exploring a technique. As it is not necessary that single technique is
execute by organisation in all problems (Guang Shi and et. al., 2012). Operation activities plays
an essentials role for the development of product as this process helps production department to
manufacture best quality products and services because they interact with departments
frequently. For effective operational activities different principles are linked with organisation
that helps to launch new products such as air-conditioner easily in the market.
Critical analysis of operational principle is given below:
Six sigma- The process of six sigma work management strategy to improve the
performance of organisational activities. DMAIC is factor or method through which organisation
improve their existing products and services. For this report five component of DMAIC is
discussed that is explain as below:
Lean principle- This method is used by an organisation to reducing the waste from its
production process. For removing the extra or unnecessary items it is necessary for organisation
to repeat the process several items. As it helps to remove all waste element that is present in
process of production. With proper implementation of Lean principle it is easy for AEG to
improve their productivity, material cost and performance time. Along with this lean principle
also help a company to utilize their resources in optimum way. It increases number of outputs
and decreases the cost composition of company.
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Identifying value- Value in the product refer to the quality that is deliver by an
organisation to the customers. It is the paramount by which company analysis price of product
and offer it into market (Mir and Pinnington, 2014). In context of AEG management decide the
price of air-conditioner that is similar to the quality that they offer in market.
Map the value stream- The second of lean principle is to identify and process the value
for each product. For AEG management include factors that are necessary for their air-
conditioner as they increase the value and satisfy need of end consumer.
Create flow- After removing waste from production process or value system, the flowing
action enhance and emerge activities such as total quality management, lean principle as they
ensure that organisation is operating their activities in a smooth way.
Establish pull- The mismanagement of inventory is the biggest waste that increase the
cost production of AEG (Osmani, 2012). So the establish pull system helps to bound and limit
the inventory and effectively manage work in process through this good quality of air-
conditioner are developed by department of AEG.
Seek perfection- To finished the goods that are needed by organisation in perfect way. It
is necessary for organisation to follow the above points as it increases the value in products.
TASK 2
P2 Prepare continues improvement plan based on review of operation management principles
Basis Approach/principle Implementation
Quality To enhance the quality of air-
conditioner. The management of
AEG implement TQM to make
quality of its products in flexible
and suitable way.
This approach will allow AEG to
formulate structure that ensure quality
of air-conditioner in perfect or
sequential manner.
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Cost To modify or improve a product it
is necessary for the organisation to
invest more money in production
process. Along with this it also to
decide the cost of their new air-
conditioner.
It is essential for each organisation to
analysis the fixed and variable cost of
company. This will help organisation
to analysis price and reduce cost of
cost in the organisation.
Delivery To deliver the products on time it
is necessary for organisation to
supply their products through six-
sigma. It helps organisation to
deliver and update their product in
wide area.
The stages of six sigma helps an AEG
to deliver their products with more
efficiency that start from
manufacturing and end till end of
products as this help to define,
analyse, plan the whole production
process.
Safety TQM and six sigma principle is
suitable to emerge those technique
that ensure safety of products.
This help AEG to find out several
issue such as less cooling and low
gas.
With the implementation of useful
principle such as six-sigma help AEG
to explore the upcoming problems and
to overcome from this risky factors by
developing new policy.
Define- For the development of new product, six sigma helps an organisation to
implement formulate strategies through which more profits are generated by company from its
operating activities (Lewis and Brown, 2012). This tool is best suitable method for AEG as it
improve existing production process as well as new development of air-conditioner. While the
negative impact is that its focus on those factors that are relate with production process so some
important aspects are left that impacts on profitability of organisation.
Measure- This helps management to evaluate and measure the goals of an organisation.
This create positive result because through this company analysis their current position. In
context of AEG it helps to generate new idea and develop new strategies and structure that helps
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to bring positive results. While negative impact is that company has large numbers of ideas but it
is complex to explore that which is best to satisfy need of customers.
Analyze- In this case company analysis their new ideas as it helps an organisation to
predict that which ideas is best for them through which company reduce their manufacturing
cost. It is beneficial for AEG to earn more profits through implementing new strategy and policy
for business. Apart from this, analyze help an organisation to compare their existing policy with
new policies.
Improvement- In this stage an organisation develops the ways or methods which helps
them to overcome from loopholes (Love and et. al., 2014). Like company is not generating
sufficient profits compare to its previous years. So improvement technique helps to explore extra
cost that negatively impact on organisational goals.
Control- After analysing and monitoring whole production process of the organisation
company implement changes in those department where it is necessary. As this changes and
implementation of new technique helps to increase value in products or services. Like in case of
AEG they are already dealing in home appliances so it is essential for them to control the new
changes. Along with this it negatively impact if company does not implement changes then they
face to challenges in upcoming future.
Effectiveness of continue improvement plan- It is important for every organisation that
they take care about their new product like about quality, machine, price etc. which are relate
with organisation gaols (Ramasesh and Browning, 2014). In context of AEG, management
execute six sigma technique to make their product more effective and to avoid defect that take
place in air-conditioner. Apart from this it helps an organisation to manage their existing and
new products that increases quality of products and helps to analysis market condition so
company formulate policy in productive manner.
SMART Objective
Management of AEG is decided to formulate smart objective for the organisation that
helps them to communicate their goals effectively within all departments of organisation. Specific- The main objective of AEG is to provide goods to all segments of the market. It
helps to expand their market size. Example- It increases their market size due to large
number of customers.
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 Measurable- Management decided to control their services by determining all aspects
that helps them to measurer their performance. For these they decided to increase their
sale with 40%. To measure this organisation execute different KPI and benchmark to
achieve their objective. Attainable- AEG is one leading organisation in UK market therefore 40% is attainable by
them. Like they implement new and effective techniques in order to accomplish their
goals. Relevance- Organisation decided to launch new conditioner as they are already dealing in
UK market. So it is also related to their existing market. Like it is useful for them to
complete their goals.
 Time bound- After deciding desired objective of organisation it is essential for them to
accomplish them in minimum time period along with efficiency and effectiveness.
Example- To deliver their products within specified time period.
TASK 3
P3 Apply each stage of the PLC along with providing necessary supporting documentation for
the project
Project life cycle introduce the cycling process in which every organisation has to go
through with all stages that is implemented by organisation (Rostami, and et. al., 2015). The first
stage of this life cycle is introduction step and end with completion of result. It has four
components which are given as below:
Initiation- This is the first phase of the project in this business identify need, problem and
opportunity that exists in market such as low sale, conflicts etc. In context of AEG they
manufacture goods as per customers demand. Moreover aim of management is to provide their
goods at global level and for all segments of organisation.
Planning- When the plan is developed and approved by management, then company
decides to develop business case. For AEG it relates with statement, documents etc. in this they
divide larger project into smaller task. Like schedule, per-forma etc. so company achieve
organisation goals in smaller framework. The cut throat competitive market is major risk while
cost decided for new project is approximately more than 18,000 pounds.
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Execution- After formulation of successful plan that match with organisational goals. It
is the responsibility of AEG management to convert plan into action so they achieve their desired
results. Through implementing this action effectively in organisation it is easy for AEG to
deliver their products effectively in industry. Due to this they deliver their goods effectively
towards end consumer.
Closure- Once the project is started it is responsibility of organisation to identify and
record their resources, deliverables as this help AEG to predict out success of the project. At last
project manager evaluate their activities (Sterman and et. al., 2015). At last results of new
project is AEG earn more amount of profits through implementing them in organisation.
Business case
This task cover the whole information about the air-conditioner of AEG that will be
launched by them in future.
Executive summary- In this business case organisation predicted the opportunity that is
customers demanded those air-conditioner which provide cooling in large area. So management
of company decided to launch unique air-conditioner which save energy and provide cooling in
broad area. To satisfy needs of customer company take suggestion and review from user as well
as from employees.
Problems/opportunities- In context of air conditioner company enter in growing market
this create opportunity for business by increasing its customer base. Now AEG provides more
option to purchase home appliances from them as it increases profits for company.
Overview of the company- AEG is leading the UK market of electronics it was
established in the year 1993 and its headquartered in Birmingham, UK. So they bring innovation
in their products.
Vision & mission- AEG has the vision to offer large variety of home appliances to its
customers. For this mission of company need to develop quality products in all segments with
motive of customer favourite choice.
Objective- The main objective of AEG is to add innovative product into the sector of
electronics. Now company want to focus to make products with unique feature with specific
ideas (Taylor and Baines, 2012).
Project plan
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Project plan is the formal document that is used to control and execute the project. In
this task some points are given for plan is given below:
Cost- In regards of AEG it is essential for company to estimate the necessary cost that is
required to formulate a budget. In this case company need to predict $20,000 dollar for
organisation which help in brief research. Along with this it includes the manufacturing cost of
organisation.
Resources- For the complete of project company need different resources which involves
funds, manpower and time. It is beneficial for AEG is they hire skilled employees with adequate
funds for completion of project. Estimated time for this is 7 to 8 months.
Research methodologies- This research incudes brief and whole information about
organisation and the products that are offered by the company in market. Research department of
AEG includes company primary and secondary data to make effective results that support
organisation activities.
Work Breakdown structure
To divide a project and task the organisation implement work-breakdown structure in the
organisation through which company goals are divided into smaller sections (Too and Weaver,
2014). With effective structure of work break down company manage its task into controllable
actions.
TASK 4
P4 Review and critique the effectiveness of the PLC in application to chosen project
According to Esther Cohen project life-cycle is described as a project that undertakes all
stages to complete a project from its start stage to finish. A well defined life-cycle brings
involves order and structure of a project which is used to complete projects effectively.
According to SFU (Simon Fraser University) the life cycle of organisation represent all
administrative goals that is used to complete their research. This is used to complete their goals
through two stages which is pre and post.
As per research article for project management plan 2018, In field of management it is
the responsibility of leaders or top management to formulate effective strategies in order to
achieve their goal. While for management students they understand perspective through
monitoring different knowledge and experience for industry.
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For the success of products company needs to manage its goals according to the market
conditions. As it helps to measure the effectiveness of PLC in each stage of product
development. In present scenario AEG is dealing in home appliances so for this company need to
maintain the quality of its products. As air-conditioner project is very large that is implement by
the management and also it is totally new launch of products. For this large scale project
company need to implement Kaizen technique that will be used in organisation for the continue
changes in products. This is useful for an organisation because it helps the organisation to adopt
and modify changes in product according to market situation. Along with this it also helps the
organisation to make co-relate different activities that has to manage between small scale project
and large scale project. Moreover as compare to other technique it is cost effective it determines
that other techniques are expensive. Kaizen technique helps them to reduce their cost with
executing different methods like by reducing their unnecessary cost. With this it is easy for
management to bring out changes that are require in PLC case of air-conditioner (Walker, and et.
al., 2014).
AEG is one of the leading company that delivers quality products of home appliances in
the market. In this case company need to make those products which are creative and unique as it
helps company to gain competitive advantage from its rivals (Walker and et. al., 2014). All
products that are developed by company are tangible and virtual and the new project is deals in
introduction to decline stage. So Kaizen model helps the management to adopt change in each
and every stage of life-cycle. This model is simple to implement in the organisation while the
others are complex and generates effective results for the organisation. Moreover it helps AEG to
enhance the performance of their goals. For this company need to make changes that help to
reduce and avoid different stages which create barrier in operating activities of existing products
and to organise and manage the process of air-conditioner (Too and Weaver, 2014). Apart form
this with the proper or systematic execution of Kaizen model AEG is able manufacture more
innovative products that helps to bring positive results in the upcoming future.
CONCLUSION
According to the above given information it is concluded that operations and project
management are the essential aspect that is considered with project related information. It
includes operation, finance, marketing and other necessary function that help to expand to the
business. Operational management is very important through which quality of products or
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service is maintained by reducing the waste of products. Similarly project life-cycle is very
important for company as they guide and provide a road map to the company for specific
product. With the preparation of continues improvement plan effective and essential changes are
developed in organisation that improve production process and product quality.
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REFERENCES
Books and Journals
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solving: A distributed knowledge management perspective. International Journal of
Project Management. 32(8). pp.1371-1381.
Beringer, C., Jonas, D. and Kock, A., 2013. Behavior of internal stakeholders in project portfolio
management and its impact on success. International Journal of Project Management.
31(6). pp.830-846.
Gimenez, C., Sierra, V. and Rodon, J., 2012. Sustainable operations: Their impact on the triple
bottom line. International Journal of Production Economics. 140(1). pp.149-159.
Guang Shi, and et. al., 2012. Natural resource based green supply chain management. Supply
Chain Management: An International Journal. 17(1). pp.54-67.
Lewis, M.A. and Brown, A.D., 2012. How different is professional service operations
management?. Journal of Operations Management. 30(1-2). pp.1-11.
Love and et. al., 2014. A benefits realization management building information modeling
framework for asset owners. Automation in construction. 37. pp.1-10.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management 32(2). pp.202-217.
Osmani, M., 2012. Construction waste minimization in the UK: current pressures for change and
approaches. Procedia-Social and Behavioral Sciences. 40. pp.37-40.
Ramasesh, R.V. and Browning, T.R., 2014. A conceptual framework for tackling knowable
unknown unknowns in project management. Journal of Operations Management. 32(4).
pp.190-204.
Rostami, and et. al., 2015. Risk management implementation in small and medium enterprises in
the UK construction industry. Engineering, Construction and Architectural
Management. 22(1). pp.91-107.
Sterman and et. al., 2015. System dynamics perspectives and modeling opportunities for
research in operations management. Journal of Operations Management. 39. p.40.
Taylor, J. and Baines, C., 2012. Performance management in UK universities: implementing the
Balanced Scorecard. Journal of Higher Education Policy and Management. 34(2).
pp.111-124.
Too, E.G. and Weaver, P., 2014. The management of project management: A conceptual
framework for project governance. International Journal of Project Management 32(8).
pp.1382-1394.
Walker, and et. al., 2014. Sustainable operations management: recent trends and future
directions. International Journal of Operations & Production Management. 34(5).
Kramer and et. al., 2014. A therapeutic application of the experience sampling method in the
treatment of depression: a randomized controlled trial. World Psychiatry, 13(1), pp.68-
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Construction and Architectural Management. 21(2). pp.170-189.
Online:
Product life cycle 2013. [Online].
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