Operations and Project Management Analysis for Sunshine Drinks Company

This report provides a comprehensive analysis of operations and project management within the context of Sunshine Drinks Company. The report begins with an introduction to the company, its products, and an overview of operations and operations management. It then critically reviews the implementation of operations management principles, focusing on the Six Sigma approach, and assesses how effectively these principles meet the organization's requirements. A continuous improvement plan is presented, incorporating lean principles and the Deming's Plan-Do-Check-Act cycle. The report further explores the project life cycle (PLC), including a business case, project plan, work breakdown structure, and Gantt chart. It examines the effectiveness of the PLC, incorporating relevant theories and concepts, and discusses cost-saving techniques, quality assurance, and the application of these concepts to both large and small-scale projects. The report concludes with recommendations for improving the operations function within Sunshine Drinks.

Operations & Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1. Introduction of the organisation...............................................................................................1
2. Explanation of operation and operations management............................................................1
3. Review and critics of the implementation of operations management principle with the
chosen organisation......................................................................................................................2
4. Analysis of extent to which operations management of the organisation can meets the
requirements of the organisation..................................................................................................3
5. Continuous improvement as as philosophy and description of lean principle.........................4
6. Continuous improvement plan.................................................................................................5
7. Recommendations to improve operations function.................................................................7
PART 2............................................................................................................................................7
(A). Project life cycle...................................................................................................................7
A Business Case...........................................................................................................................7
Project plan..................................................................................................................................8
Work break down structure........................................................................................................10
Gantt Chart.................................................................................................................................10
Theoretical and conceptual arguments ......................................................................................11
(B). Effectiveness of PLC..........................................................................................................12
1. Appropriate theories, concepts in reviewing effectiveness of PLC.......................................12
2. Designing and implementing PLC is important in execution of successful project..............13
3. Ways in which cost saving techniques could be incorporated in PLC..................................13
4. Technique to ensure quality, scope and tenure in project implementation............................13
5. Analyses of theories, concepts used between large scale and small scale projects...............13
6. Evaluation of PLC within practical and theoretical framework............................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Operations management is an organisational function which is related to administration,
direction, production as well as controlling operations at work place (Burn, 2013). Project
management is related to initiation, planning, implementation, controlling work in a team for the
purpose of attaining specific objectives to meet success criteria within specified time limit.
Operation and project management are ongoing activities where production along with supply
functions are performed. This report is based on given scenarios emphasizing on Sunshine
Drinks Company. In addition, it includes critical review of implementation of operations
management principles, a continuous improvement plan. Furthermore, this report includes
application as well as analyses of stages of Product Life Cycle along with necessary
documentations to complete the project. It further includes effectiveness of PLC using
appropriate theories, concepts and models.
PART 1
1. Introduction of the organisation.
Sunshine Drinks company manufactures, markets as well as sales beverages related to
fruit based drinks. The company has made a reputation in the market and gained excellent
confidence of customers towards the products. Product line of the selected business includes
wide range of soft drinks made from tropical fruit flavours along with summer fruit flavours. It
also provides spring water drinks which are made from natural filtered sources (Carvalho and
Rabechini Junior, 2015). The managers of such business are making provisions to combine
various drinks and to provide new variety of energy drink to its customers.
2. Explanation of operation and operations management.
Operations refers to tasks or activities which are performed to transform data inputs along
with resources into desired outputs, goods and services with the objective to cater values to
consumers. It is among the major functions which is related to supply chains, human resources,
marketing as well as managing strategic along with day to day production of selected entity
drinks.
Operations management is a business practice which is related to converting labour as
well as materials into finished products or services with the purpose of maximising
organisational profits as effectively and efficiently as possible. It is a function which involves
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planning, organising, directing, coordinating as well as controlling key resources for the
production of selected firm's drinks and services.
3. Review and critics of the implementation of operations management principle with the chosen
organisation.
In the given scenario, Sunshine Drinks company has existing product line of wide range
of soft drinks which are made from tropical fruit flavours as well as summer fruit flavours. The
entity involves manufacturing, marketing and selling of fruit based drinks. The managers of such
business has decide to combine its product ranges and provide new variety of energy drink by
using natural spring filtered water which will be sold to large number of customers and
competitive market. Selected firm uses principle related to Six sigma for implementing
operational management in appropriate manner. These will help in launching the new variety of
energy as well as fruit flavoured drink in the market place. Description of principle is as follows:
Six-Sigma: Principle of six sigma is an approach which is helpful in finding and
elimination issues or defects related to offering products or manufacturing procedure of the
business. The company collects information and frame it by using various statistical tools as well
as techniques for measuring efficiency in the production systems (Castillo, Grande and Calviño,
2016). To resolve any issues or defects, administers focuses on sub principle or five phases
known as DMAIC. Six sigma involves DMAIC approach which includes the followings:
Define: Defining involves finding a problem. At this phase, managers of Sunshine Drinks
company identify problems, obstacles and issues which they are facing as well as requires
addressing of future ones. Using this, strategies along with plans are formulated to launch new
variety of energy drink in effective manner. If problems are not appropriately and carefully
recognised it will lead towards rigidity as well as bureaucracy. Such situations will result in
delays along with stifle creativity.
Measure: Measure includes measurement of current system. At this phase, organisational
managers measures problems as well as obstacles which are faces and identification of root cause
is done. Executives of selected firm measures various issues as well as identify solutions so that
operations along with functions can be conducted in proper manner. Under such procedure,
trained workforce plays essential role in identifying or monitoring issues. For small businesses,
making such spendings on training as well as developments is not possible.
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Analysis: Analysis describes the root cause of problems or issues. At such phase,
managers of respective entity analyses the collected information or data and performs further
actions to find the root causes of issues, defects as well as opportunities for improvements. If it is
found that the
particular idea, strategy or procedure is not relevant then drop the older one and adopts after
proper analysis the new ideas, strategies which are beneficial or relevant.
Improve: Improve involves corrective actions. At this phase, managers of selected
business conducts analysis as well as identify the areas where improvements are required in
relation to the formulated strategies or plans. Various improvements are done in the target
procedures by designing distinct creative solutions for the purpose of fixing along with
preventing problems. Approach of Six sigma requires long time period for responding in positive
manner. For such approach it requires huge investments and time periods for improvements.
Control: Control includes finding support as well as maintaining gains. At such phase,
managers along with leaders of Sunshine Drinks company applies solutions to get over or rid
from issues or problems for grabbing opportunities. Operations are controlled and monitored
which are performed by work staff as well as guidance is provided to accomplish the tasks in
appropriate manner. It also involves development and implementation of continuous monitoring
plan and making modifications wherever required. If the improvements or solutions are not
appropriately as well as properly followed then various chances of getting negative results and
occurrence of worst situation can happen (Cheng and Lam, 2012).
Using Six Sigma principle, appropriate information is collected to conduct operation
procedure in effective manner. It will help in launching and providing new variety of energy
drink to target market in appropriate manner.
4. Analysis of extent to which operations management of the organisation can meets the
requirements of the organisation.
Operations management plays an important function which helps in meeting
requirements of any business in effective as well as efficient manner. Such management is
responsible for management of all activities which are related to production of product or service
delivery. The requirement of operation management at Sunshine Drinks company is to produce
as new variety of energy drink and provide it to its customer in competitive market. For such
requirement operation management helps in planning, organising, directing, managing,
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controlling, coordination and supervision of activities involved in production, manufacturing as
well as delivery procedure. Managers carefully plan all the procedures, strategies and makes sure
that they are implemented in such a manner which helps in attaining objectives and delivering
products of business to targetted customers on time. At great extent, operational management
ensures meeting essential requirements of selected business.
5. Continuous improvement as as philosophy and description of lean principle.
Continuous improvement as a philosophy is a tool which helps in identifying
opportunities for the purpose of streamlining the work as well as reducing waste. Such concept is
adopted by various organisations to identify opportunities for savings, expansion and growth. It
is a formal practice which describes set of guidelines to process management practices in
effective manner. Continuous improvement helps selected business in minimising costs,
preventing overage in relation to producing and delivery of new variety of energy drink as well
as enhancing overall effectiveness of the enterprise. It is used by managers to identify
inefficiencies in organisational teams whose tasks or motion of operations equates to money.
Lean principle is an approach which helps in eliminating waste along with delivering
best customer experiences for the purpose of promoting business products. As per the principle,
there are various wastes related to defects, waiting, inventory, extra processing, non utilised
talent, overproduction, transportation. Lean principle understanding involves five stages and its
sub principles accordingly works (Ferraro, 2012). Explantation of stages in context to Sunshine
Drinks company are the followings:
Identify value: Values are identified and defined as per customer needs related to
specific product. Managers of selected business identifies values of energy drinks and applies
them to attract as well as encourage customers in effective manner. With this they are able to
increase their profitability and market share. If certain values are not identified on time and
properly then there are chances that market share can decreases and reflects reputation in
negative manner.
Mapping value stream: At such stage, administers of respective firm designs various
frameworks along with guidelines and are used while performing operations in appropriate
manner. The managers identify steps which are not relevant or appropriate and remove them
from the further procedures. When quick solutions are required mapping lacks resolving issues
as it requires huge time to frame appropriate solutions.
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Create flow: After the removal of waste and obstacles, next task is to check the
remaining steps are able to conduct the flow smoothly without any delays, bottlenecks or
interruptions. When the work is performed in flow it will result in fulfilment of needs as well as
demands of customers in efficient ways. If managers lacks the responsibility to create flows it
will lead in inappropriate flow of operations in smooth manner.
Pull: When the work is performed as per improved flow, time to customers can also be
improved. At this phase, managers of chosen organisation carefully evaluates or analysis
available and required stocks for conduction procedures from production to delivery as per the
stated time period. It helps in production of new energy drink as per the demands or
requirements of customers. If products are produced in advance and demand is not as expected it
will result in losses to the firm.
Perfection: Such stage is related to production as well as manufacturing procedures of
any business. It is very difficult task to use same procedures, various modifications along with
updates are done as per the needs or requirements in order to attain objectives and goals in
effective manner. If the managers fails to follow above steps then they have to face many
difficulties in pursuing perfection.
6. Continuous improvement plan
Continuous improvement plan involves set of activities which are related to improving
products, services, systems or procedures on continuous basis along with regularly reviewing
them. Continuous improvement plan prepared under Six sigma approach uses Deming's Plan-
Do-Check-Act for supporting better improvements (Klaus and Edvardsson, 2014). It is considers
as an important mechanisms to build systematic methods and addressing issues or obstacles
related to production of new products. On the basis of the cycle, Sunshine Drinks company has
developed project improvement plan to produce and deliver new energy drink is as follows:
Plan Do Check Act
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A production procedure is
based on six sigma approach
which ensures:
- Delivery of quality energy
drink with minimal or zero
errors, obstacles.
-Competitive advantage
through providing new
energy drink.
- Acquisition of major
proportion of market share
by allocating budgets.
- Production of more
packages of energy drink
either in large bottles or
small bottles.
- Energy drinks must include
nutritious elements,
vitamins, proteins along with
attractive packaging.
- Raw material used in
procedures in production
would include food
additives, unharmful acids,
alpine water, tropical fruit
flavours, summer fruit
flavours, natural spring
water.
A small production
of new energy
drink be produced
which will act as a
guidance in
production of same
drink in different
quantity.
Small changes
must be added in
the taste and data
must be gathered
based on the
alterations or
changes and
analysis must be
done to achieve
effectiveness with
our errors.
Experts must be
appointed which helps
in checking the taste,
texture, colour,
flavours and many
more while operating
and making changes
as prescribed.
Using total quality
approach, managers
can focus on
increasing quality of
products produced
(Koskinen, 2012).
Using six sigma
concept, procedures
can be conducted ion
appropriate as well as
effective manner to
attain goals of
business.
At this step,
managers compares
the standard quality
with the actual
achieved quality. It
will result in
knowing whether
the product is as per
the set plans or lacks
at some points in
relation to
producing new
energy drink.
Six sigma method
helps in analysing
delivery process of
the chosen company
to fulfil demands
related to energy
drink in effective
manner (Willcocks
and Reynolds,
2015).
Performance measurement model: Such model is used for measuring effectiveness in
continuous improvement plan in order to measure performances in business projects. Using such
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model, managers of chosen business analyses the extent of effectiveness of PCDA plan as well
as attainment of objectives or not. Such plan is effective for Sunshine Drinks company as it
guides the executives to have control on business activities and implement suitable strategies
port plans which results in betterment of firm (Kosztyán, 2015).
7. Recommendations to improve operations function.
Some of the recommendations to improve operations function using continuous
improvement principles are the followings:
Improve administrative efficiency: The managers should improve administrative
efficiencies of tasks related to product procedures. By using business management tools,
efficiencies in relation to planning, budgeting, staffing, managing information can be improved
which will result in saving time as well as money.
Take benefits from under utilised resources: Administrators can improve operation
function by taking benefits from the under utilised or unused resources to get satisfactory results.
PART 2
(A). Project life cycle.
A Business Case
Before taking initiation or starting a new project, an organisation focuses on preparing as
well as presenting well structured documents in systematic manner in order to deal with issues or
obstacles. Any business case can turn the problems into opportunities or solutions for the growth
in future.
Company overview Sunshine Drinks company manufactures, markets and sales fruit
based drinks to its customers. Now the firm is planning to produce
a new variety of energy drink which is a combination of tropical
fruit flavour, summer fruit flavour and natural filtered sources.
Vision Vision is to provide energy drinks to wide range of customers.
Objective Objective of selected business is to attract maximum customers
and achieve major proportion of market share by launching the
energy drink and achieving profits.
Strategy Managers along with executives frames plans and strategies to
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launch and provide new energy drink at various places and
encouraging customers to buy them.
Financial budget Particulars Amount
Raw material or ingredients 100000
Staff salary 79285
Research and development 60000
Total 239285
The budget of launching new energy drink at market place is
239285 Pound. The financial managers need to arrange funds to
achieve desired results.
Marketing Plan To launch a new product it is very important to formulate
marketing plan to perform activities in effective manner.
Marketing plan of selected firm:
 Segmentation: At such stage, managers of Sunshine
Drinks company segments the market by adopting method
of geographic segmentation as well as demographic
segmentation top launch its new energy drink (Parker,
Kunde and Zeppetella, 2017).
 Targeting: At this phase, chosen business targets specific
market and age group to launch its energy drink.
 Positioning: At this stage, product is positioned in the
mind of targetted consumer profile using quantitative
features.
Follow Up At this phase, all the previous steps are analysed and activities are
monitored to find out deviations and taking appropriate actions.
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Project plan
Project plan includes stages in project life cycle in relation to the project. Description of each
stage is as follows:
Project initiation: This is the starting stage of business idea. Managers of selected
business identifies objectives and plans feasibility study to identify problems in the path of
performing activities. Feasibility study helps in determining positive as well as negative
outcomes in the project.
Document of Feasibility Study for Sunshine Drinks company:
Business problems Market Share of Sunshine Drinks Company.
Study requirements Intro diction of new energy drink with the combination of tropical
fruit flavour, summer fruit flavour and naturally filtered sources
Study results Successful
Project planning: Planning involves deciding in advance what to be done, hone to be
done and many more for future (Reschke and Schelle, 2013). The managers of chosen business
plans all future requirements in advance in relation to producing new energy drink and
completing the project on time. At this phase Gantt chart is prepared which involves pictorial
representation of schedules. Administers check individual performance, duration as well as
sequences of tasks to be performed by the workforce.
Project execution: At this stage, all the plans are put into actions and feedback reports
are provided. Managers of selected business prepares feedback reports related to difference
between actual performance and standard performance. These are used for defining
performances of people in completion of project.
Project closure: It is the final stage in project life cycle. It begins when the project is
completed and products are provided at market place. Managers of respective organisation
prepares rep[orts related to product review. Reviews of product are essential as they determine
the effectiveness of project to met with objectives as well as helps in taking various actions.
Document of Project Review for the project:
Project Review
Risk Management ✓ (Excellent)
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Quality of the product ✓ (Good)
Cost Overrun ✓ (Nil)
Scheduling ✓ (Controlled)
Error-free ✓ (Very Good)
Work break down structure
Completion of project requires focus on team work which involves various sections of
managers. Work break down structure developed by Sunshine Drinks company is as follows:
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