Operation management is the management of all activities and tasks in the business. It is crucial so that firm can easily run the production and operation functions in management. Through this all tasks can run efficiently and effectively. This supports operations functions of the company. Hence organization can fulfil all requirements of customers (Antonio Martins and Ramos Martins, 2012). Hence it can increase the satisfaction level of all users. This helps them in earn more profits and support in increase their market share. Assignment discusses about BSH company which is a home appliances firm. It was found in 1967 in U.K. It sells products such as Fridge, mixture grinder, stoves, air conditioners to people. Report explains about the application of continuous improvement in operational management. It describes about the use of PLC in the project. It further explains about describes about the receiving application of PLC in project.
P.1 Review and critique of operational management principles
Operations management is controlling production and manufacturing process in the firm so that it can run successfully. Through this different decision are made such as of project planning, design, control of stocks and creation of operation's strategy in their business.
Operational management principles:
Company have to follow all principles so that their production process can run smoothly and it also helps in creation of strategies. Principles followed by BSH are:
Reality: They follow a principle which means that they are focusing on issues and problems rather than techniques and tools regarding any method. Identification of main issue of problem helps in develop better solution to deal with it. Through this, managers of BSH can remove all the issues which is very essential for effective completion of production process.
Organization: In this, all components are similar and are connected with each other. It helps them in earning more revenues.
Fundamentals: In this, success comes from using of new techniques and 80% can be achieved through following the discipline etc.
Accountability: Managers are responsible for performance of all employees. They monitor that targets and goals are achieved by staff members or not. With help of this, managers and leaders of BSH can monitor the performance of employees through which company can easily achieve its set business objectives.
Variance: If there is difference between actual and standard performance then it has to be removed immediately (Beringer, Jonas, and Kock, 2013). With this, BSH can easily identify the gap between actual and standard performance and can identify the ways to remove the same.
Causality: It is important for important manager find root cause for the problem so that they can find effective solution for their problem (Blomquist, and et. al., 2010).
Managed passion: It is crucial that project manager motivates all staff members so that they can work properly with full dedication and passion. By encourage employees to perform well, managers can achieve the set objectives and can provide better services to its customers. Through this, managers of BSH can achieve customer satisfaction.
Humility: Manager can see the limitation of trial and error methods which helps them in improving their mistakes and hence they can work in effective manner.
Success: Project manager can evaluate all aspects and recent trends so that it can use latest strategies to deal with it. Through this it can easily gain attention of more people.
Change: Project manager of BCS has to change their theories and models of change so that can maintain sustainability in their activities. Through this they can create new methods and techniques so that their production and manufacturing process can run smoothly and successfully.
It is a technique in which there is no wastage of goods and services. So hence as a result BSH can start production of new television sets which is their main objective. Hence they can produce good quality of goods with minimum wastage. This process has 5 steps:
Define: In this process identification of users’ needs and requirements and hence as a result they can create various goals. By clearly defining goals firm can give responsibility to all employees and hence all staff members can perform their task effectively and efficiently.
Measure: In this stage BSH evaluates the features of process which they are currently following and hence they can improve the weak points in their processes. Through this they can easily improve their performance.
Analyse: In this stage various methods are used by company which can check their performance of all processes such as standard work, mistake proofing etc. To check capability of all techniques pilot run is also used. Through this they can create new methods and processes.
Control: BSH can use different system so that they can find errors and they can improve them. So hence managers can easily execute processes such as statistical process control, visual workplace etc. so that they can monitors methods and processes (Brauers and Zavadskas, 2010). This process in continuously repeated so that it can produce good quality of products.
With help of six sigma BSH can improve its offerings and can fulfil the requirements of its target customers. Main focus of this method is to satisfy the needs of customers that’s why managers formulate the approaches as per that so satisfaction of customers can be achieved. One main issues related with this approach is that it lacks in flexibility which create unnecessary delays in production process.
Lean principles helps in giving good quality of products with use of less resources (Fernández-Sánchez and Rodríguez-López, 2010). Hence company can use them. So lean principles followed by BSH are-
Identification of value: In this company can determine amount of money that consumer can pay for many products. Project manager tries to reduce wastage in products so that it can be sell at reasonable price to consumer.
Value stream: In this process all methods and techniques which can easily deliver the products to all customers are performed. It helps in removing those techniques which do not create any value to all users.
Flow: In this process sequencing all task are performed so that there is flow of goods from introduction to finished stage. Hence through this production process and delivery process of television can run smoothly.
Pull: In this all processes and activities are performed by company according to user's needs and wants. It helps in removing unnecessary activities and tasks. Hence it can fulfil requirements of all users.
Perfection: In this perfection can be maintained as removing unnecessary activities which can increase the costs. Hence all process can run smoothly and successfully. Thus process of television sets can run smoothly (Fleming and Koppelman, 2016).
BSH can apply these principles in production of their television, with this, company can ensure minimum wastage of its resources which improve the overall efficiency. It also helps in utilise all the resources and better satisfy the needs of customers. With effective implementation of these principles company can create and maintain good relation with customers.
P2. Preparation of continuous improvement plan based on operation management principles:
Continuous improvement plans is important and it is followed company so that they can continuously change their products and services. So BSH can use this process so that they can create new methods and techniques of production of television sets and hence they can deliver it to users. Continuous plan is described below:
Existing performance levels
Improvement in strategies
There is lack of information and data so thus customers do not purchase the goods and services. It leads to reducing sales of company.
Firm can use adequate promotional strategies such as advertising, online promotion etc. This helps in gaining attention of more users. So hence it can increase their sales.
Through using this strategics it can give full information related to attributes and benefits of television set to all customers and hence they can easily attract customers. Thus they can increase their sales.
After Sales service
They do not provide much after sales services to all users. Company has less customer services centre so hence users cannot solve all their issues. Through this it can hamper all work and procedures of company.
More customer centres can be developed so that they can provide effective services to all users. Users suggestion can be taken so that company can change in its strategy and activities. Through opening of many customers servicing centres all customer problem gets solved.
By providing effective an efficient services all customer can get satisfied. So hence as a result firm can gain attention of all customers. It also helps in maintaining brand loyalty. Through this it can easily expand and diversify their operations. Hence it can maintain good position in minds of al users.
Improvement plan and its effects:
From above continuous improvement plan it is very beneficial useful to BSH company. Through this it can effective produce television set in proper and effective manne (Gunasekaran, and Ngai, 2012).Turner, R., 2016 r. They can change thus methods and plans so that they can create good quality of products. Hence flow of process from introduction to finished stage can run smoothly and successfully. Hence there is no defects and flaws in the process of production and manufacturing process (Lenfle and Loch, 2010). Thus as a result they can perform all activities in proper and efficient manner. Thus they can deliver television sets to customers in time. So hence it leads to increasing the level of satisfaction of all users. This helps in increasing the image of Brand in front of all customers and in market.
Strategies for implementation of plan
Continuous improvement plan assists project manager in continuously creates new methods of producing goods in firm. So hence they can provide good quality of television sets to all users. It leads to increasing in sales and profits of the firm. So hence BSH follows all activities which are described below:
Good employment relation: Manager can maintain good relation with all employees. Through thus they can perform their work effectively and efficiently. Hence they an give good results. Thus they can maintain good and unique and strong position in firm to of all users and in market.
Proper communication channel: Project manager follows a particular channel of communication so that they can solve all problems and issues of all customers. Hence as a result the can perform their work in an effective and efficient manner. Through this all activities run smoothly. This results in increasing of more revenues and productivity. Hence it leads to expansion of firm.
Organizational theories and models:
Different theories and models are used by firm so that company can continuously change in their methods and strategies. Theories such as bureaucratic, classic and scientific approaches are used which helps in improving the efficiency and effectiveness in all activities and tasks. So BSC company can use these theories and models so that all employees can perform in an better manner. Through this all activities and task run inn an proper manner. Hence BSC can easily sell television sets to users and can increase their satisfaction level. This leads to generating of more revenues and in increasing of market share (Mir and Pinnington, 2014).
Various approaches of operation management are there which can be used by managers to measure the effectiveness of continuous improvement plan which can be understood by the following points:
TQM (Total Quality Management): With this approach, BSH can ensure production of its products with good quality as per the set standards. Through this company can better satisfy the needs of its customers and can sustain them for long time period. With implementation of TQM, BSH can maintain the quality of its television.
Kaizen: This approach helps to create continuous improvement which ensure ongoing improvement. It is based on cooperation which ensure effective transformation of raw materials into finished goods. This is used to eliminate waste, lower defects and encourage innovation so company can offer innovative solution to the problems of its customers.
Six Sigma: This approach provides an opportunity to enterprise to design and use effective delivery methods. Through this, company can reduce cost and time of delivery which help in attain customer satisfaction.
Lean principles: These principles could be use by managers of BSH to ensure safety in production process. Through this manager could focus more on safety and can offer maximum value to its customers.
In addition to this, various principles of operations management are there which can be use by BSH to ensure effective production TV sets with maximum quality. These principles can be understood by the following points:
Principles of variance: This principle could be use by managers to implement cost effective methods and techniques which help in manage inventory and ensure maximum utilisation of other resources. With help of this company can minimise the cost of inventory and can carry out production process in effective manner.
Principle of reality: As per this principle, operations management require to emphasis more on overall issue rather than the techniques. With help of this managers can easily identify the issue and can find better solution for it.
P.3 Use of product life cycle stages
BSC has to launch a television set which is of 58 inches. So hence they to conduct a market research so that they can identify all needs and requirement of all users. As a result, they can change all methods and processes related to production, marketing and promotional procedures (emsel and Wiewiora, 2013). It helps them in earning of more revenues and in increasing their production. After identifying their needs company can easily produce television sets according to their needs and convenience. Hence it leads to increasing customer satisfaction level of all users. They have to add such attribute which are different from other competitors. Product life cycle is method through which product from different stages from initial development to obsolescence level. Stages of PLC are-
Project initiation: In this stage ideas or thoughts of staff members can begin. In this objectives of project are evaluated. Need and cost is also monitored. There are 2 parts of it. It includes:
Business case: In this step needs are to be monitored of project. So BSC monitors need of project after performing a research analysis.
Feasibility study: In this step Project manager of BSC company can monitor targets, resources and costs of creating new television sets. It is crucial so that firm can develop strategies so that objectives of selling more television sets can be achieved.
Planning stage: In this stage firm can create different plans and policies. Various strategies are designed are made so that BSC objectives can easily be achieved. Project manager can determine quality of products, risks in selling new television sets. Manager can provide direction to all employees regarding creation of good quality of television sets etc. They can predict obstacles and create plans to remove it.
Project execution: In this project manager communicates different employees about their roles and responsibilities and hence the perform all activities and task in the business. Proper interaction take place between project manager and employees so that they can perform their work with efficiency.
Project monitoring and control: In this stage project manager can monitor the work performed by all staff members. They also evaluates that staff members can perform all work properly. They can use different methods such as key indicators and track variation between actual and standard performance so that their performance can be improved (Ramasesh and Browning, 2014).
Project closure: In this stage they can close this project. So all staff members are given instructions correct the mistakes and flaws in the project. By improving mistakes and flaws staff members can improve them and can perform well in firm.
There is a business case in which new product that is television set is manufactured. It is important so that all people can watch daily news and other advertisements at home. This is new product launched by BCS which deals with home appliances firm (Robichaud and Anantatmula, 2010).
Importance: BCS deals with only home appliances so it is important for company to launch new product. New television can show clear images and pictures which is earlier not possible with using old products. Through this people can watch advertisements, news and pictures by sitting at home. So hence it can give more suitability and convenience to all people. So this product is important for company so that all buyers can easily purchase them.
Target market: Their main target market is to capture all customers belonging to various age. As it is suitable for all age groups So hence it targets to whole population belonging to different group.
Cost benefit analysis:
Costs: BSC can consider various factors related to production,manufacturing processes so hence it can gain more users. It has different costs related to manufacturing and production costs.
Benefits: Company can increase their sales and hence it has high net profits as compared to other costs so hence it have high benefits as compared to costs.
Work breakdown structure for new product:
It refers to process of project manage. In this process it helps in dividing team work into different divisions. So hence as a result there is creation of hierarchical structure which is created in firm. It is monitored by project manager so hat work can be properly divided in various activities.
Gantt chart: In this schedule of project is determined. In X axis time intervals are given. In Y axis there is work and activities are mentioned (Söderlund, 2011).
P.4 Reviewing and effectiveness of PLC with different theories, concepts and model
There are various theories and models which can helps project manager to save time of all activities. Hence they can control the time of completing all activities and tasks. Thus as a result they can save their time on performing all tasks. Two models which can be used by BCS company are (Management Theories & Concepts at the Workplace, 2018):
PERT: It is a technique in which probabilities of completing time is determined. It is important so that BSC can find out the time of completing all activities and tasks in firm. Through PLC stage can easily be monitored in the firm. As project manager can easily fund time and hence they can create plans and policies related to completion of time in all the activities and tasks. So thus it can easily be implemented in PLC stage (Subramanian and Ramanathan, 2012). Through this technique project manager can easily evaluate. Hence after this it can be used in it also helps in implementing the plans and strategies in the firm. So it is very beneficial situation for the firm.
CPM: Critical path method is a technique in which starting and completion time of each activity can be determined. It is important so that firm can finish all activities of project in time. Through this BSC can use this PLC stages. Hence through this they can find time that is earliest starting time and latest finish time. Thus it gives different benefits to various projects. So hence project manager can apply this model in initiating stage in which they can find resources and time of completing the project. They can create different plans and strategies so that time can be saved as they have used this model. Hence as a result they can implement these strategies and plans in their respective project. So at last two stages monitoring and closing can also be effectively done through using this model.
Project life cycle is very important for every company. Through this BCS company can easily create new product development plans and policies. PLC process is very important for every project so that all tasks and activities can be easily be implemented in the firm. As it provides a structural process and different stages though which new product can easily be launched in the market. It helps project manager to to determine that stages from initiating and completing stages are determined. It helps in finding weak points or deviations and can take necessary steps to improve those variations. They can also determine different risks in the project so that all activities and tasks can easily be performed. Through this they can also fund different advantages and benefits deriving from the project after creating PLC stages.
BSC can also determine the facts and figures which are required in the project through this stage. Important advantages of PLC in BCS are described below:
- It helps in reducing the defects in performing all activities by staff members. So as a result they can take corrective actions to improve these deviations. Through this it can give opportunity to staff members to perform efficiently and effectively.
- By using PLC stages project manager can give direction to all staff members so that they can perform their role very effectively. This is important so that they can have knowledge of activities and hence they can finish their task in time.
- Thee are different stages which can be provided to project manager so hence as a result they can fund weak points and can also find stronger areas. Through this they can easily take decisions such as improving weak points and working more on stronger areas so that activities can be performed in an better manner. Through this all task can be completed in time. Hence it saves time of project manager in evaluating all activities which are performed in firm. It leads to success and growth of BCS.
Operations and project management is very important for every company. Through this they can manage all activities and tasks in business. Hence it leads to effective functioning of production process. Reviewing of different operational management principles are followed in company. Continuous improvement plans is created. Application of PLC stages in firm and evaluate effectiveness of PLC with different theories and models.
Related: Importance of Project Management
- Antonio Martins, V. and Ramos Martins, M., 2012. Outsourcing operations in project management offices: The reality of Brazilian companies.Project management journal.43(2). pp.68-83.
- 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.
- Blomquist, T. and et. al., 2010. Projectâ€asâ€practice: In search of project management research that matters.Project Management Journal.41(1). pp.5-16.
- Brauers, W. K. M. and Zavadskas, E. K., 2010. Project management by MULTIMOORA as an instrument for transition economies.Technological and Economic Development of Economy.16(1). pp.5-24.
- Fernández-Sánchez, G. and Rodríguez-López, F., 2010. A methodology to identify sustainability indicators in construction project management—Application to infrastructure projects in Spain.Ecological Indicators.10(6). pp.1193-1201.
- Fleming, Q. W. and Koppelman, J. M., 2016, December. Earned value project management. Project Management Institute.
- Gunasekaran, A. and Ngai, E. W., 2012. The future of operations management: an outlook and analysis.International Journal of Production Economics. 135(2). pp.687-701.
- Lenfle, S. and Loch, C., 2010. Lost roots: how project management came to emphasize control over flexibility and novelty. California Management Review. 53(1). pp.32-55.
- 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.
- Pemsel, S. and Wiewiora, A., 2013. Project management office a knowledge broker in project-based organisations.International Journal of Project Management.31(1). pp.31-42.
- 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.
- Robichaud, L. B. and Anantatmula, V. S., 2010. Greening project management practices for sustainable construction.Journal of Management in Engineering.27(1). pp.48-57.
- Söderlund, J., 2011. Pluralism in project management: navigating the crossroads of specialization and fragmentation International Journal of Management Reviews. 13(2). pp.153-176.
- Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy Process in operations management.International Journal of Production Economics. 138(2). pp.215-241.
- Turner, R., 2016. Gower handbook of project management. Routledge.