Project management mainly deals with the planning of strategies for the activities of the business on daily basis. It includes a plan, its organisation, motivation and the control in an organisation to achieve the set goals/targets of the company. Using company “Rolls Royce” review and perform a detailed analysis on the effectiveness of the principles of operations management and also apply the continuous improvement concept to the Rolls Royce. For this report you are required to address the following questions.
Provide detailed analysis of the effectiveness of the principles of management of operations.
- In context to operations, Apply continuous improvement concept.
- To the context given, apply the PLC i.e. Project Life Cycle.
- Critically evaluate and review the application of Project Life Cycle which is used in the project given.
Operation and project management is utmost important for both the success and survival of a business firm. It is a planning and implementing in services which includes business forecasting, planning, inventory control, project procurement and supply chain management.
Below mention assignment is based on, Rolls Royce which is an auto- mobile industry. This report covers implementation of operations related to six sigma, lean principles and Taylor's theory of scientific management. This also involves concept of operations and operations management. It also brings highlights, on improving the effectiveness and efficiency of operations function. Moreover, it includes impact on technology on operational functions and information flows (Kerzner, 2017).
P1. Implementation of operations management principles
Operation management is liable for operational activities which assist in maintaining day to day work and management of organizational approaches and resources. In this, all the things are based upon division of work among an organization. It is related to Rolls Royce Company was established nearby 1904 based in Chichester, United Kingdom. It designs and manufactures motor cars and offers their cars through dealers in UK and other national border. The major principles of operations management are described below as:
- Inventory management: The goal of this principle is to promulgate knowledge and understanding of an operational management in Rolls Royce company. This provides better understanding, roles and responsibility to control stock on a business. It includes company purpose, function and their performance measurement.
- Operations planning: The objective of this principle is to provide fundamental manufacturing planning (Harrison and Lock, 2017). Rolls Royce techniques are used in each and every level of in this industry such as planning processes and strategy related to it. Managers work together to solve problems, develop plans, builds teams to divide the work among co- workers. This will bring cohesiveness while working in a team.
- Manufacturing management: This principle deals which capacity management requirements planning, related to production and requirements. It also explores about production plan, capacity and maintenance of an individual to control their wastage which are related to manufacturing. This part includes just in time manufacturing, bills of material and quantity
- Distribution and logistics: This section of principle includes the introduction of distribution and their logistics management. It involves activities related to warehouse, transportation, design, distribution channel and many more.
- Managing operations: This goal of principle is used to provide knowledge and understanding the concept and making decision related to Rolls Royce. This will assist in designing and operating functions with a friendly environment (Kerzner, 2018). This course is designed to make various decisions regarding quality, designing and developing strategies and so on.
The difference between operation and operation management are described in below as:
||From the above part, operation management is necessary function for each and every organization which helps in maintaining inventory, managing their operations and other related activities.|
M1. Six Sigma methodology and Lean principles
An operations managers adjudicate the delivery of goods and services. It assist in evaluating current and past experiences, that will help them in recommend changes when necessary or required of new procedures (Maylor and Turner, 2017). This involves initiation, monitoring and controlling of project work. The six sigma and lean principles are described as follows:
It is a quality control program which are focused on the defects and reducing systematic process changes. This is a statistical tools and technique to control over qualitative and quantitative measures. The target of six sigma is to improving their performance and customer satisfaction. The five phases of six sigma are as define, measuring, analysing, improving and controlling (Anbari, 2018).
The main objective of lean principles is to eliminate wastage of goods or services and inefficiency in manufacturing operations related to Rolls Royce. After going through various levels it contains some waste, while done correctly. This will help in to create huge improvements in cycle time, productivity, material cost related to an industry and many more.
D1. Theories, concepts or models to justify strategies of a continuous improvement plan
Concept of Operation is developed when the organization is not able to operates and meets their goals on target. Therefore, Rolls Royce divides the contribution of staff, business structure and technology to implement company's goal. It is document that records different approaches regarding decisions for an organizational assets. This includes vision, goals, operational view to achieve their goals.
Taylor theory is a scientific management theory which also known as classical management theory. These are described as :
- Flexible specialization: By using this theory it will help increasing the work efficiency and enhance their worker’s knowledge and other related activities of a business firm. This will ensure the better working conditions and improve their performance which help them in overall development and includes the work experience of an individual in Rolls Royce.
- Mass customisation: It is a process of which help in modifying customer’s needs. This will increase the customer demand which are fulfilled by Rolls Royce. By using this theory, it brings efficiency and improves there work also their reputation in market. Mass customisation will bring new innovative ideas and creativity within employees that will result in improving their performance and enhance their skills and knowledge related to designing and technology which is used in it (Silvius, 2017).
- Agile manufacturing: This is a newest strategy that is being used by small lot manufacturers. Customers are more and more demanding, companies are designing and developing products according to competitive world. This involves five factors which are considered while applying agile manufacturing theory these are as; customer focused, product design, supply chain cooperation, full company involvement and employee skill- sets.
P2. Prepare a continuous improvement plan
Operation management is a process of Continuous improvement is also known as continual improvement process. It is an ongoing process to improve, company's services and there designing of their modified cars. This help them to seek increment by doing it over time or break- through. The operation management principle are describe in detailed as follows:
- Kaizen: It is a practice of continuous improvement which is based on good processes, taking actions to contain correct cause of problems. It can be done through a work team and related to business.
- Total quality management: it describes as a summarised management system for customer- focused organization which involves continual improvement. It uses strategy, data and effective communication to integrate quality and activities of Rolls Royce.
This tool is used for improvement four step quality model. These are described in below as:
- Plan: It helps in identify an opportunities and plan for change. This will efficiency among the workers and in a business firm by using dynamic environment which enhance their working quality and also, improve performance of existing employees.
- Do: this part includes an implementation of changes on small scale which help them by ensuring there effectiveness within business. It is a necessary part to adopt changes in this dynamic environment which assist them to sustain for a longer period of time.
- Check: After doing the above step of improvement plan. It is essential for company and their workers to analyse their performance while using this step. By using data to analyse their result to change and determine the difference which are necessary in a workplace.
- Act: This is a portion of continuous improvement plan which involves changes and modification while implementing their plan. If a change was successful, implement it on wider scale and continuously assess the result while performing their activities (Holweg, Davies and Meyer, 2018).
M2. Effectiveness of a continuous improvement plan
The effectiveness of a continuous improvement plan involves more competition than ever they done. It can be done by using motivation among employees of Rolls Royce company which assist them in enhancing their performance while adopting organizational changes which are a necessary part of every business enterprise. This will be evaluated through continuous improvement plan and helps in determining the goals and assist in accomplishing their objectives. By dividing work into teams can also bring efficiency in workers which ensure their work efficiency and other related activities (Guimarães and Severo, 2017).
From the above assignment it has been concluded that, operation and project management is an essential element for each and every organization. The flexible specialization increases the working conditions and provides them better environment at workplace. Agile will only works for manufacturers if their quality built into their designs. It is generally used in large scale company or an industry which are used by highly skilled and trained managers such as Rolls Royce.
Operation management includes all the steps which turns input into output performed by organisation. It is done through planning, organising and supervising. It is carried out for overall development and growth of the project (Cheng Ryan and Kelly 2012). Rolls Royce motor cars is a British luxury auto mobile company which is a subsidiary of BMW German group. In this report there is a case study of project on Rolls Royce. The given report will discuss the different stages that can help the referred organisation to fulfil the given project. Following study will also perform the critical analysis of chosen project by theories, concept and motivation.
P3. Stages of PLC and the necessary supporting documentation for completing the project
Project management is a continuous process that includes methods,experience, techniques, knowledge and skills to attain project goals. Standard typical project passes through four phases which are initiation, planning, implementation and closure. Every project has its beginning, middle period and an ending phase.
“Project of a company - Rolls Royce want to launch a new car to increase their sales volume by 10%”
Project management life cycle is adopted in the organisation to manage all kind of project. It informs about the project have proper start and end. Between these start and end, Project life cycle is divided into four phases which are as follows-
- Project Initiation (opening of the project) :- In the first phase organisation define the project on the ground of business case, contract and statement of work. It includes vision, mission, objectives, budget name of the sponsor and project statement and risks (Besner and Hobbs 2013). On the basis of this information project manager create project charter and check the documents and its initial requirement.
Rolls Royce follows this stage by giving thought on various topics which is that after launching a car where they want to place them. Company mission is to increase the profit margin from new car. They also think about the budget which assign to the project so that it cant exceed the limit. At this stage potential investors are identified with the amount they are willing to invest.
- Project Planning (create and organising):- After initiation, the business passed through project planning. It defines all the details of the project on the basis of which it performs in the organisation. Under this planning is done in two ways which is strategic planning and implementation planning. Strategic planning focus remain on whole project while implementation illustrate about details of project (Morris 2013). It includes policies, strategies and approach through which project is fulfilled.
Rolls Royce decide about the path through which they are able to reach effective sales. There is discussion about how they launch the car and in which market at what price. They also make an effort on the positioning and segmenting of the product.
- Project Execution (implementation of the project) :- This stage is the execution of plan which was made under planning stage. It is done through spending time,money and people. This states that organisation has to cope with the every situation by making change in plans.
Rolls Royce execute the project by launching a car in the fairs and exhibition so that they can reach to the target audience. To make project feasible they spend money on its promotion and marketing campaign. The respective company also hire the efficient individual or use existing individual who have the ability to perform better (Lientz and Rea 2012).
- Project Closure (closing the project):- Project closure is a stage in which project is formally close after checking various things that whether criteria is met or not. It complete analysis of the project so that of anything left which is need to make project successful can be performed.
Rolls Royce should follow this step and do the closing after achieving the project otherwise the things learned can't be used in the future projects.. Through closure company make a check that whether they are able to achieve objective or not if yes than up to what limit.
Rolls Royce Motor car
Company overview - Produce luxury products which are Phantom, Cullinan, Ghost and Wraith types of car. The company is wholly owned subsidiary of BMW Group.
“There mission is to launch new product for increasing their market share and opportunities”
Company objective for coming two years are -
Organisation use modern method of advertisement for the promotion of product such as social media, online marketing .Firm invest in this to get long term benefits in the form of deferred revenue expenditure.
Board of directors
Work breakdown is done for effective performance of the project. This structure organise the team work into separate section so no ciaos get created in the organisation (Ahlemann and Heck 2013.).
Work break down structure
Marketing department of Rolls Royce do the promotion of the product. It can be don through social, online or personal communication. Their team launch the product by doing social media announcement. Face to face communication can be used to attract and inform the customer by fairs exhibition and display at various store.
Finance department of respective company arrange the fund to carry out the activities related to car manufacturing and launching. Finance is very necessary for every business whether small scale or large scale. Finance can be gathered through various source according to the suitability of the organisation. Fund are raised from loan, shares, friends and relatives for which interest to be payee (Martinsuo and Killen 2014).
Human Resource department appoint the suitable candidate who can perform all the activities related to the car. To perform any activity, it is necessary that there is proper placement of individual on the basis of their qualities and skills.
Research department performs design and graphic related work of the product. Research department invent the product on the basis of needs of the customer. Whereas development division look after the software and security base.
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P4. Critical analysis of the PLC
According to MG kaiser PLC is a progress of activities in a systematic way to achieve maximum benefit. The phases differ on the basis of their designation means from one business to another, one author to another and from another area.
When project passes through various phases of life cycle than it helps in overcoming many problem and develop strong bases for the growth.
Performance measurement is the process of collecting, analysing and examining the data which inform the execution of individual and firm. Performance is said to be good when it covers a wide variety of conditions like statistical measures. This process can be simple or complicated depends upon the forcing authority. It is measure through following methods-
Targets: It is the aim which person want to acquire. Like the organisation has the target to increase the production by 15% it is measured to know how much it near to the objective. The company set the target which they want to achieve, by the help of PLC Rolls Royce able to get the information of the deviation from the set goals.
Benchmarks is the level of standard which was used by the company to compare with other things. This was created from the firm own past experience and other firms experience of the same industry, or the environmental regulations prevailing in the society. Rolls Royce use PLC for evaluating performance of the company on the bases of standards. This method is not only used for measuring performance of employees it is also used for analysing company's overall performance. If any project is not up to mark than at proper time firm can drop it. This method allow firm to make plan on how the improvement or practices help in increasing the performance.
Key Performance Indicator helps in measuring how effectively a company able to achieve goal. This method is used at multiple levels to know success rate at achieving target. It was done through cost per unit productivity. per unit of measure and so on. Rolls Royce use this method to know the level of success of the organisation.
Every organisation uses these phases according to their enterprise requirement but the bases and procedure in all the situation remain same. Project life cycle has the common procedure which was follow across every industry. Phases get different on the bases of areas which are construction, academic and software work
From this report we conclude that every business has to follow many rules and regulation to make its grow and achieve success. The project passed through various stages which starts from initiation, planning, implementation and end at closure. Success of the project depends upon men, money and allocation of resources. Project plan keep changing on the basis of complexity, budget and size. It is divided into many parts so that it can be performed effectively. For example- marketing, finance, human resource and research and development.
Books and Journals
Cheng, E.W., Ryan, N. and Kelly, S., 2012. Exploring the perceived influence of safety management practices on project performance in the construction industry.Safety Science,50(2), pp.363-369.
Besner, C. and Hobbs, B., 2013. Contextualized project management practice: A cluster analysis of practices and best practices. Project Management Journal,44(1), pp.17-34.
Morris, P., 2013. Reconstructing project management reprised: A knowledge perspective.Project Management Journal,44(5), pp.6-23.
Lientz, B. and Rea, K., 2012. International project management. Routledge.
Teller, J., 2013. Portfolio risk management and its contribution to project portfolio success: An investigation of organization, process, and culture.Project Management Journal,44(2), pp.36-51.