Operations and Project Management for an effective Business Organisation
Part 1 – Operations Management
Introduction
It is a known fact that operations management is crucial for any organisation to succeed in their respective markets. This report shall focus on the effectiveness of the principles of operations management along with the application of continuous improvement to the UK-based coffee chain, Costa Coffee.
Discussion
Review and Critique of the implementation of Operations management principles within your chosen organisation
Operations management can be defined as the administration of various business practices for creating the highest efficiency possible within a firm (Cachon et al., 2020). The principles of operations management within the context of Costa Coffee are the following:
Scientific management
Scientific management is a theory that was proposed by F.W Taylor for analysing and synthesising workflows. It essentially consists of four key principles (Khorasani and Almasifard, 2017). It might be observed that Costa Coffee follows the principle of OM in the form of scientific management that comprises of quality improvement, training and teamwork. The employees are provided with proper training exercises and workshops to help them offer high-quality service to the customers. Moreover, the company also has quality control in place that regularly checks the quality of the products that are produced and served to the customers. The employees work as a single unit to achieve organisational goals.
It might be observed that Costa Coffee has built a reputation for providing excellent quality products and customer service by following these principles. However, at the same time, the company has often come under the scanner for a major human resource problem: ill-treating their employees by paying them low wages, which has adversely impacted the service quality and overall teamwork (bbc.com, 2019). The company is also faced with quality problems as a result of this issue.
Lean principle
It is a known fact that the central idea of lean manufacturing is to work tirelessly on the elimination of waste from the process of manufacturing (Solaimani et al., 2019). Costa Coffee uses the lean principle of waste elimination for improving its services and cutting down on operational costs. The company manages its inventory well and ensures that over-ordering is avoided as much as possible so that wastage in the form of excess supplies and finances can be avoided as much as possible. However, in the case of over-supply, the company authorities ensure that they are stored well and managed effectively. However, on the downside, it might be observed that many a time, due to some errors or fallacies, the company faces certain production problems: it often ends up with excessive amounts of inventory that leads to higher costs and inefficient financial performance (supplychainquarterly.com, 2014). Moreover, increased finances also lead to marketing problems as the company is not left with as many funds to design and implement effective marketing and promotional campaigns.
Continuous improvement plan for the organisation
A plan has been prepared to identify and determine how Costa Coffee can improve its functions and performance in the key areas of operations management.
Aim: The plan aims to help Costa Coffee to improve its existing performance in key areas of operations.
Improvement objectives |
Method of improvement |
Available resources |
Timeframe |
Responsibility |
Marketing |
Costa Coffee can improve its marketing activities by conducting detailed market research and designing and implementing effective marketing campaigns. |
Using market research tools such as surveys and interviews
Attractive marketing campaigns and advertisements
|
31.03.2021 |
Marketing Lead and Financial Accountant |
Human Resource |
HR efficiency at Costa can be improved by engaging in regular communications with the employees to understand their issues or concerns and formulating policies accordingly. |
Current HR trends in the coffee chain industry in the UK
Development of new HR skills
|
15.04.2021 |
HR Managers |
Manufacturing |
Manufacturing can be improved by taking up activities that can help to reduce or eliminate waste. |
Appropriate raw materials and supplies |
15.07.2021 |
Head of Operations, Director of Manufacturing |
Quality |
Regular quality checks and control on the production process as well as the of the finished food and beverage products shall be done. |
Quality management software and quality management theories |
30.09.2021 |
Quality manager |
Technology |
Increased investment in R&D can lead to increased innovation and quality upgrade of products and services at Costa Coffee. |
Hiring talented workers
Allocating a minimum of £1 million in funds |
31.12.2021 |
Production director and IT department |
Table 1: Continuous Improvement Plan for Costa Coffee
Therefore, the above plan clearly identifies the areas of improvement within the operations of Costa Coffee along with the actions that need to be undertaken to achieve those objectives and deliver them within the specified date.
Review and Critique of the implementation of operations management concerning Six Sigma methodology and Lean principles
The Six Sigma methodology refers to a management approach that aims at improving the services, products and processes of an organisation by continuously minimising defects in the said organisation (Costa et al., 2017). At Costa Coffee, the operations department implements the principles of this methodology for improving and enhancing their existing processes, services and products by detecting and eradicating flaws and defects in the production of the coffee and food products as well as how they are delivered to the customers. Specifically, the company can be assumed to follow the DMAIC process for this purpose:
Define: Costa Coffee defines the expectations and requirements of the customers concerning their coffees and snacks.
Measure: The progress made in the successful meeting of customer needs is measured and this data is then collected and compared for determining shortfalls and issues.
Figure 1: DMAIC Process
(Source: Mahalingam, 2018)
Analyse: Process variations are determined at this stage and opportunities that can be leverage4d for future improvements are prioritised.
Improve: Creative alternatives are developed along with the effective implementation of an enhanced plan of action (Mahalingam, 2018).
Control: Costa Coffee uses certain KPIs such as Customer Satisfaction Rate and develops a strategy based on them for monitoring and controlling the improved process.
Lean, on the other hand, us a customer-centric approach that is focused on improving the production process continually. The primary focus of the lean principles is on reducing waste. The five lean principles are also taken into consideration at Costa Coffee for ensuing workplace efficiency. The activities of the organisation are explained as follows:
Defining value: Costa Coffee concentrates on identifying the actual needs and preferences of customers from the coffees and snacks sold by the company using online surveys and web analytics.
Value stream mapping: The authorities use the value of customers as a key point of reference and determine all the activities in terms of customer service and products that add to the customer value. Things that do not add value is eliminated (Edward, 2020).
Flow creation: Costa Coffee authorities make sure that there are no unnecessary delays or interruptions in the production of the food and beverage products and customer handling.
Establishment of pull: It is of the utmost importance for the authorities to make sure that products are produced as and when needed rather than in excess to maintain their freshness and in the right amount of ingredients to avoid wastage.
The pursuit of perfection: The authorities of the company offer attractive incentives and rewards to motivate their employees to strive towards delivering greater value to the customers.
An Analysis of the effectiveness of the continuous improvement plan using appropriate theories, concepts and/or models
A culture of continuous improvement has shown a significant boost in the level of employee engagement and minimisation in the turnover rates (Khan et al., 2019). In this light, a continuous improvement plan that has been created above for Costa Coffee can be effective when all aspects of the plan are taken into consideration. The plan’s effectiveness can be understood with the help of specific theories and concepts:
Total Quality Management
This concept describes a management system in which a firm achieves organisational advancement through commitments to customer requirements (Pambreni et al., 2019). Costa Coffee is likely to be benefitted if it manages to enhance customer satisfaction by providing them with top quality products and customer service consistently. Apart from this, the company can continue providing rewards and incentives to help employees to remain committed to their tasks and endeavours to enhance employee commitment.
Figure 2: TQM
(Source: Pambreni et al., 2019)
Apart from this, the senior authorities of Costa Coffee collect data and statistics for ensuring that their work fulfils specifications of the customers as part of its fact-based decision-making strategy. Lastly, continuous improvement is at the centre of every employee’s endeavours to improve not only their performance but also the performance of the company as a whole.
The advantages of TQM for the continuous improvement plan are that Costa Coffee can offer better quality products produced at much lower costs. Moreover, the company can reduce the variability that provides consistency that is valued by customers. This can help in enhancing customer loyalty and earns their continued business. Overall, Costa Coffee would be able to reduce turnover and save money on training inexperienced employees. However, the continuous improvement plan might run into some problems owing to the lack of deep commitment of the employees who are responsible for quality check and control.
Kaizen
This theory deals with making the workplace environment more effective and efficient by promoting a team atmosphere by improving and enhancing daily procedures, ensuring high employee engagement and making the work-life more satisfying, safer and less tiring (Carnerud et al., 2018). It might be observed that the authorities of Costa Coffee follow a Just-In-Time strategy that helps them to reduce excess inventory by matching raw materials delivered by suppliers with the production schedules. This is highly useful for the company is cutting down on operational costs as there is no longer a need to pay inventory-related expenses.
Figure 3: Kaizen
(Source: Carnerud et al., 2018)
The Kaizen theory has various advantages that can help Costa Coffee to execute the continuous improvement plan effectively. For instance, it recognises the hard work of the employees and rewards the same which contributes significantly towards higher motivation levels of the employees. Moreover, teamwork among the staff is also improved greatly as everyone is actively involved in the management of the business processes (von Thiele Schwarz et al., 2017). However, the plan might encounter certain challenges in the form of resistance to change from employees. Moreover, the company’s senior management might be hesitant in implementing Kaizen due to the high expenses involved.
Conclusion
In conclusion, it can be said that Costa Coffee has achieved some success as well as hurdles in its goal to achieve continuous improvement. This report analysed the company’s operations management efforts with the help of relevant concepts and theories and created a plan that might help Costa Coffee to ensure continuous improvement.
Part 2 – Project Management
Introduction
The Project Life Cycle denotes the process consisting of four steps that are followed by project managers to achieve successful project completion (Cha and Maytorena-Sanchez, 2019). The Project Portfolio shall focus on the application of the concept of PLC to the Crossrail project. Other relevant theories and concepts shall be used for understanding the effectiveness of the PLC in the project.
Discussion
Application of each stage of the PLC to the project
It is vital to note that the PLC that is applied in a project is actually appropriate to the work that is being carried out and divided into manageable yet distinct phases. Also, the PLC facilitates the timely delivery of projects within the allotted budget and to the expected targeted and standards of quality. As noted by Maphanga and Nel (2020), Project Life Cycle or PLC involves four phases for the successful completion of a project. Its effectiveness has been explored within the context of the Crossrail project:
Conceptualisation
This phase is termed as the ‘initiation’ phase and is essentially the starting point of any idea or project. The upper management responsible for delivering the Crossrail project has to recognise the strategic need for the Elizabeth Line. The authorities are involved in creating the SOW of the project, presenting a business case for the benefit of the stakeholders and creating a business contract. This stage of the PLC is beneficial as it helps the project management team to have a clear definition of the problem, deriving possible solutions to resolve that problem and determining the availability of the resources for supporting the project. However, any mistake in this stage, even minor, can cause the entire project to break down or fail at the initial stage itself, which is a major drawback.
Planning
As said by Allahar (2019), the 'planning' phase generally involves determining the availability of resources, the creation of a project budget and allocating tasks to specific human resources. The Crossrail project authorities also engage in these activities and have determined that 15,000 workers would be required for the project. The benefit of this phase for the project is that it answers pertinent questions related to its mission and vision and the schedule and budget (crossrail.co.uk, 2021). However, the drawback is that incorrect definition of the success criteria or project requirements can lead to failure.
Figure 4: Project Life Cycle
(Source: Maphanga and Nel, 2020)
Execution
This phase deals with the execution of the project plan. For the successful execution of the Crossrail project, the authorities focus on transforming the resources, tools and materials that are required for achieving the goals of the project (Chawla et al., 2018). The advantage of doing so is that it helps the project team to understand whether resource planning can be further optimised and identify potential roadblocks that might require change management. However, inaccurate strategic and implementation planning can be disadvantageous and result in unnecessary delays.
Termination
The final phase in the PLC is the Project Closure wherein certain questions regarding the overall requirements of the project are addressed by the authorities (Yemini et al., 2018). In the Crossrail project, the project team has answered key questions such as whether the project has been able to meet all of its criteria and whether a post-mortem has been planned for the project post its closure. This stage is advantageous for the project team as it helped the team to conclude whether the project has been completed based on the requirements and artefacts. However, this phase might witness major obstacles in case the resources used for the project are not released properly to the organisation that funded this project.
Review and Critique the effectiveness of the PLC in application to the chosen project using appropriate theories, concepts and models
According to projectmanager.com (2021), the PLC is used by a large number of organisations for its effectiveness and the benefits it offers to them. The PLC offers a structured approach for the successful delivery of a project that allows everyone working on it to monitor and identify the progress of the project and whether there are any problems or issues with any aspects of the project deliverables. Within the context of the Crossrail project, PLC has been particularly effective in helping the team to clearly define the activities for each of the four phases of the project as well as the allocation of tasks for the task responsibilities. Since the project required a total number of 15,000 workers and more than 120 million hours of strenuous labour, the PLC has served efficiently as a common roadmap for all of them to follow (crossrail.co.uk, 2021).
Business case
Reasons
The business case is based on the proposition that the current rail services in London and on the London Network network are highly overcrowded, both throughout Central London and on the London terminus approaches. Crossrail would help in making a lasting and significant contribution to improving and enhancing services to the travelling public of London by addressing the existing and potential overcrowding on both the London Underground networks and main rail (crossrail.co.uk, 2021).
Options
As Crossrail shall improve accessibility substantially as well as the travelling times between the key destinations, it is suggested that the project shall help in the delivery of Government initiatives. Other options include contributing to the planning and transport policies of the government, helping in the creation of new communities in key areas such as the Thames Gateway.
Benefits
Crossrail shall support further development in London’s business and financial services industry.
Costs
The Crossrail project shall require an estimated £1,000 million for its full construction and maintenance.
Timescales
Activities |
Start date |
End date |
Duration |
Project initiation |
01-03-2021 |
12-03-2021 |
11 |
Project planning |
13-03-2021 |
21-03-2021 |
8 |
Implementation |
22-03-2021 |
20-04-2021 |
28 |
Monitoring |
21-04-2021 |
18-05-2021 |
28 |
Control |
19-05-2021 |
24-06-2021 |
Table 1: Timescales
Risks
The potential risks involved in the Crossrail project could be improper planning, poor communication between involved parties, changes in management and resource management.
Initiation
Crossrail set objectives for identifying and contacting a wide range of stakeholders, identifying their concerns and where logical, mitigate them. Meetings were arranged with the local officers, local community and national and local politicians that had been identified from web searches as well as those who responded to the awareness campaign and initiation consultation.
Project definition
The project presents an overview of the benefits that Crossrail shall bring to passengers and London when it becomes active. Moreover, the sustainable delivery of the new railway project shall explore its construction, design and future provisions for sustainable operation.
Project scope
The main challenges pertaining to engineering shall be overcome while constructing the Crossrail is likely to lie in the challenges of ticket hall and tunnel construction under central London. However, there would still be plenty of scope for unexpected problems with time management and cost.
Planning
In this stage, the authorities of a large-scale project such as Crossrail focus on geodetic survey and preliminary engineering and obtaining technical specifications from the road management (Markosyan and Ghahramanyan, 2019). The construction team of Crossrail has boosted their efforts to complete the construction and assurance of activities for the trial run. The work was distributed by a 6-week construction blockade and ended in an 11-day blockade. The work was allocated among 15,000 women and men who have worked for over 120 million hours to complete the project (crossrail.co.uk, 2021).
Implementation
In this stage, the project team focuses on building deliverables that satisfy the project objectives (Markosyan and Ghahramanyan, 2019). Within the context of the Crossrail project, it might be noted from the case scenario that the authorities derived the efforts and work of the construction of the railway from the project plan. The workers had to work for more than 120 million hours to achieve the deliverables of the project (crossrail.co.uk, 2021). The permanent track has been installed and the new train lines tested to ensure their sturdiness and verifying their design and installation process to make sure that they match the requirements of the Elizabeth Line.
Monitoring
In this stage, a damage assessment process was carried out by the concerned authorities of the Crossrail project. The results of the assessment showed that there were no incidents that required the urgent interventions during the course of project operations. It was already anticipated that there would be a requirement for post-works repair; however, it was possible to carry out the project activities in the most planned manner that would have prevented the occurrence of these issues. Furthermore, the damage category has not specifically identified any crack locations but instead the possibilities of cracks up to the occurrence of a width.
Control
This stage deals with a calculation of the key performance indicators (KPIs) to ensure the critical success factors that shall determine the overall success of a project (Markosyan and Ghahramanyan, 2019). In the case of the Crossrail project, the suitable KPIs for determining success were higher availability of service wherein an increase in the railway services depicts success in the project. Apart from this, other relevant KPIs that the authorities considered for the project includes perceived reliability of the service and overall satisfaction gained by the commuters from the service.
Work Breakdown Structure
The Programme Theory might be considered in this context. The theory clearly explains how activities of a project are received or understood for contributing to a chain of results that produce actual or intended impacts. It includes positive as well as negative impacts that influence the successful completion of a project (De Brun and McAuliffe, 2020). In the context of the Crossrail project, programme theory can be represented as a series of boxes depicting the inputs, processes involved, outputs, results and impacts. Within a logic model, the programme theory as applied to the Crossrail project can use a range of tools like Triple Column, Realist Matrix, and Tiny Tools Results Chain.
Closely related to the programme theory is the logic model that might also be taken into consideration for understanding the effectiveness of the PLC within the context of the Crossrail project. It is a roadmap that depicts the shared relationships among the activities, resources, outcomes and effect on the project. The people directly or indirectly involved in the project can play a role in the creation of this model by considering two main strategies of development: forward logic and reverse logic (Smith et al., 2020). The former explores the key reasons behind the activities that are undertaken for a project while the latter involves clearly defining the intended value of the project.
The concept of project monitoring denotes the process of keeping track of all metrics pertinent to project management including task duration and team performance (Martynenko et al., 2017). The project team involved in the Crossrail project monitors each stage of the project management by identifying possible issues or problems, taking corrective measures needed to make sure that the project is well within the project scope and shall be accomplished within the estimated budget and most importantly, meet the specified deadlines.
Therefore, from the above discussion, it might be concluded that the application of PLC within the context of the Crossrail project is largely effective mainly due to its magnitude and the effective way in which the authorities have carried out their tasks in each stage or phase of the project. However, it might also be noted that the project authorities might be faced with certain problems or challenges at every stage owing to inefficiency in operations or mere carelessness. Therefore, it might be further concluded that the PLC might not be the ideal choice for a project as complex as the Crossrail railway project.
Analysis of the rationale for the project methodologies, tools and leadership within the PLC for the given project
For the project methodology, the agile methodology might be considered that can be highly effective within the PLC for the Crossrail project because of certain reasons. For instance, the organisational synergy can be improved breaking down the barriers and instead of building a spirit of partnership and trust around parent organisation and company goals (Altunel, 2017). Apart from this, changes in the requirements tend to get accepted more easily even in the later stages of the development of the railway project. However, it might be noted that the agile methodology might not be the right choice for complex projects such as the Crossrail project because it is difficult to estimate resource efforts and requirements.
Project management tools such as Gantt charts, timesheets and real-time dashboards are considered for the successful completion of the Crossrail project. The advantage of using these tools is that they keep the project team organised right from the start of the project by determining all of the activities and the duration they require, accountable staff and resources needed (Dasovi? et al., 2020). Furthermore, project management tools such as timesheets have a relevant role to play in the sharing of information working on multiple components. However, on the downside, a considerable amount of time is required in the learning how specific tools of project management need to be used and operated.
Project management leadership is also crucial to ensure successful PLC for the Crossrail project as it is extremely vital to direct, influence and guide the work and behaviour of the project team towards the achievements of goals and objectives. The success of the Crossrail project can be partly attributed to the effective leadership of the project manager and the senior management of the parent organisation funding the project that has helped significantly in motivating the employees towards faster and efficient goal achievement. However, at the same time, one cannot overlook the drawbacks of weak leadership and guidance that can misguide the project team members and lead to the eventual failure of the overall project (Henkel et al., 2019).
Critical Analysis on how the use of appropriate theories, concepts and models in the PLC will differentiate between large and small-scale projects
It is understood that due to the sheer number of workers working in the project, the PLC has been largely effective in helping them communicate effectively and define roles within the project team due to the effective framework it provided that was visible and comprehended by all team members. Furthermore, there is also the fact that following each of the four stages of the PLC has helped to provide a progressive understanding of the Elizabeth Line railway project. For instance, the team could identify critical areas that required greater attention such as risk management particularly during the initial stages and subsequent Project Evaluation reviews during the execution stage.
It must be noted that the effective understanding of theories, models and concepts related to project management can help in effectively differentiating between small-scale and large-scale projects. For instance, small-scale projects require establishing the terms and conditions of reference, appointing a project team, and setting up the project office. The large-scale projects, on the other hand, include developing a business case, undertaking a feasibility study and performing a phase review.
Flow and Value generation theory
This theory reinforces waste elimination by making sure that no unnecessary work is done that could consume substantial resources. This is generally achieved by having substantial and appropriate work breakdown structure or WBS, as it is popularly abbreviated, where all the tasks lusted can be completed within the deadline allocated for the project. This theory might be considered to assess the effect and workability of the Crossrail project planning, implementation and delivery. In the context of the Crossrail project, it might be observed that the authorities were engaged in completed the construction of the new railway that was initiated back in 2009. In order to ensure that the wastage of critical resources is kept to the minimal, the project authorities made use of heavy-weight tunneling machines and equipment to build the rail tunnels under the city (crossrail.co.uk, 2021). It might also be observed that the authorities were committed to using the best practices, not only with the contractors but also with the overall construction industry so as to ensure minimal waste (crossrail.co.uk, 2021).
Programme theory
This theory primarily identifies three main angles to production: transformation oriented, which is achieved by machines, workers and resources, materials-oriented and customer-oriented. The theory might applicable for assessing the workability of the new railway project (MacDonald, 2018). In the Crossrail project various factors such as health and safety and best practices play a key role in contributing to producing impacts such as the context and other programmes and projects. If a certain amount of inputs or resources such as funding and staff are readily available as was in the case of the Crossrail project, then the project can be said to be readily available for daily commuters.
As clarified by Slack et al. (2010), the programme theory, logic model and the concept of project monitoring are therefore beneficial for clearly distinguishing between large and small-scale projects. For instance, project monitoring is likely to be more intense for large-scale projects than for the smaller ones.
The logic model shall also differ significantly based on the size and magnitude of the project. Lastly, the programme theory would vary based on the activities, design and overall execution of the project that results in the achievement of the results or outcomes that are intended for the clients.
Conclusion
It can be thus concluded that PLC is critical for implementing a project in the moist efficient way possible. Furthermore, the project portfolio has also looked at the various theories, concepts and models of project management applied within the concept of the Crossrail project as well as an analysis of relevant project management methodologies, tools and leadership within the PLC for the project.
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