Assignment 1 528 operation management PDF

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ASSIGNMENT 1 FRONT SHEETQualification BTEC Level 5 HND Diploma in BusinessUnit number and title Unit 16: Operations and Project Management (528)Submission date Date received (1st submission)Re-submission date Date received (2nd submission)Student name Student IDClass Assessor nameStudent declaration...

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ASSIGNMENT 1 FRONT SHEET Qualification

BTEC Level 5 HND Diploma in Business

Unit number and title

Unit 16: Operations and Project Management (528)

Submission date

Date received (1st submission)

Re-submission date

Date received (2nd submission)

Student name

Student ID

Class

Assessor name

Student declaration I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that making a false declaration is a form of malpractice. Student’s signature:

Grading grid

P1

P2

M1

M2

D1

rSummative Feedbacks: rResubmission Feedbacks:

Grade: Assessor Signature: Internal Verifier’s Comments:

Date:

Signature & Date:

Table Content I.Introduction..............................................................................................................................2,3,4

II.LO1:

Review

operational

and

criticize

the

effectiveness of

management principles..................4,5,6,7,8,9,10

III.LO2: Apply the concept of continual improvement in operationalcontexts..............................1 1,12,13,14,15,16,17,18,19,20 IV.Summarized conclusions.........................................................................................................20 V.References...............................................................................................................................21

I.

Introduction

In this exercise an analysis of corporate issues including review and criticism of the effectiveness of operational management principles will be conducted. Apply the concept of continual improvement in operational contexts. In which will conduct reviews and critique the implementation of principles management activities in the foreground organization. Prepare a continual improvement plan based on reviewing and moderating principles management practices in the foreground organization. Select Samsung Corporation as the company to solve the problems and applications in this report. Report Structure LO1. Review and critique the effectiveness of operations management principles. P1. Conduct a review and critique of the implementation of operations management principles within an organizational context. M1. Review and critique the implementation of operations management in relation to Six Sigma methodology and Lean principles. LO2. Apply the concept of continuous improvement in an operational context. P2. Prepare a continuous improvement plan based on the review and critique of operations management principles within an organizational context. M2. Analyse the effectiveness of a continuous improvement plan using appropriate theories, concepts and/or models.

LO 1&2 D1. Apply appropriate theories, concepts and/or models to justify strategies of a continuous improvement plan for achieving improved efficiency.

Information Samsung Inc : Samsung Group is a huge multinational corporation of Korea whose headquarters is located in the Samsung Town complex, Seocho-gu district, Seoul city. This group currently owns many subsidiaries, chain of sales systems and representative offices on a global scale, most of which are operating under the Samsung brand name, this is a multidisciplinary conglomerate ( Chaebol) has the largest scale and economic influence in Korea in particular and is also one of the most expensive technology brands in the world today. According to two magazines Interbrand and BusinessWeek, the total value of the Samsung brand was ranked 43th among global corporations ($ 5.2 billion) in 2000, 42nd ($ 6.4 billion) in 2001, 34th ( 8, 3 billion USD) in 2002, 25 th (10.8 billion USD) in 2003, 21st (12.5 billion USD) in 2004, and 20th (14.9 billion USD) in 2005. Export production volume Samsung's products directly contributed to the Korean economy, with Samsung alone exceeding 18.1% of the total national export volume, reaching 31.2 billion USD in 2000, and exceeding 20.7 % to $ 52.7 billion in 2004. In addition, the tax amount that Samsung Corporation paid to the Korean government in 2003 was 6.5 trillion won, which is 6.3% higher than the national tax. The market value of Samsung Group in 1997 reached 7.3 trillion won, equal to 10.3% of the entire Korean market, but this image was expanded in 2004, when the total value was 90.8 thousand. billion won, equal to 22.4%. In addition, the annual profit of Samsung Group was 5.8 trillion won in 2001,

11.7 trillion won in 2002, 7.4 trillion won in 2003, and 15.7 trillion won in 2004. shows a solid progress. II.

LO1: Review and criticize the effectiveness of operational management principles :

1. Conduct a review and critique of the implementation of operational management principles in the organizational context. * Operation : Operations is the task of handling a company's internal operations such that it performs as well as possible. If you produce goods, sell products, or provide services, the design and management of behind-the-scenes work must be supervised by any small business owner. The basic definition of operations will depend on your sector and the stage in which your company is based. Improving activities also means strategically thinking about the systems and processes.( Kiisel, 2020) * Operations management : Operations management ( OM) is concerned with the management of capital that actually generate the programs and goods of the enterprise. In general, the resources consist of persons, products , technology, and records, but can go wider than this. These services are pulled together by a set of systems, so that they are used to provide the organization's primary service or commodity. * Operation function : To achieve the best possible operating margin, operational departments seek to balance costs with sales. Based on the needs of the client and the company's capacity, managers effectively buy, grow and sell to the client. (2017, Investopedia) *Relationship of Operations Management : It is important to understand the relationship of operations management with other functional areas in the overall organizational strategy. The cost of product sold is not the only sector in which cost reductions are carried out. Both aspects of operational, manufacturing, administration and logistics costs need to be considered by corporate executives. Strategies would balance the company's overarching mission and vision. For example, a production room is a place where products are produced in the domain of an enterprise. Usually, it will be done in factories, factories in enterprises. The work of the production department is very important, they consist of many parts that have many different functions and tasks. In particular, the

production manager will be responsible for monitoring, coordinating and ensuring production on time to hand over to customers.( quantrinhansu, 2020) 2. Conduct a review & critique of the implementations of operations management processes within an organizational context : *General process : The term "Process" as "a specific method of performing a process or work." The process is usually expressed in writing. As such, it is common for units to develop "Processes" to implement and control their "Processes". A process can be intended to control multiple processes, and vice versa, a process can be controlled by multiple processes. ( Akarca, 2018) *The key approaches to operations management : Operations Administration incorporates a range of technical principles that differ within and across organisations in terms of suitability and implementation. Capacity planning, inventory control, supply chain architecture, performance metrics and overall quality improvement are, but are not limited to, main factors. The principles of procurement, supply chain, efficiency and capability preparation of goodsbased enterprises are extremely important. Six Sigma emerged within the business sphere to describe various concepts and is often confusing. Next, it's a benchmark in statistics. Any market method that creates less than 3.4 flaws per 1 million chances is deemed successful. A defect is anything produced outside of consumer satisfaction. Second, it's a preparation and credential curriculum that teaches Six Sigma's basic values. The Six Sigma acceptance belt levels, ranging from white belt to black belt, can be reached by practitioners. Finally, it's a theory that supports the notion that it is possible to quantify and maximize all company activities. *Advantages of Six Sigma : In the context of gradual changes to a commodity or a service, Six Sigma has a established track record of adding value and maintaining consistency to the performance of a company. It can also be used to simplify operations in the supply chain and improve customer loyalty. Six Sigma 's advantages go beyond simplistic problem-solving and take into consideration the whole manufacturing process, from the raw materials to the finished product, as opposed to the final product alone. Six Sigma is a proactive approach that detects possible issues before any form of failure is suffered by the organization and makes

advice. In many categories within a corporation, Six Sigma may be applied, directly affecting profitability and reducing costs. It's important to remember that the Six Sigma standard for producing goods is a reliable endorsement for B2B clients. *Disadvantages of Six Sigma : Six Sigma inspects minute-by - minute market operations and produces vast quantities of analytical evidence, resulting in time-consuming and complex procedures. And, since at its core it is a method of continuous management, implementation of its protocols also leads to a rise in the total costs. Often, when a organization introduces Six Sigma, concerns emerge because the organization only reflects on initiatives approved by Six Sigma and forgets its own mission statement or initiatives. It can limit innovative concepts for small companies that favor ingenuity and innovation, which need some risktaking to be introduced. Companies have to find accredited Six Sigma organizations lacking formal qualifications to educate their staff or perform in-house training. In this case , the cost of small companies implementing Six Sigma is too high to be practicable. Even big corporations continue to provide workers with a lot of instruction to learn the system. *Lean manufacturing : In 1990, the word "Lean production" first emerged. It is used as the name for the technique framework of lean development, constantly developing market processes. The multiple stages include: lean development, lean business and lean thinking. In the latter spirit, Lean focuses on recognizing and eliminating customers' non-value-added activities, but increasing costs in an organization's manufacturing and service supply chain activities.

*Advantages of Lean Manufacturing : Waste Minimization-Lean manufacturing will effectively eliminate waste inside a processing plant, perhaps the most valuable advantage of the method. This method removes obsolete or aging inventory as corporations remain on vast amounts of inventory and waste. The method also lowers costs inside the operation, along with waste minimization.

Enhanced client partnerships-Lean relies predominantly on existing clients rather than concentrating exclusively on the interests of all clients. This is how you can establish good and stable relationships with trustworthy clients and sustain a constant flow of revenue that comes in. Lean Infrastructure-In order to satisfy near-term inventory demand, a lean infrastructure involves only working with certain components: construction, materials, products , machinery, and labor. Inside the process, the factory does not waste any space which helps the plant to get as close to production quality as possible. ( planettogether, 2018) *Disadvantages of Lean Manufacturing Equipment Breakdown-Lean does not have much room for mistake. Equipment or labor loss can lead to severe lean inconsistencies that can lead to the whole operation falling behind. Employees might only switch on to another computer in other mass processing plants if one burned out. There are not many more locations for workers to travel to in Lean, so everything is used inside the operation. Delivery inconsistencies-This output downside allows for delivery inconsistencies in the sense of equipment malfunction. This lean drawback will impede customer partnerships, drive customers to rivals, and lose you sales. ( planettogether, 2018) Comparison: Lean and Six Sigma : Comparison between Lean and Six Sigma shows that Lean is a theory to recognize and remove nonessential and non-value enhancing operations to streamline output and thus increase efficiency, whereas Six Sigma is a technique for change management to handle, optimize and redesign market processes to reduce process variations to 3.4 defects per million possibilities and thus increase them. The basic distinction between Lean and Six Sigma is that "Lean" is a philosophy and a program is Six Sigma. Lean aims to inculcate a transformation in corporate culture and lasting change in employee behaviour, to recognize and eradicate waste, while Six Sigma is a methodological process intrusion that does not attempt to modify the organizational culture or attempt to change employees ' behavior permanently.

Approach

"Lean" first recognizes the need for a process or operation and, if the operation provides benefit, aims to optimize that activity by increased process flow and productivity enhancement. In particular, Six Sigma focuses on removing process differences in production without looking at the merits of those processes in the scheme of things . Lean, as the name implies, under its guiding philosophy that any operation or function that does not add benefit entails waste that needs removal, strips down procedures to bare bone basics. On the other hand, Six Sigma does not challenge whether the procedure or function contributes value and functions under the guiding theory that waste is any difference in the current method or production. Under the premise that day-to-day shifts in infrastructure, the environmental climate and other variables often leave space for progress, Lean is a constant and continuing strategy. In the other hand, Six Sigma is a mission-based strategy, and the Six Sigma project community disbands to meet the goals of the set transition, leaving metrics or monitoring maps to stop rolling back. Ownership The possession of ideas contributes to a significant disparity between Lean and Six Sigma. By motivating and inspiring the entire workforce to recognise and reduce waste in their area of operation, Lean aims at continual progress through the entire value-stream of activities. It is an evolving mechanism inherent in the company's practices, which has to be embraced for productivity by the entire staff and in all facets of the company's operations. In the other hand, Six Sigma is a statistical technique that seeks to remove differences within a single project or field of operation, and the findings remain restricted rather than pervasive within that particular area. Full organisation. Six implementations of Sigma belong to special interest groups, such as the group for inventory reduction, the group for industrial scrap reduction, and those expressly developed for this interest. Procedure Implementation Lean helps to bring in improvements in organizational policy, structure, and operations by transferring expertise and integrating a learning organization's community around the board. Lean implementation is applied by instruments such as Value Stream Mapping, Five S, Kanban, and poka-yoke or error-proofing, and by principles such as manufacturing Just in Time. The DMAIC (Define, Calculate, Evaluate, Execute, and Control) or DMADV (Plan, Calculate, Evaluate, Plan,

Verify) method and the use of methods such as Failure Mode Effective Analysis (FMEA) and Analysis of Variance ( ANOVA) was used to execute Six Sigma. Until applying the approach and testing for performance, the Six Sigma team determines underlying factors for variation, checks theories for alternative alternatives, and validates the study.  Lean and Six Sigma each have their applications and go hand in hand quite much. Although Six Sigma remains more willing to meet pressing consumer demands, Six Sigma alone is unable to increase the overall pace of the transaction or optimize investment returns for investors. Lean Six Sigma (LSS) aims to merge the strengths of these two strategies and reduce the drawback of both. In order to recognize and eradicate nonvalue adding behaviors and procedures, the Lean Six Sigma approach includes using lean methodologies, and then using Six Sigma methodologies to identify and eliminate process variance. The development of operations management principles in modern context : The administration of operations refers to the mechanism in which planning, coordination, and oversight are involved. These procedures ensure much greater profitability and productivity enhancement within a production operation. Operations Management's 10 principles include the following: Fact-Operations control, instead of just the methods, has to concentrate on the overall challenge. This is since a universal approach would not be able to present any instrument in itself. Organization-All about the operation is intertwined within a manufacturing plant. All of these elements have to be predictable and reliable. The operation would not be able to produce a profit result without it. Humility-The method of trial and error is incredibly expensive, which is why it is important for executives to recognize that they have limits. This will save money and time and, in the long term, help production. Performance-While there are varying meanings of what performance should be within your manufacturing plant, your client's concern should still be taken into account. You have to keep your clients happy and come back if you want to be profitable.

Accountability-Being responsible is essential to operating a production operation. Managers are supposed to be able to set rules and metrics while still monitoring whether these expectations are being followed on a regular basis. Responsibility is a must. Causality-Conditions are somewhat similar to signs of which there are typically root explanations of these two things. You will have to eradicate the root trigger in order to rid yourself of the issue permanently. Shift-Change is nice occasionally. It is important to change things with new theories and solutions available for manufacturing operations. It will mean that consistency is managed in the long term. Customer collaboration-Knowing what consumers are purchasing and doing. This will give you a detailed understanding of what you can do to strengthen the brand and organise development families accordingly. Knowing the market-Analyzing the rivals is important. Understand their clients, processes , products, and competitive advantage in some shape. Quality Management-Quality control within a production operation is critical. Your consumers may be unhappy with the product you are developing without quality control. You have to use the right tools technologies, and partners for a reliable and robust product. III.LO2: Apply the concept of continual improvement in operational contexts 3.Repare a continual improvement plan based on review and moderation of principles management for the selected company. *Operation management at Samsung Corporation Company controls the product chain and distributes the service. Essentially, the creation, development , manufacturing and delivery of products are found in operation management processes. As Manager Operation, they control the quality of control and the quantities of procurement, transportation , logistics and assessment, all the working of the Company h...