Table of Contents
TOC o “1-3” h z u 1.0 Introduction PAGEREF _Toc524004057 h 31.1 Introduction to the Company PAGEREF _Toc524004058 h 32.0 Operation and Operation management PAGEREF _Toc524004059 h 32.1 Interrelationship Operations with other functions PAGEREF _Toc524004060 h 52.2 Operation management process at Maliban Biscuits Ltd PAGEREF _Toc524004061 h 63.0Approach to operation management PAGEREF _Toc524004062 h 63.1 Flexible specialisation PAGEREF _Toc524004063 h 63.2 Agile manufacturing PAGEREF _Toc524004064 h 73.3 Lean production PAGEREF _Toc524004065 h 74.0 Objectives of Operational Performance PAGEREF _Toc524004066 h 74.1 Quality Performance Objectives PAGEREF _Toc524004067 h 84.2 Flexibility Performance Objectives PAGEREF _Toc524004068 h 84.3 Dependability Performance Objectives PAGEREF _Toc524004069 h 84.4 Speed performance objective PAGEREF _Toc524004070 h 94.5 Costs Performance Objectives PAGEREF _Toc524004071 h 95.0 Four v’s strategy PAGEREF _Toc524004072 h 96.0 Principal and concepts of the operation management for the organisation PAGEREF _Toc524004073 h 106.1 Lean manufacturing PAGEREF _Toc524004074 h 106.2 Just in Time (JIT) PAGEREF _Toc524004075 h 116.3 Kanban PAGEREF _Toc524004076 h 116.4 Total quality management PAGEREF _Toc524004077 h 116.5 Kaizen PAGEREF _Toc524004078 h 126.5.1 5S Strategy PAGEREF _Toc524004079 h 137.0 Recommendation PAGEREF _Toc524004080 h 16
1.0 IntroductionThis report consists of principles of operations management of a selected organisation. Firstly, the report shall review and critique the implementation of operations management principles about Six Sigma methodology and lean principles. Secondly, the report will provide a continuous improvement plan based on the operating principles and, thus will analyse the effectiveness of a continuous improvement plan using appropriate theories, concepts, and models. Finally, the report will apply the appropriate theories, concepts, and models to justify strategies of a continuous improvement plan for achieving improved efficiency.
1.1 Introduction to the CompanyMaliban is the largest biscuit manufacturer of Sri Lanka. Maliban was established 60 years ago by the founder Angulugaha Gamage Hinnyappuhamy. Further Maliban manufactures a range of crackers, cookies, and wafers sold in over 100 000 stores in Sri Lanka. Moreover, maliban global reach extends to more than 35 countries and every month maliban produces 25million packs of biscuits. Additionally, Current Chairman of the company is Mr.A.G.R.Samaraweera has led the company for the past four decades and, this board of directors consists of second and third generation family members of the founder.
2.0 Operation and Operation managementEvery organisation flows the operation operations, this is the key function of the business activity of the organisation. In this operation that is responsible for producing organizational goods or services. The definition of operation good and service would include all activities which had any connection with the production of goods and service in practice every activity except the core marketing or selling and accounting or finance activities (Johnston, 2007).
Figure SEQ Figure * ARABIC 1: Organisational functions
Source: Author developed (2018) based on organisational functions
Operations management is integral to the development and delivery of good and service throughout the global economy. In essence operation management is about the creation of customer value through the effective and efficient management process (Klassen and Menor, 2006). Furthermore in this Operations management or Operations performance is the key to any manufacturing unit of every organisation. This is straightly related to organisation production, procurement, organisation Supply Chain, Maintenance ; manpower of an organisation. The performance of these operation management areas leads to profitability, customer satisfaction ; brand growth of a company (Thuso, 2016). Moreover one of the most important aspects of Operations management is an Optimum utilization of resources and accordingly achievement of the Budget ; Business plan (Thuso, 2016).
2.1 Interrelationship Operations with other functionsThe roles of operations management function and the decision were complete by the operations managers relate with other functional areas in business. As most, there are three main functional areas in the organisation( Johnston et al., 2002). Finance marketing and operations as main supporters in the business yet other functions also supporting an organisation as well. Although these functions extent in diverse activities they must interrelate accomplish the goal of the organisation and drive the business moving onward too.
Finance function responsible for controlling of the funds and judging the need for capital investment such as equipment or relocations, collecting money and covering make decisions on make-or-buy in the organisation and also plant expansions. Finance function cannot exertion with no accepting operations concepts and required. On the other hand, operations managers cannot formulate the financial plans exclusive of appreciative the key and method of evaluating financial investment as well. It is necessary that both functions must appreciate every one other and work together.
Marketing function generates require for the company’s goods and services by considerate customers needed and discover out the way to construct and develop the new markets. The sale will not occur if they do not appreciate what operations can create or what due date can congregate or cannot and what type of customisation operations to convey. Thus, the main required of marketing and operations effort intimately together and both of them are significant as marketing given that predict of demand which operations will create the goods and services and transfer to customers.
Production and operations, the main answerable on operations task are to produce goods and services and distribute to customers on time. As mentioned before, operations function will join with every functional area by the operations roles.
Human resources liable for enrollment and labour relation and they must appreciate job necessity and worker skills when they appoint people in every position. The operations managers require appreciating job market trends, labour cost when hiring or lay-off and the cost of an exercise guide to competence in employees’ management.
2.2 Operation management process at Maliban Biscuits LtdMaliban the largest biscuit manufacturing company in Sri Lankan market. The operation management of Maliban Pvt Ltd providing customer needs of the business innovation in a fast-changing market by adapting the bottom-up perspective of strategy in its operations. This is a key driver of competitive advantage through constant innovation to develop new products that provide customers with new perceived benefits of Maliban. Moreover Maliban operations with a perfection operational technique which is to provide a high level of quality and design that stays aware of top-level stranded material. Also, the maliban maintained the high level of quality slandered with their business activity. Thus it underpins the organisation to build aggressiveness in the market yet support their prosperity into the long-term performance (Maliban, 2018).
Approach to the operation management3.1 Flexible specialisationPiore is SabeI (1984) argue that the history of industrialisation has detained open one main choice to the system of mass production, namely craft production, based on the flexible exercise of common use machinery by skilled workers, able of manufacturing a broad sort of products for continually altering markets. The key basics of the flexible specialisation concept are multi-purpose equipment and innovation, Interaction networking, combined effectiveness and Clusters of enterprises or small firm communities (Dijk, 1995).
3.2 Agile manufacturingIn this Agile Manufacturing is basically a business thought. Its point is very straightforward – to put every organisation way out before organisation essential rivals. In this Agile manufacturing can be characterised as the capacity to survive and thrive in an aggressive situation of consistent and erratic change by responding rapidly and adequately to evolving markets, driven by customer outlined product and service. An organisation to accomplish Agile Manufacturing, undertakings should unite an extensive variety of learning in the plan of an assembling framework that envelops customer, suppliers (Muralidar, 2015).
3.3 Lean productionLean production system started as a manufacturing system to upgrade efficiency and profitability. Its essential concentration is the speed of output by waste disposal.The word “lean” in the term basically means no excess, so lean production can be translated simply into minimal waste manufacturing. Waste is anything that does not increase the value of the final result. Numerous businesses besides assembling are presently embracing lean standards (Deiterich, 2017).According to the Maliban flow the lean management process in their business activity.Company flows this lean manufacturing techniques in the important process measures must be de?ned and the cost of processing must be quanti?ed. Line productivity is based on the number of line workers and product cycle time of the company.Furthermore, the use of lean production is now being practiced by maliban which aim to increase their productivity in the whole market, improve product quality and manufacturing cycle time, reduce inventory system, reduce lead time and eliminate manufacturing waste (Personal communication, 2018).
4.0 Objectives of Operational PerformanceSlack et al. (2007) describe five essential operation performance goals which enable the organisation to measure its operating performance. The quality, speed, dependability, flexibility, and cost are key performance objective. Every last one of this performance objective will be talked about as far as how they are estimated and their essentialness to hierarchical aggressiveness (Greasley, 2007).
4.1 Quality Performance ObjectivesAs indicated by Andy Neely, the creator of “Business Performance Measurement: Unifying Theory and Integrating Practice,” quality is more than conformance to a detail. It’s likewise how well an item plays out its proposed work, the allure of the item’s highlights and the dependability of a product (Nordmeyer, 2018). According to the Maliban products are high-quality standard level in the Sri Lankan market due to this customer more like to buy this brand product and they also satisfied with this brand. They were getting raw material from Prima Agro Foods and Serandib Floor so people known about the companies due to this people more like this brand products. Also, Maliban has an ISO average value for their products such as ISO 14000 and ISO 22000 Standards.In 2005, Sri Lanka’s extremely regarded business magazine LMD conducted a study to select the 50 Most valued Sri Lankan Entities. Maliban ranked number two in the Food and Beverage Sector and was positioned twentieth in the overall rankings. Also, obtained Super Brand status.
4.2 Flexibility Performance ObjectivesFlexibility requires that a company can produce products of different levels of quality and with various design modifications. This is the ability to being able to change it either, what, how and when so that the company is enabled to provide four types of requirements such as product/service flexibility, mix flexibility, volume flexibility, delivery flexibility. Moreover, Flexibility inside the organization is also important as it speeds up responses to change, saves time and maintains dependability (Neely, 2002). According to the Maliban operation performance is flexibility. However, they every six months design the new variety of biscuits due to this adapts new tends of the organisation.
4.3 Dependability Performance ObjectivesThe dependability performance objective is set up after over time and at last, it abrogates every single other factor. It doesn’t make a difference how cheap, quick, innovative a product or service is, if the customer can’t depend that it will be conveyed in time, at the correct quality, the customer will be lost. Constancy inside the company is likewise vital as though spares time and cash as it decreases ineffectual utilization of time and assets. Likewise, this dependability gives stability inside the workplace, as disturbance impacts the nature of tasks time which goes past time and costs (Nordmeyer, 2018).
4.4 Speed performance objectiveSpeed objectives refer to the rate at which a company can produce sales quotes and how quickly and often a company can distribute its products, at this speed increases the value to the customer. Speed is also significant internally because it reduces inventory, reduces risks (Neely, 2002). The organisation of maliban produces 3000 Metric Tonnes per month (Personal communication, 2018).
4.5 Costs Performance ObjectivesCosts performance objectives describe the variation in unit cost because of changes in the volume a producer produces and the variety of products produced.According to the Maliban cost, performance objective is they maintain economies of scale in their operation this helps to Maliban reduce cost by increasing the production level. But, an organisation preserving economies of scale will beneficiate the firm and the economy in terms of profits and scarce resources (Personal communication, 2018).
5.0 Four v’s strategyAccording to Slack, Chambers, and Johnston (2010), all companies have related operational processes but they vary in a number of aspects in conditions of Volume, Variety, Variation of the output, but also in stipulations of customer’s Visibility of the product. Thus, the ITO model is supported by the analysis of the Four V’s mode
Volume- The volume of their operation is key to how their business is organised. Essential to their operation is the repeatability of the tasks their employees are doing as well as the systemization of the work, where standards and procedures drive the way in which each part of the job is carried out (Teague, 2017).Maliban introduces new designs every 1year in small quantities, which normally means high costs to sustain this strategy. Indeed, the company is able to keep low-cost to the shorter time frame necessary to replace the empty storage with new items, which lead to attracting customers that increase the sales because they always find new products.
Variety – The volatility demand for clothing and the short life cycle due to the seasonality changes imply to plan fewer assets in an organisation and continuous creation of new designs (Ferdows, Lewis and Machuda 2004).Maliban replied to the uncertainty of the product with high capital investment, which improves the flexibility.
Variation in demand – Maliban is known as a Fast-Food retailer because it is able to supply in each season a larger number of articles compared to the other competitor brand in Sri Lanka. This means that the company is further elastic due to the small amount formed per products, which means accessibility in the racks due to the high ability to issue new products every year.
Visibility – high visibility requires high unit costs that are mostly Maliban due to the competitive advantage of its efficient supply chain (Caro and Gallien 2010).
6.0 Principal and concepts of the operation management for the organisation6.1 Lean manufacturingJapanese automobile manufacturers achieved high quality and low costs by removing buffers and impediments from the system, hence the term “lean. In this Lean Manufacturing, also called Lean Production, is a position of tools and methodologies that aims for the constant abolition of all waste in the production process. The main benefits of this are lower production costs, increased output, and shorter production lead times.
6.2 Just in Time (JIT)The Just in time (JIT) manufacturing has been implemented successfully in Japan for the past 20 years. JIT has been depicted as an inventory control technique and the Japanese Automobile Industry is perceived as the developer of JIT stock and administration logic (Aghazadeh, 2003). It is a philosophy and additionally a method that aides an assembling organisation in sorting out and dealing with its business all the more successfully, and in arranging and controlling its tasks all the more proficiently. Moreover, JIT philosophy is based on the concept of delivering raw materials when needed; producing products when there is a requirement to, recover the quality of the product. The fundamental objective of JIT is to eliminate all waste from the entire supply chain and to improve product continuously (Gyampah and Gargeya, 2001). According to the Maliban doesn’t maintain a JIT system in their business operations hence they flow stock keeping procedure in their production process.
6.3 KanbanKanban is a visual system for handling organizational work as it moves through a process. Kanban visualizes both the process (the workflow) and the actual work passing through that process. Likewise, this Kanban framework in a perfect world controls the whole esteem affix from the supplier to the end buyer. Along these lines, it stays away from supply interruption and overloading of products at different phases of the company product manufacturing process. Kanban requires constant observing of the procedure. Specific consideration should be given to stay away from bottlenecks that could back off the production process (Anderson, 2018). Organisation flow the Kanban system they have some key benefits such as simple and understandable business process.
6.4 Six SigmaLean Six Sigma is a business strategy in which the focal point is to advance the bottom line and raise customer satisfaction. In this six sigma philosophies are interrelated to statistical process control, stochastic control (relating to probability), and engineering process control. In addition, it requires procedure and data analysis, optimisation methods, lean manufacturing, the design of the experiment, analysis of variance, statistical methods, mistake proofing, on-time and or on-schedule shipping, waste reduction, and consistency as assurance. It’s a process capability that continuously improves the quality of the product and maximises productivity (Taghizadegan, 2016).
6.4.1 DMAIC methodologyThe DMAIC (Define, Measure, Analyze, Improve and Control) is the classic Six Sigma problem-solving process. Moreover, in this classic or traditional Six, Sigma methodology was designed to solve a problematic process or product and or service offering to regain control (Kaid and Noman, 2016). The world Most of the product manufacturing companies using this type of methodology when they adopt six sigma. The DMAIC methodology uses a process-step structure, the five DMAIC steps are
Define: This is the problem of the organisation and scopes the work effort of the task group. The description of the problem ought to incorporate the torment felt by the client as well as business and also to what extent the issue has existed. So, identify the customers the project objectives, and time span for completion. The suitable type of problem has a scale and unlimited scope from employee issues to issues with production process or adverting (Terry, 2017).
Measure: In this stage is the present organisation process or performance. Identify the information is accessible and from what source. Build up an arrangement to assemble it. Accumulate the information and condense it, recounting a story to depict the issue. This more often than not includes usage of graphical apparatuses (Terry, 2017).
Analysis: This stage analyses the information that was gathered in the measuring stage to distinguish the potential underlying drivers of the problem. A few quality tools are utilised to decide main drivers and its relating impact on the issue, for example, Pareto chart, cause and effect analysis, five why analysis, and disappointment modes and impacts analysis. The output of this stage exhibit the underlying drivers that in all likelihood influence process variety (Kaid et al, 2016).
Improve: The improve stage comprises of creating and choosing the ideal or close ideal answers for the best outcomes and most strong execution. There are numerous tools utilized for the improvement process, which are conceptualising and benchmarking. Four stages are required to do improve stage (Kaidetai, 2016).
Control: in this control stage, the improvements are ensured to be standardised, revised, documented and institutionalised. The new process is monitored via your defined metrics and other measurement tools to assess their capability over time (Terry, 2017).
6.4 Total quality managementIn this total quality management is a framework for creating competitive advantage by focusing the organisation on what is important to the customer. In addition to making a product right the first time is one of the principal objectives of total quality management (Shim and Siegel, 1999). Besides in this Total quality administration has been coined to explain a philosophy that makes appreciate the driving force last leadership, mean, preparation, and development initiatives. For this, TQM requires the assistance of those eight key basics such as Ethics, integrity, Trust, Training, Teamwork, Leadership, Recognition, Communication (Padhi, 2018). Besides Total Quality Management is a strategy by which administration and workers can end up associated with the nonstop change of the production of good and service. It is an arrangement of quality and management tools expected at rising the business and dropping victims due to wasteful practices (Gilbert, 1992).
The use of Total Quality Management delivers all-around advantages and makes the organisation more competitive. In the new business condition set apart by the demolition of boundaries and free stream of information and products, the organisation retains their competitive advantage by reducing product costs, enhancing existing product and improving new product level(Nayab,2011). Moreover, TQM is a business methodology that enables every organisation to accomplish this and substantially more. Also, Total Quality Management demolishes the myth that increased quality results in increased costs and decreased productivity. TQM demonstrates that quality is really the way to better productivity, and better efficiency and positions quality as a basic part of key business advantage (McDonough, 2011).
6.5 KaizenKaizen (Kai „Zen) is a Japanese term that means continuous improvement, taken from words ‘Kai’, which means continuous and ‘zen’ which means improvement. Some translate ‘Kai’ to mean change and ‘zen’ to mean good, or for the better (Ravindra, 2016). Kaizen implies modification or improvement continuous improvement including everybody in the organisation from top administration, to chiefs at that point to bosses, and to laborers. In Japan, the idea of Kaizen is so profoundly ingrained in the brains of the two directors and specialists that they frequently don’t understand they are thinking Kaizen as a client-driven methodology for development (Thessaloniki, 2006).
Kaizen is based on building small changes on a usual base of organisation performance. Also, this always helps in improving the productivity of the Maliban and effectiveness while reducing raw material waste. It can be something from wastage control is critical to the lightening level of the machine needlepoint. Each little alter can assist to develop productivity, quality, working condition and environment in the factory.
6.5.1 5S Strategy5S is the principles of work environment improvement derived from the Japanese words seiri, seitan, seiso, seiketsu, and shitsuke. In English the five Ss are respectively described Sort, Set Shine, Standardise, and Sustain. This principles focus on effective workplace organization starting from the physical environment and gradually to functional aspects, which are influential to 5S simplifies your work environment, reduces waste and non-value activity while improving quality efficiency and safety (Grover, 2012). Numerous assembling facilities have picked to take after the way towards a “5S” working environment authoritative and housekeeping philosophy as a component of lean manufacturing or continuous improvement process. The term alludes to five stages – sort, set in order, shine, standardise and sustain that is also at times identified as the five pillars of a visual place of work. Moreover, 5S is the ideal device to distinguish the principal change extends in the organisation to dispose of waste. While sometimes viewed as a housekeeping strategy, it is really an innovative management framework that enables individuals to think lean, making ready for the reception of Lean standards in the organisation. Understanding the 5S strategy is one of the establishments of Six Sigma standards, and can be to a great degree advantageous for organisations of various sorts (Luciana, 2017).
Figure SEQ Figure * ARABIC 2: 5S Model
Source: Author Developed (2018).
Sort: Sort is the identification of the best physical organisations work environment. It has been another way characterised as Sort, Systematisation or Simplifies. It is the arrangement of ventures by which identify things which are being held in the working environment when they shouldn’t or are being held in the wrong place (Intrieri, 2013).
Set in Order: -The objective of this set in order progress is to analyse techniques for capacity that are compelling and productive, sometimes referred to as visual management and after that make a workplace that is sorted out, ergonomic, uncluttered and effortlessly safe. A few things to ask during this progression may be which particular things are expected to play out an undertaking? What number of things should be promptly open and where would it be advisable for them to be found
Shine: – The Shine stage of 5S focuses on cleaning up the work area, which means sweeping, mopping, dusting, wiping down surfaces, putting tools and materials away, etc. Although fundamental cleaning, Shine additionally includes performing consistent upkeep on hardware and apparatus. Making arrangements for support early means organisations can get issues and anticipate breakdowns. That implies less sat idle and no loss of benefits identified with work stoppages. Shining the work environment won’t sound energising, but rather it’s imperative. Also, it shouldn’t simply be surrendered over to the janitorial staff. In 5S, everybody assumes liability for tidying up their workspace, preferably once a day. Doing as such influences individuals to take responsibility for space, which over the long haul implies individuals will be more put resources into their work and in the organisation (Graves, 2012).
Standardise -Now that the initial three stages are in play, it’s an ideal opportunity to institutionalise these new practices. All workers in the organisation should be incorporated into the production of an arrangement of guidelines that will end up being the new standard for the workspace. At the point when these new standards and best practices are executed, the old propensities will soon cease to exist and be supplanted by the more proficient examples of conduct. New standards, in any case, will most likely require some oversight and implementation until the point that they are habitual reminders (Intrieri, 2013).
Sustain: – When standard methodology for 5S is set up, organisations must play out the progressing work of keeping up those strategies and refreshing them as important. Maintain alludes to the way toward keeping 5S running easily, yet additionally of keeping everybody in the company included. Managers need to take an interest, as do workers out on the assembling floor, in the distribution center, or in the workplace. Maintain is tied in with making 5S a long haul program, not only an occasion or here and now venture. In a perfect world, 5S turns into a piece of an association’s way of life. Also, when 5S is maintained after some time, which is when organizations will begin to see consistent positive outcomes.
Continuous Improvement Plan
Continuous improvement plans such as total quality management and just-in-time management are prevalent in organisations (Swamidass et al., 2001). The main purpose of such programs is maintaining a sustained effort at improving the efficiency and effectiveness of work-processes (Imai, 1986). These programs consist of combinations of practices that aim to encourage and enable the participation of frontline personnel in procedure development (MacDuffie, 1995).
The PDCA Cycle gives a simple to understand the structure for iterative development. It depends on real-life experiments, and forces teams to verify the data and evidence in order to describe conclusions (Lee, 2003). Being based on the technical method, this cycle can be viewed as a methodology that has proven itself, and that can dependably produce improvement. One of the main advantages of implementing a PDCA cycle is that there is a clear division between iteration that is tested, allowing for accurate causality to be recognised (Shah and Ward, 2007). This will unavoidably lead to reductions in waste, and enhance productivity in the lengthy run. The processes become enhanced and better understood, and more and more problems are exposed and solved (Stevenson, 2015).
The model is a straightforward, yet powerful way to decide new and recurring issues in any business, department or process. Its iterative method allows firms to test results and assess results in a waste-reducing cycle. However, going through the PDCA / PDSA cycle can be much slower than a straightforward methodology (Gratiela, 2014).
7.0 RecommendationTable SEQ Table * ARABIC 1: Issues and Recommendations
Six Sigma In this situation, Maliban can implement six sigma systems. In this Six Sigma process proposed in this project was used to identify, measure, and Analyze key metrics related to delivery delays. In this methodology that needs to be implemented from top-down management. It is the essential part that each employee of the Maliban understands the status quo of their work environment as well as all the decisions the company make. Also, Employees of Maliban should understand the concept for each process improvement and more important, become involved in the company’s initiatives. Moreover, Maliban must know the negativity from the goals which are to be accomplished and take measures in order to reduce negativity.
Table of Contents
TOC o “1-3” h z u 1.0 Introduction PAGEREF _Toc524696288 h 22.0 PLC cycle PAGEREF _Toc524696289 h 22.1 Project Initiation PAGEREF _Toc524696290 h 42.2 Project planning PAGEREF _Toc524696291 h 42.3 Project execution PAGEREF _Toc524696292 h 52.4 Project closure PAGEREF _Toc524696293 h 53.0 Business Case PAGEREF _Toc524696294 h 53.1 Feasibility Study PAGEREF _Toc524696295 h 73.4 Project Charter PAGEREF _Toc524696296 h 113.2.2 Gantt Chart PAGEREF _Toc524696297 h 133.2.3 Network Diagram PAGEREF _Toc524696298 h 144.0 Project management methodologies PAGEREF _Toc524696299 h 155.0 Leadership theories PAGEREF _Toc524696300 h 17Project Closure Report PAGEREF _Toc524696301 h 19Document Approval Signatures PAGEREF _Toc524696302 h 194.0 Effectiveness of Project Life Cycle PAGEREF _Toc524696303 h 19
1.0 IntroductionIn this document, the author will be discussing the project life cycle (PLC) of a chosen company. First, the author will apply each stage of the PLC to a given project producing necessary supporting documents for completing the project. Then, the author will analyse the rationale for the project methodologies, tools and leadership within the PLC for the given project. Next, the author will review and critique the effectiveness of the PLC in application to the chosen project using appropriate theories, concepts and model and critically evaluate how the use of appropriate theories, differentiation between large and small-scale projects. Finally, the author will significantly assess the PLC through a practical and theoretic exploration of its effects.
2.0 PLC cycle
Each project has certain phases of advancement. An unmistakable comprehension of these phases enables supervisors and administrators to keep up control of the project all the more proficiently. By meaning, a project has begun and an end and goes through little phases of improvement known as life cycle phases. These phases are shifted relying on the business included yet all take after similar essential advances. Realise that the project life cycle for every project may disparity, in both the number of phases it might have and the detail inside every one of these phases.
Table SEQ Table * ARABIC 1: Benefits and limitations of PLC Cycle
The project lifecycle will enable the project manager to connect advance straightforwardly to each phase and perceive the finish of each phase. Employees with lack of training or poor placement can affect the way the employees execute, operate and deliver in the project.
The project lifecycle gives an organised way to deal with the conveyance of the project. This permits everyone captivating a shot at the project to differentiate how the project is advancing. The project might lose its success due to over-focus on factors such as expediency, functionality and speed and the project management team and the project manager will have to make room for organisational structure, hierarchical intervention.
Helps communication and describes parts inside the project management as it gives a structure to the project that is obvious and comprehended by all individuals from the project. The project manager has to communicate all necessary changes to all stakeholders involved in the project and face and solve the human conflict in the operating environment.
The project lifecycle will characterise when the Project Evaluation Review and the Gate Reviews will happen, hence enabling the project chief to plan finish of reports in availability to help the inspections. Source: Author developed (2018) based
2.2 Project planning
The main output of this phase is the project plan and its associated plans for the functional areas such as scope, schedule, cost, quality, human resources, communications, risk, and procurement (Larson and Grey, 2013). In this stage, after the approval was given more set of plans will be established according to the initial goals and in other words, this is where the project solution is further developed in as much detail as possible and the steps necessary to meet the project’s objective are planned (Turner, 1993). The project teams identify the set of work that should be done by each member. In this stage questions like what is the project purpose, vision, or mission, Are there measurable objectives or success criteria, do you have a high-level description of the project, requirements, and risks, can you adequately schedule and budget high-level milestones will be asked (PM, 2000). In the planning stage, the threats that can occur during the project life cycle will be identified and necessary actions that should be taken to avoid or reduce will be considered. This is known as risk management. Identifying the stakeholders and establishing a good communication plan will be decided at this stage.
2.3 Project executionImplementation or the execution phase is the third stage of the product lifecycle. In this stage, the actual work of the project will be carried out. Control and communication are very much important in this phase. Monitoring, making the necessary adjustments and keeping records are also equally important throughout this stage and regular team meeting are musts. Also, stakeholders and plans should update a regular basis. In this stage the questions like are all resources being tracked, is the project on budget and on time, can resource planning to be optimized, are there major roadblocks that require change management will be asked.
2.4 Project closure
Termination phase or the closing phase is the final stage of the project life cycle. This simply means handing over the outcome to the customers or stakeholders. In this stage, the outcome was inspected to identify what went well and what didn’t. After the completion of the project the team was disbanded and the tools and the team members are reassigned to new duties. In this stage, the questions like Are the project’s completion criteria met, Is there a project closure report in progress, Have all project artifacts been collected and archived, Has a project post-mortem been planned will be asked.
3.0 Business Case
Maliban Biscuit Manufactories is one of the largest manufacturers, distributors, and marketers of bakery products in Sri Lanka. Moreover which has been in existence for over 60 years and has the distinction of winning the CNCI gold award, will be upping its production capacity soon to increase its present dominance of the industry (Maliban, 2018).
In the recent times, Maliban production cost increasing since production machines get damaged, repair issues of equipment, delay preventive maintenance or they replace factory components
Companies of all sizes have an incentive for cost reduction to remain competitive and to increase profits. For companies that offer goods for sale, production costs are a major factor in pricing and overall performance (The Sunday Times, 2013). Approaching the initial reduction of production costs in a structured way and putting in place a system that continuously watches for additional savings are effective ways of achieving reductions and keeping costs down (Business Today, 2015). Moreover, such a system identifies the drivers of high production costs and develops strategies to deal with them. Moreover, an effective strategy for reducing production costs is to redesign the product. Companies have to identify the key characteristics of the product that is responsible for its success in the marketplace. Other features may be costly but add little value for customers. Companies can change the design of the product to reduce costs by eliminating unimportant features while retaining the characteristics that customers value (Haynes, 2007).
Further, a company evaluating its production costs may find that employees are not working efficiently or lack the awareness of costs that would allow them to help with reductions. Training employees to understand how the production cycle works and their role in cost reduction makes them part of the solution. When a company trains its employees to be aware of how to reduce costs and informs them of progress, production workers become partners in cost reduction (The Sunday Times, 2013).
Technology allows cost reduction in two ways. It allows automation of certain production processes, resulting in greater consistency and reduced costs, and companies can use it to analyze their production workflow. Many companies already use a high degree of automation but have considerable scope for workflow optimization. The software analyzes the production processes and identifies waiting times and their causes. It shows where material and components are not available when needed and allow companies to streamline production, increasing efficiency and reducing costs (The Sunday Times, 2013).
3.1 Feasibility StudyA feasibility study tests the viability of an idea, a project or even a new business and the goal of a feasibility study is to place emphasis on potential problems that could occur if a project is pursued and determine if, after all, significant factors are considered, the project should be pursued (Kang et al., 1990). Feasibility studies also allow a business to address where and how it will operate, potential obstacles, competition and the funding needed to get the business up and running (Kanda, 2011).
Feasibility studies allow companies to determine and organise all of the necessary details to make a business work (Wipple, 1962). A feasibility study helps identify logistical problems and nearly all business-related problems, along with the solutions to alleviate them (Labuschagne and Brent, 2005). Feasibility studies can also lead to the development of marketing strategies that convince investors in the business is a wise choice.
Table SEQ Table * ARABIC 2: Areas of Feasibility Study
Market feasibility A market feasibility study determines the depth and condition of a particular real estate market and its ability to support a particular development. The key concern of a market feasibility study for multifamily development is a project’s ultimate marketability.
Technical feasibility It is a measure of the practicality of a specific technical solution and the availability of technical resources by expertise.
Financial feasibility Financial feasibility contemplates the cost of the system, the benefits the system that will be provided, such as tangible benefits or intangible benefits. Also, whether the proposed system is the cost benefit.
Operational feasibility It is a measure of how well the solution of problems or a specific solution will work in the organisation and it is also, a measure of how people sense about the system or project.
Schedule feasibility It is a measure of identifying how reasonable the project time setting is.
Economic feasibility Demonstrates the net benefit of a proposed project for accepting or disbursing electronic funds/benefits, taking into consideration the benefits and costs of the project.
Source: Author developed (2018) based on Duncan (1996)
Table SEQ Table * ARABIC 3: Advantages and Disadvantages of Feasibility Study
Improves project team’s focus Potential Inaccuracies in Identifying and Quantifying Costs and Benefits
Identifies a valid reason to undertake the project Increased Subjectivity for Intangible Costs and Benefits
Enhances the success rate by evaluating multiple parameters Inaccurate Calculations of Present Value Resulting in Misleading Analyses
Source: Author Developed (2018) based on
3.1.1 Operation feasibility
Operation feasibility is considered the first option creates new business units in the organisation. For instance, partnership or ventures with software companies would be considered in the first option. Similarly, new processes would be added in the organisation which supports the app. On the other hand, the second option is considered merely a new distribution channel for Orient. Clearly, in this options the operations need not be changed as the process of claim is, similarly processed as the conventional methods. This ensures the second option being viable.
Maliban manages operational risks by identifying areas of risk, formulating plans for their management, promoting best practices, implementing internal controls and systems and monitoring compliance. Operational risks mainly cover the areas of system failure, continuity of decision making, dealing with contingencies and ensuring efficiency in operations and correct application of recommended management practices.
3.1.2 Market Feasibility
Market feasibility determines the depth and condition of a particular market and its ability to support a particular development. Market feasibility is much more similar to a logistical study and marketing plan specifies which actions to take in a certain situation (Bowden and Belfield, 2015). A Marketing Plan maps out specific ideas, strategies, and campaigns based on feasibility study investigations, which are intended to be implemented (Davis and Radford, 1992). There are many ways to conduct a feasibility study like; polling Internet forums, questionnaires addressed to targeted consumer groups or the general population, or even customer surveys (Hydari, 2016).
22.214.171.124 SWOT Analysis
SWOT is a model for identifying and analysing the internal and external factors that can have an impact on the viability of a project, product, place or person (Jenkins, 2008).
Well established sales and distribution network.
A trusted brand for quality in the Sri Lankan market.
Agro technologist-To conducts with farmers for the raw materials.
The company has vastly invested in purchasing a brand new state of the art machinery from Japan and Europe for its production process.
Well established quality/environmental management systems.
R&D capabilities Weaknesses
Unavailability of energy saving approaches.
Low-profit margins of some products.
Dependence on single suppliers for critical raw material (eg: wheat flour).
Unavailability of cost-saving approaches
The insufficient production capacity of some product ranges.
With the end of terrorism the company to invest in the north and east for new production plants utilizing the low-cost labor and lands available there.
Set up low cost and high volume production plants in India in order to get maximum use of the Indian market opened up with the free trade agreement signed with India.
Production of Sugar-free biscuits Threats
Price competition for some product categories in the local market.
Free Trade Agreement with India. (Possibility of Indian big players entering to the local market).
Consumer bias attitude towards international biscuits
Source: Author Developed (2018)
3.1.3 Financial Feasibility
Financial feasibility contemplates the cost of the system, the benefits the system that will be provided, such as tangible benefits or intangible benefits. Also, whether the proposed system is a cost benefit.
126.96.36.199Cost Benefit Analysis
Solution Benefits Cost
Changes to the production department Reduce the wastages of raw materials
LKR 500 000
Sales LKR 10,000,000
Restructuring layout and resources reallocation
Reassign work roles and training for the new change
Replacing production equipment Sales of old equipment
LKR 10,500,000 Cost of new equipment
Training for the workers
Author Developed (2018).
188.8.131.52 Return on Investment
Solutions Return on Investment
(Benefit – Cost)/ Cost * 100
Changes to production department (10,500,000-5,500,000)/5,500,000*100
Replacing production equipments (10,500,000-8,500,000)/8,500,000*100
Author Developed (2018).
According to return on investment first option is measured as a beneficial solution. The reason for that is the return on investment in the first solution is 91% while the second solution is 24%.
In consideration of the duration of the project. Determining the workload, a propositioned six month is considered, moreover, with the main activity doing the project. Six months could be considered more than the required time. However, after six months enables the project to be precise and lack of error through testing and other various activity. Planning would ensure these timelines are met within.
Changes to production department 5,500,000/10,500,000*12
Replacing production equipments 8,500,000/10,500,000*12
Author Developed (2018).
According to the payback analysis, the first solution wants 6 months and the second solution needs 9 months and the project time is 6 months. Therefore, the first solution is the best solution for comparing to the second solution.
3.4 Project CharterTitle Production Cost Reduction and Efficiency Improvement
Goals To generate brand awareness through the project and be able to meet customer needs and wants.
To increase the productivity with the minimum cost
To generate revenue
Objectives To reduce production cost through the project in Maliban within Sri Lanka by 2 years.
To be able to have a combined operating ratio COR of 80% in this project.
Scope To carry out and plan the project that would reduce production cost and efficiency improvement that would be beneficial for both customer and organization (Maliban), that have 60% COR, before 1st May 2018.
Project Stakeholders Project Manager
The Staff members
CEO of Maliban
Customers of Maliban
Project End Date 18.04.2019
Signature 3.2.1 Work Breakdown Structure
1.0 Production Cost Reduction and Efficiency Improvement
184.108.40.206 Schedule feasibility
1.4.3 Conducting post-evaluation
220.127.116.11 Communicating project closure to stakeholders
18.104.22.168 Terminating contracts
1.3.3 Solving issues
22.214.171.124 Facility layout
1.2.5 Acceptance plan
1.2.3 Communication plan
1.2.2 Financial budget
1.2.1 Resource identification /
1.1.4 Feasibility study
1.1.3 Brainstorming solution
1.4.1 Submitting the Documentation
1.3.4 Reporting to management
1.1.2 Opportunity analysis
3.2.2 Gantt Chart
3.2.3 Network Diagram
3.2.4 Critical Path Analysis
4.0 Project management methodologiesThe methodology is the process of technique that involved theoretical and guideline of the framework which indicate, how the particular project is to be done. It’s surrounded and deals with procedures based on the principles of research (Daniel and Sam, 2010). There are different project management methodologies to benefit different projects. A project methodology also acts as a guide to the project. There are many project management methodologies like agile, waterfall, prince-two, Six Sigma, and Scrum. From these methodologies, the type of methodology your project presents can be identified.
4.1 Agile Methodology
Agile methodology is often used in the software industry where the project managers have to meet with the clients/stakeholders on a regular basis. The development of the project is broken down into small parts and undertaken. Agile methodology tries to provide a rapid response to the clients at all times (Successful projects, 2017).
4.2 Waterfall Methodology
Water-fall methodology handles projects that take place according to the sequence where initially all the project requirements are defined. A negative part of waterfall methodology is it doesn’t keep pace for changes to take place unless it is absolutely necessary. It always sticks to the plan made initially. Waterfall methodology is often used in projects like construction and software development (Successful projects, 2017).
4.3 Prince-Two Methodology
Prince two methodology is a very process oriented methodology which is mainly used by the UK government. It achieves key outcomes by dividing projects into multiple stages. A lot of responsibility is given to the project manager. The prince-two methodology is considered to be a slow process.
4.4 Scrum Methodology
Scrum methodology is a type of agile methodology where different project managers are appointed for the different WBS activity. It is mainly used while product development and in projects that have a small duration of six months. It is efficient as there are project managers overlooking the components of the WBS activity (Cohn,2017).
Thus, using the scrum methodology would be effective since Scrum is an agile process that gives leadership to each and every member of the team which motivates the members. On the other hand, helps the team members focus on the vision of the project other than managing (scrum Inc., 2014). Each progress is backed track by managers (Scrum Master) whilst maintaining good communication to create deliverable on time. Moreover, project manager ensures priorities are achieved, with an incremental model built in shortens the market release dates by efficiently introducing in the market (Uhlig, 2013). Furthermore, with supervision in each process, testing could be done in each process (Layton, 2012). Although, with each task specifically planned and organized project manager would find difficult to this without a clearly defined objective or structure. Moreover, the product life cycle would be uncertain with frequent changes, so it would difficult to forecast (Uhlig, 2013). However, with a short natured project like this, it would be suitable to adopt this methodology
The advantages of using scrum methodology are that it helps rectify mistakes. It allows new innovative ideas to enter product development at any given time. The daily meetings the group members keep helps increase the productivity of the member individually and of the product. It helps quality products to deliver in a short period of time (Belatrix, 2015).
However good it may be to use scrum methodology, it also has drawbacks like it mainly depends on the project managers input and dedication to the project. If they don’t provide a solid input of the whole project could be ruined. The project managers should be present day for the meeting, be up to date on product development and cannot leave in the middle of the project because if they don’t the whole project will fail, or not happen in time (Belatrix,2015).
5.0 Leadership theories
Transformational leaders are sometimes calling quiet leaders. They are the ones that lead by example. Their style tends to use rapport, inspiration, or empathy to engage followers (Eisenbech, Watson and Pillai, 1999). They are known to possess courage, confidence, and the willingness to make sacrifices for the greater good and they possess a single-minded need to streamline or change things that no longer work (Eisenbech, Watson and Pillai, 1999). The transformational leader motivates workers and understands how to form them into integral units that work well with others (Hall and Hord, 2006).
Transactional leadership focuses on results, conforms to the existing structure of an organization and measures success according to that organization’s system of rewards and penalties (Gill, 2002). Transactional leaders have formal authority and positions of responsibility in an organisation and this type of leader is responsible for maintaining routine by managing individual performance and facilitating group performance (Kavanagh and Ashkanasy, 2006).
The behavioral theory of leadership focuses on what leaders do and how they behave and theory assumes that certain leadership styles will be effective while others will not (Hogg, 2001). Determining goals, motivating employees for achieving the goals, effective communication, ability to interact effectively, building team spirit, are the functional behaviors of a successful leader (Judge and Bono, 2000). This theory emphasises the point that the favorable behavior of a leader provides greater satisfaction to the followers and they recognise him as their leader (Spillane and Halverson, 2004).
Summary of key project issues and resolution
Training costs to employees Provide internal training than hiring external experts to train the employees.
Increase the cost of advertising through TV and panners Use social media to advertise the products
Old equipment get damaged Buy new equipment for the production process
Project Closure ReportProject name Production Cost Reduction and Efficiency Improvement
Project manager Sriram
Project sponsor CEO of Maliban
Date 18/ 04/ 2019
Document Approval SignaturesRole Name Signature Date
Project sponsor Maliban CEO 20/08/2018
Project manager, Operation manager Sriram 20/08/2018
Industry specific consultant Himara 20/08/2018
Financial manager Sivapriya 20/08/2018
All activities completed to the
required Final cost of project established Project documentation
Completed Risks and Issues closed or
Resolved Handover to organisation
Complete Potential further work or follow
on activity Achievement of the project benefits
The project has identified the project outcomes, outputs, and benefits such as effective management increased return on investment.
Performance against original schedule
The time to create the application or application architecture, which was scheduled for one month, has been increased in time length for I month and 13 days.
Impact of approved changes and raised exceptions and resolution
Increase in employee motivation and performance
Satisfaction of stakeholders
Help strategize organisational goals and objectives
Increases the turnover of the company.
Project manager’s commentary
The project has been a success within the allotted budget and allocated and scheduled timeline. Nevertheless, the project team had many problems and we got support from the production manager and finance manager. Therefore, it assists us to accomplish the project successfully.
4.0 Effectiveness of Project Life CycleInitiation phase
In the initiation phase, the project has focused on tools and techniques such as the business case, the feasibility study. Further, the project charter has included aspects such as goals, scope, and objectives of the project. Also, the company has