528 Operations and Project Management ASSIGNMENT 1

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.

ASSIGNMENT 1 FRONT SHEET Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 16: Operations and Project Management (528)

P1 P2 M1 M2 D1

rSummative Feedbacks: rResubmission Feedbacks:

Internal Verifier’s Comments:

Date:

Signature & Date:

Table Content

I.Introduction 2,3,4

II.LO1: Review and criticize the effectiveness of

operational 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

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 theSamsung 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 underthe Samsung brand name, this is a multidisciplinary conglomerate ( Chaebol) has the largest scale andeconomic influence in Korea in particular and is also one of the most expensive technology brands in theworld today

According to two magazines Interbrand and BusinessWeek, the total value of the Samsung brand wasranked 43th among global corporations ($ 5.2 billion) in 2000, 42nd ($ 6.4 billion) in 2001, 34th ( 8, 3billion USD) in 2002, 25 th (10.8 billion USD) in 2003, 21st (12.5 billion USD) in 2004, and 20th (14.9billion USD) in 2005 Export production volume Samsung's products directly contributed to the Koreaneconomy, with Samsung alone exceeding 18.1% of the total national export volume, reaching 31.2 billionUSD in 2000, and exceeding 20.7 % to $ 52.7 billion in 2004 In addition, the tax amount that SamsungCorporation paid to the Korean government in 2003 was 6.5 trillion won, which is 6.3% higher than thenational tax The market value of Samsung Group in 1997 reached 7.3 trillion won, equal to 10.3% of theentire 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 andmanagement of behind-the-scenes work must be supervised by any small business owner The basicdefinition 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 pulledtogether by a set of systems, so that they are used to provide the organization's primary service orcommodity

* 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, managerseffectively 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 inthe overall organizational strategy The cost of product sold is not the only sector in which costreductions are carried out Both aspects of operational, manufacturing, administration and logistics costsneed to be considered by corporate executives Strategies would balance the company's overarchingmission 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 isvery 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 usuallyexpressed in writing As such, it is common for units to develop "Processes" to implement and controltheir "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 acrossorganisations in terms of suitability and implementation Capacity planning, inventory control, supplychain 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 ofgoodsbased 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 isdeemed successful A defect is anything produced outside of consumer satisfaction Second, it's apreparation and credential curriculum that teaches Six Sigma's basic values The Six Sigma acceptancebelt levels, ranging from white belt to black belt, can be reached by practitioners Finally, it's a theorythat 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 ofadding value and maintaining consistency to the performance of a company It can also be used tosimplify operations in the supply chain and improve customer loyalty Six Sigma 's advantages go beyondsimplistic problem-solving and take into consideration the whole manufacturing process, from the rawmaterials to the finished product, as opposed to the final product alone Six Sigma is a proactiveapproach 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 theSix 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 analyticalevidence, resulting in time-consuming and complex procedures And, since at its core it is a method ofcontinuous 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 oninitiatives approved by Six Sigma and forgets its own mission statement or initiatives It can limitinnovative concepts for small companies that favor ingenuity and innovation, which need somerisktaking to be introduced Companies have to find accredited Six Sigma organizations lacking formalqualifications to educate their staff or perform in-house training In this case , the cost of smallcompanies implementing Six Sigma is too high to be practicable Even big corporations continue toprovide 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: leandevelopment, lean business and lean thinking In the latter spirit, Lean focuses on recognizing andeliminating customers' non-value-added activities, but increasing costs in an organization'smanufacturing 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 theoperation, 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 canestablish good and stable relationships with trustworthy clients and sustain a constant flow of revenuethat comes in

Lean Infrastructure-In order to satisfy near-term inventory demand, a lean infrastructure involves onlyworking with certain components: construction, materials, products , machinery, and labor Inside theprocess, 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 tosevere lean inconsistencies that can lead to the whole operation falling behind Employees might onlyswitch on to another computer in other mass processing plants if one burned out There are not manymore 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 ofequipment malfunction This lean drawback will impede customer partnerships, drive customers torivals, 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 removenonessential 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 marketprocesses 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 SixSigma Lean aims to inculcate a transformation in corporate culture and lasting change in employeebehaviour, to recognize and eradicate waste, while Six Sigma is a methodological process intrusion thatdoes not attempt to modify the organizational culture or attempt to change employees ' behaviorpermanently

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 andproductivity 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 addbenefit 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 valueand 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 variablesoften 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 ofoperation, Lean aims at continual progress through the entire value-stream of activities It is an evolvingmechanism inherent in the company's practices, which has to be embraced for productivity by the entirestaff 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 singleproject or field of operation, and the findings remain restricted rather than pervasive within thatparticular area Full organisation Six implementations of Sigma belong to special interest groups, such asthe group for inventory reduction, the group for industrial scrap reduction, and those expresslydeveloped for this interest

Procedure Implementation

Lean helps to bring in improvements in organizational policy, structure, and operations by transferringexpertise and integrating a learning organization's community around the board Lean implementation isapplied 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 Untilapplying the approach and testing for performance, the Six Sigma team determines underlying factorsfor 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 AlthoughSix Sigma remains more willing to meet pressing consumer demands, Six Sigma alone isunable to increase the overall pace of the transaction or optimize investment returns forinvestors Lean Six Sigma (LSS) aims to merge the strengths of these two strategies andreduce the drawback of both In order to recognize and eradicate nonvalue addingbehaviors and procedures, the Lean Six Sigma approach includes using leanmethodologies, and then using Six Sigma methodologies to identify and eliminate processvariance

The development of operations management principles in modern context :

The administration of operations refers to the mechanism in which planning, coordination, and oversightare involved These procedures ensure much greater profitability and productivity enhancement within aproduction 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 yourclients happy and come back if you want to be profitable