Operations and Project Management
Operations and Project Management
Higher Nationals
Internal verification of assessment decisions – BTEC (RQF)
INTERNAL VERIFICATION – ASSESSMENT DECISIONS
Programme title HND in Business Management
Mrs. Lasitha Rajapaksa
Assessor Internal Verifier
Unit 16: Operations and Project Management
Unit(s)
understanding of operations and project management to make an effective and immediate
Assignment title
contribution to the way in which an organisation conducts its business
T.M.K.S. Thilakarathne
Student’s name
List which assessment Pass Merit Distinction
criteria the Assessor has
awarded.
INTERNAL VERIFIER CHECKLIST
Do the assessment criteria awarded match
those shown in the assignment brief? Y/N
• Constructive?
Y/N
• Linked to relevant assessment
criteria? Y/N
Give details:
Internal Verifier
Date
signature
Programme Leader
Date
signature (if required)
3
LO4 Review and critique the application of the PLC used in a given project
Pass, Merit & Distinction P4 M4 D2
Descripts
Resubmission Feedback:
Assignment Feedback
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Action Plan
Summative feedback
Assessor Date
signature
kithminathilakarthne@gmail.com 03.09.2022
Student Date
signature
5
Pearson
Higher Nationals in
Business
Unit 16: Operations and Project
Management
Assignment 01
General Guidelines
1. A Cover page or title page – You should always attach a title page to your assignment.
Use previous page as your cover sheet and make sure all the details are accurately filled.
2. Attach this brief as the first section of your assignment.
3. All the assignments should be prepared using a word processing software.
4. All the assignments should be printed on A4 sized papers. Use single side printing.
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5. Allow 1” for top, bottom , right margins and 1.25” for the left margin of each page.
1. The font size should be 12 point, and should be in the style of Time New Roman.
2. Use 1.5 line spacing. Left justify all paragraphs.
3. Ensure that all the headings are consistent in terms of the font size and font style.
4. Use footer function in the word processor to insert Your Name, Subject, Assignment
No, and Page Number on each page. This is useful if individual sheets become detached
for any reason.
5. Use word processing application spell check and grammar check function to help editing
your assignment.
Important Points:
1. It is strictly prohibited to use textboxes to add texts in the assignments, except for the
compulsory information. eg: Figures, tables of comparison etc. Adding text boxes in the
body except for the before mentioned compulsory information will result in rejection of
your work.
2. Carefully check the hand in date and the instructions given in the assignment. Late
submissions will not be accepted.
3. Ensure that you give yourself enough time to complete the assignment by the due date.
4. Excuses of any nature will not be accepted for failure to hand in the work on time.
5. You must take responsibility for managing your own time effectively.
6. If you are unable to hand in your assignment on time and have valid reasons such as
illness, you may apply (in writing) for an extension.
7. Failure to achieve at least PASS criteria will result in a REFERRAL grade .
8. Non-submission of work without valid reasons will lead to an automatic RE FERRAL. You
will then be asked to complete an alternative assignment.
9. If you use other people’s work or ideas in your assignment, reference them properly
using HARVARD referencing system to avoid plagiarism. You have to provide both in-
text citation and a reference list.
10. If you are proven to be guilty of plagiarism or any academic misconduct, your grade
could be reduced to A REFERRAL or at worst you could be expelled from the course
Student Declaration
I hereby, declare that I know what plagiarism entails, namely to use another’s work and to
present it as my own without attributing the sources in the correct way. I further understand
what it means to copy another’s work.
3. I know what the consequences will be if I plagiaries or copy another’s work in any of the
assignments for this program.
4. I declare therefore that all work presented by me for every aspects of my program, will
be my own, and where I have made use of another’s work, I will attribute the source in
the correct way.
5. I acknowledge that the attachment of this document signed or not, constitutes a binding
agreement between myself and Edexcel UK.
6. I understand that my assignment will not be considered as submitted if this document is
not attached to the attached.
kithminathilkarathne@gmail.com 03.09.2022
Student’s Signature Date
(Provide E-mail ID) (Provide Submission Date)
Unit Number and Title Unit 16: Operations and Project Management
Issue Date
Submission format
Section A: The submission should be in the form of an individual written report. This should be
written in a concise, formal business style using single spacing and font size 12. You are required
to make use of headings, paragraphs and subsections as appropriate and all work must be
supported with research and referenced using Harvard referencing system. The recommended
word limit is 2,500–3,000 words, although you will not be penalised for exceeding the total word
limit.
Section B: The submission should be in the form of a portfolio completed by each member in the
group. Each section of the portfolio should be written in a concise, formal style using 1.5 spacing
and font size 12. All work must be supported with research and referenced using Harvard
referencing system. The recommended word limit is 2,000–2,500 words, although you will not be
penalised for exceeding the total word limit.
LO4 Review and critique the application of the (PLC) used in a given project
Section A:
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You are required to select an organization (in Sri Lanka) of your choice to review, compare and contrast
the effectiveness of operations management principles, and apply the concept of continuous
improvement to the organization. The report needs to analyze and critically review the application of
operation management principle for the organization selected. With the understanding of the operation
management principles, concepts and philosophies identified, you are required to produce an evaluate
the continuous improvement plan. Finally, you are required to provide recommendations to the key
findings along with the justifications.
Section B:
In small groups (not more than 5 members per group) you are required to conduct a small project
(community project). Then you need to provide an individual portfolio (case) by applying the project life
cycle to the project, and to review and critique the application of the PLC. You must provide theoretical
and/or conceptual arguments to justify the use of project methodologies, tools and leadership within
the given project. PLC needs to further differentiate between large and small-scale projects by
mentioning the different theories and techniques that need to use in each stage. The produced portfolio
should evident a set of documents which summaries the stages of the PLC. You need to apply each stage
of the PLC to actual project and provide supporting documentation for each stage (e.g. business case,
the project plan, cost-benefit analysis and work breakdown structure). Finally, the report needs to cover
review and critical analysis of the effectiveness of the PLC in application to your project using
appropriate theories, models and concepts.
Acknowledgement
I also wish to express my gratitude towards all supporters who are behind the
completion of this successful report.
Not only the supporters but I also take this opportunity to thank my family, for their
love, support and guidance given throughout this project. If not for their support I would
not have been able to come out with such a wonderful piece of report, so success of this
project will be dedicated to them.
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I’m very grateful for their guidance and their encouragement. Their profound knowledge
provided me with opportunity to broaden my knowledge and to make significant
progress.
Thank You!
Table of Contents
Executive summary........................................................................................................................
Section A........................................................................................................................................
1. Introduction To the Company................................................................................................
2. Operation and Operation Management..................................................................................
2.1 Types Of Operation Which Are Being Carried Out in Ceylon Tobacco Company
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2.2 Operation Management...................................................................................................
2.3 Operation management and operation similarity............................................................
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Reducing defects through Total Quality Management, concept of Kaizen and Process
e-engineering.............................................................................................................................
How well is Ceylon Tobacco Company managing their Waste?..............................................
Impact of technology upon operational functions and information flows.............................
Customer Satisfaction in Ceylon Tobacco Products..................................................................
Recommendation...........................................................................................................................
Section B........................................................................................................................................
1. What is project?.....................................................................................................................
Our Project (Créatif 21).........................................................................................................
Objectives of the project (Créatif 21)....................................................................................
1.1 What is project management...........................................................................................
Importance of project management.......................................................................................
Project Life Cycle..........................................................................................................................
Importance of Project Life Cycle...............................................................................................
2. Explain the use of methods and techniques using in PLC with proper evaluation and
criticism.........................................................................................................................................
2.1 Project initiation..............................................................................................................
2.1.1 Steps for the project initiation stage may include the following:............................
2.1.2 Initiation stage of Créatif 21....................................................................................
2.1.3 Tools and Documentations for Initiation Stage.......................................................
2.1.4 Business case of our project (PID)..........................................................................
Project definition....................................................................................................................
Objectives of the project (Créatif 21)....................................................................................
The Finance sections..............................................................................................................
Budget Plan............................................................................................................................
2.1.5 Feasibility study.......................................................................................................
Time Scheduling....................................................................................................................
2.2 Project planning..............................................................................................................
2.2.1 Steps for the project planning stage may include the following:................................
2.2.2 Planning stage of Créatif 21....................................................................................
2.2.3 Tools and Documentations for Planning Stage.......................................................
2.2.4 Work breakdown structure of our project..............................................................
2.2.5 WBS Dictionary.....................................................................................................
2.2.6 Responsibility Assignment Matrix of our project.................................................
2.2.7 Cost control for our project....................................................................................
Project scheduling techniques of our project.......................................................................
2.2.8 Milestone chart......................................................................................................
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Section A
Ceylon Tobacco Company PLC has a monopoly on the tobacco industry of cigarette
manufacturing and distributor in Sri Lanka. It is a subsidiary of British American
Tobacco (BAT), which owned 84.13% of the shares in 2019. Even though British
American Tobacco began its operations in Sri Lanka in 1904 -1911 time period, Ceylon
Tobacco Company PLC was only formed as a company in 1932.
Ceylon Tobacco Company is engaged in the complete production process of cigarettes in
Sri Lanka, from tobacco cultivation to cigarette production. Ceylon Tobacco Company
owns 99% of the market with the remaining 1% comprising of imported cigarettes.
Almost 100% of the tobacco used for cigarette production in Sri Lanka is cultivated in the
country, which was responsible for approximately 3000 tons of tobacco in 2016. Ceylon
Tobacco Company also exports its manufactured cigarettes, which contributes
approximately 1% to its overall annual revenue. Headquarters situated in Colombo,
Ceylon Tobacco Company operates via two factories; the Colombo Factory and the
Green Leaf Threshing Plant in Kandy.
The Ceylon Tobacco Company cigarette brands include John Player Gold Leaf (JPGL),
Dunhill, Benson & Hedges, and Capstan.
Ceylon Tobacco Company is managed by a Board of Directors and an Executive
Committee. In 2018, the Board of Directors, headed by the Chairman, consisted of six
Directors, of which 4 were Non-Executive Directors. The Executive Committee headed
by the Chief Executive Officer also had seven members. Susantha Ratnayake was
appointed the Chairman of Ceylon Tobacco Company in 2013 and Michael Koest as the
Chief Executive Officer/Managing Director in 2018. A complete list of Ceylon Tobacco
Company's Board of Directors and the Executive Committee members can be found on
the Ceylon Tobacco Company website. In 2018, the number of permanent employees of
Ceylon Tobacco Company was 273, with an employee turnover rate of 7.3%. The
reported revenue per employee was Rs.445 million whereas the reported profit per
employee was Rs.46 million.
As one of Sri Lanka’s most economically impactful businesses, Ceylon Tobacco
Company PLC has over the past century demonstrated its strong commitment to
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delivering stakeholder value. Ceylon Tobacco Company is the most valuable listed
company in Sri Lanka, accounting for 10% of the market capitalization of the Colombo
Stock Exchange by end-December 2018. Ceylon Tobacco Company is the country’s
largest individual tax contributor, accounting for nearly 6% of the Government’s total tax
revenue in 2018 and also Ceylon Tobacco injects approximately Rs. 11.4 billion to the
local economy through our value chain operations. (Tobacco Unmasked, 2021)
It is an advantage being a monopoly market leader but considering the high taxation and
marketing restriction it is vital the company has a sound strategic plan for the next years
anticipating the challenges
Objectives
One of the objectives of CTC is to increase productivity by 10% every year.
To enhance customer satisfaction in each of their Cigarette variety in order to gain higher
market share is gained in the next few years of operation.
On 2020, Ceylon tobacco declared a new objective to reduce the Cigarette usage by 50%
in 2022 and increase the consumption of E-cigarettes where it is harmless and reduces
the health issue of heavy smokers. (Tobacco Unmasked, 2021)
Chairman
Directors
Clerical
staff Salesmen
This is the Ceylon Tobacco Company structure. We can identify the different positions in
the structure. This structure's main position is the director, under the director there are
many department heads are coming these are the marketing head, Human resource head,
finance head, quality assurance head, supply chain management head, head of sale, and
head of manufacturing. Under these head of the department after the head of the
department assistant coming. This is the summary view of the CTC structure.
In the CTC structure, we identified the Standard of control. The company has a standard
of control. Ceylon Tobacco company every performance measurement that managers are
review. These measurements related to the company controlling process they followed. In
the company there are many kinds of performance measurements, they followed. The
company compares performance with the company standards. In the organization,
managers are compared data with reports, plans and records. Is the CTC structure
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positions compare with their performance? CTC compare with actual figures company
can get correct actions. Managers need to determine which changes are needed if any and
how. The company has a standard of control, the company can control the output of the
company. this structure we can identify the report of management happen. In this
structure, every position has a reporting person. if you think marketing manager reporting
to the head of marketing. Mangers are reporting the achievement, losses, and
performance, these are reporting.
CTC following the Decentralization system. in the company decision getting by every
person is organization. the company can get an accurate decision on time. A
decentralization system is suitable for every business. if CTC uses this system, they can
get different advantages. CTC can get quick decisions, have better supervision and
control can get correct decisions, and can improve the employee’s morale. These are the
advantages that can get to CTC.
CTC structure we rifer we can identify a narrow span of control. If you get a decision
before, we have to reach many steps in structure to reach the highest point of the
structure. These systems are called the narrow span. If you think your department getting
a decision, your department has to get a decision in every position. Your department has
to reach every step in the structure. This system is slow when you get decisions. CTC
maintained the Narrow span system; this system is high expenses system because CTC
having a different kind of many positions.
2.1 Types Of Operation Which Are Being Carried Out in Ceylon Tobacco Company
The main and the first strategy CTC is following is Six Sigma Strategy where this
strategy helps CTC to improve their capability of the business. This system helps to
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improve customer ‘s experience, lower the company cost and builds better leaders. Also,
six sigma reduces the mistake occur which is which CTC is following this strategy and
also CTC uses few other strategies like Mass Customization. Where mass customization
is about altering a product with more features to attract a specific customer base where
these strategies increase the customer base and also the profits of CTC. Where we can see
the strategy being used in their cigarettes of Switch, when customer started to like the
flavor, they came up with a better version as Double Switch which is a better
CTC uses Six Sigma in their Total Quality Management to improve the quality of their
Cigarettes. TQM at CTC monitors the quality of the Cigarettes from the start of
production till the end of the production which reduces the defects when the cigarettes are
produced which reduces waste and in fact maintains the quality of the cigarettes. When
the Cigarettes are up to the quality standards demanded by the customers
then the customers will be satisfied with CTC cigarettes which will lead them to being
loyal to CTC and only purchase Cigarettes from CTC without changing to other
competitors of CTC such as Beedis which can lead to the company’s profits increasing.
Operations management is that the administration of business practices to form the very
best level of efficiency possible within a corporation. It’s concerned with converting
materials and labor into goods and services as efficiently as possible to maximize the
profit of a corporation
Similarly, Hitt, Xu, and Carnes (2016) define operations management as the process of
monitoring all the activities related to delivering a quality product to their customer.
Operations management involves utilizing resources from staff, materials, equipment, and
technology. Operations managers acquire, develop, and deliver goods to clients that
supported client needs and therefore the abilities of the corporate.
Operations management handles various strategic issues, including determining the scale
of producing plants and project management methods and implementing the structure of
knowledge technology networks. Other operational issues include the management of
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inventory levels, including work-in-process levels and raw materials acquisition, internal
control, handling, and maintenance policies.
Operations management is not a topic that is only related to the production activities of a
certain product but it is also related to companies that deliver services to customers.
According to Johnston (2005) service operations management is mainly dealing with
functions such as identifying customer needs and wants, planning a service delivery
process, ensuring whether their objectives are met or not, and implementing research
activities to increase the quality of services that are provided. The core purpose of
operations management is to increase the operational efficiency of an organization (Voss,
Tsikriktsis, and Frohlich, 2002). Therefore, many theories or philosophies are put forward
by many scholars in the quest of improving manufacturing performance such as porter’s
value chain analysis, lean manufacturing.
An operations management professional knows local and global trends, customer
demand, and the available capital for production. Operations management methods are
the gaining of materials and the use of labor in a timely, cost-effective manner to deliver
customer expectations.
This section talks about the CTC operation management system. CTC manufacturing
cigarettes. Company operation management has three steps inputs, process and output.
Below I show the CTC company operation process.
Operation management is a very important role in the organization. CTC has the biggest
role of input to output. The operation process at every stage is very important. Operation
management looks at CTC manufacturing product design. Company their products design
for customers attractions. When CTC is manufacturing firstly, they have to design unique
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products. If CTC has a unique design of products customers are try to buying products.
CTC products quality controlled. CTC is manufacturing products with high-quality raw
material the final outcome is the quality output. in the process stage covert product to
final product. Planning and control are very important, this stage company getting
decisions about how much they manufacturing and controlling the quality of products.
In the CTC operation process firstly, they use the input for the manufacturing process.
CTC using machines, capital, raw material. CTC company operation process without
using input they can't get quality output. Next stage CTC inputs using for the process of
manufacture. This stage CTC product planning, product controlling, product design, and
defect controlling. Final stage CTC company gets the output of the manufacturing
process. This is the operation process CTC following.
This section talks about operation management and operation similarity. Operation and
operation management mainly focus on getting the maximum output from the resource in
CTC. Management of production is concerned with handling tasks undertaken while
processing products. In the CTC operation and operation management involved in
planning, supervision, scheduling, and regulating are related to the manufacturing of the
products. Operation and operation management involved the CTC products quality, raw
material quality, design, packaging, pricing, and marketing methods these are decided by
the organization's operation and operation management. Production management plays
important role in the organization. in the CTC has proper operation management
company can reduce the production cost because the company using quality raw material.
Operations management requires the supervision of repetitive tasks so that the enterprise
can function smoothly and effectively. When we compare with the operation and
operation management is two different components but we can identify some similarities
in this component. When we get out the operation management is the all the process of
the manufacturing product it includes the inputs, transformation, and outputs. This large
process operation is the one component. These small operations are collected with the
large one component. Now we looked at the similarity of these two components. If you
think manufacturing cigarettes, packaging, and pasteurization, these are operations of the
CTC. operation management help to get the final output of the company. without
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operation management, we can’t get the final output correctly. Now we can understand
that operation and operation management have some similarities.
Operations are one of the main functions of an organization, in addition to supply chains,
marketing, finance, and human resources. An organization aims to produce goods or
services. This requires obtaining resources, converting them into outputs, and distributing
them to intended users. The term operations include all activities that an organization
needs to do to create and deliver goods or services to the end customers. So, the
organizational operations include functions related to system-level tasks, which are to
create as well as assign initial resources to the organization. Also, organizational
operations include organizational-level tasks as well. And those are, create database
groups, define and grant roles within the organization and manage users of the
organization.
In operations management, it deals with the planning and management of the production
process and the redesign of business operations during the production of goods or
services. It deals with the design, management, and improvement of the systems that
create the organization’s products or services. Most of the financial and human resources
of most organizations are invested in activities related to the production of products or
provision of services. Operations management is therefore critical to organizational
success.
Basically, the operation management process involves planning, organizing, making
necessary improvements to achieve higher profitability, and supervising the entire
process. The adjustments made to the future process need to be adhered to according to
the deep analysis and findings of the current process. Also, it should adhere to the
strategic goals of the company.
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operation is a small part of the manufacturing process. But operation management is the
whole process of manufacturing products. The operation function of the CTC using,
marketing, purchasing, accounting and finance, engineering, and service these are the
operation they handle but operation management is all part of the operation. Now we can
identify the differentiation of the operation and operation management in the CTC.
Even if you do your best, problems can occur. Managers need to find the root cause of
problems so they don't get worse.
Managed passion
Employee morale is a major driver of company growth. Managers must be able to inspire
their subordinates to be passionate about their work.
Humility
No one wants to work with active knowledge. Therefore, it is important for operations
managers to position themselves as ordinary people who are unaware of everything and
may make mistakes.
Success
Managers need to be able to clearly define what they consider to be successful. This
allows everyone in the company to have the parameters to work in the process of
achieving their goals.
Change
Everyone in the company needs to learn to adapt to changing markets. This involves
understanding your customers, your target clients, and what they want. Of course, this
also includes the use of automation solutions, so the company is always one step ahead.
Mass customization is remarked as a process of providing goods and services that are
modified to satisfy a selected customer’s needs. Therefore, mass customization may be
a combination of both marketing and manufacturing that has the flexibility to
mix personalized products with a coffee cost which will be related to production prices.
Thus, people can add on to the services and products offered thereby making it more
consumer oriented.
Value chain analysis was introduced in 1980 by Michael Porter. This analysis is used for
organization internal analysis. This analysis's main goals are to recognize which activities
are most valuable is the organization. When we use this analysis, we can identify the
competitors’ advantages and disadvantages of the company. in the organization, internal
activates perform the lower cost competitors try to do that. Organizations can produce
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products at a lower cost than the market price. The value chain analysis has two
categories primary activity and secondary activity.
A value chain analysis is a method in which a company defines and analyzes its primary
and support activities that add value to its final product in order to cut costs or enhance
differentiation. (Medium, 2021)
Primary activities are directly involved with the manufacturing and distribution of the
product. The main areas we can identify inbound logistics, operations, outbound logistics,
marketing and sale, and service. Each of the primary activities is linked with the
secondary activities.
Secondary activities
A value chain analysis is a strategic method used to analyze internal business activities.
Its goal is to identify which activities are most important to the company and which could
be improved to provide it a competitive advantage.
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There are many benefits of value chain analysis, all of which contribute to a company's
ability to comprehend and optimize the activities that lead to competitive advantage and
high-profit margin. The disadvantage of value chain analysis is that it forces an
organization to break down into divisions, which can lead to a loss of sight of the big
picture. (Investopedia, 2021)
CTC can reduce the cost-value chain analysis it additionally permits CTC to set up the
cost drivers of each cycle. This analysis gives the idea about the reduce the cost of
production but customers satisfying the same level. CTC uses this analysis they can
reduce the cost with new technology, distribution channels, and materials.
if CTC uses this analysis to the organization, they can reduce the costs of CTC can reduce
wastage, and improved product quality.
CTC can improve profitability- They use this analysis of what are competitors'
advantages and disadvantages they can identify. Value chain program is improved
incomes and better net revenues, adding to more noteworthy generally achievement.
Supportive
Professional Development, Employee relationship, Performance
Human Resource Management Appraisal, Trainings
Activities
Procurement Process Real time inventory, Communication with suppliers, Purchase supplies
and Materials.
Technology Aspects Integrated Supply chain systems, Real time sales information, and ERP
In his book Competitive Advantage (1985), Michael Porter explains Value Chain
Analysis.
This system links systems and activities to each other and demonstrates what effect this
has on costs and profit. Consequently, it (Value Chain Analysis) makes clear where the
sources of value and loss amounts can be found in the organization. Value chain analysis
is a method used to evaluate the firms’ internal operations therefore, its’ goal is to
recognize what activities that contribute most to the value of the business which could be
improved in order to gain competitive advantage (Pearson and Hui, 2001). Therefore, this
analysis tool is a disaggregated tool that can show the process of an organization
independently as a result it makes it easier for the firm to diagnose the strength and
weaknesses of each individual process and identify which adds value and which does not.
As a result, it makes it easier for the firm to diagnose the strength and weaknesses of each
individual process and identify which adds value and which does not.
Primary activities
Outbound
Inbound logistics Operations Marketing Service
logistics
Ceylon has a large facility The production Ceylon tobacco As Cigarettes The machinery is not used
of warehouse where they house of has scheduled cause health overtime so that it is not
can store all their CEYLON transfer of issues over used to maintain its’
cigarettes Hence, final TOBACCO products to Advertising efficiency. Further, there
output of Cigarettes in COMPANY retail stores and Cigarette is are training sessions help
safe place in the produces other banned in Sri to improve employee
warehouse and the 300,000 units of businesses lanka. The ability thereby directly
warehouse storage facility Cigarettes each therefore, this job of adding value and even
maintains raw materials day therefore, it routine is done marketing ‘equality in the
for almost 4 months shows that the without fail in team in workplace’ trainings are
ahead in order to prevent production order to cope CEYLON held to keep employees
the production process aspect of Ceylon up with the TOBACCO from feeling inferior thus
from stalling. tobacco is huge demand. COMPANY increasing motivation.
is only to set
prices
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thus suggesting that the production process will not stall regardless o
absentees. Hence, this increases the value as product quality does no
deteriorate either.
Technology Ceylon Tobacco uses high level machinery and even use built. They
development even produce flavor so that customer can buy it individual and add it
to the customer vape kit or shisha pen. Thereby, this adds increased
value to the firms’ portfolio and thus creating a good perception of th
organization for the customers.
Procurement Ceylon tobacco has their own farms in Nuwara eliya to produce
tobacco leave with government’s permission. As a result, this can
cater towards consumer requirement which means at the of the day,
customer satisfaction will undoubtedly increase along with the value
of Cigarette
Secondary Activities
Firm infrastructure
This refers to supporting operations within the company, which enable it to work every
day. The company activities are involved to the company structure, management,
planning, accounting and finance. These are affected to the decision of getting.
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CTC catch the different kind of market share. A product strategy centered on
innovation has enabled the Group to retain its competitive edge and grow its market
share in both the Manufacturing and selling.
In 2019 annual reports show the CTC company increases the market share by the 3%.
CTC company Increased market share in the modern trade industry
“The category delivered a year of commendable performance, recording volume
growth of 12% and consolidating its market position across sub-categories”
CTC's annual report shows they increase the promotional income by 1,429,290 in
2020.
CTC company Rs. 41 million in investment in research and development and
employee training programs in 2020.
CTC company following the decentralization method but previously use a
centralization system.
CTC company 5849 employees are working and they give the 347,617 total hours
training for employees in their company. the company invested 41 million for training
and development.
Technology development
CTC how technology development of products and service of the organization.
technology using in the internal and externally. It, technology innovation, improvements,
developments new product based on new technology.
Procurement
CTC source of raw material for the best price in the market. in the market which is the
best quality raw material in the market for their budgets. Suppliers, negotiations,
agreements with suppliers.
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CTC purchases materials and components from overseas suppliers and local suppliers
and most of the material purchases are from local suppliers.
CTC annual report shows the total retail and manufacturing revenue of 69,055,313
contracts with these parties.
Primary activities
Inbound logistics
Most of the raw material CTC gets from local suppliers and they buying bulk raw
materials.
CTC, they have 260 main suppliers. each supplier is very important to the company.
Inventory controlled.
Operations
Quality controlled. Check the quality of each line.
Reduce the E-waste in the company they main target is to protect the environment.
Using the world update technology.
Outbound logistics
Storage and distribution of the final product in CTC. final product how to distribute
customer wholesaler, retailer, storage and agents.
CTC have strong distribution channel.
Marketing
The targeting group of supplies product in the market. distribution channels, promotion
and organizing sale forces.
Island wide delivery service.
consumers with quick and adequate service makes returning customers. The same applies
when a customer is satisfied with a product and keeps buying more of the same.
Reduce Costs
There are very evident ways to minimize costs, and then some not-so-visible ways that
exist when looking at global possibilities. Moving production to international locations
can save cash. Low-skill jobs shifted to countries with lower wage costs saves money. It
also frees higher-skilled employees to perform more high-skill jobs, instead of tasks that
are less challenging and create inefficient use of their time. Such savings can be used as
capital investment funds, another variable in productivity.
There are also advantages to trade agreements. Agreements between the United States
and other countries that make trade free, lower tariffs, or otherwise minimize costs may
be less visible to the general public, shareholders, and other stakeholders, but are
something of which operations managers are required to be aware. The World Trade
Organization (WTO) has supported reduce tariffs to an average of 3 percent today, down
from 40 percent in the 1940s. This is a huge cost-saving and should be explored. Some
such trade agreements are NAFTA (USA, Canada, Mexico), APEC (the Pacific Rim
countries), MERCOSUR (Argentina, Brazil, Paraguay, and Uruguay), and SEATO
(Australia, New Zealand, Japan, Hong Kong, South Korea, New Guinea, and Chile), just
to name a few.
Learning does not happen in isolation. It is best served when encouraging the free flow of
ideas. Customers benefit from this the most, as do the business that actively participates.
Look for opportunities to partner or exchange one strength for another. One country may
excel at manufacturing, while your organization has excellent inventory control. Working
together on a product line may increase efficiency for both parties -- something that
translates into lower prices or increased quality for your customers.
Understand Markets
One of the best sides impacts of participating in international business is the need to
interact with international customers. This can give great insight into current markets,
trends, and customer demands that can assist your business plot a course for the future.
This supports the diversification of product lines, adds production flexibility, and can
smooth out a business cycle.
All of these things give your business a competitive advantage, as the world grows
smaller, due to increased communication and transportation. (universalclass, 2021)
5. Six Sigma
By following the process of Six Sigma and company like CEYLON TOBACCO
COMPANY can reduce the unwanted cost that occurs inside their business and their can
achiever the maximum profits. . Six sigma is a business strategy that seeks to identify and
eliminate causes of errors or defects or failures in business processes by focusing on
outputs that are critical to customers (Snee, 1999).
Six sigma is process or tool which helps and organization to improve their business
process capabilities. This increase in performance and reduction in process variation
helps reduce defects and increase profits, employee morale, and the quality of the product
or service (Hayes, 2019)Six sigma represents a management ideology with a focus on
statistical improvements to business processes. It advocates successful qualitative
evaluation of quality indicators (Staley, 2019).
Six Sigma’s were introduced by Bill Smith from Motorola Company in the early 1980’s.
These six are based on the quality management fundamentals and it can be defined as a
“disciplined, statistical based, data-driven approach and continuous improvement
methodology for eliminating defects in a product, process or service”. The method was
based on the previous methods that were built by Walter Schewart, W. Edward Demin,
Ronald Fisher and many others. In the early 1990’s, this became a popular method with
the usage in GE (General Electric) by Jack Welch. Today hundreds and hundreds of
companies have adopted the six sigma method as a way of doing business. (Slack, et al.,
2007)
Define consist of the information related to problem statement, goal statement, project
scope, resources, timelines, estimated benefits, and business care. Basically, it outlines
the project objectives. Concern about CTC, water scarcity, climate change, income
inequalities and so on problems identified and via the sustainable developments goal aim
to address those issues. In the stage of “measure”, process variables will be measured.
There it collects the process data and obtains the process capability. Within the analysis,
complex analysis tools such as root cause analysis will be used. There it will use the tools
like Pareto charts, histograms, hypothesis tests and other several statistical tools. For the
stage of “improve”, the solutions will be gathered to make further improvements. There it
will use design of experiments, simulation studies, prototyping techniques in order to
improve and maximize the process performances. As for the stage of “control”, after the
solutions were implemented within the “improve” stage, the performance will be
recorded here. In order to monitor the post improvement performance, there should be a
control system. Also through these control plans, the process can be standardized. The
sole purpose of this stage of “control” is to ensure the holdings of the gains. (Lynn, 2019)
This tool was developed by Motorola and Bill smith in 1986. Data-driven analysis is used
to limit errors or faults in an organizational or company operation using the system. this
method helps CTC improve capability as a leader in your organization. is this help to
restructure your business process. Six sigma shows the efficiency of all characteristics of
operation. The CTC using six sigma for minimized the defect in the manufacturing
process. The Lean approach relies on the detection of wasteful interventions that need
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commitment and money. This process provided prized analytic and process skills. Six
Sigma processes need to keep their defect to a maximum of 3.4 per million opportunities.
In six sigma has 5 phases define, measure, analyze, improve and control.
Define-
Six Sigma relies mainly on consumer retention. The issue that needs change must then be
defined by project managers. You ought to consider the challenges as a whole and
understand the preferences of the consumers for this reason. The define stage is related to
the CTC. in the pandemic situation of COVID-19 in Sri Lanka, CTC can’t sell the
product because most the areas are lockdown and isolated. They haven’t the proper way
of selling products to customers in this situation. In this issue of CTC can’t satisfying
customers' wants properly in this situation. How we satisfying the customer needs in this
situation.
Measure
You've got to be careful about the project. You need to jot down the current stage for the
first assessment and use it as a basis for the subsequent evaluations. To calculate the
changes made in the project, it will serve as a guide. In the stage measure the
performance of the current unaltered. In this duration, CTC sale income decreases by
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19.5%. it is a big disadvantage for the company. CTC gives a different kind of solution,
implemented an online platform for buying products, give discounts for every products
customer or retailer buying, supply the CTC products to every grocery shop island-wide.
These are solutions given by the CTC. CTC has to choose the best option for supplier the
products to retailers or customers.
Analyze
The primary goal of this move is to get to the root of the matter. To understand its
primary source, you will exploit the data you obtained from the previous levels. Now
analyzed every solution given for this situation. CTC gives discounts for every product.
In this situation customers and retailers how they buying products from CTC because
most places are lockdown. This option is not suitable for the company. The next solution
is if we supply CTC products to grocery shop in lockdown area or non-lockdown area.
Now retailers have CTC products but other issues are customers can’t buy CTC products,
this solution is not suitable for CTC. the final option is the CTC company introduced an
online platform for buying products for retailers and customers with free delivery.
Improve
The goal of the move is to optimize the overall process using the data and the study
report. To have the desired effects, these changes need to be introduced at the right time.
You therefore ought to prepare a proper action plan and a team that is sufficiently
successful to bring to the table creative ideas. We selected the best solution for the issues
area in our organization. we use the online platform for buying products in this best
solution customers and retailers can buy products. In the future, CTC can increase the
sale percentage. We implement an online platform system for our company. they
introduced a new App for buying products bulk or single purchases.
Control
You need to make sure you follow the Lean Six Sigma Standards in the whole process. If
you notice some anomaly, it should be noted and told that the same. After implementing
the online platform for CTC. now we looked at the progress of the online platform. We
get feedback from retailers and customers about this online platform. Most customers can
fulfill their needs. This process helps to increases customers satisfaction easily and
retailers can buy products on time. CTC company can increase the profit.
working environment for employees; employees are trying to give maximum output
to the company. A device that operates exclusively for the team can be tailored by Six
Sigma.
Role of Leader
While applying the six sigma in CEYLON TOBACCO COMPANY the role of the
leader is to implement and make use of efficient team work and put the effort of team
work for betterment of organization.
To speculate in six sigma training and resources.
To speak the importance of six sigma.
Driving six sigma projects.
Identifying and helping employee participation
Role of manager
Is to plan effective strategies which helps the organization to utilize the available
resources in an effective and efficient manner.
Including Six sigma cost saving in in management goals and reviews.
Giving review and support to the worker in addition because the top
management.
To watch the implementation of the six-sigma approach within the organization
In CEYLON TOBACCO COMPANY, manager can use Six Sigma technique to reduce
wastages and enhance productivity
If we look into all this structure CEYLON TOBACCO COMPANY can use any of this
but currently, they are practicing the Six Sigma where through six sigma they can
reduce the unwanted cost and CEYLON TOBACCO COMPANY main intention is
customer satisfaction therefore six sigma is the suitable structure but in future years if
the company is will to make changes they can look into different structures. Future let’s
look into pros and cons of Six Sigma
The first and most important advantage is that Six Sigma focus completely on the
customer. Within Six Sigma the defect ratio is 3.4 defects per one million products or
service processes. Six Sigma goes beyond the simple error and takes a close look at the
entire process behind the product or service and not only the results and the complaints
that customers have. Six Sigma incorporates a proven record of adding value and
ensuring quality to the output of a business within the kind of incremental improvements
to a product or a service. It should even be wont to optimize supply chain processes and
increase customer satisfaction. The advantages of Six Sigma transcend simple problem-
solving and consider the whole production process from the raw materials to the
top product, as hostile only the top product
No matter the quantity of benefits there'll always be some disadvantages
The first drawback is that Six Sigma can create amazing bureaucracy and rigidity because
the methodology covers all the process of the company and this, in turn, leads to delays
and problems in creativity. Six Sigma inspects the business processes minute-by-minute
and generates substantial amounts of empirical data, resulting in time-consuming and
complex procedures. Also, because it's a top-quality improvement process at its root,
adoption of protocols often results in a rise in costs. It’s also important to
contemplate that when Six-Sigma is implemented into a producing process, problems
arise because the company focuses on Six Sigma endorsed policies only and forgets about
its specific mission statement or policies.
Below are a few of the ways that Six Sigma supports positively for CTC.
Reduce output errors
Six Sigma works to eliminate errors and improve operations using three general things:
metrics, methodologies, and philosophy.
Metrics assess areas of production and output to identify process steps at risk of
causing errors
Methodology examines how a process provides a product or service to a
customer. Six Sigma uses DMAIC models to improve existing processes and
DMADV models to create new processes
Six Sigma also uses a customer-focused philosophy to help CTC to reduce
fluctuations by making better decisions.
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Kaban system is often used for this work flow system so its makes easy to figure and
creates a cushy zone for the staff also. And it’s make tiny low change only so team
members easily can adopt to the present system. And this technique gives
responsibility to each and every person so when a team handle these items they
will easily work with this method. And this theory encourages leaders to create an
improvement within the work place. And folks will creates new ideas and
implement within the work place. (kanbanize, 2020)
“Lean” means the process of eliminating the concepts or factors or activities which don't
add any value to a company or to the process. Through the process of “lean”, it is
intended to remove all the wasteful steps within a process, thus to add value added steps
to the process. As a result of the “lean” method, a company can ensure higher customer
satisfaction and high-quality products as the end result of their process. Further “lean”
would help in improving service or product delivery time, reducing process cycle time
and eliminating the chance of defect generations and inventory levels and also it
optimizes the use of resources while achieving the improvements. The “lean” process is
a waste removal approach which will never end; thus, it promotes continuous chain
improvement as well. (Crawford, 2016)
Types of waste in lean
The concept of “Lean” was first built according to the “Toyota Production System
(TPS)”. This TPS model was built in order to suit the high-volume production
environment. Nevertheless, the concept of lean can be used in either manufacturing as
well as service industry. As discussed as above the lean methodology identifies waste and
these waste are called “Muda”. It’s a Japanese term and was introduced in 1960 by the
Japanese engineer Taiichi Ohno. Further this lean methodology identifies eight types of
waste which has an acronym of “DOWNTIME”. (Crawford, 2016)
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Principles of lean
According to Womack and Jones, there are five key lean principles: value, value stream,
flow, pull, and perfection. As those five steps are easy to remember, it is not always easy
to achieve.
Value includes customer’s needs for a particular product. In order to identify the value, it
is needed to identify a timeline for manufacturing and delivery, price point and other
specific requirements needed to meet the expectations.
After “value” is determined, it is needed to map the “value stream”. Mapping the value
stream contains the main process which involves the process of manufacturing a specific
product from raw materials to final output. This process can be involved with the
production, design, procurement, administration human resource, delivery, or customer
service. There it is needed to identify wasteful steps within a process and need to find
ways to eliminate those steps. This value stream mapping is also considered as a process
re-engineering.
After the waste removing process, the next step “flow” comes to the process. Within the
step of “flow”, there need to be ensured that the production process will flow smoothly
without any interruptions, delays and bottlenecks. This will include cross-functional
activities within departments. Cross-functional activities are a great challenge for a
company to overcome and according to several researches it will gain efficiency as well
as productivity as high as fifty percent and more.
The next step would be “pull”, meaning time to customer or time to market would be
dramatically improved. Basically, this means manufacturing or delivering a product
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exactly in time (just in time). So, the definition of the “Pull” would be, the customer
should be able to “pull” the final output as the time he desired.
The final step would be the “perfection”. Above 4 steps would be a greater start but
without this step, all the efforts will be wasted. It is important to identify that lean is not a
static system and it is needed to have constant vigilance and efforts in order to become
perfect. (Taylor, 2016)
7. New Ideas Ceylon Tobacco Company Has Come Up with For Better
Effectiveness
Currently CEYLON TOBACCO COMPANY has been looking into their customer base
and found out that their customer tend to like a particularly flavor which is called as
Dunhill and also, they notice when time being many customer are fed up with their
flavor they are currently like and switching to alternatives like shisha and Beedi. To
overcome this problem the research team came up with an idea on selecting their lowest
selling brand but which has a good brand image in customer mind and improving that
flavor which customer might like. The production team started to prepare a new flavor
called double-switch which gives a better cooling feel than switch. When this was
released into the market customer had a vibe on trying something new and plenty of
customer came back to CEYLON TOBACCO COMPANY product but even though the
product has achieved what CEYLON TOBACCO COMPANY was expecting,
(Bringing back the customer who switched to alternatives back) still the product wasn’t
satisfying enough the customer disliked the product and went back to the basic of
Switch.
Implementing this new product brought back all the customer back to CEYLON
TOBACCO COMPANY but the product wasn’t surviving in the market therefore the
product had a loss compared to other products of CEYLON TOBACCO COMPANY.
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What is Leadership
Leadership captures the essentials of having the ability and ready to inspire others.
Effective leadership is predicated upon ideas—both original and borrowed—that are
effectively communicated to others in a very way that engages them enough to
act because the leader wants them to act.
A leader inspires others to act while simultaneously directing the way that they act. they
have to be personable enough for others to follow their orders, and that they must have
the critical thinking skills to grasp the most effective thanks to use the resources at an
organization's disposal. (Susan, 2020)
What is Management
Management is that the coordination and administration of tasks to Reach the goal. Such
administration activities include setting the organization’s strategy and coordinating the
efforts of staff to accomplish these objectives through the applying of
accessible resources. Management can even visit the seniority structure of staff
members within a company. (indeed, 2020)
In general, there are five basic functions of a manager:
Setting objectives
Organizing
Motivating the team
Devising systems of measurement
Developing people
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When implementing operation management leader and manager has lot of tasks to be
done. If we look into few of the risk when implementing the Six Sigma the role of a
leader will be to implement and make use of effective team work and he must be the one
to motivate the team and make them work efficiently and also the leader must be the one
who will be talking about Six Sigma importance’s so a leader must know well and
understand what is Six sigma and how to use it. And a role of leader when applying Six
Sigma is to plan effective strategies which helps the organization to utilize the available
resources in an effective and efficient manner and if the manager doesn’t know well to
efficiently manage the available resource and if he isn’t trained enough he would mess up
the whole plan will would put CEYLON TOBACCO COMPANY in a devastating
position.
Not only when implementing Six Sigma the leaders and manager will face problem will
they be facing problem when implementing each and every technique. In Kaizen the role
of the manager is to measure how the team doing and he must motivate and train the team
slowly to work efficiently if the manager couldn’t teach his employees on how to develop
there won’t be any use in implementing Kaizen technique. The role of the leader when
implementing Kaizen will be to find out who will fit in which team and prepare the best
kaizen team and also he must Find out the benefits of individual in team and also the
manage teams benefits as well and if the leader doesn’t create the best kaizen team by
sorting out his employee the team won’t perform to the expected standard their
performance will be ineffective.
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9.1 KAIZEN
KAIZEN is a Japanese word once created by (Masaki, 1990) which mean “Change For
better” or “Continuous Improvement”. The word KAIZEN is a tool of continues
improvement in business world where KAIZEN is a problem solving method with present
assets, KAIZEN can assist a company to create “non-stop excellent improvement culture”
to satisfy in/external customers’ delight and expectation. KAIZEN can find root reasons
of issues and solutions, improve all types of management, improve satisfactory of
offerings and ten make stronger group work (Taleghani, 2010). The idea or concept
KAIZEN includes a wide range of ideas.
KAIZEN is not only useful for a company but it can help your employees. Clients and
also KAIZEN can be helpful for a normal person to run his own life. This theory of
leadership applies to most kinds of business. Kaizen acknowledges and rewards
employees ' efforts. It provides them a feeling of value in the organization by doing so.
Improved teamwork is one of the main benefits of kaizen. Kaizen is a teamwork-driven
quality enhancement instrument.
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PDCA Model
The use of the plan-do-check-act process allows a project to be broken down into small,
manageable steps and allows gradual incremental changes. (Amit, 2018)
Management Changes
PDCA not only encourages the development of innovative and breakthrough changes to
ensure improvements in quality and performance, but also helps to effectively manage
change.
The PDCA model integrates what needs to adapt to quality improvement methods. The
change process under PDCA includes implementing criteria that require change in the
planning aspect (plan), prototype implementation (do), prototype examination for
suitability and efficiency (check or learn) and widespread implementation or effective
prototype implementation (act). It helps to incorporate the process of change management
into the usual day-to-day corporate operation, thereby making the transition process
seamless. (Amit, 2018)
Managing quality
One of the main uses of this process is in managing quality. PDCA 's continuous
feedback loop allows for the analysis, measurement and identification of sources of
variation from customer requirements and enables corrective action to be taken.
PDCA is the common method for applying Total Quality Management and is the basis for
the initiative Six Sigma DMAIC. Implementing these quality systems relies on the
statistical analysis and control which is facilitated by PDCA. (Amit, 2018)
Maintaining Project Control
The PDCA model allows project managers to retain, in several respects, greater control
over a given project, like:
Providing responses to the projects who, what, where, where, and why. This increases
knowledge which facilitates the exploration of various alternatives and the selection of an
appropriate method of project implementation.
Ensure the unknowns remain either confirmed or discounted at the start of the
project.
Providing timely and reliable data to enhance decision-making.
Allowing a better understanding of the phenomenon of cost and effect.
Managing Performance
One recent application of Plan-Do - Check-Act is in day-to-day routine performance
management of individual workers and project teams. The "plan" phase incorporates the
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employee or team's targets or deliverables. The "do" process is the actual result, and the
performance is evaluated in the "test" process. Such output is verified by the process
"play."
A distinct "workers" role remains in most companies’ performance management – or its
older variant of performance-appraisal. The PDCA performance management approach
integrates performance management with the day-to-day operational activity and
contributes in a big way to improving productivity. (Amit, 2018)
Competitiveness at the company
Applying the PDCA process lets the enterprise become agile or implement fast, closed-
loop management.
The method also helps to automate the operation of an organization's demand
management, supply management, distribution management, fast company
reconfiguration and IT systems.
Including addressing uncertainty and enhancing communication between various
processes speeds up market cycles, increasing the productivity of the company.
Kaizen is the Japanese word. This name translated into the English meaning is the
continuous improvement. This is not a tool for improving manufacturing quality. This
method applies to the CTC, they can reduce wastage, improving productivity, and
increases the efficiency of production. kaizen method identified the three types of
wastage MUDA, MURA, and MURI. The theory of Kaizen encourages everyone to take
responsibility and strengthen their systems. Kaizen, staff are actively tracking and finding
prospects for progress and development at all levels of the company. this kaizen method
beginning with the Toyota production system.
Plan – this stage CTC identified and understanding problems area. Perhaps the quality of
a final product is not good enough, or better performance should be achieved as an
element of your selling process. In the CTC main problems area is the material issues.
CTC currently facing this big issue, in the market no proper raw material suppliers, the
company can’t manufacture their products properly. In this planning stage, CTC
identified the issues area they have to plan how to increases the efficiency of the
manufacturing process.
Do – this CTC has some issues, the company find the solution for issues area and
implemented. CTC facing raw material issues, the company can’t get maximum output
from employees and the factory. Now they plan to increases the efficiency of production,
in the market issues of raw material. CTC plan to manufacturing its own raw material.
Then the company can increase the efficiency of the production. CTC changes these
things and the company can increase the efficiency of operation. These solutions are
enough for the issues to be identified. Using this solution and CTC how to increases the
efficiency, the company using its own raw material is the solution for all the issues they
identified.
Check- determine if the proposal was a success, review the outcomes of the pilot project
against the goals you established in Phase 1. Check the manufacturing process after
implementing the new solution. Check the progress of the process. The company doing
these things and they can increase the efficiency.
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Act- this stage identified the implementation successfully or not. CTC manufacturing raw
material, they have to identify how the company can increase the efficiency of the
manufacturing process. If the company increases the efficiency of the manufacturing
process. This implementation is correct.
Focus on customers
Communicating strategy,
Aligning goals across processes,
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Improvement is reflective
Taking regular feedback about how things are going is another important principle of
the model.
It is important to strength or provide more communication way to employees in each
stage of improvement for the leaders to stay engaged with the process and that the
improvement goals are on track. But ensuring the improvement is reflective is one of the
hardest challenges in this process of continuous improvement. That’s why it’s essential
that you open up communication and collaboration in real-time. Employees keep up to
date reports on the program, while management can monitor the improvements that are
relevant for them. (Maggie, 2018)
Improvement is measurable and potentially repeatable
A company can’t simply make and change and say it is an improvement. To achieve a
real improvement the company must analyses and measure the impact of change. This
makes it possible to determine if the change can be applied successfully to other
problems. There are few strategies or tool used by some companies to find it like the
proving positive ROI.
Making continuous improvement part of company culture is a superb and cost-effective
approach to tackling an organization’s most difficult challenges. When supported by
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Below are the benefits that CTC have gained from CIP
Improved product quality
Increased efficiency and productivity
Decreased cost
Reduced waste
Employee satisfaction and teamwork
Customer satisfaction
Limitations of CIP
Incremental improvement
Continuous improvement is usually implemented as a gradual process in which progress
is made in small steps according to a set of established assumptions. To implement a
formal continuous improvement program, the team defines a set of desirable goals and
works towards these results. However, the actual improvement may be obtained by
crushing the mold and exploring a completely different direction. (Bizfluent, 2011)
Stifled innovation
If your business defines how you want to grow and improve, it may limit itself to certain
types of development and lock yourself in to other possibilities. This creates the
possibility of choking rather than rewarding the creativity of the staff, in addition to the
loss of opportunity. (Bizfluent, 2011)
Inadequate implementation
While continuous improvement itself tends to be good for the organization, it may not be
implemented effectively. The purpose may not be clearly communicated or the manager
may not be sufficiently motivated to follow the improvement. If the staff are not
motivated or feel that their efforts are being wasted, a continuous improvement program
can cause more problems than profit. (Bizfluent, 2011)
Lean Management
Lean management may be a technology designed to cut back waste and maximize the
worth of a product or service to customers without compromising the standard of the
products and services. Lean management systems use numerous tools to attach customer
value with business processes and folks (Bhasin, 2015). Lean synchronization is that
the approach which relates on removal of the waste during a production process which
enables the organization to supply the nice or services with the precise amount of
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Standard work helps minimize the variation within the way work is completed, and thus
minimizes fluctuations in achievement.
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In some cases, though, the average employee can’t help too much with process
improvement. While they do know their job, they can’t help with anything overly
technical. For those employees CTC introduced Kaizen events.
Process re-engineering
The value stream mapping is also considered as a process re-engineering. This business
process re-engineering is identified as a business management strategy. It was identified
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in the 1990's and it basically focuses on workflow management with the designs and
analysis and is concerned about the business process and the approach of an organization.
(Taylor, 2016)
In the 2013, CTC was in a depression, and in an attempt to cut costs. CTC decided to
scrutinize some of their departments in an attempt to find inefficient processes.
One of their findings was that the accounts payable department was not as efficient as it
could be: their accounts payable division consisted of 57 people.
Accordingly, CTC management set themselves a quantifiable goal: to reduce the number
of clerks working in accounts payable by 27 employees. Then, they launched a business
process reengineering initiative to figure out why was the department so overstaffed.
They analyzed the current system, and found out that it worked as follows:
When the purchasing department would write a purchase order, they sent a copy to
accounts payable.
Then, the material control would receive the goods, and send a copy of the related
document to accounts payable.
At the same time, the vendor would send a receipt for the goods to accounts payable.
Then, the clerk at the accounts payable department would have to match the three
orders, and if they matched, he or she would issue the payment. This, of course, took
a lot of manpower in the department.
So, as is the case with BPR, CTC completely recreated the process digitally.
Material control receives the goods and cross-references with the database to make
sure it matches an order.
If there’s a match, material control accepts the order on the computer.
This way, the need for accounts payable clerks to match the orders was completely
eliminated.
Looking into the waste section of CEYLON TOBACCO COMPANY they have been
trying all the method to reduce their waste and improve their profits. A company can
increase their profits by reducing their wastes. CEYLON TOBACCO COMPANY has
been following the lean management to reduce their wastes well they have been giving
training to employees to be efficiency and reduce the mistakes occur while production.
Also CEYLON TOBACCO COMPANY is improving their technologies time to time to
make the production more efficient and old machineries can make more mistakes than
new machineries.
In Future CEYLON TOBACCO COMPANY is trying to reduce the use to cigarettes by
50% and increase the production of E-cigarettes more which is less harmful than
cigarettes and in this process CEYLON TOBACCO COMPANY can reduce their Waste
by 80% because E-cigarettes doesn’t needs and tobacco leaves
A new product will be created out of innovative and creative ideas. The ultimate goal of a
new product would be to satisfy its consumers. New product development system would
consist of seven steps. Those will be idea generation, screening and evaluation, business
analysis, development, testing and commercialization. CTC performs the new product
development system and using this they were able to export such innovative products in
the past. (Evans, 2015)
Customer relationship management Systems (CRM)
CRM software includes categories in order to control and process customer interactions
as well as customer data. These applications would support vendor/partner relationships
within a business. (Evans, 2015)
Recommendation
The problem that CEYLON TOBACCO COMPANY has been facing in recent years are
that their research team isn’t working well to research about the product and also ageing
of machineries causes plenty of wastage issues. A failure of Research team was the new
introduction of a new flavour in Dunhill brand which is double switch which made the
customer come back to CEYLON TOBACCO COMPANY products but still made a
huge loss. As extra wastage becomes a liability. Since, 6 SIGMA is rigid it does not
allow any room for creativity thus, even when the production method becomes old the
less room for creativity does allow the company to improvise on that disadvantages they
have although it reduces wastage in the short – run, in the long – run this can be quite
disadvantageous since it does not allow room for improvement.
Foreign Tobacco companies like Japan Tobacco International is following the 5 why’s
continuous improvement management tool to find out what is the cause of failure by
digging into the root. I would suggest CEYLON TOBACCO COMPANY Research and
development team to follow 5 why’s tool to dig into the root of the cause and keeping
asking they why 5time constantly by keeping on asking ‘Why” several times in a row,
you can dive deeper into the heart of the problem. This method enables CEYLON
TOBACCO COMPANY to come up with potential solution for their failures into new
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To overcome the wastage issue CEYLON TOBACCO COMPANY must use the
KAIZEN tool a little bit as well. Since, Kaizen by definition is continuous improvement
therefore, by incorporating something such as this would enable CEYLON TOBACCO
COMPANY to broaden their perspective of things and keep improving the operations of
the company and even the technique of 6 SIGMA will continuously be encouraged to be
understood by every employee thereby the wastages incurred will be reduced and the
same time the operations would improve as well.
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Section – B
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Cost management
- Total cost is 15,000/=. It is the only cost to do the project. We get the money from
sponsors.
Deliverables
Raising health stability and sanitation awareness during pandemic by conducting
"Breath 22" project.
To help better the lives of patients and extend kindness and friendship to those in
need by donating the proceeds from the sale to the cancer ward.
Successfully completing the project with enhanced team confidence, decision-
making skill, analytical thinking, scheduling, risk management, and interpersonal
skills.
On the other hand, when the BM students successfully complete the project, the students
will be able to complete a part of the assignment in the topic, 'Operations and Project
Management'. Additionally, BM students can identify steps and information essential to
achieving project goals. The project will improve individual skills such as analytical and
critical thinking, creativity, communication, team trust, leadership skills, and decision-
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making ability among team members. In addition, students can point out the solution to
problems with new phenomena and also team members can have a clear idea on how to
held a CSR event adapt to the changing environment. By managing time, the team can
develop punctuality in the publication of the final work.
07.CSR activity
BREATH '22"
This task was initiated to assist cancer patients during the quarantine period in the face of
the spread of covid 19 virus. Our CSR project included both epidemiological care and
food donation for cancer patients.
The required dry rations will be listed and delivered to the 48 Cancer Ward of the Kandy
General Hospital.
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Contingency plan
Art competition awareness on COVID-19
08.Sponsership
The first step in the CSR expansion was to print an Esoft mask that could protect against
the COVID-19 pandemic. The money for this will be provided by the parents of two
students of the HND BM 28 batch. (Mr. Tillakaratne- Rs. 2500.00 Mrs. Dharmasiri -
Rs.2500.00) The money will be invested, and 100 masks will be printed.
Were all participants given clear instruction and guidance to participate in the project?
How many members, participated for the activity?
Were the participants happy and satisfied with the way project was conducted?
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………………………………. ...
………………………………
Mr. DimuthuThammitage Dr. Sirilal Waranakula
……………………………..
…………………………………
Mrs. Yamuna Nawaratna Mr. Mohammed Fazal
……………………………..
………………………………. Miss. Hiruni Weerakoon
Mrs. Lasitha Rajapaksha
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