Operation And Project Management Operation And Project Management

Operation And Project Management Operation And Project Management 1 INTRODUCTION 1 TASK 11 P1 Conduct a review and critique of the implementation of operations management principles 1 TASK 24 P2 Prepare a continuous improvement plan based on the review and critique 4 TASK 37 P3 Apply stages of PLC to business case, project plan, work breakdown structure7 TASK 48 P4 Review 2010). and critique the effectiveness of the PLC in application 8 CONCLUSION 9 REFERENCES 10 INTRODUCTION Operation management isan area

Operation And Project
Management

Table of Contents
Operation And Project Management ..............................................................................................1
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Conduct a review and critique of the implementation of operations management principles
.....................................................................................................................................................1
TASK 2 ...........................................................................................................................................4
P2 Prepare a continuous improvement plan based on the review and critique...........................4
TASK 3............................................................................................................................................7
P3 Apply stages of PLC to business case, project plan, work breakdown structure.................7
TASK 4 ...........................................................................................................................................8
P4 Review and critique the effectiveness of the PLC in application..........................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Operation management is an area which is focused on design, controlling and production
as well as redesigning of the business operations within an organization for manufacturing
process of the goods and services. It is majorly used to enhance the efficiency and effectiveness
of planning with activities which made a significant impact on the business process of the
organization. In this report Hotpoint Electric Heating Company that is also refers as Hotpoint is
an electric appliances company which was originated in the United States in the year, 1911. It
offers a large range of fridges, freezers, electric cookers, washing machine and so on but not the
television. So now it is launching a 58 inches television and stadium screen in the market. The
report covers six sigma, continues improvement plan, product life cycle, etc (Antonio, Martins
and Ramos, 2012).
TASK 1
P1 Conduct a review and critique of the implementation of operations management principles
Operation management can be refer as production management cause it includes all the
phases which requires to develop a product or services. It includes plan and design, installation
of system components, installation integration and configuration, validation, testing ad security
system and roll out the final product. There are some necessary states which needed to improve
things and procedure to attain the higher efficiency. There are ten principles of operational
management which needed to followed by the every organization even by Hotpoint also which is
introducing a television in the market but it needed to concentrated on the core operational
management principles, such as -
 Reality – operational management should concentrated on the problem instead of the
techniques because there is no specific universal solution for a problem. Every problem is
different and that needed to solved by the distinct tools. The Hotpoint should focus on the
reality of the problem not on the techniques cause they might be changed with the
problem.
 Organization – There are several processes for manufacturing and they all are
interconnected. All elements are predetermine and consistent to attain a similar outputs in
order to generate profits. The Hotpoint need to follow a systematic sequence to produce
TV and stadium screen.
 Fundamentals – The Hotpoint should adhere with its rules to maintain the records and
disciplines (Beringer, Jonas and Kock, 2013).
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 Accountability – If the Hotpoint meet to desired goal then the managers are expected to
set the rules and metrics, and define responsibilities of their subordinates to check that
they are putting the efforts to attain the target.
 Variance – The Hotpoint should encourage variance of processes because if they
managed well then it can be source of innovation (Blomquist and et. al., 2010).
 Causality – Causality defines problem as symptoms because if there is a problem then it
can attack again and the same situation will appear again.
 Managed passion – If the employees of the Hotpoint have a passion to work then only
the company will grow and the mangers need to motivate them in such a enthusiastic way
that can increase their zeal to work.
 Humility – Hotpoint's managers can take the help to avoid the costly trials and loads of
errors that can increase the cost and time of development process. They should
acknowledge their limitations with a phrase which said 'get help and move on'.
 Success – Success is to keep customers happy , if they are happy then all the above
principles revised again. The Hotpoint should always focused on the end users then
success will follow them spontaneously.
 Change – The Hotpoint should not stick at one point cause there are so many new
changes in theories and solutions. So they should embrace the modification and manage
to stay in the long run.
Six sigma methodology
Six sigma principles forces to change to occur systematically and it started as a problem
solving approach to reduce the variation in a production and manufacturing environment. It is a
systematic approach to eliminate the errors and that is fruitful to improve the quality of the
products and by using the statistical methods. The Hotpoint can use Six Sigma methodology in
order to reduce the defects in development phase of television. It can accomplishes its goals by
using two Six Sigma methods: DMAIC and DMADV (Brauers and Zavadskas, 2010).
Six sigma DMAIC
The Six Sigma DMAIC is used to improve the existing process and its acronym stands
for :
 Define the problem and desired outcome.
 Measure the ability of the process.
 Analyse the data and identify the root cause of variations (defects).
 Improve or modify the processes so that fewer variations (defects) are produced.
 Control the process. Prevent and correct variations before error occur in the result.
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Six Sigma DMADV
Six Sigma DMADV is used to design a new process, its acronym stands as:
 Define design standards that are align with the product or process goals.
 Measure and identify the characteristics of the product or process that are critical to the
quality.
 Analyse the data and recognize the possible sources of errors.
 Design alteration that will terminate the sources of defects.
 Verify that the design is applicable to meet the requirements (Fernández and Rodríguez,
2010).
Six sigma principles
The six sigma is based on five principles that are mentioned below :
 focusing on customer needs.
 Using extensive measurement and statistical analysis to understand how work gets done
and to identify the root cause of the problem.
 Being proactive in abolish variations and continuous improvement in process.
 Involving people in six sigma cross functional teams.
 Being exhaustive and being flexible.
Lean principles
Lean refers to an organization which understands customer value and focuses on its key
processes to continuously increase it. The ultimate goal of the lean to provide perfect value to a
customer through a perfect value creation that has zero wastage. There are five basic principles
of lean thinking that are as follows :
 Value : It is focused on the price which is paid by the customers against the product and
services. It includes all the process from top top bottom which can meet the goal with less
waste in the development iteration in order to offer a less cost to the end users.
 The value stream – The value stream recognize the costing at each iteration of the PLC
through out the procedures including the raw material to deliver goods. It involves the
design, manufacturing, production, human resources, administration, delivery to the
customer, etc. It consists of the entire flow of work which aid to attain the desired goal by
avoiding the irrelevant things (Fleming and Koppelman, 2016).
 Flow – As the name suggests it make the entire flow smooth without interruptions, delays
and obstacles (Gunasekaran and Ngai,2012).
 Pull – Pull has just in time approach cause it generates the goods on order, so there is no
waste. It does not stock the material and finished goods so it make easy deliverables.
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 Perfection – Perfection state that there is always a scope of improvement.
Illustration 1: he Five Principles of Lean
Source : The Five Principles of Lean, 2017
TASK 2
P2 Prepare a continuous improvement plan based on the review and critique
Kaizan or continuous improvement is a long term approach to work that systematically
seeks to achieve small, incremental changes in the process in order to improve efficiency and
quality. Continuous improvement plan is an existence effort that improves the products and
services through modifying the processes. It is a practice of constantly re – examining and
improving processes, CIP (continuous improvement plan) is adopted by the companies to
enhance their productivity, quality, efficiency and profit for sure. It focuses on the management
systems like business process management, business process improvement, business process re-
engineering, quality management, project management, program management (Lenfle and Loch,
2010).
The Hotpoint can adopt the continuous improvement plan in order to develop the
televisions. There is no process or procedure that an entrepreneurship can adopt and tell the
employees that this process will take a place from now on. All the employees are going to work
with technique or process, this not the way to put a completely new process in practices. So
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there is a way from where the Hotpoint can begin a new improvement. The first and foremost
step to ask for the some improvement suggestion, if they have something better idea for
modification then one should allow a team to work on that concept according to the skills. The
organization is planning to introduce television so they can adopt CIP like in order to re-
engineering the old development techniques of television (Mir and Pinnington, 2014).
There is a four step model that shows in a circle because it repeated again and again in a
process, the model known as “Plan Do Check Act” cycle (PDCA) which is incorporated by Dr.
William Edwards Deming and Walter Shewhart. The PDCA cycle as follows :
 Plan – In the first step one need to identify the present opportunities and create a plan for
improvement. The Hotpoint can begin by defining the problem, outline the opportunities,
brainstorming ideas and developing a plan.
 Do – After identifying a possible solution the plan can be implement on a small scale,
because small scale implementation allows to test solutions and figure out the whether
the it gives desired output or not.
 Check - While checking the output of the previous stage the firm can compare results
with the expected outcome the one which are outlined the in the planning phase. If the
expected outcome is not yet achieved then the cycle can start again and if it is working
properly as predicted then the process can continue to the fourth stage of the cycle.
 Act – During the last stage, the Hotpoint can implement the solutions on the wider scale,
and keep it mind that PDCA cycle is not a one – time initiative, whenever there is an
opportunity to improve then the organization can repeat the process again (Pemsel and
Wiewiora, 2013).
The Hotpoint's wanted to know the review and critique of new innovation of television and
stadium screens on the basis of operational management through the CIP, that is as follows:
Improvement Present position Aim Time frame
Designing The design should be
attracting with new
techniques and
technologies. There
are so many features in
the TV that needs
innovation with unique
The main aim is to
allure the customers
through designing for
what they are looking
for (Ramasesh and
Browning, 2014).
As designing is the
one will take
approximately five
months with an
effective
developments.
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advancements.
Quality The television is 58
inches but the
Hotpoint need to be
careful about the
quality during all the
phases to manage the
quality. Because
quality is the major
factor for what
customers are going to
pay.
The quality check will
go from various
quality checks.
It will take almost 8
months to assure all
the verification.
Packaging Packaging is the one
of the most important
thing cause it keeps
safe the product. It
needs to use variety of
material to provide the
security of the
television.
The aim of the
packaging is to deliver
product to the
customer without any
damage (Robichaud
and Anantatmula,
2010).
Packaging can take 1
month only after
deciding the criteria
and requirements of
materials.
The Hotpoint has so many benefits to adopt continuous improvement plan such as :
 Increased productivity & profits
 Employee morale and accountability
 Greater agility
TASK 3
P3 Apply stages of PLC to business case, project plan, work breakdown structure
The project life cycle or PLC refers to a five step process that is followed by nearly all
the managers during the completion of a project. It provides framework to manage any kind of
project within a business. The Hotpoint can also adopt this project development life cycle to
construct a television, the PLC stages as follows-
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1. Project initiation – Initiation is the first phase of the project life cycle, in this stage the
value and feasibility measured. The project managers use two evalutaion tools top decide
to pursue a project or not, that is :
Business case document – This document justifies all the requirement for the project, and it
includes an estimate of potential financial benefits (Söderlund, 2011).
Feasibility study – The feasibility study identifies the goals, timeline and costs to
determine the project should executed or not. It recognise the balance of the requirements of the
project with available resources to see that if firm pursues that project does it make any sense.
2. Planning – Once the project receives a green light in the previous stage then it needs
to develop a plan to direct the team. It also manages time and budget along with a
written document of resources. The project plan gives the team direction for
producing quality outputs, handling risk, creating acceptance, communicating
benefits to stakeholders and managing suppliers. The project plan also prepares teams
for the hurdles which might encounter over the course of the project and helps them
to understand the cost, scope and time frame of the project.
3. Project execution – Execution is all about the delivery of the project that satisfies the
customers. Team leaders allocates the resources to the team to accomplish their
assigned task.
4. Project monitoring and control – Monitoring and controlling can be combined with
execution because they often occur same time. As team executes their plan they need
to constantly monitor their own progress. Team must focus on the performance to
deliver the promised quality of the television within time and cost.
5. Project closure – Teams close a project when they deliver the finished project to the
customer, communicating completion to stakeholders and releasing resources to other
projects (Subramanian and Ramanathan, 2012).
Work Breakdown Structure (WBS)
A Work Breakdown Structure (WBS) is a key project deliverables that organizes the
team's work into manageable sections. The work breakdown structure defines the scope into
manageable chunks that a project team can understand with separate details on each level.
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Illustration 2: How to Improve Productivity With a Work Breakdown Structure
Source : How to Improve Productivity With a Work Breakdown Structure
Gantt Chart – Gantt chart can be define as a timeline which is used as a project management
tool to illustrate how the project will run. It contains the information about individual tasks,
durations and sequences of these tasks (Turner, 2016).
TASK 4
P4 Review and critique the effectiveness of the PLC in application
The product life cycle is an excellent tool which is used by the managers in order to
evaluate success factors of the project. The Hotpoint is working on the introducing the television
and stadium screen for the customer and their changing demands. The project life cycle is one of
the best way to evaluate a project in both positive and negative manner.
In the initial stage it recognizes the problem regarding the business document and
feasibility study these both are the factors which determines that whether the project should
pursue or not. Because if there is a any negative element in the initial stage then project growth
can be stop there, this will save the cost and time (Martins and Ramos, 2012).
If the firs stage has been crossed then the further planning will be discussed and from
here the strategies will take place in order to complete a process. The planning phase will include
the resources and budget that needed to invest in a project. While working on the execution
process monitoring and controlling is also essential because the process of should not overs flow
to the estimated cost and time. If there is a requirement to exceed the limits then that might get
take some amount than predicted. The basic purpose to monitoring and controlling is to budget
and available resources with maximum efficiency. After crossing all the stages with
predetermine stages. In every project PLC is very important cause it delivers a satisfaction to the
customer and Hotpoint both. As it known that TV is a new product for the company so it needed
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pass on through various process. As the all process are done this requires to take proper care to
sale the product according to the customer requirements which can satisfy the customers.
There are various benefits of the project life cycle which can be attain by the Hotpoint while
launching 58 inches television. The benefits are :
 It manages risks by reducing the possibilities of defects and it also minimizing the
complexity of the system (Beringer, Jonas and Kock, 2013).
 Every task completed in the different module so that the work should be aligned in
manner that can be understand and easily managed.
 There is a communication that gives a facility to send and revive the messages to the each
stage while work in progress.
 It analyse all the obstacles in the initial stage which can be risk while launching a product
(Blomquist and et. al., 2010).
CONCLUSION
The above report is based on the operational and project management of Hotpoint that is
launching a television with 58 inches and stadium screen. It comprises all the tools and
techniques of operational management like six sigma methodologies, lean principles, project life
cycle, continuous improvement plan. This about how a business can be sustain in a long run with
maximizing the profits and encourage the workers to put their efforts to grow a company.
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REFERENCES
Books and Journals
Antonio Martins, V. and Ramos Martins, M., 2012. Outsourcing operations in project
management offices: The reality of Brazilian companies. Project management journal.
43(2). pp.68-83.
Beringer, C., Jonas, D. and Kock, A., 2013. Behavior of internal stakeholders in project portfolio
management and its impact on success. International Journal of Project Management.
31(6). pp.830-846.
Blomquist, T. and et. al., 2010. Project‐as‐practice: In search of project management research
that matters. Project Management Journal. 41(1). pp.5-16.
Brauers, W. K. M. and Zavadskas, E. K., 2010. Project management by MULTIMOORA as an
instrument for transition economies. Technological and Economic Development of
Economy. 16(1). pp.5-24.
Fernández-Sánchez, G. and Rodríguez-López, F., 2010. A methodology to identify sustainability
indicators in construction project management—Application to infrastructure projects in
Spain. Ecological Indicators. 10(6). pp.1193-1201.
Fleming, Q. W. and Koppelman, J. M., 2016, December. Earned value project management.
Project Management Institute.
Gunasekaran, A. and Ngai, E. W., 2012. The future of operations management: an outlook and
analysis. International Journal of Production Economics. 135(2). pp.687-701.
Lenfle, S. and Loch, C., 2010. Lost roots: how project management came to emphasize control
over flexibility and novelty. California Management Review. 53(1). pp.32-55.
Mir, F. A. and Pinnington, A. H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management. 32(2). pp.202-217.
Pemsel, S. and Wiewiora, A., 2013. Project management office a knowledge broker in project-
based organisations. International Journal of Project Management. 31(1). pp.31-42.
Ramasesh, R. V. and Browning, T. R., 2014. A conceptual framework for tackling knowable
unknown unknowns in project management. Journal of Operations Management. 32(4).
pp.190-204.
Robichaud, L. B. and Anantatmula, V. S., 2010. Greening project management practices for
sustainable construction. Journal of Management in Engineering. 27(1). pp.48-57.
Söderlund, J., 2011. Pluralism in project management: navigating the crossroads of
specialization and fragmentation. International Journal of Management Reviews. 13(2).
pp.153-176.
Subramanian, N. and Ramanathan, R., 2012. A review of applications of Analytic Hierarchy
Process in operations management. International Journal of Production Economics.
138(2). pp.215-241.
Turner, R., 2016. Gower handbook of project management. Routledge.
Online
The Five Principles of Lean, 2017. [Online]. Available through: <https://theleanway.net/The-
Five-Principles-of-Lean>
How to Improve Productivity With a Work Breakdown Structure, 2016. [Online ]. Available
through: <https://blog.ganttpro.com/en/how-to-create-a-work-breakdown-structure-wbs-with-
project-planning-templates/>
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