Role of Operations Management in Organizations

The provided assignment discusses the significance of operations management within an organization. It highlights how operation management aids in formulating plans, measuring them, and maintaining functionalities, which helps obviate mistakes and enhance productivity. The document also touches upon the importance of continuous improvement plans, different styles of leadership, and the application of various theories and principles to achieve effective results and maximize outcomes.

Operations
and
Project Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Review and critique on implementation of operations management principles within an
organisational context.................................................................................................................1
P2 Continuous improvement plan based on review and critique of operations management
principles within an organisation................................................................................................5
Effectiveness of continuous improvement plan:..............................................................................6
TASK 3.......................................................................................................................................6
P3 Apply PLC to a given project for producing necessary supporting documentation for
completion of project..................................................................................................................6
TASK 4.....................................................................................................................................10
P4 Review on effectiveness of PLC in application to the chosen project by applying
appropriate theories, concepts and models................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Operations management refers to process of administration of business practices by
which highest level of efficiency can be created within organisation. It is related with controlling
and designing of business operations for production of services and goods (Binder, 2016).
Project management refers to practice of initiation, planning, execution, controlling and
terminating project by which organisational can be attained in specified period. In this report
Hotpoint organisation is considered, which is a electric heating company which was founded in
1911. It offers product like refrigerators, dishwashers, washing machines, freezers, tumble dryers
and cookers. Organisation is further looking to expand their services, they are launching 58
inches television. This report includes principles of operation management, continuous
improvement plan in reference to Hot point. Apart from this, project life cycle is discussed and
its effectiveness.
P1 Review and critique on implementation of operations management principles within an
organisational context
Operation management is concerned with formulation of plans, their organisation and
supervision of processes so that effective improvements can be done by which profitability can
be maximised. It includes utilization of resources from employees, materials, tools and
technology by which raw materials can be transformed into services and goods. Project
management refers to application of methods, processes, experience, skills and knowledge to
accomplish objectives of project. Different principles of project management which provides
efficient guidelines in functionality of organisation are mentioned below:
Principles of Operation management: Certain principles are followed by Hotpoint organisation
to ensure that operations and business activities are performed with high accuracy and within
stipulated duration of time.
Principles of Reality:
This principle states that focus of operation management must be on problem rather than
techniques used for its implementation. As no tool will be able to provide universal solution.
Management of Hotpoint organisation identifies requirements of their customer and as per that
they are launching a new product within market (Galloway, Rowbotham and Azhashemi, 2012).
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At present they are providing their services in terms of freezers, air conditioners, refrigerators,
dishwashers, cooking products, dryers and washers.
Principle of Organisation:
This principle states that processes which are involved in manufacturing are interrelated.
In order to receive identical outcomes in terms of profit, all elements must be consistent and
predictable. This means that Hot point must focus on that all parts of their upcoming TV are in
exact position, i.e. there hardware and software must be linked with each other so that
functionality which they want to provide to their customer must be provided without any kind
hurdle (Harrison and Lock, 2017).
Principles of fundamentals:
This principle of operation management states that around 80% of success can be
achieved by strict support to maintain discipline and record. Apart from this, rest 20% comes
from using different techniques to processes. Records are related with inventory, raw material
available, etc. Management of Hotpoint need to consider both the aspects to ensure long lasting
survival. For this, they must have effective strategies for keeping records.
Principle of accountability:
As per this principle, manager are hoped-for formation of metrics and rules. They must
be responsible for providing responsibilities to their subordinates and identify whether goals are
attainable or not. By this, employees can put their potential efforts and appreciate that effort.
Managers of Hot point have assigned roles and duties to their employees and when they are
successful in accomplishment of those roles then, rewards are given to them.
Principles of causality:
This principle states that, problems are symptoms of underlying causes. Problems will
occur again if their causes are not attacked (Jacobs, Chase and Lummus, 2014). Management of
Hotpoint make sure that, their employees are effective with their work and are well experienced.
An example can be considered to further understand this concept like, if any function of TV is
not working effectively, then manufacturing team of Hot point needs to evaluate the reason for
same so that problem may not occur again.
Principles of success:
As per this principle, success will change with time but consideration must be given to
requirements of customers. In order to have strong customer base all the principles must be
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reviewed occasionally. Management of Hotpoint need to make sure that needs of their
customer’s are addressed effectively so that they can be retained in future.
Principle of change:
This principle states that, there is advancement in techniques, new theories are devised
and fresh solution to problems, so they must not remain on one or other theory. They need to
grasp change and maintain steadiness for longer duration. Management of Hotpoint is updating
their system as per change in technology as well as requirement of market and customers
(Kerzner and Kerzner, 2017).
Six sigma:
It is referred to as collection of tools and techniques for enhancement of processes. It was
found in 1980 by Bill Smith. Six sigma approach look for enhancement in quality of outcome of
process by evaluating and eliminating grounds of defects and reducing fluctuation in business
and manufacturing processes. For execution of six sigma, two methodologies are initiated, they
are: DMADV and DMAIC. Six sigma DMAIC (stands for define, measure, analyse, improve,
control) is used to modify a process which is already existing. Six sigma DMADV (stands for
define, measure, analyse, design, validate) is used for creation of fresh process. Hotpoint is using
Six sigma DMADV for launching of their new product i.e. TV of 58 inch. Six sigma DMADV is
shown below:
Define:
Manufacturing team of Hotpoint have decided to manufacture a new TV based on
demand and preferences of their customer’s. They formulate their own strategies (Morris, 2013).
Measure:
In this, they have measured requirement of their customers i.e. features they want in that
and manufacturing team can add additional features by which quality of TV can be enhanced.
Apart from this, products capabilities are measured and risk which are involved in its launch.
Analyse:
Management need to formulate their design and have substitutes so that they can have
best. This will aid them to remain sustainable within market.
Design:
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Hotpoint need to formulate their design in such a way that customers expectations and
needs can be fulfilled within time. Apart from this, they can also look for alternatives by which
they can have competitive vantage within market (Nicholas and Steyn, 2017).
Verify:
In this step manufacturing team ensures that designed processes fulfil customers
requirement and performance is satisfactory.
Effectiveness and Ineffectiveness
Six Sigma is a highly disciplined process which focuses upon delivering and developing
new and perfect product and services to their customers. Hotpoint is producing a new product so
during the production process, the defects and quality can be easily checked in the production
process and be rectified. It will avoid the process waste and reduce the cost of production of the
company and hence it can provide high quality goods at lower prices to the products. So this
measurement and solution of defects will be resolved in the production process itself, and hence
this tool is useful for Hotpoint.
Lean production/ manufacturing:
This is systematic method which is used for minimisation of waste within manufacturing
system without having any effect on productivity. This includes different techniques and tools by
which continuous betterment can be attained in production process. It reduces cost of production,
time and growth in outcome. Different aspects are included in lean production, they are:
Value:
This refers to process of building products as per preferences and needs of customers.
Aspects like timely manufacturing, delivery and price are considered as important. Hotpoint have
focussed on requirements of their customers to launch their products.
Value stream:
This includes that when value is created i.e. product is developed as per needs of
customer then its essential to measure whether customers are satisfied with products or not.
Hotpoint needs to analyse the satisfaction level of customers after delivery of their new services.
Flow:
In this respect it is necessary to obviate waste at enhanced level so that hurdles or any
kind of delays do not occur in functionality of organisation. Workload levelling and breakdown
structure is used by Hotpoint to improve the process of production and attain required outcome.
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Establish Pull:
Inventory must be taken care of. This means that it is essential to manage what raw
material is required at what moment of time. This will ensure that wastage will not occur.
Different strategies are used by Hotpoint to manage their inventory and eliminate waste by
effective usage of raw material (Sears and et. al ., 2015).
Pursue perfection:
It is necessary to consider all steps which are mentioned above so that desired can be
attained. To get effective and enhanced results, focus must be on improvement by usage of
continuous and lean improvement.
Effectiveness and Ineffectiveness:
In the evaluation of this concept for Hotpoint, it is found that this concept is also
important for the company as while launching new product, the company must know about the
what the product is going to give to the customers, what can be improvements in the product so
as to satisfy the needs of customers. In addition to this, this approach will also help providing
better value to the customers, decrease in the cost of doing business, and increase in the
profitability level of the Hotpoint. Overall it can be said that this approach will be useful for the
company. As for its ineffectiveness, it can be harmful for Hotpoint as both customers and
suppliers will notice about the improvements in process and may also adopt the same for their
own improvements. This might lead to inappropriateness in implementation of this project.
At present scenario, Hotpoint need to understand needs of their customers and
accordingly make use of information for transformation of their products as well as there is delay
in their services. This indicates that they have to take sufficient actions accordingly. This will
assist them to acquire new customers as well as accomplish needs of their existent customers.
P2 Continuous improvement plan based on review and critique of operations management
principles within an organisation.
Continuous improvement plan is presented below which can be used by Hotpoint
organisation to ensure that their services are enhanced and are as per requirements of customer’s.
The objective of Hotpoint is to launch their new product i.e. 58 inch Television within market.
For attaining this a continuous improvement plan has been proposed.
Source Principles Outcomes
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Quality Lean manufacturing To enhance quality of products, Hotpoint has
focussed on usage of latest tools and techniques
for this they have opted for usage of lean
manufacturing. This will enable them to
achieve profitability and amendable results.
Cost Six sigma To attain better results and minimise cost,
Hotpoint has adopted for usage of six sigma
principle. This will aid them to produce
services and goods at less cost and provide their
customer’s with effective services.
Delivery Organisation For delivering effective services and products,
Hotpoint need to formulate certain strategies
with respect to resources and steps which are
involved in manufacturing. They have ensured
that their steps are collaborated so that any kind
of defect do not arise within their services. This
will aid them to provide effective outcome in
accomplishment of their activities
(Subramanian and Ramanathan, 2012).
Safety Fundamentals Management of Hotpoint needs to consider all
the safety issues which can arise while
manufacturing process. They must ensure that
records of inventory and processes which are
carried out within organisation are maintained.
This will help them to acknowledge certain
issues which can arise and also they need to
make sure that record of information is safe.
Kaizen approach is used for creation of continuous improvement depending on
affirmative alterations. With respect to Hotpoint, they can make use of this approach for having
better results like, involve employees for identification of problems as well as issues. Along with
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this find the problems and create solution for the same as well as test this. After that Hotpoint
can make the analysis of results by engaging employees and analysing whether alterations have
been successful or not. If results attained are affirmative, then they can utilise the solution and
they can be repeated with respect to ongoing processes.
With respect to Hotpoint, Reengineering design comprises of radical redesign of core
business processes for attaining enhancements within quality, cycle times and productivity. It can
be utilised within organisation by analysing customer needs, redesign the core processes as well
as make use of information technology for making relevant improvements. Furthermore,
Hotpoint can reorganise business into cross-functional teams by end-to-end responsibilities for a
process. Along with this, management needs to rethinks on people as well as organisational
issues and improvise the business processes.
Problem Actions
Delay in services Kaizen approach must be used by Hotpoint to
have continuous improvement in their
processes
Decline in productivity Reengineering design can be utilised by them
for this by which quality can be improvised
and technology can be used in an appropriate
to attain desired results.
Effectiveness of continuous improvement plan:
This plays vital role within organisation, as it is necessary to acknowledge root causes of
problems and loop holes which exist within business. Focus of this plan is on delivery, cost and
quality of services. By opting for heterogeneous theories of improvement, business strategies and
ways in which operations are carried out within Hotpoint can be improvised. They have opted for
six sigma and lean manufacturing. This will help them to enhance quality of their products.
Furthermore, with usage of continuous improvement plan Hotpoint organisation can maximise
their productivity, lower down cost, decrease time taken for delivery, enhance quality and amend
satisfaction level of employees. In this way, continuous improvement will aid Hotpoint to
enhance their growth (Swink and et.al ., 2017).
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TASK 3
P3 Apply PLC to a given project for producing necessary supporting documentation for
completion of project.
All the stages which are associated with a project from beginning till its end are known as
project life cycle. This makes use of effectual processes which are necessary for organisation to
adopt them within effectual manner for accomplishment of entire process. Hotpoint is planning
to bring their new product within a market which is a large screen television with 58-inches
screen. The project lifecycle for new product by Hotpoint has been elaborated below:
Initiation Stage: In this stage, organisation must determine objectives related with
project, alongside effectual classification and investigation of opportunities is accessible for
organisation in market which can be attained by new product. Furthermore, feasibility analysis
by measuring value are proficiencies which are implemented within this stage. For leadership,
democratic style of leadership can be utilised which is very important for organisations like
Hotpoint, to take advices of subordinates with respect to subordinates in context to new product
development. They can utilise six sigma technique for shaping project within this stage.
Planning Stage: The next stage needs management of Hotpoint to design entire process
of development and execution of new product. This phase needs project team to attain
confirmation from top management. Furthermore, organisation can make use of effectual project
plan for ensuring further implementation of entire project. The project plan has been provided
below:
Cost It comprises of cost associated with acquiring of resources,
technologies, processes, etc. that may be around £30,000.
Communication
This comprises of communication like internal, external, vertical and
linear that can be used by organisation to receive as well as share
information.
Quality Techniques such as artificial intelligence can be utilised with
automation by organisation thereby leads to enhancement of quality.
Scope
Resources, new equipments, technologies and employees are being
bought up by an organisation for enhancing scope of this specific
project.
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Autocratic leadership style has been used with respect to effectual planning of entire
project. Lean principles can be used within this stage to make sure that elaborated planning can
be carried out.
Execution Stage: This stage yields entire execution of project. Workflows as well as
allotments of tasks will take place and project managers will be responsible for creation of
different teams which will result in conducting various tasks with respect to this.
Transformational leadership can be used for encouraging employees to give their best
performance. The firm can make use of TQM for measuring, monitoring and implementation of
best quality of entire project.
Closure: In context of this product will be delivered within market. It will need
organisation to keep a check on effectiveness of project. Performance of team will be measured
within this stage. The organisation can make use of effectual communication as an effectual
strategy for sharing significant information to stakeholders associated with project. Strategic
leadership can be used for measuring performance of entire project.
Gantt chart:
It is a horizontal bar which helps to control production. It was developed by Henry L.
Gantt in 1917. It illustrates schedule which aids in planning, coordination and tracking respective
tasks within project. Manufacturing team of Hotpoint uses Gantt chart to show their tasks with
their time. Each activity is presented by bar, length and position of bar denotes end and start date
respectively.
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Business case:
It exemplify initiation of task or project. It is in structured format. With respect to
business different points must be considered they are mentioned below:
Executive summary:
Hotpoint organisation is aiming to launch a new television within market which have
specification of 58 inch. This is done by them on the basis of requirements of customers. For this
they need to have significant information with respect to market, tools and techniques which are
being used. It is essential for Hotpoint to collect this information so that they can enhance their
outcome (Weglarz, 2012).
Goal:
Goal of Hotpoint to launch this product is to fulfil requirements of their customers and
also enhance their profitability and productivity.
Solution:
Hotpoint has analysed needs and requirements of customers, after doing this they are
looking forward to launch their new product. For its successful completion they are opting for
latest techniques and tools by implementation of which they can acquire desired results.
Cost:
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This is an essential factor, Hotpoint need to analyse different aspects of cost related with
raw materials i.e. either hardware, software or human capital. Approximate cost of this project is
around 30,000 pounds.
Benefits:
Hotpoint is about to launch their new product within market. If they are able to get
desired result in terms of customers then they can look forward to expand their business. This
will help them to enhance their customer base.
Execution time:
Planning consumes lots of time as it include different strategies, requirements of project
based on both customers and trends within market (Verzuh, 2015). As they (Hotpoint) are about
to launch their new product, this will take around 1 year for its completion.
Project plan:
Project plan comprises of certain factors. These factors are presented below:
Cost:
Cost is foremost factor which must be considered while implementing project. The cost
of entire project will be around 30,000 pounds.
Scope:
Hotpoint is opting expand their business within market by this they can enhance their
customer base by providing them effective services. Apart from this, they can increase their
market share.
Risk:
Management of Hotpoint need to make sure that they are using effective strategies. This
will aid them to eliminate risks which are associated with failure of project (Weglarz, 2012).
Resources:
Hotpoint have ensured that deliver enhanced services and products to their customers.
These products are using latest techniques and tools.
Work break down structure:
WBS is a key project which is deliverable and organises work of team into manageable
sections. Work is divided in smaller parts and it is meant to be done in stipulated time duration.
Hotpoint has opted to use WBS for distribution of their tasks and attain a effective result from
the same.
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Work breakdown structure
TASK 4
P4 Review on effectiveness of PLC in application to the chosen project by applying appropriate
theories, concepts and models.
It is crucial for an organisation that effectualness of project life cycle is being measured
for enhancing opportunities associated with this project. The effectiveness of PLC is illustrated
below:
 Within initiation stage, organisation has used different techniques to start or initiate
overall project in a required and enhanced manner. For an example, the organisation is
making use of democratic style of leadership. Along with this, they have also been
making use of six sigma technique within this project. But this approach is very stiff and
due to this reason organisation may face complexities with respect to future aspects in
relation to entire project. Thereby, the organisation need to make use of different
principles which must be flexible as well as cannot be altered with respect to future.
 As the stage of planning is preoccupied, organisation has been making use of Lean
principles for minimising waste, this is very effective as this approach improvises
sustainability of project. But organisation has made use of autocratic leadership with
respect to planning, this may lead the organisation to decide different factors which may
lead to inefficiency within this phase as this comprises of different elements in which it is
crucial to make collective decisions like determining roles as well as responsibilities of
individuals within process.
 Within execution phase, organisation is making use of transformational leadership that
will assist organisation to gain various benefits like appropriate approval may be
provided to employees for working forward for development of new product as well as
acquire adequate skills that are needed for the same. Still, TQM (Total Quality
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Management) which lead an organisation to focus on quality of new products as well as
services which are being offered by organisation. This might lead organisation to buy
costly and expensive processes & equipments through which quality can be enhanced and
also they can be delivered within stipulated duration of time as well as cost of production
will be reduced.
 Within closure, organisation makes use of strategic leadership as well as communication
as proper methods for carrying out the entire process. Both of these aspects are very
crucial as stakeholders will be in loop which will assist organisation for gathering crucial
thoughts associated with closure, thereby results in enhancement of effectiveness.
CONCLUSION
From above, it can be concluded that operation management plays vital role within
organisation. It aids in formulation of plans, measuring them and maintaining functionalities, this
will help organisation to obviate mistakes and enhance their productivity. Operation management
aids in adding features and enhancing quality of their products by which they can attain
satisfaction of their customers. Continuous improvement plan is used by organisation to stay
updated with respect to advancement within market and to achieve high accuracy in their
functionalities and operations. Different styles of leadership are used by organisation. Certain
theories and principles of operation management are applied by which they can have effective
results and maximise their outcome.
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REFERENCES
Books and journals:
Binder, J., 2016. Global project management: communication, collaboration and management
across borders. Routledge.
Galloway, L., Rowbotham, F. and Azhashemi, M., 2012. Operations management in context.
Routledge.
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Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Jacobs, F. R., Chase, R. B. and Lummus, R. R., 2014. Operations and supply chain management
(pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Kerzner, H. and Kerzner, H. R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Morris, P. W., 2013. Reconstructing project management. John Wiley & Sons.
Nicholas, J. M. and Steyn, H., 2017. Project management for engineering, business and
technology. Routledge.
Sears, S. K., and et. al ., 2015. Construction project management. John Wiley & Sons.
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.
Swink, M., and et.al ., 2017. Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
Swink, M., and et.al ., 2018. Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
Turner, J. R., 2014. Handbook of project-based management(Vol. 92). New York, NY: McGraw-
hill.
Turner, R., 2016. Gower handbook of project management. Routledge.
Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.
Weglarz, J. ed., 2012. Project scheduling: recent models, algorithms and applications (Vol. 14).
Springer Science & Business Media.
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