Project Management and Operations

The provided report focuses on the importance of operation and project management in successfully completing a project. It outlines various project management principles that can benefit a firm by reducing waste and optimizing resource use, ultimately leading to a competitive advantage over rival companies. The document also touches upon the significance of documentation such as business cases, project plans, WBS, and product life cycles in understanding important project information.

PROJECT AND
OPERTAION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Conduct a review and critique of implementation of operation management principles......1
TASK 2............................................................................................................................................4
P2 Continuous improvement plan in accordance with the review and critique of operations
management................................................................................................................................4
TASK 3............................................................................................................................................5
P3 Apply different stages of PLC for the project along with supporting documents to
complete project..........................................................................................................................5
TASK 4............................................................................................................................................9
P4 Review and critique the effectiveness of PLC in application to the chosen project using
appropriate theories, concepts and models..................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operational management is defined as planning, implementation and execution of
business operations in the production and service world. It involves production planning, demand
forecasting, quality management, supply chain collaboration and inventory control. Project
planning is stated as formulating and implementing projects in business world (Alam, Gühl, U.
F. and Gühl, 2016). It involves monitoring, controlling, initiating and ending project. This
assignment is based on Hotpoint electric heating company which is an European and American
based domestic appliances brand. Organisation was found in 1911 and headquartered in
Cambridgeshire, UK. This report covers review and critiques of implementing project
management principles along with a continuous improvement plan. Beside this, different stages
associated with Project life cycle and required documentation for completing project such as
work break-down structure, business case and project plan are discussed. At last, critiques for
effectiveness of PLC in respect with project is specified in a detailed manner.
TASK 1
P1 Conduct a review and critique of implementation of operation management principles
Operation management is related with administration of business operations and activities
to maintain highest possible efficiency within a company. It is associates with transforming
material and labour into useful commodities in an efficient manner so that maximum profitability
can be achieved. Principles associated with operational management provides a systemic
approach so that all the issues associated with operational processes can be resolved desirably.
This will benefits Hotpoint in optimal transformation of resources into end products which will
results in high revenue and profitability. Hotpoint is an electronic company, situated in
Cambridgeshire. Company specialises in manufacturing washing machines, freezers, kitchen
appliances and refrigerators etc. Now, company is planning to expand its business by introducing
large screen television of 58 inches into market along with stadium screens. Principles associated
with operational management will benefits the company in manufacturing of new product in an
optimal manner so that a firm can attain high profitability (Burke and Barron, 2014). Different
operational management principles which can be adopted by manager in Hotpoint are mentioned
below:
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Six sigma: It is a systematic approach in operational management that benefits in
eliminating errors. It uses statistics to reduce variability in business processes such as purchasing
and manufacturing which helps in improving the quality of goods and services. This method will
allow the manufacturing team to remove those features and software form television that can
results as a defect. Removal of these defects will enhances the sales and popularity of newly
introduced 58 inches television. There are two key principles associated with Six sigma i.e.
DMAIC and DMADV which are mentioned below:
 DMADV: It is used when a new process is designed. This method can be used by
manufacturing team of Hotpoint so that production of TV can be carried out properly. In
first step, design standards are specified so that product goals can be acknowledged. Then
required features and characteristics of TV will be identified so that quality can be
maintained. After that data is analysed so that all the defects can be identified and
eliminated. In last, verification of design takes plalce to check if requirements of
customers are fulfilled or not.
 DMAIC: In DMAIC, problem and its desired outcome is defined so that ability
television can be measured appropriately. After that data is analysed properly and root
cause of defect is identified. This will allow the production manager in Hotpoint to
improve and modify those processes and defects which decreases popularity of
Television. At last, Preventions and control measures can taken so that defects can be
managed properly (Alexander, 2013).
Critical analysis: It is critically evaluated that six sigma is a customer driven approach.
Due to this, those elements which are not accepted by the customers are treated as defects. This
will benefits Hotpoint in satisfying the needs and preferences of customers in an appropriate
manner that will results in attaining high revenues and profitability. It will also allow manager in
Hotpoint to carry-out required improvements in television. But this operational management
principle is full of statistical concepts due to which planning and execution became a complex
procedure. Also, appropriate training is required for implementing this principle, due to which it
is a time consuming process.
Lean methodology: It is a systematic method to reduce wastage within manufacturing
and production system without compromising with the productivity level. This method will
minimize the waste which generates due to overburden or unevenness in resources. This
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operational management principle will benefits the operational manager in Hotpoint to optimally
utilize available resources. Key principles associated with lean methodology are mentioned
beneath:
 Value: It is defined in accordance to the need and requirements of customers for a
particular product or service. This principle will helps the product development manager
in Hotpoint to understanding opinions and requirements of customers regarding TV in a
proper manner (Kutlu and et. al., 2014).
 Value stream: In this principle, different processes and measures are formulated &
implemented so that identified value can be fulfilled properly. In this step, those activities
which will add value to the preference of customers are adopted and other activities that
are considered as wastage are eliminated.
 Flow: After wastage is removed, this principle will ensures the smooth functioning of the
remaining activities and processes without any complexities and delays.
 Pull: Improvement in flow will results in improved marketing time, due to which
delivering products and services into market will become a easy process. This will
enhance the comfortableness of customers to purchase product . By this, sales and
revenues of company can increase considerably.
 Perfection: In this lean principles, required modifications and improvement will be
carried out in TV so that customers can willingly accept the product without giving any
second thought.
Critical analysis: It is critically analysed that lean production will benefits Hotpoint in
minimising their waste which will results in optimal utilization of resources. As needs of the
customers will be given preference, strong relation with customers will be sustained. By
implementing this operational management principle, space wastage will be reduced and
production efficiency will enhance (Li, Hou and et. al., 2014). But equipment and labour failure
can leads to inconsistencies due to which this entire process can fail which is not a case in mass
production. Also, as inventory is stored in less quantity, in case of excess demand Hotpoint will
have to rely on suppliers due to which production timing can increase which can reduce the
satisfaction level of customers.
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TASK 2
P2 Continuous improvement plan in accordance with the review and critique of operations
management
Continuous improvement plan is an effort by which an organisation improve its services,
processes and products. It is a meta-process for quality and project management in which
feedbacks of customers are measured against organisational goals and objectives. In respect with
the reviews and critiques of operational management principles i.e. Six sigma and Lean
production, a continuous improvement plan is developed below:
BASIS APPROACH/PRINCIPLE IMPLEMENTATION
Quality
To enable the quality and features of
58 inches television, manager in
Hotpoint can use total quality
management approach. By this, those
aspects which do not add value to the
product can be eliminated.
With the help of this approach, new and
advanced features can be added in TV.
To implement TQM, high commitment
and co-operation form employees is
required along with consideration to
needs and requirements of customers.
Cost
To improve expanses and costs,
variance can be used. By this,
appropriate cost require to produce TV
will be acknowledged and funds to
incorporate improvements can be
maintained (Nicholas and Steyn,
2017).
Implementing variance analysis will
helps the operational manager in
acknowledging the planned and actual
cost. By this, funds and finances of
company can be maintained in an
appropriately.
Delivery
For distribution and delivery,
concerned company can take
advantage of supply chain
management. This will enable the
produced product to reach at large
customer base in a desired manner.
The stage associated with supply chain
management will involves supplier,
manufacturer, distributor, customer,
retailer etc. in this way the product will
be delivered to customers and distributed
in market in an appropriate manner.
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Safety
For ensuring the safety and
effectiveness of the newly developed
58 inches television. Company can
implement lean production method in
which unproductive activities and
process will be removed due to which
wastage will also decrease.
This principle will helps in removing
those factors due to which wastage of
resources take place. This approach will
assists in removing those aspects which
reduces the safety of television features
which are newly produced by Hotpoint.
Effectiveness of continuous improvement plan: It is essential that Hotpoint company is
required to appropriately manage the cost and quantity of their product i.e. 58 inches television.
To maintain the cost, variance can be used as it will specify the difference between actual and
expected cost. In accordance with that selling cost of TV can be decided. Supply chain
management will assures the timely delivery of products to the customers due to which customer
base of the company will be sustained. At last, lean production will assists in eliminating
wastage so that resources and materials that are required to produce TV can be solved optimally.
TASK 3
P3 Apply different stages of PLC for the project along with supporting documents to complete
project
Product life cycle is defined as the progression of a product into four different stages
within market. Major objective of considering PLC is that it helps in reducing time to market,
improves the quality of product, reduce costs and enhances sale. This cycle proceeds through
multiple phases and include different kinds of processes and procedures (Perry and et. al., 2018).
These procedure will helps in acknowledging the performance and popularity of new 58 inches
TV introduced by Hotpoint company. As television will have a limited life in market, it has a
specific life cycle. This cycle will include different stages which are mentioned below:
 Introduction stage: This will be the most expensive stage for Hotpoint as a new product
will be launched i.e. 58 inches television. As the product is new in market, due to which
popularity and sales will be low in starting. Along with this, managing finance will be
difficult as costs and expanses will be high due to research and development activities,
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consumer testing and market analysing etc. at this stage, people will get to know about
newly introduced television.
 Growth stage: This stage is related with high sales and profitability. This is because
during this time, firm will get advantage form economies of sales in manufacturing and
production. Due to this, overall market shares of Hotpoint company will also enhance. In
this stage, Manager in Hotpoint can invest more in advertising, promotion and
modification of product as company will encounter high sales.
 Maturity stage: At this stage, the product will be appropriately established and the major
task of the manager will be to maintain market shares of company. It is the most
competitive time for the company as market competition is high. In this case, the
manager of Hotpoint needs to invest properly in TV so that revenues of company can be
maintained desirably (Rosemann and vom Brocke, 2015).
 Decline stage: During this stage, the market and customer base for TV will start
shrinking. This is because, by this time all the potential costumers must have buy the
product and market will became saturated. Change in the preference and choice of
customers can also be the reason for decline in the sales of television. As this decline is
unavoidable, company can earn some profitability by reducing their promotional and
advertising activities.
Project methodology: In this particular project, scope is a variable aspect as popularity
of 58 inches television will reduce with time. Cost & time in producing TV and introducing it
successfully into market is a constant. To achieve valid outcomes, project manager of company
will use adaptive project framework. Hence for this project, company needs to adjust the scope
so that maximum profitability can be achieved without facing any complexities. This project will
require formulation and implementation of appropriate action plan, strategies and planning so
that manufacturing of TV can be carried out in a proper way.
Tools: For this project, Gantt chart will be used which will assists in tracking tasks in a
desired manner. This chart will track all the activities related with development of 58 inches TV
form idea generation to product launch in a proper manner (Serra and Kunc, 2015).
Leadership style: To carry-out this project in an effective manner, democratic leadership
style will be used so that opinion and views of all team members can be acknowledged. This will
helps in taking appropriate decision that will assists in achieving high revenues and sales.
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Business case: This aspect will allow the company to acknowledge regarding resources
which are required by Hotpint to introduced advanced and innovative TV in marketplace. It will
includes the reason for initiating project. An appropriate business case can either be highly
structured or informal according to the prevailed situation. In case of Hotpoint, business structure
is mentioned below:
 Executive summary: This business case is going to include the opportunities that can be
enjoyed by Hotpoint while launching theor new product into market. Along with this, it
will tell the potential threats and issues that can act as a barrier in the success of 58 inches
television (Takey and de Carvalho, 2015). Also, suggestions will be given so that firm
can achieve high revenues and profitability.
 Problem/opportunities: Introducing new and smart features in television can be a big
opportunity for the company to gain competitive advantage over rivals. There are already
exiting firms which are also offering televisions with smart features. This can be a
potential problem for the company during product launch.
 Solution for problem: To resolve this issue, company can formulate an effective action
plan that will includes business strategies and plans to overcome the issues.
Overview of the
company
Hotpoint is an American and Europe based brand of domestic
appliances. Organisation was established in 1911 in California, US.
At present company is headquartered in Cambridgeshire, UK.
Company specialises in manufacturing dishwashers, washing
machines, cookers, refrigerators, dryers etc.
Vision & Mission Vision of company is to increase the living standard and lifestyle of
customers by offering them advanced domestic appliances.
Mission of Hotpoint is to support and supply electronic appliances
to every household so that high profitability can be attained.
Objectives Main objective of company is to offer technologically advanced
products to the customers so that company can earn high revenues
and profitability. This will help them in outpacing their rival
companies.
Strategies As company is going to introduce 58 inches TV in marketplace, to
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achieve desired outcomes manager in company needs to formulate
effective strategies like reasonable pricing, addition of new and
innovative features.
Project plan: It is a formal document that is designed to control and execute project in an
effective manner. It is key to project success and must be formulated before initiating a project.
Cost Project manager has decided that cost for this particular project is
150,000 pounds. All the required activities will be managed within
this amount.
Resources Essential resources required for this project are time, cost, manpower,
technology etc. knowledgable and skilled workers will effectively
perform the manufacturing process. Estimated time for project is 6
months (Van Der Hoorn and Whitty, 2015).
Research
methodologies
For this project, the project manager is going to take help of
secondary research method in which all the required information can
be easily collected for internet, books, journals, magazines and other
online sources.
Work Breakdown Structure: It is a tool that will helps in dividing the entire project of
company into small manageable sections so that all the works and tasks can be performed in a
timely and efficient manner.
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TASK 4
P4 Review and critique the effectiveness of PLC in application to the chosen project using
appropriate theories, concepts and models
Effectiveness associated with product life cycle for this specific project will be
acknowledged on the basis of relatability and sustainability. In case of Hotpoint, which is going
to introduce 58 inches TV for home, parks and stadiums, effectiveness can be considered
according to project initiation, planning, evaluation and execution of strategies etc. To achieve
desirable outcomes, company needs to use appropriate tools and techniques (Walker, 2015). To
analyse each phase of PLC, manager in company can use waterfall model. This model is
specifically used for large project. As project initiated by Hotpoint is also large scaled, waterfall
model is mentioned below:
 Requirement: This is the first step, in this aspect specifications associated with input and
final product is studied. Project manager in Hotpoint will get to know what is needed to
be designed so that product can became immensely popular.
 Product design: In this stage, an effective product design is prepared that will includes
the list of all hardware, software and machinery which will be required during
manufacturing of TV.
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 Implementation: In this phase, a small parts of product will be formulated. These parts
will be tested so that overall manufacturing of TV will be carried out in an appropriate
manner.
 Integration and testing: In this phase, all the develop parts and machinery of TV will be
integrated together and different kinds of testing will be carried out to check if newly
introduced product will work properly or not.
 Deployment of system: During this stage, different kinds of tests will be carried out on
final product to acknowledge if the developed product will be able to match the
expectation level of customers. If product will fail some tests, improvements can be
carried out (White, 2016).
 Maintenance: In this phase, modifications to the product will be carried out so that the
product will achieve wide popularity. These modifications are carried out in accordance
with the perceptions and feedbacks calculated for customers. These modifications will
benefits the company in achieving desired sales and profitability.
This model is appropriate for both small and large scale projects as it deals with project in
a systematic manner. Small scale projects includes service handling, for which this model
offered appreciable results (Zhang, Wu and Shen, 2015).
CONCLUSION
From above mentioned report, it can be concluded that operation and project
management is an vital aspect in successfully completing a project. There are different operation
management principles that will benefits a firm in reducing their waste and optimal use their
resources so that competitive advantage over rival companies can be achieved. Documentations
like business case, project plan, WBS, product life cycle will allow the company to know about
important information associated with project in an appropriate manner.
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REFERENCES
Books and Journals
Alam, M. D., Gühl, U. F. and Gühl, U., 2016. Project-Management in Practice. Springer.
Alexander, K., 2013. Facilities management: theory and practice. Routledge.
Burke, R. and Barron, S., 2014. Project management leadership: building creative teams. John
Wiley & Sons.
Kutlu, B. and et. al., 2014. Project management software selection using analytic hierarchy
process method. International Journal of Applied. 4(6).
Li, J., Hou and et. al., 2014. A project-based quantification of BIM benefits. International
Journal of Advanced Robotic Systems. 11(8). p.123.
Nicholas, J. M. and Steyn, H., 2017. Project management for engineering, business and
technology. Routledge.
Perry and et. al., 2018, April. Successful Management of Major Marine Operations for the
Hebron Project. In Offshore Technology Conference. Offshore Technology Conference.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer,
Berlin, Heidelberg.
Serra, C. E. M. and Kunc, M., 2015. Benefits realisation management and its influence on
project success and on the execution of business strategies. International Journal of
Project Management. 33(1). pp.53-66.
Takey, S. M. and de Carvalho, M. M., 2015. Competency mapping in project management: An
action research study in an engineering company. International Journal of Project
Management. 33(4). pp.784-796.
Van Der Hoorn, B. and Whitty, S. J., 2015. A Heideggerian paradigm for project management:
breaking free of the disciplinary matrix and its Cartesian ontology. International
Journal of Project Management. 33(4). pp.721-734.
Walker, A., 2015. Project management in construction. John Wiley & Sons.
White, P. R., 2016. Public transport: its planning, management and operation. Routledge.
Zhang, X., Wu, Y. and Shen, L., 2015. Embedding “green” in project-based organizations: the
way ahead in the construction industry?. Journal of Cleaner Production. 107. pp.420-
427.
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