Analysis of Operations and Project Management at Hotpoint Company

This report examines the operations and project management practices of the Hotpoint electric and heating company, focusing on its initiative to enter the large-screen television market. It begins with an introduction to operations and project management, highlighting key principles such as reality, organization, accountability, change, managed passion, and lean manufacturing. The report then reviews and critiques these principles within the Hotpoint organizational context, followed by a continuous improvement plan based on these principles. The application of the Product Life Cycle (PLC) to the TV project is analyzed, along with supporting documentation. The effectiveness of PLC is reviewed by applying appropriate theories, concepts, and models. The report uses the case study of Hotpoint, analyzes different concepts like Six Sigma, Lean Manufacturing, and DMAIC/DMADV methodologies to evaluate and suggest improvements for the new TV project, considering factors like cost, quality, safety, and delivery. The report concludes with a summary of findings and recommendations.

OPERATION AND PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION..........................................................................................................................3
P1 Review and critique of operations management principles within and organisational
context....................................................................................................................................3
P2 Continuous improvement plan based on review and critique of operations management
principles within an organisation............................................................................................6
P3 Apply PLC to a given project for producing necessary supporting documentation for
completion of project..............................................................................................................8
P4 Review on effectiveness of PLC in application to the chosen project by applying
appropriate theories, concepts and models...........................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operation management is the practise in organisations which involves the conversion of
raw material and labour into products and services and hence increasing the productivity and
profitability. The main function of operation management is to balancing revenue and cost and
achieving highest profit. On the other hand project management is the process for implementing
a specific job or task. In this given report the investigator has taken a domestic appliance
company naming The Hotpoint electric and heating company (Alias and et. al, 2014). This
company was founded by Earl Richardson in the year 1911 and the ownership of this company is
divided in between two companies Haier and Whirlpool. In the present report there is a case in
which company is planning to enter in market of large screen Television. The company has
taken initiative to produce TV with a minimum size of 58 inches. The company has gone through
research and development for the implementation of this idea. Different theories and concepts
used in this organisation are evaluated. The analysis of effectiveness of continuous improvement
plan using principles of operation management is done. Different product life cycle stages are
evaluated for the new TV of Hotpoint company. In the end of this report theories, concepts and
models of product life cycle of large and small projects has been discussed.
P1 Review and critique of operations management principles within and organisational context
Operation management plays an important part in operating business in appropriate
manner. There are several activities involved in operation management like organising,
controlling, planning and resource and labour controlling which leads to provide good services
and products to people. There are principles which are followed in organisations to facilitate
smooth functioning of the company ( Chartered Institute of Building (Great Britain), 2014).

There are following type of principles that are applied in Hotpoint organisation for functioning
effectively and these help in operating business operations in an appropriate manner -
Principles of Reality: According to this principle, it is essential for organisations to
focus on the problem of operational management and not on the technique which is used to
solve it. It is necessary for managers of Hotpoint to analyse the customer need and demand
before launching a new product in the market. As Hotpoint is an electric company, it is currently
dealing with production of cooking products, air conditioners, freezers, refrigerators and
dishwashers.
Principle of Organisation: An organisation should perform its operational activities in a
proper order so that it can achieve the goals and objectives in specified time frame. A good
relationship among several departments of Hotpoint is important for the efficiency of an
organisation. There are various activities involved in achieving a goal and when these are
performed in an organised way it takes less time to accomplish the goal.
Accountability: As per this principle, organisation requires to have managers who set an
actual set of rules and regulations for the employees and team members ( Bushuyev and
Friedrich Wagner, 2014). Managers have to ensure that their subordinates are successful in
achieving goals and objectives within specified time frame. Managers are responsible for
employee motivation and engagement so that they become beneficial for the company.
Change: It is essential for any company to provide new change in product to make it
more convenient to use. Hotpoint is actively involved in bringing innovation and new ideas in
their products and because of this they are not having a single strategy. Managers of Hotpoint
keeps on changing plans and strategies to implement new innovations in product. This helps the
company to sustain in market for longer period.
Managed passion: Managers of Hotpoint should take care about passion of their
subordinates and help them in increasing their productivity and creativity for developing new
products of the company. It leads to get profitable outcomes for organisation and maximising
profitability.
Lean production/ manufacturing:
This is a methodology which is used for minimizing the waste and maximizing productivity in
the organisation. The managers of Hotpoint creates innovative ideas and implement them on
various products to make the company profitable. By using this process waste is reduced at a

very high extent. As waste reduction is done using lean manufacturing so it helps the company in
minimising overall production cost ( Fleming and Koppelman, 2016). There are following
aspects of lean production listed below:
Value: Products or goods offered by company are prepared on the basis of consumer's
requirement and demand. Any company can build a good value of its products in front of
consumers by providing them good products with affordable price, timely manufacturing the
product and delivering the product at right time. The managers of Hotpoint do a thorough
research before launching any product in the market.
Value stream: According to this factor, the managers of Hotpoint measures customer
satisfaction after launching product in market. The managers should not only focus in launching
the product but also focusing on evaluating its performance after delivering the product to
customers.
Flow: According to this principle, an organisation is responsible for examination of level
of wastage to overcome uncertainties in future ( Gluhov and Ilin, 2014). The managers of
Hotpoint put efforts in reducing workload and provide better outcomes every time. They follow
breakdown structure at workplace and it increases level of production.
Establish Pull: In Hotpoint organisation, the managers measures inventory factor for
producing more effective outcomes in estimated budgets. The operational head estimates the
need of raw material and tries to produce effective products. Managers try to reduce wastage
level and provide better outcomes within given budget.
Pursue perfection: It is not possible for all the organisations to deliver their products in
right time. The managers of Hotpoint implement new techniques in their organisation to make
customers satisfied. The need and demand of customer changes with time. Managers conducts
researches frequently in order to know about requirements of customers and make changes
accordingly in products. This increases sales of the company and simultaneously making profits.
Six Sigma:
Six sigma is a concept founded in 1980 by Bill Smith which is a collection of techniques and
tools which help in improving operations and process. There are two types of methodologies
included in six sigma and they are DMADV and DMAIC.
DMAIC is used for improvisation in products of the company. This process is used when
a present product of the company can be improved for meeting customer satisfaction. It consists

of five phases measure, analyse, improve and control ( Greene and Stellman, 2018). On the
other hand DMADV is methodology which is used to introduce a process or product which is not
currently present in the company. It consists of five phases including define, measure, analyse,
design and validate. Hotpoint is going to launch a new product i.e. a Television of 58 inches
therefore DMADV is best six sigma methodology for launching this product in market in a right
manner.
Define: This is a process in which customer demands are analysed and evaluated. The
managers of Hotpoint implement different strategies before launching new products in market. In
present case where it is introducing a new TV in the market, it undergoes research for knowing
customer's need and demand.
Measure: This is a process in which Hotpoint managers focuses on launch and
manufacture of products and services in the market. The evaluation includes the number of
buyers in a particular locality ( Kerzner and Kerzner, 2017). After knowing this managers forms
different measures to give quality products to customers.
Analyse: This step focuses on evaluation of problems and issues faced while operating.
The managers have to implement effective strategies to avoid the issues and problems faced by
company. If the company wants to increase its market share it is important to prepare good
designs.
Design: Hotpoint managers design effective plans and strategies for introducing services
and products according the expectation of customer. This leads in increasing sales of the
company. Moreover different ideas through which the company can expand it's market
segmentation are generated for competitive advantage.
Verify: In this step the managers of Hotpoint ensures that design of their product are as
according to the need and requirement of customer. This is important for increasing profits of
company by giving products to people as per their demand.
P2 Continuous improvement plan based on review and critique of operations management
principles within an organisation
Continuous improvement plan
It is essential for every organisation to make continuous changes in departmental units for
producing quality products and improving production process. The managers of Hotpoint
undergo research of market condition for performing operational activities effectively ( Leach,

2014). The continuous improvement plan used by Hotpoint managers in providing good
services and products to consumers is given below:
SOURCES PRINCIPLES OUTCOMES
Cost Six sigma
Hotpoint managers
implemented principle of six
sigma at their workplace for
smooth and effective
functioning of operational
process. The company incurred
in invest is less and it helps in
producing appropriate results
within given budget ( Luo and
et. al, 2016).
Quality Lean manufacturing
Hotpoint managers uses new
techniques and tools for
making innovation and
changes in their products. This
will increase customer
satisfaction as new and
innovative ideas are
implemented in the products
and service. For doing this the
operational management uses
lean manufacturing. This
allows company to have
beneficial outcomes.
Operational manager of
Hotpoint consider all aspects
of safety in manufacturing and
production process ( Nicholas

Safety Fundamentals
and Steyn, 2017). A proper
record is maintained for
inventory which helps in
solving any problem in future.
This helps in maintaining
safety of data and information.
Delivery Organisation
Effective strategies and
policies are made in resource
management for delivering
services and products in right
manner. This helps in
reduction of defects or waste
and in this way the company
will perform their activities
effectively.
As the company wants to conduct the operational activities effectively it is important to
evaluate and analyse the core reason of the problem and then finding the necessary loop holes.
The continuous improvement plan helps in delivering good quality and services to consumers.
The various factors given in the above plan help the organisation in performing efficiently.
Hotpoint is following six sigma and lean manufacturing at their workplace and this increases the
quality of their products and services ( Pollack and Adler, 2014). Moreover, the continuous
improvement plan helps the company in reduction of input cost and lowers the estimated time.
This is effective in production of quality products with no defects.
P3 Apply PLC to a given project for producing necessary supporting documentation for
completion of project
A product life cycle is an essential factor in estimating the survival time of new product
in the market. There are many products which raise rapidly in the introduction phase but they are
not able to survive for longer period in market. The product life cycle helps the operation

manager in evaluating the success of product. Hotpoint managers follow different stages of PLC
for examining their product and they are discussed below:
Initiation stage: In this stage of product life cycle managers of Hotpoint examines the
preferences of consumers and make their products accordingly. As Hotpoint is launching a 58
inches TV in market and before doing this managers analyse the market feasibility. In addition to
this, the managers take responsibility to analyse resources of company needed for growth and
development of the product. Different strategies and plans are made by company for establishing
the value of this 58 inches TV in front of consumers ( Rafindadi and et. al, 2014). The estimated
time for such evaluation is around 1-2 months.
Planning stage: After the initiation stage it is necessary to plan strategies and plans to
conduct business effectively. In this stage the managers formulate the market planning by using
business case, work statement and document initiation. The Hotpoint managers divide their tasks
into smaller parts and allot these small tasks to individuals on the basis of their capabilities.
Hotpoint management ensures to have skilled employees who can work towards achieving the
company goals. Operational managers believes in dividing tasks to skilled people and achieving
the target within given time. Hotpoint is launching new 58 inches TV and as they follow
situational leadership style the managers perform their task according to various situations. The
estimated time in completion of the stage is approximately 3 months.
Execution stage:
In the execution stage the managers formulate different strategies which are to be
implemented in right manner for achieving organisational goals and objectives. At this stage new
ideas for product development are changed into actual action. The operational manager ensures
that task is segmented among subordinates appropriately ( Rolstadås and et. al, 2014). Hotpoint
mangers have responsibility in accomplishing the project work according to the strategies and
planning formulated by management. This formation of strategies in executing project work
takes around 3 months. Servant leadership is used in this stage and leader has the responsibility
to divide work to employees on equal basis. Managers and subordinates perform their roles and
responsibilities in an effective manner.
Closure stage:
Closure stage is the last stage of PLC. This is the end stage of project. In this last stage
individuals who participate in the development process gives necessary documents. In case of

Hotpoint managers have to submit documents which are related to TV. This takes around 25
days. It consists of future as well as present scenario of Television. Different opportunities by
which managers can expand the market share and increase sales is also considered in this
document.
(Source:Stages of the Product Life Cycle, 2019)
Gantt chart:
Gantt chart is a defined as a horizontal bar chart which determines the schedule of a
project. This concept was given by Henry Gantt around 1915. They are used in determination of
relationship between schedule and tasks involved in accomplishing the project. Gantt chart is a
bar chart in which the vertical axis represents tasks and horizontal axis represents the time
interval. The manufacturing department of Hotpoint uses Gantt chart to execute their task
according to specific time interval. The managers presented this chart in the form of bar that
denotes start and end date.
Illustration 1: Product life cycle

Business case
Executive summary:
Hotpoint is launching a new 58 inches television in the market. Before launching this
new product the company conducts an analysis for determining the consumer needs. The
managers want to achieve their targets in given time and for this they evaluate market condition
and accordingly techniques and tools are selected for performing functions in a systematic
manner ( Shaheen, InterDigital Technology Corp, 2014). Hotpoint keeps regular data and
information records to enhance performance of employees and make better business outcomes.
Goal:
The main aim of Hotpoint is to make customers satisfied by their products and services.
This company is focusing on making new and innovative changes in the products for fulfilling

the demand of customers. In this way Hotpoint is able to increase profitability and efficiency of
business.
Solution:
The solution for this is Hotpoint undergoes a market research for knowing the actual
needs and demand of the customers. After doing this analysis, they can launch the new product
in market and adopting latest technology and innovative tools.
Cost:
This is a factor which identifies the cost related aspects involved in accomplishment of
project ( Xu, Ma and Ding, 2014). Different costs included in the project are hardware, software
and human capital. The estimated cost for this project given by Hotpoint is around 35,000
pounds.
Benefits:
When a company launches its new products in market it is most important for creating
value in front of people by giving them best products. If the project launched by company gets
success in market and customer satisfaction is high then it is beneficial for the organisation in
increasing sales and value of brand.
Execution Time:
After establishment of new product in the market it takes about one and a half year to
actually evaluate the performance of product in market.
Project Plan:
It is defined as the structure which is followed for accomplishing several projects and
tasks of the organisation. There are following factors which are considered in completing
projects-
Cost: It is the main factor which is considered before starting any project. In this project the
overall cost of project estimated in completing this project is around 35000 pounds.
Scope: By using this component Hotpoint is able to increase customer satisfaction and trust by
providing good products and services.
Risk: The company ensures the implementation of strategies and plans in business for effective
outcomes. It helps in reduction of risk in the project.
Resource: According to this factor customers should be given delivery of projects and services in
time. Hotpoint uses innovative technology in delivery of their products.