Operations and Project Management: Hotpoint Case Study and Analysis

This report provides a comprehensive analysis of Hotpoint's operations and project management, focusing on the application and effectiveness of various principles and methodologies. It begins with an introduction to operation and project management, highlighting their significance within an organization. The report then critically reviews the effectiveness of operations management principles, specifically Six Sigma and Lean principles, within the context of Hotpoint, a company involved in marketing, manufacturing, and selling home appliances. It examines how these principles are applied in the company's strategic goals and operational activities, including the launch of a new product, a 58-inch TV. The report assesses the strengths and weaknesses of these methodologies, considering their impact on quality, efficiency, and potential challenges. The report also includes the preparation and evaluation of a continuous improvement plan, and applies the project life cycle (PLC) to the given project. The conclusion summarizes the findings and provides recommendations for improving operations and project management at Hotpoint. The report also includes an analysis of various operational principles such as reality, fundamentals, variances, accountability, inventory management, and more.

OPERATION
AND
PROJECT
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Critical Review of the effectiveness of operations management principles in Hotpoint. .1
TASK 2............................................................................................................................................6
P2 Preparation of a Continuous Improvement Plan in organisational context.......................6
TASK 3............................................................................................................................................9
P3 Application of PLC to the given project ..........................................................................9
TASK 4..........................................................................................................................................13
P4 Review of effectiveness of PLC application in the given project...................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Operation management is an ongoing organisational function that performs activities to
produce products and supply services. In operation management deals with daily routine
activities and also strategic business in systematic manner. While project management deals with
planning, organizing, motivating and controlling resources for accomplish specific goals. These
are steps related to project management and in this consist of operational management process.
In presented report select the company Hotpoint, which is based on American and European and
it engage in the process of marketing, manufacturing and selling the home appliances. (Beringer,
Jonas and Kock, 2013).
There is below report based on determine the suitable theories and concepts like as six
sigma methodology and lean principle. There is prepare and evaluate the effectiveness of the
continuous improvement plan with the help of principles of operations management. Evaluate
each stage of project life cycle and apply suitable project methodologies, tools and leadership
regarding to company. Analysis the all theories, concepts and models in each stage of the
company.
TASK 1
P1 Critical Review of the effectiveness of operations management principles in Hotpoint
Operation management is the business process which is responsible for the managing and
creating goods and services. This process involves the planning, organizing, controlling and
coordinating the resources of the organisation which is required for the production. In the
business level it includes the process of converting raw material into finished goods. In the Hot
point company, main function of project management is to develop strategies which is helpful
for the business activities (Fleming and Koppelman, 2016).
In the organisation, every departments are inter linked and they used various approaches
and techniques. To achieve Hotpoint company's goals and objectives and the fulfilment of these
objectives manager need to fix regular meeting with the employees. Make strategies is the main
function of the company and it is responsibility of the manager to apply these strategies in
effective way. Also communicate with employees at the work place regarding their work. The
company introduce new product in the market which fulfil this purpose.
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In the present scenario, Hotpoint has already existed in manufacturing line which deals in
fridges, washing machines, electric cookers and freezer. The company also dealing in marketing,
manufacturing and selling of home appliances with a chance to enter in the large screen
television market. The company has decided to launch 58 inches TV for its customers with large
screen and it will sold in Auditorium, parks and stadium. In the respect of attain needs of
company there is set ll principles regarding to project. With the help of these principles company
has prepared strategic goals ans also set operational activities . These have been discussed below:
Six sigma
It is a quality control methodology which is developed in 1986 and applied for data
driven for analysis to different defects and mistakes in and process. Six sigma emphasizes cycle
time improvement while at the same time reducing manufacturing defects to a level of no more
than 3.4 occurrences per million units or events. In general way, the system is a method to work
faster with lesser mistakes (Gunasekaran and Ngai, 2012). Various principles of operational
management regrading steps of six sigma are mentioned below:
 Define – It is the first step of six sigma which is defined about the need and wants of the
customers. The methodology provides accurate direction to complete this stage and the
company of Hotpoint evaluate of strategy of the market. The strategy helps to target
customer and fulfil their demands.
 Measure – In the second step determine all manufacturing process which include all
improvement of actual state. In general way, it provides help to find out resources which
are connected to products. It helps to find out qualitative products after measurement.
 Analyse – The third step evaluate all issues which are related to launching new product.
There is also consider problems related to implementation and modification of product in
specific manner. In this stage the company of Hotpoint apply this principle to sort out all
issues and problems which is face by all employees of the company.
 Improve – In this step after determination identify all problems and issues which are
modify in this section. It is created chances of possibilities and succession in respective
manner. There is modify all business activities by operational manager of Hotpoint to
changes environment of work place.
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 Control – It is the last stage where approach of six sigma control all business activities
for reduce all problems and issues in the manner of manufacturing. In this stage
operational manager of Hotpoint to fulfil all demands of every individual person.
It is a core tool which is used in the new product development. When Hotpoint can apply
this strategy for develop 58 inches TV for their customers who is related to stadium and
auditorium. It will help to produce model without any error and highest precision possible. In the
TV contain highly accurate work modules as well as high definition resolution from the buyers
perspectives. It will develop different from other TV which is helping to attract customer and
increase production. This concept will apply for new product which is related to high quality
production, based on customer requirement. The application of this project have a negative on
the Hotpoint's TV dream as it may result in time and cost overruns due to the fact that the
principle will approval for internal quality control measure which is costly and it will affect to
creativity as well as innovation process. Thus, Hotpoint would use those resources which is
costly but there is not and defect regarding to quality.
Lean principle
The lean principle is provided advantage to operational manager of Hotpoint, it provides
innovative and new idea for maintain and modify the quality of production process. The lean
principle is evaluating five steps, these are identify value, create flow, establish pull, define value
and pursuit perfection(Jacobs, Chase and Lummus, 2014). These steps helps to make and launch
new product in particular market segment. The Hotpoint company wants to launching new
television in 58 inches in particular market. There is discussed about the five steps - Identify value - First step of lean principle, define the value of Hotpoint company which
delivered by the company to their clients. It is basically for what customer pay for which
product or that is usable or not. It is also helpful for the company to identify the taste of
preference of the consumers and how much they afford to pay for the product. Map the value stream - After setting plan, this process includes the production to the
final goods reached at customers place for the consumption. This process reduces all
those activity which not provide any value to the company. This process become
successful when all the unwanted activities stop by the manager and it cut the cost of
product.
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 Create flow - In the process, manager will ensure about every wasteful activities that is
reduced after then start their work in full of flow. This step provides the regular process
which in not delayed further. If Hotpoint company wants to avoid the slow process than
manager have to follow the proper procedure. For this, company provide proper training
to their employees and also distribute the work in appropriate way. Establish pull - To improve company's flow, Hotpoint required to follow the just in time
approach which produce product according to requirement. So there is no need to store
more material in their warehouses.
 Pursue perfection - It is the most important step in this lean principle, because in this
stage Hotpoint company follow the traditional way of production. Which improve the
quality of product as well as improve it's value for the customers.
If Hotpoint can follow the strategy of produce 58 inches TV for their customers and also
for Auditorium and stadium. So the business would be capable for produce a model where is no
wastages and in a proper manner. Developing a television model which is based on the
operational principles where is no any other deviation related to budgeted costs of the project.
Due to exploding of demand for sustainability, there is followed business objectives. The main
objective of company not only enhance value stream but also attract customers. In hence, there is
low margin and the principle not correctly guide about to project development. Sometimes it will
misguide for process activities as a result chances of failure of project. If Hotpoint can adopt this
strategy so they have to maintain stock level of 40000 units of television models. For
implementation of successful plan in Hotpoint, there is selected six sigma methodology for
decrease defects and improves precision at the launching of product.
Principle of operation management Reality – This principle of operation management focus on the different solution which
are related to problems. This principle in real life solve problem without any tool and
present a universal solution to hotpoint. Fundamentals – In this principle the company has run for achieve fundamentals tools so
for this there is required to maintain effective records and reliable tools of stocks. It will
provide guidance to Hotpoint for achieve success 80% regarding larger screen television
and adopted new techniques for remaining 20% development.
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 Variances – In this principle, it described that variances are important for any project
because they are helping to increase productivity in operation department and reduce all
unwanted cost. The company of Hotpoint, organise all resources in effective way for
maintain effective management in the company. Accountability – It is one of the principle of operation management which provides all
reasonable way to expand business in broad way. There is important for the manager of
company to monitor all roles and responsibilities to each employees’ hotpoint. Organisations – The principle of organisation create relation between all manufacturing
process. The operational manager of Hotpoint predicts outcomes for company to monitor
business activities to accomplish desired results. Predication and reconciliation of
manufacturing process would help to fulfil estimate and effective profit throughout their
televisions. Principle of inventory management – In this principle understanding of inventory
management techniques and principle. It will help to understand roles and responsibilities
of participants regarding to control of inventory and see impact of stock on Hotpoint
company. For this principle the manager of Hotpoint identifies all important skills and
techniques to apply in company (Martins and Martins, 2012). Principle of operations planning – According to this principle, understanding basic
concepts of manufacturing and it is help to identifying techniques which are used at every
stage on planning process such as strategical to tactical in hotpoint. Principle of manufacturing management – In this principle provided modern concepts
and practices regarding to manufacturing management. So there is Hotpoint's manager
discussed about the manufacturing environment, bills of material and crowd, process
layout, implement producing planning and control activities, working with material
requirements planning and other more. Distribution and logistics – With the help of this principle the manager discussed about
the various topics about manufacturing process. This principle helps to monitor activities
of warehousing, the principle and activities of transportation, distribution channel design
and more of hotpoint. Managing operations – It is based on fundamental knowledge and identify the concept
of decision tool which is related to organizational process management. There is manager
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of Hotpoint concerned about design of product and produce goods and services relating
to these systems. Managed passion – In this principle, the passion in the employees affect organisation
success because they are driver for success of product development and growth of the
company. The manager of Hotpoint tries to appoint these types of for improvement of
company.
 Humility – As per the principle, manager at Hotpoint, instead of adopting a costly trial
and error procedure must admit their limitations when product development and must
effectively get help to secure the firm and its business (Mir and Pinnington, 2014).
TASK 2
P2 Preparation of a Continuous Improvement Plan in organisational context
It is very important for an organisation to analysis continue the manufacturing and new
product improvement to getting possible and maximum results. The improvement plan follows
by every company for the modification and improvement of the company. Continuous
improvement plan is a plan of action which is manage by the process of product development. It
is a cycle of different activities where improve of products and provide services on ongoing
process. The improvement plan can develop under six sigma methodology and there is following
plan – Do – Check – Act for the betterment of plan. It is a important tool for which helps in
creating systematic method when introducing problems regarding to new product. There is
discussed below improvement plan for large screen television by Hotpoint -
Plan Do Check Act
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A manufacturing process based
on Six Sigma Principle that
would ensure:
-Deliverance of quality products
with zero errors.
-Competitive Advantage in
Large Screen Television Market.
-Acquisition of at least 10% or
more of the total market share in
the sector with a budget of £100
million.
- Production of 4K as well as
UHD television units with
android-friendly user interface
including Screen Mirroring.
-Television units would include
LED and OLED Technology, 58
inches-wide screen with a wide
viewing angle of 147 (H)/ 147
(V) as well as High Dynamic
Contrasting Ratio of 300000:1 for
better colour representation,
vividness, sharpness of screen
and crisp image.
-Raw Material used in production
will include metals, plastics,
fluorescent chemical coatings and
silicon.
A blueprint of
television model will
be created that would
guide in producing
the physical parts as
well as the overall
unit of Television
Model.
Small changes to the
blueprint may be
added to check
whether the data
gathered through
these alterations is
effective to achieve
an error-free model.
Multiple pilot
runs conducted
of the prototype
to target issues
arising while
operating the
model as well as
distortion in
images, audio as
well as colour
representation.
Using TQM
approach, the
quality test of the
prototype proved
to be successful
ensuring that the
production
process includes
the most effective
blueprint for the
new model. Also
using Customer
Mapping
technique, it was
ascertained that
the model gives a
high viewing
experience that
would provide
strong customer
relationship for
Hotpoint. Hence,
the solution is
successful and the
project can be
implemented.
Constraints of CIPD Principles/ Approaches Applications
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Quality Six sigma This application allows to
identify defects regarding to
process. In the present report
the company wants to launch
new TV and it is a system that
will deduct error in the
process.
Delivery Accountability In the principle of
accountability various division
assure about the delivered on
time.
Effectiveness of continuous improvement plan
The company of Hotpoint analysis potency of continuous improvement plan at each stage
of manufacturing. It is compound with the product development and effective process for the
plan. In this plan apply two methods first one is total quality management and second one is Six
sigma. In total quality management allow the company to analysis the over all quality of the
product according to demand of consumer. The company in this method select different
techniques and method for evaluate the quality of television (Kerzner and Kerzner, 2017).
The approach of six sigma is using for delivering products on time and there is every step
promote for television screen. The company apply different sources, technologies and methods
for on time delivery of television according to present standards.
Interrelationship
As per the above table can shows interrelationship between all mentioned stages such as
Plan-Do-Check-Act. These stages can help to critical analysis of each steps which is related to
project. According to present scenario, The management of Hotpoint has decided to address new
product and for this adopted six sigma technology in the division of television. The continuous
improvement plan has capable for check the objectives which is based on budget. The company
has prepared list of geometry, dimensions and quality of the television.
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TASK 3
P3 Application of PLC to the given project
Project life cycle
It is conducted by project manager to accomplish goal and there is find out purpose of the
project to meeting accurate objectives of company. The project life cycle starts from beginning
and in the middle of project activities are moved according to action completion. It is provided
proper guidance regarding to new product and communicate with team for reduce project failed
contingency (Pemsel and Wiewiora, 2013). The Hotpoint company wants to launch TV of 58
Inches so for this cycle follow particular way it is -
 Initiation – In this phase Hotpoint company find out all problems which are related to
business after that identify solutions of particular problems. The company find out the
need of project as well as objectives which is feasible or not. This phase helps to
identifying scope, strategies, stakeholders, deliverable time of large screen television
market.
Document of Business case for Hotpoint -
Company overview Hotpoint was founded in 1911 and it is
american and European brand which id supplier of domestic
appliances. (Weglarz and et.al., 2012).
Vision & mission There is vision of company to make people enthusiasm with the
help of their products and improve quality of product. Mission of
Hotpoint company to provide best quality goods like as television
which is useful in present as well as future.
Objectives Objective of Hotpoint company to secure leading position in the
electronic industry and produce good quality of products. To
ensure that they have unique technology which make it different
from other electronic items.
Strategies Hotpoint company build strategies for increase sales
products of company and they are also follow the marketing mix
strategies that specifically include the skimming price policy that
target the higher class people. It also changes their strategies
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according to market demand, they use flexible market strategies.
 Planning – After first phase there is starting next phase which is related to project
planning. According to this phase described about project initiation document regarding
to hotpoint, different business plans and work statement. For complete project in effective
way break it into small parts according to process manager. In this part provide training
to employees for achieve goals in limited time period. There is project planning based on
Strategic planning and implementation planning.
Document of Project plan for Hotpoint
Cost Hotpoint company introduce large size screen TV of 58 inches
and it's cost about £15,000 - £20,000.
Communication Hotpoint company's manager fix the meeting with
employees to provide proper knowledge about the new innovation.
So they can fully aware about new launched product. Company
evaluating all the relevant aspect of the products and make strategies
which is going to discussed with the members.
Quality Main purpose of the company is to produced good quality product
that is expected by the consumers as well. Hotpoint adopt few
strategies which help the production to produce quality product.
Company also use different Artificial intelligence techniques which
improve the quality.
Scope Scope of the company is related to the project performance on
successful accomplishment of work. Company hire effective and
efficient human resource that can manage the work in respect of
quality, production, handle equipment, tools etc. manager have to
make strategies and different team who can manage waste material
and check the delivery of product done by the employees.
Segmentation Income based segments
Targeting There is target to high class profile people who wants to purchase
big screen TV.
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