Operation and Project Management Report: BSH Home Appliances

This report provides a comprehensive analysis of operation and project management principles within the context of BSH Home Appliances Ltd., a UK-based company entering the large-screen television market. The report critically examines the execution of operation management principles, including reality, organization, accountability, variance, causality, and continuous improvement. It includes a detailed review and critique of Six Sigma and Lean principles. Furthermore, the report formulates a continuous improvement plan, focusing on promotional events and after-sales services. The application and effectiveness of product life cycle stages are also discussed. The analysis considers factors affecting production processes and the significance of adapting to customer needs and preferences for achieving growth and success. This report is a valuable resource for students studying operation and project management, offering practical insights into real-world business scenarios and strategic planning.

Operation and Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Review and critique of execution of operation management principles...............................1
TASK 2............................................................................................................................................5
P2: Preparation of continuous improvement plan based on operation management principles. 5
TASK 3............................................................................................................................................7
P3: Application of product life cycle stages...............................................................................7
P4: Effectiveness of product life cycle........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Operation management is concerned with controlling and designing the manufacturing
process and also redesigning the business activities for producing desired products and services.
They are responsible to produce quality products and services as per the needs and requirements
of customers. BSH Home Appliances Ltd. a UK company which is engaged in providing
electronic products such as refrigerators, washing machines etc. is selected for the purpose of
preparing this report. As per the given study, the company as decided to enter into Large Screen
Television Market in order to capture large market share in UK. The project includes the review
and critique of the implementation of operations management principles. There are different
stages of product cycle which is must required by management to adopt is also explained under
this report. The project also includes the summary of reviewing effectiveness of PLC through
applying different theories and concepts (Antonio Martins and Ramos Martins, 2012).
TASK 1
P1: Review and critique of execution of operation management principles
There is administration team in an organisation which is liable to manage and monitor all
business activities of an enterprise. Operation management is established with the purpose of
taking effective decisions and making plans in order to utilise available resources in an optimum
manner which reduces cost of production. This will help an enterprise to produce quality
products and services that will easily attract large number of customers.
Operation management may be defined as the department of an organisation which
mainly focuses on controlling and design production activities in order to produce value added
products and services so as to maximise the satisfaction level of customers (Robichaud and
Anantatmula, 2010). For this, they are liable to make effective plans and strategies regarding
marketing, development of human resource, distribution channels and arrangement of finance
which is must required to operate production activities in an effective and efficient manner. The
operation management also required to consider the factors which affects the production process.
Such factors may related with supply of raw materials, needs and demands of customers,
technologies used etc. Thus, to deal with such factors the operation management should consist
of members having specialised skills and knowledge who understand the factors arises due to
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uncertainties. There are various principles which are needed to be followed by BSH Home
Appliances Ltd. which will help in making effective plans to manufacture quality products.
Principles of operations management are given as below:
Reality: The management of operation is required to focus on problems instead of
techniques as there are no singe techniques which help in providing optimum solution.
Organisation: The production process are interrelated and interconnected. Thus, to
achieve profitable outcomes the management is required to consider all components which need
to be consistent and predictable (Beringer, Jonas and Kock, 2013).
Fundamentals: In operations, Pareto rule is applicable i.e. 20% of success comes from
application of new methods to processes and 80% from strict adherences to maintaining
discipline and records precisely.
Accountability: The management are held accountable to communicate all roles and
responsibilities to their employees and analyse their performance in order to determine whether
the employees are performed as per desired standards or not.
Variance: The management of BSH Home Appliances Ltd. need to focus on
implementing changes in the different process of business activities in order to attract large
number of customers.
Causality: There are different issues and problems which may affects the production
process which may bring negative outcome to company. Thus, management should required to
forecast such issues and accordingly make an effective decision and plans in order to prevent
such issues as early as possible.
Managed passion: Employees in an organisation should be more passionate and
dedicated towards work thus help in achieving desired goals and objectives. The management
should required to motivate them through conducting motivational programs which help in
increasing their performance level.
Humility: The management always need to focus on identifying the limitation of
implementing particular component in production process so as to reduce wastages.
Success: BSH Home Appliances Ltd. Can achieve growth and success only when the
management are able to identify the needs and preferences and implement corrective steps and
ways to fulfil them in an effective and efficient manner (Blomquist and et. al., 2010).
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Change: It refers to modifications in existing products and services according to the
needs and requirements of customers so as to achieve profitable outcomes in future. BSH Home
Appliances Ltd. should implement value added features in their existing products with a motive
of attracting large number of customers (Ramasesh and Browning, 2014).
Six Sigma:
It is an approach adopted by management with the purpose of enhancing quality through
identifying and measuring the causes of defects incurred in production process and accordingly
make corrective actions and measures to eliminate them until there are as close to zero defects as
possible. Through applying such approach, the management are able to minimise the cost of
production as well as save time which help in bringing profitable result to company. Thus, the
management should focus on adopting advanced and updated technology in manufacturing
process in order to produce quality products. Six Sigma tools consist of five steps which are
briefly described as below:
Define: This is the first stage in which all tools and techniques used in manufacturing
process, taste and preferences of customers and project are defined by the management to their
employees in understanding manner.
Measure: Under this stage, the elements used in production process are carefully
measures in order to determine their effectiveness (Management Theories & Concepts at the
Workplace, 2018).
Analyse: At this stage, the collected information should be analysed by the managers of
BSH Home Appliances Ltd. in order to investigate and very cause effect relationship. This will
help in identifying he factors which brings difficulties in production process.
Improve: Under this, management focuses on improving existing products through
implementing new and innovative techniques in production process. This will help in reducing
wastage and cost of production as well through which BSH Home Appliances Ltd. can able to
provide quality products at an affordable prices (Subramanian and Ramanathan, 2012).
Control: In this stage, all the issues and problems comes in the process of production due
to different factors which restrict them to produce quality products and services. There are
different controlling systems such as production boards, statistical process control, visual
workplaces etc. which help management in managing and controlling the production activities so
as to achieve desired level of quality.
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Significance of Six Sigma:
Better than TQM: It directs an organisation to focus on improving the quality of products
through utilising innovative techniques and tools.
Increasing customer satisfaction and build loyalties: It helps organisation in gaining
loyalty and trust of customers through offering them quality products at an affordable prices as
compared with their competitors.
Lean principle:
Lean principle refers to giving more values to customers through less resources. The
management should first consider the ways of maximising customer value and thereafter focuses
on enhancing on continuous basis. Thus, such principle should be adopted by the management of
BSH Home Appliances Ltd. In order to provide quality products so as to maximise customer
value. Such principle consists of five steps which are given as below:
Identify value: In this step, the management of BSH Home Appliances Ltd. need to
determine what the customers expected from others and which features of products attracts most
of the customers. After identifying all these, the management should able to make an effective
decision and plans for production process (Brauers and Zavadskas, 2010).
Map value stream: Under this step, the management has determined the value which
maximises the satisfaction level of customers as well as the value which restricts them to
purchase their product ad services. This will help BSH Home Appliances Ltd. in sustaining in
new market for longer duration.
Create flow: Under this step, the management creating value steps in right sequence in order to
move goods to customers more smoothly.
Establish pull: In this, once flow is introduced, let the customers take or pull value from the best
upstream activity (Pemsel and Wiewiora, 2013)
Seek perfection: In this last step, the management review all above steps and make changes if
required in order to produce value added products with the help of utilising available resources in
an optimum manner.
Significance of Lean principle:
It helps BSH Home Appliances Ltd. to maximise the value to customers through developing
products as order the needs and requirements of customers.
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It helps an organisation to understand the value of customers which motivate them to produce
quality and value added products in order to maximise the level of satisfaction of customers.
TASK 2
P2: Preparation of continuous improvement plan based on operation management principles
In order to exist in competitive market for longer period of time, BSH Home Appliances
Ltd. Should required to make regular changes in their existing products and services after
identifying the needs and requirements of customers. This will help in increasing satisfaction
level of customers. It can possible when the management hire research who conduct research for
them and collect relent information about customer's taste and preferences which help them in
making an effective decision and planning regarding changing their existing product into better
one. The management are responsible to do all such activities with a motive of gaining huge
customer base and profitability as well. The continuous improvement in products will increases
the chances of survival in market (Fernández-Sánchez and Rodríguez-López, 2010)
Continuous Improvement Plan:
Provider
Date
Source Existing performance
Level
Improvement in
strategies
Expected Outcome
Promotional events As firm are not usually
prefer to adopt
promotional tools in order
to advertise their product
due to which customers
show minimum interest
to purchase their products
due to lack of knowledge.
It is essentially
required for
management of firm to
adopt various
marketing tools such
as advertisement on
TV, Newspapers,
Social media etc.
which grabs an
attention of customers
It will help company
in identifying the
needs and
requirements of
customers and
accordingly introduce
product into market so
to gain huge customer
strength.
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towards their products.
After sales services Sometimes the company
ignores the customers
after providing them
goods and services which
brings disinterest and
behaviour of customers.
They also not guide their
employees to get
feedbacks and views from
the customers. Limited
number of service centres
brings problems towards
the customers regarding
repairing of products.
The management
should required to give
proper guidance to
their employees
regarding collection of
feedbacks from the
customers after certain
period of time. It helps
them in knowing the
satisfaction level of
customers and the
changes the customers
wants in their product
and services.
This will help
company in
identifying the taste
and preferences which
direct company to
improve the process of
collecting feedbacks
and also able to make
an effective plans to
resolve issues faced by
customers after using
company's product.
Improvement plan and its effect:
As from the above given plan, it has been clearly shown that BSH Home Appliances Ltd.
can easily achieve growth and success when the management focuses on implementing regular
changes in their existing products and services so as to enhance satisfaction level of customers.
The management are held responsible to adopt new and innovative ways to enhance the value of
product which maximises the interest and buying behaviour of customers. For this, Research &
Department gives maximum support to an organisation through providing them the information
about the needs and perception of customers towards products and services of company. The
management need to concentrate on offering products and services after sale of product with the
purpose of retaining loyal customers for longer duration (Fleming and Koppelman, 2016).
Strategies for implementation of plan:
It is important for the management of BSH Home Appliances Ltd to make an effective
strategies and plans regarding bringing changes in existing goods and services so as to fulfil
customer's needs and requirements. Such strategies are related with:
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Good employment relation: Employees are the main asset for company who performs
and execute all business activities with the help of using resources in an optimum manner.
Therefore it is important for management of BSH Home Appliances Ltd to maintaining good
relation with them with a motive of retaining them for longer period. It can possible only
collecting feedbacks and inviting them to participate in decision making process.
Proper communication channel: Creating communication channels with a motive of
communicate with the employees at workplace help in bringing motivation and self-confidence
among employees. This will help in motivating employees to think new to fulfil customer's
requirements (Turner, 2016).
Organisational theories and models:
There are different theories and models which are essentially need to be adopted by an
organisation in order to operate business functions more smoothly. Such theories are classical,
bureaucratic and scientific approaches which motivates the managers to perform allotted roles
and responsibilities in an appropriate manner. Thus, it is essentially required for management of
BSH Home Appliances Ltd. to adopt such theories and models with the purpose of enhancing
production process (Mir and Pinnington, 2014)
TASK 3
P3: Application of product life cycle stages
As per given case study, BSH Home Appliances Ltd. Decide to launch new large size
television of 58 inches thus to implement such decision the management should required to
conduct research through which they can able to identify the needs and requirements of
customers. The management also need to consider several factors such as investment, marketing,
production etc. Therefore, before introducing new television in market the management should
required to analyse the market conditions firstly through conducting research. This will provide
an opportunity to improve products as per the needs and requirements of customers. The new
television can be sustain in market only when the company comes up with new features and
functions which grabs an attention of large number of customers. Product life cycle is an
important marketing concept which explains the stages of products from obsolescence to
development of product in market. It consists of four stages such as:
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Introduction stage: This is the first stage of product life cycle in which the product has
been introduced in market for the first time (Gunasekaran and Ngai, 2012) It can be possible
with the help of R&D team of BSH Home Appliances Ltd. which are responsible to conduct
research and knowing the actual needs and requirements of customers in market related to the
product they provided. This will help managers in determining the environment for introducing
new product. It is an expensive stage as the company requires huge amount of funds in
marketing, conducting research, consumer testing etc. due to which it becomes difficult for BSH
Home Appliances Ltd. To raise from funds.
Growth stage: In this stage, the company focuses on growing their business in order to
generate huge revenues and profits. The management of BSH Home Appliances Ltd. Should
required to implement an effective plans and strategies which help in communicating the
customers regarding the price, quality, features etc. of goods in order to attract and influence
interest and buying behaviour of customers towards new product.
Maturity stage: In this stage, new product has been successfully introduced into market
which are the main objectives of BSH Home Appliances Ltd. Due to large number of competitor,
the company may face find various problems in introducing new product into market thus it is
essentially required to allocate funds on production and marketing process in order to compete
with their competitors (Lenfle and Loch, 2010).
Decline stage: In this stage, the growth of company start decreasing due to changing taste
and preferences. As business environment is complex in nature which causes lots of problems in
order to operate business functions due to which survival of organisation may comes in danger.
P4: Effectiveness of product life cycle
In the present case, BSH Home Appliances Ltd. Is an organisation which main aim is to
provide new product in market. The product which is wanted to launch by the management of
organisation in market is large screen television. The main objective behind the expansion of the
business operation is to earn large number of profits. It is observed from the analysis that
organisation has good brand image in-spite of small in size. This will provides the opportunity to
the organisation is to attain the sustainability in their business operations through launch of new
product in market for longer period of time. Application of the approaches of product life cycle
is difficult task. In this regard, management of organisation is need to formulate the strategies
and plans which contributes in effective performance of future business operations. Market
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research is the important aspect which helps in identification of the preferences of customers and
make effective strategies to bring changes in the existing features of their products. Effective
fulfilment of the needs of customers helps to conduct the business activities in optimum manner.
Product life cycle is important concept which helps in implementation of the strategies is
respect to penetration of new product into market. At present, BSH Home Appliances Ltd. Wants
to launch new large size television. For its effective launching in market need to analyse the
factors which are present in market. It assist in formulation of effective plans which contributes
in influencing the behaviour of buyers. To attain success in their objective need to evaluate the
strategies adopted by the competitors like their products, price, features etc. It provides the
opportunity is to use innovative techniques which helps to add new feature in their television
which attracts the customers of competitor also. It helps in making the product more unique and
good through which large number of benefits are gathered by organisation.
CONCLUSION
It has been concluded from the above project report that management operation play a
valuable role in achieving competitive advantage of company through executing production
process in more effective and efficient manner. As BSH Home Appliances Ltd. make an
effective and plans in order to produce quality products which maximises the level of satisfaction
of customers.
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REFERENCES
Books and Journals
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