Operation Management Report: BSH Home Appliances Ltd. Project

This report provides a comprehensive analysis of operation and project management principles, focusing on their application within BSH Home Appliances Ltd. The report begins with an introduction to operation management, emphasizing its role in achieving business growth and efficiency. It then delves into Task 1, which reviews and critiques the execution of operation management principles, including reality, organization, accountability, variance, causality, managed passion, humility, success, change, and the application of Six Sigma and Lean principles. Task 2 focuses on the preparation of a continuous improvement plan, outlining strategies to enhance promotional events and after-sales services. Task 3 explores the application of product life cycle stages, and Task 4 evaluates the effectiveness of the product life cycle. The report concludes with a summary of findings and recommendations for BSH Home Appliances' new market entry and product development.

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
TASK 4............................................................................................................................................9
P4: Effectiveness of product life cycle........................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Operation management play an important role in achieving growth and success of
business organisation through performing several business functions in an effective and efficient
manner. They are held liable to design and control production process according to the needs and
requirements of customers. BSH Home Appliances Ltd. company which deals in producing
electronic products such as refrigerators, washing machines etc. is taken for the purpose of
preparing this report. The firm decide to enter into new market where they want to manufacture
large size television of 58 inches. The project covers the review and critique of operations
management principles and on the basis of which improvement plan has been made. There are
different stages of product cycle which is essentially required to adopt by the management of
company is also discussed under this report (Antonio Martins and Ramos Martins, 2012). The
project also summarises the review of effectiveness of PLC through applying suitable theories
and concepts.
TASK 1
P1: Review and critique of execution of operation management principles
In every organisation, there is a administration team which are responsible to manage and
control activities of firm. Operation management is formed with a motive of formulating an
effective plans and strategies regarding controlling cost and utilisation of available resources in
an optimum manner while producing products and services so that profitable outcome should be
achieved in near future.
Operation management is defined as an area of management which are responsible to
design and control the activities performed during production process. They are mainly focuses
on identifying the ways of fulfilling customer's needs and demands in satisfied manner so that
company can achieve huge profitability and sustainability for longer duration. The main function
they are liable to performed are marketing, human resource, supply chain and finance. In order to
operate business function more smoothly, an effective decision and plans should required to be
made which are related with product designing, quality and inventory control, enhances capacity
and operation strategy (.Beringer, Jonas and Kock, 2013). Thus, it is important for an
organisation to form operation management consisting of skilled and knowledgeable members
ho are capable to make a suitable and profitable decision while dealing with complex and
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uncertain situations. There are some principles which are required to be followed by BSH Home
Appliances Ltd. Ltd Group Corporation which help them in implementing an effective
management planning in order to produce standard quality product.
Such principles of operations management are mentioned as below:
Reality: Operation management is required to concentrate on the problems rather than
techniques as there is no technique which ensures in giving optimum solutions.
Organisation: All the elements in the production process are interrelated thus to achieve
positive outcomes, every components are required to be constant and predictable.
Fundamentals: In operation, Pareto rule is applicable which implies that about 20% of
the success is come from adoption of new methods and tools and remaining 80% is from
maintaining discipline and records precisely. Thus, BSH Home Appliances Ltd. need to focus on
maintaining discipline and books of accounts.
Accountability: The management are held liable to define roles and responsibilities to
their employees so that they can perform their delegated roles in an effective and efficient
manner. They are also accountable to check the performance of each employee in order to
determine the deviation if any, which restrict their subordinates to perform well.
Variance: The management of BSH Home Appliances Ltd. are also required to promote
changes in production process in order to brings creativity and uniqueness so as to maximise the
interests and behaviour of customers towards their products (Blomquist and et. al., 2010).
Causality: Issues or problems affects the production process which may causes losses to
company. Thus, it is important for management to forecast such issues and accordingly
formulate an effective plans to eliminate them as quickly as possible.
Managed passion: Passion and dedication of workforce drives an organisation to achieve
growth and success. Thus, it is important for management to conduct motivational programs for
them with a motive of improving their performance (Management Theories & Concepts at the
Workplace, 2018).
Humility: The management need to first identify the drawbacks of implementing
particular component in production process so as to eliminate wastage.
Success: The growth and success of BSH Home Appliances Ltd. in new market is based
on the needs and requirements of customers thus it is important for management to identify their
requirements and find out the ways of fulfilling them in an effective manner.
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Change: There are different theories and solution which need to be applied and changed
by the management over time in order to get profitable outcomes in near future. Thus, adding
new features in the product by the management of BSH Home Appliances Ltd. Help them in
attracting lots of customers (Brauers and Zavadskas, 2010).
Six sigma:
It is a group of techniques and tools which are helpful in improving production process
through identifying and eliminating the causes of defects and reducing variability in production
and business process. It will help in reducing cost as well as save time which brings profitable
outcome to company. Therefore, the management should always required to focus on
implementing advanced and updated technology in production process which help them in
manufacturing high quality products. Six sigma tools includes five steps which are as follows:
Define: It is the stage where the needs and requirements of customers, systems used in
production process and project gaols has been defined.
Measure: Under this phase, components used in the process of production are measured
along with the data collected by the management with a motive of calculating capacity.
Analyse: In this, gathered data has been analysed by the management to investigate and
verify cause-effect relationship. It is helpful in considering all such factors which brings
problems in the process of production.
Improve: In this. The management is focuses on improving production process in order
to achieve better possible outcome. It can be done through using techniques such as mistake
proofing, designing experiments etc. This will enhance the capabilities to manufacture quality
products without facing any wastage (Fernández-Sánchez and Rodríguez-López, 2010).
Control: In this phase, all the problems and deviation which restrict the production
department to produce optimum quality products are controlled through adopting an effective
controlling systems such as production boards, statistical process control, visual workplaces etc.
which help them in monitoring the process and attain expected level of quality.
Significance of Six Sigma: Better than TQM: It directs an organisation to focus on enhancing the quality of products
through utilising improvement techniques and tools.
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 Increasing customer satisfaction and build loyalties: It helps in gaining trust and loyalty
of customers through providing them quality products at an effective prices as compared
with their rivals.
Lean principle:
Lean refers to creating more values for the customers through using minimum resources.
The management is required to understand the customer value and accordingly focuses on
improving on regular basis. Therefore, such principle must be applicable by the management of
BSH Home Appliances Ltd. Ltd for the betterment of an organisation. It includes five steps
which are listed as below:
Identify value: In the first step, the managers of BSH Home Appliances Ltd. need to find
out the value of customers that what they want in a product and services and what they get after
purchasing products and services (Fleming and Koppelman, 2016).
Map value stream: In this step, the value has been determined which are required as well
as not-required by customers in products and services which help firm in sustaining ion new
market for longer duration.
Create flow: In the third steps, the mangers ensures the flow of value goods to customers
that helps in maximising their level of satisfaction.
Establish pull: In this, once flow is introduced, let the customers take or pull value from
the best upstream activity.
Seek perfection: Analysing all steps in order to make improvement if any required during
production process. This will help in creating more value without incurring any wastages.
Significance of lean principle:
 It helps BSH Home Appliances Ltd. to create more value to customers through providing
products after considering and implementing the changes required by customers in
product (Turner, 2016).
 It helps firm to understand the importance of customer;s value which guide them to
improve the products on continuous basis with a motive of enhancing their level of
interest and satisfaction.
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TASK 2
P2: Preparation of continuous improvement plan based on operation management principles
Continuous improvement refers to making changes in existing products and services on
regular basis according to the taste and preferences of customers with a motive of maximising
their level of satisfaction. This can be done through collecting feedbacks and suggestion from the
customers related to their products and accordingly implement corrective actions and plans to
implement required changes and adding value to product which helps in grabbing attentions of
lots of new customers as well. Therefore, the management are liable to perform all such activities
in order to achieve huge customer strength and profitability. Thus, continuous improvement is
essentially required to provide quality and updated products and services in order to sustain in
competitive market world for longer duration (Gunasekaran and Ngai, 2012).
Continuous Improvement Plan:
Provider
Date
Source Existing performance
Level
Improvement in
strategies
Expected Outcome
Promotional events Due to lack of
promotion, the buyers
may show less
interests and
willingness to buy
company's products
and services as they do
not have proper
knowledge about their
quality and price of
products.
Firm should required
to adopt an effective
marketing tools such
as advertising on
newspapers,
pamphlets, social
media etc. through
which they can attract
lots of customers.
Using an effective
marketing tools, firm
can able to touch with
their customers and
identifying the
changes required by
customers in their
existing product. This
will attaining hue
customer strength.
After sales services The company is not
giving more efforts in
Feedback form should
be given to customers
This will help in
knowing the
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collecting their views
and satisfaction level
after buying product
which brings
disinterest among
customers towards
company. Lack of
service centres also
brings many
difficulties in front of
customers regarding
any maintenance of
products.
in order to identify
their satisfaction level.
Opening new services
centres in different
places will also
motivate customers to
buy their products so
that if they faced any
problems in future
relating to product, it
can be easily resolved.
perception of people
which direct
management to make
an effective plans and
strategies to resolve if
any problems faced b
y customers and
maximises their level
of satisfaction.
Improvement plan and its effect:
From the above mentioned plan, it has been observed that continuous improvement
planning proves to be an effective tool for BSH Home Appliances Ltd. Ltd Group Corporation.
After analysis, it has been observed that firms need to focus on improving their products and
services on regular basis after analysing the changes required by customers in their existing
products and services. Therefore, the management are held liable to implement new and
innovative ideas which maximises the value of product and services in order to increase the
satisfaction level of customers (Lenfle and Loch, 2010). For this, R&D team need to conduct
research in which they need to find out the needs and requirements of customers and their
perception towards company's products which helps them in enhancing the products and
services. The management also required to focus on providing services after sale of product with
a motive of retaining customers with customers for longer duration.
Strategies for implementation of plan:
The management of BSH Home Appliances Ltd. Ltd need to formulate and implement an
effective plan and strategies in order to bringing improvement in the products and services so as
to maximise the value to product. Such strategies and plans are related with:
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Good employment relation: It is important for company to maintain healthy relation with
their customers so as to gain trust and loyalty among them. Getting feedbacks and suggestion
from the customers brings good image of company in front of customers due to which the
chances of increasing sales figure of company's products will be more.
Proper communication channel: It will also brings profitable result to company if the
management established communication channels at workplace through which workforce can
easily communicate with each other. This will motive workers which directly make positive
impact on their performance as well (Mir and Pinnington, 2014).
Organisational theories and models:
There are various theories and models which are required to apply in an organisation
which help them in operating business more successfully. Such theories includes classical,
bureaucratic and scientific approaches which directs management to perform their delegated
roles and and responsibilities in an effective and efficient manner. Therefore it is essentially
applicable for management of BSH Home Appliances Ltd. Ltd to apply such theories and models
in order to enhance production process that will bring profitable outcome in near future. Through
application of such theories, the management can able to make an effective plans and strategies
that directs them to perform future course of action.
TASK 3
P3: Application of product life cycle stages
The firm wants to introduce large size television of 58 inches thus in order to execute
such decision, the company need to conduct research and make suitable planning relating to
investment, marketing, production etc. As there are different sources from which the company
can raise funds and attain good financial strength. The management is also required to adopt best
method which help in increasing the dales and revenue of company. Before introducing
Television in market, the firm should required to analyse the market situation firstly and it can be
done through conducting market research (Pemsel and Wiewiora, 2013). Through analysing the
market trends, the company can able to know which products are more in demand and what
changes the customers wants in the product and services. This will help in developing the
product according to the requirements of customers. Therefore, before entering into new market
of large screen television, they need to focuses on adding some extra value to the products
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through in-building unique features and functions which can easily attract large number of
customers. Product life cycle is an important marketing concept that defines the stages of
products from its development to obsolescence from market (Subramanian and Ramanathan,
2012). It includes four stages:
Introduction stage: It is the first stage of product life cycle in which the product has been
introduced in market for the first time. This can be done with the help of taking support from
Research and Development team of BSH Home Appliances Ltd. group Corporation which are
liable to conduct research and identifying the need and perception of customers in market related
with the product they offered. This will help management in deciding whether current market
situation is suitable for introducing new product in market. It is an expensive stage of product
life cycle as BSH Home Appliances Ltd. group is small in size which required hug amount of
funds in order to introduce new product into new market. Expenditures on research, consumer
testing, marketing etc. should required company to have enough funds to implement such
strategies (Ramasesh and Browning, 2014).
Growth stage: In this stage, the company are looking to improve sales figure of their
products and services in order to generate huge revenues and achieve huge profits. Through
making an effective strategies and plans by the management help in sustaining new product in
market in more successful manner. The managers of BSH Home Appliances Ltd. are required to
invest huge amount of promotional strategies which help them in communicating their customers
regarding the price, quality, features etc. of product so that maximum number of customers are
attracted towards purchasing their product.
Maturity stage: In this stage, new product has been successfully introduced into market
which are the main objective of BSH Home Appliances Ltd. As due to high competition in
market, the company may find difficulties in sustaining into nee market thus it is important for
them to allocate funds on production and marketing process so as to compete with their rivals.
Decline stage: In this stage, the growth and success of an organisation starts declining
due to frequent changes in customer's needs and requirements. As business environment is
contingent in nature which causes lots of problems in functioning of business due to which the
existence of organisation may comes in danger (Robichaud and Anantatmula, 2010).
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TASK 4
P4: Effectiveness of product life cycle
As per given case, BSH Home Appliances Ltd. Decide to introduce new product i.e. large
screen television into market to expand their business and attain huge profitability. As the
company is small in size but has attained good image in market which will help them in
sustaining with new product in market for longer duration. But application of product life cycle
is not easy. It is necessary for management to formulate an effective and strategies which help in
taking future course of actions. Market analysis should be done in an appropriate manner so that
the management are able to implement an effective plans and decisions regarding several
changes required by customers in their product. The taste and preferences of customers are
carefully need to be determined by the management so that business activities should be done
accordingly (Söderlund, 2011).
Product life cycle helps in executing of strategies regarding introducing new product into
market. As BSH Home Appliances Ltd. decide to introduce large size television in new market
which requires specific knowledge of current situation exist in market environment. Identifying
the needs and requirements of customers along with their purchasing capacity so that they can
implement decision accordingly. The management also required to analyse rival's strategy related
to the price, features etc. of product and accordingly adding some extra value to their products
due to which the chances of shifting customers towards their company's products will be more.
CONCLUSION
It has been concluded from the above project report that operation management play a
crucial and important role in achieving growth and success of business organisation through
making an effective plans and strategies for their betterment. As BSH Home Appliances Ltd.
Decide to bring large screen television in market due to which they faces many difficulties
regarding availability of funds, attracting customers etc. thus it is important for management to
conduct research in order to find out the profitable situation to introduce new product into
market.
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REFERENCES
Books and Journals
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