Operation and Project Management Report: Heir Group Corporation

This report examines the operation and project management strategies of Heir Group Corporation, focusing on the introduction of a 58-inch television. It begins with an introduction to operation management, emphasizing its importance in designing and controlling production processes. Task 1 reviews and critiques the execution of operation management principles within Heir, detailing principles such as reality, organization, fundamentals, and the application of Six Sigma and lean methodologies. Task 2 prepares a continuous improvement plan, outlining strategies to enhance promotional events and after-sales services. Task 3 delves into the application of product life cycle stages for the new television launch, including a business case and market analysis. The report concludes with an assessment of the product life cycle's effectiveness, incorporating relevant theories and concepts to evaluate the overall operation and project management approach.

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............................................................................................................................................4
P2 Preparation of continuous improvement plan based on operation management principles...4
TASK 3............................................................................................................................................6
P3 Application of product life cycle stages.................................................................................6
TASK 4 ...........................................................................................................................................9
P4 Effectiveness of product life cycle.........................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Operation management is very important function of every business enterprise which
assists in designing & controlling of production process as well as redesigning business
operations in manufacturing of products and services. This function supports an organisation in
meeting needs & demands of customers. It is related with managing the whole production system
in which inputs are converted into outputs (Antonio Martins and Ramos Martins, 2012). In this
assignment, chosen company is Heir which deals in manufacturing of electronic products like
refrigerators, washing machine etc. Heir wants to enter into new market of large size television
of 58 inches. The report includes, review and critique of operations management principles
execution as well as a constant improvement plan will be prepared on that basis. Application of
each stage of product life cycle for developing necessary supporting document and critical
review of effectiveness of PLC by using suitable theories and concepts is included in this project.
TASK 1
Review and critique of execution of operation management principles
In every organisation, there is a administration team which control activities of Heir.
Operations management is concerned with managing business practices that are related with
production process. This department assists in controlling cost and ensures optimum utilization
of available resources. Management develop various strategies in order to get effective
outcomes.
Operations management basically deals in designing and controlling of manufacturing
process and redesigning of business activities. It is one of the main function in Heir along with
marketing, human resource, supply chain and finance. Operations requires both, strategic as well
as day to day production of products and services. In managing activities, various kinds of
decisions are made which involves product & process design, facilities planning, quality
management, inventory control, capacity and operations strategy (Beringer, Jonas and Kock,
2013). Each of these needs an ability to examine current situation & determine better solutions to
enhance efficiency and effectiveness of production process. Some principles that Heir Group
Corporation follow are defined below. This assists companies in implementation of management
planning for producing high quality goods.
Operation management principles:
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There are some principles of operations management that can facilitates Heir in
implementing strategies are as follows:
Reality: Operations management in Heir should majorly emphasize on problem rather
than techniques as there is no tool in itself that would give a universal solution.
Organisation: The processes of production are interconnected. In order to attain a same
outcome in profits, all components are required to be consistent and predictable (Blomquist and
et. al., 2010).
Fundamentals: In operations, Pareto rule is applicable, i.e., 20% of success comes from
application of new methods to processes and 80% from strict adherence to maintaining
disciplines & records precisely.
Accountability: Managers are required to set rules and define responsibilities to their
subordinates. It would also expected to check regularly if goals are met in order to ensyre that
employees are putting necessary efforts.
Variance: It has to be encouraged like if variance of processes is managed well, it can be
a source of creativity.
Causality: Issues are symptoms and they are effects of underlying cause. It is necessary
for management to pay attention on them in order to find root cause of it and get rid of problem.
Managed passion: Passion of workforce can be a main driver of growth of company and
it is important for managers to instilled, if it not coming naturally.
Humility: Rather than trial & error process which is very costly, managers needs to
acknowledge their limitations & get help and move on.
Success: It will always consider customer's interest in Heir. Success of Heir rely on its
clients. So, it is necessary for business to revise all the principles occasionally in order to keep
consumers (Brauers and Zavadskas, 2010).
Change: There are various theories and solutions so, Heir should not stick with one.
They needs to embrace and manage it to attain sustainability for long term.
Six Sigma methodologies and lean principles:
Six Sigma: It is a pattern which is utilized by Heir in order to improve quality of
operation management through eliminating errors. It will assist in reducing cost as well as save
their time. In order to enhance quality of goods, it is important to use high end technology and
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production processes. Six Sigma is a tool that assists in solving problems regarding operations
and quality management. It is a five step process that includes-
Define: It specifically includes defining of system, customer voice and their needs as
well as project goals.
Measure: In this phase, important features of current process in Heir is measured and
relevant data is collected by management in order to calculate the capability of process
(Fernández-Sánchez and Rodríguez-López, 2010).
Analyse: Collected data is analysed by manager in Heir to investigate & verify cause-
effect relationship. Under investigation, it is ensured that all factors are considered in order to
seek out main cause of problem.
Improve: In this, current process in Heir is optimized on the basis of data analysis by
using techniques like mistake proofing, design of experiments, standard work to develop new
process etc. Pilot runs are set up to introduce process capability.
Control: Future state process in Heir is control in order to ensure that deviations are
corrected before they resultant in defects. It is essential for managers to execute control systems
like production boards, statistical process control, visual workplaces etc. for continuously
monitoring the process. It is repeated until expected level of quality is obtained.
Lean principle:
Lean principle is a five step thought process which is used to guide the execution of lean
techniques. It is easy to recognise but not easy to attain. This principle is followed by managers
of Heir. Steps included in this are:
Identify value: In this step, value is specified from point of view of end consumer by
product family (Fleming and Koppelman, 2016, December).
Map value stream: Under this, all the steps are identified in value stream for every
product family and all those steps are eliminated that do not create any value.
Create flow: Value creating steps are formulated that occurs in tight sequence so that
goods will flow smoothly to customer.
Establish pull: In this, as the flow is introduced, let consumers pull value from next
upstream activity.
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Seek perfection: As value is identified, value streams is determined, unnecessary steps
are eliminated and pull and flow is introduced, initiate the process again & continue it until
perfection state is reached and perfect value is create with no waste.
TASK 2
Preparation of continuous improvement plan
Continuous improvement refers to an ongoing efforts to enhance products and processes.
It is a set of activities that are designed in order to bring regular improvements in products and
services by constant measurement, review and action (Gunasekaran and Ngai, 2012). This is a
process of utilizing data & feedback in order to make operations consistent & build quality of
goods over time. It assists in administering more satisfaction to consumers as well as their needs.
It also helps the managers of Heir in doing better planning so that productivity and profitability
of Heir can be increased. Continuous improvement is a constant process understanding the
interfaces among customers and Heir in better way.
Continuous Improvement Plan:
Provider
Date
Source Existing performance
level
Improvement in
strategies
Expected Outcome
Promotional
events
Because of lack of
marketing practices,
buyers of the Heir are
unable to purchase
television as information
related to product are not
getting by customers in
proper way (Lenfle and
Loch, 2010).
Heir should use
appropriate
promotional strategy
in order to promote
their products and sell
them in market.
Product is marketed in
such a way that it
attracts customer more
to buy.
By using effective
promotional strategies,
Heir is able to
communicate value
and benefits of their
product to customers in
effective way and
customers get more
information about their
large screen television.
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After sales services Heir is not providing
proper after sales
services to customers.
They do not give any
warranty on product.
Their service centres are
less in number due to
which customers face a
lot of difficulties (Mir
and Pinnington, 2014).
It is required by Heir
to open more service
centre stores in order
to increase reach of
customers. Feedback
should be taken from
customers so that
better services can be
provided to them.
Perception of all
individuals are
different. By
improving in strategies
and providing good
services, Heir is able to
get good response of
customers. It is also
assumed that it will
attracts customers
more towards brand.
Improvement plan and its effect:
From the above mentioned plan, it is observed that continuous improvement planning
proves to be an effective tool for Heir Group Corporation. As per the analysis, it is observed that
Heir needs to bring continuous improvement in their products and services in order to increase
their profitability and attract customers more towards brand. By implementation of innovative
and creative ideas, many shortcomings can be overcome by Heir. Administrators needs to use
various research methodologies in order to ensure better performance of product. By using
effective promotional tools, Heir can effectively promote their products in market and
communicate its value and benefits to customers. It must be ensured by the company to
administer better after sales services to customers so that, they are satisfied with the provided
services and a good image is created in minds of customers regarding brand (Pemsel and
Wiewiora, 2013).
Strategies for implementation of plan:
Continuous improvement planning process assists managers in making improvements in
goods and processes on regular basis. Feedbacks that are taken from customers also plays
important part in it. It assists the Heir in making improvements in products as per customer
needs. By offering high quality goods, Heir can increase loyalty of customers. By following
below defined activities, improvements can be applied by Heir.
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Good employment relation: It is important in Heir to have good relations among
employer and employee in order to ensure that operations are performed in better way. Good
employee relations encourage workforce to work in effective way. This will improve
performance of employees as well as increase efficiency of operations. It assists in providing
high quality goods to customers and increase their satisfaction.
Proper communication channel: Heirs should use effective communication channels at
workplace so that information can be conveyed in proper way. It will assists in developing
coordination among workforce and they work in more better manner. This facilitates in
increasing productivity and profitability of company.
Organisational theories and models:
Various theories and models are used by Heir in order to apply strategies in proper way.
Application of theories like classical, bureaucratic and scientific approaches will assists Heir in
performing their operations in better manner (Management Theories & Concepts at the
Workplace, 2018). These assists in increasing productivity of Heir as well as attaining targets of
Heir. Manager of Heir Group Corporation apply various theories and models for improving
production process of Heir and preparing effective plans and strategies that administers direction
to them for future course of action.
TASK 3
(a) A Business case
The Heir wants to launch large size television of 58 inches. For doing so, they need to
conduct research and make proper planning related to investment, marketing, production etc.
there are various sources that are available to introduce product in market. Among those, it is
required by company to select best method that increases the sales and revenues of company. For
introducing television in market, Heir needs to analyse market properly. For this, market research
is conducted so that trends can be analysed. It also assists in knowing about needs and
preferences of customers. After analysing market trends, product is developed that meet
requirement of customers and satisfy their demands. Before entering in large screen television
market, they must ensure that it has some unique features that attracts customers more
(Ramasesh and Browning, 2014). Product life cycle is an important marketing concept that
defines the stages of product from its development to obsolescence from market. It includes 4
stages:
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(B)Project Plan
Introduction stage: It is the initial step of product life cycle where product is introduced
in market for the very first time. Here, research and development department of Heir Group
Corporation conduct research for developing product and then introduced that into market. It is
the most expensive stage of product life cycle for Heir launching new product. As it is initial
phase, size of market is small, it means sales are less. In this stage, product is not much
purchased by buyers. At the same time, cost of various things like consumer testing, research and
development & marketing that is required to launch product in market is high especially when, if
the sector is competitive. Introduction of product in market is a necessary step for company.
There are various competitors of big size television are available in market. In this stage, sales of
product is low (Robichaud and Anantatmula, 2010). Effective policies are used by company in
order to convey information about product to customers. This will take around 3 to 4 weeks.
Growth stage: In this stage, sales of product is high and Heir experience strong growth
and profits in market as here company starts to get benefits of economies of scale. Because of
production in large quantity, profit margins of Heir will increase and this will increase overall
profit of business. This enables company to invest more in promotional activities in order to
maximise potential of this stage. At this stage, sales of Heir Group Corporation is increase as
they get benefits of large quantity production. Their profits margin increase and Heir starts to
invest much amount in promotional activities.
Maturity stage: During this stage, product is fully established and main aim of Heir
Group Corporation is to maintain their market share of large size television. At this time, many
competitors are enter into market so, Heir needs to invest their money wisely in marketing
activities they undertake (Söderlund, 2011). It is also required by company to consider any
improvement or modifications to product and production process which may provide them
competitive advantage in market over their competitors.
Decline stage: Under this stage, eventually, product market will initiate to shrink. This
could be because of market becoming saturated or due to switching of consumers to different
product. As this decrement may be inevitable, it might still be possible for Heir Group
Corporation to earn some profit by shifting to less expensive method of production and cheaper
markets.
(c)Work Break-down Structure(WBS)
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(D)Gantt Chart
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Illustration 1: Work Break-down Structure

In order to increase the sustainability of product in market, various strategies are
formulated by manager that assists them in maintaining good brand image (Subramanian and
Ramanathan 2012).
(E) Theoretical and Conceptual: Work Break-down structure and Gantt chart both are essential
and beneficial tool for the Heir in order to divide their all activities and functions to all
departments. It is also important for the company maximise their performance and productivity.
Along with them, Gantt chart is also main and useful method for the enterprise to identify time
duration of all activities.
TASK 4
(A) Effectiveness of product life cycle
Heir Group Corporation wants to enter in marketplace with their new product, that is
large screen television. The company has good image and manager needs to put efforts for
maintaining it. They plays important role in providing good products and services to customers.
Application of product life cycle is not easy. It is necessary to formulate various policies and
strategies that assist managers in taking future actions. This assists company in fulfilment of
major objectives and targets in effective and efficient manner (Turner, 2016). Market analysis
should be done in proper way so that plans can be implemented in appropriate manner. From the
above discussion, it is clear that business enterprise needs to adopt several changes according to
the needs and demands of customers. Their preferences are necessary to be considered by Heir in
order to satisfy and retain them (Gunasekaran and Ngai, 2012).
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(Source: Product Life Cycle, 2018)
Introduction stage: Product life cycle assists in successful execution of strategies
regarding product. When Heir Group Corporation entering in new market, it is important to first
analyse it. Many Heirs are available in market that deals in similar sector. So, it is not easy for
Heir to compete. This can only be attained if Heir administer high quality services at cheaper
rates. Managers also required to do proper planning so that chances of product failure becomes
less.
Growth Stage: After sales services is also an important factor on which management
needs to pay attention. This will facilitates in satisfying customers more. Heir needs to keep in
view policies of competitors so that better products can be provided to customers in less price.
Managers are required to formulate effective pricing policies as well as administer discounts to
them occasionally. This will increase sales of company and higher profits can be earned.
Maturity Stage: Product life cycle is essential for proper execution of plans and policies.
Leaders of Heir needs to administer right guidance to employees so that they get motivated and
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Illustration 2: Product Life Cycle