Operations and Project Management: Haier Group Review Report

This report critically examines the implementation of operations management principles within the context of the Haier Group, a multinational consumer electronics and home appliances company. The report begins with an introduction to operations management, emphasizing its role in transforming resources into finished goods and its importance for continuous improvement and profitability. Task 1 provides a critical review of operations management principles, including organization, reality, fundamentals, success, accountability, variance, causality, managed passion, humility, and change, and how these apply to Haier. The report then delves into Six Sigma and Lean principles, outlining their methodologies and applications. Task 2 focuses on a continuous improvement plan based on the review, while Task 3 presents a business case relevant to Haier's operations. Task 4 evaluates the effectiveness of the Product Life Cycle (PLC) in project application. The report concludes with a summary of the findings and recommendations for Haier's operations and project management strategies.

Operations and Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
P1. Critical review regarding implementation of operations principle in organisation context. 3
TASK2.............................................................................................................................................8
P2 Continuous improvement plan based on the review.........................................................8
TASK3...........................................................................................................................................11
P3. Business case in relation to organisation context...........................................................11
TASK4...........................................................................................................................................14
P4. Effectiveness of PLC in application of project .............................................................14
CONCLUSION..............................................................................................................................16
REFRENCES.................................................................................................................................17

INTRODUCTION
Operation management plays an important role in overall working of business in order to
make continuous improvement and innovation in goods and services of business. It can be
described as process that deals with the activity of managing all the process that help in
transforming resources into finished goods. These activities are generally done in order to
increasing the profits of company (Burke ,2013). Under the whole process management team
need to framed such operational plans which allow them to conduct their whole task in optimum
manner which help in increasing profits and market share. The company which is taken under
this assignment is Haier Group which is top most multinational company dealing in consumer
electronics and home appliances which include air conditioner, refrigerators, washing machines
and water heaters and conduct their operations successfully and now planning to enter into the
large screen Television market and minimum size which they decide to produce is 58 inches.
Further it discuss about principle of operation management, improvement plans and review
regarding the effectiveness of PLC.
TASK1
P1. Critical review regarding implementation of operations principle in organisation context
Definition of operation management
Operation management can be described as process in which resources are utilised in order to
convert raw material into finished goods. Proper planning and strategies has been made so that
all the task are done effectively and it also assist in maintaining the ethical code of conduct and
further guidance to all the workforce so that goals of organisation can be accomplished properly.
Manager of Haier must take care of all the things in order to maintain harmony and mutual
relation among employees in their working operations (Chen and et. al. ,2011).
Operation management is very complex task in which systematic responsibilities and
duties are allocated to every workforces. It is vital for operational manager to interact effectively
with their team members so they ascertain all issues and problems faced by every individuals and
provide them direction in which they use their skills and capabilities at the time of performing
daily targets. Further distribute all the work in different according to their specialisation which
ensure good outcomes in future. There are different types of principles operation management
which are described below in aspect of Haier Group:-

 Organisation:- In every company there are different kinds of activities and task which
are interrelated with each other and help in accomplishing goals and targets. The main
advantage of this is to reduce cost and time. Therefore, Haier group must establish their
own organisational objectives on the basis of which they make plans and policies in
order to enhance profits and productivity. Mainly this principle indicate that various
activities perform for manufacture products are interrelate with each other and this
require to consider by the project manager of Haier Group. It is very essential that all
factors should be consistent so maximum profits can be generated by firm. Reality: - Operation management concentrate on the issues instead of using techniques
because it is wrong to believe on single solution as universal in each and every situations.
Hence it is vital for Haier company to use different tools and medium of solution instead
of relying on one particular methods. This principle of operation management reflect that
main focus of operations management should be on the problem not on the techniques
because there is no such tool which offer universal solution of the problem. Fundamentals: - under this Pare-to role has been applicable to all operations in which
80% of success is come from strict compliances in order to maintain decorum in all the
records and activities and left 20% is coming from applying new modern techniques in
process. Therefore, Haier management team must formulate legal legislation and
regulation in their organisation structure so they maintain peace and harmony. It is very
important for project manager of Haier Group to consider this principles during
development of policies and procedures related with project completion. With this,
company can attain its set objectives in given time. Success:- It is basically some good which enhance the growth of company that can be
changed according to external market conditions but always considered the interest of
customers. Therefore, it order to maintain it, all other principles must be revised
occasionally. So, at the time of launching big sized television they must carry out the
research programmes so they know about the opinion and viewpoint of target audiences
in order to gain success in market. What is considered as success by the firm changes
over the time. One important aspect of this is that for achieve success, organisation
should always consider the requirement of its customers. With this, Haier group can

attain all business objectives in time and at the same time can better satisfy the needsof
its customers. Accountability:- This principles states that managers are free to set their own rules and
metrics and then delegate the responsibility to their subordinates in order to accomplish
the daily task of organisation. Therefore, this is most creative way through which worker
put their efforts. Haier management group must divide all the division and department
according to the specialisation of workers that help in accomplishing the objectives in
effective manner. It is very important for manager of Haier to continuous monitor that set
goals are met or not. This is the only way through which employee’s contribution can be
maximised in growth of company. Variance:- All the processes coming in variance must be encouraged because if it
managed well then it will become the important source of creativity. Therefore Haier
group must encourage variance in their process and procedures for the emergence of
creative features in their products and services. (Clarke, 4Sight Tech Inc, 2012).
Variances reflect differences which increase ground of innovation and encourage
creativity at workplace. So it is very important for managers Haier to encourage
variances as this encourage creativity at workplace. Causality:- This principle state that problems are those initial symptoms which become
big issues if not sorted on proper time period. Therefore, Haier group must find the
relevant solution for problems so that it cannot arises in future. With development of
proper solution, company can execute its all other operations in better manner and can
provide better solutions to its target customers. Managed passion:- In order to running the business properly passion become the most
important drivers for growth and success of company and it is duty of manager to create
such things if not come naturally. Haier group manager must provide guidance to their
employees which create enthusiasm, creativity and passion to their working employee for
accomplishing task on time. Passion of employees is known as one of the most essential
factor of growth. Different tools are there which can be utilise by managers to make the
employees passionate about their job roles and about the work they perform at
workplace.

 Humility:- Under this principle instead of using costly trial and error process, managers
should acknowledge their limitations and then move on with effective methods. Haier
company must adopt effective methods and approaches for better solutions. Effective
plan should be formulate by managers in order to avoid risky trials. In this way, manager
can play safe and at the same time can encourage employees.
 Change:- In order to achieve all the goals and target of company effectively it is vital for
them to scan all the modification coming in environment which allow them in beating all
the challenges of external market that ensure higher level of satisfaction also. For
example due to advanced and digital innovation in television industry now Haier is
planning to come in large size television market although they are in that segment but not
get so much success from that products so they make alteration in order to gain
competitive advantage over competitors. Overall, managers of Haier should not stick
with some specific solutions, changes require to be accept on continuous basis in order to
sustain in competitive environment for long run.
Therefore, Haier group must consider all above principles of operation management must be
taken into consideration by Haier so that they can plan for strengthen product portfolio and use
these tools and techniques in order to motivate employees for fuller utilisation of resources, skills
and ability for enhancing the productivity and effectively of business.
SIX SIGMA
Six Sigma is very essential techniques used by manager of company at the time of
launching new products and services. Basically this method is used for the revitalisation and
improving quality of products and services. Further this technique is divided into two main
concepts I.e. DMAIC and DMADV. DMADV is adopted at that time when company wants to
create new and innovative in products and services and on the other hand DMAIC is utilised in
order to make improvements in their existing product line. Therefore, Haier must use DMADV
technique at the time of launching large screen television in market which stated below: - Define:- Under this step all the issues and problems are discussed and then further
planning is done according to it. Measure:- After knowing the real problem then used the relevant techniques at the time
of new launching of product which help in measuring the possibility of success in respect
of that product.

 Analyse:- different techniques and methods has been utilised in order to accomplished all
the goals and objectives of company. Design:- After analysing the main problem company choose the most effective method in
order to meet all the demand and wants of customers.
 Verify:- Under this stage the manger of Haier has to review regarding the products and
services given to customers. Through such feedback company know about all the good
and bad things in their goods and services and make necessary changes in their product
line through such testing.
Figure- DMAIC. Source- DMAIC,2018
LEAN PRINCIPLES
This principle is broadly classified into five steps which assist them in achieving the
organisational objectives. Following are the steps discussed below:- Define value:- It is vital to understand that what price customer is ready to pay for
products. Through research and observation from external market company easily fix the
price of products. Apart from this fix the market area in which they want to target for
good outcomes in future. Therefore, Haier group make advance planning regarding
fixation of prices in relation to big sized television according to the level and status of
target audiences

 Mapping value stream:- It is essential to observing all the demand of target audiences
and establish such framework that help in future. Whole procedures help in reducing the
wastage of resources. It is vital for Haier group to understand the market demand of
customers and design the particular model for it. Create flow:- Under this point all the wastage should be removed in order to create
proper flow of resources. This will help manager in analysing all the sources and method
effectively. Haier management team must utilised their resources in such manner that
leads to higher productivity and reduction of cost. Establish pull:- Under this point after finding out the best method company must
concentrate on all important activities of business. This will help in maintaining the stock
of raw materials and remove all the useless stock. It is important for Haier group to adopt
the best method in order to carry out all the operation of business.
 Pursue Perfection:- No company can carry all the task perfectly on regular basis so there
is always a chances of some improvement and perfection in overall activities of business.
Therefore, employees of Haier group must try to improve in their skills and abilities so
they provide better services to their customers.
(Source: Lean Principle, 2018)
Significance of Six sigma and Lean principles:-

Following are the points that define the importance of above principles in order to enhance the
operational efficiency of business :-
 Help in increasing the efficiency and effectiveness of business at the time of production
and operations functions.
 Most efficient method at the time of launching new product in market and make
improvement in existing product line.
 Assist in strengthen the product portfolio and increase the market share and productivity
of business.
Taylor's scientific theory
It is a motivation theory which is developed by F.W. Taylor. This theory of Scientific
management argued the following:
 Workers do not naturally enjoy work and so need close supervision and control so that
they can do their work properly.
 Managers should break down production into a series of small tasks so that the
employees and workers easily achieve their goals.
 Workers should then be given essential and appropriate training and tools so they can
work as efficiently as possible on one set task.
 Workers and employees are then paid according to the number of items they produce in a
given period of time-piece-rate pay.
 In the form of result, the workers are encouraged to work hard and maximize their
productivity.
This theory is important for the business of Haier because with the help of it, it can
motivate its employees and increased productivity levels and lower unit costs.
TASK2
P2 Continuous improvement plan based on the review
Continuous Improvement meaning:- It can be described as process which is executed by
organisation in order to know all the shortcoming of business in respect of their products and
services. Further on the basis of feedback all the changes and modification has been made by
company in order to revitalise and maintain the brand value of that products which help in
satisfying the needs of customers.
Continuous Improvement Plan

Date
Provider
Source Anticipated Outcome Current level of
performance
Improvement
Strategies
Promotional events Under this step Haier
marketing manager not
focus on marketing
promotional tools
which leads to lack of
awareness among
customers about
product.
Haier is basically
expertise in
electronics, fridges
and AC so it is very
hard to create trust
among customer
regarding their quality
standard in television
sector.
Company top level
planned to incur more
expenditures on
market promotional
tools like advertising,
social networking and
roadshows also.
After sales services Organisation is very
weak in providing
after sales services
according to costumer
perspectives.
Warranty period
provided by company
I.e. 8 moths is not
sufficient in large
equipments.
Under this step more
emphasis is given on
improvement in sales
services to all
customers that help in
enhancing brand
image and goodwill.
Designing In competitive market
the demand of TV is
seen high among
customers because
they want something
for entertainment
purposes so better and
innovative designing is
important for effective
Selecting the proper
designing method is
very crucial task in
which different
research and
investigation is
necessary for getting
different alternatives.
It is consider as critical
phase of association
and their products
come into teachnical
segment then they
need approximately 9
to 14 months for
proper redesigning and
framing of goods and

results. services.
Usability of continuous improvement and its effectiveness from organisation context
The plan which is discussed above consider most beneficial from Haier point of view.
Under this company planned to launch big television having large sized required to bring new
and creative innovation in the features of products that attract the target audiences. With the use
of digitalisation in electronic product give more satisfaction to costumers and also helpful in
improving the profitability of business(Cook and et. al. ,2011). Marketing department must
formulate that type of strategies in their working structure which allow them to get feedback
from all the people who visit that outlets so they their like and dislikes regarding goods and
services. Apart from it uses of promotional techniques like advertising, roadshows and exhibition
through which they easily aware general public about products.
Organisation must stress on providing best after sale services which increase the trust
and mutual understanding among customers. The policies related to after sale service can be
made after taking the opinion from public regarding all the facility they want in their products
in order to run the business operation effectively.
Strategies utilised for efficient implementation of continuous improvement plan
In order to maintain the continuous improvement in the product and services of
company manger need to adopt such type of measures and strategies that help in changing the
perception of customer regarding brands. Following are the strategies which discuss below:- Maintaining employee relation:- In order to running all the operation of business it is
vital for manager to maintain good relations with employees which allows them to take
effective communication with visiting customers. Effective communication:- Organisation must maintain good communication among
employees which further helpful in maintaining intellectual communication with
employees regarding who is accountable to communicate with whom. Satisfy employee needs:- In order to accomplish all the targets effectively manager need
to concern about all the needs and wants of employees so they work with full
enthusiasm.

 Appropriate guidance:- At the time when their will be critical changes in the
organisation structure so in order to implement it properly manager must give proper
guidance to their staff.
Organizational theories, concept and models
In every organisation strategies must be implemented properly when operational
manager uses different types of models and theories for effective result and decision making.
Further, different types style like autocratic, democratic, bureaucratic and classical approach
must be by organisation in order to set good code of conduct and ethical practices in working
operations of business. Management of Haier must establish certain model or approach in order
to carry out task properly.
TASK3
P3. Business case in relation to organisation context
Haier company is planning to launch large television having minimum size of 58' inches
and this require manager to incur more money, time and efforts in order to execute all the plans
properly. Their are different sources available in organisation but best one must be chosen. In
order to sustain in dynamic environment it is important for business to create some new and
innovative ideas in their goods and services which is very important in order to get success in
market (Corder , McLellan and Green ,2010). Apart from it research and development
department of organisation must start their research and collect the data of both primary and
secondary source so that the information about recent trends, demand and wants of customers
must be known. From the available data select the relevant one which enhance the growth of
business. Through market analysis cost of products, their features, durability and quality standard
can be discussed which allows better implementation of plans. Haier is planning to launch
biggest television in order to strengthen the product line of business. The execution of such plans
involves huge investment which can be possible through huge research. It is vital for business to
take into consideration all the policies, procedures of their rivalry in order to make their own
effective tactics in order to provide edge over competitors. Haier must establish such practices
which increase market share and profitability of business.
The term PLC stand for project life cycle which refers to the sequence of phases that a
project goes through from its initiation to its closure. This life cycle is usually broken down into
four phases such as initiation, planning, execution and closure. In Haier company, it is the

process of planning, organising, coordinating and controlling of a project effectively and
efficiently throughout its phases from planning through execution then completion. Due to
frequent changes in external environment company require to formulate such policies and
procedures which satisfy the requirement related to modification in environment. Continuous
improvement and value addition in existing product help the organisation in enhancing their
goodwill and brand image for better outcome in future.
(b)Project plan through Project Life Cycles Stages
The four phases of the project management life cycle are given as follows: Initiation: This is the first stage of project management plan in which a need, opportunity
or problem arise and company encourage employees to brainstorm ideas through which
company can satisfy its need. Haier Group wants to increase number of its profits and for
this company decided to launch a television of 58 inches. At this stage, it is very essential
that project manager should be able to sell the business leaders on intrinsic value of
project. It is very important for project manager to carry out a feasibility study as this
help in provide solution of various issues related with project. Further, identification of
project scope is also done under this step. Planning: After approval of project idea, project move to the next step which is known
as planning phase. In this project is break down into various small tasks for prepare a
schedule and develop teams to complete all activities. In this, Haier Group require to
develop a project for set the timeline for every task. Estimation of funds require for
project implementation is also done in this. In this Haier Group determine the various
sources through which it can collect funds for introduce its 58 inches’ television in
market. Execution: This is the time to get to work, in this all the plan turns into action. Main
responsibility of project manager remains to ensure that all the work is on track and for
this he organise members of team, manage timelines and make sure that all activities
implement as per the set plan. It is essential for project manager of Haier Group to
organise workflows and create tasks. Every member involve in execution of project
should be aware about their roles and responsibilities as this ensure optimum utilisation
of available resources and at the same time help in attain set objective of project.

 Closure: Completion of all activities by team members leads to the closure phase. This is
the stage in which Haier Group can examine the success of its project. In this stage,
project management manager analyses the performance of project and also examine the
performance of team members in order to ascertain the quality of work. Further, manager
also conduct post implementation review in order to determine the areas of improvements
to get better results.
(c) Work down structure for new product:-
It is basically related to project management and system engineering. Under this
structure whole work of organisation is divided into different department and division in which
work allotted to individuals according to their specialisation. This is systematic hierarchy of
work which is executed by manager.
(d) Gantt chart:-
It is consider as type of bar chart that define the whole project schedule. Under this chart
the task which are performed shown in vertical axis and time intervals on horizontal axis and this
become the best task at the time of executing any project in effective manner.

TASK4
P4. Effectiveness of PLC in application of project
 Effectiveness of PLC
Haier company in order to enter into new market segment with new product “58 inches”
television so it need to maintain the good brand image in market in order to increase market
share and profitability. Most important role of manager is to develop the skill and capability of
employees in order to provide best services through its new product “56 inches” television to the
customers. Employee are the important asset of business so systematic arrangement of training
and development programmes must be their in order to develop professionalism at the time of
interacting with target audiences.
Proper framework in respect of PLC procedures must be their through advance planning
in business sector (Cruz and Marques ,2011). In Haier company, Leaders and mangers both need

to maintain coordination at the time of performing different task and activities of business. The
main objective of overall research is to know all the innovative changes and digitalisation
introduced by rivalry in their product line so on the basis of such observation company make
modification in their corporate culture that help in analysing the changing demand of customers.
 Quality, scope and tenure
In Haier company, Strategies adopted under PLC are vital for overall success of business
and the best way of launching new product “58 inches” TV in market through different research
and observations. Haier at the time planned to launch big “58 inches” television in market then in
such case marketing team need to analyse the chances of success through PLC in such huge
competitive world and helpful in maintaining the quality standards of products and services and
deliver goods at stated time period.
 Cost saving techniques
Further, Haier company need to effectively utilise all the resources available for business
that reduce the cost and increase the productivity of operations. Manage all the stock of
inventory, and maintain logistic management in order to deliver the goods to customer at proper
time period.
 Implementation of PLC
In Haier company, Effective techniques must be used at the implementing any project
like total quality management, Management information system and many more mechanism
which ensure the good results. At the time of executing any project company implement PLC in
which manager has to consider both the theoretical and practical aspect of work in order to
accomplish the mission and objectives of business (Fleming and Koppelman , 2016).
 Theories, concepts and models
Haier company must adopt proper models, concept and theories in their working structure
which allow them to gain effectiveness in overall performance and ensure proper delegation of
authority and responsibilities among employees according to their specialisation which leads to
accomplishment of daily targets in appropriate manner.
 Practical and theoretical framework:-
Haier company also ensure that practical implementation of all theories and concept must
be their so that whatever the projects they are planning must be properly executed order to get
better outcomes from such procedures and programmes.

CONCLUSION
It has been concluded from the above assignment that manger is consider as important
member of company who is responsible in managing operations of business. At the time when
organisation wants to launch any new product in the market then in such condition they used
PLC techniques in order to strengthen the product line of business. Operational management is
that department handled by strategic members so Haier manager must understand all the roles
and responsibilities in order to carrying out the work properly. This will help in achieving
organisation objectives and helpful in removing all the negative things through adopting best
alternatives.