University Assignment: Operations and Project Management for Hotpoint

This report provides a comprehensive analysis of Hotpoint's operations and project management strategies. It begins by evaluating relevant theories and concepts, including Six Sigma methodology and lean principles, and their application to process improvement. The report then assesses the eff...Read More

Operations and Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Evaluating appropriate theories and concept six sigma methodology and lean principles....3
TASK 2............................................................................................................................................6
Preparing and analysing effectiveness of continuous improvement plan by using principles of
operations management..........................................................................................................6
TASK 3............................................................................................................................................8
Critically evaluating stages of product life cycle (PLC) and preparing necessary supporting
documentation along with project methodologies, tools and leadership within PLC............8
TASK 4..........................................................................................................................................13
Analysing use of appropriate theories, concept and models in PLC and differentiating among
small and large scale projects...............................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Operation management is concerned with administration of entity practices for creating
highest range of efficiency within organisation. It is process for transferring materials into labour
into products and services in efficient manner for maximizing profits of enterprise (Alias and et.
al., 2014). It is area of management which focus on designing, production, redesigning and
controlling of organisation operations for manufacturing services and goods. The given
assignment is based on Hot point which was founded in 1911 at United Kingdom. It is European
and American brand of home appliances which deals in washing machines, refrigerators,
cookers, dishwashers, tumble dryers. As per scenario given in report, Hot point is planning to
launch new television of 58 inch in market for expanding television sector. The assignment
covers theories and concepts of six sigma methodology and lean principles along with
continuous improvement plan with help of principles of operations management. It has also
covered product life cycle using tools, methodologies and leadership and differentiating between
small and large scale projects.
TASK 1
Evaluating appropriate theories and concept six sigma methodology and lean principles
There are various theories and concepts for operation management in order to work
effectively and efficiently. This helps in achieving goals and objectives of business. Six sigma
methodology and lean principles are described below:
Six Sigma Methodology
It is tools, techniques and methodology used for process improvement introduced by Bill
Smith working in Motorola. Six sigma is regarded as statistical tools focusing on eliminating
defects and reduction of process variability (Beringer, Jonas and Kock, 2013). The process
includes improvement, measurement and validation activities. This can improve process quality
by using DMAIC model which si described below:
Define- In this step, the project plan is summarised for better understanding. It focuses on
defining problems, identifying consumers, requirement and goal of process improvement. The
identification of six sigma projects opportunity is identified along with using high level map. Hot
point need to identify need and want of consumers and after that product should be launched into

market. It consider various elements before defining products such as business case, problem and
goal statement, scope of project, time plan, estimated benefits, team and their responsibilities.
Measure- In this stage, main objective is to collect data as per scope of project. It focus
on identifying parameters which needs to be quantified, collecting data, ways for measuring
them and techniques for carrying out measurement (Binder, 2016). Hot Point need to focus on
various measurement techniques for collecting accurate data and information. It can tools like
benchmarking, process capability, gage R& R, run charts and process flowcharts and
measurement techniques such as process sigma and Defects Per Million Opportunities (DPMO).
Analyse- In this stage, main root cause should be found for business inefficiency. It
identify gap among actual and performance of goal which determine cause and opportunities for
improvement. The causes can be validated and verified with statistical and hypothesis tool. Such
step require care for identifying and verifying root cause. Hot point need to analyse and find
solution for meeting demand of customers. It can use tools such as Fish-borne diagram,
hypothesis testing, scatter plot, time series.
Improve- This stage improve process through determining solutions for implementing
and testing. Here, owner of process are consulted and suggestions are given for improvement
plan. Such plan is designed for mitigating risk and including feedback and satisfaction of
consumers. Hot point take feedback from their customer for improving and uses tools such as
brainstorming, prototyping, piloting for eliminating risk.
Control- The objective of such stage is to generate solution for monitoring plan. It is
validating and defining monitoring system, developing procedures and standards,
communication to business, verifying benefits and ensuring profits growths. If any modification,
correction are required then it should be done. Hot point control each and every activities and
provide training for new challenges to all stakeholders. They can use tools like cost saving
calculations, control plan, control charts, process sigma calculations.
Lean Production/Manufacturing
Lean Production or lean manufacturing is methods for minimizing waste within system
without productivity scarifying. This can be applied to all organisation for cutting out waste and
ensuring quality (Elimam and Dodin, 2013). There are five principles of lean production which
are given below:

Define Value- It means defining customer's needs for particular goods and services.
Through this principle, Hot Point can easily identify their consumers need and demand. With
analysing demand, it is planning to launch 58 inches TV in market for their individual.
Map Value Stream- It means manufacturing of product from raw materials to finished
goods for their customers (Fenn and et. al., 2012). This is process which identifies all actions
taken for product or service which include design, HR, production, delivery. Hot point identifies
each and every raw materials for final production according to customer requirement.
Create Flow- This process assist in eliminating wastage of resources in order to run
smooth functioning of each and every activities without obstacles. In context of Hot point, it has
broke down every activities in different parts, reinforcement and levelling of work in order to get
proper outcomes.
Establish Pull- The pull based system limit work in process (WIP) and inventory while
analysing requisite of information and materials for smooth flow of activities. It uses concept of
just in time delivery and ensuring manufacturing where products are made for time delivery. Hot
Point can use principles in order to satisfy need and demand of customers.
Pursue Perfection- This is the most important principles of lean manufacturing. It helps
for making continuous process improvement and lean thinking for organisational culture
(Harrison and Lock, 2017). It is duty of employees to move towards perfection while delivering
goods and service to their consumers. Hot Point can adopt various strategies for improving their
product procedure for getting desirable outcomes.
Principles of Operation Management
There are some principles which are described under operation management which are
described below:
Principles of Organisation- The manufacturing process are interconnected to each other.
In order to achieve profits, all elements should be consistent and predictable in Hot point.
Principles of Reality- It is very important for Hot Point to focus on problem rather than
techniques. There are many tool presented but it is not compulsory that they can provide accurate
solution to problems.
Principles of Accountability- The manager of Hot Point need to set rules, metrics and
define various responsibilities to subordinates and checking on regular basis for goal
achievement.

Principles of Fundamentals- According to this principles, the organisation get 805
success through maintaining disciplines, records and 20% through applying updated techniques
for production and process.
Principles of Causality- It is very important for Hot Point to find cause of problems and
try best to solve it other it can occur again and again.
Principles of Variance- All variance occurred in Hot Point need to encouraged so that
proper management can be done along with creativity.
TASK 2
Preparing and analysing effectiveness of continuous improvement plan by using principles of
operations management
Continuous Improvement Plan
It is collection of activities which is designed for bringing gradual and ongoing
improvement for services, products, process through which constant review, measurement and
actions are taken (Jerbrant, 2013). This can be made through model which consists of four step
such as plan-do-review-outcome which is also known as Shewhart or Deming Cycle. It is
explained below:
Issues Plan Do Review Outcome
Quality There are many
organisation
which face
problem of
quality for their
products. This
leads in
hindering self
interest of
manager and
stakeholders.
For improving
quality of
goods and
services, Hot
Point can use
lean
manufacturing
for production
so that quality
can be up to the
level.
In this step,
checking or
evaluation is
done for applied
methodology for
improving
quality.
As it is significant
characteristics for
organisational progress which
helps in improving production
by adopting lean
manufacturing. Hot Point can
improve their overall
performance.
Cost It is the most
important
In order to
reduce cost for
With application
of six sigma, Hot
Six sigma helps in increasing
performance level which

factors which
affect
purchasing
power of
consumers.
getting
desirable
results, they can
use six sigma.
Point can reduce
cost of
production.
contribute in cost cutting and
delivering best quality
products. Here, Hot point can
adopt pricing strategy for price
reduction and giving their best
for cost effective of products to
customers.
Delivery Delivery is the
process in
which products
are delivered at
given place and
time which
helps in gaining
effective
outcomes.
For quick and
fast delivery,
change
principles can
be used for
effective results
that can be
applied for
various solution
to single
problems.
Through
adoption of this
principles,
delivery of
product can be
done easily
within stipulated
time.
In order to delivery products at
right time to potential
consumers should adopt change
principle that describe about
single solution for many
problems. If Hot Point faces
such issued for delivery than
they can adopt change principle
for getting solution to
problems.
Safety While
organisation is
launching any
new product in
market, it can
faces issues of
safety.
In order to
solve safety
issues,
organisation
can use
Humility
principles.
By adopting
humility
principles, Hot
Point can solve
issue of safety
for better results.
When any new product is
launch in market, organisation
has to face many problems
related with consumers, market
which can be solved by
adopting humility principles for
adopting such environment. As
Hot Point is launching new TV
of 58 inches in market which
need to adopt that principles for
proper guidelines in order to
avoid problems.

Effectiveness of the Continuous Improvement Plan
Continuous improvement strategy is regarded as process or policy at workplace which
helps in keeping focus on improving all activities on regular basis. It can be done through regular
incremental improvement and achieving large procedure improvements. This leads in producing
products and services in better and effective manner by reduction of cost. Hot Point should adopt
various measures, theories and practices for production improvement. The main aim of Hot Point
is to launch 58 TV in market by adopting various principles and strategy of improvement plans.
Proper data and information should be collected on basis of results so that effective decision can
be taken. Lean production and six sigma can be used for better quality manufacturing and cost
reduction for achieving goal and objective with better outcomes.
TASK 3
Critically evaluating stages of product life cycle (PLC) and preparing necessary supporting
documentation along with project methodologies, tools and leadership within PLC
When new product is launched in market, it has to go through various stages of product
life cycle such as introduction, growth, maturity and decline. Such impact both marketing mix
and marketing strategy of organisation (Krajewski, Ritzman and Malhotra, 2013). Hot Point is
expanding its new product line by launching 58 inch television in market. In order to run
successfully, various strategy should be implemented for attracting large number of customers.
In order to implement project successfully, organisation should build product life cycle and
estimated cost is £200.
Product Life Cycle
The life cycle for new product is described below:
Introduction Stage- It is first stage where product is introduced first time in market. This
step focus on building awareness in mind of customer for products which has impact on
marketing mix such as product, price, place and promotion (Mir and Pinnington, 2014). The
organisation first analyse need and demand of consumer and accordingly manufacture goods and
services. Hot Point is launching new TV of 58 inches in market by analysing their consumer
need and demand. According to research it takes 5-6 weeks for launching new products in

market. The autocratic leadership is used in this stage where leaders and manager have control
over their staff and can influence performance and behaviour for work.
Growth Stage- It is the second stage of life cycle where product is present in market.
This step focuses on building brand awareness for creating loyalty of consumers in order to
increase market share. This takes 3-4 weeks for getting growth of product in market. Consumers
are satisfied and buying such products again and again. Competitors can easily overflow market
with their attractive and appealing inventions. Democratic leadership style is adopted for growth
stage as leaders can easily consult with their employees before taking any decisions.
Maturity Stage- It is third stage of product cycle which focus on competing with same
or substitute products (Pemsel and Wiewiora, 2013.). As there are many competitors of Hot
Point so it need to cut prices for products and doing promotions of new goods. The sales of
goods and services is at highest peak where organisation has opportunity to earn maximum
profits and increase market share. Such step requires 15-20 days for getting effective results for
attaining desirable results. Situational style of leadership has been adopted and fitted according
to given condition and situation.
Decline Stage- It is last stage of product life cycle where organisation has two options for
maintaining their products in market either through adding innovative features in it or
discontinuing product line (Swink and et. al., 2017). At some point of time, each and every
existing product decline and decrease their value from market. This helps in providing
suggestions which enhances productivity while launching product. For this stage, Hot Point has
adopted servant leadership styles which helps in enhancing productivity.
Business Case
There are various stages for business case which are described below:
Executive Summary- Hot Point is planning to launch new product that is 58 TV in
market with analysis of consumer taste and preferences and collecting data and information
properly. It is important to analyse resources, cost and other for acquiring better outcomes.
Goal- The goal of Hot Point is to increase market share by expanding it product line and
satisfying consumer need and demand.
Cost- It is an significant factors which describe cost for project which is £250.

Benefits- Through this project, line extension can be done and satisfying consumer need,
demand for maximizing profits. As each and every stages can be evaluated effectively and
efficiently.
Execution Time- The execution take more time as various aspects need to be analysed
effectively and efficiently (Todorović and et. al., 2015). It is estimated that result can be
achieved within 1 years of execution.
Project Plan
There are different factors which need to be considered for project plan which are
described below:
Cost- It is the most important factors while judging feasibility of project through
observation of many factors such as resource, material price and risk. Here, cost estimated is
£2,00,000 for project plan.
Scope- The scope of project is enlarging market share by maximizing profits in effective
way. This helps in completing product line and satisfying need and demand of consumers in
various way.
Resources- In order to launch new product in competitive market organisation should
have effective manpower and required resources for delivering products in desirable manner.
Risk- There are various types of risk and challenges which organisation need to face
while launching new product in market. Due to wrong decision, criteria set cannot be achieved.
Gantt Chart
It is horizontal bar chart that correspond time span for completing specified work and
assist in scheduling and planning activities so that each and every task can be distributed in
appropriate manner for accomplishment of goals and objectives (Too and Weaver, 2014). Hot
Point can bifurcate activities into different parts for achieving results.

Work Breakdown Structure
Work breakdown structure divided work into smaller parts for helping organisation and
team for goal achievement (Turkulainen and et. al., 2013). Hot Point also prepare WBS to
complete each and every task within given time period.

TASK 4
Analysing use of appropriate theories, concept and models in PLC and differentiating among
small and large scale projects
Illustration 1: SDLC - Waterfall Model
(Source: SDLC – waterfall model 2019)
Product life cycle is very important for organisation as it helps in growth and provide
guidelines for measuring ratio (Verzuh, 2015). As it assist scenario of each and every steps for
new product launching in market.
Waterfall Model
The goals and objectives can be attained through helps of Waterfall model which is
described below:
Requirement, gathering and analysis- As per requirement of organisation, all data and
informations are gathered and analyses (Turkulainen and et. al., 2015). Hot Point uses walk
through and brain storming for collection of data and information. For launching new product, it
has collected various information and improved performance accordingly.
System Design- The collected data should be designed properly for result achievement.
Hot Point should collect software and hardware for designing goods and services and updating
documents according to requirement.
Implementation- The right product should be delivered to right market. As Hot Point
need to test product quality before launching it in market so that better outcome can be achieved.

Integration and Testing- In this stage, testing is done in order to ensure about quality
which is up to the standard or not. This helps in grabbing attention of consumer as integration
and testing is already done.
Deployment of Systems- In this stage of Waterfall Model, it access PLC effectiveness
while launching new product in market. It need to give attributed for PLC in introducing TV into
market.
Maintenance- Hot Point need to evaluate problems and focus on solving each and every
issue arise in production process. This eradicate problems in order to achieve better outcomes.
Thus it is concluded that PLC is important for advancement and development of
organisation. Here, large and small scale both entity uses various business projects. In large
scale, it use various leadership styles such as democratic and autocratic. Autocratic leadership
style is important as each and every task can be controlled by manager for increasing efficiency.
Similarly, democratic style take input from subordinates and final decisions are taken
accordingly for achieving effective results (Zangiski and et. al., 2013).
Small business projects use situational and servant leadership style for effective outcome.
In situational leadership, it should adopt styles which is suitable as per various situation. Servant
leadership focus on needs and wants of consumers in order to give their best in development and
enhancement of enterprise. Large projects need high investment and long time period whereas
small projects requires less budget and less time.
CONCLUSION
From above report it can be concluded that operation management is important in
attribute of organising, planning and controlling work which aid in reduction of errors and
increasing productivity. Six sigma and lean principles helps in maintaining quality and reducing
cost. Continuous improvement plan helps in improving on regular basis for goal achievement.
The principles and theories helps in gaining organisation results and satisfy consumers by
finding out solutions to problems. PLC helps in knowing about each and every stage of new
product development.

REFERENCES
Books and Journals
Alias, Z. and et. al., 2014. Determining critical success factors of project management practice: A
conceptual framework. Procedia-Social and Behavioral Sciences. 153. pp.61-69.
Beringer, C., Jonas, D. and Kock, A., 2013. Behavior of internal stakeholders in project portfolio
management and its impact on success. International Journal of Project Management.
31(6). pp.830-846.
Binder, J., 2016. Global project management: communication, collaboration and management
across borders. Routledge.
Elimam, A. A. and Dodin, B., 2013. Project scheduling in optimizing integrated supply chain
operations. European Journal of Operational Research. 224(3). pp.530-541.
Fenn, B. and et. al., 2012. An evaluation of an operations research project to reduce childhood
stunting in a food-insecure area in Ethiopia. Public health nutrition. 15(9). pp.1746-
1754.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Jerbrant, A., 2013. Organising project-based companies: Management, control and execution of
project-based industrial operations. International Journal of Managing Projects in
Business. 6(2). pp.365-378.
Krajewski, L. J., Ritzman, L. P. and Malhotra, M. K., 2013. Operations management. Pearson,.
Mir, F. A. and Pinnington, A. H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management. 32(2). pp.202-217.
Pemsel, S. and Wiewiora, A., 2013. Project management office a knowledge broker in project-
based organisations. International Journal of Project Management. 31(1). pp.31-42.
Swink, M. and et. al., 2017. Managing operations across the supply chain. New York, NY:
McGraw-Hill Education.
Todorović, M. L. and et. al., 2015. Project success analysis framework: A knowledge-based
approach in project management. International Journal of Project Management. 33(4).
pp.772-783.
Too, E. G. and Weaver, P., 2014. The management of project management: A conceptual
framework for project governance. International Journal of Project Management. 32(8).
pp.1382-1394.
Turkulainen, V. and et. al., 2013. Organizing in the context of global project-based firm—The
case of sales–operations interface. Industrial Marketing Management. 42(2). pp.223-
233.
Turkulainen, V. and et. al., 2015. Managing project-to-project and project-to-organization
interfaces in programs: Organizational integration in a global operations expansion
program. International Journal of Project Management. 33(4). pp.816-827.
Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.
Zangiski, M. A. D. S. G. and et. al., 2013. Organizational competence building and development:
Contributions to operations management. International Journal of Production
Economics. 144(1). pp.76-89.

Online
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