Operations and Project Management Report: Hotpoint Expansion Strategy

This report provides a critical review of operations and project management principles within the context of Hotpoint, a home appliance manufacturer. It examines the implementation of operational principles, including the principles of reality, organization, fundamental, accountability, and success. The report also analyzes the application of Six Sigma and Lean principles to enhance product quality, reduce costs, and improve delivery times. Furthermore, the report outlines a continuity improvement plan, detailing strategies to address issues related to product quality, cost, and delivery delays, with a focus on applying Six Sigma methodologies. The report also explores the product life cycle (PLC) stages and their effectiveness within the context of a project, offering supporting documentation and a critique of the PLC's application. The report concludes with a discussion of the findings and recommendations for Hotpoint to improve its operations and project management practices, ensuring customer satisfaction and business expansion.

Operations and Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Critical review regarding implementation of operations principle in organisation context3
TASK 2............................................................................................................................................8
P2 Continuity in improvement plan based on review and analysis........................................8
TASK 3............................................................................................................................................9
P3 Apply each stage of the PLC along with providing necessary supporting documentation for
the project...............................................................................................................................9
TASK 4..........................................................................................................................................14
P4 Review and critique the effectiveness of the PLC in application to the chosen project 14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Operation management is an branch of administration that gives its contribution in
continuous improvement in performance by offering best goods to their consumers. The main
purpose of operations management is to concern with converting materials and labour into goods
and services to enhance the profitability of an organization. On the other hand, project
management is the method of organizing all the activities of project. The main purpose of this
may range from new product development to a service launch (Operations and Project
Management. 2019). The chosen organisation is Hot point, which is an American and European
brand company. This is engaged in the process of manufacturing, marketing and selling of home
appliances. The main products of Hot-point are Fridges and Freezers, electric cars, gas and
electric cookers and washing machines. In present time, company is planning to enter into TV
sector, so that they can expand their business. The present report emphasizes on significance of
project management and operations with its principles, results of their application. Along with
this, importance of continuous improvement plan in business by find out their serious concerns
and their proper solution is also been discussed in the report.
TASK 1
P1 Critical review regarding implementation of operations principle in organisation context
The implementation of operations management firstly emphasizes on the process of
manufacturing and operation, which drives information and enables to develop and plan business
strategy. Every organisation management team is assigned with a specific task. There are some
principles which are described below, which should follow by the organisation in order to
achieve positive outcomes :
Operation Management Principles
1. Principle of Reality In this principle, operation manager has the
tendency to focus on the tool rather than the
problem, because no problem as permanent
solution but might be possible that any tool or

technique can provide a better solution (Artto,
Ahola and Vartiainen, 2016).
2. Principle of Organisation In this principle, all departments of any
organisation like Hot-point are interconnected,
so that their work can be organise in effective
way in order to achieve targeted goals. In this,
it is necessary for an organisation to perform
their business activities in an appropriate
manner, so that they can easily attain their
business goals and objectives.
3. Principle of Fundamental Everybody in the industry should stick to the
common key on which all the production is
based, and this make sure for the company to
have a great chance of success.
4. Principle of Accountability In this principle, the superiors or manager of
Hot-point organisation set rules and regulations
for its subordinates along with their
responsibilities.
5. Principle of Success Here in this principle, success means market is
volatile (Fleming and Koppelman, 2016). In
this principle the thing which satisfy the
demand and need of customers, that thing will
be consider as the up coming product of the
market. So the success is always define with
the need of customers.
Six Sigma

Six sigma is the set of tools and techniques for the process of improvement. Six sigma is
used to eliminate the defect and to reduce the cost of the company. The tools of six sigma is
beneficial in solving the operations, management and quality issues. Here are the tools of six
sigma which are mentioned below :
Define
In this stage of six sigma, the needs and
demands of customer are detailed in effective
way. In addition to this, in this stage Hotpoint
define the process and problems of customers
and than produce the new product according to
their demands (Gilbert and et. al., 2015).
Measure
In this stage, Hotpoint measure the current
performance of their organisation. This stage is
helpful in evaluating condition prevailing in

production process and overall improvement
that is done from the actual state.
Analyse
This stage of six sigma analyse the process for
issues and root causes that creates inefficiency
in production process. In context with Hot
point, it find out solution of emerging demands
of customers.
Improve
This stage determine the problems and
implement the actions for improvement in
order to get desirable outcomes (Harrison and
Lock, 2017). In context with Hot point, this
provide solution of their forthcoming demand
of consumers so that their customers become
loyal towards their organisation.
Control
This stage maintain the improved process and
develop a deep monitoring plan that is
compulsory for monitoring the performance by
evaluating all systems and processes. Hot point
measures the outcomes of new launched
product, to see whether it results are positive or
not.
Lean Principle
Lean principle is an approach of management that cut down the waste and ensure the best
quality of product. This can be applied in all aspects of business, from designing to producing the
product. This principle helps Hotpoint to create new and innovative ideas to improve the quality
of their production process (Kerzner and Kerzner, 2017). As according to the current scenario,
Hotpoint company wants to expand its business in television sector for this, they are bringing
their new product which is large television of 58 inch. Therefore, there are some principles

which will provide effective benefits in order to produce new product and launch the same in
attractive way.
Define value In this stage, this is to define that value of a
product is created by the producer but that
value is defined only by the customer. They are
the one who will pay money to buy a product,
so it is important for Hotpoint to understand the
value of the customer ion their product, as this
will help them to reduce their waste and
maintain their overall cost.
Map Value Stream This principle includes the flow of information
that is needed to produce a product without
wasting any resource. Map value system will
benefit in each and every stages of PLC to
achieve required targeted objectives (Kundu
and et. al., 2015). This principle helps Hotpoint
managers to monitor and evaluate all
procedure in relation to allocation of work to
staff, designing, proving suitable strategies and
manufacturing.
Create Flow In this overall physical process of fresh
manufacturing is done in effective manner.
This will benefit in decreasing negative issues
and obstacles that may arise in the process of
accomplishing operations and fulfil consumer
demand in appropriate manner.
Establish Pull This principle mainly follows the same exact
principle that is followed in just in time
approach. In this, all the services are provide to
customers according to their requirements and

demands. This process helps in providing
satisfaction to consumers within effective
period of time (Lam and Lai, 2015).
Pursue Perfection As, it is hard to produce all commodities of a
company in same order. Therefore, operation
managers of Hotpoint can take necessary
adoption of innovative technology in their
workplace to produce qualitative and
sustainable products.
Findings- From the above information it can be find out that there are several issues facing by
the Hotpoint related to quality and on the basis of quality cost of the offering is not suitable for
customers. Along with the issue of quality and cost there is one another problem also i.e.,
delivery of products are not on time.
TASK
P2 Continuity in improvement plan based on review and analysis.
Improvement goal Baseline performance Where want to be Metric
Quality Quality of product is
too low which not
satisfying customers in
appropriate manner.
In this situation,
Hotpoint have to
improve their
performance by
implementing Kaizen
theory in their
working. Aim of
implementing this
theory is enhance
quality of the Hotpoint
offering and there is
requirement of 1-2
Focus on product
quality by keeping in
mind customer needs
and wants.

month duration for it.
Cost Cost of product is high
as per the price of
products offering by
Hotpoint.
To improve the cost,
variance will be used
to decide the cost of
the TV along with
further improvements
in their existing
products (Nicholas and
Steyn, 2017). Hotpoint
should adopt six
sigma, as this
approach can enhance
their performance
level and also helps to
cut cost and get
desirable outcomes.
Along with this they
have to ensure that
material will utilise in
effective manner for
no waste so that cost
of product will reduce.
Company have to
analyse expenditure
and then decide cost of
product. Along with
this, try to minimise
wastage while doing
production.
Delivery There is delay in
delivery of product
which turn customers
satisfaction at low
level.
Hotpoint should apply
Six Sigma approach to
manage and control
the delivery and for
development of their
new launch product at
the greater and larger
stage. The stage of six
There is requirement
of development in
supply chain so that
product will deliver on
time. As well as they
will be able to satisfy
customers.

sigma involves define,
measure, analyse,
improvement and
control, which will
help Hotpoint to
transfer their product
effectively, from the
phase of manufacture
to delivery.
Effectiveness of continuous improvement plan : Hotpoint should take care about the
price and quality strategy of their new product television. The Six sigma approach aid Hotpoint
to make their launching product effective and efficient, this also helps to avoid damage and faults
from the TV products. This implementation of continuous improvement plan is done to known
the reviews of the customers, this will increase loyalty and faith among customers towards the
organisation. The following are activities through which improvement can be applied - Priority to employee's need – Hotpoint operation manager should consider the need and
demands of employees and also give priority to them to enhance the efficiency in the
organisation (Perry and et. al., 2018). To give priority to employees is necessary, as they
are only source of communication between customers and organisation.
 Good relationship of Employee-employer – They are those who decides the working
environment of the organisation. For the implementation of any strategy, the relation
between these both should be good so that the work should be done with coordination
and should complete in an effective manner.
Kaizen Theory: This theory is considered to be an effective approach for improving the
productivity of goods at continuous basis to fulfil the demands of consumer in target market.
When talking about Hot-point, the managers could plan strategies in manufacturing of quality
raw material, after which the workforce could accordingly produced products. The managers
should take in considerations, that product have to be matched with quality standard set to retain
potential buyers for the firm.

Re-engineering Theory: It is also known as business process re-engineering theory,
which is identified as turn point for any business who are gradually earning profit or facing loss
in specified industry. In context with Hot-point manager have to critically analyse target market
and plan strategies that would beneficial in raising demand of product by consumers. Also it is
helpful in operating as well as managing business activities in work culture, for generating more
revenues in competitive market.
TASK 3
P3 Apply each stage of the PLC along with providing necessary supporting documentation for
the project.
For introducing a new product in market, it very important for producers to send the
product from product life cycle. It include points from first time introduction of product to the
point of final stage. Project life cycle, is a combination of two terms, one is project and second is
life cycle. Project indicates to products and goods whcih refers to anything which is tangible in
nature like manufactured goods, auto mobile, furniture along with intangible services like,
transportation and other. Where as, life cycle is the change which product has to face in order to
survive in market. And the term cycle is known as cyclic. Project life cycle is a combination of
different terms like, raw material, production, utilization and disposal.
Let's suppose, Hotpoint is going to launch a refrigerator in the market. Since there are
several refrigerator available in market, therefore, company has to study the different sources of
advertisements, so that their product get famous in market. Understanding the needs and then
producing a right product is very important for organisation (Rosemann and vom Brocke, 2015).
New technology used by organisation to meet the requirements of customer will help them in
making their product popular in market. Along with this, Hotpoint also have to study the
products provided by their competitors and also have to gain knowledge about their products and
strategies, this help them in gaining idea what type of refrigerator they have to produce. There
are four stages in project life cycle, which are as follow :-
1. Initiation: It is the first stage of project life cycle, which shows the initiation of product.
It is the phase where the management identified the business needs, issues or
opportunities and brainstorm ways that the organisation's team can meet this need, solve
problems or size this opportunity. This stage is very important as other stages are

depended on this only. In this stage, all the management of the company decided and plan
related to project goals, develop a project charter and identifying its stakeholder. For
working on a project effectively, it is very important for Hotpoint to study the
requirements of customers carefully. As in this stage, the production and investment rate
is high and return rate is very low, therefore, it is very important for marketing manager
to understand this that this will take about 4 to 5 weeks in increasing the profit.
2. Planning : Planning phase determines the scope of the project as well as the objectives of
the project. It begins with the outputs of the initiation phase. Planning refers to the
process of establishing the procedure, policies and documentation for planning,
managing, executing and controlling the project schedule. This stage is where customers
start accepting and product and product start gaining some profit. It is the stage where
manager have to pay more attention in product, as it is the period when product use to
attract customers and gain profitability. Therefore, manager have to make strategies for
maximizing their profit at this stage.
3. Execution : It is the third stage, this phase turns the plan in to action. In this stage the
management of Hotpoint, creating task and organizing workflows and assigning general
aspects of the projects to the appropriate team members, making sure team members are
not worked. Briefing tea members on tasks, communicating with team members, clients
and upper management and monitoring quality of work. In This phase the management
also manage the budget and monitoring spending and keeping the project on tracks in
terms of assets and resources.
4. Closure: This is the last phase and in it, the management of Hotpoint analysing the
project performance that it easily achieved its objectives and aims. They also monitor the
performance of the employees that are effectively play their roles in their work which is
allotted by the project manger to them. If the performance of all are good and the work of
project are completed on time then it is beneficial for the development of the firm. If
there are any issue then the management conduct post implementation reviews.
Project methodologies : In this project, variable task is scope, cost and time are
constants. In this, the framework is adaptive to initiate the project for getting positive outcomes.
Therefore, during the execution of project, the scope needs to be adjusted in order to get the
maximum business value from the project.