Operations and Project Management Report: Hotpoint - Project Analysis

This report delves into the application of operations and project management principles within Hotpoint, a home appliance company. It begins with a review of operations management principles, including Six Sigma and Lean methodologies, and their implementation to reduce production costs and enhance product quality. The report then constructs a continuous improvement plan for Hotpoint, focusing on areas like promotional events, after-sales services, and coordination to boost productivity and customer satisfaction. Furthermore, it outlines the stages of the project life cycle, including the business case, project plan, and work breakdown structure, with supporting documentation. The report also evaluates the effectiveness of the project life cycle using relevant theories, concepts, and models, such as the Kaizen model, to eliminate waste and improve efficiency. Overall, the analysis provides a comprehensive overview of how Hotpoint can optimize its operations and project management strategies to achieve its business objectives.

Operations and Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Review and implementation of operations management principles in Hotpoint .............1
TASK 2............................................................................................................................................3
P2 Prepare a continuous improvement plan based on review of operations management
principles................................................................................................................................3
TASK 3............................................................................................................................................6
P3 Stages of PLC to given project for necessary supporting documentation.........................6
TASK 4..........................................................................................................................................10
P4 Effectiveness of the PLC by using appropriate theories, concepts and models.............10
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Operations and project management refers to utilise effective principles for managing
overall operational activities or procedures for particular project in proper manner. It will
facilitate to gain desired outcomes of specific target in organisation with help of appropriate
strategies (Caniëls and Bakens, 2012). However, different organisations implementing various
techniques or practices for managing their operations as per suitability of particular project in
order complete it successfully. The present report is based on Hotpoint which deals in home
appliances and provides effective products to customer in respect of completing their actual
requirements. It provide several products such as fridges, freezers, gas, electric cookers, washing
machines, electric fairs and many more. This assignment will focus on review and
implementation of operations management principles along with preparing continuous
improvement plan. It will also include stages of project life cycle including business case, project
plan and work break down structure. The effectiveness of PLC for selected project through
desired theories or models is given below.
TASK 1
P1 Review and implementation of operations management principles in Hotpoint
Operations management can be described as an area of management concerned with
overseeing, designing and controlling overall procedures of production along with redesigning
business operations in manufacturing or products or services. It involves various kinds of
operational activities which are carried out by employees together to produce desired
productivity in order to complete targets in proper manner (Fenn and et. al., 2012). In context of
Hotpoint company, they can implement several effective as well as efficient strategies or
principles to reduce overall production cost which facilitate to boost up profit margin of business
appropriately. Moreover, there are several principles which are helpful in managing operations in
proper manner through achieving desired outcomes and reducing wastage of resources properly.
Hotpoint wants to enter into large screen television market and minimum size would be 58
inches. These principles which are beneficial for operations management at Hotpoint are as
follow:
Six sigma
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This can be explained as disciplined, data driven approach and method which provide
support to remove threats of any operational activity from manufacturing to transactional while
producing product or service. In case of Hotpoint, they are required to implement the technique
of six sigma that helps to eliminate defect of operations which result into appropriate production
of goods. However, it will provide support to improve quality of product on order to fulfil actual
desires of people in proper manner along with attaining their satisfaction. The methodology of
six sigma can be explained with DMAIC step which is given below:
Define – The initial step of the given principle in which required system for utilise is
determine and needs of customers are analysed along with specified the desired goals of
particular project (Fleming and Koppelman, 2016). It is helpful to conduct operations through
correct techniques and put efforts in right direction which results into achievement of client
satisfaction properly.
Measure -The different aspect required to measure performance of company. Each and
every process is measured very efficiently and effectively. It helps in knowing the current
scenario going at Hotpoint. It focus on both process and customer needs.
Analyse -The factors creating problems are analysed and determine each and every
elements. This stage create hypothesis for problem exist and working to improve. Here,
verification requires process and data analysis before implementing solutions.
Improve -When team identifies actual root of problem then it work for improving it. This
phase is where team brainstorms solutions, implement, process change, collect information and
improve. It also lead to innovation and elegant solutions which helps for improving baseline and
customer experience.
Control -Here, after performing all above step, it focus on monitoring on continue basis
for success of updated process and developing performance. The proper care is taken to execute
activity for better and systematic manner.
Effectiveness of Six Sigma Principle
Six sigma principles helps in improving delivery system of business by focusing on
major and minor components. This assist in overcoming problems which holds most for
potential damage.
Lean principles
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Lean was developed by Toyota for eliminating waste and inefficiency for manufacturing
operations. The lean enterprise institute founded by Daniel T. Jones and James P. Womack in
1997. According to them, there are five principle of lean which is described below:
Value- It is determined by need and want of customer for particular product. As hotpoint
wants to launch television of 58 inch for customer. For example, value include price, timeline
and delivery for manufacturing (Gunasekaran and Ngai, 2012).
Value Stream- The step which involved taking specific product from raw material to
final finished product. It include design, delivery, production, HR, procurement, customer
service. It is process re- engineering and understanding entire business operation. Hotpoint need
to consider all such elements.
Flow- It comes after removing wastage process and focusing on smooth flow of
production without interruptions and complications. By help of this step, Hotpoint can easily
perform operations of manufacturing goods effectively. Example increase in productivity and
efficiency and improvement (Harrison and Lock, 2017).
Pull- This means delivering products as per need and demand of customers as just in time
manufacturing or delivery. It means consumer can get products when required. Here, goods are
not built in advance.
Perfection- It is the last stage of lean principle in which organisation need to seek for
improvement for meaningful changes which could provide benefits to customer as well as firm.
Therefore, it mainly focus on adding value for products which fulfil consumer need.
Effectiveness of Lean Principle
This principles is effective in reducing cost, increasing productivity, eliminate
wasting, maintaining high quality levels and assist in increasing profits.
TASK 2
P2 Prepare a continuous improvement plan based on review of operations management
principles
Continuous Improvement
Continuous improvement is the way for identifying opportunities for reducing waste and
ongoing efforts to improve processes, products and services. It helps in focusing on increasing
efficiency and effectiveness of firm for fulfilling policy and objectives (Hornstein, 2015).
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Hotpoint can apply continuous improvement for improving and meeting need and demand of
customer. It also assist in improving productivity, quality of products. In order to measure this,
the plan has made for fast achievement.
CONTINUOUS IMPROVEMENT PLAN
Provider
Date
Source Anticipated Outcome Recent performance
level
Improvement in
strategies
Promotional Events Lack of promotional
events of finance and
technology Hotpoint,
has not reach
maximum people
As hotpoint has
developed some
marketing practices in
terms of customers but
those does not provide
relevant information
about product.
In order to survive in
competitive market,
Hotpoint have to use
marketing practices
and promotional
activities to attract
large number of
customers.
After Sales Services Customer has
perception that after
selling of goods and
service, they get sales
services but company
does not focus on their
queries and issues.
Customer want long
time warranty period
and service increment .
Hotpoint need to
establish service centre
and customer care
centre for solving
doubt and issues of
customer. It also assist
in taking feedback and
making appropriate
strategy.
Coordination Lack of coordination
between employer,
Hotpoint need to
establish coordination
In order to executed
activities efficiently
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employees and manger
results in declining
productivity, sales and
profits.
with their staff for
performing better.
and effectively
Hotpoint need to
conduct meeting on
regular basis.
Continuous improvement plan and its effect
With the help of factors Hotpoint can execute plan in a better manner. The firm need to
develop and formulate innovative ideas from other competitors. The manager can conduct
research work for enhancing performance of company. Similarly, Hotpoint can execute
promotional activities for betterment of firm (Jacobs, Chase and Lummus, 2014). Therefore, by
help of continuous improvement plan firm can make better products and service which increase
brand image and goodwill.
Effective strategies for implementation of continuous improvement plan
This process is managed by managers in a company and taking feedback from
consumers. It is beneficial for every company which increase loyalty among customers. The
following are activities which can be used by Hotpoint for improving themselves:
Proper guidance and direction- The manager should provide proper guidance and
direction to employees for doing work in stipulated time. It assist in achieving goal and
objectives of firm. Thus, it enhance efficiency to perform effectively. The guidance and direction
should be very clear to person who is carrying out given task. It helps in knowing about work to
be done with effectiveness.
Good employer employee relationship- The company should maintain good relationship
with their employee and employer in order to achieve objectives. This helps in motivating staff
for performing work. It also create mutual understanding among worker and produced best result
(Kerzner and Kerzner, 2017). Hotpoint should have effective relationship with their employees
so that they can work more effectively.
Proper communication channel- There should be proper communication channel in
Hotpoint between employer and employees. With proper effective channel of communication
one can work effectively and efficiently. Thus, it help in achieving goal for organisation.
Hotpoint need to communicate with each and every members properly so that they can carry out
work effectively and channels used should be good enough.
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Organisational theories, models and concept
There are different theories, model and concept for continuous improvement. It helps in
formulating strategies and sustain position in market. It includes scientific and classical theories
which is important for functioning of organisation. Hotpoint has used Kaizen model for
improving productivity by eliminating wastage which is described below:
Kaizen Model
Masaaki Imai developed Kaizen model which was formed for improving productivity and
minimizing waste along with implementing continuous improvement. It has flow and process
approaches. The features of model are widely applicable, learning experience, high effective &
results oriented and team based & cross functional. The elements of this model helps in
improving quality and quantity of products. It includes teamwork, improved morale, quality,
personal discipline and suggestions for improvement. As it provide benefits to Hotpoint in terms
of reducing waste such as inventory, time, worker motion. It also improves space utilization and
product quality (Martins and Martins, 2012.). This leads to higher employee moral and job
satisfaction. There are five S of Kaizen model like
SEIRI (sorting out)- It separate unnecessary ones in workplace and remove unnecessary
items.
SEITON (systematic arrangement)- It creates works in systematic and proper manner
for achieving goal and objectives.
SEISO (spic and span)- It means workplace should be clean and tidy.
SEIKETS (standardisation)- The systematic environment of organisation clean up best
practices.
SHITSUKE (set discipline) - It means efforts should be continuously going and
improving.
This model is firstly used by Toyota after that many companies used it such as Lockheed
Martin, Ford Motor Company and Pixar Animation Studios. These all successfully reduced
manufacturing cost, inventory, cut delivery time, reduction of risk (Mir and Pinnington, 2014).
TASK 3
P3 Stages of PLC to given project for necessary supporting documentation
Business case
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It a verbal and written document which include a plan and this plan is related to the
presentation of a project and task which the company is going to work on it or present it. There
are some factors in it:
Cost- During the time of manufacturing Hotpoint set the cost according the customer
which they can easily pay and it is not to less that the company wear loss. For doing this the
company analysis other company's product cost. It can analyse the raw material cost and then set
its product price.
Importance of new product- Hotpoint deal with many product. Now it is going to launch
its new product 58” TV which is beneficial for the company and customer both because more of
the customer familiar with the other product soi they can easily accept it and company earn
profit. The new product is have some extra features like large size this attract the customers. But
they are little hesitate for adapting new product. If the product give good services and available
on good cost, it will increase the consumer line.
Target market- When Hotpoint manufacture its new product, it analyse the market in
which this product demand is high and it target that kind of market more then other. Mostly kids
and old age people use TV more then other people so they can target them or company already
decided to sold it stadium and parks (Patanakul and Shenhar, 2012).
Project plan
Hotpoint is going to manufacture a 58”TV and searching market for its product the
company should have strategies and methods which are required for launching. It should have
knowledge about the different department like finance, marketing and operation and
productivity which is helpful for them. It should research the market related to price, needs and
demand of the customers and scope of the product so that it can set the price and launch it in that
field (Subramanian and Ramanathan, 2012).
Product life cycle model
Hotpoint use Product Life Cycle for effective marketing of the product. This model is
given by Raymond Vernon in 1966. By developing the new product, firm can achieve growth.
The steps of this cycle is as follows:
Product development- It is the first step which a generic stage and it use for creating
awareness. It aware customers towards the product so that it can take the benefits of the product.
In Hotpoint in this stage the customer aware the TV which the company launch. There is no sales
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but the investment cost of the company is increase. This helps in knowing about type and
category of product and is very crucial stage of product life cycle.
Introduction- It is the second step, in this stage Hotpoint will do marketing and
advertisement of the product so that the customer are familiar with its product in this work it
invest more money. The sales and profit are less because it invest more money on the promotion
of the product. To introduce and promotion of the product the company use promotional
channels. The investment is more because of high marketing for new product in order to make to
customers.
Growth- In this stage, In Hotpoint the customer will be aware with the product and they
show their response towards the product. The purchase it and the company will grow. They are
familiar with the product so they did not face any problem in purchasing it. It is growth phase
where product is sold at high quantity and familiar with new products.
Maturity Stage- Under this stage the customer will be very much familiar with the
Hotpoint TV. And there are no more investment and advertisement cost because the customer are
well known with the product. There are no growth and profit. It is peak point where sales is
maximum from others and increase high profits through selling of products.
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Illustration 1: Product Life Cycle

Decline stage- After a long time, earning profit an sales, the product of Hotpoint will die
and quit from the market because new innovative products can take place and the testes and
preference of the customers are change. It is the decline stage (Todorović and et. al., 2015). After
some time, the value and brand of product decreases in market which leads to decline stage or
product is dead here.
In context to develop the new product, company can use the appropriate project
methodology for an instance Critical Path method that help in making planned schedule for
specific period of time to conducting the activities or tasks. On the other hand, Hot point use the
democratic leadership style in which leader know about the opinion and take suggestion from the
staff members about new product development.
Work break down structure
It is a structure or a chart which is made by the company in which it include critical work
elements like projects and task. The critical elements can be related to any field like geographic
demographic etc. (Too and Weaver, 2014).
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Source: Using “Work Breakdown Structure (WBS)”, 2017
TASK 4
P4 Effectiveness of the PLC by using appropriate theories, concepts and models
Product Life cycle refers to progress of new product by sequence of the stages from
introduction to growth, maturity and also decline. Hotpoint electric Heating Company normally
known as Hotpint and it is a brand of domestic appliances. Its different products are washing
machine, dishwashers, refrigerators freezers, cookers and tumble dryers. The management of this
company is playing an effective role in the development of the company. Managers of Hotpoint
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Illustration 2: Work Breakdown Structure