HotPoint: Operations and Project Management Report - Analysis

This report examines the operations and project management strategies of HotPoint, focusing on its entry into the large-screen TV market. It begins by defining operations and project management, emphasizing their importance for business success. The report then delves into the implementation of operations management principles, specifically Six Sigma (DMAIC) and Lean principles, to identify and eliminate defects and deliver customer value. A continuous improvement plan using the PDCA cycle is formulated, addressing quality, promotion, and delivery aspects. The report also discusses performance measurement models, including the five whys strategy. Finally, the report explores the application and effectiveness of each stage of the project life cycle (PLC) within the context of HotPoint's new product launch. The report aims to provide a comprehensive overview of how HotPoint can effectively manage its operations and projects to achieve its business objectives.

Operations and
Project Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Implementation of operation management principles............................................................1
TASK 2............................................................................................................................................4
P2 Formulation of continuous improvement plan.......................................................................4
TASK 3............................................................................................................................................7
P3 Application of each stage of project life cycle.......................................................................7
TASK 4..........................................................................................................................................12
P4 Effectiveness of PLC............................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Operation management can be defined as the area of management in which managers are
concerned with designing and controlling procedures of different business operations in which
goods or products are manufactured. Project management is the practice of executing various
activities such as initiating, planning, executing, controlling and closing of work which is
assigned to a team in order to attain all the business objectives (Bamford, Karjalainen and
Jenavs, 2012). It is very important for managers to manage both the major elements of
organisation so that business can be operated effectively. The organisation which is selected for
this project report is HotPoint which manufactures different types of home appliances such as
washing machine, fridge etc. Now it has decided to enter in large screen television market.
This report covers various topics such as evaluation of appropriate theories and concepts
and analysis of effectiveness of continuous improvement plan with the help principles of
operation management. Apart from this, critical evaluation of each stage of project life cycle,
formulation of different documents and use of appropriate theories, concept and models in PLC
are also discussed under this report.
TASK 1
P1 Implementation of operation management principles
Operations management is an activity in which activities that are required to operate a
business are controlled, monitored and analysed in order to make sure that all of them are
executed appropriately or not. A HotPoint has decided to enter into large screen TV market and
the minimum size of its TV will be 58 inches. For this purpose, targeted customers will be owner
of stadiums, parks etc. In order to analyse effectiveness of this plan manages are going to
implement different types of tools such as six sigma, lean principles etc. All of them are
described below:
Six Sigma: It is an approach which is used by business entities to identify defects and
errors in their manufacturing processes and then try to remove them so that best quality products
can be delivered to customers. It is mainly concerned with requirements of clients which is
assessed with the help of extensive measurements and statistical analysis. There are five different
elements if this approach which are known as DMAIC (Determine, Measure, Analyse, Improve
and Control). It is very important for HotPoint to take all of them in to consideration so that
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appropriate information can be gathered for the purpose of launching new TV in to market. All
of them are described below:
 Define: This is the first stage of in which managers of HotPoint are required to identify
issues in manufacturing process and then resolve the same. With the help of this stage
they will be able to formulate strategic decisions in order to resolve them. If they are not
able to recognise problems then it can create rigidity which may result in delay in
launching or TV.
 Measure: At this stage management of HotPoint will measure the problems and its size
whether it is huge or a small error. It is helpful for them to monitor that operations in
future will be operated appropriately or not. When they won't be able to measure the size
then it will become difficult for them to find best solution for the issue.
 Analysis: In this stage staff members of HotPoint analyse that that their propose
strategies are effective or not. This can help them to overcome the situation which is
affecting operations. Negative aspect of this principle is that organisation is not allowed
to introduce a new tool or method whether it is effective or not. Company has to use its
old strategies (Dutta and Bose, 2015).
 Improve: According to this principle top executives make improvements by reducing
errors and mistakes that were identified. It helps to make sure that all the issues are
resolved and operations can be executed without any interruption. When appropriate
improvements are not implemented then it will affect whole organisation and its new
launch.
 Control: This is the last element of six sigma approach in which proposed solutions are
implemented and controlled so that in future development opportunities can be acquired.
If managers are not able to follow up the implemented solutions then worst situations like
huge losses can be faced by organisation.
Lean principles: Such type of principles are followed by organisations to deliver
perceived values to customers (Lean principles, 2018). There are five different lean elements of
it that are going to be implemented by managers of HotPoint while launching new large screen
TV in the market. All of them are as follows:
 Determine value: Managers of organisation are mainly responsible for determining
appropriate value for the products. It helps to meet customer’s expectations so that higher
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profits can be made by organisation. If the price is not determined appropriately then it
will leave negative impact on company by decreasing its market share.
 Mapping of value stream: According to this principle, top level executives of HotPoint
are responsible for the designing of framework in which all operations are going to be
executes. It helps staff members to perform their duties in appropriate manner. It is a time
taking process and issues required quick solutions.
(Source: Lean principles, 2018)
 Create flow: After getting the map or framework of activities managers of HotPoint are
responsible for analyse the ways in which efficiencies can be maximised and waste can
be reduced. When they are having detailed information then needs and requirements of
clients can be fulfilled in appropriate manner. When management of entity are not able to
perform their duties on time then it is not possible to operate activities smoothly.
 Establish pull: This principle states that after creating flow for operations manager have
to determine requirements of stock for production. If proper need of inventory is being
ensured by staff members then process of manufacturing can be conducted without any
interruption. When they do not have appropriate idea of stock requirements then it will
affect whole production and market position.
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Illustratio
n 1: Lean principles, 2018

 Pursue perfection: Pursuing perfection results in greatest value to customers and at this
stage managers seek for perfection which helps to enhance customer satisfaction level. It
is beneficial for attainment of goals that were formulated previously. When managers
will not be able to follow all the above described steps then it will become difficult for
them to get perfection in their work.
Judgement: Currently HotPoint is manufacturing different electrical products. Its current
operations shows that it generates higher profits with the help of them which helps it to establish
a good image in the market. In order to capture larger market share it has been recommended to
it to use product development and launch new items in the market. It can help to attract large
number of customers and enhance profitability.
TASK 2
P2 Formulation of continuous improvement plan
Continuous improvement: It is an ongoing process of efforts that are made by
organizations in order to improve its products or services in order to enhance customer traffic in
their stores or increase number of customers (Kerzner and Kerzner, 2017). As HotPoint has
decided to introduce it self in the large TV market, so it is vital for the business entity to
formulate a continuous development plan in order to make sure that it is able to achieve its
objectives or not. For this purpose, managers are going to formulate a plan in which they are
going to use PDCA cycle. It has four different elements that are plan, do, check and act. It is
mainly used for controlling and improvements. All the elements of this process for HotPoint are
described in the table below:
Plan Do Check Act
Quality In this element
managers formulate
pans to launch new
TV in the market and
monitor quality of
them. If they find that
any modification is
required then they can
With the help of total
quality management
approach managers of
HotPoint will check
that new TV that will
be launch by Hot
Point have good
quality or not. If they
Under this stage
managers will
compare quality of
new TV which will be
lucnhed in the market
soon in order to
monitor that it will be
able to attract large
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modify them with the
help of Lean-
principles principle of
continuous
improvement. If they
are not able to make
change then it will
leave negative effect
of whole organization.
do not have good
quality then it will
result in unsatisfied
customers.
number of customers
and company is
offering something
new to clients or not.
Promotion activities Marketers of HotPoint
will formulate
strategies related to
promotion and
advertisement of new
TV so that large
number of customers
may get attracted
towards the new TV
that are going to be
launched by the
organization
(Laosirihongthong,
Punnakitikashem and
Adebanjo, 2013).
In this stage of PDCA
cycle managers of
HotPoint will
formulate various
plans to promote new
TV going to be
launched in market in
order to check that it
will be able attract
customers or not.
Organization can use
social media,
hoardings and other
mediums to promote
itself.
At this point of PDCA
cycle managers will
implement the formed
plans in order to
promote its new TV
that will be launched
soon in the market. It
will help to capture
larger market share
and increase
profitability of the
organization by
attracting large
number of customers.
It is very important for
managers to organize
all the activities
effectively which is
possible with the help
of Six Sigma principle
of continuous
improvement in order
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to make sure that all
activities are
performed
appropriately or not.
Delivery Managers of HotPoint
will use six sigma
strategy to monitor
different types of
systems that are going
to be used for
delivering process of
new TV which are
going to be launched
in the market in
future.
With the help of this
element managers will
check that all the
delivery related
activities of new TV
are performed
appropriately or not.
For the purpose of
analysis, they can use
accountability
principle of
continuous
improvement so that
they can make sure
that all the new TVs
are delivered in
appropriate manner or
not.
At this stage managers
and other executive of
HotPoint will
implement all the
strategies that are
formulated for the
purpose of delivering
the new 58 Inch TV
that are going to be
launched in market.
In order to measure performance of continuous improvement plan managers of HotPoint
can use performance measurement model. It can help them to analyze that the proposed PDCA
plan is effective or not. For this purpose, they are also required to use an effective strategy and
they can implement five why strategy. It can guide them to measure various elements of plan and
get answers of all the questions regarding proposed plan. There is another way to measure
success of plan which is Gamba Walk strategy in which all the processes are observed that are
going to be followed by company (Loch, 2017). The continuous improvement plan of HotPoint
is very effective because it helps managers to take control over all the activities so that all of
them can be performed appropriately.
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TASK 3
P3 Application of each stage of project life cycle
When an organisation plan to launch new products in the market then a specific project is
being made by it. As HotPoint is going to introduce new large screen TV in market which is a
new project of company. For this purpose, it is vital for managers of business entity to follow all
the stages of project life cycle while working on the project. It is a combination of different
stages that a project goes through (Stevenson and Sum, 2014). It starts from initiation and ends
to closure. In order to complete it manager have to follow all four stages of its lifecycle. It covers
various tasks that are assigned to staff members are required to successfully complete the project.
All stages of it for HotPoint are described below:
Initiation: In this stage of project life cycle managers identify needs, problems and
opportunities that are available in the market. When opportunities are analysed then managers
brainstorm to grab them and formulate effective strategies for betterment of organisation. A
business objective is also been decided for business which is going to be achieved in future. First
of all, managers of HotPoint observed the market and identified different opportunities with the
help of feasibility study and propose a project. After this step they identify scope of the idea by
defining its depth and breadth which guided them to create a new plan for the launching of new
58 inches TV in the market (McCluskey and Vallati, 2017). They also decide leadership style
which is going to be followed through out launch of new TV. Proposed leadership style for the
new project is democratic as they are willing to take opinion from their subordinates. They have
also analysed some methodologies such as Agile and Hybrid in order to introduce new TV in the
market successfully.
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(Source: Project life cycle, 2017)
Planning: In this stage managers of HotPoint fromed plans for future so that proposed
project of launching new 58 inches TV can be completed successfully on time. They also
formulated plan for attainment of short as well as long term goals such as spreading awareness,
attracting customers etc. In order to achieve all the goals such as attaining competitive advantage
in the market proper and effective planning is required and managers have to focus on different
aspects to form plans (Project life cycle, 2017). These are market conditions, current trends,
perception and needs of clients etc. It is vital for staff members of HotPoint to create impressive
plans so that business objectives can be achieved.
Execution: When plans are formulated then managers of HotPoint are responsible to
execute all of them in order to launch new TV successfully in the market. For the purpose of
execution firstly staff members are required to take approval of plans from top executives. When
they approve it then employees start to work on them. In the case of HotPoint managers will
implement plans and try to achieve all the objectives that are related to new TV that are going to
be launched in market. The selected methodologies help them to analyse that the proposed plan
is effective or not. Flexibility, risk factor, efficiency and proper structure is also analysed in this
stage in order to accomplish project successfully (Starr and Van Wassenhove, 2014).
Closure: When all the above described phases are completed by managers then they
launch project in the market. They are also responsible to measure and evaluate effectiveness of f
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whole project. In this stage managers of HotPoint are also liable to control all the activities that
are performed by employees and other staff members in order to introduce new TVs in the
market. Performance of whole project and team members is measured by top executives to
assure that launching of new TV is completed appropriately or not. When products are
introduced in market managers have to analyse reviews of customers who have used the products
of organisation (Parsanezhad and Dimyadi, 2013).
Business case: While working on a project it is very important for organisations to form
a business case in which detailed information of proposed project is being mentioned. All the
aspects that are required to be considered by HotPoint are as follows:
Company Overview HotPoint is a manufacturing company of home appliances and now it
is planning to introduce itself in large TV market.
Vision and Mission
Vision of HotPoint is to capture larger market share in upcoming
period.
Mission of HotPoint is to attract large number of customers by
offering them good quality products.
Objectives Main objective of HotPoint is to enhance its profits by 10 % by
launching new large size TV in the market.
Strategy
Managers of HotPoint are required to formulate effective strategies
so that new TV can be launched in the market appropriately for the
betterment of organisation.
Financial Budget Particulars Amount
Research and development 1500
Marketing 2000
Plant and Machinery 200000
Material 150000
Promotions 2600
Salaries to staff members 34000
Total budget 255100
In order to launch new TV in the market managers are required to
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acquire funds around 255100 pounds (Prashar, 2015).
Marketing plan
In order to launch new TV in the market it is very important for
managers of HotPoint to formulate a marketing plan with the help of
STP. All the elements of this strategy are as follows:
 Segmenting: Managers of HotPoint have selected UK as its
segment where its products are going to be launched.
 Targeting: Target customers of HotPoint are owners of large
stadiums where large screen TV is used.
 Positioning: Managers are going to position products in the
market by using attractive promotional strategies.
Follow Up At the end managers are responsible to analyse that all the activities
are performed appropriately or not (Ranjan and Benatallah, 2012) .
Project plan:
Cost The estimated cost for the new project is around 255100 and managers
have to acquire money for business.
Communication In order to communicate with all the employee, managers have to
conduct formal as well as informal meetings.
Quality To analyse that quality is maintained by company managers have to
keep track record of all business activities.
Scope To attain all the business objectives managers, have to hire skilled
employees and make sure that they fulfil their duties.
Work breakdown structure:
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