Operations and Project Management Report: Whirlpool Analysis

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This report provides a comprehensive analysis of Whirlpool's operations and project management strategies. It begins with an introduction to operations management principles and their implementation within the company, focusing on the importance of adapting to changes in the business environment. The report then delves into specific techniques such as Six Sigma (DMAIC and DMADV) and Lean Production, highlighting their roles in improving efficiency and launching new products like a large-screen television. Furthermore, the report examines the application of a continuous improvement plan, including the Plan-Do-Check-Act cycle, and its effectiveness in enhancing processes. The analysis extends to the stages of the Product Lifecycle (PLC) and how these theories and techniques are applied. The report uses Gantt charts and work breakdown structures to illustrate project management concepts. The report concludes with a summary of findings and references.
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Operations and Project
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Implementation of operations management principles..........................................................3
TASK 2............................................................................................................................................7
P2 Continuous improvement plan...............................................................................................7
TASK 3..........................................................................................................................................10
P3 Stages of PLC......................................................................................................................10
TASK 4..........................................................................................................................................13
P4 Effectiveness of PLC in application of theories and techniques..........................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Operations management means performing activities for smooth running of business.
There are many changes taking in business environment and it is essential for organisation to
deal with it. It is essential that manager has to perform activities which are related to upliftment
of organisation (A. Makarova and Sokolova, 2014). There is requirement of proper management
so activities can be managed properly, which helps to achieve business objectives more
efficiently. This report is based on Whirlpool manufacturer and seller of home appliances such as
refrigerator, television, washing machine, etc. whirlpool has headquarter in US. There are some
operation management principles which are applied in company to achieve business objectives.
There is discussion about continuous improvement plan, PLC stages to complete project and it
must be applied in effective manner so effective results can be gained. There is use of Gantt chart
and work breakdown structure which help company in successful launch of new product in
market.
TASK 1
P1 Implementation of operations management principles
Meaning of Operations Management
Operations management is the unit which keeps eyes on operations of organisation and
they emphasise on working style. There are various policies framed which aims at achieving
business objectives on time. Hence all this is responsibility of operations manager and it is
essential to watch which activities has to be performed. These days role of operations department
is increasing because there are various goals and objectives. As change in external factors of
business, it is essential to accept these changes so that they can give utmost benefits to
consumers.
In initial days, there was no requirement of Television but time has changes and today
company wants launch to large screen television in market. This task is not easy, there is
requirement for proper planning to achieve it (Benito and et. al., 2013). Employer has to
motivate employee to give their best. It is essential to give them career growth so they take their
work more seriously. There are different approaches used by company to achieve business
objectives, they can be applied to operations through proper planning.
Principles of Operational Management are-
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Organisation- Whirlpool deals in different products so it is essential for them to plan
activities as per goals and objectives.
Fundamental- As per this principle, Targets of company can be achieved with combined
efforts of employee and employer. 80% can be achieved through rules and regulations. 20% can
be achieved with application of new techniques (Coyne, 2015).
Reality- There are various problems which arise in business and manager are required to
give emphasis on technique which provides best solution. There is change in technique as per the
situation.
Accountability- There are various departments in organisation and it is essential to deliver
roles and responsibilities to employees properly so that clear communication chart will be there.
Variance- Cost and profit are two important concept in company and manager has to
focus on cost reduction. But at the same time it is essential to check that quality of product must
be maintained.
Causality- Business runs in society and future is unpredicted. So manager has to perform
activities which reduces the risk of near future.
Managed Passion- There are many employees working in organisation having different
skills. So as per this principle it is essential to assign activities which are as per interest area.
Employee also tries to give their best.
Humility- This helps says that there is requirement of proper training to make worker
learn new things. There are different techniques which are fruitful in enhancing knowledge of
employees.
Success- If activities are performed with full efficiency then success will surely achieved.
There is difference in definition of success as per perception of manager.
Change- This is essential principle which says that company has to adopt changes. This
helps company to achieve goals and objectives on time.
These principles are helpful for company to achieve their targets on time. Whirlpool
wants to launch 58 inches television in market so these principle help them to achieve it (Forbes
and Ahmed, 2010). There is requirement of proper planning and also communicate necessary
changes to workers. There are chances of various mistakes and errors so operations managers are
required to rectify policies and techniques.
SIX SIGMA
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This technique is Japanese techniques which aims at achieving business objectives with
full efficiency. There are many problems faced by workers while doing their operations.
Whirlpool wants to launch new product in market, so they must use Six Sigma to control
unnecessary activities. DMAIC and DMADV are two techniques used under Six Sigma. These
two techniques are used for different purpose (Gecevska and et. al., 2010). DMADV is beneficial
when company is launching new product and services in market, while DMAIC launches at the
time when something addition is done in existing product and services. In current case DMADV
is used, this is discussed in details-
Define- This is first step which is associated with defining problems and then planning is
done accordingly.
Measure- This states about approaches which are used by company to reduce difficulty
inconvenience to workers.
Analyse- This is essential step as there are sorting done of measures which are effective
in achieving objectives.
Design- Design is plan to performing activities. There are possibilities that company has
to design activities which are cost and time effective.
Verify- This is last step which says there is requirement of proper checking whether to
activities are performed properly or not (Kono and et. al., 2012).
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Illustration 1: DMAIC
(Source: Six Sigma Technique, 2018)
LEAN PRODUCTION
This is also good technique Whirlpool must follow to get success in launching large size
television. There are five steps in this techniques which are discussed as under-
Define value- In this step, company has to plan all activities which will be helpful in
launching large size television. There are possibilities also that because of changes in business
operations manager has to apply new techniques.
Mapping value stream- There is change in need of customer, so it is essential to adopt
these demand and adopt to operations of company. When organisation is launching new product
then it must be communicated to public (Madden and Morawski, 2011).
Create Flow- There is requirement of various resources to accomplish targets of
company. Manager must watch that there must be proper and effective use of resources.
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Establish pull- There is requirement of raw material in manufacturing process. So
company must take care of finished goods as well while production so there will not be a chance
of outdated product.
Pursue perfection- There is chances of improvement in product and services, which can
be done when manager take care about business environment. This improves quality of product
and services and opens prospects of growth for organisation.
Illustration 2: Lean Principles
(Source: Lean Principle, 2018)
TASK 2
P2 Continuous improvement plan
There is scope of improvement. According to Rinke and et. al., 2012 person can learn
things and apply it to workplace. Whirlpool has competitors which may affect its sales and
profit. It is important that manager has to check their policies so they can know about happenings
of external environment.
Continuous Improvement- As per this concept there is need of gaining new techniques
and apply it to operations. There are many ways to perform single task so it is essential to give
emphasis on learning new things. This concept is necessary when company wants to achieve
create good relations with customer. There are two parties external and internal and it is essential
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to create good environment with both of them, so there will be possibilities of achievement of
targets on time.
Continuous improvement focuses on increases profits and productivity. There are
possibilities that company has to plan strategies which help company to reduce wastage of
resources and improves quality. Improvement process consist of four steps. They are discussed
as under-
Plan- There is requirement of proper planning so manager can guide personnel what has
to be done and when (Tang, Shen and Cheng, 2010). As there is change in working styles then it
is important to convey that modification to workers. When there is something new in market then
it must be learned, manager has to plan this.
Do- This is the step where operations take place. This steps says that company has to put
strategies in actual activities. There are different activities for different workers which is headed
by departmental head.
Check- After implementation of operations there is need of checking. There is either
positive or negative results. In case of negative results there is requirement to take corrective
actions (Tuncel and Alpan, 2010).
Act- After analysing different strategies, employees has to perform task again. In this step
leader has to check working style and then take corrective measures at that time only.
CONTINUOUS IMPROVEMENT PLAN
Provider
Date
Source Anticipated Outcome Current level of
performance
Improvement
Strategies
Promotional events There is essential
requirement of
promotion when they
are coming with large
size television.
This television is
promoted at
household level, which
is not worth for its
sales.
As this television is
target for auditoriums
then it must be
promoted in front of
schools, colleges, etc.
After sales services Good and timely They have less centres Whirlpool must train
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services so consumer
feels secure. 5 years
warranty must be there
and 2 years guarantee.
which provide service
for this television. So
this product does not
carries good image in
market.
their employees
regarding service of
this product, this helps
in satisfying
employees and
consumers.
Use of continuous improvement plan and its effectiveness
Continuous improvement is beneficial for growth of company. There is requirement of
proper guidance when there is change in working style. Objectives of company can be achieved
through join efforts of employee and employer. Employer must frame policies which are easy to
apply in operations and employees must be energetic regarding performing there roles and
responsibilities (Uchihira and et. al., 2012). There are many departments in Whirlpool which
helps to achieves business objectives. There is requirement of performing task effectively so
there is increase in image of organisation.
Strategies for efficient implementation of continuous improvement plan
Good employee employer relationship: Policies can be applied in better way when there
is good relations among employer and employees. This helps in providing guidance, if there is
problem faced by manager of company then it can be solved frequently.
Proper communication channel: In Whirlpool there is proper communication channel. So
employer and employee are aware about their job roles. There are many activities which are
interrelated so there will be no confusion regarding working process.
Priority to employees need: Employees are main component in company. There is
difference in organisational and personal goals and objectives, so it is essential that company has
to give priority to need of workers.
Proper guidance and direction: There is essential need of direction to workers when
they are performing sometime new and there are possibilities of change in working style f
workers which helps in achieving business objectives effectively (Wang, Lin and Huang, 2010).
Organizational Theories, Concepts and Models
There is important role of theories and techniques to achieve business objectives on time.
There is use of different style as per situations. There are numerous employees so manager has to
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use different leadership style as per employees. It is important that company has to give
emphasis on quality of product so customer gets satisfied. It is essential that company has to
emphasis on worker's efficiency and then deliver roles and responsibilities to them. If there is
need of training then best and appropriate method must be used (Management Theories &
Concepts at the Workplace, 2018).
TASK 3
P3 Stages of PLC
Product Life Cycle is the technique which is beneficial for company to know what is the
life of product. It is essential for company to know at what time there is requirement to modify
product so consumer get satisfied and life of product increases. As in case of Whirlpool they are
launching large size so there is requirement of proper planning and funds also, so it is essential to
plan activities in best and appropriate manner (Xiaoye and Yingying, 2011). Whirlpool has to
make plan regarding launch of new product in market. There is requirement of employees and
financial funds also, so it is essential to a analyse all sources and then take corrective measures.
There are possibilities that employees do not like to work under changed environment so there is
requirement of their motivation. This television works at home threater and this is beneficial for
school and institutional purchase. So promotional events must be used which affect targeted
consumer.
There are many competitors of company and hence it is essential to give analyse their
policies so consumer does not switch to other brands. PLC provides organisation a direction in
which they have to work. It is important that manager has to communicate regarding changes
taking place in operations. It helps in achieving business objectives and employees are also
aware about reasons of those changes. PLC helps company to enhance its image in industry.
PLC stages are discussed as under-
Introduction- This is the first step in PLC stage. In this stage there is decision about time
when company has to launch their product in market. Whirlpool has to launch television at the
time of Christmas so there will possibilities of great sales. Introduction time will take 1week-
2months, this helps company to communicate about product in market (Yeoman and et. al.,
2012).
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Growth- This is stage after introduction when people came to know about product and
sales of product will increase. If introduction f product is not good then growth stage is less
effective. Growth stage will take 2months-1year.
Maturity- This stage is very pick time for company which helps to achieve objectives of
higher profits. This is the stage where company can frame different promotional events for
existing product. After this stage product will move to decline stage. This stage will take 1year- 2
year. There are possibilities that company has to reduce cost of product so it can be in reach of
general public.
Decline- This is the last stage of product cycle after which product will be out of run in
industry. To make product existing there is requirement of value addition of product. This stage
will take 1year-1.5year.
Illustration 3: Product Life Cycle
(Source: Product Life Cycle, 2018)
Work Breakdown Structure for new Product
This structure talks about internal structure of company, which aims in launching new
product successfully. There is hierarchy structure in Whirlpool and it is essential to perform
which are headed by different departmental heads.
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Gantt Chart
This chart helps to show which activity will take how much time. This helps manger to
divide project in number of days and hence there will clear division of task as well.
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