Project Management: Real World, Hotpoint Operations Report, Unit 16

This report provides a comprehensive analysis of project and operations management principles within the context of Hotpoint, a domestic appliance manufacturer. It begins by exploring the implementation of operations management principles, including organizational structure, reality, accountability, and variance, and how Hotpoint utilizes these principles in its operations. The report then delves into continuous improvement plans, focusing on lean principles within Hotpoint's operations, and outlines the Plan-Do-Check-Act cycle. Furthermore, the report examines the application of the Product Life Cycle (PLC) to a project, including the development of a business case for a large-screen TV, and discusses cost-benefit analysis. It also differentiates between large and small-scale projects. Finally, the report assesses the effectiveness of the PLC in the chosen project and concludes with a summary of key findings and recommendations. The report utilizes various operation management theories like Taylor’s theory, Mass customisation, Lean production and Six sigma to explain the implementation of project and operations management in Hotpoint.

Unit Number and Title Unit 16: Operations and Project Management
Project Title Project Management: Real World

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1.The implementation of operations management principles within an organisational context
.....................................................................................................................................................4
TASK 2............................................................................................................................................8
P2. Prepare a continuous improvement plan based on the review and critique of operations
management principles................................................................................................................8
Lean principles within continuous improvement at Hotpoint:......................................................10
TASK 3..........................................................................................................................................11
P3. Application of each stage of the PLC to a given project, producing necessary supporting
documentation for completing the project................................................................................11
Project Business case for Large Screen TV:.................................................................................13
4. Cost-benefit analysis : .............................................................................................................16
Large and small scale projects:......................................................................................................17
A firm create a project with two types that are small scale and large scale. Large project is
usually perform through public sector where as small scale project is performed by private firms.
Non-profit company can do all kind of projects. For doing small as well as large firm project can
utilise different theories. Few of them are autocratic leadership style, systematic theory and so
on. By which they can plan strategies more properly and effectually through performing market
analysis as well as evaluation........................................................................................................17
TASK 4..........................................................................................................................................17
P4. The effectiveness of the PLC in application to the chosen project.....................................17
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................21

INTRODUCTION
In every organisation operation and project management plays a crucial role in
their business. Operations management is considered as a administration which is
concerned with directing as well as designing production process and also re-design the
operation of business in products or services production. Project management is refers
as a usages of knowledge, processes, skills, experiences methods in order to
accomplish the project goals.
For this report the chosen company is Hotpoint which is an electric heating firm
and is a European as well as American brand of domestic appliances. Its headquarters
is in Peterborough, Cambridgeshire, UK. The purpose of this report is to discuss
different operation management principles and its strategy for continuous improvement
according to firm and operations. To understand the work breakdown structure utilised
in product life cycle and theories shows effectiveness of PLC implementation.
This learner has been chosen as Manager Research and New Product Development to
carry out the project of Large Screen Television Market. The minimum screen size that
company decided to produce is 58 inches.
TASK 1
P1.The implementation of operations management principles within an organisational
context
Operations management implementation involves the production as well as
operations process that drives information and control system that allows company to
plan and improve strategies of business. Each firm has various team and a specific task
is allotted to every team. Operation management team of Hotpoint is proficient in
creating strategies in order to complete the overall process with optimum uses of
resources.
Operation management principles:
Management of operation has few principles which aids to implement strategy
which are mentioned below:
 Organisation:
3

It is an overall group of activities and task where they whole are related with one
another in order to provide effectual outcomes. In firm, overall production activities are
connected with everyone so that good products and services are provided to customers.
Therefore, in case of Hotpoint company, its all components are to be connected with
others to obtain effective results in the development of firm. For example: in Hotpoint
whole department as well as activities are connected with one another, when it going to
launch new product that is Television it connect with all department. Marketing
department provides knowledge regarding their requirement and facilitates data to
finance department and it measure funds as per that. Human resources department hire
candidates in or to accomplish objectives. Thus, in all firm every departments are
connected with one another.
 Reality:
It is a principle state which company has to concern on issues instead of process
and techniques as there is not any tools which is appropriate for overall solutions. In
Hotpoint, after examining the issues and requirement of of customer it focus to
introduce a new product within marketplace and segmentation are to be done as per
that regarding clients preferences and choices.
 Accountability:
This principles includes some rules and regulation that are formed by manager
and senior authorities. It explains their issues to its subordinates and regularly check
that targets will meets the objectives of company. In given scenario, it perform in context
of employees benefits and gives their best. In Hotpoint cases, the senior authorities do
not assigned appropriate task and duties which obstructs its self-interest, therefore in
this case they cannot perform effectively for the growth of company.
 Variance:
It is a principle which explains the company different methods as well as
practices that are obtaining at the same time. Therefore, management has to
concentrate on overall activities with creativity. Hotpoint manages many activities in
order to obtain effectual outcomes.
4

Operations management at Hotpoint:
Every manufacturing company transform resources into finished products. The
operational manager of Hotpoint fine-tune its manufacturing methods to concentrate on
quality, to hold material and labour costs as well as remove overall costs which do not
add any value towards finished products. At Hotpoint, operations can be managed by
performing production planning, controlling and quality control.
Different approaches to operations management:
1. Taylor’s theory of Scientific Management
2. flexible specialisation
3. lean production
4. mass customisation
5. Agile manufacturing.
Mass customisation:
It is considered as a method of delivering wide market product as
well as services that are changed to satisfy a particular requirements of
customers. It is also a manufacturing and marketing techniques that
integrates flexibility and individualize of custom made goods with lower cost
of units that is relate with mass manufacturing. Hotpoint used this
approaches to design definite product features keeping cost closer
according to mass manufacture goods.
Lean production:
It is an management tool which concentrate on cost with standard quality goods
or services. This is relevant for whole areas of designing into production upto
distribution. The main aim of this approach is to enhance activities which assists in
giving valuable production methods. It consists of 5 principles which aids Hotpoint in
maximising efficiencies of production and eliminating defects. Define value: In company, it majorly concentrate on valuing its consumers and
knowing their exceptions. Manager of Hotpoint, required to develop their
products as per the choice of clients. It is introducing new product TV in its
product line so that they meet the upcoming requirements of its consumers.
5

 Map the value stream: in this marketers find out its product value within
consumers and utilise it as point of reference into product and services
production. Also assists manager to eliminate those activities which do not
produce any types of value. Therefore, manager of Hotpoint required to
concentrate on value adding into their new product like attractive design,
innovative features and so on in order to enjoy high consumer experiences. Create flow: at this stage, activities are not providing proper value to company.
Its main aim is to remove useless activities on time. For this, manager of Hotpoint
required to adapt effective strategies that involves re-designing steps, structure
of breakdown because it form organisational value. Establish pull: in company stocks are reviewed as large wastage into the
process of production. The main purpose of this is to specified inventory limits
and items of work in progress so that it will be determined with appropriate data
and material flow with manager of Hotpoint. Also a pull based system changed
for delivery on time and production where products are improved and measure to
satisfy customers demand, company plan to introduce TV in new market.
 Pursue perfection: It is the most essential method that assists in
continuous development in goods or services. It aids manager of
Hotpoint in developing the product and motivate workers so that they
give their best in the success of company.
Six sigma:
It is a statistical tool which was introduced by Motorola Mike Harry, who is known
as godfather of six sigma. This is assumed directly inherited from total quality
management. In both same tool sets are used. With help of this, Hotpoint can determine
the mistakes along with errors as well as minimise the organisational cost. This tool also
assists them to resolve many problems of operations and management. The six sigma
tools that is used by Hotpoint is DMAIC which stand for: Define: At this stage, a detailed explanation of problems are explained clearly in
order to eliminate the major drawbacks and effectiveness can be attained into the
growth of company. In this scope, plan and scope of project should be described
6

clearly. With the help of this Hotpoint can understand the issues of products and
services. Measure: In this stage, company assembles the present state of that scenario
and develop a based as per them, by improving map process as well as gathered
plans. Analyse: At this stage, factors are identified which are accountable and reasons
of defects. In scenario, factors assists to analyse data, root cause so that
effectual outcomes can be attained. Therefore, with the help of this Hotpoint can
identified the issues and its solution. Improve: At this stage, company identify the root cause of issues and corrective
actions can be taken in order to find out and solve problems. In this case issues
can be resolved by finding proper solution and modes of failure at which solution
are fail and then appropriate developments are adopted in Hotpoint company.
 Control: At this stage, an appropriate evaluation is done by analysing the
outcomes and consequently control activity which are taken to rectify variations.
Manager of Hotpoint, assess the consumers requirements and demands as per
its plan in order to introduce new product that 58 inch TV into market.
Operations management in service and manufacturing companies:
Every manufacturers set out to do the main functions that to change raw material
into finished goods. In order to do this whole activities in current environment of
business, manufacturers have to continuously develop the efficiency of operations.
They improve their process of production by focusing on quality, limit the cost of labour
and material also eliminate whole cost that are not adding any value towards finished
goods. At first manufacturing and service industry do planning for manufacturing and
service providing. After that monitor the the activities and oversees the raw materials
buying and managing stock. Finally, assure that products are manufacture or services
are provided as per specification and maintained the standards of quality.
Operations management relations with other business functions at Hotpoint:
Relation of operations with marketing department:
Marketing usually considered the functions such as advertising, pricing and so
on. As operation do the works like transforming raw materials into finished products.
7

Both departments of Hotpoint can work together to perform the functions of company
smoothly.
Relation of operation with finance department:
Finance department provides funds to other sections of Hotpoint. Both work
together so that finance division organise funds for raw material, processes and so on.
TASK 2
P2. Prepare a continuous improvement plan based on the review and critique of
operations management principles
Continuous improvement plan consists some consecutive steps. These steps move
from one design to next or from one firm to other. So, they are intended to determine
affects which organisation's policies as well as operational process has upon their profit
and manufacturing. This cycle initiate with innovative scheme, that is put into action. It
help Hotpoint to encourage as well as allow individual to share its outside knowledge
and skills of their group. Through this financial performance and proficiency of company
is moving forward.
Plan Do Check Act
In this Hotpoint,
identify the purpose,
establish an
objectives which is
needed to deliver
outcomes according
to desirable output.
Here, elements of
plan are executed.
In this Hotpoint
concentrate to
execute the plan,
process
implementation and
product making.
Through this
Hotpoint know the
actual outcomes and
comparison against
anticipated
outcomes to
ascertain any
differentiation.
Here, actions are
taken in order to
improve the
performance of the
project.
Here respective
company planning to
introduce standard
quality products with
low costs.
For this planning,
Hotpoint used lean
production.
With the help of
lean production
management tool,
company can check
the cost and quality
In order to improve
the project
performance
Hotpoint can define
the value, map value
8

of new project. stream, create flow,
establish pull and
pursue perfection.
Policies and processes for cost reduction and quality improvement at Hotpoint:
Cost reduction is refers as a methods utilise by firms to reduce its cost as well as
enhances its profitability. In order to reduce cost Hotpoint follows the following five steps
that are at first they do audit of recent expenses. Analysis of data as well as market are
to be performed. After that final reports are presented through explaining its findings
and recommendations. Then executions are to be done of overall recommendations. At
last, continuous monitoring, managing queries and implementation of better
management procedures.
Quality improvement:
It is considered as a systematic, formal approaches to the investigation of
practice performance as well as efforts to develop performance. Hotpoint can improve
the quality with the help of some few process that are reviewing the recent practices
systematically. Making strategies in order to develop the production process and service
providing. Executing those strategies through the change of company. Finally
monitoring as well as evaluating strategies so that manager of Hotpoint can access the
effects it has on productions.
Significant impact of technology upon operational functions:
There are various impacts of technology on operational functions some are
mentioned below:
Operating costs:
Hotpoint use technology in order to minimise the cost of businesses. As software
enables them to automate the functions of operations.
Securing sensitive information:
It is very essential for any company to save their confidential information. So,
technology help Hotpoint to form a secure surroundings to maintain information of
business operations as well as customers. Various software programmes and
technology allow them to create most effective techniques.
9

software systems:
1. Enterprise Resource Planning systems (ERP)
2. Supply Chain Management (SCM)
3. New-Product development (NPD)
4. Customer Relationship Management (CRM).
Supply chain management:
This is considered as a broad range of activities which is needed to plan, control
and implement the flow of products from obtaining materials and manufacturing by
distribution to final consumers. Hotpoint apply this software system to enhance the
competitiveness as well as consumers satisfaction. Also, this permits them to rapidly
deliver goods to end consumers for lower cost.
Application of process re-engineering and TQM at Hotpoint for TV project:
Re-engineering process refers to the systematic, disciplined approach in order to
minimise the costs as well as redundant of company enterprise process concerning the
analysis of people and automated flows of work. Hotpoint apply the process of re-
engineering are define objectives and framework. Finding the requirements of
customers. After that examine the process of existing and create a re- design plan and
then execute the plan of redesigning.
Time quality management:
It is considered as a process through which workers as well as management can
become involved into continuous improvement of manufacturing of products or services.
This the the integration of management and quality tools focused at enhancing firm and
minimise losses because of useless practices. Hotpoint have to manage the time of
quality by performing the regular process that is continuous improvement through doing
proper planning, organising, directing and controlling the operational processes.
TASK 3
P3. Application of each stage of the PLC to a given project, producing necessary
supporting documentation for completing the project
Every project have a starting, a middle period during that action move project
towards completing and a conclusion. A standard projects have four stages that is:
 initiation,
 planning,
10

 implementation
 closure.
In case Hotpoint focus to grow their market share by introducing new product which is
58 inch television into marketplace for successful execution of those project there is
necessary to obey appropriate steps. These steps assists to complete the project
successfully and for effectual outcomes. In home appliances cases individuals required
creativity at each stage to satisfy its requirements and strategies has to obey.
For successful execution there is requirements to know everyone roles and duties and
provides its contribution in effectual way. Hotpoint plan to enhance their market share
and its target market is upper class which can be easily affordable for them. It play
crucial role into development of company as it accomplish their product line and its
approximated sales during 1st year.
Project life cycle (PLC) :
It is considered to four stages process which is followed through overall manager
of projects at the time of shifting through project steps completion. It is the standard
project life cycle. So, it is critical for the manager of Hotpoint as it is anticipating to
deliver projects to customers effectively. All phases are mentioned below:
Initiation phase: During this phase, the objective of project is identified. It can be
considered as an opportunity or issues of business. Also, it figure out the existence of
project. So, Hotpoint map out the objectives of project, select a manager and clear its
approach. Project character is the key deliverable of this phase. At this stage they apply
Autocratic leadership style theory which is also called authoritarian at which people has
control over decisions that are taken through Hotpoint and contribution from the team
members. These type of leaders perform as per its own choices as well as take
suggestion from its followers.
Planning phase: at this phase knowledge of project management are used in
order to create a elaborated plan for the execution of project. In this scope of project are
explained, WBS is created and schedule are map out. Also, overall huge assisting
11

communication, risk management plan and so on is formed in this steps. Few key
transferrals are Gantt chart, project plan and WBS. At this stage manager of Hotpoint
apply democratic leadership style so all people from seniors to employees can
participate at the time of decision making that provides benefited results in introducing
its new products into market.
Execution phase: It is considered as a do phase of project at which company
actively track the distributed work as well as assure that project stays on instruction. It is
essential to maintain control and communicate as required at the time of execution.
Hotpoint hold meeting, deliver out the status of reports and assure that projects can
operates successfully. At this stage, manager apply the systematic style which allows
them to make where workers as well as staff members perform towards idea of
introducing TV into market place through utilising effective resources.
Closure phase: It is the final stage, the importance is on releasing completed
deliverables to consumers, handing over documentation of project to enterprises,
contracts of suppliers are terminate, project resources are released and conveying the
project closure to whole stakeholders. Project report is considered as a key deliverables
in this phase. At this stage, managers of Hotpoint use situational leadership style so that
they can make quick decisions according to requirements of clients want. Therefore,
this will develop more advantageous in introducing TV in suitable manner.
Project Business case for Large Screen TV:
Project name: Launch 58 inches Television
It is a documentation which provides a decision in order to initiate a new project
for developing new product or enhance features.
Executive summary: In this Hotpoint are planning to introduce a new product that is 58
inch TV with innovative features. So, they plan to expand its line of product into
competitive market.
Mission: Mission is “To attract more number of market share with its premium class in
products into competitive market”.
12