Report on Operations Management Principles at Whirlpool Corporation

This report analyzes the application of operations management principles within Whirlpool Corporation, focusing on its home appliance product line and the planned expansion with a 58-inch television. It explores scientific management principles, including science, harmony, mental revolution, cooperation, and flexible specification. The report examines key operations management principles like reality, organization, fundamentals, accountability, and variance. It also delves into the six sigma methodology, detailing the define, measure, analyze, improve, and control stages, along with lean production principles. Furthermore, it evaluates the effectiveness of continuous improvement plans and the stages of the product life cycle, providing insights into how Whirlpool can optimize its operations and successfully launch new products in a competitive market.

Operation and Project
Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Implementation of operations management principles within an organisational context. 3
TASK 2............................................................................................................................................6
P2 Analysing effectiveness of continuous improvement plan...............................................6
TASK 3............................................................................................................................................8
P3 Evaluating stages of Product Life Cycle...........................................................................8
TASK 4..........................................................................................................................................12
P4 Effectiveness of PLC in application to chosen project using appropriate models and
concepts................................................................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Operation management is basically practice in business administration in order to create
higher level of efficiency within an organisation. In an organisational, operation function are
performing the ongoing execution of activities that produce product or supply services. It is a
endeavours that produce repetitive outputs. In constant projects are temporary in nature that help
business to meet organisational goals and respond quickly and easily to external environment. In
this report the organisation chosen is Whirlpool's corporation which deals in home appliances in
its product line and have good market share in competitive market place. It deals in fridge and
freezers, gas and electric cocker and now they are planning to expand their product line with
innovation product which is 58 inch Television. This report is going to analysis the appropriate
theories and concepts, effectiveness of continuous improvement plan by using principles of
operations management in whirlpool's. Moreover, evaluating stages of Product Life Cycle and
contribution of each stage in development of organisation and selecting one of the most
important theories and model that help PLC.
TASK 1
P1 Implementation of operations management principles within an organisational context
In today's context in every organisation operation management play's a pivotal role in
opting optimal outputs from various resources that is used by an organisation in manufacturing
or offering services to customers. It consist of planning, organising, directing and investigating
established and necessary improvement in order to have higher profitability and productivity in
organisational growth. Moreover, operation management is a multidisciplinary approaches that is
used by different department such as finance, marketing and human resource department. This
help to get effective result by utilising labour, budget and other resources in an appropriate
manner.
In an organisation, scientific management of theory is well know for its application of in order to
to improve efficiency of each individual within an organisation. This method indicates that work
encompass on production floor as this task are quiet different form other task that are performed
within an organisation. Herein, the mangers are adopting 5 principles of scientific management
that are propound by Taylor:

Science, not rule of thumb: In order to increase organisational efficiency the rule of
thumb method should be substituted in developing and analysing work in an effective manner.
Thus, this will help mangers of Whirlpool's in bring efficiency in small production activity as
well this will help in saving time as well as human energy. Thus, decision should be based on
scientific enquiry with cause and effect of relationship. As this process help mangers in selecting
best way of performance through application of scientific analysing methods.
Harmony, Not discord: This process indicates that their should be complete harmony
between the workers and management so that their will be no conflict between two. It will be
beneficial for both organisations and workers. Herein, both mangers and workers should analysis
each other importance in an organisation so that efficiency can be developed as well as goals
and objectives can be attain in an effectively manner.
Mental revolution: This techniques of mental revolution involves changes in attitude of
workers and management towards each other. Herein, managers of a respective organisation
should realise each other importance in working performance. Additionally, management and
workers should aim to increase productivity and profitability of an organisation. Thus, this
p[process is complete change of revolution that usually bring changes in outlook of both mangers
and workers.
Cooperation, Not Individualism: In this techniques, cooperation, mutual confidence,
sense of goodwill should be prevail among both mangers and workers. Herein, mangers of a
respective organisation should allow to take equally participation in decision making process.
Moreover, mangers should always welcome their suggestion and also reward them if their
suggestion prove to be beneficial for organisation. Thus, this process will lead to reduce cost and
increase production in an effective manner.
Flexible Specification: Flexible specification is a business strategy that an organisation adopt
itself to become more competitive in mark place with having potential with multiple skills.
Herein, managers are creating multiple uses to machinery and equipment so that they can create
a flexible environment in achieving goals and objectives in an effective manner.
Principles of operation management
Principles of operation management are essential in operating business in an effective
manner. For instance operation management need to understand its principles that provide

insight and knowledge in organisation growth and development. Principles of operation
management that are adopted by Whirlpool's corporation are determined below:
Reality: This principles state that an organisation need to focus on problems that are
arising rather that techniques and methods that help in overcoming problems. The manager of
Whirlpool's corporation need to analyse problem of their customers and accordingly provide
solution to it. Moreover, they are planning to launch new product in market accordingly to
customers need and demand.
Organisation: Organisation is concerned with group of work activities that are connected
with each other in order to have effective results. In organisation context to Whirlpool's
corporation beach and every department are interconnected in order to get best outcome in
organisational development. Additionally, finance, marketing and human resource department
are connected with each other in launch their new product that is Television. Such as finance
department provide budget, marketing department provide information regarding customers need
and requirement and human resource department recruit employees in successful launch of
product. Thus, every department are connected with each other towards fulfilment of goals and
objectives in competitive marketplace.
Fundamentals: The fundamentals principles states that 80% success depends on
maintaining records and techniques as well as 20% comes from application of new process that
are necessary in organisation development. Herein, mangers of Whirlpool's corporation are
providing best product and services and now they are planning to launch new product in order to
bring efficiency with new innovation in it.
Accountability: In this principles accountability consist of rules and regulations that are
set by managers and higher authorities. It define problems to their subordinates, employees and
staff members that they should match targets as well as goals and objectives. Herein,
accountability is lacking behind in Whirlpool's corporation as mangers and higher authorities are
not much concerned in properly delegating roles and responsibilities to its employees. Thus, it
result in less development of organisation growth and fulfilling goals and objectives respectively.
Variance: The variance state that in an organisation various process and practice should
prevail simultaneously. Mangers of Whirlpool's need to focus on activities and creativity with
organisation so that activities are result in an effective manner.

Mass Customisation: Mass customisation is process of delivering wide market goods and
services which are modified to satisfy a specific customer's needs. It is a marketing and
manufacturing techniques which combines flexibility personalisation of custom made products
with low unit cost associated with mass production. Moreover, mangers are using this process to
design certain features of product while anticipating cost of production so that flexibility can be
created as well as maximising option to create semi custom final product.
Agile Manufacturing: Agile manufacturing is a term that are applied to an organisation that has
created processes, tools and training to enable it to respond quickly to customers. These
manufacturing process is adopted by mangers of Whirlpool's so that market changes can be
determined and accordingly customer's need and requirement can be meet in an attractive
manner.
Operations process in service sector and manufacturing sector organisation.
Process in manufacturing sector: In operation sector, manufacturing have a standardized way of
producing goods and services. In this sector goods are produced in masses or whole seller type
environment.
Process in service sector: In service sector, an owner have many opportunities in order to
customise services that they are offering to customer's. Moreover service operation the services
from tangible assets may vary from workers to workers.
Thus, manufacturing and service production operation both have plan environment in which
work take place but their motive and focus is different from each other.
Relationship between operation and other business function
Operations with marketing department: In an organisation both operations and
marketing department are linked up with each other. Such as marketing department help
operations department in manufacturing the right product, design and maintaining quality of their
product and services. Form the market research they find out need and requirement of
customer's and accordingly goods and services are developed.
Operation with finance department: In an organisation operations and finance
department are connected with each other. Such as without proper allocation of budget
operations management team cannot evaluate actual quality of product. With proper allocation
of budget resource can be acquired and according manufacturing can be done in an effective
manner.

Six sigma:
Six sigma is a statistical frame work of tool and techniques that basically work on
reducing defects and variability in process of manufacturing goods and services. Its process
includes measurement, improvement and validate work and actives of business operation. It help
in producing no defect product and meet out the standard deviation founded with specification. It
help to measure the current errors and increase performance of organisation by adopting
statistically improved tools and techniques. The steps involved in six sigma are determined
below:
Define: In this stage, a detail description of issues and problems are describe in brief.
This process help in knowing drawbacks and eliminating them so that effectiveness can be
achieved in organisational growth and development. In define project scope, resources plan
should be explain in detail managers of Whirlpool's corporation need to understand problem and
issues keenly.
Measure: In this stage, mangers of Whirlpool's corporation need to assemble the current
state of present scenario. As this will help them to build a baseline accordingly so that an
appropriate process map and collection plans can be developed. Moreover, this will help them to
measure the need and required of television in market place so that it help in achieving goals
and objectives respectively in competitive market edge.
Analyse: In this stage, mangers of Whirlpool's corporation need to identify factors that
are responsible for issues and problems arising in producing products. Managers need to evaluate
such problems and come up with effective solution towards it so that an appropriate result can be
achieved in an attractive manner. Accordingly the can plan what need to do in launching their
new product in competitive marketplace.
Improve: In this stage, a manger need to come up with solution of improvement for cause
and problem that are raised in developing a product. Herein, mangers of Whirlpool's need to
produce and implement certain plan and procedures that help them to meet up standards in an
effective way so that its new product that is television can be launch with new and improved
features in it.
Control: In this stage, a proper evaluation is done by observing results and accordingly
control measure are taken to correct and prevent variations. The mangers of Whirlpool's are

assessing needs and demands of customers according to their plan to launch new product that is
television of 58 inch in competitive market.
Lean Production:
Lean production is an management tool that focus in cost with best quality of product
and services. This approach is applicable in all areas of design in production till distribution. It
main motive of this approach to maximise activities that help in given value of production
process. Their are five principles of lean production that help in increasing production efficiency
as well as it eradicates defects also.
Define value: In an organisation, first and foremost principles focus on valuing their
customer and understand what are exception of customer from organisation. The managers of
Whirlpool's corporation need to build their product and services according to customer choice
and preferences. Additionally, they are coming up with new product that is Television in their
product line to meet up future needs and add value to their customer.
Map the value stream: In this phase, marketers identify value of their product in
customer and use this value as a reference point in production of goods and services. Moreover,
eliminate it also help managers in eliminating activities that doesn't generate any kind of value.
Eventually, mangers need to focus on adding value to its new product such as attractive features
so that they can enjoy high customer experience.
Create flow: In this stage, activities are not given appropriate value with an
organisation. It main objective is to eliminate waste activities in time. For this instance,
managers of Whirlpool's corporation need to adopt best strategies which includes breakdown
structure, reconfiguration steps as this create value in an organisation.
Establish pull: In an organisation inventory is considers as one of the biggest wastage in
production process. It aims is to set limit in inventory and work in progress items so that it can be
measure with proper flow of information and material with managers of Whirlpool's
corporation. Additionally, a pull based system enables for just in time delivery and
manufacturing in which product are developed and quantifies for satisfying demands of
consumer organisation plan to launch Television in new marketplace.
Pursue perfection: This is one of the most important process which help in continuous
development and improvement in product and services. This process help mangers of

Whirlpool's in improving product and services as well as encourages employees in order to
strive best in organisation success.
Herein, both lean principles and six sigma help a respective organisation to determine their
product effectiveness in competitive marketplace. Furthermore this process help an organisation
to improve their product quality as well as bring efficiency in their offerings in competitive
marketplace.
TASK 2
Continuous Improvement: Continuous improvement is managerial accounting process of
requiring process of people at every level in an organisation that constantly looking ways to
bring efficiency, effectiveness and profitability. Moreover, both mangers and employee should
continuously focus on ways so that company can improve every facts of business.
Policies and process of cost reduction and quality improvement
In an organisation cost reduction is a process to understand in permanent reduction in
unit of cost of goods manufactured or services rendered without impairing suitability in quality
of product. Herein, an respective organisation are using various method or tools and techniques
for achieving cost reduction such as standard costing, budgetary control, specification and
variety of reduction and production planing and control.
Quality improvement should goal of every organisation. Herein, mangers of Whirlpool's
are using certain methods and techniques in improving quality such as working together as a
team to improve daily process. As improving process will increase product and service quality
and decision should be made by using factual information rather than any other process. Thus,
mangers need to investigate themselves to gather information.
P2 Analysing effectiveness of continuous improvement plan
Constraints of CIPD Principles/ Approaches Application
Quality Six Sigma Application of the different
aspects of Six Sigma allows to
improve the quality as this will
helps to identify the defects in
process. In the present case,

organisation is going to launch
new TV. As application of this
system help to built error free
process.
Cost variance One of the best principle
which help to become cost
efficient in future. Comparison
of standard and actual allows
to identify the deviations and
implementation of proper
solution.
Delivery Accountability The principle of accountability
creates responsibility upon an
department which enforce
them to ensure their product is
delivered on time.
Safety change The principle of change
enables an organisation to
change various practices and
policies within the
organisation. In the present
context, change principles can
help in bringing variation in
the safety measures in order to
improve them.
Importance of continuous improvement using lean principles:Continuous improvement plan
help to understand problems in depth to find out root cause of problem and find out an
appropriate solution to it. This process is time consuming as improvement cannot be done in one

day. The managers of Whirlpool's corporation are facing problem regarding in improving
continuous development. Herein, managers and management need to understand the potential of
an individual and distribution work according to their designation. In order to reduce such
problem from organisation managers need to encourage its employees by different methods to
improve their motivational level so that they can perform their best accordingly. Moreover,
continuous improvement is major problem that reduce an organisation growth and development.
The managers should access consumer demand and accordingly launch their new product that is
Television in competitive marketplace. Thus, it will provide satisfaction to both organisation and
consumers respectively.
Importance of technology for operation management: In an organisation technology play's an
important role as this help an organisation to remain competitive in marketplace. Herein,
mangers of respective organisation are adopting various advance tools and techniques in order to
have best feature in their development of product in marketplace of same product line.
Software used by an organisation:
Enterprise Resource Planning: Enterprise resource planning is a process that is used by
an organisation in order to manufacture, manges and integrates important part in business. This
management help mangers of whirlpool's in managing information system that consist of
planning, purchasing, inventory, sales, marketing, finance and human resource management.
Supply chain management: Supply chain management is a process of management that
flow good and services and includes all process of transform raw material into final product and
services. This process is adopted by mangers of whirlpool's as it represents efforts by suppliers to
develop and implement supply chain that are as efficient and economical as possible. Thus,
supply chain covers everything from production as information systems needed to direct such
undertakings.
New product development: New product development is consider to be preliminary step
in product and service development as well as involves number of steps that is completed before
introduction of product in marketplace. Herein, mangers are developing new T V in competitive
marketplace in order to establish their brand image in high competitive marketplace.
Customer's relationship: Customer's relationship refers to principles, practice and
guidelines that an organisation follow in interacting with customer's. Herein, a respective

organisation encompasses direct interaction with customer's such as sales and services related
process . Thus, this process help in forecasting and analysing customer's trends and behaviour.
Process of reducing defects
Total quality management: Total quality management is a continual process of
defecting and reducing as well as desalinating errors in manufacturing in product process. This
process is adopted by mangers of Whirlpool's in improving customer's experience and ensuring
that employees are trained in an effectively manner. This process is considered as continual
improvement of business operation as it ensure all associated employees to work towards
common goal in improving product and procedures that are placed in production function.
kaizen: The concept of kaizen is a process that help in improvement in productivity as a
gradual and methodical process. These process is adopted by mangers of Whirlpool's which
ranges wide variety of ranges and ideas. As this process involves in making the work
environment more efficient and effective by creating a team atmosphere. Thus, it help in
reducing effects as well as improving everyday procedures and ensuring employees satisfaction
Process re- engineering: In business process re engineering it aims in cutting down
enterprise cost and process redundancies. It is methodology and technique that aim of becoming
for efficient and more modern. This process help a respective organisation to bring out
incremental result from regular process updates by redeveloping company's goals and
continuous improvement. Moreover, taking a decentralised process of making one person
responsible for it.
TASK 3
P3 Evaluating stages of Product Life Cycle
Product-life-cycle is one of the succession strategics by business management in which
product passes through definite path and steps and such step are defined as product-life-cycle. In
this process a product passes through different stages of life-cycle. The mangers of Whirlpool's
corporation aimed to expand its market share by launching new product that is Television in
marketplace and focusing on upper class income people. Thus, product-life-cycle plays an
important role in an organisational development because with this process they can complete