Operations and Project Management - Hotpoint

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

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 

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). 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

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.

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

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 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.
• 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).

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 electric Heating make strategies and methodologies for so that firm can grow. There are not any proper theories which create effectiveness on the PLC (Caniëls and Bakens, 2012). There are some factors and strategies that create effect on PLC. The benefits of PLC Model which Hotpoint can gain by its new product are explaining by certain factors they are following:

• Decision Making- Hotpoint is going to manufacture a new product and the manager of the company help in decision making to remove problems and provide solution related to manufacturing and other process by PLC model. It help in PLC's stages to remove problems and provide solution which are helpful for the growth of the company. The decision making process have some points such as investigate the situation,develop alternatives, evaluation of alternatives and select one and implement and monitor the decisions which help in make plan for the manufacturing the product.
• Developing strategies- Hotpoint can use different strategies on every stage of PLC model for development of the product. It can use advertisement and promotional methods to make familiar its product which can help the company in increasing sales and profit. If the company in introduction stage it can use different channels of advertisement and marketing which help in the sales of the product.
• Cost saving strategies- Hotpoint can use many cost saving strategies for reduce the expenses and production cost. It can negotiate with the supplier and prepare a budget which can help in reduction in the cost which is required for the PLC model. It can save in introduction stage like they can advertise its product by web add, On TV and word of mouth etc. Hotpoint can reduce cost by providing good quality product, here it can use Six Sigma Theory for launching the product. This help the company to attract the customer increase sales and earn more profit.
• Forecasting- Foretasting is related to the future that in future any particular product in which stage. It is based on past analysis. It is a planning tool for the business and by using it the company can make plan for its business. The manger of Hotpoint can make plan and strategies for the future of the TV so that it can not face more hurdles in the market and the custom are not face problems related the products (Fenn and et. al., 2012). PLC Model play a good role in attracting the customers, increasing sales and provide profit to the company. For doing all this, it includes some strategies like marketing channels and development strategies, pricing methods and techniques and promotional strategies. If Hotpoint applying all these, it provide more profit and benefits through the new product which they have decided to manufacture.

CONCLUSION

In this report it is concluded that, the operation management is playing a good role in the business during the time when a company going to manufacture a new product. It create high level efficiency within the organisation because it provide good services which are effective for the company. Appropriate theories and concepts are properly explain in the report for the new product launching. Six sigma methodology and lean principle are clearly define for the marketing and production. Product life cycle is describe for examine the product promotion, analysing growth, maturity and future declining of the product. Effectiveness of the PLC model is also describe through theories, consents and models. These strategies can be cost reduction, forecasting, decision making and developing strategies which are beneficial for the company. If you are Looking for the Assignment Help services in UK contact Instant Assignment Help, We offer all types of Assignment help services for UK students.We have the best writer who can solve all your educational problems at a reasonable price.

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