Operation management is generally concerned with managing various activities such as designing, producing, controlling and redesigning of entire business operations for the purpose of creating goods or services of an organisation. Operation management is essential for every firm as it helps in increasing effectiveness and efficiency in planning process. The main aim of operational management is to ensure about utilisation of available resources for achieving goals or objectives of firm (Antonio and Martins, 2012). This report is based on Haier Group Corporation as it is Chinese multinational consumer electronics company. They deals in several products such as Fridge and Freezers, Gas and Electric Cookers, washing Machines and many more. Now they are entering into the Television market. This assignment will conduct review and critiques for proper implementation and prepare a plan of operation management principles within an organisation. It define PLC and produce necessary support documentation for project completion including business case, project plan as well as work breakdown structure. In this also defined several theories, concepts and models for Project Life Cycle.
P1 Review and critique of implementation for operations management principles
Operation management can be defined as arrangements of entire activities such as initiating, preparing, implementing, controlling and evaluating of procedures for producing particular goods or services and attain predetermined goals of an organisation. It is very beneficial for every business entities because it support in building higher efficiency and create value in the marketplace (Ramos, 2012). Operation management generally refers to as the production process in which raw material converts into finished goods. Inputs includes materials, money, machines, manpower and methods that are converted into outputs for final consumptions in an effective manner.
It is essential for producing effective goods or services and get higher returns from limited inputs. Operation management support in utilising resources by managing whole activities such as designs, controls and production of the business. Manager have responsibility to allocate available funds among several activities and functions inappropriate manner. It can be helpful in identifying and analysing modifications within existing products so that better strategies can be formulate. Haier Group which is a multinational electronic company also consider several principles as manager ensure regarding implementation of plans and procedures for creating good quality of electronic items. Here are some principles of operational management that will support in making decisions regarding new product development such as;
Operation Management Principles
Reality: Operational management is a helpful tool that helps in identifying problems as it must be required to focus on issues instead of any techniques because there are no universal solutions available for particular problems.
Organisation: Operation management is related with manufacturing process so it is necessary to consider factors that must be predictable so that desired outcomes can be achieved in an appropriate manner.
Fundamentals: Manufacturing or production process is based on fundamental principles as it is very beneficial for managing several activities and maintain accurate records, necessary documents as well as disciplines within the firm (Beringer and Jonas, 2013). It also consider all available resources so that appropriate goods and services can be constructed.
Accountability: Under this principle, manager focus on setting rule and regulations, metrics as well as obligations while running business operations. In this, compare the metrics for the purpose of analyse the actual outcomes to achieve set goals or objective in an appropriate manner. It focus on analysing effective structures and make better decisions, if needed. Its main role is future forecasting by managing accounting of firm.
Variance: It is helpful in reducing costs and bringing effectiveness while running business. Manager ensure about entire activities which are managed in an appropriate manner so that innovations and creativity can be build within the firm.
Causality: This is another important principles where problems or issues are denoted and also analyse impacts of major causes so that effective solutions can be made. It is necessary to resolve such issues for avoiding its occurrence in the future.
Managed passions: In every firm, it is necessary that employees are passionate about their work and focused towards organisational goals or objectives in an appropriate manner (Kock, 2013). In the Haier Group, all staff members are motivated and passionate regarding bringing new innovative ideas or adoption of technologies to achieve set targets or desired outcomes.
Humility: Managers should avoid their limitation and move to other opportunities for acquiring knowledge and learn more. they must be ready to get better ideas or knowledge to take actions and make decisions through effective learning.
Success: In this principle, manager consider success factors which should be changed as per time period as well as grab the customers interests for a particular goods or services (Blomquist, 2010). therefore, it must be necessary to revised all principles according to situations.
Change: There are number of theories available that firm can apply to run effectively. New theories or concepts also developed for finding better solutions of any problems so, company have to accept several changes and adopt new technologies within the firm.
Six sigma is an essential which are using in improving quality of entire procedures for better operational management. It generally works to reduce errors or problems, consumption of time and costs factors so that business can be run in an appropriate manner (Brauers and Zavadskas, 2010). It is very necessary for Haier Group that to produce good quality of electronic products so that number of customers can be attracted. Its main purpose is to high to end manufacturing to maintain quality and efficiency.
Haier Group manager considered Six sigma for resolving any issues related to management, quality as well as operations. In this included DMAIC tools which explained as Define, Measure, Analyse, Improve and Control. These are as following;
- Define: It generally refers to goals, objectives, demand of customers as well as set of directions for the purpose of attaining particular tasks or objectives in an appropriate manner.
- Measure: It describe as a tool for measuring current situations, procedures, several changes during process and any requirements for future to accomplish predetermined goals.
- Analyse: In this find or identify basic problem for making decisions to solve it in an appropriate manner.
- Improve: In this determined that what kinds of improvements required for attaining such targets and also analyse modification if it is necessary.
- Control: It is an important task that must be performed in an effective manner as in this check whole process and control over the resources for meeting with desired outcomes.
This principle is also adopted and followed by Haier Group for the purpose of getting as well as generating ideas within an organisation (Fernández and Rodríguez, 2010). In this consider several elements for effectiveness such as define Value, Map value stream, Create flow, Establish pull and Seek perfection. These phases are very beneficial for providing effective guidelines to impose lean method. These are as follows;
Value: It is generally concern with particular demand of buyers in the market regarding products or services like what organisation can manufacture and deliver any good or items with effective prices.
Map value stream: This is the second stage where values stream are mapped out. In this included a process to produce appropriate goods or services by converting inputs into outputs and deliver the final goods to end users.
Create Flow: In this phase, manager create a sequence where products flow and determine its effectiveness for running smooth of business operations. This is beneficial to reduce maximum wastages and get more outputs by ensuring products flow.
Establish pull: It is a suitable method that ensure about remaining flow which are running in an effective manner without any barriers or delay.
Seek Perfection: It also helps in making sure that all flows are working in well manner without any obstacles and processes has been finished in better ways.
Hence, it is necessary for Haier Group that focus on these principles for making effective organisation and produce new products to satisfy customers needs or wants by manufacturing 58 inches Television with unique features.
P2 Prepare a improvement plan based on review and critique of operations management
For producing new products and services in any firm, it must be required to formulate particular plan and strategies as well as improve those plan so that better results can be get (Fleming, 2016). Haier Group also needs to improve planning process continuously which will support in developing effective products. It is facilitates for getting best outcomes as this is helpful in the company that to apply as well as improve plan with well manner.
Continuous improvement: It is a on going process where improvements are considered for better quality of goods and services within an organisation. These make efforts for improving particular goods in a certain time period (Koppelman, 2016). In this defined several tools or techniques to improve continuously and have a process with some phases such as Plan, Do, Check and Act which is known as Shewhart cycle or Deming cycle.
Plan: In this defined opportunities and plans as per the changes requirements.
Do: It refers to executions and implementation for changes based on scales.
Check: It provide informations regarding data utilisation and check the outcomes during changes and analyse any gap or difference between them.
Act: In this actions are to be taken if changes is not suitable and effective as per the product so it is necessary to start entire process and cycles for getting success.
In the Haier Group, it is required for designing and continuously improving plan to produce new products which is 58 inches Television such as;
For producing new product such as 58 inches TV must be in qualitative manner. There should be effective designed as well as framed so that Haier company can satisfy customers needs or wants. It is necessary to make decisions regarding quality and innovation.
Haier Group captured wide market by serving its products or services at global level (Gunasekaran, 2012). Customers are preferring to buy goods from this firm and in the case of Television, company is targeting large size of population. They are attracting huge audiences with help of managing and maintaining quality of Television which will support in meeting customers expectations.
There is required enough time for producing product and re-check it.
TV is a best electronic item that have high demand in the market (Ngai, 2012). People are looking for big size or screen Television to fulfil their desires. Customers are interested to adopt new technologies and purchase featured or smart TV. Therefore, company have to design TV or frame it more appropriate manner by determining parameters.
In this consider the effective design of TV which must be required for Haier Group. Therefore, they can conduct survey or research process for analysing the unique design for TV.
This may be critical stage for Haier company to consider this while producing TV as they required at least 8 to 10 months to design and frame any product.
It is an essential for company that support in capturing eye of consumer so packaging will support in attracting number of customers towards firm. TV must be packed in more appropriate ways to achieve best outcomes.
In this defined that the target of packaging has specified therefore, Haier company always focus on several attributes and variable for the purpose of packaging so that huge audiences can be targeted.
It is the last phase of project where manager decide about TV packaging (Lenfle, 2010). In this requires at least 6 months for proper researching or discovering.
There are defined some improvement plan for effectiveness of project because it support in determine opportunities as well as bring changes as per the requirements (Loch, 2010). These are very beneficial for the firm and contributes more such as;
- increase productivity level.
- Focus on quality.
- Cost effective.
- Provide better satisfaction to employees and motivate them.
- Decrease turnover of labour.
P3 Stages of PLC for project completion with business case, project plan and work breakdown structure
Project life cycle is usually related with new product development in which included several phases. It is a difficult task for every firm because this must be required to undertake various stages during the framing of PLC in an appropriate manner (Mir and Pinnington, 2014). Project life cycle made to accomplish goals or objectives. In this included four stages that Haier Group have to consider for their new product such as;
- Initiation or conceptualisation of project: In this defined the beginning point where project is going to start as per ideas and thoughts. Conceptualisation is very supportive in analysing the basic requirements and formulate strategies by higher authorities. In such stage, Haier company needs to identify problems or issues for providing appropriate solutions. For example, making 58 inches Television, company requires to conduct a research or survey to find best solution in effective manner.
- Planning stage: This is next step of Project life cycle as it comes after initiation. In this, manager consider a plan for the purpose of producing better goods or services in an effective manner (Pemsel, 2013). Planning is most important stage where company decide purpose, objectives, missions as well as visions of product development.
- The executions phase: In this defined the proper implementation as well as executions of plan in more appropriate manner. It is also known as action phase where plan comes into action. This step always focus on communication and make control over the project for effective implementation so that new products can be developed within the firm. Entire procedure are monitored on regular basis and also make changes whenever requires for actual plan (Wiewiora, 2013). In this process all tasks are divided among team members and they have to performed whole work as well as give progress report to leader or manager during meetings.
- Closing phase: It is the last phase of Project life cycle which describe completion of particular project. It helps in analysing the final deliverable to the targeted audiences, maintain and records all necessary documentation of project, utilisation of resources and use of communication process for providing information regarding project to the stakeholders. This phase will support in ensuring about project and its effectiveness. Therefore, project life cycle is most important tool for Haier Group as they can be develop new TV of 58 inches in effective manner.
Work breakdown structure for new product development:
It is very helpful and beneficial for organisation as they can manage and maintain every task by dividing among several members so that workload can be minimised. This structure is related with project management as well as company's system engineering (Ramasesh, 2014). It arrange entire works by allocating tasks in teamwork so that goals or objectives can be achieved. Manager use appropriate hierarchical structure for managing activities and tasks within the firm.
Gantt chart: It is defined as the graphical representations as it displays the schedule of project. This chart defines all necessary work or tasks that must be performed in a limited time period and vertical axis on horizontal locations.
P4 Review and critique the effectiveness of the PLC by using theories, concept and model
From the above data, it has been analysed that Project life cycle play an important role in every firm as it support in formulating an effective plan so that new product can be developed. In this case, Haier Group is going to produce a new product which is 58 inches Television in the market as this firm already making several consumer electronic item and selling at global level. The Project life cycle is beneficial in determining an appropriate structure to provide goods and services. it allows to entire team members to work on a particular project and define progressing with considering several activities for product development (Browning, 2014). Project manager can make synergy with progress and every phases for the purpose of project completions. It also can be determined in the project life cycle that it is very facilitate to understand as well as determined about project. This is helpful in identifying several areas which is necessary for getting attentions at various times or critical circumstances including risks management. Project manager can analyse and review of entire benefits as well as requirements with help of particular projects and also predict it accordingly in an effective manner.
Project life cycle is useful tool that helps in managing various kinds of assignment in more appropriate ways with helps of using necessary facts or figure for an organisation. Apart from these, here are defined some important benefits or advantages of project life cycle (PLC) which are as follows;
- This is an essential that support in reducing chances of mistakes, losses, errors, complexities and barriers that can be bond desired outcomes and profits of particular assignment.
- Provide appropriate directions and guidelines to employees so that they can perform their task or activities in better manner for achieving set goals or objectives in the project life cycle (Robichaud and Anantatmula, 2010). It also gets feedbacks from them and understand their views, opinions, point of views regarding project.
- This is very supportive in defining several stages to a management team so that they can conduct several activities and functions by using necessary facts or figures as well as data for accomplishing predetermined goals or objectives for particular project. Therefore, it can be said that Haier Group requires to consider project life cycle and determine needs for adopting new strategies or technologies for successful project.
From the above project report, it has been analysed that project management play crucial role in managing business operations as this is helpful in developing new product. This report is based on Haier Group which is Chinese multinational consumer electronic company and deals in Freeze, Gas, cooker and many electronic items in the market. They decided to launch new product so manager has to considered critique and reviews for implementing operational management principles and also focus on continuous improvement plan for developing new products. It also analysed the stages of project life cycle and work breakdown structure to get success in project. Some theories, concept and model also discussed here.
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