Nestle Operations Management Process

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Nestle Operations Management Process

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Operations entail the production of a product or service and must manage the inputs to production such as workers' time, aluminum, and machine time to create airplane parts Finance manages the assets, such as the building used for production, investments and cash flows related to production, such as providing the needed machines. Marketing generates sales of the product or service, such as finding customers for the proposed airplanes. Question 5. Answer : Manufacturing organizations produce a physical product that can be stored in inventory. Service organizations cannot create an inventory of the service since it is intangible.

For example, Ford Motors is a manufacturer. It makes automobiles, customers have little contact with the operation, and they can create an inventory of vehicles. McDonalds is an example of a service organization. Customers go directly to the restaurant where they are served quickly by the staff. Question 6. How Have They Influenced Management? Answer : Three historical milestones are the industrial revolution, total quality management TQM and global competition. The industrial revolution changed production processes from a labor focus to a machine focus. TQM caused managers to be more focused on quality and preventing defects.

Question 7. Answer : The lean systems concept is a current trend in operations management. This involves taking a total system approach to creating an efficient operation. Companies are using the Internet to reach out to customers, and suppliers directly. Companies can also ease transactions between businesses, known as B2B commerce, by using electronic trading networks. Large information systems, called Enterprise Resource Planning ERP systems, are allowing companies to increase efficiency.

These large, sophisticated software programs coordinate, across the entire enterprise, the activities involved in producing and delivering products to customers. Each of these concepts makes intensive use of information and cooperation between partners. OM will most likely continue to be more information intensive and require greater cooperation among all the players in the value chain. Question 8.

Answer : Total quality management TQM is a philosophy that focuses on meeting the needs of the customer. TQM is not inspection, but actually the prevention of defects. It involves everyone in the organization. Just-in-time is a philosophy that focuses on reducing inventory and other wastes and on the production of the right number of items at the right time. Reengineering focuses on improving business processes in order to improve efficiency. Each of these techniques strives to allow more responsive and more efficient production leading to higher quality and higher customer satisfaction. Question 9. Companies can outsource steps of their operation easier. Now even service operations are outsourced off-shore.

Information technology allows companies to cooperate more closely, creating tighter supply chains, quicker response and less waste. Specific features include greater outsourcing, greater use of information technology, and deeper cooperation in the supply chain. Question Answer : In some types of organization it is relatively easy to visualize the operations function and what it does, even if we have never seen it. For example, most people have seen images of automobile assembly. But what about an advertising agency? We know vaguely what they do — they produce the advertisements that we see in magazines and on television — but what is their operations function? Any business that produces something, whether tangible or not, must use resources to do so, and so must have an operations activity.

Also the automobile plant and the advertising agency do have one important element in common: both have a higher objective — to make a profit from producing their products or services. Yet not-for-profit organizations also use their resources to produce services, not to make a profit, but to serve society in some way. Answer : Operations management is just as important in small organizations as it is in large ones. Irrespective of their size, all companies need to produce and deliver their products and services efficiently and effectively.

However, in practice, managing operations in a small or medium-size organization has its own set of problems. Large companies may have the resources to dedicate individuals to specialized tasks but smaller companies often cannot, so people may have to do different jobs as the need arises. Such an informal structure can allow the company to respond quickly as opportunities or problems present themselves. Small companies may have exactly the same operations management issues as large ones but they can be more difficult to separate from the mass of other issues in the organization.

Answer : Terms such as competitive advantage, markets and business, which are used in this book, are usually associated with companies in the for-profit sector. Yet operations management is also relevant to organizations whose purpose is not primarily to earn profits. Managing the operations in an animal welfare charity, hospital, research organization or government department is essentially the same as in commercial organizations.

Operations have to take the same decisions — how to produce products and services, invest in technology, contract out some of their activities, devise performance measures, and improve their operations performance and so on. However, the strategic objectives of not-for-profit organizations may be more complex and involve a mixture of political, economic, social and environmental objectives. Because of this there may be a greater chance of operations decisions being made under conditions of conflicting objectives. Nevertheless the vast majority of the topics covered in this book have relevance to all types of organization, including non-profit, even if the context is different and some terms may have to be adapted. What Is The Input—transformation—output Process?

Put simply, operations are processes that take in a set of input resources which are used to transform something, or are transformed themselves, into outputs of products and services. And although all operations conform to this general input—transformation—output model, they differ in the nature of their specific inputs and outputs. For example, if you stand far enough away from a hospital or a car plant, they might look very similar, but move closer and clear differences do start to emerge.

What Is The Processes Hierarchy? But look inside any of these operations. Each process acts as a smaller version of the whole operation of which it forms a part, and transformed resources flow between them. In fact within any operation, the mechanisms that actually transform inputs into outputs are these processes. Each process is, at the same time, an internal supplier and an internal customer for other processes.

It is also a useful reminder that, by treating internal customers with the same degree of care as external customers, the effectiveness of the whole operation can be improved. Archived from the original on 19 August Retrieved 26 February Retrieved 22 November Archived from the original on 12 February Archived from the original on 4 March Retrieved 30 December Retrieved 31 August Archived from the original on 28 February Retrieved 24 February Frankfurter Allgemeine Sport.

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