Role of Operational Management in Nestle

Management and operations

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................3
MAIN BODY..................................................................................................................................3
Operation management approach and roles that leaders play in an organization........................3
Importance and value of operation management.........................................................................5
Factors influencing operational management and decision-making............................................7
CONCLUSION...............................................................................................................................9
REFERENCES.............................................................................................................................10

INTRODUCTION
Operational management perform various function and activities to plan, organise,
manage, control manufacturing process of company to reduces cost and profit of company.
Operational management plays an important role in operational of business by ensuring standard
of quality product and their deliver with limited time to various customers. There are various
approached that are used by Operational management of Nestle to gain competitive position in
the market. This report explains about Nestle that is a public limited company which was
established in 1866, 154 year ago that deals in baby food, medical food, coffee and tea. It has
477 factories, 339000 employees that are working in the organisation for achievement of
company goals. This report covers about role and value of operational management in growth
and success of business. It also explained various internal and external factors that impact on
operational management and decision-making of leaders and manager.
MAIN BODY
Operation management approach and roles that leaders play in an organization
Operation management is a practice of various business activities that takes place within
an organization and producing the products according to the needs of the consumers. It is done to
create the highest level of efficiency within an organization (O’Neill, Sohal and Teng, 2016). It
includes utilizing resources from raw material, staff, technology and equipment’s which is
enhancing an organization to fulfil its goal. Operation management is important to improve the
productivity of the organization.
Approaches used in operation management are as follows: -
Business process redesign
Business process operation is a process which is used to measure the performance of the
organization on the basis of return on equity, quality of services and cost return. Its main
objective is to restructure the organization according to their customer needs. Nestle has been
restructuring its products according to their customer needs, that is the reason nestle products are
available in every home.
Six sigma
Six sigma is a technique or tool used in operation management to eliminate the errors,
reducing cost and saving time. The statistical representation of data shows the performance of
nestle. Regarding six sigma company can take guidance from outside consultants. Every