Key Approaches to Operation Management in Nestle

This article discusses the key approaches to operation management in Nestle, including total quality management, lean production, and just-in-time. It also explores the roles of leaders and managers in managing operations and improving efficiency. Additionally, it highlights the importance and value of operation management in achieving business objectives and the factors that affect decision making in operation management.

Management and Operations

INTRODUCTION
Operation management refers to managing the entire functions of a company, which
includes planning and controlling the production process etc. Nestle is the leading nutrition,
health and wellness company which is headquartered in UK. It is one of the largest company in
the world. Managers and leaders are the biggest assets of this organization, that play crucial role
in managing operations. In this article, different roles of leaders and managers are evaluated key
approaches to operation management. Also, importance and value of operation management and
factors affecting the business environment in achieving business objectives.
MAIN BODY
Key approaches to operation management
Different operation management approaches help in analysing the situation of the
organization and in taking actions accordingly. Most popular approaches are stated as below:-
Total quality management: It is a method that aims at improving the quality and
performance of the organization which will help in meeting with the customer requirement. This
can be done by implementing high quality features and procedures in the organization
(Fernandes and et.al, 2017). Nestle considers all quality measures at each stage of production
which includes development, pre-production and post production. Applying TQM approach in
operations, helps this firm in maintaining the quality and also the price of the product and
services. Managers and leaders plays a key role in managing the quality of the product.
Lean production: It is an approach to management that aims at reducing the waste and
cutting down the cost while ensuring quality. In this approach, management cuts out activities
that do not add any value to the organization and minimizing the unnecessary movement of
people around the organization (Rashid, and et.al, 2018). The managers and the leaders takes
relevant steps to make the employees aware of the efficient use of resources and to reduce the
wastage. This method improves the productivity of the employees and helps Nestle in
minimizing its cost.
Just in time: It is an effective strategy under which production is done based on demand.
The aim of this system is to eliminate unnecessary cost and non-profitable activities (Lai and
Cheng, 2016). It helps in making the system more flexible and also reduces the cost related to
carrying and handling the inventory which makes the process just in time. Nestle has effectively

implemented this system and it also takes care of its machines and equipment to obtain the
desired output.
Role of leader:
 To design and execute strategies.
 To maximize the productivity.
 To analyse the risk present in the current market situation and take actions to minimize
those risk (5 Management Traits of an Operations Manager. 2020).
 To increase the productivity of the employees of the organization and enhancing their
potential. To analyse the needs of the employees and motivating them to improve performance.
Role of manager:
 To implement right processes and practices across the organization.
 To procure and manage the resources as per the requirement.
 To look after the activities with the desired output to be completed on time.
 To administer the budget created for each area and to regularly monitor the expenses to
avoid any extra cost (Natter Elisabeth, 2019).
Improving the efficiency of operation management
It is clear from the above that manager and leader plays a significant role in the operation
management of the Nestle. This relationship between leader and manger helps in meeting the
desired output and also helps in optimum utilization of resources and at full capacity. The
expectation of the consumers and the needs of the employees are analysed effectively and proper
planning is carried out as per the current market scenario. If there is a disagreement among the
employees, managers and leaders with their problem solving ability can sort out the issue and
tries to maintain harmony among the employees.
Importance and value of operation management
Operation management plays an important role in achieving business objectives and also
it adds value to the organization in achieving desired goals. Some of its importance are stated
below.
Product Quality: Operation management helps in maintaining the quality of the product
and services. Product quality takes into account two aspects which are durability and reliability.

Nestle has enforced proper quality management process which helps in effective delivery of its
products and services on which consumers can rely upon.
Customer satisfaction: Providing good experience to the customers increases the
customer satisfaction level. Quality management ensures that customers need are met. Operation
management provides a procedure which is required to be followed to create a desired consumer
product (Innocent and Deo, 2018). Nestle understood this importance carefully and has
implemented it in such away that will help in achieving the organizational objectives.
Increasing revenue: With the successful implementation of product quality and
improving customer satisfaction, it will lead to a positive impact on the organization. If
customers are satisfied with the product and services of the organization then it will turn out to
be an positive impact on the organization. It will increase the sales and revenue of the
organization. Nestle is taking advantage of this, as it has always made efforts to satisfy its
customers with its quality products and services.
Waste reduction: It is one of the most important part of operation management. This
includes lean manufacturing system, which will help in reducing waste and also just in time can
be used which will help in managing the inventory cost. Nestle has already introduced these
approaches in its operation management system. It has helped in eliminating the waste and
unnecessary cost and also helps in improving the overall production system of Nestle.
Factors affecting operation management and decision making
The objectives that are set to be achieved by the organization through its operational
functions are affected by the variety of factors. Some of them are stated below.
Financial position: The financial factor is very important one in operation management.
Nestle has a strong financial position which helps managers and leaders in making strategic
decisions with respect to the budget available to carry out the plan. As executing the new
operation plan in an organization requires huge amount of investment and it is only possible if
organization is having sufficient financial resources. Currently, financial position of Nestle is
good so this factor will have less negative effect on its operation.
Technological changes: This factor is a significant part of every organization. Whenever
new technology emerges, it becomes important for managers and leaders to predict the market
and future changes which will help in reducing the negative impact on the business (Al-Tit,

2017). Nestle has tried to adopt relevant technologies which would add value to its business
operation.
Availability of resources: Resources is the most important factor that affects the
operation management and decision making process. Resources related to both human resources
and raw material which are used in the production process. To achieve the targets Nestle
provides effective training to its workers to improve their productivity. Also, managers of this
firm focus more on optimum and effective utilization of its resources which helps in reducing
waste. Thus, availability of resources play key role in decision making process.
Supply chain of the organization:It is commonly known as the distribution channel. The
supply chain of Nestle is good but it requires more improved and first class supply chain and
needs high quality linkage with its farmers and the customers. Nestle takes care of its farmers
and ensures that they receive fair price for their work and in turn demand supply of quality
coffee. So, supply chain is a very crucial factor for Nestle.
Effect of factors on business environment
All the above factors affect the business environment in some way. It also includes the
employees, customers, suppliers, society etc. having interest in the business operation. Any
negative effect on the businesses will also affect these stakeholders. The relationship between
manager and leader is to take care of employees and also the objective of the Nestle. The roles
and responsibility of manager and leader is to analyse the market and take proper decisions. If
financial position of the organization is not good then it will be difficult for the organization to
undertake any new product, also lack of availability of resources and inefficient supply chain
will make the situation even worse.
Critical evaluation of application of operation management
There are various application of operation management and the factors are having both
positive and negative impact on business environment. These factors are resources, technology,
cost, quality etc. which are required to be evaluated regularly based on which strategic decisions
are taken. These factors help in creating value for the organization by satisfying the customers. It
helps in strategic decision making which results in accomplishing organizational objectives. But
on the other hand, it also has some drawbacks like it may be time consuming process, delay in
decision making etc. It may also lead to wastage of resources if any wrong decision is taken or
environmental analysis is gone wrong.

CONCLUSION
From the above discussion, it can be summarized that operation management is one of
the important function of a company. There are different approaches to operation management
which are having its own advantage and Nestle has implemented these system in its operation
management which has helped in bringing efficiency and increasing productivity. Along with
this, there are different roles played by managers and leaders in Nestle which helped in
enhancing its performance. After carefully analysing the factors impacting the business
environment, it will help Nestle taking right decision about the organization's growth and
profitability.

REFERENCES
Books and journals
Al-Tit, A. A., 2017. Factors affecting the organizational performance of manufacturing
firms. International Journal of Engineering Business Management. 9.
p.1847979017712628.
Fernandes, A. C., and et.al, 2017. Supply chain management and quality management
integration. International Journal of quality & reliability management.
Innocent, M. and Deo, S., 2018. Importance of production planning and control in a restaurant.
Lai, K. H. and Cheng, T. E., 2016. Just-in-time logistics. Routledge.
Rashid, R. A., and et.al, 2018. LEAN PRODUCTION SYSTEMS IN THE WORKPLACE. e-
Academia Journal. 6(2).
Online
5 Management Traits of an Operations Manager. 2020.[Online]. Available
Through:<https://elearning.scranton.edu/resource/business-leadership/5-management-
traits-of-operations-leaders>.
Natter Elisabeth, 2019. The Role of an Operations Manager. [Online]. Available
Through:<https://smallbusiness.chron.com/role-operations-manager-14234.html>.
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