Improving Business Operations through Quality Management Techniques: A Case Study of Unilever

This report discusses the best practice techniques, analytical frameworks, and quality management approaches used by Unilever to enhance business effectiveness and improve operations. It critically evaluates the effectiveness of these approaches and synthesizes quality management techniques for improving effectiveness in the company. The report provides a case study of Unilever, a manufacturing company that produces consumer goods and numerous brand name foods, personal care items, and cleaning products.

Business Operations

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Analysing best practice techniques that were used in organisational business operations......1
2. Application of two analytical frameworks that were commonly used by managers in
manufacturing company in order to enhance business effectiveness. Justification of suitability
.....................................................................................................................................................3
3. Critical evaluation of quality management approaches that can be applied for improving
effectiveness of operations in manufacturing company and rational for usage...........................6
4. Synthesising quality management techniques for improving effectiveness in company and
justifying rationale.......................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The term business operations could be delineated to harvesting value from assets that are
owned by a venture. It comprises activities in which an establishment engage in day to day basis
for the purpose of increasing organisational values addition to earn a profit. It entails all the
things that a firm carry out in day to day aspect to keep running together with make money. It is
centre of a firm that oversees numerous functions and act as mechanisms for control (Barnes
2018). Operations of enterprise strategically manage resources of a venture, makes processes
smoothed along with streamlined. Aim of the report is to testify knowledge of application for
best techniques so to enhance business operations effectiveness. For the report, considered
business organisation is Unilever which manufactures or produces consumer goods and
numerous brand name foods, personal care items addition to cleaning products. Headquarters are
situated at London, UK since 1929. The entity has agreement to sale on Amazon so to enhance
sales of beauty lines addition t personal care offerings.
The report discusses best practice techniques of company and two analytical frameworks
used by managers for enhancing effectiveness of venture. It also critically evaluates quality
management approaches and synthesis quality management techniques for improving
effectiveness of business operations.
MAIN BODY
1. Analysing best practice techniques that were used in organisational business operations
Best practice technique is a method which has been accepted as superior to any type of
alternative as it generates superior results against other means due to having standard way to
perform operations (Butner and Ho, 2019). It means finding addition to using best ways of
working for attaining business objectives effectively. In context to Unilever, best practice
techniques assist managers to keep up to day with actions which successfully business operate.
These are significant for processes which workforce require to work correctly. Best practice
techniques which are employed by managers of Unilever in business operations are analysed
below:
Quality management: In business operations, quality management is used to oversee all
activities as well as tasks which are to be accomplished for maintaining desired service
excellence. Operational managers of Unilever use quality management so to deal with satisfying
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expectations of consumer on quality of offerings. The practice technique of the company entails
quality standards in processes of operations for satisfying quality requirements of product
(Chahal and Et. Al., 2020). For instance, Unilever applies threshold of defects as well as related
issues in manufacturing operations. The practice helps in maintaining high productivity of
operations and application of corporate standards together with local standards in practices to
achieve desired excellence.
Supply chain management: Operational managers of company uses supply chain
management in business operations to ensure that supply chain supports strategies of the
company. In Unilever, consumer good supply chain is automated. The practice technique results
in higher operational productivity as managers emphasise variations in demand and supply of
products in the target market.
Scheduling: The practice emphasises intermediate and short-term agendas for using
resources. For human resources, practice of scheduling is used by operations managers for
addressing requirements in regional additional to local consumer goods. In this, regional
operational managers of the business implement as well as adjust schedules on the basis of
regional market situations. The best practice technique of Unilever makes it flexible to meet the
satisfaction of target consumers that contributes in high operational productivity.
Maintenance: In a company, operational managers carry out practices for attaining high
reliability together with stability of processes in strategic decision area. Within Unilever,
managers maintain redundancy measures for the purpose of ensuring process capacity in the
situation of demand sudden at peak. In operational management of Unilever, flexible scheme is
involved which permits certain degrees of movement of staff members in facilities. For instance,
superiors of Unilever assigns designated personnel to various functional units for sufficient
capacity addition to productivity at the time of fluctuations in demand in the market.
Furthermore, use of the best practice technique addresses operational issues by regularly
monitoring, evaluation together with solving problems (Dincer, Hacioglu and Yüksel, 2018). It
has dedicated and committed teams having proficiency to preventively executing solutions which
keep operations in highly productive manner.
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2. Application of two analytical frameworks that were commonly used by managers in
manufacturing company in order to enhance business effectiveness. Justification of
suitability
In aspect to Unilever, two analytical framework used by managers to enhance business
effectiveness are as applied:
SWOT analysis of Unilever-
SWOT analysis is a framework used to determine strengths, weakness along with
opportunities and threats of a company (Hazen and Et. Al., 2018). This analysis helps an
organisation to enhance its operational effectiveness by developing its strengths, grabbing new
opportunities from market to enhance its business operations, making essential measures to
overcome weaknesses, etc. in context of Unilever, SWOT analysis is determined in order to
enhance its business effectiveness which is below-
Strengths Weaknesses
 Unilever operates in approx 190
countries worldwide by having a global
footprints in mind sets of its customers
across the world.
 This company has a broad list of
products including home care, personal
care, vitamins&minerals, food and
beverages etc.
 Research and development unit of
Unilever is strongly developed while
contributing in new innovation of
products in market in order to attract
potential customers to achieve
sustainability in long run.
 Unilever products are easily imitable by
its competitors in market.
 Unilever has a limited diversification in
business in spite of having a vast list of
products in market. Company only
operates in providing fast moving
customer goods which impacts in
attracting a segment of customers in
market.
 Unilever is highly dependent on its
retailers in market. This impacts in
company's performance in market as its
customers has a direct interaction with
retailers and their behaviours might
hurt them sometimes resulting in
decrease in sales of products of
Unilever.
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Opportunities Threats
 Growing demand of organic products is
an opportunity for Unilever to attract
more customers by producing organic
based products in their wide portfolio
of products.
 The company also has an opportunity
to diversify its business operations by
entering into an another industry apart
from customer goods industry (Kapur,
Kumar and Verma, 2018).
 Imitation of products is a threat for
Unilever as its products can be easily
imitated by other companies operating
in market.
 Increasing number of competitors in
market is also a threat for Unilever as
many well established companies
operating in other industries are
diversifying their businesses in
customer goods industry.
 Growing popularity of organic products
in market is a threat for Unilever as it
can break its customer cycle.
VRIO analysis-
VRIO analysis is a framework used by managers of a company to analyse performance
and value of its resources and capabilities in comparison to its competitive advantage in market.
Management of Unilever adopts VRIO analysis in motive to determine its resources or
capabilities with its competitive advantage. This analysis helps management of Unilever to make
essential strategies in order to enhance performance of its resources in order to increase business
effectiveness.
Resources/
capabilities
Valuable Rareness Imitable Organisation Competitive
advantages
Financial
resources
YES YES YES YES Strong
competitive
advantages
Products YES NO NO YES Sustainable
competitive
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advantages
Human
resources
YES YES NO YES Strong
competitive
advantages
Distribution
network
YES YES NO NO Sustainable
competitive
advantages
Valuable- Unilever's financial resources are highly valuable as these resources helps
company in investing activities that arise outside an organisation. Products of Unilever are highly
valuable resources for company as it helps in generating profits by satisfying needs of its
customers in market (Paul and Et. Al., 2021). Human resources of Unilever are valuable as
employees of this company are well trained and high skilled which impacts in creating more
productive outputs for company. Distribution network of Unilever is valuable as they works
effectively in reaching more and more consumers by providing quality goods in order to sustain
in market.
Rareness- Unilever's financial resources are rare to be found with other companies of
customers goods. Human resources of Unilever is also rare to be found as this level of high
skilled employees are hard to found in case of other firm. Distribution network of the
manufacturer is also rare as competitive rivals would require a lot of investment to build this
level of distribution network (Russell and Taylor, 2019).
Imitable- Financial resources of Unilever is hard to imitate as company has built it with
with a prolonged profits generated over a long time.
Organisation- Financial resources of Unilever are well organised as it helps in
combating threats, utilizing opportunities that arise, etc. Product lists of Unilever is also
organised to satisfy needs of customers depending on home care, beauty products, food
Beverages, etc. distribution network of Unilever is organised in such a way to ensure availability
of its products in market.
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3. Critical evaluation of quality management approaches that can be applied for improving
effectiveness of operations in manufacturing company and rational for usage
Quality management is the act of ensuring all activities and tasks are performed in such a
way that are required to maintain a desired level of excellence (Schell 2021). Quality is a vital
element that aids an organisation in differentiate a company from its competitors. This
essentially involves determination of approach for measuring quality, plan its assurance,
maintain controls over it and improve products as per pre-decided plans. Various approaches can
be adopted by managers of Unilever to improve the effectiveness of their operations are
discussed below:
 Lean production is a methodology used by manufacturing firms which is essentially
focuses on eliminating wastes and defects. Although it is principally used in
manufacturing but it is applicable to all sort of organisational processes. This approach
can benefit Unilever in generating more sales as it primarily focuses on knowing what a
customer wants, and then eliminating any waste in production process that is needed to
provide that. According to Slack and Brandon-Jones (2018), it has been evaluated that
Unilever can adopt this technique as it has various diversified segments of different
products to (Slack and Brandon-Jones 2018). It would help company in keeping a quality
check over its business operations as well as aids in reducing wasteful activities in
production process. However, any kind of discrepancy in this process can put a halt on
business operations as there are limited machines to reduce wastage so labours cannot
perform their tasks in case of breakdown of types of equipment. Just-in-time (JIT) is an inventory management strategy that aids an organisation in
aligning raw material orders directly from distributor with manufacturing schedules. This
practice can benefit Unilever in cutting storage or warehousing cost because
manufacturers got raw material only at the time of production. As per.... it has been
evaluated that Unilever can implement this approach in its practice as it will aid
businesses to operate with less working capital and can use those funds elsewhere. With
less stock, there are less chances of them become obsolete or out-of-date. However,
company is at risk of out-of-stock as a result it cannot fulfil consumer demands timely. If
Unilever adopt this practice, it has to rely on timeliness of suppliers and should maintain
reliable as well as strong relationship with them.
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 Six sigma is a statistical and data-driven process used by businesses to eliminate defects
as well as improve its operations especially in mass production of standardised goods
(Swaminathan and Deshpande 2020). It allows discrepancy or error in production process
to a limit of 3.4 occurrences per million units or events. It uses a problem-solving
framework which is referred as DMAIC- define, measure, analyse, improve and control
to keep a quality check on products. Its implementation can benefit Unilever in
optimizing its processes in order to decrease waste which further enhances efficiency of
operations. As per....it has been evaluated that successful implementation of six sigma
technique can help Unilever in identifying and providing recommendations for
anticipated problems. However, through adoption of this technique Unilever can face
rigidity and bureaucracy in its operations. This approach has a variety of complicated
changes which can be resisted by employees.
4. Synthesising quality management techniques for improving effectiveness in company and
justifying rationale
Quality management techniques aids an organisation in ensuring a balanced array of
objectives that meet different needs of all stakeholder related to business. This technique ensures
in developing the business with alignment of well-versed and set goals aids in monitoring as well
as evaluating business's performance. This practices also play a central role in keeping customer
satisfied through clarifying their needs. Quality management system is not something which is
just established but never addressed again, it must be continuously improve in alignment with
different needs of business (Vyakina 2019). Various quality management techniques in context
to Unilever, adopted by its managers in order to increase effectiveness of company's operations
are as follows: Consolidating quality control data- Quality control is application of methods which
determines whether stored data meet overall quality goals and identify qualified area for
individual value. Unilever deals in diversified segments having differential products it
should consolidate detailed quality check reports in order to identify hotspots and high-
risk parts of company as well as take timely actions. Supply chain performance- These includes extended supply chain activities which are
needed to meet consumer requirements such as product availability, on-time delivery etc.
If Unilever make supply chain visible to its stakeholders it would result in compliance,
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sustainability and collaboration of various activities which in turn enhances productivity
of business.
 Approaches based on supplier performance- Unilever can adopt quality management
system in an efficient manner as it can capture differential information about its supplier's
performance. It further helps company in consolidating and presenting that information in
easy way which will aids it in create a risk profile for every distributor (Wallace and
Webber 2017). Consistence in quality and compliance standards- Unilever can use quality management
techniques for being consistent in providing quality assurance of products and
compliance of pre-determined standards. Establishing a clear procedure- It is important for Unilever to critically identify and
evaluate its various suppliers before adding them to their source network. Company can
implement standardised process for auditing of new suppliers which will aid them in
timely delivery of raw materials as well as fulfilling customer demands. There are various
customizable and ready-to-use templates are available for recording information
regarding quality management, company can use that. Provides e-training materials- Unilever can implement quality management techniques
effectively in order to deliver high-quality, sustainable and safe product to its customers
which in turn increase brand awareness in the market. It can also provide e-training and
educational materials to access different suppliers in order to ensure that requirements of
target market are consistent and contribute to increase brand loyalty and attain
competitive advantage in market.
 Drive sustainability and transparency- Unilever can implement effective quality
management techniques in its business practices which benefits it developing transparent,
sustainable and environment- friendly sourcing of supplier. Through efficient quality
control system, it can aim in enhancing customer satisfaction towards its brand.
CONCLUSION
From the report, it is summarised that business operations assist in effectively managing,
controlling addition to supervise products and people of company. It integrates range of elements
into individual package which scales for attaining changing needs of enterprise. Best practice
techniques that are commonly used in organisational operations are quality management, supply
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chain management, scheduling and maintenance. Quality management approaches that can be
applied for improving effectiveness of operations of enterprise are lean production, just-in-time
and six sigma. Quality management techniques entails controlling practices together with the aim
of ensuring that offerings fits for purpose. Some of quality management techniques for
improving effectiveness in company are consolidating quality control data, supply chain
performance, approaches based on supplier performance, consistence in quality and compliance
standards, establishing clear procedure, e-training materials, drive sustainability along with
transparency.
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REFERENCES
Books and Journals:
Barnes, D., 2018. Operations Management. Macmillan International Higher Education.
Butner, K. and Ho, G., 2019. How the human-machine interchange will transform business
operations. Strategy & Leadership.
Chahal, H., and Et. Al., 2020. Operations management research grounded in the resource-based
view: A meta-analysis. International Journal of Production Economics. 230. p.107805.
Dincer, H., Hacioglu, Ü. and Yüksel, S., 2018. Strategic design and innovative thinking in
business operations. Series: Contributions to Management Science. Publisher: Springer
International Publishing.
Hazen, B. T., and Et. Al., 2018. Back in business: Operations research in support of big data
analytics for operations and supply chain management. Annals of Operations Research.
270(1). pp.201-211.
Kapur, P. K., Kumar, U. and Verma, A. K., 2018. Quality, IT and Business Operations (pp. 332-
335). Springer.
Paul, S. K., and Et. Al. 2021. A recovery planning model for online business operations under
the COVID-19 outbreak. International Journal of Production Research, pp.1-23.
Russell, R. S. and Taylor, B. W., 2019. Operations and supply chain management. John Wiley
& Sons.
Schell, J. M., 2021.Private equity funds: Business structure and operations. Law Journal Press.
Slack, N. and Brandon-Jones, A., 2018. Operations and process management: principles and
practice for strategic impact. Pearson UK.
Swaminathan, J. M. and Deshpande, V., 2020. Responsible Business Operations: Challenges
and Opportunities (Vol. 10). Springer Nature.
Vyakina, I., 2019. Security of business operations and supervisory functions of the state as
characteristics of the business environment. Journal of Advanced Research in Law and
Economics (JARLE). 10(44). pp.1696-1705.
Wallace, M. and Webber, L., 2017. The disaster recovery handbook: A step-by-step plan to
ensure business continuity and protect vital operations, facilities, and assets. Amacom.
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