Detailed Analysis of Unilever's Operational Management Report

This report provides a comprehensive analysis of Unilever's operational management, focusing on inventory management, production systems, and the application of lean methodologies. The introduction sets the stage by highlighting the significance of operations management within a manufacturing context, particularly for a company like Unilever. Task 1 critically appraises Unilever's inventory management, discussing its importance, the technologies employed, and the challenges faced, such as excess inventory. The report then illustrates the key operations within Unilever's production system, presenting a logical operational flow. It identifies two critical points where the organization's delivery system may fail to align its operational performance measures, such as lack of strategic focus and leadership support. Furthermore, the report discusses the role of the lean approach in the production system to gain potential and minimize failures, emphasizing continuous improvement, respect for front-line workers, and lightweight leadership. The key findings highlight the benefits of the lean approach for the production system, contributing to improved efficiency and reduced waste. Overall, the report provides insights into the strategic decisions and operational practices that contribute to Unilever's success.

Operational
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
Critically appraise how well the inventories or assets within the production system are
currently managed. ......................................................................................................................1
Provide a detailed illustration of the key operations involved within Unilever production
system presenting a logical operational flow...............................................................................2
Identifying the two points where the organisation delivery system may fail to align its
operational performance measures..............................................................................................4
Discussing the role of lean approach in production system to gain potential and minimize
failures .........................................................................................................................................5
Identifying the key findings that examine to which lean approach is beneficial for production
system..........................................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Operation management is the crucial function within the manufacturing unit. Operation
management is connected with inventory management that ensures the stock availability. This
affect the systematic and uncertain situations due to occurred the higher cost for the business.
Present study will be based on Operation management in the context of Unilever company which
is the leading manufacturing unit situated in United Kingdom. Further in this report. Researcher
outline about the brief about the inventory production system of the company also detailing the
key operations involved within the chosen production system which is been presenting a logical
operational flow. Further the study also explains about the lean approach and its effectiveness in
the production department. It will be identifying the key findings and discussing the extent to
which the lean approach chosen for the benefit for the company. Overall, study will presenting
logical operational flow chart in order to communicate the operational activity of Unilever
production management.
TASK
Critically appraise how well the inventories or assets within the production system are currently
managed.
Inventory management is the most important function in the manufacturing companies.
The main purpose of this function is to maximize the inventory policies and achieve the optimal
inventory outputs *(Denhardt and et.al., 2018). Successful inventory management is the
systematic positioning and leading material task in order to sustained the work opportunity and
gain. Inventory management involves comparison between the costs associated with keeping
inventory versus the benefits of holding inventory system goals.
Basically, the primary function of the inventory management is to make the best deal
trade between the costs associated with keeping inventory versus gaining holding inventory.
Besides, that inventory management also responsible for assuring the availability of required raw
material in the stores. Inventory management within Unilever secure their assets or inventories
extend beyond basic reorders and stock monitoring the end to end process to measure the
business success (Famiyeh and et.al., 2018). This helps to lead the time and success for the
company forecasting to metrics, reports and even accounting.
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In account of Unilever it is the most leading manufacturer of consumer goods which has
been implemented Terra Technology demand sensing inventory technology to gain the solution
across the Europe in order to get the highest success. It deals with high success to better efficient
supply chain, contributing to significantly improved the better effective results and outcomes.
This technology is the key to success of Unilever who effectively managed the overall system
and leading opportunity within the management (Gomez-Exposito, Conejo and Canizares, 2018).
Apart from that there are huge issues that has been faced by the Unilever from past times. Such
as Too much Inventory those chargeable and taxable. It would affect the less systematic gain and
operational activity task. Another issue with Unilever faced was inventory redundancy. This
happened due to proper ensuring the available inventory and the manager get ordered the
inventory four to five times. This issues have been faced by the company is past years due to
improper systematic technological support.
Provide a detailed illustration of the key operations involved within Unilever production system
presenting a logical operational flow
Unilever operations management is ensuring the responsibility of high keeping
productivity throughout the global organization of the consumer goods business. Operation
manager develop the new strategies and process to achieving the higher performance in the 10
strategic decision pertaining to operations and productivity. Unilever operational performance
are easily manageable and give support to financial performance. In order to present the logical
operational flow Unilever, consider some of the leading strategic tools and areas of developing
the new strategies and tactics. Such as design of goods and services.
Basically the use of logical operational flow chart is to control the system or the direction
of the system. It will help to manage the work opportunity and manage systematic logistic work
opportunity. Besides that, it better consider the long lasting result and manage the work
opportunity and gain (Qu and et.al., 2016).
Unilever operation management follows the strategic decision area operations managers
deal with satisfying the consumer expectations on product quality. However, In order to
satisfying the customer needs and satisfaction is the foremost quality of management that
better contains the quality management and need to develop the new measures to focus on
the effective management task. For example : These operation management standards are
derived from Unilever market that grows the business following activities. These operations
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management standards works out for the best following matter that also take help from
better activities
Process and capacity Design : The objective of operations management in this strategic
decisions area is to ensure adequate resources and develop processes to support production.
Unilever applies robotics and automation of the production processes under its control
(Arvis and et.al., 2016). For example : Unilever adopts the automation in the production
system in order to produce the home care production system that helps company to
maintained the consistency in quality. Operation management needs to be make sure the
proper and demand accordingly they set the range of supply. For that, operation manager of
Unilever adjust the production capacity to address the seasonal fluctuation in demands.
Along with that, it generate high demanding channel of effective distribution and following
different aspect of work opportunity.
(Source : Doppelt, 2017)
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Illustration 1: Logical Flow Chart

Identifying the two points where the organisation delivery system may fail to align its
operational performance measures.
The company strategies must have integrated goals to focus on the operation performance
management process (Doppelt, 2017). It helps to gain profitability and get the good outcomes
from the study. In other words, operation management is the process or activity that mainly focus
on the the best in the business it requires the best management task and fruitful to make the better
understand the logical performance and gain the different opportunities for the better
performance out goals. Effective operation management strategies will help to lead sustaining
performance management. On the other side, Performance measures that effectively drive
performance improvement. In order to prevent failures and leading opportunities company
should need to focus on the evaluation process that better help to regain the study outcomes and
leading opportunity. Effectively manageable and growing business opportunity is the best source
and outcomes to deal with the different challenges. There are some different types of
performance metrics such as (KPI Key performance Indicators) it helps to measure the effective
measuring performance and if individual goals are being achieved.
There are given some three situation that identify the failure in operation performance
management.
Lack of Strategic focus : Lack of strategic focus defines that the company does not
fulfilling its target with efficient manner. A well designed process begins with focus which
comes from the positive environment and though process. But due to so many projects and goals
of the company take employees confused which leads to unmanaged outputs. This is the firm
reason that cause failure and mismanagement at Unilever.
In order to get over from this issues, Unilever can distribute the work or prioritize the
work as according to the goals of the company (7 Reasons Performance Management Fails And
How To Fix Them, 2015). Then it has been clear that how much study needs to be focused on the
system and growth to measure actual needs. Lack of strategic focus can cause the quality
measures and desired product or services.
Lack of Leadership & Support : Leadership is the foremost support that each and every
employee wants to get from their seniors. Leadership share the long terms experience of an
individual that helps to other subordinated in critical situations. Operation management is the
most critical process of manufacturing industry that generally work in the systematic way. But
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on the same side, due to lack of leadership support employees get demotivated and reduce their
work efficiency. This direct impact the operation performance that could also fail the whole
production process. It has been analysed that, Lack of leadership support is the point that become
the reason of project failure in Unilever (7 Reasons Performance Management Fails And How
To Fix Them, 2015). In order to regain the level of employees motivation. Unilever should need
to exhibit the expected behaviours and actions because without the involvement if productive
leaders operation management will not be performing well and get the project aims and
objectives.
Lack of Stakeholder Review : This is the third reason of failure of operational
performance management or in which chances of loss is high. It affect the overall system that
indirectly affect the whole system of the organisation. At the time of planning the product design
Unilever should take consideration of Stakeholders (Chang, 2016). Without proper engagement
and planning it would not be possible to get align the production process management.
Discussing the role of lean approach in production system to gain potential and minimize failures
Lean manufacturing is the systematic procedure to align the all operation management
objectives and aims. This systematic approach enable to utilizes the production or manufacturing
resources in the best possible manner to gain advantage and profitability. The main purpose of
this techniques is to reduce the wastage of raw material during the production or manufacturing
system with satisfying the quality as well (Grant, 2016). Generally, Lean management mainly
taking into consideration while the companies found the wastage of material which directly
affect the quality of product or services. Therefore, Lean approach work systematically and
adding value to the management system. Such proper systematic environment manage the all
other processes which helps in reducing the confusion and mismanagement goals.
Methodology of lean approach is to minimizes the ratio of wastage and also eliminate
unnecessary activity in within the production system.
Importance of Lean Approach for operational system
Continuous system : Lean Approach enable to eliminate waste and creates value for the
production process. That helps Unilever to get the productive product outcomes. In other words,
lean methodology helps employees to focus on other activities that automatically helps to
optimizing the more value for the customers (LEAN METHODOLOGY, 2019). This
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methodology will help Unilever to remove the failure of lack of focus. Better it can help
company to focused on the target and make the best product or services.
Respect for Front-line workers : In every organizations all the decision of the company has
been taken by the top management and then followed by the other levels (.Punjaisri and Wilson,
2017). But In the methodology of lean approach initiate to take participation of every person in
the decision making process of the company. This process or method encourage the motivation
level of the employees that can also helpful to reduce the failure of lack of support of leaders.
This process would help company to gain the advantage in terms of getting the respect from their
employees.
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Illustration 2: Continuous Improvement
(Source : LEAN METHODOLOGY. 2019)

Front-line workers are the only individuals who closely work with operation
management. In that case they would have given some productive thoughts and idea to the
management. So that, it has been analysed that lean approach allows Unilever to get the best
ideas from the workers and make them satisfied with the company goals.
Lightweight Leadership : Promote the voice of leaders around the organisation inventor is one
of the most productive thing that supports the organisation objectives. Leadership are the most
essential assets for the company that holds the all activities and ensure the systematic work
running between the all departments (Harrison and et.al., 2016). Lean leadership is better defined
what needs to be done or what not to be done. The best part of leadership is they analyse the
critical situations and know how to resolve the issues well. However, it has been found from the
lean methodology that Lean approach is best optimizing the people, resources, efforts and energy
of the organization. Lean approach also define the importance of stakeholder and its
participation.
From the above all aspect of the lean approach has been concluded the importance of
operation management and how lean methodology can remove the all issues of operation
performance such as lack of focus, lack of leadership and lack of stakeholder review. This
management systems will help to motivate the leading systematic performing task to gain the
better advantage (D’Andreamatteo and et.al., 2015).
Identifying the key findings that examine to which lean approach is beneficial for production
system.
Finding 1:
Business environment is highly challenging and dynamic in nature that constantly affect
the systematic performance of the company and it performance. In order to meet the challenging
demand and customer requirements. Unilever should need to amend some productive changes in
their product design. In order to develop the efficient product or services. Unilever should also
need to be focus on the operation management system. In order to initiate the project into the
competitive level company need to adapting new productive operation program such as Total
Quality management system (TQM), Just in Time (JIT), Total productive system (TPS). All such
techniques are the system of operation management through company can manage their
production system effectively.
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It has been found that, Lean is considered an essential attribute of a successful
manufacturing project. It better help to gain the systematic and challenging business task to
better understand the aim and objectives to be more conclusive and leading. In other words, lean
management consists some specific tools that simply remove the production failure issues and
helps in improving the overall operational performance system (Secchi and Camuffo, 2016). This
might have includes the systematic work performance and gain the productive outcomes.
Findings 2:
It has been found by the second findings that how much lean is beneficial for the
operational management system. Lean approach also beneficial for risk management because
management organisation is full of uncertainties and threat. Lean approach helps to reduce the
negative impact of all such uncertainties and give the best aid to sustain the situation. The main
purpose of the lean management is to align the leadership, strategy, commitment within the
organisation by also creating the value for the company as well. There are huge advantage by
applying the lean management (Garza-Reyes, 2015). The reason of implementing the lean
approach is high quality, minimize wastage, increased flexibility, reduced manufacturing cost
and increased customer satisfaction. There are different lean approaches or operation approaches
are there but the best and productive approach is lean methodology. It affect the systematic form
of system that somehow affect the systematic goals and services.
Findings 3:
It has been found from the study of lean management approaches is that there are various
roads towards lean management through company can align the effective operation management
system such as Line integration, One peace flow, line balancing, value stream mapping,
standardisation. All such process and plan is beneficial for the organisation and systematic
performance. It has been observed that by applying the lean approach Unilever can
approximately gain different outputs such as
Reduction in work in progress by 70%
Reduction of throughput time by 90%
Reduction of floor space with 75%
Lean six sigma is the another approach that company can implement in their system
which focuses on elimination of variation by examine the the main reason and cause for this
variation (Zhou, 2016). This method/approach is also known as Statistical Engineering.
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It has been analysed that all such techniques and approach can help to align the effective
management for the performance management. Also, all defined lean approaches can helpful to
generate and align the performance measures that. For example : Lean Approach fulfill the
strategic objectives of the Unilever and provides the best product output. However, the system of
the lean production will help to continue the growth of the Unilever production system. This is
the reason that company should need on applying the lean system such as Just in Time, Six
Sigma all such techniques or ways of lean management would help company to get the
productive outcomes for the study and get the best results outcomes (Adebanjo,
Laosirihongthong and Samaranayake, 2016). It also has been analysed from the study that, lean
approaches enable to fill the gap of company production system.
CONCLUSION
Present study analysed the detailed knowledge of the concept of inventories and how
assets of the company is so important for the production. Further, the study defined the deep
knowledge of Unilever inventories and their assets within the production system. Therefore, the
study concluded about the key operations involved in the company by the help of developing
logical operational flow chart in which company presents the activities of working in the
production department with some specific techniques or system. Also report concluded and
identified the reasons due to which company fails to align the operational performance measures
by demonstrating the understanding on the topic. At the end of this section of report it has been
recommended that Unilever should need to acquire lean management approaches to manage the
production system and reduce the wastage of raw material.
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