Operations and Project Management in Unilever: A Case Study

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OPERATIONS AND PROJECT
MANAGEMENT
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Contents
LIST OF FIGURES..........................................................................................................................................4
INTRODUCTION...........................................................................................................................................5
PART 1.........................................................................................................................................................6
OPERATIONS AND OPERATIONS MANAGEMENT....................................................................................6
OPERATIONS MANAGEMENT PRINCIPLES...............................................................................................6
OPERATIONS MANAGEMENT IN UNILEVER.............................................................................................8
CONTINUOUS IMPROVEMENT IN UNILEVER...........................................................................................8
SIX SIGMA................................................................................................................................................8
LEAN PRINCIPLES.....................................................................................................................................9
IMPROVEMENT PLAN............................................................................................................................10
EFFECTIVENESS OF IMPROVEMENT PLAN.............................................................................................11
RECOMMENDATIONS............................................................................................................................13
PART 2.......................................................................................................................................................14
BUSINESS CASE......................................................................................................................................14
PROJECT PLAN.......................................................................................................................................14
PROJECT INITIATION..........................................................................................................................14
PROJECT PLANNING...........................................................................................................................14
PROJECT EXECUTION.........................................................................................................................15
PROJECT CLOSURE.............................................................................................................................15
WORK BREAKDOWN STRUCTURE..........................................................................................................16
GANTT CHART........................................................................................................................................17
EFFECTIVENESS OF PLC..........................................................................................................................18
IMPORTANCE OF PLC.............................................................................................................................18
COST REDUCTION METHODOLOGIES.....................................................................................................19
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SMALL PROJECTS AND LARGE PROJECTS...............................................................................................19
EVALUATION OF PLC..............................................................................................................................19
CONCLUSION.............................................................................................................................................21
REFERANCES..............................................................................................................................................22
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LIST OF FIGURES
Figure 1: Unilever Logo................................................................................................................................4
Figure 2: PDCA Cycle..................................................................................................................................11
Figure 3: Project Life Cycle.........................................................................................................................14
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INTRODUCTION
Operations management can be defined as the function which is performed in organizations for
managing the different operational activities that are being conducted. It is one of the most crucial
management as it allows a firm in gaining higher efficiency in the operations that are being performed
(Reid and Sanders, 2015). It is essential for a firm to manage its operations so that they can manage
their operations by ensuring the highest efficiency form the resources that have been employed.
Unilever is a UK based consumer goods organization which was established in the year 1929 and is
currently headquartered in London, UK. The firm is known for providing products ranging from about
400 brands and serves it to 2.5 billion customers worldwide (Unilever, 2019). Of the different product
brands that are provided by Unilever, the most known brands are Dove, Lipton, Knorr, Axe, etc. Unilever
operates in 190 countries and holds a strong operational cycle across the globe. It is a world-leader
seller of household goods and one of the most valuable and oldest companies in the UK.
Figure 1: Unilever Logo
[Source: Unilever, 2019]
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PART 1
OPERATIONS AND OPERATIONS MANAGEMENT
Operations can be defined as the business activities that are performed by an organization to meet its
objectives. It includes the acquisition of raw materials that are acquired by the firm and all the activities
are undertaken to convert the raw materials into finished goods, through the sale of which the objective
of the organization can be fulfilled (Mahadevan, 2015). Operations management, on the other hand, can
be defined as the concept through which the operations that are directed in a business can be managed.
Operations management ensures that the operations of an organization are effectively performed and it
could maximize the profitability through the same.
Operations include the activities which transform the raw materials into actual products which would be
sold in the market. Operations management includes all those activities through which these operations
can be efficiently managed and are completed on time so that the business objective can be achieved
(Khanna, 2015). Though operations and operations management are closely related, it is essential to
understand the different activities they conduct so that clarity between the operational areas can be
maintained.
OPERATIONS MANAGEMENT PRINCIPLES
Unilever is a multinational organization and has its operations spread across 190 countries in the world.
It is essential for Unilever to make use of operations management so that it can ensure higher returns
from all the operations that are conducted by the firm worldwide (Holweg et al., 2018). There are
various principles of operations management that have been adopted by Unilever, which have been
described in the following:
 Reality
This principle helps Unilever in focusing upon the main problem instead of concentrating upon
the techniques which have been adopted.
 Organization
This principle helps Unilever in coordinating all the activities that are performed worldwide so
that the ultimate motive is gained and consistent profits can be achieved by the organization
(Eyers and Naim, 2019).
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 Humility
Through this principle, the managers of Unilever are able to eliminate the activities based upon
trial and error basis so that the costs and time invested in operations can be saved.
 Success
This principle of operations management allows Unilever in defining what success would mean
in the organization and through which activities can that be achieved (Eyers and Naim, 2019).
 Quality Control
The principle of quality control allows Unilever in managing the quality of products that are
being provided to the customer so that their satisfaction level can be maintained in the market.
 Managed Passion
This principle of operations management helps Unilever in managing the passion that the
employees of the firm carry so that it can be directed towards the goal of the organization
(Holweg et al., 2018).
 Accountability
Through the principle of accountability, the managers of Unilever are able to set rules and
regulations which would be determining the set of goals to be achieved in a specified period and
define the level of accountability for its performance among the employees.
 Causality
This principle of operations management helps Unilever in eliminating the root cause of
problems which have been constantly occurring due to a common source (Eyers and Naim,
2019).
 Change
Through the principle of change, Unilever is able to implement innovative ideas through which
the firm is able to adapt to the changes in the organization as well as the business environment.
 Collaborating with customers
This principle of operations management allows Unilever in developing a better understanding
of the needs of the customers and then developing a product according to the same so that
higher profits can be gained (Holweg et al., 2018).
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OPERATIONS MANAGEMENT IN UNILEVER
There are various objectives of Unilever which are assisted for completion by the operations
management performed in the organization. Operations management helps Unilever in gaining overall
productivity in the activities that are performed through which the objective of Unilever of increasing
the productivity of its operations can be achieved (Corbett et al., 2017). The process of operations
management also assists Unilever in creating a positive impact over the society by optimally utilizing the
resources that have been acquired for the development of products and performing their commitment
to managing the environmental impact of their operations. Having operations in numerous countries,
operations management allows Unilever to maintain the satisfaction provided to the customers by
maintaining the quality of products and benefitting the society by development of customer trust over
the brands of Unilever. Operations management also helps Unilever in managing the money that is
invested in the operations which allow Unilever in relishing higher profitability over their products by
minimizing the cost of operations (Slack, 2018).
CONTINUOUS IMPROVEMENT IN UNILEVER
The philosophy of continuous improvement states that it is essential for a firm to improve it
continuously so that it can stay updated by the frequent changes in the business environment and gain a
competitive benefit in the market (Khanna, 2015). The concept of improving continuously is based upon
a Japanese concept known as Kaizen which allows Unilever is continuously seeking new ways of
improvement of the operations that are performed in the organization.
Continuous improvement helps Unilever in developing or renovating the practices used by the
organization for performing its operations. This process also allows Unilever to continue satisfying their
customers by improving the quality of products provided to them and providing them with increased
efficiency of the products (Mahadevan, 2015). Using the philosophy of continuous improvement also
helps Unilever in adapting to the requirements of business and use innovative measures through which
their productivity of operations can be increased. This also helps Unilever in maximizing their profits and
productivity from operations.
SIX SIGMA
Six Sigma is a method used by organizations for controlling the quality of the products by minimizing the
possibilities of defects. The concept of Six Sigma is used in Unilever for improving the production cycle
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by minimizing the occurrence of defects and reducing the time for completion of a production cycle.
Through this method, Unilever is able to maintain and improve the quality of the products that are
provided to the customers for consumption (Atmaca and Girenes, 2013). Six Sigma has allowed Unilever
in emphasizing on the statistical improvement of its business by making decisions in relevance to the
data which is collected and use the statistics in determining the key areas which would increase the
quality of its products. Six Sigma method establishes a statistical benchmark based upon which the
quality of products is to be maintained and is evaluated. Through this, Unilever is able to reduce the
number of defects through its manufacturing process.
LEAN PRINCIPLES
Lean management is a process which is adopted by the organizations to minimize the wastage which is
generated through the operations of the firm and continuously improving them so that higher efficiency
can be gained from them (Jasti and Kodali, 2015). There are various principles of lean which have been
adopted by Unilever, which have been described in the following:
 Defining Value
This principle of lean allows Unilever in determining the value which is to be provided to the
customers, which can be done through interviews, discussions with customers, etc.
 Identifying the Value Stream
Through this principle, Unilever is able to determine the activities through which the value can
be provided to the customers and defining the activities through which value can be added to
the customers (Corbett et al., 2017).
 Creation of Flow
Through this principle, a flow is created by Unilever so that all the operational activities can be
carried out without any disruptions and deferral.
 Establish Pull
Through this principle, Unilever is able to ensure that the right amount of inventory is available
while performing the operations so that the process is continued and the right quantity of
products are provided to the customers (Jasti and Kodali, 2015).
 Seek Perfection
Once it is ensured by Unilever that customers are being satisfied by performing the above
process, it safeguards the process by pursuing perfection in the act6ivities performed by them
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so that the satisfaction provided to the customers can be increased and the costs incurred in the
operational process can be decreased (Eyers and Naim, 2019).
IMPROVEMENT PLAN
Following is an improvement plan for the operations management principles which are adopted by
Unilever:
Principles Improvement Required Activities for Improvement Duration
Reality In various cases, Unilever is not able
to clarify the main problem and
loses the focus from the problem
and emphasize the techniques.
Problems are to be identified
by understanding their root
causes (Oakland, 2014).
1 Week
Organization Unilever is not able to gain similar
results from different operations
performed internationally.
Unilever is required to
streamline all the activities and
determine the loopholes in
gaining overall efficiency.
3 Weeks
Humility Unilever is required to use the trial
and error method in certain areas of
operations to determine the level of
efficiency provided by it (Krajewski
et al., 2013).
Unilever can look at the
practical implications of the
specific operations to reduce
the cost incurred due to the
process of trial and error.
2 Weeks
Success The objectives of success are not
clarified among the employees and
thus cause areas of confusion
among them.
Employees are required to
clarify the main objective of
their operations and should be
motivated to achieve their
perspective of success.
3 Weeks
Quality Control While trying to gain efficiency in all
the products that are manufactured
by Unilever, the quality of certain
products is negatively affected.
Higher quality control
measures like Six Sigma, Lean
manufacturing, etc. shall be
effectively implemented
(Rowbotham et al., 2013).
4 Weeks
Managed
Passion
Employees of Unilever have been
focusing more upon obtaining their
The objectives of the
employees shall be streamlined
2 Weeks
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individual objectives than that of the
organizations.
and directed towards the
objective of Unilever by
adopting appropriate measures
of motivation.
Accountability Adopting accountability by Unilever
creates a situation of
competitiveness among the
employees.
Employees of Unilever shall be
delegated with the
responsibilities of conducting
operations and shall develop
teamwork so that competitive
feeling can be eliminated.
1 Week
Causality Managers of Unilever are facing
similar types of problems frequently
(Oakland, 2014).
The root causes of these
problems are to be identified
so that they can be eliminated
from the operational process.
2 Weeks
Change Employees of Unilever are not highly
adaptable to change and prefer
using the same techniques of
operations.
Unilever is required to conduct
training and development
programs to train employees of
the latest technologies of
operations through which their
work would be reduced and
higher efficiency can be gained.
2 Weeks
Collaboration
with Customers
Unilever is not able to determine
the needs and requirements of
customers efficiently (Rowbotham
et al., 2013).
Unilever must adopt
appropriate research and
development procedures
through which its estimates
regarding the requirements of
products by customers can be
efficiently determined.
3 Weeks
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EFFECTIVENESS OF IMPROVEMENT PLAN
There are various measures through which the efficiency of the improvement plan made for Unilever
can be determined. In the following, the PDCA cycle has been applied through which the efficiency of
the improvement plan made for Unilever can be examined:
 Plan
In this stage, the problems that are occurring for the implementation of the improvement plan
of Unilever shall be identified (Johnson, 2016). Once the problems would be identified, Unilever
can design a plan using different strategies through which the problems in an improvement plan
can be eliminated.
 Do
Through this stage, Unilever would be doing what has been planned by the managers in the
planning stage of PDCA cycle. In this stage, all the activities would be performed through which
effect of problems impacting the improvement plan can be diluted.
 Check
In this stage of PDCA cycle, the operations manager of Unilever would check the implementation
of the strategies performed in the Do stage of the cycle (Gidey et al., 2014). Any problems that
are occurring through that stage would be identified and their s9olutions would be determined.
 Act
In this stage of PDCA cycle, the solutions for deviations arising in the Check stage of PDCA cycle
would be acted upon. Through this stage, the standardized goal of operations would be
performed (Johnson, 2016).
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