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Operations Management of Cadbury

Question :

Operation management is defined as a part of organization who is responsible to manage and design various manufacturing process of an organization. Its main objectives are to reduce business cost and generate high profitability, Cadbury is a British Multinational confectionary organization which was founded by John Cadbury in 1824 and now wholly owned by Mondelez International since 2010. You are asked to meet required criteria applied by customers in evaluating satisfaction which means order-winning and order-qualifying criteria. You should include:

  • Explain the principal operation tasks to satisfy required criteria.
  • Evaluate process strategies and activity of employing to ensure that task is successfully carried out.
Answer :
Organization Selected : Cadbury

INTRODUCTION

Operations management refers to build an appropriate design to manage and control various production processes of company. It is considered as an administration of business strategies which are supportive to generate highest level of efficiency of an organisation to complete objectives successfully (Anbari,2018). This can be explained as concern that deals with criteria of converting raw material into finished goods to satisfy needs of customers properly and improve profit maximisation of business. It includes to make more effective as well as efficient strategies to conduct different operational activities in proper manner to manufacture goods or services as per needs, wants and demands. People expect better quality of product to fulfil their requirements at reasonable rates then company can provide such favour to them through designing and controlling overall operational procedures in an appropriate way. The team of operations management out efforts in sufficient manner to balance costs with revenue  to achieving larger profitability for brand along with boosting up goodwill. Increasing brand image among customers facilitate to attract more clients along with retaining the current ones to gain more profit share of market. Operations management has an important role to observe and evaluate optimum utilisation of resources and control the wastage of the same in company that helps to reduce cost of production and save sources which are limited. There are several sector such as banking systems, hospitals, companies, working with suppliers, customers and using technology which are included in operation management. It involves certain decision making like strategy of process, design product, plan a procedure, quality maintaining, capacity, facilities planning, production and inventory control.

This report is based on Cadbury which is a British multinational confectionery company wholly owned by Mondelez International since 2010. It was founded by John Cadbury in the year 1824, almost 194 years ago. It is considered as second largest confectionery brand at global level and have effective image amongst customers. The international headquarter of this organisation is situated in Uxbridge, West London and operates in more than 50 countries worldwide. It has certain special goods for which it is mostly known such as Dairy Milk chocolate,  Creme Egg and Roses selection box and many other confectionery products (Choi,And et.al, 2013). It was established in Birmingham, England by John Cadbury who primarily provide tea, coffee and drinking chocolate to people. The number of staff members are around 71,657 who are working own regular basis in different branches of the company. This assignment will discuss about operation management practices in respect of an organisation along with distribution of departments that contribute to business for attaining desired goals. There are different sections of company are divide which complete their tasks or activities in proper manner and put efforts to complete overall mission of business. It also includes description about internal and external customers of an an enterprise and their expectations in terms of outputs (Drucker,2012). The process which are helpful to achieve objectives of operations and suggestions about changes that can be applied to improve effectiveness of the same is given below.

MAIN BODY

a) organization and what you and your department’s contribution

Description of the Organisation – Cadbury is the British Confectionery company which is introduced in 1824 by John Cadbury. Its is second largest confectionery organisation of the word after Mars. Headquarter of the firm is in Uxbridge, London, United Kingdom as well approximately 71,657 employees are working is respective organisation. There are several products in which Cadbury is dealing such as chocolates bars, bags, boxes and rolls, desserts etc.

Operation management -  It is that which involves planning, supervising procedure, organising along with this operation management make necessary improvement id the production department for higher profitability. This is the responsibility of the operation division to make ensure that production department is utilising resources in effective manner so that needs and wants of customers get satisfied. There are several objectives of the operation management department in the company such as :-

  • Major motive is to minimise the cost of producing goods or also for supplying services.
  • Maximisation of using manpower , machines and so on. Moreover, in simple term it can be said that capacity utilisation objective.
  • Operation management make sue that goods and services produced in the organisation is as per the pre-determined goals and objectives.

Contribution of operation management in the organisation :- Functions and decision which is made by operation manager in the company is related to the other functional area of the Cadbury (Harrison and Lock,2017). Although, this department contribute a lot in the working of the production department because operation management involves several models which ensure that there is no overutilisation of resources and minimise wastage. Along with it, operation department assist Cadbury in achieving their pre determined goals and objectives.

Major work of operation management is to convert raw material, manpower and machinery into finished good by ensuring that it should be as per the need and wants of customers (Holweg and et.al., 2018 ). It don't focus only on production department but also on marketing, human resource, finance and so on.

b) Different customers and their expectations in different market area. Different operation management models

Customers – It is an business and individual who buy goods and services which is produced by an organisation. Their is wide difference between customers and consumers because customers are those who purchase the goods and services it is not compulsory that they are consuming it. Whereas, the person who are consuming it is consumer. There are two type of customers external and internal. Description of these is mention below :-

  • Internal Customers : These are internal parts of the company because they are colleagues and employees of own department. In this situations, people within company play both side role sometimes they are services provider and sometimes purchase of the offerings. Cadbury is the confectionery industry company they also have their internal customers because employees of the organisation also purchase chocolate for their family, friends also. 
  • External Customers : These are mainly users of products and services, buyers and stakeholders. External customers are those who exchange their money in term of the product with Cadbury. They play major role in generating revenue and profit maximisation because without them there is no such enterprise which can survive in market.

Expectations of customers from Cadbury in broad market area – In this, when it comes to the broad market area customers expect new and innovative goods and services. That satisfy their needs and wants along with this value the money spend by them (Kerzner and Kerzner,2017). For instance, I the occasion of Valentines day Cadbury bring innovative products which satisfy their customers. Product is Cadbury chocolate and creativity in that was heart which is included in the chocolate.

Models of operation management :-   There are several operation management models which can be utilised by Cadbury for the purpose of production. Some of them are as follows :-

  • TQM (Total Quality management) – This is the model which is implemented in the operation department of the company by the motive of quality management (Kerzner,2018). TQM is the approach of management whose aim is to satisfy customers and it also assist in success of the business. Apart from this, it aids in enhancing performance of the Cadbury through maintaining quality in the operations and also by utilisation of the factors such as people, process and plan. Although, total quality management model focus on both hard and soft aspects of operation management for attaining better performance. It is important for the company to maintain quality of their offerings because when an customers is spending their hard earned money on something then in return they want product with best quality.
  • Six Sigma – It is the process which is applied by the Cadbury in their operation department with the motive of process improvement. Six Sigma strategy try to enhance quality of the outcomes by deducting or removing causes of defects, variability in manufacturing and business procedure. When six sigma project implemented in the business it follow defined sequence of steps and has it also have specific value targets.
  • Lean management – It is the systematic approach applied in the Cadbury for minimising wastage within operation department. Because it obvious that, when production take place in the department then there is chances of wastage which is reduced or eliminated by implementing lean production. In simple term, it can be said that if wastage will be eliminated then cost of products and services while production will also reduce.

Above mention are the model of operation management which assist in growth and success of the company. Apart from this, customers are get satisfied when it these models are implemented because goods produced is as per their demand. Operation management assist in achieving pre determined goals and objectives in better manner. 

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c) Processes to achieve objectives of operations

The operation management has several objectives as per nature of particular business which are required to bed complete by putting more accurate efforts (Maylor and Turner,2017). In case of Cadbury, they have various kinds of confectionery products to fulfil expectations of people to achieve their satisfaction. In business, it is important to determine certain key elements which are supportive in several aspect in improve efficiencies of business to gain benefits. There are several types of processes which are helpful to attain goals of operations which are followed by mentioned company are as follows:

Product selection and design: This includes to design right kind of goods or services as per needs and wants of customers with better quality at reasonable price. It is necessary to select correct features of product because it decides range of profits or loss for the company (Moghaddam,2011). In case of Cadbury, they focus on taste or preferences of customers due to which they manufacture goods according to their demands which converts a small tea shop into large confectionery brand. 

Process selection and planning: The procedure of production also plays an important role to to manufacture an appropriate product to render correct service to people. Similarly, Cadbury has different process of manufacturing for differentiated product which help grab more number of customers to sustain effective position in market.

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Facilities (Plant) location and layout: The pant or product is completely immobile and it is kind of strategic decision because it ensures about difficulties of transportation in order to supply finished good to different channels and collect raw material as well. Plant layout should be appropriate because it facilitates the flow of raw material which mka easy to conduct manufacturing process and reduce time as well. Cadbury has special criteria through which few of machines are installed at same place for drilling, milling, moulding packaging etc.

Capacity Planning: This can be described as to make an appropriate plan including several effective strategies to ensure march of capabilities of company to demand. In case of Cadbury, they have lead, lad and match strategy to fulfil goals of luring clients away from competitors, reduce risk of waste and improve little bit efforts to follow increase in demands.

Production Planning and Control (PPC): The planning of production and controlling is essential in terms to specifying particular system to obtain desired product in specific amount in given cost and period of time properly. Cadbury manufacture goods as per demands of customers to overcome with sudden increase in demand by effective operational strategies of organisation.

Inventory control: This refers to deal with calculating and ensuring optimal inventory levels of company that involves several factors such as raw materials, components, parts, tools, finished goods, spares and supplies (Niknam, Meymand and Mojarrad,2011). Thus, all these elements are focussed to make sure that availability with minimum capital lock up. Cadbury follow strategy of just-in-time for inventory control which helps to reduce costs, improve productivity, increase competitive advantage and boost up job satisfaction amongst employees.

Quality assurance and control: The quality of product is important factor an people want better features and maintain prime standards at minimum cost. In case of Cadbury, finished goods are checked by inspectors to ensure level of goods for quality control (Parisio and Glielmo,2013). Thus, employees of this company takes responsibility to delivering best services by examine and reducing threats at all levels properly.

Cost reduction and cost control: This refers to use an effective technique to reduce cost of production to control it so that best quality of product can be provided to people at affordable price. Cadbury use several policies such as savings in per unit cost, no compromise with prime standards and savings are non- volatile in nature.

Above mentioned processes are helpful to operations management because they provide support to manufacture best quality product at reasonable price. These activities are supportive to fulfil needs of customers by providing them prime standards of goods at affordable rates which is actually required by people. Manor goal of operational managements is to render desired features in services at low price which can be fulfilled by reducing costs of production. Hence, this requirements is complete by above discussed procedures in correct way to attain satisfaction of clients along with completing their needs properly.

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d) Changes to operations for improvement

There are several changes which are implemented in company to improve operations so that production can be done in more effective manner to complete targets properly. Due to changing trends of market, certain modifications are mandatory to be applied in an organisation.  It is important to improve efficiencies of operational departments to manufacture better goods to satisfy requirements of customers. Several changes are helpful which are recommended to Cadbury for improving operations and that are given below:

Continual Development of new product: This refers to focus on continuous development of product as per fresh trends of market because it is helpful to fulfil modified preferences of people (Pinkerton,2011). It is helpful to remain competitive in market and utilising flexible operations and systems to sell products in different channels. 

Optimize Supply Chain: The supply chain management should be effective by concentrating on inbound and outbound supply chain to gain advantages. It includes to purchase value added services, establish vendor compliance policies, reduce shipping costs, establishing vendor portals to exchange information and many more. 

Bridging the Manager Talent Gap: This can be described as to hire new managers which is helpful to reduce talent gap between senior and co- workers. It will help to maintain better coordination amongst superior and sub -ordinates which facilitates to conduct various operational activities more effectively as well as efficiently.

Cloud and Subscription Software Models: The refers to replace several systems such as OMS, ERP and WMS with expensive technology in company (Silvius,  2017).  It is quite difficult for organisation to replace old techniques because sufficient investment is required. In this case, they can utilise cloud and subscription based models to improve operations to achieve desired objectives.

The above described changes which are beneficial for Cadbury to boost up effectiveness of operational activities in proper manner to gain better goals. It is important to follow changing trends of market and manufacture  goods as per new ideas to fulfil modified requirements of customers in correct way. Several changes are necessary to be implemented for updating brand with fresh concepts to remain strong brand in competitive market. 

CONCLUSION

From the above assignment it has been analysed that operation management is that which manage overall activity of production. Along with this, it play important role in converting raw material into finished products. Cadbury is the confectionery industry organisation which mainly produce eatable products. Thus, In such type of enterprise operation department play their important role in manufacturing of goods. Respective organisation is introducing several innovative and creative products in the market which attract large number of customers as well satisfy their needs and wants. Although, by implementing operation management these goods are produced in quality. 

Above mention assignment explain that operation management is much important for company and it contributes their best in growth and success of the business. Cadbury have both internal and external customers. As well they both are necessary and play crucial role in success and profit maximisation of the business. Respective enterprise have internal buyers also because employees who are working is company also purchase chocolates for their friends as well family members. Moreover, every customer expect something from the organisation through whom they are purchasing products. Usually they want something new and innovative which must be valuing their money.  Apart from this, there are several models of operation management such as  total quality management, six sigma and lean which is applied in the business with the motive of better management of operation division.

This report is also enlighten, that operation management have various objectives and it also have their process of achieving it i.e. product selection and design, process selection and planning, facilities location and layout, capacity planning, production planning and control, Inventory control, Quality assurance and control, Cost reduction and cost control.  This is the process which is implementing in the business from ancient time but because of several new technologies and advancement there are various modification which is implemented in the business. Hence, operation management is important important of the organisation and it play crucial roles. Through which company can gain success and growth in business environment along with this customers also get satisfied by the products after implementing operation management model.

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