Question:
For What Procter and Gamble is known? Explain.
Answer:
Operations management studies the day to day business activities in the manufacturing context that not only emphasizes on the operations function but also considers the inputs transformed into outputs. Moreover, the study is analyzed on the organization, Procter and Gamble. This American organization is known for its operations management strategies. However, unlike other organizations, its management is vested in inventory and capacity management, supply chain management, total quality management, risk management, forecasting and the issues that it faces while expanding internationally. Nevertheless, Procter and Gamble will be studied on its global operations while focusing its interest on the innovation center in Singapore as well.
Procter and Gamble had been known for meeting customer requirements, creating business agility, ability to go to market faster and is based on cost-effective principle. This fast moving consumer good organization is termed as a global leader in foods, beverages, beauty care products and cleansing agents. The organization has been following the strategy of “Consumer-Driven Supply Network” between the supply chain as well as actual sales process so that the forecast is driven demand can lead to actual demand driven to produce customer value by offering unique propositions.
On the other hand, the theoretical frameworks that apply to the application theory in this study are followed by inventory and capacity management followed by total quality management, supply chain management, and the international issues that cause some bottlenecks in the customer network-driven approach.
The inventory and capacity management of Procter and Gamble highlight the manufacturing facility in Singapore for perfumes and the state of the art of innovation for the technologically advanced plant. P&G has been reducing its costs and shortening its time to a certain degree to maintain supply chain efficiency. Conversely, the quality management of Procter and Gamble has been implementing sustainable competitive advantage in the long-run. To achieve customer satisfaction, the organization has been building a strong culture of trust for employees with continuous improvement in performance. The supplier network has undergone an improvement in 2014 and has adopted ‘New SAP Supply Chain Control Tower Program’ with an end-to-end visibility for network common data. On the contrary, there are some global and international issues that the company is facing. The growth limitation, rigidity in changing portfolio and first mover’s disadvantage has been the key issues that Procter and Gamble faces.
Therefore, after analyzing the condition of Procter and Gamble in operations management, recommendations have been made in the present scenario while highlighting the inputs and strategies taken by the operations manager and the management systems.
Introduction
Any organization is governed by three basic functions that is finance, operations and marketing irrespective of the type of business. Operations is a part of the organization that depicts the transformation of the range of inputs into desired outputs at the required level of quality (Mahadevan 2015). Management, on the other hand, is the process in which various resources are transformed into value added services under the policies of the organizations. The inputs formulated into outputs outline the physical items/goods whereas the activities that are based on the combination of time, form or location are known as services. The ideal situation for any business is the need to match the supply and demand of the economy while avoiding costly affairs and meeting the satisfaction of the customers (Chase 2012).
Operations management leads to management of systems and processes that not only creates goods but in some business provides services as well. However, operations management is governed by various functional activities but primarily supply chain management is the consequence of the organizations through its facilities, functions and activities. The facilities and activities that a simple supply chain management and operations management will include are forecasting, quality assurance, scheduling, purchasing, inventory management, delivery, and distribution and customer services (Brown et al. 2013).
On the contrary, the organization analyzed under the operations management is Procter and Gamble (P&G) which is a known American multinational company headquartered in Ohio, United States. Its products include personal care products, cleanings agents and foods and beverages. According to the recent revenue of the organization in 2015 it is 76.27 billion US dollars which has decreased since the last year from 83.31 billion US dollars in 2014. However, in 2014, it tried to streamline its products by dropping 100 brands and concentrating on the remaining 65 brands which accounted of 95% of organization’s profits (Proctor and Gamble 2016). Although, the company P & G has broadened its horizon but it also has expanded to different countries and even acquired a few acquisitions like Shulton’s Old Spice, Max Factor, Iams, Pantene and many more. Moreover, recently it has been concentrating on restructuring its operations based on health-related divestiture. On the other hand, in 2015, the organization went in a merger with Coty, a beauty product manufacturer because its beauty division growth had been sluggish (Proctor and Gamble 2016).
The operations of the company covers wide dimension of brands, production and management. However, the sectors that it had been broadly classified its products into are beauty care, fabric and home care, health and grooming, and baby, feminine and family care. Moreover, the selling and market operations have been spread along Asia Pacific, Greater China, Europe, IMEA (India, the Middle East, and Africa) and North and South America (Reinartz 2015). However, here we will analyze its market operations majorly in Asia Pacific in the country Singapore.
Conversely, this assignment analyses the operations of the organization covering a wide theoretical frameworks that constitute in operations management of the organization. Being a global organization, it can be widely studies for its supply chain management, quality management, inventory management, risk management, waste and lean management and highlighting the various global and international issues. Nevertheless, analyzing these perspectives on the respective company Procter and Gamble will help in gaging the areas which needs to be worked in the operations domain.
Outline of the Purpose of the case study
The research has been carried out to achieve the objective of enhancing the competitive position of the organization because it proves that operations management establishes the level of quality of all the goods and services. Additionally, it helps in influencing the overall cost of production for the largest part of the organization’s human and capital expenses and it also analyses whether these goods and services are sufficient to meet the demands of the consumer (Brown et al. 2013). Moreover, it has considerable influence on cost, quality as well as availability of goods and services.
The analysis will be determined by the role of operations management in the organization and in this case, Procter and Gamble will be analyzed overviewing the specific business disciplines on different functional areas of the business. The aim of the operations management is strictly on transforming inputs into outputs without the consideration of the external environment.
The organization Procter and Gamble is considered because this organization has used diversified strategy and has evolved through international expansion. Moreover, Procter and Gamble not only realizes the agendas of practicing operations but also considers quality assurance through lower costs and eliminating delays, rework and waste such that suppliers builds the market share by serving the needs of the customers (Proctor and Gamble 2016).
Procter and Gamble had been known for meeting customer requirements, creating business agility, ability to go to market faster and is based on cost-effective principle. This fast moving consumer good organization is termed as a global leader in foods, beverages, beauty care products and cleansing agents. The organization has been following the strategy of “Consumer-Driven Supply Network” between the supply chain as well as actual sales process so that the forecast is driven demand can lead to actual demand driven to produce customer value by offering unique propositions.
On the other hand, the theoretical frameworks that apply to the application theory in this study are followed by inventory and capacity management followed by total quality management, supply chain management, and the international issues that cause some bottlenecks in the customer network-driven approach.
The inventory and capacity management of Procter and Gamble highlight the manufacturing facility in Singapore for perfumes and the state of the art of innovation for the technologically advanced plant. P&G has been reducing its costs and shortening its time to a certain degree to maintain supply chain efficiency. Conversely, the quality management of Procter and Gamble has been implementing sustainable competitive advantage in the long-run. To achieve customer satisfaction, the organization has been building a strong culture of trust for employees with continuous improvement in performance. The supplier network has undergone an improvement in 2014 and has adopted ‘New SAP Supply Chain Control Tower Program’ with an end-to-end visibility for network common data. On the contrary, there are some global and international issues that the company is facing. The growth limitation, rigidity in changing portfolio and first mover’s disadvantage has been the key issues that Procter and Gamble faces.
Therefore, after analyzing the condition of Procter and Gamble in operations management, recommendations have been made in the present scenario while highlighting the inputs and strategies taken by the operations manager and the management systems.
Introduction
Any organization is governed by three basic functions that is finance, operations and marketing irrespective of the type of business. Operations is a part of the organization that depicts the transformation of the range of inputs into desired outputs at the required level of quality (Mahadevan 2015). Management, on the other hand, is the process in which various resources are transformed into value added services under the policies of the organizations. The inputs formulated into outputs outline the physical items/goods whereas the activities that are based on the combination of time, form or location are known as services. The ideal situation for any business is the need to match the supply and demand of the economy while avoiding costly affairs and meeting the satisfaction of the customers (Chase 2012).
On the contrary, the organization analyzed under the operations management is Procter and Gamble (P&G) which is a known American multinational company headquartered in Ohio, United States. Its products include personal care products, cleanings agents and foods and beverages. According to the recent revenue of the organization in 2015 it is 76.27 billion US dollars which has decreased since the last year from 83.31 billion US dollars in 2014. However, in 2014, it tried to streamline its products by dropping 100 brands and concentrating on the remaining 65 brands which accounted of 95% of organization’s profits (Proctor and Gamble 2016). Although, the company P & G has broadened its horizon but it also has expanded to different countries and even acquired a few acquisitions like Shulton’s Old Spice, Max Factor, Iams, Pantene and many more. Moreover, recently it has been concentrating on restructuring its operations based on health-related divestiture. On the other hand, in 2015, the organization went in a merger with Coty, a beauty product manufacturer because its beauty division growth had been sluggish (Proctor and Gamble 2016).
The operations of the company covers wide dimension of brands, production and management. However, the sectors that it had been broadly classified its products into are beauty care, fabric and home care, health and grooming, and baby, feminine and family care. Moreover, the selling and market operations have been spread along Asia Pacific, Greater China, Europe, IMEA (India, the Middle East, and Africa) and North and South America (Reinartz 2015). However, here we will analyze its market operations majorly in Asia Pacific in the country Singapore.
Conversely, this assignment analyses the operations of the organization covering a wide theoretical frameworks that constitute in operations management of the organization. Being a global organization, it can be widely studies for its supply chain management, quality management, inventory management, risk management, waste and lean management and highlighting the various global and international issues. Nevertheless, analyzing these perspectives on the respective company Procter and Gamble will help in gaging the areas which needs to be worked in the operations domain.
Outline of the Purpose of the case study
The research has been carried out to achieve the objective of enhancing the competitive position of the organization because it proves that operations management establishes the level of quality of all the goods and services. Additionally, it helps in influencing the overall cost of production for the largest part of the organization’s human and capital expenses and it also analyses whether these goods and services are sufficient to meet the demands of the consumer (Brown et al. 2013). Moreover, it has considerable influence on cost, quality as well as availability of goods and services.
The organization Procter and Gamble is considered because this organization has used diversified strategy and has evolved through international expansion. Moreover, Procter and Gamble not only realizes the agendas of practicing operations but also considers quality assurance through lower costs and eliminating delays, rework and waste such that suppliers builds the market share by serving the needs of the customers (Proctor and Gamble 2016).
Theoretical Frameworks
The theoretical frameworks will provide the evaluation of the issues and concepts that are efficient in analyzing the organization selected. Moreover, this will analyze the concepts significant in operation management process.
Capacity and Inventory Management
The capacity management ensures the production of the product based on the needs of the customer requirements. According to Fredendall and Hill (2016), capacity management helps in ensuring the right resource levels that are available as well as needed under the right price. The capacity management is best used for monitoring the performance using a program analysis. The performance analysis of the program uses the information to optimize the levels of capacity. This also helps understanding the independent and the dependent demand that needs to be provided through satisfactory levels in a cost-effective manner. The capacity management is often guided by the following factors.
The level capacity management is the efficient yet popular method adopted by the organizations. In level capacity management, the capacity is assumed to be constant because of the inability to meet demand while alternatively making stocks for the future period that demand is supposed to exceed the stock. However, capacity management is caused due to the decision making problems. It can be based on finding optimal solution through capacity variables and constraints highlighting the objective or the subjective function (Krajewski, Ritzman and Malhotra 2013). It is best suited to analyze the subject advancing to simplex method of linear programming.
On the other hand, inventory management analyses the nature of the demand whether dependent or independent. There is strike difference between the two demands as dependent demand is slightly predictable but independent demand is based on the unknown future requirements of the demand as the demand would be unpredictable based on the inventory item. The types of demand that govern the inventory is based on the classification of inventory as either raw materials, work in progress (WIP) or finished goods (Vogel 2013). The goods and the type of inventory characterizes the needs of the demand whether the stock is needed to be used as a buffer for the uncertainties or as a cycle based on multiple products for operation in batches to keep enough supply. Moreover, anticipation of the increase in demand due to seasonal factors or the pipeline that can be considered for the lack of stock for the time taken to the retail outlet (Jones and Robinson 2012).
The inventory decisions are f the main concern as it involves the tradeoff between the cost of holding of the stock or ordering the inventory. Nevertheless, to prevent the stock out condition different models are considered on the inventory availability of order and timing. The three models that are considered in the process are ABC Inventory Classification System, Re-Order Point Model and the Economic Order Quantity (EOQ) Model (Relph and Milner 2015).
ABC Inventory Classification System Re-Order Point Model Economic Order Quantity (EOQ) Model
Total Quality Management
The total quality management emphasizes on continuous improvement of the production process to reduce variability and achieve conformation to specification. The total quality management analyses the quality problems like poor design and inadequate training due to machine. According to Sallis (2014), the elements that define total quality management are product quality level, statistical quality control and quality improvement. Total quality management can only be achieved if the organization takes proper prevention for cultural change and not detection and life cycle costs of the product but not the price (Oakland 2014). The only factor that leads to the prevention is only after this has occurred. Moreover, the brief effect of TQM is given as:
In an organization, the quality management is often performed by the following two quality checks that is quality control and quality assurance. On one hand, quality assurance is a systematic action taken by the organization or a business regarding the product to conform to the technical requirements through high standards or high quality feedback control. On the other hand, quality control systems include inspection of the progress of goods at each stage and monitoring customer complaints on the product. They are a type of feedback control that helps in improving the performance of the organization in future. It is mostly accompanies appraisal (Mitra 2016).
On the other hand, there are some principles and practices that are followed in every organization followed under the head of Total Quality Management. They are given as:
• Leadership
The top management of the organization should realize the importance of quality with the involvement and commitment of CQI (Cost Quality Improvement). The business strategy undertaken should be in par with quality excellence lead in the implementation process. The success of the organization will be dependent on the training and empowering of the work environment, learning from problems, improving communications and encouraging collaboration than competition (Belasen, Eisenberg and Huppertz 2015).
• Customer Satisfaction
The customer satisfaction should be followed based on the total experience of the organization such that the quality systems and practices should be responsive with the changing customer expectations (Sallis 2014). Moreover, the strategy of quality should be primarily based on retaining and attracting new customers.
• Continuous Improvement
The continuous improvement is only done when the work is viewed as a complete process of inputs and outputs. The continuous improvement can only be favorable for increased customer satisfaction if its process improvement. The basic improvement can be done by reducing resources, meeting expectations of downstream customers, reducing errors, making process safer and making process more satisfying than the person (ReVelle 2016).
• Employee Improvement
The employee in an organization is an asset to the organization. The employee improvement/ involvement is possible based on knowledge and training of the employee (Hislop 2013). There are different motivation as well as incentive schemes that could help in reviving the conducive right attitude, work culture and environment in the organization.
• Supplier Partnership
The supplier partnership holds to be important before the quality management as 40% of the production cost comes from the purchased raw materials. On the contrary, long-term purchase contract is beneficial as it involves supplier management activities while defining different product requirements that involves statistical evidence of quality, supplier’s certification (e.g. ISO 900) and developing and applying supplier quality ratings (Al-Abdallah Abdallah and Hamdan 2014).
• Performance Measures
The performance measures highlights the effective management had been achieved. Moreover, the measures that will be helpful in analyzing the performance are by identifying potential projects, service errors, and inventory and delivery issues. The cost of poor quality outlines the performance measures that needs to be undertaken so that there is no internal/ external failure and prevention and appraisal costs (Al-Abdallah Abdallah and Hamdan 2014).
Supply Chain Management
Supply Chain Management is a given set of approach that not only integrates suppliers, manufacturers, warehouses and stores so that the supply is redeemed at the right quantities and right locations but also minimizes the system wide costs (Min 2015). However, supply chain management leads to several understandings – firstly, every facility used in supply management has effect on cost and makes it efficient enough to conform to customer requirements. Secondly, the supply chain management aims to be cost-effective as well as efficient in the entire system whether it is system wide costs or transportation and distribution which needs to be minimized. Nevertheless, the emphasis is not only on the minimization of the transportation cost or inventories but also on the systems approach to supply chain management (Christopher 2016).
The level capacity management is the efficient yet popular method adopted by the organizations. In level capacity management, the capacity is assumed to be constant because of the inability to meet demand while alternatively making stocks for the future period that demand is supposed to exceed the stock. However, capacity management is caused due to the decision making problems. It can be based on finding optimal solution through capacity variables and constraints highlighting the objective or the subjective function (Krajewski, Ritzman and Malhotra 2013). It is best suited to analyze the subject advancing to simplex method of linear programming.
On the other hand, inventory management analyses the nature of the demand whether dependent or independent. There is strike difference between the two demands as dependent demand is slightly predictable but independent demand is based on the unknown future requirements of the demand as the demand would be unpredictable based on the inventory item. The types of demand that govern the inventory is based on the classification of inventory as either raw materials, work in progress (WIP) or finished goods (Vogel 2013). The goods and the type of inventory characterizes the needs of the demand whether the stock is needed to be used as a buffer for the uncertainties or as a cycle based on multiple products for operation in batches to keep enough supply. Moreover, anticipation of the increase in demand due to seasonal factors or the pipeline that can be considered for the lack of stock for the time taken to the retail outlet (Jones and Robinson 2012).
The inventory decisions are f the main concern as it involves the tradeoff between the cost of holding of the stock or ordering the inventory. Nevertheless, to prevent the stock out condition different models are considered on the inventory availability of order and timing. The three models that are considered in the process are ABC Inventory Classification System, Re-Order Point Model and the Economic Order Quantity (EOQ) Model (Relph and Milner 2015).
ABC Inventory Classification System Re-Order Point Model Economic Order Quantity (EOQ) Model
Total Quality Management
The total quality management emphasizes on continuous improvement of the production process to reduce variability and achieve conformation to specification. The total quality management analyses the quality problems like poor design and inadequate training due to machine. According to Sallis (2014), the elements that define total quality management are product quality level, statistical quality control and quality improvement. Total quality management can only be achieved if the organization takes proper prevention for cultural change and not detection and life cycle costs of the product but not the price (Oakland 2014). The only factor that leads to the prevention is only after this has occurred. Moreover, the brief effect of TQM is given as:
In an organization, the quality management is often performed by the following two quality checks that is quality control and quality assurance. On one hand, quality assurance is a systematic action taken by the organization or a business regarding the product to conform to the technical requirements through high standards or high quality feedback control. On the other hand, quality control systems include inspection of the progress of goods at each stage and monitoring customer complaints on the product. They are a type of feedback control that helps in improving the performance of the organization in future. It is mostly accompanies appraisal (Mitra 2016).
On the other hand, there are some principles and practices that are followed in every organization followed under the head of Total Quality Management. They are given as:
• Leadership
The top management of the organization should realize the importance of quality with the involvement and commitment of CQI (Cost Quality Improvement). The business strategy undertaken should be in par with quality excellence lead in the implementation process. The success of the organization will be dependent on the training and empowering of the work environment, learning from problems, improving communications and encouraging collaboration than competition (Belasen, Eisenberg and Huppertz 2015).
• Customer Satisfaction
The customer satisfaction should be followed based on the total experience of the organization such that the quality systems and practices should be responsive with the changing customer expectations (Sallis 2014). Moreover, the strategy of quality should be primarily based on retaining and attracting new customers.
• Continuous Improvement
The continuous improvement is only done when the work is viewed as a complete process of inputs and outputs. The continuous improvement can only be favorable for increased customer satisfaction if its process improvement. The basic improvement can be done by reducing resources, meeting expectations of downstream customers, reducing errors, making process safer and making process more satisfying than the person (ReVelle 2016).
• Employee Improvement
The employee in an organization is an asset to the organization. The employee improvement/ involvement is possible based on knowledge and training of the employee (Hislop 2013). There are different motivation as well as incentive schemes that could help in reviving the conducive right attitude, work culture and environment in the organization.
• Supplier Partnership
The supplier partnership holds to be important before the quality management as 40% of the production cost comes from the purchased raw materials. On the contrary, long-term purchase contract is beneficial as it involves supplier management activities while defining different product requirements that involves statistical evidence of quality, supplier’s certification (e.g. ISO 900) and developing and applying supplier quality ratings (Al-Abdallah Abdallah and Hamdan 2014).
• Performance Measures
The performance measures highlights the effective management had been achieved. Moreover, the measures that will be helpful in analyzing the performance are by identifying potential projects, service errors, and inventory and delivery issues. The cost of poor quality outlines the performance measures that needs to be undertaken so that there is no internal/ external failure and prevention and appraisal costs (Al-Abdallah Abdallah and Hamdan 2014).
Supply Chain Management
Supply Chain Management is a given set of approach that not only integrates suppliers, manufacturers, warehouses and stores so that the supply is redeemed at the right quantities and right locations but also minimizes the system wide costs (Min 2015). However, supply chain management leads to several understandings – firstly, every facility used in supply management has effect on cost and makes it efficient enough to conform to customer requirements. Secondly, the supply chain management aims to be cost-effective as well as efficient in the entire system whether it is system wide costs or transportation and distribution which needs to be minimized. Nevertheless, the emphasis is not only on the minimization of the transportation cost or inventories but also on the systems approach to supply chain management (Christopher 2016).
Logistics Network
The importance of supply chain management involves the supply related activities like movement, storage and control of product through supply chains that minimizes costs and eliminates inefficiencies but is strictly not a cost reduction paradigm.
The Global Supply Chain Forum identifies all those activities that are necessary to make up the length of the supply chain management with functional areas of marketing, research and development, finance, production, purchasing and logistics (Sürie and Reuter 2015). The key processes that a supply chain management operates in are –
• Customer relationship management
The management operates on the structure of maintaining relationship with the customer. The management targets the customer and customer groups as a part of business mission.
• Customer service management
This deals with the process of single sourcing to the customer through product availability, order status or shipping details. The real time information is provided to the customer through different interfaces with the functions of the organization such as logistics and manufacturing (Hollensen 2015).
• Demand management
The demand management balances the customer need with supply capabilities of the production to synchronize with production, distribution and procurement. It is majorly about forecasting and synchronizing plans, objectives, market share, trade inventory and market research (Van Rensburg 2013).
• Order fulfilling
The order fulfilling is the fundamental to effective supply chain management. The organization needs to develop partnerships with the key members to meet the customers’ needs and requirements.
• Manufacturing flow management
The manufacturing flow process needs to establish the ability as well as flexibility to serve the target markets (Estampe et al. 2013).
• Product development and commercialization.
The product development is developing new product quickly and getting them to the market place through a continuous process that is effective and efficient. It means to develop right products through successfully launched time frames to remain competitive in market (Hollensen 2015).
Global and International Issues
Global operations management is the new reality for the companies as the target markets extend outside the geographical area which makes the companies to experience difference cultural influences. As a result, there are different challenges that needs to be faced with different operations functional in different countries when building for high performance teams or responding to problems. The international issues that are generally faced by an organization are:
• Diverse Values – The operations of different countries leverages the skills and knowledge of workers in each location such that the operations management does not include the diversification in values. As a result, the communication results in failure, decision making will be at its odds and the probability of unsolved issues will increase. On the other hand, cultural sensitivity highlights that awareness training could be weak substitute to be embedded in the culture. However, awareness seems to be a one sided issue for only headquartered managers and executives (Price 2011).
• Communication Shift – When the operations expand to different location with different time zones it becomes highly difficult for the operation to be executed at the same time as the timings in headquarters. The direct conversations are impossible due to irregularity in the direct observations (Khanna and Palepu 2013).
• Compliance and Regulations – When operating in different economies, the product is governed by different rules and regulations such as the tax laws, statutory export regulations, import restrictions, etc. However, many countries are very strict for the type of business expansion used whether licensing, franchising or joint venture. In terms of foreign workforce, strict policies and business practices are often included in human resource and pension restrictions (Simmons and de Jonge Oudraat 2012).
• Risks – Entering new market outlines various challenges that not only affect the domestic business activity but also the other activities undertaken in a business based on various variables that are required in global expansion. However, invariably there are additional administrative costs, insufficient technology, regulatory hurdles, international transaction costs, currency rates and differences that creates risks in the global mindset of the customers (Price 2011).
Application of the Theory
Capacity and Inventory Management
The capacity and inventory management in Procter and Gamble in Singapore is a manufacturing facility. The Procter and Gamble established a plant in Singapore where new processes could be followed as being one of the headquarters of operations in Singapore. It primarily works on the company’s perfume business while following different state-of-art innovations for a technologically advanced plant (Singapore Economic Development Board 2016). On the contrary, it processes the raw materials of perfumes that are available for demand. The inventory costs in Procter and Gamble takes place through Re-order Point Quantity Model where they identify the time to order the stock drops to a predetermined level. Although, the innovation centre started in Singapore is based on the market research idea to cover the delay between order and delivery but it also provides the analysis for the safety stock. Conversely, the re-order point model used is insignificant without EOQ model but it clearly defines the demand rates and delivery time of not having the stock of the customer requirements. Once, the requirements are not, it may lead to a costly affair regarding the potential loss of sales and the lack of customer goodwill in the future business which P&G will not allow (Farasyn et al. 2011).
Moreover, in order to high levels of distribution of the stock, it is planning to reduce its costs by shortening cycle times or increasing the supply chain efficiency. However, the placement of order with the capacity management is maintained by the supplying capacity of the organization.
The placement of orders in Procter and Gamble is done on the basic of three kinds of inventory that is zero inventory, 3 days inventory and weekly inventory.
Quality Management
P&G acknowledged under the FMCG (Fast moving consumer goods) is an industry that has been setting standards for quality management and has gained customers, repute, profit and business worldwide (Gul et al. 2012). For any organization, the quality management is understood by ‘customer satisfaction.’ On the whole, the basic aim of P&G is to have products present in every household. Although, Procter and Gamble adheres to TQ principles and started its implementation in 1983. According to Lane and Bradford BD94JL (2012) P&G recognize strategy development as well as implementation to be a serious business for sustaining competitive advantage in the long run.
In P&G, the project management systems for the good quality production emerges from a step to step process given as
Planning Organizing Developing Manufacturing Controlling Motivating Implementation Maintenance Operations (Loch et al. 2013).
The good quality will be ultimately analyzed by customer satisfaction that will be achieved through the following ways.
• Employee Involvement
The P&G provides proper training, guidance and mentoring the employees in the continuous passage of time. The departments that holds the responsibility is the “Human Resource Department” for training the employees. Moreover, the company has developmental recruiting philosophy “to build from within” to build strong culture of trust that enables the member to attain goals (Gul et al. 2012).
• Continuous Improvement
The continuous improvement in the organization P&G is achieved by understanding customer’s needs and expectations, defining new industry service levels and exceeding their commitments. However, this can primarily be supported by continual investment, infrastructure, people and technology. Nevertheless, the company aims to optimize its quality and reliability on P&G’s reputation on teamwork that is not only based on retaining the important person but also satisfying the one.
• Process
The idea of quality control is often met by conducting meetings on a daily requirement of meeting management system according to given schedules. Moreover, the different departments have their designated functions to follow (Concepcion 2013).
• Performance
P&G every now then plans to come up with robust growth that helps in achieving perfection. Moreover, the planning done in the company is right from top to bottom level management in the need of delivering quality enriched products based on following the protocols of gaining the highest standard is running the business (Kecek and Akinci 2016).
Supply Chain Management
The supply chain management of Procter and Gamble is considered to be best in the world. The organization has been making its supply chain management effective to stay in the intensely competitive industry. On the whole, Procter and Gamble has taken an initiative to remake its supply chain into something leaner that will not only makes its leadership embarked on a project but will be a customer driven approach than before (Gunn 2015).
The supply chain transformation of the company embarks on three salient features.
• Firstly, maintaining a close contact with the customer.
• Secondly, becoming more competitive than before.
• Thirdly, getting synchronized with the end-to-end supply chain to the customers as well as the suppliers.
The global supply chain of P&G can be explained by the diagram given below.
The supplier network as large as transformation in P&G has done an annual sales of $83 billion through an operation in 130 plants staffed by 70,000 people. Although, the goal of the company is to replenish 80% of its orders in less than 24 hours to fulfil the orders.
The transformative initiatives have been helpful for the company to achieve the demand in the highly segmented consumer base in a saturated market.to get the product at the right place and at the right time. However, the results have been fulfilling as the company has exceeded more than $1.2 billion in cost savings and is expected to grow to $1.6 billion at the end of 2016 (Gunn 2015).
P&G following a structured an evolutionary approach to develop new products. The story of innovation and creativity has been evolving since different models of supply chains have been applied using Control Tower program initiative to achieve the objectives of supply chain management in a faster way (Popelka 2014). This initiative has been optimized using logistics to make changes to the rate, route as well as mode and method of transportation. On the other hand, it has helped in eliminating inefficiencies. Moreover, this program centrally controls the product flows analyzing the manufacturing flow management in the fastest possible time and in eco-friendly manner.
Conversely, the control Tower Program in 2014 changed to “New SAP Supply Chain Control Tower” that operates on end-to-end visibility that are built upon a public cloud architecture for common network master data. The control tower even incorporates the idea of reacting to alerts based on prebuilt playbooks that allow an organization to react quickly with attention to the unforeseen situations (Banker 2016).
The supply chain management in Procter and Gamble in Singapore operates to functions based on demand forecasting for skin care product of ASEAN (EDB Singapore 2015). The demand forecasting has been operated on the “Customer Driven Supply Network” for the connection between the supply chain as well as actual sales process so that the forecast driven demand can lead to paradigm shift to actual demand driven. The Web Order management has been efficient in implementing on the online system using SAP (Pearlson, Saunders and Galletta 2016). Moreover, P&G can access its inventory as well as scheduling and replenishment levels using multifunctional resources, scorecards and refined technology in association with the retailer.
The Global Supply Chain Forum identifies all those activities that are necessary to make up the length of the supply chain management with functional areas of marketing, research and development, finance, production, purchasing and logistics (Sürie and Reuter 2015). The key processes that a supply chain management operates in are –
• Customer relationship management
The management operates on the structure of maintaining relationship with the customer. The management targets the customer and customer groups as a part of business mission.
• Customer service management
This deals with the process of single sourcing to the customer through product availability, order status or shipping details. The real time information is provided to the customer through different interfaces with the functions of the organization such as logistics and manufacturing (Hollensen 2015).
• Demand management
The demand management balances the customer need with supply capabilities of the production to synchronize with production, distribution and procurement. It is majorly about forecasting and synchronizing plans, objectives, market share, trade inventory and market research (Van Rensburg 2013).
• Order fulfilling
The order fulfilling is the fundamental to effective supply chain management. The organization needs to develop partnerships with the key members to meet the customers’ needs and requirements.
• Manufacturing flow management
The manufacturing flow process needs to establish the ability as well as flexibility to serve the target markets (Estampe et al. 2013).
• Product development and commercialization.
The product development is developing new product quickly and getting them to the market place through a continuous process that is effective and efficient. It means to develop right products through successfully launched time frames to remain competitive in market (Hollensen 2015).
Global and International Issues
Global operations management is the new reality for the companies as the target markets extend outside the geographical area which makes the companies to experience difference cultural influences. As a result, there are different challenges that needs to be faced with different operations functional in different countries when building for high performance teams or responding to problems. The international issues that are generally faced by an organization are:
• Diverse Values – The operations of different countries leverages the skills and knowledge of workers in each location such that the operations management does not include the diversification in values. As a result, the communication results in failure, decision making will be at its odds and the probability of unsolved issues will increase. On the other hand, cultural sensitivity highlights that awareness training could be weak substitute to be embedded in the culture. However, awareness seems to be a one sided issue for only headquartered managers and executives (Price 2011).
• Communication Shift – When the operations expand to different location with different time zones it becomes highly difficult for the operation to be executed at the same time as the timings in headquarters. The direct conversations are impossible due to irregularity in the direct observations (Khanna and Palepu 2013).
• Compliance and Regulations – When operating in different economies, the product is governed by different rules and regulations such as the tax laws, statutory export regulations, import restrictions, etc. However, many countries are very strict for the type of business expansion used whether licensing, franchising or joint venture. In terms of foreign workforce, strict policies and business practices are often included in human resource and pension restrictions (Simmons and de Jonge Oudraat 2012).
• Risks – Entering new market outlines various challenges that not only affect the domestic business activity but also the other activities undertaken in a business based on various variables that are required in global expansion. However, invariably there are additional administrative costs, insufficient technology, regulatory hurdles, international transaction costs, currency rates and differences that creates risks in the global mindset of the customers (Price 2011).
Application of the Theory
Capacity and Inventory Management
The capacity and inventory management in Procter and Gamble in Singapore is a manufacturing facility. The Procter and Gamble established a plant in Singapore where new processes could be followed as being one of the headquarters of operations in Singapore. It primarily works on the company’s perfume business while following different state-of-art innovations for a technologically advanced plant (Singapore Economic Development Board 2016). On the contrary, it processes the raw materials of perfumes that are available for demand. The inventory costs in Procter and Gamble takes place through Re-order Point Quantity Model where they identify the time to order the stock drops to a predetermined level. Although, the innovation centre started in Singapore is based on the market research idea to cover the delay between order and delivery but it also provides the analysis for the safety stock. Conversely, the re-order point model used is insignificant without EOQ model but it clearly defines the demand rates and delivery time of not having the stock of the customer requirements. Once, the requirements are not, it may lead to a costly affair regarding the potential loss of sales and the lack of customer goodwill in the future business which P&G will not allow (Farasyn et al. 2011).
Moreover, in order to high levels of distribution of the stock, it is planning to reduce its costs by shortening cycle times or increasing the supply chain efficiency. However, the placement of order with the capacity management is maintained by the supplying capacity of the organization.
The placement of orders in Procter and Gamble is done on the basic of three kinds of inventory that is zero inventory, 3 days inventory and weekly inventory.
Quality Management
P&G acknowledged under the FMCG (Fast moving consumer goods) is an industry that has been setting standards for quality management and has gained customers, repute, profit and business worldwide (Gul et al. 2012). For any organization, the quality management is understood by ‘customer satisfaction.’ On the whole, the basic aim of P&G is to have products present in every household. Although, Procter and Gamble adheres to TQ principles and started its implementation in 1983. According to Lane and Bradford BD94JL (2012) P&G recognize strategy development as well as implementation to be a serious business for sustaining competitive advantage in the long run.
In P&G, the project management systems for the good quality production emerges from a step to step process given as
Planning Organizing Developing Manufacturing Controlling Motivating Implementation Maintenance Operations (Loch et al. 2013).
The good quality will be ultimately analyzed by customer satisfaction that will be achieved through the following ways.
• Employee Involvement
The P&G provides proper training, guidance and mentoring the employees in the continuous passage of time. The departments that holds the responsibility is the “Human Resource Department” for training the employees. Moreover, the company has developmental recruiting philosophy “to build from within” to build strong culture of trust that enables the member to attain goals (Gul et al. 2012).
• Continuous Improvement
The continuous improvement in the organization P&G is achieved by understanding customer’s needs and expectations, defining new industry service levels and exceeding their commitments. However, this can primarily be supported by continual investment, infrastructure, people and technology. Nevertheless, the company aims to optimize its quality and reliability on P&G’s reputation on teamwork that is not only based on retaining the important person but also satisfying the one.
• Process
The idea of quality control is often met by conducting meetings on a daily requirement of meeting management system according to given schedules. Moreover, the different departments have their designated functions to follow (Concepcion 2013).
• Performance
P&G every now then plans to come up with robust growth that helps in achieving perfection. Moreover, the planning done in the company is right from top to bottom level management in the need of delivering quality enriched products based on following the protocols of gaining the highest standard is running the business (Kecek and Akinci 2016).
Supply Chain Management
The supply chain management of Procter and Gamble is considered to be best in the world. The organization has been making its supply chain management effective to stay in the intensely competitive industry. On the whole, Procter and Gamble has taken an initiative to remake its supply chain into something leaner that will not only makes its leadership embarked on a project but will be a customer driven approach than before (Gunn 2015).
The supply chain transformation of the company embarks on three salient features.
• Firstly, maintaining a close contact with the customer.
• Secondly, becoming more competitive than before.
• Thirdly, getting synchronized with the end-to-end supply chain to the customers as well as the suppliers.
The global supply chain of P&G can be explained by the diagram given below.
The supplier network as large as transformation in P&G has done an annual sales of $83 billion through an operation in 130 plants staffed by 70,000 people. Although, the goal of the company is to replenish 80% of its orders in less than 24 hours to fulfil the orders.
The transformative initiatives have been helpful for the company to achieve the demand in the highly segmented consumer base in a saturated market.to get the product at the right place and at the right time. However, the results have been fulfilling as the company has exceeded more than $1.2 billion in cost savings and is expected to grow to $1.6 billion at the end of 2016 (Gunn 2015).
P&G following a structured an evolutionary approach to develop new products. The story of innovation and creativity has been evolving since different models of supply chains have been applied using Control Tower program initiative to achieve the objectives of supply chain management in a faster way (Popelka 2014). This initiative has been optimized using logistics to make changes to the rate, route as well as mode and method of transportation. On the other hand, it has helped in eliminating inefficiencies. Moreover, this program centrally controls the product flows analyzing the manufacturing flow management in the fastest possible time and in eco-friendly manner.
Conversely, the control Tower Program in 2014 changed to “New SAP Supply Chain Control Tower” that operates on end-to-end visibility that are built upon a public cloud architecture for common network master data. The control tower even incorporates the idea of reacting to alerts based on prebuilt playbooks that allow an organization to react quickly with attention to the unforeseen situations (Banker 2016).
The supply chain management in Procter and Gamble in Singapore operates to functions based on demand forecasting for skin care product of ASEAN (EDB Singapore 2015). The demand forecasting has been operated on the “Customer Driven Supply Network” for the connection between the supply chain as well as actual sales process so that the forecast driven demand can lead to paradigm shift to actual demand driven. The Web Order management has been efficient in implementing on the online system using SAP (Pearlson, Saunders and Galletta 2016). Moreover, P&G can access its inventory as well as scheduling and replenishment levels using multifunctional resources, scorecards and refined technology in association with the retailer.
Global and International Issues
Procter and Gamble aims on highlighting efficiency and innovation as an attempt to stay relevant as well as competitive in business. However, the basic issues that are highlighted in operating globally in different business environments are given as follows.
• Firstly, the continuous pressure to innovate and keep up with the competition from the local markets
• Secondly, creating effective strategies that could retain the brands.
• Thirdly, maintaining the level of customer satisfaction irrespective of language, culture and communication shift.
• Fourthly, keeping an eye for continuous costs that are increasing with the cost of production in the global markets (Monczka et al. 2015).
Comparatively, these issues can be understood through the different challenges and risks that are associated with being the market leader in consumer goods.
• Rigidity in changing portfolio to enter new markets
P&G portfolio is largely penetrated towards the high-end markets with brands like Dunhill Fragrance, etc. The risk runs majorly because of the centralization in its management with its 62% of the operations sited in more rewarding developed markets. The main risk lies in the times of economic weakness when the customers moves to cheaper options. However, with lack of price sensitivity and price not customized according to needs and preferences of the local markets creates a fall in the market share. Nevertheless, price sensitivity also hampers long term growth since the growing middle class would be spending on the premium household products in spite of higher disposable incomes (Ng 2016).
• High profile mistakes leading to brand erosion of the company
The profile mistakes committed by the company can create negative publicity which can be analyzed through the SWOT analysis. However, according to the size of P&G there have been mistakes that are exposed to larger magnification such as in previous scenarios in 2012, the six-month delay of Tide Pods, supply issues with ProGlide razors, etc. Being a multi brand strategy, any scandal or a mistake could drive out the international as well as local customers from the market (Ng 2016).
• Limited scope of growth
The fast moving consumer goods markets are relatively mature such that the innovation on these goods have been in stasis and targeted to fulfil the lower needs of the hierarchy of needs. However, this illustrates that there is absence of noteworthy growth in the organization (Morven 2016).
• First Mover’s Disadvantage
P&G has the power to innovate and invest in risky ventures are basically the risk of free riders. However, competitors have the opportunity to create same product without incurring huge R&D cost. As a result, the Company suffers in the market and regarding shares and profits (Dyer and Gregersen 2016). Nevertheless, not innovating could lead to leader erosion through price competition from rivals.
Recommendations
P&G has shown drastic improvements in its operation management but there has been certain issues that the company needs to study based on the sustainability of the entire supply chain that not only includes manufacturing and facility or operation but also includes supplier engagement (Procter and Gamble 2016). Although, the company has tries to makes its supply chain faster by 80% but it still needs to work on its international issues.
Conversely, P&G has been improving since 2010 when it started with the Supplier Environmental Sustainability Scorecard jus to improve the performance of the suppliers in the environment. For a fast paced supply chain management with less inefficiencies, Control Tower program initiative was adopted with the inventory management technology of using so that a track of deliveries could be made worldwide.
The main focus needs to be made on the following areas:
• Cost of Goods – The relation management goods needs to be reduced such that the long term contracts could be improved with increase of suppliers (Hannula 2016).
• As the company believes in being up-to-date with innovation, the research and development needs to be more established in the countries of Asia Pacific like Singapore as this country has new started innovation centre. Moreover, it should continue its nurtures towards open innovation of “Connect + Develop” (Procter and Gamble 2016).
• P&G in partnership with several renowned constructional firms for eco-smart design plan and operations are considered highly industry-leading scope and span. However, the P&G’s 77 point plan has been significantly lasting improvements. Nevertheless, it needs to be in line with holistic approach so that all production stages starting from raw material shipment, auxiliary facilities and activities to final product shipments should be implementing sustainability products.
• Diverse – Innovation is at its core in P&G as the management is not afraid to invest in more major resources that fuel its pipeline with its transformative products. Through its investments, the company aims to achieve product categories and drive market growth by highest quality. It has set to create a strategy “New-Growth Factory” (strategy + business) in the systemization growth through innovation. However, the ideas submitted online will give plethora of ideas to improve success rates and to build in-house growth capabilities (Anthony 2016).
On the whole, the recommendations made on the case study can be organized on the following heads.
1) Information Management and Systems – The information management system has recently added digital signature to the file on the last page to be shared externally when needed. However, the P&G system known by IT Integration Cardinal Solutions that implemented Adobe LiveCycle Reader Extension and PDF Generator in the P&G’s eLab Notebook Program. This system saves the company time and money as it can retrieve larger amounts of data. Moreover, the digital signature needs to be updated based on the online shopping that could attract million new customers but also retain by giving comfort to the regular customers (Rainer and Cegielski 2012).
2) Project Management – The project overview of Procter and Gamble has been successful in upgrading its 20 year old software that processes the scope of work. The project undertaken has been impacted 250,000 products covering 150+ export market. The juggling of the system has accounted for 8,000 trucks accommodating 18,000 orders, shipped to 150,000 retailers accumulating $200 revenue (Procter and Gamble 2016).
The project objective needs to identify the best ordering and billing processes based on ordering, billing and shipping software. This could create more compelling promotions and will increase sale. Furthermore, the feedback will be collected and responded to produce more benefit by devising more sophisticated software that will not only minimize lost sale but will also create efficiencies in the supply chain (Epson and Diaz 2016).
The project management in Procter and Gamble can be effectively identified through two managements that is project risk management and project risk management.
a) Project Risk Management
• First of all, risk needs to be identified based on external assessments, internal wealth of knowledge and stakeholder experience.
• The major risks like inability of process orders, credibility and sale needs to be identified so that the loss can be compensated (Worarattanawong 2016).
b) Project Resource Management
The project management can be achieved based on the reallocation of staff to minimize disruption of the schedules. The resource management should be based on communication and tracking so that global workshops can be refined through the project life cycle (Worarattanawong 2016).
3) Role of Operations Manager - The role of operations manager is to analyze all the management systems and the respective challenges faced by the operations management It is important that the organization. The changes that has been made by the company in regulation with operation manager has been viable as the managers cannot be always present on beck and call. However, as the managers are constantly on the go, they have been provided with the provision to stay connected through working from home or either through their mobile phones or when travelling (Reshma, Aithal and Acharya 2015).
The advancement in the borderless network have made Procter and Gamble overcome traditional time and adopted innovative methods for fostering market success (CISCO 2011).
On the other hand, to proactively monitor the management systems, the adoption of customized management services has been adopted by Procter and Gamble so that the events occurring out of normal parameters can be identified. This can help in maximizing resources for focusing on innovation (CISCO 2011).
• Firstly, the continuous pressure to innovate and keep up with the competition from the local markets
• Secondly, creating effective strategies that could retain the brands.
• Thirdly, maintaining the level of customer satisfaction irrespective of language, culture and communication shift.
• Fourthly, keeping an eye for continuous costs that are increasing with the cost of production in the global markets (Monczka et al. 2015).
Comparatively, these issues can be understood through the different challenges and risks that are associated with being the market leader in consumer goods.
• Rigidity in changing portfolio to enter new markets
P&G portfolio is largely penetrated towards the high-end markets with brands like Dunhill Fragrance, etc. The risk runs majorly because of the centralization in its management with its 62% of the operations sited in more rewarding developed markets. The main risk lies in the times of economic weakness when the customers moves to cheaper options. However, with lack of price sensitivity and price not customized according to needs and preferences of the local markets creates a fall in the market share. Nevertheless, price sensitivity also hampers long term growth since the growing middle class would be spending on the premium household products in spite of higher disposable incomes (Ng 2016).
• High profile mistakes leading to brand erosion of the company
The profile mistakes committed by the company can create negative publicity which can be analyzed through the SWOT analysis. However, according to the size of P&G there have been mistakes that are exposed to larger magnification such as in previous scenarios in 2012, the six-month delay of Tide Pods, supply issues with ProGlide razors, etc. Being a multi brand strategy, any scandal or a mistake could drive out the international as well as local customers from the market (Ng 2016).
• Limited scope of growth
The fast moving consumer goods markets are relatively mature such that the innovation on these goods have been in stasis and targeted to fulfil the lower needs of the hierarchy of needs. However, this illustrates that there is absence of noteworthy growth in the organization (Morven 2016).
• First Mover’s Disadvantage
P&G has the power to innovate and invest in risky ventures are basically the risk of free riders. However, competitors have the opportunity to create same product without incurring huge R&D cost. As a result, the Company suffers in the market and regarding shares and profits (Dyer and Gregersen 2016). Nevertheless, not innovating could lead to leader erosion through price competition from rivals.
Recommendations
P&G has shown drastic improvements in its operation management but there has been certain issues that the company needs to study based on the sustainability of the entire supply chain that not only includes manufacturing and facility or operation but also includes supplier engagement (Procter and Gamble 2016). Although, the company has tries to makes its supply chain faster by 80% but it still needs to work on its international issues.
Conversely, P&G has been improving since 2010 when it started with the Supplier Environmental Sustainability Scorecard jus to improve the performance of the suppliers in the environment. For a fast paced supply chain management with less inefficiencies, Control Tower program initiative was adopted with the inventory management technology of using so that a track of deliveries could be made worldwide.
The main focus needs to be made on the following areas:
• Cost of Goods – The relation management goods needs to be reduced such that the long term contracts could be improved with increase of suppliers (Hannula 2016).
• As the company believes in being up-to-date with innovation, the research and development needs to be more established in the countries of Asia Pacific like Singapore as this country has new started innovation centre. Moreover, it should continue its nurtures towards open innovation of “Connect + Develop” (Procter and Gamble 2016).
• P&G in partnership with several renowned constructional firms for eco-smart design plan and operations are considered highly industry-leading scope and span. However, the P&G’s 77 point plan has been significantly lasting improvements. Nevertheless, it needs to be in line with holistic approach so that all production stages starting from raw material shipment, auxiliary facilities and activities to final product shipments should be implementing sustainability products.
• Diverse – Innovation is at its core in P&G as the management is not afraid to invest in more major resources that fuel its pipeline with its transformative products. Through its investments, the company aims to achieve product categories and drive market growth by highest quality. It has set to create a strategy “New-Growth Factory” (strategy + business) in the systemization growth through innovation. However, the ideas submitted online will give plethora of ideas to improve success rates and to build in-house growth capabilities (Anthony 2016).
On the whole, the recommendations made on the case study can be organized on the following heads.
1) Information Management and Systems – The information management system has recently added digital signature to the file on the last page to be shared externally when needed. However, the P&G system known by IT Integration Cardinal Solutions that implemented Adobe LiveCycle Reader Extension and PDF Generator in the P&G’s eLab Notebook Program. This system saves the company time and money as it can retrieve larger amounts of data. Moreover, the digital signature needs to be updated based on the online shopping that could attract million new customers but also retain by giving comfort to the regular customers (Rainer and Cegielski 2012).
2) Project Management – The project overview of Procter and Gamble has been successful in upgrading its 20 year old software that processes the scope of work. The project undertaken has been impacted 250,000 products covering 150+ export market. The juggling of the system has accounted for 8,000 trucks accommodating 18,000 orders, shipped to 150,000 retailers accumulating $200 revenue (Procter and Gamble 2016).
The project objective needs to identify the best ordering and billing processes based on ordering, billing and shipping software. This could create more compelling promotions and will increase sale. Furthermore, the feedback will be collected and responded to produce more benefit by devising more sophisticated software that will not only minimize lost sale but will also create efficiencies in the supply chain (Epson and Diaz 2016).
The project management in Procter and Gamble can be effectively identified through two managements that is project risk management and project risk management.
a) Project Risk Management
• First of all, risk needs to be identified based on external assessments, internal wealth of knowledge and stakeholder experience.
• The major risks like inability of process orders, credibility and sale needs to be identified so that the loss can be compensated (Worarattanawong 2016).
b) Project Resource Management
The project management can be achieved based on the reallocation of staff to minimize disruption of the schedules. The resource management should be based on communication and tracking so that global workshops can be refined through the project life cycle (Worarattanawong 2016).
3) Role of Operations Manager - The role of operations manager is to analyze all the management systems and the respective challenges faced by the operations management It is important that the organization. The changes that has been made by the company in regulation with operation manager has been viable as the managers cannot be always present on beck and call. However, as the managers are constantly on the go, they have been provided with the provision to stay connected through working from home or either through their mobile phones or when travelling (Reshma, Aithal and Acharya 2015).
The advancement in the borderless network have made Procter and Gamble overcome traditional time and adopted innovative methods for fostering market success (CISCO 2011).
On the other hand, to proactively monitor the management systems, the adoption of customized management services has been adopted by Procter and Gamble so that the events occurring out of normal parameters can be identified. This can help in maximizing resources for focusing on innovation (CISCO 2011).
Conclusion
To conclude, it can be said that the operations management constitute to be one of the important managements in the organization to meet the basic requirement of the customer satisfaction. The operations management of Procter and Gamble were evaluated. The whole assignment focused on the facilities and the principles that undermine the operations management. It can be seen that Procter and Gamble have been following innovation one of its goal to meet the changing need of the market. The inventory and capacity management of the organization is regulated to function in a cost effective manner while shortening cycle times or increasing the supply chain efficiency. The inventory model that had been adopted in the model is Re-order point model with some reference with Economic Order Quantity (EOQ) model. Moreover, total quality principles for competitive advantages can be achieved by employee improvement, process and performance of the product in terms of quality. Comparatively, the adoption of control tower program has led to achieve customer driven growth efficiently. Moreover, the international issues that the company face can be recommended to solve through the role of operation manger and the project management techniques to avoid risk management and efficient resource planning.
Therefore, the operation management of Procter and Gamble can be improved by training personnel with flexibility in roles, adoption of innovation technology, facilitating growth and advancement in management systems that will help in maintaining the position for global leader.
Therefore, the operation management of Procter and Gamble can be improved by training personnel with flexibility in roles, adoption of innovation technology, facilitating growth and advancement in management systems that will help in maintaining the position for global leader.
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