Unit 4 488 Assignment 2 Caoxuansang

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Unit 4 488 Assignment 2 Caoxuansang
Human Resource Analytics (University of Greenwich)
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ASSIGNMENT … FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title Unit 4: Management and Operations (488)
Submission date 06/03/2021 Date received (1st submission)
Re-submission date Date received (2nd submission)
Student name CAO XUAN SANG Student ID GBD191262
Class 488.0901A Assessor name NGUYEN HUU NAM PHUC
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand
that making a false declaration is a form of malpractice.
Student’s signature: Date:
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Table of Contents
Introduction: ................................................................................................................................................................. 5
CONTENT OF REPORT: .................................................................................................................................................. 5
Company profile: ...................................................................................................................................................... 5
The organizational structure:.................................................................................................................................... 6
Explain the operations and operations management theories and approaches and the role that leaders and
managers play: .............................................................................................................................................................. 7
Operational Management Theories: ........................................................................................................................ 7
Queuing theories: ................................................................................................................................................. 7
Application for Hershey’s.......................................................................................................................................... 8
Lean production: ................................................................................................................................................... 9
Six sigma: ............................................................................................................................................................ 12
Operations management approaches: ................................................................................................................... 14
MBO & SMART criteria: ...................................................................................................................................... 14
Total Quality Management Approach: ............................................................................................................... 16
Just in time production: ...................................................................................................................................... 18
Kaizen: ................................................................................................................................................................. 19
Apply of TQM of Hershey’s Corporation:............................................................................................................ 20
Application of JIT of Hershey’s Corporation: ...................................................................................................... 22
The importance of different operations management approaches in contemporary business environment to help
obtain and maintain business competitive advantages: ............................................................................................ 23
Explain the importance and value of operations management in achieving business objects: ................................. 24
Operation functions of business: ............................................................................................................................ 24
Management of operational functions that assist Hershey to achieve SMART goal: ........................................ 29
Management and Leadership role in business operations management: ......................................................... 31
Factors that affect operational management:.................................................................................................... 32
The factors within the business environment that impact upon operational management and decision-making by
leaders and managers:................................................................................................................................................ 33
The impacts of Covid-19 that Hershey's stakeholders are facing:.......................................................................... 33
Management or leadership role is more appreciated in the work of managing operations to fulfil organizational
stakeholders’ expectations and pressures: ............................................................................................................ 35
The pressures and expectations of different stakeholder groups can impact significantly and shape a company’s
strategy and operations in general: ........................................................................................................................ 36

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Conclusion:.................................................................................................................................................................. 36
Recommendation: ...................................................................................................................................................... 37
References .................................................................................................................................................................. 38
Figure 1. Products of Hershey’s .................................................................................................................................... 5

Figure 2. Hershey’s Organizational structure ............................................................................................................... 6
Figure 3. Queuing theory (Alteryx, 2021) ..................................................................................................................... 7
Figure 4. Lean manufacturing (Denbaohieu, 2020) ...................................................................................................... 9
Figure 5. The Six Sigma approach consists of 5 steps (DMAIC) .................................................................................. 13
Figure 6. MBO Process Cycle Peter Drucker (Drucker, 1954.) .................................................................................... 15
Figure 7. JIT ................................................................................................................................................................. 18
Figure 8. The Six - Step Cycle of Kaizen (Kanbanzone,2020) ...................................................................................... 20
Figure 9. Flow Chart. U.S. Chocolate Market Share Measure (2010) (Wikinvest, 2013. p. 1) .................................... 22
Table 1. Profile of Hershey’s ......................................................................................................................................... 6

Table 2. 7 Types of Waste ........................................................................................................................................... 10

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Introduction:
User needs are changing and more and more people are looking for better food addresses that deliver
delicious and mixed flavors of their favorite brands. Hershey's is the largest chocolate producer in the
United States and it continues to expand around the world. What used to be known as the Hershey Food
Group now known as the Hershey Company since 2005 is a company that is always looking to find out
what users want and always offering more ways for more people to enjoy their moments. More amazing
engravings include products such as milk chocolate, Cookies 'n' Creame, kisses, Krackel, Mr. Goodbar,
cocoa, spreads and syrups ... The man behind this company is Milton Hershey, who grew up in central
Pennsylvania, and later became the home of the Hershey company. Started as Crystal A Caramels, which
has expanded into a chocolate company. As more and more users were looking to reduce their sugar intake
or choose a manufacturing facility, the company mentioned this issue. 1900 was the year Americans could
enjoy Hershey's Milk Chocolate Bar, and just a few years later, many of Hershey's products were in
development. And for those who want to reward themselves with their favorite chocolate tasting bar,
Hershey's is here for them too.
Figure 1. Products of Hershey’s
The purpose of this research paper will explain the operations and operations management theories and
approaches and the role that leaders and managers plan and the selection and completing of the report.
CONTENT OF REPORT:
Company profile:
Name of the company Hershey’s
Industry Food processing

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Predecessor Lancaster Caramel Company
Establish February 9, 1894 (as Hershey Chocolate Company)
The head office Lancaster, Pennsylvania, United States
Slogan Pure Hershey’s. Pure happiness.
Total assets $8,14 billion (2019)
Chairman of the board Michele Buck
Company’s Website https://www.hersheys.com/en_us/home.html

Table 1. Profile of Hershey’s
The organizational structure:
Figure 2. Hershey’s Organizational structure

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Explain the operations and operations management theories and

approaches and the role that leaders and managers play:
Operational Management Theories:
Queuing theories:
Figure 3. Queuing theory (Alteryx, 2021)
Queuing theory is a statistical analysis of congestion and delays in queue waiting. Queuing Theory (or
"queueing theory") explores any aspect of line waiting to be served, including the arrival process,
operation phase, number of servers, number of system locations, and number of customers—which may
be individuals, data packets, vehicles, etc. As a branch of operations research, queuing theory can help
users make informed business decisions on how to build efficient and cost-effective workflow systems.
Real-life applications of queuing theory cover a wide range of applications, such as how to provide faster
customer service, improve traffic flow, efficiently ship orders from a warehouse, and design of
telecommunications systems, from data networks to call centers.

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Queuing theory uses the Kendall notation to classify the different types of queuing systems, or
nodes. Queuing nodes are classified using the notation A/S/c/K/N/D where:
• A: is the arrival process

• S: is the mathematical distribution of the service time
• c : is the number of servers
• K : is the capacity of the queue, omitted if unlimited
• N : is the number of possible customers, omitted if unlimited
• D : is the queuing discipline, assumed first-in-first-out if omitted (Queue-it, 2021)
Role of leaders in queuing theory approach Role of managers in queuing theory approach
• To be able to spot delays in the queuing • Overseeing the whole procedure from the
procedure. outset of the queuing system.
• Recognizing the source of the delays. • Guide staff to reduce queuing delays.
• The resolution of the systems involved in
these delays.
Application for Hershey’s
By applying the queue theory, this approach uses mathematical tools to explain economic dynamics, to
construct mathematical models of this phenomenon as the basis for estimation, research and collection.
Optimum solutions to this economic crisis. With the use of machines, the ability to define and pick the
best solution is improving and improving due to the ability to measure multiple choices (strategies) for
comparison and choosing. Thus, the capacity to mimic life is closer and closer to reality. Hershey's will
create more reliable process structures, price methods, HR solutions and business management
techniques to minimize customer waiting times and maximize the number of customers who can be
serviced. Also, since Hershey's chocolates are a dessert that can be purchased in certain areas of the
market, there's no reason to think about queuing up, which is why there's an expensive excess.

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Lean production:
Figure 4. Lean manufacturing (Denbaohieu, 2020)
Lean production is a systematic manufacturing method used for eliminating waste within the
manufacturing system whilst ensuring quality. This approach can be applied to all aspects of a business –
from design, through production to distribution. It takes into account the waste generated from uneven
workloads and overburden and then reduces them in order to increase value and reduce costs aims to cut
costs by making the business more efficient and responsive to market needs. The word ”lean” in the term
simply means no excess, so lean production can be translated simply into minimal waste manufacturing.
This strategy is intended to reduce or eliminate practices that do not add value to the manufacturing
process, such as holding stocks, fixing defective products and excessive transportation of persons and
products around the market. (Dictionary, 2021)
The systematic elimination of 7 waste types
Type of waste Example

Transportation Movement of materials from one location to Avoid unnecessary steps in
another between processes

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Inventory Every piece of product tied up in raw material, Do not store extra materials
work in progress or finished good costs money
until its sold
Motion Unnecessary motions are movements of Make the motions in between
machines or employees that are not as small or processes easier
as easy to achieve as possible
Waiting Any idle time produced when two Connect processes well, so no
interdependent processes are not completely time is wasted
synchronized
Overprocessing Put more into the product than is valued by the Do not do more than what
customer customers want
Overproduction Results from producing more or faster than Do not produce more than what
required customers need
Defects Errors that require time to fix Avoid mistakes or the production
of bad quality goods
Table 2. 7 Types of Waste
Role of leaders in lean production approach Role of managers in lean production approach
• To make it easier for employers to grasp • Planning and organising production

their responsibilities in terms of lean schedules
manufacturing. • Assessing project and resource
• Able to offer guidance for workers to requirements
improve productivity. • Estimating, negotiating and agreeing on
• Take the lead in tracking waste disposal budgets and timescales with clients and
procedures. managers
• Ensuring the livelihood of employees adds • Ensuring that health and safety regulations
to the satisfaction of the consumer, are met
calculated to the same manufacturing time • Determining quality control standards

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and waste saving levels as well as higher • Overseeing production processes

efficiency. • Re-negotiating timescales or schedules as
• Identify workers in the value stream of necessary
your business and involve them in a phase • Selecting, ordering and purchasing
of change to the level. materials
• Motivate workers to be constructive, to • Organising the repair and routine
find solutions to challenges and to better maintenance of production equipment
their jobs by preparing and testing subtle • Liaising with buyers and marketing and
improvements sales staff
• Supervising and managing the work of
junior staff
• Organising relevant training sessions.
• Analyzing the effectiveness of goods and
services.
• Ensure that no valuable materials are
removed.
• Reporting the success of the process to
senior management or even board
members.
Effective lean production requirements
Lean manufacturing tries to make the job simple enough to understand, do, and manage. Good ties with
suppliers, Workers engaged, qualified and motivated. A philosophy of quality assurance; continuous
excellence and commitment to change; trust in management and employees.

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It is difficult to cover every possible scenario to reduce waste as there are many opportunities to do so in
almost every task performed. However, if the manager records the workflows, the employees follow
everything they do, it becomes much easier to see where the waste is generated and how to get rid of it.
For example, to put it simply, if a company is not focusing on minimizing their waste, they are not using
lean principles. The main principles of lean manufacturing are no waiting times; no inventory, pulling in
internal customers instead of pushing, reducing shipment sizes and reducing processing times. Hershey's
company has done this well because Hershey products can be expected to change "to accommodate
changes in cost, competitive environment and profitability goals, while maintaining value. of the consumer
"
Six sigma:
Six Sigma is a methodology for improving the quality of operations management by eliminating errors and
defects, reducing cost, and saving time. The six sigma approach is outlined as a strategy that looks at the
various roles that will allow the organization to eliminate faults in goods and service processes around the
enterprise. With the implementation of the six sigma strategy, the organization will ultimately be able to
obtain full customer loyalty by isolating business flaws and will guarantee that there are a reasonable
growth within the enterprise in order to achieve its priorities and objectives. (Sidkemp, 2020)

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Figure 5. The Six Sigma approach consists of 5 steps (DMAIC)
Role of leaders in six sigma approach Role of managers in six sigma approach
• Facilitating the selection of projects • Their role will be to encourage
• Drafting the initial project charters participation, support, and nurture a
• Selecting BBs and other resources desire for success and accelerate the
needed to conduct the project decision-making process.
• Removing barriers to the successful • Self-training in strategy and
completion of the project methodology is sufficient to be able to
• Holding short weekly progress reviews question that method, conclusions and
with the BBs rationale for solutions.
• Invest in preparation and services in six • Know how to get the best from their
sigma. interns and individuals to ensure the
• Express the importance of the six success of Six Sigma along with business
sigma. goals.

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• Outline of the six sigma programs. • Shows how a manager can save costs by
• Recognizing and supporting employees setting and analyzing a six sigma goal.
contribution to six sigma. • To provide feedback and reviews to
employees, all end results will be
passed on to management.
• Track the application of the six sigma
strategy in the organization.
Operations management approaches:
MBO & SMART criteria:

MBO:
Management by objectives (MBO) is a performance improvement approach in which a balance between
the objectives of workers and the objectives of the organisation is sought, and helps to increase the
performance of the company by precisely identifying the targets decided by both management and
employees. Theoretically, having a voice in setting targets and action plans promotes engagement and
involvement among workers, as well as aligning objectives across the organization. (Yoshizaki, 2018 )
The concept was first outlined by management guru Peter Drucker in his 1954 book, The Practice of
Management. The core of the basic principle of Peter Drucker: Management By Objectives is to identify
common priorities and provide guidance on the outcomes. Setting ambitious and attainable expectations
promotes staff participation and empowerment. Increased engagement enables managers to focus on
innovative innovations and innovation that add to the success and objectives of companies. (Drucker,
1954.)

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Figure 6. MBO Process Cycle Peter Drucker (Drucker, 1954.)

SMART objective:
SMART Approach is a method used to set simple, realistic and attainable development goals, a model that
helps to remember how to perform the first MBO goal setting procedure. There are countless
methodologies, but the SMART style has gained more prestige and recognition as a result of its findings in
recent years, according to which the goals must have the following characteristics: S (Specific), M
(Measurable), A (Achievable), R (Relevant), T (Time-Bound), according to the University of California
(Carey, 2021)
According to University of California (2017), the SMART criteria is:
S M A R T
Specific Measurable Achievable Relevant Time-Bound
Objectives are The objective Objectives must The objective must The goal sets a
simple, precise requires specific be practical and be relevant to the timeframe for
and clarify measurements to attainable in order company in terms the desired
precisely what to measure success to be efficient of its vision and accomplishment
expect from the against the mission A workable target purpose. .
project (future). and to determine if would normally Any questions Time-bound
It should answer the company has address questions should be targets will
5W questions: achieved it. such as: answered: normally answer
• What A measurable target • Is the goal • How does the following
does the could answer issues attainable? this goal questions:
company such as: • How will work into a • When is
want to • How much? the bigger goal? the
do? • How much of organizatio • Is it the best target
• Why is them? n achieve time? going to
this target • How am I this goal? • Was this be
so going to compatible

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important know when it • How with the achieved

? is practical is other ?
• Who is accomplishe the efforts/nee • How
involved? d? objective, ds of the long is it
• Where is depending company? going to
this on other take to
located? limitations, achieve
• What such as the goal?
tools or financial
constraint factors?
s are
involved?
Total Quality Management Approach:

Total quality management (TQM) is a theory of management that seeks to integrate all organizational roles
(marketing, finance, architecture, engineering, growth, customer support, etc.) in order to focus on
satisfying customer needs and organizational objectives. It is a continuous method of identifying and
minimizing or removing production defects, streamlining supply chain logistics, optimizing customer
service and ensuring that workers are up to date with training. Total quality control is designed to keep all
those participating in the manufacturing chain responsible for the overall quality of the finished product
or service. (Slack, N. and Brandon-Jones, A., n.d)
The roles leaders play in this approach The roles managers play in this approach
• The productive process of the entire • To guarantee that the organization focuses
workforce by participation and the use of on its internal and external clients.
various company functions. • The guarantee that vendors be considered
• Leaders tend to be committed and to be as business partners was that they will offer
engaged with their teams in order to have a better service to the business.
a strategy to help the organisation.

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• Developing procedures by performing and • Emphasis on improving the organization

measuring each level of operation. and the manufacturing processes.
• Leaders are responsible for the sense of • Initiating and executing overall quality
mission, but also setting the vision of the control systems requires a great deal of
organization. preparation and study.
• The duty of leaders is to create and sustain • Until adopting the same, managers need to
an internal climate. In this setting, workers be qualified in different TQM activities.
are able to participate fully in the • It is the duty of the manager to assign TQM
achievement of the objectives and budgets at the beginning of each financial
objectives of the organization. year. Costs are included in the overall
• The leading force that sets objectives and quality control process.
assists employees to implement these
objectives.

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Just in time production:
Figure 7. JIT
Definition and How does JIT work:
The just-in-time (JIT) inventory system is a management strategy that aligns raw-material orders from
suppliers directly with production schedules. Companies employ this inventory strategy to increase
efficiency and decrease waste by receiving goods only as they need them for the production process, which
reduces inventory costs. This method requires producers to forecast demand accurately. The JIT inventory
system contrasts with just-in-case strategies, wherein producers hold sufficient inventories to have
enough product to absorb maximum market demand (BANTON, 2021)
The role of the managers in Just in Time approach The role that leaders play in Just in Time approach

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• Request the products at the right time and • Ensure where all materials are used in the
date from a known supplier. manufacturing process.
• Ensure that the right amount is ordered. • Guarantee that all workers are aware of
• Maintaining strong relationships with their positions and duties before the
retailers when buying. completion of the project.
• To guarantee that retailers deliver the right • To carry out tests on all machines used in
quantity of products. the manufacturing process.
Kaizen:
In accordance with this approach, it is stated that small achievements are made in the first instance and
that there is a continuous increase in the achievement of the objectives of the organisation (Imai, 2012).
This approach focuses on improving the efficiency and quality of products and services. Reducing waste
and continuous improvement go hand-in-hand as lean manufacturing principles. By continuing to improve
your business and processes you can reduce waste as much as possible by eliminating whatever
bottlenecks threaten to pop up and examining which processes are inefficient. The concept of this
approach is based on general theories, i.e. continuous improvement is required for continuous business
growth. Beyond that, continuously striving to improve is a strong approach to take with any repeated task
since any improvements you make will benefit all future results. (Mulholland, 2018)

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Figure 8. The Six - Step Cycle of Kaizen (Kanbanzone,2020)
The role of managers in Kaizen approach The role that leaders play in Kaizen approach
• The Kaizen manager spends time at work • Recognizing that specific roles must be
and studies what happens and discusses allocated to specific people.
these findings together. • To confirm that the team is benefiting from
• The need to define the complexity of the the process.
various activities within the company. • To support assistants with any problems
• Ensure the workers are mindful of what the and, if necessary, to ensure the work is
Kaizen Department is focused on. assigned.
• Measure the effectiveness of using the • Identifying procedures for quality
Kaizen approach in the enterprise. assurance in a particular organization or
• Plays a coaching role in the process. facility.
• The leader will help steer the community
towards the identification of waste in the
region and will work on removing it in the
best way possible.
• Be responsible for the preparation and
assistance of any Kaizen activities for the
squad.
Apply of TQM of Hershey’s Corporation:

Total quality management is essentially a team-based strategy aimed at achieving a sustainable, top-
quality service delivery by removing all destroyers, such as non-value-added procedures or 'waste' from
the customer's viewpoint. While this idea has been at the forefront of industrial management for a long
time, it is only recently that it has been tested in the field of supply chain and logistics management. The
management of an iconic company such as Hershey Chocolate Factory depends on many aspects of
production and consumption; management principles include: planning, organizing, leading, and
controlling. Many of these management principles are subject to the prevailing domestic, external, global,
technical and ethical environment.

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Plan – Sales and Operations Planning (S&OP) process is very important in strategizing how more can be
generated for the available demand, e.g. the state of the U.S. economy must be taken into account during
the planning period. The number of customers who can readily purchase Hershey products this year can
be substantially reduced by increasing the expense of such basic items as eggs, milk and bread relative to
the total number of consumers last year. It is also important for Hershey's administration to have more
sensitive foresight than ever before. (Myerson, 2012)
Organise – the organization process demands that all chains of production and sales be combined into a
cohesive whole, since all energies are strategically synchronized for the common benefit of the whole
Hershey Corporation. It essentially involves the supply of raw materials such as cocoa across fair trade
procurement channels, including the Vendor Managed Inventory or VMI, and the use of raw products in
the manufacturing process. If the commodity has been manufactured, say chocolates, sales are made, in
which case it is essential to keep shipping costs as low as possible. Hershey's management must certify the
consistency of the manufactured raw materials and, in the event of any shipment errors, a refund for the
same is required. This means that the consistency of the raw materials plays a key role in the
manufacturing process.
Differentiation enables Hershey goods to have their own distinct consistency, a quality that is entirely
different from that of Hershey's rivals.
Lead – In order for the employees in Hershey at perform to their best, they need a creative leadership that
is constantly ready to inspire the workers. As such, staff deserve to be proud of their success and feel a
feeling of ownership in the wellbeing of the company Hershey Chocolate. The employees need a daily
reminder that they are indispensable, valuable and of immense value to Hershey Corporation, and this
should be celebrated by paying the workers handsomely, by upholding the moral structure of labour
contracts, by rewarding the extra-ordinary accomplishments of the workers. Cost Leadership; a low-cost
approach aimed at closing all the loop holes of production and optimizing on the returns
Control – The success of the company Hershey Chocolate needs to be assessed on an ongoing basis,
adequate monitoring protocols and processes need to be implemented such that any areas that require

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such changes can be readily addressed. Thus, the general success of the company as a whole can often be
held in mind by means of an explicit filing scheme, so that the current industry situation can be reviewed
quickly.
Figure 9. Flow Chart. U.S. Chocolate Market Share Measure (2010) (Wikinvest, 2013. p. 1)
Application of JIT of Hershey’s Corporation:

Hershey's is the leading chocolate producer in North America well known with its branches in China, USA,
Canada, Mexico, Japan, Korea, India ... But Hershey's used the JIT principles unsuccessfully and his
production process suffered a huge setback. In 1999, Hershey implemented the ERP system in the
enterprise and went live the project one month before Halloween, which is definitely one of the busiest
times of their year. Unfortunately, there are a wide range of risks involved in implementing ERP systems.
This problem prevented Hershey's from releasing Kisses and Jolly Ranchers chocolates for Halloween,
costing them 100 million dollars due to undelivered orders, resulting in an 8% drop in their stock value.
The whole system went live before the important month of Halloween, one of the most favorable times
for any confectionery manufacturer in America. Studies show that for most companies involved in the
implementation of ERP software, business processes suffer from temporary changes and disruptions that
can affect the entire company's revenue. up to six months. While Hershey's was suggested by the ERP
solution provider to implement the ERP system within 48 months, the company's leaders emphasized 30

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months. Hershey had to cut back on critical system testing phases. When the systems went into service in
July 1999, unforeseen problems prevented orders from flowing through the systems. As a result, Hershey's
inability to handle $ 100 million Kiss and Jolly Rancher's orders, even though it has most of its inventory in
stock. (ITG, 2021)
The importance of different operations management approaches in

contemporary business environment to help obtain and maintain business
competitive advantages:
Without successful floor-level control of manufacturing procedures, mistake and inefficiency will be more
widespread in the plant. There are reasons why operations management is essential for business
operations:
Reduces Manufacturing Cost – By maximizing output while minimizing inputs, operations managementt
reduces the cost of producing finished products. This can be used to improve the profit margin, or it can
be passed on to the customer to ensure a competitive advantage.
Improves competitiveness – Knowing that the right products are available on time and will be delivered
on schedule means that a company is always at stake in any market.
Accomplishes Business Objectives – Operations management lets businesses manufacture finished

products effectively. Since these finished goods are often made of high quality and shipped as desired,
companies will exploit these items to expand their businesses, secure resources for improvement, and
maximize customer loyalty.
Optimizes Use of Resources – Operations management means that labour, equipment, and resources are
optimized in the production effort. This can lower waste levels and create an environment for employees
that is positive and well balanced. With the emphasis on today's work/life balance and green initiatives
to reduce carbon footprints, effective production management that optimizes the use of resources can
help deliver on both of those trends.

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Product Quality - The first unit in a typical firm that checks durability and reliability in a product is the
operations management. Operations management sees to quality of products or goods which would suit
customers on and after delivery. When a product is of quality, it gives you an edge compared to your
competitors.
Productivity - Productivity is defined as the ratio of input to output and it is the only way to verify
employees input. Operations management ensures appropriate staffing of employees to resources so as
to get maximum result. The only way to ensure productivity is through an effective operations
management.
Customer Satisfaction - There is no feeling for a manager or an employee as a customer getting the utmost
satisfaction ever. Operations management rightly ensures this coupled with quality product. Customers
make organization thrive and they must be treated well in every way necessary and possible.
Reduced Operating Cost - Through productivity, quality products and customer satisfaction, cost incurred
on products servicing is maximally reduced. This simultaneously leads to increased revenue. Only
operations management can make this possible. In reducing operating cost, there is also waste reduction.
Exact number/size of products is produced as requested via a proper operations management.
(exeedcollege, 2021)
Explain the importance and value of operations management in achieving

business objects:
Operation functions of business:
Scheduling is a structured technique that can be extended to any instance of a scheduling model in order
to achieve a workable schedule that is likely to yield successful outcomes in terms of the intended goal.
Scheduling is a collection of activities, deliverables and goals within the project. The timetable also
normally contains the scheduled start and finish date, length and resources allocated to each operation.
Effective project scheduling is a key component of effective time management It includes the use of human
beings, equipment and vehicles in a company. Efficient arrangements will reduce the efficiency of pick-
ups, take up toll contingency funds and other benefits. (Haugan, 2001)

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As far as the scheduling is concerned, three types of schedules are required to be prepared:
1. Master Schedule - This shows the desired quantity of each form of product to be manufactured on
a regular or weekly or monthly or quarterly basis to satisfy the customer's orders or expected
demand.
2. Operation schedule - It relates to the fixing of the final cumulative time taken to perform a specific
piece of work (operation)
3. Daily Operation Schedule - Reveals the time taken to perform each thorough procedure of a given
job with the specified machine or device. (Haugan, 2001)
Application: Hershey extends this decision-making area to the administration of operations by a blend of
automation and manual processes. Automation is used for coordinating operations in the supply chain and
in manufacturing processes. Manual scheduling, on the other hand, is used by individual stores and in
some aspects of the company's departments.
Product and Design Process: Product and Design process is the process of production of most products.
This involves 4 stages, such as concept development, prototype screening, preliminary design and testing,
and final design. This method is a constant, so product prototypes must still be refreshed and refined (
(SANDERS, 2019)
Product Design explains the method of designing, developing and iterating goods that fix consumer
challenges or meet particular needs in a given market. The secret to the effective design of the product is
the awareness of the end-user buyer, the individual for whom the product is being produced. Product
makers are trying to fix actual challenges for real people by leveraging both sympathy and understanding
of the attitudes, preferences, frustrations, desires and wishes of their prospective clients. (SANDERS, 2019)
Process Design is the act of translating the mission, objectives and capabilities of the organization into a
discernible, measurable way of achieving the vision of the organization. Process design should start with
process analysis; best practices from related organisations; process comparison models from industry-
standard organizations (e.g. SCOR or eTOM) or third party consultants; or "green field"—ideas combined

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with the expertise and insights of the process design team. Process design relies on deciding what the
company can do to accomplish its financial and other objectives. (SANDERS, 2019)
Application: The extraction of raw materials is when it all starts. In order for this longed-for Hershey Bar
to become chocolate, it has to go through several stages and procedures. Let's start with a pod of cocoa.
The cocoa pod comes from tropical evergreen cocoa plants, in particular Theobroma Cacao. These
varieties of trees are known to be found in Central and South America and parts of West Africa and Asia.
These pods start green, but they're orange when they're ripe. Once they're orange, the harvesters come
to crack the pod open with a machete, and they see the cocoa beans inside.
The next step to take place is the fermentation process. The beans are put in a wooden crate covered with
banana leaves and can be left to sit there for up to 7 days. This method is so that the cocoa bean can be
heated and the sugar of the seeds can be converted into acid to break down the bitter taste of the cocoa
and make it sweeter.
Finally, the chocolate beans are now about to be dried. Harvesters will place the beans on a tray or pan
and keep them in the sun for about a week. If the beans are dried and weighed less than they had been
before, they are able to be placed in big sacks and shipped to the manufacturing firms. (candyusa, 2021)
Manufacturing is the next major step in getting closer to having a piece of chocolate. If the cocoa beans
have entered the company of Hershey, they are able to be made into cocoa butter and chocolate.
Checking, washing and roasting are the first steps. Cocoa beans are screened for any deficiency, such as
insects and mold. They make the cocoa beans into chocolate liquor after they have done this. This is how
the company can test the taste and scent. When the business of Hershey determines that they prefer beer,
the factory cleans the beans to eliminate all disgusting substances and bacteria. Once they have been
cleaned, they'll be placed in a huge roaster for about 35 minutes, where the shell of the cocoa bean
separates from the bean kernel. This is called the method of fanning. Once they're fried, they'll take the
next move that's winnowing. This method entails putting the beans into the air stream so that the extra
nibs are separated from the bean.

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Then, these nibs are then ground to produce liquid cocoa butter. They are crushed between big, heavy
steel disks that melt the fat within the cocoa butter to make the chocolate liquor. Conching is one of the
last steps to actually get to the moulding process. This step is where the soft, chocolate taste forms. The
conching machine rotates the chocolate liquor (with the other ingredients) for hours or days until the
bitter taste is gone.
In the last section, the chocolate is moulded. The chocolate liquor is tempered and refrigerated until it is
moulded however Hershey's corporation likes it so it might go through another phase to have more
caramel or peanut butter added inside. (candyusa, 2021)
A transformation process is any operation or group of activities that takes, transforms and adds value to
one or more inputs and delivers outputs to consumers or clients. (SANDERS, 2019)
Transformation processes include:
• Changes in content or client physical attributes

• Changes in inventory, details or customer position
• Changes to the possession of materials or records
• Storage or storage of materials, documents or customers
• Changes to the intent or type of knowledge
• Changes in the bodily or psychological state of customers. (Yoshizaki, 2018 )
Control and distribution systems: This function is a key element in ensuring that the management of
operations is responsible for the oversight of the manufacturing process within the company. To ensure
that the required delivery of goods is achieved in order to meet the aims and objectives of the
organization. When this function is carried out, the organization will see that its intentions to be able to
use the money efficiently will be fulfilled. The control system is a collection of mechanical or electronic
devices that govern other devices or processes by means of control loops. Control systems are usually
computerized.

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Control systems are at the heart of the market and of automation. The types of control loops that manage
these processes include industrial control systems (ICS) such as supervisory control and data acquisition
systems (SCADA) and distributed control systems (DCS). (Hussain, 2017)
Distribution systems can be described as the sequential flow of processes, systems and activities planned
and connected to promote and track the movement of products and services from source to customer.
Essentially, delivery is about making goods and services accessible to end-users as and when they need
them. (Hussain, 2017)
Capacity Management: Capacity management refers to the act of ensuring that a company maximizes its
possible operations and output—at all times, under all circumstances. The capability of a company
measures how much a company can accomplish, manufacture or sell within a given amount of time. For
manufacturing services, the capacity of management in operations management identifies the capability
of the development of the production process. This consideration serves as a guideline to ensure that no
additional products are generated while other assets are delivered and that the complexity of the
production process may increase. Without ensuring the consistency of the goods, the distribution process
would be hindered, it would have a negative image for the enterprise which would therefore be
represented by the buyers against the goals of the organization. (The Ima Foundat Far, 1998)
Application: Known as the number 1 chocolate manufacturer in the world, Hershey's perceptions that it
is very important to manage its own ingredients. Expanded globally after a great deal of growth, the prices
and weights of Hershey's goods should be forced to adapt "to meet improvements in costs, the business
landscape and sales goals, while at the same time preserving customer appeal." The corporation also takes
into account the cost of raw and packing materials, petrol, electricity, transport and employee benefits.
Good use of SMART capabilities will offer immense benefits in achieving the objectives of the organization.
By relying on sufficient factors, the corporation would be able to fully reduce the costs of computing the
time it takes to produce the goods. That's why Hershey should rely more on distribution and warehouse
operations in order to avoid inventory expenses and free up more inventory, control inventory costs and
more. In categories and workflow schedules, fair preparations for big holidays such as Valentine's Day, etc.
may draw a significant number of clients to help fund increased transactions for the business.

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Inventory and logistics management: This aspect can be seen by production services, the inventory and
logistics mechanism is a very important factor for any company, since without proper logistical help the
finished product cannot be transferred to the market on time. Failure to fulfil those duties would result in
a reduction in the market for products and services to consumers. At all stages, the organization must
concentrate on its inventory handling and how it will be able to store the remaining items that will be used
later down the road at some stage.
Logistics management relates to the general method of overseeing the acquisition, storage and transfer
of resources to their final destination. Logistics administration includes identifying potential vendors and
manufacturers and assessing their feasibility and usability. Logistics managers are referred to as
logisticians. (KENTON, 2020)
Inventory management refers to the process of ordering, storing and using a company's inventory. This
includes the management of raw materials, components and finished products, as well as warehousing
and processing of such items. (KENTON, 2020)
Management of operational functions that assist Hershey to achieve SMART goal:

In order to achieve the business objective, all OM functions are essential in service as it is a smooth
mechanism that has an intimate relationship with each other. They all carry out the same mission of
achieving a company objective. For example, the relationship between the Product, Design and Scheduling
processes in the production of chocolate by Hershey. It can be shown that the manufacturing phase of a
single product has to be combined with a set period for each stage. Failure to produce chronologically
could adversely affect the image and branding of Hershey's firm. And vice versa, despite having a packed
calendar, Hershey's would not be able to produce goods without a specific manufacturing plant.
Hershey’s objectives:
• To promote the health benefits of Hershey Chocolate

• Help the consumers change their mind-set that chocolates are unhealthy
• To spread awareness and increase sales of the product

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❖ Product and process design, scheduling, transformation process, control and distribution systems,
logistics and inventory management, resources management are key business functions that can
help Hershey's grow the market. For example, using the scheduling approach, Hershey has a simple
and specific strategy to accomplish the target of becoming a pioneer in the chocolate business. In
addition, product and process design will make it possible for the company to produce additional
flavors for its products, which would make it easier to expand the market. Hershey has also given
a good list of their company's priorities as a successful chocolate company. First of all, Hershey's
corporation is trying to make an attempt to promote the wellness benefits of the product in order
to share them with its customers. Hershey's brand, for example, wins its customers by influencing
them to choose Hershey's chocolate as the best safe chocolate. This parallels the second goal of
Hershey's corporation to add optimism to help people improve their thinking about the unsafe use
of chocolate. So, by implementing the first and second strategies, Hershey's organization will boost
retail revenue and raise awareness. Based on Specific, Measurable, Attainable, Responsible person
and Time specific (SMART) Hershey's Company does not follow this approach wisely. For the
Specific part, the corporation Hershey has failed to specify its objectives. They have to try to answer
questions about how many and what sort of target they have written. On the Measurable part, the
organization must set targets that have been stated in quantifiable terms or otherwise are just
good wishes. Measurable objectives promote management strategy, execution and monitoring.
Hershey has proven that the tool to get people who have a mind-set of chocolate is a portion of
nutritious snack food. In addition, the third part of the SMART approach is Achievable, which talks
about the objectives that would have a stretch that inspires people to reach higher and ensure that
the targets must be attainable, otherwise that they are set to fail. For Hershey, the mission or goal
of changing the customer's thinking about taking chocolate is a positive habit that has motivated
their clients to improve their loyalty. The fourth factor is that The Responsible Individual or
organization in the department is responsible for the achievement of the goals. The objectives
must be delegated to an individual or department. But just because an individual is appointed to a
task, that doesn't mean that he is entirely responsible for the accomplishment of that goal. The
corporation Hershey could not mention plainly who or which department had to play an important

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role in the implementation of the company's mission. Lastly, as regards the time-specific
component, which is a reference to time, the objectives must have a timetable of when the
objectives are to be achieved. Hershey did not state it in their purpose. This leaves the priorities
versatile so that they can never be dependent on time setting. In addition, Hershey also has its own
strategy to back up its goal of entering a new market in Canada, the United States, Mexico, Brazil
and other international locations (India, the Philippines, Japan and China), to produce new
products under a new brand name, to expand its global presence through joint ventures and
mergers, to support environmental and social projects, and to increase its presence.
❖ The most important operational function:
In my view, scheduling is the most critical role of a manager. A schedule to execute the above functions
can be generated in a logical sequence. This makes the company more disciplined, and the objectives of
the company can be achieved easily.
Management and Leadership role in business operations management:

In my view, when an organisation has a specific objective, management or leadership is equally critical.
The Leaders has to have the qualities of a leader, he has to be a leader. Leaders devise and implement
strategies for gaining and maintaining a strategic edge. Organizations require good governance and
leadership for maximum operational success. Managers are responsible for setting the company's goals
in-depth, while leaders are responsible for expressing the purpose of the organisation in a manner that
empowers team members. One of the most important tasks of a leader of an organization is to make the
"use of the lean production process" the primary objective. The job of leadership is to create a vision and
the duty of the manager is to carry out the task. A leader can become a manager, but not every manager
will become a leader. Leaders rely on the company's employees in line with the goals of the organisation.
Another job for the leaders is to encourage or inspire the employees of the organisation, to build
confidence for the staff, to help them improve their productivity and to generate strong visions for the
staff to carry out the assignment properly. Apart from the fact that managers also have a crucial role to
play in overseeing the work of the organisation, it is the manager who addresses with the employees the
aims or objectives set by the management of the company. In order to provide timely responses to these

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matters, the manager is also responsible for handling staff grievances or concerns and is responsible for
overseeing the planning and implementation of these issues. It can be shown, though, that leaders are
more dominant when they are teachers. They will guide the company and direct it to grow and meet long-
term targets. As a result, in the management of business matters, a leader is more respected than a
manager. ( (Myerson, 2012)
Factors that affect operational management:

Contemporary management issues:
a. Culture: The culture of a place/country will have an impact on the way an organisation can and will
function. The commercial climate was considered to understand and connect with the society in
which the organisation operates; the idea was to be able to design a product that would be
embraced by that population. Culture plays a vital role in the management of activities and, in this
phase, the culture of the workers is most closely linked to business practices and helps the
company to improve the productivity of the labour force within a given culture. No matter what
choice the organization takes, the culture of the group will still be remembered. People can
embrace or welcome a product/service easily by treating it as part of their community
b. Value: In order for a company to operate in the chosen market, it must take into account the
desires of the consumer and evaluate those values in order to be able to deliver a product/service
that the customer welcomes and accepts. In the field of organizational management, principles are
perceived to be considerations to be considered when raising the quality and labor standards of
the enterprise. Customer preferences play an important part in company affairs by decision-
making. Business locations help you plan choices and how to make them. Managers and executives
will concentrate on creating an appropriate working style. Provide a forum for staff to demonstrate
their abilities and talents.
c. Corporate Social Responsibility (CSR): CSR is the idea that firms have obligations to society beyond
their economic obligations to owners or stockholders and also beyond those prescribed by law or
contract (Drucker, 1954.)
Stockholder viewpoint of CSR Stakeholder viewpoint of CSR

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CSR is a by-product of the quest for gains. The The opinion is that companies must be
common view of corporate responsibility that a responsible for the standard of life of the various
commercial enterprise is accountable only to its groups impacted by the company's actions. This
members and shareholders. The role of the represents the new outlook of the company. The
manager is therefore to fulfill the financial company and its partners are working closely to
interests of the shareholders. By doing so, ensure their joint prosperity.
society's needs would be met in the long term.
d. Environmental Sustainability: "Greening" involves the pursuit of awareness and activities that can
contribute to more sustainable and more conscious choices and habits that can help conserve the
atmosphere and preserve its natural resources for present and future generations. (The Ima
Foundat Far, 1998)
e. Business ethics: Business ethics is an analysis of business environments, practices and actions in
which questions of right and wrong are discussed. (SANDERS, 2019)
The factors within the business environment that impact upon operational
management and decision-making by leaders and managers:
The impacts of Covid-19 that Hershey's stakeholders are facing:
Hershey said it’s expecting to face a number of challenges as a result of the current COVID-19 global
pandemic, including reduced demand for products, reduced availability of its products, and issues with the
supply chain, among other things. That’s according to a Securities Exchange Commission report the
company filed publicly on March 25. Hershey said these concerns express a worst-case scenario and not
necessarily issues that are currently happening. "Risk factors give companies an opportunity to let
investors know what the impact could be if certain things go wrong or otherwise do not work out as
planned," Hershey said. "They do not reflect a company’s actual expectation that the scenarios outlined
in the risk factors will occur. Rather, risk factors provide insight that a company has thought through
alternative or unplanned outcomes and help investors understand the potential impact of those
scenarios." In the form, they said there could be a variety of potential issues. “Our business and financial

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results may be negatively impacted by the failure to successfully manage a disruption in consumer and
trade patterns, as well as operational challenges associated with the actual or perceived effects of a
disease outbreak, including epidemics, pandemics or similar widespread public health concerns,” the
company said.
Specifically, in the SEC report, the company said it is concerned about:
Changes in demand: "Significant reductions or volatility in demand for one or more of our products,
which may be caused by, among other things: the temporary inability of consumers to purchase our
products due to illness, quarantine or other travel restrictions, or financial hardship, shifts in demand
away from one or more of our products, or pantry-loading activity; if prolonged, such impacts may
further increase the difficulty of planning for operations and may negatively impact our results. "
Changes in availability: Significant reductions in the availability of one or more of our products as a
result of retailers, common carriers or other shippers modifying restocking, fulfillment and shipping
practices.
Meeting customer needs and cost targets: "The inability to meet our customers’ needs and achieve
cost targets due to disruptions in our manufacturing operations or supply arrangements caused by the
loss or disruption of essential manufacturing and supply elements such as raw materials or finished
product components, transportation resources, workforce availability, or other manufacturing and
distribution capability. "
Managing promotion and advertising: "An inability to effectively modify our trade promotion and
advertising activities to reflect changing consumer viewing and shopping habits due to the cancellation
or postponement of major sporting and entertainment events, reduced in-store visits, travel
restrictions and a shift in customer advertising priorities, among other things. "
Issues with third parties: "The failure of third parties on which we rely, including those third parties
who supply our ingredients, packaging, capital equipment and other necessary operating materials,
contract manufacturers, distributors, contractors, commercial banks and external business partners,

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to meet their obligations to the Company, or significant disruptions in their ability to do so, which may
be caused by their own financial or operational difficulties and may negatively impact our operations.
"
Political changes: "Significant changes in the political conditions in markets in which we manufacture,
sell or distribute our products, including quarantines, governmental or regulatory actions, closures or
other restrictions that limit or close our operating and manufacturing facilities, restrict our employees’
ability to travel or perform necessary business functions, or otherwise prevent our third-party
partners, suppliers, or customers from sufficiently staffing operations, including operations necessary
for the production, distribution, sale, and support of our products, which could negatively impact our
results." (Lindell, 2020)
➢ Precautionary steps during COVID-19 outbreak of Hershey's:
In an announcement on the Hershey Corporate website, the company also said that its manufacturing
facilities and distribution centers are modifying their production and staffing schedules to pace with
customer and retailer demand. “Each facility will be determining work schedules and adjusting work
teams to maximize social distancing while helping to maintain food security and supply,” the company
said. All of Hershey’s corporate and commercial U.S.-based employees are working virtually, until April
15 or until further notice, and the company has restricted all non-essential employee business travel.
When it comes to sales, Hershey said, they continue to work closely with their retail partners. “We
have implemented flex work schedules to allow our teams the ability to implement social distancing
while continuing to aid retail stores to remain open with stocked shelves,” Hershey said. (Lindell, 2020)
Management or leadership role is more appreciated in the work of managing operations to fulfil
organizational stakeholders’ expectations and pressures:
Managers are people who guide the aims and objectives of the organization by pre-determined
strategies that have been relegated to them. In order to accomplish these tasks, directors need to
develop and develop approaches to the methodologies of the organisation to ensure that the
organization of the workers is carried out in a manner that satisfies the objectives of the organization.

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The optimistic opinion of managers is that they should be divided at various levels within the trade,
allowing them to oversee tasks across different departments. In addition, managers may have a
responsibility to manage the evaluation of their group, the system of assessment will be dependent on
a person's exhibits and on the way in which they conduct their duties. In addition, the leaders are the
people who get the job done for those who use the company. In the same way, as leaders, pioneers
are a key influence in the work of propelling the workforce by leveraging their communications and
management capabilities. They are talented to get a community to achieve their goals and aims, and
the most promising outcome of a pioneer is that they will have an effect and cause a worker to succeed
at their stage. Managers and leaders are also critical in managing activities to respond to the demands
and challenges of the stakeholders of the company.
The pressures and expectations of different stakeholder groups can impact significantly and shape a
company’s strategy and operations in general:
Entrepreneurship today is widely viewed as a key asset in a country's financial improvement period. Taking
this fact into account, company innovation has received sincere attention from managers and
entrepreneurs as a strategy for responding to external consequences. The review identifies the impact of
empowering businesses on financial development in emerging economies. In this way, efforts are to be
coordinated towards the pursuit and enhancement of those creative capabilities. The manner in which
entrepreneurial ability is a cultivable resource, the inventory of which can be developed and updated by
training, preparation and a useful financial climate, has constrained policymakers and organizers to think
about the enterprise as an attractive and sensible path to the monetary turn of events. Many
administrators and leaders have generally acknowledged that promoting entrepreneurship is essential to
addressing external challenges, as well as clients, stakeholders and staff. (Darskuviene, 2014)
Conclusion:
From the above essay on Hershey's Company, as speculators, came up with the concept of an
association's business measures that prove that administration is a key element in the achievement or
disappointment of a business. At a similar moment, allowing Hershey's pioneers and managers to make

lOMoARcPSD|9786412
informed decisions to screen and evaluate the strengths and advantages of approaches to managing
workplace activities. In addition, there are specific views on leadership and management role. The
research analyzed critical evaluations of the company's multiple viewpoints in order to equate them
with the positive, as well as the negatives of Hershey's face. Solving existing challenges and making the
best choices would be the aspects that the organization has to consider in order to succeed further in
the future.
Recommendation:
During the year-round disruption, the bulk of leaders face the consequences of the pandemic because
there is a great deal of information and transition in the environment that companies cannot predict.
Therefore, in order to provide expertise and strategies of healing, understand the reasons needed to
make the correct decision. Since in the foreground, incorrect decision-making by the leaders will have
a significant effect on the business and make the right choices by them, the ability of the consultant to
recruit experts as well as trainers with knowledge of Covid-19 is required, ensure that their business is
strong, viable, and potential.

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References
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https://community.alteryx.com/t5/Engine-Works/Tackling-Queued-Jobs-With-Queueing-Theory-Part-
1/ba-p/475036
BANTON, C. (2021). What Is Just-in-Time (JIT)? In C. BANTON, CORPORATE FINANCE & ACCOUNTING (p. 34).
candyusa. (2021, 3 6). The Story of Chocolate. Retrieved from candyusa: https://candyusa.com/story-of-chocolate/
Carey, M. (2021). Accounting: A Smart Approach. In M. Carey, Accounting: A Smart Approach.
Darskuviene, V. a. (2014). Stakeholder expectations and influence on company decisions. In V. a. Darskuviene,

Stakeholder expectations and influence on company decisions.
Dictionary. (2021, 3 6). Lean Production. Retrieved from techopedia:

https://www.techopedia.com/definition/14441/lean-production
Drucker, P. F. (1954.). The practice of management. In P. F. Drucker, The practice of management (p. 22). New
York : Harper & Row.
exeedcollege. (2021, 3 6). Importance of Operations Management in Business Organizations. Retrieved from
exeedcollege: https://exeedcollege.com/blog/importance-of-operations-management-in-business-
organizations/
Haugan, G. T. (2001). Project Planning and Scheduling (Project Management Essential Library). In G. T. Haugan,
Project Planning and Scheduling (Project Management Essential Library).
Hussain, S. (2017). What is Distributed Control System DCS? In S. Hussain, Engineering Science and Technology, an
International Journal.
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https://www.itgvietnam.com/nguyen-nhan-he-thong-erp-trong-doanh-nghiep-that-bai/
KEMP, S. (MAY 6, 2020). What Is Six Sigma in Operations Management? In S. KEMP, What Is Six Sigma in
Operations Management? (p. 3).
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Lindell, C. (2020, 4 1). Hershey expresses concernver impact of covid 19. Retrieved from Candyindustry:
https://www.candyindustry.com/articles/89054-hershey-expresses-concern-over-impact-of-covid-19
Mulholland, B. (2018). 9 Lean Manufacturing Principles to Kill the Jargon and Get Quality Results. In B. Mulholland,
9 Lean Manufacturing Principles to Kill the Jargon and Get Quality Results.

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Myerson. (2012). Lean supply chain management what is it and why should you care. In Myerson, Lean supply
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Unit 4 488 Assignment 2 Caoxuansang

Human Resource Analytics (University of Greenwich)

StuDocu is not sponsored or endorsed by any college or university

ASSIGNMENT … FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Management and Operations (488)

Submission date 06/03/2021 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name CAO XUAN SANG Student ID GBD191262

Class 488.0901A Assessor name NGUYEN HUU NAM PHUC

Student’s signature: Date:

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 Summative Feedbacks:  Resubmission Feedbacks:

Grade: Assessor Signature: Date:

Signature & Date:

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Figure 1. Products of Hershey’s .................................................................................................................................... 5

Table 1. Profile of Hershey’s ......................................................................................................................................... 6

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Figure 1. Products of Hershey’s

Name of the company Hershey’s

Industry Food processing

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Predecessor Lancaster Caramel Company

Establish February 9, 1894 (as Hershey Chocolate Company)

The head office Lancaster, Pennsylvania, United States

Slogan Pure Hershey’s. Pure happiness.

Total assets $8,14 billion (2019)

Chairman of the board Michele Buck

Company’s Website https://www.hersheys.com/en_us/home.html

The organizational structure:

Figure 2. Hershey’s Organizational structure

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Explain the operations and operations management theories and

Figure 3. Queuing theory (Alteryx, 2021)

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• A: is the arrival process

Application for Hershey’s

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Figure 4. Lean manufacturing (Denbaohieu, 2020)

The systematic elimination of 7 waste types

Type of waste Example

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• To make it easier for employers to grasp • Planning and organising production

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and waste saving levels as well as higher • Overseeing production processes

Effective lean production requirements

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Figure 5. The Six Sigma approach consists of 5 steps (DMAIC)

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MBO & SMART criteria:

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Figure 6. MBO Process Cycle Peter Drucker (Drucker, 1954.)

According to University of California (2017), the SMART criteria is:

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important know when it • How with the achieved

Total Quality Management Approach:

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• Developing procedures by performing and • Emphasis on improving the organization

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Just in time production: