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Energy Efficiency and Economics of Process

Question:

Discuss about the Energy Efficiency and Economics of Process.

Answer:

Introduction:

Production management is a major contributor to the performance of an enterprise that is responsible for integrating and transformation of different resources in the production subsystem of an organization. The resources are transformed into final products and services in a controlled manner in accordance with the organizational policies and objectives. The modern environment available for business organizations reflects on the dynamism observed in the customer preferences. This factor serves as the indicator of the opportunities for alignment of production processes with customer requirements. The anticipation of customer needs could be realized profoundly through the realization of market research that provides comprehensive insights into the product design thereby enabling the organization to improvise their production process (Bell, 2017).

The confectionery industry is not new to the name of Cadbury’s which is a leading British confectionery enterprise under full ownership of Mondelez International. The large scale operations of the enterprise reflect on the needs to evaluate the issues with production process of the organization and estimating the role of market research in determining the information required for tailoring the production process to the market demands of people. The following research aims to identify the relationship between market research and factors influencing the production process that can be used to derive inferences into effective production management of Cadbury’s (Burger & Hasse, 2013).

Production has been accounted as a promising business activity with the maximum potential for inducing strategic advantage for an organization. Majority of research studies pertaining to the implications of production management have been encompassed in the disciplines of production and inventory control and operations control. The following research context is vested in the variables of production management, market research and customer satisfaction. The use of market research for acquiring information from customers regarding their preferences has a substantial contribution to the improvement of customer satisfaction in terms of the fulfilment of their requirements (Burger & Hasse, 2013).

The identification of underlying pitfalls in the production process of an organization could be executed through internal audits only to imply references to the bias observed from the consideration of organizational perspective in such analyses. Empirical studies have comprehensively indicates references to the interplay between the distinct relationship between production management and performance of an organization (Cai et al., 2015). However, the lack of research in context of the influence of production management on customer satisfaction and vice versa has not been addressed comprehensively in research studies. The limited source materials of research accessible in context of production processes and their interrelationship with market research as well as customer satisfaction characterize the project context in this report. Resolution of the issues identified in the research background would be possible through a detailed analysis of secondary data obtained from research study literature and the annual reports of the concerned organization i.e. Cadbury’s (Coats et al., 2013).

The research background could be characterized by the involvement of three profound variables and the identification of the interrelationship between them. The distinct variables that have been included in this research project refer to production management, market research and customer satisfaction. The definition of the individual variables could provide a valid representation of the research background. Production management has been defined as the collective assortment of management activities that are associated with the selection, design, operations, controls and updates in the production system of an organization (Dharma et al., 2016).

The wider scope of research study literature on production management expands the definition of production management with profound references to the coordinated implementation of resources for acquiring specified products through specialized methods to accomplish established sales targets. Market research can be defined as the approach for collecting and analyzing data acquired from companies, firms, managerial staff, employees and customers in context of the concerned industry. The different applications of market research are directed towards provision of credible insights for improvement of business functions within an organization (Friel & Harris, 2013). Customer satisfaction is defined as the extent to which a services’ or product’s performance is able to cater the expectations of customers regarding the product or service. The two factors which are taken into consideration for determining the perception of a customer regarding a specific product are subjective factors and objective factors. The subjective factors comprise of profound references to the behavioural patterns and belief system of customers while objective factors refer to product features (Gullo, Verzelloni & Canonico, 2014). In this research background, the objective factors of customer satisfaction would be taken into account since the application of market research would be directed towards apprehending customer perception of product design in order to induce changes in production process. This factor has to be established through analysis of secondary data in the findings of this research report.

Aims and Objectives:

The research has its primary aim vested in identifying the effectiveness of the use of market research for determining customer satisfaction thereby leading to an impression of changes that must be introduced in the production process of Cadbury’s in order to acquire strategic advantage. The objectives of the research would be presented in the form of research questions which are highlighted below.

What are the factors affecting production process of Cadbury’s?

Which technique would be suitable for Cadbury’s for effective production management?

What is the effectiveness of market research in providing insights for changes in the production process of Cadbury’s?

The development of a business is largely described by the implications of an effective business cycle in which production plays a significant role. The impact of specific implications pertaining to production process on the overall productivity of an enterprise has been illustrated explicitly in majority of research activities. The effect of productions and operations management on the financial growth of enterprises has been noted across the course of the past two centuries. The historical origins of production management are vested in the identification of economic benefits that could be obtained through specialization of labour in manufacturing processes (Guchhait, Maiti & Maiti, 2013).

 Research studies have classified production as an integral aspect of an organizational framework which is associated with the transformation of a wide assortment of inputs into the desired outcomes or products that are able to align with a specific quality precedent. Another generic definition of production refers to its role in improving the utility of a product for the user and is thereby considered a value added process. This finding suggests that the production process is able to contribute to the value proposition offered to customers thereby indicating the opportunity for reducing disparities between the perceived product performance and the expectations of customers regarding the product (Liu et al., 2013). The prominent requirement for identifying the pitfalls associated with production systems is essential for enterprises in order to adapt to contemporary standards of customer needs thereby obtaining sustainable practices. As per Miao et al, the objectives of production management in an organization could shed some light exclusively on its significance as well as dependence on customer needs. Production processes of an organization are required to deliver the outcomes of appropriate quality, quantity, manufacturing costs and time which determine the effectiveness of the process (Miao et al., 2014).

The outcome of right quantity in context of production would ensure appropriate adjustment with inventory management and addressing supply and demand requirements. The aspect of right quality is determined from the needs of customers and is determined on the basis of technical characteristics and cost of a concerned product. Delivery of products on the appropriate time is necessary for validating the effectiveness of production processes to address customer as well as business goals of an enterprise. The production process should be able to deliver the desired end products within the specified limits of manufacturing cost established in the planning stages.

An interpretation of the production cycle as observed in secondary sources could provide viable insights into the requirement for market research. The production cycle refers to the actual flow of activities that can be observed in the manufacturing process for a specific product or service. The initial stage involved in the production cycle is market research that facilitates comprehensive information regarding customer needs and preferences. The aspects of marketing research have to be communicated to the product design department by the marketing department. This factor is leveraged by the design department to tailor product design to customer requirements and communicate the relevant design specifications to the production department of the enterprise (Noroozi & Wikner, 2017).

The production department reviews the specifications provided by the design department with respect to the available resources, competences and technology in the production system. This review in the production stage is responsible for determining the feasibility of the production project and the outcomes of the review can be leveraged by the production manager, marketing manager and design engineer to make viable changes in the product without clipping off customer needs from the equation. Reforms in the product design are followed by the design department conducting market research in order to anticipate the demand for the product and frame a relevant sales program that can be communicated to the senior management of the organization. Nasrullah et al said that this factor indicates profound references to the significance of market research in the production process and it can be aptly stated that lack of market research would be reflective of the limitations of production system of an organization to ascertain customer preferences and market demands (Nasrullah et al., 2014). The limitations perceived in estimation of customer requirements and trends in market demand could lead to ambiguities regarding a suitable product design. The top management is responsible for reviewing the proposals presented by the design department in order to allocate budget for the production process (Setlhaku et al., 2013).

The production cycle is responsible for initiating a trial run of the production process that would facilitate the sales department to release the product in specific markets where customer acceptance could be apprehended explicitly. The impact of market research is perceived in this case also which is largely responsible for altering the aspects of production process in an organization. The outcomes of the marketing research derived from trial runs of the product in selected markets could be implemented for validating the feasibility of the production process.      

The methods that could be applied for improvement in the production process of Cadbury’s can be identified through the review of the distinct factors of production. Research studies indicate that the production management department of an organization is responsible for monitoring the factors of production. The technique that can be applied for addressing insufficiencies in the production process can be apprehended in the comprehensive analysis of the individual factors of production. As per Vaman et al, material selection for products is a prime responsibility for production manager and in the case of Cadbury’s the requirement of natural resources such as cocoa beans that are acquired from the cocoa trees in the native Central and South American Rainforests as well as tropic locations across the world. The raw materials include cocoa pods from trees which are catered effectively for a long duration prior to preparing them for chocolate manufacturing (Vaman et al., 2015).

The aspects of labour in Cadbury’s production process is characterized by the involvement of human resources in harvesting of cocoa pods, manual splitting of the cocoa pods to extract beans and the processes of fermentation, drying, bagging and winnowing that are significant for preparation of the beans for production process. Capital aspects in the production process have been identified in the machinery which is involved in manufacturing chocolate such as roasting with the help of special gourmet ovens, grinding with the help of stone mills and pressing with the use of hydraulic press in order to form the chocolate mass. The chocolate mass is reviewed for quality and then is shipped to different factors for manufacturing of chocolate. The management of the production process is a crucial aspect for effective outcomes and is accountable for ensuring the standardization of other production factors such as estimation, loading and scheduling, despatching and inspection of products (Van der Merw et al., 2013). The case of Cadbury’s reflects on the role of the Board of Directors and other significant authoritative figures in the management of the production process with the responsibilities for determining the distribution aspects in terms of quantity and nature of the product. The management is responsible for reviewing the product specifications in accordance with the outcomes of market research on product features and customer perception in order to derive a plausible technique that could address the insufficiencies observed in the production process of Cadbury’s.    The project plan that has been utilized in context of this research activity is largely dependent on the depiction of data collection approaches followed in the research project. The data collection process is largely associated with evaluation of literature obtained from research studies associated with production management, market research and customer satisfaction (Yin et al., 2013). The secondary information acquired from research study literature could be utilized as inputs for this research report in order to realize data analysis, identify gaps in existing research and facilitate recommendations for future research. The completion of the project is outlined in the project plan with formidable references to the illustration of milestones and schedule for the project completion.

Data analysis and findings:

The review of the secondary source of information acquired from the annual report published by Cadbury’s for the Securities and Exchange Commission with respect to the literature review findings would facilitate an impression of the factors affecting production process of Cadbury’s. The significance of market research could be apprehended from sources which illustrated the dependence of production cycle of an organization on market research. The outcomes of the individual research and theoretical studies in context of production management suggest that integration of production management and market research would be supportive for addressing the pitfalls observed in production system design alongside addressing customer satisfaction (Nasrullah et al., 2014). Cadbury’s has a formidable presence in the confectionery market and is accounted as one of the productive emerging markets business. The growth of Cadbury’s in emerging markets for confectionery businesses has been estimated to be 12% every year thereby emphasizing the importance of emerging economies for the company.

This factor inferred from secondary source can be assumed as a descriptor of the potential requirement for higher product growth rates in emerging markets along similar lines as that of developed markets. Therefore, the production management of Cadbury’s could not neglect the significance of the potential in emerging markets for which it requires to identify the risks presented for the production process of the organization (Noroozi & Wikner, 2017).

The risks that were profoundly observed in context of production process reflect on the lack of functional information technology infrastructure that can facilitate planning and decision making processes in the production management. The dependence of the company on precise and timely delivery of information and numerical statistics that support the production management could be accounted as a major risk factor for production at Cadbury’s. This factor suggests the profound requirement for anticipating market research as a feasible opportunity for obtaining the timely delivery of market information as well as improving the controls and updating of information systems of the organization (Miao et al., 2014). The operations of Cadbury’s in different countries reflects on the interdependence between different business components that lead to observation of profound disruptions in terms of supply of raw materials and products, development of sales and marketing approaches for new products, funding and support services as well as technology. These disruptions can be assumed as formidable setbacks for the production process of Cadbury’s which require immediate attention in order to prevent the adverse impacts on the financial performance of individual business units and the company as whole. Contamination of products can be identified as one of the side effects noticed in the production process that can pose as a major risk factor for Cadbury’s which is further complemented by the use of a varying assortment of raw materials for production. The detrimental consequences of contamination of ingredients lead to the profound delays in manufacturing and delivery thereby affecting the financial aspects of the organization (Guchhait, Maiti & Maiti, 2013). Further reflection on other secondary sources of information identified in the literature review indicates that the delay in manufacturing could be accounted as a depreciation of effectiveness in the production process and could lead to major pitfalls for the organization to address market demands and coordinate production volumes effectively to prevent overstocking of inventory in course of the process. The report also emphasizes on the significance of market research in improving the effectiveness of production process outcomes for Cadbury’s. The implementation of market research would enable Cadbury’s to obtain various benefits such as a comprehensive interpretation of the competitive intensity in the market environment and the concentration of customer base. This would enable the organization to observe the sources of competitive advantage for competitors that can be identified in focused areas for change, entry into new markets, improving investments in marketing; reduce prices and development of new products. Furthermore market research is reflective of the implications rendered by outcomes pertaining to the variations in consumer demand for products of Cadbury’s.

The market research outcomes would enable Cadbury’s flexible responses to drastic changes in customer preferences and demands alongside coordinating the costs that would be associated with the response (Guchhait, Maiti & Maiti, 2013). Cadbury’s could also be able to leverage market research outcomes for refining its production process through obtaining credible insights into the price and supply volatility of significant raw ingredients required for manufacturing the chocolate mass such as cocoa, energy, packaging materials and milk. The collation of outcomes of market research regarding raw materials and customers in the market environment for Cadbury’s could provide viable insights for the organization to tailor its production processes to the demands of customers as well as the availability and quality of raw materials.

The prominent gap that can be identified from the inferences of this research report refer to the lack of consideration for distinct dimensions of customer service objectives and resource utilization objectives of production management. The consideration of these factors would have provided flexible interpretation of the relationship between production management and market research that facilitates an impression of customer needs alongside reflecting on the issues with the use of resources for effective production (Van der Merw et al., 2013).

Future recommendations:

The recommendations that can be presented with respect to the above research report refer to the consideration of a wider set of variables in order to analyze the insufficiencies in production process. The references to different types of market research and the instruments that are used for distinct business information objectives should be encompassed in the scope of future research activities. It would also be imperative to consider an improvement in the funding for the research alongside feasible and frequent access to physical resources that would assist in the research such as data collection process.

Sl. No.

Activity

Week 1

Week 2

Week 3

Week 4

Week 5

1.

Finalizing a research topic

 

 

 

 

 

2.

Identification of project aims and research questions

 

 

 

 

 

3.

Data collection through secondary sources

 

 

 

 

 

4.

Data collection through primary sources

 

 

 

 

 

5.

Data Analysis

 

 

 

 

 

6.

Research findings and recommendations

 

 

 

 

 

7.

Final formatting and submission

 

 

 

 

 

Conclusion:

The research report identified the relationship between production management and market research with respect to the final outcome of customer satisfaction. The findings reflect on the fact that market research and comprehensive audit of the risk factors for production could assist Cadbury’s in restricting the malfunctions observed in its production facilities.                  

References

Bell, J., (2017). 'Setting the joy free'with Cadbury UK: A CDA analysis of how persuasion is communicated within Cadbury UK's social media discourse, according to Aristotle's' persuasive proofs'.

Burger, J., & Hasse, H. (2013). Multi-objective optimization using reduced models in conceptual design of a fuel additive production process. Chemical Engineering Science, 99, 118-126.

Bustamante-García, V., Carrillo-Parra, A., González-Rodríguez, H., Ramírez-Lozano, R. G., Corral-Rivas, J. J., & Garza-Ocañas, F. (2013). Evaluation of a charcoal production process from forest residues of Quercus sideroxyla Humb., & Bonpl. in a Brazilian beehive kiln. Industrial crops and products, 42, 169-174.

Cai, Z. Z., Wang, Y., Teng, Y. L., Chong, K. M., Wang, J. W., Zhang, J. W., & Yang, D. P. (2015). A two-step biodiesel production process from waste cooking oil via recycling crude glycerol esterification catalyzed by alkali catalyst. Fuel Processing Technology, 137, 186-193.

Coats, E. R., Searcy, E., Feris, K., Shrestha, D., McDonald, A. G., Briones, A., ... & Prior, M. (2013). An integrated two‐stage anaerobic digestion and biofuel production process to reduce life cycle GHG emissions from US dairies. Biofuels, Bioproducts and Biorefining, 7(4), 459-473.

Dharma, S., Masjuki, H. H., Ong, H. C., Sebayang, A. H., Silitonga, A. S., Kusumo, F., & Mahlia, T. M. I. (2016). Optimization of biodiesel production process for mixed Jatropha curcas–Ceiba pentandra biodiesel using response surface methodology. Energy Conversion and Management, 115, 178-190.

Friel, R. J., & Harris, R. A. (2013). Ultrasonic additive manufacturing–a hybrid production process for novel functional products. Procedia CIRP, 6, 35-40.

Gullo, M., Verzelloni, E., & Canonico, M. (2014). Aerobic submerged fermentation by acetic acid bacteria for vinegar production: process and biotechnological aspects. Process Biochemistry, 49(10), 1571-1579.

Guchhait, P., Maiti, M. K., & Maiti, M. (2013). Production-inventory models for a damageable item with variable demands and inventory costs in an imperfect production process. International Journal of Production Economics, 144(1), 180-188.

Liu, H., Hu, H., Jahan, M. S., & Ni, Y. (2013). Furfural formation from the pre-hydrolysis liquor of a hardwood kraft-based dissolving pulp production process. Bioresource technology, 131, 315-320.

Miao, Q., Chen, L., Huang, L., Tian, C., Zheng, L., & Ni, Y. (2014). A process for enhancing the accessibility and reactivity of hardwood kraft-based dissolving pulp for viscose rayon production by cellulase treatment. Bioresource technology, 154, 109-113.

Noroozi, S., & Wikner, J. (2017). Sales and operations planning in the process industry: A literature review. International Journal of Production Economics, 188, 139-155.

Nasrullah, M., Vainikka, P., Hannula, J., Hurme, M., & Kärki, J. (2014). Mass, energy and material balances of SRF production process. Part 1: SRF produced from commercial and industrial waste. Waste management, 34(8), 1398-1407.

Setlhaku, M., Heitmann, S., Górak, A., & Wichmann, R. (2013). Investigation of gas stripping and pervaporation for improved feasibility of two-stage butanol production process. Bioresource technology, 136, 102-108.

Vaman, S.K., Pearson, S.J.P., Norton, C.R.T. and Elleman, C.J., Cadbury Uk Limited, (2015). Confectionery and methods of production thereof. U.S. Patent 8,993,020.

Van der Merwe, A. B., Cheng, H., Görgens, J. F., & Knoetze, J. H. (2013). Comparison of energy efficiency and economics of process designs for biobutanol production from sugarcane molasses. Fuel, 105, 451-458.

Yin, S., Ding, S. X., Abandan Sari, A. H., & Hao, H. (2013). Data-driven monitoring for stochastic systems and its application on batch process. International Journal of Systems Science, 44(7), 1366-1376.

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