How Carlos Gutierrez used operations management to reduce costs and build Kellogg's competitive advantage?

Essay by master494 March 2005

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1> How has Carlos Gutierrez used operations management to increase quality and responsiveness to customers and built Kellogg's competitive advantage?

In order to look into Carlos Gutierrez's operation management's applications, we should elaborate what are the aims of operation management focuses on in global terms. Operation management has for goal to maximise profit. In order to do so, it looks on ways to maximise efficiency all along the production system; from when the input is acquired to when it has been changed into output and displayed. Efficiency looks at how delivering a low cost made, high quality product within the frame of mind that it reposes on profit making.

Carlos Gutierrez is quoted to e a man of creativeness in which he keep a constant look on how the future trends; consumer influence are evolving; p636 "He stays in tune with pop culture by poring over such magazines as Time ..."

Creativeness in product development as well as responsiveness to consumer are keys to operational management. The article stated that within the time Carlos Gutierrez came to be a CEO, Kellogg was set-back from its main competitor General Mills by not having a wide range of products that suited the new American lifestyle. Kellogg flowered in many aspects on what it is stated on how the customer's choice is based upon. From the Improving Responsiveness to Customer's paragraph, we see that customers needs are based upon; Low price, high quality, quick services & and quick after sales services, broad range of features and customized products. For once, Carlos Gutierrez had to take steps to improve Kellogg's quality to restore Kellogg's image to the Mexican market when he was set to be head of the Mexican's region dept. he applied TQM that centres improving the quality of an organization's products...