The Kellogg's Company

The Kellogg's company.

The Kellogg's company uses rice, corn, fruits, cocoa and sugar as its raw materials as it is the cereal company. Up to now they have opened manufacturing plants in nineteen countries as their facilities. They have employees to run operate these plants and do maintenance on them and to run a day to day business. They produce these products to satisfy the orders from their customers. This all included is the Input resources.

These raw materials are processed by the staff through these manufacturing plants to produce cereals. This stage is the transformation process.

The product is the different kinds of cereals that get sold to customers via the shops at the Malls and wholesalers.

Question 2

Operations management

We discussed above the three levels of the business. The most important part of the operation of the Kellogg's business is making cereals to satisfy the customer needs which is healthy breakfast. Their philosophy was 'improved diet leads to improved health'. The manufacturing of cereals is only part of the greater operations network to get the deliver the end result which is breakfast on the table of the customer.

There are several suppliers of inputs to the company which range from raw materials like corn and sugar, parts of manufacturing plants for their maintenance to the employees which make it possible to make the output. Let us take for example the raw materials such as rice which is grown from the farm, they have their own operations of preparing land and planting rice up to harvesting their output as rice which in turn becomes the input resource to the business of making cereals.

When these products are finished they are the input resource to the other operations department which is packaging. That department as well has its own three stages of operations which is input-transformation-output. There are different divisions in the company itself where these products go through until they go to the logistic company taking it to their customer which is wholesalers and shops in the malls from where the consumer will end up buying them. These processes are called supply network.

Because there are smaller versions of operations inside the bigger operations they form supply network. Each process is at the same time internal customer and internal supplier for other processes. Regardless of being internal supplier and customer it is very important to maintain the high quality output throughout these processes as at the end of the day the end product goes to the external customer who needs to enjoy healthy but delicious breakfast, otherwise the company