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UNIVERSITY OF CENTRAL PUNJAB

GUJRANWALA

PROJECT
Techniques of TQM in Unilever

Submitted From:
Nimra Shahbaz
G1F16BBAM0010
BBA 8 (HRM)

Submitted To:
PROF. Ayesha Saeed

Submittion Date:
July 1, 2020
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Table of Content Pg no

1. Dedication 03

2. Declaration 04

3. Acknowledgement 05

4. Executive Summary 06

5. Introduction 07

6. History 07

7. Products 08

8. Total Quality Management 09

8.1 TQM and Unilever 09


8.2 Six Sigma 09

8.3 Just in Time System and Total quality control 10

8.4 Quality Management Culture 10

8.5 Cross Culture Communication 10

9. Conclusion 11

Declaration:
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I am student of University of Central Punjab (UCP) Gujranwala session 2016-2020, here
we declare that the material printed in the project titled project on “TQM approaches of Unilever
Company” is my own work based on the data collected from any website or helping material.

Signature of all group members:

Nimra Shahbaz: ___________________________

Dedication
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I dedicate my project to my respected Prof. Ayesha Saeed who guided me and supported me
whenever i needed her”

Acknowledgement
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All the praises for Allah who is the master of judgment day & who is the Merciful Beneficial to
his creation. I have the tear of my eyes to admire blessings of the compassionate and omnipotent
because the words are bound, knowledge is limited and time is short to express his dignity.
I offer my humblest thanks from the core of my heart to the HOLY PROPHET HAZRAT
MUHAMMAD (SAW). Who is forever a model of guidance and knowledge of humanity
I wish to express my deep sense of gratitude to our worthy teacher Prof. Ayesha Saeed project
supervisor ,valuable guidance and supervision under which this project is has been completed .
We specially acknowledge all the persons who helped us and supported us in providing the
required information for this project report directly or indirectly…

Executive Summary

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Unilever is a British-Dutch multinational consumer goods company, headquartered in London,
England. Unilever was founded on September 2, 1929 by the merger of the Dutch margarine
producer Margarine Unie and the British soap maker Lever Brothers. Unilever has 500 operating
companies in 80 countries. It has 1.5 million employees and turnover of sales in 23000 million
pounds. The global business proportion is 60% in Europe 20% in North America and 20% in rest
of the world. It has research and development facilities in China, India, the Netherlands, United
Kingdom and United States. Unilever has a primary listing on the London Stock Exchange and is
a constituent of the Financial Stock Exchange 100 Index.
Its products are available in around 190 countries. Unilever’s products are organized into four
main divisions Foods, Refreshment (beverages and ice cream), Home Care, and Beauty &
Personal Care. Its products include food, energy drink, ice cream, tea, cleaning agents, beauty
products, and personal care products. Unilever is the largest producer of soap in the world
TQM can be defined as the strategy or action to maintain the level of excellence of a product or a
service. Unilever introduced the TQM (Total Quality Management) programs in some of its
subsidiaries. These new measures include the construction of the organizational culture, the
management of human resources (including staff member management and customer
relationship management), the management of industrial relations and the emphasis on team
building methodologies.
In the current time, the TQM strategy has been widely exercised in almost all the business
branches of the company. From the case of Unilever, TQM principles have been introduced and
utilized to the management of Unilever at large. The success of a business is not only determined
by the business assets and financial resources, but also by how business organizations rationalize
their business behavior and management tool

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Unilever
Introduction
Unilever is a British-Dutch multinational consumer goods company, headquartered in London,
England. Unilever was founded on September 2, 1929 by the merger of the Dutch margarine
producer Margarine Unie and the British soap maker Lever Brothers. During the second half of
the 20th century, the company increasingly diversified from being a maker of products made of
oils and fats, and expanded its operations worldwide. Its headquarters are in London, England,
UK, Rotterdam and Netherlands. They serve their products worldwide
Unilever is a dual-listed company consisting of Unilever N.V., based in Rotterdam, and Unilever
plc, based in London. The two companies operate as a single business, with a common board of
directors. Unilever is one of the oldest multinational companies.
Unilever is a famous international company that deals with the sale of daily consumer products
and one of the major fast moving consumer goods manufacturers in the world, which products
are focusing on the areas of food, family usages, refreshment and personal care products.
Unilever has 500 operating companies in 80 countries. It has 1.5 million employees and turnover
of sales in 23000 million pounds. The global business proportion is 60% in Europe 20% in North
America and 20% in rest of the world. It has research and development facilities in China, India,
the Netherlands, United Kingdom and United States. Unilever has a primary listing on the
London Stock Exchange and is a constituent of the Financial Stock Exchange 100 Index

History
In September 1929, Unilever was formed by a merger of the operations of Dutch Margarine Unie
and British soap maker Lever Brothers, with the name of the resulting company a portmanteau of
the name of both companies.
Sunsilk was first launched in the UK in 1954. Dove was first launched in the US in 1957.
Unilever took full ownership of Frosted Foods in 1957, which it renamed Birds Eye. The US-
based Good Humor ice cream business was acquired in 1961. In 1971, Unilever acquired the
British-based Lipton Ltd from Allied Suppliers.
By the mid-1960s laundry soap and edible fats still contributed around half of Unilever's
corporate profits. By the end of the 1970s through acquisitions, Unilever had gained 30 percent
of the Western European ice cream market. In 1971, Unilever acquired the British-based Lipton
Ltd from Allied Suppliers. In 1978, National Starch was acquired which they later sold in 1997.
In 1986 Unilever strengthened its position in the world skin care market by acquiring Chese
brough-Ponds. In 1989, Unilever bought Calvin Klein Cosmetics and Elizabeth Arden which
later they sold. In 1993, Unilever acquired Breyers from Kraft, which made the company the
largest ice cream manufacturer in the United States.
In 2001, Unilever split into two divisions: one for foods and one for home and personal care. In
the UK, it merged its Lever Brothers and Elida Faberge businesses as Lever Faberge in January

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2001. In September 2009, Unilever agreed to acquire the personal care business of Sara Lee
Corporation which was completed on 6 December 2010
Unilever divested its specialty chemicals businesses to ICI in 1997. In the 2010s, under the
leadership of Paul Polman, the company gradually shifted its focus towards health and beauty
brands and away from food brands showing slow growth.
On 16 December 2016, Unilever acquired Living Proof Inc, a hair care products business. In
November 2017, Unilever announced an agreement to acquire the Tazo tea brand from
Starbucks.

Products
Unilever owns over 400 brands, with a turnover in 2017 of 53.7 billion euros, and thirteen brands
with sales of over one billion euros: Axe/Lynx, Dove, Omo, Heart brand ice creams, Hellmann's,
Knorr, Lipton, Lux, Magnum, Rexona/Degree, Sun -silk and Surf.
Its products are available in around 190 countries. Unilever’s products are organized into four
main divisions
 Foods,
 Refreshment (beverages and ice cream),
 Home Care,
 Beauty & Personal Care.
Its products include food, energy drink, ice cream, tea, cleaning agents, beauty products, and
personal care products. Unilever is the largest producer of soap in the world.

Home Care Personal Beverages Food


Product

Personal Wash Hair Care Leaf Teas Oil And Dairy


Banaspati,
Sunsilk Shampoo Yellow Label, Yellow Dalda
Harmony Soap Label- Danedar,Taaza
Lifebuoy Shampoo Leaf, Supreme Brooke
Bond, Dust Teas

Toilet Soaps Skin Care Ice Cream Cooking Oil


Lifebuoy Fair & Lovely Skin Cornetto, Feast, Chocu Dalda Cooking
Lux, Rexona Cream and Lotion Bar, Minimill, Sola, Jet Oil(Soya Bean), Dalda
Fair & Lovely Soap Spot, Ice Lolly, Wall’s Sunflower Oil, Planta,
Kulfi, Panda, Pop Corn Margarine

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Fabric Wash Dental Care Mixture Tea Blue Band

Surf Excel, Power Close-up Tooth Paste,


Surf, Sunlight, Soap Pepsodent
Wheel
Home Care
Vim Dish Washer

Total Quality Management


TQM is a totally new set of management principles that were created by observing the new
changes of environment of business organizations under the condition of contemporary world
market. Or, it is a product of the management methodological innovations accelerated by the
revolution of marketing information exchange style and the new features of modern business
organizations so, the term TQM can be defined as the strategy or action to maintain the level of
excellence of a product or a service.

Unilever and TQM


As a large international company, Unilever has long been paying attention to the implementation
of high quality management. This is especially in the recent years when the company adopts a
variety of measures to strengthen its measures in maintaining a higher level of business service.
In the 1990’s, in order to test and practice the new management techniques and principles,
Unilever introduced the TQM (Total Quality Management) programs in some of its subsidiaries.
These new measures include
 The construction of the organizational culture,
 The management of human resources (including staff member management and customer
relationship management),
 The management of industrial relations and the emphasis on team building
methodologies.
In the current time, the TQM strategy has been widely exercised in almost all the business
branches of the company. From the case of Unilever, TQM principles have been introduced and
utilized to the management of Unilever at large.

Six Sigma
TQM help Unilever in improving customer need management. Unilever has long been paying
attention to the importance of customer need management. It believes the importance of
customer management to the sustained development of the different business branches of the
company in all parts of the world. So, to both the headquarters of NV and PLC, customer
management is one of the basic integrated processes and contents of the overall management in

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the supply chain management. This is because customer needs management is the basic
requirement to build up a commercial brand that will achieve marketing influence worldwide. To
summarize, the following measures are taken by Unilever to fulfill its customer management
goals. Unilever thoroughly believe they want to sustain stay in this market and maintain product
cycle follow the Six Sigma method.
They do several things to maintain quality such research discovery system as they have made
good research teams in varies countries to find data and information of their product related
things to improve their quality of products.

Just in Time System and Total quality control


Transportation and logistics management of Unilever is also be improved with TQM. To use the
latest technical development to improve the transportation and logistics is an essential part of the
TQM in Unilever’s supply chain management. As a global consuming merchandise dealer,
Unilever has to face the problem of transporting goods to different target markets. So, the
transportation network of Unilever is confronted with the problem of how to cut down expenses
and promote efficiency. Now, by using the data-analysis tools of products transportation,
Unilever can save a considerable amount of expenses in transporting goods to different areas of
the world. Problems encountered by manufacturing firms in developing countries and made an
attempt to show the potential of practices such as just-in-time (JIT) and total quality control in
helping to ease these problems.

Quality Management Culture


In Unilever it is vital to have people with the right talent, skills and creativity to support their
growth ambitions. To ensure our long-term prosperity, Unilever want everyone to be healthy,
motivated and committed thus, via its Sustainable Living Plan, it helps to create a better
workplace. These include reducing workplace injuries and accidents and improving employee
health and nutrition
Unilever adopts the management strategy of being honest, transparent and ethical to maintain the
relationship between the company and its customer. The business values and codes of business
principles have long been particularly stressed by the company as well as its business branches in
all over the world. The company values much about what customers think about the quality of
the services provided by the company. Since the company has opened businesses largely under
an international background, the management of a business culture based on cultural respect and
cultural communication has been valued. This is especially important to meet the needs of
customers with different social and ethnic backgrounds.

Cross Cultural communication


Work division and responsibility has been improved with the TQM in Unilever. As a cross-
border business organization, Unilever has to cope with a complicated supply chain network that

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is not only related to the different cultural norms and traditions in different countries and target
market but also to the work divisions of each business branch. The advantage of this strategy is
to prescribe the concrete responsibility of each individual in the whole supply chain managerial
job.

Conclusion
TQM is a complicated business management philosophy that is based on the innovation of
business management methodologies under the influence of technological development and the
change of management thinking in modern times. The success of a business is not only
determined by the business assets and financial resources, but also by how business
organizations rationalize their business behavior and management tools. TQM, as a new and
integrated management methodology, plays an important role in changing the management
environment of the business world. As a result, it has been widely accepted by modern
organizations as one of the most effective means of management. The use of best practices is a
technique associated with quality management programs such as Total Quality Management
(TQM), Six Sigma, and other quality management systems, which owe most of their processes
and underlying logic to the work who was the first researcher to promote the use of statistics as a
management device

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