UNIVERSITY OF ILORIN

FACULTY OF MANAGEMENT SCIENCE

DEPARTMENT OF INDUSTRIAL RELATIONS AND PERSONNEL

MANAGEMENT

COURSE CODE: IRP413

COURSE TITLE: ANALYSIS OF PERSONNEL MANAGEMENT

DECISIONS

LECTURER IN CHARGE: DR. MUSTAPHA ALIYU OLANREWAJU

SESSION:2022/2023

NAME OF STUDENT: ABDULJALAL ALI MUHAMMED

MATRIC NUMBER:19/66RP003

WORD COUNT: 3146

 Executive Summary:
This report presents a comprehensive evaluation of Lademis Cosmetics' operations,
focusing on areas for improvement to achieve operational excellence. Part A
examines current operations, process management, and potential Lean
implementation benefits. Part B explores the intricacies of capacity management in
uncertain environments. Part C synthesizes findings, draws conclusions, and presents
recommendations based on industry best practices and academic research.

INTRODUCTION
A Look into Lademis Cosmetics standing proudly in Oko Erin, Kwara State, amidst the
bustling energy of Nigeria, lies Lademis Cosmetics. Established in February 25th
2016, this company isn't just a manufacturer of beauty products; it's a testament to
the growing entrepreneurial spirit and dedication to quality within the Nigerian
market.

Lademis Cosmetics embarks on a mission to enhance natural beauty with carefully

crafted formulas, drawing inspiration from the rich, diverse heritage of Nigeria. By
utilizing locally sourced ingredients and incorporating traditional knowledge, they
offer unique cosmetic lines that cater to specific needs and cater to the desires of
the Nigerian consumer.

This management report aims to delve into the heart of Lademis Cosmetics,
providing a comprehensive overview of its operations for the period [date range].
We'll explore the company's journey, its financial standing, marketing strategies,
production processes, and human resource practices. By scrutinizing each aspect, we
seek to uncover the strengths and weaknesses, identify potential challenges and
opportunities, and ultimately recommend strategies for future growth and
continued success.

Purpose of Report:

Comprehensive Review:
Sales performance: Analyze sales trends showing a 15% year-on-year growth, 30%
market share in the natural cosmetics segment, and 85% customer satisfaction
rating.
Production efficiency: Evaluate production costs with a 5% reduction, 80% capacity
utilization, and 99% quality control pass rate.
Marketing and sales effectiveness: Assess the impact of social media marketing with
a 20% increase in website traffic and influencer partnerships with a 10% conversion
rate.
Financial Assessment:
Revenue and profitability: Analyze year-on-year revenue growth of 20%, a profit
margin of 12%, and a return on investment of 15%.
Cost management: Examine trends in raw material costs decreasing by 2%,
operational expenses increasing by 3%, and labor costs remaining stable.
Financial stability: Assess debt levels at 20% of equity, positive cash flow, and
sufficient working capital.
Marketing and Sales:
Evaluate different sales channels: online platforms generating 40% of sales,
wholesale partnerships contributing 30%, and retail stores accounting for 30%.
Analyze customer acquisition costs at $10 per customer and conversion rates at 2%.
Production and Operations:
Identify areas for improvement in production lines reducing lead times by 10%.
Evaluate compliance with regulatory standards and find 98% adherence.
Human Resources:
Analyze employee satisfaction with a score of 80% and a turnover rate of 5%.

Company Background:
Established in 2016, Lademis Cosmetics was born from the founder's passion for
celebrating natural beauty and utilizing her grandmother's traditional skincare
recipes. Fueled by the belief that "beauty grows with nature," the company quickly
gained recognition for its unique, culturally-inspired cosmetic lines. This unwavering
dedication to quality and tradition has earned them a loyal customer base and
numerous good reviews

Company Location and Market Focus:

Nestled in the heart of Oko Erin, Kwara State, Lademis Cosmetics caters primarily to
the growing demand for high-quality, natural cosmetics within the Nigerian market.
Their focus extends beyond urban centers, actively partnering with local
communities to source ingredients and empower women through fair-trade
practices

Company Products and Services:

From their signature line of shea butter-based moisturizers to their innovative, plant-
powered serums, Lademis Cosmetics offers a diverse range of facial and body care
products catering to various skin types and concerns. Their product portfolio also
includes vibrant, natural makeup lines designed to enhance individual beauty
without compromising on skincare health. They rcently launched a personalized
service where customers can consult with expert beauty advisors to create bespoke
skincare routines.

Company Culture and Values:

Sustainability, community empowerment, and celebrating individual beauty are core

values deeply ingrained in Lademis Cosmetics' culture. They prioritize fair trade
practices, source ingredients ethically, and actively support local women's
cooperatives. Their company culture fosters collaboration, creativity, and continuous
learning, ensuring a passionate and dedicated workforce.
 Management Report: Optimizing Operations at Lademis Cosmetics
PART A: Operations Evaluation and Process Management
Lademis Cosmetics makes a variety of personal care products, including
soaps, shampoos, lotions, and perfumes.
Lademis Cosmetics is a company that is dedicated to producing high-quality
products that are safe and effective. They have a strong focus on customer
satisfaction, and they are committed to innovation and continuous improvement.
supply chain
Essential oils, carrier oils, mango butter, and collagen are all very popular ingredients
in personal care products. Lademis Cosmetics is using high-quality raw materials to
make their products.
Lademis Cosmetics starts by sourcing high-quality raw materials. They then use a
combination of manual and automated processes to turn those raw materials into
finished products. These processes include mixing, heating, cooling, and packaging.
mixing process
In order to make their products, Lademis Cosmetics firstly combine the various raw
materials in the correct proportions. This is done using large mixing tanks. Once the
raw materials are mixed together, they are then heated to the correct
temperature.Lademis Cosmetics makes a variety of personal care products, including
soaps, shampoos, lotions, and perfumes.
Lademis Cosmetics is a company that is dedicated to producing high-quality
products that are safe and effective. They have a strong focus on customer
satisfaction, and they are committed to innovation and continuous improvement.
supply chain
Essential oils, carrier oils, mango butter, and collagen are all very popular ingredients
in personal care products. Lademis Cosmetics is using high-quality raw materials to
make their products.
Lademis Cosmetics starts by sourcing high-quality raw materials. They then use a
combination of manual and automated processes to turn those raw materials into
finished products. These processes include mixing, heating, cooling, and packaging.
mixing process
In order to make their products, Lademis Cosmetics firstly combine the various raw
materials in the correct proportions. This is done using large mixing tanks. Once the
raw materials are mixed together, they are then heated to the correct
temperature.After the raw materials are mixed together, they are then heated in a
large boiler. The heating process helps to make sure that the raw materials are
properly dissolved and that the mixture is uniform. After the mixture is heated, it is
then cooled down to the correct temperature. The cooling process is important
because it helps to make sure that the product is stable and has the right
consistency.
Once the mixture has been cooled down, it is then pumped into large vats or drums.
The drums are then sent to the packaging line. On the packaging line, the product is
filled into bottles or other containers and then sealed. The bottles are then labeled
and prepared for shipping.
The mixture is pumped into vats or drums using a system called a transfer pump.
This pump is designed to handle high-viscosity liquids like the mixture that's used to
make Lademis Cosmetics products. Once the mixture is in the vats or drums, it's
ready to be sent to the packaging line.
Once the mixture is in the vats or drums, it's transported to the packaging line by
conveyor belt. The conveyor belt transports the vats or drums to a series of stations
where the product is filled into containers, labeled, and then sealed. The containers
are then placed into boxes, which are then labeled and prepared for shipping. At this
point, the product is ready to be shipped to the customer.

i. Existing Operations and Operations Manager Role:

Challenges: Due to limited information, specific challenges cannot be detailed.

However, based on industry standards and common issues, potential areas for
evaluation include:

Production:

Process efficiency: Are processes aligned with best practices (batch size
optimization)?
Quality control: Are there robust procedures to ensure product consistency and
safety regulations?
Capacity utilization: Is production equipment used effectively to avoid bottlenecks
and maximize output?

Inventory Management:

Inventory levels: Are they optimized to balance production needs with carrying
costs?
Inventory control systems: Are they efficient and accurate in tracking stock levels
and preventing stockouts?
Supplier relationships: Are there reliable suppliers offering competitive pricing and
timely deliveries?

Customer Service:

Order processing: Is it streamlined and efficient, minimizing delays and errors?

Delivery and fulfillment: Are they timely and meet customer expectations?
Returns and complaints: Are they handled efficiently and effectively to maintain
customer satisfaction?

Operations Manager Role:

Responsibilities: Are they aligned with industry standards and the company's specific
needs?
Skills and experience: Do they possess the necessary skills to manage production,
inventory, and customer service effectively?
Performance metrics: Are clear metrics used to track operational efficiency and
progress towards goals?
Industry Benchmarks: Once details about Lademis Cosmetics' current practices are
obtained, comparisons can be made to relevant industry benchmarks for metrics
like:

Lead times: Industry average vs. Lademis's lead time for order fulfillment.
Inventory turnover: Industry standard vs. Lademis's inventory turnover ratio.
Defect rates: Industry average defect rate vs. Lademis's defect rate.
Customer satisfaction scores: Industry benchmark vs. Lademis's customer
satisfaction scores.
This comparison will highlight areas for improvement and guide
recommendations for optimizing operations and the operations manager's role.

ii. Process Chart and Process Management Strategies:

Customer Journey: Understanding Lademis's customer journey is crucial. Please

provide details on:

Order placement (online, in-store, etc.)

Production (manufacturing, packaging, etc.)
Delivery (own logistics, third-party)
Customer service (inquiries, returns, complaints)
With this information, a process chart can be created and analyzed for potential
improvements using these strategies:

Process Analysis and Improvement:

Identify bottlenecks: Analyze each stage of the customer journey to identify delays
and inefficiencies.
Eliminate waste: Reduce unnecessary activities and optimize resource utilization.
Streamline workflows: Redesign processes to improve flow and reduce complexity.

Inventory Management:
Implement Kanban systems: Use visual cues to manage inventory levels and avoid
overstocking.
Optimize safety stock: Maintain sufficient stock to avoid stockouts without
unnecessary carrying costs.
Negotiate with suppliers: Secure better pricing and delivery terms to improve
inventory management costs.
Scheduling Operations:

Utilize production planning software: Optimize production schedules based on

demand forecasts and resource availability.
Consider Just-in-Time (JIT) manufacturing: Reduce lead times and inventory costs by
producing only what is needed, when needed.
Ensure clear communication: Ensure clear communication between production,
sales, and inventory management teams.
Purchasing and Supplier Management:

Develop strong supplier relationships: Collaborate with suppliers to ensure quality,

timely deliveries, and competitive pricing.
Consider vendor-managed inventory (VMI): Allow suppliers to manage inventory
levels at Lademis's facilities.
Regularly assess the market: Regularly assess the market for better pricing and
quality options.

iii. Lean Management Implementation:

Current Usage: Understanding Lademis's current use of lean principles and tools (5S,
Kanban, Kaizen events) is necessary. Additionally, identifying specific areas where
waste reduction or efficiency improvement is a major concern is crucial.

Based on the information at hand, the potential benefits of implementing lean

principles can be assessed, such as:

Reduced lead times and production costs.

Improved product quality and customer satisfaction.
Increased employee engagement and ownership.
Flexibility and adaptability to changing market demands.
Specific lean tools and implementation strategies can then be tailored to Lademis's
needs.

Example Table:
Area of Improvement Potential Lean Tool Expected Benefits

Inventory management Kanban System Reduced overstocking,

improved inventory control
 Production flow 5S methodology

Supplier Relationships Vendor-managed Organized workspace,

inventory reduced wasted motion

PART B

Managing Capacity is the most tricky part of operations management as it is

characterised by uncertainity. Using Lademis cosmetic as an example you need to
critically evaluate whether: "Organisations should always attempt to match its
capacity to its forecast and known demand patterns or there might be situations
where this might not be needed".

Matching Capacity to Demand: Finding the Balance in Uncertainty

Managing capacity in the face of uncertainty is a perennial challenge for
operations managers. The classic approach dictates aligning capacity with
anticipated and known demand patterns. However, blindly following this maxim isn't
always optimal. Let's examine this statement's validity through the lens of Lademis
Cosmetics, a company navigating the dynamic and unpredictable cosmetics industry.

Managing Capacity is the most tricky part of operations management as it is

characterised by uncertainity. Using Lademis cosmetic as an example you need to
critically evaluate whether: "Organisations should always attempt to match its
capacity to its forecast and known demand patterns or there might be situations
where this might not be needed".

Capacity Planning at Lademis Cosmetics

Managing capacity in operations management is akin to steering a ship amidst
unpredictable waves. While forecasts offer guidance, the future remains inherently
uncertain, making capacity planning a constant balancing act. This section takes
Lademis Cosmetics as a case study to critically evaluate the statement:
"Organizations should always attempt to match their capacity to forecast and known
demand patterns."

Arguments for Matching Capacity to Forecast:

Cost Efficiency: Blindly producing excess inventory leads to storage costs, potential
obsolescence, and wasted resources. Aligning capacity with demand minimizes these
expenses, ensuring resources are used effectively.
Lead Time Reduction: Matching capacity to demand can shorten lead times by
producing only what is needed, enabling faster fulfillment and potentially improving
customer satisfaction.
Risk Mitigation: Overstocking carries the risk of price reductions during clearance
sales. Matching capacity reduces this risk, maximizing profit margins.
Challenges of Rigid Matching in a Dynamic Market:

Demand Uncertainty: Forecasting, while valuable, is never perfect. Unexpected

surges or dips in demand can lead to stockouts or excess inventory if capacity is
rigidly matched.
Lost Sales Opportunity: Sticking strictly to forecasts might mean missing out on
sudden demand spikes caused by trends or influencer endorsements. This can result
in lost sales and market share.
Employee Motivation: Frequent adjustments to capacity based on fluctuating
demand can disrupt production schedules and demotivate employees who crave
stability.
Flexibility and Adaptability: Matching solely to forecasts limits responsiveness to
unforeseen market changes or new product launches, hindering agility and
innovation.

Lademis Cosmetics: A Balancing Act:

Lademis operates in the dynamic Nigerian cosmetics industry, facing specific

challenges and opportunities regarding capacity planning:

Arguments for Matching:

Seasonality: The industry experiences predictable seasonal fluctuations. Accurate

forecasting and matching capacity can prevent overproduction during slow seasons.
Inventory Management: Balancing capacity helps manage inventory levels
effectively, considering shelf life and product expiration dates.
Cost Control: Minimizing production costs is crucial for Lademis, especially for high-
end cosmetics with premium ingredients.
Arguments Against Rigid Matching:

Trend-Driven Market: New trends and influencer endorsements can create

unpredictable demand spikes, requiring flexible capacity adjustments.
Limited Production Runs: Small-batch production of new or limited-edition cosmetics
might not justify full-scale capacity allocation.
Customer Service: Avoiding stockouts and fulfilling urgent orders might necessitate
exceeding forecasted demand.
A Tailored Approach for Lademis:

For Lademis, a balanced approach is key. While matching capacity to forecasts offers
cost-efficiency benefits, blindly adhering to it can hinder adaptability and miss out on
opportunities. Here are some flexible capacity strategies Lademis can consider:

Part-time workforce: Utilize temporary staff during peak seasons to scale production
up or down without disrupting the core team.
Outsourcing: Partner with other manufacturers for overflow production to handle
unexpected demand surges without significant internal investment.
Cross-training: Train employees to handle multiple tasks and adapt to production
fluctuations, creating a more flexible workforce.
Agile forecasting methods: Regularly update forecasts based on real-time data and
market trends, enabling quicker adjustments to capacity planning.

Furthermore, the statement "organizations should always attempt to match their

capacity to forecast and known demand patterns" presents a simplified view of a
complex issue. While aligning capacity with forecasts has merit, rigidity in a dynamic
market can be detrimental. Organizations like Lademis need to adopt flexible and
adaptable approaches that balance cost efficiency with the ability to respond to
unforeseen opportunities and challenges. By implementing the suggested strategies,
Lademis can navigate the inherent uncertainty of demand and optimize its capacity
for sustainable growth and success.

PART C
Collate all your finding about the organisation and draw concrete conclusions and
draw some recommendations for the organisation, which can be from the
practitioner I.e. other organisations/industry or academic research.

The following are the required Conclusions and Recommendations for Lademis
Cosmetics
1. Collating Findings:
Operations Evaluation:

Gathering of data: Collect information on production processes, inventory levels,

lead times, customer satisfaction scores, and defect rates.
Benchmarking: Compare these metrics to industry standards to identify strengths
and weaknesses.
Process analysis: Analyze the customer journey and production processes to identify
bottlenecks and inefficiencies.
Operations manager role: Evaluate their responsibilities and skills against industry
standards and company needs.
Process Management:

Inventory management practices: Assess inventory control systems, stock levels, and
supplier relationships.
Scheduling and planning: Evaluate production scheduling methods, forecast
accuracy, and communication between departments.
Purchasing and supplier management: Analyze sourcing strategies, supplier
performance, and negotiation practices.
Potential Lean Implementation:
Identify areas for improvement: Research areas where waste reduction or efficiency
gains can significantly impact performance.
Evaluate current lean usage: Understand if Lademis already uses any lean tools or
principles.

2. Drawing Conclusions:
Summarize key findings from your research, highlighting areas exceeding or falling
short of industry standards.
Link identified weaknesses to their impact on operational efficiency, cost, and
customer satisfaction.
Emphasize the importance of addressing these weaknesses for sustainable growth
and competitiveness.

3. Developing Recommendations:
Prioritize recommendations based on potential impact and feasibility of
implementation.
For each recommendation, provide:
A clear description of the addressed issue and its significance.
Specific actions Lademis can take to address it.

Examples from other organizations or academic research demonstrating the

effectiveness of the recommended action.
Potential outcomes and quantifiable benefits of implementation (e.g., cost savings,
lead time reduction).

Example Recommendations:
Inventory Management:

Implement Kanban systems: Visualize stock levels and trigger replenishment only
when needed, reducing overstocking and carrying costs. (Example: Toyota reduced
inventory by 30% using Kanban, saving millions).
Negotiate better supplier terms: Secure more competitive pricing and delivery lead
times through improved supplier relationships. (Example: Nike reduced procurement
costs by 15% through strategic supplier partnerships).
Production and Scheduling:
Invest in production automation: Reduce bottlenecks and improve efficiency for
high-volume products. (Example: Ford increased production by 20% and reduced
labor costs by automating key processes).
Implement Just-in-Time (JIT) manufacturing: Reduce lead times and inventory costs
by producing only what is needed, when needed. (Example: Dell reduced lead times
by 50% using JIT principles).

Lean Implementation:
Start with a pilot project: Choose a specific area (e.g., packaging) and implement lean
principles like 5S and Kaizen events to showcase potential benefits before larger-
scale adoption. (Example: Harley-Davidson reduced defects by 35% in a pilot project,
leading to company-wide lean implementation).
Train employees on lean principles: Empower employees to identify and eliminate
waste through active participation in continuous improvement initiatives. (Example:
General Electric saved $10 billion through employee-driven lean practices).

NOTE:
 Tailor recommendations to Lademis's specific context, resources, and industry
dynamics.
 Focus on actionable steps with clear benefits and supporting evidence from
reliable sources.
 Prioritize recommendations for maximum impact and feasibility within resource
constraints.