L'Oreal Company Operation Management System

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Table of Contents............................................................................................................................2 Executive summary..........................................................................................................................3 Brief history…….……………………………................................................................................4 SWOT Analysis………………………….......................................................................................5 OM Decisions …………………....................................................................................................7

Goods and Service Design ……..………………………………………………………....7
Quality ……………………………………………………………………………………8
Supply Chain……………………………………………………………………………...9 Problems and Reccomendations…………………………………………………………………14 References……..............................................................................................................................15

Executive summary
L’Oréal is the world leader in cosmetics, is well underway in implementing an integrated operations management solution across all its factories and offices worldwide. L’Oréal feels this positions the company as a leading global IT user, both in terms of technology and user-friendliness. To reap benefits early, while reducing risk and cost, L’Oréal has implemented OM decisions in an integrated manner, site by site, using a common “core” model. This model allows L’Oreal to capture best practices in supply chain management (including operational logistics), production management, and quality management and drive operational excellence uniformly through the organization by implementing both the applications and the practices on each site worldwide. L’Oreal has been built around fundamental values which have guided them throughout the life of the company, and continue to do so today. Their values have shaped culture and they underpin their reputation. L’Oreal implements their OM decisions as a responsibility to follow which drive theirs integrity and ethical standards. They believe that their commitment to live up there powerful values and to demonstrate their high value standards in all they do, will ensure more than ever that L’Oreal is seen as an exemplary organization: one that inspires trust and respect. The purpose of the project is to apply the concepts and frameworks learned in the course to a real company and see how it works. For better understanding of the subject and main principals that were learned through the course. L’Oreal Company was chosen because of its global presence with the highest technologies, high level of operation management and continues improvement.

Brief history
For the past century, L’Oreal has pursued its adventure in the beauty industry to cement its position as the world’s leading cosmetic company. Before the facial cosmetics, L’Oreal was known as a hair-color formula developed by French chemist Eugene Schueller in 1907. It was then known as "Aureole". Schueller formulated and manufactured his own products which were sold to Parisian hairdressers. It was only in 1909 that Schueller registered his company as "Societe Francaise de Teintures Inoffensives pour Cheveus,” the future L’Oreal. Scheuller began exporting his products, which was then limited to hair-coloring products. Through agents and consignments, Scheuller further distributed his products in the United States of America, South America, Russia and the Far East. The L’Oreal Group is present worldwide through its subsidiaries and agents. L’Oreal started to expand its products from hair-color to other cleansing and beauty products. The L’Oreal Group today markets over 24 brands and more than 2,000 products in the various sectors of the beauty business. Such includes hair colors, styling aids, body and skincare, cleansers and fragrances. Indeed, the L’Oreal Group has reached the peak that all...
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