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Uitgerekend: calculation of additioonal complexity for innovations in Danone baby milks operations division

Grunsven, R. van (2009) Uitgerekend: calculation of additioonal complexity for innovations in Danone baby milks operations division.

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Abstract:Groupe Danone is a multinational which produces dairy products, baby food, bottled water and medical nutrition. Within the baby food category of Danone, the operations department is responsible for the planning, production and delivery of the baby milk products to sales units in Europe. Key in running operations efficiently is to continuously reduce complexity in order to keep down costs. Complexity can be seen as the combination of the number of activities and their mutual dependency. Besides, part of Danone’s mission is to obtain and secure leading market positions. To enable growth the sales units find new possible products, called innovations. These innovations require often introduction of new recipes or raw materials, which increases the complexity. This leads to a complexity paradox: each innovation let the complexity of the operations increase, while the complexity has to decrease to save costs. It is not the goal to find innovations without additional complexity, but the complexity added has to be either in harmony with the profit of the new product or the product should fit in Danone’s strategy.
Item Type:Essay (Master)
Clients:
Danone
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Industrial Engineering and Management MSc (60029)
Link to this item:http://purl.utwente.nl/essays/58597
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