Production flow and recommendation for Coca-Cola.docx

Step 7 delivery to consumers after the production

  • No School
  • AA 1
  • 10

This preview shows page 5 - 8 out of 10 pages.

Step: 7 (Delivery to consumers) After the production cycle over, the packed Coca-Cola’s beverages will be transported via the truck into the storage facilities to deliver the finished product to the consumer outlet and to be enjoyed by the customers 3.0 Recommendations
Image of page 5

Subscribe to view the full document.

3.1 Reduce Material Cost The amount of capital invested in the production of a product. The particular cost constitutes a substantial portion of the total manufacturing costs. The material of a meal or the parts of a machine would be things that incur material costs. This cost is not included the cost of labour to produce the product. While to determine the total cost of the production and its sale price, the material cost and labour cost are counted. Whilst there are some techniques to manage the material cost. One of such technique is Economic Order Quality (EOQ) which determine the amount of material that should be ordered in a single lot in a particular period. It helps the manufacturer to minimize the handling and ordering cost. Purchasing materials in a huge bulk also helps to reduce the price as quantity discount is provided and economic of scale is achieved. In order to reduce the material cost, manufacturers may start from supplier. The step of selecting and negotiating with suppliers is playing a main role in the reduction of cost. Coca- Cola Malaysia can request quotations from few suppliers in order to get more information and data. Then, they can evaluate the quotation received to make decision on selection of suppliers. A handful of references quotes from similar suppliers must be secured before attempting negotiations in order to know the disadvantage of your current suppliers such as the falls of them within the overall ‘pricing landscape’ and to determine the type of reduction which will be realistic to request. For example, Coca-cola Malaysia will need container to fill their product. Thus, they can request quotation to many suppliers of plastic or plastic bottle to have more selections. Although they had come out with a strategy to encourage recycle by giving incentives to the customer, but part of the customer still did not aware that the impact of the pollution and ignoring it. Furthermore, they can produce their own sugar by using the sugar cane. It may help to reduce the cost as self-produce is cheaper as compare to purchase sugar from others. As the sugar is the main ingredient other than the water to produce a complete soft drinks, they may have a huge consumption of sugar. Although procurement in bulk can have a reduction in the price but there is still cheaper to produce by itself. 3.2 Eliminate Non-Value Adding Processes
Image of page 6
Value can be defined as something that the customers are willing to pay for. Anything that did not waste value is a waste. In production lines, many new innovations are created and implemented in the production line. As new innovations are things that never been used in the production line, the production factory will need to conduct consistent review on the new innovation and improve the deficient of the process. By implementing new innovations into the
Image of page 7

Subscribe to view the full document.

Image of page 8
  • Fall '19

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern