Production flow and recommendation for Coca-Cola.docx

By implementing new innovations into the production

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innovation and improve the deficient of the process. By implementing new innovations into the production line, some old method of production line may be eliminated to reduce the unnecessary cost. After being replaced, the old method will now be considered as non-value- adding process. The factory of Coca-Cola Malaysia will need to analyze each and every steps of the production and determine the actions that are going to add value to the final product. After analyzing the production flow, non-value-adding processes may be determined and eliminate it to reduce the manufacturing cost. Besides that, by eliminating non-value-adding process will also enhance the efficiency of the production flow as extra unnecessary steps will prolong the total time consumption to produce a product. Time reduction will reduce the manufacturing cost and increase the total profit as reduced time can be used to produce more products for selling purpose. 3.3 Implement ERP software For the third recommendation, we recommend the Coca-Cola Malaysia for using ERP software to enhance the overall performance of the production flow. Enterprise Resource Planning (ERP) is business process management software that enable a company to manage the business and automate many back office functions related to technology, services and human resource (Beal, 2019). ERP software normally helps the company to handle various type of operation, for example, product planning, development, manufacturing, sales and marketing, under the same database, application and user interface. Food processing ERP system also includes the recipe and formula of the product, together with the production flow so that the method of manufacturing can be clearly-defined and improvements can be made on the entire production cycle. Cost control of ERP system allows the organization to measure the actual cost variance against the standard cost, and able to determine the cost based on the number of hours, quantity produced or other factors. If there is a difference between the standard and the actual cost, the
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system enables The Coca-Cola Malaysia to analyze the variance with different tools for clearer vision on the difference of cost, which helps the organization when it comes to decision making. The software also allows The Coca-Cola Malaysia to implement lean manufacturing for Just-In-Time purchasing and manufacturing with built-in processes to track all the cost such as material, labor, overhead cost and other costs. To make the manufacturing process lean, the first step to do is identify the planned losses (maintenance of machine), operational losses (changeover), and quality losses (defective materials). The next step is utilizing the real-time data collection available from the process equipment to improve Overall Equipment Effectiveness (OEE). With the help of ERP system, the company may minimize the variability of the process and maximize the use of assets and improve the productivity of the production.
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