Operation Management at Elephant House
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Transcript of Operation Management at Elephant House
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Group “1”
Dinesh
Lakkana
Anuruddika
Sathees
Shammika
Niroshan
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What Is Operations Management
Production is the creation of goods and services
Operations management is the set of activities that creates value in the form of goods and services by transforming inputs
into outputs
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Company Introduction
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Ceylon Cold Stores established in 1866 as the Ceylon Ice Company,
In 1925, the company moved on to build cold storage for frozen products of all kinds.
In 1941, New Colombo Ice Company changed its name to Ceylon Cold Stores Limited. Ceylon Cold Stores came under the umbrella of John Keells Holdings Limited with the acquisition of the Whittalls Group in 1991.
German Engineer, Authr Von Possner, who worked as the Manager of the company has introduced Aerated water with the distinctive "Elephant" trademark on the bottles.
They produced two types of carbonated drinks: Soda and Lemonade’
Company Profile & History
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History of Elephant House Beverages
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Product
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Product Mix
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Products of Elephant House Beverages
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PRODUCT AVAILABILITY PRICE RANGE
Tonic : 400ml, 500ml PET 40/=, 80/=
Apple Soda : 200ml, 400ml, 500ml PET,1.5L PET 30/=, 40/=, 80/=, 200/=
Cream Soda : 200ml, 400ml, 500ml PET,1.5L PET 30/=, 40/=, 80/=, 200/=
EGB 200ml, 400ml, 500ml PET,1.5L PET 30/=, 40/=, 80/=, 200/=
Ginger Ale 400ml 40 /=
EGB Light 500ml PET 80/=
Lemonade 200ml, 400ml, 500ml PET,1.5L PET 30/=, 40/=, 80/=, 200/=
Necto 200ml, 400ml, 500ml PET,1.5L PET 30/=,40/=,80/=, 200/=
Orange Barley 400ml, 1.5L PET 40/=, 200/=
Orange Crush 200ml, 400ml, 500ml PET,1.5L PET 30/=, 40/=, 80/=, 200/=
Soda 400ml, 500ml PET, 1.5L PET 40/=, 80/=, 200/=
Elephant Wild 250ml 300/=
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Products of Elephant House Beverages cont……
Product design of EH
Product Development Process of EHPlanningConcept developmentSystem level designDesign DetailTesting and RefinementProduction ramp-up
Challenges in Product Design of EH
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Product Life Cycle of Elephant House Beverages
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Bitter Lemon was re-introduced to the
market in two pack sizes. The consumer response
is encouraging with volumes showing notable
growth in thefour months since its
launch.
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Process
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INPUTOPERATIONS OUTPUT
Process of Elephant House Beverages
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Process of Elephant House Beverages
Process selection
Process Flow Structure of EH
Process Flow Design of EH
Process Analysis of EH
Process Performance of EH
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Process of Elephant House Beverages
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Location
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First Building of Ceylon Cold Stores
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Location of ‘Elephant House Beverages’
The manufacturing plant of elephant house is currently situated at Hanwella.
availability of raw materials required to produce soft drinks, transport facilities, availability of labour to handle various machines and for supervision purposes,
access to utilities such as water and electricity, the considerations of the people living in the area, legal restrictions and proper disposal methods etc. Being in the vicinity of two major reservoirs; Labugama and Kalatuwawa, the factory obtains the required water from these reservoirs.
Hanwella is in the urbanization process as there are other manufacturing plants being built in and around the city.
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Layout of ‘Elephant House Beverages Plant’ A product layout as well as a process layout has been adopted by Elephant House to carry out its soft drinks production.
Elephant House uses a hybrid layout to carry out its production activities.
This type of layout is beneficial as the disadvantages of both product and process layouts have been compensated.
advantage of this type of layout is that the layout could be altered to satisfy the needs of a particular situation.
Manufacturing of Elephant House soft drinks has become convenient due to the existing layout of the plant.
Supervision activities of these areas have become more convenient and production activities take place smoothly and efficiently.
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Layout of Elephant House Beverages Plant
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Supply ChainManagement
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Supply chain –
All facilities Functions Activities , which facilitate the flow and transformation of goods and Services from RM to FP
Supply Chain Management –
Managing the flow of Information through the supply chain. In orderto attain the Level synchronization which will make it more responsiveto the Customer needs while lowering the cost.
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Supply chain /integration
l Sharing information l Collaborative Planning , forecasting , replenishing & designl Coordinate work flow production and operation & procurementl Adopt new technologiesl.
LEADS to
Reduce Bullwhip effect of EHl Early problem detection of EH
l Faster response of EHl Minimize cost of EH
l Minimize waste of EHl High capacity utilization of EH l Increase the productivity of EH
l Improve service. Of EH
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Forecasting
It is essential, as it affects the decisions and activities of an entire organizationElephant House makes use of two basic types of forecasting;
1. time-series analysis predict the future, through the past.
2. casual relationships. define that one occurrence causes another.
Eg : they predict sales to have casual relationships mainly during the schools’ annualsports meets, which usually fall in the months of February, July and December. The sale for soft drinks are high at these types of events
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Inventory
Stock of any item or resource used in any organization
EH follows inventory management policies
Just in case (JIC)
Large inventories of supplies are maintained in warehouses and through this can prove costly, it has helped the organization deal with sudden demand fluctuations.
Just in time (JIT)
Where in process in-process inventory is reduced and relies on its suppliers to provide the stock as an when they are needed
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Purchasing
Follows the Centralized purchasing of materials to
ensuring proper materials control
efficient store keeping
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Recommendation
Elephant House should continue the product innovation and expansion Of their product line. Eg : Fruit drinks like coke(Mint maid) & Pepsi(Tropica)
EH Should Sustain or increase the global market share Eg: UK, USA, Switzerland, Emirates and various other countries
EH Should Maintain and try to increase their brand loyalty Eg: Cream Soda has 2nd highest brand loyality
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Conclusion
Elephant House is a well established brand, in Sri Lanka and in other countries.
The organization continuously improving their ascertained areas in product design, facility layout, process selection, inventory management, and other key processes of OM
And also by overcoming their weaknesses through implementing the above mentioned recommendations
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Thank You
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Any Questions?