Business Management Unit 3 AOS 3 - Yakult Case Study

Manufacturing or service business?

- manufacturing business

- produces a tangible product

- bottles are standardized through mass production

- highly automated process that is capital extensive

Inputs (Yakult)

MATERIALS - bacteria, skim milk powder, water, sugar, flavouring, bottles, plastic packaging and foil lids

TIME - time taken in the production process and in automated production line

LABOUR - employees in the factory

CAPITAL EQUIPMENT - machinery e.g. fermenting tanks, building and equipment

INFORMATION - such as the knowledge of all employees

Processes (Yakult)

- Mixing

- Sterilizing

- Fermenting

- Smoothing

- Flavouring

- Blending

- Diluting

- Pouring

- Sealing

- Packaging

- Quality control, quality assurance

Outputs (Yakult)

Probiotic drink (Yakult)

Technological Developments (Yakult)

AUTOMATED PRODUCTION LINE

- one way automated process to transfer Yakult through a closed set of pipes, valves and filters

- automated by a control panel

- conveyor belt moves small filled bottles to the packaging facility, moves liquid from tank to tank,

auto-fills bottles, labels + packages bottles

COMPUTER-AIDED MANUFACTURING

- software to check flow of inputs in the production line

- detects faults/issues and reduces waste

Materials Management (Yakult)

1 . MASTER PRODUCTION SCHEDULE

2. MATERIALS REQUIREMENT PLANNING

3. . JUST IN TIME

4. FORECASTING

Quality Management (Yakult)

1. QUALITY ASSURANCE

- complies with standards of ISO 9001

- measures excellence in product handling

- factory and personnel hygiene

- equipment cleaning

- have routine auditing on a regular basis to maintain certification

- utilise 'Hazard Analysis and Critical Control Points' (HACCP) principles, an internationally recognised program for food safety

2. QUALITY CONTROL

- 100 - 200 product samples are randomly tested from each batch of yakult

- checked for incorrect printing, markings and ensuring proper sealing- microbiological tests

- checks amount of bacteria, ensures there is little to zero levels of contaminated bacteria

Waste Management (Yakult)

ONE PIECE FLOW - they utilise an automated production line

ZERO DEFECTS - products are regularly randomly selected for testing

CSR responsibilities (Yakult)

- regular hearing checks for employees

- free of charge educational factory tours (community)

- recycling paper products e.g. skim milk bags (environment)

- local suppliers for ingredients which reduces carbon emissions and fosters local employment

- prevent waste by regularly checking products

- no redundancies, staff are trained for other jobs

Global Considerations (Yakult)

1. SUPPLY CHAIN MANAGEMENT

- Yakult checks the quality of suppliers and supplies to ensure there is a consistency in high quality

- Uses a JIT approach - has a positive relationship with their range of suppliers.

- Corporate delivery - refrigerated trucks deliver to major warehouses for Coles and Woolworths, and then to individual stores

2. GLOBAL SOURCING OF INPUTS

- Shirota strain is sourced from japan