Yakult Case Study ( operations management and CSR)

Is Yakult a manufacturing or service business?

- manufacturing business

- produces tangible product - fermented drink bottles

- yakult bottles are homogeneous and standardized - 10 pack and 5 pack of yakult

Inputs of Yakult

- polystyrene resin beads

- skim milk powder

- sugar

- water

- beneficial bacteria

- fermenting tanks

Is Yakult a manufacturing or service business?

- manufacturing business

- produces tangible product - fermented drink bottles

- yakult bottles are homogeneous and standardized - 10 pack and 5 pack of yakult

Inputs of Yakult

- polystyrene resin beads

- skim milk powder

- sugar

- water

- beneficial bacteria

- fermenting tanks

Processes of Yakult

- sterilize water and milk power, and then combine

- fill bottles with liquid then seal

- mix bacteria and sugar, leave to ferment

- label bottles

Outputs of Yakult

- 5 pack of yakult light

- 5 pack of original yakult

- 10 pack of original yakult

Technological Developments of Yakult

1. AUTOMATED PRODUCTION LINE

- one way automated process to transfer Yakult

through a closed set of pipes, valves and filters

- automated by a control panel

- control panel receives information such as bottle count, operating time

- integrates a robotic arm - stack pallets of Yakult for distribution - stacks 3 slabs in 3 secs

2. COMPUTER AIDED MANUFACTURING

- software to check flow of inputs in the production line

- turns off red spray paint station on days yakult light is produced.

Materials Management of Yakult

1 . MASTER PRODUCTION SCHEDULE

- production of yakult light 5 pack

- June 1 - 10 2018

- 4 million packs

- South Dandenong Yakult Plant

2. MATERIALS REQUIREMENT PLANNING

- 6000 L of water

- 100 kg of sugar per day

- 1.2kg of beneficial bacterial culture per day

3. . JUST IN TIME

- ingredients : sugar, skim milk powder

- have a best before and use by date

- ensures drinks are fresh and safe to consume

Quality Management at Yakult

1. QUALITY ASSURANCE

- complies with standards of ISO 9001:2008

- measures excellence in product handling

- factory and personnel hygiene

- equipment cleaning

- have routine auditing on a regular basis to maintain certification

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 at Yakult

- 99.5% of its ingredients end up in bottles

- Cleaning waste is processed at an on-site water treatment facility

- Use of LED lights

- not using Chloroflurocarbons in cooling or refrigeration

- bottles are collected for recycling, and then crushed and mixed with other resin beads to build chairs and tables

CSR responsibilities at Yakult

- corporate sponsorship - ESSENDON FC (community)

- regular hearing checks for employees (employees)

- creation of a high quality product for customers (customers)

- free of charge educational factory tours (community)

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

- local suppliers for ingredients - reduces carbon emissions, local employment

Global Considerations of Yakult

1. SUPPLY CHAIN MANAGEMENT

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

- local suppliers - reduces freight costs, high quality AUS made (CSR)

- sources Shirota Strain Probiotic Bacteria from Japanese suppliers , not found in aus

- 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