Operation Management

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F&N suppliers requirements :
1) Lower cost of ingredients
2) Quality aluminum, glass, plastic bottle
3) Accurate supply and no out of stock
F&N end customer requirements :
1) taste 2) flavor 3) thirst 4) nice packaging
The organization that I would like to highlight is F&N Beverages (M) Sdn Bhd. This company is one of the biggest manufacturers of beverages and isotonic drinks in Malaysia. The brands under the belt of this company are 100 Plus, Coca Cola, F&N Orange Juice and many others well known established sub brands.

Conversion/ Transformation Process from F&N end user to its suppliers via Product Planning and Marketing Team

New isotonic products that will have the greatest taste and flavor. It also able to quench thirst and come with nice packaging

F&N beverage end product:-
1) New isotonic drinks
Input from F&N Suppliers:-
1) Good quality at low cost ingredients
2) Good quality of aluminum, glass, plastic bottle
3) Fast delivery and optimal stocks

Requirement of F&N Management:
1) New market penetration
2) More profits
3) Satisfied customer needs
4) Satisfied all other stakeholders

Using the minimal resources to create new isotonic drinks that will capture the untapped market opportunity

(Diagram 1)

Refer to Diagram (1) above, the scenario depicted F&N Beverage (M) Sdn Bhd decided to introduce a new isotonic product into the beverage market segment.

In order to introduce and mass produce this new product, F&N need to deploy a huge sum of investment or money in its product planning unit. F&N will then employ temporarily men or workforce to do market survey to understand the current demands and the untapped needs of the isotonic market segment. Method such as focus group can also be conducted to get each participant feedback on their needs and how F&N can satisfy this need. The result of the feedback may be in the form of special taste, flavor, nice packaging and most important an isotonic beverage that can fulfilled the customer thirst. After engaging the potential end user and understand their needs, F&N marketing team will need to work closely with the product planning department to derive a formula that can satisfied this users needs. Thus, inter-department communication and information sharing is very much important so that all data collected will be the tabulated and converted or transformed into the special isotonic formula. Then, this formula ingredient information is supply to F&N supplier. F&N supplier which consists of the material or ingredient supplier, aluminum foil, glass bottler and plastic bottler will follow and execute the demand given by F&N. These suppliers will deliver the materials require to F&N manufacturing plant. The machine which has been equipped with the data will start producing the new isotonic drinks in F&N plant. The new product effectiveness is then measure by conducting again different product testing group methodology. The new product is then confidently mass produce into the beverage markets. This new products satisfied the consumer taste and flavor. It also comes in exciting packaging and most importantly satisfied the customer thirst. However, for the F&N management team, the most important returns of this new product is money in the form of increase profits. Nevertheless, the motive power could be long term returns in the form of new market penetration and increase of market share for F&N in the beverage industry. It could be also F&N management long term objective of satisfying its customers’ needs. Lastly, F&N management will be able to deliver the best performance for its stakeholders such as shareholders and employees.

2 (a)
i) Productivity can be increased by increasing output while maintaining input constant. This could be by using TQM, JIT or ISO concept that reduce cost and maximize output. ii) Productivity can be increased by decreasing input while maintaining output constant. This could be done by...
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