Value Stream Mapping Coca Cola Malaysia Done

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PPB 3193 - Operation Management
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Group Project 1: Value Stream Mapping
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(Coca-Cola Company Malaysia)
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Prepared by: Group 10

Name Matric No.
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Yii See Soon D20181081968

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Loke Hui Chwen D20181082036

Sam Jun Jie D20181081978
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Lecturer: Dr. Nurul Fadly bin Habidin
1.0 Background of Coca-Cola Company Malaysia
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First Coca-Cola® selling is in 1886, when Dr John S Pemberton charged customers just
five cents a bottle. Since then we’ve become the world’s leading soft drinks manufacturer with
more than 700,000 employees and 500 brands.
Atlanta is where you’ll find our head office for The Coca-Cola Company, but while our
business is global in scale – we are a local company everywhere we operate, including Malaysia.
Our employees include teams of scientists, marketers and sales people in more than 200
countries including Malaysia.
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Coca-Cola brand has been in Malaysia since 1936, the company only established its
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corporate presence here 1979 by franchised its bottling and distribution to local partner F&N
Coca- Cola (M) Sdn Bhd. F&N’s is a well known manufacturer and distributors of local soft
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drinks which holds 64% share of the Malaysia soft drinks market (Fraser & Neave Holdings
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Bhd, 2010). F&N responsible to producing, packaging, distributing and merchandising Coca-
Cola as well as carry out localized marketing plan developed in partnership with TCCC. In the
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coming September 2011, TCCC will cease to partnering with F&N and began to source, produce
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and distributes its own products from the factory located in Nilai’s Bandar Enstek Techpark
In Malaysia, the Coca-Cola system manufactures, markets and distributes over 20
products including sparkling beverages (Coca-Cola, Fanta, Sprite, A&W, Schweppes), zero-
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calorie sparkling beverages (Coke light, Coke zero), juice drinks (Minute Maid Pulpy), teas
(Heaven and Earth), isotonics (Aquarius) and water (Dasani).
Since 2010, we have invested more than RM750 million in Malaysia creating more than
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800 jobs and touching over 60,000 customers. Through our programmes and partnerships we aim
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to make a lasting positive difference in the local community.

With an enduring commitment to building sustainable communities, in Malaysia we’ve
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chosen to focus our sustainability efforts on three areas of opportunities where we believe we can
make a meaningful difference to. We call them the three ‘Ws’, Women, Water, and Wellbeing.
This is our way of giving back to the communities in which we operate.
2.0 Value Stream Mapping (VSM)
Value stream mapping (VSM) is defined as a lean tool that employs
a flowchart documenting every step in the process. The value stream mapping process allows
you to create a detailed visualization of all steps in the work process. It is a representation of the
flow of goods from the supplier to the customer through the organization. Also, a value stream
map displays all the important steps of the work process necessary to deliver value from start to
finish. It allows companies to visualize every task that their team works on and provides single
glance status reports about each assignment's progress.
The primary purpose of creating a value stream map is to show companies the places
where they can improve their process by visualizing both its value-adding and wasteful steps.
Companies just have to put on display every important step of their work flow and evaluate how
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it brings value to their customer. In addition, value stream map allows companies to analyze their
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process in-depth and provides them with hints where they should make changes to improve the
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way they work.
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In summary, the main benefit of value stream mapping is it allows you to visualize and
bound your process. Also, it helps you optimize the way you deliver value to your customers.
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Last but not least, value stream mapping helps you identify the process steps with the greatest
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significance.
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3.0 Value Stream Mapping of Coca-Cola Company Malaysia
Daily Order Weekly Order
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Productio Customer
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Supplier n control
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Weekly
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Order
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Daily Order
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100000 units
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2 days Shipping
70000 units 50000 units 60000 units
Bottle
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0.5 days 0.1 days
Bottling Packaging 0.2 days
Inventorying
Forming
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C/T= 200 sec C/T= 50 sec C/T= 100 sec C/T= 50 sec
C/O= 30 min C/O= 20 min C/O= 60 min C/O= 20 min
2 shift 2 shift
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2 shift 3 shift
1.5 days
se dy
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2 days 1 day 0.5 day 7 days 0.2 day

0.5 day
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200 seconds 50 seconds 100 seconds 50 seconds

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PLT = 11 days
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VAT = 400 seconds

The diagram above shows the value stream mapping (VSM) for Coca-Cola Malaysia. It
can show all of the operating process of Coca-Cola and time taken for the process.
From the top, the production control is the unit that manages the process of production
smoothly. Controlling all the action of the process is called as production control and it can show
in VSM. For supplier, the supply order is daily while it is weekly order for the customers.
For the manufacturing process, the supplier delivers the 100000 unit raw materials like
bottles to the factory. In factory, the first process is the bottle forming. In this process, the small
pieces of plastic known as ‘resin’ are converted into the pre-form of a bottle and the pre-form is
blown into the size of bottle needed. Next step is bottling process. Bottle is filled with beverage
and scaled with the closure in bottling process. They also use laser inspects for over or
under filling of cola in bottle. In packaging process, the bottle would be stuck
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with label and plastic wrapping around the cases and then move to the
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warehouse for storing or inventorying. While in the inventorying process,
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they distribute collect order from customer and deliver by sea freight.
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For the Value Added Time (VAT), it can see the time taken for all the
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process. It takes 200 seconds for bottle forming, 50 seconds for bottling, 100
seconds for packaging and 50 seconds for inventorying. The total Value
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Added Time is 400 seconds. The process spends more time in bottle forming
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because the process is the most complex. Moreover, Production Lead Time
(PLT) which is the time spent for wait in inventory between production steps.
For PLT, it is spend more time compare with VAT which is record at 5.5 days.
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4.0 Conclusion
As conclude, Coca-Cola Company is one of the best beverage manufacturers in the world
since they have reached the brand new record which producing 1.8 billion drinks daily in 2018.
Although there are massive amount of beverages produced, but they never neglect or ignore the
quality of the products. In the other hand, they also create a lot of waste during the manufacturer
process include the plastics and also the waste values. The waste values are determined by Value
Stream Mapping (VSM) method. VSM helps to create a detailed visualization of all steps in the
process which giving meaning that the companies can see directly and visualize about which part
of the process are the wasteful steps and value added. Once they found the wasteful or
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unnecessary steps, they can evaluate the steps and make the improvement on it. Lastly, value
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stream mapping is quite useful and as a power tools for the industries which able to avoid the
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wasteful steps and optimize the process to deliver the greater value to consumer or customers.
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5.0 Reference
Coca-Cola Journey. (2018). The Coca-Cola Company in Malaysia. Retrieved from
https://www.coca-cola.com.my/our-company/the-coca-cola-company-in-malaysia
Hines, P., & Rich, N. (1997). The seven value stream mapping tools. International Journal of
Operations & Production Management, 17(1), 46-64. doi:10.1108/01443579710157989
Hines, P., Rich, N., & Esain, A. (1999). Value stream mapping. Benchmarking: An International
Journal, 6(1), 60-77. doi:10.1108/14635779910258157
Kanbanize. (n.d.). What is Value Stream Mapping (VSM)?. Retrieved from
https://kanbanize.com/lean-management/value-waste/value-stream-mapping
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Project Enginner. (2019). Steps to Powerful Value Stream Mapping. Retrieved from
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https://www.projectengineer.net/steps-to-powerful-value-stream-mapping/
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UKEssays. (November 2018). A Marketing Analysis of Coca Cola in Malaysia Marketing Essay.
Retrieved rs e
from https://www.ukessays.com/essays/marketing/a-marketing-analysis-of-
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coca-cola-in-malaysia-marketing-essay.php?vref=1
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m

PPB 3193 - Operation Management

Prepared by: Group 10

Yii See Soon D20181081968

Loke Hui Chwen D20181082036

Lecturer: Dr. Nurul Fadly bin Habidin

1.0 Background of Coca-Cola Company Malaysia

to make a lasting positive difference in the local community.

Daily Order Weekly Order

2 days 1 day 0.5 day 7 days 0.2 day

200 seconds 50 seconds 100 seconds 50 seconds

VAT = 400 seconds

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