Group “1”

Dinesh

Lakkana

Anuruddika

Sathees

Shammika

Niroshan

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

Company Introduction

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

History of Elephant House Beverages

Product

Product Mix

Products of Elephant House Beverages

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/=

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

Product Life Cycle of Elephant House Beverages

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.

Process

INPUTOPERATIONS OUTPUT

Process of Elephant House Beverages

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

Process of Elephant House Beverages

Location

First Building of Ceylon Cold Stores

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.

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.

Layout of Elephant House Beverages Plant

Supply ChainManagement

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.

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

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

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

Purchasing

Follows the Centralized purchasing of materials to

ensuring proper materials control

efficient store keeping

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

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

Thank You

Any Questions?