Supply Chain Management and Kaizen in Coca-Cola Amatil Indonesia

SCM:

PT. Coca-Cola Amatil Indonesia is one of subsidiary from The Coca-Cola Company which is engaged in botling and distribution of famous soft drink likes Coca-Cola, Sprite, Fanta, Freastea, Ades, Minute Maid, and Isotonic. In the supply chain of Coca-Cola Amatil Indonesia there are 3 (three) kind of flow that must be manged by Coca-Cola Amatil Indonesia:

1.       First is, the flow of goods from upstream to downstream

2.       Second the flow of money and its kind that flow from upstream to downstream

3.       Third the flow of needed information that can be happen from upstream to down stream or in reverse

Moreover, Coca-Cola Amatil Indonesia is very strict with their quality. That’s why they use the concept of jidoka. The use of jidoka in here is very influential in this business because it will increase the quality of production, lowering cost, reduce leadtime and improve customer service.

It will increase the quality of product by prevent the defective product by using machine so when there are defective product get into the machine, that machine will stop and make some strange noise no matter if it’s the content or the bottle, or the plastic glass too (for tea product) and the defective product will be destroyed and the company will recycle it to become clean water for watering the plants, and for glass bottle or pet bottle they will broke it and sell the pieces of the bottle to make that piece to become bottle again.

And kanban in Coca-Cola Amatil Indonesia is using properly the function of Kanban itself in Coca-Cola Amatil Indonesia is to prevent over production of the drink by adjusted with ordered material so they won’t over produced, and maintain visual control. In Coca Cola Amatil Indonesia they use the concept of JIT too, so it will make the product according to the demand from market or another retail so they doesn’t keep inventory of the product for too long or too many because if they keep too many inventory it will increase the waste of unnecessary stock. If they still keep too many stock in inventory their business will be bankrupt because wasting of cost for unnecessary stock. Coca-Cola Amatil Indonesia Implement waste elimination too, to increase profitability of their business in Coca-Cola Amatil Indonesia they are eliminate 8 (eight) waste which is:

1.       Over production

2.       Unnecessary stock

3.       Inefficient transportation

4.       Unnecessary motion

5.       Waiting times

6.       Reject and defects

7.       Inappropriate processing

8.       And the last one is unused of genius employee or unused talent

All of this waste must be eliminated because if all of this waste aren’t eliminated it will affecting the business, so the business cannot run smoothly in effective and efficient way and will decrease the profit from the company. Beside of that the act of heijunka is more important to keep the production to more stable and consistent and it will do the smoothing towards schedule, and will receive the advantage in process of lead time and heijunka stabilize the volume and production activity by consolidating according to amount of demand.

Kaizen:

PT. Coca-Cola Amatil Indonesia not only do the best in supply chain management but in implementing of kaizen too, the floor, the wall, the machine, and all of the property in Coca-Cola Amatil Indonesia is in clean and good condition, even the toilet is clean and in good condition in Coca-Cola Amatil Indonesia they’re implementing all of the part of kaizen pretty good. The placement of property, the uniform inside of the factory all match the standard. Kaizen is important because it will making the profit, because the purpose of kaizen to increase the profit of the company.

Kaizen increase the profit because it does not interfere the performance of all employee, by useless tools and property if Coca-Cola Amatil doesn’t implement kaizen and all of the 5S in that factory they will lost all of the profit possiblity and all of the work cannot be done in effective and efficient way and fortunately Coca-Cola Amatil Indonesia implement all of 5S in that company, all of the 5S are:

1.      Seiri (sorting)

2.      Seiton (set in order)

3.      Seiso (shine)

4.      Seiketsu (standardize)

5.      And shitsuke (discipline)

Starting with the first “S” in kaizen which is Seiri, all I can tell about seiri in Coca-Cola Amatil Indonesia all of the tools in that company is well sorting all the useless and useful tools and property in Coca-Cola Amatil Indonesia, it is well separated all of the tools and machine in Coca-Cola Amatil Indonesia is in good condition and useful it is a proof that Coca-Cola Amatil always keeping eye with their tools, property, and machine in the company because if they didn’t keeping eye with all of their tools, property, and machine all of the production will be bother, because of many broken machine and cannot producing soft drink, tea, juice, dairy, and isotonic as many as usual and it will decrease the profit of their company.

The second “S” in kaizen is Seiton, all of the tools in Coca-Cola Amatil Indonesia are always put in order, after the employee used that tool they put back that tool in the first place that they take the tools from so all the employee can work effectively because if they want to use the tools they can find it easily it will reduce the time of useless motion, if all of the tools did not set in order it will wasting the times and production will be delayed because of messy environment.

The third “S” is Seiso, I can tell and approve that Coca-Cola Amatil Indonesia is the cleanest place that I ever visit, this is a prove that Coca-Cola Amatil is strict about cleanliness because they care about quality and customer satisfaction this will affect with the profit too because if the workplace is clean and all the environment is clean it will make a better workplace and increasing the mood of the worker and affecting the production.

The fourth “S” is Seiketsu, the standardize in Coca-Cola Amatil Indonesia is pretty good the uniform that they use follow the standard in their workplace, if they’re not use uniform according to standard it will slowing the production because it will make unwanted accident so it will increase the production time, and the function of seiketsu is to make the first three step as a habit and follow the standard. And the last “S” is Shitsuke, this means all the employee already discipline and follow the rule and already make kaizen as their habit.