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Cadbury Schweppes PLC: Presented By: Kulwant Dhillon Micheal Elias Junfeng Ma Ramandeep Sran
Cadbury Schweppes PLC: Presented By: Kulwant Dhillon Micheal Elias Junfeng Ma Ramandeep Sran
Presented By:
Kulwant Dhillon
Micheal Elias
Junfeng Ma
Ramandeep Sran
Contents
Introduction
Operations Strategy of Cadbury
Using Operations to Compete
Recent Trends in Operations Management & Cadbury
Process Strategy & Process Analysis
Human Resource Management of Cadbury
Capacity Planning & Constraint Management
Lean Systems by Cadbury
Supply Chain Design & Integration
Resource Planning & Scheduling
Location Planning
Summary
References
Introduction
Origin of Cadbury
Cadbury is the brain child
of John Cadbury
Starting in form of grocery
business in Birmingham in John Cadbury
1824
In 1853, Cadbury became
the confectioner to the
British Crown.
In 1860, Richard and
George took command and
expand it further.
Today Cadbury operate
Globally
Cadbury Schweppes PLC: Overview
Cadbury Schweppes PLC is a
British confectionary
company
Headquarters in Uxbridge,
England.
The oldest and largest family-
run businesses in the world
In 1969, it merged with
Schweppes Limited
Third leading producer of soft
drinks and fourth leading
confectionery manufacturer in
the World.
How large Cadbury Schweppes PLC ?
Around 65,000
Employees
35,000 direct and indirect
Suppliers
Direct operation over 60
Countries
The Industry in which the Company
Operates
The Food and Beverage Industry:
Fiercely Competitive Marketplace
Global market forces
Consolidation
Changing consumer preferences
Increasing government regulations
Product and Major Brands
Three kinds of confectionery: Chocolate (55%), Gum(14%) and Candy(31%)
USA India
South Africa
China
Japan Brazil
Mexico UK
Turkey
France
Russia Australia
Operations Strategy of Cadbury
Operations Strategy
Mission: Financial Scorecard,
judiciously reinforced by our
Priorities, Commitments and
Culture.
http://www.youtube.com/watch?v=qHK-dzK-kS8
Core Processes to delivery the Final
Product
Internal and External Customers
Inputs Outputs
Processes and Operations
•Cacao varieties Delicious
•Milk Chocolate
•Processing
•Cocoa
•Blending , Gum and
•Palm Oil
•Cinching Candy
•Other
•Tempering And
Grocery •Storage
Products Beverages
Information on Performance
Productivity improvements:
Replacing Air Compressors, Chilling system machines at
Manufacturing and Packaging lines.
Technological Changes:
Ringwood, Victoria Plant Identifies many opportunities for
making innovation and technologies that will reduce the waste
from the Chocolate.
Production
Packaging
processes
Ingredients
Tasting
& recipes
Awards won by Cadbury for its
Performance & Quality
Cadbury Schweppes plc was awarded Business in the
Community's Jubilee Award
Fair remuneration:
Working hours and remuneration are reasonable and comparable to
those offered by similar companies
Continue………
Newsletters, the Group website and about 250 local websites also
help employees to know what is going on within the business at
local, regional and Group levels.
Capacity Planning & Constraint
Management
Constraints Analysis in Cadbury
External Constraints
Market Extent (Bad)
Internal Constraints
The existing scale and capacity of buildings and machinery
used in the production process(Good)
The skills and training of the labor force(Bad)
The availability and flexibility of the labor force(Bad)
Access to an abundant supply of parts and raw
materials(Good)
Time(Good)
Finance(Good)
Constraints Management in Cadbury
Extent Market Chocolate Market share
Many competitors:
36.2 34.1
▪ Thorntons Cadbury
Hershey
▪ Lindt & Spruengli Others
29.7
▪ Nestlé S.A.
▪ Ferrero SpA
▪ Hershey Company Gum Market Share
Labor Force
Cadbury Way
Intermittent analysis and static results could Optimal inventory level for each
not keep up with dynamic changing SKU/location across the network
environment dynamically fed to R/3
Not integrated with R/3 — manually updated Highly automated. Direct interface to R/3.
Lag 2 Forecast Error at the SKU level Historical order/line item variability
generates safety stock. Considers not
only quantities, but also order frequency.
Lean Systems by Cadbury
Just in time benefits for Cadbury
Reduce costs
By using JIT product line, the inventory cost of Cadbury reduced from
$670,000 to $200,000
Improve the productivity
Because of reducing stock holding, Cadbury was able to cut the assembly
time by over 95%
Improve the competitive advantage
JIT creates a more flexible business that has better communication with
customers and suppliers, and can react more quickly to market demands,
which bring more competitive advantages for Cadbury
Improve job satisfaction
JIT demands active participation in the production process from employees.
It increases their skills, gives them greater responsibility and fosters an
interest in the performance of the whole company
Supply Chain Design &
Integration
Wholesale &
70 %
Third Party
Ghana Stores
Cadbury
Manufactu
Cus
ring Plants tom
er
30 % Cadbury
Other Owned
Locations
Stores
Depending on Ghana for Supply
End Customer
Needs Product to Be Available
Needs Product to be Safe
Kraft has had great success with SAP systems to handle ERP.
Recently, in 2008, they upgraded to SAP ERP 6.0. Using the
SAP system they were able to reduce their operational costs
and see profitable results.
Now that Kraft has bought the company, they are strategically
looking to phase out many operations in Britain for cheaper
areas of labor such as Eastern Europe and overseas countries.
Summary
It is a fascinating story of Industrial and Social Development.
Thanks