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Term Paper on Transcom Beverage limited

Course Code: MGT 337

Section: 4

Submitted to
Kaniz Fatima
Senior Lecturer
Department of Business Administration
East West University

Submitted by
Name Serial ID
Munmun Akter Moni Chowdhury 7 2016-3-10-052
Fahim Zubaer 2 2015-3-10-166
Akramul Islam 5 2016-2-10-142
Khondocar Abdul Ahad 31 2018-1-10-152
Tanjina Taher 1 2015-3-10-089
Moinul Hasan Ashik 8 2016-3-10-144

Bachelor of Business Administration

East West University
Date of submission: 20th May 2021
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20th May 2021,
Kaniz Fatima
Department of Business Administration
East West University
Subject: Submission of report on “Critical analysis of production operation
management of Transcom Beverage Limited”
Dear Mam,
With due respect, we are submitting our term paper on the topic titled”
Which we have prepared to fulfill the requirement of course MGT 337 in the
Department of Business Administration, East West University.
It was undoubtedly an interesting opportunity for us to work on this assigned topic
to enhance our knowledge. We would like to thank you for giving us this opportunity
to do the study. We tried our very best to go deep into the matters and make full use
of our capabilities in making the term paper meaningful, though; there may be
mistakes. We will be pleased to answer any kind of query you think necessary.
Therefore, we sincerely hope that you will appreciate our effort and for any kind of
your further queries, we would be at your disposal at your convenience. It would be
our immense pleasure if you find this assignment to be functional and informative.
Sincerely Yours,

Name Serial ID
Munmun Akter Moni Chowdhury 7 2016-3-10-052
Fahim Zubaer 2 2015-3-10-166
Akramul Islam 5 2016-2-10-142
Khondocar Abdul Ahad 31 2018-1-10-152
Tanjina Taher 1 2015-3-10-089
Moinul Hasan Ashik 8 2016-3-10-144

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 ACKNOWLEDGEMENT

At first I want to thank those people to extend their help providing suggestions and
advices. This report is the result of many people’s contributions and help.
Special thanks go to our honorable project coordinator “Kaniz Fatima” (Faculty of
Business Administration, East West University) who helped us giving tips,
suggestions and valuable advices regarding the topic “Critical analysis of production
operation management of Transcom Beverage Limited”
Her candid suggestion, patient, enthusiastic, encouragements thought have made this
attempt successful. Her insight and invaluable remarks left distinct of the work. To
her generosity, our gratitude is unbounded.

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 Table of Content

Topic Page Number

Introduction 06
Product Categories 07-09

Productivity 09-11
Process Strategies 11-14

Facility Layout 14-15

Product Strategies 15

Scheduling 16-17
Forecasting 17-19
Inventory Management 19

MRP (Material requirement Planning) 19

ERP (Enterprise Resource Planning) 20

Reference 21

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 Introduction

Transcom Beverages Limited (TBL) is the exclusive PepsiCo Franchisee for Bangladesh. It is an
associate organization of Transcom Group which is one of the leading conglomerate companies in
Bangladesh. TBL owns and operates modern plants in Dhaka and Chittagong for bottling the
renowned soft drink brands such as Pepsi, Pepsi Diet, Pepsi Black, 7UP, 7Up Lite, Mirinda, Slice,
Mountain Dew, and Tropicana. 2009 has been an amazing year for TBL, winning several
spectacular awards as PepsiCo's exclusive bottling partner in Bangladesh. For its' extraordinary
and outstanding venture through excellence, TBL has been rewarded with several prestigious
national and international recognition.
The company is delivering sustained growth in Bangladesh and is moving towards a dominant
Beverage Company, delighting & nourishing every Bangladeshi, by best meeting their everyday
beverages needs and the stakeholders by delivering performance with purpose, through talented
people. Mr. Latifur Rahman, Chairman & CEO of Transcom Group, has been conferred with the
"Oslo Business for Peace Award 2012. To deliver sustained growth in Bangladesh and move
towards dominant beverage company, delighting and nourishing every Bangladeshi, by best
meeting their everyday beverages needs and stakeholders by delivering performance with purpose,
through talented people.

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 Product Categories

Transcom beverage limited (TBL) is most renowned beverage company in Bangladesh. Transcom
beverage limited have five types of beverage products. The beverage products are-

➢ Carbonated Soft Drinks: Mirinda, 7UP, Pepsi, Pepsi diet, Mountain Dew, 7UP Light are
the carbonated soft drinks.

➢ Noncarbonated Soft Drinks: Slice Juice and Tropicana Juice is the non-carbonated soft
drinks. Tropicana have three new taste juice, Mango, Apple and Orange are the Tropicana
Juice taste.

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➢ Drinking Water: Aquafina is the drinking water represent by Transcom Beverage.

➢ Soda: Evervess (Club Soda) is produced and marketing by Transcom Beverage Limited

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➢ Energy Drink: “Sting” is produced by Transcom Beverage limited.

Productivity

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Productivity is a measure of the efficiency of a person machine, factory, system, etc. in converting
inputs into useful outputs. It is commonly defined as a ratio between the output volume and the
volume of inputs.

Productivity is computed by dividing average output per period by the total costs incurred or
resources (capital, energy, material, personnel) consumed in that period.

Productivity = Output from the operation / Input from the operation

Transcom beverage use both single factor productivity and multi factor productivity. For
measuring the productivity performance

Single Factor Productivity

In single factor productivity the transcom beverage to going for the raw material productivity.
Labor productivity, capital productivity and also energy productivity.

Raw Material

Transcom beverage use water carbon-di-oxide gas, sugar and a secret ingredient as raw material.
They also need many water treatment plant. And they are many micro biology labs for the carbon
di-oxide and other secret ingredient. They have many laboratory and ware house for processing
the raw materials. Every day they use about 1,09,200,000-taka raw material for produce 2,08,000
case of finished beverage.

Material productivity = Output for the operation / Raw materials

= 2,08,000 case per day / 1,09,200,000 taka

= 0.001904 case/day/taka

Labor/ Staff

Transcom beverage have 2152 for employees at this production house. All of them work 8 hours
6 day in a week as per the labor act. Some of their employee works to maintain the production and
other are directly related to produce the transcom beverage are highly efficient.

Labor productivity = 208000 case per day / 2152 employees * 8 hours

= 12.081 Case per employee per hour

Here in every hour a single employee can produce 12.081 case of soft drinks. So their labor
productivity is very much high and efficient.

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Capital

Capital is one of the important element for any production. Transcom beverage use a huge amount
of capital for their daily production. It is about 1,29,200,000 takas per day capital cost for
producing 2,08,000 case beverage. They utilize the capital for producing different types of
beverage. Most of them are so popular in our community.

Capital productivity = 208000 case / 1,29,200,000 taka

= 0.001609 case per taka

So their capital producing is 0.001609 case/taka.

Energy

Transcom beverage use a huge amount of energy per day for their production. Most of their energy
use for refining the water. They use multi tanks for refining the water and prepare it for the
beverage. They also use energy for packaging their product. On average transcom beverage use
40,000 units of energy at a single day. For productivity 2,08,000 case of beverage items.

Energy productivity = 208000 cases per day / 40000 units per day

= 5.2 cases per unit

To produce 5.2 cases of beverage transcom beverage use 1 unit of energy.

Process Strategies
Process or transformation strategy is an organization's approach to transforming resources into
goods and services. The objective of a process strategy is to build a production process that meets
customer requirements and product specification within cost and other managerial constraints.
Process strategy is considered the heart of an organization. It determines the efficiency of the
company and are responsible for the product. Transcom beverage complete their process strategy
by inputting raw materials then production and output is the final step of processing. Transcom
beverage follows mass production process strategy. Because transcom beverage produce a very
high volume of more standardize goods or services.

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Input Raw Materials

For the raw material transcom beverage use sugar syrup, water, CO2, for making beverages. Most
of the raw materials that transcom beverage use that are fully refined and lab tested. when they are
interring the raw material at their production house they tested all the raw material with those high
quality labs. And they also refine the water and co2 in lab. In addition, they also take some secret
ingredients as raw material.

Production

When all the raw material arrive to the processing house or production house transcom beverage
is starting to make beverage.

Blow Molding

Blow molding is a manufacturing process for forming and joining together hollow plastic parts. It
is also used for forming glass bottles or other hollow shapes. The first step to create any beverage
item, Transcom beverage start to make the bottle for the beverage. Which Is called blow molding.
where the molding machine create the plastic bottles of those beverages.

Mixing Container

This is the second step to production. Where all the ingredient. Water, sugar syrup, co2 and other
secret ingredients mixed up and create the beverage properly. After that it goes to the filler
machine.

Mixing process

Filling Machine

This machine is filling the empty bottle that was made before the beverage mode. This machine is
highly pressured with CO2 gas and beverages. This machine can fill thousands of bottle at a single

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time this machine works very fast. This machines are fully automated and controlled by the
computers.

Filling process

Warmer Machine

This machine is used for the labeling purpose. It labeled the beverage the container of the
beverage has different label for different item of transcom beverage.

Date Code Machine

This machine printed the manufacturing date and expired date of the beverage. This machine also
printed the batch number and plot number of the beverage. This machine also wrapping the plot
or case of the beverage.

Output

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After completing the packaging, the product is fully ready to sell or store in the warehouse.

Facility Layout

Facility layout is arranging various production elements and optimizing for getting optimum and
efficient production results. Facility layout is concerned about adequate available space, the
complete product, the convenience and safety of the users, safety of the workers and the efficiency
of the operations. There are 4 basic type of facility layout, which are

Process layout:

The process layout is completely process oriented, this layout performs by grouping together
workers or production elements which performs the same process, the products in line moves from
one group to another group in this layout.

Product layout:

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Product layout is a type of layout where the product is made and assembled in a line which
comprises of workers, machineries and other departments concerned. This layout is ideal for
making high volume goods efficiently and quickly.

Hybrid Layout:

Hybrid layout is a mixture of both product and process layouts.

Fixed position Layout:

Fixed position layout is for products which are too big to be moved (ships, planes). As the product
cannot be moved so the workers and the machineries and other production elements are moved as
per need to complete the product.

Transcom beverage ltd. Utilizes product layout as their facility layout, Transcom beverage are
always producing high volumes of products, product layout is suitable and efficient for producing
mass amount of products on a daily basis, product layout where the product is made and assembled
in a line where the concerned worker’s machineries and other elements are lined up smoothly. This
makes production easy and helps to achieve a huge volume of produce. This is why Transcom
Beverage Ltd. Chose product layout as their facility layout to work more productively and
efficiently.

Product Strategy

Transcom beverages ltd. Utilizes unique product strategy where they will supply products which
are one of a kind and there is no competition for it in the market. As example mountain dew by
transcom beverage ltd. Is a completely unique product in every field, there is nothing like mountain
dew in the market that’s why it has market monopoly as a unique product. Transcom beverage has
another strategy to win customer support by looking for customer satisfaction. For example, Pepsi
and 7up are both more affordable than their competitors and also they have maintained same
quality while offering lower price which is sure to bag them the customer satisfaction successfully.
Transcom beverage is always researching the market looking for customer demand and using it to
create new products. They always deliver to customer demands effectively which is why have
many satisfied consumers and more are being attracted to their versatile line of products.

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 Scheduling

During the strategic call space of operations management facility and human resource schedules
area unit are the first concern. By supporting native information PepsiCo facility managers
implement human resource schedules. Nowadays machine-controlled programming is additionally
used for a few of PepsiCo’s production area schedules. Managing demand is¬ a vital challenge for
food and liquid makers. Due to short shelf life Making product to stock is not perpetually a viable
possible. Some firms can primarily use forecasts to drive the assembly set up as client orders might
not be received till the final minute. Production of the merchandise might have already started
before orders square measure received. Demand may be stricken by seasonal and different factors
like weather and commercials. An additional complication happens after you have an oversized
variety of merchandise which can solely be made in little production runs. this might not be the
foremost economical way to produce however you will don't have any different way. as a result of
food and liquid production typically runs 24/7. changes to demand that occur outside of traditional
business hours also can occur a challenge to the demand and production programming groups.

Demand is employed to drive the creation of a production schedule, and is verified and united
though a Sales and Operations coming up with (S&OP) method. There are variety unit of better
breed solutions out there to assist forecast demand.

Often there's naive expectancy of what associate degree ERP system will do for firms in terms of
production scheduling. The generic, pre-existing production programing modules of some ERP
systems will despond. The core designing and deciding process is usually found on a spread of
progressively advanced, ‘home brewed’ Excel-based workbooks, maintained by people. Less
often, within the absence of a book, there is also a series of manual processes, conferences and
selections, and therefore the output from these activities square measure then fed into the ERP
system, or the outputs of the ERP system square measure manually changed to mirror the in
agreement arrange. Production operations and provide chain rules, production processes and
constraints, etc. which will and do exist for any single production operation. Multiply this by
variations and complexities among and across trade sectors, and it’s hardly stunning that there's
not a ‘one size fits all’ scheduling software system answer that meets everybody’s desires.

These are some scheduling challenges which may face by Transcom Beverage Limited
manufacturers.

1. Management changeover from one product to a different on a line could need that
production resources ought to be clean down before another product is created on a line.
2. Availability of reusable assets like pallets, dolavs, and baskets could have an effect on or
stop production.

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 3. Management and Identification of bottleneck production resources which constrain
manufacturing capacity.
4. consumption and storage of ingredients that have expiration dates means they have to be
consumed at intervals a selected amount of your time thus as to not adversely have an
effect on the standard, the number, or the remaining shelf-life of the ingredients or
finished product.
5. To satisfy distribution necessities and specific dispatch times by scheduling.
6. Management of minimum and maximum wait times in between operations.
7. Preplanned preventive maintenance of scheduling.
8. Clearances of lines.

Forecasting of Transcom Beverages Limited

Forecasting is the art and science of predicting future events. Forecasting may involve taking
historical data and projecting them into the future with some sort of math mathematical
model. Forecasting process basically we maintain minimum seven days’ ready production
stored in the ware house.so that we can run at least 7 days without any production.
Forecasting also done in the base of the information of the previous year that how much sales
happened in the during time and information of weather.

FORCASTING MARKET DEMAND

SUPLIERS

Procurement Activity of Raw

MATERIAL

TRANPORTATION M
A
T
E
SENDING RAW MATERIALS FOR R
PRODUCTION I
A
L

OPERATIONS

MENT
ACTIVITY
OFTHE
TRANSPORTATION TO RAW
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WAREHOUSE A
T
E
R
Forecasting Demand

Push production is based on forecast demand and pulls production is based on actual or consumed
demand. In general, Transcom Beverages Limited (TBL) uses Push production through Statistical
forecasting techniques to forecast future demand. Statistical forecasting techniques provide an insight
into historical and seasonal trends, and help to evaluate the impact of promotional activities.

Production Plan

Production Manager or concerned production personnel provides six months’ production plan 1-5 days
ahead of the starting of production as per said plan. If there is any significant difference found in
production plan; production clarify for such inconsistency.

Sourcing Supplier

As Transcom Beverages Limited (TBL) finds itself in a highly and digitally connected business
environment, it increasingly relies on third-party suppliers for raw materials; manufacturing of
components or even complete products; assembly; logistics and distribution; and more. The importance of
suppliers increases the need for collaborative supplier relationships. Developing a collaborative
relationship requires time and effort.

Sample Management

Commercial department collects required sample from supplier with all supportive documents. The
required quantity and the required documents are determined by Quality Analyst. They follow ISO
procedure and instruction for sample approval process. They forward all sample with supportive
documents to Quality Analyst for approval as per ISO prescribed process and format. Quality Analyst
tests the sample of Commercial department then starts procurement process after Quality Analyst
approval.

Procurement

Procurement is the business management function that ensures identification, sourcing, access and
management of the external resources that an organization needs or may need to fulfill its strategic
objectives. Procurement exists to explore supply market opportunities and to implement resourcing
strategies that deliver the best possible supply outcome to the organization, its stakeholders and
customers.

Manufacturing

After the procured raw and packing material reaches into the factory premises, the quality of them are
checked and ensured by the quality analyst of the factory. If the materials are not satisfactory, these
materials are again sent to the suppliers to return. If the materials are of good quality as expected, then
they are permitted to go to the factory and start production.

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Inventory

To reduce a company's cost and expenses, warehousing management is concerned with storage, reducing
manpower cost, dispatching authority with on time delivery, loading & unloading facilities with proper
area, stock management system etc. Increased communication.

Inventory Management
1. Transcom Beverage Ltd. Uses automated software system.

2. Inventory relevant employees record the input and output of factory’s inventories and it
shows the availability of inventories.

3. Inventory relevant employees also keep record of sales so that, they may know by
automated calculation about how much inventories they need to produce or keep in hand to keep
running the supply market.

4. They also keep record about raw materials.

5. Which inventories need sell first and which need to sell later it also decides by inventory
management department.

Material Requirement Planning: MRP

Material requirements planning (MRP) is a system for calculating the materials and components
needed to manufacture a product. MRP, which is done primarily through specialized software,
helps ensure that the right inventory is available for the production process exactly when it is
needed and at the lowest possible cost. As such, MRP improves the efficiency, flexibility and
profitability of manufacturing operations. It can make factory workers more productive, improve
product quality and minimize material and labor costs. MRP also helps manufacturers respond
more quickly to increased demand for their products and avoid production delays and inventory
stock out that can result in lost customers, which in turn contributes to revenue growth and stability.

Transcom Beverage Ltd. Also follows the common steps which are follows by the other
companies. But they get advantage because of software system, which makes their estimation easy
and productive.

1. They take inventory of the materials and components on hand.

2. They identify which additional ones are needed

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3. Finally they schedule their production or purchase.

Enterprise Resource Planning: ERP

Enterprise resource planning (ERP) is a process used by companies to manage and integrate the
important parts of their businesses. Many ERP software applications are important to companies
because they help them implement resource planning by integrating all of the processes needed to
run their companies with a single system. An ERP software system can also integrate planning,
purchasing inventory, sales, marketing, finance, human resources, and more.

Transcom Beverage Ltd. follows primary and secondary sales automated system. Primary sales
indicate the sales from manufacturer to distributor. In secondary sale, products usually sales from
distributors to retailers. To compete in the relevant market, Transcom Beverage Ltd. need to be
cost effective in distribution system. The secondary sales automation is using in different
companies who are very much successful in relevant competitive market. It makes easier to supply
the product to the final consumer of products. The automation system calculates how much the
consumer consuming the products and the company can easily trace the acceptance of the products.

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Reference

http://www.transcombd.com/transcom-beverages-ltd.html

http://www.transcombd.com/

http://corporatebangladesh.net/transcom-group/

::MCCI-Member-TRANSCOM BEVERAGES LIMITED:: (mccibd.org)

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