Group 4 - 014201600071 Inanda Meitasar i - 014201600009 Made Satya Viharini - 014201600027 Vincent Ignatius - 014201600025 Dessy Adiasti H. - 014201600118 Liu Thong Class: MGT1_2016 Subject: Production and Organization Management
Capacity Planning - Long Term Capacity: it is dependent on various other capacities like design capacity, production capacity, sustainable capacity and effective capacity. Generally, this capacity planning is greater than 3 years. The examples are: a. Lego, the Danish manufactur er er of children’s building bricks. It has recorded double-digit growth globally for the last 10 years, is now the biggest toy company in the world, and is counted among the top 10 most globally reputed brands. Lego’s avowed purpose is “to help the learning and growth of children by inspiring them with creativity and structured thinking by putting colorful bricks in their hands”. The
company stays on course by doing what is right to build long-term shareholder value and does not compromise its principles and beliefs to meet quarterly numbers. It eschews cutting investment in developing talent or building brands to meet quarterly or annual guidance. Lego’s eyes are always on how to continue to be a great play
partner for children and their parents five to 10 years from now. But it does this by focusing on the medium term. Consider that 60% –70% of Lego’s revenue every year comes from new products. (source: https://hbr.org/2016/06/all-hail-medium-term-planning https://hbr.org/2016/06/all-hail-medium-term-planning)) b. Nestlé b. Nestlé with its brand, Milo, is the world’s leading chocolate malt beverage that can be prepared with hot or cold milk mil k or water. It offers essential vitamins and minerals to meet the nutrition and energy demands of young bodies and minds. Launched in Australia in the early 1930s, the Milo brand takes kids' development seriously. It has long been known as an energy beverage strongly associated with sports and good health. By making Milo worldwide famous and almost there in every country. They have produced Milo in many countries, such as Australia, Peru, Colombia, Malaysia, Singapore, Canada, UK, Portugal, Brazil, etc. They also launch a global campaign
that support people who want to live a healthier lifestyle, such as in Colombia, Milo is closely tied to football (soccer), and the slogan several generations have sung is Milo te da energía, la meta la pones tú (" Milo gives you the energy, you set the goal").
Industry-leading research and development drives innovation and supports the constant renovation of our food and beverage portfolio. In addition, their researchers are exploring the role of nutritional therapies to maintain or improve health and investigating how they can help people look after their skin. By sharing our insights on global Nutrition, Health and Wellness challenges, building partnerships and by engaging with policymakers, stakeholders and key opinion leaders we strive to have a positive impact on the societies in which its operate. (source: http://www.nestle.com/brands/allbrands/milo) c. Nowadays KFC (Kentucky Fried Chicken) is being the world’s largest chicken restaurant chain and third largest fast-food chain, with over 9,000 in both franchise and company-owned restaurants worldwide and was operating in 68 countries, simply shows that KFC has the capacity to address the needs of its customers no matter how old their facilities and product form was. However, KFC’s significant service problem
will probably push their customers away from them, thus KFC must have to imply ways on how to meet the customers’ expectations. KFC had the capacity to innovate new products to fight other fast-food chains. As KFC entered 1980’s, they faced some issues especially on fried foods because consumers begun to demand healthier foods so they limit on fried foods. KFC responded to consumer demands for greater variety by introducing a variety of new products. New products introduction was not important part of KFC strategy. However, the introduction of chicken sandwiches and fried chicken by hamburger chains had changes the make-up of KFC’s competit ors. In addition, an increased popularity of healthier foods and consumers increasing demand for better variety led to number of changes in KFC’s menu offering. (source: https://hbr.org/2016/06/all-hail-medium-term-planning) - Medium/Intermediate Term Capacity: The strategic capacity planning undertaken by organization usually looks one to three years ahead of a time frame is referred to as medium term capacity planning. The examples are: a. PepsiCo’s Fritolay inaugurated its potato chips plant in Azov, Rostov region, southern Russia in 2010. The plant has been designed for an initial annual production
capacity of 25,000t, which is expected to grow to 50,000t/y with the addition of two production lines by 2013. This will double Frito-Lay's production capacity in Russia to 90,000t/y. The factory is equipped with extruding technology for the production of corn chips and crispy bread snacks. It is 30% more efficient, consumes fewer resources and generates less waste. PepsiCo is also building a $140m beverage plant at the site, bringing the total investment to $250m. It is expected to produce 500 million litres of iced tea and other soft drinks by spring 2013. The two plants will employ about 1,000 people and pay an average salary of $930 per month. The company is also planning to build a warehouse and another plant in Rostov by 2015. (source: http://www.foodprocessing-technology.com/projects/fritolaypotatochipsp/) b. Rp 21 billion that its issued capital grew from Rp 742 billion to Rp 763 billion. The shareholders of ISM included Cab Holding Ltd (46.53%), other (9.6%) and the public (43.78%). Its installed production capacity was 15 billion packets per year in 2008, up from 14.5 billion packets per year in the previous year. Its capacity utilization was 80% in 2008. ISM is the largest producer of instant noodlest in Indonesia, even in Southeast Asia. Currently ISM has 16 factories up from 14 units earlier located in Java, Sumatra, Kalimantan and Sulawesi. The company also has production facilities for spices to support its instant noodles industry. The factories, all located in Java are run by PT. Indosentra Pelangi. In addition, ISM also has two wheat procesisng factories in Jakarta and Surabaya- under PT ISM Bogasari and 1 factory to produce wheat flour sacks in Citereup. Currently, the production capacity of Indofood with 8 units of installed production machines is 3,500 carton boxes of 40 packets per machine per shift. A day is made in three shifts that its daily production averages 3,360,000 packets. ISM’s net sales of instant noodles in 2008 grew 29% to Rp 10.90 trillion from Rp 8.44 trillion in the previous year. Its sales volume grew 7.3% from 21.10 billion packets in 2007 to 12.98 billion packets in 2008. The company exports around 2% of its instant noodles production to more than 50 countries in the world. Indofood is always trying to reach the global market for noodle producing. Indofood's annual output capacity of 16 billion meals accounts for about 15% of global consumption in 2013. Indofood approach the global market by colaborating with the company which exist to their destination country, such as in Japan, Indofood works with Asahi Co., and so on. (source:http://www.datacon.co.id/InstantNoodle1-2009.html)
c. Air Asia is a Malaysia-based company engaged in the provision of air transportation services. The Company operates a fleet of 90 aircraft and flies to more than 60 destinations from hubs in Malaysia, Thailand and Indonesia. It operates more than 3,500 flights a week. The world leading low fare airline in the Asia, Air Asia has been growing rapidly since 2001, to become an award winning and the major low cost carrier in Asia. Air Asia was founded by a government-owned conglomerate DRB-Hicom in 1993. On 2 December 2001, former Time Warner executive Tony Fernandes's company Tune Air Sdn Bhd purchased the heavily-indebted airline for the token sum of one ringgit. Fernandes advanced to engineer an outstanding spin, turning a profit in 2002 and introducing new routes from its hub in Kuala Lumpur International Airport. Air Asia believes in the no-frills, hassle-free, low fare business idea and feels that keeping costs low needs high efficiency in every part of the business. Efficiency generates savings which are then passed on to customers so that inexpensive air travel can become a reality. Through its idea of 'Now Everyone Can Fly', Air Asia has introduced a revolution in air travel with more and more people around the region choosing Air Asia as their preferred choice of transport. (source:https://www.ukessays.com/essays/marketing/the-strategic-planning-of-airasiaairline-marketing-essay.php) - Short Term Capacity: The strategic planning undertaken by organization for a daily weekly or quarterly time frame is referred to as short term capacity planning (less than a year). For instance: a. Kate Spead & Co., the luxury handbag and fashion accessories company announced fourth-quarter 2016 results and that the company is "reviewing strategic alternatives." Quarterly revenue climbed 9.8% year over year (10.1% excluding sales for wind-down operations in last year's fourth quarter), to $471 million, driven by 9.2% growth in direct-to-consumer comparable sales. On the bottom line, net income grew 39.2%, to $85.5 million, while diluted earnings per share from continuing operations were $0.67. Adjusted for using a normalized tax rate, diluted earnings were $0.41 per share, up from $0.32 per share in the same year-ago period. Analysts, on average, were expecting Kate Spade to report slightly higher fourth-quarter revenue of $472.8 million, but lower adjusted earnings of $0.35 per share. The first thing that comes to mind in these cases is the potential for Kate Spade to put itself (or a portion of its
business) up for sale. But to be fair, Kate Spade reminded investors, "There can be no assurance that this review process will result in a transaction or other strategic alternative of any kind". In addition, Kate Spade noted there is no definitive timetable for the completion of this process, instead promising it will "proceed in a timely manner" and offer updates as it deems appropriate. (source:https://www.fool.com/investing/2017/02/16/why-kate-spade-co-stock-jumped -today.aspx) b. Taco Bell is an American chain of fast-food restaurants based in Irvine, California. A subsidiary of Yum! Brands, Inc., they serve a variety of Tex-Mex foods, including tacos, burritos, quesadillas, nachos, other specialty items, and a variety of "value menu" items. Taco Bell serves more than 2 billion customers each year in 7,000 restaurants, more than 80 percent of which are owned and operated by independent franchisees and licensees. Once, Taco Bell makes program which is “This Week in Taco Bell” where as to looking for the attent ions from people who
would like to designing, as to reach intermediate range planning of Taco Bell which is open 2,000 new Taco Bells by 2022, which bodes fairly well for humanity. With that expansion in mind, the Mexican-inspired American fast food chain is renovating restaurants in Orange County, Calif. to reflect four new Taco Bell design schemes that will ultimately be customized and implemented for future Taco Bells across the country and the world. where these new designs are Heritage, Modern Explorer, California Sol, and Urban Edge. (source:http://ftw.usatoday.com/2016/05/taco-bell-this-week-in-taco-bell-new-restaur ant-designs-healthy-tacos) c. Chatime is one of the largest and most recognizable bubble tea chains worldwide. With their 5-year anniversary, here in Canada this year they plan on releasing a limited series of teas at all Canadian locations starting Sept 8, 2016. Made of all-natural Butterfly Pea Flower and Hibiscus Flower teas their 5-year anniversary line of Twilight Teas is high in antioxidants with no added sugars, preservatives, or artificial colors. The series of teas are aptly named Twilight as the beautiful red and blue hues mix seamlessly with various flavor and color combinations that are reminiscent of the colors of the sky from dusk ’til dawn. This limited as their short-term planning as it will not be lasting in the menu for long time. Therefore, people may curious to have a taste of it and the demand will be higher. (source: http://theallonsy.com/chatime-twilight-series/)
Source of period time retrieved from: http://learn-business-english.blogspot.co.id/2006/06/short-intermediate-and-long-rang e.html
