In this assessment, you will submit a complete analysis of the case study located in the Module One Reading and Resources. Your analysis will include the work you did in Milestones One through Three with the addition of adjustments and reflection on the solution to the case problem. The Case study is below: Also ive inluded all modules i previously did as well as you will need them.
Proposal of Cost Reduction in the Production Process of Soft Drinks Concentrate from Tholor Do Brasil Based on the Use of Integrated PDCA/DMAIC Tools.
2-1 Final Project: Milestone One
George Allen
Daniel Corn
5/18/2024
Tholor Do Brasil is the corporation that is the subject of the case study. Brazil is home to
Tholor Do Brasil, a manufacturer of soft drink concentrates. The company’s goals are to satisfy
client expectations and create superior soft drink concentrates. The following parties are Tholor
Do Brasil’s stakeholders: – Clients: They count on Tholor Do Brasil to deliver soft drink
concentrates that live up to their expectations. Workers: They oversee the production process and
are impacted directly by any problems or inefficiencies. Owners: These individuals have made
investments in the business and anticipate financial gains. Suppliers: They supply the ingredients
and raw materials required for the production process. Regulatory bodies: They make sure
Tholor Do Brasil conforms to all laws and guidelines. Local groups: They could be impacted by
the business’s activities in terms of employment prospects and environmental effect.
Tholor Do Brasil is attempting to address the issue of excessive production costs in the
soft drink concentrate manufacturing process. The company’s aim of manufacturing the
concentrates at a competitive price and keeping profitability is being thwarted by the high cost.
The following are some ways that the issue impacts the company’s stakeholders: The cost of the
soft drink concentrates may increase for customers, making them less accessible. Employees
who negatively impact the company’s profitability may be at risk of losing their jobs. Lower
returns on investment could be experienced by shareholders if the cost of production stays high.
Suppliers could encounter challenges if the business tries to bargain for cheaper raw material
pricing to cut expenses. Regulators might be worried about the company’s capacity to make
money.
Strengths
Tholor Do Brasil has
an established
position in the soft
drinks concentrate
market, which
provides a
competitive
advantage.
SWOT ANALYSIS for Tholor Do Brasil’s
Weakness
Opportunities
The identified
problem indicates
that the company
is facing
challenges in
managing its
production costs
effectively,
impacting its
profitability
Tholor Do Brasil can explore
various cost-saving
strategies, such as optimizing
supply chain management,
improving production
efficiency, and reducing
waste.
Threats
Teledyne is the closest
competitor along with
Beldon. These two
companies are trying to
bet Carlisle to the
Market on several of
Carlisle’s new products.
Limited Capacity from
the two plants that can
make wire, which is the
start of the process.
Other companies
cannot expand if these
two do not.
Strengths
Technological capabilities: The company
utilizes advanced production technology,
allowing for efficient and high-quality
production processes.
Weaknesses
Opportunities
Threats
Product diversification: The company can expand
its product offerings to cater to a wider customer
base and potentially increase revenue.
Raw material price fluctuations: The cost of raw
materials used in the production process may
vary, impacting the overall production costs.
SWOT and Risk Analysis.
Inefficient resource utilization: There may be areas
of resource wastage or underutilization within the
production process, leading to increased costs.
SWOT ANALYSIS
Strengths
Weakness
Opportunities
Threats
The production
process of soft
Tholor Do Brasil
drinks
has a wellconcentrate
established
may have
production
inefficiencies
process for soft
leading to
drinks concentrate higher costs.
Growing demand
for healthier and
natural beverages
presents an
opportunity for
Tholor Do Brasil to
expand its product
portfolio.
. Intense
competition from
other soft drink
concentrate
manufacturers may
impact Tholor Do
Brasil’s market
share.
Tholor Do Brasil
may have
limited
technological
capabilities.
The company can
explore new
markets and
expand its
distribution
network.
Changing
regulations and
government
policies may pose
challenges for
Tholor Do Brasil’s
operations.
The company
may face
challenges in
adapting to
changing
consumer
preferences.
Increasing
consumer
awareness about
environmental
sustainability opens
opportunities for
Tholor Do Brasil to
develop ecofriendly packaging
solutions.
Negative consumer
perception or
health concerns
related to soft
drinks may impact
demand.
The company has
a strong market
presence and
brand recognition.
Tholor Do Brasil
has a strong
financial position.
Ineffective resource management by Tholor Do Brasil could lead to inefficiencies, resource
waste, or increased operating expenses. This consequently exacerbates the issue of excessive
production expenses and keeps the business from cutting costs to the desired level. Tholor Do
Brasil may systematically identify areas of improvement, implement cost-saving measures,
monitor the results, and make necessary adjustments by using integrated PDCA/DMAIC
technologies. This strategy can assist the business in reducing waste, streamlining operations,
optimizing resource management, and eventually lowering costs associated with producing soft
drink concentrate.
Sources
1. Business Management Dynamics. Jun2022, Vol. 11 Issue 7, p1-19. 19p.
2. de Assis Mourão Júnior, Francisco; Magalhães, Edílson Marques; Reyes Carvajal, Tirso
Lorenzo. Business Management Dynamics. Jul2016, Vol. 6 Issue 1, p36-54. 19p
Enhancing Production Efficiency at Tholor do Brasil Ltda
George Allen
Southern New Hampshire University
5/29/2024
The following table summarizes the survey responses from Tholor do Brasil Ltda
employees regarding various aspects of the production process:
Response
Survey Question
1
Percentage
Response 2
Percentage
Employee ratings of production classification
Good
66.67%
Excellent
33.33%
The current standard time for equipment cleaning and
sanitizing
Correctly 91.67%
Need More Time 8.33%
Check list time for equipment
Sure
75%
Unsure
16.67%
Standard time in the feeding process
Sure
75%
Unsure
16.67%
Need
Homogenization time for adding caramel color
Safe
91.67%
Improvement
8.33%
Need
Stabilization time for the filling process
Lower
66.67%
Improvement
16.67%
Need
Weight of 47 kg bombona
Satisfied 83.33%
Improvement
16.67%
The survey data from Tholor do Brasil Ltda reveals key insights into the company’s
production process. A significant portion of employees, 66.67%, rate the production as good,
while 33.33% consider it excellent, indicating overall satisfaction but room for improvement.
Regarding equipment cleaning and sanitizing, 91.67% believe the current standard time is
adequate, though 8.33% suggest more time is needed, highlighting a potential inefficiency.
Similar trends are seen in the checklist and feeding process times, with 75% confidence but
16.67% uncertainty, indicating areas for potential process reviews.
For homogenization time when adding caramel color, 91.67% feel it is safe, though
8.33% see room for improvement, which is crucial for maintaining product quality. In the filling
process, 66.67% think stabilization time could be reduced, with 16.67% seeking improvements,
pointing to inefficiencies affecting production speed. Additionally, 83.33% are satisfied with the
weight handling of 47 kg bombona, but 16.67% believe improvements are needed, indicating
potential ergonomic issues.
The bar graph visualizes these responses, making it easy for stakeholders to identify
strengths and areas needing attention. Addressing these feedback points through targeted
adjustments can enhance efficiency and help Tholor do Brasil Ltda achieve its operational goals
more effectively.
Survey Question
Employee ratings of production classification
The current standard time for equipment cleaning and sanitizing
Check list time for equipment
Standard time in the feeding process
Homogenization time for adding caramel color
Stabilization time for the filling process
Weight of 47 kg bombona
Response 1
Good
Correctly
Sure
Sure
Safe
Lower
Satisfied
Percentage
66.67%
91.67%
75%
75%
91.67%
66.67%
83.33%
Response 2
Percentage
Excellent
33.33%
Need More Time
8.33%
Unsure
16.67%
Unsure
16.67%
Need Improvement
8.33%
Need Improvement
16.67%
Need Improvement
16.67%
Continuous Improvement
George Allen
Southern New Hampshire University
5/29/2024
Continuous Improvement
To solve the problem related to high production costs at Tholor do Brasil, I will use the
PDCA cycle strategy with Lean Six Sigma.
Plan: The solution entails proactively applying Lean Six Sigma techniques to enhance
production line efficiency. Inefficiencies to be addressed include labor and material costs: the
company expects that applying Lean manufacturing and Six Sigma may significantly reduce
costs and increase productivity. The measures also involve employee education, goal-oriented
reductions, and installing systems to tailor the processes to specific quality and efficiency
standards. I agree that this systematic approach enhances organizational performance through
optimized manufacturing productiveness and cutting expenditures.
Do: The critical components of the implementation phase are the types of practical
activities, such as improving the layout of the production process, increasing the efficiency of the
controlling of stocks, or organizing staff training in Lean. The company will implement these
changes over six experimental months, during which it will collect information on the changes in
the collected parameters, such as productivity, rates of wastage, and cost-effectiveness. To
counterpoint the abovementioned issues, these changes propose modifications that will have
concrete outcomes for the production process.
Check: It is important to note that after making the changes, a practical assessment of
their effect will be conducted based on the collected information. Other measurable objectives
will be assessed, like those linked to manufacturing performance, such as output, wastage, and
costs. It will also help establish whether the solution achieves the 30% targeted reductions in
production costs and waste levels. The bar chart for the cost saving and line chart for the waste
reduction over the trial period are other essential factors that will give more clarity and
graphically present the achievement.
Act: Aspects of the organization’s performance taken into consideration in the analysis
will help determine the solution’s effectiveness. These percentiles will determine whether the
solution is fully implemented and successful if they reveal cost and waste cuts. If not, further
modifications will be made for experimentation, and the subsequent PDCA cycles will be
arranged to enhance the process constantly. Such iterative improvement guarantees the
continuous fine-tuning and enhancement of production processes, a strategic objective at Tholor
do Brasil.