Manufacturing Product: Toilet Tissue Paper Essay Sample
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Manufacturing Product: Toilet Tissue Paper Essay Sample
The urban and rural areas have seen an increase in number of modern buildings all over the world. The uptrend of rural people moving towards urban areas makes them aware of more hygienic pit toilets. Consumers are rapidly shifting away from known traditional methods of maintaining hygiene to more convenient and modern methods offered by tissue in all kind. Toilet tissue paper demand has grown in few years because of growing population of young adults and consumers who are more informed and appreciate the benefit of toilet tissue paper in daily life in context with hygiene. Toilet tissue paper is available in different variety of patterns.
The variety may include textures or decorations and it may be scented. Although, perfumed tissue paper sometimes cause problems for the consumer who is allergic to fragrances. This Paper is a study of different functions in the manufacturing process and the process design of the toilet tissue paper industry. It also critically analysis different activities like procurement, production, supply chain management and marketing taking into consideration demand management, inventory management and forecasting. Many experts in this field have done researches and most of them are based on improvement of performance of production activity and material flow management within supply chain. Therefore, factors influence the process design has been studied and the trade-offs shows the operational performance in the making decision in process design.
“Tissue paper has become one of the most essential commodities used in day to day life” (PRWEB). Demand for toilet tissue paper is increasing at higher level. Though demand for other tissue paper like towels, facial tissue, kitchen rolls are stable. The reason behind the sudden increasing demand of tissue paper is for personal hygiene and increase in international trips around the world. Demand pattern is very much important before operations management and demand without patterns nothing exists. It is necessary for the company to know the demand pattern of a particular product in context with the market. Demand of the product is identified with its characteristics. For instance: demand for toilet tissue paper depends on following characteristics: Soft
“By Pekka Niku”
Forecasting demand for finished goods is the starting point for all project/operational activities. It is the demand that sets supply chain in motion (lecture notes). “Forecasting is the tool for planning, projecting, predicting or estimating some future events or conditions which is outside of organisation’s control and provides basic managerial planning. Organisation forecast so they can plan and help shape their future. Forecasting is a crucial input for planning in almost all companies” (Milewicz, et.al, 1995).The tissue paper market is forecasted to increase by 4.9% by 2016 at a compound annual growth rate (CAGR). Tissue papers have become the prominent part of the beauty kit, and instead of cloth napkins tissue paper are used to wipe their faces.
Retail consumers and beauticians prefer tissue paper products because they are hygienic and cost effective and can be thrown away after one use. Forecasting can be done in several ways, some are explained below: Firstly, the company ask their retailers about the demand from customers of the finished goods that they are producing and according to the demand future operations are managed. For instance: Kleenex tissue manufacturing company ask their retailers like Tesco, Asda, Aldi and so on about the demand for toilet tissue paper among the customers on quarterly basis. In this kind of forecasting there is an upward trend because of accurate usage is known by the company from retailers. It also minimises the percentage of error in forecasting.
Secondly, the company directly approaches the end users of the finished goods produced by the company. In this kind of forecasting the company not always get accurate information and there are more chances of error. For instance: Kleenex tissue manufacturing company does a survey and approaches directly to customers regarding their demand for toilet tissue. This is commonly said as Business to customers (B2C). This effect can also said as “Bull Weep Effect”
Thirdly, the company gets demand for finished goods and sometimes they do not get any demand. For instance: comfy tissue gets demand for 50 tissue boxes in a day and then there is long gap without any demand and again it gets demand for 100 tissue boxes and again no demand and furthermore it gets demand of 20 tissue boxes. This complex pattern of demand can also be known as stochastic demand. This kind of problem company faces when production is not fully flexible and it is more of specialized. 100
Sometimes companies use Aggregation in forecasting. Aggregation of markets would be easier to forecast for a company about demand of their finished goods. For instance: Kleenex supplies toilet tissue paper worldwide. So they aggregate the market of Europe which includes England, Germany, and France and make an overall demand forecast of toilet tissue paper. The biggest disadvantage of aggregation is company loose information. Furthermore, it can be argued that toilet tissue paper neither face bull weep effect nor stochastic demand. The reason behind this is on the basis of past couple of year’s data and the increasing demand for tissue paper in future is forecasted to be increase by 4.9%. Toilet tissue paper manufacturing company can face seasonality demand. It means there is a stage in whole year when the demand comes down. In accordance with toilet tissue paper it can be said that the demand declines when there is vacation. The reason is clear that when people are away from their home the demand for toilet tissue paper comes down. For instance: The below consumption graph of North America clearly shows seasonality demand when people are at home and away from home.
“By Brad Kalil, Director of Tissue, RISI”
The main question here arises that “which method is best for forecasting?” There are two models through which forecast can be done. One is time series model and another is casual model. Casual method uses mathematical technique like regression analysis. In accordance to this paper and above given past information about consumption of toilet tissue paper, it can be said that time series model is best suitable for forecasting. This is because time series model forecast is based on past value and assumes the factors influence the past, present and future sales of the toilet tissue paper will continue.
Inventory depends on both demand and supply. These two should be integrated to avoid any consequences of running out of stock. Inventory management is also an important function in producing finished goods. Toilet tissue paper manufacturing industry has three simple stages to make finished product. Collection: semi finished jumbo rolls are stored.
Cutting: jumbo rolls are cut into small toilet tissue paper roll. Distribution/Inventory: packed for distribution or stored as inventory. Inventories can reduce overall cost: In toilet tissue manufacturing industry holding down large inventories of semi finished jumbo rolls can actually save money in finished goods. This clearly suggest that when you buy raw materials in bulk the cost benefit is obvious and when the demand of toilet tissue paper is high (as forecasted previously) the overall cost of finished goods get low. Toilet tissue paper industry has many competitors in the market and by keeping Inventory helps the company when forecast get wrong. Again, it can be said that not always inventory are beneficial but it helps you to make customer satisfy by giving the product whenever they demand.
Marketing and operations these are the two functions which are always integrated. Marketing function influence the manufacturing process design. Marketing team also forecast about the market condition and what customers demand they forward their demand to operations management. Tissue paper industry always focuses on photographic campaign. Most of the advertising campaign of tissue paper is regarding wellbeing. Eventually these days advertising has become more symbolic and less functional. For instance: Renova toilet tissue paper brand had their advertising campaign in 2005, which focused on love and compassion rather than focussing on product. This can be challenging for the marketing team but sometime it can come reverse to operations with no demand and filling high inventories.
This paper discusses about influence of different function over process design. As, a product toilet tissue paper production needs procurement management at a primary level. Procurement management is the process which an industry uses to purchase economic resources and business inputs from vendors and suppliers. Looking forward in context with toilet tissue paper production procurement process helps them to negotiate prices and help them to get best quality resources for production process. SME generally do not have any department dedicated to procurement. Procurement management involves many responsibilities like land, labour, capital and so on. SUPPLY CHAIN MANAGEMENT
David Ingram says that “supply chain management is systematic approach to managing the distribution of goods from producers of raw materials, through manufacturer and eventually down to end users”. One of the main purposes of supply chain management is to keep record of raw materials and consistently arrive at production facility on time. Kleenex toilet tissue paper manufacturing has organised supply chain management from raw materials to end users. The main aim of Kleenex supply chain team is to provide best quality of toilet tissue paper to their customers without any bottlenecks and giving cost benefit. Furthermore, the best supply chain team of toilet tissue manufacturing industry need to be aware that they have right raw materials at the right time at reasonable price so that they can assemble it. Supply chain management team should be integrated and optimised and should be consistently in contact with the suppliers and the vendors so that they can make their product better. There are mainly four elements of supply chain management which every manufacturing industry keeps in track. They are: Demand Management
Process design and its management is one the key element in manufacturing a product. Typically design can be said as to conceive the looks, arrangement and working before it is created. The initial element of process design is to know the process objectives. These objectives can be known by positioning the process by it volume and variety characteristics. The main point of doing process design is to make sure that performance of the process is appropriate for whatever has to be achieved. The reaction time of the process should be quick and should be designed in such a way that it gives fast output. It will also minimise the lead time between what customer ordered and delivered to them. The above context showed the meaning and objectives of process design, but the person who will manage the actual production process is known as operations manager. The role of operations manager is to keep the process system simple and balanced. The aim of operations is to deliver, maintain and develop the Brand.
TOILET TISSUE PAPER PROCESS
The process design of toilet tissue paper manufacturing industry is simple and flexible. The most important objective of process design is to be standardized. The process design of toilet tissue paper is standardized because the process does the work in a same way at every sub system. The more complications in process design make the process less standardized. Toilet tissue paper has basic process of production with three key elements which is: Input
Toilet tissue paper has simple and flexible assembling process. This type of system and sub system makes the job easy for the operations manager to find out any bottlenecks occurs in the system. The assembling diagram can give brief idea about the different steps taking place in production process of toilet tissue paper. ACTUAL PRODUCTION PROCESS
(TESCO) (ASDA) (ALDI) Toilet tissue paper production process is standardized and simple. The average time for producing 80 toilet tissue rolls is one minute. 1 toilet tissue paper roll has 100 sheets on it. The detailed production process is explained below: Input: the initial part of the production is inventory of raw materials form the vendors and suppliers. This includes jumbo rolls of tissue, plastic for packaging, cardboard rolls for toilet tissue and so on. This is the part from where supply management team starts acting till end users (retailers).
Processing: the main part of the production is processing. This is the place where operations manager has vital role to be played. Jumbo rolls of tissue paper are kept on the machine for embossing or scenting, again scenting depends on the demand. Embossing is more common as maximum number of customers demand embossing on toilet tissue paper. Furthermore, the tissue paper is reeled on the cardboard rolls which have 100 sheets of tissue paper on it. Then the rolls are cut into required size of toilet tissue paper roll. These rolls are further send for packaging (mostly plastic wrapping). Output/Distribution: lastly, the finished good are stored as inventory (again depends on the demand) or they are distributed to the retailers. The retailers include Tesco, Asda, Aldi and so on.
Marketing team is responsible for getting demand from the retailers and sometimes they directly go to the customers for demand forecasting. After the finished goods sent to the retailers/customers they are also responsible for getting feedback from them so that operations management team and others can react on it for customer satisfaction.
PROCESS TYPES: MANUFACTURING
“Lecture Notes (process layout ppt.)”
I. PROJECT: Project process is an input to all other process. In this type of process the flexibility goes up and even specialization is the key element. Cost per Unit (COU) is also high. For instance: construction, mining, refining and so on. II. JOBBING: Jobbing process particularly relates with specialization production. It has smaller scale of projects and more of repetition. For instance: drills, specialized tools, specialized cars and so on. III. BATCH: Batch process recites in the middle of the process diagram. There are two types of batch they are: low Volume Batch (goes more toward jobbing) and High Volume Batch (goes more toward mass). This process type is most flexible and most complex to manage. Size is one parameter and repetition is another parameter for batch. IV. MASS: Everything which we look around is mass production. It is easy to forecast and flexible. For instance: cloths, cars, milk, and many more. V. Continuous: continuous process has massive assets associated with fixed cost. It is not flexible and not even standardized. The product characteristics dictate on the particular forecast. For instance: Gas, Oil, Electricity, Tap water and so on.
“Which process type suites best in toilet tissue paper manufacturing?” Toilet tissue paper production has Mass process type, sometimes high volume batch is applicable but again it depends on the demand. The main reason behind the mass process type is because toilet tissue paper manufacturing produces in high volume and narrow variety. The production of toilet tissue paper goes on because the demand forecasted is more in future and the way people started travelling around the world and they take care of hygiene makes clear that the production would be in mass. Although sometimes toilet tissue paper can come in high volume batch because demand of specialisation in toilet tissue paper, but again it depends on demand from the customer. For instance: a customer wants special type of embossed design on the toilet tissue paper. Here the volume would be high and the variety demanded is little bit more so it is not exactly batch but it can be said as high volume batch. Toilet tissue paper production lies in mass process type and this can be clearly shown through Product Process Matrix.
“Lecture notes (process layout ppt.)”
FACTORS INFLUENCE PROCESS DESIGN
There are various factors which influence process design of manufacturing industry. Some of them are explained below: CAPITAL INVESTMENT: The manufacturing process has the combination of equipment and human resources. The modern technologies have taken place and it gives wide variety of option available like automated operations which need more capital. Most of the modern technologies need high capital and therefore there is a high risk, in case of sales volume gets lower than expected. FLEXIBILITY: A manufacturing process is more flexible when human resource and equipment are able to manage wide variety of products, functions and output, at reasonable cost and time. Flexibility in production process is the best way to get customer satisfaction and reduces bottle necks. OUTSOURCING: when the company has the necessary skills to carry out process at lower cost and good quality, it can generate savings through outsourcing. The degree of outsourcing is related to number of processes at the supply chain that carried out by the own company.
NATURE OF DEMAND: The production process must have the necessary capacity to produce the products which customer demands and company is going to offer. The seasonality, tendency and other characteristics of demand is going to affect the capacity required overtime. Though final selection will be affected by the estimated demand. Pricing also influence the process design, as the product price would be high compared to competitors then the customer tend to buy less products and vice versa. QUALITY OF PRODUCT: the quality of the product also plays an important role in current business environment. The quality of product will directly reflect the selection of process. CUSTOMER PARTICIPATION: the after sales service provided requires higher contact with the customer, generally leads to less investment and more flexibility. Moreover presence of the customer normally affects the efficiency of the process which increases cost.
OPERATIONAL PERFORMANCE OBJECTIVES
There are five operational performance objectives which may influence decision making with process design and layouts. For instance: As a production manager of toilet tissue paper manufacturing industry, what kind of things are likely to be performed in order to satisfy customer and contribute to competitiveness? FLEXIBILITY
COST: The manager always wants to give products in cheap price to the customer and the goods produced at a particular cost enable to cope up with the market appropriately. If this is managed successfully then the customer gets cost advantage. Cost is the outcome of all above four parameters (FDSQ). QUALITY: As a manger, one would not like to make any mistakes, things should go right and want to satisfy customer by providing error- free goods which are fit for their purpose. This is quality advantage given to the customer. Operation manager regards quality as the important objective. The quality of the product is interacted with the above three parameters (FDS). SPEED: Production manager want the things to go fast and expects minimisation of time between the customer demand for the goods and receiving them in full. This increases the availability of goods and gives speed advantage to the customer. Speed and dependability goes hand in hand. The manager should be dependable, sometimes speed is not that much important. DEPENDIBILITY: customer satisfaction is the key element of any company.
Operations manager wants the process to go on time so that delivery promises can be fulfilled. If operations can manage this then they are giving dependability advantage to the customer. For instance: Kleenex has 30 min of window opened for them to supply tissue paper to Tesco distribution centre. FLEXIBILITY: the manager would want to change whatever is adapted in operations activity to cope up with unwanted circumstances and give customer an individual treatment. If the operation manager manages these circumstances of the customers far enough and fast enough then they are giving flexibility advantage to the customer.
In context with any industry whether it is manufacturing/service Trade-offs indicates: “what do we gain and what do we lose”. Ferdows, K. & De Meyer, A., says that “The conventional trade-off model states that unless there is some slack in the system, improving any one of the four basic manufacturing capabilities – Quality, Dependability, Speed and Cost – must necessarily be at the expense of one or more of the other three. In the short term this seems to be the case”.
Professor Nigel Slack (of Warwick Business School) has pointed out that “there is an alternative to disturbing the balance and that is to raise the fulcrum or balance point, thus (in the example above) simultaneously reducing cost and increasing speed. In this example the fulcrum would be either Quality or Dependability”.
Lastly, it can be concluded that toilet tissue paper production recites in mass process type and high volume batch, but again it all depends on the demand forecasted. Therefore there are number of trade offs in the manufacturing industry which gives the operational performance objectives to be influenced in making decision associated with the process design and its layout. The overall paper concludes that the toilet tissue paper has high volume of production with standardization. The demand forecasted is flexible and easy to find out. All the other functions in toilet tissue paper manufacturing industry are integrated and help them to achieve the customer