Process Analysis of the Akij Food and Beverage Industry:

The food and beverage industry is a prominent and emerging industry in Bangladesh. Among
them Akij food and beverage industry is now well-established and well-known for providing
quality products in exchange for affordable prices. This report paper includes information about
the Akij food and beverage industry who have a wide range of products including Snacks,
mineral water, Cold drinks, energy drinks, and juice. Having a vast type of products and product
line Akij has maintained a strong network all over the country. Currently, they are expanding
their food and beverages in more than 25 nations worldwide. Furthermore, Their strong HR
activities, marketing, and high-quality management give them a boost in their business.

(This Diagram collected from the A.C Nielsen company)

According to a prominent business analytics company the A.C Nielsen company claimed that
under 100% of production capacity, Akij produces 41% of its production is all about Beverage
items including cola flavors, energy drinks, soft drinks, and so on. 32% of their production is
combined with fruit juice and some energy drinks. Another 26% of its production is under pure
drinking water. This company’s products are 100% made in Bangladesh. Except for the
equipment raw materials, bottles, packaging, and other ingredients are collected throughout
Bangladesh and manufactured in their factory. In recent times, Akij has taken part in the milk
industry. Likewise, they also collect milk from milk producers in rural-urban areas by their
distribution channels. This made them a pure Bangladeshi brand which enforces them to product
efficiency, competitive pricing along high quality. Thus, the industry has been growing
continuously over the last few years. According to a report from the Daily Bangladesh, Akij has
created a market impact and dominates the beverage industry having around 39% market share
on its own. It is only because of their strong distribution, marketing, competitive pricing, and
high-quality products provided to the market. Their production process is simple. For example,
they collect raw materials and ingredients from the market and the rural part of Bangladesh, then
bring them back to their factory and start processing them. After processing they packaged the
food items and stored them. Lastly, from the inventory they distribute their products throughout
the country by their distribution channels and distributors.

For the Akij food and beverage industry the workflow could be;
Performance metrics:
The performance metrics can be measured by three dimensions, for example, strategic level,
tactical level, and operational level. Each of the process are written below:

Quantitative and qualitative indicators are both part of the performance monitoring methodology
used in supply chain management (SCM). Whereas qualitative measurements comprise trust,
quality, flexibility, visibility, and inventiveness, quantitative metrics deal with cost and resource
use.

Many factors, including distribution, manufacturing, inventory, warehousing, incentives,

subsidies, intangibles, overheads, and long-term cost sensitivity, may be used to evaluate cost, a
quantitative metric. The other quantitative component is resource utilization, which is measuring
excesses or deficits over a certain period of time by analyzing variables such as labor, machine
capacity, and energy use.

As a result of optimization efforts, organizations may be able to reduce staff and expenses while
also performing better. Quality, flexibility, visibility, trust, and innovativeness are crucial
measures when it comes to the qualitative aspects of the field. Customer response time, lead
time, on-time delivery, fill rate, stock-out likelihood, and accuracy are examples of time-based
qualitative metrics.

Of all the metrics, lead-time is particularly important as it shows how long a product takes to
create and process to the point of completion. Improvement, output, process, and input categories
are all covered by flexibility metrics. Material handling, routing, and operational flexibility are
examples of process flexibility, whereas labor and machine flexibility evaluates input.

While delivery flexibility involves flexibility for new products, expansion, and modifications,
output flexibility covers volume and mix adaptability. Timeliness and accuracy are critical
components of visibility; delivery consistency is measured by trust; and new product launches
and technological innovations are hallmarks of innovativeness.
Customer satisfaction, responsiveness, flexibility, supplier performance, and cost are all
summarized by SCM performance measures, which are divided into qualitative and quantitative
categories. The resources, output, and flexibility metric kinds are distinguished by this paradigm.
Effective resource management is essential for profitability. Resource measurements focus on
reducing the amount of resources used and include metrics such as total cost of resources used,
distribution, production, inventory costs, and return on investment (ROI).

To discourage consumers from looking for alternatives, output measurements track customer
responsiveness, product quality, quantity, on-time deliveries, sales, earnings, and complaint
resolutions. High customer service levels are the goal.

Flexibility measurements cover volume, distribution, mix, and new product flexibility to adapt to
changing situations. Effective performance evaluation and goal accomplishment are ensured by
matching selected performance metrics with corporate strategic goals.

The food and beverage business is prone to pain spots, bottlenecks, and inefficiencies at many
phases of the supply chain, production process, distribution, and customer service. These are a
few typical locations where these problems might occur:

Supply Chain Management: Fragmented Supply Chains: Having several raw material suppliers
might make coordination difficult and result in uneven quality.
Supplier Reliability: Production process delays and interruptions can result from relying on
untrustworthy suppliers.
Inventory management: Inaccurate demand planning or poor forecasts can lead to overstocking
or stockouts, which can drive up expenses or miss out on sales opportunities.

Manufacturing Process: Equipment Failure: Inadequate maintenance practices or aging

equipment can lead to frequent malfunctions and delays in production.
Inefficient Production Layout: Longer cycle times, congestion, and inefficiencies can result from
badly planned production lines.
Quality Control: Rework, waste, and disgruntled customers can arise from inconsistent product
quality brought on by insufficient quality control procedures.

Logistics & Distribution: Transportation Delays: Problems like gridlock, a lack of drivers, or
inefficient routes can cause delays in the delivery of goods.
Temperature Control: It can be difficult to preserve perishable goods throughout transit, which
can result in spoiling and waste.
Last-Mile Delivery: Ineffective last-mile delivery operations may lead to increased expenses,
complaints from customers, and missed delivery windows.

client service: Order accuracy: Inaccuracies in the processing or fulfillment of orders may result
in a disgruntled client base and a rise in returns or refunds.
Communication breakdown: Misunderstandings or lost chances for feedback can arise from
ineffective lines of communication between the firm and its consumers.
Product Complaint Handling: Poor processes for responding to consumer concerns or recalls of
products can harm a company's reputation and erode consumer loyalty.

Regulation Observance: Food Safety Laws: Food safety laws must be followed or else there may
be penalties, legal ramifications, and reputational harm to a company.
Labeling and Packaging Compliance: Mistakes or discrepancies in labeling and packaging may
result in penalties from the authorities and issues with consumer safety.

It takes a multifaceted strategy including supply chain integration, technology adoption, process
optimization, and continuous improvement activities to address these problems, bottlenecks, and
inefficiencies. Food and beverage businesses may increase customer happiness, cut expenses,
and improve operational efficiency by recognizing and resolving these problems.

1.​ It would be difficult to find company-specific data, case studies, and current industry
publications in the public domain while looking up specific best practices and
benchmarks for the Akij Food and Beverage Industry. Nonetheless, Akij Food and
 Beverage Industry may want to take into consideration a few industry-wide best practices
and benchmarks for enhancement in their selected process area.

2.​ Quality Management Systems (QMS): Enforcing consistent product quality and
regulatory compliance can be facilitated by using strong QMS standards like ISO 9001. It
is possible to identify opportunities for improvement by comparing your QMS
certifications and quality performance indicators against those of the industry's top
performers.

3.​ Inventory Optimization: Using supply chain optimization techniques, such as demand
forecasting, inventory optimization, and just-in-time (JIT) inventory management, may
assist cut down on stock outs, lower the cost of keeping goods on hand, and increase the
overall effectiveness of the supply chain. Important supply chain indicators, such as order
fulfillment rates and inventory turnover ratios, can be benchmarked against rivals or
industry standards to identify areas that require improvement.

4.​ Sustainability Initiatives: Brand reputation may be improved and consumers who care
about the environment can be won over by using sustainable practices in sourcing,
production, and packaging. Improvement benchmarks may be obtained by comparing
oneself to industry leaders in terms of sustainability certifications, carbon footprint
reduction goals, and waste reduction programs.

5.​ Product innovation and research and development (R&D): R&D expenditures can
stimulate market growth and competitiveness by generating new product ideas or
enhancing current ones. Akij Food and Beverage sector can benchmark its innovation
efforts by comparing its performance to those of its counterparts in the sector with regard
to new product launches, time-to-market, and R&D investment as a percentage of sales.

6.​ Streamlining processes and cutting costs of production are possible with the application
of lean manufacturing concepts, such as waste reduction, continuous improvement, and
 value stream mapping. One effective way to find areas for efficiency improvement is to
benchmark against the top performers in the industry in terms of critical operational
indicators like labor productivity, overtime, and equipment downtime.

7.​ Customer Service Excellence: Brand loyalty and competitive advantage may be increased
by placing a high priority on customer satisfaction through prompt delivery, attentive
customer service, and high-quality products. Customer service improvement
opportunities may be identified by benchmarking against industry leaders in terms of
order fulfillment accuracy, customer satisfaction scores, and response times to customer
questions.

Similar successful case studies that help Akij to be a market leader:

Akij Food and Beverage Industry may find areas for development and put plans into place to
improve their performance and competitiveness in the market by doing research and
benchmarking against industry best practices and benchmarks in these areas.

It's possible that specific case studies or success stories of the improvement initiatives
undertaken by Akij Food and Beverage Industry are not easily accessible. On the other hand,
case studies or success stories from the food and beverage sector that have made comparable
advancements might serve as a source of inspiration and knowledge. Here are a few instances:
Coca-Cola has put in place a number of programs to improve operational effectiveness and
streamline its supply chain. For instance, they have made investments in cutting-edge
technological solutions for inventory control and demand forecasting, which have allowed them
to decrease stockouts and enhance supply chain efficiency overall.
Coca-Cola's use of technology to optimize supply chain operations and enhance inventory
management procedures is something that the Akij Food and Beverage Industry should take note
of. Similar technological solutions might be used by Akij to streamline their supply chain and cut
expenses.
When it comes to food and beverage industry sustainability measures, Nestlé has been a leader.
They have put policies in place to cut back on waste, use less water, and obtain sustainable
foods.
The Akij Food and Beverage Industry could adopt comparable programs to lessen their
environmental impact, taking inspiration from Nestlé's sustainability efforts. This might involve
making efforts to procure sustainable raw materials, cut down on packaging waste, and use less
water during production procedures.

In order to propel the food and beverage sector's growth, Unilever has concentrated on R&D and
product innovation. They have made investments in R&D to enhance the quality and nutrition of
their products and have launched new ones in response to shifting consumer demands.

To set itself apart in the market, Akij Food and Beverage Industry should follow Unilever's lead
and prioritize R&D and product innovation. Putting money into research and development to
create new goods or enhance current ones might help Akij remain competitive and satisfy
changing customer needs.

Lean manufacturing techniques have been applied by PepsiCo to boost productivity and cut
expenses in their production operations. To increase efficiency, they have simplified processes,
improved manufacturing workflows, and reduced waste.
PepsiCo's lean manufacturing initiatives offer valuable insights for the Akij Food and Beverage
Industry, which might adopt comparable methods to enhance its operational efficiency. Reducing
expenses and enhancing productivity might be achieved by Akij through the identification and
removal of waste in manufacturing processes, workflow optimization, and the application of
continuous improvement techniques.

Even if the Akij Food and Beverage Industry may not be specifically mentioned in these case
studies, they nonetheless provide insightful analysis and motivation for putting comparable
enhancements into practice in areas like product innovation, supply chain optimization,
sustainability programs, and operational efficiency. Akij Food and The Beverage Industry may
promote positive change and accomplish their development objectives by examining these
success stories and customizing pertinent tactics to their environment.

Solution Development and Implementation:

a. A detailed plan for implementing

Prioritize Improvement Opportunities A detailed plan for implementing

Inventory Optimization: ●​ Engage a data analytics firm to create

To reduce stockout issues and the cost of a demand prediction approach.
storage, put demand forecasting and the JIT ●​ Make use of warehouse management
(just-in-time) inventory management system. systems so that the warehouse space
gets managed properly and the
inventory will be under control.
●​ Work with suppliers for efforts that
make deliveries less costly and much
quicker, and have an order delivered
on time.

Quality Management Systems (QMS): ●​ Conduct employee training right on

To ensure product quality, and consistency job schedules about the use of QMS
and ensure legal compliance enforce ISO Procedures, and quality control
9001 quality control strictly. instruments.
●​ Spending on both quality control
apparatus and automation is
imperative to cut off from the testing
processes.
●​ Develop a habit of having the system
reviewed and revised periodically to
be in a position to discover and erase
quality control imperfections.
 Sustainability Initiatives: ●​ Measure the greenhouse gas & waste
To mitigate negative environmental emissions, water consumption,
consequences and ensure a positive brand renewable energy usage, and
image, introduce eco-friendly procedures, community impacts (e.g., traffic,
production, and packaging. noise, etc.).
●​ Considering the creation of a set of
objectives for decreasing water and
energy consumption as well as waste
generation.
●​ Analyze the packaging materials that
we wrap our products in, including the
recycled grades and the eco-friendly
ones.

b. Necessary resources, budget, and timeline for implementation.

Resources:
1.​ Inventory Optimization: Data analysts who have great expertise in these matters, as
well as other types of specialists such as warehouse management system wizards, and
logistics gurus amongst others.
2.​ Quality Management Systems (QMS): People in positions of quality control, advocacy,
auditors, and accountability.
3.​ Sustainability Initiatives: Human resources encompasses professionals - environmental
engineers, packaging specialists, and waste management consultants.

Budget:
Show the financial returns as a result of each undertaking. One can argue that this may entail
cutting costs through decreased waste, efficient rise, and even additional brand value.

Timeline:
Set up a practical timetable for each activity and monitor how things are running against the
given factors including level of difficulty and resource demands.
1.​ Short-term (3-6 months): Develop a learning and demonstration class for one initiation
(e.g., QMS in one production line).
2.​ Mid-term (6-12 months): Scale up existing successful pilot and projects, and have them
rolled out across the organization in different departments.
3.​ Long-term (12 months+): Continuous evaluation, monitoring of, and adjusting of
applied methods is key.

c. Implementation strategy:

Communication and Change Management:

Present the goals of the project to increase the level of understanding and the reason for the
importance of such alterations to all management staff. By doing this not only do employees
have ownership but also, and more importantly don't resist the change.

Seek Expert Advice:

Think of working with external consultants who are focused on improving your supply chains,
quality management, or sustainability areas to bring more professionalism into the current state.

Benchmarking:
Systematically evaluate the level of performance against the representatives of the industry to
discover ways to improve quality.

Continuous Improvement:
Build a culture of unceasing improvement within the organization where the personnel are
allowed to look for and tell management how to better the systems that the organization has in
place.

Risk Management:
Anticipate potential contingencies such as delays in resource acquisition, change resistance, or
the experienced unexpected technical issues, and prepare the response plans.

Meghoboty Islam(20304005)

Feasibility:

We all know that Akij Food and Beverage LTD. Is currently one of the leading beverage
companies of Bangladesh. They own almost 25% of the Coke market. Also, in these recent years
they have made a good amount of profit. Firstly, as they are using local resources they won’t face
any problem regarding scarcity of raw materials. Additionally, they have the opportunity to
collect them at a lower cost. So, they can use any ideas regarding resource collection that will be
fine by them. Moreover, in the employee empowerment sector, the company has already started
working on their employee development. They have a different type of incentives based on
company’s profits and employee’s performance. They keep a certain amount for training as they
have a motivation to make their employees adapt to new technologies (Sraboni, 2022). Also they
have a lower turnover rate and their employees are happy with their HR policies. (Course Hero,
2022). However, Akij Food and Beverage LTD has stepped in the advanced technological world.
As they have huge demand for their juice and beverage, they are using technology for packaging
and filling juice. SO, it can be said that they have enough work who have expertise in using
technology. SO it would be easy for the company to implant more advanced technology in
production. But they need to think about their costing as technology requires more finance. In
this case, if they want to implant technological sight, they need to think critically and make a
plan on which parts of production will need more technological advancement or which part will
be more benefited. But they need to focus on launching new products as there is a high level of
competitors in this industry. Also, producing good quality products in this short time can be very
difficult for the company. Also, there can be a financial crisis due to this heavy pressure of
production. So, in this situation, implementing the redesigning process might cause difficulty in
the company. But if they can manage their time and resources, in the long run they will be able to
redesign the process using new ideas.
Impact on key performance indicator (KPI):

If the company can implement those ideas mentioned above they will able to reduce their cost
and reduce usage of extra spaces for inventory, reduce production time. Also they will able to
improve their customer relationship by serving them with quality product on their demand.
Besides, using JIT process, the company will able to faster their production cycle. Lean
manufacturing will help the company to reduce wastage of production, also will decrease the
probability of repeating production as it helps to identify and deduct waste from the production.
It will eventually reduce their production cost. If the company can utilize the automated
technology in their production, they will be able to reduce the number of human resources
rathuse the robot. It will reduce labor cost, also reduce the production time as robot can perform
faster than human. Moreover, by using a quality control system, the company will be able to
produce good quality products that will help to create reliability among customers which will
eventually improve customer relationships. Continuous training will increase the flexibility of
the company to adapt to new trends.

Alignment with goal:

Those ideas mentioned above will help the company to achieve its mission and vision more
smoothly. The vision of Akij Food and Beverage LTD is to become the best renowned beverage
company in Bangladesh that will be identify by the dedication of excellence. And, the mission of
the company is to achieve long term growth and profitability through innovation and capability.
To achieve this goal, companies need to minimize their cost, expand their business and improve
their quality. The company can utilize some new improvement projects. They will able to
produce goods in a more effective and efficiently manner that will ultimately increase their
profit. Improvement plans will eventually help the shareholder and decision makers to expand
the company and make it more sustainable.

So, we can say that these three things will help us to choose improvement ideas that the company
can implement to achieve its goal.

(b):
Based on evaluation criteria provided above, here are some promising improvement idea that can
be used in future,

●​ Lean manufacturing: By adapting this improvement project, the company will be able
to improve and sustain their key operations like productivity, waste management, cost
reduction, production cycle and so on.
●​ Advance analytics: It will help the organization to achieve its goal in a short time. By
fracturing the company will be able to conduct its work more effectively and in a time
reducing manner and will less fault which will help the company to attain its goal.
●​ Cross functional collaboration: It will help to create good relationships among
employees. When one department’s employee will contact others they will be able to
meet and greet one another which will increase cooperation among them that will
improve the productivity of the company in a big picture.
●​ Continuous training and development: IT will make the employees up to date and
flexible. They will be able to adapt to any new trend in the market and can compete with
the new entrance.

Bibliography

Course Hero. (2022, April 13). Retrieved from

https://www.coursehero.com/file/p7qcan0f/Answer-from-Akij-Food-Beverage-Ltd-The-e
mployees-of-Akij-Food-Beverage-Ltd-are/

Sraboni, J. N. (2022). SR AKIJ - Compensation practice of Akij food and Beverage.

ASSESSMENT OF COMPENSATION MANAGEMENT PRACTICES IN AKIJ FOOD &
BEVERAGE LIMITED.