Logistic and Supply Chain Management Assignment

Running head: Logistic and Supply Chain Management
Logistic and Supply Chain Management

Logistic and Supply Chain Management
1
Executive Summary
Supply Chain Management refers to the management of flow of products and services within an
organization. It comprises of mobilization and procurement of raw materials, storage of work-in-
progress inventory and finished goods from point of origin and point of consumption.
Lean Manufacturing is the systematic method for minimization the waste arising from the
process of Supply Chain Management. The motive of lean manufacturing is that it reduces the
waste and adds value without sacrificing the productivity.
The above mentioned principles would be evaluated in the context of Bega Cheese Limited, an
Australian Dairy Company based in Bega. The company deals in cheese and dairy products. The
production design of the company consists of procurement of raw materials such as purchase of
feed, production of fresh milk and cheese and processing and distribution of the products in the
market.
So, in this report, the analysis of the principles of supply chain and lean management of Bega
Cheese Limited would be conducted and assessed .Also, the theory of lean and process
management would be assessed in the light of literature review. The above mentioned principles
would be applied to eliminate the wastage processes so that the company can become cost
effective in its operations.

Logistic and Supply Chain Management
2
Contents
Executive Summary.......................................................................................................... 1
Introduction.................................................................................................................... 3
Literature Review............................................................................................................ 3
Main Factors influencing the Manufacturing Process Design in Bega Cheese Limited........................4
Elimination of Wasteful Processes for Cost Reduction by Applying Lean Manufacturing Principles......9
Conclusion................................................................................................................... 12
References............................................................................................................... 13

Logistic and Supply Chain Management
3
Introduction
Supply Chain Management is an important part of the business and is crucial for its success and
customer’s satisfaction. Lean Manufacturing principles are the essential elements in the supply
chain. With the help of these principles companies are able to create high valued products with
the help of fewer resources of time, materials and with fewer errors. So, these principles would
be applied to Bega Cheese Limited which is a wholly owned and operated Australian cheese and
dairy company. It is headquartered at Bega Valley in New South Wales. It was established in
1899. With the help of its product design and manufacturing processes, it is able to produce and
distribute its products to consumers in more than fifty countries around the world including
Australia (Business Chief, 2018).
The manufacturing design and production of Bega Cheese Limited consists of procurement of
pastures in the form of raw material. The company produces fresh dairy products with the help of
Artificial Insemination. The last stage of supply chain is the processing and distribution of dairy
products through subcontracted marketing (PWC, 2011).
So, in this report, the product design of Bega Cheese Limited would be analyzed along with the
literature review of the theories of lean manufacturing and process management. The above
mentioned principles would be implemented to eliminate wastages from the operations of the
company to make it cost effective.
Literature Review
According to Adriana and Ioana (2014) process management refers to alignment of the processes
with the goals and objectives of the organization. It also indicates the application of the process
design and establishment of the process measurement systems which align with the goals of the
organization. It also comprises of various automated systems including work flow and ERP
systems introduced to make the processes easier and less dependable on the human resources.
Thus in Bega Cheese there are three stages of product design and manufacturing viz. pre-
production, production and processing and distribution. The pre-production stage refers to the
procurement of the pastures or feed for the cows which consists of 30% of the total expenditure.
The dairy industry is focused on the technology of Artificial Insemination (AI). It is observed