Scientex Packaging Berhad

Introduction

Scientex Packaging Berhad (SciPack) was formerly known as Woventex Corporation Berhad (WCB). It is one of the largest producers of stretch films in Asia. The company also had achieved certification of 9002, 9001, and more recently 14001 which shows that Scipack are environmental conscious. The company was successfully listed on Second Board of the Kuala Lumpur Stock Exchange (now known as Bursa Malaysia Securities Berhad) on 18 December 1996

Scipack is a company that strives to maintain and enhance the management with the objective of protecting the shareholders’ interest and increasing the long term shareholders' value. Therefore, four Board Committees namely Audit committee, Nomination Committee, Remuneration Committee and Executives’ Share Option Scheme (ESOS) Committee had established to responsible for overall strategic plans, business performance, risk management, internal control, compliance and corporate governance issues.

SciPack manufactures has a wide range of industrial packaging products and solutions for both the domestic and export markets. The product can be group under four broad categories: packaging for logistics purposes, general purpose packaging, packaging for bulk handling and Specialty applications. Products of SciPack are polypropylene (PP) and polyethylene (PE) woven and laminated bags; Flexible Intermediate Bulk Containers or better known as FIBC bulk bags, PP strapping bands and corrugated carton boxes.

Scientex Packaging Film’s plants have been ISO 9001:2000 certified since 2002 and inherent to quality control is the utilization of the Highlight testing equipment to measure film quality and performance. Superceding traditional tensile testing methods, the Highlight testing equipment uses full width rolls to stimulate performance similar pre-stretching mechanisms and rotating speeds of commercial wrapping machines in market place.

Analysis and Solution

Firstly, order will enter to SciPack specified counter. Order will recheck by the staff by repeating the order’s list. Second, the orders will be categorized. The product can be group under four broad categories: packaging for logistics purposes, general purpose packaging, packaging for bulk handling and specialty applications. In the second process, it is actually a potential fail point here. It will easily make people confused when they categorize different products in specific category. As a solution, the company has to set up four different specific counters to receive calls. This alternative can ensure that the product will not categorize in the wrong ways but actually will save more times and increase the employee productivity. Third, the products will send to specific inspections to ensure the quality consistency and provide value to meet customers expected. Scientex Packaging Film’s plants have been ISO 9001:2000 certified since 2002 and inherent to quality control is the utilization of the Highlight testing equipment to measure film quality and performance. Fourth, the products will be delivered after storing in warehouses. Products will deliver to its different states warehouses under the company. SciPack also operate in Shanghai, Vietnam, India and Japan. It is easy for products transportation. Fifth, the products will deliver to specific customers by different transportation. Finally, the customers that receive products must clear all payment on time.

Corporate Social Responsibility
SciPack is one of the company that focud on environmenal free packaging mnaterials. This is because company had achieved ISO certification of 9002, 9001, and more recently 14001 which showed that the company are environmental concious. Other than that, the company are strive of employee involvement. Trainings and seminars are provide to employee to increase productivity. Beside that, the company are concern about employee safety. The employees that involve in direct procesing are introduced to first aid to ensure that employee lives are safe when there unexpected accident occur. Finally, we can conclude that CSR can guide a company to be responsible to employee, environmental, society and others.

Kraft Industries Sdn. Bhd

Introduction

Kraft Industries Sdn. Bhd. is a member of Tan Eng Hong Group of companies. It was established on 29 th January 1983. But since January 1992, Kraft Industries Sdn. Bhd., is fully own by Tan Eng Hong Holding Sdn. Bhd. This is a small scale industry because only have about 50 workers. The principle activity of the company involves with manufacturer of corrugated fiber boxes, colour boxes and other packaging needs. Since the brought over by Tan Eng Hong Holding Sdn. Bhd., Kraft Industries Sdn. Bhd. has been under the managerial ship of the present manager Mr Tan Kin Seng. Under the management of Mr Tan, the company has grown leap and bounce. It is the company’s mission to be a major packaging company in the near future.

Products that produce by Kraft Industry are Flexo printed diecut box E-Flute, colour box, pizza box, flexo printed diecut box, gift box and offset printed die cut box and so on. The main materials using in produce the product is cardboard so we can say that kraft industry is applying CSR because all these packaging materials are environmentally-free. All these materials are reusable and recyclable.

Analysis
After access to Kraft Industry website, we find out that almost the whole production lines are done by machine. To analysis this industry more detail, we will use process map to diagnosis the problem that may be hide behind the process. The aims of process map are to increase capability and reduce cost.

When order in, Kraft worker will start the production. Worker will design the plate for the product. Then, worker will use the Flexo Printing Machine to print out the design of the product. After that the design will insert into the Longway Printing Machine & Gluing Machine. This machine will print the design of the product on the surface of a flat cardboard. Then worker will put the cardboard into Diecut Machine. This machine will draw out the product size and shape from the flat cardboards that already have the design. Semi Auto Cleanser & Scorrer machine will cut out the product shape according to the line that has been draw by diecut machine. For the gift box, the process has some different from other product. After go through the Flexo Printing Machine, gift box will go to Gift Box Machines. This is because the material for gift box is different from normal packaging boxes. Complete flat boxes will store in storage.

after analysis the process map, we find out that Kraft Industry have waiting time and inventory waste. Waiting time occur when the product need to wait for the machine to finish the previous product first because Kraft Industry only have one equipment to produce certain process. When order is waiting, no value being added but financial costs are mounting. Indeed, because Kraft Inc. provides many types of packaging box , so the process of changing equipments from producing one product to producing another will increase the lead time of production and this may be will cause lateness.

On the other hands, because Kraft Industry have been had fixed customer to serve so they will produce more products to keep in warehouse to face sudden increase demand. This will cause inventory waste. This is because when Kraft Inc. keep inventory, the cost of capacity and labor will increase. Kraft Inc. need to hire labor to move the inventory, pay for the rent, and take the risk and cost of inventory damage before it is sold.

Solution
To help Kraft Inc. process become more efficient, and eliminate waste, we will suggest several suggestions.

Firstly, Kraft Inc. can apply the employee involvement concept in make decision to improve the process. This is because the detailed impact of decisions on customer interactions and specific processes must consider, and all this perspective only can be obtain from the employee who take part in those interaction and work in those processes. This kind of information is important in decision making and can not obtain from observation.

Secondly, Kraft Inc. can apply the matching production to demand concept. This mean Kraft Inc. will match the rate of production to the rate of demand at very small time increments. Under this concept, Kraft Inc. will operate in small-batch production and frequent deliveries. This concept only can be done if Kraft Inc. has a good communication with its customer and the customer also willing to apply this lean system. This concept will help Kraft Inc. reduce the inventory waste because its does not need to keep so many inventory in warehouse anymore.

Thirdly, Kraft Inc. needs to manage the job sequencing to reduce lateness of job. Since Kraft Inc. only has one set of equipment to produce the entire job, so it is a necessary to determine which job need to finish first. Kraft Inc. can using several method like first come first serve, earliest due date, shortest processing time and critical ratio to determine the queue.

Finally, it is a need for Kraft Inc. to determine the size of batch to reduce the changeover times. Capacity can be devoted to changeover (with little left for actual production) unless they made reductions in changeover time. This will affect the shortest production runs, smoothing out the flow of materials through the plant, and reducing inventory level.

Conclusion
As a conclusion, when Kraft Inc. want to improve its process quality, its need to collage the appropriate information and interpret it correctly to find out the problem and determines accurate solution. Kraft Inc. can choose to apply several lean techniques as long as they suitable with Kraft Inc. operation.

General Packaging Industries (GPI)

Introduction

General Packaging Industries (GPI) is producing household and catering products which started with the founder who immigrated to Ghana in West Africa in 1926. In the 1960s, Elias Abound founded a plant in Ghana for the production of aluminum cooking pots and pans. In 1974, the Abound family started an individual venture in Lebanon, with the creation of general metal processing company (GEMPCO). Until this day the company continues to produce a wide range of kitchen and household products. GPI is the leading Lebanese industry in the field of disposal packaging material for food use. GPI product line includes aluminum food containers, aluminum foil rolls, Nylon bags, plastic trays, sealable clear plastic containers and more.

GPI is a pioneer in the production of polypropylene sheets which are used in a wide range of disposable. Today, GPI remains the only manufacture of Aluminum foil containers in Lebanon. GPI manufactures Aluminum foil rolls and cling film rolls for domestic and catering used. The consumption of which is increasing day by day.

Production
GPI’s production department is equipped with automatic high-speed lines for customers’ rolls and semi-automatic machines for long meter age catering rolls. This department is also equipped with an embosser-sheeted for embossing, corrugating and sheeting foil for chocolate wrapping. GPI manufactures plastic cutlery, trays, cups, containers lids and more. The factory is equipped with a 5 extruder sheet line capable of manufacturing multi-layer with oxygen barrier. The capacity of the sheet line was increased to cover the needs of both GPI, as well as the local thermoforming companies. The injection molding department operates with more than 10 modern injection molding machines. The pressure forming department has different types of thermo and vacuum formers with series of dies for plastic products. Plastic cups, containers and lids are printed by 2 printers with 5 colors offset and UV drying features.

Analyze
After analyzed the production of this company, we found that GPI had used a product-oriented layout for their production line because they used automatic high-speed lines and semi-automatic machines to produce their products. This layout takes advantage in repetitive works. especially assembly line and provides efficiency speed and low cost per unit. Besides, it can produces in high volume which will meet customers’ demands. But, product-oriented layout will lead to boredom and dissatisfaction and lack of flexibility. The high-volume of manufacturing products will cause the inventory waste too when the inventory is over that which is necessary. This will increase the cost of capability and labor.

Conceptual view of a product-oriented layout

Solution
To solute these problems, we will find a few solution model to eliminate waste and add value to products. In order to eliminate waste, the solution that we suggest is using lean system. Lean systems accomplish waste reduction by improving process productivity, reducing inventory, improving quality and increasing worker improvement too. The waste reduction accomplished by lean systems had effect on costs and enhances profitability. To reduce inventory waste, we can use one of the inventory-focused techniques, that is matching production to demand.

Besides the company can also eliminates non value adding steps of the production. The elimination of non-value adding steps is at the root of every productivity improvement effort. Processing steps that do not add value is one of the most common wastes in business. Eliminating the non value adding steps will increase the capacity and reduces costs.

GPI used product-oriented layout to produce their products, but it caused lack of flexibility. GPI can change their layout to cellular layout. Cellular layouts utilize work cells, which contain small groups of machines that provide all the capability necessary to produce a family of products. Small scale equipment will increase the ability to adjust demand changes.

Corporate Social Responsibility
Now, we will look at the aspect of Cooperate Social Responsibility (CSR) of company GPI. Products produced by GPI such as Nylon bags, plastic trays, sealable clear plastic containers and polypropylene sheets which are used in a wide range of disposable are all consider as plastic products. Polypropylene is a thermoplastic polymer, made by the chemical industry and used in a wide variety of applications, including packaging, textiles, stationery plastic parts and reusable containers of various types. In CSR environment components, plastic especially polypropylene cannot be recycled and will cause pollution to environment. This had proofed that GPI did not to their CSR as well as possible. GPI should change their packaging with raw materials that can be recycled or can be biodiversity and good to environment.

On the other hands, GPI had used product-oriented layouts as their products lines. This will lead to boredom and job dissatisfaction for the employees. In the CSR workplace components, GPI did not play their role well. GPI can apply employee involvement so that knowledge and talents of employees will not be wasted. GPI should also provide employee cross-training. Cross training teaches employees to do several different jobs, offers an alternative to having idle employees.

As a conclusion, GPI should improve the qualities of products and eliminate waste of the As a conclusion, GPI should improve the qualities of products and eliminate waste of line.

Source: http://www.gpilebanon.com/home.html

Tomypak Berhad

Tomypak Berhad is involving in the production of flexible food packaging material and become one of the leading packaging industries in Malaysia. Tomypak is located at No. 11, Jalan Tahana, Tampoi Industrial Park, 80350 Johor Bahru, Johor. The company has established since 1979 and listed on the 2^nd Board of Bursa Malaysia since 1996. Apart from that, the company also get Certified of Flexible Packaging Material Manufacturing Company from Hazard Analysis and Critical Control Points (HACCP). From time to time, Tomypak always focuses on the progressive growth and aggressive technology enhancement to ensure efficiency of manufacturing process and consistent product quality for customers satisfaction. Tomypak supplies packaging material for snack industries and daily use products such as packaging for milk powder, biscuits, pet food, detergent etc. Their major customers are business customers of an industrial based product company, such as Danone Malaysia Sdn Bhd, Hup Seng Industries Bhd, Colgate – Palmolive Sdn Bhd and Babas Products (M) Sdn Bhd.

Analysis
In making their packaging, the company uses variety types of raw material which is BOPP Film, Polyester Film, LLDPE Film, CPP Film, Nylon Film, Aluminium Foil, LDPE Resin, PP Resin, ink and Solvent / Thinner. Besides that, Tomypack has set a purchasing policy for their raw material and can be related into the operation perspective.

Purchasing Policy

• To conduct purchasing on ethical, sound and businesslike basis.
• To ensure raw material and services required are desired quality, quantity required are delivered on time.
• To ensures the "Approved Vendors" are reliable and consistent in supplying the raw materials and services.
• To keeps minimum two vendors, for raw materials and services supplier with exception of monopolize market - Special grade/sole distributor.
  

The chart above shows the general manufacturing process of Tomypak Berhad which is divided into 3 parts, i.e initial levels, intermediate levels and final levels. The Company is using high technology machineries and equipments in their production process. They operate their equipments and machineries with a standard manner and procedure. Each of the products will go through step by step before became the perfect outputs. Furthermore, each of raw materials should follow the systematic steps that have been set to the machine. Thus it will create lead time for each input before being output. The company should also using suitable methods to save waiting time.

From the inventory aspects, Tomypak’s policy is to make sure their stocks are consistent every time and able to supply, when there are demand from their business customers. Additionally, it is preliminary step when have demand outside expectation and also can stabilize prices of goods. So, the company has been distributing their stock to some part by balanced. The figure below show the stock division form 2004 till 2006. From the table we can show that the company keep their stock in a consistent manner.

Solution
After understanding and analyze the company’s operation environment, we wake up with several solutions as an improvement to the present practice.

(1) Improvement of the operation layout

As an advice, the company should apply a product-oriented layout, also known as a linear series of processing steps. Our reason for choosing this method is Tomypak produce their products through the step in sequence, processed undergoes essentially the same processing steps and they also can provide low cost price per unit products. Thus the company is able to produce standardized output and at the same time can save their manufacturing costs. Beside that wastage of resources risk also can be reduced. The figure above shows the layout of Tomypak products. Based on the illustration, it shows that, the company using the standard process flow to produce the packaging product but the difference is in the final steps which have variety process steps including injection, extrusion, blowing moulding, compression and etc. We can say that not all of the products are involved in the whole final steps. Maybe it only involve to the certain product like high barrier packaging.

(2) Improvement of the inventory holding
The company should keeps their inventory in suitable quantity which can be matched the demand with the supply. The company also should think about how many and when should they hold the inventories? As an advice, the company should apply the Kanban system and Just-in-time which is the approach to manage inventory in consistent manner. Based on Just-In-Time concept, Tomypak should have the right material, at the right time and at the right place. All of this concept try to explain that the supplier only deliver the input to the production line as an, when they are needed, so that there is no storage in production area. Within this system, workstations located along production lines only produce or deliver desired input component when they receive a card and an empty container, indicating that more parts will needed in production.

Conclusion
As a conclusion, the company should maintain their practices and do a few improvements to achieve the organisation goals. Besides that, the company also should not forget about corporate social responsibility to environment like tarnish the river with toxic waste and the air pollution with poisonous smoke. The company should think the suitable way to remove manufacturing waste with more environmental friendly.

Mapping Trend

Literature Review
After refer to the articles like, packaging materials, the important of using the right packaging, WSYR-Company’s Runs Own Recycling Centre, packaging, repacking, Packaging (plastics)- Market-Report 2003, packaging and packaging waste, overviews of the European Union activities, wood packaging material, environmental issues of PVC and so on, we have been done a conclusion.

At 22 May 1989, In United States, organisations and companies have conducted a campaign to give plastic foam and other plastics a second life because the plastic refuse give adversely impacted to the environment. They feel that in the future, Mounds of plastic-foam cups and empty soda bottles will clutter the roadsides and choke waterways. Communities are forced to sensitive in the environmental issues. Thus, Waste Management Organization forms a joint venture with several companies to build the country's largest plastic-recycling operation. Besides that, certain parties feel that the biodegradable and recyclable plastic are costly than the normal plastic.

As with many environmental efforts, the greatest obstacle to plastic recycling is old-fashioned laziness and indifference. On top of that, some firms argue that degradable, not recycled, plastic are a better solution to the waste problem. As a conclusion, everyone agreed that a serious solution to the problem of plastic waste is going to be expensive. Therefore, we should think the best solution to save the environment.

At 2 November 1990, McDonald wants to change plastic wrap and container to paper packaging. Thus, they should face with various criticisms from many people and organization. Then they should be prepared for, to respond to public pressure for a cleaner environment by announcing that it would extend its limited plastics-recycling program to all of its 8,500 restaurants nationwide. McDonald’s also feel that customers demand are change now. In the past, convenience was the most important attribute of a package, while now customers are sensitive to the environmental issues related to material packaging. Before McDonald’s move to the paper packaging, they had established a joint task force with the Environmental Defense Fund to study how to deal with the company's solid-waste problem and also aware that public concerns about the environment and solid waste have been growing. As a result they wake up with 3 important hierarchies, which are reduced, reuse and recycle.

Packaging is a large and important industry in UK and European. Before year 1994, plastics are the second important packing materials. At 20 December 1994, European Parliament and Council Directive have been announcing a report on packaging and packaging waste. The objectives of this report are to prevent the formation of packaging waste and encourage the member state to develop packing reuse system. People start to realize the packaging they using now is the cause of environment polluted.

At 1 November 1998, United Parcel Service (UPS) overnight shipping packaging project that minimize the environmental impacts of overnight shipping packaging. The packaging changes include nearly doubling the amount of post-consumer recycled material in the UPS box, and using at least 80 percent post-consumer recycled material in the Express Letter. UPS also introduce post-consumer recycled material into UPS' plastic PAK and reducing each PAK's weight by almost 10 percent.

At 26 July 2000, a green paper about The Environmental Issues of PVC has been published. It touches on the effect of PVC on human health and the environment. At that time, environmentally-free materials which are reusable, recycling or environment biodiversity are encouraged using to replace plastic.

December 2001, the European Union's executive arm issued new proposed rules which would increase recycling of packaging from the current 25-45 percent minimum to a target of 55-70 percent, depending on the type of packaging. Paper and board, in particular, will have a target of 55 percent. The new rules now go to the member states and the European Parliament for approval. According to Recycling Policy News Briefs, requirements often require manufacturers to determine if their packaging is recoverable, recyclable compostable, reusable and source reduced.

At 18 August 2002, Cargill Dow, a joint venture by the agricultural giant (Cargill) and the chemical company (Dow), is manufacturing biodegradable and recyclable plastics from corn sugars. The company already makes environmentally friendly packaging for Sony products and pillow stuffing for Pacific Coast Feather.

In year 2004, Plastic combustion has been criticized by green organizations in the world because it is contained dioxin, one of the dangerous chemical that can affect human life. A lot of organization started arguing on this issue to find the best solution. This is the list of the whole activities:

1. Greenpeace society have been organized campaign to ban the production and using of Polyvinyl Chloride (PVC) in the world.
2. As a reaction, the company of plastic industries conduct a study to prove the public that there is no connection between plastic combustion and production of dioxin. Furthermore, US have been introduced the Wood Packaging Material (WPM) Program. Under the WPM program, an agency monitors the conformance of approved wood packaging facilities to the ALSC WPM program and the International Standard of Plant Management (ISPM) No. 15, "Guidelines for Regulating Wood Packaging Material in International Trade". The ALSC WPM program operates under a Memorandum of Understanding with the USDA Animal Plant Health Inspection Service (APHIS). Until now, many countries in this world have been adopting regulations concerning import requirements for wood packaging.
   

At 12 January 2007, zero waste idea has been raised. Zero waste is the idea that design, produce, consume and recycle products without throwing anything away. Wal-Mart is one of the companies that involved in zero waste idea. It is clear when Wal-Mart’s waste reduction efforts compass corn-based (rather than plastic) food packaging because it can be more easily recycled. It has shrunk the size of Sam’s Club water bottles. It is also recycling plastic. Wal-Mart is putting pressure on its 60,000 suppliers to reduce packaging of all kinds. Right now, companies that make packaging have little incentive to cut back since they don’t pay for disposal. The world’s largest retailer may be able to change that.

In March 2007, many companies start to apply sustainable packaging. There are some companies that implement sustainable packaging like General Mills and Estee Lauder. General Mills recently reduced its Hamburger Helper package size by 20%, reducing the cost of materials and cutting out 500 distribution trucks each year. The company also reduced the amount of metal used in Progresso soup cans, cutting out some 350 tons of steel used per year. Nevertheless, Estee Lauder is pushing to use 80% recycled content on any matte or satin-anodized aluminum used in packaging. According to Delfausse, virgin aluminum requires 90% more energy (and therefore more dollars) to process than recycled aluminum.

At 19 November 2007, Wal-Mart starts to apply Seventh Generation Sustainability framework in their organization. As evidence, Wal-Mart spends 500 million dollars a year on initiatives like opening eco-friendly stores, increasing the fuel efficiency of its trucks, and red Million dollars a year on initiatives like opening eco-friendly stores, increasing the fuel efficiency of its trucks, and reducing cardboard packaging. The main focus on Seventh Generation Framework is the idea that decisions should be considered for their impact on the seventh generation to come and it inspired by the laws of Iroquois. Thus, they believe on their environment motto, “Conserve, Reduce and Renewable” to provide eco-friendly products to consumers.

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