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.