Investigation of Factors Impacting Lean Implementation in the Indonesian Fast-Moving Consumer Goods Industry

Tanudiharjo, Rio Kharisma; Yun, Florence Ng Jia; Joo, John Heng Aik; Arokiam, Ivan C.

doi:10.31387/oscm0450294

Cited by 11 publications

(14 citation statements)

References 23 publications

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“…Effective production planning and scheduling practices can help FMCG companies meet customer demand, reduce lead times, and improve operational efficiency. In this essay, we will explore three key aspects of production planning and scheduling in FMCG operations: advanced planning tools, enterprise resource planning (ERP) systems, and advanced analytics for production optimization (Basson, Kilbourn & Walters, 2019, Guo & Liu, 2023, Tanudiharjo, et. al., 2021.…”

Section: Production Planning and Schedulingmentioning

confidence: 99%

Strategic Operations Management in Fmcg: A Comprehensive Review of Best Practices and Innovations

David Olanrewaju Olutimehin,

Ekene Ezinwa Nwankwo,

Onyeka Chrisanctus Ofodile

et al. 2024

Int. j. manag. entrep. res

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Strategic operations management (SOM) in the fast-moving consumer goods (FMCG) industry plays a crucial role in driving efficiency, quality, and customer satisfaction. This paper presents a comprehensive review of best practices and innovations in SOM within the FMCG sector, aiming to provide insights into how companies can optimize their operations to achieve competitive advantage and sustainable growth. The review begins by examining the key challenges faced by FMCG companies, including demand volatility, short product life cycles, and complex supply chains. It then explores how strategic operations management practices can help address these challenges and improve overall performance. One of the key areas of focus in SOM for FMCG companies is inventory management. Best practices such as demand forecasting, lean inventory principles, and just-in-time (JIT) inventory systems are discussed, highlighting their importance in reducing stockouts, minimizing waste, and improving overall supply chain efficiency. Another critical aspect of SOM in the FMCG industry is production planning and scheduling. The review outlines how advanced planning tools, such as enterprise resource planning (ERP) systems and advanced analytics, can help FMCG companies optimize production processes, reduce lead times, and enhance flexibility to respond to changing market demands. Furthermore, the paper discusses the role of technology and innovation in enhancing SOM practices in the FMCG sector. It explores how technologies such as automation, artificial intelligence (AI), and the Internet of Things (IoT) are transforming FMCG operations, enabling companies to achieve higher levels of efficiency, quality, and sustainability. The review also highlights the importance of collaboration and partnerships in SOM for FMCG companies. It discusses how strategic alliances with suppliers, distributors, and other stakeholders can help FMCG companies optimize their supply chains, reduce costs, and improve customer satisfaction. Overall, this paper provides a comprehensive overview of best practices and innovations in strategic operations management for FMCG companies. It emphasizes the importance of adopting a holistic approach to SOM, integrating people, processes, and technology to achieve competitive advantage and sustainable growth in the dynamic FMCG industry. This review paper systematically examines existing literature on operations management within the FMCG sector, highlighting effective strategies for coordinating operations, crew scheduling, and logistics to uphold professionalism and achieve peak performance. It aims to aggregate insights on process improvement opportunities, conflict management techniques, and cross-functional team dynamics that have led to world-class customer experiences and increased product sales. The review will also discuss the role of technology in maintaining operational records and facilitating continuous improvement in FMCG logistics and supply chain management. Keywords: Innovations, Best Practices, SOM, FMCG, Comprehensive.

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Section: Production Planning and Schedulingmentioning

confidence: 99%

Strategic Operations Management in Fmcg: A Comprehensive Review of Best Practices and Innovations

David Olanrewaju Olutimehin,

Ekene Ezinwa Nwankwo,

Onyeka Chrisanctus Ofodile

et al. 2024

Int. j. manag. entrep. res

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“…Lean uses five core principles: identify customer values, focus on processes that create value, eliminate waste to create flow, produce only according to customer demand, and strive for perfection (Stevenson, 2021). In the fast-moving consumer goods industry, companies intend to increase productivity with less staff and lower inventory levels through lean implementation (Tanudiharjo et al, 2021). This approach is similarly applicable in the food charity sector, which relies mainly on volunteers and inventory built on solicited funding and donations.…”

Section: Lean Principlesmentioning

confidence: 99%

“…When the philosophy of perfection is integrated into a company's organisational structure, it will trickle down into its conduct, increasing the value customers receive from its performance. According to Tanudiharjo et al (2021), organisational culture plays a critical role in lean implementation success. The work environment, employees' perspective toward the organisation, willingness to adapt to lean working methods and the time frame provided to employees for lean implementation are critical factors linked to organisational culture (Tanudiharjo et al, 2021).…”

Section: Strive For Perfectionmentioning

confidence: 99%

“…According to Tanudiharjo et al (2021), organisational culture plays a critical role in lean implementation success. The work environment, employees' perspective toward the organisation, willingness to adapt to lean working methods and the time frame provided to employees for lean implementation are critical factors linked to organisational culture (Tanudiharjo et al, 2021). Further, Mahadevan (2021) agrees that culture is essential in implementing lean processes in an organisation.…”

Section: Strive For Perfectionmentioning

confidence: 99%

“…Involvement and commitment from the top management and leadership play a vital role in shaping and sustaining the non-profit organisational structure and culture (Tanudiharjo et al, 2021, ). Top management can be involved in the lean implementation during resource allocation, providing guidance on lean processes and training for employees on Lean methods and tools (Tanudiharjo et al, 2021;Sohal et al, 2022). A transformational leadership style is recommended for organisations adopting a lean approach.…”

Section: ) Active Leadershipmentioning

confidence: 99%

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Using Lean and Voice of Customers to Fulfil Needs in the Charity Sector – A Reflective Case Study

Tay,

See

2022

OSCM: An Int. Journal

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Lean principles are widely adopted in the manufacturing and services industries. However, few organisations consider Lean in the operations nor implement Lean initiatives in the charity sector. This paper is a narrative reflection of an action case research study conducted in a charity organisation in Singapore -the Food Bank Singapore (FBS), where Lean principles were adapted to optimise available resources to meet the needs of beneficiaries and donors. We found three key priorities that must be established by gathering and listening to the voice of customers (VOC), including the beneficiaries and donors in the charity context. The three priorities relate to the roles of the key stakeholders that support FBS's mission of eradicating hunger and all forms of food insecurity in Singapore. The first priority is enabling donors to donate right to meet beneficiaries' needs. The second priority is enabling FBS operations to serve the diverse beneficiaries' needs better. The last priority is offering beneficiaries the "Dignity of Choice" of foods. This paper underlines the critical success factors for adopting Lean:appropriate leadership, staff engagement, and stakeholder management. The reflective findings from this article will enable non-profit and charity professionals to better understand the application of Lean principles.

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Preliminary Survey in FMCG Shop-Floors to Understand Operational Activities for Identifying Ergonomic Stressors: A Case Study from North-East India

Singh

Karmakar

2022

Ergonomics for Design and Innovation

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Investigation of Factors Impacting Lean Implementation in the Indonesian Fast-Moving Consumer Goods Industry

Cited by 11 publications

References 23 publications

Strategic Operations Management in Fmcg: A Comprehensive Review of Best Practices and Innovations

Strategic Operations Management in Fmcg: A Comprehensive Review of Best Practices and Innovations

Using Lean and Voice of Customers to Fulfil Needs in the Charity Sector – A Reflective Case Study

Preliminary Survey in FMCG Shop-Floors to Understand Operational Activities for Identifying Ergonomic Stressors: A Case Study from North-East India

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