FACULTY OF BUSINESS AND MANAGEMENT

UNIVERSITI TEKNOLOGI MARA (UITM) CAMPUS PUNCAK ALAM

STRATEGIC MANAGEMENT (MGT 657)

GROUP ASSIGNMENT
COMPANY BUSINESS REVIEW (FARM FRESH)

PREPARED BY
Name ID NO
Angela Anak Joseph 2018 287 238
Daphne Ubong Luyoh 2019 544 919
Fahana Binti Zakaria 2019 326 625
Sophia Lungan Padan 2019 542 327

GROUP
BA 244 5B

PREPARED FOR
Sir Zulkefli Abdul Rahman

SUBMISSION DATE
14th January 2021

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 TABLE OF CONTENTS

NO CONTENTS PAGES
1.0 Introduction 1
(Why does this course require you to do this assignment?)
2.0 Company’s Profile 2-4
(Company’s Background, Core Business)
3.0 The Company’s Business Plan/Plan Schedule 5-6
4.0 Research the Company’s Best Practices in the Industry 7-8
5.0 Determine the Current-State Business Processes 9-10
6.0 Document “As Is” Processes or their Current Situation of the 11
Business
7.0 Collect the Flow of the “As Is” Process 12-15
8.0 Study the Process 16-17
(What’s the end product and for sure there is room for
improvement)
9.0 Draft the Improvement or “To Be” Process Flows 18
10.0 Discuss the “To Be” Process/Strategy to achieve the New 19-20
End Product
11.0 Finalise the Process/Comparison/Recommendations 21-22
12.0 Conclusion 23
13.0 References 24-25

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1.0 Introduction: Why does this course require you to do this assignment?

Strategic management (MGT657) is to be an internal mechanism that allows a

company to track, review, and examine all the appropriate items in order to achieve its
priorities and objectives. The strategic management is a devotion to strategic planning that
demonstrates the corporate capacity to assess the priorities of the decision and activities to
achieve the outcomes. Therefore, strategic management is defined as the package of choice
and action that a manager must take to assess the outcome of the success of the organization.
Moreover, strategic management is often referred to as nothing but planning that is
predictable for both businesses is applicable. Through formulating and executing the
necessary strategies, the business will achieve a durable competitive advantage. Thus, this
course is important for students, so it is required a student to choose business company, and
student need to review the growth or extension of the company. It is also a part of the course
syllabus to see how the development of an organization. Moreover, a student can learn and
understand more about how the company growth or development from before and in the
future. Other than that, the students should communicate with the practitioner to direct and
express their ideal future. It is necessary for them to bring more time and resources to the
academic community in order to establish an open inclusive strategic mechanism. In this
research, students can learn how to plan a business and ventures and concentrate on long-
term goals in a constructive manner. The purpose of the task is to provide students with the
ability to adapt the theory and learning processes to practical experience and to provide
students with substantive content in the real world.
2.0 Company Profile of Farm Fresh

Figures 1.0 Farm Fresh Logo

Farm fresh milk is a company based in Malaysia with their head officer is in Johor
Bahru. Farm fresh milk operates in the Animal Production and Aquaculture Industry. In farm
fresh, it has two factories operating in Muadzam Shah, Pahang and Larkin, in Johor where
has the plant production capacity reached to 12 million litres in a year at an estimated to one
million litres per month. It was founded in 2009 by Loi Tuan Ee and was owned by 30%
Khazanah National Berhad, which is a Malaysian government investment arm.

Organization of Farm Fresh

Farm fresh milk is a product name under The Holstein milk company Sdn Bhd. It is
an agricultural company that located in Malaysia who are selling milk to customers. It is the
first Malaysian commodity ever produced by a milk firm. Mr. Loi Tuan Ee, are born in a
small town in Perak, he is the founder of this milk business. He has a profound regard for
farming and enjoys the nature. Thus, he states that many of the Malaysian products were
selling a powdered milk product, and so he wanted to buy a small estate in Johor and
imported a 60 Australian of Holstein Jersey cows to set up his Holstein milk business.

Figures 2.0 This is Loi

 Mr. Loi Tuan Ee visions are to grow a new and a pure dairy, just as nature intends. A
mission is all about a quality produce product to ensure that we have a healthy and happy
cow to preserve the environment and give their customers for what they truly deserve.
Therefore, to provide a quality product in giving consumers for what they truly deserve in
aiming for no.1 dairy products in the worldwide. In order to ensure healthy and happy cows
as maintain a competence of employees.

Figures 3.0 This is Azmi Zainal

He is enlisted the assistance of Encik Azmi Zainal, his old mate. As its partner, Azmi
Zainal took in Khazanah Nationally, the government of Malaysia’s strategic investment arm
as the company invests. Therefore, their partnership laid the basis for the continued growth of
the company. Thus, the market of Farm Fresh commodities rises a significantly each year.
Farm fresh invests its service to cope with increasing demand by shifting to a greater land in
Mawai, Johor, and setting up a second farm in Muadzam Shah, Pahang.

Core Business of Farm Fresh

Figures 4.0 This is the product of Farm Fresh

The best-selling fresh milk in Malaysia is provided by Farm Fresh Milk, while
people also love its yogurt and yogurt drink products. The consistency of the Farm Fresh food
is unique in that it tastes like milk, yogurt and even yogurt beverages. Before being shipped
to the local store or supermarket, all Farm Fresh items are made from fresh milk, contain no
colouring and no preservatives, and are freshly bottled. There have a few types of fresh milk
products which is Full Cream Milk, Full Cream Milk Lactose Free, Skinny Milk, Skinny
Milk Lactose Free, Yarra Farm Full Cream Milk, Yarra Farm Low Fat Milk, Master Barista
Milk, Chocolate Milk, Café Latte, Kurma Milk, and etcetera.

Figures 5.0 Farm Fresh supermarket

The output of Farm Fresh milk takes just 2 days, which is chilled and ready to be
shipped to the processing plant after it has been milked. On the day, it is pasteurized and
homogenized, and forwarded to the nearest store. Farm Fresh promises that the milk can be
delivered at the store within 2 days. Any of the fresh milk on the market comes from
Australia or New Zealand, which must go through a long journey before it enters the store,
not like any fresh milk. Only after they give it to the retailer will the shipping to Malaysia be
longer than 3 weeks. It’s a long drive to get some fresh milk. Farm Fresh’s solution to fresh
milk is stronger. They imported cows instead of imported milk. Which will slash the milk
journey from 2 weeks to just 2 days to guarantee the milk’s freshness.

Figures 6.0 Visit to the Farm

The partnership between Universiti Putra Malaysia (UPM) and Farm Fresh Sdn Bhd
aims to increase a domestic dairy production capacity through the UPM – Farm Fresh Dairy
Farming Sector Centre of Excellence (ICoE), that’s scheduled for public opening next month.
3.0 THE COMPANY’S BUSINESS PLAN/PLAN SCHEDULE

Ever since growing up in a small town in Perak, Loi Tuan Ee has held a deep respect
for agriculture and a love of nature. Noticing that many Malaysian brands were selling
products made from reconstituted or powdered milk, he decided to purchase a small plot of
land in Johor and import 60 Holstein Jersey cows from Australia, setting up The Holstein
Milk Company. Loi Tuan Ee dreams is to produce fresh and pure dairy just as nature
intended. At first, he found buyers hard to come by. After all, who would trust a Malaysian
dairy brand? But one day, a major retailer took a chance on Farm Fresh. Loi’s dream was
becoming a reality and now Farm Fresh building its legacy.

Farm Fresh was growing faster than Loi could have ever imagined. To help expand
his operations, he enlisted the help of his old friend Azmi Zainal as partner and brought in
Khazanah National, the strategic investment arm of the Government of Malaysia, as an
investor in the company. These collaborations laid the groundwork for the company’s
continued success. The word about Farm Fresh’s natural products soon spread, and before
long our fresh milk and yoghurt products became available at supermarkets and hypermarkets
all across Malaysia. To deal with the growing demand for his uniquely fresh dairy, Mr. Loi
expanded his operation, moving to a larger plot of land in Mawai, Johor, and setting up a
second farm in Muadzam Shah, Pahang. From starting with just 60 cows, Loi’s herd now
numbers a grand total of 3500 cows spread over two world-class, purpose-built facilities. Just
6 years since inception, Farm Fresh now produces the bestselling fresh milk in Malaysia,
while its yogurt and yogurt drink products are also loved by people up and down the land,
appreciated for its rich, creamy taste and local origins.

A collaboration between Universiti Putra Malaysia (UPM) and Farm Fresh Sdn Bhd
(Farm Fresh) hopes to strengthen the domestic dairy production capacity through the UPM-
Farm Fresh Dairy Farming Industry Centre of Excellence (ICoE), which is set to open to the
public next month.

Farm Fresh business plan it to look up for the product design or model. Same as the
other product, Farm Fresh product also changing their packaging from time to time. The
improvement of packaging design helps to increase the product sell because customer tend to
realize the existence of product. It is applied in the production of Farm Fresh. Farm Fresh
tend to change their packaging design from time to time to keep their product updated and
interesting.
 Farm Fresh did not have specific target market because it is much easier for them to
sell their product. Their target market is the customer who wants to consume fresh milk
everyday for their healthy life. Research shows that almost 90% of teens did not meet the
recommended daily intake for calcium. So, as a nutrient concern. Farm Fresh make dairy
product that can consume and suit with any type of age. Not just dairy milk, Farm Fresh also
product yogurt and yogurt drink to those who does not like milk.

Farm Fresh milk produce the best-selling fresh milk in Malaysia, while its yogurt
drink products are also loved by people. The quality of the farm fresh product has its own
uniqueness of the taste of milk, no colouring and no preservatives contain and are freshly
bottled before being transported to local supermarket.
4.0 RESEARCH THE COMPANY’S BEST PRACTICES IN THE INDUSTRY

Pricing practice strategy refers to method that companies use to price their product or
services. Many of the companies base the price of their products or services on labor,
production, expenses and add on certain percentage so they can make a profit. Farm fresh
Sdn Bhd has released its own brand of fresh milk called Farm fresh to ensure that fresh milk
can be enjoyed by everyone in this world. According Azmi B Zainal Farm fresh product now
dominates 39% of the local fresh milk markets through a unique marketing system. It is clear
that although most dairy products are imported using powder, solid and preservatives in their
products. Farm fresh remains one of the Malaysia dairy companies that market fresh milk
directly from the farm.

Pricing of ones product is important to achieve goals in an organization. Pricing

strategy deals with the procedures of setting profitable and justifiable prices. Pricing is
important so that it must consider some factors and the objective of the product or brands.
Pricing objective is a guideline to develop and manage marketing strategy. The main
objective Farm Fresh Sdn Bhd is to maximize their sales every year. Same as other company
Farm Fresh applied cost-based pricing which is setting price that cover cost with target profit.
Setting the price market is also determine by demand and supply of Farm Fresh product in he
market. There are three pricing strategies such as skimming strategy, penetration strategy and
competitive strategy. Farm Fresh used penetration pricing strategy to attract customer with
low price of the product in the market for a limited period of time to so that it secured market
acceptance.

Penetration pricing strategy that Farm Fresh used sacrifices immediate profits to build
long term relationships with buyers. Farm Fresh is also used psychological pricing such as
add pricing to attract customer to buy their product. Odd pricing is certain price or odd
number just under round numbers to make products more appealing to attract buyers. As an
example, the price of Farm Fresh pure fresh milk 1 litre is RM7.85 each instead of RM8.00
mostly customer will only focus on the first number. The strategy suggests a bargain verses
even pricing which encourage buying.

In addition, Farm Fresh also implement best practices in their quality control. People
enjoy Farm Fresh which is our local brand over imported milk brand which known for having
better quality than local brand. Farm Fresh produce milk which is fresher compared to the
imported milk. Customer can taste and compared the freshness of the milk and they choose
Farm Fresh which means they have better quality in producing their milk.

Figures 7.0 Process Quality

Happy cows give tasty milk. Tasty milk that is processed with no preservatives, no
colourings, no foreign substance added, then delivered all within 48 hours means really fresh,
wholesome milk. Farm Fresh really take their milk quality serious because they received a
complaint in 2015. The CEO of Farm Fresh, a dairy produce company in Malaysia seems to
understand that concept fully and apologized who had problems with the quality of milk
produced by Farm Fresh. The company posted on Facebook that it will refund customers who
were affected by its poor quality.

Figures 8.0 Farm Fresh Facebook

5.0 DETERMINE THE CURRENT-STATE BUSINESS PROCESSES

The production of Farm Fresh milk is just within 2 days which is once it has milked, it
is chilled an prepared to be transported to processing plant. There is pasteurised and
homogenised on the day then send it to the local retailer. Farm Fresh guarantee that within 2
days, their milk is ready to be sell on supermarket. Not like other fresh milk, most of the fresh
milk in the market comes from Australia or New Zealand which needs to go through a long
journey shipment to Malaysia can be over 3 weeks only then they send it to the retailer. It is a
long journey for a fresh milk. Farm Fresh take a better approach to fresh milk. Instead of
imported milk, they imported cows. This can cut the journey of the milk from 2 weeks to just
2 days to ensure the freshness of the milk.

On top of that, this is the reason why Farm Fresh product growth increasingly
compare to other competitors. Farm Fresh Sdn Bhd can be set as an example of other brand
company because in just 3-6 years, Farm Fresh name has already well known as good product
that provided good quality of fresh milk. It is a first time Malaysian product that provide a
good quality of fresh milk. Farm Fresh get customers interaction by promising them that they
produce the best-selling fresh milk. Not just fresh milk, Farm Fresh also catching customer
trust by producing yogurt and yogurt drink that loved by people which popular with its rich,
creamy taste and local origin.

Farm Fresh practices “Farm to shelf in 48 hours” principle – the key reason that leads
to their high scores’ freshness. Cows in their farm are milked every morning at 5AM and
evening at 5PM, also the best times for milking. Once milked, milk is stored below 4°C and
transported to Farm Fresh processing plant. Pasteurize and homogenise process are
completed on that very day, bottled, and sent out to local retailer. Within 2 days, Farm Fresh
milk is up on supermarket shelf.

Figures 9.0 Picture the cow come from Australia

This can never happen for imported milk. Imagine after being processed, milk will be
transported from land to port, ship over to Malaysia. After arriving, the milk need to be
processed again before sending out to retailer. The transportation time itself has taken up
more than two week. Not counting if the milk is frozen, with changes between solid – liquid
substance and so forth. Temperature changes in between is crucial too. By the time you open
up your milk bottle, how much freshness and nutrition has been compromised? Think twice.

But how Farm Fresh achieves a quality equivalent to milk produced by Australian
cow? They import Australian cow to Malaysia. Instead of importing just milk, Farm Fresh
import Australian Holstein Jersey cows to Malaysia, and feed on natural green grass grown at
their two farms in Mawai, Johor and Muadzam Shah, Pahang. Each cow is given freedom to
roam freely in the farm, no growth hormones. When they are thirsty, they drink spring water
in surrounding highlands. Plenty of shelter as night falls. Sometimes they get pedicure and
have rice bran and palm kernel meal as nutrition supplement. Big project but definitely an
effort that makes Farm Fresh more worthwhile.
6.0 DOCUMENT “AS IS” PROCESSES OR THEIR CURRENT STATUATION OF
THE BUSINESS

FLOWCHART OF FARM FRESH PROCESSING MILK

Grass field

Grooming Milk Parlour Shower Breakfast

Happy
Cow

Cow milk pump goes into pipeline

Plate Heat Cooler

Symbols
Transported from cow farm milk to plant
Start/End

Process /
Tanker for liquid loads
Step

Delay
Plant

Preparation
Process the milk

Put milk in the bottle

Placed the milk in the box

Shrink wrapped to seal the freshness

Chill Room Transporting to

supermarket Arrive consumer
7.0 COLLECT THE FLOW OF THE “AS IS” PROCESS

Figures 10.0 The Farm Fresh grass field

First step is having a grass field. By producing milk of the highest quality begins with
having a quality grass. That is why the Farm Fresh company grow their own grass. They have
500 acres of grass. To operate a dairy cow farm, they need a lot of grass. So, what they do is
that they have vast areas of land, where they plants as much grass as they can to make sure
that they have the capacity to fulfill the demand of the animals. Cows eat 100 pounds of food
daily. With the cow farm right next door, their grass fields are fertilized by their own cows.
They also use their own cow manure organic fertilizer as a fertilizer source for the cows.
There grass is harvested at peak ripeness for optimum freshness where the grass is cut at its
greenest. Then, they bring the grass over to their feed centre. At the feed centre, they
reformulate the diet to ensure that everything is perfectly balanced. Mixed with other types of
plant-based food, the grass is part of a highly nutritious diet for the cows. It is means
providing optimum nutrition for their cows. And when the cows eat good food, they produce
great milk.

Figures 11.0 The cow are eaten Figures 12.0 Cow take bath and clean

Second step is a high-quality milk comes from happy cows. That is why Farm Fresh
company take great care of their cows. In their farm, the cows participate in a daily routine.
That begins with a hearty breakfast and a good shower. Fed out to the cows where they feed
their cows beautiful grass mixed with concentrates. It is to make sure that it is tasty and also
good for the cows. Next, they will shower the cows and put them through fans for
evaporative cooling. They will shower them and put them through fans for evaporative
cooling. Then, the cows will go into the milking parlour. Once in there, they will make sure it
is cold and comfortable for their cows. After the cows is clean and fed, the cows make their
way to the milking section, where they will be comfortably milked. In grooming section,
there even have a pot for pedicures. Everything in operation in sanitary conditions is keep as
clean as possible.

Figures 13.0 Pump cow milk

Next step is pump cow milk. Once the castors are attached to the teats, the milk goes
into a pipeline. It goes immediately into a transfer tank that will transfer it into a plate heat
cooler. The plate heat cooler will rapidly cool the milk. Farm Fresh want to bring us milk that
is natural as possible. So, they keep their raw milk processing to the essentials. They make
the milk that it safe for us to drink. Every day, they will have lorries coming in taking their
milk back to their factory. Sometimes, the lorries for transport the milk to plant will be delay.
Therefore, it is important that they have the hot plate cooling so that the milk will be cold and
not easy stale. In the evening, cows are free to roam in the pastures. All for a happy herd of
cows.
 Figures 14.0 Transport milk using tankers Figures 15.0 The milk is filled in bottles

Farm Fresh have producing that delicious milk we drink every day. Next process is
they carefully transport the milk using tankers specially designed for liquid loads. They
transported the milk directly from farm to the plant. Where the milk will be pasteurized. It is
to remove the harmful bacteria. The milk is kept cool at all times. All while being in a
temperature-controlled environment. Once the milk process is ready, the milk is filled into
the bottles. Before that, they will sanitize the bottles and caps before filled the milk in the
bottles and put the cap. This is in order to keep the milk safe. In addition, during this
pandemic, it is really an important things to put cleanness and safety first. It is a priority to
keep the quality and safety of the product.

Figures 16.0 The product placed in boxes

Next the milk is placed in boxes. The bottles filled with milk are automatically stored
in the crates. The milk that have filled in the bottles need to place into boxes in order the
work will done quickly. Then, shrink the wrapped to seal it freshness even further. Sealed up
immediately upon fill-up. With its freshness sealed inside, so we can enjoy milk as nature
intended. Once the milk is packed, they are stored in a chill room conditions of 0-2 degrees to
keep the freshness while waiting to be picked up. The stacked are then carefully moved to be
loaded in a temperature-controlled transport.

Figures 17.0 Product in supermarket Figures 18.0 Special Vehicles

Figures 19.0 Customer

The special vehicles keep the milk cool inside while transporting them to the
supermarkets across peninsular Malaysia. The time taken from the cows being milked to the
bottle on the shelf is just about 48 hours. That how fresh their products are. Last step is
arriving to the consumer or customer. From their farm to our fridge, they do everything they
can to keep their products natural, high-quality, and fresh. And the result can clearly be
tasted. The Farm Fresh in Malaysia want to bring us the freshest of milk. As part of that is
delivering the dairy products as quickly as possible. When quick delivery is made, the
freshness of the milk will be maintained.
8.0 STUDY THE PROCESS (WHAT’S THE END PRODUCT AND FOR SURE
THERE IS ROOM FOR IMPROVEMENT

Figures 20.0 All of Farm Fresh product

The end product of Farm Fresh is the Dairy milk products. From what I see in the
flowchart of the current process, there is room for improvement. First is Farm Fresh has a
lack of efficient logistical workflow to retain the freshness of the milk during deliveries.
Farm Fresh need investing in more temperature-controlled lorries for transporting fresh milk
to retail stores and markets. For instance, they provide more lorries for standby in case if
there is any problem that might occur as if one of the lorries is breakdown, there are other
lorries that can be used. Furthermore, especially during this pandemic of Covid-19, it is hard
for doing transport to the supermarket. It is because the government has operating a
procedure to reduce or limit the movement and cannot cross-state according to the Restriction
Movement Order made by the government. There are one initiative to make the delivery do
not delay is to deliver by using a bus and the person can take the products at the terminal bus
when it has arrived. Besides, Farm Fresh can do delivery by using Grab delivery to deliver
the product to the supermarket. Moreover, Farm Fresh need to appoint more home dealers
and agents to markets the dairy products across Malaysia. This will make it more easier to do
deliver based on the state and area that is near.

The next room for improvement is the machine which to make the milk has more high
quality and freshness in the milk. The Farm Fresh has to do improving their machine by using
an ultra-high-temperature processing machine. It is for process the milk becomes more fresh
and has natural milk. When it becomes more fresh, the milk will not easily become stale
milk. The milking machine is the only one factor that can influence to the milk quality. The
bacterial contamination can enter the milk from the machine surfaces. The worker need to
keep milking hygiene and the machine need to keep sanitize so it is safe to use. Besides,
Farm Fresh need to add more machine. When adding more machines, it can save more time
to produce milk in a specific time. Moreover, by adding more machine, it can reduce delay in
producing dairy milk production and can reduce time. Besides, the more the machine, the
more dairy milk products can be produced and can save more time in producing milk.
Furthermore, they need to have routine machine maintenance tasks. It need to do routinely for
system awareness. Awareness like if there is leak or damage, they will immediately do
maintenance by repair the machine and it can avoid any problem or something would happen.
Next, Farm Fresh need to do a special machine room where people can see from the window
in order people that come will see on how the process in producing dairy milk product. It can
be an ideal destination for a family especially kids, where there are activities such as they can
show the process in producing the Farm Fresh dairy milk product and explain to the kids or
youngster the benefit of dairy milk.
9.0 DRAFT THE IMPROVEMENT OR ‘TO BE’ RPOCESS FLOWS ‘TO BE’ PROCESS
FLOW OF FARM FRESH PROCESSING MILK

Milk Parlor
Feeding (Grass Shower And Plate Heat
(Pipeline
Field) Grooming Cooler
Milking System)

Process And Tanker For

Plant Transportation
Pasteurization Liquid Load

Transport Into
Packaging Chill Room Consumer
Supermarket
10.0 DISCUSS ‘TO BE’ PROCESS/STRATEGY TO ACHIEVE NEW END
PRODUCT

From the new or ‘to be’ process flow, the process will start with bringing the cows to
the grass field and feed them. The grass field management is very important to have good
quality grass that creates happy cows. It fulfills the demands of the cows and leads to high-
quality milk. Bringing the cows to the grass fields not only fulfill their hunger but also able to
gives them big space to roam while eating. It is able to reduce their stress from being in the
cage only.

Secondly, the cows will be brought back into their cage and will be showered and
groomed. Having these two activities at the same time and place will save time and effort of
the workers. These processes were improved by merging both separated processes. We
perceived that merging both processes are more suitable and brought many benefits.

Thirdly is to the milking parlour where it was applied with a pipeline milking system.
Thus, the milking will be more efficient and faster. It is because the pipeline milking system
will automatically suck the cows’ milk and transfer it to the plate heat cooler. It is faster and
able to keep the milk fresh. These processes are still similar to the current process and there is
no improvement to it.

Next, transportation of the milk to the plant will be upgraded because it is one of the
causes of delays. Transportation delays often occur because of breakdown. Hence, in the ‘to
be’ process flow, we have suggested before the transportation process started, the workers
need to do maintenance of the transport every month and always double-check, an hour
before the transporting. Also, provide backup transportation in case the other faces
breakdown.

After that, the milk brought by the lorries will be gathered into a tanker for liquid load
and transferred to the plant for milk processing and pasteurizing. These processes do not need
to have any improvement to it, and it will remain the same as the current process.

Another improvement to the current process is the packaging process. The old
packaging process can be redesign into a shorter process. This can save more time and reduce
the unnecessary workers in the company which cut the operational cost. To achieve those,
Farm Fresh can invest their money into a new machine where it able to multitask in the
packaging area. After the packaging, the milk will be transferred into the chill room and
ready to be transported to the supermarkets.

All these improvements will create lower price end products yet high in quality. It is
because of the removing of the unnecessary process or merging two or three processes able to
cut cost and save time too. As a result, Farm Fresh can sell its products at a good price that
can be their competitive edge and strength to other competitors.
11.0 FINALISE THE PROCESS/COMPARISON/RECOMMENDATION

Figure 21.0 Two separate processes that can be merged into one process and one place

The new process flows much better than the current process because it is simplified
and able to save more time and cost. From the preparation stage in the current process, the
cow will be showered before getting into the milking parlor, but then the cows will go to the
grooming stage. This process shows unnecessary motion and unnecessary separated
processes. So, in the ‘to be’ process, we improve it by merging both showering and
grooming, then the cows can be brought to the milking parlor. From this improvement, the
workers will no need to bring the cow from the shower place to the milking parlor and
grooming at a different place again. It only wasting the workers' energy and time but having
both shower and grooming at one place and process, it will be more efficient.
During transporting the milk to the plant, it always faces delays because of
breakdowns which cause the milk stale. This problem has a domino effect on the production
of milk. When they arrive late to the plant, then it will receive late to the customers and this
gives the opportunity to other competitors as this is seen to be a weakness. But in the ‘to be’
process, we have suggested to get backup lorries and also do maintenance every month to
avoid this problem. As a result, the milk can arrive on time and the quality is maintained.

Figures 22.0 An automated box case cartoon filling machine that can replace human labor
 Besides, the packaging area in the current process always faces delays and it is a long
process where there are three areas that it needs to go through. So having delays in this area
can increase its time taken to get to the consumer. As we can see from the current process, the
machine will put milk in the bottle, the workers then put the milk into the box and shrink
wrapped them. This packaging process alone requires more time and energy for the workers
to get the bottle and stack them in the box and get it wrapped. All these processes actually
can be done by one fully automatic machine such as a machine that can automatically stack
the milk into the boxes. Thus, in the ‘to be’ process, the company needs to invest some
money in this kind of machine. It is because it is more efficient, fast, and does not require a
lot of human labor.

Also, in the old process, there is a delay in the shrink-wrapped to seal the milking
area. It may cause the milk to stale and not fresh anymore because of the wait or time idle. It
can affect the quality of the milk when it arrives at its customers. As a result of bad quality
milk, the customers may notice it and not willing to buy the products anymore and causes
low profit. So, avoiding delays in the packaging area especially in the seal wrap area is very
important. As a solution, the new machine that multitasks in the packaging area can solve this
problem and also provide maintenance regularly. The new multitasking machine is capable of
doing initially three processes into one and the automation can avoid human error such as not
wrapping the seal properly.
12.0 Conclusion

We conclude on these cases is as we know that a Farm fresh is the country’s

number one fresh milk brand. Although only ten years in the field of livestock and plantation.
Today, farm fresh controls almost half of 100% of the fresh milk market in Malaysia. Starting
with only 60 dairy cows, now, farm fresh farm dairy has 3,500 cows for fresh milk to meet
demand growing every day in the market. Previously, Loi Tuan Ee only by raising goats and
the goat milk was bottled and marketed in pharmacies, farmer’s markets, and retail markets
around the state of Johor. Due to his growing business cow’s milk. Mr. Loi Tuan Ee decide to
find a partner to help him. Besides that, the challenge at the beginning of the establishment of
the farm fresh brand with only 60 dairy cows, farm fresh could not meet the amount of milk
needed to open the market throughout Malaysia. The second challenge that must be
confronted is to obtain their supplies of fresh milk from local farmers at the collection centre.
Other than that, controlled by foreign milk brands. But with a very deep desire to market the
product, he sold, the price of farm fresh at rm1.80 per litre, which is 40 cents higher than the
market price. Therefore, farmers around the state of Johor are now starting to choose farm
fresh milk collection centres to get more affordable prices. Finally, although often
underestimated by competitors and people around, it does not weaken the spirit of this brand
to continue to step in marketing their products.
13.0 References
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