Ceylon Cold Stores established in 1866 and produces carbonated drinks under the Elephant House brand. It has since expanded its product range and relocated its manufacturing plant to Hanwella. Elephant House uses a hybrid layout for its plant consisting of both process and product layouts. This allows some flexibility to suit production needs. Its supply chain integrates suppliers to help meet demand and reduce costs through just-in-time practices and centralized purchasing. Going forward, Elephant House aims to sustain its market share through product innovation, brand loyalty, and continually improving key operations management areas.

1. Group “1”
NS Nimedra
2013/pgdbm/81
S Sathees
2013/pgdbm/64
Ajith kumara
2013/pgdbm/65
NA Niroshan
2013/pgdbm/82
Yasoma WGG
2013/pgdbm/31
Sunimal de silva
2013/pgdbm/83

2. What Is Operations Management
Production is the creation of goods and
services
Operations management is the set of
activities that creates value in the form of
goods and services by transforming inputs
into outputs

3. Company Introduction

4. Ceylon Cold Stores established in 1866 as the Ceylon Ice Company,
In 1925, the company moved on to build cold storage for frozen products of all kinds.
In 1941, New Colombo Ice Company changed its name to Ceylon Cold Stores Limited. Ceylon
Cold Stores came under the umbrella of John Keells Holdings Limited with the acquisition of the
Whittalls Group in 1991.
German Engineer, Authr Von Possner, who worked as the Manager of the company has
introduced Aerated water with the distinctive "Elephant" trademark on the bottles.
They produced two types of carbonated drinks: Soda and Lemonade’
Company Profile & History

5. History of Elephant House Beverages

7. Product

8. Product Mix

9. Products of Elephant House Beverages

10. PRODUCT AVAILABILITY PRICE RANGE
Tonic : 400ml, 500ml PET 40/=, 80/=
Apple Soda : 200ml, 400ml, 500ml PET,1.5L PET 30/=, 40/=, 80/=, 200/=
Cream Soda : 200ml, 400ml, 500ml PET,1.5L PET 30/=, 40/=, 80/=, 200/=
EGB 200ml, 400ml, 500ml PET,1.5L PET 30/=, 40/=, 80/=, 200/=
Ginger Ale 400ml 40 /=
EGB Light 500ml PET 80/=
Lemonade 200ml, 400ml, 500ml PET,1.5L PET 30/=, 40/=, 80/=, 200/=
Necto 200ml, 400ml, 500ml PET,1.5L PET 30/=,40/=,80/=, 200/=
Orange Barley 400ml, 1.5L PET 40/=, 200/=
Orange Crush 200ml, 400ml, 500ml PET,1.5L PET 30/=, 40/=, 80/=, 200/=
Soda 400ml, 500ml PET, 1.5L PET 40/=, 80/=, 200/=
Elephant Wild 250ml 300/=

11. Products ofElephant House Beverages cont……
Product design of EH
Product Development Process of EH
Planning
Concept development
System level design
Design Detail
Testing and Refinement
Production ramp-up
Challenges in Product Design of EH

12. Product Life Cycle of Elephant House
Beverages

13. Bitter Lemon was
re-introduced to the
market in two pack sizes.
The consumer response
is encouraging with
volumes showing notable
growth in the
four months since its
launch.

14. Process

15. INPUT OPERATIONS OUTPUT
Process of Elephant House Beverages

16. Process of Elephant House Beverages
Process selection
Process Flow Structure of EH
Process Flow Design of EH
Process Analysis of EH
Process Performance of EH

17. Process of Elephant House Beverages

18. Location

19. First Building of Ceylon Cold Stores

20. Location of ‘Elephant House Beverages’
The manufacturing plant of elephant house is currently situated at Hanwella.
availability of raw materials required to produce soft drinks, transport facilities,
availability of labour to handle various machines and for supervision purposes,
access to utilities such as water and electricity, the considerations of the people living in
the area, legal restrictions and proper disposal methods etc.
Being in the vicinity of two major reservoirs; Labugama and Kalatuwawa, the factory
obtains the required water from these reservoirs.
Hanwella is in the urbanization process as there are other manufacturing plants being
built in and around the city.

21. Layout of ‘Elephant House Beverages Plant’
A product layout as well as a process layout has been adopted by Elephant House to
carry out its soft drinks production.
Elephant House uses a hybrid layout to carry out its production activities.
This type of layout is beneficial as the disadvantages of both product and process layouts
have been compensated.
advantage of this type of layout is that the layout could be altered to satisfy the needs
of a particular situation.
Manufacturing of Elephant House soft drinks has become convenient due to the existing
layout of the plant.
Supervision activities of these areas have become more convenient and production
activities take place smoothly and efficiently.

22. Layout of Elephant House Beverages Plant

23. Supply Chain
Management

24. Supply chain –
All facilities Functions Activities , which facilitate the flow and
transformation of goods and Services from RM to FP
Supply Chain Management –
Managing the flow of Information through the supply chain. In order
to attain the Level synchronization which will make it more responsive
to the Customer needs while lowering the cost.

27. Supply chain /integration
l Sharing information
l Collaborative Planning , forecasting , replenishing & design
l Coordinate work flow production and operation & procurement
l Adopt new technologies
l.
LEADS
to
Reduce Bullwhip effect of EH
lEarly problem detection of EH
lFaster response of EH
lMinimize cost of EH
lMinimize waste of EH
lHigh capacity utilization of EH
lIncrease the productivity of EH
lImprove service. Of EH

28. Forecasting
It is essential, as it affects the decisions and activities of an entire organization
Elephant House makes use of two basic types of forecasting;
1. time-series analysis predict the future, through the past.
2. casual relationships. define that one occurrence causes another.
Eg : they predict sales to have casual relationships mainly during the schools’ annual
sports meets, which usually fall in the months of February, July and December.
The sale for soft drinks are high at these types of events

29. Inventory
Stock of any item or resource used in any organization
EH follows inventory management policies
Just in case (JIC)
Large inventories of supplies are maintained in warehouses and through this can
prove costly, it has helped the organization deal with sudden demand fluctuations.
Just in time (JIT)
Where in process in-process inventory is reduced and relies on its suppliers to provide the
stock as an when they are needed

30. Purchasing
Follows the Centralized purchasing of materials
to
ensuring proper materials control
efficient store keeping

31. Recommendation
Elephant House should continue the product innovation and expansion
Of their product line.
Eg : Fruit drinks like coke(Mint maid) & Pepsi(Tropica)
EH Should Sustain or increase the global market share
Eg: UK, USA, Switzerland, Emirates and various other countries
 EH Should Maintain and try to increase their brand loyalty
Eg: Cream Soda has 2nd highest brand loyality

32. Conclusion
Elephant House is a well established brand, in Sri Lanka and in
other countries.
The organization continuously improving their ascertained areas in
product design, facility layout, process selection, inventory
management, and other key processes of OM
And also by overcoming their weaknesses through implementing
the above mentioned recommendations

33. Thank You

34. Any Questions?