Basically, the first part of this trip provided explanations on how the Yakult drink benefit our health and what are the components which aid the process to creating a healthy body system.
There was minimal explanation on how the Yakult trip has helped in understanding the costing module. Perhaps everything was hard to relate to the costing module. However, we were quite amaze by the production process of Yakult. It was so visible to us that the Yakult factory mass produces the Yakult drink under a process costing system whereby mass production of low cost and identical items take place. Although not verbally explained, we were able to apply and relate this as an example of process costing system. Moreover, we learnt that any termination of any part of the entire process would seriously cause a huge drop in sales of the Yakult Company.
We have learnt about the following points by touring the production plant of Yakult:
1) We could better differentiate between process costing and job-order costing. The costing system for Yakult plantation would be process costing because these are identical, small and low cost items that could be mass produced. Under the process costing, it is typical that the cost of the Yakult drink cannot be directly traced to each bottle of the product. Hence, unit cost would have to be computed by averaging the costs based on the production volume.
2) We developed a better understanding on how the costs could be allocated by looking at the different types of cost drivers. In the Yakult plant, it is not labour intensive because they make use of machine to do the processing. Labour is only required to monitor the key processes. Hence, it is easier to allocate costs using cost drivers such as machine hours, production batches, set-up time, etc.
3) We have a clearer understanding of the product costs. The involvement of labour, materials and manufacturing overheads throughout the Yakult production process.
(By: Yuan Xuelian & Syafiqah Bte Mohd Sahair)
The Yakult Plant experience was indeed a very enriching and insightful one. However, the one most memorable experience from the trip for me was learning that the Yakult drink is formulated with probiotics culture and a bacteria called Lactobacillus Casei Shirota Strain . In each Yakult drink, there are many millions of this bacterium alone, which was pretty surprising. At the same time, it helped to dispel the belief that all bacteria are harmful. This strain of the bacterium is one of those exceptions in the sense that it is beneficial to the human immunity system. Therefore, it plays a crucial role of reducing the production of harmful bacteria in our bodies, which in turn enhances our immunity. It was surprising for me to find out that the Yakult Company not only produces the drink, but also produce other products lines such as instant noodles, beauty products, hair products, etc, as we have never seen them being launched and sold in Singapore.
It was also interesting to know that production volume of the factory is about 25,000 bottles per hour while the maximum production capacity is 36,000 bottles. Therefore, it relates back to the chapter on relevant costing whereby current production is at 69.44%, thus there is excess capacity. The remaining capacity could be used to produce other products so as to maximize the company’s profit or contribution margin.
It was very much a memorable experience for me in finding out more about the manufacturing process of the Yakult drink in the factory. It also aided me in identifying the relevance of it to the CMA module, thus helping me to relate the knowledge to actual experience. Last but not least, the many benefits of Yakult drink have inspired me and my family to add this drink into our daily diet to maintain a healthy living. Thus, I hope you will be inspired to take on this challenge to add a drink to your healthy lifestyle as well!
(By: Feng Yi Biao)
During the visit to the Yakult Plant, I was amazed by what I have seen and learnt! Even how much I loved drinking Yakult since I was young, I did not know that Yakult actually brings so much benefits to our body! Yakult is made up of bacteria by the name of Lactobacillus casei Shirota. Interestingly, these bacteria must reach the intestines alive to attain the full benefits of consuming Yakult. Examples of such benefits are to stimulate bowel movements that relief constipations or to make our body stronger by enhancing our immunity against harmful bacteria.These bacteria have a shelf-life of 45 days and the cost of the bacteria is free-of-charge as it multiplies itself very quickly. Seeing the lively bacteria under the microscopic view with the help of Mr Yap, the speaker, I cannot imagine them going through the intestines with such honour to help us build up our immune system! Hence, through all the visualisation and explanations made by Mr Yap, I have truly learnt and understood a lot on how each and every bottle of Yakult aid in our immune system and brings us all a healthy life!
(By: Lee Xinni)
During the visit to the Yakult Plant, I was amazed by the whole production line. I have never stepped into any kind of factories before so it has been an eye opener. I can link what I’ve learnt in CMA to my visit to the Yakult Plant although there was not an apparent link. The tour guide of the day explained to us the technical aspects and touched a little on the costing aspect.
One of the key direct materials needed for the production of Yakult would be the specially cultivated bacteria that Yakult has came out with. This cultivated bacterium is said to be able to fight off all the intestinal bacteria and is beneficial to drink it.
We also got to have a sneak preview of how the cultivated bacterium looks like under the microscope.
My favourite pick of the major highlight of the whole tour would have to be the tour of the factory. Seeing all the modern and sophisticated machinery in action: producing and bottling the Yakult. Through the tour, it also made me realized that with the help of technology, the number of required staff will also be greatly reduced. Yakult factory has staff strength of way lesser than the quantities of the drink the factory produces. A lot of the operations have been highly automated.
Overall, I find this tour an eye opener for me.
(By: Han Miao Hui)
The trip to the Yakult Plant was a memorable one. During the visit, we were actually shown how Yakult was made. It’s quite amazing that just a small bottle of Yakult needs an extremely tedious process. Yakult is actually made from bacteria and cultured milk. The cultured milk is placed in tanks and slowly transferred from one to another each day (eg. from Seed Tank to Dissolving Tank, then to the Fermentation Tank, next to Mixing Tank, etc). The raw materials used are skimmed milk from Australia, glucose from Korea/France, sucrose and flavouring. The cultured milk is then tested for it PH value to make sure that every bottle is of the same standard. The milk is then steamed but the bacteria in it would still be alive. After all that, the Yakult is bottled. We managed to see how the bottles are made and how each bottle is filled up. These bottles are then sealed and packed.
Unknown to a lot of people is the fact that Singapore is the only country that has Yakult sold in so many fruity flavours. Singaporeans always complain how small the Yakult bottle is and that there is not enough to drink from such a small bottle. The fact is, Singapore’s 100ml bottle of Yakult is actually the largest in all the countries that Yakult is sold. This includes Japan, the founding place of Yakult itself!
The Yakult Plant visit was indeed a worthwhile trip as it teaches me a lot of stuff I had never knew about Yakult.
(By: Heng Hwee Khim)
Done by: Yuan Xuelian, Syafiqah Bte Mohd Sahair, Feng Yi Biao, Lee Xinni, Han Miao Hui & Heng Hwee Khim (BS, Yr 2)
Thursday, June 26, 2008
The Beginning ...
It all started on a tuesday morning when an announcement for the Yakult trip was made during our first Cost Accounting lecture. We were tempted by the free bottle of Yakult to be given to those who signed up. Moreover, it would be an exclusive experience for us who could attend the excursion as there were limited vacancies for the Accountancy Group.
All these enticed us right from the start and we signed up immediately. By the end of the trip, we were glad to find it a truly enriching trip for us.
1 most memorable experience:
It is really hard to come up with 1 most memorable experience from the trip. Reason being... THERE IS JUST TOO MANY OF THEM!!
Well, one of our most memorable experience from the trip would be the ground-breaking news that everyone received during the talk: The little bottle of Yakult drink that we consume actually contains millions of live bacteria?! I repeat, LIVE BACTERIA!! Can you actually imagine the millions of live bacteria that moves in your body after you drank the Yakult?!
During the talk, we actually saw with our very own eyes how the live bacteria exists in a bottle of Yakult! (Of course, our eyes aren't that mighty. We saw them through a microscopic projection on the screen. (:D))
This was definitely a refreshing and unforgettable experience for all of us. I believe that none of us will ever forget how we saw the bacteria wriggling and the discomfort we felt from within after consuming the drink.
2 ways the visit helped in understanding the costing module:
What are direct and indirect labour?! What are direct and indirect materials?! How does all these linked up to the production of a product?! And how do you determine the behaviour of these manufacturing costs?
It has never been clearer to us then before. Now, we even had a real-life example to show us how to differentiate these costs. From the trip, we also understood that in a real-life situation such as the production factory, not all the required information are readily available and coherently presented. Thus, all of us would now be more appreciative of the scenarios given in the module since those information are more readily available and coherently summarised for tutorial discussion purposes!
Also, by looking at the production process of Yakult, we now have a better idea of how support departments work with the production department. For example, the Repair & Maintenance department plays a crucial role in ensuring the speedy restoration of the production process should the machine breakdown.
We thought that it was going to be an unlucky day for us as it was just too coincidental that the production process was halted due to the machine breakdown during our trip. But, it must had been a blessing in disguise for all of us who were there. We witnessed how the efficient recovery support from the Repair & Maintenance department could quickly restore the production process to reduce further delay which could cause the company to lose money! Kudos to the Repair & Maintenance department for their impressive support. We also witnessed how the Yakult production line works. (:P)
3 key learning points:
Through this trip, we had definitely benefited alot!
Firstly, we learnt about how Yakult is being manufactured! Afterall, it is a learning trip to Yakult!
Manufacturing the Yakult drink is not easy at all! It takes 7 days to ferment the milk solids at a desired temperature which was maintained and monitored cautiously. Any mistake during this fermentation stage would lead to wastage of the whole barrel of milk! Also, the R&D department has to work hard continuously to develop new flavours, as well as to improve the quality of their products in order to sustain Yakult's competitiveness in the market.
The speaker also shared with us how the daily production processes are being planned. In the morning, there would be a summary report on the required production volume for the day. Then the production department will produce the desired volume. By the late afternoon, the delivery men would report how many orders to be fulfilled and this would form the basis for preparing the summary report for the following day.
Secondly, we get to experience how the concepts introduced in Cost Accounting module are applied in the 'real' world outside of school! It is no longer as "dull and dry" as what we had read in books. We could now visualise the scenario better and this helped us to be able to work out the impact. From this trip, our tour around the factory allowed us to see how the production processes were being executed with our own eyes and how we can put what we learnt into good use. This would definitely give us a rough idea of how Cost Accounting principles and concepts are being practised in the real world.
Thirdly, we also understood from the trip that factories would usually practise Normal Accounting instead of Actual Accounting so that the costs and expenses could be estimated in advance to provide the decision-makers more timely information on the financial status and progress of the factory.
After having said so much, I guess some pictures would make our sharing even more interesting! Here you go. The pictures we had taken during this trip unfold themselves here ...
1) Yakult factory @Senoko
2) Any takers for this giant bottle of Yakult?
Done by: Jacqueline Wei, Lee Weiloong, Ng Eng Seng, Jeremy Chua & Ng Swee Sin (ACC, Yr 2)
It all started on a tuesday morning when an announcement for the Yakult trip was made during our first Cost Accounting lecture. We were tempted by the free bottle of Yakult to be given to those who signed up. Moreover, it would be an exclusive experience for us who could attend the excursion as there were limited vacancies for the Accountancy Group.
All these enticed us right from the start and we signed up immediately. By the end of the trip, we were glad to find it a truly enriching trip for us.
1 most memorable experience:
It is really hard to come up with 1 most memorable experience from the trip. Reason being... THERE IS JUST TOO MANY OF THEM!!
Well, one of our most memorable experience from the trip would be the ground-breaking news that everyone received during the talk: The little bottle of Yakult drink that we consume actually contains millions of live bacteria?! I repeat, LIVE BACTERIA!! Can you actually imagine the millions of live bacteria that moves in your body after you drank the Yakult?!
During the talk, we actually saw with our very own eyes how the live bacteria exists in a bottle of Yakult! (Of course, our eyes aren't that mighty. We saw them through a microscopic projection on the screen. (:D))
This was definitely a refreshing and unforgettable experience for all of us. I believe that none of us will ever forget how we saw the bacteria wriggling and the discomfort we felt from within after consuming the drink.
2 ways the visit helped in understanding the costing module:
What are direct and indirect labour?! What are direct and indirect materials?! How does all these linked up to the production of a product?! And how do you determine the behaviour of these manufacturing costs?
It has never been clearer to us then before. Now, we even had a real-life example to show us how to differentiate these costs. From the trip, we also understood that in a real-life situation such as the production factory, not all the required information are readily available and coherently presented. Thus, all of us would now be more appreciative of the scenarios given in the module since those information are more readily available and coherently summarised for tutorial discussion purposes!
Also, by looking at the production process of Yakult, we now have a better idea of how support departments work with the production department. For example, the Repair & Maintenance department plays a crucial role in ensuring the speedy restoration of the production process should the machine breakdown.
We thought that it was going to be an unlucky day for us as it was just too coincidental that the production process was halted due to the machine breakdown during our trip. But, it must had been a blessing in disguise for all of us who were there. We witnessed how the efficient recovery support from the Repair & Maintenance department could quickly restore the production process to reduce further delay which could cause the company to lose money! Kudos to the Repair & Maintenance department for their impressive support. We also witnessed how the Yakult production line works. (:P)
3 key learning points:
Through this trip, we had definitely benefited alot!
Firstly, we learnt about how Yakult is being manufactured! Afterall, it is a learning trip to Yakult!
Manufacturing the Yakult drink is not easy at all! It takes 7 days to ferment the milk solids at a desired temperature which was maintained and monitored cautiously. Any mistake during this fermentation stage would lead to wastage of the whole barrel of milk! Also, the R&D department has to work hard continuously to develop new flavours, as well as to improve the quality of their products in order to sustain Yakult's competitiveness in the market.
The speaker also shared with us how the daily production processes are being planned. In the morning, there would be a summary report on the required production volume for the day. Then the production department will produce the desired volume. By the late afternoon, the delivery men would report how many orders to be fulfilled and this would form the basis for preparing the summary report for the following day.
Secondly, we get to experience how the concepts introduced in Cost Accounting module are applied in the 'real' world outside of school! It is no longer as "dull and dry" as what we had read in books. We could now visualise the scenario better and this helped us to be able to work out the impact. From this trip, our tour around the factory allowed us to see how the production processes were being executed with our own eyes and how we can put what we learnt into good use. This would definitely give us a rough idea of how Cost Accounting principles and concepts are being practised in the real world.
Thirdly, we also understood from the trip that factories would usually practise Normal Accounting instead of Actual Accounting so that the costs and expenses could be estimated in advance to provide the decision-makers more timely information on the financial status and progress of the factory.
After having said so much, I guess some pictures would make our sharing even more interesting! Here you go. The pictures we had taken during this trip unfold themselves here ...
1) Yakult factory @Senoko
2) Any takers for this giant bottle of Yakult?
3) Warm Reception Area @Yakult
4) An array of Yakult products on display!
5) Certificate of quality and standard
6) Our free bottle of Yakult drink, let's gulp it down quickly!
7) Mr Yap in action ... extracting sample of Yakult drink!
8) The live bacteria wriggling and dancing under the microscopic view
9) Manufacturing Flowchart
10) Yakult up for grabs by our lecturers & students
Done by: Jacqueline Wei, Lee Weiloong, Ng Eng Seng, Jeremy Chua & Ng Swee Sin (ACC, Yr 2)
Sunday, June 22, 2008
When we first heard of this trip during the lecture, some of us were a bit unwilling and apprehensive about whether it is going to be a worthwhile trip. However, that was before the trip. Eventually, we had to convince each other to go for the excursion as we knew we did not have I & E lesson in the morning as our I & E teacher, Mrs. Sue Tan was also coming along with us.
1 most memorable experience:
One of our most memorable experience will be the display of the bacteria named “L. casei strain Shirota” after Dr. Shirota himself, under the microscope shown on the projector. This certainly caught our eyes as we were given a first-hand chance to observe the behaviour of the Minoru Shirota strain. We have never seen anything that tiny in size literally moving, thus making it an unforgettable and one-of-a-kind experience for us.
2 ways the visit helped in understanding the costing module:
Basically, this trip helped us to better understand the costing module as Yakult has a very straight forward chain of costs in manufacturing the drink itself. From cultivating the bacteria to making the mixture to bottling it up or to delivering it for sale, a cost is incurred in every single manufacturing step of the Yakult drink. Any other organisations out there would similarly have to incur some kind of expense, whether directly or indirectly, through buying of direct materials or to the cost of direct labour or to manufacturing overheads or period costs. All these costs are incurred as a result of their daily operations.
Another area that we had learnt during this Yakult excursion is that, every step and its associated cost in the manufacturing process needs to be recorded and monitored closely. This is absolutely necessary for the organisation to make strategic decisions based on the results, which would prove to be beneficial to the growth and development of the company in the long run. This ties in with what we have learnt as the four management processes: planning, directing operations, decision making and controlling.
3 key learning points:
Firstly, we learnt that the process of manufacturing a drink is very difficult and complicated. Research and Development work is involved to constantly monitor and improve the quality of the current product to satisfy the customers and to attract more customers.
At the same time, we realised that successful sales of a product is not just about procuring and processing of the raw materials to make a quality product. It also involves frequent maintenance of machinery and products in process. Manufacturers have to be stringent on the cleanliness of their staff, equipment and the environment, especially in the field of manufacturing food products. This might incur additional costs to the production. The total costs involved in the manufacturing of this product is relatively huge, compared to the low price of a single product since Yakult is being mass produced in a highly automated process.
Next, Cost & Managerial Accounting (CMA) as what we have learnt in school is barely what it is experienced out there in the world. Yakult itself already has so many processes that cover many key concepts learnt. Through this visit, we get to see how these key concepts were being integrated and "string together".
Lastly, such trip can let us better understand certain concepts and theories that may otherwise baffle us when first introduced in school. Seeing how things actually work allows us to understand their applications in the business world thoroughly and easily. Hence, it made the learning of CMA easier and make us realised that it is both meaningful and useful to learn CMA.
1 most memorable experience:
One of our most memorable experience will be the display of the bacteria named “L. casei strain Shirota” after Dr. Shirota himself, under the microscope shown on the projector. This certainly caught our eyes as we were given a first-hand chance to observe the behaviour of the Minoru Shirota strain. We have never seen anything that tiny in size literally moving, thus making it an unforgettable and one-of-a-kind experience for us.
2 ways the visit helped in understanding the costing module:
Basically, this trip helped us to better understand the costing module as Yakult has a very straight forward chain of costs in manufacturing the drink itself. From cultivating the bacteria to making the mixture to bottling it up or to delivering it for sale, a cost is incurred in every single manufacturing step of the Yakult drink. Any other organisations out there would similarly have to incur some kind of expense, whether directly or indirectly, through buying of direct materials or to the cost of direct labour or to manufacturing overheads or period costs. All these costs are incurred as a result of their daily operations.
Another area that we had learnt during this Yakult excursion is that, every step and its associated cost in the manufacturing process needs to be recorded and monitored closely. This is absolutely necessary for the organisation to make strategic decisions based on the results, which would prove to be beneficial to the growth and development of the company in the long run. This ties in with what we have learnt as the four management processes: planning, directing operations, decision making and controlling.
3 key learning points:
Firstly, we learnt that the process of manufacturing a drink is very difficult and complicated. Research and Development work is involved to constantly monitor and improve the quality of the current product to satisfy the customers and to attract more customers.
At the same time, we realised that successful sales of a product is not just about procuring and processing of the raw materials to make a quality product. It also involves frequent maintenance of machinery and products in process. Manufacturers have to be stringent on the cleanliness of their staff, equipment and the environment, especially in the field of manufacturing food products. This might incur additional costs to the production. The total costs involved in the manufacturing of this product is relatively huge, compared to the low price of a single product since Yakult is being mass produced in a highly automated process.
Next, Cost & Managerial Accounting (CMA) as what we have learnt in school is barely what it is experienced out there in the world. Yakult itself already has so many processes that cover many key concepts learnt. Through this visit, we get to see how these key concepts were being integrated and "string together".
Lastly, such trip can let us better understand certain concepts and theories that may otherwise baffle us when first introduced in school. Seeing how things actually work allows us to understand their applications in the business world thoroughly and easily. Hence, it made the learning of CMA easier and make us realised that it is both meaningful and useful to learn CMA.
In conclusion, we were generally pleased with what we have gained and learnt from this excursion and wish that the School of BA would organise more of such trips for us so that we can relate the things that were taught in school to real world applications.
With thanks to all of our teachers who have brought us there.
Done by: Lin MingKai, Lui Jia Huey, Lee Teck Hui, Lim Hui Huang & Leonard Cheng (BS, Yr 2)
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