FAR EASTERN UNIVERSITY

THE COCA-COLA COMPANY

Antonette Jay Aguillon

Paul Matawaran

Eunice Montanez

Carl Anthony Maya Ramirez,

Alexa Sarte

Vinessa Simangan
 Table of contents

I. Overview

II. Introduction

III. Operations activities

a. Facility location

b. Facility layout and design

c. Technology

d. Quality management

e. Inventory management

f. Design

IV. Description of the supply chain

V. Recommendation

Chapter 1: Introduction to Production and Operations Management.

Dr. John Pemberton started Coca-Cola, an American global beverage firm, on May 8,

1886. Coca-two Cola's key components, coca leaves and kola nuts, gave the drink its name.

Presently, 94% of people can name Coca-Cola, which is also known as the most valuable brand

in the world and is frequently linked to joy. Actually, Coca-Cola translates to "Delicious Bliss" in

Chinese. Top organizations offering multicultural business opportunities include The Coca-Cola

Corporation. Moreover, it is the biggest beverage company in the world. Thousands of owners

and investors worldwide own stock in the Coca-Cola Corporation, a publicly traded firm whose

shares are traded on the New York Stock Exchange.

Around 5 million shares, or 24.6% of the total shares of the firm, are owned by these

stockholders. FEMSA is the owner of the Coca-Cola Corporation through institutional

shareholding. Over 10 million shares, or about 50% of the total shares in the corporation, are

owned by FEMSA.

NAME

A network of fully owned Coca-Cola subsidiaries operating under the Coca-Cola brand

name is the other entity that owns Coca-Cola. To produce the most well-known product in the

world, The Coca-Cola Company must use the highest quality processes and set standards that

ensure the production of a standardized product that meets consumers' high expectations each

and every time they drink a bottle or can of Coca-Cola. The subsidiary companies own

approximately 6 million shares, or 36% of the total shares. The core of this method is Total

Quality Management, which places constant emphasis on meeting quality requirements correctly

each time while also always looking for new avenues to enhance performance.
NATURE, BACKGROUND, HISTORY

The Coca-Cola Company had been chosen by the researchers for this Production and

Operations Management Improvement Plan. We chose Coca-Cola because we want it to improve

and expand its production capacity. Coca-Cola has been producing their products for a very long

time. They had developed and acquired competitive advantages in manufacturing, marketing,

and distributing their products all over the world in recent years, but just because they have an

advantage does not mean that they will always have it. Other Coca-Cola competitors, such as

Pepsi, have begun to improve their manufacturing and operations.

Chapter 2: Competitiveness, Strategy and Productivity

Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company

and serves as the standard against which we weigh our actions and decisions

· To refresh the world

· To inspire moments of optimism and happiness

Vision

"Our vision serves as the framework for our Roadmap and guides every aspect of our business

by describing what we need to accomplish in order to continue achieving sustainable, quality

growth

PURPOSE.

· People: Be a great place to work where people are inspired to be the best they can be
· .Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy

people's desires and needs

· .Partners: Nurture a winning network of customers and suppliers, together we create mutual,

enduring value. helping build and support sustainable communities

· Profit: Maximize long-term return to shareholders while being mindful of our overall

responsibilities.

· Productivity: Be a highly effective, lean, and fast-moving organization

Coca-Cola is both one of the most successful brands and the third most valuable in the

world. Through the gray market, its products are available in every nation, including Cuba and

North Korea. The company has significantly increased its global brand recognition thanks to a

customized marketing strategy. Coca-Cola, like other businesses, bases its marketing strategy on

the well-known "4Ps" marketing mix: Price, product, promotion, and location Leadership

structure The Coca-Cola Company has a well-planned leadership structure, which is critical to

the operation's long-term viability.

ORGANIZATIONAL STRATEGIES

Coca-Cola owns over 400 brands in the global market, ranging from carbonated to

non-carbonated drinks. As the world's most famous brand, Coke, other products bearing the same name

have been developed. Mikel (2007) refers to this as a product line extension. Coke has various variants

Cherry Coke, Coke Diet, and so on. Fanta Orange, Fanta Blackcurrant, Passion, and other flavors are

available. Mello Yello, Qoo, Lift Apfel, Kapo, Barq's KMX, and other well-known brands are also owned

by the company. Coca-Cola spent $1.9 billion on marketing all of its brands in 2006, according to the
company's brand analysis, making it the world's highest spender on marketing initiatives. Coca-cola

dominates the world with its solidified branding and marketing to the community. Coca-cola continuously

provides the market with timely beverages according to the current trend.

TACTICS

With its mission and purpose, the company takes pride in having one of the most powerful brand

names in the global soft drinks market. This has been achieved through existing marketing strategies and

product promotions, as well as the use of other marketing techniques that captures the minds of the

consumers. For example, the company divides its marketing budget among the designated bottlers in

various markets. This increases global brand awareness, resulting in strong brand equity that subsidizes

future marketing expenditure. Through its marketing efforts in the form of billboards and commercial

breaks , the company has been able to create an image in the minds of consumers that any Coca-Cola

branded drink has the ability to refresh you when you are tired or in a bad mood. They also use credible

artists to promote their brand, such as famous athletes. Coca-cola is also actively involved in sponsorship,

such as soccer games which increase their exposure and incorporation to the society.

SWOT

STRENGTHS WEAKNESS
-Distinct branding identity -There’s no food business developed by
-Dominates the entire world Coca-cola yet unlike other companies.
-Loyalty from consumers -High level of sugar
-Sponsored by most corporations -No development in terms of developing new
-Ventured to other beverages and not only taste in beverages.
limited to Coca-cola

OPPORTUNITIES THREATS
-Host various sponsorships on athletic games -The beverages are considered not good for
-Can be seen on various american films someone’s health.
-The company’s popularity increases the -Unsafe consumption of kids 7 years old
chance to put unpopular beverages to the below.
market. -Biggest competition, with Pepsi.
 -Consumer in this generation prefers healthy
beverages which can lead to loss in loyalty.
-Recurring inflation causes decline in market
share.

CHAPTER 3: FORECASTING
 The Coca-Cola Company had been chosen by the researchers for this Production and

Operations Management Improvement Plan. We chose Coca-Cola because we want it to improve

and expand its production capacity. Coca-Cola has been producing their products for a very long

time. They had developed and acquired competitive advantages in manufacturing, marketing,

and distributing their products all over the world in recent years, but just because they have an

advantage does not mean that they will always have it. Other Coca-Cola competitors, such as

Pepsi, have begun to improve their manufacturing and operations.

Pepsi has begun to make changes to its operations and production. The company

specializes in carbonated beverages, sports drinks, juices, coffee, and tea. The firm's

manufacturing processes are primarily concerned with primary inputs, system inputs, and system

outputs. As a result, we are now attempting to devise a strategy that will assist Coca-Cola in

maintaining or gaining an advantage over their competitors. Additional activities and processes,

such as packing, delivery, filling, and storage facilities, are included in the aforementioned

processes. We would also like to focus on the facilities that the organization uses to ensure that

the factories are being used to their full capacity.

CHAPTER 4: PRODUCT DESIGN AND REDESIGN

More than 900 plantations and bottling facilities can be found in Coca-Cola's global facility

locations. The majority of these facilities focus on providing and supplying their products

close to them. Because of this, Coca-Cola would be able to save money on shipping their

products from one country to another by simply setting up at least one plantation in each

country or region. This would allow the company to quickly replenish supplies when they

run out

b. Facility layout and design

There are ten departments in the Coca-Cola Company's facility layout and design:

Ingredient department:The location where all of the beverages' ingredients are delivered is

the Ingredient Department.

Department of Washing and Rinsing: This is where the bottles are cleaned and disinfected

before being used.

Filling Stations: Where the cleaned bottles are filled with beverages, this station

requires high accuracy, to maintain the same quality for each beverage they produce.

Capping Station: Where the bottles are sealed with a cap, different types of bottles use

different types of caps

Labeling Station- Where the bottle are labeled by programmed machines.

Coding Station- Where the bottles are marked with special codes specific to a certain Bottle.
 Inspection Department- Where the beverage inside the bottles are inspected by Coca Cola

labs to ensure it is in quality standards.

Packaging Department- Where all the Coca-Cola Beverages are packed and ready to be

shipped

The facility layout and design of Coca-Cola Company are designed for a smooth workflow

for every station. It assures that the beverages are high quality or the standard quality of

Coca-Cola, workers, and machines are used efficiently and designed for the safety of its

workers.

C. Technology

Technology is an extremely important to manufacturing businesses. The Coca-Cola Corporation,

as the leading producer of non-alcoholic beverages, must use technology to produce goods in

large quantities. The Coca-Cola Company's continued success is due to their commitment to

incorporating new technologies and innovations into their products. They believe that the

innovation process will result in increased sales overall. They took chances with numerous

innovations, such as their packaging, which has a distinct shape. It distinguishes their product

and differentiates them from other beverage brands. Coca-Cola Corporation, as a sustainable

company, is constantly innovating its bottles to make them greener and have a lower carbon

footprint. Technology is critical to the success of industrial businesses. The Coca-Cola

Corporation, the industry leader in nonalcoholic beverage production, relies on technology to

produce goods in large quantities. The Coca-Cola Company's ongoing success can be attributed

to their commitment to incorporating cutting-edge technology and advancements into their

products. They believe that the innovation process will lead to increased sales. They took
chances with several of their innovations, such as their packaging, which has a distinct shape. It

distinguishes and separates their product from that of other beverage brands. Coca-Cola

Corporation, a green company, is constantly innovating its bottles to make them more

environmentally friendly and to reduce their carbon footprint. Technology is required for

industrial enterprises to succeed. The ability of the Coca-Cola Corporation to produce goods in

large quantities and lead the non-alcoholic beverage market is dependent on technology. The

Coca-Cola Corporation has maintained its success as a result of its commitment to incorporating

cutting-edge technology and improvements into their products. They believe that the innovation

process will eventually result in increased sales. They took a risk with a number of their

innovations, such as their packaging, which has a distinct shape. It distinguishes their brand and

product from other beverage manufacturers. Coca-Cola Corporation is constantly innovating its

bottles to reduce their carbon footprint and make them more environmentally friendly.

D. Brand

Coca-Cola has spent over 130 years developing its recognizable brand image. The contour bottle

was the first step after the Spencerian script. However, there is one symbol, known as "the red

disc," that makes it more well-known. Customers find the design practical and appealing, and it

provides a strong style to develop and position a company's product. The designer must

understand how to invest in compliance, style, shape, and durability. Customers regard functional

design as pleasing to the eye and simple to open and operate.

E. Inventory management

Coca-Cola will not compromise its essence because the company has built a strong

reputation over the course of its operations and is the first choice of consumers looking for a
high-quality beverage. As is common knowledge, Coca-Cola is a large company that serves a

diverse clientele worldwide. As a result, they ensure that their products are properly managed in

their inventory. They keep their finished goods in a facility in their factories, but they also

promptly ship them to retailers and distributors. They used to buy raw materials in bulk, but now

they use the idea of just-in-time inventory, which means they only order the raw materials they

need before they run out. This makes production more efficient and reduces production/inventory

waste, which lowers inventory costs. They also were able to shrink their warehouse because

fewer inventories were being held or stockpiled because they were only holding them for two to

three days. In addition, if there is a shortfall in supply, they contact the plant closest to them to

satisfy distributor and retail demand.

F. Design

1. Bold simplicity- It is the straightforward Coca-Cola quality and the elimination of the brand's

excessive designs.

2. Real authenticity- Having discipline helps Coca-Cola grow. It provides an extraordinary

route to a more fulfilling future that defines itself.

3. The power of RED- Coca-Cola is a driven and influential business. The majority of

consumers associated the red and white color scheme with Coca-Cola, and it is frequently

used on vending machines, cars, trucks, signs, packaging, coolers, and dispensers.

4. Familiar yet surprising- Coca-Cola demonstrates its independence in an unexpected

discovery adventure.
 The diagram above shows the processes involved in creating Coca-Cola beverages from

conception to consumer delivery, as well as the recycling of their packaging.

1. Ingredients

The production of their raw materials, primarily sugar, caffeine, and cola plants, is the first step

in their supply chain management. They obtain their ingredients from various farms; thus, the

technologies used vary depending on the size of the farm; some rely on high-end tractors, while

larger farms use aerial application for pesticide spraying. Farmers, of course, are involved in this

step.

2. Packaging

Only a select few individuals are allowed to simultaneously know the exact recipes for

Coca-Cola's famous secret ingredients. The packaging process, which involves combining the

raw ingredients into a formula and distributing it to the manufacturer, would come after

obtaining the product's raw materials. Researchers cannot exactly specify the exactingredients

that are put into the formula and bottles, because of the secretive nature ofthe organization about

its ingredients (and for obvious reasons), however, what they doknow is that carbon dioxide,

sugar, and the natural essence of coca leaf are put toproduce the formula

3. Manufacturing

Coca-Cola manufacturing includes the final step of packaging the previous step's formula, which

is then put into their recognizable signature bottle. Machines that wash and rinse the bottles as

part of this process ensure that they are sanitized. To get rid of the impurities in the water,

filtering and disinfection systems are also used. The previously packaged formula is then
combined with the water, sugar, and other ingredients. Thesyrup is exposed to high-pressure

carbon dioxide using other cutting-edge technologies. All of Coca-Cola's manufacturing facilities

use a variety of automated equipment, including conveyor belts, which are closely monitored and

supervised by skilled manual labor.

4. Distribution

Businesses like Coca-Cola, whose products are in high demand around the globe, choose to work

with bottling partners who produce, package, market, and distribute their goods to retailers and

vending partners. Coca-Cola's distribution strategy is determined by demand and consumption

rates. To ensure quick and simple distribution, they choose to locate their manufacturing

facilities and warehouses close to their target markets. The location of the manufacturing

facilities affects the way Coca-Cola is distributed. For instance, in third-world nations like the

Philippines, people use trucks and other unconventional methods of distribution, whereas in

first-world nations, the distribution system is much more formal.

The pre-sale system, the traditional route system, the telemarketing system, and the hybrid

distribution system are the various distribution models that Coca-Cola employs. Pre-sale systems

separate the functions of sales and product delivery. When the goods are moved from the

manufacturing facility to the primary distribution centers, this occurs. Pre-sale processing takes

place here in order to serve their customers. The order will be transported to the point of sale

after processing. The traditional route system is another model. Under this system, the person in

charge of delivering the goods conducts direct sales using the truck's stock. The telemarketing

system, which can be used in conjunction with the pre-sale system, is the third model.

5. Refrigeration
The stage in the supply chain where products arrive at various points of sale is refrigeration. The

chilling effect of Coca-Cola drinks is renowned for quenching customers' thirst, so this stage is

crucial. These points of sale could be wholesalers, retailers, or vending partners. Retailers

include cafes, theaters, airlines, shops, supermarkets, and a lot more. On the other hand, the

vending partners are those who own vending machines that sell Coca-Cola products.

6. Consumption and recycling

The stage in the supply chain where products arrive at various points of sale is refrigeration.

The chilling effect of Coca-Cola drinks is renowned for quenching customers' thirst, so this stage

is crucial. These points of sale could be wholesalers, retailers, or vending partners. Retailers

include cafes, theaters, airlines, shops, supermarkets, and a lot more. On the other hand, the

vending partners are those who own vending machines that sell Coca-Cola products.

Facility laytout and design

Coca-Cola's facility layout and design are remarkably consistent across all of its facilities. To

ensure the effective production of high-quality beverages, it is laid out and designed with

equipment and personnel at each station. The Coca-Cola Company is one of the biggest, if not

the biggest, beverage companies in the world, and because of their bottles, they generate a lot of

plastic waste. To help reduce plastic waste globally, I advise Coca-Cola to ban or remove all

plastic bottles from its facilities and switch back to using standard bottles.

CHAPTER 5: QUALITY MANAGEMENT

their rivals. Coca-Cola's approach to quality management was prescriptive and centralized for a

long time. The first iteration of The Coca-Cola Quality System (TCCQS) was created in 1995 as

a result of the company's need to satisfy local tastes and maintain consistent quality while rapidly

introducing new products. TCCQS continues to keep up with new regulations, quality

management methods, industry best practices, and market conditions. In TCCQS, each unit of

the organization has a business plan that addresses its goals and encourages the organization's

ongoing improvement as well as the efficiency of the quality management system. This includes

establishing metrics that make it possible to compare performance to goals. It is the

responsibility of each unit's top management to ensure that the business plan is distributed to all

employees. In order to assist with the plan's achievement, it is the responsibility of each

employee to comprehend the business plan, its objectives, and metrics. Food safety is becoming

increasingly important not only in manufacturing but also throughout the entire supply chain.

Coca-Cola further ensures that TCCQS adheres to the most recent, stringent manufacturing

practices by enhancing their requirements. The TCCQS framework for environmental and safety

stewardship is centered on customer and consumer satisfaction.

Coca-Cola already has a successful and effective quality management system in place, but

because they use their own quality control system, new hires might not be familiar with it. To

combat this, each plant should implement the required programs to establish a connection

between the quality system and new hires. Another suggestion is that their globalized quality

management system should have extensions to accommodate different working environments.

These modifications must adhere to TCCQS's fundamental guidelines.