Group project on Coca-Cola Pakistan's operations. The group discusses Coca-Cola's mission, strategies around inventory management, supply chain management, quality control, forecasting, capacity planning, process layout, and aggregate planning. Coca-Cola aims to shift to a just-in-time inventory system and coordinate production between plants to improve cash flow and production efficiency. Quality management is a major focus, with strict regulations and inspections of materials and final products.
Group project on Coca-Cola Pakistan's operations. The group discusses Coca-Cola's mission, strategies around inventory management, supply chain management, quality control, forecasting, capacity planning, process layout, and aggregate planning. Coca-Cola aims to shift to a just-in-time inventory system and coordinate production between plants to improve cash flow and production efficiency. Quality management is a major focus, with strict regulations and inspections of materials and final products.
Group project on Coca-Cola Pakistan's operations. The group discusses Coca-Cola's mission, strategies around inventory management, supply chain management, quality control, forecasting, capacity planning, process layout, and aggregate planning. Coca-Cola aims to shift to a just-in-time inventory system and coordinate production between plants to improve cash flow and production efficiency. Quality management is a major focus, with strict regulations and inspections of materials and final products.
Group project on Coca-Cola Pakistan's operations. The group discusses Coca-Cola's mission, strategies around inventory management, supply chain management, quality control, forecasting, capacity planning, process layout, and aggregate planning. Coca-Cola aims to shift to a just-in-time inventory system and coordinate production between plants to improve cash flow and production efficiency. Quality management is a major focus, with strict regulations and inspections of materials and final products.
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Group Members:
Ammara Nawaz (03)
Noor Fatima (04) Adeeba Mukhtar (10) Iqra Shafqat (14) Introduction Organizational structure Main product line and brands Mission Statement and vision statement:
• “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.” • “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.” What is business strategy and operational strategy of company?
• CCBPL is currently working on shifting to Just-in-
Time inventory system with days based stocks to release cash flows freezed in warehousing. The input buying is based on annual bottles produced. Co-ordination between different plants across Pakistan is necessary as they have to provide production buffer to each other like presently Lahore Bottling plant is covering Faisalabad’s production schedule too while the plant is undergoing renovation. 2.2 Product design and process selection Supply chain management: • Supply chain is critical to Coke’s operations • In each assembly line, there is one supervisor and 6-7 workers working for 8 hours a day • From Pre-form of bottle to the plastic packing sheet wrapped around the crates. • Supply chain team is responsible what amount of supply they hold • The plant has 2-3 suppliers of every raw material Supply chain management: (cont) • They only hold raw materials for 2-3 days and inventory is restocked every day – Coca cola does not hold large inventory of raw materials • In case of any problem, production lines can be run for 1 extra day and workers are assigned lines and paid double the wages
• Their main raw material supply includes
– Sugar – Co2 gas – Plastic sheet – Resin – Tags – Crown – Bottle cap Supply chain management: (cont) • Other than supply of raw materials, Rani Juice is also being supplied from abroad, along with the cans for other beverages
• Coca Cola also has an Operational Excellence (OE)
program strategy for different problems that occur in Supply chain management and inventory management.
• OE is the combo of Mean, Six Sigma and Best
practices. Outsourcing:
• Coca cola provides third party
plants with their Cola for filling • Coca-Cola Pakistan outsource its cans’ filling, which also known as Toll filling • They are outsourcing 250 ml and 350 ml cans from third party and being filled in Sialkot and Karachi • Coca cola has recently introduced a Juice named Cappy and is being outsourced to a third Party in Karachi Total quality management • Immense emphasis on quality management – Stringent regulations – Only products conforming to those regulations are deemed marketable – Rest are wasted and the plastic recycled
• Quality control department inspects the quality of
incoming materials as well as the final product being sent out for distribution
• Conducts unannounced audits of the facilities to
ensure effective product safety and quality standards are being followed at all times Total quality management(cont) • Integrated quality management technology in their production lines
• Each preform, syrup, labels, and the final bottle
passes through a series of lasers which tests its quality
• These requirements are developed to exceed ISO 9001,
ISO 22000 standards Total quality management(cont) • QM department consists of ten individuals responsible to check the quality of the raw materials brought to the plant
• Optimizing its efficiency, Coke has reduced the number of
scientists per line from two per line to one per two lines • Line engineers ensure that line is producing quality products meeting all quality criteria
• Factory hygiene is maintained according to the Pakistan
Food Authority Forecasting Combinati on of top down and bott om up approach Forecasts based on factors such as: • Historical data • Economic parameters • Seasonal variation • Festivals, ceremonies, etc. • Weekly reviews to adjust monthly forecasts Forecasts are region-wise, they are further broken down into cities, towns and villages by sales managers. Forecasting: (cont) •Coca-Cola Company uses forecasting principles and methods. Sales forecast In a period of the next five years. •Coca-Cola Company is expecting to increase its sales at an average rate of 6.16% annually. The current year (2016), the sales earnings will decrease by -3.46 over last year. •The next year (2016), the sale of the company are expected to grow by 5.56% over the current year's forecasted sales. Capacity planning decision • Capacity planning is the process of determining the production capacity needed by an organization to meet changing demand for its products. • Operations Planning Process is primarily focused on maintaining and improving forecast accuracy also including aggregate market planning, customer order management, master scheduling and detailed weekly planning. • This typically involves a five-step monthly process comprised of : data gathering and review, demand planning, supply planning, meeting with patners and executives. Designing process layouts Layout Planning is the planning and arrangement of all
process about the machines, tools, workstations, customer
service, material storage areas, aisles, offices and computer
rooms within a facility.
Coca Cola Company is fallowing the standardized process
for production which is produce a large number of difference
types of beverage. Designing process layouts(CONT)
This technique can let a company to
improve their working efficiency and also can improve the quality of the product.
This technique can let a company to improve their working efficiency
and also can improve the quality of the product. Work system design The Coca-Cola Company extraordinary heritage, our leading brands and the global scale of what we do; The challenge of meaningful work - our unique global system offers constant opportunities to develop world- class skills and a truly international career; A unique culture where people convert their passion into action; The kind of competitive compensation you would expect from a world leader. Inventory management Coca-Cola Pakistan is one of those organizations that cannot Compromise on the essence. 2 years back Inventory management was different as they were buying Raw material in bulk but they are now shifting their production to Just in Time. Coca cola only keeps reserve inventory of 2-3 day. . The Production in Faisalabad has stopped due to the construction of new Plant. Approach for aggregate planning
Aggregate planning is a process by which
companies determine and prioritize strategic initiatives. These initiatives include what markets to enter, what products to introduce and how to compete with other companies more effectively. the company should enter, how to steal market share from competitors and how to encourage more consumers to use Coca-Cola's products.