CIA 1

OPERATION MANAGEMENT- MBA 236

A RESEARCH BASED ASSIGNMENT

By

JUSTIN JOSE JOHN (1927010)

MAROUF HUSSAIN (1927015)

ANSHITA PACHORY (1927029)

B R L DEDEEPYA (1927033)

NAYANA R NAIR (1927040)

VIGNESH M (1927053)

Institute of Management
CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru
SEPTEMBER 2019
 BOTTLING PLANTS

About the industry

A bottling company is a commercial enterprise whose output is

the bottling of beverages for distribution.

Many bottling companies are franchisees of corporations such as Coca-

Cola and PepsiCo who distribute the beverage in a specific geographic region.
Large companies like The Coca-Cola Company sell their product to bottlers like
the Coca-Cola Bottling Co. Consolidated, who then bottle and distribute it.
A bottler is a company that mixes drink ingredients and fills up cans and bottles
with the drink. The bottler then distributes the final product to
the wholesale sellers in a geographic area.

Complementing this universal availability, much of the soft drink category’s

growth can be attributed to convenient packaging. As consumers have become
increasingly mobile, they have opted for easier-to-carry packaged goods. With
the advent of the aluminum can and, more recently, the re-sealable plastic bottle,
soft drink packaging has become lighter and more portable.

Stringent quality-control standards and state-of-the-art water treatment processes

also have afforded the soft drink industry a high degree of confidence regarding
product purity. Moreover, the manufacturing or bottling plants that produce soft
drinks have evolved into highly mechanized, efficient and spotlessly clean food-
processing facilities
 About the Company

• Bovonto is a soft drink popular in Tamil nadu, India.

• It is manufactured and marketed by Kali Mark (Kalis Sparkling Water (P)

Ltd.), which has offices and bottling plants at several locations in Tamil nadu.At
present, it has put up a distribution point at Chennai.

ABOUT THE BRAND :

Kali mark is a regional-level player and is one of the very few indigenous soft-
drink manufacturers in India that survived the onslaught of take-overs by
multinational giants Pepsi and coco-cola, during the mid-1990s. At that time ,
Kalimark made a strong ground in Tamil Nadu with almost all small players out
of the game. Recently Kalimark group has reinvented itself with modern
technology for production. The shape of the Bovonto pet bottle was redesigned
and production was increased.

OPERATIONS AND MARKETING STRATEGIES OF KALI MARK

• Over the years, Bovonto has contested against the Indian players such
as Parle, and other MNCs for market share. When Pepsi and Coke
entered the market, they sold 500 ml bottles at Rs 5, while Bovonto
sold for Rs 8. Kalimark maintained its price. Kalimark is now a Rs 100
crore brand.

• Bovonto does not do aggressive marketing, they mostly rely on word

of mouth. Recently to increase their brand penetration they started
sponsoring TV shows. Bovonto currently presents reality show on
Vijay TV. The parent company of Bovonto has manufacturing units at
eight places in Tamil nadu.The company lacks economy of scale, but
the strengths of the company include great product, a popular brand
and strong distribution
Product Portfolio

BOVANTO : The most famous product in this brand. With a popular tag line “son of
south”. The drink is mildly carbonated and has a tangy GRAPE-COLA taste.

TIGO :

Oranges in the pet bottles !! And that’s called Tigo!! Gulp this drink and energy boost
is what you will be loaded with. Give yourself an orangy bonaza with TIGO.

VIBRO :

t’s the Kalimark’s rose flavored drink formulated such a way, it never leaves your
tastebuds tickled. The essence of rose petals is what you would relish with Vibro

ZIMZO:

This zingy Zimo is certain to explode in your mouth and you could breathe new life
into a Fresh taste, citrus flavored ZYPSY :

The essence of handpicked mangoes from the best yielding farms, turning into a
magical juice creating a spirit in your soul is what we call Zypzy.. Zypzy - For the
mango lovers.
 Manufacturing Process Followed By Bottling Plants

These are the following steps followed by bottling plants for production purposes:

ingredients
preform preform blown
brought to the
prepared to bottle
plant

bottle filled with

laser inspection bottle sealed
the beverage
for quality with closure
prepared

labelling of bottles grouped

encoding
bottles in form of cases

plastic wrapping-
moved to cases packed
shrinkage and
warehouse together
cooling

product
collected by
distributors
The process carried out by a water bottling plant includes three or four steps, depending on your
decision to produce carbonated water or not:
 
 Cleaning: cleaning of the empty bottles is probably the most important step in a water bottling
plant. The reason is simple: a proper cleaning is the only way to grant hygiene and safety to
the water you are bottling. It would be a great mistake to sterilize water before the bottling, and
then contaminate it just in the final process of the production. Therefore, choose only the best
providers as far as cleaning machines are concerned: quality machines are made only with the best
materials, resistant to rust and corrosion, and can be sanitized whenever you need.

 Filling: filling the bottles with water is obviously the aim of any water bottling plant. This
process is quite simple: some grippers grab the bottles, while the nozzles over them pour the water
into them. If you choose to bottle your water into glass only, you would better focus on a machine
specifically designed for glass bottles; on the other hand, the same suggestion can be made if you
fill the water in PET bottles only. In case you choose, instead, to produce both glass and PET water
bottles, you can rely on a machine that supports both of them.

 Saturating: this process is included in a water bottling plant only if you have to produce
carbonated water. You will have to provide, then, a saturation unit that could dearate the water and
carbonate it with a device that directly injects the CO2 into the liquid. 

 Capping: capping is the final step performed by a water bottling plant. The bottles are moved up
to a capping machine that provides each of them with a cap and seal the water into protected
atmosphere. After the capping, your water is ready to be put on the market and sold locally or on a
higher scale.
 Bottlenecks and Their Solutions

1) Interruptions on the canning line

Interruptions on the canning line were causing a chain reaction of bottlenecks in downstream processes.
This resulted in large blocks of downtime, which began to drive up labor costs and prevented
PepsiAmericas from meeting its high throughput goals.

In order to eliminate the bottlenecks and stoppages, it needed an accurate picture of the canning process.
This meant up-to-the-minute access to real-time information to help management capture the short
intervals of downtime that were not accounted for. To do so, it needed a sophisticated data-acquisition
system that could gather information from the entire line and present it to management in a usable
format for better decision-making.

SOLUTION:

The solution provides a deeper view into a production line’s operational processes by aggregating and
contextualizing key performance data to help correlate the variables that affect overall equipment-
effectiveness (OEE). The system provides operators and managers with on-demand access to downtime
monitoring and alerts, production performance analytics and equipment operating metrics. 

2) Warehousing, Freight Management and Distribution Operations

When manufacturers don’t have full visibility to their inventory, they face the problems of either
running out of stock at the wrong time or carrying too much stock and thus decreasing cash flow while

increasing expenses to warehouse extra materials .

SOLUTION:

Outsourcing warehousing, freight management and distribution operations helps in achieving 3 main
objectives. This will help to improve customer service by responding even quicker to changing market
demands while at the same time reducing supply chain costs as well as the environmental impact of its
transportation activities.
Example: By integrating PepsiCo into Kuehne + Nagel’s Dutch distribution network, fewer kilometres
will be needed to transport salty snacks, cereals and nuts from Belgian and Dutch manufacturing sites to
the distribution centre in Utrecht and further to retailers throughout the Netherlands. In addition, Kuehne
+ Nagel will develop a new state-of-the-art, multi-user FMCG (Fast Moving Consumer Goods) campus
in Utrecht, equipped with high bay storage and automatic layer picking during the first year of the
agreement.

3) Safety And Logistics Solutions

Various vehicle groups – employees, visitors, suppliers, contractors etc.- want to gain access to the site
at various times and for a wide range of reasons. This causes added safety concern to the organization’s
functions. Lack of monitoring of vehicles and the employees hinder the smooth traffic flow. This leads
to increased execution time and thus lower productivity.

SOLUTIONS:

Vehicle and driver identification systems from systems such as Nedap Identification Systems play an
important role in this all-in-one security and logistics solution. Such software based solution, which
integrates access control with traffic flow management.

The system takes the dynamic aspects of the site into account. Various vehicle groups – employees,
visitors, suppliers, contractors etc. - want to gain access to the site at various times and for a wide range
of reasons. The system monitors all vehicle related activities at the site in real-time and allows
authorized vehicles and drivers easy access at several locations throughout the site.

4) Interruptions in the filling process

To prevent oxygen intake or microbiological contamination of the beverage, a major objective is to

prevent interruptions of the filling process. Besides for internal reasons, the filling aggregate will stop
operation if there is a lack of input, i.e. bottles (apart from the beverage itself and caps), or a tailback of
filled bottles preventing further output.

SOLUTION:
In order to avoid that each disturbance of single machines in the line results in a filler stop, several
conveyor belts are designed as buffers, which can provide a continuous supply and output of other
machines and, in particular, the filler, in conjunction with a general operation principle: machines and
conveyors upstream and downstream from the filler operate at higher throughput rates than the filler.
This principle is usually the only global one; there is no global control, and the machines are controlled
individually.

5)Labelling bottlenecks

INTEGRATED LABEL PROCESSES PROMOTE QUALITY AND EFFICIENCY

When labeling is integrated with enterprise business processes, these processes are simplified and non-value
added activities are reduced. With Loftware, companies can perform their critical manufacturing, packaging, and
distribution tasks without having to access separate labeling systems or worry about keeping labeling
synchronized with process or operational data.
 RELATED EXAMPLES

1)FROOTI:

Frooti, the India’s leading mango juice company, has built a solid reputation on the quality and
purity of its products. Frooti is the largest-selling mango flavoured drink in India. It is the flagship
product of and the most successful drink offered by Parle Agro India Pvt. Ltd.

CHALLENGE:
One of the most analysed bottleneck problems in Frooti was in the filling process of ascorbic
acid which is a core content used in the production of frooti. ASCORBIC ACID, which is used in the
filling operation, also can create health concerns. If filling rooms and adjacent work areas are not
adequately ventilated, ASCORBIC ACID accumulation can displace oxygen in employees’ breathing
zones. Facilities should be monitored regularly for elevated ASCORBIC ACID levels and, if they are
detected, ventilation systems should be inspected to determine the cause for this occurence. Additional
ventilation may be required to correct the situation. Earlier manual monitoring by people was done to
check the amount of ASCORBIC ACID used in the process. It was very difficult and a simple mistake
will lead the entire process to go in vain. It was hazardous too. It would be better to use some
technological related systems to monitor this process.
SOLUTION:
Hence, they came up with a solution to this problem. Technological advances have made
available better sound-absorption material for insulating or muffling motors and gears in most
equipment. A new monitoring device that detects and notifies using an alarm when the boiling point of
ascorbic acid is reached. Hence employees will be able to stop the filling process in the correct time with
the correct propotion. Still, given the function and size of filling equipment, noise levels generally
exceed 90 dBA in this area. Employees who are exposed to this level of noise for an 8-hour weighted
average must be protected. Good hearing protection programmes should include research on better ways
to control noise; employee education on related health effects; personal noise protection; and training on
how to use hearing protection devices, the wearing of which must be enforced in high-noise areas. 
2) PEPSI cola use these strategies to overcome the challenges while making companywide
manufacturing operation

Solution:

 Having accurate, real-time production visibility improves product quality, order accuracy and
customer satisfaction while driving down manufacturing costs at the plant level.

 Keeping manufacturing operations across all locations focused on a common set of goals
improves gross margins, reducing the total cost per unit while improving on-time order delivery and
perfect order performance.

 The era of Manufacturing Intelligence has arrived, fueled by data from Manufacturing Execution
Systems (MES), with manufacturing operations management strategies accelerating adoption
company-wide.
 Improving product quality, reducing cycle times, automating manual workflows and streamlining
plant floor operations are a few of the many benefits of adopting a company-wide manufacturing
operations management strategy.