ASSIGNMENT 1 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 16: Operations and Project Management (528)

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Student name Vo Thanh Hang Student ID GBD17153

Class GBD0601B Assessor name Nguyen Minh Thanh

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Table of Contents
I. Introduction ................................................................................................................................... 4
II. Contents........................................................................................................................................ 4
1. The key concepts of operations management. ....................................................................... 4
a. Define the key concepts: operations, operations management & operational functions. ... 4
b. The relationship between operations and other business functions in an organization in
general. ..................................................................................................................................... 4
c. The key responsibilities of an operations manager. ............................................................ 5
2.The implementations of operations management processes within an organizational context. .. 6
a. Discuss the general operational process and the key approaches to operations
management ............................................................................................................................. 6
b. Critically evaluate the advantages and disadvantages of Six Sigma and Lean principles. ..... 7
c. The difference between Six Sigma methodology and Lean principles in the operations of a
company. ................................................................................................................................ 10
d. The development of operations management principles in modern context. ................... 11
3. Prepare a continuous improvement plan based on the review and critique of operations
management principles for Coca Cola.......................................................................................... 12
a. The relevance of operations and other business functions in Coca Cola ........................... 12
b. Identify and discuss the current continuous improvement processes in Coca Cola. .......... 13
c. The roles of lean principles within the cycle of continuous improvement in Coca Cola. .... 14
d. The impact of process technology has had upon operational functions and information
flows of Coca Cola. .................................................................................................................. 15
e. Differentiate the different operation approaches that Coca Cola can use to further
improve quality of the products/services in general................................................................. 16
f. Identify and discuss which operation approach(es) that Coca Cola has been using and
evaluate the advantages and disadvantages of that approach. ................................................ 17
4. Recommendations. .............................................................................................................. 18
a. Evaluation of the current method Coca Cola is using to improve the quality and make
recommendations to further improve the operation effectiveness for Coca. ........................... 18
b. Comparison with the methods of other companies in the same sector (better if examples
in VN context are chosen) can be made to justify/support your recommendations. ................. 20
III. Conclusion.................................................................................................................................. 21
REFERENCE ..................................................................................................................................... 21
I. Introduction
For the purpose of this report, we have chosen to analyze Coco-Cola's activities taking
place in Vietnam. Operations management is important for this company as a large
multinational company with assembly lines worldwide. We start by giving a brief overview
of the brand and then move on to analyze the unit's operations in Vietnam.
Coca-Cola Company, based in Atlanta, Georgia, is an American multinational beverage
group, and manufacturer, retailer and marketer of non-alcoholic beverages and syrup
checkered. The company is known for its flagship product Coca-Cola, and today Coca-Cola
Company has been in business for 125 years, using 139,600 people and selling 1.6 billion
drinks a day in more than 200 countries.

II. Contents
1. The key concepts of operations management.
a. Define the key concepts: operations, operations management & operational
functions.
Operation is concerned with the transformation of inputs into the required output
or services. Management is the continuous process, which combines and transforms
various resources used in the operations system of the organization into value added
services.
Operation management is the business function that manages that part of a
business that transforms raw materials and human inputs in to goods and services of
higher value. Operation management is a business activity that deals with the production
of goods and services (Slack, Chambers and Johnston 2010).
Operational function is the term used to describe how the organization's core
performance is designed and functioned. In manufacturing, that's how raw materials are
turned into a usable product. In sales, that's how products are received and presented
to the public (Krajewski,2013).
b. The relationship between operations and other business functions in an
organization in general.
 Operations and others business function have close relationships with each other to
create a product of the most quality and productivity. Because any business that creates
something must use resources to do, it has an active operation. In addition, auto
factories and advertising companies have one important thing in common: both have a
higher goal - to profit from creating and offering their products or services.
In particular, business functions in the company support for each other. For
example, when it comes to supporting functions that ensure effective core operations
are the accounting and financial functions, data sharing to make convenient economic
decisions and managing the financial resources of company. The second supporting
function is human resources, responsible for developing and controlling organizational
members, to enhance the welfare of the organization.
c. The key responsibilities of an operations manager.
Operations managers play a leading role in managing both raw materials and
personnel. Oversight of inventory, purchasing and supplies is central to the job. Human
resources tasks include determining needs, hiring employees, overseeing assignment of
employees and planning staff development.
In general, almost operations managers have the key responsibilities that are
management budgets, management of supply chain procedures and inventory tracking
and management support services.
With the main key responsibilities are management budget, involve the production
of goods, operating within a budget. The operations manager is responsible for reviewing
budget line items to determine if there is a less expensive way to complete the task. This
could include finding quality equipment at a cheaper price or seeking to reduce
production costs by streamlining production processes and negotiating new contracts.
Secondly, about management of supply chain procedures and inventory tracking,
the finished products must be properly inventoried and then sent out the door and onto
the supply chain to retailers or direct customers. Operations managers will keep an eye
on the entire process and may intervene and adjust as needed. Therefore, production
teams are more efficient and have a stable supply of raw materials.
 Finally, it is management support services. In this role, the operations manager must
ensure that these support services are operating according to the standards necessary
for the business to maintain expected growth. The operations manager can also analyze
key performance indicators to determine if your support services provide an appropriate
return on investment.
2. The implementations of operations management processes within an organizational
context.
a. Discuss the general operational process and the key approaches to operations
management
• Operational process
Operational processes are the most frequently used and most important type of
processes in any company. These are processes that identify the main activities that a
company needs to perform in order to successfully carry out its business.
The goal of any operational process is to ensure that resources are used in the most
conservative way possible. At the same time, other inputs such as knowledge and
information are less costly and can improve the efficiency of the process drastically as
we will see later. The goal is to use them to reduce the amount of input needed thereby
reducing costs.
A standard operating procedure is decided, documented and created as a guide.
This instruction must then be given to all employees during their training. One must
ensure that a process is built in such a way that only best practices can be followed to
produce uniform service levels and standardized quality regardless of the service or
product.
• The key approaches to operations management
Modern operations management revolves around four theories: business process
redesign (BPR), reconfigurable manufacturing systems, six sigma, and lean
manufacturing.
 BPR is a business management strategy focused on the analysis and design of
business processes and business processes within a company. BPR's goal is to help
companies restructure their organization by designing business processes from scratch.
Six Sigma was defined as a production management method initiated by Motorola
in the 80s with the motto of eliminating waste and minimizing errors made by focusing
primarily on the effective implementation of quality management principles and
minimizing defects or product defects.
With LEAN principle, which is a set of tools and techniques designed to address the
root problems of inefficient manufacturing operations. It is a systematic approach to
eliminate all forms of waste in the entire production chain in order to meet the desires
of the customers (Womack, 1990). The goal of LEAN production is to optimize the values
of productivity, quality, cost and ability to meet customers while ensuring the safety
conditions of production.
b. Critically evaluate the advantages and disadvantages of Six Sigma and Lean
principles.
The key approaches to operations management are known to be one of the effective
production methods that help improve the competitiveness of productivity, quality and
cost of businesses through eliminating waste and continuous improvement, such as Six
Sigma and Lean principles (Liker, 2006). The application of operational methods is
essential to today's companies. Therefore, before applying, analyzing the benefits and
disadvantages of Six Sigma and Lean is important for deciding to change operating and
manufacturing methods in the company.
• Advantages & Disadvantages of Six Sigma
The report will mention about advantages & disadvantages of Six Sigma. There are
4 main advantages of Six sigma.
Firstly, Six sigma helps identify specific strategic goals of businesses in each period.
Thanks to Six sigma, businesses can clearly identify goals and strategies in 3-5 years, then
set up a specific action plan for each year, build performance indicators, and appoint
responsibilities, allocate resources, time limit for completion. From there, the enterprise
has a specific calculated and planned strategy
Secondly: Create effective cooperation between levels. To have success when
applying Six sigma solutions - innovation and innovation, businesses need to establish
effective collaborative relationships between management, unions, workers, customers.
Since then, all stakeholders understand that in order to make significant changes in the
company and its culture, there is a need for mutual understanding, mutual recognition
of change as necessary and mutual agreement. the way changes are made.
Thirdly: Selective improvement projects. The 6 Sigma projects focus on key strategic
issues that have the most obvious impact on eliminating waste, customer satisfaction
and essential to business results in the form of quick financial efficiency (high income,
lower costs). Therefore, it is important to select the priority order of 6 Sigma projects at
an early stage.
Finally, 6 Sigma contributes to increased customer satisfaction. The majority of
private businesses experience recurring product-related problems that do not meet
customer requirements, causing customers to be dissatisfied and sometimes cancel
orders. The longer it takes to process raw materials and finished products during the
production process, the higher the production cost. However, with 6 Sigma, there were
fewer problems during the manufacturing process, which means that the process is
always completed faster, so production costs, especially labor costs on each application.
the taste of the product will be lower.
Disadvantages of Six Sigma:
Six Sigma examines business processes every minute and generates large amounts
of empirical data, leading to complex and time-consuming procedures. In addition,
because this is a radical quality improvement process, the application of its protocols
often leads to an increase in overall costs.
Sometimes, when a company implements Six Sigma, problems arise when the
company only focuses on Six Sigma approving policies and forgetting its specific
statement or mission policy. For small businesses, it can restrict new ideas in favor of
creativity and innovation, which requires a number of risks to implement. Companies
must find certified Six Sigma institutes to train their employees or conduct internal
training without formal certification. In both cases, the small cost of applying Six Sigma
by small businesses is not feasible. Even large companies must provide a lot of training
for employees to embrace the system.
• Advantages and disadvantages of Lean
Organizations and businesses will get many benefits when applying lean such as
improving labor productivity, improving product quality or services, reducing
administrative procedures, reducing pressure on workers and connecting workers more
with jobs.
LEAN brings significant improvements in quality productivity for product creation by
reducing errors and waste. At the same time, applying lean improves the production
cycle time to improve the efficiency of the use of input resources, productivity and higher
product creation efficiency through reduced waiting (between people- people; between
people-machines), reduce movement, reduce redundancy during work / operation.
In addition, each employee directly or indirectly participates in the process of
creating products with awareness, clear thinking about value concepts and activities to
add value to customers in their work, thereby actively contributing to the value chain of
the entire organization to provide customers on the principle of quality performance
right from the source.
Despite its many benefits, lean manufacturing still has some disadvantages:
Supply issues
According to Lean manufacturing philosophy, only a small amount of inventory is
stored. So lean manufacturing processes rely heavily on suppliers to avoid disruptions.
Problems such as strike workers, traffic jams or one of the suppliers having problems ...
then force the entire production line to stop. These problems create heavy costs, profits,
and create tensions that ultimately affect the manufacturing process.
High operating costs
 The cost of human resource training is high and prolonged, the cost of hiring
experienced managers is higher than normal, the investment capital for buying
equipment is not small and the settings of the work cell model (complete all activities
that produce a product in an area) are counted toward the long term.
Lack of employee consensus
Lean Manufacturing requires changing the entire production system and sometimes
employees refuse because they prefer the older way. Moreover, lean manufacturing
requires employees to have constant quality control but some will not qualify for it.
These situations require the manager to have sufficient leadership skills and experience
as well as the ability to persuade to quickly overcome these difficult issues.
Those are the drawbacks of lean manufacturing philosophy. However, if company
knows how to overcome and control, this production philosophy will bring a lot of
competitive advantages for businesses.
To sum up, this article presents the benefits and disadvantages of LEAN and Six
Sigma production methods with its tools, techniques and principles. Vietnamese
enterprises are small and medium-sized enterprises. Financial resources, human
resources, machinery and equipment are very limited in terms of resources, low
technological level, production management and management capacity are not high, the
deployment is applied synchronously on a large scale. Entire enterprise is difficult to
achieve. Based on that, the article proposes four stages of implementation of LEAN and
Six Sigma with the goals to be implemented in each stage and the respective tools and
techniques applied. Accordingly, businesses that want to apply LEAN and Six Sigma
sustainably need to follow a four-step roadmap to create habits and shape LEAN and Six
Sigma culture for everyone before replicating and developing LEAN and Six Sigma is
synchronized throughout the enterprise.
c. The difference between Six Sigma methodology and Lean principles in the
operations of a company.
Both Six Sigma and Lean have their own strengths and they work well together
because they focus on improving results through process improvement.
 The main focus of Lean is eliminating waste in many forms: excessive backlog of
production space, inventory, raw materials, damage, repaired goods, cycle time, capital
waste., wasting labor and time are also the subject of Six Sigma projects.
Furthermore, lean implementation will lead to uniformity in the output of the
process. On the other hand, the implementation of six sigma techniques will lead to a
reduction in the flow time of operations. The purpose of lean is to improve production
by increasing productivity. In contrast, Six Sigma aims to meet customer requirements.
In addition, some Lean tools are also used in Six Sigma projects as needed. Lean's
tools are not statistically strong, so they will not be effective in studying oscillation, but
they are present in every process and need to be defined to improve the process.
Second, lean methods are most useful only in a production environment; while, Six Sigma
is much more efficient at creating a common language and methodology for the whole
organization.
d. The development of operations management principles in modern context.
The evolution of operation management has changed from past, present and future.
With social changes, everything also needs to changes to adapt with the evolution,
including operation management.
In the past, the main focus of operation management was to improve labor
productivity in which time and motion studies, layout, production control, and line
theory were one of the common techniques for improving labor productivity. Most
research during this period focused on developing algorithms and methods to solve
optimization problems in some functional areas (Chopra,2004). The increasing
competition due to the success of Japanese products in the global market makes OM
focus strongly on improving production strategies, service activities, developing new
products and developing metrics with better performance to produce less.
However, in modern context, after focusing on the cost and quality of goods and
services, Operation Management finds mass customization as a way to meet the growing
needs of customers in a customer-oriented market (Heizer and Render, 2006). In
empirical research on manufacturing plants, Ward (1998) developed four reliable and
valid scales for commonly accepted competitive priorities: cost, quality, delivery time
and flexibility.
Along with the development of these competing priorities, many other
developments including globalization have led to an increase in mass customization. In
addition to restructuring, the Internet has completely changed the landscape of
business. The increasing involvement of businesses in the global market has led to a
noticeable shift in traditional business models and their target audience. In contrast to
past decentralized functional activities, the current business environment requires
integration of organization and inter-organization to meet new market conditions. As a
result, current OM practices attempt to integrate many of the classic functions of the
enterprise under the brand of business processes initiated by a restructuring approach
pioneered by Hammer and Champy (1993).
Therefore, it has led to the emergence of forecasting and marketing through
accounting, sales, marketing and production through cost-based operations. On the
other hand, the seamless integration of chain members from suppliers to customers is
the need to fulfill customers' needs.
3. Prepare a continuous improvement plan based on the review and critique of
operations management principles for Coca Cola.
a. The relevance of operations and other business functions in Coca Cola
Operation management in Coca Cola impacts in business function, particularly
about Finance, Human Resource and Marketing to work together to achieve the common
goals of a business.
Firstly, there is a significant relationship between Operations and Marketing at Coca
Cola, as the function relies on successful marketing to create demand among consumers
to make a profit. In the case of Coca Cola, the marketing and operational relationship is
clear through the use of market research which is used by Coca Cola to identify valuable
information related to consumers' tastes and preferences. This information should be
shared with the operations department in designing and developing new products that
better suit the tastes and preferences of consumers; for example, Coca Zero and Coca
Coffee. Through their use of market research and operations to provide a better and
more appropriate product for consumers. Therefore, illustrate the interdependence
between operations and marketing in Coca Cola.
The basis for interdependence between operations and human resources is the
development of recruitment, and maintenance of employees in accordance with the
operational process. Employees should be trained with the necessary skills in the
operating process to maximize operational efficiency and ensure the job is done
correctly. Investing in rookies and training programs will help cope with the performance
impact of volumes, which will allow businesses to respond to customer needs and needs
quickly. For example, Coca Cola sets factories and hires employees in many countries
around the world to reduce labor costs to improve operating margins.
Financial function at Coca Cola will be responsible for controlling funds and
assessing capital investment needs such as equipment or resettlement, collecting money
and making decisions to buy or sell within the organization and to expand the plant.
Therefore, financial functions cannot work without understanding operational and
necessary concepts. On the other hand, managers operating at Coca Cola cannot make
financial plans without understanding the key and method of evaluating financial
investments. It is essential that both functions understand each other and work together.
b. Identify and discuss the current continuous improvement processes in Coca Cola.
Coca Cola uses many continuous improvement processes to improve the quality of
products and productivity efficiently, but the Lean & Six Sigma principles are used in its
manufacturing strategy currently. Because Coca Cola achieves significant high results by
applying overall equipment efficiency (OEE) improvements. OEE creates a cumulative
index of availability, performance ratios and quality to provide time and productivity
comparisons. Six sigma uses statistical tools to remove imperfections and
inconsistencies. Lean Manufacturing has high management tools and processes by which
companies eliminate waste in any form. Managing Coca Cola's operations achieves
productivity from the following indicators:
Bulk per facility per day (Coca Cola production facility yield)
 New product ideas every year (R & D productivity of products)
New accounts every year (marketing productivity)
(Operations management of Coca Cola, 10 decisions, productivity, 2015)
In addition, Coca Cola applies Lean and Six Sigma in further reducing the packaging
of their products, to reduce costs, reduce waste and help stabilize the environment. Coca
Cola has reduced the ingredients in their beverage containers. For instance, Coca Cola
bottle production process, called "Blow Molding", produces hollow but stiffer containers
that eliminate ordering, shipping, storage, handling, cleaning, and sanitizing P.E.T. bottle.
(SUSTAINABLE ENVIRONMENT, 2016)
c. The roles of lean principles within the cycle of continuous improvement in Coca
Cola.
In the context of the lean method, continuous improvement seeks to improve every
process at Coca Cola. Thereby, there are three key roles of lean principles within the
cycle of continuous improvement in Coca Cola: enhancing the activities that create the
highest value for customers while eliminating as many wasteful activities as possible,
reducing product development cycles and changing & bring value to customers.
Firstly, lean principles at Coca Cola describes how to prevent the generation of
waste is the main principle to eliminate as many wasteful activities as possible. The
perception of value creation from the customer's perspective is especially important for
innovation management. Therefore, the leading role of lean innovation is to
systematically transfer the principles of lean thinking into innovation management and
productivity improvement by continued efforts to avoid waste.
Secondly, another main role of Lean is reducing product development cycles and
reducing R&D costs is the focus of Coca Cola for better product development. Coca Cola
has become familiar to customers, from taste to product design; so, it is necessary to cut
off products that are no longer popular with customers and focus on developing from
what is already available, such as Coca Cola added coffee. Since then, Lean's role has
been increasingly reflected in Coca Cola. Moreover, in fact, more than half of all
innovation projects fail, like Coca-Cola's New Coke beverage - this is a waste of extremely
high costs.
Finally, Coca Cola recognizes that value is only determined by customers and to be
able to accurately identify that value is difficult and also reduces the creativity of the
organization if they continually produce products or services that Customers determine
that they do not need; Since then, Coca Cola has applied lean to create products that
focus on customers and bring diversity in products, eliminate unnecessary expenses and
focus on researching health products. customer. Therefore, Lean increases the
responsibility of their workforce and creativity.
d. The impact of process technology has had upon operational functions and
information flows of Coca Cola.
For a manufacturing company such as Coca Cola, process technology is highly
specialized to the semiconductor fabrication process, technologically advanced, very
expensive, and used in an extremely complex process.
The most important effects of process technology in operational functions at Coca
Cola are that helps Coca Cola improve and innovation production capacity. Because
supply chain management ( SCM) in Coca Cola is working through a strategy to push the
global supply chain in the beverage industry, focusing on positive marketing and selling
its products to multinational organizations, Coca Cola wants to improve production
capacity must improve technology capacity; thereby, helping businesses increase the
ability to apply new scientific and technological achievements in production and the
ability to innovate technologies in enterprises. In addition, machinery and equipment are
one of the direct participants in the production process, so the modernization of
equipment and technology innovation is very important for every business. Scientific and
technological advances and technological innovations will help Coca Cola to improve
product quality, create new products, diversify products, increase output, increase labor
productivity, and use rationally and economically. materials. It will increase
competitiveness, expand markets, promote rapid growth and improve production and
business efficiency.
 With information flows, process technology impacts in collecting and analyzing vast
amounts of data from different sources to understand customer demographics and
behavior because Coca-Cola serves a large number of drinks every day through vending
machines and equips them with AI algorithms that allow them to promote drinks and
flavors that will most likely be welcomed in specific locations where they are installed.
In an example of this strategy, Coca-Cola targeted ads for its Gold Peak iced tea brand to
people who posted images suggesting they enjoyed iced tea or spotted the logos of their
competing brands. So, analyzing data from vending machines with AI technology allows
Coca-Cola to better understand the buying habits of billions of its customers globally and
make new product decisions- for example, the decision to launch Cherry Sprite as a
bottled product in the United States was made because the data suggests this could be
a necessary initiative based on customer needs.
e. Differentiate the different operation approaches that Coca Cola can use to further
improve quality of the products/services in general.
With the role is using to further improve quality of the products/services in general,
Coca Cola need to identify difference between Total Quality Management (TQM) and
process re-engineering to find the ways for products in the future through 3 aspects:
description, aim and key driver.
Table 1: Comparison between Total Quality Management (TQM) and process re-
engineering
Total Quality Management Process re-engineering
(TQM)
Description: Concerned with improving Particular approach
work concerned with rethinking
processes and methods in current systems and
order processes (Thomas, 1994)
to maximize the quality of
goods and services (Goetsch
& Davi, 1995)
Keep existing customers by To redefine existing work
Aim:
meeting or exceeding their methods and processes to
expectations concerning improve efficiency.
products and services.
Increasingly competitive Competitive pressures and
Key Driver:
market and the need to intense need to cut costs.
 compete for specific
customer demands. May also
be driven by specific
problems such as high costs
or poor quality.
TQM and BPR are both aimed at increasing organizational efficiency, but try to do
this through very different means. The main difference in this respect is that TQM and
BPR are often triggered by the recognition that Coca Cola is operating in an increasingly
competitive market.
The approaches are also very different: BPR is the most different because it involves
change, trying to create new systems instead of repairing old systems to approach and
look for drastic changes. Whereas TQM is clearly an appropriate approach in which the
quality of a product or service is a primary concern.
In summary, there are differences in concept and similarities between TQM and
BPR. Each approach can be effective to improve the effectiveness of the organization
and the approach used depends on the problem of Coca Cola awareness and desired
results. Approaches are not an inbuilt solution; instead, it provides a range of options for
managers and consultants so they can achieve results that are most relevant to their
organization.
f. Identify and discuss which operation approach(es) that Coca Cola has been using
and evaluate the advantages and disadvantages of that approach.
Canners and bottlers handle large quantities of material each week. Receiving raw
materials and delivering finished products involves a complex series of actions. Thereby,
finding a solution for Coca Cola to use to overcome this problem is really necessary.
So, the ideal solution is to ensure that the inputs for the process arrive 'at the right
time' so they can be converted into finished products ready to ship 'Just in Time' to meet
needs of retailers. In modern canning plants, the canning manufacturer is usually located
in an adjoining facility, with deliveries through a 'hole in the wall'.
In addition, when using “Just in Time”, Coca Cola need to know and understand
advantages and disadvantages of this operation approach. There are 5 advantages from
its.
 1. Financial resources held in inventory may be used elsewhere. Reduce WIP
inventory and speed up the processes that products are processed by using small-sized
shipments and streamline processes into similar technology groups.
2. The area used to hold inventory may be used for other purposes or to reduce
warehousing costs.
3. Reduce the amount of inventory in each stage in small quantities to clearly see
the problems of each process.
4. The time to put materials into the process is minimized, resulting in better
potential output and fast delivery to the customer.
5. The rate of defects decreases, resulting in higher waste and customer
satisfaction
With Coca Cola, Just in Time help packers involve sophisticated supply chains with
supermarket chains and other stores to ensure that the process goes smoothly. Boxers
and bottlers must ensure that they do not build large inventories awaiting sale but that
they also ensure that deliveries are not delayed. This is where they benefit from
advanced information technology, quickly relaying demand data for Coca-Cola. For
example, this demand often increases during hotter climates, so packers need to plan to
increase production.
However, it also has some disadvantages like the application of JIT also has some
limitations such as JIT is difficult and expensive to apply or will be risky, since only one
problem in the supply chain will cause the entire system to stop. Coca Cola can overcome
by establishing a subsidiary to use materials and transport to avoid the interruption of
production.
4. Recommendations.
a. Evaluation of the current method Coca Cola is using to improve the quality and
make recommendations to further improve the operation effectiveness for Coca.
Coca Cola is aware of the importance of efficient operating costs. Therefore, the
company has integrated the lean management concept. One of the ways that the
company completes lean management is to conduct ongoing consumer market research.
Through market research, the company has managed to reduce operating costs by
producing beverage products that are in line with current market needs, thus allowing
the company to minimize the cost of carrying around joint ventures.
Therefore, lean management is judged to be an effective method for Coca Cola,
allowing a solid management team to identify waste thus eliminating it. Finally, the
company can reduce operating costs, which results from the company reducing
production of goods and services excessively and minimizing transportation costs for
finished products.
The beverage market has become very competitive due to the entry of other
companies like PepsiCo and Red bull into the market. Therefore, it is critical that Coca
Cola will develop a competitive advantage sufficient to monitor success by integrating
effective operational management as one of the ways the company can develop a
competitive advantage. Therefore, to achieve this goal, the company should take into
account the following recommendations:
Coca Cola needs to ensure that its operations division is effective in implementing
constant quality improvement. In its improvement process, the company should conduct
adequate market research to gain sufficient market information.
Coca Cola should develop and implement effective management information
systems. Systems should include customer relationship management systems,
transaction process systems and supply chain management systems. This move will
ensure the company's efficiency on production and marketing processes.
Coca Cola needs to ensure that they conduct market research to identify current
risks. This aspect will protect the company from possible losses. In addition, the company
should combine different risk reduction and risk reduction methods in risk management
practices.
Finally, the company should ensure the efficient production of its beverage products
through optimal inventory management.
 b. Comparison with the methods of other companies in the same sector (better if
examples in VN context are chosen) can be made to justify/support your
recommendations.
When comparing Lean management of Coca with other companies in the same
industry in Vietnam, Chuong Duong soft drink is a typical example. The most famous and
developed period of Chuong Duong when the company's products received the favor of
customers and also occupied the largest market share in the beverage industry.
However, Chuong Duong has been at a loss for a while at home because of less
competition with competitors in distribution and communication, not to mention the
previous technology is also less focused on investment. Not only faced with the situation
of old machinery, fixed assets have been fully depreciated, but the company also poured
very little budget for sales and marketing.
This shows that the use of Lean Management is still unpopular in Vietnam, because
businesses almost do not really understand the thinking and nature of Lean, so when
implemented, it is only formal, lacking preparation in management or just focusing on
streamlining costs by reducing staffing. It is quite common in Vietnam that Lean
enterprises follow the movement, so the deployment has not been professional or
copied from other businesses without changing to suit the characteristics of their
businesses.
By analyzing the emergence of Chuong Duong, we learn the lesson that if domestic
enterprises do not want to be big, do not dare to grow, or are afraid of competition with
foreign products, they will soon be foreign market share and customer confidence. This
is not only a lesson for Chuong Duong and the domestic beverage industry, but also the
lesson of all time for businesses in developing countries like our country.
Therefore, Vietnamese enterprises need to be successful in deploying lean to be
able to compete with foreign rivals. In addition, the company's leadership must pioneer
innovation and innovation to motivate change of thinking and corporate culture as well
as create new habits for all employees to contribute to the promotion of Lean
management.
III. Conclusion
Through the research of the operating process of Coca Cola Vietnam, we can see this is a
product that is growing strongly in Vietnam and the world market. The main reason is that
Coca-Cola's value chain management and using Lean and Six sigma are highly effective and
efficiency. However, there are still limitations of the supply chain that have not been paid
attention, but the supply chain of Coca Cola Vietnam has achieved certain successes, thanks
to the systematic, close association of its members. Therefore, it is necessary to make the
most of it to improve the efficiency of the company's supply chain management.
From the above analysis, Vietnamese beverage companies need to draw lessons for
themselves to develop stronger. Especially in terms of WTO accession, the market is wide
open and domestic freshwater firms are still not competitive enough. With the continuous
efforts of each member of the supply chain in the future, Coca Cola Vietnam will grow
stronger.

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