Coca-Cola

The Coca-Cola Company was founded in 1892 and established its Headquarters in Atlanta.
The Coca Cola Franchise is the World’s biggest Beverage Industry. It dominated a 48% of
the global Market share. In total the Franchise is responsible for over 160 different
beverages within a market consisting of 200 Countries. Examples of their products are
Coke, Sprite, Dasani and many more. Their products range from Sport’s Beverages, Juices,
Tea, Coffee and Water.

Coca-Cola is a product company that manufactures and sells concentrated drinks and
juices; and finished beverages (including sparkling soft drinks; water and sports drinks;
juices and plant-based drinks; and tea and coffee).

Example: Coca-Cola , Sprite , Fanta , Schweppes , DASANI , smart water , POWERADE ,

vitamin water , innocent , Simply , Costa Coffee , Fuze Tea , Honest.

4 V's of operation
Volume: Volume- this refers to the amount of a particular item required to satisfy its
demand. Low volume activities have a tendency to be less repetitive and dull with staff
involved in more than one role (multitasking) while high volume involves repeatable
techniques, which can be institutionalized or computerized. A high volume can reach and
satisfy the demand as the production process is faster due to automated activities. Coca
Cola as a company can produce with greater volume efficiency than smaller, local beverage
companies. All around, more than 10,000 Coca-Cola are consumed each second, according
to UK business insider, so you can imagine how many bottles and cans of Coca Cola drinks
are being produced.
Variety: Variety-relates to the variety of goods/service to be created and sold to client.
Variety is all about diversity. High variety enables organizations to adapt and create
products or service to meet customer requirement. The higher the variety the lower the
volume of the products or services. For example, Coca Cola creates variety of different
beverages, so how Coca Cola operates will differentiate from a beverage company that
produces just a couple. Coca Cola will have a lot of factories making different products, some
abroad, as they sell variety of drinks. The team will also consist of big groups and Coca Cola
will have more specialists working for each product for taste trials and research, while small
beverage company like normal orange juice will have a local factory with small group
working together with no specialist.
Visibility: Visibility-insinuates the measure of the organizational process does the customer
truly experience. Service industry has high visibility because the customer experiences the
process frist hand. Coca Cola organization does not have high visibility as they are in
manufacturing industry and all the process happens at the back (factories) customers only
gets to experience the product. Customers doesn't get to see how the product is being made
they just get to taste it. Even restaurant staffs do not get the full experiences of how the
drink is made as they are given premade syrup which they mix with carbonated water.
Variation: Variation-this alludes to the how much the level of demands changes over a
period of time because of outer components. Nonetheless, various elements make it hard to
foresee variety. For instance, a catastrophic event, for example, if an earthquake hits Great
Britain, this will prompt an expansion in nourishment stuff and house supplies and less
demand for Coca Cola drinks.

Approaches of operation
Mass production: Coca-Cola has established itself as a commodity that has integrated into
many cultures around the globe. This is no secret, Coca-Cola is everywhere. Just last year,
Coca-Cola products were found in over two hundred countries worldwide, with consumers
drinking more than 1.8 billion company beverage servings each day. Coca-Cola is an all-
encompassing commodity whose mass production is credited to the extraction and
refinement of its ingredients. The companies interdependent relationship with government-
run utilities and agribusiness is necessary to obtain resources of production and producing
Coca-Cola within these outsourced countries for better profits.
The production of Coca-Cola is based on the ingredients that compose the substance.
Through the private-sector partnerships, six critical ingredients have enabled Coca-Cola to
be acquired at a low cost. These main ingredients include water, sugar, caffeine, coca leaves,
.packaging, and high-fructose corn syrup

Agile: Coca-Cola associates globally are being trained in agile practices, leaders are
implementing agile principles, and agile teams have been formed to address strategic
priorities. Best practices are being shared through digital tools and community events
.throughout the organization
Apply Lean six sigma. LSS to the company
Coca-Cola’s Adopting of Six Sigma Coca-Cola has implemented the Six Sigma philosophy
under the heading of is business excellence. In a difference from other companies that only
concentrate on implementing Six Sigma on the manufacturing part, Coca-Cola adopts Six
Sigma to run and manage its entire business. This program has helped the company improve
its manufacturing process and operations. It has been a way of connecting the parts of the
business with each other (Liker, 2014). Coca-Cola Company also applies the DMAIC
methodology in order to understand its business processes, measure them from the
customers' perspective and drive improvements. DMAIC is a management application that
involves different strategies in order to control and improve operational processes. DMAIC is
an abbreviation of its strategies which include; Define, Measure, Analyze, Improve and
Control. The company also implies lean techniques where everyone has the tools and the
methodology for problem-solving. This includes statistical rigor in the TQM approach since
the ’80s (Robinson and Schroeder, 2015). The technique is a natural fit since all the learned
people use a common framework during a problem-solving approach

LO2

Definition of Total Quality Management (TQM)

TQM can be defined as a set of techniques and procedures used to reduce or eliminate
variation from a production process or service delivery system in order to improve efficiency,
reliability, and quality. It integrates basic management techniques, existing improvement
efforts, and technical tools within a disciplined approach focused on continuous
improvement.

Coca-Cola drinks come in a variety of different packaging formats including glass,

aluminum cans, and plastic bottles. As the company expands its supplier base and
beverage portfolio to meet the increasing demands of developing and growing markets
around the world, regulatory scrutiny and consumer expectations continue to rise. states
that “the global nature of its business requires that the Coca-Cola system has the highest
standards and processes to ensure consistent quality – from its concentrate production to
its bottling and product delivery”.

Coca-Cola states that ‘to ensure such consistency and reliability, the Coca-Cola system is
governed by the Coca-Cola Operating Requirements (KORE)’. This system enables Coca-
Cola to address growth plans by creating an integrated quality management program
that holds all operations to the same standards of production and distribution of
beverages. The current management system, KORE, aims to achieve the highest standards
in product quality, health and safety, and environmental standards at Coca-Cola.

The Quality Management system

It is very important that each product that Coca-Cola produces is of a high-quality standard
to ensure that each product is exactly the same. This is important as the company wants to
meet customer requirements and expectations. With the brand having such a global
presence, it is vital that these checks are continually consistent. The standardized bottle of
Coca-Cola has elements that need to be checked whilst on the production line to make sure
that high quality is being met. The most common checks include ingredients, packaging, and
distribution. Much of the testing is taken place is during the production process, as machines
and a small team of employees monitor progress. It is the responsibility of all of Coca Colas
staff to check quality from hygiene operators to product and packaging quality. This shows
that these constant checks require staff to be on the lookout for problems and take
responsibility for this, to ensure maintained quality.

Coca-cola uses inspection throughout its production process, especially in the testing of the
Coca-Cola formula to ensure that each product meets specific requirements. Inspection is
normally referred to as the sampling of a product after production in order to take corrective
action to maintain the quality of products. Coca-Cola has incorporated this method into their
organizational structure as it has the ability to eliminate mistakes and maintaining high-
quality standards, thus reducing the chance of product recall. It is also easy to implement
and is cost-effective.

Coca-cola uses both Quality Control (QC) and Quality Assurance (QA) throughout its
production process. QC mainly focuses on the production line itself, whereas QA focuses on
its entire operations process and related functions, addressing potential problems very
quickly. In QC and QA, state of the art computers check all aspects of the production process,
maintaining consistency and quality by checking the consistency of the formula, the creation
of the bottle (blowing), fill levels of each bottle, labeling of each bottle, overall increasing the
speed of production and quality checks, which ensures that production demands are met. QC
and QA help reduce the risk of defective products reaching a customer; problems are found
and resolved in the production process, for example, bottles that are considered to be
defective are placed in a waiting area for inspection. QA also focuses on the quality of
supplied goods to Coca-cola, for example, sugar, which is supplied by Tate and Lyle. Coca-
cola informs that they have never had a problem with their suppliers. QA can also involve
the training of staff ensuring that employees understand how to operate machinery. Coca-
Cola ensures that all members of staff receive training prior to their employees so that
employees can operate machinery efficiently. Machinery is also under constant
maintenance, which requires highly skilled engineers to fix problems and help Coca-Cola
maintain high outputs.

Every bottle is also checked that it is at the correct fill level and has the correct label. This is
done by a computer that every bottle passes through during the production process. Any
faulty products are taken off the main production line. Should the quality control measures
find any errors, the production line is frozen up to the last good check that was made. The
Coca-Cola bottling plant also checks the utilization level of each production line using a
scorecard system. This shows the percentage of the line that is being utilized and allows
managers to increase the production levels of a line if necessary.

Coca-Cola also uses Total Quality Management (TQM), which involves the management of
quality at every level of the organization, including; suppliers, production, customers, etc.
This allows Coca-Cola to retain/regain competitiveness to achieve increased customer
satisfaction. Coca-Cola uses this method to continuously improve the quality of their
products. Teamwork is very important and Coca-Cola ensures that every member of staff is
involved in the production process, meaning that each employee understands their job/roles,
thus improving morale and motivation, overall increasing productivity. TQM practices can
also increase customer involvement as many organizations, including Coca-Cola relish the
opportunity to receive feedback and information from their consumers. Overall, reducing
waste and costs provides Coca-Cola with a competitive advantage.

Planning Process

Using the information gathered from their customer-focused strategy, companies will plan
their business processes to meet the desires of customers. Changing production materials,
correcting product flaws and creating new product features are part of the planning process
of TQM. Businesses must understand that product quality is based on the perception of
customers; planning and deciding how to achieve this perception are important in TQM

The Production Process

Before production starts on the line cleaning quality tasks are performed to rinse internal
pipelines, machines, and equipment. This is often performed during a switchover of lines, for
example, changing Coke to Diet Coke to ensure that the taste is the same. This quality check
is performed for both hygiene purposes and product quality. When these checks are
performed the production process can begin.
Coca-Cola uses a database system called Questar which enables them to perform checks on
the line. For example, all materials are coded and each line is issued with a bill of materials
before the process starts. This ensures that the correct materials are put on the line. This is a
check that is designed to eliminate problems on the production line and is audited regularly.
Without this system, product quality wouldn’t be assessed at this high level. Other quality
checks on the line include packaging and carbonation which are monitored by an operator
who notes down the values to ensure they are meeting standards.

To test product quality further lab technicians carry out over 2000 spot checks a day to
ensure quality and consistency. This process can be prior to production or during production
which can involve taking a sample of bottles off the production line. Quality tests include the
CO2 and sugar values, micro testing, packaging quality, and cap tightness. These tests are
designed so that total quality management ideas can be put forward. For example, one way
in which Coca-Cola has improved its production process is during the wrapping stage at the
end of the line. The machine performed revolutions around the products wrapping them in
plastic until the contents were secure. One initiative they adopted meant that one less
revolution was needed. This idea, however, did not impact the quality of the packaging or
the actual product, therefore, saving large amounts of money on packaging costs. This
change has been beneficial to the organization. Continuous improvement can also be used
to adhere to environmental and social principles which the company has the responsibility to
abide by. Continuous Improvement methods are sometimes easy to identify but could lead
to a big change within the organization. The idea of continuous improvement is to reveal
opportunities that could change the way something is performed. Any sources of waste,
scrap, or rework are potential projects which can be improved.

The success of this system can be measured by assessing the consistency of the product
quality. say that ‘Our Company’s Global Product Quality Index rating has consistently
reached averages near 94 since 2019, with a 94.3 in 2020, while our Company Global
Package Quality Index has steadily increased since 2019 to a 92.6 rating in 2020, our highest
value to date. This is an obvious indication this quality system is working well throughout the
organization. This increase of the index shows that the consistency of the products is being
recognized by consumers.

Customer Satisfaction
Coca-Cola controls its customer satisfaction by having a code on the bottles it produces. This
means that if there is a fault, then that code can be entered into the Coca-Cola database and
they can find out what plant it was produced at and where it was distributed to. This helps
customer satisfaction because if there is a faulty group of Coke bottles then they can be
recalled before any other customers find problems with a particular batch of Coke products.
They also have an OTIF rating system for distributors (OTIF stands for ‘on time in full’).
External customers, such as distributors can rate Coca-Cola’s delivery based on if it was on
time and the full stock was delivered. Coca-Cola also uses mystery shoppers to examine the
quality of the products and how satisfied customers are with those products.

Using Total Quality Management, Coca-Cola is able to:

- Stand out from the competition

- Gaining market share
-Consumer benefits
- Producing high quality products that are distinct from other competitors.

Reasons to make quality a priority at Coca-Cola

A. Continuous competition among soft drink manufacturers - the soft drink market demands
high-quality products at affordable prices.

B. Changing the permanent client and turning to alternatives - the new client not only gets
priority based on size but also has higher expectations in terms of the "quality system."

C. Shifting from low volume and high price to high volume and low price necessitated the
reduction of the internal cost of poor quality.

D. Product complexity - As systems get more sophisticated, component providers'

dependability standards become more stringent.

E. Increased rivalry raises customer expectations, resulting in higher levels of consumer

satisfaction.

F. Approaches to quality that is relatively easy. In today's complex market context, product
quality control inspection and the inclusion of the internal cost of poor quality in the selling
price may not be feasible.
 LO4
Apply the above PLC model to a single project going through the phases of this project from
the start to the closure. (P4)

Project Phases on a Large Multinational Project

A United States Construction company won a contract to design and build the first copper
mine in northern Argentina. There was no existing infrastructure for either the mining
.industry or large construction projects in this part of South America

Initiation
The initiation phase of a project represents the activities associated with starting up the
project. Activities during the initiation phase include project kickoff meetings, identifying the
project team, developing the resources needed to develop the project plan, and identifying
.and acquiring the project management infrastructure (space, computers)

During the initiation phase of the project, the project manager focused on defining and
finding a project leadership team with the knowledge, skills, and experience to manage a
large complex project in a remote area of the globe. The project team set up three offices.
One was in Chile, where large mining construction project infrastructure existed. The other
two were in Argentina. One was in Buenos Aries to establish relationships and
Argentinean expertise, and the second was in Catamarca—the largest town closes to the
mine site. With offices in place, the project start-up team began developing procedures for
getting work done, acquiring the appropriate permits, and developing relationships with
.Chilean and Argentine partners

Planning
The planning phase, which PMI labels “organizing and preparing,” includes the development
of more detailed schedules and a budget. The planning also includes developing detailed
staffing, procurement, and project controls plans. The emphasis of the planning phase is to
develop an understanding of how the project will be executed and a plan for acquiring the
resources needed to execute it. Although much of the planning activity takes place during
the planning phase, the project plan will continue to be adjusted to respond to new
.challenges and opportunities. Planning activities occur during the entire life of the project

During the planning phase, the project team developed an integrated project schedule
that coordinated the activities of the design, procurement, and construction teams. The
project controls team also developed a detailed budget that enabled the project team to
track project expenditures against the expected expenses. The project design team built
on the conceptual design and developed detailed drawings for use by the procurement
team. The procurement team used the drawings to begin ordering equipment and
materials for the construction team; develop labor projections; refine the construction
schedule, and set up the construction site. Although planning is a never-ending process on
a project, the planning phase focused on developing sufficient details to allow various
parts of the project team to coordinate their work and to allow the project management
.team to make priority decisions

Execution
The execution phase, labeled by PMI as “carrying out the work,” includes the major activities
needed to accomplish the work of the project. On a construction project, this would include
the design and construction activities. On an information technology (IT) project, this would
include the development of the software code. On a training project, this would include the
.development and delivery of the training

The execution phase represents the work done to meet the requirements of the scope of
work and fulfill the charter. During the execution phase, the project team accomplished
the work defined in the plan and made adjustments when the project factors changed.
Equipment and materials were delivered to the worksite, labor was hired and trained, a
construction site was built, and all the construction activities, from the arrival of the first
.dozer to the installation of the final light switch, were accomplished

Closure
The closeout phase—or using PMI’s nomenclature, “closing of the project”—represents the
final stage of a project. Project staff is transferred off the project, project documents are
archived, and the final few items or punch list is completed. The project client takes control
.of the product of the project, and the project office is closed down

The closeout phase included turning over the newly constructed plant to the operations
team of the client. A punch list of a few remaining construction items was developed and
those items completed. The office in Catamarca was closed, the office in Buenos Aries
archived all the project documents, and the Chilean office was already working on the
next project. The accounting books were reconciled and closed, final reports written and
.distributed, and the project manager started on a new project
 : REF
LO1
/https://eduzaurus.com/free-essay-samples/the-4-vs-of-operational-management
/https://www.coca-cola.com
https://www.ukessays.com/essays/business/project-report-operation-management-in-coca-
cola-company
LO2
https://studentshare.org/miscellaneous/1551535-total-quality-management-its-application-
in-coca-cola-turkey-how-critical-is-it-in-a-rapidly-developing-world-for-the-coca-cola-
companys-turkey-future-to-maintain-total-quality-management
https://www.academia.edu/11725927/THE_IMPLEMENTATION_OF_TOTAL_QUALITY_MAN
AGEMENT_IN_MANUFACTURING_FIRMS_IN_GHANA_A_STUDY_OF_COCA_COLA_BOTTLING
_COMPANY_KUMASI_BRANCH_PATRICK_PROJECT_WORK

LO4
https://saylordotorg.github.io/text_project-management-from-simple-to-complex-v1.1/s05-
project-phases-and-organizatio.html
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