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Coca Cola – Global Overview

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Operations In Pakistan

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About Case Study

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How this world famous product is made

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How are Quality Standards met for every unit

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JIT

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Pakistani Parallel

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Conclusion
MISSION
• At the Coca Cola
Company we strive to
refresh the world,
inspire moments of
optimism and
happiness, create value
and make a difference.
FACT SHEET
200+ Countries
200+ Countries
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Where Coca Cola beverages are sold

123 Years
123 Years
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in Business

3000+
3000+
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Beverages

92400 Employees
92400 Employees
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World Wide

47 Consecutive Years
47 Consecutive Years
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With increased dividends

1.6 Billion
1.6 Billion
●
Servings per day
Headquartered in Atlanta Georgia Employees
approx 92400 associates across 6 operating
groups.

Eurasia & Africa

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Europe
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Latin America
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North America
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Pacific
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Bottling Investments & Corporate

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 Coca-Cola Chronology
1886 - Invented by pharmacist, John Stith Pemberton,
Coca-Cola originated as a soda fountain beverage
selling for 5 cents a glass.

1894 - Joseph A Biedenharn began bottling Coca-Cola in

glass bottles called Hutchinson.

1899 - Bottling rights for Coca-Cola were bought by

Benjamin F Thomas and Joseph B Whitehead for the
sum of 1 Dollar.
 What do they do
• The company manufactures the concentrates,
beverage bases and syrups that make the brand
unique and sell them to bottling operations.
Marketing
Marketing
Activities
Activities
Package Design
Package Design

Print & Televised

Contests Print & Televised
Contests advertising
advertising

Sponsorship Online Programs

Sponsorship Online Programs
Retail Store
Retail Store
Displays
Bottling Partners
Product
Product
Localized
Localized
Marketing
Marketing

Merchan Producin
Merchan Producin
dising g
dising g

Distributi Packagin
Distributi Packagin
ng g
ng g
 The Customers

• Grocery Stores •Convenience Stores

• Restaurants •Drug Stores

•Street Vendors •Movie Theaters

•Mass Merchandisers •Amusement Parks

 Presence in Pakistan
Since it’s 1st plant
Coca Cola, the
inception in
world’s largest 1996, 7 new
beverage plants have been
company installed in
started it’s different cities
country wide
operation in
Karachi
Pakistan in In 1996, Hyderabad
1953 the 1st Sialkot
production Gujranwala
setup was Faisalabad
installed at Rahim Yar Khan
Karachi Multan
Lahore
 Brands in Pakistan

Coca-Cola is the most popular and biggest-selling soft

drink in history, as well as the best-known product in the
world

Sprite is the world's leading lemon-lime flavored soft

drink. Millions of people enjoy Sprite because of its crisp,
clean taste that really quenches your thirst.

Consumers around the world, particularly teens, fondly

associate Fanta with happiness and special times with
friends. This positive imagery is driven by the brand's fun,
playful personality, bright color, bold fruit taste and tingly
carbonation
 Brands in Pakistan

Sprite 3G was launched in competition to energy drinks

like Red Bull & contains Glucose, caffeine from Green
coffee beans and Guarana. It is a "new addition to the
Sprite family," a Sprite baby & has developed a place in
the younger generation.

Minute Maid has the longest history of marketing

orange juice with calcium, and was the first to launch
orange juice with calcium plus vitamins

Kinley is a high quality bottled water processed with

added minerals popular among those who seek a better
quality of life and a healthy lifestyle.
 About Case Study

• How is this world renowned product is made

• How Quality Standards are met at every single

unit of product
 Production Of Coca Cola
• The actual production and distribution of Coca-Cola follows a franchising
model
• The Coca-Cola Company only produces a syrup concentrate, which it sells
to bottlers and canners throughout the world
• The bottlers/canners produce the final drink by mixing the syrup with
filtered water and then carbonate it before putting it in cans and bottles
• The production of end product involves certain processes with various
inputs and outputs.
• Few Inputs are:
– Concentrated Syrup (Shipped by Coca Cola company to franchisees worldwide)
– Filtered Water
– Liquid Sweetener
– Carbon Dioxide
 Production Cycle
Syrup is shipped to
franchisee for preparation of
end product
Preparation of
Preparing the
Concentrate
Drink
(Syrup)

TQM
TQM

End product
send to local Packing into Packaging &
distributors Cases Filling
 Preparation of Syrup
• The exact formula of Coca-Cola's natural flavorings is a trade secret
• Its other ingredients which are listed on the side of the bottle or can are
only known
• When launched Coca-Cola's two key ingredients were cocaine and
caffeine.
• Considerable ratio of cocaine was a part of Coca Cola ingredient when
launched
• By time its ratio kept decreasing and in 90’s, cocaine trace levels left over
at a molecular level.
• Kola nuts act as a flavoring and the source of caffeine in Coca-Cola.
 Preparing the Drink
• Along with concentrate, company provides its franchisees with up-to-
date technology and statistical process control methods.
• The Franchisee mix the concentrated syrup with distilled water and
liquid sweetener
• Few Independent bottlers are allowed to sweeten the drink according to
local tastes.
• This mixture is then introduced with carbon dioxide (from a gas
cylinder), usually served directly from a gun-type nozzle.
• Samples are taken regularly to ensure that plants are maintaining
company’s quality standards.
 Packaging & Filling
• For many years coca cola was produced in glass bottles only
• After extensive research and development to ensure effective life cycle impact of
packaging, company started using cans and pet bottles for packaging.

Filling the Cans Filling the Bottles

• Cans are delivered to canning plant in bulk
• They are in shape of open cup to receive
the drink
• They are inspected for faults and then go
through rinsing
• These cans are filled through a rapid filling
process
• The ring pull end is then fitted and
inspected to make sure there are no gaps
or leaks
• A bar code is stamped on each can to keep
trace of point and time of production
• Glass and PET bottles are
produced and filled in
bottling plant
• After bottles are prepared
and filled, the label is
applied through large reels
• At the end, the bottles are
sealed with caps
 Continuous Flow Production
• Coca Cola is manufactured following Continuous Flow Production
Process
• It is possible to produce Coca Cola using continuous flow production
because whole process is continually repeated for 24 hours in same
sequence, producing large quantity of identical product everyday.
 Total Quality Management:
•  The Total Quality Management focuses on managing the total
organization to deliver quality to customers. The approach
infuses quality values throughout every activity with a
company, with frontline workers intimately involved in the
process.
Four significant factors of TQM are:
  ●
Employee Involvement.

•
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Focus on customer.

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Benchmarking.

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Continuous Improvement.
 TQM at Coca Cola
• Coca Cola ensure that their beverage products in the marketplace meet
Company requirements and consumer expectations. Consistency and
reliability are critical to product quality and to meeting global regulatory
requirements and Company standards. The global nature of business
requires that the Coca-Cola system has the highest standards and
processes for ensuring consistent product safety and quality -- from our
concentrate production to our bottling and product delivery.

• To ensure such consistency and reliability, the Coca-Cola system is

governed by The Coca-Cola Management System (TCCMS). TCCMS is
Coca Cola’s integrated quality management program, which holds all of
operations system wide to the same standards for production and
distribution of beverages. It guarantees the highest standards in the
management of product quality, the environment, and health and safety
throughout the Coca-Cola system
 Kaizen and TQM
• TQM means organized Kaizen activities involving everyone in a company – managers and
workers – in a totally systemic and integrated effort toward improving performance at every
level. One translation of the term Kaizen from Japanese is "to take apart and put back
together in a better way". One will immediate recognize that we have a term that relates to
quality, as Kaizen relates directly to improvement.
For all intents and purposes, Kaizen is most often associated with continuous improvement.
This is the improvement methodology where small steps are taken in an attempt to improve
an existing process. Feedback is collected, and then these results are analyzed

• The Differences and / or Similarities:

• At first glance, one would think that TQM and Kaizen do not have much in common, other
than the fact that they both deal with the topic of quality. One is a philosophy of what
makes up a quality organization, and the other is a methodology that one could apply to
encourage improvements to existing processes. As is typical for comparisons to TQM, this
instance ends up being a parent-child situation.
 Just-In-Time
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Planned elimination
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wastes thecontinuously
right place
improve
at productivity
the right time.

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Planned elimination

An
part in to
wastes thecontinuously
right place
improve
at productivity
the right time.

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 JIT
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Time & Money
Machine

Saves
●

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Manpower
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Transportation
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Inventory

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ROI

IMPROVES Profits
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IMPROVES ●

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Product Quality
Quality relations with customers

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Inventory levels

REDUCES Down Time

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REDUCES ●

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Machine setup and equipment breakdown
Production and delivery lead times
 Examples of JIT

Manufacturin Automobiles Services

Manufacturin Automobiles Services
g Industry Industry Industry
g Industry Industry Industry
 JIT - TOYOTA
Toyota motors implemented a “Kanban” or “pull system”.
Material is only moved when work station asks for it to be
sent. Objectives

• Limit resources
kanban is a card that is attached to a storage and transport
• Optimization of each
container.
individual step
It gives instructions, like
• To reduce
things that need to be withdrawn from the system,
manufacturing cost
items that need to be produced
• accomplish
When the amounts of materials is needed.
customers demand
• Flexibility in system
Types • Strong relationship
Production Kanban: lets the workers know that more of a certain between customer
part needs to be produced. and supplier
Conveyance Kanban: lets them know that parts need to be
transported to another center.
 Dell Computer
• Customized computing system, ordering right before assembly.

• It does not ask for raw materials until and unless that an order
is placed.
• capable of filling orders in a short period of time.

• Dell's low cost production system allows it to under price its

rivals.

• It does not store computers in dealer’s shelves for long time, it

starts working when an order is placed.
 McDonalds
Before implementation of JIT
• McDonalds used to be pre-cooked a batch of burgers and let them sit
under heat lamp. They would keep them for as long as possible and
discard it what couldn’t be sold. The only way to get a fresh burger was
to place a special burger order.

After implementation of JIT

• McDonald's doesn't begin to cook its orders until a customer has placed
a specific order. It is now possible because of new technology like
“record breaking bun toaster”.

• Provides customer order as fast as possible while having the finished

product sitting in inventory for as short as possible.
 Pakistani Parallel

Pakistan State Oil (PSO)

Points to Focus:
• How the Pakistan’s # 1 OMC provide best fuel to its customers?
PSO’s
management is
concern with a
range of
processes Refined Stored in Fuels are Tank High
involved in product Storage delivered lorries Quality
Tanks at Fuel
delivering high received to Retail are
depots and dispense
from Outlets decanted
quality fuel terminals
in Tank at Retail
into
refinerie all over custome
that keep on s Pakistan Lories Outlets s vehicle
moving the
wheels of Multi functional
additives injected
Pakistan
 Pakistani Parallel

Points to Focus:
• How are the required Quality Standards are met for every single drop of the
product? All the depots PSO’s MQTU tested the
and terminals samples at retail outlets
The Product of
of PSO are ISO regularly and results are
PSO is mainly
certified. The immediately forwarded to
delivered to
terminals are Head Office. These feedbacks
the customers
also EMS helps PSO to maintain quality
through
certified standards.
franchises.
This franchise Franchises are Equipment
Throughout
business is constantly through which
the process the
strictly trained and product is
quality control
controlled by retrained in passed is
personnel
The PSO quality provided and
monitor the
maintaining assurance for maintained
product and
TQM. customer exclusively by
take test
samples. services. PSO
Conclusion