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06/06/2011

OPERATION MANAGEMENT

Coca cola

Presented by: Asia Shoukat (L1s10mbex0027) Ayesha Sadia (L1s10mbex0017) Nabeeha Raza (L1s10mbex0008) Rizwan Ellah () Hafiz Shahzad (L1s10mbex0003) Presented To: Mr. Marrif Sohail

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Contents ACKNOWLEDGEMENT................................................................................................. 4 COMPANY PROFILE......................................................................................................5 1)MISSION............................................................................................................... 5 HISTORY.....................................................................................................................6 OPERATING STRUCTURE.............................................................................................7 MANAGEMENT............................................................................................................7 MARKET SHARE...........................................................................................................8 GLOBAL MARKET SHARE.............................................................................................8 PRODUCTS ...............................................................................................................10 STRATEGIC PLANNING..............................................................................................11 DESIGN .................................................................................................................... 12 FACILITIES LAYOUT...................................................................................................13 Objectives.............................................................................................................14 Types of layouts ............................................................................................................................ 14 Process Layout .................................................................................................. 15 Product Layout .................................................................................................. 15 Fixed-Position Layout ........................................................................................15 Combination Layouts .........................................................................................15 Cellular Layout...................................................................................................15 Ingredient Delivery................................................................................................15 Washing and Rinsing.............................................................................................16 Mixing and blending..............................................................................................16 Filling..................................................................................................................... 17 Capping................................................................................................................. 17 Labeling................................................................................................................. 18 Coding................................................................................................................... 18 Inspection..............................................................................................................19 Packaging..............................................................................................................19 Warehousing and Delivery....................................................................................19 Delivery to Agents and Machines..........................................................................20
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CONCLUSION............................................................................................................20 REFERENCES............................................................................................................. 21 APPENDIX................................................................................................................. 22

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ACKNOWLEDGEMENT
This report has been prepared with a specific purpose in mind. It outlines the history and current scenario of the Coca-Cola Company globally and locally. The first part of the study takes us through the present state of affairs of the beverage industry and Coca-Cola Company globally. We think if any of us honestly reflects on who we are, how we got here, what we think we might do well, and so forth, we discover a debt to others that spans written history. The work of some unknown person makes our lives easier every day. We believe it's appropriate to acknowledge all of these unknown persons; but it is also necessary to acknowledge those people we know have directly shaped our lives and our work. First of all we would like to thank our teacher Mr. MAARIF.SOHAIL for their guidance throughout the semester. Then we would like to thank our friend and our group co-operation providing us the information that was required for completion of this project.

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COMPANY PROFILE

Coca-Cola is the world's leading beverage company. The company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce nearly 500 beverage brands. The company makes and distributes sodas, waters, fruit juice, teas and coffees and energy drinks. Through the world's largest beverage distribution system, consumers in more than 200 countries drink the company's beverages with over 1.6 billion servings each day. Major brands include Coke, Diet Coke, Sprite, Bacardi, A&W, Minute Maid, Dasani, Nestea, PowerAde, Vitamin Water, Simply and Georgia Coffee. In 2010, revenues were $35.1 billion and net income was $11.8 billion. Worldwide volume increased 5%. The company acquired the North American operations of Coca-Cola Enterprises in 2010, its largest bottler's, for $12.3 billion in cash and assumption of debt.

1) MISSION
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions. To refresh the world... To inspire moments of optimism and happiness... To create value and make a difference. 2) VISION Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth. People: Be a great place to work where people are inspired to be the best
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they can be. Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. Partners: Nurture a winning network of customers and suppliers, together we create mutual, enduring value. Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities. Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. Productivity: Be a highly effective, lean and fast-moving organization.

HISTORY
Coca-Cola Enterprises, established in 1986, is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces its beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca-Cola syrup for sale in fountain drinks. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca-Cola for most of the United States from The Coca-Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its companyowned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at a split-adjusted price of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986. In December 1991, a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, successful restructuring
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in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion

OPERATING STRUCTURE
V P , C u s to m e r D e v e lo p m e n t ( N ita P e n n a r d t)

SALES ( C h r is tin e D o d g e )

C u s to m e r S u p p o rt ( B o b C a n in o )

O P E R A T IO N S ( G le n n G e m m ill)

F IN A N C E ( M a tt H o ffe r)

HR (S to rm y B r o w n )

S p e c ia liz e d S a le s S a le s T e a m s O p e r a tio n s

C u s to m e r S e r v ic e

W o r k fo r c e D e v e lo p m e n t

C u s to m e r A c tio n C e n te r A n n a p o lis ( M a r ia K lu g )

T ra in in g & Q u a lity W o rk fo rc e C o m m u n ic a tio nA s s u ra n c e O p tim iz a tio n

MANAGEMENT
The hierarchy of Coca Cola Company is as follows.

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Chairman Board of governors Vice Chairman and chief operating officer

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

MARKET SHARE
Being the biggest company in the soft drink industry, Coca Cola enjoys the largest market share. This company controls about 59% of the world market.

GLOBAL MARKET SHARE


The following table can show the worldwide operating segments.

Unit case growth


10 year compound annual growth Compa ny Industr y 5-year compound annual growth Compa ny Industr y 2001 annual growth Compa ny Industr y

Nonalcoholic Drink 2002

All commercial Beverages 2002

Company share

Compa ny share

Compa ny per capita

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Income 6% 5% 5% 5% 4% 4% 18% 9% 70

This shows that the market of the company is geographically vast and it is controlling it with great success. In 2002, the company grew their carbonated softdrink business by nearly 250 million unit cases and generated record volumes. Because carbonated soft drinks are the largest growth segment within the nonalcoholic ready-to-drink beverage category measured by volume, that is why they are focusing more on this and they are continually increasing the pace because they know that accelerating this pace is crucial to their future success. Thus they are increasing their market day by day. The operation income earned by Coca Cola Company can be illustrated by the following pie chart.

This strategy has worked a lot and it has helped them to become the Worlds leading Soft Drink Company. The global unit sale of the Coca Cola Company is increasing from the last ten years. The data of the global unit sale of the Coca Cola Company can be represented by following chart.

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(Figure)

12 10 8 6 4 2 0 1971 1981 1991 2002 unit sale in billions

So there is positive growth in the market of the Coca Cola Company. There is a worldwide volume increase by 4% with strong international growth of 5%. This is only due to the innovative marketing programmers, which has deepened the relationship of the customers and Coca Cola. The financial health and success of their bottling

a critical component of The Coca-Cola Company's ability to build and deliver leading brands.
partners is

In 2002, the company had worked with their bottlers to turn good intentions into reality by improving the system economics. The results in 2002 reflect this steadily improving and mutually constructive relationship between the Company and their bottling partners. The main reason behind this relationship is to continue realizing shared opportunities for growth, with closer coordination of operations including customer relationships, logistics and production.

PRODUCTS
There are different brands of the Coca Cola Company, which are currently in use throughout the world. This company not only deals in the carbonated drinks but also other drinks. While launching its product, the marketing team considers the culture of the country. Major brands of coca cola
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Coke Sprite
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Fanta Diet coke Coke classic

STRATEGIC PLANNING
In the year 2002, the company had a great success, as the strategy worked which resulted in making Coca Cola Company the worlds leading company. In 2001, company accomplished the crust of its strategy as Worldwide volume increased by 4 percent with strong international growth of 5 percent and clear signs that our North American business is growing solidly and predictable. Earnings per share grew by 82 percent, as we delivered on our commitment to create volume growth while aggressively Return on common equity grew from 23 percent in 2000 to 38 percent this year. Return on capital increased from 16 percent in 2000 to 27 percent in 2001. The company has generated free cash flow of $3.1 billion, up from $2.8 billion in 2000, a clear indication of its underlying financial strength. The strategy for the future of the company is very straightforward. The marketing strategy for the year 2002 is as follows,

Accelerate carbonated soft-drink growth, led by Coca-Cola. Selectively broaden the family of beverage brands to drive profitable growth. Grow system profitability and capability together with our bottling partners. Serve customers with creativity and consistency to generate growth across all channels. Direct investments to highest potential areas across markets. Drive efficiency and cost-effectiveness everywhere.

Currently John Farrell is vice president for strategic planning for the coca-cola company. he leads the development of the overall strategy of the company along with the global planning process. the strategic planning of coca-cola is to reexamine their strategic models, based upon carbonated soft drinks (cola, lemon-lime and orange) and move to new beverage categories. Also be able to renovate bottling to make it flexible enough to provide manufacturing and sales distribution of all new products.
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Operation Management These are the major issues to consider when assessing this stock, according to analysts:
Key Positive Arguments Lower Interest Expense and Cost Control Aid Margins: The decreasing interest expense has offset the recent increase in operating costs. Coca-Cola Enterprises prefers to maintain its cost discipline. Restructuring Savings: The restructuring initiatives undertaken by the Company are expected to enhance significantly its operating profit growth. Strong Cash Flow: The Company generates a strong cash flow and CocaCola Enterprises is financially well leveraged. Key Negative Arguments Increasing Commodity Costs: Increasing commodity costs, including PET (plastic for bottles) resin costs, are negatively impacting CCEs margins and earnings.

Severe Competition: Higher growth and superior margins are being achieved by Pepsi in non-carb categories, which may place CCE at a disadvantage. Capital Intensive: The bottling business is capital intensive.

DESIGN

Pallet Design (decoration) is one of the most creative ways of highlighting the secondary placement and attracting customers for your products. You can choose from various types and options, and the best solution according to your specifications will be prepared by our sales representatives. Suitable combination to boost the campaign impact: - Floor Graphic - Standing Frame

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- Leaflets - Banner

Coke bottles aims to transform the structure of the product to cubic bottled drinks, allowing a significant gain in storage space and efficiency for recycling. The bottle would be made of 100% sugar cane by products, and collapses 66% smaller than its original size. An interesting and innovative idea. Be that as it may, redesigning iconic items such as the Coke bottle can be risky business, in terms of the products market place. Products and their design take on a relationship quality in peoples lives. Many consumers have difficulties dealing with a shift in a products appearance, even if there is no other change. With this said, it would be a huge gesture on Cokes behalf to implement a much needed change to our global situation regarding the use of plastic bottles. And really, eventually people will get over it.

FACILITIES LAYOUT

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They established main plant at Dasna at Ghaziabad. Dasna is the largest manufacturing facility to coke in India and covers an areas 80 acres. The plant manufactures more than 2 million units a day during peak season which extends from March Sept.

Objectives
1) To study and understand the process of layout selection and different types of layouts. 2) To observe the layout of a manufacturing unit and understand its working

Types of layouts

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Process Layout Product Layout Fixed Layout Hybrid/ Combination Layout


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Cellular Layout

Process Layout
Process layouts are found primarily in job shops, or firms that produce customized, low-volume products that may require different processing requirements and sequences of operations.

Product Layout
Product layouts are found in flow shops (repetitive assembly and process or continuous flow industries). Flow shops produce high-volume, highly standardized products that require highly standardized, repetitive processes

Fixed-Position Layout
A fixed-position layout is appropriate for a product that is too large or too heavy to move. For example, battleships are not produced on an assembly line.

Combination Layouts
Many situations call for a mixture of the three main layout types. These mixtures are commonly called combination or hybrid layouts.

Cellular Layout
Cmachines are grouped according to the process requirements for a set of similar items (part families) that require similar processing. ellular manufacturing is a type of layout where

Ingredient Delivery

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Sweetener Secret Formula CO2 Formula Water Materials

Washing and Rinsing

Washing Rinsing Sanitization Hydro wash

Mixing and blending


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H20 and Sugar Secret Formula H20 and Syrup


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CO2 Adding

Filling

Once all the ingredients have been mixed and blended and the bottles have been cleaned and sanitized, every thing is ready to start filling. This is a surprisingly complex process requiring accuracy at each step.

Capping

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Once filled, bottles are then capped. Coke uses different caps for different bottles glass bottles are topped with a metal crown "PET BOTTLES" are stopped with a plastic screw-top.

Labeling

Then they move on to be labeling A special machine dispenses labels from large rollers, cuts them and place on the bottles.

Coding

The bottle is now ready to be coded. Each one of Cokes beverages is marked with a special code that identifies specific information about it. These codes identify the date, time, batch no. and the MRP

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Inspection

Coca-Cola inspects bottles at many points during the process. With refillable bottles, when they are first brought into the plant They are washed and again after they are filled After filling, each plant sample bottles are analyzed in its lab to ensure quality is up to standards.

Packaging

Final inspection,Packaging

Warehousing and Delivery

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Maintain beverages Delivery on time

Delivery to Agents and Machines

CONCLUSION
Coca Cola products can be found practically anywhere in the world, such as on the tables of people in Tanzania, one of the poorest countries, and on the tables of the wealthiest people in the United States, where the company was founded. The success of this worldwide organization can be attributed to more than just its flavorful beverages. The Coca-Cola Company exists to benefit and refresh everyone it touches. The company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce nearly four hundred beverage brands. The Coca Cola Company has come a long way from selling a few servings of carbonated beverages in a pharmacy, to an international scale business. The company has accomplished that objective thanks to dedicated people who have collaborated through the years with the mission to attain high quality standards.
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Their product line has grown with the approach of cultural appreciation and understanding, which has been a key factor in the introduction of the products in over 200 countries. Coca Colas commitment to remain at the forefront of the changing social values in developing their marketing strategy has proven to their advantage. Undoubtedly The Coca Cola Company has developed all the elements necessary to run a multi-million, worldwide enterprise and refreshes all the people that come in contact with their products.

REFERENCES
http://www.scribd.com/doc/16945054/marketing-plan-of-coca-cola http://www.scribd.com/doc/19336990/Plant-Lay-Out-of-Coca-Cola-Co http://finapps.forbes.com/finapps/BuyHoldSellAnalysis.do?tkr=CCE http://pos-media.eu/products-services/point-of-sale/pallet-design http://www.scribd.com/doc/36461844/Final-Report-on-Coca-cola www.thecoca-colacompany.com www.news.bbc.co.uk www.india-server.com
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www.magindia.com www.coca-colaindia.com www.wikiinvest.com www.open2.net

APPENDIX QUANTITY PREFERENCE:


From Fig 2.13, we infer that about 47% of respondents prefer to purchase PET bottle of CocaCola Products. About 27% prefer to purchase glass bottles, 19% prefer Can of 300ml and only 8% prefer 1 & 2 litre bottles of Coca-Cola.

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Fig 2.14

Fig 2.15

BRANDING & PRICING:


From Fig 2.14, it is concluded that respondents find Coca-Cola products better than that of Pepsi products. About 62% respondents said that they find Coca-cola products better than Pepsi and only 38% supported Pepsi products.

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From Fig 2.15, we infer that about 62% of the respondent considers the pricing of Coca-Cola much more reliable than that of Pepsi. About 38% respondents think that Pepsi have better pricing than that of Coca-Cola.

Fig 2.16

Fig 2.17

QUALITY & TASTE:

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From Fig 2.16 & 2.17, its clear that Coca-Cola products have better taste and quality than that of Pepsi. About 73% respondents consider that Coca-Cola products have very good quality and taste. 27% respondents consider Pepsi products have better taste and quality.

Fig 2.18

Fig 2.19

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Jo chaho ho jaye cocacola enjoy

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