Coca-Cola Management - Case Study Example

Coca-Cola Management Report Coca-Cola Management Report Introduction Coca- cola has an integrated form of supply chain distribution. This means that products maintain their value event after going through supply chain. The core purpose of this approach is to allow customers to enjoy products and create efficiency as far as time value is concerned. The company concentrate majorly on the goods flow where a shorter channel is used to minimize the distance between the final consumer and the manufactures. Information is a vital component in any firm. The operations of Coca-Cola are determined by the feedback from suppliers and customers. Information from the customers will determined the amount supplied in the market. The essence of this process is to ensure the market remains satisfied while the production is steady. The channels of distributions are essential. In this case the bottlers play a bigger role in supplying products from Coca-Cola. There is need to focus on how the department plays a role in determining the functions of the operational department. Information flow At Coca-Cola, information is gathered at different levels of the internal environment. The external environment is also a vital component as far as information is concerned (Cooper & Ellram, 1993). Information in this case entails order request from customers and retailers, and raw orders from manufacturer to suppliers. The chain ensures that there is a cautious flow of products into the market. Feedback from suppliers and customers are essential to the manufacture as they ensure quality improvement and effective value addition models. Suppliers receive order requests from Coca-Cola on the number of products raw products to be supplied to the manufacturing plant (Pride et al., 2011). The manufacture hence provide feedback which will inform the supplier if the raw material supplied are up to standard or are of the requested quantity. On the other hand the bottlers receive orders from the retailers and hence request Coca-Cola for additional products in an effort to enhance supply into the market. The information flow is vital as it plays part it determines operations within the firm. Figure1 Material flow The supply chain management is also involved in material flow. This means raw materials from sources to the manufacturer. In this essence there is need to assemble the required material to create an output that is acceptable to the market (Pride et al., 2011). In this case the suppliers and manufacturers play an integral part. Each product in coca-cola is subjected into this process. The aim is to ensure the market demand is met and the time factor is utilized. The essence of any firm is to create a continuous process that will minimize on bottlenecks and capitalize on the firm’s capacity. Suppliers towards the firm are essential as they determine the output by Coca-cola. This means that a proper inventory system is deployed to manage raw material and manage the output before being released in the market as packaged beverages, mineral waters, and fresh juice. Figure 2 Materials are sourced from different suppliers and prepared for the manufacturing process. At the manufacturing stage different components are produced differently. This includes bottles, stickers and seals. The assembly stage entails combining different components into a single product ready to be released into the market. Different channels are used to distribute the product into the market (Sapardanis, 2015). This includes different bottlers across the world. The product is then warehoused through different distributors and released to retailers who eventually unveil the product to the final consumer (Mohammed, 2007). The material flow is essential at it defines the process to be used by the manufacturer in availing the coca- Cola Product into the market. Consumption is the final process in the material flow. At this stage the manufacture should be able to ascertain whether the products in the market satisfied the needs of the consumer. The rate of consumption will trigger the manufacture towards adjusting their process. High demand will prompt increased material supply through the process. Operational management A process map The essence of this map is to identify the manner in which Coca- Cola carries its operations. The work flow and bottlenecks are identified and models designed in an effort to adjust operations and adapt a more comprehensive approach. Time is an essential factor in manufacturing (Chase et al, 2004). The time-taken to produce a single unit will determine if a given system is effective. In this case the main concern will be on the firm has a developed mechanism that enhances production and minimize on wastage. The process map (figure 3) highlights the process involved and value additional components at Coca-Cola. The final output is essential at this stage at would determine the effectiveness of the operational management systems. Figure3 The process entails a collaborative process between the manufacture and the ensure supply chain. From the material flow (Figure 2). The bottlers are involved and the manufactures are involved in the market research. This means there are able to determine the demand in the market. The distributors hence place orders to the firm for a certain number of units to be produced. The firm accepts all orders in an effort to analyze them. The order form are analysed in an effort gauge the firms capacity and compare it the demand by the distributors. The evaluation of the order forms is based on merits. Those accepted orders then proceed to the manufacturing section. Those rejected are reversed to the evaluation process in an effort to resolve issues. The manufacturing process is undertaken in three major stages. The first stage involves processing. This includes combining raw materials that are essential in the processing coke products. At this stage different components are combined to create the wide range of products. This includes Coca- Cola, Fanta and Sprite. At this stage packaging does not take place. The volumes produces at this stage depends on the number of accepted order request in the previous stage. The next stage is value additional stage. At this stage details are added to give the products different tastes. Each product is given its distinct features. This includes colour and taste. The beverages are designed in numbers based on the output of the processing stage. The firm engages in models that will involve packaging. The products go through the assembly process. At the assembly process more value is added into the product. At this stage branding and packaging takes place. The Coca- cola firm packages the beverages and soft drinks based on details. Different bottles are design at this stage to offer diversity in terms of products. After bottling, the products are labelled and branded. The products are packaged accruing to size and types of packages. These include metal cans, plastic bottles and glass bottles. Before release to the market the product is tasted to accepting it meets the market requirements. The products are also counted to ascertain whether the units are according to the orders provide. The report is realised and after confirmation the products is realised into the market. The customer accepts the product and is required to offer feedback upon satisfaction. Bottlenecks and Pacing The number of orders per hour should reflect on the number of outputs in the assembly process. The failure at any stage will affect the general output. A steady flow of inputs at different workstation ensures that the firm operates at its full capacity (Plenert, 2002). This limits bottlenecks and minimizes on the time taken to realise output to the consumer. Frequent supervision across work station will minimize on bottlenecks and effectively ensures a steady flow of goods to the market. The bottlers play an important role as the offer warehousing services which means goods are availed within the stipulated period. The effective operations management system ensures that there is a steady flow of work across the production line and at the same time deliver goods within a specific period. According to water- Technology (2014), the Wakefield facility has the ability of producing 4000 can sodas and 3200 Plastic bottles per minute. This according to the source indicates 30% increase effectiveness. The firm is able to handle more than 1000 order per minute. The time taken to deliver is shorter due to the active nature of the production Line. Production process of Coke The initial process involves processing the beverages. At this stage vital ingredients are combined to form a solution. The solution is carbonated to give Coke the pleasant state. The product is then taken through a number value addition process. This includes sugar and addition of other additives. The product is the tasted in an effort to identify if the mixtures are according to proportion. The soda is then packed in various packages. These include cans, plastics and glass bottles. The soda is then tasted to ascertain the volumes upon satisfaction the product is released to the market. The distribution channel will depend upon the nature of customers. The process is repeated to all other products hence ensuring a continuous flow of products (Plenert, 2002). The 4 V’s analysis There is need focus on the manner in which Coca-Cola transform raw materials into the final product. The diverse and unique nature of operation always determines the quality of output. Positive feedbacks are triggered by the level of satisfaction. The firm produces products based on market demand. However, there is a complex process that ensures that these products are available in the market. The effectiveness of the process would depend on the 4v’s deployed within the firm’s production line. There is need to analyse Coca- Cola based on these components. The analysis of these components will determine the strengths of Coca-Cola and identify the Non- value components. Volume dimension The plant has the capacity of producing over 1000 units per minute. This implies that at full capacity the firm has the ability to meet the demand of the market. The steady flow of materials across the production line indicates the capability of the firm to handle orders and deliver them on time. The level of output indicates the plant’s ability to deliver. Volume dimensions imply that a firm works on utilising idle capacity and maximizing on its potential to deliver goods within the stipulated period. The high level of input combined to acquire the desired output indicates the ability of the firm to handle inventory and deliver products to the market. The lower unit cost of these product result form the ability of the firm to handle capacity by reducing the overall cost. These costs would otherwise be incurred if a single unit was produced. Variety dimension The products are readily available in the market meaning it has high variety dimension. The type of products available in the market indicates the desire by the company to meet the demand of the market and in exchange supply products that are unique. The uniqueness of these products indicates the company’s objective while producing products for the market. The flexible nature of the firm allows it to adjust their production models to suit the demand at a specific period. The effort by the firm to use the high variety model is to create a market that will be based on satisfaction. The expansive production line bases on the ability to offer products that vary in nature but meet the demand of different customers Variation dimension In an effort to meet the market demand Coca- Cola offer products that distinguishes them from the market. The packaging of different brands into different materials allows the firm to control prices hence allowing the firm to supply more products into the market. The essence of this is to ensure a steady flow of customers and a continuous production. The rival firms offer similar products but Coca-cola offer product based on the market demand. For instance while purchasing coke, on can chose either a coke diet, coke Zero of classic at a similar price. This product is developed at the value additional stage where certain ingredients are eliminated to allow customers with health issue enjoy products from the market. Visibility dimension Although the firm has the capacity to produce high volumes of products at a specific period, it lacks high visibility dimension (Aswathappa, 2005 & Nersesian, 2000). This means that the distributors are given a timeframe in which they should wait before the product is delivered. The final consumer depends upon the distributors for information and products. The customer has less control over the product. Customers are not allowed the freedom to track their orders. This is the limitation within the operations of the firm. The packaging and value additions are made based on earlier request by customers hence customers are not able to modify any specification. Non-Value added (MUDA) At the processing section, the firm has a separate value addition and assembly department. There is need to merge the value addition and assembly factions. This means that the assembly section adds no value to the product as an independent unit. The elimination of the process will reduce the lead time and hence increase satisfaction (Barnes, 2008). This will increase output hence allowing room for more production. The inclusion of the assembly plant will mean that the value addition process will be working over the capacity. The idle capacity will need to be utilised. By utilising the idle capacity the firm will reduce on waste and focus on quality assurance (Coca- Cola Company, 2010). The introduction of quality assurance department at the two levels of production will ensure products are produced according to the demand. It will also ensure the production process is effective and working at full capacity. The elimination of process will ensure low cost of production hence minimize operational expenses. Minimizing these expenses will imply that the firm will work on value addition and invest on projects that will ensure improvement along the production line. The initial process is also long hence the firm needs to design its production line based on demand products. This will mean that the firm needs to identify a more visibility dimension to be used during the production. This means reducing the lead time and minimizing the process involved from the utilization of the order to the final product. The product should be able to meet the market demand and present itself as quality. Value addition is a major component in any firm but the cost of production should be checked before engaging into a production process (Coca- Cola Company, 2010). By reducing the lead time the firm has the potential of meeting the market demands and works on formalities that will ensure each unit along the production line works at full capacity. Figure 4 Conclusion Operations management is tasked with ensuring an effective production system. A system that minimizes the lead time and utilise the available capacity to procedure output according to demand. The processes involved should aim at ensuring the final product is quality and minimal costs are employed while producing ascertain product. In the case of Coca- Cola the operations management department collaborates functions with other units within the firm to ensure quality products are produced. The final product should have been tested for quality and are produced depending on the demands. The collaboration of functions ensures that the operations with a firm are effective. Reference Aswathappa, K. 2005. Human Resource and personnel management. New Delhi: Tata McGraw- Hill Education. Barnes, B. 2008. Operations management: An International perspective. London: Cengage Learning. Coca- Cola Company. 2010.Hours of Work improvement guide. [Online] Coca- Cola. Available at: [Accessed 6 March 2015] Cooper, M.C. & Ellram, L.M .1993. Characteristics of Supply Chain Management and the Implications for Purchasing and Logistics Strategy. The International Journal of Logistics Management, 4. 2: pp.13 – 24 Mohammed, I.R. Banwet, D. & Ravi, S.2007. Value Chain relationship- A strategy matrix. Supply chain management International Journal, 8.1: pp. 56-77 Nersesian, R. 2000. Trends and Tools for Operations management: An Updated Guide for Executives and Managers. Westport: Greenwood publishing group. Plenert, G. 2002. International operations management. Copenhagen: Copenhagen Business School Water- technology. 2014. Coca- Cola Bottling Plant, Wakefield, United Kingdom. [Online] . Available at: < http://www.water-technology.net/projects/cocacolabottling/> [Accessed 6 March 2015]. Read More