Adventist University of the Philippines

Putting Kahoy, Silang, Cavite

September 02, 2019

THE COCA COLA COMPANY

Company Mission | Operations Strategy | Techniques

In partial fulfillment of the requirements in

Operations Management with TQM

SUBMITTED BY:
Alma Jane Y. Patricio
Lady Love C. Intanto
Aaron Marv C. Herbolario
Joseph M. Ferrera
I. The Company Mission

• To refresh the world in mind, body and spirit

• To inspire moments of optimism and happiness through our brands and actions

• To create value and make a difference.

Coca Cola company mission statement clearly defines the purpose for which and reason

why they exist as an organization. The very purpose of the coca cola company as per stated by its

mission statement is to radiate positivity and around the world. Flexible and enduring, it is not

only customer-oriented, but it also aims to create difference and emits the positive energy to the

global market at large, thus used as the basis of every actions taken by the company.

The employees must be felt that they are a part of an organization that knows where it is

heading, in terms of the language it uses with their mission statement. “to create value & make a

difference” resonates with belonging to an organization, that wants to create a culture of

empowerment and continuous improvement. Moreover, the company preferred to be different in

the essence of value and make the world a big and smiling planet and positive indulgence. Coca

cola company established itself by showing its motive to spread positivity among its customer. It

is also a way of their marketing strategy to attach to its patrons.

II. Operations Strategy

A. Product and service design

BRANDS:

Carbonated

• Coca-Cola
 • Coca cola Light

• Coca Cola Zero

• Coca Cola Vanilla

• Sprite

• Sprite Zero

• Royal Tru-Orange

• Royal Tru-Grape

• Royal Tru-Lemon

• Sparkle

• Sarsi

• Pop Cola

• Schweppes (soda water, ginger ale and tonic water)

• Thunder Super Soda

Water

• Vival (mineral ice water)

• Wilkins Distilled

• Wilkins Pure

• Wilkins Delight

• Wilkins Sparkling

Sports

• Powerade
Juice

• Minute Maid Pulpy

• Minute Maid Fresh

• Eight O’ Clock

• Nutriboost

The product strategy and mix in Coca Cola marketing strategy can be explained as

follows:

Coca Cola product strategy in its marketing mix can be studied by understanding its wide

product range. The following products are offered by Coca Cola globally: Coca Cola, Sprite,

Fanta, Diet Coke, Coca Cola Zero, Coca Cola Life, Dasani, Minute Maid, Ciel, Powerade,

Simply Orange, Coca Cola Light, Fresca, Glaceau Vitaminwater, Del Valle, Glaceau

Smartwater, Mello Yello, Fuze, Fuze Tea, Honest Tea, Osewalla, Powerade Zero

Coca Cola products are sold in various packaging and sizes. For example, its core product Coke

is sold in 200ml, 500ml, 1ltr, 1.5ltt and 2ltr bottles in cans, glass and plastic bottles.

The Coca Cola logo is clearly made visible on each of these bottles and cans to

differentiate itself from Coke. The Coca Cola bottles also have unique shapes pertaining to the

brand. Coca Cola, Sprite and Fanta have large market shares in their respective segments, but

their growth is almost stagnant. Hence, they generate huge cash for the company. Minute maid

has high market share and good growth rate.

B. Capacity

“The total project cost was £1.6m to design, manufacture and install the new filtration

and wash-water recovery system.” The pre-existing water treatment system was built in 1989, in

accordance with the then standard Coca-Cola multi-barrier policy, using polyamide coagulation

and sand filtration, with de-chlorination achieved through carbon filtration.

When the decision was made to upgrade the facility, in addition to providing the improved

capacity, the new system was required to meet the standards laid down in the Coca-Cola ‘red

book’ which applies to the raw water input at all of the company’s factories worldwide.

THE PLANT

The Wakefield plant is mains-fed from a Yorkshire Water surface WTP. The influent is

stored in two 850m³ storage tanks before being pumped to four activated carbon tanks and then

passing through an ion exchange unit which forms the facility’s organics scavenging system –

organic content being a key parameter in product make-up water.

From here, the water flows to the ultra-filtration system, consisting of four skids with the

capacity to process 9,600m³/day – with a combined normal throughput capacity of 400m³/hour.

Each skid comprises six tubular modules, holding 24 of the 1.5m × 250mm membrane

cartridges, the 0.8mm diameter hollow fibres contained within having a filtration pore size of

0.03 microns. With over 10,000 fibres per cartridge, the effective filtration surface area of each is

40m². Every three hours each of the skids – in turn – is automatically taken out of service and

back-washed, with the flow rate through the other skids increased to 133m³/hour to maintain the

required supply to the plant. “The project increased water treatment peak capacity from an

hourly 300 m³/hr to 400m³/hr.”

KEY PLAYERS

The plant owners are Coca-Cola Enterprises. Severn Trent Water Services was the main

contractor on the project; Norit Membrane Technology supplied the UF membrane treatment

system, with its sister company, Norit Südmo supplying the necessary stainless-steel valves.

C. Process selection and layout

Continuous Product Flow and Made to Stock

Coca Cola as a bottling company uses the continuous flow method of manufacturing. As

we know, continuous flow may be defined as the so called process industries which refer to

manufacturing goods such as beer, paper, oil, and electricity, where in this case it would be a soft

drink company. Here, the products are made in a continuous fashion and tend to be highly

standardized and automated with very high volumes of production. The production flow of Coca

Cola involves passing sub-assemblies/parts from one stage of production to another in a regular

flow. Each stage adds to the products, this is typical among bottling plants. Coke used this

method because the products being distributed by the company are in wide variation and is sold

in bulk amounts. Products being distributed range from the bottled goods such as Coke, Diet

Coke, an assorted amount of different flavored soft drinks, to bottled water. Given that Coca

Cola has such a large range of production, continuous flow is the best way to produce the

products.

The type of customer order which Coca Cola uses to process goods is the Made to Stock

method. The MTS type of ordering system works very well with Coca Cola as a manufacturer.

This process can help to provide faster service to customers from available stock and lower costs

considering Coke normally has a distribution process of bulk items. Normally when customers
order Coca Cola products, it is in a bulk amount when distributing through a B2B operation.

When customers are purchasing individual bottles of Coke, it is after the process of the

wholesale item being sold to a business, and afterwards the business will distribute each single

item to their customers, making profit off of the product since they bought it in bulk from the

Coca Cola Company. The MTS method of customer order has a process where a standard

product line is specified by the producer, not by the customer and therefore products are carried

in inventory to immediately fulfill customer demand. Suppose Coke Cola used a Made to Order

customer process, they would never distribute their goods in a fast-enough fashion due to the

high demand of customers that the company possesses.

D. Work design

Satisfaction of employee includes happiness, content, fulfillment of their desires, need at

work, motivation, positive morale, goal and achievement, and fairness.

E. Location

Coca-cola Company operate around the world. It is located to where they can easily

access to their needs and supplies and have an ease of distribution of the products to retailers and

other customers.

F. Quality

It focuses on 5 core principles: Availability: easy access of consumers in right the right

package, right location and right time; Affordability: offers wide variety of premium quality

product and packages appropriate for the occasion at the right price; Acceptability: with

effective quality control that meets the highest quality standards in each country, with efficient

distribution combined with a detailed understanding of consumer needs and access through
different social media platforms thus allows the company to reach out to customers and

consumers in the market to meet their demands; Activation: motivates consumer by improving

product availability ang attractiveness at the point of purchase ad by building brand strength in

the local markets; Attitude: how sales representative and people behave everyday with

customers as they focus on meeting their needs.

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.

Moreover, 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. The company 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.

G. Inventory

Inventories of The Coca-Cola Company consist primarily of raw materials and packaging

(includes ingredients and supplies) and finished goods (which includes concentrates and syrups

in Coca-Cola’s concentrate operations and finished beverages in the finished product operations).

Inventories are valued at the lower of cost or net realizable value. Coca-Cola determines cost

based on the average cost or first-in, first out methods.

H. Maintenance

As committed to producing ad bottling high-quality drinks, the company is underpinned

by the international standard ISO 9001 and ISO 22000, as well as their own Quality and Food

Safety policy and the Global standards of The Coca-Cola Company.

The company have installed electronic bottle inspection equipment on all refillable

bottling production lines to identify and reject even the tiniest irregularity in the beverages

produced. Finished products will be packed in PET or glass bottles, metal cans, bag in box or

kegs. The water used in production process is subjected to special treatments that ensure the

microbiological safety and the correct concentration of naturally dissolved salts, in compliance

with specific compositional and sensory characteristics.

I. Scheduling

Coca cola used continuous reinforcement. When they see an employee is doing

according to their standards, they immediately reinforced their employees through

incentives, t-shirts and rewards. They also used Fixed ratio reinforcement. It is when Coca

cola company they given different tasks to employees and on the completion of these targets’

coca cola reinforced. When employee put the extra efforts in company’s operations coca cola

company gives incentives, bonuses and rewards for their extra inputs. Thus, its gives motivation

to employees to work harder and do their job well.

J. Supply Chains

The Coca-Cola Company strictly abides a unique supply chain system wherein the

company only produces syrup concentrate which is then sold to various bottlers throughout the

world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North
America by the name of Coca-Cola Refreshments. Other Coca-Cola bottlers, who hold

territorially exclusive contracts with the company, produce the finished product in cans and

bottles from the concentrate in combination with filtered water and sweeteners. The bottlers then

sell, distribute and merchandise the resulting Coca-Cola product to retail stores, vending

machines, restaurants and food service distributors. Most of these bottlers have exclusive rights

to distribution to their predefined geographic areas.

The Coca-Cola Export Corporation (TCCEC) is the entity responsible for selling the

concentrate to other bottlers around the globe. TCCEC along with its regional offices located

throughout the globe establishes partnerships with local bottlers who manufacture the beverage

using the syrup provided by Coca-Cola Company and then distribute it to their respective

markets.

K. Projects

1.In Perfect Harmony: Pianos for peace, Coca-Cola use power of music to unite and uplift

Atlanta.

2.Coke Invites Fans Into the Tiny Worlds of 14 Brands Through Mobile Content Platform.

3. Coca-Cola Updates Plans for Coca-Cola Beverages Africa, Including Intent to Retain Majority

Stake in Bottler

4.Stranger Things Have Happened: Inside New Coke’s Limited-Edition Comeback

5. Coca-Cola and Disney Designed These Galactic Bottles for Star Wars: Galaxy’s Edge

6. Individually Strong, Collectively Epic: Coca-Cola Scholars Foundation Celebrates 150

Impactful High School Seniors with $20,000 Scholarships

7. The Pod That Refreshes: Coca-Cola Executives Open Up About Leadership, Growth and

More in Company’s First Podcast Series

8.The Coca-Cola Foundation to Fund Community Recycling Pilots in Seven U.S. Cities

9. 25 Years After ‘Philadelphia’: Coca-Cola and (RED)® Release Featurette Charting Progress

Made in Fight Against HIV/AIDS

10. Dear Future Community: Meet the Challenge Changemakers

III. Techniques to Productivity

1. The company is seeking for efficiency in everything they do.

2. 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.

3. Good relationship to suppliers.

4. Coca-Cola ensures that all members of staff receive training prior to their employment, so that

employees can operate machinery efficiently.

5. Focusing on driving revenue and profit growth.

6. Ensuring a high-quality standard product to meet the expectations of its customer.

7. 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.

8. Reducing waste and costs such as marketing agency cost and non-media costs.
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