Operations Management of Coca Cola [PDF]

Zitiervorschau

Operations Management Of Coca Cola The soft drink industry has two major players, Pepsi and Coke. Besides these there are some local players at different market, operating with different market share. But they are not a big threat to the market share of either Pepsi or Coke. However as of now the two big names in cola industry are only two top U.S. players Pepsi and Coke and the fight for acquiring the market is always going between these two players and the Cola industry has along seen a COLD WAR between these two players to acquire the market share. That means one company gains at the cost of the other. One of the main characteristics of the Cola industry is the absence of loyalty and it is consumed mainly on impulse. The CSD (Carbonated Soft Drinks) industry mainly Coca cola has channel through which it reaches the end consumer. They are Production --- Plant Warehouse --- Depot Warehouse --- Distribution Warehouse --Retail Stock --- Retail Shelf --- Consumer The main reasons behind its business growth and business success are the quality product that they sale to their consumers. So, quality remains key priority for the success of the soft drink industry. Hence, Operation management is very important function of organization and quality management is key aspect of it.

INTRODUCTION Operations Management is present in many occupations as well as those of manufacturing and service industries. I believe it to be present in daily duties of any person although they may never notice. With this in mind I see operations management as a skill anyone has with an aim of achieving an outcome of something they are working towards in a logical process with thought of awareness of a system structure. Operations management has been around for some time. Operation management is depending upon five performance objectives i.e. Quality, Flexibility, Cost, Speed and dependability. The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company. This unique worldwide system has made The Coca-Cola Company the world’s premier softdrink enterprise.

The Company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks.

CONCLUSION AND RECOMMENDATIONS The report concludes that the measurements of quality may well vary in number or identity from an industry to other. The comprehension of these differences in the different industries could help the management in each industry to adopt the suitable approaches in the application of quality practices. As far as soft drink industry, the quality management is more imperative and sensitive considering the use of drinking water and chemical products. So a genuine and high rate quality management is indispensible for soft drinks industry. Obviously, the quality management of Coca-Cola should be assessed from this perspective. Prior to assessing the quality management system of Coca -Cola with the help of a suitable model, it would be worth to throw some light on quality vision of the company. Coca-Cola ought to guarantee that every one of its people or staff are appropriately trained formerly they develop portion of the manufacturing and operational team of the company. Moreover, the company ought guarantee that the machines that are functional in the manufacturing and purifying of water ought be the finest of quality, where increasingly high quality apparatuses prerequisite to be brought to exam the existence of microbes and additional such party and at the lowermost likely echelon. Last but not the least, the management of Coca-Cola necessitates to include more ranks of quality checks and guarantee that there is severely monitoring at every rank. The elementary plan of product design at Coca-Cola has had been modest, tangible and continuing, whilst the company carry refreshment, worth, happiness and fun to the consumers and therefore the design vision is focused towards effectively foster and protect products. Though Coca Cola is facing the problem to make a balance of its core product design vision and the changing trends. Therefore, the company offers likely visions into potentials for and glitches of learning from fragments of product design process and implementation. The company should acknowledge that a comprehensible oversight system may well be functional to advance CocaCola’s upkeep package and will help out the company workers recognize the adding factors to a

system catastrophe whilst restricting forthcoming events.TQM of Coca-Cola is intended to inspire and distinguish real application of environmental management system and this attainment has had been made conceivable by the plant's devotion to company’s TQM program named TCCQS. The leading management of Coca -Cola should ensure that the suitable processes of communication are established in the set up and that the communication is realize with regard to the effectiveness of QMS. Further, the leading management of unit Coca-Cola should revise the QMS in programmed intervals in order to ensure the suitable application, the appropriateness, sufficiency, efficiency, and effectiveness. For cost effective and efficient inventory management Coca-Cola implements JIT which an inventory management tool that directs to cutting the costs and to fastening the flow of final products to customer, where adopting this tool the company has benefits entailing advancing performance measures, offering more precise and suitable measures for pricing decision-making. However, it is recommended that Coca-Cola JIT based inventory management should be well equipped with full synchronization flanked by productivity on the one hand, and dealers on the other hand.Last but not the least, the capacity management in terms of product level of Coca-Cola is controlled through actual product, core product and augmented product. Through this capacity management, the company is capable to pull economies of scale, spread out into fresh markets, and defend their core brands with that of warding off the likelihood of cannibalization. However, in order to most excellently inflate its worldwide product mix it is prudent to carry on undertaking what the company is doing best in the past, where Coca-Cola is recommended to take on a less risky and more money-making staged expansion focused on brand name and quality.