Coca Cola Paper Operations Management
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Transcript of Coca Cola Paper Operations Management
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Coca-Cola FEMSA (KOF) or Coca-Cola Bottlers Philippines, Inc. (CCBPI) Tacloban
Plant has been serving Eastern Visayas since September 25, 1953 with their products. Coke has a
long history and it has managed to stay on top with apparently a bigger share of the market. Oneof their competitive advantage was being the first company to serve carbonated drinks and
similar products. How else Coke does it, that’s a secret. But a trip to one of its plants might just
give a glimpse of CCBPI’s operations.
KOF exists to “Satisfy and please the beverage consumer with excellence” with the
vision of being “the best bottler in the world, recognized for its operating excellence and the
quality of its people.” To help them achieve this, they treasure the values of Passion for serviceand Consumer Approach; Innovation and Creativity; Quality and Productivity; Respect,
Comprehensive Development and Personnel Excellence; and Honesty, Integrity and Austerity.
Weekly planning or forecasting is done by their officials to determine the productionrequired for the current and proceeding periods. Table 1 shows the forecasted demand for the
month of September. Such data is posted on a bulletin board at their factory and is updated daily.
According to a factory personnel, the amount showed as
Required Daily Production to
Hit Balance is already above the
average daily production, whichmeans that for the last two days
of September, they were already
rushing production to meet thedemand. Demand are forecasted
to peak on Fiestas, Graduation,
and Holidays like Christmas in
December.
Coca-Cola designs its products toachieve sustainability. In doing so, they
practice the 3R’s. The most basic things
they do are presented in Table 2. Part oftheir efforts in maintaining sustainability
are programs related to Saving Water
and Greener Energy use.
Moreover, the bottles themselves are designed to be sustainable
(refer to Figure 1). From metal caps, KOF has moved to using plastic caps
instead. Even the print of the Coca-Cola trademark is slightly depressed to
avoid being corroded when placed side by side with other bottles during processing. Additionally, the bottles were designed to give it a distinctive
look that consumers could recognize even if they felt it in the dark and even
if broken, a person could tell at a glance what it was. KOF Tacloban produces coke products in glass bottles in their plant
Table 1. For the Month of September
Required Output (in cases) 667,048
Net of Beginning Inventory 137,744
Volume to Date 658,836
To Produce (over) 8,212
Required Daily Production to Hit Balance 4,106
Bottling Days Period 30
Days Utilized 28
Table 2. 3Rs
Reduce KOF launched new bottles with less glass
content
Reuse They distribute their products in
Returnable Glass Containers (RGB)
Recycle Broken bottles and plastic bottles are
recycled
Figure 1. Coke Bottle
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Table 3. Capacity
TRUCK
Leaves/Arrives
1. Unloading(empty bottles are
brought in;separated and
placed to conveyers)
2. Sorting(bottles are sortedand inspected by 6
people beforecleaned)
3. Washing(biggest machine
with 3compartments:
Wash, Clean,Sterilize)
4. Filling(bottles are 1st
inspected bymachines for dirts
and stains then byhumans; only
perfect bottles arefilled)
5. Packing andLoading
(bottle are cappedquickly to avoidcontamination)
Figure 3. Basic Process
but it imports products in-can and in plastic bottles either from Cebu or Sta. Rosa Plants. The
three main ingredients are Treated Water , Concentrate, and Carbon Dioxide (CO2) which
undergoes the process as shown in Figure 2.
Additionally, the plant’s capacity for producing these bottled products are shown in
Table 3. Factory capacity is roughly 36,000 physical cases (RGB) per day and stores finishedgoods at 203,355 physical
cases and 263,534
physical cases for empties.It also consumes an
average of 600-900 m3
and
uses 100,000-300,000
kwH or electricity permonth.
CCBPI employs high end
technology for its operations with
global standards so it operates in thesame pace and quality as with other
Coke products in other countries. In
other words, their products arestandardized. CCBPIs production can
be classified as a Mass Process
producing high volume and lowvariety. In a repititive process, the
plant uses the same machine in
creating solutions for the different
products and operates in two to three
shifts depending on the demand.
Figure 3 exhibits the
flow of the process in preparing the products. When the trucks arrive, it is
estimated that within 7 minutes after
arrival it can already leave afterunloading and loading cases.
Treated Water which
undergoes filtering isused to prepare a
sugar solution
The concentrate is
added in correctproportion to make
the syrup
The syrup is allowed
to cool down andCO2 is added to give
it a "punch"
Figure 2. Coke Preparation
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University of the Philippines Tacloban College
Magsaysay Blvd., Tacloban City
THE OPERATIONS OF COCA-COLA TACLOBAN
A Review on Company Operations
Presented to
MS. JOSHA OSIAS
Division of Management
In partial fulfilment
of the Requirements in BA 187(Operations Management)
First Semester, AY 2013-2014
By
MARC JOSEPH T. LOYOLA
BSA 5, 2009-37425
October 4, 2013