POM in Coco Cola

8/13/2019 POM in Coco Cola

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Production & Operation management

Practical study

History

Just in time Advantages and disadvantages

Elements of JIT

Waste material

SWOT analysis

Recommendations

Conclusion


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Managing people and machinery in converting

materials and resources into finished goods and

services

Its deals with processes that produce goods and services that

people use everyday.


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Efficiency - Doing something at the lowestpossible cost

Effectiveness- Doing the right things to createthe most value for the organization

Value- Quality divided by price

Key OM Concepts


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Production System


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CASE STUDY

JUST IN TIME STRATEGY AT COCA-COLA


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VISION

People:Be a great place to work where people are inspired to be the best theycan be.

Portfolio:Bring to the world a portfolio of quality beverage brands thatanticipate and satisfy people's desires and needs.

Planet: Be a responsible citizen that makes a difference by helping build andsupport sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of ouroverall responsibilities

Productivity:Be a highly effective, lean and fast-moving organization.


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Established: 1886

Ranking: We own 4 of the worlds top 5nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta.

Operational Reach: 200+ countries

Consumer Servings (per day): 1.5 billion.

HISTORY


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Slogans1963 Things Go Better With Coke.

1970 Its the Real Thing

1975 Look Up America

1979 Have a Coke and a Smile

1982 Coke Is It!

1987 You Cant Beat the Real Thing

1993 Always Coca-Cola

2012 Burrrrrrrrrrrrrrrrr


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Major Competitors Of Coca Cola


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Just-in-time(JIT)is an inventory strategy that strives to

improve a business's return on investmentby

reducing in-process inventoryand associated carrying

costs.

JIT production is the system that enables a firm to

produce only what is required, in the correct quantity

and atthe correct time.

DEFINITION
http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Business


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The technique was firstused by the COCO COLA

Company.

The just-in-time inventory system focus is having the

right material, at the right time, at the right place,

and in the exact amount.


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PRODUCT COST:The cost of production is greatly reduced due to

reduction of manufacturing cycle time, reduction of wastes &

elimination of non-value added operations.

QUALITY: Quality is improved because of continuous quality

improvement programmes.

DESIGN:: Due to quick response of technical change, alternative

designs can be quickly brought on the shop floor.

PRODUCTIVITY IMPROVEMENT:Under JIT System Suppliers Supplies

High Quality Materials And The Use Of Automated Robotics WithPreventive Intensive Maintenance Programmes, Which Prevents

Machinery Breakdowns Etc. Ensures High & Perfect Product Quality.

BENEFITS OF JIT


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JIT REQUIRES SPECIAL TRAININGS WITH

Reorganizations of policies and procedure.

RESISTANCE TO CHANGE: JIT involves a change through out the whole

organizations, but human nature resists change.

JIT REQUIRES MULTI-SKILLED WORKERS

With flexibility to change. And it is very hard tofind those workers.

DISADVANTAGES OF JIT


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Time consuming and Wastages in product


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Waste is anything other than

the minimum amount of

equipment, materials, parts,

space, and workers time,which are absolutely essential

to add value to the product.

John Pemberton

Founder, Coke

INTRODUCTORY QUOTATION


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Overproduction

Waiting

Transportation

Inefficient processing

Product defects

How can production can be Waste?


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Overproductionis the exact opposite ofJust-in-time

production

JIT ensure that there is no waste

from overproduction


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it means produce more of something than is

wantedor needed

OVERPRODUCTION

Just in Time Success Factors


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Suppliers

PreventiveMaintenance

Layout

Inventory

Scheduling

Quality

Employee

Empowerment

JIT

Just-in-Time Success Factors

Lowering Inventory Reduces Waste


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Scrap

Work in process inventory level

(hides problems)

Unreliable

Vendors

Capacity

Imbalances




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Scrap

Reducing inventory reveals

problemsso they can besolved.

Unreliable

Vendors

Capacity

Imbalances

WIP


L i I R d W


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Scrap

Reducing inventory reveals

problemsso they can be solved.

Unreliable

Vendors

Capacity

Imbalances

WIP



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.Global presence

Word leading

brand

Strong financial

background

Strong relations

with the sports

world.

Brand awareness

Logo famous

Strong marketing

and advertising

Diversification ofother business like

food and snacks.

Aggressive

acquisitions

Increase in demand

for bottled water

Negative publicity

Low profits in

strong areasDecline in cash flow

Supply is restricted.

Lack of popularity

of many Coca-Cola

brands.

Health issues.

Intense

competition

Slowdown in rural

Demand

Negative health

effect

Commodity price

growth.

STRENGTHS WEAKNESS

OPPORTUNITIESTHREATS


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RECOMMENDATIONS

For the products like diet coke, pulpyorange and kinlely soda it better to stop

manufacturing these products

Invest profits for future growth and for

earning more of market share and profits Invest heavilyinto products like fanta and

sprite in order to push the products to

star status.

The organization has to carefully study

external environment moves and

accordingly devise strategies to gain

competitive advantage

CONCLUSION


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JUST-IN-TIME METHOD IS A PHILOSOPHY,

WHICH BELIEVES THAT WASTE CAN BE

ELIMINATED BY CUTTING UNNECESSARY

INVENTORY AND REMOVING NON VALUE-

ADDED ACTIVITIES IN OPERATIONS. THE GOALS

ARE TO PRODUCE GOODS AND SERVICES AS

SPECIFICATIONS AND CONTINUOUSIMPROVEMENT THROUGH VALUE ADDITIONS.

CONCLUSION


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THANKYOU

POM in Coco Cola

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