Operations Management (The Coca-Cola Company)

The report analyzes the critical operation management decision sectors for Coca-Cola, evaluates its strengths and weaknesses, and suggests ways to exploit them synergistically for improving performances. The report covers different OM decision areas, including quality, inventory management, and layout and process design. It also discusses additional decision areas of operation management, such as design of goods and services, capacity and process design, location strategy, human resources and job design, supply chain management, scheduling, and maintenance. The report concludes with ways of improvement for Coca-Cola.

Running head: OPERATIONS MANAGEMENT
Operations management
(The Coca-Cola Company)
Name of the student:
Name of the university:
Author Note

1OPERATIONS MANAGEMENT
Executive summary
The sector of operation management controls and designs production processes and redesigns the
operations of a business. This is done by creating goods and services. It also includes the liabilities
for assuring that business operations turn out to be useful for meeting customer requirements. It also
helps in indicating that the business activities are effective regarding the required resources. Here,
Coca-Cola is taken as the case study. Here, the critical operation management decision sectors for
Coca-Cola are considered. Further, the strengths and weaknesses are analyzed for Coca-Cola. Next,
the report shows these strengths and weaknesses are exploited synergistically for developing the
performances.

2OPERATIONS MANAGEMENT
Table of Contents
Introduction:..........................................................................................................................................3
1. Different Operation Management (OM) decision areas:...................................................................3
1.1. Quality:.......................................................................................................................................4
1.2. Inventory management:..............................................................................................................5
1.3. Layout and process design:.........................................................................................................7
1.4. Discussion of additional decision areas of operation management:...........................................9
2. Evaluating strengths and weaknesses of Coca-Cola:.......................................................................12
2.1. Strengths:..................................................................................................................................12
2.2. Weakness:.................................................................................................................................12
2.3. Ways in the above characteristics can be exploited synergistically for improving
performances:..................................................................................................................................13
Conclusion:..........................................................................................................................................14
References:..........................................................................................................................................15

3OPERATIONS MANAGEMENT
Introduction:
The operation management deals with controlling and designing the process of production.
This also involves redesigning business operations. This is done while producing services and goods.
This includes different responsibilities to assure that the business operations are sufficient to meet
customer requirements. Besides, this also indicates that the business activities are efficient as far as
few resources are needed.
To understand the operation management better, “The Coca-Cola Company” is considered.
This is an American marketer, retailer, manufacturer and cooperation of various non-alcoholic
beverages syrups and concentrates.
The following study identifies three vital operation management decision areas for Coca-
Cola. Then the strengths and weaknesses are evaluated for the company.
1. Different Operation Management (OM) decision areas:
The operation management is primarily concerned with supervising, organizing and
planning. These are done under the contexts of manufacturing, production and provision of services.
Here, operation management is delivery-focused, assuring that Coca-Cola has successfully changed
the inputs to various outputs effectively. Here, the contributions themselves can represent any
elements from technology, equipment and materials for a human resource like workers and staffs.
There are a couple of relevant terms that help in answering the questions of what operation
management has been more precisely. These are logistics and supply chain management (Heizer,
Render and Munson 2017).

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The control of operations has a strong founding stone in both sectors. Here, for instance,
studying the worldwide trends in supply chain management for meeting the demand of the client is
critical. Having logistics, considered and careful use of resources and cost-effectiveness is highly
vital in this area. Here the funds might be in short supply and the expectations of customers are
skyrocketed. Here, the three vital operation management decision areas are considered. They are
inventory management, process and layout design and quality. They are demonstrated hereafter.
1.1. Quality:
Knowing the products for Coca-Cola Company has urged them to choose proper quality
specifications. This is prior they are considered of critical importance. Coca-Cola has monitored a
process and product characteristics in real-time. This was done by notifying plan personnel as
various deviations are get detected. Using product genealogy abilities, Coca-Cola can quickly find
out the scope of quality deviation and different quarantine production. This is for assuring that none
of the suspect product gets shipped (Deresky 2017). Additionally, the real-time abilities, Coca-Cola
has been capturing historical quality information, delivering in-depth knowledge for supporting the
current initiatives for quality improvements.
The quality operation management is seen as the collection of various tasks. These
coordinates direct and tracks and multiple functions to report and measure on quality. The broad
scope of quality operation management involves the quality operations and control of the services
for assuring the quality of intermediate and ultimate products (Sodhi 2015).
Here, Coca has used the theory of Business Process Redesigning. It is applied in sectors like
production and manufacturing, sales and customer services. The quality operation management of
Coca Cola must include the following:

5OPERATIONS MANAGEMENT
 Testing and then verifying the quality of materials. Examples of this include raw, final and
intermediate materials.
 Measuring and reporting the ability of equipment for meeting quality goals.
 Certifying Coca-Cola’s product quality.
 Setting different standards for quality.
 Setting different standards for quality personnel certification with proper training.
 Setting standards for controlling of quality.
Total quality management for Coca-Cola:
Coca-Cola is known for its package and product quality. This assures that they are still
present in the marketplace through meeting consumer demands and company requirements. Here,
the international nature of business has needed that the Coca-Cola system consists of the most
significant processes and standards. This is to assure constant product security (Ivanov,
Tsipoulanidis and Schönberger 2019).
Ways of performance improvement for Coca-Cola:
Living with values: They must make leadership the courage to shape a better future.
Regarding collaboration, they must leverage collective genius. Their integrity must be real and
passion should be committed at heart and mind. Regarding diversity, they must be as inclusive as
their brands and regarding quality. They must focus on what they perform.
1.2. Inventory management:
The inventory management, under the context of Coca-Cola, indicates the action to manage
the material resources of Coca-Cola. This is helpful got the company in earning revenue for the
future. The operation manager is liable to handle that part. For Coca-Cola, this includes the below.

6OPERATIONS MANAGEMENT
Meeting various
demands
steadily
The need for a particular service and product is not the same in every season.
At Coca-Cola, the well-planned inventory of goods enables to fulfil various
requirements. The key for earning revenue of optimum capitalization of
demands (Tang 2018).
Continuity of
operations
At Coca-Cola, sound inventory management is helpful to run the operations
smoothly.
An economy of
operations
Well-managed inventory management system has been helpful for Coca-Cola
to cut their costs. Here, the primary advantage of the practice is that Coca-
Cola can keep up with demand. As it is bought in huge amount, it gets
eligible for different discounts.
Coca-Cola’s Inventory management:
They consist of lots of vending machines. These are placed at different remanufacturing
facilities. They have decided to utilize the barcode software. The inventories of the machinery are
done manually. This is time-consuming, labor-intensive activity (Olins 2017).
The Coca-Cola is a favorite brand in the world. They have attached special significance to
quantity and quality to the products. The operation management is helpful to maintain that is an easy
way.
Ways for improving the performance of Coca-Cola:
First of inventory optimization must be done. This must assure that the proper amount of
inventory is been stoked at the proper time at the proper place. Then there is real-time analytics.
Accessing this helps in putting the course to possess suitable product and sales. This forecasts that in

7OPERATIONS MANAGEMENT
the fingertips. Then there is usage of suppliers suiting Coca-Cola’s business (Wan and Dresner
2015). Here, the suppliers are the important part of the restocking equation and production. This is
helpful to track the performance, make adjustments as required.
1.3. Layout and process design:
The process layout is the idea of design. Here, the groups of workstations as per what is
performed. This has been found that the production is higher, as the products move across the
output. This happens as per the process is completed. As Coca-Cola places various machines
together that works towards finishing a single operation, the product moves across the production
quicker as the devices are located over the floor of the output (Bhardwaj 2016). This process layout,
also known as the functional layout is designed in keeping everything that is organized in such a way
that all the things have its place. Though this is an organized layout, where every people always
knows where the tools and supplies are located. This is effective for production lines. Here the
similar job is done all the single time. Here, the payout of the process is efficient as every position is
in a custom situation.
Development of process layouts includes the minimizations of time, distance and cost of
transportation. To accomplish this Coca-Cola has been using Murther grid. Here personal
information has been summarized over the network. This displays various combinations of a
department, machine pairs and workgroup (Coombs 2014). Here, the Six Sigma theory is applicable.
It utilizes the strategies quality management tools like statistical analyses. It has trained employees
of Coca-Cola to turn into experts in those methods.
The benefits of process layouts include the following.
Flexibility Coca-Cola has the ability to corporate various process requirements.
Cost At many times, the common-purpose toll used is less costly in purchasing

8OPERATIONS MANAGEMENT
and less expensive and easy to maintain specialized tools.
Motivation Here, the employee can perform various tasks over many machines.
Process layout also permits Coca-Cola to use a different kind of distinct
incentive system.
System protection As there are numerous machines available, the process layouts are
especially vulnerable to various failures of equipment (Ru, Shi and Zhang
2015).
However, Coca-Cola also considered various aspects that might not be advantageous for
them. They are highlighted below.
Utilization The rates of use of equipment is the process layout that is frequently low.
This is due to machine usage which is dependent on various requirements
of output.
Cost As the batch processes are used, the prices of in-process inventory are
higher. Here, the lower volume indicates greater per-unit costs. Here,
more specialized attention is needed for customers and products. Here, the
setups are more done more frequently. Hence higher prices are to be set
up. Here, material handling is lesser and more inefficient. Further, the
range of supervision is lower because of job complexities. This includes
setups and routings. Hence, supervisory expenses are higher (Dekhil, Jridi
and Farhat 2017). Moreover, here the type of layout is accounting,
purchasing and inventory control that is usually highly involved. Lastly,
there is a confusion of Coca-Cola. This has been consistently changing
the schedules and routines. This makes the process of juggling

9OPERATIONS MANAGEMENT
requirements more complicated.
1.4. Discussion of additional decision areas of operation management:
Design of Goods and
Services
This includes how one can assure that the services are easy-to-use and
relevant. Them the ways to demonstrate the human touch in a digital
world where they have been working is to be done. Next, one must
assure how can assure how the customers have been enjoying the
works with them. Besides, they must deliver how one can provide
delightful experience reflecting the brand of Coca-Cola.
Capacity and process
design
The Coca-Cola is a noteworthy illustration of a case that has
productively leveraged the central competencies in spreading out to
latest fangled market. This is done by identifying when to consider
advantages and decrees the risks that are entailed in business. The
management of capacity as per product level of Coca-Cola has been
maintained through the augmented, core and actual product. With the
help of capacity management, Coca-Cola can pull economics of scales.
This is helpful to spread out to fresh markets.
Location Strategy The external strategy of Coca-Cola is done through an understanding
of the effect of the environment. On the other hand, the internal
analysis is done to know the internal capabilities.
Human resources and
Job design
This include various practices. These are done as per the regions they
have been operating. The HR policies are created in compliance with
culture and local labour laws. Here, the cultural diversity of the
primary element of their international activities.
Supply chain They have been distributing and producing more than two billion unit

10OPERATIONS MANAGEMENT
management cases of products. These have been taking place annually around their
territories. Here, the supply chain management is liable for Coca-
Cola’s procurement, sustainability, engineering, manufacturing and
planning. Thus they have played a core role to manage the liability.
Scheduling The scheduling is done by reducing morale and performance. Here, the
poor overtime scheduling has been leading to reduced employee
performances and various low levels of morale in workplaces.
Maintenance Coca Cola has used a system known as TCCMS or Coca Cola
Management System. This is to manage their quality of products. This
is held every operation in similar standards for distribution and
production. This guarantees the most essential standards as per health,
safety, environment and quality of customers.
Activities of Coca-Cola on layout and process design:
Coca-Cola consists of production systems and bottling of various facilities across the globe.
It has to play a vital role in business. This is because this is at the top of the soft-drink sector. The
outsourcing has been coming at the cost to develop various in-house skills. This has been eventually
leading to cost reduction.
Coca-Cola has applied the SCM or Supply Management theory in practices. It has included
collaborative demand planning and replenishment, collaborative production and logistics planning
(Das 2015).
Ways of improvement for Coca-Cola:

11OPERATIONS MANAGEMENT
Focusing on the
market
They should be focusing on customers, customers and franchise partners.
They should be getting out to the market, listen, observe and learn (Ross,
Pandey and Ross 2015). Besides, they must acquire a distinct worldview. They
must be focusing on execution in the everyday marketplace. They should be
insatiably curious.
They must
work smart
They should act with urgency, remain reactive to changes and have the
courage to alter the courses as needed. Further, they should stay constructively
discontent and work efficiently.
Coca-Cola
should act like
owners
They should be accountable for actions and inactions. Further, they should be
responsible for operations and inactions. Besides, they should be stewarding
assets and concentrating on creating value (Andini and Simatupang 2014).
Moreover, they can reward people to take risks and seeking better ways to
resolve issues. They must learn from the results, regarding what has worked
and what have not.
Become a brand They should be inspiring fun, optimism, passion and creatively.
2. Evaluating strengths and weaknesses of Coca-Cola:
Here, this is performed such a manner that its can highlighted how both could be exploited
synergistically. Thus their performance can be improved.
2.1. Strengths:
Brand awareness Coca-Cola has been maintaining their position at the top as the clear-cut
winner. This producer of beverage has garnered core following customers.
This is because as various customers have deemed themselves with fans of
their products. This tends out not to shift towards other brands (Li and Li

12OPERATIONS MANAGEMENT
2017). Moving forward, Coca-Cola’s substantial financial resources have
been fueling the sizeable marketing efforts. They have risen their product
innovation. This has been propelling market-share gains on a longer haul.
Robust
distribution
network
Coca-Cola has made their products available for people in about 200 nations
across the most extensive distribution network. Further, the critical system
has been allowing a developed level of quality control and security for
goods. This stable distribution platform has been booing for expansion in
current years. The organization has sought to reach the latest customers in
distant locations (Gaither and Austin 2016). Here, the different operations
have been aiding product introductions, deliveries, volumes and market
present during a vital plan.
2.2. Weakness:
Water
management
Water is the primary ingredient for the products of every company in a
substantial manner. This is vital to produce agricultural elements over which
business has been depending on. This is required in the core manufacturing
process of KO. Here, the resource is complex prosperity served by Coca-
Cola. Since the demand for water continued to climb across the world, the
world turns to be scarce. Here, the entire quality of available water sources
has been deteriorating markedly as the demand for water continues to climb
across the globe. The water turns out to be scarcer (Banks 2016). Here, the
quality of available water sources has been well deteriorating markedly. This
has left the Coca-Cola system for incurring the more great face or higher
costs capacity constraints. This has been adversely affecting the profitability

13OPERATIONS MANAGEMENT
and net operating revenues in the long run.
Foreign current
fluctuation
The company has earned revenues, own assets paid expenses and incurred
liabilities in various nations except for U.S. dollar. It used 70 functional
currencies in 2014 apart from U.S, dollar. They have derived about 26.1
billion dollars of the net operating revues (Eltantawy 2016). This is from
operations external to the United States. The weakness has been offsetting by
strengths because of geographic diversities for the actions of a company.
Coca-Cola has employed the derivative economic instruments for further
reducing the exposure to foreign currency fluctuations of exchange rates.
2.3. Ways in the above characteristics can be exploited synergistically for improving
performances:
Coca-Cola has been working hard for using the ample war chest to create the presence that
quickly-growing beverage categories. At present, it has owned 16% of the Keurig Green Mountain.
They have been developing a current device of Keurig Kold. Besides, Coca-Cola has currently
finalized the purchase of 17% stake in Monster Beverage. Here, the deal has been providing the
organization with access to the growth segment of favorite energy drink (Ling 2017). Coca-Cola has
been anticipating the transactions bolstering top and bottom line very quickly. The joint ventured has
also delivered Coca-Cola with variously established inroads to the young customer base. This can be
used by Coca-Cola to forge the rise in relationships with health drink, energy and coffee business.
Conclusion:
The above study has demonstrated how operations at Coca-Cola has been focusing on
different techniques and tools. This has been assuring effective process of production. As Coca-Cola
has been providing services, the operational administrations have indicated top leadership factors.

14OPERATIONS MANAGEMENT
These are propping up customer sales and loyalty. The discipline has offered different benefits that
have included better profitability tracking, expertise and manufacturing expertise and regulatory
compliances. Then there is profitability management. This is helpful for Coca-Cola to cause
corporate leadership for challenging traditional wisdom and employees on the sense of what has
been operationally correct. Next, there is a competitive advantage. The businesses have been
sufficiently managing operations for handling primary internal and external factors. Additionally, the
intellectual capital has shown different knowledge, expertise and abilities that is gathered by Coca-
Cola, in due time. Besides, there are external factors of operation managers include state of economy
and strategies of rivalries. Besides, there is a manufacturing edge. The operation management has
been helping Coca-Cola to improve or change the way it has been producing products and storing
items in raw materials. Finished products and work-in-process merchandise. Lastly, there is
regulatory compliance, Coca-Cola’s corporate management can eradicate hefty fines of government
and different adverse regulatory decisions.
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