Discuss about the Production Process in the Coca-Cola Company.
The Coca Cola Corporation was initiated in the year 1892. The company has headquarters in Atlanta, Georgia. Coca-Cola is among the multinational corporations that manufacture, retails, distributes and markets the non-alcoholic products and syrup. The company is well recognized worldwide for its flagship product called coca cola which was first concocted by a pharmacist named John Stith Pemberton in the same state, Georgia at a place called Columbus. Asa Gigs Candler brought the formula for making the product band the brand in the early years of 1890 (Armus, 2005). Candler is the person who incorporated the company, Coca Cola in 1892. Since then the company has undergone great stages of ownership and development cycles. The Company over the years has come to be among the top beverage producers not only in America but all over the world, hence the name multinational corporation. The Coca-Cola Company consists of major processes that are significant in the continuation of the company and the competition in the market. The processes in the company are production process, marketing process, recruitment process and the training process. The manufacturing process is the most crucial part of the enterprise in which the product is manufactured. The Coca Cola Company produces syrup distillate that is sold to bottlers in all over the sphere that holds exclusive territories. This report is therefore aimed at comprehensively discussing and exploring the production process by utilizing thoughts and tools of process design and analysis to examine the process. Also, the report will recommend on how the process can be improved.
A Brief History of the Coca-Cola Company
It is not a surprise to learn that Coca-Cola is probably the most renowned product in the world and a most popular drink. The product has procreated a wide range of stories that range from myths to misconceptions and stories trying to explain the origin of the company and the product which took over the beverage market like a whirlwind. The better part of the tales is baseless, for instance, the story that Coca-Cola dissolves teeth, which it has a contraceptive power and the assertion of the last quarter of the 20th century which held that new Coke fiasco was a Machiavellian stratagem (Pendergrast, 2000). New Coke fiasco was believed to be a gambit to turn away the consideration from a change from the original formula.
The invention of the Coca-Cola was by an Atlanta, pharmacist in Georgia in the year 1886. In reality of how the product came to be invented, Pemberton was in his daily duties and services as a pharmacy and one day he was trying to formulate a headache remedy in which he had mixed distinct syrup with fizzing water. After a few clients had tasted it, he appreciated that he had discovered a widely held drink. The name, Coca-Cola was invented by an auditor of pharmacist Pemberton called Frank Robinson who later came to write the new name in an expressive script which came to be the Coca-Cola signature logo. Robinson came up with the title coca cola through derivation from the products that were used to produce the drink (Pendergrast, 2013). The ingredients were Cola, from cola nut and an extract as of coca leaf a basis of cocaine. The most corporate element in the 19th century was the cocaine patent medicines. The product had no effect of cocaine on its consumers as the amount was minuscule.
By the year 1890, more and more consumers asked the company to reduce the amount of cocaine in the product. Their plea was heard, and in the year 1891, the company was acquired by an Atlanta businessman by the name Asa Candler who reduced the amount of cocaine in the product. By the year 1929, coca cola was cocaine free. Before the WW1, the name coke had become so popular that the product was used to be referred to as the coke and not coca cola (Collier, 2014). The generic term was a term used to refer to any drink, and as a result, most of the coke coca cola competitors used the name. The case was taken to court and was ruled out that the tag Coke was a trademark of Coca-Cola Enterprise.
In the economic cycles and the quality of the products as well as the products competitiveness, Coca-Cola has been the utmost dependable trading stocks which have shown stable return in all of its decades of existence.
Background Information on the Production Process.
Soft beverages are enormously the most widespread beverages. Non-alcoholic beverages primarily consist of fizzing water, flavorings, and sugar (Foster, 2012). Approximately 200 countries in the world enjoy the sweet taste of soda with a yearly consumption of over 35 billion lots. Soft drinks rank as the Americas favorite beverage segment signifying 25 % of the total market of beverages. The products that are used in the production process are the primary determinants of the product and also, the manufacturing process itself. The scope and the quality of manufacturing process are the major determinant of the competitiveness of the product in the market.
Nature/Scope of the Manufacturing Process and the Operations Management
The coca cola firm is much dedicated to making sure that the whole supply chain that includes bottles, direct suppliers, cop-packers, are in compliance with the rules and regulations of reflection in the workplace rights policy (Anderson et al., 2016). They must also comply with the set principles such as the supplier guidelines. Compliance with the work hours set by the company and also the conformity of the overtime laws are among the fundamental components of the firm. Excessive overtime may also cause problems in the production process that the employee work life is interrupted. Reducing overtime in the manufacturing process significantly increases employee morale and decrease quality incidents.
Ingredient Conveyance: the definitive bottled drink assisted in the way the customers and the producer intended, that was in a glass bottle. Every additive or the ingredient in the beverage is washed, measured, weighed, divided, and ready to be cooked right outside the box (Andini & Simatupang, 2014).
Washing and rinsing. All the equipment in the process that includes the machines, conveyor belts and all those the parts that the drink will touch are washed thoroughly and cleaned or dried by use of clean instruments. Use of recommended reagents does cleaning.
Mixing and blending. The mixing and blending of the drink take place the moment the sugar is mixed with water, that is, refined sugar is used. A formula that is unique only to the coca cola manufacturer is then mixed with the mixture. Carbon (II) oxide is included to the soft drink so as to have that fizz (Ramírez et al., 2014). The bottles are pressurized before they are filled with the glass. Each and every bottle is capped to ensure that the product or the alcohol doesn't lose that taste. The bottles are then ready to be labeled at which the bottles are put on large rollers that are part of the machines that puts a logo on the bottles.
Filling. The finished product is transferred to the bottles which are at a high flow rates. The bottles are completely sealed with twists or the steel crowns. The soft drinks are cooled during the manufacturing process and as such the product has to be brought to room temperature before they are labeled to avert condensation from ruining the labels. The vessels are sprayed with warm water to dry those waters (Batra et al., 2014). The labels are then fixed on the bottles to provide material about the brand, shelf life, ingredients, and the safe use of the product. The labels are put on the bottles in plastic form or others are permanently fixed on the cylinder. The bottles are now ready to be transported and packed. They are packed in trays and cartons which are then shipped to the distributors.
Labelling. Coca cola Canada altered the coca cola classic tagging by eliminating the coca cola classic designation leaving the name only coca cola (Wells, 2016). The company, however, noted that the name change would have no effect on the product. In the United States, the cans still contain the original labeling of the product.
Coding: each of the bottles of coca cola beverage is coded with a unique code that gives an exclusive information about the coca cola product. The codes identify the time, date, batch no., and the MRP (Foster, 2014). Inspection is also another crucial step in which the product is inspected on the amount of ingredients used if the ratio was well used. The clean water is supposed to be utilized for the health of the consumers.
Packaging: once the filled beverages have approved the review stage, they are set to be packed, in which the beverage packing depends on the place where the beverage is going to be delivered.
Warehousing and delivery. In order to have certainty that the customer gets the best drink as intended or the way it left the factory, each warehouse has obligation to efficiently manage thousands of beverage brands produced. The stores are inspected and kept clean and improvised (Pulizzi, 2013).
The following chat shows the production process flow.
Evaluation of the Current Performance of the Production Process
The Coca Cola Company is striving to lower the production cost by adopting the new technology in its production systems. The company has therefore reduced the cost of hiring more employees working manually in the organization which increased the recurrent expenditures in meeting their needs in the working environment (Pulizzi, 2013). The new technology in this case reduces the cost by enhancing the level of performance in various production lines which includes the reduction of wastages and efficiency in performance. In addition the company has reduced the cost of operation by establishing more production branches in various places worldwide. The cost of production is reduced since the distance where the company products are transported is shortened. Moreover, the facilities get closer to the raw materials for the manufacture of the company products hence the company can save on cost
Performance of the Coca Cola Company in terms of quality is high. The company has invested heavily on research and development of their products that has given them an outstanding recognition among the industry players such as Pepsi Company limited. The production process is well regulated to ensure standard production of the beverages that are good for human consumptions. The company employs skilled labor that helps in the improved performance (Shemwell, 2016). Nevertheless, the company has also invested in several research and development programs that help them improve in the performance in terms of efficiency and effectiveness. The results of these studies have helped in enhancing the quality of the products which is at the part.
Dependability is one of the aspects that help the companies to have cutting edge over the competitors on the market. For instance the Coca Cola Company has its own mission and vision that determines the daily operations of the company. Also, the organization structure determines how the information flows from the decision making team to the operatives. In this ace, the company structure favors high performance since they do not have to rely on the market dynamics to switch the product of the company or the operation activity (Chalikias & Skordoulis, 2016). Copying the way of operation of another company will lead to the business failure since the problems that are faced by another company is not the same problem that is felt by the company hence the needs for the independent decision making.
Speed is one the performance components that would determine the effectiveness of the structure put in pace. Where the speed is low then the infrastructure or the resources used do not yield the outcome product within the shortest time. Low speed affects the cost of the company since the company will have to pay for the high working hours with the low level of production but if the speed is satisfactory, the company will make more profits (Jones & Sufrin, 2014). Therefore for the case of Coca Cola Company, it has paced the necessary infrastructure in its production system that helps in increasing the production cost. In this case, most of the operations that are undertaken in the company are automated hence less time is required to yield a product as compared to when there system was not automated.
Coca Cola Company has diverse workforce coming from different cultures and have varied skills that has helped the company to become more flexible in terms of the market development. The wealth of the human resource with varied skills help the company to adapt to any development that is taking place in the market especially product differentiation and adoption of the new technology. Without this diversity, the company would not have been in position to make any response to counter competitions form the competitors such as Pepsi. In addition, the diversified workforce ensures that the company develops those products that meet the needs of many clients in various market segments (Banterle, 2014). The consumers in this case will be motivated to be loyal to the company products since they feel they are part of the company culture. I addition the company will develop quality products that attracts the attentions of the customers hence will be hard for the company product to be substituted by the other competitor products.
Performance Objectives that needs to be Improved by Coca Cola Company
Coca Cola Company is doing well in major performance objectives which have paced them at the forefront of the industry. However, there are some areas that the company needs to improve in order to make it more appealing to all the company stakeholders.
In terms of cost, company needs to carry out extensive market research to develop the products with the lowest cost possible (Adendorff, 2016). This can entail the cheap packaging materials whether the company should, produce their own or contract an outside supplier for the service. The distribution channels need also to be improved to reduce on the cost. For instance they can use pipelines to distribute the beverages to various facilities rather than establishing the industries in various places. This is, cheaper and the company will be able to save on the costs that could have been incurred in coming up with the new facility.
The use of the bottled containers should also be minimized by the company as it is costly and increased the risk of the products in the transit (Dawar, 2013). Therefore the company needs to employ the use of the tinned or the plastic containers that cannot be destroyed easily. The company can also improve on the distribution of the fridges in various outlets hence ensuring customers’ satisfaction since they will get the product at their desired states.
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