Darrell S. Corro. Mr. Zaldy C. Ibanez Jr.

BSIT: FBPSM 3B. IT 314: QUALITY CONTROL

COCA-COLA

Coca-Cola Beverages Philippines, Inc. (CCBPI, formerly Coca-Cola FEMSA Philippines,

Inc.) is a Philippine-based company engaged in the bottling and distribution of Coca-Cola
products in the country. CCBPI is part of the Bottling Investment Group (BIG), The Coca-Cola
Company (TCCC)-owned bottling operation intent on building a foundation for long-term success.
BIG’s operations are primarily focused on markets in Southeast Asia, India, and Southwest Asia,
covering 14 countries with 39 plants and 16,500 employees, serving 1.8 billion consumers.

Type:
Subsidiary

Founded:
1981 (as Coca-Cola Bottlers Philippines, Inc.)
2013 (as Coca-Cola FEMSA Philippines, Inc.)
2018 (as Coca-Cola Beverages Philippines, Inc.)

Headquarters:
25/F Net Lima Bldg., 5th Ave. corner 26th St., Bonifacio Global City, Taguig, Philippines

Area served:
Philippines

Key people
Gareth McGeown (President & CEO)
Products
Soft drink
Juice
Water
Sports drink
Tea
Parent
The Coca-Cola Company

Website
www.cokebeverages.ph

BACKGROUND

CCBPI’s current product portfolio includes 19 brands, such as Coke, Royal, Sprite, Wilkins,
Viva, Thunder, Schweppes, and Minute Maid. It operates nationwide, with 19 manufacturing
plants and approximately 50 sales offices and distribution centers—employing more than 9,700
regular employees.

The company was founded in 1981 as Coca-Cola Bottlers Philippines, Inc. and renamed Coca-
Cola FEMSA Philippines, Inc. on January 25, 2013 after becoming jointly owned by Mexico-
based Coca-Cola FEMSA, S.A. de C.V. and The Coca-Cola Company.

On August 17, 2018, The Coca-Cola Company announced that its Bottling Investments Group
(BIG) agreed to acquire the 51% stake in the company held by Coca-Cola FEMSA, S.A. de C.V.
[1][2][3]

In December 2018, BIG completed its acquisition of Coca-Cola FEMSA Philippines’ bottling
operations. The company was then renamed Coca-Cola Beverages Philippines, Inc. as a reflection
of its ambition to build a total beverages company.

QUALITY ASSURANCE

Coca-Cola. It is a cultural icon of American life, and known the world over. It is #1 in the world in
sparkling beverages, coffee drinks, and juice and juice drinks. It sells more than 3,500 different
products in more than 200 countries and has 500 brands, 16 of which have annual sales in the
billions of dollars.

Even with 127 years in business, a company does not become as large and globally successful as
The Coca-Cola Company without considerable focus on quality and food safety.

But, as a discussion with top executives of Coca-Cola’s food safety and quality team came to
show, many of those same practices and processes can be applied just as easily in, or provide best
practices for, the average or even small, food or beverage processing plant.

This may be because it is a global business that operates on a local scale in communities where it
does business; because of its policy of involvement and sharing of best practices; or its very small
founding as a single-point soda-fountain drink (See Fun Facts, below). Or, perhaps, it has to do
with the evolution of the food and beverage industry where customers such as Walmart are driving
standards and holding all suppliers to the same requirements, regardless of their size. And
successful companies, such as Coca-Cola, have learned to turn such a requirement into an
advantage.

Globally Local.

Coca-Cola is not a product that is produced in just a few huge facilities, and then shipped around
the world. Rather, explained Global Director of Quality and Food Safety Neil Marshall, it is
produced in virtually each country in which it is sold, utilizing local suppliers and local bottlers,
employing local people, and addressing local culture and taste. As such, the supply chain of Coca-
Cola is not a single corporate system. Rather, each link in the Coca-Cola production chain is a
local producer with its own outward-extending chain of suppliers, similar to any other local food
manufacturer. Of course, the plants have the advantage of being a part of a global network, but
Coca-Cola has a strategy of mingling global and local.

Vice President/Chief Quality, Safety and Sustainable Operations Officer Jos Wellekens (left) and
Global Director of Quality and Food Safety Neil Marshall in front of the vault of the “secret
ingredient.”
Operating on such a philosophy also enables the company to focus its products and practices to the
local tastes, culture, and regulations. For example, as a corporation, The Coca-Cola Company
sponsors a number of global events, such as the Olympics and soccer’s World Cup. The
company develops a theme, TV advertising, Web support, etc., then “offers” it to each country,
allowing individual changes and decisions to fit the local community.

The same philosophy is evident in a gastronomic journey around the world. A U.S. citizen
stepping up to a Coke machine will find products such as Coke, Diet Coke, Sprite, Barq ’s Root
Beer, or even a Minute Maid or Nestea product. But travel to Africa, and that Coke machine will
feature products such as Bibo, Spar-berry, Sunfill, or Stoney Tangawizi; or one could stop in India
to sip a Thums Up or head to Japan for a Georgia coffee.
With the product wholly produced in each country in which it is sold, and an approach to
“execute localized strategies developed in partnership with our company, Coke is a local
business operating in each country,” Marshall said.

There are some aspects of the Coca-Cola system in which local control and decision-making is not
quite as autonomous, however. Rather, for quality and food safety, Coca-Cola maintains much
more rigid standards across its system to protect the brand, assure supply standards, and control
the manufacturing process. “Coke has always been keen to maintain its good brand quality, so
we lead food safety and supplier strategy from the center,” Marshall said.

For example, the production of Coca-Cola at a manufacturing facility is essentially the combining
of four parts: the secret-formula concentrate, water, sweetener, and carbonization. With such few
ingredients, a slight difference in any one, such as the water, could change the classic, expected
taste and quality of the final product. Yet with water sourced locally at every plant, from a range of
sources—well water to vastly varying municipal waters, it is essential that specific filtering and
treatment processes be used so that the water that ends up in the final product is the same at every
plant. If it’s not, the bottled, canned, or tapped Coke will not be the same.

And, even with such controls, Coca-Cola does not leave the quality of the final product to chance.
Rather, it conducts at-trade sampling for assurance. Coca-Cola contracts with third parties to
purchase its products from various retail establishments. The products are analyzed and tested for
everything from taste to micro to label coding and alignment. The results are compiled every
month, upon which each plant is scored and analyses are made for continuous improvement in that
plant and across the system.

Such practices help Coca-Cola ensure that all products that bear its brand consistently meet its
rigid quality and food safety standards—as well as those of downstream customers.

Quality and Safety Standards.

Coca-Cola is a major supplier to large and small retailers around the world. But regardless of
Coke’s size or leverage, it must adhere to customer standards as closely as a small, local
producer. In fact, it was just such adherence that converted the company from a purely internal
quality system to one driven by Global Food Safety Initiative (GFSI) certification.

Coca-Cola had had an in-depth, global quality system, but as major retailers, such as Walmart,
began requiring suppliers to have external certification, the company took a look at its options and
found that certification to a GFSI scheme as well as ISO standards would not only fulfill the
customer requirements, but also could be an intricate aspect of a redeveloped Coca-Cola quality
system that would ensure consistency around the world.

So Coca-Cola made the move to modify its internal operating requirements and align its quality
system with external standards. The result was that, Marshall said, “We changed our philosophy,
but not the content.”

The company created a new internal system of KORE operating requirements covering quality,
food safety, environmental, and occupational safety and health policies, and began requiring GFSI
certification of all it facilities. KORE (KO is its NYSE ticker symbol; RE for requirements)
replaced The Coca-Cola Management System (TCCMS) in January 2010. As an integral part of
the company’s 2020 Vision Plan—which has a 6-P focus: profit, people, portfolio, partners,
planet, productivity—KORE includes policies focused toward the operations of the individual
plants, such as risk assessment and management, incident management and crisis resolution,
traceability and product recovery, food defense, and supplier management. Incorporating these
operational requirements with the standards of GFSI creates an integrated quality management
program that holds all of its operations to the same standards for production and distribution of its
beverages.

The Secret Formula

The Coca-Cola formula is so secret ...

Originally developed in 1886, it was not put into writing until 1919.
This single copy of the written formula was used as collateral on a loan taken out by Ernest
Woodruff and a group of investors to finance purchase of the company.
The formula was kept in a bank vault in New York until the loan was paid off.
At that time (1925), the formula was moved to the vault of a bank in Atlanta, near the company’s
headquarters.
In December 2011, under dark of night and tight security, the secret formula made its final move
(to date) into a vault in the World of Coca-Cola attraction in Atlanta.
Only a handful of plants around the world produce the secret-formula syrup ... and those locations
are almost as secret as the formula itself.
The Coca-Cola formula is considered to be one of the world’s most closely guarded trade
secrets.
With this consistent internal structure in place, the company then took its GFSI commitment a step
further, to ensure end-to-end food safety. Just as was being required of Coca-Cola as a supplier,
“We said, ‘Let’s deploy the same approach throughout our supply chain,’” Marshall said.
“Ingredient and primary packaging suppliers must be certified to one of the GFSI schemes.”

Attaining GFSI certification will help to reduce the number of audits that a plant, or supplier, must
undergo, he said, adding, “The GFSI mantra is one audit is accepted by all companies.”

The philosophy is indicative of Coca-Cola’s overall philosophy of supply chain quality and
safety. “Having that holistic view of your supply chain is key,” said Vice President/Chief
Quality, Safety and Sustainable Operations Officer Jos Wellekens. That is, “making sure that
your program covers your product end to end.”

But Coca-Cola didn’t stop with requiring GFSI, it also became part of the process. Not content
with simply implementing schemes and standards developed by others, Coca-Cola representatives
have become participants in the GFSI technical working groups and are often speakers at
conferences and events. This not only enables Coke to have its voice heard, it provides a forum for
sharing of ideas and practices.

By becoming involved in the process and interacting with other companies, Coke has been able to
integrate others’ best practices into its system and has become more open about the sharing of its
own. “It has been really important for Coke to look at external participation for quality and food
safety,” Marshall said. “As we engage more, Coke people want to be involved in speaking and
sharing of information. This has been a real step change to a more external focused approach over
the last four years.”

GFSI is managed by the Consumer Goods Forum, an independent global network for consumer
goods retailers and manufacturers with a basic tenet of knowledge sharing. And, whether a
manufacturer is large or small, “the rules are the same for everyone,” Marshall said. Thus, he
added, “GFSI provides a huge networking advantage.” Manufacturers who become involved in
GFSI programs, working groups, or regional events gain access to such knowledge sharing with a
vast array of retailers and manufacturers. “All the people you need to connect with are there,”
he said. “It’s all about public and private partnerships in a non-competitive space.”

Best Practice Sharing.

It isn’t only through GFSI that Coca-Cola shares its practices. Rather the company sees a great
value in such sharing, both internally and externally, and maintaining transparency throughout. As
Wellekens stated, “Food safety is not competitive, and transparency is key.”

Internally, in addition to sharing of results and lessons learned in the company’s at-trade
sampling, Coca-Cola is in its second year of a Food Safety and Quality Award program. “It’s a
way to share best practices across the company and increase transparency, and it’s something
that any company can do. It doesn’t have to cost a lot of money,” Marshall said.

In announcing the program, he said, the company didn’t say what, if anything, would be won.
Rather, it simply said that the company was trying to promote best practices across the system and
requested that ideas be posted on the company’s intranet, to which all have access. The program
received great response, resulting in the sharing of a number of best practices, and, Marshall said,
“It promotes great pride and ownership for the associates who submit. It is definitely helping to
drive quality and food safety culture and awareness.”

Coca-Cola also has an ongoing internal innovation program, by which employees are encouraged
to post innovative ideas on a page of the company’s intranet, to which others can make comment
or “like.” Periodically, the top ideas are then pitched to Coca-Cola’s Board of Directors for
potential implementation. For smaller, one-plant companies, posting of the ideas on a board or
binder in the break room or other central location could provide a similar experience.

The company also posts monthly food safety webinars geared toward its quality and food safety
managers, but are available to any employee. The company’s size is of benefit in these
programs, as it has held webinars by industry leaders, such as Walmart Vice President of Food
Safety Frank Yiannis and Cargill Vice President of Corporate Food Safety and Regulatory Affairs
Mike Robach, but the concept of recording presentations and making them available to all
employees could be adopted by any food manufacturer.

Supply Management.

While such procedures provide for continuous improvement derived from internal best practices,
Coca-Cola also continuously looks outside its four walls for such. Wellekens recently moved from
Belgium to Atlanta, Ga., after having spent most of his 21-year Coca-Cola career, as well as
previous industry experience, in Europe.

Prior to joining Coke, Wellekens had worked at Monsanto. When he began, the quality assurance
work was all conducted within the plant. “We worked within the four walls of the plant to do
process improvement, then saw the need to expand,” he said. “We started working with our
suppliers to ensure they knew our requirements and we knew their constraints.”

While operating on a philosophy of focusing products and practices to local tastes, culture, and
regulations, the production of Coca-Cola at any manufacturing facility around the world is
essentially the combining of four parts: the secret-formula concentrate, water, sweetener, and
carbonization.
When Wellekens came to Coca-Cola in 1992, he developed a similar program, again focused
primarily on ensuring that all suppliers know Coke’s requirements, and that Coke knows and
understands the constraints under which each of its suppliers must work, then finds the best way to
ensure that these are met, while quality and food safety are maintained end to end.

A Transparent Future. With European Union food safety regulations and practices varying from
those of the U.S., domestic processors can learn a great deal from many of its practices,
particularly its transparency.

“Europe has a very transparent system,” Wellekens said. In fact, the industry and the regulators
tend to work closely, with an almost open-door policy existing between the two. Food
manufacturers will even invite government authorities into their labs to show them what they are
doing and, in turn, manufacturers visit government labs. Such transparency and sharing,
Wellekens said, is in the interest of both parties.
For example, Wellekens explained, at one point, regulators came into his company stating that a
test had indicated a non-standard element. The company responded that that was not possible; it
had data points which countered those results. The regulators reviewed the data and testing and
ended up correcting their test methods.

Whether or not such a partnership would come to pass in the U.S., Wellekens does see the U.S. as
moving in the direction of increased transparency overall. “The more you can collaborate across
the supply chain, in the best interest of the public, the safer it will be,” Wellekens said.

FUN FACTS

INTRODUCTION

In this global era, competition is an

inevitable issue for every company in
this world, either manufacture
company or non-manufacture
company. Every company has rapid
growth along with the rapid industrial
evolution. This matter triggers a tight competition that should or will
have to be faced by each company in the world. It means that the
company will race to ingratiate the customers for buying their
products. One of the crucial things one company should insist in is
preserving quality in their mass production continuously by
improving some innovation based on the customers’ appetite and
what’s going on in the market. Moreover, nowadays, consideration
of the customers before buying one product are not the same as the
past. Perhaps what be the main consideration for the buyers in
purchasing something is quality. But, for now, not only does the
quality play on the stage, but the price, product design, brand,
availability, and its value as well. But what makes them buy twice, or
over and over is the quality. It suggests that quality is one of the
crucial things that have to be taken care about by the company to be
maintained and upgraded. That’s why to maintain the existed
quality, one company need quality management that handled for
controlling the quality, whether it’s going down and should be
upgraded or repaired or not. In quality control itself concerning two
crucial instances, those are monitoring the process of production and
taking correction action.

Quality control is very substantial for one company in their

production process, seeing that increasingly fierce competition in the
global, especially for Coca-Cola Company in grapping their toughest
rival, Pepsi.co. It’s very important for Cola-Cola Company as the
leader in beverage company to control their quality of their products.
Coca-Cola Company succeeds to dominate the national and
international market, both from small businesses to large restaurant.
Coca-Cola Company produces some soft drink products such as
Coca-Cola, Sprite, Fanta, and Fresh Tea, packaged in glass bottles
with different size. In this paper, we will discuss Coca-Cola. In
controlling their products’ quality, Coca-Cola Company sets their
products’ quality standard, involving sugar levels, CO2 levels,
bottle cleanliness, bottle condition, and even the taste should meet the
requirements of the standards that have been set by the company.
Can’t be denied that one company like Coca-Cola, of course, will
face some quality problems of their products in consequence of
human fault, machine error or the lack of controlling that then might
cause the products’ defects. One of the consequences if Coca-Cola
Company makes faulty in their quality control is the customers will
lose their trustworthy towards those products and switch to the other
company’s products. The customers may move to Pepsi.co, in view
of the competition between both rivals.

FORMULATION OF PROBLEMS

Why the Coca-Cola Company needs to do quality control

management?
What kind of problem that usually faced by Coca-Cola Company
related to their Coca-Cola’s quality and how they resolve it?
How is the Coca-Cola’s quality management practices in Coca-Cola
Company?
RESEARCH PURPOSES

To know the importance of quality control management of Coca-Cola

Company to survive in tight global competition, especially in the
beverage industry.
To determine the Coca-Cola’s quality problems of Coca-Cola
Company and their strategies in solving those problems.
Determine the Coca-Cola’s quality management practices in Coca-
Cola Company.

LITERATURE REVIEW

A measurement of how much or how far one product could meet the
requirements or specification that had been established by the
company named quality (Iswanto, 2013). (Heizer, 2016) divided the
definitions of quality into several categories, that are user based,
manufacturing based, and product based. In user based, quality
could be seen from the eyes which looking, preferred by the
marketers and also customers. In manufacturing based, the
production managers believed that quality was when the products
were in accordance with the set standards. In products based, quality
was the variable that could be measured and should be precise.

(Heizer, 2016) determined seven tools that usually used in quality

management, including Cause-Effect Chart or known as Fishbone
Chart and also Pareto chart. Pareto charts showed that the
employees should concern in minimising the defects of the products.
It also showed the majority factors that occurred the most that
needed to be tackled. That’s why Pareto Chart was very useful in
determining the target of the company (Perzyk, 2007). While,
fishbone diagram was a diagram that evaluated the causes of a
problem with the sub-causes that would help the company to reveal
all indication of business related problems (American Society for
Quality, 2005). (Public Health Infrastructure, 2008) mentioned that
one of the weaknesses of fishbone chart was it didn’t explain the
specific of problem causes in the appropriate order. It only explained
the causes as the outline.

(Rampersad, 2010) stated that quality management was really

importance for a company in creating continuous improvement of
their business. To him, sustainability of a company was impossible
without the existence of the constants improvement of the company.
(Aized, 2012) believed that if a company was able to manage their
good quality, it would lead them to higher profits. He suggested that
all companies should implement a good quality management system
in their company so that they could sustain and reached their
organisational goals (Aized, 2012). Every company had their own
quality management system which in practice might be different
from one company to another company as well (Ab Wahid & Corner,
2009).

ANALYSIS

The Importance of Quality Control Management

The Coca-Cola Company is one of the multinational company in the
world. Since the first stand, one of Coca-Cola Company’s dreams is
being the leader in beverage company in the world. International
business is a definite thing passed by Coca-Cola Company because
they directly interact with the international. It means that the
competitors of Coca-Cola Company are not only from one country
but hundreds country around the world. So, that’s crucial for a
multinational company such as Coca-Cola Company to really focus
on their quality management to attract the customers to keep buying
their products and do not switch to another company just because of
the quality of the products they produce. Quality is not only about
something that can be felt, seen, measured, or how the company
manages it, but quality denote something that should be preferred to
be concerned about by the company in making an operational
decision. A company through good quality of the products they
produce indirectly will contribute in improving the loyalty of the
customers, also the provocateur customers. Provocateur customers
here mean the customers who will always persuade the others to buys
the same products as theirs, either in the positive or negative way. If
in a positive way, this kind of customers will help Coca-Cola in
getting more and more customers then because what they share is a
personal judgement about one product, their good experience related
to the products. In contrast, in a negative way, the customers will
share a bad experience related to the product. It will harm the
company, admitting that people nowadays tend to believe what the
others’ saying easily without looking for further information. Bad
news spread faster than the good ones. It’ll then affect to the image
of the company and people will have bad perspective towards Coca-
Cola Company’s products then, including Coca-Cola.

Customers will assume that the quality of Coca-Cola is bad, and they
move to another brand such as Pepsi by Pepsi.co, Coca-Cola’s rival.
The research shows the results 84 of 106 respondents prefers Coca-
Cola instead of Pepsi, for different reasons. There are some who
prefer the favour of Coca-Cola, advertisement of Coca-Cola is more
aggressive than Pepsi, the brand of Coca-Cola, the quality of Coca-
Cola itself that always same from the first time they established, and
so on.

Mostly agree that Coca-Cola provides great or at least good quality

for their customers. It shows the successful of Coca-Cola to keep
providing good quality for their customers.

Almost all of them (91 persons) stated that they will move to another
brand if the related brand they prefer provides bad quality of the
product, either Coca-Cola or Pepsi.

This data shows that the quality management of one company,

especially Coca-Cola Company is really important to hold their
existed customers to keep purchasing the products and not move to
another brand.

The Defect of Coca-Cola And Coca-Cola Company’s in Resolving

Those Problems
Quality management of Coca-Cola includes two types, that are the
quality of the content and the quality of packaging.

In 2014, Coca-Cola lost their sales 1% caused by negative issues of

products quality befell The Coca-Cola Company, especially on their
carbonated soft drinks, like Coca-Cola. The loss of 1% seems like a
small number, but the decrease in their sales volume would make
Cola-Cola Company quandary in meeting their long-term targets –
3% – 4% increase in sales volume and 5% – 6% increase in profits
per year. The decrease itself was caused by negative issues related to
the content of their products especially acidity and carbonation
contained therein. In the 1980s, Coca-Cola removed the content of
wine and replaced the cocaine with the non-narcotic coca leaves,
whereas beforehand, Coca-Cola used as a medicine because of the
content of wine, cocaine, and sodium that considered can cope with
the digestive problems, launched a gas exhaust and relief of pain.
Along with the rise in prices of sugar, Coca-Cola began using sugar
from a chemical process known as fructose and no longer use the
coca leaf. Since then, health issues related to Coca-Cola was
increasingly going up. Moreover, various studies showed that soda
and fructose were the main source of high calories that could
aggravate obesity, diabetes and if it is consumed in the long-term
period, it could cause osteoporosis. CSE (Centre for Science and
Environment) of India alleged some carbonated drinks produced by
some beverage company, including Coca-Cola Company contained
toxic lindane and DDT, which could contribute to cancer and
immune system disorders.

But, Coca-Cola Company did not remain silent in facing those

negative issues related to the quality of their products’ content.
They ran some strategies in returning their company image, such
through they announcement of their global commitment in terms of
products, education on the packaging and marketing activities, to
help the campaign in the fight against obesity. Dr. Maxime Buyckx,
Principal Scientist of The Coca-Cola Company in Jakarta defended
that they had provided not only carbonated drinks but also a
selection of drinks with low or no calories to all customers. They also
provided information about the number of calories in front of each
pack transparently. They also confessed that they had run a
responsible marketing activity, with no advertising to children under
12 years old. Besides, they also had another strategy through
programs they created to boost active, healthy, fit and inspire a
positive lifestyle, related to physical activities, and also education
activities, such as.

Football tournament among Senior High School students to fight

getting Coca-Cola trophy.
Being FIFA World Cup sponsorship.
In Indonesia, they had Coca-Cola Club Coke Kicks and in
cooperation with the program of PBSI, “Angkat Raketmu”.
Site of The Beverage Institute for Health and Wellnes,
beverageinstitute.org/indonesia/ that provided information and
articles about the drinks, lifestyle and health based on proved
scientific based research.
Health campaign, named “Indonesia SeGar (Sehat and Bugar)”
with the objective of encouraging people healthy and active lifestyle.
Coca-Cola made an animated film that emphasised the movement or
activity in everyday life.
Coca-Cola with the Perhimpunan Dokter Spesialis Kedokteran
Olahraga (PDSKO) launched the “Exercise Is Medicine (EIM)”,
an educational program that’s for the doctors and health care
providers such as Personal Trainer (PT) to include physical exercise
as part of the treatment for their patients.
By involving the third parties, they had a final goal so that their
products could still be sold in the market and changed the
perspective of the customers as the result of the negative issues. Ratri
Wuryandari as Sustainability Communication Manager of PT. Coca-
Cola Indonesia said that the objectives of the programs they created
were communicating a message that Coca-Cola could be a part of the
healthy lifestyle if it’s supported by healthy physical activities, and
don’t judge a sick person by the products they consumed. By these
strategies, they could be sustained until now.

Besides, Coca-Cola often faced problems related to their packaging

quality of their products. Many of their customers complained about
the products defect. From the data below, we can see that 64 of 105
respondents ever gotten the defective Coca-Cola.

For instance, the bottle was not fully filled, dirty bottles, no crown or
bottle cover, out of specification, spilling beverage and so on. Those
defects could be caused by several factors such as human negligence
and also machines error. The frequent problem that usually occurred
in producing Coca-Cola was filling height.

The Coca-Cola Company had vent cube for each volume of their
products. Longer the vent cube, the filling would be less and vice
versa. Sometimes, the operators were wrong in adjusting the vent
cube and stuffing volume should be. It caused the filling of Coca-Cola
was not in accordance with the standards. The operators also often
been negligent in checking the condition of glycol. It caused cooling
process could not be run maximally so that CO2 didn’t absorb and
caused foaming. Then, they were negligent because sometimes they
were not aware if there were dirty bottles passed the inspection. In
filling process, it would cause foaming which raised the volume of the
product was not in accordance with the specified standards. Besides,
the filling height was not in accordance with the standard was caused
by spilling beverage.

To avoid the problems reoccurs, Coca-Cola Company tighter the

requirement in recruiting employees that aimed to get qualified
employees who were responsible for their jobs and conscientious with
every single error that would cause the products defect. They also
created some training for their employees in how they were supposed
to run their jobs. Besides, they also had EBI (Electronic Bottle
Inspection) that aimed to detect and inspect the quality and
appropriateness of bottles that were going to use, will be explained in
the next section.

Quality Management Practices in PT. Coca-Cola Bottling Indonesia

Overall, quality management of Coca-Cola Company are done by
Pareto Chart and Cause-Effect Diagram or Fish-bone Chart as the
tools. By using Pareto Chart, Coca-Cola Company can sort and
determine majority defect of Coca-Cola, and also determine the
factors of defect that’ll be analysed later. They can fix their
majority defects then so that it won’t intrusive the quality of Coca-
Cola itself. The highest chart in Pareto Chart shows the majority
defects occur, and result of defect then will be the priority of Coca-
Cola Company to be focused on. The chart below is the example of
Pareto Chart used by PT. Coca-Cola Bottling Indonesia in
controlling their products quality.

By using Cause-Effect Diagram or Fishbone Chart, Coca-Cola

Company can get the information related to the factors causing the
defects in production or filling or packaging process. Cause-Effect
Diagram will help Coca-Cola Company in identifying the main
causes of the problem and generating the ideas for the solution and
also assisting in the investigation or further research of the facts. This
diagram below is the example of Cause-Effect Diagram or Fishbone
Chart applied by Coca-Cola Company in controlling Coca-Cola’s
quality.

In controlling the quality of packaging or Coca-Cola’s bottle,

specifically, Coca-Cola Company uses EBI (Electronic Bottle
Inspection) operational system. EBI is the machine used for
inspecting or detecting the bottles’ quality that is going to use the
package of Coca-Cola, whether the bottles are appropriate and clean
enough to use. It can be said as appropriate if the bottles have been
spared from residue liquid, dirt, corrosion, scuffing, breakage,
blurred bottle, and so on. Basically, EBI is divided into two main
parts, that are inspection unit and rejection unit. In inspection unit,
the bottles will be inspected by the sensor, from detecting colour of
bottle, censoring the height of the bottles whether it’s too long or
too short, detecting bottles’ position (erect or fall), detecting the
base of the bottles (dirty or broken or not), detecting the neck of the
bottles, and detecting residue liquid. If there are deviations of quality,
the sensors will send the data to computerisations programs of EBI.
It will then be rejected from the machines and directed to the
bottles’ tank. Through EBI, the quality of Coca-Cola’s packaging
will be more secure and hygienist because it’s passed the parts of
EBI that inspect and detect the quality of the bottles.

CONCLUSION

The Coca-Cola Company as the multinational company is involved in

the era where they are faced with tight competition in the market. To
be able to survive in those competitions, it’s important for Coca-
Cola Company, as the leader of soft drinks in the beverage industry
to have good quality management. One of the most popular products
of PT. Coca-Cola Company is Coca-Cola. Coca-Cola often being
confronted with negative issues or problems related to its products’
quality. It covers the quality of Coca-Cola’s content and the quality
of its packaging.

Related to its products’ content issues, Coca-Cola ever lost their

volume sales 1% caused by the negative issues related to the content
of Coca-Cola since Coca-Cola removed the content of wine, replaced
the cocaine with the non-narcotic coca leaves, and also replaced the
coca leaf with sugar from a chemical process known as fructose. But,
Coca-Cola Company used some strategies in fighting the negative
issues through some programs they create to boost active, healthy, fit
and inspire a positive lifestyle, related to physical activities.

Not only Coca-Cola’s content issues, Coca-Cola often faces the

problem related to its packaging quality such as breakage full, filling
height, out of specification, dirty bottles, and so on and so forth.
Those problems were caused by several reasons, like human
negligence and also machines error. With the issues, it resuscitates
Coca-Cola Company to tighter their employees’ recruitment so that
they will engage qualified and responsible employees so that the
problems caused by human negligence can be minimised. Also, they
implement some tools in their quality management such as EBI
(Electronic Bottle Inspection), Pareto Chart, and Cause-Effect
Diagram or also known as Fishbone Chart.

By combining all those tools, Coca-Cola will be able to survive in the

global market even in the tight competition, as long as they could
provide good quality for their customers, to build a loyalty of the
customers and keep their customers to switch to another brand or
products.

SAFETY AND QUALITY CONTROL

The Coca-Cola system has the highest standards and processes to

ensure consistent quality -- from concentrate production to our
bottling and product delivery.

To ensure consistency and reliability, Coca-Cola Bottling Company of

Santa Fe is governed by the Coca-Cola Operating Requirements
(KORE).

KORE guarantees the highest standards in product safety and

quality, occupational safety and health and environmental standards
across the entire manufacturing and distribution process.

KORE outlines clear requirements for the policies, specifications and

programs that guide our operations.

KORE integrates business and quality objectives and aligns them

with consistent metrics to monitor performance.

KORE integrates preventive action as a management tool with more

rigorous demands when introducing new products and services.

KORE incorporates Hazard Analysis and Critical Control Points

(HACCP) into our system standards.

KORE manages risk in our bottling operations and across our supply
chain.
KORE defines problem-solving methods and tools to drive consistent
quality with improvements.

References
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Aized, T. (2012). Total Quality Management and SIx SIgma. Croatia:

InTech.

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by: April 17th, 2017. United States: ASQ.

Damara, R. A. (2015). IDENTIFIKASI FAKTOR FAKTOR

PENYEBAB DEFECT PRODUK PT COCA-COLA BOTTLING
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Heizer, J. (2016). Operations Management. Sustainability and Supply

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Iswanto, A. (2013). Aplikasi Metode Taguchi Analysis dan Failure

Mode and Effect Analysis (FMEA) Untuk Perbaikan KUalitas
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Sidin, J. P. (2014). QUALITY MANAGEMENT

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