THE ROLE OF OPERATION MANAGEMENT IN SUCCESSFUL COMPLETION OF PROJECT

THE ROLE OF OPERATION MANAGEMENT IN

SUCCESSFUL COMPLETION OF PROJECT

GROUP # C

Group Participants:

Areeb Baig.
Arsalan Sajjad.
Muhammad Farooq Ahmed.
Muhammad Farzouque.
Murad Dawood.
Noor Muhammad.
Shahnawaz Khan
Muhammad Shahrukh Ali.

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Acknowledgments

We would like to thank Allah Almighty for blessing us a group with the knowledge and insight to work

on this research project and explore the world of supply chain management. we would like to pay our

gratitude to “Karachi University “for providing us with an opportunity to work on this report by

providing with all the necessary facilities to accomplish our goal.

We are thankful to “Col. Shoaib Sir” for giving his time and encouraging and providing his support

throughout the thesis and providing us with the key knowledge regarding operations management

processes. Without their help and support, this thesis completion would have been impossible. They have

not only guided me in

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Abstract

An over-view of the bottling plant of Coca-Cola Beverages in Pakistan and their operational
strategy role how the brand emerged a successful project we are going to look at the Coca-Cola
manufacturing process from factory to fridge and see how the industry giant manages its
coherent supply chain. Coca-Cola is the most popular soft drink in the world. It’s sold almost
everywhere, and its brand name is known in most languages.

The Coca-Cola Company (TCCC) manufactures and sells not only Coca-Cola itself, but also a
wide range of other beverages, like Fanta, Sprite, water, juices, and energy drinks. The brand
owes its success primarily to the product itself as well as its iconic marketing campaigns that
position Coke as a drink with a fun and active lifestyle.

But there’s one factor a person might miss when explaining the wildly successful product: the
Coca-Cola supply chain is one of the most wide-reaching, seamless operations in the world.

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Table of Contents

Introduction....................................................................................................................2
Coca-Cola Vision Statement......................................................................................4
Coca-Cola Mission Statement.....................................................................................4
Product Range................................................................................................................4
Management...................................................................................................................5
Process Flow Structure...................................................................................................5
Manufacturing process...................................................................................................6
Manufacturing Process Flow-Chart............................................................................8
Business-level and Operations Strategy.........................................................................8
Differentiation Strategy..............................................................................................9
Strategic Focus...........................................................................................................9
Operations Strategy....................................................................................................9
Inventory management...................................................................................................9
Supply chain management............................................................................................10
Outsourcing..............................................................................................................11
Quality Management....................................................................................................12
Summary.......................................................................................................................13
Recommendations.........................................................................................................14
Bibliography.................................................................................................................15

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Introduction
For this report, we have chosen to analyze the operations of Coco-Cola Bottling that
takes place in Lahore. Being a huge multinational that has assembly lines all over the
world, operations management is crucial to this company. We start by presenting a
brief overview of the brand and then move on to the operational analysis of the unit
in Lahore.
The Coca-Cola Company, which has its headquarters in Atlanta, Georgia, is an
American multinational beverage corporation, and manufacturer, retailer, and
marketer of non-alcoholic beverage concentrates and syrups. The company is popular
for its flagship product Coca-Cola, a product originally invented in 1886 by
pharmacist John Stith Pemberton in Columbus, Georgia. Today, the Coca-Cola
Company has been in business for 125 years, employs 139,600 people, and sells 1.6
billion beverages each day in more than 200 countries. Coca Cola is a trademark of
soft drink is registered in the U.S in 1893. A pharmacist found it in 1886. The name
Coca-Cola name comes from coca leaves and cola fruit, two components of the Coca-
Cola drinks. This has to do with Coca Cola period because people tend island has
referred to Asa Candler is the man's drug world
Coca cola started its operations in Pakistan in 1996; when it took over business
operations in Pakistan & setup its first production plant in Karachi. Now there are 6
production units and 11 distribution units working in Pakistan providing employment
to more than 6000 people.
Coca-Cola soon after the country’s independence in 1947 stepped into Pakistan in
1953. Similar to how Coca-Cola operates in other countries, the Coca-Cola business
in Pakistan is a local business. The beverages are manufactured domestically,
providing employment to Pakistani citizens and the product range and marketing
reflects Pakistani tastes and lifestyle. After the establishment of Coca-Cola, Fanta

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was introduced in 1965; correspondingly, Sprite in 1972; after a gap of 30 years Diet
Coke and Fanta Lemon were introduced in 2001. Currently, Coca-Cola beverages are
produced and sold in Pakistan via the company’s own bottling plants that operate
under Coca-Cola Beverages Pakistan Ltd. (CCBPL).

While many perceive the Company as merely "Coca-Cola," their system operates
through multiple local channels. The Company produces and sells concentrates,
beverage bases and syrups to bottling operations, owns the brands and is responsible
for consumer brand marketing initiatives. Their bottling partners manufacture,
package, merchandise and distribute the final branded beverages to their customers
and vending partners, who then sell their products to consumers. All bottling partners
work closely with customers -- grocery stores, restaurants, street vendors,
convenience stores, movie theatres and amusement parks, among many others -- to
execute localized strategies developed in partnership with our Company. (Statment,
2021)

The History of Coca-Cola’s Success & Manufacturing Milestones

Before we start talking about the Coca-Cola supply chain, let’s look at the key
milestones in the history of this legendary drink.

 In 1886, Dr. John Pemberton, a pharmacist in Atlanta, invented a flavored syrup

mixed with carbonated water. At those times, there was a belief that carbonated
water had a good impact on health, so Coca-Cola was actually sold as a medicine
at soda fountains.
 In 1888, Dr. Pemberton sold his business to Atlanta businessman, Asa G. Candler., who
expanded the beverage sales to soda fountains beyond Atlanta.
 In 1894, Joseph Biedenharn was the first to start selling Coca-Cola in bottles.
 In 1899, three enterprising businessmen in Tennessee got exclusive rights to bottle and
sell Coca-Cola, thus starting the company’s worldwide bottling system.
 In 1929, the first Coca-Cola slogan, “The Pause That Refreshes,” appeared in
the Saturday Evening Post.
 In 1977, the contoured Coca-Cola bottle was trademarked, and the first marketing efforts
were made, which then turned Coca-Cola into the world’s most well-known beverage
brand.

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(Co, 2021) (Statment, 2021)

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Coca-Cola Vision Statement (Statment, 2021)

“Our vision serves as the framework for our Roadmap and guides every aspect
of our business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.”
 People: Be a great place to work where people are inspired to be the best they can be.
 Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people's desires and needs.
 Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value.
 Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
 Profit: Maximize long-term return to shareowners while being mindful of our
overall responsibilities.
 Productivity: Be a highly effective, lean, and fast-moving organization.

Coca-Cola Mission Statement (Statment, 2021)

“Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.”

 To refresh the world...

 To inspire moments of optimism and happiness...
 To create value and make a difference.

Our Wining Culture

Our Winning Culture defines the attitudes and behaviors that will be required of us to make
our 2020 Vision a reality.

Live Our Values

Our values serve as a compass for our actions and describe how we behave in the world.
 Leadership: The courage to shape a better future
 Collaboration: Leverage collective genius
 Integrity: Be real
 Accountability: If it is to be, it's up to me
 Passion: Committed in heart and mind
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 Diversity: As inclusive as our brands

 Quality: What we do, we do well

Focus on the Market

 Focus on needs of our consumers, customers, and franchise partners

 Get out into the market and listen, observe, and learn
 Possess a world view
 Focus on execution in the marketplace every day
 Be insatiably curious
Work Smart
 Act with urgency
 Remain responsive to change
 Have the courage to change course when needed

 Remain constructively discontent

 Work efficiently
Act Like Owners
 Be accountable for our actions and inactions

 Steward system assets and focus on building value

 Reward our people for taking risks and finding better ways to solve problems

 Learn from our outcomes -- what worked and what didn’t

Be The Brand

 Inspire creativity, passion, optimism, and fun

Product Range
 Coke (250ml, 330ml, 500ml, 1.5l, 2.25l)
 Diet Coke
 Coke Zero
 Sprite
 Sprite Zero
 Fanta
 Fanta Apple
 Fanta Citrus
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 Fanta Grape
 Kinley
 Rani Float (250ml)
 Rani Pulpy (350ml, 1l)

Critiqued the Role of Operations Management

Management

Coca-Cola has production system and bottling facilities all around the world. This plays an
important part in their business since they are one of the top of the soft drink industry.
Outsourcing comes at the expense of improving in-house skills, which will eventually lead to
reduced costs.
Coca Cola knows product and package quality is a key to ensure their products in the
marketplace meet Company requirements and consumer demands. The global nature of their
business requires that the Coca-Cola system have the highest standards and processes for
ensuring consistent product safety. Coca Cola uses a system that is called Coca Cola
management System (TCCMS) to manage their product quality. That will hold all their
operations in the same standards for production and distribution. It guarantees the highest
standards in quality, the environment, safety and the health of customer. And they require
each business within the Coca-Cola system must establish, implement, document, and
maintain a safety and quality system in accordance with TCCMS requirements.

Process Flow Structure

The process structure can be broadly classified into five distinctions: project, job shop, batch
process, assembly line, and continuous flow. Coca Cola bottling company uses continuous
flow manufacturing (CFM). Continuous flow is defined as the process the materials, either
dry bulk or fluids that are being processed are continuously in motion, undergoing chemical
reactions or subject to mechanical or heat treatment. Industries that

manufacture goods such as paper, oil, and electricity use this structure. Here, the products
are made in a continuous fashion and tend to be highly standardized and automated with very
high volumes of production. Continuous flow is called a continuous process or a continuous
production process. Coca-Cola uses this process for optimization of throughput using
minimum inventory.

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The production flow of Coca Cola involves passing sub-assemblies/parts from one stage of
production to another in a regular flow. Each stage adds to the products, this is typical
among bottling plants. Coke used this method because the products being distributed by the
company are in wide variation and is sold in bulk amounts. Products being distributed range
from the bottled goods such as Coke, Diet Coke, an assorted amount of different flavored
soft drinks, to bottled water. Given that, Coca Cola has such a large range of production,
continuous flow is the best way to produce the products.

The Coca-Cola production moto is:

“We monitor our production processes with sophisticated control equipment and testing
programmed to meet and exceed our customers’ and consumers’ expectations.

Technical expertise and R&D provided by international Coca Cola Head Office. In Pakistan
CCBPL is licensed only to bottle the final syrup, package it with wrappers and distribute the
product locally.
Preform and Coca-Cola syrup comes to Pakistan from the Coca-Cola Company to its Bottling
and Distribution Partners. The bottled soda is than distributed all across Pakistan from the
bottling plants by contracted distributers. The Company has strong logistic fleet and work
force to ensure the distribution of its beverage product to each corner of the marketplace.

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Manufacturing Process
Coca-Cola Beverages Pakistan Ltd. (CCBPL) uses continuous flow for manufacturing its
products and uses the product-focused strategy. It has set standards of its products that are
produced in high volume with low variety. CCBPL currently has five plants operational.
These plants use continuous planning for production. They forecast their sales for each
week and then produce accordingly. Each line produces a maximum of 140000 cases of
beverages in a day. ; For every change in beverage the equipment is cleaned which is time-
consuming (4-6 hours) and costly

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Once the Coca-Cola Company converts the ingredients into the syrup. The product
concentrates are shipped to bottling plants across the globe. At the bottling plant, the process
starts from manufacturing of bottle and preparation of final syrup. The treated and cooled
water is mixed with the final syrup and, for sparkling drinks, with the carbon dioxide that
gives the product its characteristic effervescence. CCBPL bulk buys raisins inventory of up to
2 years in advance.
The manufacture of bottles starts from the preforms tubes. The preform tubes are made of
plastic and thrown into the equipment that blows these tubes into bottles in milliseconds.
The bottling process, whether in glass or PET (plastic), is very similar except for the change
in material from which preform is made and blowing equipment. These bottles are then filled
by the drink and then forwarded to next line to be sealed by the closure. After being sealed,
the bottles are labeled and then dated by a laser machine. The bottles are then ready for
inspection. Surprisingly, even the quality check is automated: the machine rejects any bottle
filled below or above the required level. Lastly, the bottles are put together in form of their
cases: six bottles in a case of 1.5L bottles and 12 bottles in a case of 0.5L bottles. The cases
are clinked individually with a plastic sheet and then wrapped together to be sent to the
warehouse.
There are many plants of the Coca Cola Company in whole over Pakistan. The plants are in
Karachi, Hyderabad, Multan, Gujranwala, Sialkot, Faisalabad, Rahim Yar Khan, and Lahore.
Location in Lahore Coca-Cola Beverages Pakistan Limited. 5-E-II, Gulberg III, Lahore
54660, Pakistan. In the Lahore factory, that we visited coke was prepared by adding fizz to
the syrup and then they were bottled, labeled, and packed.

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Manufacturing Process Flow-Chart

As with each successful company, there needs to be some sort of structure. Coca
cola’s process flow for bottling coke is as follows.

Ingredients
Bottles grouped
brought to the Encoding in form of cases
plant

Preform Labeling of Plastic

prepared bottles wrapping:shri nk
age and cooling

Preform blown Laser inspection Cases packed

to bottle for quantity together

Bottle filled with Product

Bottle sealed Moved to
the beverage collected by
with closure warehouse
prepared distributors

1. Ingredients are delivered to the factory.

2. Small pieces of plastic known as ‘resin’ are converted into the preform of a bottle.
3. The preform is blown into the size of bottle needed.
4. Bottle is filled with the beverage.
5. Bottle is sealed with the closure.
6. Label is pasted.
7. Laser inspects for over or under filling of cola in bottle.
8. Bottle is encoded.
9. Bottles are grouped together in form of cases.
10. Plastic sheet is wrapped around the cases.
11. A bundle of cases is packed together.
12. Cases are moved to warehouse.
13. Distributors collect order from warehouse.

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Business – Level and Operations Strategy

CCBPL calls it business strategy “The Coca-Cola System”. Encompasses the
production, marketing, sales, and distribution of Coca-Cola beverages. The Coca-Cola
Export Corporation (TCCEC) is responsible for the manufacturing and selling of the
concentrates, beverage bases and syrups to CCBPL. It also owns the brands and heavily
partakes in consumer brand marketing initiatives, besides having a comprehensive public
affairs and communications responsibility.
CCBPL manufactures, packages, merchandises, and distributes the produced branded
beverages. As the bottling company, CCBPL is also responsible for developing local
networks, so that the product reaches the consumer in its best quality. This includes customer
development, market investment, order collection, delivery and lastly cash collection.

Differentiation Strategy

CCBPL uses the differentiation strategy to make themselves unique and separated from other
companies. By using differentiation strategy, Coke creates a product and service that entices
their customers to stay loyal to their brand by continuing to purchase Coca-Cola products.
Differentiation is found in each aspect of business operation. For example, it uses unique
marketing campaigns, labeling, bottle shapes, and advanced plant and machineries to
manufacture top quality beverage product. They also differentiate themselves as the leading
socially responsible beverage company in Pakistan. by forging strong partnerships with local
communities, NGOs, and government agencies. Under Rizwan Ullah Khan’s leadership, the
Company has carried out several successful interventions in the fields of education,
environment preservation and water stewardship, livelihood creation, women empowerment,
and youth development.

They use state of art technology to enable them to produce most efficiently while maintain
their image as an eco-friendly company. Plant Bottle packaging is the latest breakthrough
from the Coca-Cola Company designed to change the way the world thinks of plastic bottles.
It is the first ever fully recyclable PET plastic beverage bottle made partially from plants.
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Strategic Focus
1. Driving growth and profit revenue
2. Investing in brand and business
3. Continuously increase efficiency
4. Refocus on core business model

Operations Strategy
CCBPL is currently working on shifting to Just-in-Time inventory system with days-based
stocks to release cash flows freeze in warehousing. The input buying is based on annual
bottles produced. Co-ordination between different plants across Pakistan is necessary as they
must provide production buffer to each other like presently Lahore Bottling plant is covering
Faisalabad’s production schedule too while the plant is undergoing renovation. (Shurum,
2021)

Inventory Management
Coca-Cola Pakistan is one of those organizations that cannot Compromise on the essence of
their item. They do have a proper inventory system in the facility, but they make sure when
the bottle is produced it is being dispatched to the respective retail outlets or to the
distributors. 2 years back Inventory management was different as they were buying Raw
material in bulk, but they are now shifting their production to Just in Time. Just in time,
production makes inventory cost less and demands significantly less space for inventory
storage. They had reduced the number of warehouses. The work is coordinated in such a
manner that operations are not affected. Coca cola only keeps reserve inventory of 2-3 day.
Moreover, if they feel like that their plant is unable to meet to the demand of the product in
market, they can call for the finished goods from plants located in other cities and fulfill the
demand, Like Lahore Plant is currently fulfilling the demand of Faisalabad Territory Also.
The Production in Faisalabad has stopped due to the construction of new Plant
(document/university-of-sussex/communicating-stem, 2021)

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Supply Chain Managment

Coca-Cola Pakistan focuses on this area, as they want their operation more efficient and
effective. In every process of production, the role of supply chain is very important. In each
assembly there is one supervisor and 6-7 workers working for 8 hours a day. From Pre-
form of bottle to the plastic sheet which is wrapped around the crates. Again, Coca-Cola
management team is responsible what amount of supply they should hold. According to
Territory Operation Manager, they only hold stock (raw materials) for 2-3 days. Inventory is
restocked every day. Coca cola does not hold large inventory of raw materials. If there is
any type of problem, they can easily run their lines for 1 extra day and can assign worker for
lines and pay them the double wages then normal workhour. Their main raw material supply
includes Sugar, Co2 gas, plastic sheet, Resin, tags, crown, bottle cap (closure). Coca cola
checks for quality of each supply every day before passing it onto the manufacturing
department. The plant has 2-3 suppliers of every raw material they require. Other than
supply of raw materials, Rani Juice is also being supplied from abroad, along with the cans
for other beverages. As TOM has told that Coca Cola has OE (operational Excellence)
program Strategy for different problems occur in Supply chain management and Inventory
management. OE is the combo of Mean, Six Sigma and Best practices. (Analysis, 2021)

Coca-Cola Supply Chain: What Makes It So Remarkable? (Shurum, 2021)

Coca Cola’s VP of Customer Logistics Wendy Manning once said the company is able to
deliver a drink from a factory to a local store within 48 hours. The secret behind this
impressive figure is local sourcing, meaning that most of the drinks are manufactured
directly in the country where they are sold.

Coca-Cola has more than 900 bottling and manufacturing facilities across the world, and its
factories have some of the world’s fastest production lines. It’s not just about the sheer
number of facilities, though.

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These are other things that contribute to Coca-Cola’s supply chain:

1. Innovation

Coca-Cola Enterprises seamlessly integrates modern technologies into its supply chain. For example, it
uses 3D printing to manufacture bottles and cans for its drinks.

2. People

Coca-Cola’s logistics team consists of more than 100 people who ensure the safe journey of each bottle
from factory to fridge. 

3. Long-term relationships with retail partners

Over the past few decades, Coca-Cola has proven to be one of the most valuable and reliable suppliers
for its retail partners. One example is that the company has been growing together
with McDonald’s since 1955.

4. Supplier relationship management program

Helen Davis, VP of Coca-Cola Supply Chain in the US, conducts supplier innovation days. During
these events, the company’s procurement and marketing teams present the company’s market needs

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while the suppliers also present their own latest innovations. The program also involves quarterly
meetings with key suppliers, where a mutual performance review takes place.

5. Strict quality control

Coca-Cola has strict quality requirements on its manufacturing practices. For example, Coca-Cola
HBC, a bottling franchise partner of Coca-Cola Enterprises, requires quality, environment, and health
safety certifications from its suppliers.

6. Global Supply Chain Council

The beverage giant established the Global Supply Chain Council, which consists of subcommittees that
focus on adhering to established Coca-Cola supply chain strategy. The Council has its own centralized
portal where the employees and supply chain participants share their experiences and best practices.

7. Close collaboration with bottlers

The Coca-Cola Company provides a standard set of guidelines for all of its bottling partners and
suppliers. As a result, most of the strategic decisions are centralized. The headquarters controls most of
the bottling partner’s operations, so each bottling partner services the respective geographical area
through a head office.

The bottler’s office works in tight collaboration with a regional office under the direct supervision of
The Coca-Cola Export Corporation (TCCEC). The bottler’s head office connects the production plant
with different distribution and sales centers across the world, forming a coherent supply chain.

All these aspects make Coca-Cola supply chain management one of a kind.

Coca-Cola Supply Chain: How It Works

In a nutshell, Coca-Cola beverages go through the following destinations in their journey:

 Manufacturer
 Distributor
 Retailer
 Consumer

Now let’s take a closer look at this journey.

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The typical workflow within Coca-Cola supply chain:

• The Coca-Cola Company headquarters in Atlanta manufacture the concentrated syrup and sell it
to Coca-Cola Enterprises (CCE) or another bottling partner, which is responsible for selling the
product in North America and Canada.
• The bottling partner sends it to a manufacturing facility, which mixes the syrup with other
ingredients, such as filtered water and sweeteners. After that, the bottler packages the final
product and distributes it to retail partners (stores, restaurants, vending machines, etc.)
• The Coca-Cola Export Corporation (TCCEC) partners with local bottlers across the world and
distributes the drink to the corresponding local markets.

Coca-Cola Logistics
Logistics is an integral part of any supply chain, and Coca-Cola’s logistics expertise contributes to its
supply chain success. Here are some of the logistics-related best practices implemented by Coca-Cola:

 Manufacturing products on a more frequent basis, e.g., once a week

 Implementing weekly meetings between the teams worldwide

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 Moving the production plants closer to customers

 Introducing daily interaction between the main sites
 Introducing seamless processes that are shared between all supply chain participants

Outsourcing

As this plant is more of capital intensive than labor intensive, Coca Cola outsource their manufacturing.
Coca cola provides third party plants with their Cola for filling. Coca- Cola Pakistan outsource its cans’
filling, which also known as Toll filling. They are outsourcing 250 ml and 350 ml cans from third party
and being filled in Sialkot and Karachi. This is because the total demand for cans is low and the
machine that is used to fill these cans is very expensive. Coca cola has recently introduced a Juice
named Cappy for which they are outsourcing a third Party in Karachi and promoting it in big cities.
(Majid, 2021)

Quality Management

Coca-Cola places immense emphasis on quality management. They have stringent

Regulations for their products, products conforming to those regulations are deemed marketable, the
rest are wasted, and the plastic recycled. Their quality control department inspects the quality of
incoming materials as well as the final product being sent out for distribution. It also conducts
unannounced audits of the facilities to ensure effective product safety and quality standards are being
always followed.
The quality control department consists of ten individuals who are responsible to check the quality of
the raw materials brought to the plant. The materials brought into the manufacturing plant are
thoroughly inspected and ensured they comply with Coke’s standards. In case of any defect in the raw
material from the suppliers, strict actions are taken, and defected materials are disposed-off.
With Coke’s new emphasis on optimizing its efficiency, they have reduced the number of scientists
per line from two per line to one per two lines. The duty of these scientists is to test the cola and
ensure that it is of the right pH and all the ingredients are in the perfect proportions. Coke has further
increased their efficiency by instilling the duties of quality management on the line engineer. It is now
the line engineer’s duty to ensure that his/her line is producing the quality products that meet all the
preset criteria.

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Coke Cola has also spent millions of rupees during the setup of their facilities and integrated quality
management technology in their production lines. Each preform that is turned into a bottle passes
through a series of lasers which tests its quality and the bottles that fail is immediately disposed-off
and recycled. Furthermore, the bottles after being filled with the cola, once again, pass through a series
of quality management tests. Any bottle that is either filled too much or too little as per the criteria is
taken off the line, the cola is drained, and the bottle is crushed and recycled to be used in production of
preform.

The Coca-Cola Company has kept ahead of emerging safety advances by developing rigorous quality,
environment, and occupational safety & health requirements. These requirements are developed to
exceed ISO 9001, ISO 22000 standards. Furthermore, Coke has standardized operating and safety
requirements program called KORE that define the policies, standards, and requirements for managing
safety and quality throughout their operations. To further strengthen quality and safety standards,
KORE requires all Coke’s manufacturing and distribution facilities strictly follow British Standard
Occupational Health and Safety Assessment Series 18001, a world-renowned framework for effective
occupational health and safety management. Lastly, the factory hygiene is maintained according to the
Pakistan Food Authority, ensuring no compromise in the standard of product taste, and maintenance of
the equipment as most of the manufacturing process is capital intensive. (Statment, 2021) (Haider,
2021)

Summary

Just because of an outstanding operation management strategy The Coca-Cola Export Corporation,
Pakistan and Afghanistan region has a portfolio of CSR programs, worth more than $8 million. The

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portfolio has 3 pillars powered by ‘sustainability: Women, Water and Education.  The integration of
these pillars envisions socio-economic development and improved livelihoods for the local
communities. (Statment, 2021)

With an enduring commitment to building sustainable communities, the Company is focused on

initiatives that reduce its environmental footprint, support active, healthy living, create a safe, inclusive
work environment for its associates, and enhance the economic development of the communities
in which it operates. Coca-Cola Pakistan, along with its 6 bottling plants in the region
employs over 4,550 people in across Pakistan currently. 
 
Coca-Cola’s Operation management and supply chain management have inspired a lot of other
businesses to be better.

But businesses today can scale growth at a much faster rate than you could back in the early 1990s
thanks to new software and automation techniques. The takeaway here should be that the principles
Coca-Cola grew from still apply, even if the technology that facilitated that growth is outmoded. 

If you’re looking to speed your growth, consider trying out some inventory management software to
help your production and supply chain become more efficient. Check out Dynamic Inventory’s key
features and contact us today to schedule a live demo and see what we can offer. (Shurum, 2021)

Recommendations:
Coke Cola has vast array of decisions that have ensured its massive success not only in Pakistan but
worldwide. Out of the ten critical decisions for operations management for Coca Cola, managing
quality, layout strategy, supply chain management and inventory management are of pivotal
importance.
As the production is heavily dependent on automated machinery equipment, it is of vital importance for
the management to have a competent maintenance criterion and team to ensure that the machines are
always working efficiently and without any fault. In case of any disruption in the production, any fault
or defect in the machinery in fixed and catered to as quickly as possible. This is of even more
importance since the Lahore plant in running 24 hours a day and 7 days a week to cater to demand
locally and of neighboring cities.
Since the plant produces one flavor of cola at a time, Coke, Spirit or Fanta, and requires 3-4 hours of
cleaning and switching from one flavor to another, line efficiency is critically important. There is little

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 THE ROLE OF OPERATION MANAGEMENT IN SUCCESSFUL COMPLETION OF PROJECT

room for time lags as whole production halts to ensure successful cleanup and conformance with
quality management benchmarks of Coca-Cola. Producing different flavors simultaneously on
dedicated lines could reduce the lag time and ensure continuous production. This will also reduce the
running time for the factory to produce all the required products as simultaneous production at multiple
assembly lines rather than one after another on the same assembly line will save time.

Since the plant operates 24 hours a day and have outsourced many of its processes, supply chain
management is the most critical part of their operations. As Coke operates its inventory management as
per Just-In-Time and the production facility only holds raw materials for 4-5 days’ worth of production
so delivery of preform, raw materials for the preform and as well as the syrup and other ingredients must
be on time and without any disruption. This leaves little room for mistakes during forecasting,
production, and supply chain management. This calls for constantly updating its forecasts as per
changing demands and ensuring that the forecasts are done timely and accurately. In Pakistan this
movement to JIT system will be even more cumbersome due to instable political and law & order
situations. (Logo, 2021)

Works Cited
Analysis, B. P. (2021, Dec). Retrieved from www.slideshare.net:
https://www.slideshare.net/ayeshamajid3110/cocacola-beverages-pakistan-operation-management-
analysis/
Co, B. (2021, Dec 13). Retrieved from Coco Cola: http://behance.vo.llnwd.net/
document/university-of-sussex/communicating-stem. (2021, Dec). Retrieved from https://www.studocu.com/en-
gb/document/university-of-sussex/communicating-stem/coca-cola-sdsdds/10887944
Haider, W. (2021, Dec). Retrieved from https://www.academia.edu/42113811/Assignment_NO_1_Subject
https://www.coca-cola.pk/know-us-better/history/coca-cola-pakistan-. (n.d.). Coca Cola Pakistan. Retrieved
from https://www.coca-cola.pk/know-us-better/history/coca-cola-pakistan-.
Logo, C. H. (2021, Dec). Retrieved from https://www.coursehero.com/file/p4kft2hi/Following-the-order-
process-the-distributors-punch-in-their-orderdemands-the/
Majid, A. (2021, Dec). Operation Management Analysis. Retrieved from
https://www.academia.edu/35315797/Operation_Management_Analysis_Coca_Cola_Beverages_Pakista
n
Shurum, A. (2021, Dec). Retrieved from Manufacturing Process Explained:
https://www.dynamicinventory.net/coca-cola-supply-chain/
Statment, C. C. (2021, 12 13). https://www.coca-cola.pk/know-us-better/history/coca-cola-pakistan-. Retrieved
from https://www.coca-cola.pk/know-us-better/history/coca-cola-pakistan-.

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