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We express our sincere gratitude to Ms. Geetanjali Juneja whose mere presence
provided immense support and without whose cooperation the present work would
not have been possible. She laid down such a strong base of Public Relations that
helped us in the completion of this project.

She always kept us on our toes and was a source of inspiration all through.

We are thankful to her for her continued guidance and invaluable encouragement in
the making of this project.

Thank you.


1. Objectives 4
2. Types of Layouts 5
3. Factors in determining Design and Layout 14
4. Differences between office and factory layouts 16
5. Site Visit to Coke 17
6. Bibliography 22


1) To study and understand the process of layout

selection and different types of layouts.

2) To observe the layout of a manufacturing unit and

understand its working


1. Process Layout
2. Product Layout
3. Fixed Layout
4. Hybrid/ Combination Layout
5. Cellular Layout

Process Layout

Process layouts are found primarily in job shops, or firms that produce customized,
low-volume products that may require different processing requirements and
sequences of operations. Process layouts are facility configurations in which
operations of a similar nature or function are grouped together. As such, they
occasionally are referred to as functional layouts. Their purpose is to process goods or
provide services that involve a variety of processing requirements. A manufacturing
example would be a machine shop. A machine shop generally has separate
departments where general-purpose machines are grouped together by function (e.g.,
milling, grinding, drilling, hydraulic presses, and lathes). Therefore, facilities that are

aaaaaaaaaaaaaaaaaaaaaaaaaaa Machine Shopaaaaaaaaaaaaaaaaaaaaaaaaaaaa

configured according to individual functions or processes have a process layout. This

type of layout gives the firm the flexibility needed to handle a variety of routes and
process requirements. Services that utilize process layouts include hospitals, banks,
auto repair, libraries, and universities.
Improving process layouts involves the minimization of transportation cost, distance,
or time. To accomplish this some firms use what is known as a Mother grid, where
subjective information is summarized on a grid displaying various combinations of
department, work group, or machine pairs. Each combination (pair), represented by an
intersection on the grid, is assigned a letter indicating the importance of the closeness

of the two (A = absolutely necessary; E = very important; I = important; O = ordinary
importance; U = unimportant; X = undesirable). Importance generally is based on the
shared use of facilities, equipment, workers or records, work flow, communication
requirements, or safety requirements. The departments and other elements are then
assigned to clusters in order of importance.
Advantages of process layouts include:
•Flexibility. The firm has the ability to handle a variety of processing
•Cost. Sometimes, the general-purpose equipment utilized may be less costly to
purchase and less costly and easier to maintain than specialized equipment.
•Motivation. Employees in this type of layout will probably be able to perform a
variety of tasks on multiple machines, as opposed to the boredom of performing a
repetitive task on an assembly line. A process layout also allows the employer to
use some type of individual incentive system.
System protection. Since there are multiple machines available, process layouts are
not particularly vulnerable to equipment failures.
Disadvantages of process layouts include:
•Utilization. Equipment utilization rates in process layout are frequently very low,
because machine usage is dependent upon a variety of output requirements.
•Cost. If batch processing is used, in-process inventory costs could be high.
Lower volume means higher per-unit costs. More specialized attention is
necessary for both products and customers. Setups are more frequent, hence
higher setup costs. Material handling is slower and more inefficient. The span of
supervision is small due to job complexities (routing, setups, etc.), so supervisory
costs are higher. Additionally, in this type of layout accounting, inventory control,
and purchasing usually are highly involved.
•Confusion. Constantly changing schedules and routings make juggling process
requirements more difficult.

Product Layout

Product layouts are found in flow shops (repetitive assembly and process or
continuous flow industries). Flow shops produce high-volume, highly standardized
products that require highly standardized, repetitive processes. In a product layout,
resources are arranged sequentially, based on the routing of the products. In theory,
this sequential layout allows the entire process to be laid out in a straight line, which
at times may be totally dedicated to the production of only one product or product
version. The flow of the line can then be subdivided so that labor and equipment are
utilized smoothly throughout the operation.
Two types of lines are used in product layouts: paced and unpaced. Paced lines can
use some sort of conveyor that moves output along at a continuous rate so that

Assembly Line

workers can perform operations on the product as it goes by. For longer operating
times, the worker may have to walk alongside the work as it moves until he or she is
finished and can walk back to the workstation to begin working on another part (this
essentially is how automobile manufacturing works).
On an unpaced line, workers build up queues between workstations to allow a

variable work pace. However, this type of line does not work well with large, bulky
products because too much storage space may be required. Also, it is difficult to
balance an extreme variety of output rates without significant idle time. A technique
known as assembly-line balancing can be used to group the individual tasks
performed into workstations so that there will be a reasonable balance of work among
the workstations.
Product layout efficiency is often enhanced through the use of line balancing. Line
balancing is the assignment of tasks to workstations in such a way that workstations
have approximately equal time requirements. This minimizes the amount of time that
some workstations are idle, due to waiting on parts from an upstream process or to
avoid building up an inventory queue in front of a downstream process.
Advantages of product layouts include:
•Output. Product layouts can generate a large volume of products in a short time.
•Cost. Unit cost is low as a result of the high volume. Labor specialization results
in reduced training time and cost. A wider span of supervision also reduces labor
costs. Accounting, purchasing, and inventory control are routine. Because routing
is fixed, less attention is required.
•Utilization. There is a high degree of labor and equipment utilization.
Disadvantages of product layouts include:
•Motivation. The system's inherent division of labor can result in dull, repetitive
jobs that can prove to be quite stressful. Also, assembly-line layouts make it very
hard to administer individual incentive plans.
•Flexibility. Product layouts are inflexible and cannot easily respond to required
system changes—especially changes in product or process design.
•System protection. The system is at risk from equipment breakdown,
absenteeism, and downtime due to preventive maintenance.

Fixed-Position Layout

A fixed-position layout is appropriate for a product that is too large or too heavy to
move. For example, battleships are not produced on an assembly line. For services,
other reasons may dictate the fixed position (e.g., a hospital operating room where
doctors, nurses, and medical equipment are brought to the patient). Other fixed-
position layout examples include construction (e.g., buildings, dams, and electric or
nuclear power plants), shipbuilding, aircraft, aerospace, farming, drilling for oil, home
repair, and automated car washes. In order to make this work, required resources must
be portable so that they can be taken to the job for "on the spot" performance.

Due to the nature of the product, the user has little choice in the use of a fixed-
position layout. Disadvantages include:
•Space. For many fixed-position layouts, the work area may be crowded so that
little storage space is available. This also can cause material handling problems.
•Administration. Oftentimes, the administrative burden is higher for fixed-
position layouts. The span of control can be narrow, and coordination difficult.

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Dams, Buildings, Battleships

Combination Layouts

Many situations call for a mixture of the three main layout types. These mixtures are
commonly called combination or hybrid layouts. For example, one firm may utilize a
process layout for the majority of its process along with an assembly in one area.
Alternatively, a firm may utilize a fixed-position layout for the assembly of its final
product, but use assembly lines to produce the components and subassemblies that
make up the final product (e.g., aircraft).

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Combination Layout

Cellular Layoutaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

Cellular manufacturing is a type of layout where machines are grouped according to

the process requirements for a set of similar items (part families) that require similar
processing. These groups are called cells. Therefore, a cellular layout is an equipment
layout configured to support cellular manufacturing.
Processes are grouped into cells using a technique known as group technology (GT).
Group technology involves identifying parts with similar design characteristics (size,
shape, and function) and similar process characteristics (type of processing required,
available machinery that performs this type of process, and processing sequence).
Workers in cellular layouts are cross-trained so that they can operate all the equipment
within the cell and take responsibility for its output. Sometimes the cells feed into an

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assembly line that produces the final product. In some cases a cell is formed by
dedicating certain equipment to the production of a family of parts without actually
moving the equipment into a physical cell (these are called virtual or nominal cells).
In this way, the firm avoids the burden of rearranging its current layout. However,
physical cells are more common.
An automated version of cellular manufacturing is the flexible manufacturing system
(FMS). With an FMS, a computer controls the transfer of parts to the various
processes, enabling manufacturers to achieve some of the benefits of product layouts
while maintaining the flexibility of small batch production.
Some of the advantages of cellular manufacturing include:
•Cost. Cellular manufacturing provides for faster processing time, less material
handling, less work-in-process inventory, and reduced setup time, all of which
reduce costs.
•Flexibility. Cellular manufacturing allows for the production of small batches,
which provides some degree of increased flexibility. This aspect is greatly
enhanced with FMSs.
•Motivation. Since workers are cross-trained to run every machine in the cell,
boredom is less of a factor. Also, since workers are responsible for their cells'
output, more autonomy and job ownership is present.

Other Layouts
In addition to the aforementioned layouts, there are others that are more appropriate
for use in service organizations. These include warehouse/storage layouts, retail
layouts, and office layouts.
With warehouse/storage layouts, order frequency is a key factor. Items that are
ordered frequently should be placed close together near the entrance of the facility,
while those ordered less frequently remain in the rear of the facility. Pareto analysis is
an excellent method for determining which items to place near the entrance. Since 20
percent of the items typically represent 80 percent of the items ordered, it is not
difficult to determine which 20 percent to place in the most convenient location. In
this way, order picking is made more efficient.
While layout design is much simpler for small retail establishments (shoe repair, dry
cleaner, etc.), retail stores, unlike manufacturers, must take into consideration the

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presence of customers and the accompanying opportunities to influence sales and
customer attitudes. For example, supermarkets place dairy products near the rear of
the store so that customers who run into the store for a quick gallon of milk must
travel through other sections of the store. This increases the chance of the customer
seeing an item of interest and making an impulse buy. Additionally, expensive items
such as meat are often placed so that the customer will see them frequently (e.g., pass
them at the end of each aisle). Retail chains are able to take advantage of standardized
layouts, which give the customer more familiarity with the store when shopping in a
new location.
Office layouts must be configured so that the physical transfer of information
(paperwork) is optimized. Communication also can be enhanced through the use of
low-rise partitions and glass walls.
A number of changes taking in place in manufacturing have had a direct effect on
facility layout. One apparent manufacturing trend is to build smaller and more
compact facilities with more automation and robotics. In these situations, machines
need to be placed closer to each other in order to reduce material handling. Another
trend is an increase in automated material handling systems, including automated
storage and retrieval systems (AS/AR) and automated guided vehicles (AGVs). There
also is movement toward the use of U-shaped lines, which allow workers, material
handlers, and supervisors to see the entire line easily and travel efficiently between
workstations. So that the view is not obstructed, fewer walls and partitions are
incorporated into the layout. Finally, thanks to lean manufacturing and just-in-time
production, less space is needed for inventory storage throughout the layout.
In single TolMol search, shoppers can find information on thousands of products and
services from popular shopping websites and local sellers across major cities in India.
Shoppers can compare product features and prices side by side. Unbiased product and
seller reviews and ratings further help shoppers make an informed buying decision.


The criteria for a good layout relates necessarily to people (personnel and customers),
materials (raw, finished, and in process), machines, and their interactions.
Small business owners need to consider many operational factors when building or
renovating a facility for maximum layout effectiveness. These criteria include the

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•Ease of future expansion or change—Facilities should be designed so that they
can be easily expanded or adjusted to meet changing production needs. "Although
redesigning a facility is a major, expensive undertaking not to be done lightly,
there is always the possibility that a redesign
will be necessary," said Weiss and Gershon.
"Therefore, any design should be flexible.…
Flexible manufacturing systems most
often are highly automated facilities having
intermediate-volume production of a variety of
products. Their goal is to minimize changeover or
setup times for producing the different
products while still achieving close to assembly
line (single-product) production rates."
•Flow of movement—The facility design should reflect a recognition of the
importance of smooth process flow. In the case of factory facilities, the editors of
How to Run a Small Business state that "ideally, the plan will show the raw
materials entering your plant at one end and the finished product emerging at the
other. The flow need not be a straight line. Parallel flows, U-shaped patterns, or
even a zig-zag that ends up with the finished product back at the shipping and
receiving bays can be functional. However, backtracking is to be avoided in
whatever pattern is chosen. When parts and materials move against or across the
overall flow, personnel and paperwork become confused, parts become lost, and
the attainment of coordination becomes complicated."
•Materials handling—Small business owners should make certain that the
facility layout makes it possible to handle materials (products, equipment,
containers, etc.) In an orderly, efficient—and preferably simple—manner.
•Output needs—The facility should be laid out in a way that is condusive to
helping the business meet its production needs.
•Space utilization—This aspect of facility design includes everything from
making sure that traffic lanes are
wide enough to making certain
that inventory storage warehouses
or rooms utilize as much vertical
space as possible.

•Shipping and receiving—The

J.K. Lasser Institute counseled
small business owners to leave
ample room for this aspect of operations. "While space does tend to fill itself up,
receiving and shipping rarely get enough space for the work to be done
effectively," it said in How to Run a Small Business.
•Ease of communication and support—Facilities should be laid out so that
communication within various areas of the business and interactions with vendors
and customers can be done in an easy and effective manner. Similarly, support
areas should be stationed in areas that help them to serve operating areas.

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•Impact on employee morale and job satisfaction—Since countless studies
have indicated that employee morale has a major impact on productivity, Weiss
and Gershon counsel owners and managers to heed this factor when pondering
facility design alternatives: "Some ways layout design can increase morale are
obvious, such as providing for light-colored walls, windows, space. Other ways
are less obvious and not directly related to the production process. Some examples
are including a cafeteria or even a gymnasium in the facility design. Again,
though, there are costs to be traded off. That is, does the increase in morale due to
a cafeteria increase productivity to the extent that the increased productivity
covers the cost of building and staffing the cafeteria."
•Promotional value—If the business commonly receives visitors in the form of
customers, vendors, investors, etc., the small business owner may want to make
sure that the facility layout is an attractive one that further burnishes the
company's reputation. Design factors that can influence the degree of
attractiveness of a facility include not only the design of the production area itself,
but the impact that it has on, for instance, ease of fulfilling maintenance/cleaning
•Safety—The facility layout should enable the business to effectively operate in
accordance with Occupational Safety and Health Assocation guideliness and other
legal restrictions.
"Facility layout must be considered very carefully because we do not want to
constantly redesign the facility," summarized Weiss and Gershon. "Some of the goals
in designing the facility are to ensure a minimum amount of materials handling, to
avoid bottlenecks, to minimize machine interference, to ensure high employee morale
and safety, and to ensure flexibility. Essentially, there are two distinct types of layout.
Product layout is synonymous with assembly line and is oriented toward the products
that are being made. Process layout is oriented around the processes that are used to
make the products. Generally, product layout is applicable for high-volume repetitive
operations, while process layout is applicable for low-volume custom-made goods."


Offices and manufacturing facilities are typically designed in much different ways—a
reflection of the disparate products that the two entities make. "A factory produces
things," wrote Stephan Konz in Facility Design. "These things are moved with
conveyors and lift trucks; factory utilities include gas, water, compressed air, waste
disposal, and large amounts of power as well as telephones and computer networks. A
layout criterion is minimization of transportation cost." Konz pointed out, however,
that the mandate of business offices is to produce information, whether disseminated

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in physical (reports, memos, and other documents), electronic (computer files), or oral
(telephone, face-to-face encounters) form. "Office layout criteria, although hard to
quantify, are minimization of communication cost and maximization of employee
productivity," wrote Konz.
Layout requirements can also differ dramatically by industry. The needs of service-
oriented businesses, for instance, are often predicated on whether customers receive
their services at the physical location of the business (such as at a bank or pet
grooming shop, for instance) or whether the business goes to the customer's home or
place of business to provide the service (as with exterminators, home repair
businesses, plumbing services, etc.) In the latter instances, these businesses will likely
have facility layouts that emphasize storage space for equipment, chemicals, and
paperwork rather than spacious customer waiting areas. Manufacturers may also have
significantly different facility layouts, depending on the unique needs that they have.
After all, the production challenges associated with producing jars of varnish or
mountaineering equipment are apt to be considerably different than those of making
truck chassis or foam beach toys. Retail outlets comprise yet another business sector
that have unique facility layout needs. Such establishments typically emphasize sales
floor space, inventory logistics, foot traffic issues, and overall store attractiveness
when studying facility layout issues.
Konz also observed that differences in factory and office layouts can often be traced
to user expectations. "Historically, office workers have been much more concerned
with status and aesthetics than factory workers," he noted. "A key consideration in
many office layouts is 'Who will get the best window location?' To show their status,
executives expect, in addition to preferred locations, to have larger amounts of space.
Rank expects more privacy and more plush physical surroundings." In addition, he
stated, "Offices are designed to be 'tasteful' and to 'reflect the organization's approach
to business dealings.' " Conversely, in the factory setting, aesthetic elements take a
back seat to utility.
Given these emphases, it is not surprising that, as a general rule, office workers will
enjoy advantages over their material production brethren in such areas as ventilation,
lighting, acoustics, and climate control.


We visited the manufacturing plant of Coca-Cola at Dasna, Ghaziabad on 26th
October, 2007. It was a pleasure to be there and have a first hand experience of the
processed being employed by the American Multinational.

Following is an account of the same visits which helped us immensely to experience

and apply out theoretical knowledge in a real life like setup.

Coke has now been in India for a long time. It entered the market way back in 1993
and has long years of customer trust and awareness backing it. In order to sustain this
faith Coke has done stupendous work to ensure that its manufacturing facilities are
one of the best in the world.

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Dasna is the largest manufacturing facility for Coke in India and covers an areas of 80
acres. The plant manufactures more than 2 million units a day during peak season
which extends from March- September. All the drinks under the coke stable are
manufactured at Dasna with the exception of Mazaa and Minute Maid. In about 6
months time Dasna will get a new assembly line and start manufacturing these two
drinks too. This will make Dasna the largest manufacturing facility in Asia.

Now let us have a look at the step by step process followed at Dasna for the
manufacture of the final product.

Ingredient Delivery

As with any manufacturing facility Coke also begins with procuring the raw material
for production.


A team of professionals, work on selecting, auditing, sampling, testing, approving and

then authorizing the sugar suppliers and the list
of such authorized suppliers with approved
sugar lots and along with the certificate of
analysis are sent across to all the bottling
units for procurement. As a matter of fact Coke is
so careful on where it takes its sugar from that out
of the 181 sugar manufacturing factories in
India only 14 have been authorized by Coke to supply sugar to them.

Secret Formula

Created in special concentrate plants, it's delivered,

held and used under strict controls to maintain its
integrity and security. Each unit of concentrate is
especially identifiable to allow the "history" of each
component to be researched at any stage of
production, storage or use. Throughout the world no
one knows of this Secret Formula. This formula is written on a simple paper and
safely locked in an American bank. The Atlanta headquarters of the Coke is the only
one which is authorized and can manufacture this concentrate. It then supplies this in
cans throughout the world. We were shows these concentrate cans which were about
75% filled.

CO2 Formula

When delivered to the plant, carbon dioxide, or CO2, comes in cylinders for easy
delivery and storage. But what is it? In essence, it's a colorless and odorless gas that
provides the "fizz" for all of Coke’s beverages. But it's also a by-product of human
breathing and used by plants and trees to produce oxygen.

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Since water is a key component to all our beverages, its quality is critical. And, since
public water quality varies around the world, each plant further treats the water it
uses. This means that before water is added to any of our beverages; it's rigorously
filtered and cleansed. We then continuously sample the water to ensure it meet our


Ingredients are not the only things delivered to the plant. Other materials such as
bottles, cans, labels and packaging are also delivered. The plants in India use refillable
and rewashable bottles, CANS, PET etc. in the Production Process, when bottles and
cans are delivered to the plant; they are carefully inspected to ensure that they meet
Coke’s exacting standards. This careful inspection involves use of both technology in
the form of a computerised machine fitted with about 10 Cameras which check for
any faults in the bottle such as broken bottle necks, etc. Also the other part of
inspection involves a manual inspection against a white background. This also
involves manually taking out stuff such as Gutkha pouches, Cigarette butts, etc. from
the bottle Once these have passed initial inspection, they move on to be washed
and/or rinsed.

Washing and Rinsing

To ensure quality, each bottle is washed, sanitized and rinsed before being filled.
While this sounds simple, the actual steps can differ by bottling plant. In Dasna, the
Coke plant uses refillable glass, cans or PET bottles. To ensure they meet their
cleanliness standard, bottles are first hit with prerinse jets which remove any dirt or
debris. They are then soaked in a high-temperature deep cleaning solution that

removes any remaining dirt and sanitizes them. The bottles then move to the
"hydrowash" where they are washed again with a deep cleaning pressure-spray.


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Mixing and Blending

H20 and Sugar

Mixing and blending begin with the steps of mixing pure water with refined sugar,
which creates simple syrup. The syrup is then measured for the correct amount of
sugar. Scientific and state of the art technology is used for the same purpose.

Secret Formula

The secret formula is... still secret! That's right; the secret formula remains a mystery
to the millions of people in nearly 200 countries that enjoy Coke’s refreshing
beverages everyday. As mentioned earlier the secret formula or the concentrate is now
mixed with the syrup prepared in the previous step.

H20 and Syrup

With the syrup nearing its final state, Coke mixes it with pure water, creating the
finished uncarbonated beverage. However, the water and syrup must be mixed in right
ratio. This is done by the beverage proportioning equipment. It accurately measures
the correct ratio for each and sends this mixture to the carbonator.

CO2 Adding

Adding CO2 or carbon dioxide gas is the final

touch that carbonates the beverages. Carbon
dioxide not only gives the beverages their
effervescent zest, but it also adds to the distinctive
and familiar taste everyone has come to expect
from Coca-Cola beverages.


Once all the ingredients have been mixed and blended and the bottles have been
cleaned and sanitized, every thing is ready to start filling. This is a surprisingly
complex process requiring precision at each step. To begin with, bottles must be
carefully timed as they move to the filler - synchronization is the key. Once at the
filler, bottles are either held securely in place by flexible grippers or precisely placed
under filling valves by centering devices. Before the bottles can be filled, the inside of
the bottles must be pressurized. This allows for the force of gravity itself to draw the
beverage into the bottle - a process that ensures the smooth flow of liquid, with little
to no foaming.


Once filled, bottles are then capped. Coke uses different caps for different bottles -
glass bottles are usually topped with a metal crown while "PET BOTTLES" are
topped with a plastic screw-top. Each cap type

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then moves through different parts of the machine, which ensures each cap stays
scratch free and is in the right position to be precisely placed on the bottle. As quality
and freshness are key, Coke uses a "no closure" detector during the capping process
and a "go-no-go gauge" or "torque meter" after the bottles has been capped. The "no-
closure" detector checks if a screw top or crowns has been placed on bottle. The
process actually stops if the detector doesn't find a closure. The "go-no-go gauge"
checks for the proper crown crimp and the "torque meter" checks to make sure the
screw-top is good and tight. If the bottle cap isn't just right, the beverages can become
flat or be affected in other ways. If this happens, the bottle is discarded.


Once the bottles have been filled and capped, they move on to be labeled. A special
machine dispenses labels from large rollers, cuts them and place on the bottles. For
special labels such as commemorative bottles for football championships, the labels
are sent to the bottling plants for approval, and then used for packaging. Depending
on the occasion, some of these special bottles will go only to the specific locations.
For example, a national football championship bottle will be sent only to the home
town or state of the championship team.


The bottle is now ready to be coded. Each one of Coke’s beverages is marked with a
special code that identifies specific information about it. The codes simply identify
the date the beverages was bottled or canned.
These codes identify the date, time, batch no. and
the MRP. Product coding allows Coke to
ensure that customers receive their beverages at
their flavorful best.

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Coca-Cola inspects bottles at many points during the process. With refillable bottles,
it happens they are first brought into the plant. They are also inspected after they are
washed and again after they are filled. Inspectors look for external bottle

imperfections and make sure each bottle has the right amount of beverages. Even after
filling, each plant samples bottles for analysis in its lab to ensure quality is up to


Once Coke’s filled beverages have passed final inspection; they are ready to be
packaged for delivery. Generally, packing can refer to everything from the unique
"BOTTLE" and "CAN" designs, to label
designs, to cardboard boxes and containers, to
plastic rings.

Because the needs and tastes of the consumers are

so diverse, the packaging varies depending
on where the beverages are being sent.

Warehousing and Delivery

In order to make sure the freshest beverages possible get to the customers, each
warehouse must efficiently manage the thousands of
beverages cases produced each day.

Beverage organization is key , though it's the bottle

and can coding that allow for the necessary precision.
From the warehouse, beverages are loaded onto
Coca-Cola’s distinctive trucks. Night and day, these
trucks are delivering some refreshing beverages to
stores, soda fountains, and vending machines near you.

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Following are the sources used for completing this project:



People Spoken to

Ms. Sarika, Plant Manager, Coca-Cola Dasna Plant

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