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AKNOWLEDGEMENT
First of all bow our head before ALLAH ALMIGHTY. ALLAH the
Omnipotent, Omnipresent and to the HOLY PROPHET
MUHAMMAD (PBUH) for completion of our assignment.
Our humble and heartiest thanks are for our best teacher
“Man. Irum” to motivate us and encourage us to complete this
task.
BBRRRRRRRRRRRRRRRRRRRRRR
RR!!!
Introduction
Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines
worldwide (The Coca-Cola Company claims that it is sold in more than 200 countries.). It
is produced by The Coca-Cola Company in Atlanta, Georgia, and is often referred to
simply as Coke or (in European and American countries) as cola, pop, or in some parts of
the U.S., soda. Originally intended as a patent medicine when it was invented in the late
19th century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs
Candler, whose marketing tactics led Coke to its dominance of the world soft-drink
market throughout the 20th century. The company produces concentrate, which is then
sold to various licensed Coca-Cola bottlers throughout the world. The bottlers, who hold
territorially exclusive contracts with the company, produce finished product in cans and
bottles from the concentrate in combination with filtered water and sweeteners. The
bottlers then sell, distribute and merchandise Coca-Cola in cans and bottles to retail stores
and vending machines. Such bottlers include Coca-Cola Enterprises, which is the largest
single Coca-Cola bottler in North America and western Europe. The Coca-Cola Company
also sells concentrate for fountain sales to major restaurants and food service distributors.
The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke
brand name. The most common of these is Diet Coke, which has become a major diet
cola. However, others exist, including Caffeine-Free Coca-Cola, Diet Coke Caffeine-
Free, Coca-Cola Cherry, Coca-Cola Zero, Coca-Cola Vanilla, and special editions with
lemon, lime, or coffee.
Our Mission
•
Our Winning Culture
Our Winning Culture defines the attitudes and behaviors
that will be required of us to make our 2020 Vision a
reality.
• Be insatiably curious
Work Smart
• Work efficiently
Act Like Owners
In 1886, when Atlanta and Fulton County passed prohibition legislation, Pemberton
responded by developing Coca-Cola, essentially a non-alcoholic version of French Wine
Cola. The first sales were at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886. It
was initially sold as a patent medicine for five cents a glass at soda fountains, which were
popular in the United States at the time due to the belief that carbonated water was good
for the health. Pemberton claimed Coca-Cola cured many diseases, including morphine
addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton ran the first
advertisement for the beverage on May 29 of the same year in the Atlanta Journal
In an attempt to clarify the situation, John Pemberton declared that the name "Coca-Cola"
belonged to Charley, but the other two manufacturers could continue to use the formula.
So, in the summer of 1888, Candler sold his beverage under the names Yum Yum and
Koke. After both failed to catch on, Candler set out to establish a legal claim to Coca-
Cola in late 1888, in order to force his two competitors out of the business. Candler
purchased exclusive rights to the formula from John Pemberton, Margaret Dozier and
Wool folk Walker. However, in 1914, Dozier came forward to claim her signature on the
bill of sale had been forged, and subsequent analysis has indicated John Pemberton's
signature was most likely a forgery as well.
In 1892, Candler incorporated a second company, The Coca-Cola Company (the current
corporation), and in 1910, Candler had the earliest records of the company burned,
further obscuring its legal origins. Regardless, Candler began marketing the product,
although the efficacy of his concerted advertising campaign would not be realized until
much later. By the time of its 50th anniversary, the drink had reached the status of a
national icon for the USA. In 1935, it was certified kosher by Rabbi Tobias Geffen, after
the company made minor changes in the sourcing of some ingredients.
Coca-Cola was sold in bottles for the first time on March 12, 1894. The first outdoor wall
advertisement was painted in the same year as well in Cartersville, Georgia. Cans of
Coke first appeared in 1955. The first bottling of Coca-Cola occurred in Vicksburg,
Mississippi, at the Biedenharn Candy Company in 1891. Its proprietor was Joseph A.
Biedenharn. The original bottles were Biedenharn bottles, very different from the much
later hobble-skirt design that is now so familiar. Asa Candler was tentative about bottling
the drink, but two entrepreneurs from Chattanooga, TN, Mr. Benjamin F. Thomas and
Mr. Joseph B. Whitehead, proposed the idea and were so persuasive that Candler signed a
contract giving them control of the procedure for only one dollar. Candler never collected
his dollar, but in 1899 Chattanooga, TN became the site of the first Coca-Cola bottling
company. However, the loosely termed contract proved to be problematic for the
company for decades to come. Legal matters were not helped by the decision of the
bottlers to subcontract to other companies, effectively becoming parent bottlers.
Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small
quantities, as an over-the-counter remedy for nausea or mildly upset stomach.
On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the formula of
the drink with "New Coke." Follow-up taste tests revealed that most consumers preferred
the taste of New Coke to both Coke and Pepsi. Coca-Cola management was unprepared,
however, for the nostalgic sentiments the drink aroused in the American public. The new
Coca-Cola formula caused a public backlash. Protests caused the company to return to
the old formula under the name Coca-Cola Classic on July 10, 1985.
In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to "Coca-
Cola." The word "Classic" was truncated because "New Coke" was no longer in
production, eliminating the need to differentiate between the two. The formula remained
unchanged.
In January 2009, Coca-Cola stopped printing the word "Classic" on the labels of 16-
ounce bottles sold in parts of the southeastern United States. The change is part of a
larger strategy to rejuvenate the product's image.
Domestic History
Coca cola started its operations in Pakistan in early sixties.
The brand became very popular in a very short span of time and the company broadened
its operations to meet its increasing demands.
The coca cola inaugurated their plant in multan at Vehari road in 1965. This is still
situated at the same place. Initially it was introduced as a franchise basis. The owners
who took the franchise was not focusing on the quality of coke very much and the were
unable to meet the standard of coke internationally. They were loosing the market share
against Pepsi. So the coca cola company now has taken over it in Pakistan.
Product Line
Beverages
A beverage is a drink specifically prepared for human consumption.
Almost always it largely consists of water. These include:
The bottles that are filled in this plant are 250ml and 1 liter bottles. The pet bottles tin
packs are not filled. The bottles are also not produced in this plant.
Plant
Location & Layout
As we previously mentioned that the plant is situated on Vehari
road. This plant coves the area of 2 Akers. This plant is supplying three main regions
which are:
Multan
Sahiwal
D.G. Khan
The plant is situated in the center of the area where supply is produced. The important
decision of plant location which we’ve studied is completely taken into confederation as
the plant is centrally located to cover the 3 regions.
The company is highly focused and thoroughly belives in elimination of any king of
human involvement in the entire production process. For this purpose the are bringing
more 100% automated machinery soon.
The Multan plant has the wide capacity of producing 24000 bottles per hour and
approximately 600,000 bottles in a day.
This strategy shows the company is fully aware of the significance of modern technology.
Therefore the decision for installation of modern plant is taken.
Operations & Production
Operation Manager
The company by grasping the importance of operations has designated
the Operation Manager as General Manager.
Mr. Madin Asif is currently supervising all the operations of Multan plant. He is a foreign
qualified business graduate with specialization in operations.
General
Manager
Production Sales HR
Manager Manager Manager
Production Manager
Mr. Jaffer Hussain is working as production manager and has a vast
experience of 27 years of beverage industry. Formerly he was the employee of Pepsi but
now he is working with Coca Cola. Professionally he is chemist and a qualified
production manager.
Six sigma is a quality standard that establish a goal of no more than 3.4 degree per
million & procedures.
Six Sigma Quality Standards
A. Water treatment
B. Syrup solution & preparation
C. Scanning & filling of Bottles
The old machine was used for water purification Latest CO2 purifier machine
Scanning & Bottle Filling are also the very important part of
production and quality. In initial scanning empty bottles are tested and scanned to avoid
any types of unhygienic particles. Clean bottles are filled and final scanning is conducted
to check the fill level and again dust particles.
Production Unit
Maintenance
Mr. Anwar Sultan Noor who is qualified mechanical engineer , is
Maintenance Manager and responsible for plant maintenance. According to them there 3
types of maintenance:
1. Run to Failure
2. Predictive Maintenance
3. Preventive Maintenance
The run to failure is taken during the production process. If during production any type of
problem is occurred the run to failure is applied.
The predictive maintenance is made on daily basis on important area of machine where
there is threat of any type of failure
While preventive maintenance is made on monthly and yearly basis. The plant remain
close for a month for yearly maintenance.
Forecasting
The company pays high level of attention and acknowledges the
importance of this tool. The company was previously using the exponential smoothing
technique in forecasting. But now for the last 2 years they are using seasonal index on
weekly & monthly basis & average use.
A group of sales manager, general manager & finance manager consult each other on the
basis of previous collected data and take the vital decision of production. Because
beverage industry in Pakistan is on peek production in summer season, forecasting
technique plays very important role in the production.
Sales
The sales department is responsible for the entire sales of the products.
They have the coordination with production, distributors and retailers. The sales
department is headed by the Sales Manager Mr. Imran Hashim who is very experienced
and high profile person in coca cola.
He is achieving sales target every year effectively with his energetic team through out 3
regions. As he is heading 3 regions so he has 92 distributors in 3 regions and 26 in
Multan region. According to Sales Manager they are now taking a very big competitive
edge on Pepsi by offering Better Product with Better Quality. And now they have
achieved 35% of the market share in 3 regions and they are continuously achieving it.
35%
Pepsi
CocaCola
65%
The upper pie chart is showing the market share of coke and Pepsi in 3 regions.
Internationally the coke is the most famous brand and the market share of coke is very
high than Pepsi the result of share survey
Inventory
The plant has very large capacity to store the inventory. They store
the inventory of 7 days on daily basis and maintain & record it daily, approximately the
plant has to store 25000 crates per day. To maintain the inventory they have two types of
softwares which are S.A.P & BASIS. They take help the forecasting technique to make
et Share
25.00%
20.40%
20.00%
Human Resource Management
In our visit to Coca-Cola plant in Multan Pakistan,
we got some interesting facts to mention. The HR Manager Asim Ameen told us that
Coke has direct investment in Pakistan and all plants are not franchised but owned by the
company.
Overall employees of Coke Pakistan are 10,000, out of which 3000 are permanent, 3000
are on contractual basis, and 4000 are temporary.
He further told us that each office of coke in Pakistan have got their separate HR
departments. However, the automation and approving authority remains under the control
of HR department of head office. As hiring and recruitment of all offices is under control
of
1) National Manager
2) Training Manager
3) Coordinating Manager
1) Recruitment
2) Selection
3) Benefits
4) Training
5) Internships
6) Management Training
The Industrial Employee Relation Manager and Payroll Manager are hired recently.
The Manager HR was kind enough to share with us the Human Resource Department
structure also:
Managing
Director
Director HR
Research & Training &
Employee
Developme Developme Admin
Relation
nt nt
Co-
Ordination
HR Co-ordination
Management
Training HR
Asim Ameen told us that the company has been using a locally and custom developed
HRIS until it crashed resulting into the disturbance of HR activities that created a kind of
mess.
According to Asim, a new HRIS called SAP is just under the installation process and will
be linked and enabled within a month. This HRIS is powerful enough to automate HR
activities from job openings to maintaining and payrolls. It helps very much in record
maintaining and decision making. He again emphasized that this is a great tool for
decision making. On asking, Asim told that our MIS (Management Information System)
is helping us link our departments. He says that SAP will also be integrated with it.
Since the HR process is going to be automated with the installation of SAP, right now
they use Rozee.pk’s provided services for recruitment. Asim Ameen further disclosed
their plan to launch their very own career portal that will further help them with job
openings and automation of the hiring process.
Mr. Asim also told about equal employee opportunity & employee safety. If a first like
worker following some rules then a manager will also follow the same rules. For example
no 1 is allowed to smoke in any area except a special smoking area. Same the production
workers and production manager have to wear special shoes.
While employee safety, they also very conscious for employee safety. The employees are
strictly instructed to wear special shoes head wear gloves special glasses ear wear. The
first aid is also available there . if any employee gets any type of serious injury, he is
taken to Khawaja Fareed Hospital immediately.
Supply Chain Management
The coca cola has its suppliers who are nationally
and internationally approved. They have major suppliers for their syrup, plastic, glass,
CO2, chemicals. In Multan plant there is no supply chain management available. The
supply chain is in head office Karachi, Raheem Yaar Khan. In very near future the coke
is making their supply chain on every unit. For this purpose they also hiring the Project
Managers whom add is on internet www.rozee.pk.
The coca cola company have many suppliers for each product for example for glass they
have 8 suppliers. They have very good relation with their supplier and they have no type
of partnership with them. They also have an e-commerce system with their suppliers to
place orders time to time.
As previously mentioned that Multan plant have 3 regions and have 92 distributors. So
these distributors are helping then to supply product to end consumers.
The plant have 5% of logistic and using 95% of logistic of their suppliers. They only
have truck vehicles and use only the road way they do not have any type of air ways for
their supply locally.
Conclusion
By visiting the coca cola plant, we observed that after 2000 the market share is
continuously increasing. The coke has strictly focused on the quality of their product and
followed the top ten OM decisions. By following these decisions coke is increasing its
productivity and market share continuously
References
The General Manager Mr. Madin Asif
The General Manager finance (raheem yaar khan plant) Mr. Saeed
http://en.wikipedia.org/wiki/Coca-Cola
http://www.thecoca-colacompany.com/heritage/ourheritage.html
http://lcweb2.loc.gov/ammem/ccmphtml/colahome.html
Appendix
Questionnaire
• How much inventory for each time should your company have?