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SUBMITTED BY:
RAMESH SINGH
R.A. PODAR INSTITUTE OF MANAGEMENT
OF MANAGEMENT STUDIES
UNIVERSITY OF RAJASTHAN
JAIPUR
INDEX
1.) Acknowledgement
2.) Preface
3.) Introduction to Coca-Cola Worldwide
4.) The Top Brass at Coca Cola Worldwide
5.) Bottling
6.) Product Profile
7.) Coca-Cola in India
8.) Terms and Terminology
9.) Research Methodology
10.) Work Process at HCCBPL
11.) TPM in Food and Beverages Industry
12.) Territory Division of Project
13.) Findings
14.) Recommendations
ACKNOLEDGEMENT
I owe a deep sense of gratitude to the members of the quality department and
other staff of Hindustan Coca-Cola Beverages Pvt. Ltd., Kaladera, Jaipur for
their co-operation in designing and maturing the project “Total Product
Management at the Distributor and Retailer level of Coca-Cola”.
And I also pay our sincere regards to our Director Dr. (Mrs.) Gitika Kapoor, Dr.
(Mrs.) Anjila Saxena, Dr. Rajesh Kothari, Dr. Harsh Dwivedi and Dr. Arvind
Kalia for their valuable guidance and suggestions from time to time.
In the I phase of the project I collected various samples from the Distributors
and Retailers and surveyed the warehouses along various quality parameters
with the help of questionnaires and observation method.
In the second phase I analyzed the data generated in the I phase, generated
report on its basis and presented the same to the quality department officials
with the help of bar graphs, pie-charts and histograms.
INTRODUCTION TO COCA-COLA WORLDWIDE
The basic proposition of the business is simple, solid and timeless. The
company aims at bringing refreshment, value, joy and fun to its stakeholders,
they successfully nurture and protect brands, particularly Coca-Cola. That is
the key to fulfilling our ultimate obligation to provide consistently attractive
returns to the owners of our business. More than a billion times every day,
thirsty people around the world reach for Coca-Cola products for refreshment.
They deserve the highest quality—every time. Our promise to deliver that
quality is the most important promise we make. And it involves a worldwide,
yet distinctively local, network of bottling partners, suppliers, distributors and
retailers whose success is paramount to our own. Our investment in local
communities in over 200 countries totals billions of dollars in jobs, facilities,
and marketing, the purchase of local goods and services, and local business
partnerships. Always and everywhere, we pursue continuous innovation in the
products we offer, the processes we use to make them, the packages we
develop and the ways we bring them to market.
The Coca-Cola system is one of the most diverse organizations on earth, with
a rich mosaic of talented colleagues who bring a variety of intellectual,
professional, ethnic and cultural perspectives to our enterprise. They reflect
the nations, cultures and languages of the world. Our policy is to foster an
inclusive environment that encourages all employees to develop and perform
to their fullest potential.
SPEECH BY CHAIRMAN
Our workplace must be a place where everyone's ideas and contributions are
valued. Our employees deserve equal treatment under our policies governing
compensation, advancement, health, safety and other aspects of workplace
life. We understand that fairness in the workplace, coupled with the
opportunity to develop individual capabilities, fosters our collective success.
The Coca-Cola Company E.neville Isdell leads The Coca-Cola Company into
the new century with a firm commitment to the values and spirit of the world's
greatest brand. He was elected chairman and chief executive officer in
February 2000 and is the 11th person in the history of the Company to hold
this title.
Across more than 200 countries ... more than 100 languages ... a multitude of
cultures and geographies, The Coca-Cola Company strives to be a special
part of people's lives. This privilege comes with a responsibility. We have
chosen to take a leadership role, knowing that our differences make us
stronger in our business and in our communities - each and every day.
We embrace our commitment to diversity in all its forms at The Coca-Cola
Company as a core value. Diversity - of race, gender, sexual orientation,
ideas, ways of living, cultures and business practices - provides the creativity
and innovation essential to our economic well-being. Equally important is a
highly motivated, healthy and productive workforce that achieves business
success through superior execution and superb customer satisfaction.
In today's volatile economic environment, this kind of performance requires
unprecedented commitment to the principles of integrity and leadership. We
are intent on keeping that commitment.
Although Coca-Cola® was first created in the United States, it quickly became
popular wherever it went. Our first international bottling plants opened in 1906
in Canada, Cuba and Panama, soon followed by many more. Today, we
produce nearly 400 brands in over 200 countries. More than 70 percent of our
income comes from outside the U.S., but the real reason we are a truly global
company is that our products meet the varied taste preferences of consumers
everywhere.
Board of directors
E. Neville Isdell
Chairman, Board of Directors,
and Chief Executive Officer
The Coca-Cola Company
Herbert A. Allen
President and Chief Executive Officer
Allen & Company Incorporated
(a privately held investment firm)
Ronald W. Allen
Consultant to, Advisory Director,
and former Chairman of the Board,
President, and Chief Executive Officer,
Delta Air Lines, Inc.
Cathleen P. Black
President
Hearst Magazines
Warren E. Buffett
Chairman of the Board and
Chief Executive Officer
Berkshire Hathaway Inc.
(a diversified holding company)
Barry Diller
Chairman of the Board and
Chief Executive Officer
InterActiveCorp (IAC)
Donald R. Keough
Chairman of the Board,
Allen & Company Incorporated
Donald F. McHenry
Distinguished Professor in the Practice of Diplomacy
and International Affairs at the School of Foreign Service,
Georgetown University
Robert L. Nardelli
Chairman of the Board, President, and
Chief Executive Officer
The Home Depot, Inc
Sam Nunn
Co-Chairman and Chief Executive Officer,
Nuclear Threat Initiative (NTI)
J. Pedro Reinhard
Executive Vice President and
Chief Financial Officer
The Dow Chemical Company
Peter V. Ueberroth
Investor and Chairman,
Contrarian Group,
Inc. and Co-Chairman,
Pebble Beach Company
James B. Williams
Chairman of the Executive Committee, former Chairman of the Board and
Chief Executive Officer
SunTrust Banks, Inc.
Harry L. Anderson
Director, Supply Chain and Manufacturing Management
Vice President, The Coca-Cola Company
Jean-Michel R. Arès
Chief Information Officer
Vice President, The Coca-Cola Company
Ralph Carlton
Managing Director, Corporate Strategy and Planning
Vice President, The Coca-Cola Company
J. Alexander M. Douglas Jr.
Chief Customer Officer
Senior Vice President, The Coca-Cola Company
Gary P. Fayard
Chief Financial Officer
Executive Vice President, The Coca-Cola Company
Charles B. (Chuck) Fruit
Chief Marketing Officer
Senior Vice President, The Coca-Cola Company
Ingrid Saunders Jones
Chairperson, The Coca-Cola Foundation
Senior Vice President, The Coca-Cola Company
Cynthia P. McCague
Director, Human Resources
Senior Vice President, The Coca-Cola Company
Patricia V. Powell
Senior Vice President, Quality Division
The Coca-Cola Company
Danny L. Strickland
Senior Vice President
Chief Innovation/Research and Development Officer
The Coca-Cola Company
Clyde C. Tuggle
Senior Vice President
Worldwide Public Affairs and Communications
The Coca-Cola Company
Bottling
Before any one of our nearly 400 brands is consumed by anybody around the
world, it has to be produced, packaged and distributed. Since we reach six
billion consumers in over 200 countries, our bottling system has to be the
best.
Our bottling partners are local companies - some independently owned, some
partially owned by The Coca-Cola Company - so they are rooted in their
communities, thinking and acting locally. They are employers, purchasers of
local goods and services, good neighbors, and, of course, producers of the
world's most popular beverages.
It's a big job, and sometimes it's done quite creatively. In Indonesia, for
instance, boats transport Coca-Cola® and our other brands between the
many hundreds of islands that make up that nation. In the Amazon, where the
main road is often the river itself, water-borne distribution is also common. In
some of the higher elevations of the Andes, Coca-Cola is sometimes
transported by four-legged power. Across much of Africa, bottlers deliver to
thousands of family-run kiosks and home-based stores on which local
economies depend.
Cappy Capric
Carvers Chafresco
Chaho Charrua
Cheers Cherry Coke
Chinotto Chinotto Light
Chippewa Ciel Chivalry Citra
Coke II Coca-Cola
Cocoteen Cresta
Cristal Crush *
Crystal Cumberland Gap
D
Dannon * Dasani Water
Delaware Punch DESCA
diet A&W * diet Almdudler
diet Canada Dry * diet Charrua
diet Cherry Coke diet Coke/Coca-Cola light
diet Coke/Coca-Cola light diet Crush *
with lemon
diet Dr Pepper * diet Fanta
diet Inca Kola diet Kia Ora *
diet Krest diet Lift
diet Lilt diet Mello Yello
diet Minute Maid Soft diet Mr Pibb
Drink
diet Nestea Cool diet Nestea/Nestea Light
diet Oasis * diet Schweppes *
diet Sprite/Sprite Light diet Squirt *
diet Tai diet Vanilla Coke
Disney Hundred Acre Disney Xtreme Coolers
Wood
Dorna Dr Pepper *
Drim
E
Eight O'Clock Eight O'Clock Fountain
Eight O'Clock Litro Pack Emblem
FG H
Georgia H2OK
Georgia Club Hanul Yeon Cha
Georgia Gold Hawai
Gini * Hi Spot *
Gira Hi-C
Gold Spot Hit
Grand Blue Horizon
Grapette Huang
Guarana Jesus
I J
Ice Cold Mix Jaz Cola
Ice Dew Jet Tonic
Ice Mountain Jinmeile
Inca Kola Jolly Juice
Itu Joy
Izvorul Alb Jurassic Well
K L
Kapo Axion
Kapo Leafs
Kapo Super Power Lift
Kia Ora * Lilt
Kilimanjaro Limca
Kin Limonade
Kin Light Linnuse
Kinley Love Body
KMX
Kochakaden
Koumi Soukai
Krest
Kuat
Kuat Light
Kuli
M N
Maaza Nagomi
Mad River Nalu
Magnolia
Fanta Namthip Water
Finley
Magnolia Funchum Natua
Fioravanti
Magnolia Zip Five Alive
Nectarin
Manzana Mia Nescafe
Fontana Fraser & Neave
Marocha Nestea
Master Chill Nestea Cool
Freezits Fresca
Master Pour Nestle
Mazoe
Frescolita Nevada
Freskyta
Meijin New Vegitabeta
Frestea
Mello Frisco
Nihon Alps Mori No
Mizudayori
Frugos Fruit Labo
Mello Yello Nordic Mist
Mer Tree
Fruit Northern Neck
Fruitia
Mezzo Nusta
Fruitopia
Miami Fruitopia Tea
Mickey Mouse
Fruktime Frutina
Migoro-Nomigoro
Milo
Frutonic Funchum
Minaqua
Minute Maid
Minute Maid Juice To
Go
Minute Maid Soft Drink
Mireille
Mr Pibb
O P
Oasis * Paani
Odwalla Parle
OK Pepe Rico
COCA-COLA IN INDIA
Old Colony * Pilskalna
Coca Cola in India- Planet Java
Play
Pocket Dr
Poiana Negri
Poms
Ponkana
Ponkana Litro Pack
Pop
Portello
POWERade
POWERade Light
After a 16 years absence, coca cola returned to India on October 26,1993
Private Label
with its launch in Agra.An engagementPulp
in March 1993 with the Parle Group
gave the company instant ownership ofPumpthe nation’s top soft drinks brands,
with access Qto parle’s 53-plant botteling
R network, and a base for rapid
As the leading producer and marketer Refresh Tea in India, the company
of soft drinks
Rimzim
leads the flavoured, carbonated soft drink market . the Coca-cola Company’s
products in India include the company’sRio international brands- Coca cola,
Ripe Nsoft
sprite and fanta, as well as India’s leading Ready
drink brands, Thumps Up
Limca and Maaza- brands acquired fromRisco
the Parle Group in 1993.
Riwa
Zip
* In Select Markets
Sponsorships
The company sponsors a unique national radio program for women called
"The HER Show" (Health Education and Recreation). The 30-minute weekly
program informs and educates housewives on primary health and education
issues.
We sponsored a one-day "Mother & Child Health district Mela" in Ghaziabad.
Several hundred women and children from five villages received free medical
check-ups and consultation.
With a large work force complemented by a vast network of indigenous
suppliers ,the company not only contributes to the development of the soft
drink industry ,but to the development of related industries and the economy
as a whole.
Over the past 5 years , coco-cola India has led the Indian Soft drink industry
through a series of innovative industry initiatives . These include upgradation
of technical infrastructure and talent ,enhancement of quality standards ,
improvement in the distribution systems and stimulation of local entrepreneurs
in the marketplace to the benefit of the consumers.
Brands In India
COCA-COLA®
FANTA®
KINLEY™
Introduced in India in August 2000, Kinley is purified
bottled water. In a country where many people are
concerned about reliable drinking water, Kinley delivers a
product that is safe and suitable for consumers and their
families.Within ten months of its launch, Kinley had
emerged as India's number two packaged water and is
currently the number three Coca-Cola product in India.
Especially popular among adults who seek a better quality of life and a
healthier lifestyle, Kinley is available in a range of packaging including 500 ml,
1 liter and 2 liter PET bottles, and 5 liter, 15 liter, 20 liter and 25 liter bulk jars
for in-home consumption
LIMCA®
THUMS UP®
1.) DOD- DESPATCH OUT DATE- The date at which the product must
leave the factory warehouse and reach retail outlet. If any product is
going to attain its DOD in a week’s time then it must be communicated
to the manger of the warehouse & the stock should be cleared as soon
as possible.
2.) Focus Stock- The stock whose DOD is less than 15 days away.
3.) BBD- Best Before Date- The date before which the product is fit for
consumption. BBD stock can’t be sold in market.
4.) Clearance Stock- The stock which is between the Focus & BBD
stage.
5.) Quality Distributor Audit- Company’s quality auditor pays regular
visits to the warehouses of the distributor and the retailer to check
whether all the quality parameters are met or not.
6.) RGB- Refill Glass Bottle. These bottle are made up of glass.
7.) PET- These bottle are made of plastic.
RESEARCH METHODOLOGY
For the purpose of the study surveys were conducted at the distributor and
retailer warehouses across different cities of Rajasthan. The survey sheet (a
sample copy is attached) were prepared according to the objectives of the
project and was administered accordingly. The data gathered through this
exercise became the primary data. The survey sheet was accompanied by
discussions with dealers and retailers which provided an in-depth view of the
problems and challenges faced by them on the quality issues. Detailed notes
were prepared on the basis of these discussions.
The methodology was used to gather information and data related to the
quality problems faced by the distributors and retailers of coca-cola so as to
minimize the lead time of the product from factory to the point of purchase.
Discussions- To prepare the guidelines of the study and to get the general
idea of the working of the organization and its different departments various
discussions and brain storming sessions were held with different departmental
heads at the kaladera plant.
Flow Diagram
Reception of
Potable Water
Demineralization &
Standardization of
Water
Adjustment of pH
Mixing of Concentrate
Bottling
HCCBP ltd is operating a bottling plant for the manufacture of sweetened
aerated beverages in kaladera industrial estate developed by RIICO, near
Kaladera village, Chomu Tehsil of Jaipur district, Rajasthan Plant is spread
over an area of about 20 acres.
The topography of the area is fairly flat. The elevation of the site is 492meters
above the mean sea level. The nearest towns are chomu & Jaipur. There is
no major river near the site and nearest water body in Mandha, Siker located
across. 12 KM north of the site. There several small and medium scale
industries around the plant.
WHAT IS TPM ?
PRODUCTION
WAREHOUSING
DISTRIBUTION
EDUCATE
EXECUTE
MONITOR
MAINTAIN
TPM
IN
FOOD & BEVERAGES INDUSTRY
CLASSIFICATION OF GOODS
Product Portfolio
RGB (Reusable glass bottles)
Coca-Cola, Fanta, Sprite, Limca, Thums-up, Kinley soda, Maaza, Sport
Cola, Canada Dry
PET (0.5 lit, 1.5 lit, 2 lit)
Coca-Cola, Fanta, Sprite, Limca, Thums-Up
Can (330 ml)
Coca-Cola, Fanta, Sprite, Thums-Up
Tetra Pack (200 ml)
Maaza
Parameters of TPM
BBD (Best Before Date) – It is the date which assures consumer that product
is fit for consumption.
PACKAGING MATERIAL BEST BEFORE DATE
(BBD)
RGB 180 DAYS
PET (2 Lit, 1.5 Lit) 90 DAYS
PET (0.5 Lit) 60 DAYS
CAN (except diet coke) 60 DAYS
TETRA PACK 180 DAYS
FINDINGS
With the help of questionnaires we found out the average age of PET and
RGB at the distributors and retailers warehouse at the places we toured. The
findings of the various distributors and retailers have been complied in the
charts below.
100
89
90
80
70 67
64
58
60
46
AVERAGE AGE ( in days)
50 44 44
40
30
20
10
0
Coca- F a n ta T-U P S 1p r it e L im c a K . S o d a A G G R EG R A TE
C o la
SKUs
A v e r a g e A g e o f t h e P e t 1 .5 l & 2 l o n R A C K S - J a ip u r
70
60 60
60 57 56
50 47 47
44 45
40
AVERAGE AGE ( in days )
30
20
10
0
c o c a - c o la f a n t a 2 l F a n t a 1 . 5 LK . S o d 1a T - U P 2 L L im c a 2 L L im c a 1 . 5ALG G R E G R A T E
SKU
AVERAGE AGE OF COCA-COLA PRODUCTS AT THE RETAILER LEVEL
JUICE&COLD DRINKS 46
RESTAURANTS 52
PET 500 ML
STD/PAAN 43
GROCERIES 38
0 10 20 30 40 50 60
AVERAGE AGE (IN DAYS)
AVERAGE AGE OF RETAILERS
JUICE&COLD DRINKS 29
STD/PAAN 89
RGB
Average Age
RESTAURANT 81
S
GROCERIES 58
0 10 20 30 40 50 60 70 80 90 100
C o m p ete tiv e a n a ly sis o f R G B
120
100 97
80
Days
60 54
40
29
20 16
0
2003 20 04 Q uarter'03 Q u arter'04
C o m p e titiv e a n a ly s is o f P E T
90 85
82
80
70
60
50
Days
40
30
30 27
20
10
0
2 003 20 04 Q ua rter'03 Q u art er'0 4
Competetive analysis of Kinley water
120
112
107
104
100
80
Days
60
45
40
20
0
2003 2004 Quarter'03 Quarter'04
Competetive analysis of CAN
80 79
78
76 75 75
74
Days
72
70
70
68
66
64
2003 2004 Quarter'03 Quarter'04
S a le p e r d a y in M a y '0 4 in d iffe r e n t A r e a s
600
500
400
300
PRODUCTS
200
100
0
T o n k R o a dR a j a P a r kM a l v i y a N aS gt a rt i o n R o aS d o d a l a C -s c h e m e
AR EAS
T h u m s Cu po c a - c Lo il ma c aS p r i t eM a a z a
SHARE OF DIFFERENT BRANDS IN RAJASTHAN
Limca
20%
Sprite
5%
Fanta Thumsup
8% 55%
Coca-cola
12%
Production:-
Warehouse:-
Distribution:-
• Note arrival time of truck and departure time from plant
• Check conformity of brand/pack against indent
• Note date code & segregate date wise and tag
• Select cool – ventilated area of low temperature
• Move older lot for first out dispatch
Improve storage condition – godown/layout
• Check stock against target& trend
• Decide order – dispatch schedule by brand/pack
• Ensure fifo practice by agent
• Create awarness of TPM specifically PET- maaza- sprite
• Rationalise route and brand time table (small vehicle)
• Do not kill or over order stocks
• Personality supervise date code – check – all products
• BBD lapse is a direct revenue hit
• Report high risk stock – take suitable action
• Demonstrate – educate – enforce FIFO at pos along with the daily
route activity
• Be polite but firm about agent’s and retailer’s negligence . Don’t let
replacement be taken for granted
FIFO method should be follow while placing the stock so it is easy for shipping
department at the time of dispatch, so the old stock is not remain in
warehouse and become BBD stock. FIFO method is strictly followed in
shipping department. The stock is reach to the distributor point with in
dispatch out date (DOD) is half of best before date (BBD). DOD is very
important. It is the maximum time allowed for reaching the goods from
production to distributor.
Proper receiving of goods from company and maintain the record of each
stock.
The following step is maintained:-
1) Record for stock received.
2) Stock is placed in such a way that FIFO method is follow.
3) Ageing analysis board should be maintained regularly.
4) Proper ventilation and lighting should be there.
5) Place should be free from insects and pests.
6) Dry and proper temperature should be maintained.
7) Proper management of product delivery to retailer.
We do the retailer’s survey in which we see the manufacturing date of
each brand present at retailer’s shop. From this we conclude that this
product is BBD or not, if it is BBD then, it means that the sale of this flavor
is not very good and this flavor is not liked by the consumer. If the product
is fresh not BBD then the sale of product is good because in this business
the flavor is most important element. In this survey we inform the
distributor to replace the BBD product. This process helps management to
decide which flavor is more popular & which is less popular.
We also conclude that Thumsup and Limca (RGB) flavor are more wanted
or sale at juice center. 2L PET is more at provision store and department
store. In rural area RGB’s Selling is more because it cost Rs. 35 and give
2L in comparision to 300 ml and 500 ml and the quantity is also sufficient
for family members. In this summer sale of 2L PET of Thumsup and Limca
is more because in comparison of 300 ml and 500 ml, 2L cost less.
RECCOMENDATIONS
After the completion of two months on the project the above findings were
presented to the officials of Coca-Cola along with various recommendations
based on the findings of the project. The recommendations were based on a
case to case basis of various distributors and retailers and follow up action
was also taken on various occasions.
As it has been depicted in the graph above the average age of the products
had declined in an average in 2003 as compared to 2002 which is necessary
for the TQM Phase III Certification for which the Kaladera plant was striving.
The above report generated by us was presented to the higher authorities of coke to
lay claims for the certification, the decision on which was pending while we finished
the project.