Lesson 364 of Industrial Engineering ONLINE Course. - Productivity Management Module.
Coca-Cola
2026
McKinsey - Coca-Cola Case Study - 2026
ECCBC (a leading bottling partner of The Coca-Cola Company in North and West Africa, operates in 13 countries with more than 5,000 employees and 250,000 points of sale) bets big on operational and performance excellence to expand into new markets—and become a reference for the industry.
2x revenue improvement after a transformational journey on performance excellence.
5x operating income and 3x EBITDA profitability gains driven by operational changes, expansion, and enhanced team capabilities.
2023
Job Advertisement: Director Supply Chain Planning & Productivity - LATAM
Location: Mexico City, Distrito Federal MX
Job ID: R-86675
Post Date: April 18, 2023
Why be part of Coca-Cola Latin America?
We are accelerating our momentum as the fastest growing consumer goods company in Latin America. People are our focus when we collaborate with our diverse network of locally connected manufacturers and when we return every drop of water we use to communities and nature. We empower our employees to challenge the status quo, make bold recommendations, experiment, and adapt, so we can grow together and make a great business even better.
For over 135 years, we have grown to become the most recognized brand in the world. Today, we have hundreds of brands that continue to grow, such as Fanta, Sprite, Aquarius, Fuze and more!
What we expect from you:
Lead Supply Chain Strategy implementation in Mexico
Lead Strategic Supply Chain Initiative roadmap implementation in Mexico
Lead Strategic Initiative from Business Case Development though Approval and Implementation in Mexico
Lead Cross Functional Processes to ensure Alignment of Operational and Business Plans across functions and partners
Serve as Mexican primary point of contact for Supply Chain Network to share and implement best practices locally
Execute strategic vision of supply chain design and its execution plan, capabilities needed for the present and future business (including technological and digital needs) and expansion of a continuous improvement culture, both internally and towards the System in LATAM
Route to Growth and Profitability: Enabling operational excellence through benchmarking to run the business and promoting value chain changes to elevate System´s performance. Responsible for establishing and drive a productivity projects pipeline for the assigned territory, and as PMO follow-up implementation with the correspondent directors, VPs, project managers on committed projects, timeframe and expected results, providing directions for fast track and assignment of resource. Responsible to lead a productivity culture road map in Mexico including a process scheme for supply chain processes.
Develop and implement performance management system and routines to measure and track productivity initiatives and savings achieved, by working cross-functional with the organization, Bottlers and Suppliers. Responsible for development of a productivity scorecard.
Lead Mexican Contingency and Business Continuity Plans, working in partnership with TI&SC teams (mainly Technical Operations) and commercial teams, sourcing entities, Bottlers and their associations and suppliers.
In partnership with infrastructure teams, deliver efficient capacity ahead of demand solutions in a E2E SC perspective. Run capacity initiatives connected with long-term capacity plan for all categories with bottlers and Supply Chain partners in Mexico.
Lead ES&OP and S&OP and S&OE agendas in partnership with CPS, OU multifunctional teams and Bottlers
Build a local responsive supply chain.
Be part of a multifunctional team responsible for ESG in Mexico
Lead a team of 3 Supply Chain Professionals. Considered as a supply chain expert both internally and externally.
Lead Supply Chain communication with Mexican bottlers, contract manufacturers, suppliers, and other KO Supply Chain teams
Communicates for influence, action, and decision making with Supply Chain and cross functional partners for resource allocation and decisions
The role frequently deals with situations where bottlers and partners have shared strategic alignment but frequent operational misalignment
Qualification & Requirements
10 + years of Supply Chain experience with depth in one area of Supply Chain and breadth across multiple supply chain experience.
Franchise and Operational Leadership experience preferred
Mastery of (required) Supply Chain Planning & supply chain analysis; Product Commercialization; Program Management; franchise leadership; influencing and negotiation; contingency planning and BCP; s&OE, S&OP, E&OP
Broad expertise in (Good to have) Strategy development; Infrastructure planning; strategic sourcing and procurement; Team Leadership; financial analysis & productivity; INTEGRATED MANAGENT SYSTEMS & DiGITAL LITERACY; RTM, NETWORK OPTIMIZATION
Job Advertisement: Senior Product Developer, Productivity & BCP
Location: Shanghai, Shanghai CN
Job ID: R-86716
Post Date: April 7, 2023
Position Overview:
Independently developing productivity pipeline and BCP coordination on behalf of APAC R&D. Strongly building network with global and OU productivity/BCP community to drive bottom-line savings and guarantee the business continuity.
Function Related Activities/Key Responsibilities:
• Work with related functions including marketing team and technical team for productivity & BCP, review the project brief and make sure all technical requirements are practicable, and work with project team to manage the risk and give the positive solution.
• Manage multi-juice productivity or cross-category realted BCP projects independently based on the accumulated beverage know-how and project skills.
• Proactively facilitating ideas for future saving opportunity and promote the feasibility check and commercialization possibilities.
• Summarize the R&D achievements in a regular base and motivate APAC R&D productivity champion community for deep sharing and supporting as a whole
• Develop and maintain effective working relationships across KO R&D system and related internal and external business functions to support business growth initiatives, with good communication skills.
• Continue the stability program to deliver solid results.
• Dedicate to lab work and efficiently input formulation in TCCC proprietary databases, such as PICASSO, technical database, etc.
Education Requirements:
Food Science and / or Food Engineering is preferred
Functional Skills:
Good computing skills and be familiar to use Windows and Outlook
Good presentation skills
Excellent English
SAN FRANCISCO—February 21, 2023.
Coca-Cola Initiates use of New AI - The Generative AI
The Coca-Cola Company announced as the first company to engage with the alliance of Bain & OpenAI.
Bain & Company today announced a global services alliance with OpenAI, the research and deployment company behind the AI systems ChatGPT, DALL·E and Codex, which are changing the way people communicate and create.
Coca-Cola Ballina has been recognised by the World Economic Forum
Caoimhe Gordon
January 13 2023
Coca-Cola Ballina has been recognised by the World Economic Forum as one of the most advanced manufacturing sites in the world.
The Ballina site is Coca-Cola’s largest concentrate manufacturing facility,
The digital transformation has increased productivity levels by 6.8pc in 3 years, with energy usage also down by 29pc.
Coca-Cola: The people-first story of a digital transformation
July 25, 2022 | Podcast
Boosting productivity by more than 20 percent using Digital Transformation.
Global consumer goods company Coca-Cola has established a digital academy to upskill managers and frontline team leaders across its business operations. In its first year, the academy trained more than 500 people in digital skills using a combination of go-and-see visits, immersive boot camps, and e-learning modules. Graduates of the academy have implemented about 20 digital, automation, and analytics approaches at ten-plus sites in the company’s manufacturing network, boosting productivity and throughput by more than 20 percent.
Coca-Cola Foundation Philippines and the Philippine Sugar Research Institute Foundation (PHILSURIN) entered into an agreement to help boost the productivity of small sugarcane farms and increase the income of sugarcane farmers in Negros.
https://orangemagazine.ph/2023/improving-productivity-and-empowering-farmers-coca-cola-foundation-and-philsurin-solidify-partnership-for-sustainable-production/
How does Coca-Cola implement hybrid working to provide a better workplace?
https://ones.software/blog/2022/11/29/how-does-coca-cola-implement-hybrid-working-to-provide-a-better-workplace/
Coca-Cola India’s Project Unnati Has Touched the Lives of 3.5 Lakh Plus Farmers Across 12 States in India.
Aiming to positively impact farmers by increasing productivity of fruits, upto 5X by adoption of Good Agricultural Practices (GAPs), leading to enhanced incomes
For Coca-Cola European Partners Deutschland, It’s Easier Digitally With Parsable
2022
2022
Today, the company said its global marketing leaders now “primarily focus on innovation as well as marketing efficiency and effectiveness”. Coca-Cola had been restructuring its leadership team since August 2020 to better “capture growth in the fast-changing marketplace”.
https://www.marketingweek.com/coca-cola-marketing-effectiveness-pandemic-learnings/
02-Aug-2022 — mindset for employee productivity and engagement. Solutions to do it ... Coca-Cola Europacific Partners (CCEP) is the world's largest bottling company.
Dematic World-first Delivers Record Productivity For Coca-Cola
Dematic world-first delivers record productivity for Coca-Cola Coca-Cola Amatil Eastern Creek, Australia Case Study A key element of Coca-Cola Amatil’s award winning supply chain remodelling program, Project Jupiter, was the construction of a new distribution centre (DC) at Eastern Creek to service their 14,000 Route Trade customers from Bega to Coffs Harbour.
https://www.contentree.com/caseStudy/dematic-world-first-delivers-record-productivity-for-coca-cola_207089
2021
Coca-Cola is raising customer satisfaction levels by gaining greater visibility into its transportation operations, an exercise that has helped reduce detention and dwell times and is giving all constituents a better view of where shipments are and when they will arrive. The company is using technology tools from FourKites to achieve the results, a project representatives from both firms discussed during an education session at CSCMP EDGE 2021. Improving visibility throughout the supply chain can bring strong gains in productivity and efficiency.
IMPLEMENTATION STORY
Coca-Cola Europacific Partners ServiceNow helps make employees’ lives easier at the world’s largest bottling company and increases productivity of employees.
Challenge
Setting a digital-first, self-service mindset for employee productivity and engagement
Solution
Create a one-stop digital platform to manage all HR processes
Products - ServiceNow® HR Service Delivery- ServiceNow® Safe Workplace
1 Million hours of productivity unlocked for employees.
>23K employees use the system
© 2021 ServiceNow, Inc.
Coca-Cola Andina Builds Data Lake on AWS, Increases Analytics Productivity by 80% for More Data-Driven Decision-Making
2021
2020
15 Dec 2020
Coca-Cola United was challenged to streamline its order and invoicing procedures. It rose to the occasion quickly, using Microsoft Power Automate robotic process automation (RPA).
The solution was built by the company’s fusion teams of citizen developers and professional developers and its partner, Happiest Minds Technologies. Coca-Cola United started by synchronizing data between the company’s SAP CRM system and Azure SQL using Azure Data Factory. Happiest Minds added the automation, creating a master automated service agent they’ve dubbed “Asa.” Developed on Microsoft Azure and Microsoft Power Platform, Asa consists of several bots and uses Azure Key Vault to help secure and control passwords and other sensitive data.
Power Platform Build Tools for Azure DevOps were used to co-ordinate work between Coca-Cola United and Happiest Minds, making it easier to drive continuous improvement and development across the project. These tools also enabled automation of common build and deployment tasks. “Power Platform and Azure DevOps enabled our citizen developers, pro developers and partner to build as a team – and that accelerated the entire development process,” says Means.
Now, when a CRM agent enters an order into the CRM system, Asa takes it from there and signs in to the company’s SAP system without human intervention. Asa easily accesses orders, which are now tracked in a Microsoft Azure SQL database rather than in an Excel spreadsheet. Asa reads the database and creates a PO in the company’s SAP system. Asa then submits the order to the supplier’s web application, validates successful entry, monitors the email system for invoice and delivery emails, matches them to the correct order, and then stores the attachments in Azure Blob Storage for future reference. After that, Asa uses form processing in AI Builder to extract information from those email attachments that’s necessary to close the process in the Accounts Payable system, and finally, it releases the invoice and PO from SAP. These steps occur with bots within the Asa bot running in unattended mode, a key capability of Power Automate RPA that takes mundane, tedious tasks from humans and shifts them to bots. With RPA unattended mode, everything is fully automated. After deploying the unattended mode in Azure Virtual Machines, Coca-Cola United can now schedule and trigger events that increase end-to-end automation of high-volume tasks—like its suddenly expanded orders for Freestyle. And because Asa is cloud-based, it can automatically scale to any job and interoperate with any application. Just as importantly, Power Platform and Azure provide a rich set of monitoring and alerting capabilities that facilitate debugging.
The new, simplified process frees the dedicated CRM agent, allowing orders from all channels, such as inbound and outbound call center agents, field service sales representatives at customer sites, and via a customer self-service portal.
28 Aug 2020
The Coca-Cola Company Announces Strategic Steps to Reorganize its Business for Future Growth.
Innovation, marketing efficiency and effectiveness are top priorities for the company.
The company is building a networked global organization. The company will create new operating units focused on regional and local execution that will work closely with five marketing category leadership teams that span the globe to rapidly scale ideas.
the company is reinforcing and deepening its leadership in five global categories with the strongest consumer opportunities:
Coca-Cola
Sparkling Flavors
Hydration, Sports, Coffee and Tea
Nutrition, Juice, Milk and Plant
Emerging Categories
The leaders of these categories will work across the networked organization to build the company’s brand portfolio and win in the marketplace. Global category leads will report to Chief Marketing Officer Manolo Arroyo.
Moving forward, the operational side of the business will consist of nine operating units that will sit under four geographical segments, along with Global Ventures and Bottling Investments.
The company’s operating leaders will report to President and Chief Operating Officer Brian Smith.
Platform Services
The company today announced the creation of Platform Services, an organization that will work in service of operating units, categories and functions to create efficiencies and deliver capabilities at scale across the globe. This will include data management, consumer analytics, digital commerce and social/digital hubs.
Platform Services is designed to improve and scale functional expertise and provide consistent service, including for governance and transactional work. This will eliminate duplication of efforts across the company and is built to work in partnership with bottlers.
Platform Services will be led by Senior Vice President and Chief Information and Integrated Services Officer Barry Simpson.
The Challenge
The Global Finance Operations Division (GFO) of The Coca-Cola Company manages more than 50,000 GL accounts. Yet multiple systems and approaches to the reconciliation process created serious challenges for the global company.
The company began its search for a cloud-based, globally accessible reconciliation solution. Blackline solution was selected.
The company created a global business process lead role to drive implementation in all plants.
Reduced number of employees involved in reconciliation by 55%. Previously, the monthly financial close process required the help of 800 employees across shared services, manufacturing plants, and business units. By using BlackLine, The Coca-Cola Company has reduced the number of employees who were involved in manual and routine reconciliations to 360, a 55% reduction.
Saved $0.6 million per year through increased productivity.
Plan to realize cumulative savings of $4.3 billion in 2019.
Productivity plan performance 2018: This plan was introduced in 2012 and expanded a couple of times since then to extend up to 2019.
It focuses on
- restructuring the Company’s global supply chain;
- implementing zero-based work, an evolution of zero-based budget principles, across the organization; streamlining and simplifying the Company’s operating model; and
- further driving increased discipline and efficiency in direct marketing investments.
The new productivity plan has been extended its previous productivity plan to save $3 billion in annual savings by 2019 to achieve an additional incremental savings of about $800 million, bringing its current program to $3.8 billion in productivity savings. If the $500 million of productivity that is planned to be transferred to Coca-Cola’s bottling partners in 2019, the program extends to $4.3 billion in productivity savings by 2019.
https://www.forbes.com/sites/greatspeculations/2019/02/13/how-much-will-refranchising-boost-coca-colas-margins-in-2018/
HCCB India - PRODUCTS - TECHNOLOGY
18 Jan 2019
Several factories at HCCB use ErgoBloc. This technology has helped save electricity and water, while increasing speed and maximising output. With ErgoBloc technology, the bottles do not have to be passed through the air conveying rails, and within a block, they reach the filling machine. Subsequently, the filling happens at a much higher temperature (15-17 degrees Celsius) than the earlier process. Thus the product warming process has been eliminated, which saves a good amount of water.
At Hindustan Coca-Cola Beverages, we understand the importance of saving our resources today and consider ourselves responsible for shaping tomorrow. After all, a stitch in time saves nine!
https://www.hccb.in/en/blog/products/technology
Related to Ergobloc
http://kronesservice.com/en/products/references/coca-cola-femsa-ergobloc-l-syrupkitchen.php
https://www.krones.com/en/products/machines/wet-section-block-ergobloc-l.php
https://www.krones.com/en/products/references/first-ergobloc-l-up-and-running.php
Migration of SAP to AWS - Coca Cola Swire - 2019
By migrating our entire IT infrastructure to AWS, we achieved digital transformation of our IT systems, which can serve millions of retail customers or even hundreds of millions of consumers rather than the previous 10,000 sales representatives.
Ke Li
Manager, Cloud Service & IT Operations, Swire Coca-Cola
https://aws.amazon.com/solutions/case-studies/swire-coca-cola/
AI, ML and Data Analytics Use in Coca Cola
How Coca Cola is Leveraging Machine Learning in the Hyper-competitive CPG Industry
2018
https://digital.hbs.edu/platform-rctom/submission/how-coca-cola-is-leveraging-machine-learning-in-the-hyper-competitive-cpg-industry/
The Amazing Ways Coca Cola Uses Artificial Intelligence And Big Data To Drive Success
Sep 18, 2017
https://www.forbes.com/sites/bernardmarr/2017/09/18/the-amazing-ways-coca-cola-uses-artificial-intelligence-ai-and-big-data-to-drive-success/
2015
Coca-Cola’s 2015 Productivity Initiatives: A Closer Look at Costs
By
Sharon Bailey
Nov 27, 2015
https://marketrealist.com/2015/11/coca-colas-2015-productivity-initiatives-closer-look-costs/
21 October 2014
Coca Coal is expanding its current successful productivity program by targeting annualized savings of $3 billion per year by 2019. This productivity program will focus on four key areas:
• Restructuring the Company’s global supply chain, including manufacturing in North America;
• Implementing zero-based budgeting across the organization;
• Streamlining and simplifying its operating model; and
• Driving increased discipline and efficiency in direct marketing investments.
AWS re:Invent 2014
Coca-Cola Migrates to AWS to Achieve 40% Operational Savings
In 2013, Coca-Cola moved hundreds of applications from on-premises data centers to AWS to reduce costs and increase operational efficiencies. In this presentation from re:Invent 2014, Coca-Cola shares many of its cloud best practices, security considerations, helpful tools, and business processes, which helped the company achieve 40 percent operational savings
15 October 2013
During the three and nine months ended September 27, the company recorded charges of $97M and $312M, respectively, related to its productivity and reinvestment program.
The first component of this program is a global productivity initiative focused around four primary areas:
- global supply chain optimization;
- global marketing and innovation effectiveness;
- operating expense leverage and operational excellence; and
- data and information technology systems standardization.
The second component of its productivity and reinvestment program involves an integration initiative in North America related to acquisition of Coca-Cola Enterprises' former North America business.
The company has identified incremental synergies in North America, primarily in the area of its North American product supply operations, which will enable the company to better serve customers and consumers.
As a combined productivity and reinvestment program, the company anticipates generating annualized savings of $550M-$650M which will be phased in over time. Coke said it expects to begin fully realizing the annual benefits of these savings in 2015, the final year of the program.
http://finance.yahoo.com/news/coca-cola-sees-annualized-savings-114425655.html
Feb 2012
The company says productivity is a “core pillar” of its “2020 Vision”, which sets out its target to double revenue in the next eight years.
http://www.marketingweek.co.uk/coca-cola-to-reinvest-productivity-savings-into-brand-building-marketing/3033862.article
New PET Bottling Plant at Bidadi, India
Five to six people are operating the line and the plant now produces an average of 720,000 x 600 ml
bottles per day. The new line is performing fully as expected: bringing savings in the consumption of energy and water and producing light-weighted bottles.
The new Sidel's line is flexible. HCCBPL is currently bottling products in three different formats: 600ml ('on-the-go' size) at an output of 36,000 bottles per hour, 1250ml at 22,000 bph, and the larger 2000ml at 18,000 bph.
http://www.sidel.com/about-sidel/global-references/coca-cola,-india
http://www.sidel.com/media/2246866/sidel_hindustan_coca_cola_india_flyer_en.pdf
2010
Coca-Cola Supply Chain Management Company (SCMC) is the largest non-carbonated beverages (NCB) manufacturer worldwide. Of their 12 sites across China, 10 of them are implementing TRACC to power their world class operations (WCO) efforts. At the end of 2010, Coca-Cola SCMC built a new plant in Foshan, Guangdong.
Coca-Cola SCMC had made an organisation-wide decision in 2005 to implement WCO across all of its sites. These plants are progressing well on their journey to world class, with best practices being commonplace. It enables them to send their new employees on internships at well-developed sites, so these new employees learn best practices from the very beginning.
For new Foshan plant, their main goal was to achieve 90% mechanical efficiency on the pilot line within 90 days of the start-up.
2007
MBA Dissertation on Coca Cola Strategy
Dinesh Purvankara
Simon Fraser University
2006 SEC Filing
https://www.sec.gov/Archives/edgar/data/21344/000104746906002588/a2167326z10-k.htm
(C) Narayana Rao K.V.S.S. 2019
Brian Hong
Group Director, Productivity Center of Excellence at The Coca-Cola Company
Greater Atlanta Area
About
Comprehensive Supply Chain, Operational Excellence, and Quality Leader with a history of developing and executing business strategies that enhance network capabilities while reducing total delivered costs. Specializing in addressing and resolving key business challenges such as; variability reduction, productivity improvements, strategic cost reductions, change management, growth through innovation, customer integration, and supplier collaboration.
10+ years of proven high level executive experience achieving and surpassing all expected corporate goals and delivering this in a deadline, cost driven environment. Group Director of Operational and Productivity Center of Excellence, Master's Degree in Business Administration and expertise as Lean Six Sigma Master Black Belt and Business Leader. Additional Core Competencies include:
Cost Reduction
Operations Management
Change Management
Business Roadmaps for Improvement
Cost & Benefit Analysis
Continuous Process Improvement
Employment History
The Coca-Cola Company
Title Group Director, Productivity Center of Excellence
Employed Mar 2016 – Present
Location Greater Atlanta Area
Accountable for developing and executing high-level strategies to deliver sustainable End to End Productivity, Technical Capability, Maintenance Strategy, PMO Governance, and Operational Excellence for The Coca Cola Company North America Supply Chain (CCNA).
Developed organizational Productivity Framework and Governance to deliver over $180 MM in sustainable productivity over the last three year horizon.
Strategic oversight for developing overarching Technical Capability and Operational Excellence Programs to enhance organizational capabilities.
Developed PMO governance model to support CCNA Supply Chain
Led CCNA Supply Chain engagement in the Business Transformation Office (BTO) to drive sustainable growth and cost management for Coca Cola North America.
Led the strategic turnaround of two network critical manufacturing locations in customer service and cost.
Led Maintenance Strategy implementation in Autonomous and Professional Maintenance
Group Director, Operational Excellence Center of Excellence
Dates Employed Apr 2013 – Mar 2016
Location Greater Atlanta Area
Responsible for delivering sustainable network productivity to support growth and cost reductions. Provide technical and leadership guidance within Coca Cola Refreshments and The Coca Cola Company to drive sustainable capability development in cost, quality and service.
Developed comprehensive Six Sigma DMAIC training and implementation strategy for CCR, The Coca-Cola Company and network. $20 million in value creation and/or cost reductions for The Coca-Cola Company.
Completed a strategic facility turnaround to support customer service improvements by 80%
Implemented Operational Excellence processes with a strategic customer resulting in increased Quality and Service leading to a 15 year contractual extension
Led initiatives valued at $6 million in productivity and/or increased sales while reducing consumer complaints by 80%
see less
Director, Customer Solutions Walmart/Sam's
Dates Employed 2010 – Apr 2013
Location Portland, Oregon Area
Supply chain liaison between the sales organization of Coca Cola Refreshments (CCR) and Walmart/Sam’s. Increasing customer satisfaction and capabilities to reduce the total cost of ownership.
• Facilitated the development of an integrated collaborative customer process with Walmart. Developed an integrated pipeline of initiatives to support a 3 year strategic plan. Recognized as being the only DSD/Merchandising customer for the collaborative process with Walmart.
• Led the strategic prioritization and execution of the collaborative process to optimize the value chain between Walmart and The Coca Cola Company.
• Led process simulation between Walmart and The Coca Cola Company to investigate a $40 million opportunities
• Led CSI initiative to develop cost savings opportunities. Identified over $18 million in cost reductions for The Coca Cola Company
• Led the integrated approach on ASN optimization for Walmart. Integrated external suppliers such as MillerCoors, Dean Foods, Pepsico, Nabisco, Kraft, Kellogg, and Anheuser Busch.
Regional Operational Excellence Director - West
Dates Employed Feb 2007 – 2010
Location Vancouver, WA
Co-developed, directed and administered the company’s continuous improvement approach across multiple business units, twenty manufacturing plants and multiple support functions
Facilitated the development and implementation of CCNA’s manufacturing productivity programs that generated $32.5MM in productivity
Delivered 17% improvement in productivity without capital expenditures for CCNA’s thermal platform
Worked collaboratively with Coca-Cola North America and a strategic supplier to identify root causes of a quality defect. Developed and executed analytics that enabled Supplier Quality to negotiate the recovery of $745K
Instituted an integrated approach to optimize the production to delivery process, to increase customer satisfaction. Integrated approach utilized a new warehouse layout and production scheduling focused on product flow. Became “best in class performance” for warehouse deliveries as recognized by the Coca Cola Company
Title QA Mananger II
Dates Employed2004 – Feb 2007
LocationPortland, Oregon Area
Led the Quality Function at the Portland manufacturing plant. Managed and developed hourly and salaried personnel to enhance quality systems and processes, which included the integration of Six Sigma methodoligies.
• Developed and executed a competency model to enhance employee engagement and development which is now being utilized by The Coca-Cola Company – Operational Quality.
• Critical team member in identifying and executing on $1.7 million savings opportunity through transportation optimization.
RR Donnelley
Total Duration 5 yrs
Title Senior Supplier Integration Engineer
Dates Employed 2002 – 2004
Guided the development and execution of an integrated collaborative Supplier Management program that encompassed all strategic outsourced suppliers to develop and execute strategic initiatives focused on driving down the total cost of ownership while enhancing revenue growth.
New product solution collaborating with outsourced suppliers on $20 million customer. Evaluated, developed and mitigated supplier risks in conformance with business objectives and strategies.
Developed and implemented a Standardized Supplier Scorecard to identify joint opportunities for continuous improvement and reduced cost.
Critical member in executing supplier development at multiple outsourced suppliers to support the strategic initiative of a $300 MM customer.
Title Quality Assurance Manager
Dates Employed 1999 – 2002
Employment Duration 3 yrs
Managed and developed a 24/7 organization encompassing 6 Process Engineers that were Certified Six Sigma Black Belt, 4 salaried process technicians, and quality inspectors. Led the Quality and Process Improvement functions within a manufacturing environment that generated over $95 million in annual sales.
Increased customer satisfaction by 20% by aligning customer commitments/expectations with manufacturing performance and capabilities.
Led cross functional teams to increase raw material utilization - annualized return of $1.4 million.
Trained and mentored Six Sigma Greenbelts - Annualized savings of $150,000
Implemented 24/7 inspection process that resulted in $250K in cost avoidance in S&W
https://www.linkedin.com/in/brian-hong-37753ab/
Gustavo Silva - Villalobos
Plant Operations Manager at The Coca-Cola Company
San Francisco Bay Area
https://www.linkedin.com/in/gustavosilva/
Interesting search results for productivity director coca cola
Coca Cola quarter 1 2019 results
https://www.sec.gov/Archives/edgar/data/21344/000002134419000022/a2019q1earningsreleaseex-9.htm
https://www.smartinsights.com/online-brand-strategy/brand-development/coca-colas-creative-genius-what-can-we-learn/
One Company, One Process: An Insight into Coca Cola’s Opex Program - Coca Cola Case Study
While "pockets" of Lean-Six Sigma have existed in their system for decades, a formal, modern, global Operational Excellence journey began nearly 10 years ago. They have experienced several iterations, moving from a manufacturing based Six-Sigma type program to a broader scoped Lean-Six Sigma type program. Ilir Morina, Global Director of Operational Excellence, The Coca Cola Company, explains the company’s Operational Excellence program.
https://www.processexcellencenetwork.com/business-transformation/interviews/one-company-one-process-an-insight-into-coca-cola
Boosting productivity at Coca-Cola’s Wakefield factory
04-Jul-2016
Boosting productivity by improving employee engagement is a four-step process at Coca-Cola European Partners’ (CCEP) Wakefield factory.
In video interview, Trevor Newman, supply chain operations director at CCEP's Wakefield site, told FoodManufacture.co.uk how he used these four key strategies to lift productivity.
https://www.beveragedaily.com/Article/2016/07/05/Coca-Cola-factory-boss-talks-staff-engagement
Performance Management - the Coca cola perspective by Carmistha Mitra
https://www.slideshare.net/hrtalksblog/performance-management-the-coca-cola-perspective-by-carmistha-mitra
https://www.cio.com/article/3057192/what-is-agile-marketing-and-should-you-be-sprinting-to-it.html
Coca Cola included
2005
Production line turnaround for Coca-Cola bottler in China
production line
Executive Summary
The Coca-Cola Supply Chain Management Company (SCMC) manufactures and supplies non-carbonated drinks for Chinese markets. The Dongguan plant — the focus of this case study — was experiencing challenges on its Krones hot fill line. Read this case study to find out how they turned the line around, achieving improvements in machine efficiency, unplanned downtime, production volume and yield.
Mechanical efficiency (ME) increased by 10%, 16% and 20% (pilot line) on the three production lines in the first year. ME improvements have since been sustained year-on-year. Improvements over the starting baseline are 13%, 17.5%, 37% (pilot line) and 49% (new production line). Unplanned downtime dropped by more than 50% since the project’s inception, while the order fulfilment rate increased from the low 90s to 98%.
Material yields were consistently improving in leaps and bounds reducing the yield losses by between 21% and 79% in the first few years.
Water usage per litre of beverage improved by 49%. Electricity consumption per litre of beverage declined by 35%, while fuel consumption per litre dropped by 41%.
At the time of publishing, the company operated through a supply location network of 11 Coca-Cola bottling plants in China, of which Dongguan plant in Guangdong Province, some three hours’ drive from Hong Kong, was the largest site. It operated four beverage lines with both hot and aseptic filling technology. Dongguan was the first site to implement TRACC best practices at the beginning of 2005.
https://traccsolution.com/resources/production-line/
2005 to 2010 Coca Cola India Story
In 2005, we did a complete assessment of our business, capability and portfolio and set an ambitious vision for the company in India [called “2020 Vision”]. There were changes in the management team. We focused on what we call the “manifesto for growth” and we aligned our system to six P’s — people, portfolio, partners, profit, planet and productivity. This renewed focus helped Coca-Cola India grow its business in a sustainable manner.
https://knowledge.wharton.upenn.edu/article/are-happy-days-here-again-for-coca-cola-india/
2017
Optimisation through automated warehousing at Coca Cola Europe
Posted on 21 Jun 2017
An exclusive look at the creation of a new automated storage and retrieval system at Coca-Cola European Partners Sidcup factory.
A brand new £32m automated storage and retrieval system (ASRS) warehouse.
The 25,000 pallet storage spaces more than trebles the 8,000 previously available onsite. The ASRS building will deliver. It also offers the opportunity to greatly enhance Sidcup’s productivity, efficiency, sustainability and staff skill level.
It’s anticipated that a phased introduction will begin in middle of 2018, with the ASRS fully online by the end of the year.
Digital factory
The significant investment in Sidcup’s automated storage and retrieval system (ASRS) warehouse has a projected payback period of eight years, relatively swift for such a sizeable infrastructure project.
The advanced system is also expected to eliminate over 10,500 vehicle journeys a year, equating to more than 30,000 tonnes of CO2 being saved. - Trevor Stacey, supply chain operations director at CCEP Sidcup.
Some warehouse staff transition from being predominantly forklift truck drivers to become technicians – more technology-focused roles which requires a higher skill level and even greater personal and team responsibility.
This isn’t a new direction for the business. It’s production line workers have already made a similar transition, with filling line staff conducting less manual-handling tasks and assuming more operator or technician-focused roles.
https://www.themanufacturer.com/articles/supply-chain-optimisation-through-automated-warehousing/
2019
Coca-Cola Supply Chain Firm Expands Blockchain Effort to 70 Partners
Nov 5, 2019
Coke One North America (CONA) says its pilot project with software provider SAP is now set to be expanded from two to 70 of the manufacturers that deliver the 160,000 bottles Coca-Cola shops daily,
The blockchain project promises to improve distribution for the participants, as all can access a permissioned blockchain containing each others’ orders, capabilities and requirements. For example, if a bottle maker is short of stock for a looming order, the network quickly provides options for filling shortfall. CONA hopes to reduce order reconciliation days from weeks to just days.
The pilot program’s initial positive results are assuring. CONA has its eyes set on working with commerce giants Walmart and Target as a result, though scaling to work with those firms’ supply chains would be a difficult undertaking, he noted.
With the blockchain, a document flow across the supply chain is created making reconciliation easy and rapid.
https://www.coindesk.com/coca-cola-supply-chain-firm-to-expand-blockchain-effort-to-70-partners
2015
COCA-COLA GERMANY TRANSFORMS VIA EFFICIENCY IMPROVEMENT JOURNEY.
CHALLENGE
The rising pressure to produce products cheaper and shorten lead-times in order to stay competitive, persuaded Coca-Cola Erfrischungsgetränke AG (CCEP Germany) to seek expert help in becoming more efficient.
Coca-Cola desired a single system to collect and analyse data across a line, a factory, and a region to compare and share the same metrics, and to implement the same meeting routines to drive KPIs and actions that address the True Causal Loss of individual production lines.
After facilitating a pilot project in Liederbach in summer 2015, Coca-Cola Germany decided to install LineView™ across 9 of their most significant production sites, totalling more than 24 lines over a period of roughly 2 years. Each line went through the following 4 stages to install and utilise the LineView™ system, and consequently go through an intensive coaching process from one of our OptimumFX Consultants in order to improve efficiencies:
https://lineview.orangesprocket.com/en/customer-stories/case-studies/coca-cola-germany/
WCO journey over the past 10 years - 1 000 manufacturing and supply chain profit improvement projects (PIPs).
“Our WCO journey over the past 10 years has been nothing short of remarkable: We’ve seen savings of just over RMB* 100 million (*Chinese Yuan), and we’ve completed close to 1 000 manufacturing and supply chain profit improvement projects (PIPs). Our Kanban boards have evolved from filling up walls with production statistics to upscale, electronic boards with practical action plans.”
Huang Zhimin, Swire’s Continuous Improvement Manager, Central Service Supply Chain, looks at some digital technologies that supplement CI and structured problem-solving throughout Swire’s end-to-end value chain.
(wco): WORLD CLASS OPERATIONS
https://traccsolution.com/resources/digital-technologies/
Swire - Denver plant, 4500 pieces of Keystone Direct Drive LED T8 Tubes - $65,000 in annual energy savings
At Denver plant, 4500 pieces of Keystone Direct Drive LED T8 Tubes, specifically KT-LED15T8-48GC-850-D were installed in place of fluorescent tubes. Swire is projecting $65,000 in annual energy savings, and an additional $33,000 in annual labor savings by upgrading to Keystone DirectDrive LED tubes.
The improved quality of light and the impressive energy savings at the Denver location got the attention of Swire’s corporate headquarters in Draper, Utah. Representatives from the main office visited the Denver facility, and will be making a report to their other bottling plants across the west in an effort to help them achieve similar results.
https://keystonetech.com/casestudy/swire-coca-cola-bottling-plant-boosts-productivity-with-keystone-led-lighting/
https://www.swirecc.com/
Software minimizes production downtime at Coca-Cola plant
In 2004, U.K.-based control and automation specialist M.A.C Solutions (UK) Ltd. was asked by CCE Wakefield to recommend how the plant could improve its existing change management and version control process for industrial programmable control devices.
The CCE Wakefield plant uses a range of programmable control devices, including 93 Siemens S5 PLCs, 11 Siemens S7 PLCs, 20 Allen-Bradley (Rockwell Automation) ControlLogix PLCs, 31 Allen-Bradley SLC500 PLCs, and 26 universal Devices (SCADA InTouch and others).
These PLCs are located on several networks across the site, including a legacy Siemens S5 H1 network, with some PLCs and devices being standalone without any connection to a network.
MDT AutoSave (from United States-based software supplier MDT Software) was selected for implementation. AutoSave is an enterprise source management solution that provides a full suite of tools to protect, save, restore, discover and track changes for industrial programmable devices and documents. The system unifies plant automation software under one common user interface, resulting in a secure, well-documented, controlled environment that significantly reduces the time and effort needed to manage a manual backup system.
Due to a problem with a Siemens S5 PLC controlling water treatment plant, where all the code was lost in the PLC, therefore stopping all water supplies used in the production process. The archived copy of the water treatment plant PLC code from AutoSave was retrived and checked by Siemens field PGs and the code was reloaded locally at the PLC. It was done in only five minutes downtime to Line Four. On another occasion, the main preparation PLC fell over. This time, the code was reloaded over the network from AutoSave – incurring zero downtime.
https://www.reliableplant.com/Read/13811/software-minimizes-production-downtime-at-coca-cola-plant
With over 900 bottling operations globally, how does Coca-Cola keep its water consumption in check? Jeff Seabright, vice president of the Environment for Coca-Cola, talks about how they're using new water filtering and recovery technologies to bring the company's water use down.
This post was originally published on Smartplanet.com
https://www.zdnet.com/article/how-coca-cola-is-reducing-its-water-consumption-1/
Transcript of conference call on Coca-Cola Q1 2007 earnings
Below is the full transcript of the the Coca-Cola Company first quarter 2007 earnings conference call that was held on April 17, 2007 at 8:00 am ET. TCCC executives involved in the conference call included: Ann Taylor - VP, Director, IR Neville Isdell - Chairman, CEO Gary Fayard - EVP, CFO Muhtar Kent - President, COO.
Coca-Cola Q1 2007 Earnings Call Transcript
April 17, 2007 at 8:00 am ET
Executives
Ann Taylor - VP, Director, IR Neville Isdell - Chairman, CEO Gary Fayard - EVP, CFO Muhtar Kent - President, COO
Analysts
John Faucher – JP Morgan Bill Pecoriello - Morgan Stanley Robert van Brugge - Sanford Bernstein Bryan Spillane - Banc of America Securities Mark Swartzberg - Stifel Nicolaus Judy Hong - Goldman Sachs Christine Farkas - Merrill Lynch Bonnie Herzog - Citigroup Kaumil Gajrawala - UBS Lauren Torres - HSBC Matthew Riley - Morningstar Ann Gurkin - Davenport
Presentation
Operator
At this time I would like to welcome everyone to the Coca-Cola Company's first quarter 2007 earnings results conference call. I would now like to introduce Ann Taylor, Vice President and Director of Investor Relations.
Ann Taylor
Good morning, and thank you for being with us today. I am pleased to be joined by Neville Isdell, our Chairman and Chief Executive Officer; Muhtar Kent, our Chief Operating Officer; and Gary Fayard, our Chief Financial Officer. Following prepared remarks this morning we will turn the call over for your questions.
Before we get started, I'd like to remind you that this conference call may contain forward-looking statements, including statements concerning long-term earnings objectives and should be considered in conjunction with cautionary statements contained in our earnings release and in the company's most recent SEC report.
In addition, I would also like to call your attention to the fact that we have posted schedules on our company website at thecocacolacompany.com in the investor section which reconcile our results as reported under generally accepted accounting principles, to certain non-GAAP measures which may be referred to by our senior executives in our discussion this morning, and from time to time in discussing our financial performance. Please look on our website for this information.
Now let me turn the call over to Neville.
Neville Isdell
Thank you, Ann and good morning, everyone. I am going to start this morning with a few brief observations about the quarterly results, and Muhtar will then provide details on operational achievements, and Gary will follow with an overview of the financials and he’s going to give you some additional perspective on the Philippines as well.
What you see today is a very strong quarter, delivered by a company and a system that has found its footing, regained its focus and come a long way in retooling its operations. While there is much more that we can and will do, the Coca-Cola Company is today proving that we can meet the commitments that we make.
We said that we would drive growth and profitable brands in packs and channels, and today we are reporting revenue growth of 17% on worldwide unit case volume growth of 6%, our highest quarterly volume growth rate since 2002, while cycling 5% volume growth for the first quarter of last year. We also said that we would maximize our local brand footprint to leverage our sweet spot in the industry. Today we are reporting international growth of 9%, which is our highest quarterly international growth rate since 2000.
We also said that we would grow our core sparkling beverages whilst expanding the footprint of our still portfolio. Today, we are reporting an increase of 5% in sparkling beverages, led by 4% growth in trademark Coca-Cola. That growth includes the rollout of Coca-Cola Zero to 20 additional markets including Mexico, Brazil, Argentina, and France amongst others.
Still beverages increased 9%. The solid growth resulted in share being gained or maintained in key nonalcoholic ready to drink categories, including sparkling, bottled water, juice and juice drinks, sports drinks, and ready to drink tea. So, for the quarter, we've delivered on our commitments.
Now I'd like to give you a new commitment. We will win again in our home market. It will not come quickly and we continue to expect 2007 to be weak, but we do expect to begin seeing sequential improvement in the second half of the year as we execute against our key goals.
Muhtar will address this topic in more detail in a moment, but I want to underscore my absolute focus on North America. We delivered strong financial results this quarter, even with this decline in North America. Strong top line growth resulted in ongoing currency neutral operating income growth of 11%, which is ahead of our long-term growth targets.
The geographic sources of profit growth were, in fact, more balanced as well. Additionally, we delivered solid operating expense leverage, even as we continued to invest to support our brands and build capabilities within our own company-owned bottling operations. Certainly a strong performance to start the year.
So now, let me turn the call over to our Chief Operating Officer, Muhtar Kent, who will provide you with more details.
Muhtar Kent
It has been just over 120 days since I assumed my new role. What I would like to cover this morning are my key priorities for 2007. These priorities are designed around a simple strategy: continue to innovate, take smart risks, and work closely with our bottlers to drive growth in sparkling and still beverages.
The first priority is to sustain and drive progress in our international business. Second, address the issues in North America, where I've been spending a great deal of time these past four months. Third, increase productivity across the organization and drive leverage on the P&L. Fourth and last, compress and accelerate the commercialization rate of innovation and best practice sharing.
Let's start with the first one, sustaining and driving progress in our international business. Our quarterly results clearly display the strength of our global portfolio and our ability to execute across the entire system, with most of our key markets delivering solid performance. We will continue to build on these results by growing our core sparkling beverages, expanding our still offerings, and executing with precision.
Unit case volume growth was again led by our key emerging markets including China, Russia, Eastern Europe, Southern Eurasia, South Africa and across Latin America. Also, some of our emerging market weak spots from last year continued to rebound as India and Nigeria both delivered solid results for the quarter.
In addition -- and equally encouraging -- is the strength of some of our more developed markets. One of our most consistent performers, Mexico, increased unit case volume 2%, cycling 8% in the prior year on the strength of trademark Coca-Cola driving total sparkling beverage share gain. This is the third consecutive quarter of improvement in Japan, with unit case volume up 3%. Although cycling a 2% decline from prior quarter, the performance across brand portfolios is particularly encouraging and demonstrates the changes we put in place last year. The strategy we are now pursuing there is really paying off. Solid growth in trademarks Coca-Cola, Fanta, Sprite, Enviga Green Tea and Aquarius drove the results, with each gaining share.
As expected, our business in the Philippines continued to face challenges and experienced declines in the quarter. However, we are taking a number of critical actions to address these issues. At the end of February, we completed the acquisition of the bottling operations in the Philippines previously held by San Miguel Corporation. The bottler will now have full access to the expertise of our management, as well as be fully integrated with our company's overall objectives. With a robust business plan being implemented and an experienced management team in place under Irial Finan’s leadership, the leading share position and strong brand metrics, we believe we are well positioned to return the Philippines market to its former standing as one of our top performers. During 2007, as our program gains traction, we expect to see sequential improvement in unit case volume and return to growth in 2008. Gary will provide more details on the financial impact on 2007 in a moment.
Coke Zero and our new grip bottle, properly directed marketing initiatives such as the integrated activation of the Coke Side of Life at Coca-Cola.com, and efforts to win at the point of sale are prime examples of how we will use innovation and our close partnership with our bottlers to develop marketing campaigns that drive growth.
Success requires a robust and rational portfolio. We continue to evaluate all of our options and when necessary, we will selectively make acquisitions for additional speed, scale, as well as capability. A large competitive advantage for us, of course, is our relationship with our bottlers and the strength of our distribution channels. We've seen solid progress in our company-owned bottling operations, which in terms of volume is now the second-largest bottler in the world. The back to basics approach, an improved in-market execution can clearly be seen in our results in Germany as well as in India, amongst many other places.
Now let me focus on my second priority, which is to reestablish consistent growth in our home market, North America.
In the first quarter we demonstrated our commitment to driving growth in trademark Coca-Cola as we activated solid campaigns for Coca-Cola Classic, Diet Coke, and Coke Zero. Integrated campaigns for all three brands included events television advertising linked to retail activation.
The next round of innovation you will see in the second quarter is the introduction of Diet Coke Plus, our first venture under the Coca-Cola trademark for a sparkling, calorie-free beverage with vitamins and minerals.
Overall, we remain totally committed to winning in North America and have an active plan to address the business issues. We are focused on building our system execution capability by developing working relationships with our bottlers based on cooperation and collaboration.
Now let me turn to productivity. A very important component to our success in North America as well as around the globe is ensuring we increase productivity. We are delayering and simplifying our structure so we can improve our speed of execution and improve leverage. This will enable us to better align the architecture of the organization to the three pillars that are the core drivers of our top line growth: consumer marketing, commercial leadership and franchise leadership. This is a targeted effort to enable the organization to be more effective, efficient and to remove bureaucracy.
All of our efforts center around avoiding waste and removing distractions that cause us to lose focus on the three pillars mentioned above. These initiatives will result in some cost savings, but importantly will improve clarity on decision-making which will allow for more time to be focused on revenue-generating activities.
Other efforts are longer term and involve driving system efficiencies. There are projects around the global supply chain and common IT platforms. The bottlers have already been doing an excellent job in many respects and it can be seen in the improvement of their returns. We've already experienced success in global procurement of key commodity inputs as well as in Japan with the supply chain management company, where we are using those lessons to build similar models in China and Mexico, particularly as we gain scale in the still beverages. But there is still significant room for improvement across our entire system. As we reintegrate the organization and realize the productivity gains, we'll selectively reinvest behind our three pillars to drive further top line growth.
My fourth priority is compressing the innovation pipeline. This really gets at our speed to market. Our organization has never lacked for innovative ideas. What we've lacked is a discipline to commercialize expeditiously. We are focused on doing fewer things and doing them better. A clear example has been the global success of Coke Zero, which will reach 40 markets representing 75% of total trademark Coca-Cola volume by the end of 2007.
But we are taking a broader view of innovation. It's not just simply product formulations, it also includes such things as the new Coca-Cola grip bottle, which will be available to over 50% of the world's population by the end of 2007; the Coke Side of Life campaign, which will be in over 200 markets; we're using M&A to augment scale and capabilities, for example with Fuse here in North America. It's also brand, price, packaging and channel optimization that we are jointly developing with our bottling partners. And, it is the way we're working with our bottlers to agree on long-term plans for profitable system growth and equitable value share.
While I've identified four distinct priorities,
In summary, both Neville and I are pleased with the solid start to 2007, but we are not satisfied.
Now, let me turn the call over to Gary Fayard.
Gary Fayard
Thanks, Muhtar and good morning, everyone. As Neville and Muhtar indicated, we are starting the year with a strong financial performance.
SG&A increased 13% in the quarter, so let me take a moment and walk you through that increase. About 8 points of that 13 point increase were due to the bottler acquisitions, and that is from increased selling and service expenses as we invested for growth in bottling operations, and due to currency. The remaining 5 points we continued to invest solidly behind our brands, and control G&A expenses as we continue to focus on productivity and expense management.
As with the first quarter, we would again expect our consolidated bottling operations to be a positive contributor, as we continue to build world-class operations.
http://www.iuf.org/coca-cola/2007/04/cocacola_q1_2007_earnings_call.html
http://www.iuf.org/coca-cola/2007/04/
Suzhou - Smart Factory of Coca Cola
The ‘digital factory’ project introduced at the pilot plant in Suzhou not only realised impressive savings, but also walked away with the 2017 Coca-Cola China Operational Excellence Award.
Since 2005, Coca-Cola Supply Chain Management Company (SCMC) has engaged in a strategic partnership with Competitive Capabilities International (CCi) to build their world class operations (WCO) model through the TRACC Integrative Improvement System.
In Suzhou, a major city in southeast Jiangsu Province, SCMC operates one of its most successful non-carbonated bottling plants. Managed by one of its subsidiaries, Coca-Cola Bottlers Manufacturing Co. Ltd., SCMC selected this as the pilot plant. It was a plant with a high enough level of maturity in operational excellence. If operational maturity is not at a sufficiently high level, an organisation will struggle to gain the benefits of any new technology.
The aim of Phase 1 of the project, led by a cross-functional team consisting of members from SCMC’s technical team (operational excellence) and IT, plus members of the plant’s Quality function, was to:
Interconnect the production line equipment, peripheral auxiliary equipment and online quality inspection unit.
Computerise the report forms of key areas so that production, quality control (QC) and engineering personnel can capture real-time information on quality, line performance and equipment condition
Drive a timely response of focused improvement by improving short-term visual management to improve quality, output and reduce manufacturing cost
Develop a complete data flow (using the big data platform as basis) across workstations, production lines, departments, plants and group and connect it to the ERP system
when Phase 1 was officially implemented. The Suzhou plant came through with flying colours as plant personnel embraced the new digital approach with gusto.
Production forms no longer need to be completed manually. Whenever the QC data exceeds the upper or lower limit of normal value, or abnormalities are detected by statistical process control (SPC), an alarm is triggered and sent directly to QC personnel. When a machine-connected condition-based maintenance (CBM) detection probe finds an abnormal condition, a warning message will be generated and displayed in the system so that relevant engineers are instantly alerted to machine faults.
Critical data of production processes are now displayed centrally on a big screen on site, giving managers a sweeping view of relevant information. The key control points of the production process are also displayed centrally so that abnormal situations can be monitored in real time. With the SAP Plant Maintenance (PM) system, engineers used to send out work orders triggered by natural time and then collected them later to manually enter into the system to form a closed loop. Now, based on equipment state or its actual running time, CBM will automatically trigger work orders directly to a handheld terminal of relevant engineers. Work orders will be closed automatically once engineers fill in the required information.
The real-time display of system and CBM data makes it easier for personnel to understand the operational status of the key components of critical equipment. Engineers can draw up relevant maintenance plans according to actual conditions of the equipment. Therefore, over-maintenance and unplanned downtime are being reduced, and production equipment utilisation is being enhanced. Also, the up-to-date information of the running state of the equipment is helping to reduce spare part inventory. This makes maintenance of all equipment more timely, efficient and productive.
With the implementation of the digital factory project at the Suzhou plant, manual report forms have dropped by 20% while machine efficiency (ME) of the production line has improved by 2% – culminating in annual savings of close to RMB1 million. As the total investment in this project was less than RMB300 000, the ROI was significant. To top it all, the project was awarded first place in the 2017 Coca-Cola China Operational Excellence Award.
Done correctly, digital factory building can reduce workload substantially, increase line efficiency and bring about impressive overall savings. However, a digital factory is far from an unmanned factory. It requires employees to be more capable and skilled and, as such, will remain people-orientated.
The building of best management practices is a prerequisite for digital factories, because only optimised processes can ensure correct data.
Competitive capability will come from the adaptation and creative use of automation or technology. The fundamental people engagement practices — teamwork, leadership, goal alignment, and so on — are even more important as technology becomes more sophisticated. These practices, combined with innovation in management principles and processes, can create long-lasting advantage and produce dramatic shifts in competitive position.
COMPANY BACKGROUND
Founded in 2002, Coca-Cola Supply Chain Management Company (SCMC) is the only non-carbonated beverage manufacturer in the Chinese market. The company is a Sino-foreign joint venture owned by Coca-Cola South Asia Holdings, Mount Limited; COFCO Beverages Limited; and Coca-Cola China Industries (Beverages) Limited. When SCMC was established, the company had seven hot filling lines and one can line across its one plant and a few contract manufacturers. SCMC mainly produced hot filling beverage products with an annual output of less than 300 000 tons. Today, the company has 32 world class aseptic lines, two hot filling lines and one can line across a total of seven of its own plants, and seven co-owned plants with Coca-Cola bottlers and three contract manufacturers. Its annual output exceeds three million tons.
https://traccsolution.com/resources/smart-factory/
Transcript of conference call on Coca-Cola Q1 2007 earnings
Below is the full transcript of the the Coca-Cola Company first quarter 2007 earnings conference call that was held on April 17, 2007 at 8:00 am ET. TCCC executives involved in the conference call included: Ann Taylor - VP, Director, IR Neville Isdell - Chairman, CEO Gary Fayard - EVP, CFO Muhtar Kent - President, COO.
Coca-Cola Q1 2007 Earnings Call Transcript
April 17, 2007 at 8:00 am ET
Executives
Ann Taylor - VP, Director, IR Neville Isdell - Chairman, CEO Gary Fayard - EVP, CFO Muhtar Kent - President, COO
Analysts
John Faucher – JP Morgan Bill Pecoriello - Morgan Stanley Robert van Brugge - Sanford Bernstein Bryan Spillane - Banc of America Securities Mark Swartzberg - Stifel Nicolaus Judy Hong - Goldman Sachs Christine Farkas - Merrill Lynch Bonnie Herzog - Citigroup Kaumil Gajrawala - UBS Lauren Torres - HSBC Matthew Riley - Morningstar Ann Gurkin - Davenport
Presentation
Operator
At this time I would like to welcome everyone to the Coca-Cola Company's first quarter 2007 earnings results conference call. I would now like to introduce Ann Taylor, Vice President and Director of Investor Relations.
Ann Taylor
Good morning, and thank you for being with us today. I am pleased to be joined by Neville Isdell, our Chairman and Chief Executive Officer; Muhtar Kent, our Chief Operating Officer; and Gary Fayard, our Chief Financial Officer. Following prepared remarks this morning we will turn the call over for your questions.
Before we get started, I'd like to remind you that this conference call may contain forward-looking statements, including statements concerning long-term earnings objectives and should be considered in conjunction with cautionary statements contained in our earnings release and in the company's most recent SEC report.
In addition, I would also like to call your attention to the fact that we have posted schedules on our company website at thecocacolacompany.com in the investor section which reconcile our results as reported under generally accepted accounting principles, to certain non-GAAP measures which may be referred to by our senior executives in our discussion this morning, and from time to time in discussing our financial performance. Please look on our website for this information.
Now let me turn the call over to Neville.
Neville Isdell
Thank you, Ann and good morning, everyone. I am going to start this morning with a few brief observations about the quarterly results, and Muhtar will then provide details on operational achievements, and Gary will follow with an overview of the financials and he’s going to give you some additional perspective on the Philippines as well.
What you see today is a very strong quarter, delivered by a company and a system that has found its footing, regained its focus and come a long way in retooling its operations. While there is much more that we can and will do, the Coca-Cola Company is today proving that we can meet the commitments that we make.
We said that we would drive growth and profitable brands in packs and channels, and today we are reporting revenue growth of 17% on worldwide unit case volume growth of 6%, our highest quarterly volume growth rate since 2002, while cycling 5% volume growth for the first quarter of last year. We also said that we would maximize our local brand footprint to leverage our sweet spot in the industry. Today we are reporting international growth of 9%, which is our highest quarterly international growth rate since 2000.
We also said that we would grow our core sparkling beverages whilst expanding the footprint of our still portfolio. Today, we are reporting an increase of 5% in sparkling beverages, led by 4% growth in trademark Coca-Cola. That growth includes the rollout of Coca-Cola Zero to 20 additional markets including Mexico, Brazil, Argentina, and France amongst others.
Still beverages increased 9%. The solid growth resulted in share being gained or maintained in key nonalcoholic ready to drink categories, including sparkling, bottled water, juice and juice drinks, sports drinks, and ready to drink tea. So, for the quarter, we've delivered on our commitments.
Now I'd like to give you a new commitment. We will win again in our home market. It will not come quickly and we continue to expect 2007 to be weak, but we do expect to begin seeing sequential improvement in the second half of the year as we execute against our key goals.
Muhtar will address this topic in more detail in a moment, but I want to underscore my absolute focus on North America. We delivered strong financial results this quarter, even with this decline in North America. Strong top line growth resulted in ongoing currency neutral operating income growth of 11%, which is ahead of our long-term growth targets.
The geographic sources of profit growth were, in fact, more balanced as well. Additionally, we delivered solid operating expense leverage, even as we continued to invest to support our brands and build capabilities within our own company-owned bottling operations. Certainly a strong performance to start the year.
So now, let me turn the call over to our Chief Operating Officer, Muhtar Kent, who will provide you with more details.
Muhtar Kent
It has been just over 120 days since I assumed my new role. What I would like to cover this morning are my key priorities for 2007. These priorities are designed around a simple strategy: continue to innovate, take smart risks, and work closely with our bottlers to drive growth in sparkling and still beverages.
The first priority is to sustain and drive progress in our international business. Second, address the issues in North America, where I've been spending a great deal of time these past four months. Third, increase productivity across the organization and drive leverage on the P&L. Fourth and last, compress and accelerate the commercialization rate of innovation and best practice sharing.
Let's start with the first one, sustaining and driving progress in our international business. Our quarterly results clearly display the strength of our global portfolio and our ability to execute across the entire system, with most of our key markets delivering solid performance. We will continue to build on these results by growing our core sparkling beverages, expanding our still offerings, and executing with precision.
Unit case volume growth was again led by our key emerging markets including China, Russia, Eastern Europe, Southern Eurasia, South Africa and across Latin America. Also, some of our emerging market weak spots from last year continued to rebound as India and Nigeria both delivered solid results for the quarter.
In addition -- and equally encouraging -- is the strength of some of our more developed markets. One of our most consistent performers, Mexico, increased unit case volume 2%, cycling 8% in the prior year on the strength of trademark Coca-Cola driving total sparkling beverage share gain. This is the third consecutive quarter of improvement in Japan, with unit case volume up 3%. Although cycling a 2% decline from prior quarter, the performance across brand portfolios is particularly encouraging and demonstrates the changes we put in place last year. The strategy we are now pursuing there is really paying off. Solid growth in trademarks Coca-Cola, Fanta, Sprite, Enviga Green Tea and Aquarius drove the results, with each gaining share.
As expected, our business in the Philippines continued to face challenges and experienced declines in the quarter. However, we are taking a number of critical actions to address these issues. At the end of February, we completed the acquisition of the bottling operations in the Philippines previously held by San Miguel Corporation. The bottler will now have full access to the expertise of our management, as well as be fully integrated with our company's overall objectives. With a robust business plan being implemented and an experienced management team in place under Irial Finan’s leadership, the leading share position and strong brand metrics, we believe we are well positioned to return the Philippines market to its former standing as one of our top performers. During 2007, as our program gains traction, we expect to see sequential improvement in unit case volume and return to growth in 2008. Gary will provide more details on the financial impact on 2007 in a moment.
Coke Zero and our new grip bottle, properly directed marketing initiatives such as the integrated activation of the Coke Side of Life at Coca-Cola.com, and efforts to win at the point of sale are prime examples of how we will use innovation and our close partnership with our bottlers to develop marketing campaigns that drive growth.
Success requires a robust and rational portfolio. We continue to evaluate all of our options and when necessary, we will selectively make acquisitions for additional speed, scale, as well as capability. A large competitive advantage for us, of course, is our relationship with our bottlers and the strength of our distribution channels. We've seen solid progress in our company-owned bottling operations, which in terms of volume is now the second-largest bottler in the world. The back to basics approach, an improved in-market execution can clearly be seen in our results in Germany as well as in India, amongst many other places.
Now let me focus on my second priority, which is to reestablish consistent growth in our home market, North America.
In the first quarter we demonstrated our commitment to driving growth in trademark Coca-Cola as we activated solid campaigns for Coca-Cola Classic, Diet Coke, and Coke Zero. Integrated campaigns for all three brands included events television advertising linked to retail activation.
The next round of innovation you will see in the second quarter is the introduction of Diet Coke Plus, our first venture under the Coca-Cola trademark for a sparkling, calorie-free beverage with vitamins and minerals.
Overall, we remain totally committed to winning in North America and have an active plan to address the business issues. We are focused on building our system execution capability by developing working relationships with our bottlers based on cooperation and collaboration.
Now let me turn to productivity. A very important component to our success in North America as well as around the globe is ensuring we increase productivity. We are delayering and simplifying our structure so we can improve our speed of execution and improve leverage. This will enable us to better align the architecture of the organization to the three pillars that are the core drivers of our top line growth: consumer marketing, commercial leadership and franchise leadership. This is a targeted effort to enable the organization to be more effective, efficient and to remove bureaucracy.
All of our efforts center around avoiding waste and removing distractions that cause us to lose focus on the three pillars mentioned above. These initiatives will result in some cost savings, but importantly will improve clarity on decision-making which will allow for more time to be focused on revenue-generating activities.
Other efforts are longer term and involve driving system efficiencies. There are projects around the global supply chain and common IT platforms. The bottlers have already been doing an excellent job in many respects and it can be seen in the improvement of their returns. We've already experienced success in global procurement of key commodity inputs as well as in Japan with the supply chain management company, where we are using those lessons to build similar models in China and Mexico, particularly as we gain scale in the still beverages. But there is still significant room for improvement across our entire system. As we reintegrate the organization and realize the productivity gains, we'll selectively reinvest behind our three pillars to drive further top line growth.
My fourth priority is compressing the innovation pipeline. This really gets at our speed to market. Our organization has never lacked for innovative ideas. What we've lacked is a discipline to commercialize expeditiously. We are focused on doing fewer things and doing them better. A clear example has been the global success of Coke Zero, which will reach 40 markets representing 75% of total trademark Coca-Cola volume by the end of 2007.
But we are taking a broader view of innovation. It's not just simply product formulations, it also includes such things as the new Coca-Cola grip bottle, which will be available to over 50% of the world's population by the end of 2007; the Coke Side of Life campaign, which will be in over 200 markets; we're using M&A to augment scale and capabilities, for example with Fuse here in North America. It's also brand, price, packaging and channel optimization that we are jointly developing with our bottling partners. And, it is the way we're working with our bottlers to agree on long-term plans for profitable system growth and equitable value share.
While I've identified four distinct priorities,
In summary, both Neville and I are pleased with the solid start to 2007, but we are not satisfied.
Now, let me turn the call over to Gary Fayard.
Gary Fayard
Thanks, Muhtar and good morning, everyone. As Neville and Muhtar indicated, we are starting the year with a strong financial performance.
SG&A increased 13% in the quarter, so let me take a moment and walk you through that increase. About 8 points of that 13 point increase were due to the bottler acquisitions, and that is from increased selling and service expenses as we invested for growth in bottling operations, and due to currency. The remaining 5 points we continued to invest solidly behind our brands, and control G&A expenses as we continue to focus on productivity and expense management.
As with the first quarter, we would again expect our consolidated bottling operations to be a positive contributor, as we continue to build world-class operations.
http://www.iuf.org/coca-cola/2007/04/cocacola_q1_2007_earnings_call.html
http://www.iuf.org/coca-cola/2007/04/
Suzhou - Smart Factory of Coca Cola
The ‘digital factory’ project introduced at the pilot plant in Suzhou not only realised impressive savings, but also walked away with the 2017 Coca-Cola China Operational Excellence Award.
Since 2005, Coca-Cola Supply Chain Management Company (SCMC) has engaged in a strategic partnership with Competitive Capabilities International (CCi) to build their world class operations (WCO) model through the TRACC Integrative Improvement System.
In Suzhou, a major city in southeast Jiangsu Province, SCMC operates one of its most successful non-carbonated bottling plants. Managed by one of its subsidiaries, Coca-Cola Bottlers Manufacturing Co. Ltd., SCMC selected this as the pilot plant. It was a plant with a high enough level of maturity in operational excellence. If operational maturity is not at a sufficiently high level, an organisation will struggle to gain the benefits of any new technology.
The aim of Phase 1 of the project, led by a cross-functional team consisting of members from SCMC’s technical team (operational excellence) and IT, plus members of the plant’s Quality function, was to:
Interconnect the production line equipment, peripheral auxiliary equipment and online quality inspection unit.
Computerise the report forms of key areas so that production, quality control (QC) and engineering personnel can capture real-time information on quality, line performance and equipment condition
Drive a timely response of focused improvement by improving short-term visual management to improve quality, output and reduce manufacturing cost
Develop a complete data flow (using the big data platform as basis) across workstations, production lines, departments, plants and group and connect it to the ERP system
when Phase 1 was officially implemented. The Suzhou plant came through with flying colours as plant personnel embraced the new digital approach with gusto.
Production forms no longer need to be completed manually. Whenever the QC data exceeds the upper or lower limit of normal value, or abnormalities are detected by statistical process control (SPC), an alarm is triggered and sent directly to QC personnel. When a machine-connected condition-based maintenance (CBM) detection probe finds an abnormal condition, a warning message will be generated and displayed in the system so that relevant engineers are instantly alerted to machine faults.
Critical data of production processes are now displayed centrally on a big screen on site, giving managers a sweeping view of relevant information. The key control points of the production process are also displayed centrally so that abnormal situations can be monitored in real time. With the SAP Plant Maintenance (PM) system, engineers used to send out work orders triggered by natural time and then collected them later to manually enter into the system to form a closed loop. Now, based on equipment state or its actual running time, CBM will automatically trigger work orders directly to a handheld terminal of relevant engineers. Work orders will be closed automatically once engineers fill in the required information.
The real-time display of system and CBM data makes it easier for personnel to understand the operational status of the key components of critical equipment. Engineers can draw up relevant maintenance plans according to actual conditions of the equipment. Therefore, over-maintenance and unplanned downtime are being reduced, and production equipment utilisation is being enhanced. Also, the up-to-date information of the running state of the equipment is helping to reduce spare part inventory. This makes maintenance of all equipment more timely, efficient and productive.
With the implementation of the digital factory project at the Suzhou plant, manual report forms have dropped by 20% while machine efficiency (ME) of the production line has improved by 2% – culminating in annual savings of close to RMB1 million. As the total investment in this project was less than RMB300 000, the ROI was significant. To top it all, the project was awarded first place in the 2017 Coca-Cola China Operational Excellence Award.
Done correctly, digital factory building can reduce workload substantially, increase line efficiency and bring about impressive overall savings. However, a digital factory is far from an unmanned factory. It requires employees to be more capable and skilled and, as such, will remain people-orientated.
The building of best management practices is a prerequisite for digital factories, because only optimised processes can ensure correct data.
Competitive capability will come from the adaptation and creative use of automation or technology. The fundamental people engagement practices — teamwork, leadership, goal alignment, and so on — are even more important as technology becomes more sophisticated. These practices, combined with innovation in management principles and processes, can create long-lasting advantage and produce dramatic shifts in competitive position.
COMPANY BACKGROUND
Founded in 2002, Coca-Cola Supply Chain Management Company (SCMC) is the only non-carbonated beverage manufacturer in the Chinese market. The company is a Sino-foreign joint venture owned by Coca-Cola South Asia Holdings, Mount Limited; COFCO Beverages Limited; and Coca-Cola China Industries (Beverages) Limited. When SCMC was established, the company had seven hot filling lines and one can line across its one plant and a few contract manufacturers. SCMC mainly produced hot filling beverage products with an annual output of less than 300 000 tons. Today, the company has 32 world class aseptic lines, two hot filling lines and one can line across a total of seven of its own plants, and seven co-owned plants with Coca-Cola bottlers and three contract manufacturers. Its annual output exceeds three million tons.
https://traccsolution.com/resources/smart-factory/
In supply chain metrics that matter - about coca cola revenue per employee
$434,000 revenue per employee in 2004 to $350,000 revenue per employee in 2013.
https://books.google.co.in/books?id=tJTVBQAAQBAJ&pg=PA56#v=onepage&q&f=false
Updated on 22.4.2023, 13.5.2022, 11.3.2022.
10 August 2021, 15 January 2020, 3 January 2020, 15 December 2019, 15 October 2019,
