Hệ thống quản lí chất lượng Cocacola

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HIGHER DIPLOMA IN BUSINESS MANAGEMENT _

HDBM 13.1 QUALITY MANAGEMENT

(HDBM 2423)

_ GROUP ASSIGNMENT

Introduction……… ……… Error! Bookmark not defined Methodology………Error! Bookmark not defined Introduction to the company………Error! Bookmark not defined What Is a Quality Management System……… Error! Bookmark not defined Kaizen Theory……….…… Error! Bookmark not defined 5S Theory………… ……… Error! Bookmark not defined The Coca Cola Quality System……….Error! Bookmark not defined The Coca-Cola Quality Statement… ….Error! Bookmark not defined Explanation to TCCQS……….Error! Bookmark not defined

CONTENT

ACKNOLEDGEMENT

The success and final outcome of this project required a lot of guidance and assistance from many people and we are extremely fortunate to have got this all along the completion of our project work Whatever we have done is only due to such guidance and assistance and we would not forget to thank them

We respect and thank Mrs Pavithra Wickramasuriya, Quality Management consultant at NIBM for giving us an opportunity to do the project work in Marketing Management subject area and her unlisted encouragement and more over for her timely support, suggestions and guidance during this project work

We are extremely grateful to her providing such a nice support and guidance

Also, we would like to take this opportunity to thank to the Division of Management Development of National Institute of Business Management for offering this module, Marketing Management It gave us an opportunity to participate in industry visit and learn about the marketing process of selected company In addition, we would also like to thank to Mr Hemantha Balasuriya at Human Resource department and staff of Coca-Cola Beverages Sri Lanka Ltd (CCBSL) which provide us valuable information as the guidance of our project

We are thankful to and fortunate enough to get constant encouragement, support and guidance from all teaching staffs of National Institute of Business Management which helped us in successfully completing our project work Also

we would like to extend our sincere regards to all the non-teaching staff of NIBM for their timely support

Our thanks and appreciations also go to our colleague in developing the project and people who have willingly helped us out with their abilities Finally, we are forever indebted to our parents for their understanding, endless patience and encouragement when it was most required

Introduction

As the global economy slowly turns itself around and begins its long-term recovery driven by rapid growth in Asia, greater stability in the United States and the Middle East, tempered somewhat by Europe’s continuing economy troubles Sri Lanka today stands on the verge of success and prosperity

With the permanent peace to the country in May 2009, the Sri Lankan Government has accelerated economic progress through a series of measures such as control of inflation, Reduction of interest rates, encouragement of tourism sector……etc

As mentioned above, with this globalized world, organizations should have to maintain their businesses in a marketing oriented way It doesn’t matter whether the organization is large scale or small but almost all the organizations have to achieve their best not because they have to but to survive in the market In order to survive in the market they have to provide quality for customers which is better than the competing organizations So therefore every organization need to have a quality oriented businesses for their survival

During the module “Quality Management” we have been asked to fulfill a report and

a presentation as the semester assignment

We have chosen “Coca-Cola” which is the leader in beverage industry for our assignment As the leading beverage brand in Sri Lanka they have good quality strategies within their organization So it’s one of the best chances we’ve got to study the quality oriented strategies of this company as they have reached their best level

So with that, we are pleased to present the quality management system of Coca-Cola

on behalf of the Quality Management module By studying this report you would be able to understand what are the quality management strategies that Coca-Cola use and how do it work in the global business village

Methodology

Our report is a depth analysis of the quality management system of a well-established

company in Sri Lanka The company we choose is “Coca-Cola Sri Lanka” a

subsidiary of the world famous “Coca-Cola Enterprises” Coca-Cola Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands The Coca-Cola Company consists of a factory located in Sri Lanka at Biyagama

On 21st of July 2014, we visited the factory and office situated in the Biyagama Mr Hemantha Balasooriya warmly welcomed us, and we were directed to the Ms.Theekshani, then she conducts a brief seminar about the company and the company’s quality management system

Other than that we browsed internet for the definitions and to find out the history of Coca-Cola

Finally we analyzed the information we collected with the theory of quality management we have learnt at the university and here we have presented the relevant information with the examples as it is helpful for you to get clear knowledge about the Quality Management System of Coca-Cola Company

Introduction to the company

Coca Cola is one of the most recognized brands in the United States and throughout the world Although there are several products in the Coca Cola line, its cola drink is its flagship beverage and still its most popular product The original recipe for the drink, which has been altered over the years, was created at the Eagle Drug and Chemical Company in Columbus, GA It was created by John Pemberton as a coca wine and was originally called Pemberton’s French Wine Coca Pemberton’s goal was

to create a non-alcoholic beverage option during prohibition Coke was first sold at Jacob’s Pharmacy in Atlanta in 1886 Pemberton claimed the drink cured diseases and was ideal as a morphine replacement It was also said to cure impotence and headaches

The 1980s were an exciting time for Coke The company’s marketing made some of the biggest impacts in industry and managed to incorporate iconic images such as Santa Claus and its polar bears onto the scene In 1985, Coke decided to change the formula of its drink and introduced New Coke to the market Unfortunately, New Coke was not well-received The public preferred the taste of the beverage to competitors, but did not like the traditional drink undergoing change Within a year, Coca Cola reintroduced a variation of the old recipe to the market and called it Coca Cola Classic By 2011, the world “classic” had been removed from all packaging and New Coke was no longer produced anywhere in the world Today, the classic recipe

of Coca Cola shares the market shelves with Diet Coke, caffeine free Coke, Coke with lime, and several variations of the classic cola drink

The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the Company This unique worldwide system has made The Coca-Cola Company the world’s premier soft-drink enterprise From Boston to Beijing, from Montreal to Moscow, Coca-Cola, more than any other consumer product, has brought pleasure to thirsty consumers around the globe For more than 128 years,

The Company aims at increasing shareowner value over time It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment, to meet business goals and objectives The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company’s assets and resources whilst limiting business risks

The Mission of Coca Cola

Coke’s roadmap starts with their mission, which is enduring It declares their purpose

as a company and serves as the standard against which coca Cola company weigh

their actions and decisions

 To refresh the world

 Ti inspire moments of optimism and happiness

 To create value and make a difference

The Vision of coca cola

The vision of Coca Cola serves as the framework for their roadmap and guides every aspect of their business by describing what they need to accomplish in order to continue achieving sustainable, quality growth

 People: Be a great place to work where people are inspired to be the best they

can be

 Portfolio: Bring to the world a portfolio of quality beverage brands that

anticipate and satisfy people's desires and needs

 Partners: Nurture a winning network of customers and suppliers, together we

create mutual, enduring value

 Planet: Be a responsible citizen that makes a difference by helping build and

support sustainable communities

 Profit: Maximize long-term return to shareowners while being mindful of our

overall responsibilities

 Productivity: Be a highly effective, lean and fast-moving organization

Coca Cola – Sri Lanka

Coca Cola Beverages Sri Lanka Ltd (CCBSL), located in Biyagama, is the only Coca Cola bottling plant in Sri Lanka It has 443 employees

While it has been a partner in the Coca Cola Sabco group since 2004, its origins go back to 1955, when it was formed under the name pure beverage Co Ltd., through the acquisition of the Ceylon Fruit Drinks and Table water company Its journey with Coca Cola started in 1960, when a franchise agreement was signed with the Coca Cola Export Corporation

Coca Cola Beverage Sri Lanka produces and sells over 10 million unit cases of carbonated soft drinks (both still and sparkling) per annum It operates through a countrywide distributor network, consisting of about 128 distributors

What Is a Quality Management System?

A quality management system is a management technique used to communicate to employees what is required to produce the desired quality of products and services and to influence employee actions to complete tasks according to the quality specifications

What Purpose Does a Quality Management System Serve?

 Establishes a vision for the employees

 Sets standards for employees

 Builds motivation within the company

 Sets goals for employees

 Helps fight the resistance to change within organizations

 Helps direct the corporate culture

As one of the largest and well experienced business over 125 years, Coca Cola has their own developed quality management system that perfectly matches with all of their operations They implements 5S and Kaizen theories inside the frame of their own quality management system to smooth overall quality

From such a perspective, kaizen is not only and approach to manufacturing competitiveness but also everybody’s business because its premise is based on the concept that every person has an interest in improvement

Kaizen- The three pillars

The three pillars of Kaizen are summarized as follows:

 The role of the supervisor

 The importance of training and creating a learning organization Another key aspect of kaizen is that it is an on-going, never-ending improvement process It is not too difficult to introduce something new into an organization The difficult part is how to keep it going and maintain the momentum once it has been introduced Many companies have tried to introduce such projects as quality circles, reengineering and lean production While some of them have been successful, most

have failed to make such a project a going concern For instance, many companies introduced quality circles by involving employees but most companies have simply given up the idea of quality circle activities by now as away to improve quality, cut cost and speed products to market

The message of kaizen philosophy is that not one single day should go by in the firm without some type of improvement being made in some process in the company Kaizen is everyone’s job, it requires sophisticated problem-solving expertise as well

as professional and engineering knowledge and involves problem form different departments working together in teams to solve problem

Focusing on small things

Kaizen means many things including; focusing on small improvements first rather than on the big ones, utilizing everyone’s potential and knowledge rather than depending on a few experts, having a philosophy that all problems have a solution and that nothing is impossible, rather than presuming that there are some unchangeable factors, implementing a continual stream of small improvements at a steady pace rather than some big changes once in a while, and done at every place where some work is done This is very different to the so called “big bang” approach which

focuses on “big” or very significant improvements once in a while

According to Masaaki Imai, the success of many Japanese methods such as Total Quality Management (TQM), Quality Circles (QCC), Total Productive Maintenance, Zero Defects etc owes its success to the underlying kaizen philosophy In a traditional organization the Top management and to a lesser extent the Middle management will concern themselves with innovation, the Supervisors and Workers are expected be concerned with maintaining the status quo and ensuring that all work happens according to the standard operating procedures In the Japanese model however there is a layer of kaizen between Innovation and pure maintenance of standard operations, and that is kaizen where there is a role for all

5S Theory

5S is the name of a workplace organization method that uses a list of five Japanese words all starting with the letter S The list describes how to organize a work space for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order.S process can increase morale, create positive impressions on customers, and increase efficiency and organization Not only will employees feel better about where they work, the effect on continuous improvement can lead to less waste, better quality and faster lead times Any of which will make your organization more profitable and competitive in the market place

5S consists of these five steps:

1 Sort through and sort out

2 Standardize and share information

3 Set in order

4 Sustain the improvements made

5 Shine and inspect through cleaning

Separating the wanted and unwanted

Junk & Waste Repairable Wanted Items

Repair

No Use

red tag items Occasionally used items are moved to a more organized storage location outside of the work area while unneeded items are discarded Sorting

is an excellent way to free up valuable floor space and eliminate such things as broken tools, obsolete jigs and fixtures, scrap and excess raw material

 Set In Order (Seiton) is the second of the 5Ss and focuses on efficient and

effective storage methods Strategies for effective Set In Order are: painting floors, outlining work areas and locations, shadow boards, and modular shelving and cabinets for needed items such as trash cans, brooms, mop and buckets

 Shine: (Seiso) Once you have eliminated the clutter and junk that has been

clogging work areas and identified and located the necessary items, the next step is to thoroughly clean the work area Daily follow-up cleaning is necessary in order to sustain this improvement Workers take pride in a clean and clutter-free work area and the Shine step will help create ownership in the equipment and facility Workers will also begin to notice changes in equipment and facility location such as air, oil and coolant leaks, repeat contamination and vibration, broken, fatigue, breakage, and misalignment These changes, if left unattended, could lead to equipment failure and loss of production Both add up to impact the company’s bottom line

 Standardize: (Seiketsu) Once the first three 5S’s have been implemented,

should concentrate on standardizing best practice in your work area Allow employees to participate in the development of such standards They are a valuable but often overlooked source of information regarding the work

 Sustain: (Shitsuke) This is by far the most difficult S to implement and

achieve Human nature is to resist change and more than a few organizations have found themselves with a dirty cluttered shop a few months following their attempt to implement 5S The tendency is to return to the status quo and

The Coca Cola Quality System

From the very beginning, the leaders of The Coca-Cola Company have realized that quality sets them apart from their competitors For many years, Coca-Cola approach

to managing quality was prescriptive and centrally controlled But by the mid-1990s, the realities of the marketplace sparked changes, and their approach to managing quality began to evolve The business need to please local tastes, coupled with the need to maintain consistent quality while quickly introducing new products, led to the first iteration of The Coca-Cola Quality System (TCCQS) in 1995

No longer prescribing what to do, how to do it, and when to do it, TCCQS featured quality and environmental standards that defined the results Coca-Cola’s worldwide manufacturing operations were expected to achieve Accountability for achieving those results shifted to the local business units, and, after 109 years, their approach to managing quality decentralized In 1999, an increased emphasis was placed on quality planning, management review, and safety Further refinements added standards to address business goals and objectives, safety, maintenance, and the environment

TCCQS continuously keep pace with new regulations, quality management methods, and industry best practices as well as marketplace conditions There is an increased awareness of the importance of food safety, not only in manufacturing, but also throughout the entire supply chain By refining their requirements, Coke further ensures that TCCQS embodies the most up-to-date, stringent manufacturing practices TCCQS concentrates on customer and consumer satisfaction and TCCQS provides the framework for safety and environmental stewardship

Overview of the Coca-Cola Quality System

Now Coca-Cola follows third evolution of TCCQS and this offers the following improvements to managing quality and accelerating quality system implementation:

 A simplified, streamlined, modular structure;

 Alignment with externally recognized standards; and

 A provision to leverage external resources such as training and auditing, while addressing the unique requirements of the Coca-Cola system

This evolution further enables improved quality performance and business excellence driven by:

 Integrating and aligning business and quality objectives with metrics to monitor performance;

 Demonstrating top management’s active involvement in quality management

at each business unit;

 Integrating preventive action as a management tool;

 Including more rigorous demands when planning new product/service introductions;

 Incorporating Hazard Analysis and Critical Control Point (HACCP) into the Quality Management System Standard; and,

 Defining problem solving methodologies and tools to drive continuous improvement

The Modular Framework

The framework of TCCQS is much like their business: multifaceted with Quality at its

TCCQS pyramid model has four layers, starting with The Promise at the pinnacle The other layers are:

■ Policy

■ Assurance

■ Control Each of the pyramid facets has the same component parts For example, there is an Environmental Management System Standard supported by environmental performance requirements as well as a Safety Management System Standard supported by safety performance requirements

Each facet – for Quality, Safety and Environment – has the same four layers Those layers are:

The Promise The Coca-Cola Company exists to benefit and refresh everyone it

touches This is The Coca-Cola Promise Regardless of business function, each facet

of the TCCQS framework supports The Promise

Policy As the pyramid model illustrates, this layer consists of a Policy Statement

The Environmental Policy and the Safety Policy are found on their respective sides of the pyramid, just as the Quality Statement appears on the Quality side of the model

Assurance This layer contains the management systems designed to ensure that

control/compliance activities are consistent and effective; ultimately making sure performance requirements are met In the pyramid model, notice that on the Quality side, the management system features the Quality Management System Standard, which meets the requirements of the ISO Standard 9001:2000 and was constructed with the intent to embody the management system requirements of the Global Food Safety Initiative (GFSI) Guidance Document, Third Edition January 2003: (Part II) – Requirements for a conforming Food Safety Standard (Key Elements), and to stay current with the most stringent, up-to-date global requirements governing food safety

In addition, the Quality Management System Standard features Company-specific elements such as incident management and crisis resolution For those who choose to pursue accreditation, the Assurance layer also integrates the management system requirements that govern laboratory operations embodied in ISO Standard 17025