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Coca-Cola FEMSA (KOF) or Coca-Cola Bottlers Philippines, Inc. (CCBPI) Tacloban

Plant has been serving Eastern Visayas since September 25, 1953 with their products. Coke has a

long history and it has managed to stay on top with apparently a bigger share of the market. Oneof their competitive advantage was being the first company to serve carbonated drinks and

similar products. How else Coke does it, that’s a secret. But a trip to one of its plants might just

give a glimpse of CCBPI’s operations.

KOF exists to “Satisfy and please the beverage consumer with excellence” with the

vision of being “the best bottler in the world, recognized for its operating excellence and the

quality of its people.” To help them achieve this, they treasure the values of Passion for serviceand Consumer Approach; Innovation and Creativity; Quality and Productivity; Respect,

Comprehensive Development and Personnel Excellence; and Honesty, Integrity and Austerity.

Weekly planning or forecasting is done by their officials to determine the productionrequired for the current and proceeding periods. Table 1 shows the forecasted demand for the

month of September. Such data is posted on a bulletin board at their factory and is updated daily.

According to a factory personnel, the amount showed as

Required Daily Production to

Hit Balance is already above the

average daily production, whichmeans that for the last two days

of September, they were already

rushing production to meet thedemand. Demand are forecasted

to peak on Fiestas, Graduation,

and Holidays like Christmas in

December.

Coca-Cola designs its products toachieve sustainability. In doing so, they

practice the 3R’s. The most basic things

they do are presented in Table 2. Part oftheir efforts in maintaining sustainability

are programs related to Saving Water

and Greener Energy use.

Moreover, the bottles themselves are designed to be sustainable

(refer to Figure 1). From metal caps, KOF has moved to using plastic caps

instead. Even the print of the Coca-Cola trademark is slightly depressed to

avoid being corroded when placed side by side with other bottles during processing. Additionally, the bottles were designed to give it a distinctive

look that consumers could recognize even if they felt it in the dark and even

if broken, a person could tell at a glance what it was. KOF Tacloban produces coke products in glass bottles in their plant

Table 1. For the Month of September

Required Output (in cases) 667,048

Net of Beginning Inventory 137,744

Volume to Date 658,836

To Produce (over) 8,212

Required Daily Production to Hit Balance 4,106

Bottling Days Period 30

Days Utilized 28

Table 2. 3Rs

Reduce KOF launched new bottles with less glass

content

Reuse They distribute their products in

Returnable Glass Containers (RGB)

Recycle Broken bottles and plastic bottles are

recycled

Figure 1. Coke Bottle



Table 3. Capacity

TRUCK

Leaves/Arrives

1. Unloading(empty bottles are

brought in;separated and

placed to conveyers)

2. Sorting(bottles are sortedand inspected by 6

people beforecleaned)

3. Washing(biggest machine

with 3compartments:

Wash, Clean,Sterilize)

4. Filling(bottles are 1st

inspected bymachines for dirts

and stains then byhumans; only

perfect bottles arefilled)

5. Packing andLoading

(bottle are cappedquickly to avoidcontamination)

Figure 3. Basic Process

but it imports products in-can and in plastic bottles either from Cebu or Sta. Rosa Plants. The

three main ingredients are Treated Water , Concentrate, and Carbon Dioxide (CO2) which

undergoes the process as shown in Figure 2.

Additionally, the plant’s capacity for producing these bottled products are shown in

Table 3. Factory capacity is roughly 36,000 physical cases (RGB) per day and stores finishedgoods at 203,355 physical

cases and 263,534

physical cases for empties.It also consumes an

average of 600-900 m3

and

uses 100,000-300,000

kwH or electricity permonth.

CCBPI employs high end

technology for its operations with

global standards so it operates in thesame pace and quality as with other

Coke products in other countries. In

other words, their products arestandardized. CCBPIs production can

be classified as a Mass Process

producing high volume and lowvariety. In a repititive process, the

plant uses the same machine in

creating solutions for the different

products and operates in two to three

shifts depending on the demand.

Figure 3 exhibits the

flow of the process in preparing the products. When the trucks arrive, it is

estimated that within 7 minutes after

arrival it can already leave afterunloading and loading cases.

Treated Water which

undergoes filtering isused to prepare a

sugar solution

The concentrate is

added in correctproportion to make

the syrup

The syrup is allowed

to cool down andCO2 is added to give

it a "punch"

Figure 2. Coke Preparation



University of the Philippines Tacloban College

Magsaysay Blvd., Tacloban City

THE OPERATIONS OF COCA-COLA TACLOBAN

A Review on Company Operations

Presented to

MS. JOSHA OSIAS

Division of Management

In partial fulfilment

of the Requirements in BA 187(Operations Management)

First Semester, AY 2013-2014

By

MARC JOSEPH T. LOYOLA

BSA 5, 2009-37425

October 4, 2013

coca cola paper operations management

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