How is the most widely recognised product in the world made?

How are the required

quality standards met for every single unit of that product?
This case study answers these questions by outlining the manufacturing processes
for Coca-Cola - the most widely recognised global brand from London to Lagos, Los
Angeles to Lahore. It is sold in more and more markets, creating thousands of new
jobs in the local economies.
The brand is owned by The Coca-Cola Company which works with franchisees
across the world. These franchisees perform the bottling and canning operations and
are also knownas packagers.

This illustration shows how manufacturing operations convert inputs into finished
outputs. Coca-Cola's bottlers and canners are concerned with a range of processes
involved in transforming resources into the bottles and cans of drink that we are
familiar with.

There is a difference between transforming resources and transformed resources:

The transforming resources are the managers, employees, machinery and
equipment used by The Coca-Cola Company and its franchisees.
The transformed resources are the materials (the cans, bottles, liquids, etc.)
and the information which are processed to create the finished product.

Primarily, Coca-Cola is manufactured by franchisees who are the world's leading

bottling and canning companies. This franchise business is strictly controlled by The
Coca-Cola Company.

Soft drinks manufacture is a competitive business. Manufacturing techniques are

continually improved. This helps meet the highest quality standards for its products
using the most cost effective production techniques. For example, very small
changes in the shape of the can could save a canning factory millions of dollars in
production costs.
The production of Coca-Cola involves two major operations:
creating the packaging material
bottling and canning the finished drink.

For many years, Coca-Cola was produced in glass bottles. Because of the high cost
of distributing bulky bottles, they had to be manufactured close to where the bottling
took place. Today, this is no longer so important since new packaging methods have
revolutionised the process.
Advanced bottling and canning technology makes Coca-Cola cans and bottles very
light but extremely strong. The Company has invested a lot of time and money in
research and development to ensure the most effective life cycle impact of its
packaging.
By using the minimum quantities of materials in packaging, the cans and plastic
bottles are simple to crush or to reprocess at the end of the initial life cycle.

Cans are delivered in bulk to a canning plant. At this stage the cans are shaped like
an open cup ready to receive the liquid drink. They are not fully formed because the
ring pull end has still to be fitted.
After they have been inspected to check that there are no faults, each can goes
through a rinsing machine to make sure it is clean and ready for filling.

Coca-Cola consists of a concentrated beverage base and a liquid sweetener which

are combined to form the syrup from which the drink is made. The Company ships
the concentrate to bottling and canning plants where the franchisees mix it with sugar
and local water. The water is passed through a number of filters to make sure it is
absolutely pure.
Carbon dioxide, which makes it fizzy, is also delivered to the canning plant where it is
stored and then piped into the manufacturing process through a carbonator and
cooler. The Company specifies what equipment franchisees will use to carry out
these processes.
Samples are taken regularly for chemical analysis, and staff make frequent spot
checks to ensure that plants are maintaining the Company's standards of cleanliness
and quality. The Company provides its franchisees with the most up-to-date
technology available and many of them use the latest computer technology and
statistical process control methods.

The packaging and the finished drink are combined by a rapid filling process. Every
minute hundreds of cans pass along an automated production line and are filled with
a precise amount of Coca-Cola.
As the cans move along the production line, they are seamed to include the ring pull
end and produce the finished can. The ends are inspected to make sure they are
smooth and do not have any gaps or leaks.
An individual code is stamped on the cans so that each one can be traced back to
the point and time of production. A date code ensures product freshness. The cans
now look like those you will see in the shops.
The manufacture of Coca-Cola is carried out by a set of processes called continuous
flow production. On a production line, a process is continually repeated and identical
products go through the same sequence of operations.Continuous flow production
takes this one step further by using computer-controlled automatic equipment to
produce goods 24 hours a day.
The Company and its franchisees use Total Quality Management procedures that
encourage everyone in the plant to think about quality in everything they do. Every
employee sets out to satisfy customers and places them at the heart of the

production process. By continually seeking to improve every aspect of production,

employees are able to eliminate problems.
Throughout the production process, quality control personnel monitor the product and
take test samples. To guarantee that there are no errors, quality control inspectors
take statistically selected samples at the end of the production line.
Using chemical analysis, these inspectors can guarantee that the product meets the
exact specifications; they also check that there are no faults in the packaging. A 'fill
height detector' uses an electronic eye to ensure that the cans are filled to the right
quantity. Cans that are not properly filled are rejected.

The canners then prepare the cans for distribution to retailers such as supermarkets,
shops and garages. A machine called a case former creates the casing that protects
the cans as they are sorted onto pallets. The cans are stored temporarily in a
warehouse before they are collected by large distribution trucks.
So far this case study has focused on the canning process for Coca-Cola. The
bottling process, whether in glass or PET (plastic), is very similar. Each plastic bottle
starts as test-tube size and is blown up like a balloon into the final bottle shape.
Whereas franchisees receive cans that already have the logo and any promotional
details on them, bottlers apply the labels from large reels once the bottles have been
formed.
At the end of the bottling line, bottles are automatically sealed with a cap immediately
after they have been filled.

Canners and bottlers process vast quantities of materials each week. Receiving the
raw materials and delivering the finished products involves a complex sequence of
actions.
The ideal solution is to make sure that the inputs for the process arrive 'just-in-time'
so they can be transformed into a finished product ready for transportation 'just-intime' to meet the needs of the retailers. At modern canning plants, the can maker is
often located in an adjoining facility, with delivery through a 'hole in the wall'
operation.
The packagers are involved in sophisticated supply chainnetworks with the
supermarket chains and other outlets to ensure that this process runs smoothly.
Canners and bottlers must ensure that they do not build up large stockpiles of cans
waiting to be sold but they must also make sure that deliveries are not late. This is
where they benefit from advanced information technology that rapidly relays figures
about the demand for Coca-Cola. For example, this demand usually rises in periods
of hotter weather so the packagers need to plan increased production.
Canners and bottlers work closely with The Coca-Cola Company and other suppliers
to provide a smooth running supply chain so that consumers are always within 'an
arm's reach of desire' and can always buy a drink when they want one.

In addition to each canner or botTtler's own quality assurance procedures, sample

bottles and cans from each market are tested regularly by The Coca-Cola Company.
The results are then reported back to the packagers.
This feedback helps The Coca-Cola Company and the franchisee to work together
and identify opportunities for improvement. Franchisees undergo constant training
and retraining in quality assurance, and can always ask for help and advice about
ongoing improvement.

To produce the world's best known product, The Coca-Cola Company has to employ
the highest quality processes and establish standards which guarantee the
production of a standardised product which meets consumers' high expectations
each and every time they drink a bottle or can of Coca-Cola.
In order to guarantee these standards the Company has had to develop a close
relationship with its franchisees based on a mutual concern for quality. Total Quality
Management lies at the heart of this process involving a continuous emphasis on
getting quality standards right every time and on continually seeking new ways to
improve performance.