QUALITY MANAGEMENT SYSTEM OF COCA COLA

QUALITY MANAGEMENT SYSTEM

Page 1NATIONAL INSTUTE OF BUSINESS MANAGEMENT

NATIONAL INSTITUTE OF BUSINESS MANAGEMENT


HIGHER DIPLOMA IN BUSINESS MANAGEMENT_____________________________________________________________________

HDBM 13.1

QUALITY MANAGEMENT (HDBM 2423)

_____________________________________

GROUP ASSIGNMENT

Submitted To:

Mrs. Pavithra Wickramasuriya

Submitted by:

Kushara M.H.J. - HDBM-G-13117

Liyanage D.R.U. - HDBM-G-13118

Medagoda T.M. - HDBM-G-13122

Maduwanthi A.W.N. - HDBM-G-13124

Ruwangi H.A. Tharushika - HDBM-G-13135

Withanawasam A.S.U. - HDBM-G-13149

Submission Date:

29 July 2014

_____________________________________

NATIONAL INSTITUTE OF BUSSINESS MANAGEMENT


NATIONAL INSTITUTE OF BUSINESS MANAGEMENT



Introduction………………………………………..………..

Methodology…………………………………………………

Introduction to the company…………………………

What Is a Quality Management System………..

Kaizen Theory…………………………………….……..

5S Theory…………..............................………..

The Coca Cola Quality System………………….

The Coca-Cola Quality Statement…..........….

Explanation to TCCQS………………………………….

Awards and Achievements of Coca-Cola…....

Findings……………………….………………….………...

Recommendatins………..…………..…………………

Conclusion..................................................

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,



Coca-Cola has created a special moment of pleasure for hundreds of millions of

people every day.

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.

Kaizen Theory

Kaizen means improvement, continuous improvement involving everyone in the

organization from top management, to managers then to supervisors and to workers.

In Japan the concept of kaizen is so deeply engrained in the minds of both managers

and workers that they often do not even realize they are thinking kaizen as a

customer-driven strategy for improvement.

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:

House keeping

Waste elimination

Standardization

To be ensured success on activities on those three pillars three factors have also to be

taken account.

Visual management

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.

Sort – (Seiri)

the first S focuses on eliminating unnecessary items from the workplace. An

effective visual method to identify these unneeded items is called red tagging.

A red tag is placed on all items not required to complete theri job. These items

are then moved to a central holding area. This process is for evaluation of the

Separating the wanted and unwanted

Junk & Waste Repairable Wanted Items


Repair No Use

Discard To next step


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 comfort zone of the "old way" of doing things. Sustain focuses on defining

a new status quo and standard of work place organization.



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

core. In addition to Quality, TCCQS has Environmental and Safety facets. The

TCCQS framework allows other business units to seamlessly align with it. The



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



On the Environmental facet, the management system includes the Environmental

Management System Standard, which has a focus similar to the Quality facet’s

management system. The Environmental Management System Standard meets the

requirements of ISO Standard 14001: 1996 and has additional Company-specific

elements. The Safety & Loss Prevention facet features the Safety Management

System Standard that meets the requirements of OHSAS 18001:1999. SGS-ICS

(Société Générale de Surveillance - International Certification Services) and LRQA

(Lloyd’s Register Quality Assurance), internationally recognized registrars,

benchmarked TCCQS against quality (ISO 9001:2000), environmental (ISO

14001:1996), and occupational health and safety (OHSAS 18001:1999) standards.

They found TCCQS to meet the requirements of all three.

Control. Controls, or performance requirements, are not new to the Coca-Cola

system. Testing and inspection requirements have been part of the Company’s day-to-

day operations for more than 100 years. However, today’s requirements differ from

the historical, prescriptive requirements because they focus on the results that must be

achieved. Although each local operation must achieve the same end results, exactly

how they do so varies from location to location and from process to process. Notice

that the TCCQS pyramid model depicts a clear separation between Control activities

and Assurance activities. Examples of Control activities include Good Manufacturing

Practices, cleaning and sanitizing methods, and Good Environmental Practices.

Scope. TCCQS evolution brings some changes to the scope of TCCQS. As the

framework illustrates, TCCQS reaches well beyond manufacturing and testing

operations.

All requirements of this Standard are generic and are intended to apply to any

organizational unit, regardless of size, type, and output provided. If a requirement of

this Standard does not apply to an organizational unit, the requirement may be

excluded. Exclusions must not affect the organizational unit’s ability or responsibility

to provide outputs that meet the customer’s requirements, The Coca-Cola Company’s

requirements and applicable laws.

To encourage focus on inbound and outbound processes, TCCQS refines the existing

scope of the traditional manufacturing supply chain into three broad categories:

inbound (acquisition of raw materials), transformation (conversion of raw materials



into marketable products), and outbound (warehousing, distribution and marketplace).

Process Model

The Coca-Cola Quality System promotes the adoption of a process approach when

developing, implementing, and improving the effectiveness of the quality

management system. This approach offers ongoing control over the linkage between

the individual processes within Coca-Cola system of processes, as well as over their

combination and interaction. As a result, the Company is able to meet customer and

consumer requirements and thus, enhance their satisfaction.

Certification to TCCQS

A prerequisite to Certification is that the organizational unit seeking Certification

meets all performance requirements and:

Demonstrates conformance to all relevant Management System Standards

through an audit;

Manufacturing operations must conform to the Quality, Environmental, and

Safety Management System Standards;

Once the organizational unit meets the prerequisites, additional Certification criteria

must be met (such as attaining a minimum product/package Quality Index,

demonstrating improvement trends, and publicly available sources indicating

applicable food law compliance). Certification to TCCQS enables an operation (if

they choose) to attain a host of external certifications, such as ISO 9001:2000, ISO

14001, and OHSAS 18001 — saving audit costs, minimizing operational disruptions,

and realizing myriad benefits.

The Coca-Cola Quality Statement

The Coca-Cola Company exists to benefit and refresh everyone it touches. For them,

Quality is more than just something the taste or see or measure. It shows in their every

action. Coca-Cola relentlessly strives to exceed the world’s ever-changing

expectations because keeping their Quality promise in the marketplace is their highest

business objective.



Explanation to TCCQS

Each organizational unit has establish, document, implement, and maintain a quality

management system and continually improve its effectiveness in accordance with the

requirements of this Standard.

1) Goals & Objectives

Business Planning

Each organizational unit has a business plan that addresses its objectives and which

promotes continual improvement of the organization and the effectiveness of the

quality management system. This includes the determination of metrics that allow for

the monitoring of performance against objectives. Objectives and metrics have

documented. Top management of each unit is responsible for ensuring that the

business plan is communicated to all employees. All employees are responsible for

understanding the business plan, its objectives and metrics in order to assist with the

achievement of the plan. Progress against the objectives and metrics are

communicated to all employees on a routine basis and insert them to management

review. The business planning procedure considers the following at minimum:

Determination of the factors of success for the department or unit;

An assessment of financial, economic, environmental, safety, and other

current factors that bear on the organizational unit’s success;

An assessment of the risks posed by internal and external factors that could

affect the organization’s ability to meet its objectives and the assets that it

needs to manage;

Human resource capabilities and needs;

Quality capabilities and needs, including resource availability;

Objectives and metrics.

Top management of each department ensures that objectives and metrics, including

those needed to meet requirements for food safety, are established at relevant

functions and levels within the organization. The objectives are measurable and

consistent with the quality statement. Each organizational unit demonstrates continual

improvement of objectives and metrics.



System Planning

Top management of each organizational unit has ensured that:

Planning of the quality management system is carried out in order to meet the

requirements of The Coca-Cola Company, as well as its objectives

The integrity of the quality management system is maintained when changes

are planned and implemented.

2) Management Responsibilities

Management Commitment

Top management has demonstrated support and commitment to the development,

implementation, and continual improvement of the quality system by

Ensuring the availability of appropriate resources;

Establishing a quality statement and ensuring that key objectives and metrics

are established;

Communicating to the organization the importance of meeting customer as

well as applicable food law requirements;

Ensuring a HACCP program is implemented and maintained in all

manufacturing and distribution operations that produce and distribute products

of The Coca-Cola Company and its business partners;

Conducting planned management reviews;

Ensuring customer requirements are understood and consistently met with the

aim of enhancing customer satisfaction.

Resources

Top management of each organizational unit has determined and provides the

resources needed to:

a. Effectively achieve the organization’s objectives, as defined in the business

plan;

b. Implement and maintain the quality management system and continually

improve its effectiveness;



c. Implement, and maintain a HACCP program in all manufacturing and

distribution operations that produce and distribute products of The Coca-Cola

Company and its business partners;

d. Ensure and improve customer satisfaction by meeting customer requirements

and applicable laws.

Quality Statement

Top management of each organizational unit has established and documents its

quality statement. Management of each organizational unit has developed a quality

statement suited to its own methods of operation and unique concerns. The Quality

Statements are,

a. Appropriate to the purpose of the organizational unit;

b. Include a commitment to comply with requirements and to continually

improve the effectiveness of the quality management system;

c. Include a commitment to food safety;

d. Provide a framework for establishing and reviewing key objectives and

metrics;

e. Communicated and understood within the organization;

f. Reviewed regularly for continuing suitability.

Communication

Top management of each organizational unit has ensure that appropriate

communication processes are established within the organization and that

communication takes place regarding the effectiveness of the quality management

system.

Management Review

Top management of each organizational unit has review the quality management

system at planned intervals to ensure its continuing implementation, suitability,

adequacy, efficiency, and effectiveness. A procedure establishes that includes, at

minimum, a review and analysis of the following inputs:

a. Results of audits and HACCP plan validation;

b. Customer and consumer feedback, including trends and individual incidents,

as appropriate;



c. Process performance and product conformity data;

d. Status of preventive and corrective actions;

e. The current Incident Management and Crisis Resolution (IMCR) procedure;

f. Follow-up actions from previous management reviews;

g. Changes that could affect quality management system performance;

h. The need for changes to the quality statement (our quality policy), quality

objectives and the overall quality management system;

i. Progress against objectives and metrics;

j. Recommendations for improvement;

k. Supplier performance.

The output from the management review includes decisions and/or actions related to:

a. Improvement of the effectiveness of the quality management system and its

processes;

b. Development and implementation of effective action plans to manage risks to

the business;

c. Adequacy, suitability, and effectiveness of food safety objectives and the

HACCP program;

d. Improvement of product or service related to customer requirements;

e. Allocation of resources;

f. Establishment of priorities for improvement opportunities. Records of

management review, including all inputs and outputs, must be maintained.

3) Documentation

Document Control

Each organizational unit is controlling all documents required by The Coca-Cola

Quality System. A documented procedure has to be established defining the:

a. Structure and numbering of the documentation system

b. Protocols for creation and approval of documents prior to issue

c. Review, updating as necessary, and preapprovals of documents

d. Identification of changes and the current revision status

e. Use of a master list or equivalent for internal and external documents;



f. Procedure for distribution and retrieval of documents (when physical

documents are used);

g. Assurance that relevant versions of applicable documents are available at the

point of use;

h. Assurance that documents remains legible and readily identifiable;

i. Assurance that external documents are identified and their distribution

controlled;

j. Prevention of the unintended use of obsolete documents;

k. Identification of obsolete documents if they are retained for any purpose.

Each organizational unit has design a communication strategy that ensures all

appropriate personnel have access to the current authorized requirements,

specifications, programs, and procedures.

Quality Manual

Each organizational unit is document and maintains a Quality Manual that includes:

a. The scope of the quality management system, including details of and

justification for any exclusion

b. The documented procedures established for the quality management system,

or reference to them

c. A description of the interaction between the processes of the quality

management system

4) Process Integrity

Process Orientation & Organizational Structure

Each organizational unit has:

a. Identify the processes and procedures needed for the quality management

system and their application throughout the organization

b. Determine the sequence and interaction of these processes

c. Define and communicate the responsibilities and authorities of all persons

d. Ensure all processes within the quality management system are monitored,

controlled, suitable, and effective by determining, collecting, and analyzing

appropriate data



e. Evaluate the data to determine where continual improvement of the

effectiveness of the quality management system can be made.

Process Monitoring and Control

Each organizational unit is planning, implementing, controlling, monitoring,

measuring, and analyzing its processes, and effectively ensure that new and existing

processes continuously produce material, product, and/ or service within Company

specifications; and which meet applicable laws and this standard. Planning of

processes has been consistent with the overall requirements and objectives of the

quality management system. The process monitoring and control procedure has been

documented for processes that affect the achievement of conformance by material,

product, or service to applicable laws or Company requirements. The process

monitoring and control procedure has included:

a. Compliance to applicable laws;

b. Assurance of required equipment process capabilities;

c. Conformance to Company requirements for process monitoring;

d. Conformance to Company requirements for process approval;

e. Implementation of HACCP program and prerequisites:

f. Determination of effectiveness criteria;

g. Designation of the responsibility for process monitoring and control;

h. Determination of applicable statistical techniques and the extent of their use;

i. Specifications and/or other documentation that describes the characteristics of

the product;

j. Work instructions, as necessary;

k. The use of suitable equipment;

l. The availability and use of monitoring and measuring devices;

m. Conformance to Company requirements for release, delivery and post-delivery

activities.

Records of these activities (when they occur) are maintained. Where product or

process performance does not meet Company requirements, appropriate corrective

actions are taken.

Infrastructure and Work Environment



Each organizational unit has determined, provide, and maintain the infrastructure

needed to achieve conformity to product and service requirements. Maintenance

procedures, including routine, preventive, and corrective maintenance, needed to

achieve product and process requirements has been documented. Records of

maintenance have been maintained.

5) Design and Development

Design and Development Planning

The organizational unit is planning and controlling the design and development of

product and other process outputs.

Design and development planning has determined:

a. Design and development stages

b. Review, verification, and validation those are appropriate to each design and

development stage

c. Responsibilities and authorities for design and development.

The organizational unit has managed the interfaces between different groups involved

in design and development to ensure effective communication and clear assignment of

responsibility. The design and development plan has been updated, as appropriate, as

the design and development progresses.

6) Incident Management and Crisis Resolution (IMCR)

Each organizational unit has develop and implement an Incident Management and

Crisis Resolution (IMCR) procedure to prevent and manage incidents or situations

effectively in a manner that protects their consumers, assets, and the image and

trademarks of The Coca-Cola Company. The IMCR procedure is a multifunctional

procedure not necessarily led by the Technical/QA function of the organizational unit.

Where the Technical/QA Manager or equivalent does not lead the IMCR procedure,

he/she has been an active contributor and member of the Incident Management Team.

The Coca-Cola Quality System requires the existence of an effective IMCR procedure

that is to be reviewed every six months, regardless of whether the procedure is or is

not led by the Technical/QA function.

A documented procedure was established and that includes:



a. A full assessment of the risks to the business unit using accepted TCCC

methodology;

b. Development and implementation of action plans to manage the risks

identified and assessed including business continuity plans, emergency

response measures in the event of fire, serious injury, civil disobedience, bomb

threat, etc;

c. The identification and training of an IMCR coordinator and an alternate;

d. Identification of a multifunctional Incident Analysis Team or its equivalent

that will be responsible for leading the IMCR procedure within the

organizational unit and, in the event of an incident, will go through the process

of incident analysis;

e. The completion of an escalation matrix or similar tool that shows clearly what

people or functions need to be contacted in the event of an incident;

f. The identification of an Incident Management Team (IMT) that will be

responsible for analyzing and communicating information, making decisions,

and coordinating action;

g. The identification of internal and external stakeholders, consultants, and

advisors, as well as appropriate regulatory and other agencies and authorities

that the business may need to communicate with in the event of an incident;

h. Review of the IMCR procedure by management for effectiveness at least

every six months. Records of this procedure review must be maintained.

Each level of the organization must maintain a key contact list, which includes 24-

hour per- day phone numbers. The key contact list must be current and must include

interfaces to the next level up and down within the Coca-Cola system.

Management must provide an effective mechanism for incorporating incidents into

the corrective and preventive action system, as appropriate.

7) Training

Each organizational unit has identified and documents the skill requirements for each

position and competency levels necessary for each employee to perform their job

safely and effectively. Competency consists of appropriate education, training, skills

and experience. The competency, awareness, and training procedure include:



a. Compliance with applicable laws. Where conflict between Company

requirements and applicable laws exists, the most stringent apply;

b. Determination of competency gaps of employees based on the requirements

for their position. Consideration must be given to the necessity for HACCP

training;

c. Scheduling and conducting of appropriate training based on gaps that are

identified;

d. Determination of training needs when changes occur to equipment, processes,

quality system documents, and/or changes in roles and responsibilities;

e. Training on the relevance and importance of activities and how they contribute

to objectives and metrics;

f. Evaluation of the effectiveness of training or other actions taken;

g. Orientation training on commencement of employment for each employee

(including contract and temporary personnel).

8) Audit

Each organizational unit has implemented an audit procedure to monitor conformance

with this Quality Management System Standard and other relevant Company

requirements, and to assess the intent, implementation, and effectiveness of its quality

system. Audits have been conducted at planned intervals. Each organizational unit

responsible for oversight of other organizations contracted to manufacture and

distribute trademarked products has implemented a procedure for performing external

audits on these same organizations. The audit procedure includes:

a. Determination of persons responsible for conducting audit activities, including

required competency;

b. Auditors who are independent of the activity audited. Auditors must not audit

their own work;

c. A documented schedule defining audit frequency. The schedule must take into

consideration the results of previous audits and the status and importance of

the area or element audited. For internal audits, the audit schedule must ensure

that each element of the quality system is reviewed at least once per year;

d. A documented procedure defining the responsibilities and requirements for

planning and conducting audits, and for reporting results and maintaining



records. The audit criteria, scope, and methods must also be defined, either

within the documented procedure or elsewhere;

e. Investigation and corrective action by management on audit nonconformities

in a timely manner;

f. Verification of actions taken;

g. Management review of audit results and the resulting corrective actions.

9) Consumer Responses and Customer Satisfaction

Determination of Contractual Requirements

Each organizational unit has identified the requirements of each order or contract.

These include:

a. Requirements specified by the customer including the requirements for

delivery and post-delivery activities

b. Requirements not stated by the customer but necessary for specified or

intended use, where known

c. Applicable laws related to the product;

d. Any additional requirements determined by the organization. Each

organizational unit has stipulated the communication channels for inquiries,

changes, and amendments to orders and/or contracts.

Customer Satisfaction

Each organizational unit has implemented a procedure for measurement and analysis

of customer satisfaction data against established customer requirements and

expectations and takes actions to ensure they are met. The customer satisfaction

procedure has included at least one proactive method of the unit’s choosing for

capturing customer perceptions.

10) Continual Improvement

Each organizational unit has continually improve the effectiveness of its quality

management system using the business plan, quality statement, objectives and

metrics, audit results, analysis of data, corrective and preventive actions, and

management review. Continual improvement of the overall performance, efficiency,

and effectiveness of the organization demonstrates continual improvement of the

effectiveness of the quality management system.



Corrective Action

Each organizational unit has implemented a corrective action procedure that ensures

action is taken to eliminate the cause of nonconformities in order to prevent

recurrence. Corrective actions have been appropriate to the effects of the

nonconformities encountered. A documented procedure has been established that

includes:

a. Review of nonconformities (including customer complaints)

b. Determining the causes of nonconformities

c. Evaluating the need for action to ensure that nonconformities do not recur. Not

all deviations require action through the corrective action system. The

organizational unit has establish criteria to determine what deviations require

action

d. Determining and implementing action needed

e. Tracking the status of action until completion

f. Records of the results of action taken;

g. Reviewing effectiveness of corrective action taken;

h. Evaluating the IMCR procedures used to manage all serious incidents and

crises, and completion of the incident evaluation form in the Asset Protection

and Incident Management (APIM) system.

Preventive Action

Each organizational unit has determined preventive actions, and implements a

preventive action procedure that ensures that the actions are taken, to eliminate the

cause of potential nonconformities in order to prevent occurrence. Preventive actions

have been appropriate to the effects of the potential problems. A documented

procedure has been established that includes:

a. Determining potential nonconformities and their causes;

b. Evaluating the need for action to prevent occurrence of nonconformities;

c. Determining and implementing action needed. Not all potential deviations

require action through the preventive action system. The organizational unit

has established criteria to determine what potential deviations require action;



d. Tracking the status of action until completion;

e. Records of results of action taken;

f. Reviewing effectiveness of preventive action taken;

g. Evaluating the IMCR procedures used to manage all serious incidents and

crises, and completion of the incident evaluation form in the Asset Protection

and Incident Management (APIM) system.

Awards and Achievements of Coca-Cola

Coca-Cola Beverages Sri Lanka Ltd. (CCBSL) has been honored with the prestigious

National Quality Awards 2013, in the Large Scale Manufacturing Category.

The Coca-Cola Company takes quality control very seriously and they are committed

to manufacturing all their beverages with world class technology and quality

standards. This award is a testament to their commitment.

The Sri Lanka National Quality Award is an annual award to recognize Sri Lankan

organizations that excel in quality management and quality achievement.

Certifications Coca-Cola Sri Lanka has been certified with,

FSSC 22000:2010 (Food Safety System)

ISO 9001:2008 (Quality Management System),

ISO 14001:2004 (Environment Management System),

BS OHSAS 18001:2007 (Occupational Health & Safety System),

PAS 220, and

TCCQS-E3 quality standards.


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The Company’s’ production facility in Biyagama has been awarded by the Coca-

Cola India & South West Asia Business Unit (INSWABU) as being amongst the

top 60 plants in The Coca-Cola System worldwide.

The Coca-Cola plant in Sri Lanka has a state-of-the-art electronic empty bottle

inspectors and bottle washer equipment to ensure that no foreign substances enter

Coca-Cola’s products during the bottling and packaging processes inside the plant.

The plant also ensures high quality checks and robust processes including undergoing

Total Productive Maintenance (TPM) processes and adhering to processes by the

Japan Institute of Plant Maintenance (JIPM) to ensure consistent performance. The

plant also uses a fully equipped water treatment plant using multi barrier technology

producing water at highest standards which is then used for manufacturing the

beverages. The plant also has stringent process to treat the waste water. The water

goes through several cycles of treatment, such that it meets the company’s norm of

effluent discharge, which in evidenced by sustenance of aquatic life as well as local

Government norms for discharge. Further to this, the plant uses ultra-filtration

technology followed by scale removal through Nano technology to use treated waste

water for non-production purposes Sustainable and responsible. The Coca-Cola

Company has ensured great taste and quality in each of its products.

Findings

Coca-Cola has very effective and efficient quality management system.

Since 1995 Coca-Cola maintains their own quality management system. It

gives a better complied quality management for their operations instead of

common quality management principles.


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Coca-Cola system has more than 900 bottling plants worldwide under same

quality management system. Place to place variations of human resource

behavior can make disturbances to the uniqueness of TCCQS.

Some stated lines of TCCQS bring additional cost to the organization

At the practical level, company has to implement some points of TCCQS as

rules.

Tough regulations and practices can make employee dissatisfaction.

Recommendations

Since they implement their own quality control system, new employees can be

unaccustomed with it. To overcome this every plant should be conduct

necessary programs to make relationship between quality system and fresh

employees.

Their globalized quality management system should have extensions to match

with local work conditions. These adjustments should do inside the basic

frame of TCCQS.

Company should get necessary actions to avoid employee dissatisfaction at

implementation of tough points of TCCQS.

Company should improve some quality points as a normal quality practices

instead of regulations.

TCCQS made to match with global quality system. At global level

organization plants spends huge cost to maintain quality system regardless of

other factors. Coca-Cola global takes it as values added spend. But at local

environment, plant cannot spend same amount of cost to quality system like as

other huge plants in the world. Local plant should identify and get maximum

value from TCCQS at dependable cost.

Conclusion

Based on the findings of this report, it seems that Coca-Cola has an efficient and

productive quality management system. The global presence that Coca Cola has



means that its quality system needs to maintain a high level of consistent products

which meets the standards expected by its consumers worldwide. This report shows

that the system in place enables Coca Cola to measure all parts of the production

process with large success. This is reflected in the Company's Global Product Quality

Index rating which has consistently reached 94%. The effectiveness of this system

allows for the organization to profit by creating image of world class quality master.

Without this quality system in place, Coca Cola may have found it tougher to

penetrate international locations. One important aspect to Coca Cola is their brand

image and this quality system does its best to promote this image providing checks

throughout the production process. Other ways in which Coca Cola tries to increase

its social standing is by adopting sustainable approaches to environmental initiatives.

These factors are important to maintaining quality in the design and development of

new products, packaging, production processes and factory facilities. However, the

recommendations suggested provide Coca Cola with some areas to consider.

Continuous improvement throughout the organization could offer some ideas about

these issues which could maintain or improve upon the current product quality index

rating. Nonetheless the current system in place seems to be extremely effective and

allows Coca Cola to distribute its products on a global scale producing consistently

high products with rare cases of defection. It is clear that the system has gone through

various transformations that have improved the way in which quality is managed and

without these changes, customer demand would struggle to be achieved.
