Operations management is the business function responsible for managing the process of creation of goods and services. It involves planning, organizing, arrange, and controlling all the resources needed to produce a company’s goods and services. Because operations management is a management function that involves managing people, equipment, technology, information, and all the other resources needed in the production of goods and services. Operations management is core function of every company. This is true anyway of the size of the company, the industry it is in, whether it is manufacturing or service, or is for profit or not for profit. Operations management refers to the administration of business practices to create the highest level of performance possible within an organization. It is worried with converting materials and labor into goods and services as efficiently as possible to increase the profit of an organization. Operations management teams effort to balance costs with revenue to achieve the highest net operation profit possible. Operations management involves exploit resources from staff, materials, equipment and technology. Operations managers acquire, develop and deliver goods to clients based on client wants and the abilities of the company. Operations management handles various strategic issues including determining the size of manufacturing plants and project management methods, and implementing the structure of information technology networks. Other operational issues include the management of inventory levels, including work-in-process levels and raw acquisition quality control materials handling; and maintenance policies. Operations management entails studying the use of raw materials and ensuring minimal waste occurs. Managers utilize numerous formulas such as the economic order quantity formula to determine when and how large of an inventory order to process and how much inventory to hold on hand.
The role of an operation management in coca cola company is to deal with the productivity system of Coca-Cola Company. Here we need to identify its resources and system of productivity to deal and design with manufacturing products. While considering this we need to have clear idea of development. Utilization, production, design and deliverance of objective into task of Operations management. Supply of Operations management ranges from strategic to strategic and operational levels. Typical strategic matters include shaping of location of industrial plants and deciding the construction of networks, designing expertise supply chains.
For being an operations manager, there are many responsibilities and authorities that has to be taken in account for contributing to the effective and efficient production and manufacturing of services and goods. It also takes full responsibility on the nature of structure and task. These procedures differ from each other in terms of following types of operations. The top management of the company engages in formulating five year longer term plans as well as shorter term planning for the next year or so, Apart from this strategic planning, the top management at Coca-Cola also engages in tactical planning in consultation with the middle management who in turn acts on the feedback from the salespersons on the ground. The planning at Coca-Cola entails setting targets for all employees at all levels that are periodically reviewed for either success or failure in meeting the targets and in case of the latter, feedback is sought from the managers and the employees who have failed to meet the targets about the reasons for the same. Coca-Cola follows the decentralization within centralization model of organizing itself. This means that while the global headquarters retains its overall decision making, the corporation is divided into regions and geographical territories in which it operates. These regional divisions are then organized into the functional departments which in its case comprise the Production, Industrial Relations, Sales and Marketing, and Human Resources departments. The way to understanding the organizing process of Coca-Cola is to recognize that employees with similar skills and common work functions are working in groups together. This helps the company avoid redundancies in problem solving processes as well as bestowing a certain functional autonomy at all levels. Managers at all levels are afforded a high degree of autonomy which give power to them to decide according to the specific local needs.Finally, the organizational structure is such that redundant layers in the hierarchy are eliminated and the layers of direct and dotted line reporting ensure that information flows through the organization without the clogging of the organizational arteries due to bureaucratic mindsets as well as blockages due to communication gaps.The overall responsibility for each country or region is with the country or regional head and the functional heads under him or her also report to the global functional heads. Similarly, the responsibilities are clearly defined which means that accountability is taken care of as is the aspect of transparency. Coca-Cola is organized around geographical regions and then the various departments for each region the importance of transformative leadership at both the Global and the Local levels. This means that local managers and the heads of departments in addition to the Country Heads in the various markets that the company operates in are free to decide on the appropriate strategies for their territories as long as they conform to the global norms and global culture that permeates the organization. The leadership of Coca-Cola believes in a democratic and laissez faire approach to leading which is necessary considering the business it is in which is heavily dependent on both the macro level vision and mission that need to be translated and transformed into micro level execution. the General Manager is at the top of the regional hierarchy who in turn reports to the country head. These general managers have other managerial subordinates such as the ones referenced for this article who have mentioned how the organization practices behavioral leadership that is based on acting on the specifics of the situation at the micro level. The managerial styles of these managers also follow the incentive based system for actualizing peak performance from the salespersons, this system is used to motivate them and make them meet or even exceed their sales target, this system also include pay hikes, bonuses and commissions based on sales achieved. The controlling function in Coca-Cola is done through periodic reviews of managerial and salespersons performance. Towards this end, an appraisal system based on objective evaluation of whether the employee being appraised has met his or her targets forms the backbone of the controlling function in the company. Though managerial performance goes beyond evaluation of targets and their compliance as the managers typically perform other roles such as people management and strategic planning, the salespersons are appraised based on the Sales Persons reporting system and the Sales Persons evaluation system. Activities of the salesperson on a daily basis whereas the latter is done according to the appraisal cycle and the results of which are used to determine promotions, bonuses, and other incentives. Apart from these performance measures, the employees are also evaluated according to their contribution to the actualization of the overall goals of the organization as well as on their soft skills including communication, people management, coordination, and service quality. Further, the controlling function also ensures that a performance development plan is prepared which takes into account the salespersons meeting the targets such as growth in sales, market development, and completion of customer and partner calls including conversion of cold calling, attendance, and the punctuality of the salesperson.
Our supply chain plays a central role in our business, ensuring that, in all our processes, we minimize our environmental impact and ensure sustainability in our value chain. We produce and distribute more than 2 billion unit cases of our products annually across our territories. Our supply chain organization, which is responsible for the company’s procurement, planning, manufacturing and engineering, and sustainability, plays a central role in managing this responsibly making sure that in all our processes we minimize our environmental impact and consider sustainability in our value chain from sourcing raw materials and manufacturing the end product to distributing it to our customers.
Our success lies with our people’s expertise, our absolute focus on quality and our continuous investment in advanced technologies. “Our mission is to become the leading supply chain function in our industry in terms of customer service and cost efficiency. To achieve this, we focus our efforts on keeping our people engaged, excelling in sustainability, reducing our costs and building best-in-class customer service and responsiveness”. Marcel Martin, Coca Cola HBC Supply Chain Director. In their business, they are developing a culture where quality is a core value across the entire organization. They re-stated zero tolerance for failure to meet standards and deployed a maturity continuum measurement to enable us to move quality and food safety focused culture to the next level. Quality and food safety remain top priorities, to make sure that our system is meeting customer and consumer expectations while delivering against cost leadership commitments.
They have stringent processes in place to minimize the occurrence of quality issues. However, when they do arise, we have robust processes and systems in place so we can deal with them quickly and efficiently, ensuring that customers and consumers retain confidence in products. Their aim is to build a borderless supply chain than will supply territory at optimum cost and have the capability to imbed innovative technologies, fast.
They are investing in advanced technology to optimize our infrastructure, aiming to build or transform existing plants into efficient mega plants that can effectively serve a country or an entire region. Optimization like this takes into consideration the Group supply chain as a whole, from the number of plants and the number and nature of filling lines to how many distribution