Team Taco BellOur trip to the Coca Cola distribution plant in

Greensboro...

Stephen Shelgren, Sylvia James, Jaron Walker, H David Joyce, Jeremy Escovitz

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Facility Layout

Delivery

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Operations & ProductivityThree Major Functions

● Marketing: The Coca Cola manages the orders and demands ranging from convenience stores such as 7-Eleven, to grocery stores like Harris Teeter on a daily basis.

● Finance: Takes care of cash flows and logs all of the assets on property.

● Operations: Stays up to date with all shipment deliveries and where goods are to be delivered. Employees and all equipment used are also managed and monitored.

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Process Strategy

● Coca Cola relies on a Product Focus strategy with high volumes of products but low variety.○ This factory also holds and distributes products

from other brands such as Monster.

● Employees are all trained to do the same tasks (ex. Packaging supplies for holding)

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Sales & Aggregate Planning● Coca-Cola produces nearly 40% of the beverages

consumed in the United States. ● Their headquarters facility in Charlotte matches fluctuating

demand, by brand, to specific plant, labor, and inventory capacity.

● They pride themselves on high facility utilization – they conduct meticulous cleaning between shipments – they use efficient intermediate facility scheduling...aggregate planning techniques and strategies (3months-5years).

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MRP● MRP is Materials

Requirements planning ● A production planning,

scheduling, and inventory control system used to manage manufacturing processes.

● Most MRP systems are software-based, while it is possible to conduct MRP by hand as well. 8

ERP● Enterprise resource

planning is a category of business management software, that Coke uses to collect, store, manage and interpret data from many different business.

● It includes activities such as: product planning, purchasing, manufacturing, and distribution. 9

Capacity Constraints & Layout

Capacity Constraints

• Their original capacity design was intermediate range planning • They have currently outgrown their distribution center

Layout

• Warehouse (storage)- Balance low-cost storage with low-cost material handling

• Maximizing storage + material handling cost • Docking location is a key design decision

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Forecasting & Inventory

• Coca Cola forecasting time is Medium Range (3months-3years)

• Pickers communicate to sales team.

• Hot Shots and add-ons are what they call adjustments to orders based on

distributor feedback

• Forecasting is more Quantitative than Qualitative in the sense that numerical

data is more reliable for forecasting.

• They stick between trend and random variations

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Supply Chain ManagementAn example of a Supply Chain activity at Coca-Cola:

• Distribution of inventory among orders to vendors and possibly plant employees.• Palettes of products are gathered for each order.• After each order is gathered completely, they are securely wrapped by floor staff.

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Quality & SPC at • In the middle of the facility, there is an area

accessible to all employees.• At this area there is:

• Documents that outline the duties for each employee over the course of the week

• Names of employees assigned are put into 1 of 2 boxes

• In the other box, the employee must initial on the task, acknowledging what they need to do.

• Histograms that portray previous performances by the plant, with running lines that indicate the average performance, and the minimum expectation.

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Lean Operations

● In cooperation with JIT systems to minimize inventory● Minimal staff● Partnerships between Coca-Cola and vendors, which have different demands based on

location.● Location of each Coca-Cola plant, in an effort to minimize travel distances to a reasonable

amount for daily travel.

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JIT, TPSJIT

- Small size of facility, and perishable inventory encourages JIT

- Cross trained workers

- Communication of schedules to suppliers

- “Kanban” style labels on bundles

Toyota Production System

- Encouraging employees to perform for reward and recognition

- Vacation days

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Sustainability at

● These damaged cases of Coca Cola product cans are in a pile to be shipped back to the manufacturing plant, to be recycled and reused.

● This reduces the amount of waste that this distribution channel creates, enhancing a more positive impact on our environment/planet.

• Slogan: “We’ll do it better.” - Profit is a product of quality assurance.• Reduced waste in manufacturing, reuse of material, and recycling of waste• Human and workplace rights/wellness - People• Outdated products, broken or damaged, anything unfit for consumption sent back to the

headquarters in Charlotte. - Planet• Continuous Maintenance

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Project Management

• Project Scheduling• Independent tasks, predecessors• Pickers, Sales team, Management• Receiving to factory floor to dispatch• Competitive advantage through efficient

shipment and order fulfilment

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Recommendations ● Increase facility size to accommodate

increasing demand on service.

● Create temporary work services with UNCG to fund seasonal staffing

● Increase standards for handling materials - incentive for not breaking bottles.

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Conclusion

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AppendixSlide 1-2: Introduction

3: Facility Layout

4: Operations & Productivity

5: Process Strategy

6: Sales & Aggregate Planning

7: Planning Horizons

8-9:MRP & ERP

10: Capacity Constraints and Layout

11: Forecasting and Inventory

12: Supply Chain Management

13: Quality and SPC

14: Lean Operations

15-16: JIT, TPS

17-18:Sustainability

19-20: Project Management

21:Recommendations

22: Conclusion

23-25: Appendix (questions and letter)

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Discussion Questions1. How does the Coca-cola Distribution center promote efficiency through layout?

A: Shipment oriented segmentation of products - Answer.B: Color codingC: Kanban cardsD: Minimal floor space utilization

2. How was forecasting handled at the facility?

A: Continuous Sales MethodB: 700 bottles a dayC: Hot Shots and Add-ons, orders from sales team to pickers - AnswerD: By ordering the exact amount to keep the facility packed to capacity

3. The original capacity design of the facility was intended or what range?

A: LocalB: Intermediate - AnswerC: NationalD: Global

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H David Joyce 3157 Old Hollow Road Walkertown, NC 27051

Laura MooneyCoca-Cola Distribution8200 Capital Drive, Greensboro, NC 27409

Dear Laura Mooney,I am a student in the Bryan School of Business and Economics at the University of North Carolina at Greensboro, and I am writing to inquire whether it would be possible for a small group of students to visit your facility as part of a class assignment. We are enrolled in an Operations Management course taught by Dr. Aaron Ratcliffe. He has assigned us to visit a local manufacturing/service facility and prepare a written paper. The course covers topics such as operations strategy, product and process design, facility location and layout, forecasting, capacity planning, inventory management and purchasing, scheduling, operations planning and control, quality management, and just-in-time operating systems. We would like the opportunity to interview you or any members on your staff to learn about how these topic areas relate to your organization. We would also like to tour your facility to observe the operating processes. If permission is granted to us to visit your facility, we will be happy to provide you with a copy of our written report. I will be calling you personally within the next working days to discuss the possibility of our making a visit to your facility. In the meantime, if you have any questions, please call me at 336 682 2866 Also, Dr. Ratcliffe is happy to answer any questions you may have with regard to the term project assignment. His office telephone number is (336) 256.8587. On behalf of the members in my group, I look forward to talking to you in the near future.Sincerely, H David Joyce

cc: Dr. Aaron H. Ratcliffe Bryan Building Room 438, University of North Carolina at Greensboro

Team Taco Bell abides by the UNCG Academic Integrity Policy considering our work on this project.

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