Procedures Used by Pepsi-Bottlers Australia

Topics: Marketing, Coca-Cola, Cola Pages: 6 (1478 words) Published: May 16, 2008

Executive Summary
The purpose of this report is to identify and explain the procedures used by the Coca Cola Company’s major competitor, Pepsi Cola Bottlers Australia (PCBA). These procedures include three of the four key business functions: Operations, Marketing and Employment relations. These business functions work together in order for the business to operate efficiently and achieve the business’s goals.

PCBA’s Operations
The Operations of a business is a key business function associated the activities and decisions through which businesses transform inputs into goods and services (outputs). In PCBA, Operations management ‘involves the coordination of the general operations of the factory area,’ (Case Study). It involves: staffing, production processes and quality control.

a) Staffing

Staffing is to provide a business with a staff of workers or assistants. In Pepsi Cola Bottlers, there is a process which is applied to staffing: 1.Team leaders identify a shortage of staff.
2.This is reported to the Human Resources Department
3.The Department advertises the position in the newspaper. Applicants, however, are accepted based on their literacy, numeracy and mechanical aptitude. These potential employees undergo a three-hour exam to assess whether he/she is capable of applying themselves to the position where, “There is a benchmark score to gain an interview.” (Plant Analyst, Steve Seeley).

b) Production processes

The production processes refer to how the product will be manufactured within a business. Production in Pepsi-Cola factories need to be tuned and planned to ensure stock is available. This occurs by production scheduling – a meeting being held every Monday. In the Huntingwood factory, four production lines are operated and currently the amount of ‘downtime’ (time required for different products to be produced) could take 3 ½ hours for PET (Polyethylene Terephthalate, polyester: clear plastic used for soda bottles) or ½ hour for Aluminum can production run-change, e.g. Pepsi to Pepsi-Max. This downtime is a major issue in the factory where they are ‘constantly evaluating and trying to design ways of decreasing this downtime.’ The Supply Manager applies a Just-in-Time (JIT) principle is to all products being purchased. This principle involves working closely with suppliers to ensure inputs are delivered JIT. “The use of the Just-in-Time method of production is essential for this plant.” Steve said. The production processes also include constant computer monitoring, providing reports used to supervise activities, effectively evaluating processes.

c) Quality Control

Quality control is based on inspection of the product to check it meets the needs of the customer; it is one of the several approaches to achieve quality of a product. Cans in Pepsi-Cola factories last about nine months, but PET bottles begin to de-gas after four weeks. This requires constant monitoring for microbes occurs during and after production. ‘Samples are taken every 20 minutes for testing on-site,’ (Case study). The Quality Manager and Quality Team leader have the responsibility to ensure product quality. Pepsi-Cola also uses the Value-Chain idea, where the different activities that go on in a business are interdependent and work together to create value for the customer. PCBA’s Employment Relations

Employment Relations is the business function which deals with the relationship between the employer and the employees of a business. It involves planning the employees of the business: Organisational Structure, finding the people with the right skills: Acquisition, and training the employees to improve their skills: Development.

a) Organisational Structure

Figure 3.4 Organisational structure at Pepsi-Cola Bottlers Australia This structure has ‘sped up information transfer and increased the ability...
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