Operations Tqm

Topics: Pepsi, Quality control, Coca-Cola Pages: 12 (4463 words) Published: May 28, 2011

Established in the Carolinas in 1898, Pepsi-Cola has a long and rich history. The drink is the invention of Caleb Bradham, a pharmacist and drugstore owner in New Bern, North Carolina. This young pharmacist began experimenting with combinations of spices, juices, and syrups trying to create a refreshing new drink to serve his customers. He succeeded beyond all expectations because he invented the beverage known around the world as Pepsi-Cola. The business began to grow, and on June 16, 1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back room of Caleb's pharmacy. Building a strong licensing system was one of Caleb's greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year. Pepsi Cola international is well reputed multinational company which is doing its business in almost every country of the world. The company is registered in New York stock exchange U.S.A. to make a better control over the business the company has given the manufacturing rights to different companies. Now these companies are producing the products on the behalf of the company by using their trademark. To maintain their goodwill in the market the company has a strict policy while granting the manufacturing rights Pepsi-Cola have standardized products all over the world (e.g, same in size, shape and quality). The franchises have to follow all the standards as given by the company. Even they have the mobile team, which check the companies after 2 or 3 months. Each company is producing products according to the standards given by the Pepsi Cola international. Pepsi cola is also very popular in Pakistan that’s why it has major market share, being the market leader. Pepsi Cola International, a remarkable name in the cola industry is doing its business in Pakistan through licensing. In Pakistan Pepsi Cola has 9 franchises. Shamim & company is one of these, established in 1967 as a private limited company. It started its business in 1968. Allah Nawaz Khan Tareen (Ret. DIG) got license of 7-up franchise and was producing only one product, 7-up. But in 1973 it became Pepsi Cola franchise. In Pakistan, at present Shamim & company is the largest production unit out of the 9. Shamim & company covers the area of Southern Punjab which consists of Multan, Bahawalpur, Bahwalnagar, Dera Ghazi Khan, Sahiwal, Khanewal, Rajan Pur, Mianwali and Layyah. The company is properly serving all these areas with quality products. There are 4- processing plants, and 6 filling lines which are imported from Philippines, Italy, Japan and these plants are used according to seasonal demand. * Avg. output rate =15000, cases per day per plant.

* Here 1- day =24 hours and 1-case = 24 bottles.
* Maximum or peak capacity =20,000, cases per day per plant. * Effective capacity = 15,000 cases per day per plant.
At start, there was only 1-manual plant having capacity of 2000-cases per day. But now due to Increase in market size (population) and Increase in demand there are 4-plants in Shamim & Company in just 33-years.

Quality is not a recent phenomenon; it has been there in every aspect of man’s life. Just the perspectives through which it is perceived have been varying. From the various views in the past, it is now viewed through the eyes of the customer and aims at satisfying the customer every time and even going beyond customer expectations. Quality management has moved from an initial stage of inspecting, sorting and correcting standards to an era of developing quality manuals and controlling process performance; quality management systems have been developed for third party...
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