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Production & Operation management
Practical study
History
Just in time Advantages and disadvantages
Elements of JIT
Waste material
SWOT analysis
Recommendations
Conclusion
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Managing people and machinery in converting
materials and resources into finished goods and
services
Its deals with processes that produce goods and services that
people use everyday.
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Efficiency - Doing something at the lowestpossible cost
Effectiveness- Doing the right things to createthe most value for the organization
Value- Quality divided by price
Key OM Concepts
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Production System
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CASE STUDY
JUST IN TIME STRATEGY AT COCA-COLA
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VISION
People:Be a great place to work where people are inspired to be the best theycan be.
Portfolio:Bring to the world a portfolio of quality beverage brands thatanticipate and satisfy people's desires and needs.
Planet: Be a responsible citizen that makes a difference by helping build andsupport sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of ouroverall responsibilities
Productivity:Be a highly effective, lean and fast-moving organization.
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Established: 1886
Ranking: We own 4 of the worlds top 5nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Sprite and Fanta.
Operational Reach: 200+ countries
Consumer Servings (per day): 1.5 billion.
HISTORY
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Slogans1963 Things Go Better With Coke.
1970 Its the Real Thing
1975 Look Up America
1979 Have a Coke and a Smile
1982 Coke Is It!
1987 You Cant Beat the Real Thing
1993 Always Coca-Cola
2012 Burrrrrrrrrrrrrrrrr
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Major Competitors Of Coca Cola
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Just-in-time(JIT)is an inventory strategy that strives to
improve a business's return on investmentby
reducing in-process inventoryand associated carrying
costs.
JIT production is the system that enables a firm to
produce only what is required, in the correct quantity
and atthe correct time.
DEFINITION
http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Carrying_costhttp://en.wikipedia.org/wiki/Inventoryhttp://en.wikipedia.org/wiki/Return_on_investmenthttp://en.wikipedia.org/wiki/Business8/13/2019 POM in Coco Cola
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The technique was firstused by the COCO COLA
Company.
The just-in-time inventory system focus is having the
right material, at the right time, at the right place,
and in the exact amount.
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PRODUCT COST:The cost of production is greatly reduced due to
reduction of manufacturing cycle time, reduction of wastes &
elimination of non-value added operations.
QUALITY: Quality is improved because of continuous quality
improvement programmes.
DESIGN:: Due to quick response of technical change, alternative
designs can be quickly brought on the shop floor.
PRODUCTIVITY IMPROVEMENT:Under JIT System Suppliers Supplies
High Quality Materials And The Use Of Automated Robotics WithPreventive Intensive Maintenance Programmes, Which Prevents
Machinery Breakdowns Etc. Ensures High & Perfect Product Quality.
BENEFITS OF JIT
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JIT REQUIRES SPECIAL TRAININGS WITH
Reorganizations of policies and procedure.
RESISTANCE TO CHANGE: JIT involves a change through out the whole
organizations, but human nature resists change.
JIT REQUIRES MULTI-SKILLED WORKERS
With flexibility to change. And it is very hard tofind those workers.
DISADVANTAGES OF JIT
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Time consuming and Wastages in product
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Waste is anything other than
the minimum amount of
equipment, materials, parts,
space, and workers time,which are absolutely essential
to add value to the product.
John Pemberton
Founder, Coke
INTRODUCTORY QUOTATION
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Overproduction
Waiting
Transportation
Inefficient processing
Product defects
How can production can be Waste?
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Overproductionis the exact opposite ofJust-in-time
production
JIT ensure that there is no waste
from overproduction
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it means produce more of something than is
wantedor needed
OVERPRODUCTION
Just in Time Success Factors
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Suppliers
PreventiveMaintenance
Layout
Inventory
Scheduling
Quality
Employee
Empowerment
JIT
Just-in-Time Success Factors
Lowering Inventory Reduces Waste
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Scrap
Work in process inventory level
(hides problems)
Unreliable
Vendors
Capacity
Imbalances
Lowering Inventory Reduces Waste
Lowering Inventory Reduces Waste
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Scrap
Reducing inventory reveals
problemsso they can besolved.
Unreliable
Vendors
Capacity
Imbalances
WIP
Lowering Inventory Reduces Waste
L i I R d W
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Scrap
Reducing inventory reveals
problemsso they can be solved.
Unreliable
Vendors
Capacity
Imbalances
WIP
Lowering Inventory Reduces Waste
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.Global presence
Word leading
brand
Strong financial
background
Strong relations
with the sports
world.
Brand awareness
Logo famous
Strong marketing
and advertising
Diversification ofother business like
food and snacks.
Aggressive
acquisitions
Increase in demand
for bottled water
Negative publicity
Low profits in
strong areasDecline in cash flow
Supply is restricted.
Lack of popularity
of many Coca-Cola
brands.
Health issues.
Intense
competition
Slowdown in rural
Demand
Negative health
effect
Commodity price
growth.
STRENGTHS WEAKNESS
OPPORTUNITIESTHREATS
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RECOMMENDATIONS
For the products like diet coke, pulpyorange and kinlely soda it better to stop
manufacturing these products
Invest profits for future growth and for
earning more of market share and profits Invest heavilyinto products like fanta and
sprite in order to push the products to
star status.
The organization has to carefully study
external environment moves and
accordingly devise strategies to gain
competitive advantage
CONCLUSION
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JUST-IN-TIME METHOD IS A PHILOSOPHY,
WHICH BELIEVES THAT WASTE CAN BE
ELIMINATED BY CUTTING UNNECESSARY
INVENTORY AND REMOVING NON VALUE-
ADDED ACTIVITIES IN OPERATIONS. THE GOALS
ARE TO PRODUCE GOODS AND SERVICES AS
SPECIFICATIONS AND CONTINUOUSIMPROVEMENT THROUGH VALUE ADDITIONS.
CONCLUSION
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THANKYOU