Executive Summary
The global marketplace has become increasingly competitive as organizations seek to provide customers with quality services and products that satisfy their needs. As a result, the operations department in manufacturing and service companies has become critical to contributing towards the intended success. Recent developments have seen organizations carefully select the manufacturing process design with an eye towards achieving competitive advantage. Coca-Cola Company has dominated the beverage industry for decades and can be attributed to up-to-date process designs that meet the needs of the customers. A few of the Coca-Cola products include Fanta, Diet Coke, Coca-Cola Zero, Dasani, and Minute Maid among others. The paper reviews in reference to the Coca-Cola Company main factors influencing the selection of the firms’ manufacturing process design of the various beverage products. Some of the factors that have been discussed include quality, cost, automation, and sustainability of the environment. Additionally, the paper has analysed how the implementation of Lean Principles may assist the Operations Manager/Manageress in optimising efficiencies while minimising cost and improving customer service levels at Coca-Cola. The five lean principles discussed include value, value stream, flow, pull, and perfection. Successful implementation of lean principles would help in cost reduction and an increase in profitability and sales as well as improved customer satisfaction.

Operations and Information Management
Introduction
Process design has been identified as the alignment of processes with the aim of satisfying the needs of the customers while the objectives of the organization are met (Becker, Kugeler, & Rosemann 2003). All organization in spite of whether they are product or service based, are obligated to deliver quality products and services to consumers respectively (Matsa 2011, p. 1539). There are unique process designs that organizations can adopt including parallel or serial processes. First, the serial approach to design entails alignment of activities to occur consecutively in a sequence that is defined. While the serial method is associated to being easy to understand and simple, one of the significant disadvantages is that processes take time to achieve an aspect which reduces the capacity (Iravani, Van Oyen, & Sims 2005, p. 151). On the other hand, parallel processes involve the simultaneous execution of more than two operations. An organization that uses parallel processes exposes itself to increase in capacity or a decline in flow time. Selecting the ideal manufacturing or service process design for an organization depends on a number of factors. The difference explains the dissimilarities between organizations operating in the same industry having that they have a unique design to processes. Swift and Booker (2003), stated that selecting the best process was dependent on the marketplace nature, the type of product, and the business. With reference to the Coca-Cola Company, the paper has detailed a critical discussion of the major factors influencing the selection of firm’s different manufacturing process design of the various beverage products. Additionally, the research analyses how the implementation of Lean Principles may assist the Operations Manager/Manageress in optimising efficiencies while minimising cost and improving customer service levels at Coca-Cola.
Primary factors that influence the manufacturing/service process design of Coca-Cola products
Product Quality
Coca-Cola managers have the responsibility to ensure that the beverage products that are supplied to the global customers are of optimum quality (Mukherjee 2006). Quality is a critical factor that influences the choice of the manufacturing design process. A manufacturing process that is unsuccessful in creating products as initially designed and consequently fails to satisfy the customer should be disregarded, despite how cost-effective the method would be. Creation of quality products by Coca-Cola over the years has been the source of the success the company enjoys globally by commanding a significant market share. The nature of the beverage business requires Coca-Cola to have a system that has highest processes and standards that ensure consistent quality across the value chain. The quality of the beverage products can be traced from the production point, bottling and how they are delivered. The company acknowledges that their customers deserve refreshing, safe, and high-quality beverages. Coca-Cola has invested in an integrated quality management system which aims at addressing the constant changes in the business landscape while at the same time supporting the firm’s strategic growth plan. Coca-Cola has also integrated the need for quality within its culture. Moreover, the commitment of the company to manufacture quality drinks is underpinned by international standard ISO 22000 and ISO 9001. Additionally, the firm’s quality is guided by the global standards of The Coca‑Cola Company and the Quality and Food Safety policy. To identify any irregularity, small or big, the company has installed electronic bottle inspection equipment on all the production lines associated with refillable bottling. As a result, the company can identify and reject bottled beverages that do not meet the standards set by the organization and will likely be unable to satisfy the customer. The Coca-Cola process of creating beverages involves treatment of the water utilised during the production process with the aim of ensuring microbiology safety. The company’s insistence on quality is because the factor influences the competitiveness of the market. Thus, at every level of production, the quality that the organization desires influence the design adopted by Coca-Cola. The massive investments in quality are the significant reason that Coca-Cola products are available and recognised globally. Consistency in providing quality beverages in all countries gives the company a competitive advantage. Incurring additional costs to set up the manufacturing process design as per the company’s required quality contributes to customer satisfaction with the created product and at the same time helps in building strong global brands such as Coke and Sprite among others (Talib, Rahman, and Qureshi 2011, p. 268).
Total Costs
Globally, the aim of any business is to make profits while ensuring that the consumers are satisfied with the products offered. Coca-Cola has dominated the beverage industry for decades. To survive long in the market requires having strategies that are cost-effective and efficient. Utilization of the resources in the right way has mostly been a factor that propels Coca-Cola brands to greater heights across the world. Coca-Cola products include soft drinks such as Fanta, Diet Coke, Coca-Cola Zero, Dasani, and Minute Maid among others. Over the years, the different brands that the company offers to customers universally are sold at affordable prices. To achieve effectiveness in product affordability, many of the brands are developed and distributed in different sizes at varying prices. According to Pries and Quigley (2013), process costs are the investments which an organization such as Coca-Cola parts with during the process of manufacturing. The cost consists of the factors of production like capital, labour, land, and enterprise. Capital applies to the resources that are used in the production of the beverages and includes not only money but also transportation, machinery, and tools. For the Coca-Cola company, capital includes the factory machinery needed for the mass production of drinks and the bottles. Secondly, part of the total cost that influences the selection of the manufacturing design process is labour which refers to the workers contributing mentally or physically. Labour is classified by factors such as skills, education, and work experience and for Coca-Cola, it includes the workers in the factory, people working in the offices, and the managers. Thirdly, the land is a factor of production that adds to the costs incurred during the process of manufacturing. For the Coca-Cola Company, land includes the various minerals for the glass, oils for plastic, as well as the standard ingredients used for the beverages. To achieve cost effectiveness, Huang, Zhang, & Liang (2005, p. 267) argue that different approaches can be utilised in the cost management. At Coca-Cola, the company has been cutting costs through a reduction in jobs and selling some of the bottling factories and operations. Additionally, the company has been refranchising some activities with the purpose of reducing capital needs while boosting returns and margins. For organizations such as Coca-Cola which are profit-oriented, a criterion to select optimal level of quality is profit maximization. Some of the primary relationships in determining the quality level are shown in the figure below.

Figure 1 Determination of optimal quality level
Source: Huang et al. (2005)
Degree of Automation
The level of technology required within the organization influences the design of the manufacturing process. If the technology adopted by an organization were cost-prohibitive, there would be a need to designing extra steps in the process for purposes of accommodating the needs. For instance, if Coca-Cola intends to create 1,000 beverages per hour but the needed machinery is expensive, the company could be forced to have the working days or hours of the employees extended or sometimes outsource vendors to help achieve the set objective. As a result, the manufacturing process would change to house external vendors and new working times. In the past, managers avoided automation because of high costs when automating the processes and the challenge in integrating them with other systems within the organization. Nevertheless, in today’s marketplace, businesses have realized that automation and using the recent technology can be a strategic weapon that provides a competitive edge. While being equipped with the latest technology is expensive, the move helps in the reduction of costs and labour. For many years, Coca-Cola has been investing in the most sophisticated innovation in the industry a trend which contributes to the global success. To keep the sales consistently high, the company has been rebranding and changing with time. The company has harnessed new technologies to strengthen the brand in various ways. For instance, in 2009 the company introduced greener bottlers which saw the production of beverages with less petroleum. Additionally, the company has been staying relevant through social networking. The company has a visible appearance on social media channels such as Facebook for spreading the word on new product features and testing advertorial campaigns among others. Besides, the company has continuously adopted innovative methods for packaging of their products. Coca-Cola has been adopting package innovations that address the needs of the consumers including safety and convenience while at the same time being considerate of the environment. The company has adopted the recycling technique that is made possible by utilizing recent technologies. Coca-Cola is guided by the sustainability goals in the drive to use the technologies during the process of manufacturing. To remain innovative, Coca-Cola largely invests in research and development activities. As a result, the level of automation within the company influences the manufacturing process design of the various beverages developed by Coca-Cola. A change in the technology has a direct impact on the manufacturing process. The necessary adjustments have to be made to ensure that the technology contributes to efficiency and reduction of costs of operation.
Sustainability of the environment
Environmental sustainability is another critical factor that influences the decision when selecting the manufacturing design process at Coca-Cola. Operation managers put into consideration the potential effect that the process will have on the environment when making decisions on the most appropriate design (Vezzoli & Manzini, 2008). According to Geels (2011, p. 24), the current focus that the global community has on environmental sustainability requires the organization to select the process that has less negative impact on the environment. Being a global company, Coca-Cola has been in the forefront to develop strategies that seek to enhance perseveration of the natural resources. First, water is an input that is vital to all the products produced by the company. Thus, the company recognises that water is among the most precious of resources shared globally and hence the development of various conservation strategies. Coca-Cola developed a water strategy under the guidance of three principles. The first principle is protecting the water resources the company uses by ensuring that there is a reduction in the total volume used and treat wastewater to a level that can support aquatic life. The second guiding principle is collaborating with suppliers to achieve reduced water print during the entire value chain process. The final principle is making investments in water conservation projects managed by different communities around the world for purposes of replenishing the water the company uses via innovative sustainable strategies. Additionally, as part of the strategy to address the threat caused by the climate change, Coca-Cola has adopted an aggressive carbon reduction plan. The company has been improving its efficiency in energy usage by adopting cleaner sources of energy. Also, to minimize the environmental impacts of the packaging, the company is guided by three principles that are Reduce, Recovery, and Reuse.
Based on the above-explained factors precisely, the cost, quality, degree of automation, and sustainability of the environment, there is a clear indication that these factors influence the selection of manufacturing process design at Coca-Cola. Other factors which also are considered by operation managers include the quantity of the products, external regulations, human factors, nature of the product demand, the degree of vertical integration, and the level of flexibility. Coca-Cola has dominated the beverage industry for a long time because of the constant adjustments to the manufacturing process design with the aim of accommodating changes that meets the needs of global customers to their satisfaction.
How Implementation of Lean Principles may assist the Operations Manager/Manageress at Coca-Cola in optimising efficiencies while minimising cost and improving customer service levels
Many organisations are dependent on operations managers in the enactment of lean principles of the company. Lean principles focus on continuous improvement of a firm on enhancing efficiency in the corporation while minimising costs and improving the level of customer service. Operational managers have to deliver value from the customer`s view, eliminate waste, and continue developing processes in the production process of the organisation (Zhou 2016, p. 459). The lean principles that Coca-Cola could adopt comprises of value, value stream, ensuring value flow, perfection, and pull.
Value
Value is what a consumer places upon the Coca-Cola products and has the responsibility of determining the money that they are willing to part with to get the item. The key aspect of the lean principle is understanding what drives the value that the customer desires. Thus, the critical aspect is to know the problem that consumers are faced with and the most appropriate solution. An operation manager at Coca-Cola should be more focused on what the customers are willing to pay for the different beverage features. Implementing the principle value at Coca-Cola would help in determining how waste and unnecessary costs can be eliminated so that the drinks are delivered profitability at prices that customers are willing to pay. One of the ways to implement the principle of lean is the creation of internal and external processes and methods that seek to satisfy the needs of the customers. An operation manager at Coca-Cola should have tangible methods to identify and measure the value the various beverages accord the consumer. Measuring of the customer value could be through ways such as tracking the number of sales or complaints towards a given product. Importantly for the operation manager to note is that fulfilment of the customer needs surpasses everything other than safety. Due to the changing preferences of the global customer, Coca-Cola should implement the value principle in the manufacturing process for efficiency and effectiveness.

Value Streams
Value stream composes of processes, steps, and materials that are critical to placing the products in the customer’s hands. Implementing the principle would have Coca-Cola document and understand all components of their value stream via mapping software. Using mapping software will have the operation manager detect activities which create value, time delays, activities that add no value but cannot be eliminated because of production or technical limitations as well as activities creating no value rendering them wastes that provide opportunities for improvement. Value stream helps operation managers to identify barriers in the production process and devise ways in which they can mitigate the problems. Operation managers must remove the obstacles in the production process and reduce waste. Understanding the flow of the process ensures that the company can control the volume of output considering the demand (Tyagi, Choudhary, Cai, and Yang 2015, p. 202-212). Usually, factors such as regulation slow down the production process. As such, implementation of value stream as a lean principle enlightens the operation managers to map the means of production. The lean principle reviews the whole production process to ascertain that each activity affected is helpful to the company and the customers (Agus and Shukri Hajinoor 2012, p. 101). By Coca-Cola implementing the value stream as a lean approach, the company counters the challenge of defective products in the company. Faulty products released to the market for consumption can negatively affect the image and reputation of the company. The application of value stream ensures that beverages are continually improved so that they can serve customers better. Operation managers can detect a deviation from the normal. For example, the organization may realise that a product may lack some key features. Implementation of value stream in such a case entails the manager identifying the products and then making the necessary adjustments before they are released in the market (Pascal 2016, p.105).
Making Value Flow
Making the value flow is a lean principle that denotes to understanding all aspects of the customers’ demands. Operations managers can ensure efficiency if they present a product to the customers at the right time. The managers should not provide the merchandise too early nor should they be too late. In fact, implementing value flow calls for operation managers to work within an optimum. Lean techniques such as the total quality management (TQM) help superiors optimise efficiency in the manufacturing processes through an on-going quality program within the department. Coca-Cola can implement the flow principle by eliminating obstacles that might be present during transportation, overproduction, inventory, motion, waiting, defects, and process that are not needed. The flow in the company should be directed towards meeting the needs of the customers. The Coca-Cola employees would work within the production line together to ensure self-reliant flow so that customers’ demands can be satisfied sufficiently (Tyagi et al. 2015, p. 205). Implementation of quality management as a lean technique, therefore, keeps managers on toes to keep track of the trends in the industry ensuring the process design in the company matches the demand in the market.
Pull
The pull lean manufacturing principle seeks to eliminate waste specifically work-in-progress inventory. Adopting the technique by Coca-Cola would mean that after the improved flow has been achieved, customers become more inclined to a firm`s products. The consumers begin to pull the commodities from the company creating efficiency in the supply chain. When there is efficiency due to the high demand from consumers, operation managers motivate employees towards the handling of consumers to ensure care is upheld (Bhasin 2015, p. 154). Empowering and involving employees in customer care would help operation managers at Coca-Cola to identify the changes that are needed after the employee interaction with consumers. Implementation of the pull technique shows how much a company cares about their clienteles (Souza and Alves 2018, p.2668). The process of retaining clients is not usually simple, but through applying of pull principle, the organisational operation managers are much aware of what to change to stay afloat in the competition.
Perfection
The lean principle of perfection allows the operational managers to review the whole design, from how the product has created value and entirely improved the manufacturing process. By Coca-Cola adopting the lean concept, the company would invest in systems and measurement which seek opportunities to speed, improve, and reduce the cost of value streams. Moreover, applying the perfection principle by Coca-Cola would allow problems impacting on product quality be addressed from the cause. Achievement of perfection means involving all stakeholders in decision-making. The success of the perfection principle helps to lower the whole cost of production while focusing on maintaining quality. At the level, operational managers are informed on consumer habits and preference on products that add value to their lives (Chauhan, Rangrej, Samvatsar, and Sheth 2015, p. 427).
The significance of the lean principles to Coca-Cola is that when efficiently implemented they help to create customer value by the elimination of unnecessary costs and wastage of resources. Moreover, the company would benefit from an increase of global sales. The figure below shows a summary of the lean principles and the key points to consider when implementing.

Figure 2 Five Principles of Lean Thinking
Source: Chauhan, et al. (2015)
Conclusion
Operations management is a core aspect of a corporation. Operations managers must work towards ensuring that they carry out their duties through the application of workable strategies to increase efficiency. Notably, the factors that affect the manufacturing design of products should not deter companies from the focus on manufacturing quality products of value. Some of the factors explained in-depth are quality, cost, and automation among others. On the other hand, commodities do not stay long in the product lifecycle process. Furthermore, head of product manufacturing must eliminate processes that bring about the increase in waste. Coca-Cola can achieve waste elimination through implementation of the lean principles that are value, value stream, flow, pull, and perfection. Successful implementation of lean would help reduce costs and increase profitability as well as improve customer satisfaction.
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