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Definition of Total Quality Management (TQM)

TQM can be defined as a set of techniques and procedures used to reduce or eliminate variation
from a production process or service delivery system in order to improve efficiency, reliability,
and quality. It integrates basic management techniques, existing improvement efforts, and
technical tools within a disciplined approach focused on continuous improvement.

Coca-Cola drinks come in a variety of different packaging formats including glass, aluminum
cans, and plastic bottles. As the company expands its supplier base and beverage portfolio to
meet the increasing demands of developing and growing markets around the world,
regulatory scrutiny and consumer expectations continue to rise. states that “the global nature
of its business requires that the Coca-Cola system has the highest standards and processes to
ensure consistent quality – from its concentrate production to its bottling and product
delivery”.

Coca-Cola states that ‘to ensure such consistency and reliability, the Coca-Cola system is
governed by the Coca-Cola Operating Requirements (KORE)’. This system enables Coca-Cola
to address growth plans by creating an integrated quality management program that holds
all operations to the same standards of production and distribution of beverages. The current
management system, KORE, aims to achieve the highest standards in product quality, health
and safety, and environmental standards at Coca-Cola.

The Quality Management system

It is very important that each product that Coca-Cola produces is of a high-quality standard to
ensure that each product is exactly the same. This is important as the company wants to meet
customer requirements and expectations. With the brand having such a global presence, it is
vital that these checks are continually consistent. The standardized bottle of Coca-Cola has
elements that need to be checked whilst on the production line to make sure that high quality is
being met. The most common checks include ingredients, packaging, and distribution. Much of
the testing is taken place is during the production process, as machines and a small team of
employees monitor progress. It is the responsibility of all of Coca Colas staff to check quality
from hygiene operators to product and packaging quality. This shows that these constant
checks require staff to be on the lookout for problems and take responsibility for this, to ensure
maintained quality.
Coca-cola uses inspection throughout its production process, especially in the testing of the
Coca-Cola formula to ensure that each product meets specific requirements. Inspection is
normally referred to as the sampling of a product after production in order to take corrective
action to maintain the quality of products. Coca-Cola has incorporated this method into their
organizational structure as it has the ability to eliminate mistakes and maintaining high-quality
standards, thus reducing the chance of product recall. It is also easy to implement and is cost-
effective.

Coca-cola uses both Quality Control (QC) and Quality Assurance (QA) throughout its production
process. QC mainly focuses on the production line itself, whereas QA focuses on its entire
operations process and related functions, addressing potential problems very quickly. In QC and
QA, state of the art computers check all aspects of the production process, maintaining
consistency and quality by checking the consistency of the formula, the creation of the bottle
(blowing), fill levels of each bottle, labeling of each bottle, overall increasing the speed of
production and quality checks, which ensures that production demands are met. QC and QA
help reduce the risk of defective products reaching a customer; problems are found and resolved
in the production process, for example, bottles that are considered to be defective are placed in
a waiting area for inspection. QA also focuses on the quality of supplied goods to Coca-cola, for
example, sugar, which is supplied by Tate and Lyle. Coca-cola informs that they have never had
a problem with their suppliers. QA can also involve the training of staff ensuring that employees
understand how to operate machinery. Coca-Cola ensures that all members of staff receive
training prior to their employees so that employees can operate machinery efficiently.
Machinery is also under constant maintenance, which requires highly skilled engineers to fix
problems and help Coca-cola maintain high outputs.

Every bottle is also checked that it is at the correct fill level and has the correct label. This is
done by a computer that every bottle passes through during the production process. Any faulty
products are taken off the main production line. Should the quality control measures find any
errors, the production line is frozen up to the last good check that was made. The Coca-Cola
bottling plant also checks the utilization level of each production line using a scorecard system.
This shows the percentage of the line that is being utilized and allows managers to increase the
production levels of a line if necessary.
Coca-Cola also uses Total Quality Management (TQM), which involves the management of
quality at every level of the organization, including; suppliers, production, customers, etc. This
allows Coca-Cola to retain/regain competitiveness to achieve increased customer satisfaction.
Coca-Cola uses this method to continuously improve the quality of their products. Teamwork is
very important and Coca-Cola ensures that every member of staff is involved in the production
process, meaning that each employee understands their job/roles, thus improving morale and
motivation, overall increasing productivity. TQM practices can also increase customer
involvement as many organizations, including Coca-Cola relish the opportunity to receive
feedback and information from their consumers. Overall, reducing waste and costs provides
Coca-Cola with a competitive advantage.

Planning Process

Using the information gathered from their customer-focused strategy, companies will plan their
business processes to meet the desires of customers. Changing production materials, correcting
product flaws and creating new product features are part of the planning process of TQM.
Businesses must understand that product quality is based on the perception of customers;
planning and deciding how to achieve this perception are important in TQM

The Production Process

Before production starts on the line cleaning quality tasks are performed to rinse internal
pipelines, machines, and equipment. This is often performed during a switchover of lines, for
example, changing Coke to Diet Coke to ensure that the taste is the same. This quality check is
performed for both hygiene purposes and product quality. When these checks are performed
the production process can begin.

Coca-Cola uses a database system called Questar which enables them to perform checks on the
line. For example, all materials are coded and each line is issued with a bill of materials before
the process starts. This ensures that the correct materials are put on the line. This is a check that
is designed to eliminate problems on the production line and is audited regularly. Without this
system, product quality wouldn’t be assessed at this high level. Other quality checks on the line
include packaging and carbonation which are monitored by an operator who notes down the
values to ensure they are meeting standards.
To test product quality further lab technicians carry out over 2000 spot checks a day to ensure
quality and consistency. This process can be prior to production or during production which can
involve taking a sample of bottles off the production line. Quality tests include the CO2 and
sugar values, micro testing, packaging quality, and cap tightness. These tests are designed so
that total quality management ideas can be put forward. For example, one way in which Coca-
Cola has improved its production process is during the wrapping stage at the end of the line.
The machine performed revolutions around the products wrapping them in plastic until the
contents were secure. One initiative they adopted meant that one less revolution was needed.
This idea, however, did not impact the quality of the packaging or the actual product, therefore,
saving large amounts of money on packaging costs. This change has been beneficial to the
organization. Continuous improvement can also be used to adhere to environmental and social
principles which the company has the responsibility to abide by. Continuous Improvement
methods are sometimes easy to identify but could lead to a big change within the organization.
The idea of continuous improvement is to reveal opportunities that could change the way
something is performed. Any sources of waste, scrap, or rework are potential projects which can
be improved.

The success of this system can be measured by assessing the consistency of the product quality.
say that ‘Our Company’s Global Product Quality Index rating has consistently reached averages
near 94 since 2019, with a 94.3 in 2020, while our Company Global Package Quality Index has
steadily increased since 2019 to a 92.6 rating in 2020, our highest value to date. This is an
obvious indication this quality system is working well throughout the organization. This increase
of the index shows that the consistency of the products is being recognized by consumers.

Customer Satisfaction

Coca-Cola controls its customer satisfaction by having a code on the bottles it produces. This
means that if there is a fault, then that code can be entered into the Coca-Cola database and
they can find out what plant it was produced at and where it was distributed to. This helps
customer satisfaction because if there is a faulty group of Coke bottles then they can be recalled
before any other customers find problems with a particular batch of Coke products. They also
have an OTIF rating system for distributors (OTIF stands for ‘on time in full’). External
customers, such as distributors can rate Coca-Cola’s delivery based on if it was on time and the
full stock was delivered. Coca-Cola also uses mystery shoppers to examine the quality of the
products and how satisfied customers are with those products.
Using Total Quality Management, Coca-Cola is able to:

- Stand out from the competition

Reasons to make quality a priority at Coca-Cola

A. Continuous competition among soft drink manufacturers - the soft drink market demands
high-quality products at affordable prices.

B. Changing the permanent client and turning to alternatives - the new client not only gets
priority based on size but also has higher expectations in terms of the "quality system."

C. Shifting from low volume and high price to high volume and low price necessitated the
reduction of the internal cost of poor quality.

D. Product complexity - As systems get more sophisticated, component providers' dependability

E. Increased rivalry raises customer expectations, resulting in higher levels of consumer

F. Approaches to quality that are relatively easy. In today's complex market context, product
quality control inspection and the inclusion of the internal cost of poor quality in the selling price
may not be feasible.