Procedures Used By Pepsi-Bottlers Australia

PROCEDURES USED BY PEPSI-COLA BOTTLERS AUSTRALIA

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 вЂ" a meeting being held every Monday.

In the Huntingwood factory, four production lines are operated and currently the amount of вЂ?downtime’ (time required for different products to be produced) could take 3 Ð'Ð... hours for PET (Polyethylene Terephthalate, polyester: clear plastic used for soda bottles) or Ð'Ð... 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 вЂ?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 of the management team to respond to customer demands.’ (Case Study) As this factory has several different production lines, this structure would be classified as a functional structure.

b) Acquisition

A key role of employment relations is to recruit potential employees who have the right skills and experience for the business to be as competitive and as profitable as it can. This process involves three main stages:

1. Identifying future staffing needs

In Pepsi-Cola, “Staff needs are determined on the basis of different departments, looking at what work needs to be done and the number of staff currently employed.”(Case Study) Job analysis is the second step within this process which Pepsi-Cola uses.

2. Recruitment of potential job candidates вЂ" which can come from within the business (internally) and from the outside through advertisement (externally)

If extra staff is required in the Pepsi-Cola factory, casuals are employed. This recruitment occurs externally through advertising in the local newspapers around Blacktown and Penrith and in the Daily Telegraph, through the Human Resources Department. It is an effective form of advertising within this location.

3. Selecting the best person for the job вЂ" affects efficiency and productivity.

The selection process in Pepsi-Cola вЂ?has been developed and modified to best suit the needs of the company and follows a simple step-by-step process,” Sarah Hampill, Human Resources Manager (Commercial). Instead of the step-by-step process, a selection approach would be more effective, by getting an overall assessment of the person’s suitability. The step-by-step process may eliminate a potential employee if they receive a poor evaluation at one selection