WIXLIB

Copyright of this project belongs to HCCBPL as per IPRAll the numbers are represented are masked considering business confidentiality1THE COCA-COLA COMPANY (TCCC)Mission Coca-Cola was formulated in 1886 by John F PembertonWe Operate In more countries than UN“Coke” is the most Recognized word after “OK”One of the Most valued Brands in the world To Refresh the World Inspire moments of optimism and happiness Create value and make a difference21

IntroductionIntroduction HCCBPL is the largest bottling partner of The Coca-Cola Company in India. It is a part of The Coca-ColaCompany’s Bottling Investments Group (BIG) and responsible for the manufacturing, packaging, sales anddistribution of beverages under the trademarks of The Coca-Cola Company.3Vision, Mission and Values To be the best Sales &Distribution Company forconsumer products in Indiaconnecting people and theproduct of their choiceVision Enriching lives across thecountry by building y,profitable, sustainable andsocially responsiblebusiness in IndiaMission ENTINTEGRITYTEAMWORKValuesAll the numbers are represented are masked considering business confidentiality42

Product : Packs and BrandsReturnableGlassBottlesCarbonatedSoft DrinkPET BottlesJuiceProductsPacksTetra PackWaterLife StyleBeveragesCans5Coke Value Chain : How do we Serve our Customers?CokeDistributorRGBPETCoke DepotConcentrateSugar & PulpPreform SupplierCoke SupplierGlass Bottle LinesPET linesTetra Pack LinesCans lineCoke Bottling PlantsRetail OutletKey AccountsDSDDistributionCoke DepotRoute to MarketCustomers63

7HCCB - OE Strategic Roadmap – Picture of Success84

Operation Excellence – Strategic Blocks9Section : 1Project & Team SelectionAll the numbers are represented are masked considering business confidentiality105

1.1.1Who was responsible for selecting the Project ? (1/2)Global Vision 2020HCCBPL - National Steering CommitteeProject selection inessDiagnosticVoice ofCustomerVoice ofBusinessProjectExecution –Training andOE tool usageProfit & oorDoor GroupGroupComponentsComponentsLaurel,Laurel, MSMSPlanCustomersCustomersCompetitors ? ? ? ?Specialty:Specialty:Brampton,Brampton, Ont.Ont. ? ?ExternalSuppliersExteriorExterior DoorsDoorsDickson,Dickson, TNTNDistribution: 1-Stepper ? ?InteriorInterior Doors:Doors:Haleyville,Haleyville, ALALPlanPlanCertification,R&RIdea GenerationworkshopSupply Chain TransformationDefining the Performance Gaps – Big “Y’s”Distribution: 2-Stepper ? ?KPI Trend &BenchmarkingSCOR ModelCustomer Channel &Product Line Reqm’tsSuppliersSuppliersLeadershipReport OutRetail Home Depot LowesDorFab:DorFab:Lawrenceville,Lawrenceville, GAGACohesive Supply Chain View Eliminates Disconnects111.1.1What Background Information on the Company or those who selected theproject was provided to better Understand the context of the project? (2/2)Insurance,Registration &Permit – 15%Driver 25%EMI – 25%Fuel – 35%Approx 65% Cost isFixed Cost. OnlyTAT can reduce thiscostIndian Freight Industry is operating at 50% of Efficiency of global Benchmark126

1.2.1How was the Gap or Opportunity brought to the attention of the projectIdentification group? (1/3)UPSIZE- Leverage 100K above 38% volume contributing customers toupsize from 9MT to 16 MT- Maximize IU movements from 16MT manual to 40” trailerPalletizedThroughput per location [PC MM]4xPALLETIZE- Cover untapped areas like ROM, East, Karnataka, Rajasthan, MP- Move to 100% in key locations like Mumbai- Transform IU movements from manual to Palletized through automation/ 2-WayxYr 2015Yr 2019-20IMPROVIZE TAT- Reduce Distributor delivery TAT from 46 hours to 24 hours- Move to staging at all locations with single-piece-flowloading- Maximize transport visibility to have better controls131.2.1What is the Gap ( Problem Solving ) or Opportunity? ( 2/3 )Opportunity:Vehicles TAT of 2.5 to 3 daysVEHICLE TAT HISTORY2015607267TAT IN DWADABANGALOREAPMAHKTKBusiness Case:Our freight costline consists of 72% two-way dispatch volume which hasFixed & Variable cost components. If we want to impact our freight cost,reducing fixed component becomes paramount. Hence reducing Fixed componentby reducing TAT of vehicles is important147

1.2.1What area of the organization had the gap or the opportunity? ( 3/3 )Manufacturing Excellence – Engineering & Packaging Innovations to drivecompetitive advantagePlanning – Nimble Supply Chain nurturing Emerging product categoriesLogistics & Distribution – Single Touch, Scale Logistics in a GSTenvironmentStewardship – Anticipate & act ahead of time to evolving Regulatory &Environmental frameworkLeverage Technology – Digitization to drive Visibility, Productivity &EfficienciesA Future Ready Supply Chain Architectures - Consolidation with reducedComplexityLean Supply Chain Cost Structure that remains ‘Flat-to-Prior’151.2.2What data was generated to help select the project? ( 1/3 )TAT at Three stages in HrsNO OF TRIPS IN AMONTH17151315151414131111972010 2011 2012 2013 2014 2015Huge Trip reduction inlast 2 years due toDistribution Modelchange454035302520151050392015 Situation7058.560504030720410Plant TATDepot TATDistributorTAT42.5Plant TATDepot TAT0Distributor TATFrom 2010 to 2015 it has been observed that panIndia Distributor and Enroute TAT was increasingresulting in detention at various points and thushuge Total TAT168

1.2.2What method and /or tool were used to assess or prioritize the need forthe Project?( 2/3 )Will the approproate level ofmanagement invest its time & budgeton reviewing, supporting & ensuring thesuccess of this project?1.0Can we involve the necessary span ofstakeholders needed to gainacceptance as we conduct the project?1.0Methods / toolsCan the project transferable to otherareas, functions or business units?Is the project aligned with businesspriorities? (Aligned with Finance,business impact, key measures,KPIs, RPN? A must-do projecr not anice-to-do)Can benefits be credibly quantified?(intangible benefits 1, INR 50MM 2, 100MM 3, 150MM 4,200MM 5)Can benefits be credibly quantified?(intangible benefits 1, INR 50MM 2,100MM 3, 150MM 4, 200MM 5)Is a data & measurement systemavailable, and if no, would getting it becost-effective?Is the project aligned with businesspriorities? (Aligned with Finance,business impact, key measures, KPIs,RPN? A must-do projecr not a nice-todo)Strategic %0.11.00.21.03.304.6%BrainstormingPercent of ixJDIKaizenQuick win / ReplicationsWorkshopProjectselection matricSix Sigma methodSimple in natureCODEDATABENEFITReduce TAT of VehicleA203,200,00050Reduce DetentionB201,048,57650BBD ReductionC31759,3755Blow ing P2 pressure reductionD11,419,85720Yield ImprovementE312,476,09950ACTION ITEMComplexityAnalysis(Rev. Order)COMPLEXITYSLE ImprovementF11,889,56820Checker ReductionG31537,82420Complicated 3-4 months171.2.2Why these methods / tools are used to select the project? ( 3/3 )Methods / toolsWhy? Understand the internal/external Customerpain area Indirect impact on our own people &customer may be much higher than costimpactBrainstormingProjectselection matric Based on the impact on Business Replicable across the organization quicklyCODEDATABENEFITReduce TAT of VehicleA203,200,00050Reduce DetentionB201,048,57650BBD ReductionC31759,3755Blow ing P2 pressure reductionD11,419,85720Yield ImprovementE312,476,09950ACTION ITEMComplexityAnalysis(Rev. Order)COMPLEXITYSLE ImprovementF11,889,56820Checker ReductionG31537,82420 Understand the future Risk & requirements Proactive actions to be more competitive189

1.2.3What Goals ( organizational and / or local) , performance measures, and/or strategies were the project expected to impact ? ( 1/3 )Destination Truck Type forCustomer Loading &UnloadingSolutions tominimize educeTransactionsBuildCapableVendors Upsize to theright truck typefor the rightmovement type IncreasePalletizedTransportation tomultiply dockproductivity &throughputDestination Truck Type for IU Identify and buildvendor base tohelp migrate tothe destinationSupply Chain Strategy - ScaleLogisticsConsumer Centric Supply Chain191.2.3What was the relationship between the stated measure & perceived gapin 1.2.1 ? ( 2/3 )Where we are?What we are working on?Future Plan DestinationReducedTrack &TraceDemandRFIDVariabilityDay 1Reduced UnloadingDetentionSlotPlanningOrderStaging,Pool Sizing48hours36hours110-120 INR MMDynamicSchedulingDoubleDriversNight Unloading30 hours25-30 INR MM50 -60 INR MM2010

1.2.3What was the problem / project objective statement that express wherethe organization want to be at the end of the project ( 3/3 )Project Name:Project #:Project Start/End Dates:Vehicle TAT ReductionUmesh MadhyanProject Lead:Dinesh JadhavExecutive Sponsor:Team Members:Project Costs: (include required capital, expenses)BN Sarkar, Shivanana Prabhu, B Sriram, Rajeev Singh, Tarun Sawhney, Sanjay Sahai,Kunal Sharma, Prashant Sinha, Akansha Tyagi, North Team, KTK Team, AP Team,Gujarat Team, East Team- Capital:Novire software- Expenses:Maintenance ChargesMission/Project Overview:Total Freight consists of 80% two-way volume out of which variable freight consistsofAnd Fixed cost consists of fixed vehicles. If we are able to impact the Fixed costof Freight costline, then reducing TAT of vehicles is paramount- KPI's:Vehicle TAT – Gate Exit to Trip EndP&L Line ImpactFreight CostObjectives: (include beginning & ending KPI's)Net Benefits:Beginning TAT – 72 hrsTarget TAT – 24 hrs for 150km36 hrs for 150kmIn Scope:Saving Opportunity2017 - 3-4 CrOE Tools to be used:Transportation, Warehouse, Distributor Model, FinanceprocessesOut of Scope:KPI measurement, Process MappingControl Chart, Pareto,Assumptions:Risks & Constraints:Project Milestones:Dependencies:SeasonalityPhase 1: 2016Phase 2: 2017Define : Feb 2017-Mar 2017Measure : Mar 2017 – Apr - 2017Analyse: Apr 2017 – May 2017Improve: May 2017 – Jun 2017Control : Jul 2017- Aug 2017Order Cut off timeNovireProject Lead Time: (Total time required to implement would be one full financial yearOther Key Stakeholders & Areas Affected:)6 monthsSales211.3.1SHow were the stakeholder groups identified? ( 1/2 )IPOCSupplierInputProcessOutputCustomerRTM TeamNovire integration Report Dynamic time slot planningTAT ReductionHCCBTransportation TeamFMS dataVehicle Pool Size optimitation Freight Cost Reduction RTM TeamShipping Team Distributor unloading timeDetention reductionDetention Reduction Supply ChainOperations TeamNo Entry Exit timeOrder StagingRFIDDay 1Night UnloadingCorporateOECore TeamStakeholder velopmentShippingTeamSupply ChainOEOEM2211

1.3.1What or who were the stakeholder group? ( 2/2 )Stakeholder groupsBack End managementTeamSteering CommitteeCore Execution TeamOE TeamDesignationsRolesISupply Chain HeadZonal Vice PresidentZonal Supply Chain HeadHeadFactory ManagerZonal Finance HeadCTransportation ManagerShipping ManagerRTM FE/ BE ManagerR&AOperational ExcellenceTeamRR – ResponsibleA – AccountableC- ConsultI – Inform231.3.2What knowledge or skill sets were determined to be necessary forsuccessful completion of the project? ( 1/3 )Determined Skills Set Analytical Skills Design ThinkingSkills/Knowledge/Abilities Problem Solving skills Change management Skills Functional Knowledge Product Knowledge Technical skills2412