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Essay example - coca cola
Finance & Accounting
Pages 6 (1506 words)
The research delves on the importance of the lean production process. The same research focuses on Coke’s implementation of the advantageous lean production strategy. Coke’s lean production process increases…
Extract of sample
The waste reduction strategies do not reduce current production’s quality level. Initially, the lean production strategy was crafted to cater to the production line of one of Japan’s top selling car models, Toyota. Toyota’s lean production cropped up after World War II. Japan was just recovering from the war loss. Lean production is a continually innovative process. Daily, the production line and staff personnel as well as production management team continue to find ways to reduce production wastes. Lean production reduces the avoidable costs, expenses, and costs associated with typical production processes. The typical production process includes employees accidentally generating avoidable wastes, expenses, and costs to delay the production process and delaying (reducing) revenue generation.
Further, the lean production strategy can cover all the business entities’ activities. The activities may include the design of the product as well as the production process. The activities include the production of the company’s saleable or finished products. The activities include the marketing department’s product delivery and selling processes (Jones, 2013).
Coke implements several lean production strategies. The strategy significantly reduces production expenses. Initially, coke marketed its quality coke products as having the same taste around the world. To do this, coke used only one water source. The singular source came from only one place. The company exported the coke products to different countries around the world. However, the cost of shipping the coke products increased as the distance between the original home production facilities to the country of destination (Marcotte et al., 2012).
Consequently, the higher shipping and production costs of products sold in very far away countries generated a lower net profit than coke products sold in places nearer the production facilities. As the distance between ...
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