Evaluate The Implications For Operations Management In Organizations

Lean Operations Name Institutional affiliation Lean Operations Coca-Cola vs. PepsiCo Introduction The lean operation is a system developed by the Japanese firms in the 1900s as a solution to the limited resources in the country. The system aimed at reducing waste and inefficiencies from the sourcing of raw products to the marketing of the final product. Lean was however popularized by Toyota. Companies that implement Lean are characterized by reduced wastage, continuous improvement, efficient teams, and high quality of products or services, a small amount of inventory, pull rather than push marketing, visual controls, less waiting time and minimal movements within the firm. Coca-Cola and PepsiCo are the leading beverage companies in the world. They have been in existence for the last one decade. However, increasing competition from smaller companies has forced the two to improve their quality while lowering their prices. To retain their initial profit margins, PepsiCo and Coca-Cola had to improve their overall efficiency with each company eliminating wasteful processes and focusing on processes that create customer value. Inventory methodologies and model(s) Coca-Cola inventory consists of raw materials and packaging as well as finished goods awaiting distribution. The company employs a perpetual inventory management system whereby inventory