1. Define the micro-operations in the Coca-Cola World.

Assignment (substitute for the midterm exam)
The history of Coca-Cola started in 1886 when the interest of Dr. John S. Pemberton, an Atlanta
pharmacist, led him to develop a distinctive flavored soft drink that could be sold at soda fountains.
He made a sweet syrup, brought it to the pharmacy in his neighborhood, where it was combined with
carbonated water and deemed “excellent” by those who sampled. Dr. Pemberton’s wife and
bookkeeper, Frank M. Robinson, is credited with calling the “Coca-Cola” product as well as creating
the unique, trademarked script that is still used today.
Before his death in 1888, just two years after producing what would become the world’s #1 sparkling
beverage, Dr. Pemberton sold parts of his company to different parties, with the bulk of the interest
being sold to Asa G. Candler, an Atlanta businessman. Under Mr. Candler’s leadership, Coca-Cola
distribution spread beyond Atlanta to soda fountains. Impressed by the increasing demand for CocaCola and the ability to make the drink portable, Joseph Biedenharn installed bottling equipment at
the rear of his Mississippi soda fountain in 1894, becoming the first to place Coca-Cola in bottles.
Large-scale bottling was made possible just five years later when Tennessee obtained exclusive rights
to bottle and distribute Coca-Cola in 1899, three enterprising business people in Chattanooga. The
three businessmen bought Asa Candler’s bottling rights for a mere $1. Benjamin Thomas, Joseph
Whitehead, and John Lupton created what became the bottling system for Coca-Cola worldwide.
Among the biggest obstacles for early bottlers were competitor imitations of the product coupled
with a lack of quality in the packaging among the 1,000 bottling plants at the time. The bottlers
decided that a regular and distinctive bottle was required for a distinctive beverage, and the bottlers
accepted the unique contour bottle in 1916. The new Coca-Cola bottle was so iconic it was visible in
the dark, and it effectively separated the company from the competition. Trademarked in 1977 was
the contoured Coca-Cola bottle. Over the years, artists around the globe have been influenced by the
Coca-Cola bottle – a collection of which can be seen at the World of Coca-Cola in Atlanta.
The Coca-Cola Company (NYSE: KO) is the largest beverage company in the world, refreshing
customers with over 500 sparkling and still brands and almost 3,900 drink options. Driven by Coca-
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Cola, one of the most popular and recognized brands in the world, the portfolio of its business
includes 21 billion-dollar brands, 19 of which are available in small, small, or no-calorie varieties. The
following brands are Diet Coke, Coca-Cola Zero, Fanta, Sprite, Dasani, Vitaminwater, Powerade,
Minute Maid, Simply, Del Valle, Georgia, and Gold Peak. The Coca-Cola Company is the No. 1
distributor of both sparkling and still drinks through the world’s largest beverage distribution
network. Consumers in more than 200 countries enjoy more than 1.9 billion servings of The CocaCola Company’s beverages every day.
Visitors to Atlanta’s Coca-Cola World have the chance to sample more than 100 Coca-Cola drinks
from around the world. Guests can also try their hand at “inventing” new beverages using the CocaCola Freestyle®
fountain dispenser to combine flavors. The touch-screen computer has the potential
to dispense various flavor combinations of over 100 standard and low-calorie beverage brands.
Near all tourists arrive by car or bus at the Coca-Cola World. Car parking is arranged in four areas and
has a total capacity of 520. Separate spaces in the area close to the main exhibition could hold 30
coaches. Records indicated that 22 pre-booked coaches and about 330 cars arrive in the Coca-Cola
World on a typical weekday. There are usually about 28 visitors per coach and two by car. The
average stay time of Coca-Cola World visitors is three hours.
The booking system allows organizers to determine the time of arrival for their group, and pay a
deposit of $18. In any single group, the maximum size is set at 60 individuals. Coca-Cola World
schedules the arrival of groups at regular times during the day. Due to the difficulty of calculating the
duration of journeys on the route, coaches often arrive late and miss their agreed times. This
contributes to visitor queues at the entrance to the show during busy times.
The total number of visitors during school terms in a typical week is:
Monday – Friday 60 percent (spread across the five working days)
Saturday 40 percent
Sunday N/A
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Entry into the lobby itself is through double doors. Here a ticket collector station monitoring the
number of visitors who enter. On average, 15–20 (almost 17.5) visitors are allowed in every two
minutes in a busy time.
The first component of the tour is The Loft, home to a combination of almost 200 local and foreign
pieces reflecting over 125 years of Coca-Cola memories. The Loft can accommodate up to 50 guests.
A visitor stays there, on average, for 12 minutes.
The next stop is The Vault of the Secret Formula. It has seating for 12 and the standing space surrounding
it. At peak times, this room can hold as many as 20 people. Before the doors shut, there is an interactive
four-minute presentation describing Coca-Cola’s early days, using taped voices and three static,
illuminated scenes. It takes an average of about five minutes to fill and empty The Vault of the Secret
Formula room. Visitors may either come from The Loft or from the Bottle Works room to The Vault of the
Secret Formula.
The Bottle Works is situated behind The Vault of the Secret Formula. The tour consists of a three-station
route. There is a video room at the first stop, with 35 seats. Visitors in this room watch a short video that
shows the factory. After one-and-a-half-minute halt, the guide takes the visitors to the next stop. They
typically pass the preceding group on the way back from the second stop. This caused some confusion and
delay as the groups went through a narrow passageway. The delay takes half a minute, on average. The
tour’s Bottle Works section is typically completed in about eight minutes, except the setup time.
Then there’s the Coca-Cola store, which sells a broad range of Coca-Cola products. The bulk of the
items are on sale at self-service. Four checkouts are operating. Observations indicate that, on
average, one client can be served every 12 seconds during busy times.
Visitors arrive at the Coca-Cola restaurant just after the store. There is a single entrance to the restaurant,
and it is self-service with five serving points grouped in a line. The labels of the four serving points are:
‘Sweets,’ ‘Burgers,’ ‘Mediterranean’ and ‘Chef’s Choice.’ The fifth is a point widely used to serve coke. The
food selection set could not be seen from the restaurant entry. Visitors enter, observe the different serving
points and then decide on the type of food and so decide which queue to join. This takes a bit of time,
particularly in the case of some older people and families. The success of the adjacent serving points
‘Burgers,’ ‘Chef’s Choice,’ and ‘Coke’ results in extreme congestion during busy
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hours. Payment shall be taken separately at each point of sale. Customers join the seating area with their
options. The seating area is a spacious, airy space offering a relaxing atmosphere. Sixty tables of various
sizes come with 200 coverings. On average, people stay in the restaurant for 30 minutes. Tables are ready
and washed promptly. Most Coca-Cola World guests enter the restaurant.
Questions
1. Define the micro-operations in the Coca-Cola World.
2. Identify the setups in the Coca-Cola World tour service process.
3. Calculate the hourly capacities for each micro-operation.
4. Should the measurement of capacity take into account both the processing time and setup (or
idle time) or only the processing time? Justify your answer.
5. The Coca-Cola World service process is demand- or capacity-constrained?
6. How could Coca-Cola World improve its service process?
7. What is the main source of variation for Coca-Cola World and how could this va