Coca-Cola bottler deploys its High Performance System throughout Mexico

high performance system

Executive Summary
Coca-Cola FEMSA, the largest Coca-Cola bottler, needed to standardise business systems across the organisation. With plants in Mexico originating from several separate bottling groups, this was no small feat. Its High Performance System — powered by TRACC — led the way. Focused on building long-term capability, early results have been impressive.

 

Situation
Coca-Cola FEMSA’s plants in Mexico originated from several separate bottling groups and although considered among the best-performing plants ihigh performance system resultsn the Coca-Cola system, these plants had varying operating cultures and practices. The group’s operational leadership in Mexico established a management framework to standardise business systems across these operations. The High Performance System — focusing on shop floor teams and operating practices — forms part of this framework.

Coca-Cola FEMSA selected TRACC to assess the practices at one of its leading plants, Cuautitlán. Based on this assessment, and after carefully reviewing the TRACC content and implementation approach, the group chose TRACC as the framework for strengthening and supporting the High Performance System throughout its Mexican plants.

Action
The strategy to reinforce the High Performance System became known by its Spanish acronym, Prácticas Operativas del Piso, or ‘POP’. FEMSA made significant progress in its POP implementation, such as the following:

  • Establishing an Executive Leadership Committee and 11 Site Steering Committees (SSCs); selecting one pilot bottling line per plant and training 11 Implementation Task Forces (ITFs)
  • Training 11 plant-based process standardisation and development specialists to serve as POP facilitators in TRACC and the Profit Improvement Project (PIP) process
  • Training internal trainers in delivering TRACC shop floor and team leader training modules

Results
Coca-Cola FEMSA’s operational leadership is squarely focused on building long-term capability, and early results have been impressive. Although Coca-Cola FEMSA is deploying the POP system aggressively, they are building it to last by ensuring it is fully integrated with their established business systems.

 

Company Background
Majority-owned by the Fomento Económico Mexicano SA de CV (or FEMSA) and minority owned by the Coca-Cola Company and public shareholders, Coca-Cola FEMSA is the world’s largest Coca-Cola bottler, and the largest in Latin America. At the time of writing, it accounted for almost 10% of worldwide Coca-Cola sales. The group operates 67 plants in nine Latin American countries, bottling and delivering more than
4 billion unit cases a year. This translates into serving 70-plus world renowned beverage brands through a network of more than 2.8 million retailers to more than 338 million consumers.

Disclaimer
This resource has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained herein without obtaining specific professional advice. Competitive Capabilities International (CCI) does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this resource or for any decision based on it.

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