FMS MBAEX 9407| OPERATION STRATEGY | Dr. ..

OPERATION
STRATEGY
(MBAEXE-9402)

Internal Assignment
On
Tools offered by a cross-section of Govt.
agencies, NGO etc. to improve their
sustainability

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Topic Tools offered by a cross-section of Govt. agencies,

NGO etc. to improve ..their sustainability.

1. Energy tracking tool.

2. EPA Lean Manufacturing & Environment toolkit.
3. GEM - Global environment initiative sustainable development planner
and sustainable development gateway.
4. Institute for Industrial productivity, Industrial efficiency and technology
database (IETD).

& how it can use in real life scenario with example.

Provide any two example of Sustainable manufacturing.

COCA-COLA: A CASE STUDY IN SUSTAINABILITY

How does Coca-Cola integrate sustainability into their operations? For

several years its facility in Brampton, Ontario, one of its largest in North
America, has been transforming its manufacturing and distribution to save
energy, reduce carbon footprint, water usage, and material usage. In this
case study we look at the goals, implementation, and progress of the
programs put in place by this $20 billion food and beverage giant.

Coca-Colas 600,000 square foot facility in Brampton houses the plant,

management team, and warehouse. It has three plastic bottling lines,
including a Dasani line; one bag-in-box line producing syrup for national
accounts; one pre-mix line for the restaurant business, and one canning line.
There are 650 plant operators, sales and equipment service representatives,
truck drivers, warehouse employees, management and staff.

Located within the eco-business zone around Toronto Pearson International

Airport, Coca-Cola in Brampton joins the local community of businesses to
collaborate on green projects. Under the stewardship of Partners in Project
Green, businesses participate in programs to reduce energy and resource

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costs, uncover new business opportunities, and address everyday

operational challenges in a green and cost-effective manner. Other
companies in this program include Xerox, Unilever, FedEx, Hewlett-Packard,
Walmart, Kraft, and Loyalty One.

Social and environmental risks are now one of seven business risk categories
and are formally embedded into Coca-Colas enterprise risk management
process. This in turn guides the business processes, including annual
planning, three-year business planning, and internal audit planning. As a
result, sustainability decisions are becoming an integral part of the business
decision making, commercialization and capital management processes, the
three-year business planning process, and customer and supplier
relationships. Highlighted here are some of their goals, implementation, and
progress.

Energy Conservation and Climate Change

The goal is to reduce the overall carbon footprint of our business operations
by 15 percent by 2020, as compared to the 2007 baseline.

The Brampton operation converted to an energy efficient lighting system

that uses 50% less energy and provides 50% more light. These new fixtures
also operate on motion sensors for even greater savings.

In the distribution channels, the company has installed 2000 EMS-55 energy
management devices in vending machines. These devices activate lights and
adjust cooling based on use, leading to improved energy efficiency by up to
35 percent.

In addition, the company installed 1,400 climate-friendly coolers at the 2010

Olympic Games to reduce greenhouse gas emissions by approximately 5,600
metric tons, the equivalent of taking about 1,200 cars off the road for an
entire year.

Finally, 37 heavy-duty hybrid delivery trucks and tractors were introduced to

the Canadian fleet in 2008 and 2009. These vehicles improve fuel
consumption and reduce emissions by about one third and create less noise
and emissions when stopped in traffic.

Water Usage

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The goal is to establish a water-sustainable operation to minimize water use

and have a water-neutral impact on the local communities by safely
returning the amount of water used in the beverages to the local
communities and environment.

A 20% reduction in water use, accompanied by an efficiency ratio of 1.62

litres was achieved between 2005 and 2007. Plant teams focused on: 1)
reducing the water use ratio; and 2) recycling the water used in operations
(wastewater treatment).

To help reach its water usage goals the company developed and used a
water conservation toolkit to identify actions that would conserve water. It
implemented recycle and reclaim water loops through the plants membrane
water treatment system. And it installed a new osmotic water recovery
system designed to reclaim nearly 11 million litres of water for production. In
addition water based container rinsers were replaced with ionized air rinsers
and the lubrication system on all production lines was retrofitted to
discontinue water use, saving approximately 28 million litres of water
annually.

Sustainable Packaging and Recycling

The goals are to: (1) avoid the use of 100,000 metric tons of packaging
materials between 2007 and 2010, (2) recycle or recover more than 90% of
waste materials at production facilities by 2010, (3) increase recycled
content in plastic (PET) bottles to an average of 10% by 2010.

For goal (1), Dasani PET bottle weight was reduced by 30%, saving 493
metric tons of PET. Plastic twist-off closures were designed 24% lighter,
saving 235 metric tons of resin. Also, lighter fiberboard was developed for
Minute Maid products saving 124 metric tons of fiberboard annually. The
company also launched the Plant Bottle, a 100% recyclable packaging made
with up to 30% plant-based waste materials.

Goal (2) was achieved in 2009, ahead of schedule. The team also
implemented a centralized recycling initiative that captures broken,
damaged or expired product packaging from satellite facilities to be baled
and sold to an industrial recycler.

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Investments were made to achieve green innovations in recycling

technologies, renewable packaging materials, vending and cooling
equipment controls and design, and hybrid trucks.

Among the tools used was a proprietary packaging database to identify

opportunities for future packaging material reductions and to benchmark
performance against the global Coca-Cola system. See here for more on
sustainable packaging.

The Coca-Cola operation in Brampton has shown that there are advantages
to thinking outside the box. By respecting the finite nature of the earths
water and resources the operation is implementing innovative business
practices and contributing to the sustainability of communities while meeting
the expectations of its stakeholders.

This case study is based in part on material provided by Partners in Project

Green.

Environmental Protection Agency (EPA) Lean

Manufacturing & Environment toolkit.

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LEAN & WATER TOOLKIT

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Coca-Colas Positive Water Balance Project in India.

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At its facilities in India, Coca-Cola achieved a positive water

balancewhere businesses contributed more water to the
communities than they consumed in 2009 and 2010.

Savings of over 3 billion liters of water in 2009 and over 4

billion liters in 2010 have been verified externally by Deloitte
LLP.

As part of these efforts, Coca-Cola India has.

Reduced water usage in manufacturing by 45 percent since

2005.

Partnered with government agencies and local organizations

to increase peoples access to clean water.

Worked with agricultural universities to promote direct

seeding of rice paddies, which allows seeds to be directly
planted into the soil (without the need for a nursery) and
avoids the need for flood irrigation. (This reduces water use
by up to 30 percent.)

Saved over 5 billion liters of water from 6,500 acres of direct-

seeded paddy fields.

In 2010, Coca-Cola began working with the Nature

Conservancy to explore ways to credibly achieve a positive
water impact across its global operations.

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Topic - Gobal Environment Initiative (GEM)

Sustainable Development Planner and Sustainable
Development Gateway.

Coca-Cola Enterprises is supporting the United

Nations Sustainable Development Goals

United Nations world leaders laid down 17 Sustainable Development Goals

(SDGs) to end poverty, fight inequality and injustice, and tackle climate
change by 2030. Our bottler Coca-Cola Enterprises is helping to support
these goals through its own efforts to create a more sustainable world.

1. No poverty
We are committed to supporting the communities in which we operate. We
aim to invest 1% of our annual pre-tax profit to support charitable and
community partners.

2. Zero hunger
In Great Britain, we established a partnership with the charity FareShare to
ensure that any surplus stock is donated to local projects and charities.
Drinks worth an equivalent value of 100k were donated in 2014.

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3. Good health and wellbeing

Obesity is a complex challenge, influenced by many factors. We understand
that diet and calorie intake, including calories in our products can have an
impact on health and wellbeing. We will play our part by reducing calories
across our portfolio by 10% and enabling three million people to be
physically active by 2020.

We're reducing sugar and calories across our drinks.

4. Quality education
We want to help young people gain the skills they need for the workplace.
Through our education centers and partnerships (including Passport to
Employment in France, The Real Business Challenge in Great Britain and JINC
in the Netherlands) we will support the skills development and learning
needs of 250,000 young people each year by 2020.

5. Gender equality
We seek to attract, develop and motivate a workforce that reflects the
diversity of the communities in which we operate. We aspire to have a
minimum of 40% of women in both management and leadership grades by
2025.

Coca-Cola Enterprises supports women in manufacturing.

6. Clean water and sanitation

We protect the future sustainability of our local water sources and undertake
source vulnerability assessments to assess water quality and water scarcity
risks. We use as little water as possible and aim to use 1.2 liters of water for
each liter of product we make. We safely return to nature 100% of the
wastewater from our manufacturing operations.

Water replenishment strategy.

7. Affordable and clean energy

We are part of the RE100 initiative and have committed to source 100% of
our electricity from renewable sources by 2020. This will help us to reduce
the carbon footprint of our products by a third by 2020.

8. Decent work and economic growth

We aim to achieve world-class safety standards and a zeroaccident
workplace. We have also developed our Sustainable Agriculture Guiding
Principles to ensure that our suppliers respect human and workplace rights
across our value chain.

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9. Industry, innovation and infrastructure

Our local economic contribution includes the jobs we provide and the
investments we make. Across our territories, each Coca-Cola job supports on
average a further nine jobs in the wider economy from suppliers and
transport to hospitality and retail workers.

10. Reduced inequalities

We aim to support the skills development and learning needs of 250,000
young people each year by 2020 with our eight education centres and
several education partnership programs.

Coca-Cola Enterprises education centers.

11. Sustainable cities and communities

We are committed to supporting the communities in which we operate. We
aim to invest 1% of our annual pre-tax profit to support charitable and
community partners.

Get involved with our ParkLives scheme, which provides free, fun activities in
local parks.

12. Responsible consumption and production

We support the circular economy and aim to use as little packaging material
as possible and use both recycled and renewable materials. All our cans and
bottles are fully recyclable, our manufacturing sites send zero waste to
landfill.

13. Climate action

We will substantially reduce the carbon footprint of our manufacturing
operations, transportation and refrigeration equipment enabling us to
reduce the carbon footprint of our core business operations by 50% by 2020.
Well also deliver carbon reductions across our wider value chain, including
our packaging and ingredients.

Question: what's the carbon footprint of a Coca-Cola?

14. Life below water

We protect the future sustainability of the water sources we use and aim to
replenish the water we use in areas of water stress. We are investing in
community based water partnerships with WWF in France and Great Britain,
Clean the Beaches in Sweden and Natuurpunt in Belgium.

15. Life on land

The long-term availability of our key agricultural ingredients is crucial to our
business - every bottle of Coca-Cola contains agricultural ingredients that

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start on a farm. We will source 100% of our key agricultural ingredients

sustainably by 2020.

16. Peace, justice and strong institutions

We operate responsibly and sustainability and we are on a journey to create
a sustainable business for the future. Corporate responsibility and
sustainability is at the heart of everything that we do.

17. Partnerships for the goals

We collaborate with customers, suppliers, thought leaders, NGOs and
members of our local communities to grow a low carbon, zero-waste
business and lead change for a more sustainable tomorrow.

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