Corporate Headquarters building in Renca

Glossary

Andina: Embotelladora Andina S.A

AMFE: It is a systematic analysis method used to identify and prevent failure modes of a product or process evaluating the severity, occurrence and detectability, by which the risk level is estimated allowing us to prioritize the causes on which action must be taken in the design, installation, implementation, start-up, and manufacturing of a product or process to avoid the appearance of these failures, ensuring the quality of the product or process.

 Ambassadors: Communication program whereby managers have communicated systematically and effectively Coca-Cola Andina\'s pillars and values to all employees.

APO: Advanced Planner and Optimizer, software that supports the management of the Organization to transform a linear supply chain into an adaptive supply network with dynamic planning. Area: Expression with which Coca-Cola Andina staff refers to management areas and sectors in the normal course of business.

ASECOM: leading market research firm in Latin America, with coverage in 17 countries in the region. Specialist in market and consumer research and analysis.

BASIS: system that supports the sales process of the company, a specific development for the Coca-Cola system.

BHM: Good practices/ manufacture or operation habits.

BP: Business Plan, Yearly business plan.

Brix: The Brix scale is used in the food sector, to measure density referred to soluble solids (sugar) in the products.

BQM: Beverage Quality Management. 

Call-Center: Coca-Cola Andina\'s Contact Center

CIC: Consumer information center.

Clients: those who receive the product directly from Coca-Cola Andina or through other clients and sell it to the consumer. For example, wholesalers, supermarkets, fast food, service stations, kiosks and restaurants.

Cluster: Customer segmentation according to their sales volume.

COBIT- Control Objectives for Information and related Technology: is a set of best practices for the handling of information created by the Information Systems Audit and Control Association, (ISACA), and the IT Governance Institute (ITGI). 

Collaboration Level: Customers\' segmentation criteria which in addition to sales volume, considers the amount of presentation of products or items sold. It also measures the level of adjustment to policies, strategies and plans proposed by the Company.

Consumers: are those who consume products manufactured and distributed by Coca-Cola Andina.

COSO- Committee of Sponsoring Organizations of the Treadway Commission: This Committee of companies provides a guide of best practices on critical aspects of the organization such as: corporate governance, ethics, internal control, risk management, fraud, and financial reporting.

CO2: carbon dioxide chemical formula used for carbonating beverages. It usually refers to the amount of this gas in the product 

CSC: Client Service Center

CSR: Corporate Social Responsibility. Actions\' program to ensure a socially responsible behavior of the company and its staff.

DMAIC: Tool for the improvement of processes defined in the Six Sigma methodology whose acronym means: define, measure, analyze, implement and control.

DMIC: a reduced version of DMAIC, where the stage of analysis is irrelevant.

Drop Size: Number of cases delivered customer per visit.

Early Management: It is one of the pillars of TPM. Management of a new process or product, oriented to reduce the time from initial development to large scale production, achieving a quick, free of difficulties and correct start-up from the beginning.

EBITDA: Operating Income plus depreciation. Operating Income includes the following items of the Statement of Income by Function included in the Financial Statements reported by Chile's Superintendence of Securities and Insurance:  Net Sales, Cost of Sales, Distribution Costs and Administrative Expenses.

EMS: TCCC\'s Environmental Management System.

ERP: Enterprise resource planning systems are systems of information management to integrate and automate many of the business practices associated with operating or productive aspects of a company.

EUR: Energy Use Ratio, key indicator of energy consumption.

Execution: tasks to be carried out at the point of sale in order to ensure the implementation of the business strategy.

Focus Groups: qualitative technique of collecting information of exploratory type that consists in making collective and semi-structured interviews on a specific topic with a small number of people, with homogeneous features and interests; these are led by a trained facilitator.

GSM: General Shareholders' Meeting

HACCP: Hazard analysis and critical Control points. System that establishes points of chemical, bacteriological and physical risk analysis in food production. 

HIRA: hazard identification and risk assessment. 0.2

HP: Operation and IT platform management service supplier.

Ideas Strength: Expression which is the Vision of Coca-Cola Andina is internally known.

Interested parties: Stakeholders.

IPSOS: market research consultant.

Interlock Meeting: Inter-areas meeting considering tactical and operating areas in order to agree, integrate and monitor plans and results of Coca-Cola Andina\'s logistics chain. It has the daily participation of Sales Planning, Production and Logistics; the rest of the areas involved monthly, except if specially convened due to a particular situation. The General Manager, CdG managers and middle managements participate weekly.

ISSCOM: Information Sharing and Standardization Committee. Committee that developed standardized codes used by the Coca-Cola system.

ITIL: Information Technology Infrastructure Library, it is a framework of best practices, joint management procedures designed to achieve quality and efficiency in the operations of information technology (IT).

JA: Junior Achievement, international educational non-profit entity. 

Key accounts.  Customer segmentation criteria. Identifies clients according to the origin of their regional, national, or international headquarters.

Map Info: geographic information system that integrates hardware, software, and geographic data useful to store, manipulate, and analyze information, in order to solve planning and management problems.

Mundo Andina: Internal communication magazine addressed to employees.

MP: Master Plan, five-year business plan.

NC: Non-compliance

NYSE. Nueva York Stock Exchange.

Outlook: Tool with which results, financial developments and working capital of the company are projected, simulating critical variables and performance indicators.

PCC: Price, contribution and coverage or Critical Control point 

PRC:. Price and relative contributions.

PDCA: Improvement cycle involving the stages of plan, do, check and act.

Perfect order: Indicator that aims to measure the company\'s ability to meet the needs of customers according to the value proposition Coca-Cola ANDINA has defined and is committed to. Any failure or reprocessing in compliance with customer requirements affects this indicator.

Pet: Polyethylene terephthalate. Plastic used in disposable beverage containers.

PMP: Performance management program.

PPE: Personal protection elements.

POP (Point of Purchase): advertising material that is placed at the point of sale.

PRE: Problems of obvious resolutions.

P&L: Profit and loss statement

QCF: Quality critical factors.

RED: Right Execution Daily, software through which the capturing process of execution audit information is supported.

Ref-pet (refillable pet): pet bottle that supports reuse in a safe manner, since the material possesses adequate density to support the processes of collection and sanitation thereof.

Revenue Management: Set of practices, programs and decisions that lead to optimize income based on customers purchasing opportunities.

Returnability Mix: Proportion of finished products packaged in returnable packaging against non-returnable.

ROM: replicable optimal model. 

SAP (systems, applications and products): ERP used to support much of the operation of the company

Sarbox/Sox:Sarbanes-Oxley: Federal law of the United States that sets standards for management councils and directors and accounting mechanisms of all companies publicly traded in the United States. It introduces criminal responsibility for the Board of Directors and the requirement of certification of internal control.

SCALE: TCCC\'s  global project to compare processes and identify best practices and system tools.

Scuffing: Bottles streak defect

Securities Exchange Commission (SEC): Agency of the United States governing the financial market and the companies listed on the stock exchanges in that country. It is equivalent to the Superintendencia de Valores y Seguros de Chile or the Comisión Nacional de Valores de Argentina

SMS and OH: safety management system and occupational health.

SKU: Stock Keeping Unit. Code that identifies the products.

SWG: Solid Waste Generation, key indicator to control the generation of solid waste.

SWOT: It is a tool that allows you to form a picture of the situation of a project or particular analysis, thus allowing a diagnosis and making decisions commensurate with the objectives and policies formulated. The term SWOT is an acronym formed from the first letters of the words strengths, weaknesses, opportunities, and threats

SWR: Solid Waste Recycling, key indicator to control recycling

Success picture: Set of good practices that represent excellence in execution at the point of sale; ensuring through them the alignment of business objectives with performance in the market.

TCCC: The Coca-Cola Company

TCCQS Evo3: The Coca-Cola Quality System Evolution 3.

TPM: Total Productive Maintenance implementation Program, that has as its pillars autonomous maintenance, scheduled maintenance, focused improvements, early management of equipment and processes, training, quality, and safety and environment.

UC: Unit Cases, conventional product unit used to measure sales volumes of beverages in The Coca-Cola system worldwide. It is equivalent to 24 bottles of 237cc. or approximately 5.678 liters.

WUR: Water Use Ratio, key indicator of water consumption.

5S: it is a Japanese management technique based on five simple principles (5 terms that begin with the letter \"S\" in Japanese): Organization, Order and Cleanliness; Standardization and Discipline.