Table of Contents

Introduction ................................................................................................................................ 2 Pepsi ....................................................................................................................................... 2 Process .................................................................................................................................... 3 Problems ..................................................................................................................................... 4 Pet Bottles ............................................................................................................................... 4 Labeling .................................................................................................................................. 4 Improvement............................................................................................................................... 5 Pet Bottles ............................................................................................................................... 5 Before Improvement ............................................................................................................ 6 After Improvement .............................................................................................................. 6 Packaging ................................................................................................................................ 7 Before Improvement ............................................................................................................ 7 After Improvement .............................................................................................................. 7

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Introduction
Pepsi
Pepsi is the brand of PepsiCo. Pepsi was first introduced in Pakistan 38 years ago and established a plant at Multan in 1971 by Riaz Bottlers Company, who are responsible for introducing "Pepsi Company of U.S.A. Since that period they are in the production and promotion of Pepsi Cola. The story of Pepsi International starts from North Carevalino store that store was owned by Caleb Bradham. He prepared a drink called drink of brad. In 1903 Caleb Bradham registered it as Pepsi Cola, made his own company and soon starting its sales. In 1909 more than 24 American states gave license to Pepsi for sale. Pepsi Cola was first introduced in 6.5 ounce bottle. Pepsi was first registered in 1932. The market in Pakistan is surely dominated by Pepsi. It has proved itself to be the No.1 soft drink in Pakistan. Now a days Pepsi is recognized as Pakistanis National drink. In 1971, first plant of Pepsi was constructed in Multan, and from their after Pepsi is going higher and higher.

Reference Ghulam Mustafa Quality Assurance Officer 3N Gulberg Pepsi Cola

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Process
We are taking the pet bottles and labeling. The process of buying and using these supplies for the production is considered in this project. The recommendations to improve the process are given. November 1st is the world quality day by American Society for Quality (AQS). And in the third world countries the whole month is observed as quality improvement month. We observed these improvements in Pepsi during this time.

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Problems
Pet Bottles
We are taking plastic pet bottles of Pepsi of 0.5 liter. The problem in pet bottles is that in the production process or in market, the bottle can burst if it is not of a good quality. In the production process, the bottles move on the conveyer for filling and processing. The conveyer moves on acid and continuously acid is sprayed on the conveyer and bottles. If the plastic is of not a good quality, the bottle can burst. The second problem occurs when the bottles reach in market and some of them may burst. The new bottles are required to replace these burst bottles to fulfill the demand of the market. The burst bottles are counted in different lots on different days. The production department sends the order to procurement department and then the reorder of these bottles is sent to supplier. The supplier takes time to prepare and send the required lots of bottles. In one month on average order of 3 lots was sent, each taking 3 days. In one month time period, there was a delay of 9 days. The work which was to be completed in 30 days, now it will take 39 days to complete.

Labeling
The second problem is in labeling process. The company buys labels from three different suppliers; Al-Aziz, Roto Tech and Pack Man. They supply in roll of 1 lac labels. The packing is done in 3 equal shifts of 8 hours completing 24 hours of the day. The machine is continuously run 24 hours. The size of the label is 112mm. The machine works start deviating from 112 mm to the range of 107mm-119mm after some hours and in the next shift it deviates much from 112 mm. In this situation the machine must be switched off and enter the values again. It takes 1 hour to start working on normal. It occurs in every shift means 3 times a day. This wastes 3 hours a day.

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Improvement
Pet Bottles
The problem here is the quality of pet bottles. Pepsi is continuously trying to improve the process. So they called upon 200 Quality Technicians to improve the process. They put the drop boxes and everybody gave suggestions for improvement. For a quality product the supplier of your supplier also should be best. Pepsi buys pet bottles from three companies; InstaPlast (Pakistan), Ecopack (Pakistan) and Gatron (company based in China and Bahrain). To know the supplier Pepsi run the Supplier Traceability Program. The pre-form of pet bottles is resin, through which the pet bottles are made. The resin has an Intrinsic Value (IV). The more is IV the more will be strength of the bottle and vice versa. Pepsi told the suppliers to

take the good quality resin to make the bottles. So that it will improve the pet bottles quality and the bottles will not burst. The time which was taken before to reorder 3 lots in 9 days each lot having 3 day process will be not there now. There is reduction of 9 days in the process.

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Before Improvement

After Improvement

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Packaging
The second problem was the packaging of the bottles. Every label is of the size of 112mm. The machine starts deviating after some time and breaks down after 8 hour shift. It takes 1 hour to start working again. The three suppliers give 1 lac label roles on different costs depending on quality. Al-Aziz has the lowest cost and has more deviation, Roto Tech is in mid and PackMan has the most having less deviation. One solution is to buy only from PackMan but it will increase cost. There are three shifts of 8 hours each completing 24 hours of the day. And every shift has its own shift supervisor. The second option to reduce this breakdown is to tell every supervisor to reset the values to default before starting his shift. After every 8 hour shift, the new supervisor will reset the machine values to default and it will run smooth for the shift. It will take 10 minutes for every change and the machine will not breakdown. In the whole day it will take just 30 minutes of production stoppage. Before that there was a 3 hours production stoppage. Before Improvement

After Improvement

Before it took 3 hours and after improving the process now it takes just 30 minutes. There is improvement of 2 hours 30 minutes.

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