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UNIVERSITY OF
MANAGEMENT
AND TECHONLOGY
SIALKOT CAMPUS

Subject: Production operation management

Final Project
Submitted By M Husnain Zafar
Student ID: 18012005001
Program: BBA-12

Submitted to Dr. Khalid

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Contents
Acknowledgment..................................................................................................................................2
Company name: PepsiCo......................................................................................................................5
Executive summary...............................................................................................................................5
Company overview...............................................................................................................................5
Services and goods................................................................................................................................6
History of PepsiCo.................................................................................................................................7
Vision statement...................................................................................................................................7
Mission statement................................................................................................................................8
Production operation management / process.....................................................................................8
Production process...........................................................................................................................8
Water processing: cleaning and clarifying....................................................................................9
Water- filtration sterilization and DE chlorination.......................................................................9
Ingredient mixing........................................................................................................................10
Beverage carbonation.................................................................................................................10
Filling and packaging...................................................................................................................10
Packaging of PepsiCo......................................................................................................................11
PepsiCo approach........................................................................................................................11
Support facilities.............................................................................................................................11
Process design.................................................................................................................................12
Product planning / scheduling........................................................................................................12
material requirement planning......................................................................................................13
Material requirement planning......................................................................................................14
Purchase of raw material................................................................................................................14
Sugar quality testing.......................................................................................................................14
Water treatment testing.................................................................................................................14
Syrup testing...................................................................................................................................14
Finished bottle testing....................................................................................................................15
Insurance of different items...........................................................................................................15
Measurement and documentation.................................................................................................15
Forecasting......................................................................................................................................15
PepsiCo intensive strategies...............................................................................................................16
Market penetration........................................................................................................................16
Product development.....................................................................................................................16
Market development......................................................................................................................16
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Who are suppliers of PepsiCo.............................................................................................................17

Who is Pepsi target audience?...........................................................................................................17
Who are competitors of PepsiCo?......................................................................................................17
Strength or Competitive advantage...................................................................................................18
Conclusion...........................................................................................................................................18
References..........................................................................................................................................18
Evaluation rubric of project................................................................................................................19
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Company name: PepsiCo

Executive summary
PepsiCo is an American multinational corporation dealing with snack with
beverages. The company is the worlds largest in the snack and beverage
industry. in terms of revenue for example; the company’s revenue hit a high of
$66.4 billion. The company has a wide range of subsidiaries in its portfolio.
These subsidiaries include Frito lays, salty snacks, Quaker chewy, granola bars,
Pepsi soft drink products etc. Pepsi become first delivered as "Brad's Drink" in
New Bern, North Carolina, United States, in 1893 by Caleb Bradham, who
made it at his drugstore where the drink became offered. PepsiCo design
proper production operation management to develop good quality product of
their customers. PepsiCo made intensive strategies to develop competitive
advantage. Pepsi have many suppliers and customers. Basically target
customers of Pepsi’s are 15 to 35 age people. Pepsi’s supplier spread all over
the world. Pepsi have biggest market share than their competitors.

Company overview
PepsiCo, Inc. Engages within the manufacture, advertising, distribution and
sale of liquids, meals, and snacks. It is a food and beverage employer with a
complementary portfolio of brands, including Frito-Lay, Gatorade, Pepsi-Cola,
Quaker, and Tropicana. It operates via the subsequent enterprise segments:
Frito-Lay North America; Quaker Foods North America; North America
Beverages; Latin America; Europe Sub-Saharan Africa; and Asia, Middle East,
and North Africa. The Frito-Lay North America phase markets, distributes, and
sells snack meals below the Lay's, Doritos, Cheetos, Tostitos, Fritos, Ruffles,
and Santitas manufacturers. The Quaker Foods North America section consists
of cereals, rice, and pasta under the Quaker, Aunt Jemima, Quaker Chewy,
Cap'n Crunch, Life, and Rice-A-Roni brands. The North America Beverages
section consists of beverage concentrates, fountain syrups, and finished goods
beneath numerous beverage brands such as Pepsi, Gatorade, Mountain Dew,
Diet Pepsi, Aquafina, Diet Mountain Dew, Tropicana Pure Premium, Sierra
Mist, and Mug. The Latin America phase covers beverage, meals, and snack
corporations in Latin America location. The Europe Sub-Saharan Africa section
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contains of beverage, meals, and snack goods in Europe and Sub-Saharan

Africa regions. The Asia,

Services and goods

Under the PepsiCo these brands are existing;
 Pepsi
 Dew
 Lays
 Doritos
 Lipton
 Quaker oats
 Cheetos
 Miranda
 7up
 Walkers
 Aquafina
 Tostitos
 Fritos
 Sierra mist

History of PepsiCo
Pepsi become first delivered as "Brad's Drink" in New Bern, North Carolina,
United States, in 1893 by Caleb Bradham,
The original stylized Pepsi-Cola word mark used from 1898 till 1905.
In 1903, Bradham moved the bottling of Pepsi-Cola from his drugstore to a
rented warehouse. That yr., Bradham sold 7,968 gallons of syrup. The
subsequent 12 months, Pepsi changed into sold in six-ounce bottles, and
income multiplied to 19,848 gallons. In 1909, automobile race pioneer Barney
Oldfield was the primary movie star to suggest Pepsi-Cola, describing it as "A
bully drink...Fresh, invigorating, a pleasant bracer before a race." The
advertising subject matter "Delicious and Healthful" turned into then used over
the following decades.
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In 1923, the Pepsi-Cola Company entered financial ruin—in huge element due
to financial losses incurred via speculating on the wildly fluctuating sugar
expenses as a result of World War I. Assets have been bought and Roy C. Loft
become a sweet manufacturer with retail shops that contained soda fountains.
He sought to update Coca-Cola at his stores' fountains after the Coca-Cola
Company refused to give him extra discounts on syrup. Guth then had Loft's
chemists reformulate the Pepsi-Cola syrup components.

Vision statement
Our vision is put into action through programs and a focus on environmental
stewardship, activities to benefit society, and a commitment to build
shareholder value by making PepsiCo a truly sustainable company.

Mission statement
Our mission is to be the world's premier consumer Products Company focused
on convenient foods and beverages. We seek to produce financial rewards to
investors as we provide opportunities for growth and enrichment to our
employees, our business partners and the communities in which we operate.
And in everything we do, we strive for honesty, fairness and integrity.

Production operation management / process

Syrup is sent to Carbo Cooler. During drift of syrup from tanks to Carbo
Coolers, Ammonia and Carbon Dioxide are mixed in the syrup.
In production system empty is feuded from one side. This emplty is washed
and mild check is accomplished to see pleasant of washing.
After mild take a look at bottols exceeded beneath a printer and code is
printed at the bottles, with this code the date of manufacturing and shift time
may be diagnosed.
When all checking manner is carried out the bottles are cased within the
crates.
The complete manner of manufacturing is automatic. It required a touch
supervision. Raw cloth is placed from one aspect and crammed bottles come
out of the process.
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Production process
PepsiCo owns numerous production plants everywhere in the global and the
production of the beverage takes region every day in these units. Most of the
liquids are processed and synthetic at nearby canning and bottling groups.

Water processing: cleaning and clarifying

Water is the most component and it has to be taken care of very crucially. The
water quality makes a great beverage. Water contains several types of
impurities, microbes, organic matter, suspended particles which may affect the
colour and the taste of the beverage. A traditional technical is approach to get
rid of all such impurities which includes the sequence of coagulation, filtration
and the coloration of the water. The process of coagulation includes the mixing
of precipitate of a gelatinous substance into the water, the floc which can be
aluminium sulphate or ferric sulphate. All the suspended particles in the water
are absorbed by the floc and thus become larger in size. The filters easily trap
them.

Water- filtration sterilization and DE chlorination

For the removal of fine floc particles, the water is poured via the sand filters
out. Water is sterilized so that every one the microbes may be removed, which
could destroy the colour and taste of water. The water is accumulated in a tank
and is handled with chlorine. In a couple of hours, the response finishes. The
water is then DE chlorinated with assist of activated carbon clear out. This
removes any left natural fabric. Before the water is exceeded to the dosing
station, its far DE aerated with a vacuum pump.

Ingredient mixing
As in line with the compatibility, the dosing station is filled with taste
concentrates and the dissolved sugar in a predefine collection. Then all of the
elements are transferred to the batch tanks. There, those ingredients are
blended cautiously underneath a controlled condition. The agitation is sorted
beneath manipulated else it will result in undesirable aeration. Flash
pasteurization or UV radiations are used to sterilize the syrups in the saved
within the tanks. Several proportions are used to mix the syrup and water with
each other cautiously and this also regulates the ratios of the drinks. To keep
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away from mixture to get aerated, carbon dioxide is pressurized into the
vessels.

Beverage carbonation
Carbonation is a manner where the liquid is dissolved with carbon dioxide,
which is likewise known as fizz. This is essentially below very excessive stress.
Carbon dioxide releases out of the drink on decreasing the strain. This creates
the effervescent within the liquid. The makes the carbonated water. The
temperature of the liquid has to be maintained under managed situations.
Carbonates are nowadays geared up with computerized cooling structures.

Filling and packaging

He organized beverage is then transferred to the cans or bottles at a totally
excessive fee of float. The cans and bottles are filled to the neck and are then
sealed right away with strain – resistant closures. After the bins are full of the
cold drink, they are kept coming to room temperature which could be very
vital. Containers are then packed and saved into the cartons and are then
loaded to the vans. Now, those are equipped to make your day. Enjoy your
drink.

Packaging of PepsiCo
PepsiCo approach
Packaging plays an essential function in adequately handing over our products
to clients and consumers. As a commercial enterprise, we design our packaging
substance round numerous important standards, such as compliance with food
safety regulations, freshness and nice of the product, environment
sustainability affordability, and customer alternatives, including comfort. At
the beginning of each packaging layout attempt, we stability these criteria to
reach at a final packaging design.
 Strive to design one hundred percentage of our packaging to be
recyclable, compostable or biodegradable.
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 Strive to apply 25 percent recycled material in our plastic packaging via

taking part with our suppliers, assisting to increase consumer schooling,
fostering cross- enterprise and public non- public partnerships, and
advocating for improved recycling infrastructure and regulatory reform,
all of that are required to recognize our ambition.
 Strive to reduce virgin plastic use throughout our beverage portfolio by
means of 35% equating to the removal of 2.5 million metric tons of
cumulative virgin plastic whilst deliberating commercial enterprise
growth. On an absolute this consists of a 20% virgin plastic discount vs. a
2018 baseline.

Support facilities
Support centres are performed in this sort of manner that the direct
operations can features smoothly. Guide centres are vital for operations. Some
of departments to be considered in layout are;
 Inventories, materials and suppliers
 Inspection and quality control
 First aid
 Maintenance
 Safety and security
 Tube well
 Air-conditioning plant
 Transformer
 Equipment for workshop
 Canteen
 Emergency situation analysis

Process design
In the employer system is continuous deliver of pay attention is important
however technique can be automated. Process is flexible and production on
plant can be changed within one hour. Production on plant can be modified
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inside one hour. Production is of big scale and covers a wide vicinity for the
distribution of the product.

Product planning / scheduling

Shamim and organisation works beneath licensee of PepsiCo, as defined in
advance at present shamim and company does not now possess the possessing
of any product. All of its merchandise are in the beginning owned by means of
PepsiCo. New York franchiser offers listen and sets great standards for it
products. Company just follows these requirements and produces liquids.
In a dynamic marketplace the organization can also enlarge, add or relocate
new centres, which means that location choices are made the lifestyles of a
company.
Location decision are important due to following reasons.
 Competition
 Costs
 Hidden effects
 Market related factors
 Tangible cost factor
 Transportation
 Labour availability
 Labour costs
 Energy availability and costs
 Water availability and costs
 Taxes
 Intangible factors
 Legal regulations
 Community attitude
 Living conditions

material requirement planning

Materials related decisions ought to be coordinated to make green use of
sources. Both there vital material inputs and the important potential have to
be to be had before transformation can be finished to recognise while
substances can be available before it can appropriately schedule use of
capacity. It has to have a few concept what capacity could be to be had before
it may realize when materials can be wanted. Large corporations that purchase
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huge quantities of gadgets over extended period can sometime exert enough
pressure on providers to obtain cloth almost when they want them.
Companies that don't make massive purchases may also need to in shape their
schedules to the dates on which cloth can be obtained, or buy with sufficient
lead time so that cloth may be to be had while the businesses want them.

Material requirement planning

There are essential uncooked materials for products. These are pay attention
and sugar. Other uncooked fabric encompass raw water, empty bottles,
Ammonia fuel, Carbon Dioxide fuel, caustic soda, chemical compounds for
laboratories, and desk bound gadgets.

Purchase of raw material

Direct raw material for the product include the following items
 Sugar
 Concentrate
 Treated water
 Empty bottle
 Ammonia
 Carbon dioxide

Sugar quality testing

Purchase of sugar is a important step in the purchase raw material material.
When sugar baggage are arrived at the plant that point it has to bypass thru a
strict exceptional take a look at. In truth sugar first class is very essential within
the production of the drinks.

Water treatment testing

The company has install two tube well to meet water requirement. he
extracted water is then treated for the use in the final processing. At different
staged of treatment tests include:
 Upper tab tests
 Sand filter and carbon filter tests
 Water softness tests
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Syrup testing
After mixing water, sugar concentrate it is treated at 900c then it is sorted in
the tanks. This is called simple syrup. This syrup testing in lab. This syrup goes
into carbo cooler. Here ammonia and carbon dioxide mixed in the syrup. This is
called finished syrup. This finished syrup also tested in lab. If chemist finds any
deviation from the standards, the syrup is drained before any further
processing.

Finished bottle testing

When the bottles filled at the filter, the chemist takes sample after every half
hour. If any deviation from the standard is found the whole batch is drained
before going in market.

Insurance of different items

When production department require particular items for inventory, they fill
the requisition slip. One copy is kept at the store and a carbon copy is kept by
the production deptt. This slip includes the quantity issued, stock register page
number, item code, this slip is signed by the production manager. Inventory
items are issued on these slip.

Measurement and documentation

Product quality must be measured on both quantitative and qualitative basis,
and the measurements must be recorded. Quantification of the qualitative
aspects occurs when defects are classified into categories such as critical
major, and minor which were describe earlier
Product or service that do not meet the desire quality standard generate two
types of required corrective actions
 The disposition of the defective product or service.
 An analysis of the cause of the deficiencies.

Forecasting
Planning and manipulated for operations require an estimate of the call for the
product for the provider that an agency expects experts to offer inside the
future. Numerous methods for the artwork and science of forecasting is full of
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times at both authorities and person had been increase and suggested within
the literature. For instantaneous range plants, beneficial forecasts will in all
likelihood be aggregated via product sorts. Detailed forecasts for each man or
woman item might not be important. Since the relative frequency of forecasts
is lower and the variety of different product types for which forecasts are
made is smaller than inside the case for the quick term choice, forecasting
strategies that require modest value and effort might be employed.

PepsiCo intensive strategies

Market penetration PepsiCo implements marketplace penetration as its
number one intensive growth strategy. This extensive method supports
commercial enterprise boom via expanded sales, which includes from a bigger
marketplace percentage. For example, PepsiCo uses aggressive advertising to
draw greater consumers. A strategic objective linked to this intensive growth
approach is to decrease charges and fees to attract extra purchasers
notwithstanding marketplace saturation. As such, PepsiCo’s everyday
competitive strategy of price leadership supports this intensive approach for
growth.
Product development PepsiCo’s secondary in depth increase method is
product improvement. This extensive method calls for providing new products
to seize extra clients. For instance, PepsiCo maintains to develop merchandise
or variants of current ones, consisting of low-calorie, reduced-salt, or low-
saturated-fat variations of its meals and beverage productsMarket
development PepsiCo applies market improvement as its supporting extensive
growth method. This intensive method helps business growth with the aid of
capturing new markets or market segments. For instance, PepsiCo continues to
expand its distribution network to attain the final final markets or segments,
especially in growing areas. However, market improvement is only a
supporting in depth increase approach because PepsiCo already has sizeable
presence in all nearby markets international

Who are suppliers of PepsiCo

There are so many suppliers of Pepsi
 Accurate
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 AR carton
 Ava plus 2
 Cano
 Cart folio
 EG box
 Elopak
 Kampack
 Master packaging
 OX industries
 PCA
 PSC
 MMP UK

Who is Pepsi target audience?

Pepsi specifically produces the Pepsi cola the primary consumer of Pepsi cola is
younger human beings whose age is 10 to 35. On income basis Pepsi
additionally section their marketplace by way of making little %. They offer a
competitive price variety to all elegance of humans. They bear in mind the
financial scenario in our country.

Who are competitors of PepsiCo?

Major competitor of PepsiCo are;
 Coca cola
 Red bull
 Nestle
 Parle
 Dr Pepper Snapple

Strength or Competitive advantage

 Comprehensive product portfolio with 100 brands serving nearby every
niche in the beverage, food snack industries.
 PepsiCo top earning brand
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 Brand recognition and reputation

Conclusion
Pepsi has grown into a globally famous soda beverages company. Its leading
rival is Coca Cola. However, its market leading position is possible because of
the several sources of competitive advantage it has achieved. The company is
also a leading marketer and a major employer. It has a large and loyal base of
customers all around the world. These several strengths have helped the brand
achieve an edge and become a leading soda brand.

References
Bach Meier, K. (2009). Analysis of Marketing Strategies Used by PepsiCo Based
on Ansoff’s Theory. New York, NY: GRIN Verlag.

CombineNet. (2007). PepsiCo Chooses CombineNet’s Advanced Sourcing

Technologies for North American Transportation. Combine Net. Web.
Heizer, J., & Render, B. (2011). Operations management (10th ed.). Boston,
MA: Prentice-Hall.
PepsiCo. (2011). PepsiCo Introduces Social Vending System, the Next
Generation in Interactive Vend Technology. PepsiCo. Web.

Scribed. (2011). Operations management problem in Pepsi. Scribed. Web.

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Evaluation rubric of project

Criteria poor fair good Very excellent

good

Requirement

Demonstrated
knowledge

Explanation

Presentation