Production Line at Pepsico: Case Study of Pepsico Frito-Lay

School of Industrial Management – Manufacturing System Report
HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY
SCHOOL OF INDUSTRIAL MANAGEMENT
PRODUCTION LINE AT
PEPSICO
CASE STUDY OF PEPSICO FRITO-LAY
Instructor: Dr. Duong Vo Hung
Group member:
Nguyễn Hồng Kim -1952804
Đặng Vũ Hạnh Duyên – 1952620
Nguyễn Tấn Quỳnh Như – 2052203
Chu Thị Minh Châu - 2052888
1
TABLE OF CONTENTS:
Overview……………………………………………………. 3
Production process…………………………………………. 5
Case Study ………………………………………………….. 9
Advantages of Pepsico………………………………………18
References…………………………………………………... 27
2
I. OVERVIEW:
Modern technologies have advanced to the point where they can produce in
large factories while maintaining quality and providing customers with a sense
of satisfaction. As goods become more complex, so do the processes that create
them, making it more complicated and requiring work to be coordinated using
machines rather than engineering. At the time, they were only in charge of a
small portion of the overall work, rather than overseeing the entire product's
development. More planning and organization of activities are required to
monitor work processes in factories. Slowly but steadily, production systems are
being built. Keeping this in mind, modern manufacturing would be heavily
reliant on the production system. As a result, we looked into Pepsico's
manufacturing process in Purchase, New York. Pepsico is a multinational food,
snack, and beverage corporation headquartered in Harrison, New York.
1.1. History:
After a joint venture between SP. Co and Macondray - Singapore founded the
International Beverage Company (IBC) in 1991 with a capital contribution ratio
of 50 percent - 50 percent, the capital structure was modified in 1998-1999,
with PepsiCo owning 100% of the company. In 2003, PepsiCo Vietnam
International Beverage Company changed its name to PepsiCo Vietnam
International Beverage Company. Many non-carbonated soft drinks were
introduced, including Sting, Twister, Lipton Ice Tea, and Aquafina. 2005 -
Recognized as one of Vietnam's leading liquor companies. following the
company's expansion of food production and sales with Poca's, a well-known
brand among consumers and young people, as well as its soy milk business.
PepsiCo Vietnam announced in 2010 that it will continue to invest $250 million
in the country over the next three years, marking a significant milestone. A new
factory in Can Tho was officially opened on February 2, 2010. In April 2013,
Suntory Suntory Holdings Limited and PepsiCo, Inc. formed the PepsiCo
Vietnam strategic beverage alliance with the introduction of new tea products
Olong Tea + Plus and Mountain Dew, with Suntory owning 51 percent and
PepsiCo owning 49 percent. Pepsi's success in expanding into Vietnam is
growing, and it will do so until the end of the year.
3
PepsiCo established itself as a globally recognized food and beverage

corporation with a portfolio of more than 22 brands with the introduction of
Frito Lay in 1965. (Lays Chips, Gatorade, Quaker Oats, just one). Until 2017, a
few examples) generated annual revenue of more than $ 63 billion (Introduction
- PepsiCo, 2017). Frito-Lay, PepsiCo's food division, generates more than $12
billion in annual revenue for the automaker. In 1932, C.E. Doolin invented the
Frito-Lay concept, with Fritos recipe purchasing and selling work and then
selling goods from their own cars. In the same year, Herman W. Lay established
H.W. Lay & Company, which goes on to become one of the Southeast's most
successful snack companies. By 1961, Lay's and Frito-Lay would have merged
to form Frito-Lay (Global Division - PepsiCo, 2017).
1.2. Vision:
Their goal is to be the global leader in comfort foods and beverages by winning
with purpose. This reflects their desire to compete in a sustainable manner and
grow their bottom line while remaining committed to doing good for the
environment and our communities.
1.3. Mission:
Their goal is to make their customers happy with every sip and bite by creating
joyful moments through tasteful and nutritious products and unique brand
experiences. For their customers: By being the best possible partner, bringing
industry-changing innovation, and delivering unrivaled growth. In honor of
their communities and partners: By making meaningful opportunities available.
By providing meaningful opportunities for associates and communities to work,
learn new skills, and advance in their careers, as well as a diverse and
welcoming workplace. For the sake of the planet: by safeguarding nature's
4
valuable resources and promoting a more prosperous future for our children and
grandchildren. They have the following shareholders by delivering top-tier TSR
on a long-term basis and implementing best-in-class corporate governance.
II. PRODUCTION PROCESS:

Following are how the most popular product of PepsiCo - Pepsi-Cola is made.
2.1 Ingredients:
Account for more than 95% of the content, which gives

the beverage its signature sparkling flavor. Since carbon
Carbonated dioxide is a non – toxic and inert gas, also less expensive
water and can be liquefied easily, it is used widely for making
soft drinks.
High fructose The second most abundant component found in the

corn syrup beverage. High fructose corn syrup is a form of sugar
(HFCS) made from corn starches, used both as dry and liquid. The
perfect balance of sweetness, acidity, carbonation, and
tartness makes a perfect cold drink. There are a variety of
5
flavoring elements used which can be natural, chemically

synthesized, natural identical or even artificial.
The sugar most commonly used in Pepsi is a granular
Sugar
form of processed sugar cane or sugar beet plants.
Avoids molds and bacterial growth by delaying and gives
Phosphoric acid
the beverage a pronounced flavor.
A 20-ounce can of Pepsi has about 63 mg of caffeine,
much lower compared to tea or coffee.This substance that
Caffeine
provides stimulant properties, but it also has flavour
properties as well.
A natural preservative, citric acid is used for enhancing
the beverage flavor and it also maintains the balance of
Citric acid
sweetness. It is a powder made from the product of
fermented carbohydrates.
The color comes from burnt or caramelized sugars and
Caramel color
starches that are usually suspended in water
This is flavoring in the form of an essence or extractive,
protein hydrolysate, distillate, or any product of roasting
or heating or enzymolysis from a spice, fruit or fruit juice,
Natural flavor vegetable or vegetable juice, edible yeast, herb or similar
plant material. Natural flavors are also derived from meat,
seafood, poultry, eggs, dairy products, or fermentation
products from these different kinds of food.
The caramel color added to the beverage makes it distinctively appetizing.

2.2 Manufacturing process:
PepsiCo owns several manufacturing plants all over the world and the
manufacturing of the beverage takes place every day in these units. Most
of the beverages are processed and manufactured at local canning and
bottling companies.
Water A traditional approach to remove all impurities in the
6
water(microbes, organic matter,...) is the sequence of coagulation,

processing: filtration, and chlorination. The process of coagulation is the
coagulation mixing of precipitate of a gelatinous substance into the water and
and the floc which can be aluminum sulfate (Al2(SO4)3) or ferric
filtration sulfate (Fe₂(SO₄)₃). All the suspended particles in the water are
absorbed by the floc so that the filters easily trap them.
For the removal of fine floc particles, the water is sterilized by
Water
being poured through the sand filter. The water is collected in a
sterilization:
tank and is treated with chlorine in a couple of hours. The water is
chlorination
then dechlorinated with the help of activated carbon filters which
and
removes any left organic material. Before the water is passed to
dechlorinati
the dosing station, it is deaerated with a vacuum pump. The
on
maximum alkalinity maintained until as much as 50ppm.
The bottle washing is completely an auto process which takes
place within washer machines. The machine has three
compartments. Bottles for washing are placed on the conveyor,
come inside the machine and get successive treatment. They are
treated with 4% caustic soda in the first compartment at a
temperature of 100- 150oC. Next these are conveyed to the second
Bottle
compartment, where bottles are again washed with hot water at a
washing
temperature of 80-100oC. In the third compartment bottles are
treated with water at room temperature. Time duration in each
compartment is 10
minutes. These bottles are then sent through the inspection center.
Those still containing any dust or other unwanted particles are
removed from the line here.
The dosing station includes closed tanks filled with syrups which
contain flavor concentrates and the dissolved sugar. Flash
Syrup pasteurization or UV radiations are used to sterilize the syrups
processing stored in the tanks. Then they are passed through the cooler water
where syrup temperature is reduced from 80-100oC to 25-30oC.
From here, they are transferred to the batch tanks.
Ingredients The ingredients are mixed carefully under a controlled condition
mixing else it will lead to unwanted aeration. The syrup and water are
mixed with some certain ratio. To avoid the mixture to get aerated,
7
carbon dioxide (CO2) is pressurized into the vessels.
Carbonation is a process where the liquid is dissolved with carbon

dioxide, which is also known as Fizz. This is basically done under
very high pressure. Carbon dioxide releases out of the drink on
Beverage
reducing the pressure. This creates the effervescent in the liquid.
carbonation
This makes the carbonated water. The temperature of the liquid
has to be maintained under controlled conditions. Carbonators are
nowadays equipped with automatic cooling systems.
The washed empty bottles are filled by an automatic filler
machine. This machine can fill 60 bottles in one minute. The cans
and bottles are filled to the neck and are then sealed immediately
Bottle filling with pressure-resistant closures. After the containers are filled
with the cold drink, they are kept coming to room temperature
which is very necessary. Containers are then packed and kept into
the cartons and are then loaded to the trucks.
2.3 Packaging plant:

PepsiCo is an industry leader in packaging helping to promote and
implement standards for sustainable packaging.
PepsiCo distributes the products in a variety of packages, each carefully
designed to deliver convenience and appeal to the consumer while
protecting the integrity of the products.
Five Principles Of Sustainable Packaging Design Of Pepsico:
Using less material in the packaging, to conserve natural

Reduce
resources.
Increasing use of reusable packaging and increasing the
Reuse
amount of recycled material in the packaging.
Designing packaging for recycling and developing
Recycle
biodegradable and compostable packaging solutions.
Remove Eliminating environmentally sensitive materials and
8
processes from the packaging.

Renew Increasing use of renewable resources.
In an effort to meet his goals, PepsiCo have launched a global sustainable

packaging policy and formed a Sustainable Packaging Council dedicated
to:
- Developing sustainable packaging strategies, goals, and targets.
- Developing alternative packaging material technologies.
- Supporting responsible disposal practices.
III. CASE STUDY: Analysis of Packaging Methods at PepsiCo Frito-Lay
3.1.Introduction:
Modern technologies have advanced to the point where they can produce in
large factories while maintaining quality and providing customers with a sense
of satisfaction. As goods become more complex, so do the processes that create
them, making it more complicated and requiring work to be coordinated using
machines rather than engineering. At the time, they were only in charge of a
small portion of the overall work, rather than overseeing the entire product's
development. More planning and organization of activities are required to
monitor work processes in factories. Slowly but steadily, production systems are
being built. Keeping this in mind, modern manufacturing would be heavily
reliant on the production system. As a result, we looked into Pepsico's
manufacturing process in Purchase, New York. Pepsico is a multinational food,
snack, and beverage corporation headquartered in Harrison, New York.
3.1.1. Problem Statement:
In the packaging department at PepsiCo Frito Lay in
Killingly, CT, with the purpose to address handling issues encountered when
installing, removing and transporting the ‘formers’. Formers are a special type
of funnel within the packaging machines that shape the film plastic into
consumer bags for chips. The formers are interchangeable within the packaging
line and correspond with the different sizes of chip bags. With every change in
chip bag size or seasoning change, the formers have to be removed and
sanitized. The formers can weigh up to seventy pounds and production workers
9
have to lift them over their heads to place them into the packaging machine. By
reducing replacement time of the formers, the intended outcome is a measurable
reduction of down-time on the production line.
3.1.2. Customer needs:
The customer needs based on the sanitation, ergonomic and other concerns
encountered with the formers (Table 1).
Customer Needs:
● Ergonomic stress on the operators
○ Formers are lifted overhead
● Sanitary concerns (due to cart unavailability and size
constraints)
○ Former is food contact surface
● Prolong the former life
○ Formers made of aluminum
● New tool must be faster and easier to use
○ Net zero time
Table 1
The integration of the new product must be seamless with the current formers
and packaging machines. No matter ‘helpful’ or ‘healthy’ the team’s suggestion
is, the operators will not use it unless it is faster and better. There will be a
learning curve for any new implementation, which should be taken into account.
10
These customer needs would serve as the foundation of our objectives,

expanded upon in the next section.
3.1.3. Objective One: Sanitation During Transportation:
The primary goal is to build the disinfection of the previous during

transportation. Utilizing a designated transport device, administrators would
abstain from conveying or hauling the formers during the creation line
changeover, and decrease unplanned harm.
3.1.4. Objective Two: Ergonomics during Changeover:
The subsequent goal is to diminish ergonomic weight on the employees. By

carrying out an answer for decreasing important weight and over the head
tallness for operators to lift, the expectation is to diminish strains on the
administrator and keep away from mishaps.
3.2. Background Review:
3.2.1. Packaging Department in Killingly, CT:
The focus of this Major Qualifying Project was to assist in the operation of the
packaging department and support equipment of the PepsiCo Frito-Lay
manufacturing plant located in Killingly, CT. The Killingly Plant runs 24/7 over
three shifts, but closes for seasonal holidays. The plant has sixty-seven
packaging lines: six Smartfood packaging lines, thirteen non-automatic corn
packaging lines, and forty-eight automatic lines for corn and potato chips. There
are three main companies that manufacture the packaging machines used on the
packaging floor.
3.2.2. The Regarding Formers:
Formers are a removable piece of the bundling line, changed dependent on

various sacks on the creation plan. Tony Stolo, the activities chief for corn
bundling at the Killingly location, assessed there are 115-120 formers on the
bundling floor; with each packaging line having at least one spare former.
11
Images of typical former with reference labels
3.3. Rationale:
3.3.1. Axiomatic Design Decomposition:
For the work with PepsiCo, a design matrix was used to qualify the first Axiom
of the axiomatic design: maintain the independence of the functional elements
of the design. The focus was on FR0, which addressed the handling of the
formers and the necessary time for removal and installation. From this, the
functional requirements are split into two FRs, one focusing on sanitation
problems when handling the formers and the other targeting the ergonomic
stress impacting the workers. FR1 and FR2 are broken down further into subsets
that cover the needs of the customer, PepsiCo.
12
From each of the functional requirements, a matching physical domain was

created. Each physical domain was defined as a system to meet the functional
requirements. The physical domains are shown below:
The connection between the FR’s and DPs can be visualized through the design
matrix created using Acclaro software.
There was a transportation device and a lift assistive device; the transportation
device fulfilled the facilitation of former sanitation and the distance portion of
13
the ergonomic stress, while the lift assist device fulfilled the decrease of
ergonomic stress on employees. Since each functional domain is only
dependent on one physical domain, they act independently. This means that
anything in the system can be changed without affecting the entire system.
3.4. Methods:
A. OBJECTIVE ONE: Sanitation during Transportation:
A.1. Causes of Sanitation Issues:
In determining the root-cause of the sanitation issue, the team created a fishbone
diagram.The ‘head’ of the fish is the problem one is looking to analyze, and the
skeleton is all of the effects of the problem. It is broken down so that there are
‘first level root causes’ that are bigger ‘bones’ as they are areas of problems.
Then, within each area, specific causes were identified that a cart that could
hold formers would solve the sanitation issues.
A.2. Financial Analysis of Cart:
This financial analysis is important as it outlines how our cart will add value to
the packaging process. The product will only be implemented if it has the
potential to make or save the company money. This analysis is based upon the
packaging operator’s efficiency and the cost of the carts being fabricated or
purchased using the company’s margin of profit and the lowest unit price of the
chips.
A.3. Considerations:
· alternate material methods, such as aluminum
14
· aluminum is more difficult to weld, which is the manufacturing method

the company would use, so they might need to outsource the fabrication.
· using nylon or similar materials for securing the formers or film
B. OBJECTIVE TWO: Ergonomics during Changeover:
B.1. Causes of Ergonomics Issues:
To determine the root cause of the ergonomic issues, the team used a
fishbone diagram. The problem was ergonomic issues and next-level causes
were identified as areas that can cause the problem of operator ergonomic
issues. After completion, the team agreed that the cart and the airlift device
would solve the root-cause of operator ergonomic issues.
B.2. Strength of Materials Analysis of Airlift:
Two possible scenarios were considered: would the airlift fail and shear
itself or would it be ripped out of the ceiling before failure? Analyzing the
forces and stresses the operator would produce and determine the maximum
surface stress on the part. Research was done on methods to secure the airlift
to the ceiling above the packaging machine.
B.3. Financial Analysis of Airlift:
This will ensure that the company knows the long-term financials of the
product. Given the airlift is assisting in keeping the operators in the green
zone, the main outcome will be operator pains and strains decreasing.
3.5. Results:
3.5.1. OBJECTIVE ONE: Sanitation during Transportation:
15
· Prototype of New Cart to Aid in Sanitation:
· Fishbone Diagram:
The floor layout, specifically the distances of some lines to the

sanitation station, adds inconvenience to the workers and as stated
before is not ideal for them to follow proper procedures and

protocols. The materials, being the formers, when combined with
the aforementioned causes are the primary reasons why the
sanitation issues exist.
16
· Financial Results of Cart:
3.5.2. OBJECTIVE TWO: Ergonomics during Changeover:
· Fishbone Diagram:
The major contributing factors to the ergonomic issues are people,

materials, and machines. All of the personnel working the line are
of different heights and physical builds and therefore, issues are
presented for those whom have to lift the former above their heads.
· Financial Results of Airlift:
17
The airlift will reduce long term operator ergonomic strain present due
to the weight of the film and formers they have to manipulate. The
change of processes will be safer from an ergonomic standpoint. This
will inherently reduce the risk of operator injuries and accidents; thus,
saving the company money on injury related insurance claims and
replacement fees associated with damaged formers as a result of an
accident.
IV. ADVANTAGES OF PEPSICO: AI Application
 Manufacturing with Machine Learning

A place where Pepsi is innovating using AI technology is in the
manufacture of its famous Frito-Lay’s potato chip subsidiary. The brand
wanted to develop a method to help it determine the texture of its chips
without handling or destroying them.
To this end, it developed a new laser sensor array that could bounce
beams of light off the finished chips and then use AI technology to
process the sound feedback, which would create a reading of the snack
food’s texture.
“One of my first projects at the company involved building systems that
could sense the texture of chips without destroying them.” said Senior
Research and Development Engineer at PepsiCo, Shahmeer Mirza. “It’s a
system that hits the chip with lasers, listens to the sound coming off them,
and then uses that data to correlate the sound into texture. I realized I
could combine the principles of machine learning with computer vision
technology to develop more advanced sensors and process contrl
schemes.”
Building on the success of this innovation, PepsiCo began work on a new
type of machine learning application which could determine the size and
weight of potatoes. Up until now, the company had been gauging potato
numbers based on a vision system, but the team quickly realized that
machine learning could be captured by cameras to determine a mass flow
estimation of the product moving along the conveyor.
However, the brand wasn’t ready to stop there and is working on several
different AI applications for the Frito-Lay’s manufacturing process.
“For example, we have a vision system that looks at every potato going
through our peeling process – where we abrasively peel our potatoes,”
continued Mirza. “I wrote an algorithm that can tell us what our
18
percentage peel is; that is, how peeled a potato is after going through the
process versus how unpeeled it is. With this information, we can optimize
our peeling, so we don’t over-abrate the potato and peel away some of its
flesh.”
 Snack Delivery Robot
There is a six-wheeled mobile vending machine robot tooling around the
University of the Pacific chockful of PepsiCo snacks and beverages from
Hello Goodness – a healthier line-up that includes SunChips, Baked
Lay’s and bubbly sparkling water. Named Snackbot, these self-driving
robots are a partnership between Robby Technologies and PepsiCo.
Students can order their snacks from the Snackbot app, and then the robot
will deliver it to more than 50 spots across the campus without charging a
delivery fee. The bots have a range of 20 miles on a single battery charge,
and they can even navigate at night, in rain or up curbs thanks to onboard
headlights and all-wheel drive capabilities.
Snackbot represent the solution to the needs of strapped-for-time college
students and their preferences identified through PepsiCo’s research.
There are three to five Snackbot on campus to keep up with demand.
 Multipurpose bottling:
In July, '02, the first products rolled off of the small-bottle PET line at the
new $40-million, 200,00-sq-ft production/distribution plant of Pepsi
Bottling Ventures LLC (PBV) in Raleigh, NC. By the end of the year,
four packaging lines were producing 24 million cases, with the ability to
increase production to 30 million cases by '10. The four lines, which
produce more than 250 stockkeeping units, include a 12-oz can line
running 1,600 cans/min, a 40-bottle/min 1-, 2- and 3-L PET line, a 1,100-
bottle/min line running 12-, 16-, 20- and 24-oz and 500-mL PET bottles,
and a 12-bag/min bag-in-box line.
PBV was created in '99 when PepCom Industries (owned by Japanese
beverage conglomerate Suntory Intl.) combined with five PepsiCo-owned
bottlers as part of PepsiCo's plan to consolidate its bottling network
around a handful of anchor bottlers. PBV has bottling rights for Pepsi
products covering the majority of North Carolina, as well as a portion of
Long Island, NY. The Raleigh facility, along with a sister operation in the
recently upgraded PBV production bottling plant in Winston-Salem, NC,
replaced two older production plants in North Carolina.
19
A primary goal in constructing the new production facility in Raleigh was

the production of bottled water under the Aquafina label, the fastest-
growing product within the Pepsi family. Bottled water is also the fastest-
growing product in the beverage industry within the U.S., and PBV
needed its own high-speed production facilities to be competitive in a
very cost-conscious market. New high-speed Aquafina production in
Raleigh was a key ingredient to justify the $4-million expenditure in a
new production plant.
Both Raleigh and Winston-Salem produce cold-filled carbonated and
noncarbonated beverages, while hot-filled products are imported from
other Pepsi bottling facilities or licensed copackers. In addition to
Aquafina, other high-profile brand names produced in the two PBV
facilities include Mountain Dew, Sierra Mist, Diet Pepsi, Lipton Brisk,
Fruitworks, Dr. Pepper, Hawaiian Punch, Sunkist and Nugrape.
Unique features of the new plant are individual sanitary enclosures,
designed and manufactured by ICS Intl., that contain the
washing/capping/filling systems on the PET lines. Conventional filling
rooms in older beverage bottling plants were designed as one large room
with sanitary finishes, high drainage capabilities and climate control
systems for operation and cleanup. Reportedly, these older-style filling
galleries are expensive to construct and keep clean. Also, since all the
fillers are housed in one room, with a common heating, ventilating and air
conditioning system, contamination of one filler could spread to the
adjacent filling equipment.
The PBV plant features an individual sanitary enclosure for each filling
system. "We chose ICS because they have the most expertise in free-
standing clean room technology," says vice president of engineering Scott
Jamison. "They did a fantastic job of building the enclosures on-site,
integrating the monobloc filler guards into the face of the enclosure. The
filler literally became part of the enclosure"
The enclosures are designed with an epoxy floor, sloped to a stainless-
steel drain, vision panels and a complete air-quality control system. The
walls and ceiling are made of insulation sandwich panels consisting of
inside and outside stainless-steel panels filled with polyurethane foam.
The enclosures are self-supporting structures, with modular panels to
minimize the installation time and amount of civil engineering on-site.
All piping and conduit openings through the roof and ceiling are properly
20
sealed for the air tightness of the enclosure. The clean rooms come
complete with lighting, doors, an air filtration unit, air conditioning, and
an air exhaust system.
The air-filtration units maintain pressure in the enclosure to prevent
outside air from entering and provide 40 air changes/hr. They incorporate
cooling coils to cool the temperature of the air in the summer. The units
have three filtration stages: roughing filters, bag filters and HEPA filters
for an average air quality of Class 1,000.
Exhaust air from the enclosure is normally discharged into the
surrounding processing plant. However, to avoid discharging air loaded
with sugar or ozone into the surrounding area inside the Pepsi plant, ICS
added an air extractor that sucks the air from the enclosure and ducts it
outside the plant.
"Each enclosure is custom-designed to enclose the filling system as
tightly as possible," says ICS sales manager Vincent Michel. "This limits
the air volume around the filler, so the air quality can be optimized. The
design also allows the operator to stand outside of the room and still
control the machine."
 High-speed, small-bottle PET line
21
During PD's visit, the the line was running 16-oz Mountain Dew.
Prelabeled bottles, which are supplied by Amcor, are delivered to an
automatic depalletizer on pallets with cardboard slipsheets between the
layers. The depalletizer raises the pallet one layer at a time, and a sweep
carriage equipped with suction cups swings over and automatically
removes the slipsheet and deposits it in a bin for return to the bottle
supplier. The depalletizer then indexes the layer of bottles up, and the
carriage sweeps the bottles onto a mass bottle conveyor. Sentry
Equipment supplied the depalletizers and all conveyors in the plant. The
company also assisted PBV in the development of the packaging line
layouts and controls.
Bottles on wide conveyor are split onto two smaller conveyors for transport to
machine producing 6-packs.
The bottles on the small-PET line are conveyed in mass to two

Lanfranchi high-speed bottle unscramblers, on which rotating turrets
orient the bottles in an upright position. The plant requires two
unscramblers to keep up with the line speed. Level sensors in the hopper
of each unscrambler turn delivery elevators on and off to maintain bottles
in the hoppers.
The bottles from both unscramblers converge in single-file and are
injected into the neck-guided air-conveyance system, where the bottles
are supported by rods beneath their neck finishes. Air blowing in the
conveyor chamber pushes them along. The depalletizing workcell, which
includes three depalletizers, is designed to allow two operators to feed
22
containers to three production lines. The use of unscramblers is new to

Pepsi and is a direct result of new and more-difficult-to-handle bottles.
The unscramblers improved material handling with a reduction in labor.
Empty bottles are conveyed directly via air conveyor into the sanitary
enclosure and the infeed star of the monobloc rinser/filler/capper. All
bottle-handling within the monobloc is accomplished by supports under
the neck rings of the bottles. An inherent benefit of this monobloc design
is the need for only one transfer star between each pair of machines,
rinser to filler and filler to capper, which greatly reduces bottle-handling
problems.
The bottles are delivered to the gripping heads of the 108-station rinser
through the entrance starwheel, and are turned upside down as the unit
rotates. Purified water is sprayed into the bottles through nozzles affixed
to the gripping heads, and then drains out as the unit continues its
rotation. When running Aquafina, this solution includes ozone for
maximum cleaning efficiency. Bottles are then turned upright and
discharge through a starwheel that also serves as the delivery starwheel to
the filler.
The filler for these bottles is an isobaric-volumetric machine with 144
filling valves. The rinser and filler were supplied by SIDEL. Each filling
valve is connected to the central tank through a product pipe and two gas
pipes connected to the carbon dioxide supply–one for the bottle
pressurization and the other for the pressure stabilization between the
tank and the filling valve. When running noncarbonated beverages, the
system uses nitrogen rather than carbon dioxide. The level inside the
filling cylinder is essentially the same as the level in the central tank, and
changes in the quantity of fill for different bottle sizes is accomplished by
changing the level in the central tank. A piston in each cylinder is
adjusted by an external magnetic coupling to set the exact volume to be
filled to an accuracy of ?2 mL. This is done from the operator panel.
To operate high-speed fillers for carbonated soft drinks, the final product
must be cooled to a range of 35 to 50 deg F prior to filling to retain
carbon dioxide in the product. To minimize the amount of ammonia in
the total system, conserve space and increase cooling efficiency, each
filler at PBV is equipped with a stainless-steel plate-and-frame heat
exchanger that cools the product from 86 deg F to the final fill
temperature required for that product. This system represents the latest in
23
carbonated beverage technology. After cooling, the product is injected

with carbon dioxide and is then filled into the bottles.
Each flavor change within the piping, tanks and fillers requires a cleaning
and sterilizing process. Separate, automatic clean-in-place systems have
been located at each filler, and a dual CIP system was installed for the
batch system to reduce cleaning time. The necessary cleaning chemicals
and cleaning cycles are controlled by an automatic control system that
minimizes the total time required to clean the system and place it back
into operation.
From the filler, bottles travel through another starwheel into the 36-head
Arol CSD screw capper. Caps, which are supplied by Alcoa, are sorted
and delivered to the capper by a system from SIDEL, Packaging Systems
Div. Caps are loaded into a hopper located outside of the enclosure, from
which a nearly vertical belt carries them to the top of the enclosure. Caps
are contained on horizontal cleats on the belt, and improperly oriented
caps fall back into the hopper. The belt discharges the caps onto a track
that carries them down to the capper. A transfer star picks the caps from
the track and places them on the capping head, which rotates
synchronously above the bottle turret. As the unit rotates, the capping
head lowers and screws the cap onto the bottle to a preset torque setting.
Arol supplied the upper capping turret, including the capping head and
the drive hub, to SIDEL, which assembled the monobloc system.
Continuous-motion case packer places four 6-packs of bottles into

reusable plastic crates. The machine also packs 20-oz loose bottles into
the plastic crates.
Capped bottles leaving the enclosure pass through an Industrial Dynamics
Filtec x-ray fill height inspector and then past two Videojet Excel ink-jet
24
printers that print a freshness date on the bottle cap tamper ring. The plant
has installed two of these units to provide redundancy in case one unit
malfunctions. For added security, a Domino laser printer applies
production codes and a freshness date to the bottle. After being coded, the
bottles travel onto a multichain mat-top conveyor that slows their
transport speed from 350 to 40 ft/min and accumulates the bottles from
single-file to mass.
Carbonated soft drinks are cold-filled at 35 to 50 deg F, and the bottles
will sweat and damage the packaging if not warmed up after filling and
capping. Therefore, the bottles are delivered to an in-line bottle warmer,
supplied by G.C. Evans, where hot water spraying from overhead nozzles
raises them to ambient temperature. The warmer consists of a 10-ft-wide
mat-top belt that transports them in bulk beneath the hot water sprays
inside the chamber. The warmer automatically adjusts the water
temperature based on the wet bulb temperature in the warehouse, thus
optimizing the process while reducing energy costs.
 Multiple casing options
The plant produces more than 250 skus, representing 40 different flavors,
in various package combinations. From the warmer, finished products are
diverted onto conveyors that carry them to machinery that can package
bottles in multipacks or loose bottles.
A HiCone machine produces six-packs of 16- and 24-oz, and 500-mL
bottles. The bottles are delivered to the machine in two lanes; it separates
six bottles and applies the plastic carrier material. The material is
delivered in a continuous web to a large vertical wheel rotating above the
bottles. The wheel pushes the web down onto the six bottles, and it is
then cut to separate the six-pack. The packs are then diverted into two
lanes and fed to a Hartness 2650 continuous-motion case packer that
places four six-packs into reusable plastic crates for delivery to the PBV
warehouse for distribution. The plant also runs 20-oz loose bottles
directly to the Hartness for packing into plastic trays.
Bottles can also be conveyed to a packing installation incorporating a
Model MW7 multipacker and a Model TDL tray former/loader and shrink
wrapper, all supplied by Douglas Machine. Each of these servo-driven
machines has its own control panel, with intuitive touchscreen interfaces
with real-time production data, maintenance scheduling and changeover
settings.
25
Bottles, including 500-mL water and carbonated soft drinks and 12-oz
water, are delivered to the multiwrapper, where groups of six or 12
bottles are wrapped in registered film. This is a dual-stream machine that
wraps two parallel groups of bottles simultaneously. Bottles are delivered
in mass to the machine and are separated into either six- or 12-bottle
groupings by a proprietary pinless metering system. The groups are then
delivered into the wrapping section. The film is placed around the bottle
group, and the package is conveyed through a heated shrink tunnel.
Four six-packs or two 12-packs are then delivered to the tray
former/loader. The machine forms a tray from a paperboard blank, pushes
the wrapped packs onto the tray, and then seals the open sides with hot-
melt glue applied by a Nordson glue system. These trays are not
overwrapped; they are conveyed directly to the palletizers. Some 500-mL
bottles, as well as 20- and 24-oz bottles of all products can bypass the
multipacker and be delivered directly to the tray former/loader. After
these are placed on the tray, it travels through a shrink wrapper/heat
tunnel.
Once the products are packaged, they are conveyed past a Videojet ink-jet
case coder for application of production codes and then overhead to an
automatic palletizer supplied by T-Tek Material Handling, Inc. Each sku
is individually palletized to a designed stacking pattern. Individual
packages are delivered to the upper level of the palletizer and are
assembled into layers. After each layer is completed, the platform lowers
so the next layer can be assembled. Finished pallet loads discharge at
floor level and are transported by pallet conveyor to an Orion stretch
wrapper. PBV uses plastic pallets, which has improved palletizing
efficiency and has eliminated the debris and floor damage traditionally
caused by wood pallets.
Before deciding on the location of the palletizers, PBV had an analysis
performed to compare placing the palletizers at the end of each line
versus placing the palletizers in the warehouse and closer to the storage
areas, as is done in most larger beverage warehouses.
The analysis showed that locating the palletizers in the warehouse, with
the close proximity of doors and storage space, would save PBV
38,000,000 ft of travel distance during the full year, or an average hourly
distance of 9,198 ft. This is the equivalent of at least one person and
forklift per shift.
26
Finished products are stacked two or three high, without pallet racks, and
are rotated by code dates. The warehouse has been designed to have twin-
load pallet racks in the future that will accommodate four-high stacking.
The forklifts are also responsible for placing empty pallets into the
palletizers.
The plant was specifically designed to allow all raw materials and
finished goods to be handled on double forklifts. These forklifts allow
two pallets to be picked up at a time and greatly reduce loading and
unloading time of the production equipment. The dock equipment was
engineered to allow the movement of these extra-wide and heavy loads in
and out of the building.
The double-fork trucks are also used to load trailers with finished
products going to the sales centers, unload return trailers with empty
plastic pallets and shells, store empty shells and pallets, and feed empty
shells to the three lines. Double-fork trucks greatly reduce the number of
forklifts and total travel distance in high-volume beverage plants.
V. REFERENCES:
1. July 2009, PepsiCo Bottling Plant - Packaging Gateway (packaging-gateway.com)
2. 27 October 2015, FoodRavel, How is Pepsi Manufactured? - A Look into Beverage's
Manufacturing (foodravel.com)
3. https://www.foodprocessing-technology.com/projects/pepsico-frito-lay/
4. https://www.slideshare.net/NehaRandhawa/case-study-exploring-channel-
management-at-pepsico-frito-lay
5. https://www.suntorypepsico.vn/page/lich-su-cong-ty
6. https://www.pepsico.com/about/mission-and-vision
27

Production Line at Pepsico: Case Study of Pepsico Frito-Lay

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Production Line at Pepsico: Case Study of Pepsico Frito-Lay

Uploaded by

Copyright:

Available Formats

School of Industrial Management – Manufacturing System Report

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

SCHOOL OF INDUSTRIAL MANAGEMENT

Instructor: Dr. Duong Vo Hung

Nguyễn Hồng Kim -1952804

Đặng Vũ Hạnh Duyên – 1952620

Nguyễn Tấn Quỳnh Như – 2052203

Chu Thị Minh Châu - 2052888

Case Study ………………………………………………….. 9

PepsiCo established itself as a globally recognized food and beverage

II. PRODUCTION PROCESS:

Account for more than 95% of the content, which gives

High fructose The second most abundant component found in the

flavoring elements used which can be natural, chemically

The caramel color added to the beverage makes it distinctively appetizing.

Water A traditional approach to remove all impurities in the

water(microbes, organic matter,...) is the sequence of coagulation,

carbon dioxide (CO2) is pressurized into the vessels.

Carbonation is a process where the liquid is dissolved with carbon

2.3 Packaging plant:

Five Principles Of Sustainable Packaging Design Of Pepsico:

Using less material in the packaging, to conserve natural

processes from the packaging.

In an effort to meet his goals, PepsiCo have launched a global sustainable

III. CASE STUDY: Analysis of Packaging Methods at PepsiCo Frito-Lay

3.1.1. Problem Statement:

In the packaging department at PepsiCo Frito Lay in

3.1.2. Customer needs:

● Ergonomic stress on the operators

○ Formers are lifted overhead

● Sanitary concerns (due to cart unavailability and size

○ Former is food contact surface

● Prolong the former life

○ Formers made of aluminum

● New tool must be faster and easier to use

○ Net zero time

These customer needs would serve as the foundation of our objectives,

3.1.3. Objective One: Sanitation During Transportation:

The primary goal is to build the disinfection of the previous during

3.1.4. Objective Two: Ergonomics during Changeover:

The subsequent goal is to diminish ergonomic weight on the employees. By

3.2. Background Review:

3.2.1. Packaging Department in Killingly, CT:

3.2.2. The Regarding Formers:

Formers are a removable piece of the bundling line, changed dependent on

Images of typical former with reference labels

3.3.1. Axiomatic Design Decomposition:

From each of the functional requirements, a matching physical domain was

A. OBJECTIVE ONE: Sanitation during Transportation:

A.1. Causes of Sanitation Issues:

A.2. Financial Analysis of Cart:

· alternate material methods, such as aluminum

· aluminum is more difficult to weld, which is the manufacturing method

· using nylon or similar materials for securing the formers or film

B. OBJECTIVE TWO: Ergonomics during Changeover:

B.1. Causes of Ergonomics Issues:

B.2. Strength of Materials Analysis of Airlift:

B.3. Financial Analysis of Airlift:

3.5.1. OBJECTIVE ONE: Sanitation during Transportation:

· Prototype of New Cart to Aid in Sanitation:

The floor layout, specifically the distances of some lines to the

before is not ideal for them to follow proper procedures and