Value Engineering

Ghanshyamdas Saraf College

Project Report Sub: Production Sub Management Topic: Value Topic Engineering/Analysis Product: Pepsi Soft Drink Product Class: Sybms Div: B Class Submitted By: Group No.8 By Professor Incharge: Dipti Incharge Mam

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Group Members

Names No.
Naseema Shaikh 2) Maya Wala 3) Priya Singh 4) Pooja Patil 5) Khushboo Singh 6) Seema Yadav
1)

Roll
84 109 97 70

94 113

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Acknowledgement
Well to say this is my project would be very untrue. At best, this was our effort. There are people in this world, some of them so wonderful that made this effort become a project. I would like to thank all of them, and in particular: Prof: Dipti Soni who gave her guidance very conveniently in the completion of our project. Especially, Mr.Sanjeev Singh. Working as an Intern in PEPSICO - who helped us in analyzing and to get the estimating cost of PEPSI and shown us how they manufacture their products by controlling different extra costs. In addition, my Parents who always encouraged and motivated me for every issues relating to my studies. As well as Our Librarian who helped us by providing books according to our topics. My Team Mates Priya, Maya, Pooja, Khushboo, and Seema without whose support I would not be able to complete this project alone. Last but not the least it is only when one writes and realizes the true power of MS word 2007, from grammar checks to replace-alls. It is simple. And the power of Windows XP the OS where MS Office is . Thank you Mr. Bill Gates and Microsoft Corp!

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Table of Contents
Introduction.......................................................................................................................... 4 Objective of Study................................................................................................................5 Research & Methodology......................................................................................................7 Company Profile.................................................................................................................... 8 Analysis...............................................................................................................................10 Conclusion.......................................................................................................................... 11 Appendix............................................................................................................................. 12 Bibliography........................................................................................................................13 Glossary..............................................................................................................................14

Introduction

Value Engineering

In 1961, Lawrence D Miles in his book 'Techniques of Value Engineering' defined Value Engineering as "an organized creative approach which has its purpose the efficient identification of unnecessary cost i.e. cost which provides neither quality nor use nor life nor appearance nor customer features." Value Engineering is also defined as application of recognized techniques to identify the functions of a product! or service and provide those functions at the lowest possible cost. Value Engineering is a standardized, multi - disciplined team approach that identifies the lowest cost way and ensures the highest worth to reliably accomplish the functions of a product, process or service. Value Engineering assesses product functions and value to cost ratios, and explores opportunities for reduction. It uses a job plan, is function based, and requires that a product be generated result of the study.

Objective of Study

Value Engineering

The main objective of the study of PepsiCo is to improve value by reducing cost function relationship of a product, which is achieved by eliminating or combining as much secondary function as possible and define the problem & its Scope.Also to identify the opportunities for further investigation & improvement.

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Research & Methodology

Primary Data Collection Methods: We had collected the data by using methods such as interviews and questionnaires. We had taken an Interview from Mr.Sanjeev Singh working in Pepsi co as an intern and collected the information regarding our project.

We used primary data analysis for data processing and analysis. We have surveyed in many retail shops that use to sell Pepsi more than any soft drinks because of reasonable price and the retailers get many advantages along the products. After researching in Market, we had calculated the cost of pepsi bottle by using the BOM Explosion Method. Secondary Data Collection Methods: After the Interviews & Questions, we have collected more information from the following Sources: Search Engines Wikipedia & Encyclopedia Additional Websites mentioned in bibliography

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Company Profile
Company : Pepsi Co. Food, beverage, soft drink and Soft Drink. PepsiCo. United States http://www.pepsico.com/

Industries : snack industries. Type Manufacturer : :

Country of origin: Website :

Introduced in : 1898 (as Brad's Drink) June 16, 1903 (as Pepsi-Cola), 1961 (As Pepsi).

Information
PepsiCo entered India in 1989 and has grown to become one of the countrys leading food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business, which aims to serve the long-term dynamic needs of consumers in India. PepsiCo India and its partners have invested more than U.S. $1 billion since the company was established in the country.

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PepsiCo provides direct and indirect employment to 1, 50,000 people including suppliers and distributors.

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Analysis
1.

Water, Sweeteners, Flavors, Carbon Dioxide, Colors &

Preservatives.
2. There are three basic methods to price Pepsi: cost-based pricing competition-based pricing customer-based pricing
3. Introducing the new product like:

Tropicana, Gatorade, Aquafina, Cheetos, Quaker Oats, Frito Lays products.

4.

There are four main considerations in the price making decision of Pepsi. These are:

Pricing objective Customers' willingness and capacity to pay Costs of manufacturing and selling the product Competition 5. Techniques used for reduction of cost are as follows: Recycling Re-Using

Water Harvesting

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Conclusion

After analyzing the whole project, we have concluded that:

PepsiCo makes changes in productivity & methods of manufacture that may reduce cost. They also take into consideration that if the price of the soft drink reach too high, the company may decide to make some items required as inputs on their own instead of buying it from other manufacturing company. Elimination of Secondary function by doing value analysis includes reduced production cost, material and distribution cost which gives benefit to a Pepsi company. Pepsi Company focuses on increasing the Value of an item to the customers and decreasing the cost of the product for positioning their values in minds of the customers.

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Appendix

PepsiCo takes pride in its achievements PepsiCo-Exnora waste management programme in Chennai wins Environmental Golden Peacock Award for Innovation in 2006.

PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. PepsiCo India continues to replenish water and aims to achieve positive water balance by 2009, which means it, is committed to saving and recharging more water than it uses in its beverage plants.

PepsiCo India continues to convert Waste to Wealth, to make cities cleaner. PepsiCo Indias agri-partnerships with farmers help 22,000 farmers across the country earn more.

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Bibliography

I. Websites
www.google.com www.slideshare.com www.docshare.com www.scribd.com www.pepsico.com

II. Books
1)

Name: Production and Material Management Author: K. Shridhara Bhatt Publication: Himalaya Publication House Edition: Year of Publication:

2)

Name: Production & Material Management Author: S.D. Aphale Publication: Vipul Prakashan Edition: Year of Publication:

3)

Name: Oxford English Dictionary

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Glossary
Jeopard : To Lose. : : : To Obtain. Having a Pleasant appearance. Disagree.

Procurement Aesthetic Dissenter Meticulous :

Careful or detailed. Throwing out Ideas during group Using one persons ideas as opportunity

Brainstorming : discussions. Hitch-Hiking different from :

Other.