MIS

PEPSICO

By:
Siddharth Sehgal
Batch-2006-10
 MANUFACTURING SECTOR

• Manufacturing is the use of machines, tools and labor to

produce goods for use or sale. The term may refer to a
range of human activity, from handicraft to high tech, but
is most commonly applied to industrial production, in
which raw materials are transformed into finished goods
on a large scale. Such finished goods may be used for
manufacturing other, more complex products, such as
aircraft, household appliances or automobiles, or sold to
wholesalers, who in turn sell them to retailers, who then
sell them to end users – the "consumers"
 MANUFACTURING SECTOR
• Major business functions can be distinctly identified as Sales,
Marketing, Manufacturing, Finance, Accounting, and Human
resources.
• Managers basically perform the functions of decision making,
planning and controlling
• As a result MIS for each of these functional areas are
developed.
 
 Pepsi Co.
• PepsiCo, Incorporated is a Fortune 500, American global
corporation headquartered in Purchase, Harrison, New York, with
interests in the manufacturing, marketing and distribution of
grain-based snack foods, beverages, and other products.

• PepsiCo was formed in 1965 with the merger of the Pepsi-Cola

Company and Frito-Lay.

• The company's snack-food products include Fritos, Doritos, and

Tostitos corn chips; Lay's and Ruffles potato chips; Cheetos
cheese-flavored snacks; Rold Gold pretzels; and Cracker Jack
candy-coated popcorn.
• Pepsi Co is a world leader in snacks, food, beverages, with
revenues of more than $49 billion.

• Offers product choices to meet a broad variety of need and

preference- from fun-for-you items to product choices that
contribute to healthier lifestyles.
Hierarchal model of organization

STRATEG
IC

PLANNI
NG

MANAGEMENT CONTROL

OPERATION CONTROL
 Transaction Processing System
• Two types of TPS:
– Batch processing
A system whereby business transactions are accumulated
over a period of time and prepared for processing as a
single unit or batch
– On-line transaction processing (OLTP)
A system whereby each transaction is processed
immediately, without the delay of accumulating
transactions into a batch
 OLTP System
• Pepsico. Information system uses
OLTP for recording the various
transactions made in a day.

• It facilitates marketing planning,

pricing, promotion and distribution.

• Such planning can only be possible

if the company information system
is possessing adequate and relevant
information.
 Data Processing Activities
Common to TPSs
• A transaction processing
cycle
• Data collection
• Data editing
• Data correction
• Data manipulation
• Data storage
• Document production
 OLTP…
• OLTP records all the transactions made and by manipulating all
data documents are produced.

• Database is maintained by using information extracted from

documents produced.
 MIS in Pepsi CO.
• The microcomputers are linked to pepsi’s central computer
system daily to update inventory information system.

• Transactions
• Such as customers orders, purchase orders, receipts,
time cards, invoices, and payroll checks
 Data base
• Database is a collection of data organized to serve many
application efficiently by centralizing the data and minimizing
redundant data.

• Rather than storing data in separate file for each application,

data are stored physically to appear to users as being stored in
only one location. A single database services multiple
applications.

• Database is maintained By using Office Automation System.

(word processing , Excel Sheets..etc.)
 Management System
Management Information Systems that support the goals of the
organization
• Financial management
• Human resources management
• Materials management
• Production management
• Marketing management
 Production Management system
in Pepsi Co.

The objective of production management function

• To provide manufacturing services to the organization
• To manufacture products of a certain specified quality
• To produce in a stipulated time
• Fuller utilization of the manufacturing capacity

• Maximum uptime of plant and equipments.

 
 
 PMS..
• The objective of production management function is , to
provide manufacturing services to the organization. This
involves the manufacture of products of a certain specified
quality and within certain cost in a stipulated time fulfilling
the promises given to the customer.

• The Production management function is supported by other

function, viz., Production planning and control, Industrial
engineering, Maintenance and quality control.
 Pepsi Manufacturing..

• Raw Materials required

Water

Soda Sugar
PEPSI

Flavors
Process flow..

Water Clarification

Filtration

Sterilization

De chlorination
 Process
Mixing of Ingredients

Carbonating the Beverage

Filling

Packaging

Quality Control
Application of MIS in Pepsi Co
 Application of TPS in Manufacturing

• Production Schedule
• Process Planning Sheet
• Job Card
• Quality assurance Rating Form

• Material Requirement
• Buyer Order
• Material Usage Standards
 Water Clarification
• Litres of Water Processed

• Water testing forms-containing information about ph, taste,

smell etc.

• Attendance record of workers

 Mixing of Ingredients
• Test forms for flavors, syrup etc.

• Amount of sugar supplied

 Filling and Packaging
• Hourly production/process

• Individual production

• No. of bottles filled

• Performance Record

• No. of Bottles issued

• Stock Register
 Quality Control
• Quality Assurance Rating Form
 Applications
Accounting
• Total no. of bottles produced with respect to time period

• Raw material requirement and its usage

• Use of Power, fuel and consumables

• Machines and facilities utilization

• Labour Hours
 Application
Query
• Status on availability of materials(water, soda, chlorine,
flavors etc.)

• Standard information on machine, tools, specifications(water

tank, sterilization tank etc).

• Information on skills and capacities of workers

• Information on products and processes

 Importance of MIS
in manufacturing Sector
• An integrated system of man and machine for providing the
information to support the operations, the management, and
the decision making function in the organization.

• MIS makes great use of computer hardware, software, the

internet and other office equipments to collect, transmit and
renew the useful information for the enterprises, which will
increase the efficiency of the work.
 Application of MIS
Decision Analysis
• Make
• Use of alternative process
• Rescheduling and loading of jobs
• Selection of production facilities
• Selection of alternative maintenance policies
 Application Of MIS
Control
• Excessive product rejection on account of material

• Utilization of water correctly

• Backlog of number of orders and failure to meet promised

delivery date.
 Reports
• Raw material( such as CO2 contents)

• Production/day

• Machine breakdown

• Product Description Sheet

• Packing Instructions

• Job Card
 Application of DSS in Pepsi Co.
• A good TPS is a ground of Well functioning DSS and that’s
what the company efficiently exploits.

• Its well managed DSS enables the senior management to make

correct decisions.

• The analysis through DSS helps to make decisions such as

alternate job assignments and machines, effective use of raw
materials and man power.
 Application of ESS in Pepsi Co.
• Executive Support System (ESS) is a reporting tool (software)
that allows to turn organization's data into useful summarized
reports.

• These reports are generally used by executive level managers

for quick access to reports coming from all company levels
and departments such as billing, cost accounting , staffing,
scheduling, production and more.

• Pepsi co has developed a flexile and generic Executive support

system.
 Application of ESS in Pepsi Co.
• Distribute production and distributor related data from central
ERP systems to mobile workforce

• Software process model used in pepsico’s ESS is waterfall model.

• Technologies used are Java JSDK 2.0, Microsoft Visual Basic,

Oracle 9i, MySQL, Windows 2007, Windows XP, RedHat Linux
6.2

• Pepsi has realized significant cost and operational benefits from

the system.
 Customer Relationship Management
System
• By Excellent use of information system, pepsico has come up
with a very strong CRM.

• This system helps company in improving sales, marketing, and

customer service in business.

• PepsiCo uses CRM applications to determine profitable

customers, uncover potential sales opportunity, provide
enterprise with up- to- date customer information.