Frito-Lay:0perations Management in Manufacturing Video Case Frito-Lay, the massive Dallas-based subsidiary of
Frito-Lay:0perations Management in Manufacturing Video Case Frito-Lay, the massive Dallas-based subsidiary of PepsiCo, has 38 the food industry, product development kitchens experiment plants and 48,000 employees in North America. Seven of Frito-Lay’s with new products, submit them to focus groups, and performa test 41 brands exceed $1 billion in sales: Fritos, Lay’s Cheetos, Ruffles marketing. Once the product specifications have been set, processes Tostitos, Doritos, and Walker’s Potato Chips. Operations is the focus capable of meeting those specifications and the necessary quality of the firm from designing products for new markets, to meeting standards are created. At Frito-Lay. quality begins at the farm, with changing consumer preferences, to adjusting to rising commodity onsite inspection of the potatoes used in Ruffles and the corn used costs, to subtle issues involving flavors and preservatives-OM is in Fritos. Quality continues throughout the manufacturing process under constant cost, time, quality, and market pressure. Here is a look with visual inspections and with statistical process control of product at how the 10 decisions of OM are applied at this food processor. variables such as oil, moisture, seasoning, salt, thickness, and weight.
Expert Answer
1.from your knowledge of the production processes and from the case and the video identify how each of the 10 decisions of OM is applied at frito-lay:
Product design:each of frito -lays 40 plus products must be conceived,formulated,tested and evaluated for profitability.
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Quality:The standards for each ingredient,including its purity and quality must be determined.
Process:The process that is necessary to produce the product and the tolerance that must be maintained for each ingredient by each piece of equipment must be specified and procured.
Location:The fixed and variable costs of the facility as well as the transportation costs in and the delivery distance given the freshness must be determined.
Layout:The frito lay facility would be a process facility with great care given to reducing movement of material within the facility.
Human resources:Machine operatiors may not have inherently enriched jobs so special consideration must be given to developing empowerment and enriched jobs.
Supply chain:frito lay,like all other producers of food products must focus on developing and auditing raw materials from the farm to delivery.
Inventory:Freshness and spoliage require constant effort to drive down inventories.
Scheduling:The demand for high utilization of a capital intensive facility means effective scheduling will be important.
Maintenance:High utilization requires good maintenance from machine operator to the maintenance.
Department and depot service.
2.determining output (in some standard measure,perhaps sounds)and labor hours would be a hood start for single factor productivity.
For multifactor productivity,we would need to develop and understand capital investment and energy as well as labor and then translate those into a standard,such as dollars.
3.hard rock cafe performs all 10 of the decisions as well only with a more service sector orientation.each of these is discussed in the solution to the hard rock cafe case.
