OPERATION MANAGEMENT IN

PEPSI COMPANY
Introduction:
Pepsi is a trademark of freshwater is registered in the U.S. in 1893. It was born in
1886; Pepsi's father is a pharmacist. The way the American people understand that
time Pepsi is an oral medication. Later, when Asa Candler - talented businessman
bought Pepsi, whose marketing tactics led Pepsi's dominance on the world market
in freshwater during the 20th century was thinking of the transformation America's
image of Pepsi. He says consumers understand their first "medicine" Pepsi is a
beverage and delicious fresh.

Operations management in Pepsi:

Operations management is the management of an organizations productive
resources or its production system, deals with the design and management of
products, processes, services and supply chains. It considers the acquisition,
development, and utilization of resources that firms need to deliver the goods and
services their clients want. Purvey of Operations management ranges from
strategic to tactical and operational levels.
Tactical issues include plant layout and structure, project management methods,
and equipment selection and replacement. Operational issues include production
scheduling and control, inventory management, quality control and inspection,
traffic and materials handling, and equipment maintenance policies. Build a
management operation, launched the product line of Pepsi company. Operations
management focuses on carefully managing the processes to produce and distribute
products and services.

Pepsi Manufacturing:
Pepsi has production system and bottling facilities all around the world. This plays
an important part in their business since they are one of the top of the soft drink
industry. Outsourcing comes at the expense of improving in-house skills, which
will eventually lead to reduced costs.

Pepsi Company and its production systems:

Primary inputs: chemicals, vanilla beans, kola nuts, sweeteners, supplies, cans,
cartons, personal, utilities, machines, manufacturing, retailer, store, etc
Conversion subsystem: Transforms raw materials into soft drink and packages.
Outputs: Satisfied customers and soft drink products.
Packaging: After the soft drink is made up, it is taken to the packaging centers in
cans. Specially, in transferring of the Pepsi to the packaging house, it must be
protect so that the soft drink cannot mix with another chemicals. At packaging
stage, the cartons, caps and the carbon dioxide used to carbonate soft drinks is in
the expected quantity.

Total Quality Management (TQM):

Total Quality Management (TQM) is a management approach that aims for longterm success by focusing on customer satisfaction. TQM is based on the
participation of all members of an organization in improving processes, products,
services, and the culture in which they work. Quality is about manufacturing a
product that people can depend on every time they reach for it.
Pepsi knows product and package quality is a key to ensure their products in the
marketplace meet Company requirements and consumer demands. The global
nature of their business requires that the Pepsi system has the highest standards and
processes for ensuring consistent product safety. Pepsi uses a system that is called
Pepsi management System (TCCMS ) to manage their product quality. That will
hold all of their operations in the same standards for production and distribution. It
guarantees the highest standards in quality, the environment, safety and the health
of customer. And they requires each business within the Pepsi system must
establish, implement, document and maintain a safety and quality system in
accordance with TCCMS requirements.
Problems in Pepsi: Pepsi has been facing problems in the operation department and
because of that, to deal with this, they always try to identify the problems and refer
or address the problems to the top executives of the organization. We can recognize
that all the problems will be aware and check by Pepsi group.

Fixing the problem: If the problem are listed and presented by the easiest way for
the manager to read. Getting of ideas is very important to solve the problem. For
example, the problems happen in the operation, if they generated their ideas to
solve this kind of problems, so they can be proactive to solve this problems more
than. After listing and jotting down the ideas, they will test whether the ideas can
prove suitably in solving the problems.

Pepsi Inventory Management:

Pepsi has lots number of vending machines, both new and reconditioning machine,
that are placed at various remanufacturing facilities on the U.S. They decided to
use the Bar Code Software, the inventories on this machinery were performed
manually a time-consuming, labor-intensive task, to say the least. Information on
each vending machine, example location, state of condition, etc., was already
placed in Pepsis mainframe computer system. By working with this existing
information, Bar Code Software was able to design an inventory system that
worked with their mainframe database, without causing any changes to it. We
called the new system Track It Track it is specialized software that pulls the
information from Pepsis mainframe database and transfers it to handheld terminals
with built-in laser scanners.
This will describe how the Track It system works for Pepsi:
Printed bar code labels are generated and placed on every machine, old and new.
The bar code indicates the machines special unique number, as assigned by Pepsi.
When it was used for a physical inventory, Track It pulls information on existing
inventory from Pepsis mainframe. This process generates a record on each piece
of machinery with all suitable information.
After that, this information is transferred from the PC in its entirety to each
handheld scanning terminal using Track its specialized software. Multiple
terminals are used to scan the bar codes at the same time on each machine
throughout Pepsis manufacturing facilities. When each vending machine bar code
is scanned, that number will be compared to each number on the list that was
downloaded from Track It. A report listing would found or not found would be
displayed on the handheld terminals display. And the new information is
transferred from all of the terminals back to Track It, and the database on the PC is
automatically updated.

The new system has decreased physical inventory time because it will be automatic
control. It also saves money and manpower.

More Than One Supply Chain:

The level of customer care Pepsi offers requires a specific model of supply chain
structure, what Buffington calls segmentation. Segmentation is the type of
supply chain that you have based on your customers needs or your product
attributes, he explains. More and more, we are understanding that we have to
have different types of supply chains within our local operations.
These variable conditions mean that the supply chain has to be modified depending
on the particular attributes of both product and client. For some products, the most
efficient way to the market is for us to deliver to the store, yet for others, the most
efficient way to go to market is through the customers distribution channel or
through third-party distribution partners, Buffington explains.

Conclusion:
Generally in business, operations management support for company Pepsis lot.
Because management operations have many areas, as active management is the
field concerned with the management and direction Pepsi can help better manage
human resources or technical functions of a company organizations, particularly
those relating to development, production, and production. Strategic manufacturing
policy, systems analysis, analysis, productivity and cost control helps to calculate
the exact purchase materials to reduce the risks of material cost.
Analyze the profitability of the product can help companies anticipate the
advantages and disadvantages to avoid, more generally, management activities to
enhance the content value-added activities in any specific process. Basically, the
value-adding creative activities should be associated with market opportunity for
optimal enterprise performance. Help Pepsi Company know the exact profit. And
the statistics established a perfect production to achieve the best quality companies
to develop more powerful.