PepsiCo snacks division has classified its products broadly in three categories as Western, Extruded and Traditional. A new variety of biscuit is also launched with the brand name ALIVA. PepsiCo in INDIA PepsiCo entered India in 1989 and has grown to become one of the country’s 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. PepsiCo provides direct and indirect employment to 150,000 people including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats to healthy eats,that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks – Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG.
It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The company’s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the-art plants. PepsiCo’s business is based on its sustainability vision of “Making tomorrow better than today”. Company’s Background Frito’s Company:
In the summer of 1932, Elmer Doolin stopped for lunch in a small San Antonia cafe, while waiting for his 5 cent sandwich; he noticed a plain package of corn chips on the counter. He spent 5 cents to buy the package that changed the course of his life forever. In 1938, a businessman was eager to sell the recipe for $100, which he had to borrow. Mr. Doolin bought the recipe and 19 retail accounts plus the manufacturing equipment, an old converted hand-operated potato ricer. The first manufacturing plant for FRITO’S brand corn chips was the kitchen of Mr. Doolin’s mother. Production capacity was about 10 pounds per hour, with total sales, increased production was required. Mr. Doolin developed a press that was more efficient than the potato ricer with a hammer to cut strips of corn dough.
After this the Frito Company experienced continuous expansions and the head quarters moved from San Antonio to Dollas. Before his death in 1959 Elmer Doolin’s Frito corn chips had become one of America’s most popular snack foods and the Frito Company was established as the leader in the snack food industry. H. W. Lay & Company: Herman Lay was founder of H. W. Lay & company in Atlanta. Herman Lay began his business by selling potato chips from an old touring car. By 1934, with six snack food routes, he was on his way to become a major distributor for an Atlanta potato chip manufacturer. In 1938, the Atlanta manufacturer developed financial problems, hence threatening his major source of potato chips and snack foods. Financial arrangement was made by Mr.
Lay through business associates and his friends who allowed him to buy the business and changed its name to H. W. Lay & Co. By putting profits back into the business it helped business to expand. The H. W. Lay & Company soon became one of the largest snack and convenience food companies in the South East, with its primary product being LAY’S brand potato chips. Merger of Frito’s Co. and H. W. Lay & Co. : In 1945 the Frito’s Co. granted H. W. Lay & Company one of the first exclusive franchises to manufacture and distribute FRITOS CORN CHIPS in the south east. As the two companies worked towards national distribution, a close business affiliation developed which eventually resulted in a merger.
Also, both companies were built on the same basic business philosophy, “Make the best product possible; Sell it at a fair profit; and Make service a fundamental part of doing business. ” In September 1961, The Frito Co. and H. W. Lay & Co. merged to become Frito-Lay’s Inc. Frito-Lay’s and Pepsi-Cola Merger: In February 1965, the Board of Directors for Frito-Lay’s and Pepsi-Cola announced a plan for merger of the two companies. On June 8, 1965, the merger of both companies was approved by shareholders of both companies and a new company called PepsiCo, Inc. was formed. At the time of merger, Frito-Lay’s owned 46 manufacturing plants nationwide and more than 150 distribution centers across United States, and was listed on New York Stock Exchange. In 1998, PepsiCo, Inc. cquired Tropicana and in 2001 acquired The Quaker Oats Company. Frito-lay’s India: Pepsi Foods Private Limited was started in India as a subsidiary of Pepsi Beverages Limited with its manufacturing facility at Channo, in the industrially backward district of Sangrur in 1989. It was a joint venture promoted by Punjab Agro Industrial limited, Voltas limited and PepsiCo. But now it’s owned completely by PepsiCo India Holdings. The objective of the establishment was more of a strategic nature to gain foothold for the establishment of the Concentrate plant in Channo. As a result, the emphasis on this subsidiary in the initial years was very limited.
The company has a major market in both traditional Indian and Western snacks. Its focus on marketing and sales has continuously increased the demand, making it necessary to expand its manufacturing facilities by establishing another plant near Pune and Kolkata. And it also have five 3rd party plants. Annual turnover of PepsiCo Inc. is $ 39 billion with 185000 employees. PepsiCo Inc. is the 3rd largest Food Company in the world after Nestle and Unilever. Annual turnover of PepsiCo India Holdings Pvt. Ltd. is Rs. 1200 Crore. PepsiCo Countdown: 1898 Pepsi was born as “BRAND’S DRINK” 1903 Caleb Bradhman sold 7968 gallons of syrup using the theme line “Exhilarating, Invigorating, Acid Digestion. ” 1932
A young Texan, Elliot Doolin made new kind of snacks, a corn chips called Fritos, in San Antonio and established Fritos Company. 1934 H. W. Lays & Co. was established by Herman W. lay. 1938 Mr. Lay through his business associated H. W. Lay & Co. with its primary product being Lays brand potato chips. 1945 Fritos Co. offers the exclusive franchise H. W. Lays & Co. to manufacture and distribute Fritos corn chips. 1961 The Fritos Co. and the H. W. Lay & Co. merged to become Frito-Lay’s Inc. 1965 PepsiCo Inc. was founded Donald M. Kendall, President & CEO of Pepsi-Cola by merger of Pepsi-Cola and Frito-Lay’s Inc. 1972 Agreement was made to sell PepsiCo products in USSR as first foreign product. 1975
PepsiCo entered restaurant business, acquired KFC. 1985 Pizza Hut came to be known as a PepsiCo Company. 1989 Entered in Indian market as the overall PepsiCo strategy under a joint venture between PCI and PFI, known as Pepsi Foods Pvt. Ltd. 1990 Snacks and concentrate plants were set up in Channo (Sangrur, Punjab). 1997 Lay’s became the brand leader in its market segment. PepsiCo acquired Smith Snacks Food Co. in Australia. 1998 PepsiCo acquired Tropicana. 2001 PepsiCo acquired the Quakers Oats Co. and became the world’s fifth largest Food and Beverage Company with 16 brands. Features of the PIH (Frito-Lay’s Division) Channo: This plant was established in 1990.
This is first plant established in India, along with concentrate plant. The plant is situated in a land of 7. 5 acre. The plant has the fully automated 6 production lines as 3 for potato chips, 2 for extruded products (KKR) and 1 for Cheetos. The total capacity of potato line is 29 tons per day (120 tons potato is used per day) and of KKR lines is 54 tons per day. The capacity of Cheetos line is 4 tons per day. The man-power of Channo Plant: 1. Managerial Staff – 47 2. Permanent Worker – 250 3. Contractual Worker – about 300 VARIOUS SAFETY PROGREMMES AND QUALITY CERTIFICATIONS OF THE PLANT: 1. TPM 2. HACCP 3. AIB 4. ISO-14001 5. OSHAS 18001:2007 . JIT 7. 5S OTHER FACILITIES AVAILABLE IN PLANT: ETP 1. NITROGEN PLANT 2. AC PLANT 3. BOILER SECTION Processing of Potato Chips: Receiving and Unloading: (At 3P) The potato used for the chips are bought from market or directly from the farmers. Some time company does the contract farming in which the company gives the seeds to the farmer and bought potatoes from them. This is done to develop and get good quality potato. A grader is installed to sort the undersized and oversized potatoes. The range for potatoes size is 45 to 90mm and for % defects, (external defects: 20% Max, internal defects: 10% max) The grader sorts out the potatoes by size.
It has the two sets of rollers one having the diameter less than 45mm and other set having diameter greater than 90mm so as to eliminate undersize as well as oversized. After grading the potatoes are put into wooden crates and brought to primary feed hopper by using forklift truck. Primary Feed Hopper: Each crate containing 400kg brought by forklift is lifted on to the crate dumper that dumps the potatoes into the primary feed hopper directly underneath it. A belt conveyor is located at the bottom of the hopper, which is used to feed potatoes to destoner at fixed set speed. Washing and Destoning: The Destoner removes the stones or other heavy foreign matter that may be mixed with the bulk potatoes. It also removes some and sand from the potato surface.
The vertical auger turns, it causes agitation which helps to wash sand and dirt from the potatoes, while stones and other heavy material sink to bottom of the Destoner basin. Destoner separates stones, heavy foreign matter from potatoes to prevent damage to downstream equipment. From the destoner potatoes are uplifted by hydro lift and fed to peeler. Peeler: Potato peeling is an operation with a critical impact on the finished product quality and yield. In this process abrasion is applied to the surface to remove 95% of the peel. Abrasion should not be excessive so that the usable pulp is lost and the net yield of the product is low. The surface of the abrasive is silicon carbide granules embed in an ebony base. A water spray is bar is located at the top in the interior of peeler chamber.
Peel, dirt and foreign matter removed from the surface of the potatoes during the peeling operations are carried out by the rinse water to the peeler drain. Potatoes from the peeler drop on to the roller conveyor. [pic] Trim and Inspection station: Between peeling and slicing operations each potato is inspected to detect the defective potatoes to reduce the number of chip defects. Over sized potatoes are halved. Removable external defects (hollow heart, mechanical damage, potato scrab); internal defects (hollow heart) are trimmed away. Potatoes that are under sized and with non-removable defects are removed from processing. The deficiencies and the defective potatoes are either trimmed or removed depending on the percent of tuber affected. [pic] Surge hopper:
This hopper is equipped with level control that starts/stops the out feed conveyor of the primary feed hopper, the peeler, as required to maintain s small reservoir of peel potatoes and allows a continuous, metered flow of potatoes to the slicer. Slicer: Potatoes are removed from the surge hopper by a vertical lift conveyor and transported to the slicer by a screw auger. This auger enables separation of the potatoes in to small groups so that they drop one at a time into the slicer impeller. As the impeller springs, the potatoes are thrown against the blades of the slicer head assembly by centrifugal force. Slicer consists of a stationary slicer head having eight blades that are mounted vertically on it and protrude outwards and a rotating impeller (265rpm). It cuts the potatoes into slices of required thickness and these slices are dropped form the slicer head into the washer. [pic]
Drum Washer: Here the slices are washed in a rotating drum with a continuous flow of fresh water to remove the excess of starch and scrap. As the slices fall into the washer tank, rotation of drum propels and tumbles the slices into washer. Series of water sprays mounted over fryer infeed conveyor to remove any remaining surface starch and prevents the excessive clustering of chips in the fryer. Air Knife & Air Sweep: These both are assembled at the washer take-off conveyor. Air knife is high velocity air curtain which is used to remove the surface moisture and the debris from the chips. It also prevents stacking of chips which may cause soft centers.
Air sweep creates vacuum at the under the take off conveyor. This vacuum causes suction of water from the lower portion of the chips and also the debris. Waste water and scraps are then transferred to an air-water separator and discharged into waste cart. Frying: Slices from infeed conveyor are passed to fryer where they are uniformly fried to golden crispness using Palmolein oil at a temperature of 180? C-185? C, that are ready to be seasoned. As the potato slices are immersed in hot oil, thermal energy is rapidly and efficiently transferred to the product. This heat causes three reactions to develop: Development of chip texture Production of basic chip flavor Formation of chip color
Raw potato slices are carried in a constant stream from washer to the infeed of the fryer. Fryer consists of three Conveyors: In feed Conveyor Sub merger Conveyor Take out conveyor In fryer, the paddles propel the product towards the submerger, which holds the chip below the surface of oil to complete the cooking process. Submerger conveyor temporarily keeps the chips in the oil and paddles moves the chips forward. These fried chips are brought out by take out conveyor. The length of time that the chip spends in oil pan may be independently varied by adjusting the operating speed of paddles, submerger and takeout conveyor. These settings regulate overall cooling time, color development and oil content of finished product.
At the end of takeout conveyor a moisture-sensing device is installed to check the moisture and oil in the fried chips. This is shown on fryer control panel. [pic] Optyx: This device is used to remove the unwanted chips from the good chips with the help of air jet. In this system all the defects, which are to be removed, are defined by the help of a sample of defect. The defects are such as greening, undesirable colour (due to browning reaction) with different levels, etc. [pic] Seasoning Station: Here seasoning is applied on the chips. It is done in seasoning tumbler. The seasoning tumbler consists of a rotating drum with internal longitudinal ridges. This structure inside the tumbler makes the chips to move forward.
The rotating action of tumbler drum both tumbles the chips and brings each chip to bed surface, ensuring an even thorough coating of seasoning to product. An acrison seasoning applicator provides both a constant feed of seasoning to tumbler and a consistent distribution of seasoning across the product. The feed rate of acrison applicator may be adjusted to regulate the seasoning content of finished product. The seasoning application is checked every hour so as to ensure accurate seasoning application. Inspection Conveyor: After seasoning, chips reach to inspection conveyor. Here the pickers picks the remaining defective chips like brown chips, soft centers, clusters, oil soaks etc. and discard them to waste.
After it chips goes to the packaging section. Packaging: For the acceptability of any food product its packaging must be done. For proper handling and good looking proper packaging films are used. Nitrogen is filled in the packets for proper handling, to decrease browning reaction till consumption and to decrease the breakage of products. Firstly finished product from process drops in vibratory conveyor and moves continuously so as to avoid overflow. There are sensors on conveyor to open the sliding window above weigher. The weighers weigh the amount of product. VFFS packaging machine are used for packing. The packets are then arranged in cartons and sealed with BOPP tape.
Than the cartons are arranged on wooden pellets and dispatched to the warehouse. Final Product: [pic] Processing of Kurkure Raw Material handling: The main raw materials being used are cornmeal, rice meal and gram meal. Raw materials for kurkure production are inspected, sampled and tested to ensure that they meet the quality specifications. Tests for particle size, moisture etc. is done on raw meal. After the raw materials are accepted they are unloaded. Blending: The dry ingredients (i. e. corn, rice and gram meals in the ratio of 60: 30: 10) are first blended in blender. The blending is done for proper mixing of the ingredients and for proper distribution of the moisture content.
Water is added to achieve the required moisture content (16 to 18 %) for extrusion and collet formation. The water is added according to the moisture content of dry blended meal. Two types of blending are done: 1. Dry blending (before addition of water 2. Wet blending (after addition of water) Extrusion: The blended raw material is put into extruder hopper manually. Here the fine meal (i. e. flour) is separated. The extruder used is Random Extruder. The random extruder differs from other extruder by lack of an external heat source and a type of die. Therefore the extruded collets have a little uniformity. There are basically three steps of extrusion: 1.
Meal heating (Viscous shearing friction 2. Compression (Head gap due to restricted opening between rotor plates and auger) 3. Collette formation: explosively vaporized, rapid cooling. Parts of Extruders: Rotor, Anger, Nose cone, fingers, Blade, Motor Heating process: Mixture collects in channels in auger flights in the stator feed grooves and in space between auger and stator casing. During auger rotation portion of meal nearest to the auger is forced to spiral towards the rotor head. However, feed grooves in stator casing create a resistance that exerts an opposing relative force and heal on meal called shear stress and resulting tension is viscous shearing.
Temperature generally during extrusion is about 350-400 0F, which is higher than the boiling point (212 0F) of water. At such high temperature water is vaporized, but this vaporization can be prevented by creating extreme pressure (500 to 800 psi) between rotor and stator heads therefore moisture still remains when temperature above 212 0F. But due to this high temperature the gelatinization of the starch content takes place, which binds the molecules of meal together. Meal compression: When heated meal is compacted under immense pressure in extruder head gap, pressure is produced by meal flow through restricted opening between stator and rotor heads. Collette formation:
Collet formation occurs when moisture is allowed to explosively vaporization upon decompression, causing it to pop or puff. Collette shaping is enabled by rotor head nose cone swirls, the face scallops and rotor fingers. Rapid cooling occurs between the rotor and stator heads. Blades are used to cut the collets in standard length. Chaff Tumbler: Chaff tumbler is to remove the very small fragments from collect. Chaff tumbler is a perforated rotating drum, which moves the collets forward and removes the very tiny particles of meal from these collets. These small meal particles are collected in a catch pan, which is lying exactly under the chaff tumbler. Vibrating Chaff Conveyor:
A continuous flow of cleaned collets exit the chaff tumbler and goes to vibrating chaff conveyor. This vibrating conveyor contains a ? inch stainless steel mesh section that is designed to sift out additional small fines as the raw collets are transported to the fryer. Very small collets are removed here to make the quality of product better. This conveyor is also called fryer infeed conveyor as it provides feed to fryer. Collet Frying: The collets from the chaff conveyor are fed to fryer where they are fried in vegetable oil at a controlled temperature for a small interval of time. The objective of collet frying is to: Reduce moisture content to 1-2% Develop collet flavor through addition of cooking oil.
Give the collet a light and crunchy texture. The time for which the collets are in the fryer is called dwell time. The paddles keep the collets under the oil so as to fry the collets. Then collets get lifted on take out conveyor to get out from fryer. Vibrating Conveyor: The take out conveyor puts the fried collets on the vibrating conveyor, which feeds the collets to seasoning tumbler. The seasoning applied on Kurkure is wet seasoning. Here the mixture of oil and dry flavour powder is applied on product. The mixture is first mixed in slurry cattle at the temperature of 35 0C to ensure proper mixing. When the slurry is blended it is pumped to the transfer kettle.
Here also the slurry is continuously mixed so that the mixture remains proper. The transfer kettle maintains the slurry solids in proper suspension at an even temperature. After this the seasoning goes to seasoning tumbler through a pipe. Here the uniform seasoning application is applied on the collets. Retention Conveyor: After the tumbler the collets reach to retention conveyor. It allows the oil and seasoning to set up and to dry on collets. It moves the prepared collets to Z conveyor. Z conveyor takes these ready collets to packaging section. Packaging: The prepared collets are packed in the same way as used for the potato chips by the VFFS packaging machines.
The only Difference is that here normal air is used in place of nitrogen gas, because the starch content in the final product less available due to gelatinization. Final Product: [pic] Inventory Management Area of Project : Engg. Store, Pepsico. Holdings (P) ltd. Channo. Contents: ? Inventory ? Inventory and Stores Management ? Applied Techniques: • ABC Analysis o Detailed description of ABC analysis o ABC Curve o Distinction b/w A, B and C class items. o Application of ABC in Engg. Store. • Music 3-D Inventory Management System o Music 3-D Concept o Cost criticality chart o Interpretation of Music 3-D Inventory Management What is Inventory Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business.
It is also used for a list of the contents of a household and for a list for testamentary purposes of the possessions of someone who has died. In accounting inventory is considered an asset. Inventory Management A big trend is for organizations to blend their operational functions under the umbrella known as supply chain management. Often, the first two functions to merge are purchasing and inventory management. So, as a purchasing professional, you must understand inventory management principles to remain valuable. First, you must know how much inventory to have on hand to ensure continuity of supply in the event of an uncharacteristic increase in either demand and/or lead time. This quantity of inventory is called the safety stock.
There is no universally used formula for determining safety stock quantity, rather it depends upon the kind of store and value of inventory. Second, you must know when to reorder materials for inventory. Generally, this point in time is determined when the quantity of materials in stock decreases to a certain level, called the reorder point. The reorder point is determined by the formula: ROP = SSQ + (QUD x ALT) Where, ROP = Reorder Point SSQ = Safety Stock Quantity QUD = Quantity Used Daily ALT = Average Lead Time (in days) Third, you must know how much to order. A complex mathematical equation determines the Economic Order Quantity, or EOQ.
The equation recognizes the tug of war between acquisition costs and inventory carrying costs: when you order bigger quantities less frequently, your aggregate acquisition costs are low but your inventory costs are high due to higher inventory levels. Conversely, when you order smaller quantities more often, your inventory costs are low but your acquisition costs are higher because you are expending more resources on ordering. The EOQ is the order quantity that minimizes the sum of these two costs. Mismanaged Inventories Inventory mismanagement can be detrimental to a business, especially considering the weight these items carry. Inventories that run out of control can lead to significant losses that the company may not be able to recoup. Considerable investment is required to develop adequate stock. Poorly managed supplies lead to profit loss. ABC ANALYSIS (PARETO ANALYSIS) [pic]
ABC analysis (sometimes referred to as the 80/20 rule and as Pareto analysis) is a method of classifying items, events, or activities according to their relative importance. It is frequently used in inventory management where it is used to classify stock items into groups based on the total annual expenditure for, or total stockholding cost of, each item. Organizations can concentrate more detailed attention on the high value/important items. Pareto analysis is used to arrive at this prioritization. • Taking inventory as an example, the first step in the analysis is to identify those criteria which make a significant level of control important for any item. Two possible factors are the usage rate for an item and its unit value. • Close control is more important for fast moving items with a high unit value.
Conversely, for slow moving, low unit value items the cost of the stock control system may exceed the benefits to be gained and simple methods of control should be substituted. • These two factors can be multiplied to give the annual requirement value (ARV) – the total value of the annual usage. If the stock items are then listed in descending order of ARV, the most important items will appear at the top of the list. If the cumulative ARV is then plotted against number of items then a graph known as an ABC curve (Pareto curve) is obtained. ABC/ Pareto Curve [pic] The precise shape of a ABC curve will differ for any analysis but the broad shape remains similar – following ‘the 80/20 rule’. ? In this case, typically, the first 20% of items in the list will account for approximately 80% of cumulative ARV.
For a company with a stock list of 1,000 different items this means that paying more attention to the top 200 items (with a sophisticated stock control system) will give close control of about 80% of total stock investment. ? The next, say, 40% of items, will, typically, account for a further 15% of cumulative ARV. These can be subject to less precise control methods. ? The last 40% of (low value of low usage) items then account for a mere 5% of ARV and can be controlled with a simple system. The term ABC analysis lays down the fact that the first 20% of important items are known as Category A items, the next, typically 40% are Category B items and the relatively unimportant, though larger in number, 40% are Category C items. Point of distinction between A, B, and C class items. | | | |A Class inventory |B Class inventory |C Class inventory | | | | | |Very Strict Control |Moderate Control |Least Control | | | | | |No Safety Stock |Low Safety Stock |High Safety Stock | | | | | |Max. follow up |Periodic follow up |Exceptional follow up | | | | | |Centralized storing |Combined storing |De-centralized storing | | | | |Accurate Forecast |Estimated Forecast |Rough Estimates | | | | | |Weekly Reports |Monthly Reports |Quarterly Reports | | | | | |Must be handled by Superiors |Can be handled by Middle mgt. |Can be fully delegated. | MAJOR AREA OF RESEARCH: ENGG. STORE The project i. e. The ABC analysis was conducted for the area of Engg. store of the Pepsico. Holdings. Its a unique store located at the channo plant and has several credits to its name. It is considered to be the most effective and efficient store among all the three plants located at Channo, Pune and Kolkatta, respectively. This is the combine endeavor of Mr. Rajesh Misra and Mr. Rohit Batta, making this store no. 1 all over India. It consists of 38 classified racks each having a separate number.
These racks are classified in various shelves, and each shelf is further divided into different columns. This is done to make available the inventory as early as possible, without wasting any time for finding the respective inventory. The store carries a huge stock of items that are required to be used in the production machines like bearings, shafts, conveyer belts, heavy electric motors, gear box and many more. Each item has provided with a separate code, which makes it very easy to locate the item in the store. For e. g. |ZZMPKCLP0216 |Bridge Cylinder |15 |127013. 6 |20. 12. 00 | | |Mounting P#9652 | | | | | | | | | |PERCENTAGE |2,64,84,008 |2,35,41,341 |2,055,98,673 |1,76,56,006 | |VALUE | | | | | | | | | | | |ITEMS |1 — 202 |1 – 157 |1 — 120 |1 — 89 | | | | | | | |ORIGINAL VALUE |2,64,78,884 |2,35,27,762 |2,05,81,522 |1,75,97,595 | | | | | | | |NO.
OF |45 |37 |31 |89 | |ITEMS | | | | | B- class Inventory Here is a list of the B- class inventory lying in the Engg. store along with their respective material codes, values (Rs. ), current stock and their location in the store. |Material |Material Description |STK |Value |Location | |ZZCUTBLR0005 |Chemical Maxtreat_3220 |105 |42078. 52 |13. 08. 0 | |ZZM10FPS0017 |Seal Ptfe Shaft Kit Mrv40 |2 |41962. 61 |36. 14. 00 | |ZZMKKPMP0002 |SEAL MECH. SEAL (FCP SLURRY PUMP) |21 |41923. 51 |05. 02. 08 | |ZZM10HEX0002 |Plate Swirl 24Wh Ord #121365004/2 |1 |41568. 99 |11. 03. 00 | |ZZE00INS0008 |Controller Temp P#77_147E16031100 |2 |41542. 44 |35. 03. 07 | |ZZE00INS0007 |Controller Temo P#77_147_16011100 |2 |41542. 42 |35. 03. 07 | |ZZMUTACR0086 |ELEMENT AIR INLET(C.
R. ) P#39708466 |13 |41296. 96 |31. 04. 00 | |ZZMPKDIS0027 |Photo Eye Sensor Wt36-R210 P#90500060 |2 |41062. 18 |36. 13. 00 | |ZZMPKPLR0118 |Allen Weight Eccentric WEIGHT 9 |1 |40934. 1 |07. 05. 00 | |ZZEUTSTK0038 |Power Supply Type Q_120D_ Meanwell |7 |40806. 81 |35. 04. 08 | |ZZMKKCNY0027 |MotorGearedAs55Dp190. 3P90 B5 B3 Bn 90 |1 |40738. 11 |09. 12. 0 | |ZZE10OPT0003 |Mot Hp 1800 230/460 50/60P# 021808 1-1/2 |1 |40605. 18 |36. 07. 00 | |ZZM10FPS0007 |BADGER PROPORTIONING VALVE |1 |40573. 7 |36. 14. 00 | |ZZE00ELE0561 |Switch Reed Smeo-1-B |32 |40562. 13 |32. 01. 00 | |ZZM10CNY0028 |INTRALOX |38 |40314. 2 |13. 00. 00 | |ZZM00MEC0329 |Chain M. S. Pitch 5/8 _Diamond |44. 1 |39919. 39 |37. 03. 0 | |ZZE00ELE0265 |Breaker Mpcb Gv2_M40 Telemecanqe |8 |39914. 87 |06. 05. 00 | |ZZE00ELE0494 |Breaker Mccb 630A |2 |39491 |28. 17. 00 | |ZZMUTSTK0060 |ROLLER DRIVING P#8101867226 |4 |39228. 38 |28. 18. 00 | |ZZMUTETP0011 |CouplingFluidCentrifuge 206DTRIA-1001959 |1 |39074. 36 |22. 01. 00 | |ZZMPKISD0009 |Cam Follower P#01_0026_04_ISHIDA |81 |38911 |01. 01. 0 | |ZZM10PTH0002 |Gear Box Pc10 A_Potato Hopper |1 |38905. 73 |11. 04. 00 | |ZZE00ELE0365 |BREAKER MCCB 250 AMP |3 |38890. 05 |28. 17. 00 | |ZZE00ELE0007 |MOTOR 3 PH MOTOR 10HP(FRAME 1325) |2 |38870. 5 |13. 08. 00 | |ZZCPKCOD0001 |Roller Markem 930 Black 32 MM |156 |38477. 98 |32. 03. 00 | |ZZMPKPLR0121 |Tip Contact Assyembly P#502064800 |144 |38035. 93 |25. 18. 0 | |ZZM10SLI0063 |Nut Lock P#22047 |102 |37910. 65 |12. 03. 00 | |ZZE10HEX0021 |Sensor Flame Qra2 ORD#600501 |3 |37904. 62 |11. 07. 00 | |ZZEPKCLP0037 |Sensor Assy Prox. P#Y18352 |2 |37811. 01 |55. 55. 55 | |ZZEPKCMD0004 |Cable Assy Ribbon P#906123 |5 |37535. 61 |33. 04. 11 | |ZZM10CNY0026 |Belt Wide Mesh Top Intralox 203MM |10 |37383 |13. 00. 00 | ZZE00INS0012 |Controller Speed AS220IF_01_06 |82 |37086. 91 |01. 07. 00 | |ZZMPKCLP0121 |Link Bridge Long P#A10238 |18 |36873. 92 |20. 07. 31 | |ZZMPKMEC0058 |Cylinder Air 1_Cdq2Ka32_35D_A733 |9 |36852. 38 |32. 13. 00 | |ZZC00MIS0018 |CHEMICAL SUPERFOAM |425 |36523. 73 |13. 07. 00 | |ZZM10SLI0040 |Shoe Sli Shoe V Cut Bronze P# 22039 |3 |36465. 97 |38. 08. 0 | |ZZMPKCLP0095 |Seal S_500 Thomson Fs P#30511 |114 |36451. 32 |02. 07. 00 | |ZZM10CNY0033 |Geared Motor Washer take out conveyor |1 |36360. 83 |37. 16. 00 | |ZZCPKBOS0002 |Cloth Teflon P#8101867125 |208 |36267. 36 |03. 13. 00 | |ZZE10FPS0025 |(2) ANLOG I/PANALOG CUR O/P P#1746-NI041 |1 |35996. 85 |06. 06. 00 | |ZZEPKCLP0039 |CARTRIDGE HEATER 35V 16W P#0231213 |24 |35962. 06 |88. 88. 88 | ZZMPKCLP0167 |Pulley Timing Belt (Shaft) P#11728 |41 |35713. 93 |02. 09. 00 | |ZZM10SLI0068 |Clamp Knife Straight P#22074 |140 |35484. 49 |38. 08. 00 | |ZZMUTACR0113 |Filter Air Filter P#39903281 |8 |35475. 7 |31. 00. 00 | |ZZMPKMEC0069 |Valve Solonoid Mfh_3_1/4 P#9964 |15 |35299. 5 |01. 16. 00 | |ZZM10OPT0011 |Belt White Endless P#020541 26″ X 180″ |3 |35024. 25 |36. 16. 0 | |ZZMUTCTF0006 |Deep Groove Ball Bearing 6222MA/C3 |2 |34876. 86 |11. 00. 00 | |ZZE00ELE0259 |Cable Caoe_Lapa 1MM SQ X 6 |444 |34788. 26 |09. 14. 00 | |ZZEUTDG20004 |Charger Turbo Holset 3521598 C |1 |34727. 84 |23. 02. 00 | |ZZMPKCLP0010 |Milker Fixed P#Y05364 |22 |34722. 98 |02. 05. 00 | |ZZE00ELE0245 |Breaker Miniature Circuit 32A Tpn |37 |34401. 47 |37. 07. 0 | |ZZEPKAPX0058 |EYE MARK AS:: P# 065-2572-02 |1 |34263 |36. 05. 00 | |ZZEPKISD0151 |Power Supply P#02_5534_05 |2 |34044. 55 |33. 01. 03 | |ZZM00MEC0486 |Bearing Ball 3313A |4 |34006. 96 |21. 18. 00 | |ZZMPKCNY0020 |Arm Allen Drive Right P# A3524 |1 |33815 |07. 09. 00 | |ZZMPKPLR0139 |Bearing Fafnir Ra 1077 PP P#38048 |13 |33581 |34. 03. 7 | |ZZMPKMEC0047 |CYLINDER AIR P#DNU_40_80_PPV |10 |33521. 9 |32. 14. 00 | |ZZMUTACR0082 |Hose Mpv To Ac P#95313961xf60 |5 |33429. 57 |24. 08. 00 | |ZZM10FPS0015 |VIBTEC M20TR VIBRATOR MDA0027 |1 |33383. 21 |36. 13. 00 | |ZZM08BPL0003 |Bearing 22209 CK |12 |33303. 1 |21. 01. 00 | |ZZM10MEC0041 |Gear As25P 40:29 Out Put Rpm_35 |3 |33238. 1 |23. 08. 0 | |ZZE00LAB0004 |Brush Less Motor Of Mm-55 |2 |33048. 33 |88. 88. 88 | |ZZM10MEC0048 |RING_MATING WITH PKGSEAL609SVT_P_40 |1 |32800 |35. 01. 01 | |ZZE00ELE0078 |Contactor 440Vac A. R 160A 3Tf50 |4 |32687. 52 |28. 13. 00 | |ZZM10TNP0004 |GEARED MOTOR AS45 DP84. 9P90 B5B3 BN 90 |1 |32476. 73 |09. 04. 00 | Classification of B-Class inventory on the basis of Control percentage TOTAL VALUE – Rs. 98,07,469 | | | | | |CONTROL |90% |80% |70% |60% | |PERCENTAGE | | | | | | | | | | | |PERCENTAGE |88,26,721 |78,45,974 |68,65,227 |58,84,481 | |VALUE | | | | | | | | | | | |ITEMS |260 — 555 |260 — 509 |260 — 467 |260 — 429 | | | | | | | |ORIGINAL VALUE 88,09,264 |78,29,695 |68,41,182 |58,67,545 | | | | | | | |NO. OF |295 |249 |207 |169 | |ITEMS | | | | | C- class Inventory Here is a list of the C-class inventory lying in the Engg. store along with their respective material codes, values (Rs. ), current stock and their location in the store. Material |Material Description |STK |Value |Location | | | | | | | |PERCENTAGE |88,34,610 |78,52,986 |68,71,363 |58,89,740 | |VALUE | | | | | | | | | | | |ITEMS |608 — 1699 |608 — 1413 |608 — 1224 |608 — 1085 | | | | | | | |ORIGINAL VALUE |88,34,077 |78,52,225 |68,67,566 |58,83,309 | | | | | | | |NO.
OF |1091 |805 |616 |477 | |ITEMS | | | | | Music 3D Inventory Management Music-3D stands for “multi unit spares inventory control—three dimensional” approach, the three dimensions being finance, maintenance and materials. By integrating the three functions of finance, user and material in a logical fashion, it provides a forum for cost reduction techniques. The traditional ABC approach or Pareto’s law or 80/20 approach—controls only on the basis of annual usage value while the VED approach determines the criticality of a spare part on three phases.
For better overall management, planning and control, MUSIC 3D combines not only the ABC and VED but also availability of a spare part, each of the three dimensions being restricted to only two level of the characteristics. Music 3-D Concept Music 3-D tries to integrate all the three types of analysis, viz. ABC/ VED/ SDE, and each dimension is taken at two levels. For instance, spare parts are classified into two categories: (a) high sales value (HSV), which accounts for the 80% of annual sales–, usage value accounts for 20% of the number of items, and (b) low sales value or low consumption value of about 20%; this accounts for the remaining 80% of the items. Instead of three categories as vital, essential, desirable, the spares are separately classified as critical and non critical.
The lead time also classified as long lead time or (LLT) with more than 12 months and short lead time (SLT) of less than one year. Combining the three dimensions we obtain cost-criticality availability, as shown in the table below, which classifies the items into eight categories after using the three dimensions. Cost Criticality Availability | | | |High Sales Value (Rs. ) |Low Sales Value (Rs. ) | | LLT SLT | LLT
SLT | | 1 2 | 3 4 | | 5 6 | 7 8 | | Number 20% (small) | Number 80% (large) | |Sales value Rs 80% large |Sales value Rs 20% low | Critical Non Critical Interpretation of Music 3-D In integrating, we have taken only two categories in each off the three dimensions, leading to eight categories. Otherwise, by conventional methods we get three categories in each dimension (ABC X VED X SDE), leading to 27 categories. Thus the separate part will fall into any eight of the categories. For easy understanding of operators the bin cards may be in eight different colors. We may also able to know that items falling in cells 3,4,7 and 8 account for 80% in terms of number but with a low sales value of 20% only.
For items falling in cell 3, the inventory level should be high—about two years stock, there should be no stock out At any cost, storage should be always nearest to the user, purchaser should be highly decentralized, with maximum possible service level of 100% and minimum audit efforts. Similarly for items falling in cell 1, with LLT, HSV and high criticality, the planning should be perfect with maximum possible market intelligence system, minimum margin of profit per item due to increased turnover, low inventory but minimum stock out by application of mathematical formulae, scientific application of norms, and maximum follow-up and records. Items falling in cell 2, will have treatment similar to that of items in 1, but to a lesser degree.
Items falling in cell 6, will receive treatment opposite to that in cell 3, namely low/zero inventory, storage for the entire industry in the form of a blank, purchase decision taken at the highest level with the unavoidable delays, very low service levels delivered at the last moment. It is not useful to visualize cost reduction techniques like value engineering, value analysis, etc. for items in cell 3, 4, 7, 8 as the cost of application of these techniques will be greater than cost of the item and initially it is dangerous to apply for the items in cells 1 and 2 as they are critical. The starting point of application of cost reduction techniques is for items in 5 and 6.
Suggestions for Improvement ? Application of Music 3-D system in Store: The application of Music 3-d system may help the store manager to maintain a better control over the flow of inventory. Thus the basic advantages of this system can be: • Strict control over Inventory levels • Prompt MIS ( Market Intelligence System) • Low obsolescence • Easy Audit • Better Stock reviews • Movement Analysis • Reduction in lead time. ? Visibility of Lead time: From the analysis of the Engg. Store, it has been concluded that besides of application of all the latest techniques of Inventory management, one aspect that is still missing — is the visibility of the lead time.
Although proper records are kept with the departmental heads but still a constrain for a stranger or any worker/ employee not familiar with the store. So efforts should be made to show the visibility of the lead time for different inventories lying in the store so that one can easily know how much time the inventory takes to get into the store from the time of placing the order. Hence, may lead to better control over the level of the inventory lying in the store. ? Non carbonated drinks are the fastest growing part of the industry, so the company shall introduce new brands of non carbonated drinks to the Indian customers, as is also favored by the society. ? Swot Analysis Of Pepsi Co. Below is one of our free research papers on Swot Analysis Of Pepsi Co..
If the term paper below is not exactly what you’re looking for, you can search our essay database for other topics or order a custom essay. PepsiCo Inc. (PepsiCo) is one of the largest food and beverages companies in the world. It manufactures, markets, and sells a variety of salty, sweet and grain-based snacks, carbonated and non-carbonated beverages. It owns 18 mega brands which are known around the world and generate annual sales of over $1 billion each. Some of these include: Pepsi-Cola, Diet Pepsi, Gatorade, Lay’s and Tropicana Pure Premium Orange Juice. The company is headquartered in New York and employs 185,000 people as on 31st December, 2007 (FY2007). The company recorded revenues of $39,474 million during the FY2007, an increase of 12. 3% over FY2006.
The operating profit of the company was $7,170 million during FY2007, an increase of 10. 3% over FY2006. The net profit was $5,658 million in FY2007, an increase of 0. 3% over FY2006. Swot Analysis Of Pepsi Co. • Strength: Pepsi has a broader product line and outstanding reputation. Merger of Quaker Oats produced synergy across the board. Record revenues and increasing market share. Lack of capital constraints (availability of large free cash flow). o Great brands, strong distribution, innovative capabilities o Number one maker of snacks, such as corn chips and potato chips PepsiCo sells three products through the same distribution channel.
For example, combining the production capabilities of Pepsi, Gatorade and Tropicana is a big opportunity to reduce costs, improve efficiency and smooth out the impact of seasonal fluctuations in demand for particular product. • Weakness: Pepsi hard to inspire vision and direction for large global company. Not all PepsiCo products bear the company name PepsiCo is far away from leader Coca-cola in the international market – demand is highly elastic. Opportunity: Food division should expand internationally Noncarbonated drinks are the fastest-growing part of the industry There are increasing trend toward healthy foods Focus on most important customer trend – “Convenience”. • Threats F&B industry is mature Pepsi is blamed for pesticide residues in their products in one of their most promising emerging market e. in India Over 50 percent of the company’s sales come from Frito-Lay; this is a threat if the market takes a downturn PepsiCo now competes with Cadbury Schweppes, Coca-Cola, and Kraft foods (because of broader product line) which are well-run and financially sound competitors. Size of company will demand a varied marketing program; Social, cultural, economic, political and governmental constrains. Strategies The purpose of the strategy is to increase the EPS by 15% per annum and increase PepsiCo’s… [pic] ———————– Packaging Dispatch Seasoning application Surface moisture removal Washing of slices (90 sec) Slicing Slicer feeding Inspection & trimming
Frying (185 0c for 3. 15 min) Peeling (350-45-rpm) Washing & Destoning Hopper Filling (400 Kg) Removal of unwanted chips Receiving Potato from 3P Dispatch Packaging Retention conveyor Seasoning application through oil slurry Frying Removal of bits Removal of small fragments Random extrusion Feed hopper Meal separator Wet blending Dry blending Receiving raw meal – Pepsi – Mirinda – M. Dew – 7up – Slice – Aquafina – Lay’s – Cheetos -Uncle chips – Kurkure – Twisteez – Tr. Pure Premium Juice. -Tr. Smoothies – Dole Juices – Twister Juice – Oatmeal – Square Cereals – Honey net Heaven – Instant oatmeal -Thirst Quencher – Xtremo – Propel Fitness Water. -Frost