Pepsico, Inc. Case Study

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been the inspiring thoughts of the developers who added more to the brand of Pepsi due to the mistakes that were made.

Total Quality Management

From what I have learned about total quality management in this course is that it keeps the organization together and improves the processes of the product design. Under total quality management, the company has to make sure that it cannot only create the products, but it can produce them repetitively as well. In this process, it’s all about improving the processes that are already implemented, so that they can become easier and easier for the manufacturing workers to use. When total quality management is being used in the company to make the processes simpler, several factors are taken into consideration: the customers’ needs, the employees involvement in the plans, substantial strategies, communication and decision making.

While reviewing the process of making Pepsi and some of its other products, I wondered if Pepsi could keep up with the demand of soft drinks, especially if the equipment breaks down at all during the manufacturing process. Let’s break this up: Would Pepsi be able to keep up with the demand of Pepsi? That all depends of a series of factors: the price, the taste, the convenience and health factors. Below is what I was able to determine:

1. If the price of the soft drinks increases, the demand will decrease.

If the price of the soft drinks decreases, the demand will increase.

2. If the taste of the soft drinks is good, the demand will increase.

If the taste of the soft drinks is bad, the demand will decrease.

3. If the soft drink is offered in the nearby grocery store, the demand will increase.

If the soft drink is offered miles away from the home, the demand will decrease.

4. If the soft drink has low-calories and sugar, the demand may/may not increase.

If the soft drink has high-calories and sugar, the demand may/may not decrease.

There is always a demand for Pepsi products in the world. However, are the manufacturing companies able to keep up with the demand of products? So far, due to the several manufacturing plants around the world, it is believed that Pepsi may be able to produce and support the demand all over the world. Now, the real question is: would they be able to produce and support the demand of Pepsi products if equipment breaks down in the middle of the manufacturing process? Based on the machines that I have seen, it would all depend on how soon the replaceable machinery parts could be purchased and fixed in order for production to continue on. Because Pepsi is a manufacturing company, it is imperative for them to have maintenance technicians on site to repair, install and fix the production/manufacturing equipment. They would be hired to inspect the equipment used to manufacture the products to make sure all of the equipment runs smoothly. As I observed the maintenance technicians on site, they did just that. They made sure every part of the factory was functioning properly with no hesitation. To answer the question: Would Pepsi be able to produce and support the demand of Pepsi products if equipment breaks down in the middle of the manufacturing process? Yes, due to the full-time maintenance technicians that are always on site to observe, detect and repair equipment breakdowns when necessary.

Distribution

Like product design and total quality management, distribution is the essential key to beverage food processing companies being successful. It can help the company just as much as it can hurt the company. Distribution channels transport products and/or services from the manufactured company directly to the customers or to other businesses to sale the products to the customers. My last question before I went on the factory tour was: Is Pepsi able to keep with distribution with all of the distribution channels that it has? After observing the packaging and packing of the Pepsi trucks on the factory tour, I believe that PepsiCo is able to keep up with the distribution channels that it has adopted. Although it would be beneficial for most manufacturers to reduce the number of distribution channels that it has so it can focus on enhancing the major distribution that it already has, PepsiCo decided to go another way. PepsiCo decided to operate on an international level of logistics by opening production and distribution centers worldwide to move their products, which is why PepsiCo is identified as a global manufacturing company. In order to transform a company into a global manufacturing company, it has to strategically pick substantial distribution channels to sell their products and optimize their sales volume. One fact that I was reminded of when I was on the tour was that supermarkets and general merchandisers are the largest distribution channels for PepsiCo and other beverage food processing companies today. They make up almost half of the distribution for soft drinks in the world. Following the supermarkets and general merchandisers are restaurants and bars and 24/7 gas stations and convenience stores in everyone’s local areas. At the factory tour, I learned that PepsiCo has picked large distribution stores like Kroger, Wal-Mart, Costco, Target, Aldi, etc. to sale its products. There are many trucks that go out a day from each PepsiCo distribution center.

Conclusion

My factory tour of PepsiCo was very fun and informative. I chose Pepsi because it’s one of my favorite sodas that I love to drink, so why not learn more about it? When I was 13, I had my very first summer job at a factory called KrispPak, which was a produce factory in Norfolk, Virginia. Although that was 13 years ago, I still remember a few things about the inside of a factory. It was very refreshing to be in a factory again. It took me back to when I had to work in the cold at a factory, and I was so excited to see how everything connects and work together in order to make products. I really had a blast and wouldn’t mind going again just to see how everything is done. This activity not only excited me and brought back some fun memories, but it reminded me that everything is connected in order to meet one goal. This factory tour also taught me that it is important for every business to have its own brand, where it cannot be duplicated by any other company. Although there may be another beverage food processing company placed as number 1, PepsiCo will always be number 1 for its taste and its unique