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Frito Lay Case Study

Essay by   •  November 6, 2016  •  Case Study  •  310 Words (2 Pages)  •  4,892 Views

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  1. From your knowledge of production processes and from the case and the video, identify how each of the 10 decisions of OM is applied at Frito-Lay.

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.

Product design- Frito-Lay’s has 40-plus products must be conceived, designed, tested, and evaluated for profitability.

Quality- The standards for each ingredient, including its purity and quality, must be determined.

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- Frito-Lay facility would be a process, with great care given to reducing movement of material within the facility.

Scheduling- The demand for high utilization of a capital intensive facility means effective scheduling will be important.

Human resources- Machine operators may not have inherently enriched jobs, so special consideration must be given to developing empowerment and enriched jobs.

Supply-chain management-, like all other producers of food products, must focus on developing and auditing raw material from the farm to delivery.

Inventory- Freshness and spoilage require constant effort to drive down inventories.

Maintenance- High utilization requires good maintenance, from machine operator to the maintenance department and depot service.

  1. How would you determine the productivity of the production process at Frito-Lay?

You would determine the productivity of the production process by determining output and labor-hours would be the best for single-factor productivity. Productivity, would need to develop and understand capital investment and energy, as well as labor, and translate those into a standard, such as dollars.

  1. How are the 10 decisions of OM different when applied by the operations manager of a production process such as Frito-Lay versus a service organization?

Most service organizations use the same 10 decisions of OM. To run an efficient organization those are the main ones needed.

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