Title: Operational Management Issues Associated With PepsiCo
Thesis: PepsiCo, Inc. had a problem in the operation department. This resulted in some of their production processes being flawed and ultimately was accused of manufacturing soft drinks contain an unacceptable level of pesticides.
- Thesis: PepsiCo, Inc. had a problem in the operation department. This resulted in some of their production processes being flawed and ultimately was accused of manufacturing soft drinks contain an unacceptable level of pesticides.
- The failure of PepsiCo to adhere to quality assurance guidelines in regards to the manufacturing of soft drinks was due to negligence on the side of the operation department. The PepsiCo, Inc. in India was accused of producing soft drinks contaminated with high level of pesticides. The allegation had a massive negative impact on the company in terms of finances, customers, and brand reputation. The company employees were unaware that change in environmental condition (temperature and humidity) during manufacturing could result in the contamination of the soft drinks.
- Recommended Operation Management Theories for PepsiCo
- Total Quality Management (TQM): It is a comprehensive and highly structured approach to organizational management. TQM focuses on the continuous quality improvement of services and products with continuous feedback. Joseph Juran and William E. Deming founded this theory (Chhetri& Islam, 2008). The concept emerged in 1954 from Japan Industrial sector (Mahadevan, 2010).
- Ishikawa Theory: this theory formulated by Professor Kaoru Ishikawa, quality states that improvement is a continuous process, which can always be taken a step further. It proposes a cause and effect analysis approach with the help of Ishikawa or fishbone diagram to help solve the emerging issues within an organization completely, first time around, instead of only address a portion of it as well as having the issues recycles(Chhetri& Islam, 2008).
- Comparison of the Theory with the process: TQM and Ishikawa diagram methods provide a detailed idea of the problems that PepsiCo operation management faced. Ishikawa diagram list various strategies currently used by PepsiCo. According to the theory, the PepsiCo operation department had in place strict measures and policies to ensure the produced products are of high quality and safe but due to negligence on the quality assurance team.
- PepsiCo must properly train all its employees before being recruited as part of the operational and manufacturing team.
- PepsiCo should always observe and be aware of the fact that food products require a high level of hygiene to avoid any contamination of the food, which can be a health hazard to the consumers.
- The company need to strengthen its quality assurance team and bring in a fresh team with new brilliant ideas. Quality assurance team are entitled to ensure that the product produce is safe, high quality, and fit for human consumption.
- The management also requires sensitisation towards improving the operation department.
- Conclusion: PepsiCo should strictly adhere to TQM principles to ensure they produce high-quality products. In addition, using Fishbone diagram to solving their operation problem will ensure that all operational problems within the organization are fully identified and address for the last time.
Centre for Science and Environment (New Delhi, India). (2004). A briefing paper on pesticide contamination and food safety: Poison vs nutrition. New Delhi: Centre for Science and Environment.
Chhetri, A. B., & Islam, R. (2008). Inherently-sustainable technology development. New York: Nova Science.
Mahadevan, B. (2010). Operations management: Theory and practice. Upper Saddle River: Pearson.
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