TPM Food Pepsico

8/10/2019 TPM Food Pepsico

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Sharing of TPM Successstoriesin

Food Business



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PepsiCo- Global Fact sheet

Market Share

>60

<60 , >30

<30

No Presence

Sales in 200 Countries



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PepsiCo is one of the world Leaders as a

Food and Beverages power house well

equipped to grow and prosper.

A Fortune 500 Company - ranked 171,• Revenues are nearly $ 60 billion• Total 2,85,000 employees

• PepsiCo extends over 200 countries

• Business product range is divided intotwo categories --Beverages- FoodsWith more than 200 great brandsincluding house hold name like Pepsi –Cola, Lay’s, Walkers, Sabritas,

Tropicana and Gatorade

PepsiCo Business

Food & Beverage Revenues, $ Million

0 20,000 40,000 60,000 80,000 100,000 120,000

Groupe Danone

Coca-Cola

Kraft Foods

Unilever

PepsiCo

Nestlé



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PepsiCo

PepsiCo AmericaBeverages

PepsiCo AmericaFoods

PepsiCo InternationalAMEA(Asia Middle East Africa) Division

PepsiCo InternationalEUROPE

PIINDIA REGION

PICHINA REGION

PIASIA PACIFIC

PIINDIA BU FOODS

PIINDIA BU BEVERAGES

PepsiCo International

PIOther Regions

PepsiCo- In India



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Faridabad

Pune

Rajkot

Erode

Channo

Kolkata

Guvahati

Banglore

Hosur

Hydrabad

•PepsiCo India Foods is a part of PI-AMEA(Asia, Middle East & Africa) and one of the

fastest growing businesses for PepsiCo.

.Lays and Kurkure are 2 among the top 3

Macro snacks brands in India.

• Market share of >50% in western salty

• 3 Manufacturing plants and 4 sales regions

across India

•.8 Contract manufacturing sites

• Approximately 1350 direct employees and

10000 associates including farmers, vendors

and sales agents are part of the company.

PepsiCo- India Food



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Potato Chips Fried Cheetos Product Baked Cheetos Product

Biscuits

Carbonated Drink Packaged / Minral DrinkingWater

Energy Drink

Fruit Juices Health Food

PepsiCo- India Food



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20042008

2009

2010

2011

TPM

Kick-off

in

Channo

Plant

TPM

Excellence

Award

Channo

Plant

TPMExcellence

Award

Kolkata Plant

TPM

Excellence

Award

Pre audit

Cleared Pune

Plant

Consistent commitment in

TPM Award

Health Check auditscheduled in Kolkata &

Channo Plant

TPM Excellence award in

Pune Plant

TPM Journey so far….



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Our Vision



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TPM Journey so far….

P Q C D S M FI JH PM ET QM SHE DM OPTM

Most Loved Brands Zero defects and value for money

Most Innovative Products Relevant and Agile Innovation

Most Powerful GTM systemSKU Compliance and superiopr quality and

supply chain quality indices

Most Loved CompanyCommunity welfare Programmes, Employee

Health and Safety

Sustained growth Elimination of losses and reduced cost

Empowered People Skill upgradation and capability development

Care for customer ,consumer and world

we live in

Zero Defects, Zero Accidents and Environmental

care

Sell only products we are proud of Zero defects and value for money through

Innovation

Speak with truth and candor Empowered Employee

TPM - WAY OF LIFEPillar Responsible

Nourishing and Delighiting Every Indian Every Day

Key Performance IndicesCorporate Vision- Guiding Principles Key Management Indices





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8 Times

2004

2007

10.1 Times 2008

1

200911.6 Times

201016 Times

201125 Times

182

288*

*H2 2010 Onwards

Background

From June,2010 on words 59% of operatives has joined in

Kolkata plant family, It was the Challenge to us for-

•To acclimatize new Operatives in our PepsiCo Culture•Cultural integrity between Old & New Operatives•Build a wining team by improving Equipment competency & multi skilling

Plant Capacity



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Basic Process

Joining

Mandatory Class

room Induction

Assessment

Placement on Basic

Job under

supervision

Written Assessment

Handling individual

process

(Skill Level 2)

Pass

Pass

F a i l

F a

i l

Challenges

F u l l y C o n t r o l l e d t h

r o u g h L i n e s u p e r v i s o r s / A r e a s u p e r v i s o r s

•Scaling up production wrt.

market demand

•Taking new operative’s

competency level upto the level

of old one with out hampering

the normal production / Overtime

•Quick Equipment Competency

of new operatives on process

Opportunity

•Equipment , Process competent

& Multiskill Old operators

•Sufficient knowledge bank

generated During TPM Journey



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Coaching byLine Supervisor

Utilization of JH Skills to develop New Operators

We Identified Skill Level 3 & 4 Operative to coach the Newoperative on lines.

GL

Old operative

(Guide)

New operative

(Learner)

Self LearningOn Job

Coaching byGuide

Pepsico Learning Model

Prepared Pairs of

Guide & Learners

•Both in same shift

•Both in same lines



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Reward &Recognition

PreTest

Evaluation

Selection of

LEARNER

Selection of

GUIDE

OntheJob

Training

Posttest

Evaluation

Guides 107 Nos.

Learner 107 Nos.

Formal testfor all new

Operatives,Subjects

underLearning

tree

AllOperatives

who has

joined after1st June2010

Guide will helplearner todevelop

functional skillwith know why

on station

specific area s &Other topics

Primaryresponsibilitylies with thelearner to

learn more ontopics coveredduring pre test

Formal test for allLearners , Similar topre test

Passed >75%

Good >80%

Excellent>85% onoverall marking

Evaluation ofguide’s

performance tobe on the basisof the learnersperformance in

post testEvaluation

May be a

criteria forprobation &Confirmation

May be acriteria for

Selection inShop flooracademy

Based onVoluntary

nomination /Decided byFunctional

heads

L

G

Process & Master Plan

Progressmonitoring

by circlefacilitators &

Each 1Teach1 Core

Team





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Catalyst of Each 1 -Teach 1

Provided Online Learning Center on shop floor For 24x7 learning

Material Available on Hard copy

•Step 4 Machine Manuals

•Part Problem Matrix•Know why

•Safety Manual

•JH Manual•JH for operators

•OEM manuals

•Why – Why Sheets

Material on Soft Copy

•8 Pillar training Material

•5S, Pokayoke, Karakuri

•Food safety manual

•IMS manual

•OEM Manuals•Plant induction manuals

•Employee welfare Manual

•Soft skills

Videos•Be a process competent

•Machine 7 Subject

•No debate food safety•No debate human safety

•Process wise Dos & Don’t

•Quick on board videos

•Process point analysis

•CLITA Sheets•JH Step5 Manuals



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Glimpses of Each 1 -Teach 1

Pretest Evaluation of Learners

On Job Training of Learners

Common subject training

Review by circle facilitators

Learners & Guides are using On Line

learning Center for Skill enhancement

354

16

0 100 200 300 400

2011YTD

2010

No. of OJT trainings

965

63

0 500 1000 1500

2011YTD

2010

OJT Training Mna Hrs

Results, Shop floor training



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54

76 75

50

55

60

65

70

7580

Pre test Post test Target


Overall Result of 107 Nos. of Learners

Equipment Competency Evaluation Score (Over All %)

G

o

o

d

% M

a r k s i n E v a l u a t i o n

59

70 70

50

55

60

65

70

75


Evaluation on general topics

G

o

o

d

% M

a r k s i n E v a l u a t i o n



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Ever Highest Records during This initiative

89%

Operatives

involvement ina month

Highest OJT

In Nos. &

Man Hrs.

783 OPLs

in a

Month

236 Kaizens

recieved in a

Month



HeadlineGrader toDestoner

Trim n Pare,

Slicer & Fryer

Optics &

Seasoning

Packing

machine

QC Checking

Taping

Machine

Hold Clear & Carton

Stamping

Blender

Extruder

Fryer &

Seasoning

Packing

machine

QC Checking

Taping

Machine

Extruder

Fryer &

Seasoning

Packing

machine

QC Checking

Taping

Machine

Blender

Extruder ,

Over & Fryer

Seasoning

Packing

machine

QC Checking

Taping

Machine

Grader

Serpentinewasher

Trim n Pare,

Slicer & Fryer

Optics &

Seasoning

Packing

machine

QC Checking

Taping Machine

Line 1 Line 2 Line 3 Line 4 Line 5

FG storeM/S Operatives New OperativesOld & Regular Casual Old & Regular Operative



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Over All Production Vs Plan (Tons)

J a n - 1 0

F e b - 1 0

M a r - 1 0

A p r - 1 0

M a y - 1 0

J u n - 1 0

J u l - 1 0

A u g - 1 0

S e p - 1 0

O c t - 1 0

N o v - 1 0

D e c - 1 0

J a n - 1 1

F e b - 1 1

M a r - 1 1

A p r - 1 1

M a y - 1 1

J u n - 1 1

Plan Actual



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Reward & Recognition

•Top10 Learners

• Appreciation for all >85%

Scorer

•Top 10 Guides

•Best 3 Guides

• Appreciation of Guides who’s

Learner achieved >75% Marks



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Future Action Plan

•Discussion of the results with all Learners &

Guides who has not achieved pass marking.

•Retraining of <75% Scorer

• Preparation of Multi skilling plan & multiskillingof new Operatives

Horizontal replication of Best Practice

•Setup of on line learning center in other plants

•Sharing of Training videos to other plants

7 Sep, 2011

10 Oct,2011

22 Sep,2011

Oct, 2011

Oct, 2011



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Raw MaterialProcess Finish Product

Potato production

in field

Cold store 1

Cold store 2

Factory

Usage of Potato

Potato Supply to other plants

Agro Department works

for production & storage

of potatoes

Processing is done in state of

the art fully automated plant,

untouched by humans

P t t Chi P d ti I di



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2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1 P r o j e c t i o n

M T

Potato Chips Production- India

India Potato Chips Requirement

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

P r o j e c t i o n

Pune Plant Potato Requirement

M T

P i C t t f i d l



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Pepsico Contract farming model

In India only 5 % of potatoes are suitable for Chips processingHence we adopted contract farming model to produce Chip Grade Potatoes

for our production

CPRI: Central potato reserch Institute

P d i B k d



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Best potato cultivating area

Soil Rain Fall HumidityGround Water level Temp.

Regional Market competition in PC

business

Before

2005

Pepsico

2006 to2009

After

2009

PepsiCo

Local

Players

PepsiCo

Local

Players &

MNC

Competitors

After2009

Potato production Back ground

Some contributing factors which affects potato crop

Alt t d l t



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Being market leader, proactively we keep working on ways

and means for improving market supply For this, Now it was

requirement to evolve suitability of chip grade cultivation in

new areas of Maharashtra

Alternate area development

Existing

Newly proposed area

Comparison : New field Vs. Old Field

OLD Field New Field

Fertile fields

Good Rain Fall

Ground water Level

Confident Farmers

Barren Land

Draught prone area

Low Ground water

Poor Confidence of farmers

Ch ll E l ti



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Challenges Evaluation

Challenge Idea Level of challenge

Unevel level of land Lavelling can be done Low

Waste landCan be used for potato farming

As a short duration cropHigh

Low rain fall areaOptimum usage of water to be

identified for irrigationHigh

Ground water Level LowWell / Tubewell Water can be

used for irrigationHigh

Mind blokage High

Not ready to change traditional

methodMed

Low ConfidenceWin win model for contract

farmingHigh

Help to get loan from

nationalised bank High

Crop insurance Med

Sharing the cost burden for

farmersMed

TechnologyLow technological support In

terms of agri equipments Provided advance tools. High

Training about potato farming

Area

Financial investment towards new

technology

Land

Water

Farmer

Money

M ti t h ll



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Meeting out challenges

Big Stone piece Land Medium / Small stone land

Old land

Soil Filled land

Segregation of

medium stones

Leveling of field

Field Preparation

M ti t h ll



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Flood irrigation Sprinkler irrigation Drip irrigation

Water quanity Lit / Acre (Approx) 3393966 2129188.8 1774324

Applicability in slopes No Yes Yes

Water Loss Huge Medium Less

Nutrition support No No Yes

Efficiency of fertilizer Average Average Max

Cost investment Less investment Less than drip Expensive

Operational ease Max Less Less

Diesese riskMax Average Less

Meeting out challenges

Drip Irrigation System



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Drip Irrigation System

Drip is the best and economic way of irrigation within

modern irrigation practices. It irrigates the crop, drop by

drop at its root zone. So it avoids excess irrigation on

rest of land which is almost 40% saving. It enhances

more acreage under irrigated/cash crop giving more

returns to farmers with available land and water

resources. It also, saves on time, labor for irrigation and

nutrient cost



H l i t f



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Helping to farmers

25%

41%

34%

Govt subsidy Pepsico Farmer

Sharing the investment of drip irrigation

Average Installation cost

Rs, 40000/Acre

We are helping

farmers financially

For drip irrigation

We are facilitating

farmers to get Govt.

subsidy

For drip irrigation

Farmer need to bear

only 34% of cost

Pilot Project



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Pilot Project

Seed germinated successfully “ON

THE ROCKS”

Crop is in flowering stage` Crop is in senescence stage After good yield harvest…stocked

KPIs

Normal

field crop

Barren

land Crop ResultTon / Acre Yield Chip grade 5.2 4.9

Satisfactory

Growth Crack 3% 2%Good

Multiplication ratio 6.5 6Satisfactory

10

120

270

0

50

100

150

200

250

300

2009 2010 2011

Acres

286

814900

0

200

400

600

800

1000

2009 2010 2011

Acres

We found very encouraging results, we

have replicated

drip irrigation to traditional fields &

increased the infertile land to fertileland

Infertile land to fertile land Drip Irrigation

Support to farmers



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Support to farmers

Farmer support

Financial Technical

Direct support Facilitation

•Drip irrigation

•Output quality

incentive

•Subsidized

chemical kits

•Bank Loans•Fertilizer

availability

•Crop

Insurance

•Soil Sampling

•Procuring

equipments

•Technical know

how training on

agronomical

practices

• Awareness about

crop protection

•Technical visits

•Expert advocacy

Catering other plant demand in Kharif seasons



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Belguam

Kolar

Indore

Ujiain

Nagrota

Meerut

Pune

Hassan

West ( Aug- Nov)

Far South ( Aug - Nov)

KOLKATA

Rabi – 75%

Jan - Mar

Kharrif – 25%

Aug - Nov

Punjab

NEW DELHI

BangaloreChennai

Channo

Kharif geography supply Potato in

SEPTEMBER

OCTOBER AND

NOVEMBER MONTHS

Pune

CHANNO

KOLKATA

(1800 Kms)

(4 Days)

Catering other plant demand in Kharif seasons

About potato & Loss



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Potatoes are living beings, They breaths continuously. In case

of suffocation / Pressure damage potato gets rottage

About potato & Loss

Rottage potato

0

2

4

6

8

10

12

2007 2010

2007 2010

Transit Rottage Loss

10% Potato loss is worth

Rs. 76 Lakh

RottagePressure

damage

Transit loss



Improvement



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Improvement

Reduced Pressure damage by providing padding

on trucks for potato transportation

After

No PaddingStraw jute

Padding

Before

Improvement



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Improvement

Air space maintained for air flow

during loading

Karakuri

Provided air pipe which takes fresh air from

Atmosphere when truck moves and gives fresh air

Air to sack stored in the truck

Result



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Result

0.00%2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

2007 Actual 2010 Target 2010

2007 Actual 2010 Target 2010

Saving81 Lakhs



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Documents

TPM Food Pepsico