Assignment

1792 Words Sep 9th, 2014 8 Pages
Vice President of Operations, Part 1




1. Evaluate key elements of the selected production or service organization’s operational efficiency with its operational strategy. Determine three (3) tasks that do not align with the operational strategy. Determine the weaknesses that are evident in each task.

PepsiCo, Inc. operates as a food and beverage company worldwide. Through its operations, authorized bottlers, contract manufacturers and other partners, the company makes, markets, sells, and distributes various foods and beverages, serving customers and consumers in approximately 200 countries and territories. The company also owns Frito-Lay company and Quaker Oats. It has bottling and distribution facilities in Asia, North
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TQM seeks to improve product quality by eliminating errors and instilling the concept of quality throughout the organization (Reid, D. & Sanders, N. 2013). PepsiCo promotes TQM within the organization, and it does portend to focus on the process quality as opposed to management of employees. However, one big disparity is its decision to create an employee wellness program that imposes a $50.00 charge on employees who smoke or have diabetes, high-blood pressure, or any other medical problems the company deems unsatisfactory. Workers do have the option of taking health classes to improve their condition and avoid the charge. The irony is that PepsiCo spent $17 million from 2009 to 2011 fighting congressional and proposals from 31 states for imposing taxes on PepsiCo products considered unhealthy and a cause of some obesity-related health issues (Rosenkrantz, H., 2012).
Forecasting is part of a company’s future planning as it attempts to estimate future demand for its product or services. Forecasting is usually measured in specific time periods (months, weeks, etc), given a desired level of accuracy, and assigned a unit of forecasting (sales in units or dollars) (Download Reports 2011). PepsiCo bases its sales forecasts on two main factors: changes in consumer tastes, particularly the rise health consciousness among consumers; and how legal regulations may impact operations, such more federal and local laws…

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