Frito-Lay, the massive Dallas-based subsidiary of PepsiCo, has 38 plants and 48,000 employees in North America, Seven of Frito-Lay’s 41 brands exceed $1 billion in sales; Fritos, Lay’s Cheetos, Ruffles, Tostitos, Doritos, and Walker’s Potato Chips. Operations is the focus of the firm—from designing products for new markets, to meeting changing consumer preferences, to adjusting to rising commodity costs, to subtle issues involving flavors and preservatives—OM is under constant cost, time, quality, and market pressure. Here is a look at how the 10 decisions of OM are applied at this food processor.

Discussion Questions
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.
2. How would you determine the productivity of the production process at Frito-Lay?
3. How are the 10 decision of OM different when applied by the operations manger of a production process such as Frito-Lay versus a service organization such as Hard Rock Café (see the Hard Rock Café video case below)?

  • CreatedJuly 15, 2013
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