OPERATIONS AND PRODUCTIVITY CASE STUDY
Name : Maulid Dina Ayu
Student ID : 015202200040
Class : Digital Business
Case chosen: Case Study 1 (Frito-Lay)
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.
Answer:
1) Goods and service design
Frito-Lay is focused in producing snacks that are friendly to the tastes of consumers. Before
production, they maintain out development of the product, and testing quality standards.
2) Quality Management
Quality control from the farm with checking the raw materials (like potatoes and corn), used
to monitor product variables through the manufacturing process. Additional quality checks
happens during shipment, receipt, production, packaging and last delivery.
3) Process and Capacity Design
Frito-lay’s production process is designed for large quantities and limited variety. They use
specific and and pricey equipment for quick processing. The design is effective, considering
the sanitation need and quick processing. Production are designed for balanced output and
high utilization.
4) Placement Method (Location Strategy)
To make sure quick product delivery while maintain freshness, they placed it’s facilities all
over the region. The delivery system of consumable raw materials require immediate access
of the suppliers.
5) Layout Strategy
They prioritizes efficiency because of the demand for clean surroundings and quick
processing. On production, the layout helps balanced output.
6) Job Design and Human Resources
Trained employees can manage different production lines. Reduced turnover is a result of
the benefits that employees receive such as medical, retirement, and educational plans.
7) Supply Chain Management
The supply chain is important for the delivery of consumable raw materials. In order to
reduce raw material and finished goods inventories, Frito-Lay uses immediate delivery.
8) Inventory Control
Frito-Lay keeps low inventories of raw materials and finished goods because ity needs to
produce goods quickly and uses a continuous manufacturing process.
9) Scheduling
To make sure the right mix of fresh finished goods, production continuously during 4 shifts
each week. To keep operations runs well and aavoid late deliveries, tight scheduling is
necessary.
10) Maintenance
Maintenance is important to avoid expensive downtime which can cause late deliveries. The
maintenance staff is available every shift, and worker usually spot the issues early.
2. How would you determine the productivity of the production process at Frito-Lay?
Answer:
By comparing the output the number of snacks produced to the input like the resources used,
such as worker, raw materials, and equipment.
3. 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 such as Hard Rock Café
Answer:
OM principles are used by both Frito-Lay and Hard Rock Café, but because of the differences in
the components of their focus on the execution of these concepts differs significantly between
the two companies. While the priority at Hard Rock Café is on providing a high quality dining
experience, the focus at Frito-Lay is on effective large-scale food production.