Frito-Lay Case Study

By Steve Do, Ana Tran, Ran Song, Jonathon Mota

OPER72015
Barry Saville

Product strategy - Quality Concerns

Possible Safety Breaches in Tennessee
Claim from FDA: violation of Product and Manufacturing Code

Issues
Air duct wrapped in duct tape and plastic sheeting over
production line
Cookie dough leaking from hopper
Cheese filling machines leaking from pumps
Factory floors soiled with product

Alternative Choices
ISO 9000 - International
Recommendation
Quality Standards

9 - 18 Month Process
Documenting Quality
Procedures
On-site Assessment
Ongoing Audits

ISO 14000 Environmental

Management Standards
Environmental

Management, Auditing,
Performance Evaluation,
Labelling, Life Cycle

Six Sigma - Total

Quality Management

Tasks

Responsibility

Budget

To Conduct Initial Onsite

Assessment

Safety Board

$10,000

Ongoing Audits of Products

Management

$80,000

To Implement New Quality

Procedures

Safety Board/
Management

$120,000

Document Quality Procedures

Safety Board

$50,000

Constant Monitoring of Quality

Procedures

Safety Board

$10,000

Total

$270,000

Q1

Plan of Action

Q2

Q3

Q4

Supply Chain Management - Ethics

Supplier bribery (2009)
Negative influences
Sustainable success
Society Expectations

Recommendation
Ethics audit program
Internal Ethics Audit
Ethical standards with
suppliers

Alternative options

Tasks

Responsibility

Budget

Internal and External Audit

Performance

Ethics Department

$5,000

To Establish the Standards for

Suppliers

Ethics Department
and Purchasing
Managers

$15,000

To Train and Educate Suppliers and

Employees

Ethics Department

$10,000

To Modify the Contracts with

Suppliers

Ethics Department

$30,000

To Evaluate Ethical Performance

Ethics Department

$2,000

Total

$57,000

Q1

Plan of Action

Q2

Q3

Q4