Analysing Operations Management

Problems in Pepsi
Operations management is considered as an important division of study equally in the corporate
world in addition to in academics. Reference to academics, operations management, is a central part
of in the curriculum of management studies. In the other words, it could be seen as the theoretical
base that a particular manager or else an executive desires to deal with the issues of the company
are taught in the curriculum. The subject; Operations management is again a key part in an
organization or business (Sweet, Franklyn H. 1964, pp 89-90). A full-blown department or section of
the organization is allocated to take care of this need of the organization or business. Additionally to
this, concern is kept that the issues that the organizations face in the subject of operations
department or section is resolved at the earliest, as a result that the production and as well as quality
of the products that go out of the company does not obstruct the development and image of the
organization or business. Operations management studies the internal working and work process of
a company. Indeed it could be said that the planning, producing and making of the products of the
organization or business is smoothen by a range of processes of the operations department or
section of any organization or business (Sweet, Franklyn H. 1964, pp 89-90). The technical aspects
of an organization or business are looked after of by the operations management of that
organization. Indeed every single one of organizations and firms has operations management
officers and full-blown departments to take care of this aspect of the company. Thus, an organization
or business tends to take up the marketing strategies that make an important part of the operations
management. Scholars and market analysts are already having conducted bundle of studies and
researches in operations management field and have established that the principles and theories of
operations management and strategies are well-matched in any organization or business and in any
sector (Ackoff, R., Rivett, P. (1963), pp. 45-77).

Struggling with your essay?

We can help!
We can help get your coursework back on track, take a look at our services to learn more about how
we can help.
Essay Writing Service Essay Marking Service Place an Order

Custom Written Work

Guaranteed on Time
Get The Grade You ordered
In the 18th century, it could be seen the introduction of the operations management theory. Later on
also in the entire of Industrial Revolution, a variety of new theories of operations management and

other ideals were used. These ideas allow to a huge increase in the business of organizations or
businesses and all at once ensure that the a variety of approaches developed as a part of the
operations management theories were utilized by the organization. Out of a lot of sub theories and
approaches that were made as part of operations management are; "Waltham-Lowell system",
"Assembly line practice", etc. As well as this, the scientific management and the development of the
theories and principles of the operations management systems make certain that these help the
organization leads success and flourish (Ackoff and Rivett, 1963).
One of such organization found in the United Kingdom that is one of the well known brands in terms
of taste and quality and many moreThis organization was suffered huge losses due to missmanagement and issues in the "operations management section". The company is the renowned
beverage maker "Pepsi Company". This is a world renowned name in the field of carbonated
beverage industries. Pepsi advanced to be one of the most recent kinds of confectioneries (O
'Sullivan, N., Wong, P. (1991), pp.139-55). Pepsi Company is today identified as one of the most
trusted brands, due to the strategic planning and management and marketing strategies that it has
been utilizing since long ago. As a result, it could be said that the operations department of Pepsi
Company has to play a key role in the establishment of the Pepsi brand as one of the most
adamantine names in this sector. On the other hand, even such a well-defined operations
department of Pepsi Company was unable to handle the quality of the Cadbury products (Sweet,
Franklyn H. 1964, pp 89-90). There was news in the many of Medias that the Pepsi Cola was
contaminated with pesticides. This rumor spread out everywhere in the world like a wildfire. This
carelessness by the operations department of Pepsi Company exaggerated the organization in
terms of money value and as well as in terms of loss of brand trust and brand name (Peters, T. and
Waterman, R. 1982, pp. 12-23). This to be sure came as a distress to the whole nation as nobody
has expected that yet the highly trusted brands like Pepsi can have never faced such as issue. All
the world was sensitized at this, as this played as a chance for other competitive brands to build
solid place in the market and as well as for new brands to panic. Therefore this dilemma of the Pepsi
Company and it become more aware of the significant of quality and a better operations
management department or section (Sweet, Franklyn H. 1964, pp 89-90).
An brief explanation of the process at issue in the Pepsi group and the process map
Even though the finding of pesticide residuals in the Pepsi Cola was world news and it was in
progress being forbidden in most of the places. All stock of Pepsi Cola was in custody. Those in the
factories were stopped from coming out of the company (Sweet, Franklyn H. 1964, pp 89-90). This
made question for the already on hand operations management procedures that would be utilized
and prominent in the Cola industry. This also insisted on the management of Pepsi Cola to consider
of the processes which already existed in the company. As well the quality assurances of the
processes in addition to the legitimacy of these processes were under issue and evaluated. Pepsi
Cola has at all time's levied importance in the maintenance and updating of the quality processes
that were already existing in the organization. The quality processes that were being utilized were
under strict monitoring and test out. While this problem relating to the quality of Pepsi Cola came up,
after that an indication of the process map started taking shape (Chaffee, 1985). The range of
processes that already existed in the organization is given below:

Manufacturing of soft drink: In the beginning the ingredients necessary for making the soft drink are
prepared to be available. These ingredients are consisted with vanilla beans, flavor oils, kola nuts
and sweeteners. Strict care was paid that these items are best in the quality and that the water
utilized in it are distilled and free of all impurities (Chaffee, 1985).

This essay is an example of a student's work

Disclaimer
This essay has been submitted to us by a student. This is not an example of the work written by our
professional essay writers.
Who wrote this essay Request removal Example Essays

Transferring to the packaging house: subsequent to the soft drink is all set; there are taken to the
packaging places in cans (Chaffee, 1985). Special attention is also taken in carrying on these steps,
as not any chemicals are mixed with the soft drink. So that the amount of soda in soft drink is not
changed. As well as this, the greatest technology is utilized at this stage to make sure that the quality
remains unchanged as that are while in manufacturing (Chaffee, 1985).
Packaging: This is the third step that also requires best care of maintaining the quality of the soft
drink. It is made sure that the sealing of the Pepsi Cola cans are such that they are air tight and
there is not any chance of leakage. As well as this, the cartons, caps and the CO2 used to carbonate
soft drinks are in the optimum quantity. Special care is put in carbonating the drink as the actual
quality if the soft drink depends on the carbonating. Special equipment and tools are brought in use
to take out the cans.
Pepsi Storage: highest care is also put in the storage of the cans. As it was believed that while under
the store, the cans were run over by rats and other small insects. This might be caused a variety of
diseases to the people. It is ensure that the cans are packaged properly and machines do the
shifting and storing of the cans before they are sent to the retailers and stores (Peters and
Waterman, 1982)

2. Analysis of the Problem

It is easy to analysis of the problems, if the problems are listed or displayed in such a manner that
they can be easily read, then the can be easily studied (Peters and Waterman, 1982). Therefore,
high care would be taken that the analysis of the problems is easy. The various measures that
require to be taken to solve the problem. This systematic resolving of problems is very important so
that the problems are first broken down in to smaller sections so that their root causes can be traced
(Hamel and Prahalad, 1994).

3. Ideas Generation

Ideas generation is very important to resolve the problem. As an example, the processes that are to
be taken for the modification of the problems are first break down and then the ideas are generated
as part of the tea or at personal levels that would help in the resolving of the issues. Such thinking is
results in cropping up of excellent and effective ideas so that the problems are addressed in a
improved way and the root causes of the problems are identified.

4. Ideas testing
Generation of ideas in important but the process does not end there. After the listing and jotting
down of the ideas, they are tested whether the ideas can prove helpful in solving the problems. In
addition to that, the stages in which the ideas are to be used also differed and so they should not be
implemented without testing the (Peters and Waterman, 1982). Thus, the effectiveness of these
ideas is first tested and then depending on the results, they are finally implemented. The testing of
ideas is more like a pilot survey that is made because the actual implementation of the ideas. This
helps in gauging the effects of the implementation of the ideas in solving the problems beforehand
(Hamel and Prahalad, 1994). Without testing of ideas, it is not generally used directly in any
organization.

5. Implementing Ideas
Testing the ideas give an idea of the kind of feedback that will be generated after the ideas are
actually implemented. Thus after this pilot study the results is first analyzed and if the results are as
desired, the ideas are implemented (Peters, T. and Waterman, R. 1982, pp. 12-23). After the
implementation of the ideas, it is clear that the operations program can now be tacked such that the
organization does not face similar problems again in future.

6. Checking the Results

This is the last and the finals stage of the implementation of the TQM techniques. Although the ideas
were first tested for their potential results and the implemented, a check is always required at the
final stage. Thus, even after the implementation of the ideas to solve the operational problems, a
check is required to gauge the results of the implementation of the ideas. After getting the results
after implementing the ideas, an assessment or evaluation of the results is done. This gives a
feedback of the effectiveness of the ideas and helps decide whether the ideas are needed for the
future processes or not.

Freelance Essay Writing Vacancies

Looking to become a writer?

Due to high demand for our services we're always looking for new writers. If you're interested in
becoming a freelance writer then why not read more about our freelance writer jobs.
Freelance Writing Jobs

Fish bone theory

Developing the fish bone theory and the fish bone diagram was done by Kaoru Ishikawa. It is seen
that because this theory was developed by her, the theory was also known as Ishikawa diagram.
The root of this theory is that problems need to analyze by jotting down the problems on a sheet of
paper and then relating it to the cause and the effect (Heskett, 1989). This theory was later in used
by various disciplined and branches of academic studied.
The fish bone diagram now forms an important part of management studies and ensures that the
problems that an organization faces is first jotted down and then analyzed. This gives the problems a
pictorial looks and thus ensures an easy and clear understanding of the problems.
Fish bone diagram
This diagram when seen after the completion gives an impression of being drawn on the model of a
fish. In fact the diagram is of the shape of a fish. A spine of the fish is drawn and this the plane in
which the problems are written extending towards the outer sides. The problems are jotted along the
sides giving an impression that these are the bones of the fish (Peters, and Waterman, 1982). This
pictorial representation makes the understanding of the problems easy. In addition, while listing the
problems they are started form the grassroots level and decided into various categories. For
example, the various categories of the organization that might be responsible for the operation
problems cropping up in the organization are decided and then the problems that can be placed in
these areas are listed. This gives a clear impression of the problems and when this is presented
before the higher management, it become easy for them to link the cause and effect and then work
towards solving the problem. In addition to this another important reason because of which the fish
bone theory acts as an important tool in the analysis of the operations problems is that it divided the
problems into smaller sub sections. This makes the problem seem easy as when a problem is bigger
no way to break that down is found. However, when the problems got broken into smaller parts they
seem easy. In addition to this, the linking of the problem to the cause an effect also makes the
problems easy to identify. Another pertinent reason that recommends the use of the fish bone theory
is that it is generally made in a group. Thus it cats as a medium through which various ideas and
knowledge of different people are channelized into one single chart (Peters and Waterman, 1982).
Thus the chart itself is very informative as the opinion of people from different experiences and
history
A comparison of the theory with the actual practice in the Pepsi Company
It was seen that the fish bone diagram and the TQM techniques gave an idea of the various
problems that Pepsi faced. In addition to this, the Fish bone diagram also listed the various
strategies tat are already part of the Pepsi group. These theories hint that the operational

department of Pepsi had taken up strict measures for maintaining the quality of the products of
Pepsi. However, it is seen that there still were loop hole in these processes because of which there
were issues in the quality of the Pepsi Company. The various loopholes in the processes that were
although defined in the guideline and quality assurance of the Pepsi Company but were not followed
in practice are given below:
1. Although various hi tech machines were used for the purification of the water that us being used in
the production of Pepsi, there was issues in the quality of the water. When an investigation
committee was set up to discuss the reason that led to the finding of pesticides in the packaged cans
of Pepsi, it was found put that the ground water was found to be contaminated (Kearney, 1992).
Various water purifiers are available in the Pepsi Company and they boost of use of high boiling
canisters that free the water. In fact the quality process of Pepsi says that not filtered but distilled
water is used for preparing the soft drink. Had this process be really followed in reality Pepsi would
have not suffered huge losses and spoiled the name and reputation of the organization. Thus it was
seen that purification of water was one miss match where Pepsi did not keep up the quality
assurance stages that was streamlines in its work plan (Kearney,1992).
2. It has been defined in the work plan of the organization that the store and the factory where the
soft drink has to be manufactured are free from all types of temperature and humidity issues. In fact,
the organization showed that various new and improved storage canisters and rooms have been
specifically designed so that the soft drink after manufacturing is placed in better stores before they
are packaged. However, this process was not maintained properly and it was later inferred that the
machines and storage room that were made were not of the required quality. This made the soft
drink being alter in their chemical composition in the high temperature differences in various
countries. Thus, owing to theism there were chemical reactions and microbes were able to breed in
them and thus contaminate this (Kearney, 1992).
3. Although the Pepsi Company says that they have hygienic and special ceils to store the soft drink
for long time till they are finally packaged and delivered, they did not take proper measures to make
this practically happen. It was seen that after the Pepsi was manufactured they not stored in hygienic
and cold storages. This change in temperature and the unhygienic conditions of the theories led to
the contamination of Pepsi.
4. Although Pepsi boost of having a very well trained staff, they failed to provide proper quality
management training to their staff and employees. Owing to this they were unaware of ensuring that
none of the variation in temperature level, etc should be done as it drastically affects the quality of
the drinks (Kearney, 1992). The employees and crew of the Pepsi Company being unaware, ignorant
and negligent of these issues ended up in contaminating the drink.
Consideration of its impact on quality and/or customer focus
These problems definitely had a greater impact on the organization. Pepsi was a bigger name in the
beverage industry and none of the companies were as popular as it is and give it tough competition.
However, with the spread of the new of the Pepsi drink containing pesticides, this acted as a major
loss to the organization. Pepsi was banned in all colleges and school on the United Kingdom. In
addition to this, various factories of Pepsi were seized and the drink that was already prepared was

seized. This new also spread in other parts of the world. In fact all countries stopped the selling of
the Pepsi. In addition this affect in the business, the customers also got sensitized by this new. They
themselves became much aware of the contamination and abstained from drinking this drink
(Kearney, 1992). They also barred their friends and children from having this drink. This indeed
acted as a great set back to the Pepsi Company and destroyed its business. In addition to that the
trust that it had managed to create among the people was lost. Even till date many people avoid
drinking the Pepsi products as the shock that they got regarding its contamination is not out of their
minds still.

7. Recommendations
After studying and analyzing the principles in the operational management department of Pepsi co,
one of clear of the problems that the organization was facing and the reasons that led to these
problems were identified. Thus, the various recommendations that can be given to the Pepsi co
group are as follows:
1. It can be inferred that most of the problems that cropped up regarding the quality of the products
is due to the negligence of the employees. It was seen that the staff and crew that were part of the
manufacturing department were not well trained and well skilled. Owing to this they did not
understand the importance of maintaining accurate temperature and pressure. They did nit
understand that minor changes in the level of temperature and pressure while purifying the water etc
can lead to drastic disasters as it happen in the case of Pepsi. Thus Pepsi must ensure that all their
staff is properly trained before they become part of the manufacturing and operational team of the
company (Kearney, 1992).
The company should also understand that when the product that they are producing are consumable
items special care is taken that they are hygienic and do not cause any health hazards. This is
because a slight negligence on the part of the company may lead to severe results on the health
problem and thus in turn may be disastrous to the life of the company and they may even end up
losing their license. Thus, Pepsi should ensure that the machines that they are using in the
production and purifying of water should be the best of quality. More and more high quality machines
need to be brought to test the presence of microbes and other such organization and at the lowest
possible level (Chaffee, 1985).
3. Quality assurance is an important part of the operational management department in Pepsi. This
department has to take up the responsibility of ensuring that the products of the organization are
best of the quality and that they are passed through various rounds of quality checks such that the
products that finally pass out of the organization are best of the quality (Chaffee, 1985).
4. The management also has to be sensitized towards this cause. They have to ensure that the work
process of the organization needs to be changed as there are loopholes in the process. And the loop
holes are such that they resulted in blunders foe the organization, Thus, the management needs to
incorporate more levels of quality checks and ensure that there is strictly monitoring at all levels.

8. Conclusion
Thus, it is seen that Pepsi faced several problems due to the negligence by the operational
management department. In addition to this there were various other problems that led to such huge
loss of eh organization (Chaffee, 1985). However with various theories and approaches of the
management of the organization, the main problems that the organization faced were identified. In
addition to the identification, the methods and theories that need to be used in order to rectify these
problems are highlighted. It is through the use of these theories that Pepsi was able to regain its lost
trust and business.

Read more: http://www.ukessays.com/essays/business/analysing-operations-managementproblems-in-pepsi-business-essay.php#ixzz3c6DUoR99