Sharing

of TPM Success
Headline
stories
in
Food Business

PepsiCo- Global Fact sheet

Sales in 200 Countries

Headline

Market Share
>60%
<60%, >30%
<30%
No Presence

PepsiCo Business
Headline
Food & Beverage Revenues, $ Million

PepsiCo is one of the world Leaders as a

Food and Beverages power house well
equipped to grow and prosper.

Nestl

PepsiCo

A Fortune 500 Company - ranked 171,

Revenues are nearly $ 60 billion
Total 2,85,000 employees
PepsiCo extends over 200 countries
Business product range is divided into
two categories -Beverages
- Foods
With more than 200 great brands
including house hold name like Pepsi
Cola, Lays, Walkers, Sabritas,
Tropicana and Gatorade

Unilever

Kraft Foods

Coca-Cola

Groupe Danone
0

20,000

40,000

60,000

80,000

100,000 120,000

PepsiCo- In India
PepsiCo

Headline
PepsiCo America
Foods

PepsiCo International
EUROPE

PepsiCo International
AMEA(Asia Middle East Africa) Division

PI
INDIA REGION

PI
INDIA BU FOODS

PepsiCo America
Beverages

PepsiCo International

PI
CHINA REGION

PI
ASIA PACIFIC

PI
INDIA BU BEVERAGES

PI
Other Regions

PepsiCo- India Food

PepsiCo India
Foods is a part of PI-AMEA
Headline
(Asia, Middle East & Africa) and one of the
fastest growing businesses for PepsiCo.
.Lays and Kurkure are 2 among the top 3

Channo
Faridabad

Macro snacks brands in India.

Guvahati

Market share of >50% in western salty

3 Manufacturing plants and 4 sales regions

across India
.8 Contract manufacturing sites
Approximately 1350 direct employees and
10000 associates including farmers, vendors
and sales agents are part of the company.

Rajkot

Kolkata
Pune

Hydrabad
Banglore
Hosur
Erode

PepsiCo- India Food

Headline

Potato Chips

Fried Cheetos Product

Baked Cheetos Product

Biscuits

Carbonated Drink

Fruit Juices

Packaged / Minral Drinking

Water

Energy Drink

Health Food

TPM Journey so far.

Headline
TPM
Kick-off
in
Channo
Plant

Consistent commitment in
TPM Award
Health Check audit
scheduled in Kolkata &
Channo Plant
TPM Excellence award in
Pune Plant

TPM
Excellence
Award
Kolkata Plant

TPM
Excellence
Award
Channo
Plant

TPM
Excellence
Award
Pre audit
Cleared Pune
Plant

2011
2010

2009
2008

2004

Our Vision

Headline

TPM Journey so far.

Headline

TPM - WAY OF LIFE

Corporate Vision- Guiding Principles

Key Management Indices

Key Performance Indices

P

Nourishing and Delighiting Every Indian Every Day

Most Loved Brands

Zero defects and value for money

Most Innovative Products

Relevant and Agile Innovation

Most Powerful GTM system

Most Loved Company

SKU Compliance and superiopr quality and

supply chain quality indices
Community welfare Programmes, Employee
Health and Safety

Sustained growth

Elimination of losses and reduced cost

Empowered People

Skill upgradation and capability development

Care for customer ,consumer and world

we live in

Zero Defects, Zero Accidents and Environmental

care

Sell only products we are proud of

Zero defects and value for money through

Innovation

Speak with truth and candor

Empowered Employee

Pillar Responsible
FI

JH

PM

ET

QM SHE

DM

OPTM

Background
From June,2010 on words 59% of operatives has joined in
Headline
Kolkata plant family, It was the Challenge to us forTo acclimatize new Operatives in our PepsiCo Culture
Cultural integrity between Old & New Operatives
Build a wining team by improving Equipment competency & multi skilling

Plant Capacity
2011

25 Times

288*
2010

16 Times
11.6 Times

2009

182

10.1 Times 2008

8 Times 2007

1 2004

*H2 2010 Onwards

Basic Process

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Fail

Mandatory Class
room Induction

Assessment
Pass

Fail

Placement on Basic
Job under
supervision

Written Assessment
Pass

Handling individual
process
(Skill Level 2)

Fully Controlled through Line supervisors / Area supervisors

Joining

Challenges
Scaling up production wrt.
market demand
Taking new operatives
competency level upto the level
of old one with out hampering
the normal production / Overtime

Quick Equipment Competency

of new operatives on process

Opportunity
Equipment , Process competent
& Multiskill Old operators
Sufficient knowledge bank
generated During TPM Journey

Utilization of JH Skills to develop New Operators

We Identified
Skill Level 3 & 4 Operative to coach the New
Headline
operative on lines.
Prepared Pairs of
Guide & Learners
Both in same shift

G
L

Both in same lines

Old operative
(Guide)

New operative
(Learner)

Pepsico Learning Model

Self Learning
On Job

Coaching by
Guide

Coaching by
Line Supervisor

Process & Master Plan

Headline

Learner 107 Nos.

Formal test
for all new
Operatives,
Subjects
under
Learning
tree

Pre
Test

Evalua
tion

All
Operatives
who has
joined after
1st June
2010

Selecti
on of
LEAR
NER

Guides 107 Nos.

Primary
responsibility
lies with the
learner to
learn more on
topics covered
during pre test

Selecti
on of
GUIDE
Based on
Voluntary
nomination /
Decided by
Functional
heads

Progress
monitoring
by circle
facilitators &
Each 1
Teach1 Core
Team

On
the
Job
Trainin
g
Guide will help
learner to
develop
functional skill
with know why
on station
specific area s &
Other topics

Formal test for all

Learners , Similar to
pre test
Passed >75%
Good >80%

Excellent>85% on
overall marking

Post
test

Evalua
tion
Evaluation of
guides
performance to
be on the basis
of the learners
performance in
post test
Evaluation

May be a
criteria for
probation &
Confirmation

Reward &
Recognition

May be a
criteria for
Selection in
Shop floor
academy

Setting Goal for guides & Learners

Learners
>75% marks in post test
evaluation

Headline
Minimum 5 OPLs
& 2 Kaizens
during learning process
Learner should be able to do
the following job individually

Equipment competency Score

(Overall%)
80
75
70

OPL Preparation

65

Kaizen filling

60

Fuguai identification

55

JH / Boil out Activity

50

75

54
Pre test

Various setting / adjustment

Target
Pre test

Process parameters

JH of Equipment
Circle activities
PM & Boil out activities
Machine settings
General inspection of equipment
PPA / Know why
Process parameters
Defect troubleshooting

Target

On job Safety
Efficiencies / Waste

General topics Score (Overall%)

Quality parameters

75

Station specific routine work

70
65

Guides

60
55

Learners performance will

be considered as a Guide
performance

70
59

50
Pre test

Target
Pre test

Target

General TPM
Work Station safety
Food safety
HACCP
Why- Why Analysis
Kaizen / OPL
SOPs / WIs/ Shop floor Discipline
Employee welfare

Catalyst of Each 1 -Teach 1

Provided Online Learning Center on shop floor
For 24x7 learning

Headline

Material on Soft Copy

8 Pillar training Material
5S, Pokayoke, Karakuri
Food safety manual
IMS manual
OEM Manuals
Plant induction manuals
Employee welfare Manual
Soft skills
Videos
Be a process competent
Machine 7 Subject
No debate food safety
No debate human safety
Process wise Dos & Donts
Quick on board videos

Material Available on Hard copy

Step 4 Machine Manuals
Part Problem Matrix
Know why

Process point analysis

CLITA Sheets
JH Step5 Manuals

Safety Manual
JH Manual
JH for operators

OEM manuals
Why Why Sheets

Glimpses of Each 1 -Teach 1

Pretest Evaluation of Learners

Headline
Learners & Guides are using On Line
learning Center for Skill enhancement

On Job Training of Learners

Results, Shop floor training

2010

16

2011YTD

354

100

200

300

400

No. of OJT trainings

Common subject training

2010

63

Review by circle facilitators

2011YTD

965

500

1000

OJT Training Mna Hrs

1500

Overall Result of 107 Nos. of Learners

Equipment Competency Evaluation Score (Over All %)

Headline

75
70
65

76

75

Post test

Target

G
o
o
d

60
55

54

50
Pre test
Pre test

Post test

Target

Evaluation on general topics

75
70

% Marks in Evaluation

% Marks in Evaluation

80

65
60
55

70

70

Post test

Target

59

50
Pre test

G
o
o
d

Ever Highest Records during This initiative

89%
Operatives
Headline
involvement in
a month
Highest OJT
In Nos. &
Man Hrs.

236 Kaizens
recieved in a
Month

783 OPLs
in a
Month

Line 1

Grader to
Destoner

Line 2
Headline

Line 3

Blender

Line 4

Blender

Trim n Pare,
Slicer & Fryer

Extruder

Extruder

Extruder ,
Over & Fryer

Optics &
Seasoning

Fryer &
Seasoning

Fryer &
Seasoning

Seasoning

Packing
machine

Packing
machine

Packing
machine

Packing
machine

QC Checking

QC Checking

QC Checking

QC Checking

Taping
Machine

Taping
Machine

Taping
Machine

Taping
Machine

Line 5
Grader
Serpentine
washer
Trim n Pare,
Slicer & Fryer

Optics &
Seasoning

Packing
machine

QC Checking

Taping Machine

Hold Clear & Carton

Stamping

Old & Regular Casual

M/S Operatives

FG store

Old & Regular Operative

New Operatives

Plan
Actual
Jun-11

May-11

Apr-11

Mar-11

Feb-11

Jan-11

Dec-10

Nov-10

Oct-10

Sep-10

Aug-10

Jul-10

Jun-10

May-10

Apr-10

Mar-10

Feb-10

Jan-10

Over All Production Vs Plan (Tons)

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Reward & Recognition

Headline

Top10 Learners
Appreciation

for

all

>85%

Scorer
Top 10 Guides
Best 3 Guides
Appreciation of Guides whos
Learner achieved >75% Marks

Future Action Plan

Headline
Discussion of the results with all Learners &
Guides who has not achieved pass marking.

7 Sep, 2011

Retraining of <75% Scorer

10 Oct,2011

Preparation of Multi skilling plan & multiskilling

of new Operatives
22 Sep,2011

Horizontal replication of Best Practice

Setup of on line learning center in other plants

Oct, 2011

Sharing of Training videos to other plants

Oct, 2011

Headline

Usage of Potato

Headline

Raw Material
Process
Agro Department works
for production & storage
of potatoes

Finish Product

Processing is done in state of

the art fully automated plant,
untouched by humans

Potato Supply to other plants

Potato production
in field
Cold store 1
Cold store 2
Factory

Potato Chips Production- India

Headline
Pune Plant Potato Requirement

2011
Projection

2010

2009

2008

2007

2006

2005

2004

MT
2011 Projection

2010

2009

2008

2007

2006

2005

2004

MT

India Potato Chips Requirement

Pepsico Contract farming model

Headline
In India only 5 % of potatoes are suitable for Chips processing
Hence we adopted contract farming model to produce Chip Grade Potatoes
for our production

CPRI: Central potato reserch Institute

Potato production Back ground

Some contributing factors which affects potato crop
Soil

Rain Fall

Headline

Best potato cultivating area

Humidity

Ground Water level

Temp.

Regional Market competition in PC

business
After
2009
PepsiCo

Pepsico
Before
2005

PepsiCo

Local
Players &

Local
Players

MNC
Competitors

2006 to
2009

After
2009

Alternate area development

Being market leader, proactively we keep working on ways
and means for improving market supply For this, Now it was
requirement to evolve suitability of chip grade cultivation in
new areas of Maharashtra
Headline

Comparison : New field Vs. Old Field

OLD Field

New Field

Fertile fields

Barren Land

Good Rain Fall

Draught prone area

Ground water Level

Low Ground water

Poor Confidence of farmers

Existing
Newly proposed area
Confident Farmers

Challenges Evaluation
Area

Land

Headline

Challenge

Idea

Level of challenge

Unevel level of land

Lavelling can be done

Low

Waste land

Can be used for potato farming

As a short duration crop

High

Low rain fall area

Optimum usage of water to be

identified for irrigation

High

Ground water Level Low

Well / Tubewell Water can be

used for irrigation

High

Water

Mind blokage

High
Training about potato farming

Farmer

Not ready to change traditional

method
Low Confidence

Money

Technology

Med
Win win model for contract
farming

High

Help to get loan from

nationalised bank

High

Financial investment towards new

Crop insurance
technology

Low technological support In

terms of agri equipments

Med

Sharing the cost burden for

farmers

Med

Provided advance tools.

High

Meeting out challenges

Field Preparation
BigHeadline
Stone piece Land

Medium / Small stone land

Segregation of
medium stones
Old land

Soil Filled land

Leveling of field

Meeting out challenges

Headline

Flood irrigation

Sprinkler irrigation

Drip irrigation

3393966

2129188.8

1774324

No

Yes

Yes

Huge

Medium

Less

No

No

Yes

Average

Average

Max

Cost investment

Less investment

Less than drip

Expensive

Operational ease

Max

Less

Less

Max

Average

Less

Water quanity Lit / Acre (Approx)

Applicability in slopes
Water Loss
Nutrition support
Efficiency of fertilizer

Diesese risk

Drip Irrigation System

Headline

Drip is the best and economic way of irrigation within

modern irrigation practices. It irrigates the crop, drop by
drop at its root zone. So it avoids excess irrigation on
rest of land which is almost 40% saving. It enhances
more acreage under irrigated/cash crop giving more
returns to farmers with available land and water
resources. It also, saves on time, labor for irrigation and
nutrient cost

Headline

In Early stage

Crop Development

Helping to farmers

Headline

Average Installation cost

Rs, 40000/Acre

Farmer need to bear

only 34% of cost

Sharing the investment of drip irrigation

25%
34%

We are helping
farmers financially
For drip irrigation

41%
Govt subsidy

Pepsico

Farmer

We are facilitating
farmers to get Govt.
subsidy
For drip irrigation

Pilot Project

Headline

Seed germinated successfully ON

THE ROCKS

Crop is in flowering stage`

Normal
field crop

Barren
land Crop

Ton / Acre Yield Chip grade

5.2

4.9

Growth Crack

3%

2%

Multiplication ratio

6.5

KPIs

Result
Satisfactory
Good
Satisfactory

We found very encouraging results, we

have replicated
drip irrigation to traditional fields &
increased the infertile land to fertile
land

Infertile land to fertile land

300

Drip Irrigation
270

1000

900
814

250

800

200

600

150

120
400

100
50

After good yield harveststocked

Crop is in senescence stage

286

200

10

0
2009

2010
Acres

2011

2009

2010
Acres

2011

Support to farmers
Farmer support
Headline

Financial

Technical
Technical know

Direct support
Drip irrigation
Output quality
incentive
Subsidized
chemical kits

Facilitation
Bank Loans
Fertilizer
availability
Crop
Insurance
Soil Sampling
Procuring
equipments

how training on
agronomical
practices
Awareness about
crop protection

Technical visits
Expert advocacy

Catering other plant demand in Kharif seasons

Kharif geography supply Potato in
Headline
SEPTEMBER
OCTOBER AND
NOVEMBER MONTHS

Rabi 75%
Jan - Mar

Nagrota
Punjab

Channo
NEW DELHI

Meerut

Pune
Ujiain

KOLKATA

Indore

Pune

West (Aug- Nov)

Belguam

CHANNO
KOLKATA
(1800 Kms)
(4 Days)

Chennai
Bangalore
Hassan Kolar

Far South (Aug - Nov)

Kharrif 25%
Aug - Nov

About potato & Loss

Potatoes are living beings, They breaths continuously. In case
Headline
of suffocation / Pressure damage potato gets rottage

Pressure
damage

Rottage

Rottage potato
Transit loss

12

Transit Rottage Loss

10

10% Potato loss is worth

Rs. 76 Lakh

2
0
2007

2010
2007

2010

Analysis
Why Potato gets rottage
Headline

Fungal growth in potato

Damage of potato

Pressure damage on
bottom layer & body
sides
Rubbing / Extra
pressure

Suffocation of potato

Poor aeration in lower

layers

No air circulation
facility

Design constraint

Improvement
Reduced Pressure damage by providing padding
on trucks forHeadline
potato transportation
No Padding
Straw jute
Padding

Before

After

Improvement

Headline

Karakuri
Provided air pipe which takes fresh air from
Atmosphere when truck moves and gives fresh air
Air to sack stored in the truck

Air space maintained for air flow

during loading

Result

Headline

Saving
81 Lakhs
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2007
2007

Actual 2010
Actual 2010

Target 2010
Target 2010

Headline