Frito Lay

Operation
Management
Manufacturing

Dimyati Muaadz Mubaarok

Panji Akbar Gunawan

Frito-Lay 10 Operations
Management Decision
1. Product Design
Frito-Lay always improve their products, their products must be
conceived, formulated, tested, and evaluated for profitability.
2. Quality
Standard of the ingredient must be best quality
3. Process Strategy
Frito Lay process’s should be suitably design for their high volumes and
small variety, from that they must use high technology or unique machines that
make big investment. They also focus to make a green production.
 Frito-Lay 10 Operations
Management Decision
4. Location Strategy
Their products must be use fresh material,
from that Frito Lay has to setup raw material near to
process industry. Fixed, variable and transportation cost
as well the freshness must be consider.
5. Layout Strategy
Assembly lines are laid out to be easy to use
and a large number of product specific tasks can be
completed in one assembly lines. The product will make
in one large process (washed, peeled, sliced, and
cooked).
Frito-Lay 10 Operations
Management Decision
6. Human Resources and Job Design
Frito Lay have a human resources that make the
employee comfort to working in the company. They give some
rewards and what a employee needed. That’s why the
turnover in the Frito Lay is very low.
7. Supply Chain Management
Supply chain in this company must be secure and fast,
they must bring raw material from their own farm to factory
and then distribution it into warehouse by themselves. That
make movement of product and production will be easier.
Frito-Lay 10 Operations
Management Decision
8. Inventory Management
Frito Lay have inventory turnover 200 times per year. This make
the products will be freshness.
9. Scheduling
Frito Lay is operate in 24/7, to fulfill high demand of utilization
of capital intensive.
10. Maintenance
Automated equipment requires reliable system and effective
maintenance, because the downtime is very costly and can lead to late
deliveries. Their workforce trained to recognize problem early and
professional maintenance personnel are available on every shift.