Running head: TOTAL QUALITY MANAGEMENT
Evaluation of Quality at PepsiCo
Student’s Name
Institutional Affiliation
1
TOTAL QUALITY MANAGEMENT
2
Evaluation of Quality at PepsiCo
PepsiCo is the second largest food a beverage manufacturing company in the world (Gregory,
2017). Its excellence in the world spectrum has been driven by both structural and procedural
strategies that the PepsiCo’s management has employed in its many years of business. The
structural and procedural reforms have centered on producing quality products that are aimed at
streamlining competition in the consumer market. Nevertheless, this rise to glory has not come
without a cost.
PepsiCo’s total quality management strengths have been centered on quality products,
affordability, customer and employee satisfaction and flexible pricing strategies (Gregory, 2017).
However, PepsiCo still struggles with total quality management issues that result from the
market itself. Therefore, in this study, an analysis of the total quality management aspects at
PepsiCo is done and an improvement plan developed.
Source of Quality Problems
Healthy Living
Fast foods have fallen victim of the current research programs that cite them as the major causes
of lifestyle diseases, especially among the urban consumers (Counihan & Van Esterik, 2012).
Skeptical customers have therefore started shunning fast food in favor of more natural foods.
PepsiCo has mostly found itself on the receiving side since this new research imposes the fact
that PepsiCo’s products do not hold the necessary quality required for sustaining the urban
health.
Cultural Dynamisms
TOTAL QUALITY MANAGEMENT
3
PepsiCo’s brand of products is mainly snacks which have less value in terms of nutritional
content. Therefore, PepsiCo has to contend with the nutritional quality of cultural foods that are
considered to be of more nutritional value.
Food Processing
Even though PepsiCo’s food processing speaks high quality in terms of food safety and health,
there is always the rising critic concerning industrial food processing. The use of artificial
products in food processing has been highly criticized with most consumer groups preferring
more natural ingredients. This has cause a negative impact on product quality.
Improvement Plan
Total quality management requires the observation of TQM principles not only regarding
customer satisfaction but also in business processes. Luckily, for PepsiCo, this has not been
much of problem. The horizontal management structure and the “performance with purpose”
slogan at PepsiCo have gone a long way in assuring quality (PepsiCo, 2012) Nevertheless, the
above quality mentioned quality concerns threaten to shake the market influence of this food and
beverage giant. Below is procedural Six Sigma analysis that attempts to solve the quality
problems at PepsiCo.
Defining the problem: How does PepsiCo ensure that the products are safe in terms of health
and also reassure consumers that the ingredients used are safe and not harmful as alleged?
Measuring current progress: the current manufacturing process has so far proved successful
based on the market share held by PepsiCo products.
TOTAL QUALITY MANAGEMENT
4
Analysis of variations – the variations in quality are caused by contemporary issues that seek to
discredit seemingly authentic products. Nevertheless, such variations could be the basis for
product improvement that could help deal with the quality problems experienced at PepsiCo.
Improving the Product – This is the most important step to overcome the quality problems at
PepsiCo. The recommendations here include; resorting to permanently baked snacks rather than
fried ones (Bagad, 2008). Baked snacks contain less oil which has been cited as one of the cancer
causing agent. Baked snacks also pave way for adding nutritional supplements without affecting
their levels.
The next strategy at improvement hints at producing more organic drinks with natural
ingredients. This strategy should also incorporate clear quality message that should help regain
confidence among consumers.
Control – PepsiCo should be in control of their own advertising scheme, which means that they
should be able to ward off negative campaigns against their products.
TOTAL QUALITY MANAGEMENT
5
References
Bagad, V.S. (2008). Total Quality Management. Technical Publications.
Gregory, Lawrence. (2017). PepsiCo’s Operations Management, 10 Decisions, Productivity.
Panmore Institute. Retrieved from http://panmore.com/pepsico-operations-management10-decisions-areas-productivity
Counihan, C., & Van Esterik, P. (Eds.). (2012). Food and culture: A reader. Routledge.
PepsiCo. (2012). About. Retrieved from https://www.pepsico.com/about/about-the-company
Running head: TOTAL QUALITY MANAGEMENT
Evaluation of Quality at PepsiCo
Student’s Name
Institutional Affiliation
1
TOTAL QUALITY MANAGEMENT
2
Evaluation of Quality at PepsiCo
PepsiCo is the second largest food a beverage manufacturing company in the world (Gregory,
2017). Its excellence in the world spectrum has been driven by both structural and procedural
strategies that the PepsiCo’s management has employed in its many years of business. The
structural and procedural reforms have centered on producing quality products that are aimed at
streamlining competition in the consumer market. Nevertheless, this rise to glory has not come
without a cost.
PepsiCo’s total quality management strengths have been centered on quality products,
affordability, customer and employee satisfaction and flexible pricing strategies (Gregory, 2017).
However, PepsiCo still struggles with total quality management issues that result from the
market itself. Therefore, in this study, an analysis of the total quality management aspects at
PepsiCo is done and an improvement plan developed.
Source of Quality Problems
Healthy Living
Fast foods have fallen victim of the current research programs that cite them as the major causes
of lifestyle diseases, especially among the urban consumers (Counihan & Van Esterik, 2012).
Skeptical customers have therefore started shunning fast food in favor of more natural foods.
PepsiCo has mostly found itself on the receiving side since this new research imposes the fact
that PepsiCo’s products do not hold the necessary quality required for sustaining the urban
health.
Cultural Dynamisms
TOTAL QUALITY MANAGEMENT
3
PepsiCo’s brand of products is mainly snacks which have less value in terms of nutritional
content. Therefore, PepsiCo has to contend with the nutritional quality of cultural foods that are
considered to be of more nutritional value.
Food Processing
Even though PepsiCo’s food processing speaks high quality in terms of food safety and health,
there is always the rising critic concerning industrial food processing. The use of artificial
products in food processing has been highly criticized with most consumer groups preferring
more natural ingredients. This has cause a negative impact on product quality.
Improvement Plan
Total quality management requires the observation of TQM principles not only regarding
customer satisfaction but also in business processes. Luckily, for PepsiCo, this has not been
much of problem. The horizontal management structure and the “performance with purpose”
slogan at PepsiCo have gone a long way in assuring quality (PepsiCo, 2012) Nevertheless, the
above quality mentioned quality concerns threaten to shake the market influence of this food and
beverage giant. Below is procedural Six Sigma analysis that attempts to solve the quality
problems at PepsiCo.
Defining the problem: How does PepsiCo ensure that the products are safe in terms of health
and also reassure consumers that the ingredients used are safe and not harmful as alleged?
Measuring current progress: the current manufacturing process has so far proved successful
based on the market share held by PepsiCo products.
TOTAL QUALITY MANAGEMENT
4
Analysis of variations – the variations in quality are caused by contemporary issues that seek to
discredit seemingly authentic products. Nevertheless, such variations could be the basis for
product improvement that could help deal with the quality problems experienced at PepsiCo.
Improving the Product – This is the most important step to overcome the quality problems at
PepsiCo. The recommendations here include; resorting to permanently baked snacks rather than
fried ones (Bagad, 2008). Baked snacks contain less oil which has been cited as one of the cancer
causing agent. Baked snacks also pave way for adding nutritional supplements without affecting
their levels.
The next strategy at improvement hints at producing more organic drinks with natural
ingredients. This strategy should also incorporate clear quality message that should help regain
confidence among consumers.
Control – PepsiCo should be in control of their own advertising scheme, which means that they
should be able to ward off negative campaigns against their products.
TOTAL QUALITY MANAGEMENT
5
References
Bagad, V.S. (2008). Total Quality Management. Technical Publications.
Gregory, Lawrence. (2017). PepsiCo’s Operations Management, 10 Decisions, Productivity.
Panmore Institute. Retrieved from http://panmore.com/pepsico-operations-management10-decisions-areas-productivity
Counihan, C., & Van Esterik, P. (Eds.). (2012). Food and culture: A reader. Routledge.
PepsiCo. (2012). About. Retrieved from https://www.pepsico.com/about/about-the-company
Running head: TOTAL QUALITY MANAGEMENT
Evaluation of Quality at PepsiCo
Student’s Name
Institutional Affiliation
1
TOTAL QUALITY MANAGEMENT
2
Evaluation of Quality at PepsiCo
PepsiCo is the second largest food a beverage manufacturing company in the world (Gregory,
2017). Its excellence in the world spectrum has been driven by both structural and procedural
strategies that the PepsiCo’s management has employed in its many years of business. The
structural and procedural reforms have centered on producing quality products that are aimed at
streamlining competition in the consumer market. Nevertheless, this rise to glory has not come
without a cost.
PepsiCo’s total quality management strengths have been centered on quality products,
affordability, customer and employee satisfaction and flexible pricing strategies (Gregory, 2017).
However, PepsiCo still struggles with total quality management issues that result from the
market itself. Therefore, in this study, an analysis of the total quality management aspects at
PepsiCo is done and an improvement plan developed.
Source of Quality Problems
Healthy Living
Fast foods have fallen victim of the current research programs that cite them as the major causes
of lifestyle diseases, especially among the urban consumers (Counihan & Van Esterik, 2012).
Skeptical customers have therefore started shunning fast food in favor of more natural foods.
PepsiCo has mostly found itself on the receiving side since this new research imposes the fact
that PepsiCo’s products do not hold the necessary quality required for sustaining the urban
health.
Cultural Dynamisms
TOTAL QUALITY MANAGEMENT
3
PepsiCo’s brand of products is mainly snacks which have less value in terms of nutritional
content. Therefore, PepsiCo has to contend with the nutritional quality of cultural foods that are
considered to be of more nutritional value.
Food Processing
Even though PepsiCo’s food processing speaks high quality in terms of food safety and health,
there is always the rising critic concerning industrial food processing. The use of artificial
products in food processing has been highly criticized with most consumer groups preferring
more natural ingredients. This has cause a negative impact on product quality.
Improvement Plan
Total quality management requires the observation of TQM principles not only regarding
customer satisfaction but also in business processes. Luckily, for PepsiCo, this has not been
much of problem. The horizontal management structure and the “performance with purpose”
slogan at PepsiCo have gone a long way in assuring quality (PepsiCo, 2012) Nevertheless, the
above quality mentioned quality concerns threaten to shake the market influence of this food and
beverage giant. Below is procedural Six Sigma analysis that attempts to solve the quality
problems at PepsiCo.
Defining the problem: How does PepsiCo ensure that the products are safe in terms of health
and also reassure consumers that the ingredients used are safe and not harmful as alleged?
Measuring current progress: the current manufacturing process has so far proved successful
based on the market share held by PepsiCo products.
TOTAL QUALITY MANAGEMENT
4
Analysis of variations – the variations in quality are caused by contemporary issues that seek to
discredit seemingly authentic products. Nevertheless, such variations could be the basis for
product improvement that could help deal with the quality problems experienced at PepsiCo.
Improving the Product – This is the most important step to overcome the quality problems at
PepsiCo. The recommendations here include; resorting to permanently baked snacks rather than
fried ones (Bagad, 2008). Baked snacks contain less oil which has been cited as one of the cancer
causing agent. Baked snacks also pave way for adding nutritional supplements without affecting
their levels.
The next strategy at improvement hints at producing more organic drinks with natural
ingredients. This strategy should also incorporate clear quality message that should help regain
confidence among consumers.
Control – PepsiCo should be in control of their own advertising scheme, which means that they
should be able to ward off negative campaigns against their products.
TOTAL QUALITY MANAGEMENT
5
References
Bagad, V.S. (2008). Total Quality Management. Technical Publications.
Gregory, Lawrence. (2017). PepsiCo’s Operations Management, 10 Decisions, Productivity.
Panmore Institute. Retrieved from http://panmore.com/pepsico-operations-management10-decisions-areas-productivity
Counihan, C., & Van Esterik, P. (Eds.). (2012). Food and culture: A reader. Routledge.
PepsiCo. (2012). About. Retrieved from https://www.pepsico.com/about/about-the-company
Purchase answer to see full
attachment