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qc in pepsi

  1. 1. Quality Control Introduction Deming, W. Edwards (1900-1993), was an American management consultant. His teachings were considered a leading influence in the revival of the Japanese economy after Japan's defeat in World War II (1939-1945). In the 1980's, major corporations in the United States and other countries began to adopt his principles. Deming developed quality control and management systems that emphasized solving problems through cooperation between workers and management. He said that quality should be stressed at each step of the manufacturing process. He also maintained that most product defects and service problems result from faults in management rather than from the carelessness of workers. William Edwards Deming was born in Sioux City, Iowa. He received a doctor's degree in mathematical physics from Yale University in 1928. He was a mathematical physicist at the U.S. Department of Agriculture from 1927 to 1939. During World War II, he taught engineers how to use statistics to increase the production of war supplies. In 1950, a group of Japanese scientists and engineers invited Deming to Japan to lecture on principles of quality control. Some Japanese companies that applied his methods increased their productivity and earned large profits, and his ideas spread. In addition to his work as a management consultant, Deming was a professor of statistics at New York University from 1946 to 1993. 1
  2. 2. Quality Control Concept of Quality Control What is control? Control, as an essential aspect of management, arises from the inherent imperfections of things and people, both within a particular plant and outside of it in the form of suppliers and customers. What is Quality? According to Professors Westing, Fine and Zenz, “Quality is an expression of the measured properties, conditions or characteristics of a product or process, usually stated in terms of grades, classes or specifications and determined by the application that is involved. Quality of a product, object or process refers to its I. Characteristics II. Attributes III. Properties, and IV. Conditions Which are stated either in terms of certain specification or gradation and is determined by the user by its application who ultimately determine the I. Demand II. Utility, and III. Price of the product, object or process in terms of the quality which he receives for his use. What is quality control? The examination of output data to ensure that it has been properly processed and meets established accuracy standards. 2
  3. 3. Quality Control Why Quality Control? Quality conveys different meanings to different people. But for everyone, one thing is common i.e. the quality must be such which may satisfy the purchaser and may, therefore, be helpful in fulfilling the need for which the purchaser has gone for the purchaser is interested in going for a standard material but the standard should conform to his specifications. The purchaser- whether industrial, commercial or ultimate consumer, today they are more conscious to realize his money’s worth. What he spends, he must get back in terms of utility gained (and satisfaction too). While buying, a purchaser wants to be sure that what he is buying is worth the money he is going to spend. The industries, there fore, are today faced with the problem of satisfying their ultimate consumer and hence they are required to make sure that whatever they are sending to the market will be gladly accepted and is a quality product which is able to stand the competition in the market. Quality control is an area wherein imperfections of a product, object or process are detected and correctives applied. Imperfections in a product, object or process are usually inborn. Perfection neither possible nor expected. Quality never refers to perfection in all respects. Quality is not absolute in value but it is relative. This does not mean that quality control is not necessary. It is necessary to guard against inherent imperfections. Everyone in the organization, therefore, has to exert his maximum to see that these imperfections are reduced to the minimum and control is tightened at all points so that the quality of the product, object or process may at least be maintained, if not improved. Statistically, quality control is a set of formulae, exercises and tests, which help the controller to examine the products, etc., to know whether they conform to the standards prescribed for them. To a scientist, quality control is a laboratory analysis, which helps in determining the properties of the product, etc., and in giving a generalized view regarding 3
  4. 4. Quality Control the quality to which he has arrived at after conduction vigorous laboratory tests. But to an ordinary and practical common man quality control is simply a conceptual expression, which certainly goes a long way in assuring him about the product’s utility, want- satisfying capacity and the price. A producer, on the other hand, is interested in increasing his turnover and maximizing his profits. He is the man who has to measure the quality of his product in terms of the economic value of his product, which he is pumping in the pipeline. His measurement relates to: 1. Utility of the product vis-à-vis its price; 2. Cost of production of the product vis-à-vis the price received; and 3. The product pumped into the market vis-à-vis the competitive product in relation to its utility, price, and cost of production and market acceptability. The above economic and competitive factors give rise to quality management of the product, object or process. The market is important so far as the producer is concerned. To a producer, therefore, quality control means not only formulae, exercise, simple and laboratory tests utility or wants-satisfying capacity of his product but it means to him a composite value of quality which should be in conformity to the requirements of the market in respect of: 1. Design, 2. Functional use, and 3. Acceptability. In short, today quality has become crucial hinge for business success or failure. So quality control must be structured explicitly and measurably so as to contribute to business profitability and positive cash flow. 4
  5. 5. Quality Control STAGES OF QUALITY CONTROL The quality control can be divided into five stages: 1. Receiving stage. 2. Inspection stage. 3. Main stores stage. 4. Production stage. 5. Design and Development stage. 1. Receiving stage: Quality control at receiving stage signifies visual inspection of materials received with a view to early detection of some major defects apparently visible in the incoming materials. Such a procedure keeps the receiving section vigilant and saves a great amount of extra labour and money, which might be spent while going for the detailed inspection. 2. Inspection stage: Quality control by inspection of incoming materials before they are stocked is one of the most important controlling stages, which obviously goes a long way in maintaining the quality of the product stored and pumped in the production pipeline. Inspection refers to the critical examination of materials bought and later stored and then used in the production process. It is the inspection stage at which the goods are accepted if they are suitable for the purpose. Hence, in the inspection the incoming materials are accepted if they are of proper quality and vice- versa. 3. Main stores stage: Storage preserves and maintains the quality of materials stored and keeps the quality intact till materials are issued to the user departments. A vigilant, responsible and dynamic storekeeper helps in keeping the stored materials in serviceable condition. 5
  6. 6. Quality Control He, therefore, is responsible for controlling the quality of materials till they are in his custody. A vigilant storekeeper may not allow the materials to deteriorate and take appropriate action whenever it is needed. He will also not allow the issue clerk to issue the materials, which have developed some defects during storage. Thus he will save the organisation’s valuable time and money by sopping the supply of the materials deteriorated resulting in production of sub-standard items. At this stage too he, thus, contributes his mite to control the quality. For effective quality control at this stage the management of the organization must help his stores personnel in the following way:  By assisting them in identifying key quality tasks within the stores.  By giving them proper training.  By helping them in checking that the space is adequate for effective internal transportation and storage of materials.  By assisting them in finding and overcoming bottlenecks, which restrict operation.  By assisting them in spotting to what extent the techniques are likely to produce results.  By assisting them in creating a climate of gaining enthusiastic co- operation from all concerned at all levels.  And lastly, they should feel that they are part of the organization and their involvement is necessary for the organization. 6
  7. 7. Quality Control 4. Production stage: Though controlling the quality at the production stage is not the direct responsibility of the purchase department or stores department but it is equally necessary that at production stage too the quality of the materials being used is controlled so that the end-product’s quality is ensured. For this a method and special skill is required to ensure a proper examination of the products in process and to get the quality inspected, examined and correctives, if required, applied at the process stage itself. This will save the production department form unnecessary embarrassment after the end-product is finally examined by the quality controller. This will also enable the production department to detect the faults timely and take corrective actions the moment they are detected. This surely will reduce the scrap and thus affect favourably the cost of production. 5. Design and Development stage: The responsibility of design and development department is:  To develop the product,  To design the product,  To prescribe the standard of the product, and  To prescribe specifications. It is the standard, design and specifications, which form the manufacturing of a product. Final products coming out of the manufacturing unit conform to such specification standards and design. Thus need of quality control at design and development stage cannot be overemphasized since it is at this stage that the quality of the product to be manufactured is prescribed and then often checked according to predetermined prescriptions. This checking goes a long way in maintaining the quality of the product coming in the market for the use of commercial industrial or ultimate consumer. 7
  8. 8. Quality Control Advantages of Quality Control Both buyers and sellers are benefited by a good quality control. The following are the principle advantages of a good quality system:  Suppliers quality control system reduces the buyer’s inspection cost and his confidence in the reliability of the supplier increases.  Minimum possible refection and wider acceptance of the supply is made possible by the supplier’s good and effective quality control system. This again helps in establishing good buyer-seller relations.  Minimum inspection time and effort help the vendor as well as purchaser in delivering and receiving the supply at a lower cost.  Prospects of zero defects increase. Zero defects prevent defects “by developing a deep concern and personal awareness on the part of each employee in most cases by employee identification with each unit produced.  Scraps are minimized and wastages are reduced due to quality control. As a result cost gets reduced and profit goes up.  Goodwill of both vendor and purchaser goes high, as there are fewer difficulties and problems in the market for the quality product.  Quality consciousness is developed resulting in benefit to all concerned- the vendor, the purchase and the ultimate consumer. 8
  9. 9. Quality Control  It results in reduction of locked up capital due to decrease in inventory.  Accumulation of absolute materials is reduced to the minimum.  Over and under-stocking seldom comes to the fore resulting in rapidity of turnover of materials.  Sometimes inspection at purchaser’s end is eliminated if with each consignment the vendor’s certificate and statistical data regarding the quality of supply is enclosed. In western countries the practice of certified quality control, quality certification or vendor’s certification is followed. This helps in elimination of inspection if, of course, the buyer believes in such certification; he has no reason to disbelieve unless he has an experience which has shattered his faith and trust in the suppliers certification.  In today’s competitive environment, all organizational activities are directed toward the satisfaction of customer requirements, since satisfied customers fuel revenue, growth, and prosperity. Customers define the quality of the products and services that they receive, and the organizations can meet those expectations through quality control programme.  Quality control is particularly important to multi-national Fast Moving Consumer Goods (FMCG) companies due to their global presence, large array of important brands to protest and complex supply chain.  Quality can influence a company’s culture and its image as perceived by consumers and customers, and can be a tool for value creation. 9
  10. 10. Quality Control The 9 M’s: Fundamental Factors Affecting Quality The quality of products and services is directly influenced in nine basic areas i.e. markets, money, management, men, motivation, materials, machines and mechanization, modern information methods and mounting product requirements. 1. Market: The number of new and improved products offered in the marketplace continues to grow at an explosive rate. Many of these products are an outgrowth of new technologies involving not only the product itself but the materials and methods by which it is manufactured. As market broaden in scope, the scope of goods and services become more and more specialized. Therefore it is necessary for the businesses to be highly flexible and be able to respond rapidly and appropriately in different markets worldwide. 2. Money: As competition has increased, profit margins have decreased. Automation forced companies to spend heavily on new equipment's and processes. To absorb these costs productivity has to the increased, which means loss production, reworks, and scrap has to be kept to the minimum. Quality costs have to keep low which mean cost saving due to quality improvement has to be kept in prime focus. 3. Management: Today responsibility for product quality has to be distributed among various functions. Eg: Design for quality of product design. Manufacturing for process quality, service for after sales quality and marketing for establishing the quality of the new product required. This means that top management must ensure proper allocation of responsibilities to all to achieve the organization goals. 10
  11. 11. Quality Control 4. Men: The rapid growth of technology and opening of new fields have created a great demand for workers with specialized knowledge. This specialization of people has created a need for persons who can bring together this knowledge to plan and create operating systems that will bring the desired results. 5. Motivation: The increased complexity of the product means that every employee has to give his best if quality is to be maintained. This requires that Quality consciousnesses among employees are high. This can be achieved only through continuous education and motivation of the work force. Motivation therefore needs to be on the top of the-agenda for any management team of an organization. 6. Materials: Due to high material costs engineers have to constantly come up with ways to bring down the cost of material used. They also need to come up with new alternate materials that can replace costlier older material. In this way the cost of the product will go down and quality product can be made available to the consumer at reasonable price. 7. Machines and Mechanization: The demand to cut costs is forcing companies to use newer machines, which will deliver better quality and product using lesser cycle times. Further the machines need to deliver higher quantities also to keep production costs low. This means maintaining of these machines also becomes critical as any and only down time of these machines leads to increased costs. 11
  12. 12. Quality Control 8. Modern Information Methods: With the spread of computers, data collection, storage retrieval and transmission of information have become easy. This also means that the right information can be given to the right person at his workplace. In addition, the new and constantly improving methods of data processing have helped the management to acquire useful, accurate, timely, and predictive information. Such useful, accurate, timely information will help the management to take right decisions. 9. Mounting Product Requirements: Increased complexity and higher performance requirements for products have emphasized the importance of product safety and reliability. Constant attention must be given to make certain that no factors, known or unknown, enter the process to decrease the reliability of components or systems. From the above, it can be seen that there are many factors affecting Quality and organizations must continually change to keep pace with these requirements. As responsible citizens it is our duty to demand Quality from our suppliers and deliver Quality to our customers. Quality is an endless journey. It is like walking towards the horizon. No matter how much far you walk, it does not change where the horizon is. 12
  13. 13. Quality Control Principles- To Enhance Quality Successful businesses inevitably place great emphasis on managing quality control. For this careful and planned steps are taken to ensure that the products and services offered to their customers are consistent and reliable and truly meet their customers' needs. Multinational corporations and other business organization have entire departments of highly trained specialists to design and implement their quality control programs. In order to develop or improve a quality control program, it is necessary to quality management principles. The principles are as follows: 1. Customer-Focused Organization: Organizations depend on their customers and therefore should understand current and future customer needs, meet customer requirements, and strive to exceed customer expectations. 2. Leadership: Leaders are needed to establish unity of purpose, direction, and the internal environment of an organization. They must try to create such environment in which people can become fully involved in achieving the objectives of the organization. 3. Involvement of People: People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the benefit of the organization. 13
  14. 14. Quality Control 4. Process Approach: A desired result is achieved more efficiently when related resources and activities are managed as a process. 5. System Approach to Management: Identifying, understanding, and managing a system of interrelated processes for a given objective contributes to the effectiveness and efficiency of the organization. 6. Improvement as regular practice: Continual improvement is a permanent objective. 7. Factual Approach to Decision Making: Effective decisions and actions are based on the logical and intuitive analysis of data and information. 8. Supplier Relationship: Relationship between the organization and its suppliers has to be mutually beneficial that will enhance the ability of both organizations to add value. 14
  15. 15. Quality Control QC Tool’s Checksheet: The function of a checksheet is to present information in an efficient, graphical format. This may be accomplished with a simple listing of items. However, the utility of the checksheet may be significantly enhanced in some instances, by incorporating a depiction of the system under analysis into the form. Pareto Chart: Pareto charts are extremely useful because they can be used to identify those factors that have the greatest cumulative effect on the system, and thus screen out the less significant factors in an analysis. Ideally, this allows the user to focus attention on a few important factors in a process. 15
  16. 16. Quality Control Flowchart: Flowcharts are pictorial representations of a process. By breaking the process down into its constituent steps, flowcharts can be useful in identifying where errors are likely to be found in the system. Histogram: Histograms provide a simple, graphical view of accumulated data, including its dispersion and central tendancy. In addition to the ease with which they can be constructed, histograms provide the easiest way to evaluate the distribution of data. 16
  17. 17. Quality Control Scatter Diagram: Scatter diagrams are graphical tools that attempt to depict the influence that one variable has on another. A common diagram of this type usually displays points representing the observed value of one variable corresponding to the value of another variable. Cause and Effect Diagram: This diagram is also called an Ishikawa diagram (or fish bone diagram). It is used to associate multiple possible causes with a single effect. Thus, given a particular effect, the diagram is constructed to identify and organize possible causes for it. The primary branch represents the effect (the quality characteristic that is intended to be improved and controlled) and is typically labeled on the right side of the diagram. Each major branch of the diagram corresponds to a major cause (or class of causes) that directly relates to the effect. Minor branches correspond to more detailed causal factors. This type of diagram is useful in any analysis, as it illustrates the relationship between cause and effect in a rational manner. 17
  18. 18. Quality Control Control Chart: The control chart is the fundamental tool of statistical process control, as it indicates the range of variability that is built into a system (known as common cause variation). Thus, it helps to determine whether or not a process is operating consistently or if a special cause has occurred to change the process mean or variance. The bounds of the control chart are marked by upper and lower control limits that are calculated by applying statistical formulas to data from the process. Data points that fall outside these bounds represent variations due to special causes, which can typically be found and eliminated. On the other hand, improvements in common cause variation require fundamental changes in the process. 18
  19. 19. Quality Control Quality Circle- A Way To Enhance Quality Control Introduction: People are the greatest assets of an organization, because, through people all other resources are converted into utilities. However, management of ‘People Resources’ has always been a vexed problem ever since the beginning of organized human activities. A number of managerial responses have been developed to answer this question. Participate methods in the workplace are one way to improve both the work environment for employees and productivity and quality for the company. Quality Circle is one of the employee participation methods. It implies the development of skills, capabilities, confidence and creativity of the people through cumulative process of education, training, work experience and participation. It also implies the creation of facilitative conditions and environment of work, which creates and sustains their motivation and commitment towards work excellence. Quality Circles have emerged as a mechanism to develop and utilize the tremendous potential of people for improvement in product quality and productivity. 19
  20. 20. Quality Control Genesis of quality control: After the Second World War Japanese economy was in the doldrums. Seeing this disastrous effect of war, Americans decided to help Japan in improving the quality standards of their products. General Douglas Mac Arthur who, at that time, was the commander of the occupational forces in Japan took up the task of imparting quality awareness among Japanese to help them improve their products and the reliability of manufacturing systems including men, machine and materials. Thus, by 1975, they were topping the world in quality and productivity. This astonishing and unique achievement in modern history became an eye – opener to the world. Industrialists and politicians from all over the world started visiting Japan to know how they have achieved such magical results in such a short span. The answer to this was painstaking and persevering efforts of the Japanese leaders and workers and the development and growth of the philosophy of small working groups. This resulted in the Quality Circle concept being accepted all over the world as a very effective technique to improve the total quality of work life. Definition: Quality Circle is a small group of 6 to 12 employees doing similar work who voluntarily meet together on a regular basis to identify improvements in their respective work areas using proven techniques for analyzing and solving work related problems coming in the way of achieving and sustaining excellence leading to mutual upliftment of employees as well as the organization. It is "a way of capturing the creative and innovative power that lies within the work force". 20
  21. 21. Quality Control Philosophy: Quality Circles is a people – building philosophy, providing self-motivation and happiness in improving environment without any compulsion or monetary benefits. It represents a philosophy of managing people specially those at the grass root level as well as a clearly defined mechanism and methodology for translating this philosophy into practice and a required structure to make it a way of life. It is bound to succeed where people are respected and are involved in decisions, concerning their work life, and in environments where peoples’ capabilities are looked upon as assets to solve work-area problems. The Quality Circle philosophy calls for a progressive attitude on the part of the management and their willingness to make adjustments, if necessary, in their style and culture. If workers are prepared to contribute their ideas, the management must be willing to create a congenial environment to encourage them to do so. Concept: The concept of Quality Circle is primarily based upon recognition of the value of the worker as a human being, as someone who willingly activates on his job, his wisdom, intelligence, experience, attitude and feelings. It is based upon the human resource management considered as one of the key factors in the improvement of product quality & productivity. Quality Circle concept has three major attributes:  Quality Circle is a form of participation management.  Quality Circle is a human resource development technique.  Quality Circle is a problem solving technique. 21
  22. 22. Quality Control Objectives: The objectives of Quality Circles are as follows: 1. Change in Attitude:  From "I don’t care" to "I do care".  Continuous improvement in quality of work life through humanization of work. 2. Self Development:  Bring out ‘Hidden Potential’ of people.  People get to learn additional skills. 3. Development of Team Spirit:  Individual V/s Team- “I could not do but did it”.  Eliminates inter-departmental conflicts. 4. Improves Organizational Culture:  Positive working environment.  Total involvement of people at all levels.  Higher motivational level. Organization structure: A Quality Circle has an appropriate organisational structure for its effective and efficient performance. It varies from industry to industry, organisation to organisation. But it is useful to have a basic framework as a model. The structure of a Quality Circle consists of the following elements. 22
  23. 23. Quality Control 1. Steering committee: This is at the top of the structure. It is headed by a senior executive and includes representatives from the top management personnel and human resources development people. It establishes policy, plans and directs the program and meets usually once in a month. 2. Co-coordinator: He may be a Personnel or Administrative officer who co-ordinates and supervises the work of the facilitators and administers the programme. 3. Facilitator: He may be senior supervisory officer. He co-ordinates the works of several quality circles through the Circles leaders. 4. Circle leader: Leaders may be from lowest level workers or Supervisors. A Circle leader organizes and conducts Circle activities. 5. Circles members: They may be staff workers. Without circle members the programme cannot exist. They are the lifeblood of quality circles. They should attend all meetings as far as possible, offer suggestions and ideas, participate actively in-group process, take training seriously with a receptive attitude. 23
  24. 24. Quality Control Launching of quality circle: The major prerequisite for initiating Quality Circles in any organisation is the total understanding of, as well as complete conviction and faith in the participative philosophy, on the part of the top and senior management. In the absence of a commitment from the Chief Executive to support the Quality Circle movement totally, it would be inadvisable to seriously attempt the starting of Quality Circles. The launching of Quality Circles involves the following steps:  Expose middle level executives to the concept.  Explain the concept to the employees and invite them to volunteer as members of Quality Circles.  Nominate senior officers as facilitators.  Form a steering committee.  Arrange training of co-ordinators, facilitators in basics of Quality Circle approach, implementation, techniques and operation. Later facilitator may provide training to Circle leaders and Circle members.  A meeting should be fixed preferably one hour a week for the Quality Circle to meet.  Arrange the necessary facilities for the Quality Circle meeting and its operation. 24
  25. 25. Quality Control Process of operation:  Problem identification: Identify a number of problems.  Problem selection: Decide the priority and select the problem to be taken up first.  Problem Analysis: Problem is clarified and analyzed by basic problem solving methods.  Generate alternative solutions: Identify and evaluate causes and generate number of possible alternative solutions.  Select the most appropriate solution: Discuss and evaluate the alternative solutions by comparison in terms of investment and return from the investment. This enables to select the most appropriate solution.  Prepare plan of action: Prepare plan of action for converting the solution into reality which includes the considerations "who, what, when, where, why and how" of solving problems.  Present solution to management circle members: Present solution to management fore approval.  Implementation of solution: The management evaluates the recommended solution. Then it is tested and if successful, implemented on a full scale. 25
  26. 26. Quality Control Basic problem solving techniques: The following techniques are most commonly used to analyse and solve work related problems.  Brainstorming  Pareto Diagrams  Cause & Effect Analysis  Data Collection  DataAnalysis The tools used for data analysis are:  Tables  Bar Charts  Histograms  Circle graphs  Line graphs  Scatter grams  Control Charts The Quality Circles also are expected to develop internal leadership, reinforce worker morale and motivation, and encourage a strong sense of teamwork in an organisation. A variety of benefits have been attributed to Quality Circles, including higher quality, improved productivity, greater upward flow of information, broader improved worker attitudes and job enrichment. 26
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  28. 28. Quality Control Profile of the Company Name of the company: PepsiCo India Holding Private Limited. History: Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay found PepsiCo, Inc., through the merger of the two companies. Catch Line: Taste The Success! Head Office: Registered Office: Off Sion Road, Chembur, Mumbai-400 088. Tel-2556 4001. Fax-2556 5148. Products Marketed By PepsiCo: 28
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  30. 30. Quality Control Management Process in PepsiCo Sales Team Customer Demand Form (C.D.F) Product Availability Management (P.A.M) Manufacturing Packaging & Dispatching Quality Control According to the above chart, a research is made by the Sales Team regarding the market situation i.e. what is the demand of the product, consumer likes and dislikes and so on. After this the information is given to the Product Availability Management. Again this information is send to Manufacturing Team through customer demand form. The manufacturing team holds meeting daily at 10 am every day and decides. 1) What to produce. 2) How to produce. 3) How much to produce. After producing the products the samples of these products are send to Quality Control Department for inspection and examination of these samples. After getting positive 30
  31. 31. Quality Control signals from the Quality Control Department, the manufacturing team does the packing & dispatching process. Cleaning Process in PepsiCo: The cleaning process of the bottles involves two methods i.e. 1) Pre rinse method. 2) Pre form method. Cleaning Process Pre-rinse Pre-form Pre soak Blown (85d.c) (1% 50-55d.c) Rinse (Chlorine 1.2ppm water) Main soak (S.U.) (3% 75-80d.c) 31
  32. 32. Quality Control Hydro (1.2% 50d.c) Pre final rinse jet Final rinse jet Explanation: The cleaning process of the bottles in PepsiCo involves two methods which are Pre-rinse and Pre-form method. Pre-rinse method is used for glass bottles whereas Pre-form method is used for plastic bottles. There are several steps involved in Pre-rinse method as compared to Pre-form method. Taking Pre-rinse method into consideration, it involves the following steps:  In the pre- rinsing method the empty bottles are collected from the shop. The bottles that are collected come in a very bad condition. So after collecting, these bottles are minutely examined and then the crack glass bottles are thrown out.  After examination, the uncracked glasses are pre soak at 50-55 degree celcious (1%).  Then these glass bottles are cleaned with S.U. soap, which is manufactured by H.L.L Company. This step called as Main soak. In this step the bottles are cleaned for 7 minutes at 75-80 degree celcious (3%).  Then these bottles are cleaned with water at 50 degree celcious.  Then the bottles undergo pre final and final rinse jet stage. In this way the pre- rinse method gets completed and the glass bottles are ready for filling process. 32
  33. 33. Quality Control Explanation of Pre-form method: The second method of cleaning the bottles is the Pre-form method. This is a short process of cleaning the bottles as compared to Pre-rinse method and this method is applicable to plastic bottles only. The pre-form method involves the following method:  The small tubes as shown in the diagram are blown at 85 degree celcious. As a result these tubes are converted into big bottles. Then these bottles undergo through a heating process where the bottles are given same size and shape.  In the second step the bottles are rinse with chlorine water (1.2 ppm).  In the last step the plastic bottles undergo final rinse jet stage and thereby the process gets completed. 33
  34. 34. Quality Control Quality process in Pepsi-Cola Company At Pepsi-Cola, quality, taste and consumer are given highest priorities. Great care is taken by the company to ensure that the brands of Pepsi-Cola deliver the best taste and satisfaction to the consumer. Continuous efforts are been made at each and every stage in order to enhance the quality of the products. Ingredients for soft drinks are Kola nuts, vanilla beans, flavor oils, citrus, water, sugar and co2. Among these ingredients water, sugar and co2 and very important ingredients. So best technology and care is been taken to improve the quality of the water, sugar and co2. There are procedures and steps followed by the company in order to purify the 34
  35. 35. Quality Control water, sugar and co2. There are certain standard procedures given by the company that in U.S.A which has to be followed by all the plants in order to enhance the quality of the products. In case of Mangola drink, when the drink filled in the glass bottles then it is dipped in hot water. The temperature of the water is 90 degree celcious. As Mangola does not contain carbon this process is followed in order to kill the microbes. Where as in case of other soft drinks, carbon is present and therefore the above process is not followed. The procedures that is required for the purification of water, sugar and carbon has been explained in the flowchart. Water storage and purify tank: The diagram given below shows the water standardization process. 35
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  37. 37. Quality Control Flowchart for Water standardization: Water Chlorine (6.8ppm) Sand Filter (S.F) Activated Carbon Filter (A.C.F) To remove Chlorine Polisher (candle filter) 37
  38. 38. Quality Control 5m 1m Ultraviolet rays Bevg. H2O Explanation: 38
  39. 39. Quality Control Initially the water is collected from BMC and it is stored in a tank. The sample of this water is send to the U S lab and the instructions to treat the water are given by them. According to their instruction they follow the following process:  The water is collected from the B.M.C and it is stored in the tank. After storing in the tank chlorine is added which a cleaning agent at 6.8 ppm.  After adding chlorine the water passes through Sand Filter.  Then this water undergoes through Activated Carbon Filter. This done in order to remove chlorine from the water.  After passing through Activated Carbon Filter, it undergoes through polisher. This polisher is called as Candle Filter.  Then the water passes through 5-micron and 1-micron. This is done in order to remove fine particles of chlorine.  Finally, water passes through Ultraviolet rays and at the end we get pure water. In the above it has been seen that for purifying the water it undergoes through various types of filters. So these filters play an important role in the purifying process. So great care is taken by the company for the maintenance of the filters. The filters are cleaned or replaced as and when required. 39
  40. 40. Quality Control Sugar standardization tank: The diagram given below shows the sugar standardization process. 40
  41. 41. Quality Control Flowchart for Sugar standardization: Sugar Sugar dissolving Tank+H2O (80d.c. 30 min) Filter Acid 41
  42. 42. Quality Control Filter Press (80d.c.) P.H.E (25d.c.) Sugar syrup +conc. salt & flavors. F. Sugar Explanation: 42
  43. 43. Quality Control In India there is no industry producing sugar specifically for soft drinks. So the company has to prepare the sugar in the factory itself and for making the sugar they has to follow certain procedures by which they can prepare sugar especially for soft drinks. The procedures for preparing sugar are as follows:  Initially the sugar poured into a tank and then water is added to it. The sugar is dissolve with water at 80 degree celcious for 30 min.  Then the sugar is treated with filter acid.  Then it undergoes through filter press at 80 degree celcious.  After this process, Pre Heating Process takes place, where sugar is heated at 25 degree celcious.  Finally, the sugar syrup is prepared in which concentrated salt and flavour is added. In this way flavoured sugar is formed. The concentrated flavour is kept at a room temperature of 5-10 degree celcious. And the place where the sugar is added with concentrated flovour the room temperature is 20-25 degree celcious. 43
  44. 44. Quality Control Flowchart for Carbon-di-oxide standardization: Co2 99.9% Vaporized 44
  45. 45. Quality Control Filter Co2 Explanation:  99.9% of carbon-di-oxide is vaporized, then it is filtered for seven minutes and carbon dioxide for the beverage is prepared.  When the water and sugar are treated they are mixed in a 3 phase mixing pump with carbon-di-oxide. Explanation with the help of a chart: 45
  46. 46. Quality Control In the chart it can be seen that the water and flavoured sugar are mixed together at a proportion of 1:4/1:5 and it is mixed with carbon-di-oxide in a 3 phase mixing pump. All this activities takes place in Beverage House. Water Sugar CO2 Chlorine (6.8ppm) S.F Sugar dissolving 99.9% Tank+H2O (80d.c. 30 min) To remove A.CF Vapourized Chlorine. (Filter acid) Polisher (candle filter) Filter Filter press (80d.c.) CO2 5m P.H.E (25d.c) 1m Sugar syrup +conc. Ultraviolet rays salt & flavors Bevg. H2O F.sugar C.C Bevg. 1:4 / 1:5 Proportion 3 phase mixing 46
  47. 47. Quality Control pump. Beverage House: 47
  48. 48. Quality Control Filling House: In the Filling House the bottles are filled with beverage and then these bottles are sealed and labeled and goes for packaging. 48
  49. 49. Quality Control Analytical study at PepsiCo 1. What quality step does your company follows?  Initially before processing, a meeting is held among various department that includes quality, logistics, purchase, shipping and production. This meeting goes around for five hours and then various issues are decided such as what to produce and in what quantity. Accordingly tasks are allocated to various departments (example: purchase department will procure the raw material and so on.)  Before purchasing the raw materials, the samples of the raw material are checked or matched with specks by the quality department. These specks are certain parameters, which are set by the Pepsi Company in order to get desire quality. If the sample of the raw material matches with the specks then an order is given to the vendor.  After purchasing the raw material the production process starts. The quality department gives the proportion in which the ingredients are to be added in order to get desire result.  After producing the final products the samples are taken to the laboratory and again checking is done whether these are as per the desired standards. In this 49
  50. 50. Quality Control process every thing is checked i.e. the manufacturing date, label, whether cap or crown are properly sealed, the size and the shape of the bottles etc.  If the quality department sees that the samples are as per the standards then the products are send for dispatching process. 2. How do you analysis the expiry date of the product?  Samples of the finished product are taken to the laboratory, then it is observed for twenty-four hour, forty-eight hours and each week, and thereby carbonization is checked.  In this way through checking of carbonization the expiry date of the product are decided. 3. Why there is different expiry date for plastic bottles and glass bottles?  For plastic bottles the expiry date is three month and for glas bottles the expiry date six month.  This is because in glass bottles the carbon can be trapped for longer period as compare to plastic bottles. 4. How do you control any deviation in the quality?  There are certain specks, with the help of these specks the proportion in which the ingredients are to be mixed are decided. For example if 3 kg of sugar is to be added then more 1% or 2% is added. 50
  51. 51. Quality Control  Such extra addition is done because while pouring the sugar in the tank there are some wastages and even in the process certain amount of sugar gets struck. So taking all this wastages into account some extra amount of sugar is added.  In short, any deviation in the process is controlled through past experience and by various calculations. 5.1 What conditions are needed to fulfill in order to acquire License from concerned authority?  Any soft drink industries are granted license under the Fruit Products Order, 1995, which is a statutory Order, issued under the Essential Commodities Act, 1995 and is administered by the Ministry of Food Processing Industries.  This license is given after inspection of the premises of manufacturer as to the compliance of necessary dimensions and hygienic conditions of the place of manufacture.  Before granting the license even the water is checked whether it is potable or not. The samples of water are taken to the lab and chemical and microbiological tests are conducted. 6. Why non-caffeinated soft drinks are sold in USA & Europe and caffeinated soft drinks in India?  The per capita consumption of soft drinks in USA and Europe is higher than in India. The Company conducts market research to find out the preferences and needs of the consumers and develops products to suit the consumer needs. Based 51
  52. 52. Quality Control on such needs Company had launched non-caffeinated products in countries like USA & Europe and caffeninated products in India.  In short, the company sells caffeinated soft drinks in every country in whi9ch they do business, including USA & Europe. If consumers in India shows a significant interest in caffeine-free cola products, then these products will be offered in India along with caffeinated cola products. 7. What steps were taken to overcome recent controversies?  Samples of the products were taken to the FDA lab for testing. After testing it was found that the soft drinks were safe for human consumption.  FPO, also approved that the products of PepsiCo are safe.  In order to ensure quality the company has a separate agency. This agency monitors the quality of the soft drink. In order to ensure that all the manufacturing plant of PepsiCo are producing quality product, this agency collects random samples from each manufacturing plant and testing is done.  After testing points are given to each plant as per their quality standards. The manufacturing plant that scores maximum points gets reward. This reward can be in the form of monetary or non-monetary. 52
  53. 53. Quality Control PepsiCo and Pesticides Accusation against PepsiCo:  On August 5th , 2003 a Delhi-based non-government organization, Centre for Science and Environment published that 12 soft drinks sold in and around the capital contain a deadly cocktail of pesticides residues.  According to the tests conducted by the Pollution Monitoring Laboratory of CSE, all samples to the tests contained residues of four extremely toxic pesticides and insecticides that are lindaine, DDT, malathion and chlorprifos. The members who conducted this test were Dr. H.B. Mathur, Dr. Sapna Johnson and Avinash Kumar.  According Dr. Mathur, these pesticides includes carcinogens which can cause cancers and reduce bone mineral density. 53
  54. 54. Quality Control  Pesticides found in Pepsi products were Diet Pepsi, Mountain Dew, Lehar Pepsi and Miranda Orange.  According to CSE chief Sunita Narain in all the samples the level of pesticides residues exceeded the maximum residue limit for pesticides set down by the European Economic Commission.  In all PepsiCo brands, total pesticides on an average were 0.180 mg/litre which is 36 times higher than the EEC limit of total pesticides at 0.0005 mg/l.  Besides the harmful effect of pesticides found in soft drinks, CSE stated that there are some ingredients of soft drinks that have adverse impact on health such as artificial sweeteners, flavouring agents like caffeine, acids like phosphoric acid etc. Action Taken After Accusation:  Health minister Sushma Swaraj announces in Parliament that samples have been collected. Samples of 15 branded soft drinks from Mumbai, Chennai, Kolkata and Delhi were subsequently sent for testing to the Central Food Technological Research Institute (CFTRI), Mysore.  Orissa government orders tests of soft drinks samples by available facilities in the state.  Food and Drug Administration, Nagpur, bans distribution of Pepsi and Coke products as a “precautionary measure”. Samples were collected and sent to a laboratory in Pune for testing. 54
  55. 55. Quality Control  West Bengal health department decides to test samples at the Public Health Laboratory and Salt Lake Laboratory.  Karnataka state government announces intention to test soft drink samples. Gujarat government also collects samples from plants in Bharauch, Ahmedabad and Rajkot for testing purpose. Andhra Pradesh government announces to do ‘random testing’ of soft drinks  Delhi High Court asks government to set up an expert committee and come up with results of tests in 3 weeks. It also asked the government to review the standards for soft drinks, and include pesticide norms comparable to the rest of the world. Justifications:  In accordance to the allegation made by CSE, PepsiCo India Holding stated that there are no existing EU standards for pesticide residues in finished soft drinks. The only standard specified for pesticide residue in soft drinks that the water used to manufacture soft drinks need to conform to EU drinking water guidelines.  In addition, pesticides residues are controlled on the raw agricultural commodities by ensuring that Good Agricultural Practices (GAPs) are employed. Therefore 55
  56. 56. Quality Control the company is within the EU standards for the treated water used for beverage production and all applicable raw materials, which comprise our beverage.  The company also stated comparing finished product pesticides residue results with any drinking water norms is incorrect and unscientific. This is never done anywhere in the world. In addition, if the highest reported residues are assumed to be present all the time in all the soft drinks, their level is less than 0.1% of the respective Acceptable Daily Intakes (ADIs). This miniscule level gives us the confidence that our products are safe.  The company also stated that other beverages like nimboo pani, tea and coffee have high MRLs as compared to soft drinks. The miniscule level is 100 to 1000 times higher than the reported results in soft drinks. Thus the soft drinks are safe as compared to any other food/beverage normally consumed.  To the allegation of CSE that consumption of large quantity of soft drinks leads to increase in acid level throughout the body causing gastro-economic distress, the representative of the company stated that there is no credible scientific evidence that acidic beverage remove minerals from the body and there is no danger to consume acidic beverages. As regards the safety of phosphoric acid, it was stated that the level of phosphorous consumed in a normal diet including cola beverages is not great enough to influence calcium balance and is not a risk factor in the development of osteoporosis and kidney stones. As soft drinks provide only 2-3 percent of the total phosphorous in the human diet it will not lead to calcium loss.  According to the FDA, there is no evidence to show that caffeine in carbonated beverages would render injurious to health. The scientific researchers do not 56
  57. 57. Quality Control support the relationship between caffeine and various diseases like heart disease, hypertension or irregular heart rate.  In addition, the American Cancer Society, which states that there is no indication that caffeine, is a risk factor in human cancer. In addition, both the National Cancer Institute and the American Medical Association has reported that there is no connection between caffeine intake and fibrocystic breast disease. And, involving thousands of pregnant women fail to show an increased risk of birth defects even among the heaviest caffeine consumers.  The Ministry of Health & Family Welfare has also confirmed that the soft drinks in India are perfectly safe.  It also stated that Aldrin has been toxicological evaluated by JECFA (Joint Expert Committee on Food Additives). The Acceptable Daily Intake (ADI) of Aldrin is 0.0001 mg/kg. The Acceptable Daily Intake of Lindane is 0.001 mg/kg. The use of Lindane in the prescribed doses in storage and public health programme is not likely to cause any health hazard. Endosulphan has been toxicological evaluated by JECFA. The Acceptable Daily Intake of Endosulphan is 0.006 mg/kg. The use of Endosulphan in the prescribed doses in storage is not likely to cause any health hazard. Recommendation 57
  58. 58. Quality Control  In case of caffeinated cola drink, the company must mention on the label the amount of caffeine is added.  PepsiCo can issue public circular, magazines or a booklet giving information about the steps taken by them in order to maintain high level of quality.  The company should conduct random checks making sure that no retail shops are selling the product that has met its expiry date.  They can conduct road shows.  They can put banners or hoarding in public places depicting that the product is safe.  It is necessary for the company to ensure that when the goods are in transit no damages takes place. In order words quality must be maintain at the time of distribution of goods.  Finally, they can take the help of media such as newspaper, television etc. 58
  59. 59. Quality Control Conclusion The goal of quality control is to provide products and services into which quality is built, design, marketed and maintained at the most economical cost which generates total customer satisfaction. Quality Control provides the fundamental basis of positive quality, quality motivation for all company’s employees and representative form top management to lower management level. Effective human relation is a basic to quality control. The major feature of this activity is to provide positive effect in building up employee responsibility for a quality in a product. The difference between the truly successful business and the average business is that successful business’ leaders live, breathe and preach quality, where the average business’ leader only pays lip service to it. A company can built good reputation or good image in this competitive world only when proper standards and procedures are established so that employees know what is expected of them in any situation. As quality control comprises the following steps i.e.  Setting quality standards.  Appraising conformance of these standards.  Acting when the standards are exceeded.  Planning for improvement. So it can be seen that quality control can be used as a weapon to overcome any situation. Taking this into consideration PepsiCo has taken drastic steps to overcome the recent accusations. 59
  60. 60. Quality Control Annexure-Articles 60
  61. 61. Quality Control 61
  62. 62. Quality Control Annexure II -Questionnaires 1. What quality step does your company follows? 2. How do you analysis the expiry date of the product? 3. Why there is different expiry date for plastic bottles and glass bottles? 4. How do you control any deviation in the quality? 5. What conditions are needed to fulfill in order to acquire License from concerned authority? 6. Why non-caffeinated soft drinks are sold in USA & Europe and caffeinated soft drinks in India? 7. What steps were taken to overcome recent controversies? 62
  63. 63. Quality Control Bibliography Website visited: www.google.com www.pepsico.com Books referred: Materials Management- Total Quality Control- 63
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  65. 65. Quality Control 65