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Chips Production At Pepsico 
“Lays” 
Presented By: 
Sonali Srivastava 
PGDM (II Sem)
Introduction 
Potato chip was invented in 1853 by a chef named 
George Crum at a restaurant called Moon's Lake 
House in Saratoga Spring, New York. Angered 
when a customer, some sources say it was none 
other than Cornelius Vanderbilt, returned his french 
fried potatoes to the kitchen for being too thick, 
Crum sarcastically shaved them paper thin and sent 
the plate back out. The customer, whoever he was, 
and others around him, loved the thin potatoes.
About Lays 
In 1932, salesman Herman Lay opened a snack food operation 
in Dorset, Ohio and, in 1938, he purchased the Atlanta, 
Georgia potato chip manufacturer "Barrett Food Company, 
" renaming it "H.W. Lay Lingo & Company."Lay criss-crossed 
the southern United States selling the product from 
the trunk of his car. In 1942, Lay introduced the first 
continuous potato processor, resulting in the first large-scale 
production of the product. The business shortened its name 
to “The Lay's Lay Lingo Company" in 1944.
Today, potato chips are the most 
popular snack in the United States. 
According to the Snack Food 
Association, potato chips 
constitute 40% of snack food 
consumption, beating out pretzels 
and popcorn in spite of the fact 
that hardly anyone thinks potato 
chips are nutritious. Nonetheless, 
the major challenge faced by 
manufacturers in the 1990s was to 
develop a tasty low-fat potato 
chip.
Raw Materials 
Today's product is made from farm-fresh 
potatoes delivered daily to manufacturing 
plants. The sources vary from season to 
season. During the winter, potato chip 
manufacturers depend on their stored supplies 
of potatoes. Stored potatoes are kept at a 
constant temperature, between 40-45°F (4.4- 
7.2°C), until several weeks before they are to 
be used. They are then moved to a 
reconditioning room that is heated to 70-75°F 
(21.1-23.9°C). Size and type are important in 
potato selection. White potatoes that are larger 
than a golf ball, but smaller than a baseball, 
are the best. It takes 100 lb (45.4 kg) of raw 
potatoes to produce 25 lb (11.3 kg) of chips.
The potatoes are fried in either corn oil, 
cottonseed oil, or a blend of vegetable oils. An 
antioxidizing agent is added to the oil to 
prevent rancidity. To 
Further insure purification, the oil is passed 
through a filtration system daily. Salt and 
other flavoring ingredients, such as powdered 
sour cream and onion and barbecue flavor, are 
purchased from outside sources. Flake salt is 
used rather than crystal salt. Some 
manufacturers treat the potatoes with 
chemicals such as phosphoric acid, citric acid, 
hydrochloric acid, or calcium chloride to 
reduce the sugar level, and thus improve the 
product's color. The bags are designed and 
printed by the individual potato chip 
manufacturer. They are stored on rolls and 
brought to the assembly line as necessary.
The Manufacturing Process 
1. When the potatoes arrive at the plant, 
they are examined and tasted for 
quality. A half dozen or so buckets are 
randomly filled. Some are punched 
with holes in their cores so that they 
can be tracked through the cooking 
process. The potatoes are examined 
for green edges and blemishes. The 
pile of defective potatoes is weighed; 
if the weight exceeds a company's 
preset allowance, the entire truckload 
can be rejected.
2. The potatoes move along a conveyer 
belt to the various stages of 
manufacturing. The conveyer belts are 
powered by gentle vibrations to keep 
breakage to a minimum. 
Destoning and peeling: 
3. The potatoes are loaded into a vertical 
helical screw conveyer which allows 
stones to fall to the bottom and pushes 
the potatoes up to a conveyer belt to 
the automatic peeling machine. After 
they have been peeled, the potatoes are 
washed with cold water.
Slicing: 
4. The potatoes pass through a revolving 
impaler/presser that cuts them into 
paper-thin slices, between 0.066-0.072 
in (1.7-1.85 mm) in thickness. Straight 
blades produce regular chips while 
rippled blades produce ridged potato 
chips. 
5. The slices fall into a second cold-water 
wash that removes 
the starch released when the potatoes 
are cut. Some manufacturers, who 
market their chips as natural, do not 
wash the starch off the potatoes.
Color treatment 
6. If the potatoes need to be chemically treated to enhance their 
color, it is done at this stage. The potato slices are immersed 
in a solution that has been adjusted for pH, hardness, and 
mineral content. 
Frying and salting 
7. The slices pass under air jets that remove excess water as they 
flow into 40-75 ft (12.2-23 m) troughs filled with oil. The oil 
temperature is kept at 350-375°F (176.6-190.5°C). Paddles 
gently push the slices along. As the slices tumble, salt is 
sprinkled from receptacles positioned above the trough at the 
rate of about 1.75 lb (0.79 kg) of salt to each 100 lb (45.4 kg) 
of chips. Potatoes arrive daily at manufacturing plants. After 
they are checked for quality, they are stored at a constant 
temperature unfil they are processed into potato chips. Some 
manufacturers treat the potatoes with chemicals to improve the 
color of the final product. To make the chips, potatoes are fried 
in either corn oil, cottonseed oil, or a blend of vegetable oils. 
Flake salt rather than crystal salt is used to season the chips. 
8. Potato chips that are to be flavored pass through a drum filled 
with the desired powdered seasonings.
Cooling and sorting 
9. At the end of the trough, a wire mesh belt 
pulls out the hot chips. As the chips move 
along the mesh conveyer belt, excess oil is 
drained off and the chips begin to cool. They 
then move under an optical sorter that picks 
out any burnt slices and removes them with 
puffs of air. 
Packaging 
10. The chips are conveyed to a packaging 
machine with a scale. As the pre-set weight 
of chips is measured, a metal detector checks 
the chips once more for any foreign matter 
such as metal pieces that could have come 
with the potatoes or been picked up in the 
frying process.
11. The bags flow down from a roll. A central 
processing unit (CPU) code on the bag tells the 
machine how many chips should be released into 
the bag. As the bag forms, (heat seals the top of 
the filled bag and seals the bottom of the next bag 
simultaneously) gates open and allow the proper 
amount of chips to fall into the bag. 
12. The filling process must be accomplished without 
letting an overabundance of air into the bag, 
while also preventing the chips from breaking. 
Many manufacturers use nitrogen to fill the space 
in the bags. The sealed bags are conveyed to a 
collator and hand-packed into cartons. 
13. Some companies pack potato chips in IO cans of 
various sizes. The chips flow down a chute into 
the cans. Workers weigh each can, make any 
necessary adjustments, and attach a top to the 
can.
Quality Control 
Taste samples are made from each batch throughout 
the manufacturing process, usually at a rate of 
once per hour. The tasters check the chips for salt, 
seasoning, moisture, color, and overall flavor. 
Color is compared to charts that show acceptable 
chip colors. 
Preventing breakage is a primary goal for potato chip 
manufacturers. Companies have installed 
safeguards at various points in the manufacturing 
process to decrease the chances for breakage. The 
heights that chips fall from conveyer belts to fryers 
have been decreased. Plastic conveyer belts have 
been replaced with wide mesh stainless steel belts. 
These allow only the larger chips to travel to the 
fryers and the smaller potato slivers to fall through 
the mesh.
Byproducts/Waste 
Rejected potatoes and 
peelings are sent to farms 
to be used as animal feed. 
The starch that is removed 
in the rinsing process is 
sold to a starch processor.
The Future 
Potato chips show no sign of declining in popularity. 
However, the public's increased demand for low-fat 
foods has put manufacturers on a fast track to 
produce a reduced-calorie chip that pleases the 
palate as well. In the late 1990s, Proctor and Gamble 
introduced olestra, a fat substitute that was being 
test-marketed in a variety of products, including 
potato chips. 
Food technicians are using computer programs to 
design a crunchier chip. Upper- and lower-wave 
forms are fed into the computer at varying 
amplitudes, frequencies, and phases. The computer 
then spits out the corresponding models. Researchers 
are also working on genetically engineered potatoes 
with less sugar content since it is the sugar that 
produces brown spots on chips.
Thank You

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Production at Pepsico

  • 1. Chips Production At Pepsico “Lays” Presented By: Sonali Srivastava PGDM (II Sem)
  • 2. Introduction Potato chip was invented in 1853 by a chef named George Crum at a restaurant called Moon's Lake House in Saratoga Spring, New York. Angered when a customer, some sources say it was none other than Cornelius Vanderbilt, returned his french fried potatoes to the kitchen for being too thick, Crum sarcastically shaved them paper thin and sent the plate back out. The customer, whoever he was, and others around him, loved the thin potatoes.
  • 3. About Lays In 1932, salesman Herman Lay opened a snack food operation in Dorset, Ohio and, in 1938, he purchased the Atlanta, Georgia potato chip manufacturer "Barrett Food Company, " renaming it "H.W. Lay Lingo & Company."Lay criss-crossed the southern United States selling the product from the trunk of his car. In 1942, Lay introduced the first continuous potato processor, resulting in the first large-scale production of the product. The business shortened its name to “The Lay's Lay Lingo Company" in 1944.
  • 4. Today, potato chips are the most popular snack in the United States. According to the Snack Food Association, potato chips constitute 40% of snack food consumption, beating out pretzels and popcorn in spite of the fact that hardly anyone thinks potato chips are nutritious. Nonetheless, the major challenge faced by manufacturers in the 1990s was to develop a tasty low-fat potato chip.
  • 5. Raw Materials Today's product is made from farm-fresh potatoes delivered daily to manufacturing plants. The sources vary from season to season. During the winter, potato chip manufacturers depend on their stored supplies of potatoes. Stored potatoes are kept at a constant temperature, between 40-45°F (4.4- 7.2°C), until several weeks before they are to be used. They are then moved to a reconditioning room that is heated to 70-75°F (21.1-23.9°C). Size and type are important in potato selection. White potatoes that are larger than a golf ball, but smaller than a baseball, are the best. It takes 100 lb (45.4 kg) of raw potatoes to produce 25 lb (11.3 kg) of chips.
  • 6. The potatoes are fried in either corn oil, cottonseed oil, or a blend of vegetable oils. An antioxidizing agent is added to the oil to prevent rancidity. To Further insure purification, the oil is passed through a filtration system daily. Salt and other flavoring ingredients, such as powdered sour cream and onion and barbecue flavor, are purchased from outside sources. Flake salt is used rather than crystal salt. Some manufacturers treat the potatoes with chemicals such as phosphoric acid, citric acid, hydrochloric acid, or calcium chloride to reduce the sugar level, and thus improve the product's color. The bags are designed and printed by the individual potato chip manufacturer. They are stored on rolls and brought to the assembly line as necessary.
  • 7. The Manufacturing Process 1. When the potatoes arrive at the plant, they are examined and tasted for quality. A half dozen or so buckets are randomly filled. Some are punched with holes in their cores so that they can be tracked through the cooking process. The potatoes are examined for green edges and blemishes. The pile of defective potatoes is weighed; if the weight exceeds a company's preset allowance, the entire truckload can be rejected.
  • 8. 2. The potatoes move along a conveyer belt to the various stages of manufacturing. The conveyer belts are powered by gentle vibrations to keep breakage to a minimum. Destoning and peeling: 3. The potatoes are loaded into a vertical helical screw conveyer which allows stones to fall to the bottom and pushes the potatoes up to a conveyer belt to the automatic peeling machine. After they have been peeled, the potatoes are washed with cold water.
  • 9. Slicing: 4. The potatoes pass through a revolving impaler/presser that cuts them into paper-thin slices, between 0.066-0.072 in (1.7-1.85 mm) in thickness. Straight blades produce regular chips while rippled blades produce ridged potato chips. 5. The slices fall into a second cold-water wash that removes the starch released when the potatoes are cut. Some manufacturers, who market their chips as natural, do not wash the starch off the potatoes.
  • 10. Color treatment 6. If the potatoes need to be chemically treated to enhance their color, it is done at this stage. The potato slices are immersed in a solution that has been adjusted for pH, hardness, and mineral content. Frying and salting 7. The slices pass under air jets that remove excess water as they flow into 40-75 ft (12.2-23 m) troughs filled with oil. The oil temperature is kept at 350-375°F (176.6-190.5°C). Paddles gently push the slices along. As the slices tumble, salt is sprinkled from receptacles positioned above the trough at the rate of about 1.75 lb (0.79 kg) of salt to each 100 lb (45.4 kg) of chips. Potatoes arrive daily at manufacturing plants. After they are checked for quality, they are stored at a constant temperature unfil they are processed into potato chips. Some manufacturers treat the potatoes with chemicals to improve the color of the final product. To make the chips, potatoes are fried in either corn oil, cottonseed oil, or a blend of vegetable oils. Flake salt rather than crystal salt is used to season the chips. 8. Potato chips that are to be flavored pass through a drum filled with the desired powdered seasonings.
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  • 12. Cooling and sorting 9. At the end of the trough, a wire mesh belt pulls out the hot chips. As the chips move along the mesh conveyer belt, excess oil is drained off and the chips begin to cool. They then move under an optical sorter that picks out any burnt slices and removes them with puffs of air. Packaging 10. The chips are conveyed to a packaging machine with a scale. As the pre-set weight of chips is measured, a metal detector checks the chips once more for any foreign matter such as metal pieces that could have come with the potatoes or been picked up in the frying process.
  • 13. 11. The bags flow down from a roll. A central processing unit (CPU) code on the bag tells the machine how many chips should be released into the bag. As the bag forms, (heat seals the top of the filled bag and seals the bottom of the next bag simultaneously) gates open and allow the proper amount of chips to fall into the bag. 12. The filling process must be accomplished without letting an overabundance of air into the bag, while also preventing the chips from breaking. Many manufacturers use nitrogen to fill the space in the bags. The sealed bags are conveyed to a collator and hand-packed into cartons. 13. Some companies pack potato chips in IO cans of various sizes. The chips flow down a chute into the cans. Workers weigh each can, make any necessary adjustments, and attach a top to the can.
  • 14. Quality Control Taste samples are made from each batch throughout the manufacturing process, usually at a rate of once per hour. The tasters check the chips for salt, seasoning, moisture, color, and overall flavor. Color is compared to charts that show acceptable chip colors. Preventing breakage is a primary goal for potato chip manufacturers. Companies have installed safeguards at various points in the manufacturing process to decrease the chances for breakage. The heights that chips fall from conveyer belts to fryers have been decreased. Plastic conveyer belts have been replaced with wide mesh stainless steel belts. These allow only the larger chips to travel to the fryers and the smaller potato slivers to fall through the mesh.
  • 15. Byproducts/Waste Rejected potatoes and peelings are sent to farms to be used as animal feed. The starch that is removed in the rinsing process is sold to a starch processor.
  • 16. The Future Potato chips show no sign of declining in popularity. However, the public's increased demand for low-fat foods has put manufacturers on a fast track to produce a reduced-calorie chip that pleases the palate as well. In the late 1990s, Proctor and Gamble introduced olestra, a fat substitute that was being test-marketed in a variety of products, including potato chips. Food technicians are using computer programs to design a crunchier chip. Upper- and lower-wave forms are fed into the computer at varying amplitudes, frequencies, and phases. The computer then spits out the corresponding models. Researchers are also working on genetically engineered potatoes with less sugar content since it is the sugar that produces brown spots on chips.