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GLR Intern Report Out
June 1 – August 12, 2016
Intern: Andrew Sarsfield
Manager: Jesse Sullivan
July 29, 2016 2
Agenda
About Me/Summer Experiences
Location Overview
Critical Experiences
Key Project
Takeaways/Feedback
July 29, 2016 3
About Me
 Andrew Sarsfield
 Born in South Bend, Indiana, grew up in South
Lyon, Michigan.
 Michigan State University – GO GREEN!
◦ Food Industry Management
 Love sports and fishing, Bartender.
Category Category
July 29, 2016 4
Summer Fun
Pirates
Games in
downtown
Pittsburgh!
Kennywood
Amusement
Park
Night Life of
South Side,
Pittsburgh
July 29, 2016 5
Summer Fun
Visited
Yuengling
Brewery in
Pottsville, PA
Took a tour of the
Pittsburgh
Steelers stadium.
Working at
the US
Open at
Oakmont
July 29, 2016 6
Location Overview
 Youngwood, PA – Warehouse
Operations
◦ Penn West Market, Great Lakes Region
• Unit Sales Manager – Steve Barth
• SC Ops Associate Leader – Jesse Sullivan
• SC Ops Associate Supervisor
• Dave Koski
• Johnathan Winfield
• Justin Wilson
• Sales District Leaders
• Mike Ackerman
• Bryan Struhar
• John Susan
• Agnes Porreca
July 29, 2016 7
Location Overview
 Strictly warehouse operations with large format, small format and full
service customers.
◦ Contains own fleet for all three markets.
 24 hour Operation and has a collective bargaining agreement
between Pepsi Beverages Company and Teamsters Local Union
#250.
 Acts as a vendor to special events (US Open).
◦ Supplied two catering companies and the USGA with beverages
and coolers.
◦ Sold over 18,000 cases.
Production Warehouse
Large-format Customers
Small-format
Customers
Special Events
Full-Service
Customers
July 29, 2016 8
Critical Experiences
• Voice Pick Operations, QC Process,
Review
• Building of Bulk Snake, Gate Logs,
and bay mapping
• Dbay delivery process to small format stores
• Bulk delivery process to large format stores
• Product sequences in Dbay trucks and Tractor
Trailers.
1
• Route Rides with Dbay and Bulk
Delivery
• Order of loads picked and loaded
• Selection order of loads and auditing process
• Finalization of shipments for delivery.
• Process flow for creating an order
• Sales Forecasting, ICS/NIS counts
and adjustments, PQI counts,
• Warehouse and Production site
Operations, Safety Control settings.
• Selecting appropriate, accurate forecast
• Inventory and OOD counts and selections
• Production Line processes and control
• OOS and inventory adjustment
• Warehouse Display and setup.
2
3
4
Critical Experience Learnings
• Work Days
• Discussions with Randa Amsler
and John Matus
• Day to day work activities and responsibilities.
• Safety Supply Day Settings.
• Pepsi Beverages Supply Chain.
July 29, 2016 9
Internship Project
• To evaluate future and past forecast in order
to identify which products should be received
from transport in either pallets, layers or
cases and to identify any savings cost
associated with these reconfigurations.
Key
Projects
• To recalculate the acceptable target of
additional days of supply over the standard
safe days of supply for all items at the
Youngwood location.
Additional
Projects
July 29, 2016 10
Purpose - Objective
To avoid receiving mixed pallets of product from transport that
will endure time consumption and labor cost from assembly at
production and the breakdown at the Youngwood Warehouse
location.
July 29, 2016 11
Goal
 Receive Product in full pallets rather than layers
or cases to save time and cost.
July 29, 2016 12
Examples and Outcomes.
3G BIB BRSK FTN SWL
Pallet Layer
• Increase load/labor
time
• Increases labor cost
• Increases the
amount of storage
space available.
12oz PL MM VAN CRÈME
Cases Layer
• Decrease load/labor
time
• Decrease labor cost.
• Decrease storage space
available.
16oz CN RKST FRZ PCLDA
Layer/case Pallet
• Decrease load/labor
time
• Decrease labor cost
• Decrease storage space
available.
July 29, 2016 13
Project Overview
 Breaking down the prior year into periods and
summarizing them up into quarterly averages gives us a
good forecast from one year to another. Each Quarter is
based off of seasonality and weather factors which helps
promote a more accurate forecast.
Quarter 1 Quarter 2 Quarter 3 Quarter 4
P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P1
1
P1
2
P13
Winter Spring Summer Fall
Dec. 26 – Mar.
19
Mar. 19 – Jun.
11
Jun. 11 –
Sept 3
Sept. 3 – Dec 31
July 29, 2016 14
Sources
 Warehouse Rules – Pallet Configurations
 Sales Forecasts Reports
 Inventory Period Close Reports
 Youngwood Safety Supply Day Settings
 Period End Location Balance Inquiry
 Excel Spread Sheet
July 29, 2016 15
Warehouse Rules and Inventory Period Close
Reports
item_no Product
Cases
perlayer
layers
per
pallet
casesper
pallet
load
time/sec
Efficiency
Cases/hr
Period7
2015
Period8
2015
Period9
2015
Period10
2015
Period11
2015
Period12
2015
Period13
2015
Period1
2016
Period2
2016
Period3
2016
Period4
2016
Period5
2016
Period6
2016
3017 12ozCNPEPSI6/4 9 12 108 10 360 512 847 640 540 376 176 352 418 438 322 320 382 374
3120 12ozCNMDEW 9 12 108 10 360 703 623 542 372 360 166 538 439 263 184 353 155 285
3162 2LPLDTMUGRTBR1/8 8 5 40 10 360 66 106 40 71 53 68 44 144 58 76 115 109 70
3689 5GBIBDRPEP 7 4 140 10 360 46 41 50 37 52 30 39 32 77 40 73 54 33
3789 10ozSCHWCLBSDA 10 6 60 10 360 75 1 117 37 86 136 77 105 94 108 110 75 80
3803 2LPLDTSCHWGALE1/8 8 5 40 10 360 128 19 93 84 126 129 101 113 98 141 141 110 72
3811 10ozSCHWPGALE6/4 10 6 60 10 360 70 32 34 35 17 57 28 52 31 14 27 25 16
3838 10ozSCHWQUITON6/4 10 6 60 10 360 54 72 102 134 121 78 43 75 57 153 102 128 58
6110 12ozNRLNKPEPSI1/24 10 5 50 10 360 0 55 74 81 65 84 57 38 27 60 57 53 36
6112 12ozNRLNKMDEW1/24 10 5 50 10 360 49 81 55 42 42 50 38 33 99 31 69 54 52
6151 5GBIBPEPSIFCB 7 4 140 10 360 23 24 24 25 4 10 3 18 23 19 22 30 28
7530 3GBIBBRSKFTNSWL 7 6 144 10 360 148 64 211 123 81 99 94 31 73 54 90 39 53
7537 3GBIBBRSKFTNUNSNL 7 6 144 10 360 52 47 30 26 36 23 42 23 22 0 55 24 20
9770 12ozCNDTPEPSI 9 12 108 10 360 174 252 195 195 183 219 165 213 231 135 201 191 318
July 29, 2016 16
Quarters
July 29, 2016 17
Quarters
Old
Config.
Average
Product
Use Case/Layer
Cases/
pallet
New
Config.
Change?
Yes/no?
Layer
Time
Time
Savings
(sec)
Inventory
amount in
safety top
days
Top
safety
days
Amount for
average
sales in
safety days
Adjusted
Top Safety
Days
Average
total
inventory
Ending
Inventory
P 605 9 108 P YES 90 0 199.47 5.0 120.9 4.0 997.33333 392.66667
P 425 9 108 P YES 90 0 144.13 5.0 85.1 4.0 720.66667 295.33333
PL 191 8 40 P YES 80 1910 56.73 5.0 38.2 4.0 283.66667 92.666667
P 96 7 140 L YES 70 -960 29.13 5.0 19.2 4.0 145.66667 49.666667
PL 114 10 60 P YES 100 1137 21.60 10.0 11.4 9.0 216 102.33333
P 258 8 40 P YES 80 0 75.00 5 51.5 4.0 375 117.33333
LC 44 10 60 L YES 100 310.3333 3.83 20 2.2 19.0 76.666667 32.333333
PL 115 10 60 P YES 100 1153 21.03 10 11.5 9.0 210.33333 95
PL 69 10 50 P YES 100 690 11.07 10 6.9 9.0 110.66667 41.666667
PL 59 10 50 P YES 100 587 4.52 25 2.3 24.0 113 54.333333
L 24 7 140 L YES 70 -240 2.20 20 1.2 19.0 44 20
P 68 7 144 L YES 70 -677 12.03 10 6.8 9.0 120.33333 52.666667
PL 44 7 144 L YES 70 -440 2.95 20 2.2 19.0 59 15
P 259 9 108 P YES 90 0 90.47 5 51.9 4.0 452.33333 193
P 225 7 144 P YES 70 0 62.53 5 44.9 4.0 312.66667 88
P 326 7 144 P YES 70 0 89.53 5 65.1 4.0 447.66667 122
PL 59 7 144 L YES 70 -593 12.13 10 5.9 9.0 121.33333 62
July 29, 2016 18
Safety Supply Day Settings
Inventory ID
number
Package size, brand name,
and flavor
Acceptable
/target
minimum
days of
supply for
item at
location
Standard
safe days
(left
column) plus
travel days
(1for
Youngwood)
Acceptable
/target
additional
days of
supply
over Safe
DS
Acceptable
/target
highest
days of
supply at
location
Number of
days of
supply
above safe
days that
will trigger a
deployment
Safeds plus
stopdays,
target to not
ship if
projected is
higher than
this
Highest
unit of
measure
Unit of measure
for system to
auto generate
for (P=Pallet,
L=Layer,
C=Case/box/jug)
Product Product Name Stdsafedays Safeds Topdays Topds Stopdays Stopds Ship Uom Rnduomhier
106544 3G BIB BRSK FTNNCGTP POS 7.61 8.61 20 28.61 0 8.61 PAL L
120133 3G BIB CRSH ORG 7 8 10 18 2 10 PAL PL
122462 1L PL 1/12S BRSK SWT 3.22 4.22 3 7.22 2 6.22 PAL P
122464 1L PL 1/12S MDEW CD RD 4.14 5.14 3 8.14 2 7.14 PAL P
122465 1L PL 1/12S BRSK RAZ 2.91 3.91 3 6.91 2 5.91 PAL P
122466 1L PL 1/12S LPT BRSK SWL 3.03 4.03 3 7.03 2 6.03 PAL P
122468 1L PL 1/12S PEPSI WCHE 4.23 5.23 3 8.23 2 7.23 PAL P
122469 1L PL 1/12S DT MDEW 4.58 5.58 3 8.58 2 7.58 PAL P
123252 1L PL 1/12S BRSK TEA LMND 3.32 4.32 3 7.32 2 6.32 PAL P
123253 1L PL 1/12S BRSK PCH T 3.46 4.46 3 7.46 2 6.46 PAL P
July 29, 2016 19
Project Process - Step 1
• Evaluated future and prior forecast for 301 items
• Identify Potential change
• Data mined from previous 13 periods
• Used as a yearly forecast for the upcoming year.
1 1 1 1
ID Product Cost Begin inv. Purch. Receive
3017 12 oz. CN PEPSI 6/4 $4.82 459 0 500
3120 12oz CN MDEW $5.11 622 0 216
3162 2L PL DT MUG RT BR 1/8 $6.46 45 0 240
3689 5G BIB DRPEP $38.03 42 0 84
3789 10oz SCHW CLB SDA $5.80 80 0 144
Ex. Quarter 1, P1
July 29, 2016 20
Project Process - Step 2
• Calculated Total inventory, product activity and
ending inventory.
• Product Activity can include sales, breakage, rework,
sampling, miscounts, drinkage, etc.
Total inventory
Product
activity Ending Inventory
959 541 418
838 399 439
285 141 144
126 94 32
224 119 105
ID Product
3017 12 oz CN PEPSI 6/4
3120 12oz CN MDEW
3162 2L PL DT MUG RT BR 1/8
3689 5G BIB DRPEP
3789 10oz SCHW CLB SDA
1 1 1 1
Cost Begin inv Purch. Receive
$4.83 459 0 500
$5.11 622 0 216
$6.46 45 0 240
$38.03 42 0 84
$5.80 80 0 144
Ex: Quarter 1, P1
July 29, 2016 21
Project Process – Step 3
 Using the product activity use for each
period, I found the average activity use for
each quarter per period.
SKU
Activity Use
(Period 1)
Activity Use
(Period 2)
Activity Use
(Period 3)
Activity Use
(Period 4)
Activity Use
( Period 5)
Activity Use
(Period 6)
Activity Use
(Period 7)
Activity Use
(Period 8)
Activity Use
(Period 9)
Activity Use
(Period 10)
Activity Use
(Period 11)
Activity Use
(Period 12)
Activity Use
(Period 13)
12oz CN PEPSI MAX 24/1 255 551 382 523 526 324 839 567 629 296 553 617 28
15.2oz PL OS ORG 100% 1/12 738 788 838 571 693 548 613 687 790 775 824 813 -194
24oz CN BRSK SWL 1/12 148 95 94 53 32 0 279 289 233 268 168 152 -5
16oz CN MDEW KS LMEADE 1/12 -146 137 78 -134 14 10 440 72 29 -34 68 384 -161
July 29, 2016 22
Project Process - Step 4 and 5
• From using previous product configurations and previous years
activity use for each item, I forecasted how each product should
be built to order and received from production
• I was able to calculate savings in load time and labor cost for the
warehouse and production sites in that quarter.
Old
Config.
Avg.
Activity
Usage Case/Layer
Cases/
pallet
New
Config.
Change?
Yes/no?
Layer
Time
Time
Savings
(sec)
P 605 9 108 P NO 90 0
P 425 9 108 P NO 90 0
PL 191 8 40 P YES 80 1910
P 96 35 140 L YES 350 -960
PL 114 10 60 P YES 100 1137
ID Product
3017 12 oz CN PEPSI 6/4
3120 12oz CN MDEW
3162 2L PL DT MUG RT BR 1/8
3689 5G BIB DRPEP
3789 10oz SCHW CLB SDA
Ex: Quarter 1
July 29, 2016 23
Project Process – Step 6
 Calculated time saved for each new configuration
change
◦ Using load times per case and the number of cases per
layer for each product
Ex: Quarter 2
Old
Config.
Average
Product
Use Case/Layer
Cases/
pallet
New
Config.
Change?
Yes/no?
Layer
Time
Time
Savings
(sec)
item_no Product
3017 12 oz CN PEPSI 6/4 P 499 9 108 P No 90 0
3120 12oz CN MDEW P 451 9 108 P No 90 0
3162 2L PL DT MUG RT BR 1/8 PL 124 8 40 P YES 80 1237
3789 10oz SCHW CLB SDA PL 136 10 60 P YES 100 1360
3803 2L PL DT SCHW G ALE 1/8 P 226 8 40 P No 80 0
3811 10oz SCHWP G ALE 6/4 LC 37 10 60 L YES 100 0
3838 10 oz SCHW QUITON 6/4 PL 115 10 60 P YES 100 1150
6110 12oz NR LNK PEPSI 1/24 PL 55 10 50 P YES 100 547
6112 12oz NR LNK MDEW 1/24 PL 66 10 50 P YES 100 657
6151 5G BIB PEPSI FCB L 34 7 140 L No 70 0
July 29, 2016 24
Project Process – Step 7
◦ Using the total inventory, ending inventory, and top
safe days for each product in each period, I was
able to regenerate the number of safe days for
each product per quarter to correspond with each
products PQI dates.
◦ Eliminate potential OOD for new configurations
SKU
Original
Safe Day
supply
(Quarter 1)
Recommended
Safe Day
Supply
(Quarter 1)
Original
Safe Day
Supply
(Quarter 2)
Recommended
Safe Day
Supply
(Quarter 2)
Original
Safe Day
Supply
(Quarter 3)
Recommended
Safe Day
Supply
(Quarter 3)
Original
Safe Day
Supply
(Quarter 4)
Recommended
Safe Day
Supply
(Quarter 4)
12oz CN PEPSI MAX 24/1 5 4.5 5 4.5 5 4.7 5 4.9
15.2oz PL OS ORG 100% 1/12 5 4.8 5 4.6 5 4.6 5 4.7
24oz CN BRSK SWL 1/12 10 9.6 10 9.6 10 10 10 9.6
16oz CN MDEW KS LMEADE 1/12 0 0 0 0 0 0 0 0
July 29, 2016 25
Analysis
 Selected 15 products that will reduce labor cost and
load times for transport if correctly changed to their new
product configurations
 Based on average product activity use to support PQI
dates and shelf life for each product.
7.5oz CN DT SCHW G ALE 8/3
10oz NR DT SCHW QUITON 6/4
10.1oz PL FRT SHT ORG 1/24
11oz CN STRBK DS PRTN VAN BN 1/12
12oz CN AQ SPK LL 1/12
12oz CN AQ SPK ORG GRPFRT 1/12
12oz CN SCHW RAZ LM SPK 12/2
12oz CN MDEW GM FL CIT 12/2
12oz CN AQ SPK BLKCH DRGN 1/12
15.2oz PL OS RR GRFT 1/12
16oz CN RKSTR PRZR SLVIC 1/24
16.9oz CRTN ONE CW TEA TCLDA 1/12
20oz PL LW ACI RAZ OC 1/12
1L PL SCHWP GALE 1/12
12oz CN MDEW KS WTML 1/12
July 29, 2016 26
Analysis
Product Product Name
Old
Config. Case/Layer
Cases/
Pallet
Avg.
Use/period for
1 year
New
Config.
126658 7.5oz CN DT SCHW G ALE 8/3 LC 12 144 115.5 P
30867 10ox NR DT SCHW QUITON 6/4 C 10 60 12 L
143145 10.1 oz PL FRT SHT ORG 1/24 LC 13 91 158.75 P
148054 11oz CN STRBK DS PRTN VAN BN 1/12 LC 28 196 237 P
155966 12oz CN AQ SPK LL 1/12 L 28 168 62.75 P
155969 12oz CN AQ SPK ORG GRPFRT 1/12 L 28 168 63.5 P
152474 12oz CN SCHW RAZ LM SPK 12/2 C 9 108 154.5 P
103883 12oz CN MDEW GM FL CIT 12/2 PL 9 108 349 P
155970 12oz CN AQ SPK BLKCH DRGN 1/12 L 28 168 62.5 P
154692 12oz CN MDEW KS WTML 1/12 LC 28 168 288.5 P
123375 15.2oz PL OS RR GRFT 1/12 LC 10 80 141 P
140651 16oz CN RKSTR PRZR SLVIC 1/24 LC 18 108 41.5 P
148168 16.9oz CRTN ONE CW TEA TCLDA 1/12 C 17 102 138 P
134193 20 oz PL LW ACI RAZ 0C 1/12 LC 17 102 110.25 P
32207 1L PL SCHWP GALE 1/12 L 10 50 24.5 P
• Whether the product
case configurations
changed or stayed the
same is based on
comparing the
average product use
per period for 1 year
to the number of
cases per layer and
number of cases per
pallet.
• If the average use per
period for 1 year was
greater than cases per
pallet then the new
configuration would
be pallet.
• If the average use per period for 1 year was
greater than cases per layer, and less than
cases per pallet, than the new configuration
would be layers.
July 29, 2016 27
Analysis - Selected Data
Product Product Name
Old
Config. Case/Layer Cases/Pallet
Avg. Use
Q3
Avg. Use
Q4
Avg. Use
Q1
Avg. Use
Q2 Avg. Use/period for 1 year
New
Config.
Time
Saved $ saved
126658 7.5oz CN DT SCHW G ALE 8/3 LC 12 144 83 49 127 203 115.5 P 0.3 $6.17
30867 10ox NR DT SCHW QUITON 6/4 C 10 60 16 11 7 14 12 L 0.0 $0.00
143145 10.1 oz PL FRT SHT ORG 1/24 LC 13 91 263 115 99 158 158.75 P 0.4 $8.23
148054 11oz CN STRBK DS PRTN VAN BN 1/12 LC 28 196 282 216 138 312 237 P 0.7 $14.40
155966 12oz CN AQ SPK LL 1/12 L 28 168 0 0 0 251 62.75 P 0.7 $14.40
155969 12oz CN AQ SPK ORG GRPFRT 1/12 L 28 168 0 0 0 254 63.5 P 0.7 $14.40
152474 12oz CN SCHW RAZ LM SPK 12/2 C 9 108 36 41 75 466 154.5 P 0.4 $8.23
103883 12oz CN MDEW GM FL CIT 12/2 PL 9 108 312 385 284 415 349 P 1.0 $20.57
155970 12oz CN AQ SPK BLKCH DRGN 1/12 L 28 168 0 0 0 250 62.5 P 0.7 $14.40
154692 12oz CN MDEW KS WTML 1/12 LC 28 168 0 0 629 525 288.5 P 0.5 $10.29
123375 15.2oz PL OS RR GRFT 1/12 LC 10 80 153 124 140 147 141 P 0.4 $8.23
140651 16oz CN RKSTR PRZR SLVIC 1/24 LC 18 108 79 37 19 31 41.5 P 0.1 $2.06
148168 16.9oz CRTN ONE CW TEA TCLDA 1/12 C 17 102 267 145 112 28 138 P 0.4 $8.23
134193 20 oz PL LW ACI RAZ 0C 1/12 LC 17 102 140 104 100 97 110.25 P 0.3 $6.17
32207 1L PL SCHWP GALE 1/12 L 10 50 42 20 26 10 24.5 P 0.1 $2.06
6.70 $137.82
From Increasing product configurations from cases to layers or from
layers to pallets, we are able to save load time and the labor cost its
associated with due to a decrease in time spent on breaking down
pallets received from transport.
July 29, 2016 28
Results – Money Saved
• The reduction in labor
for the building and
breakdown of
pallets/layers/cases
from transport
produced savings in
time and labor cost.
• Labor cost –$20.57
per hour
Product Product Name
Old
Config.
New
Config.
Time
Saved $ saved
126658 7.5oz CN DT SCHW G ALE 8/3 LC P 0.3 $6.17
30867 10ox NR DT SCHW QUITON 6/4 C L 0.0 $0.00
143145 10.1 oz PL FRT SHT ORG 1/24 LC P 0.4 $8.23
148054 11oz CN STRBK DS PRTN VAN BN 1/12 LC P 0.7 $14.40
155966 12oz CN AQ SPK LL 1/12 L P 0.7 $14.40
155969 12oz CN AQ SPK ORG GRPFRT 1/12 L P 0.7 $14.40
152474 12oz CN SCHW RAZ LM SPK 12/2 C P 0.4 $8.23
103883 12oz CN MDEW GM FL CIT 12/2 PL P 1.0 $20.57
155970 12oz CN AQ SPK BLKCH DRGN 1/12 L P 0.7 $14.40
154692 12oz CN MDEW KS WTML 1/12 LC P 0.5 $10.29
123375 15.2oz PL OS RR GRFT 1/12 LC P 0.4 $8.23
140651 16oz CN RKSTR PRZR SLVIC 1/24 LC P 0.1 $2.06
148168 16.9oz CRTN ONE CW TEA TCLDA 1/12 C P 0.4 $8.23
134193 20 oz PL LW ACI RAZ 0C 1/12 LC P 0.3 $6.17
32207 1L PL SCHWP GALE 1/12 L P 0.1 $2.06
6.70 $137.82
July 29, 2016 29
Youngwood Results – 1 year
 From the selection of these 15 items and the
changes that were made from Cases to layers
and from layers to pallets, there was a
savings of:
◦ 6.7 hours of work saved per period.
◦ $137.82 of labor cost saved per period.
6.7 hours X 13 periods = 87.1 hours of time
saved/yr
◦ $137.82 X 13 periods = $1,791.65/yr.
Youngwood
July 29, 2016 30
87.1 X 2 = 174.2 hours of time saved
$1,791.65 X 2 = $3,583.30/year
Warehouse and Production Results – 1
year
 The labor time saved at the
Youngwood location will equal labor
time saved at production.
◦ 1 warehouse, 1 production
◦ 87.1 hours saved for Youngwood location
◦ $1,791.66 saved for Youngwood location
Warehouse/Pro.
July 29, 2016 31
National Savings – 1 year
 If every satellite location and
production site made equivalent
changes to their inventory
configurations they would save:
◦ 338 locations nationwide
◦ 87.1 hours saved for Youngwood location
◦ $1,791.66 saved for Youngwood location
87.1 X 338 = 29,439.8 hours of time
saved/yr.
$1,791.66 X 338 = $605,577.70/yr.
Nationwide
July 29, 2016 32
Storage Space Shrinkage
Product Product Name
Old
Config. New Config.
Pallet
Type Sq. Feet
126658 7.5oz CN DT SCHW G ALE 8/3 LC P W 10.2
30867 10ox NR DT SCHW QUITON 6/4 C L W 10.2
143145 10.1 oz PL FRT SHT ORG 1/24 LC P W 10.2
148054 11oz CN STRBK DS PRTN VAN BN 1/12 LC P W 10.2
155966 12oz CN AQ SPK LL 1/12 L P P 11.0
155969 12oz CN AQ SPK ORG GRPFRT 1/12 L P W 10.2
152474 12oz CN SCHW RAZ LM SPK 12/2 C P P 11.0
103883 12oz CN MDEW GM FL CIT 12/2 PL P P 11.0
155970 12oz CN AQ SPK BLKCH DRGN 1/12 L P P 11.0
154692 12oz CN MDEW KS WTML 1/12 LC P W 10.2
123375 15.2oz PL OS RR GRFT 1/12 LC P W 10.2
140651 16oz CN RKSTR PRZR SLVIC 1/24 LC P W 10.2
148168 16.9oz CRTN ONE CW TEA TCLDA 1/12 C P W 10.2
134193 20 oz PL LW ACI RAZ 0C 1/12 LC P P 11.0
32207 1L PL SCHWP GALE 1/12 L P P 11.0
158.2
• 158.2 square feet of storage space
• Warehouse = 82,000 square feet
• New configurations = reduction of storage space by .19%.
Storage Space
July 29, 2016 33
Results and Recommendations – Top Safety
Days
 From analyzing the average ending inventory compared to the
total average inventory from each period in each quarter, I was
able to recalculate the top number of safe day supply for each of
the 15 selected products
 Shrink ending inventory and support PQI dates.
Product Product Name
Current Top
Safety Supply
Days
New Top
Safety
Supply
Days. Q1
New Top
Safety
Supply
Days Q2
New Top
Safety
Supply
Days. Q3
New Top
Safety
Supply
Days. Q4.
126658 7.5oz CN DT SCHW G ALE 8/3 25 5 20 5 5
30867 10ox NR DT SCHW QUITON 6/4 20 7 20 20 12
143145 10.1 oz PL FRT SHT ORG 1/24 25 17 25 25 21
148054 11oz CN STRBK DS PRTN VAN BN 1/12 20 8 20 20 11
155966 12oz CN AQ SPK LL 1/12 5 5 5 5 5
155969 12oz CN AQ SPK ORG GRPFRT 1/12 5 5 5 5 5
152474 12oz CN SCHW RAZ LM SPK 12/2 5 5 5 5 5
103883 12oz CN MDEW GM FL CIT 12/2 25 22 25 25 23
155970 12oz CN AQ SPK BLKCH DRGN 1/12 5 3 5 5 4
154692 12oz CN MDEW KS WTML 1/12 25 12 25 25 25
123375 15.2oz PL OS RR GRFT 1/12 25 11 14 16 13
140651 16oz CN RKSTR PRZR SLVIC 1/24 25 8 25 25 14
148168 16.9oz CRTN ONE CW TEA TCLDA 1/12 10 6 6 8 5
134193 20 oz PL LW ACI RAZ 0C 1/12 25 16 16.2 15 12
32207 1L PL SCHWP GALE 1/12 25 10 22 19 12
July 29, 2016 34
Takeaways
 PepsiCo. Supply chain is a continuous, fast
paced process through the relationship of
marketing, logistics, warehouse and
production.
 Responsibilities of warehouse operators are
maintaining long-term storage of materials
and products to supporting economies of
purchasing, production, and transportation.
 PepsiCo’s warehouse inventory is strongly
based off of weekly forecasts that must be
accurate and consistent to meet market
demands.
July 29, 2016 35
Takeaways
 Warehouse operations are sequenced in
a series of steps that leads product to
reach customers through transport.
 The market demand fluctuates through
out the year for all products causing
unique shifts in demand for each product
 Making appropriate, accurate and
consistent forecast through out each
period decreases the chance of having
unnecessary operation cost.
July 29, 2016 36
Feedback
 Work Experience
 Education Experience
 Culture
 People
July 29, 2016 37
&
The Youngwood Location
Questions?

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Andrew Powerpoint presentation

  • 1. GLR Intern Report Out June 1 – August 12, 2016 Intern: Andrew Sarsfield Manager: Jesse Sullivan
  • 2. July 29, 2016 2 Agenda About Me/Summer Experiences Location Overview Critical Experiences Key Project Takeaways/Feedback
  • 3. July 29, 2016 3 About Me  Andrew Sarsfield  Born in South Bend, Indiana, grew up in South Lyon, Michigan.  Michigan State University – GO GREEN! ◦ Food Industry Management  Love sports and fishing, Bartender. Category Category
  • 4. July 29, 2016 4 Summer Fun Pirates Games in downtown Pittsburgh! Kennywood Amusement Park Night Life of South Side, Pittsburgh
  • 5. July 29, 2016 5 Summer Fun Visited Yuengling Brewery in Pottsville, PA Took a tour of the Pittsburgh Steelers stadium. Working at the US Open at Oakmont
  • 6. July 29, 2016 6 Location Overview  Youngwood, PA – Warehouse Operations ◦ Penn West Market, Great Lakes Region • Unit Sales Manager – Steve Barth • SC Ops Associate Leader – Jesse Sullivan • SC Ops Associate Supervisor • Dave Koski • Johnathan Winfield • Justin Wilson • Sales District Leaders • Mike Ackerman • Bryan Struhar • John Susan • Agnes Porreca
  • 7. July 29, 2016 7 Location Overview  Strictly warehouse operations with large format, small format and full service customers. ◦ Contains own fleet for all three markets.  24 hour Operation and has a collective bargaining agreement between Pepsi Beverages Company and Teamsters Local Union #250.  Acts as a vendor to special events (US Open). ◦ Supplied two catering companies and the USGA with beverages and coolers. ◦ Sold over 18,000 cases. Production Warehouse Large-format Customers Small-format Customers Special Events Full-Service Customers
  • 8. July 29, 2016 8 Critical Experiences • Voice Pick Operations, QC Process, Review • Building of Bulk Snake, Gate Logs, and bay mapping • Dbay delivery process to small format stores • Bulk delivery process to large format stores • Product sequences in Dbay trucks and Tractor Trailers. 1 • Route Rides with Dbay and Bulk Delivery • Order of loads picked and loaded • Selection order of loads and auditing process • Finalization of shipments for delivery. • Process flow for creating an order • Sales Forecasting, ICS/NIS counts and adjustments, PQI counts, • Warehouse and Production site Operations, Safety Control settings. • Selecting appropriate, accurate forecast • Inventory and OOD counts and selections • Production Line processes and control • OOS and inventory adjustment • Warehouse Display and setup. 2 3 4 Critical Experience Learnings • Work Days • Discussions with Randa Amsler and John Matus • Day to day work activities and responsibilities. • Safety Supply Day Settings. • Pepsi Beverages Supply Chain.
  • 9. July 29, 2016 9 Internship Project • To evaluate future and past forecast in order to identify which products should be received from transport in either pallets, layers or cases and to identify any savings cost associated with these reconfigurations. Key Projects • To recalculate the acceptable target of additional days of supply over the standard safe days of supply for all items at the Youngwood location. Additional Projects
  • 10. July 29, 2016 10 Purpose - Objective To avoid receiving mixed pallets of product from transport that will endure time consumption and labor cost from assembly at production and the breakdown at the Youngwood Warehouse location.
  • 11. July 29, 2016 11 Goal  Receive Product in full pallets rather than layers or cases to save time and cost.
  • 12. July 29, 2016 12 Examples and Outcomes. 3G BIB BRSK FTN SWL Pallet Layer • Increase load/labor time • Increases labor cost • Increases the amount of storage space available. 12oz PL MM VAN CRÈME Cases Layer • Decrease load/labor time • Decrease labor cost. • Decrease storage space available. 16oz CN RKST FRZ PCLDA Layer/case Pallet • Decrease load/labor time • Decrease labor cost • Decrease storage space available.
  • 13. July 29, 2016 13 Project Overview  Breaking down the prior year into periods and summarizing them up into quarterly averages gives us a good forecast from one year to another. Each Quarter is based off of seasonality and weather factors which helps promote a more accurate forecast. Quarter 1 Quarter 2 Quarter 3 Quarter 4 P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P1 1 P1 2 P13 Winter Spring Summer Fall Dec. 26 – Mar. 19 Mar. 19 – Jun. 11 Jun. 11 – Sept 3 Sept. 3 – Dec 31
  • 14. July 29, 2016 14 Sources  Warehouse Rules – Pallet Configurations  Sales Forecasts Reports  Inventory Period Close Reports  Youngwood Safety Supply Day Settings  Period End Location Balance Inquiry  Excel Spread Sheet
  • 15. July 29, 2016 15 Warehouse Rules and Inventory Period Close Reports item_no Product Cases perlayer layers per pallet casesper pallet load time/sec Efficiency Cases/hr Period7 2015 Period8 2015 Period9 2015 Period10 2015 Period11 2015 Period12 2015 Period13 2015 Period1 2016 Period2 2016 Period3 2016 Period4 2016 Period5 2016 Period6 2016 3017 12ozCNPEPSI6/4 9 12 108 10 360 512 847 640 540 376 176 352 418 438 322 320 382 374 3120 12ozCNMDEW 9 12 108 10 360 703 623 542 372 360 166 538 439 263 184 353 155 285 3162 2LPLDTMUGRTBR1/8 8 5 40 10 360 66 106 40 71 53 68 44 144 58 76 115 109 70 3689 5GBIBDRPEP 7 4 140 10 360 46 41 50 37 52 30 39 32 77 40 73 54 33 3789 10ozSCHWCLBSDA 10 6 60 10 360 75 1 117 37 86 136 77 105 94 108 110 75 80 3803 2LPLDTSCHWGALE1/8 8 5 40 10 360 128 19 93 84 126 129 101 113 98 141 141 110 72 3811 10ozSCHWPGALE6/4 10 6 60 10 360 70 32 34 35 17 57 28 52 31 14 27 25 16 3838 10ozSCHWQUITON6/4 10 6 60 10 360 54 72 102 134 121 78 43 75 57 153 102 128 58 6110 12ozNRLNKPEPSI1/24 10 5 50 10 360 0 55 74 81 65 84 57 38 27 60 57 53 36 6112 12ozNRLNKMDEW1/24 10 5 50 10 360 49 81 55 42 42 50 38 33 99 31 69 54 52 6151 5GBIBPEPSIFCB 7 4 140 10 360 23 24 24 25 4 10 3 18 23 19 22 30 28 7530 3GBIBBRSKFTNSWL 7 6 144 10 360 148 64 211 123 81 99 94 31 73 54 90 39 53 7537 3GBIBBRSKFTNUNSNL 7 6 144 10 360 52 47 30 26 36 23 42 23 22 0 55 24 20 9770 12ozCNDTPEPSI 9 12 108 10 360 174 252 195 195 183 219 165 213 231 135 201 191 318
  • 16. July 29, 2016 16 Quarters
  • 17. July 29, 2016 17 Quarters Old Config. Average Product Use Case/Layer Cases/ pallet New Config. Change? Yes/no? Layer Time Time Savings (sec) Inventory amount in safety top days Top safety days Amount for average sales in safety days Adjusted Top Safety Days Average total inventory Ending Inventory P 605 9 108 P YES 90 0 199.47 5.0 120.9 4.0 997.33333 392.66667 P 425 9 108 P YES 90 0 144.13 5.0 85.1 4.0 720.66667 295.33333 PL 191 8 40 P YES 80 1910 56.73 5.0 38.2 4.0 283.66667 92.666667 P 96 7 140 L YES 70 -960 29.13 5.0 19.2 4.0 145.66667 49.666667 PL 114 10 60 P YES 100 1137 21.60 10.0 11.4 9.0 216 102.33333 P 258 8 40 P YES 80 0 75.00 5 51.5 4.0 375 117.33333 LC 44 10 60 L YES 100 310.3333 3.83 20 2.2 19.0 76.666667 32.333333 PL 115 10 60 P YES 100 1153 21.03 10 11.5 9.0 210.33333 95 PL 69 10 50 P YES 100 690 11.07 10 6.9 9.0 110.66667 41.666667 PL 59 10 50 P YES 100 587 4.52 25 2.3 24.0 113 54.333333 L 24 7 140 L YES 70 -240 2.20 20 1.2 19.0 44 20 P 68 7 144 L YES 70 -677 12.03 10 6.8 9.0 120.33333 52.666667 PL 44 7 144 L YES 70 -440 2.95 20 2.2 19.0 59 15 P 259 9 108 P YES 90 0 90.47 5 51.9 4.0 452.33333 193 P 225 7 144 P YES 70 0 62.53 5 44.9 4.0 312.66667 88 P 326 7 144 P YES 70 0 89.53 5 65.1 4.0 447.66667 122 PL 59 7 144 L YES 70 -593 12.13 10 5.9 9.0 121.33333 62
  • 18. July 29, 2016 18 Safety Supply Day Settings Inventory ID number Package size, brand name, and flavor Acceptable /target minimum days of supply for item at location Standard safe days (left column) plus travel days (1for Youngwood) Acceptable /target additional days of supply over Safe DS Acceptable /target highest days of supply at location Number of days of supply above safe days that will trigger a deployment Safeds plus stopdays, target to not ship if projected is higher than this Highest unit of measure Unit of measure for system to auto generate for (P=Pallet, L=Layer, C=Case/box/jug) Product Product Name Stdsafedays Safeds Topdays Topds Stopdays Stopds Ship Uom Rnduomhier 106544 3G BIB BRSK FTNNCGTP POS 7.61 8.61 20 28.61 0 8.61 PAL L 120133 3G BIB CRSH ORG 7 8 10 18 2 10 PAL PL 122462 1L PL 1/12S BRSK SWT 3.22 4.22 3 7.22 2 6.22 PAL P 122464 1L PL 1/12S MDEW CD RD 4.14 5.14 3 8.14 2 7.14 PAL P 122465 1L PL 1/12S BRSK RAZ 2.91 3.91 3 6.91 2 5.91 PAL P 122466 1L PL 1/12S LPT BRSK SWL 3.03 4.03 3 7.03 2 6.03 PAL P 122468 1L PL 1/12S PEPSI WCHE 4.23 5.23 3 8.23 2 7.23 PAL P 122469 1L PL 1/12S DT MDEW 4.58 5.58 3 8.58 2 7.58 PAL P 123252 1L PL 1/12S BRSK TEA LMND 3.32 4.32 3 7.32 2 6.32 PAL P 123253 1L PL 1/12S BRSK PCH T 3.46 4.46 3 7.46 2 6.46 PAL P
  • 19. July 29, 2016 19 Project Process - Step 1 • Evaluated future and prior forecast for 301 items • Identify Potential change • Data mined from previous 13 periods • Used as a yearly forecast for the upcoming year. 1 1 1 1 ID Product Cost Begin inv. Purch. Receive 3017 12 oz. CN PEPSI 6/4 $4.82 459 0 500 3120 12oz CN MDEW $5.11 622 0 216 3162 2L PL DT MUG RT BR 1/8 $6.46 45 0 240 3689 5G BIB DRPEP $38.03 42 0 84 3789 10oz SCHW CLB SDA $5.80 80 0 144 Ex. Quarter 1, P1
  • 20. July 29, 2016 20 Project Process - Step 2 • Calculated Total inventory, product activity and ending inventory. • Product Activity can include sales, breakage, rework, sampling, miscounts, drinkage, etc. Total inventory Product activity Ending Inventory 959 541 418 838 399 439 285 141 144 126 94 32 224 119 105 ID Product 3017 12 oz CN PEPSI 6/4 3120 12oz CN MDEW 3162 2L PL DT MUG RT BR 1/8 3689 5G BIB DRPEP 3789 10oz SCHW CLB SDA 1 1 1 1 Cost Begin inv Purch. Receive $4.83 459 0 500 $5.11 622 0 216 $6.46 45 0 240 $38.03 42 0 84 $5.80 80 0 144 Ex: Quarter 1, P1
  • 21. July 29, 2016 21 Project Process – Step 3  Using the product activity use for each period, I found the average activity use for each quarter per period. SKU Activity Use (Period 1) Activity Use (Period 2) Activity Use (Period 3) Activity Use (Period 4) Activity Use ( Period 5) Activity Use (Period 6) Activity Use (Period 7) Activity Use (Period 8) Activity Use (Period 9) Activity Use (Period 10) Activity Use (Period 11) Activity Use (Period 12) Activity Use (Period 13) 12oz CN PEPSI MAX 24/1 255 551 382 523 526 324 839 567 629 296 553 617 28 15.2oz PL OS ORG 100% 1/12 738 788 838 571 693 548 613 687 790 775 824 813 -194 24oz CN BRSK SWL 1/12 148 95 94 53 32 0 279 289 233 268 168 152 -5 16oz CN MDEW KS LMEADE 1/12 -146 137 78 -134 14 10 440 72 29 -34 68 384 -161
  • 22. July 29, 2016 22 Project Process - Step 4 and 5 • From using previous product configurations and previous years activity use for each item, I forecasted how each product should be built to order and received from production • I was able to calculate savings in load time and labor cost for the warehouse and production sites in that quarter. Old Config. Avg. Activity Usage Case/Layer Cases/ pallet New Config. Change? Yes/no? Layer Time Time Savings (sec) P 605 9 108 P NO 90 0 P 425 9 108 P NO 90 0 PL 191 8 40 P YES 80 1910 P 96 35 140 L YES 350 -960 PL 114 10 60 P YES 100 1137 ID Product 3017 12 oz CN PEPSI 6/4 3120 12oz CN MDEW 3162 2L PL DT MUG RT BR 1/8 3689 5G BIB DRPEP 3789 10oz SCHW CLB SDA Ex: Quarter 1
  • 23. July 29, 2016 23 Project Process – Step 6  Calculated time saved for each new configuration change ◦ Using load times per case and the number of cases per layer for each product Ex: Quarter 2 Old Config. Average Product Use Case/Layer Cases/ pallet New Config. Change? Yes/no? Layer Time Time Savings (sec) item_no Product 3017 12 oz CN PEPSI 6/4 P 499 9 108 P No 90 0 3120 12oz CN MDEW P 451 9 108 P No 90 0 3162 2L PL DT MUG RT BR 1/8 PL 124 8 40 P YES 80 1237 3789 10oz SCHW CLB SDA PL 136 10 60 P YES 100 1360 3803 2L PL DT SCHW G ALE 1/8 P 226 8 40 P No 80 0 3811 10oz SCHWP G ALE 6/4 LC 37 10 60 L YES 100 0 3838 10 oz SCHW QUITON 6/4 PL 115 10 60 P YES 100 1150 6110 12oz NR LNK PEPSI 1/24 PL 55 10 50 P YES 100 547 6112 12oz NR LNK MDEW 1/24 PL 66 10 50 P YES 100 657 6151 5G BIB PEPSI FCB L 34 7 140 L No 70 0
  • 24. July 29, 2016 24 Project Process – Step 7 ◦ Using the total inventory, ending inventory, and top safe days for each product in each period, I was able to regenerate the number of safe days for each product per quarter to correspond with each products PQI dates. ◦ Eliminate potential OOD for new configurations SKU Original Safe Day supply (Quarter 1) Recommended Safe Day Supply (Quarter 1) Original Safe Day Supply (Quarter 2) Recommended Safe Day Supply (Quarter 2) Original Safe Day Supply (Quarter 3) Recommended Safe Day Supply (Quarter 3) Original Safe Day Supply (Quarter 4) Recommended Safe Day Supply (Quarter 4) 12oz CN PEPSI MAX 24/1 5 4.5 5 4.5 5 4.7 5 4.9 15.2oz PL OS ORG 100% 1/12 5 4.8 5 4.6 5 4.6 5 4.7 24oz CN BRSK SWL 1/12 10 9.6 10 9.6 10 10 10 9.6 16oz CN MDEW KS LMEADE 1/12 0 0 0 0 0 0 0 0
  • 25. July 29, 2016 25 Analysis  Selected 15 products that will reduce labor cost and load times for transport if correctly changed to their new product configurations  Based on average product activity use to support PQI dates and shelf life for each product. 7.5oz CN DT SCHW G ALE 8/3 10oz NR DT SCHW QUITON 6/4 10.1oz PL FRT SHT ORG 1/24 11oz CN STRBK DS PRTN VAN BN 1/12 12oz CN AQ SPK LL 1/12 12oz CN AQ SPK ORG GRPFRT 1/12 12oz CN SCHW RAZ LM SPK 12/2 12oz CN MDEW GM FL CIT 12/2 12oz CN AQ SPK BLKCH DRGN 1/12 15.2oz PL OS RR GRFT 1/12 16oz CN RKSTR PRZR SLVIC 1/24 16.9oz CRTN ONE CW TEA TCLDA 1/12 20oz PL LW ACI RAZ OC 1/12 1L PL SCHWP GALE 1/12 12oz CN MDEW KS WTML 1/12
  • 26. July 29, 2016 26 Analysis Product Product Name Old Config. Case/Layer Cases/ Pallet Avg. Use/period for 1 year New Config. 126658 7.5oz CN DT SCHW G ALE 8/3 LC 12 144 115.5 P 30867 10ox NR DT SCHW QUITON 6/4 C 10 60 12 L 143145 10.1 oz PL FRT SHT ORG 1/24 LC 13 91 158.75 P 148054 11oz CN STRBK DS PRTN VAN BN 1/12 LC 28 196 237 P 155966 12oz CN AQ SPK LL 1/12 L 28 168 62.75 P 155969 12oz CN AQ SPK ORG GRPFRT 1/12 L 28 168 63.5 P 152474 12oz CN SCHW RAZ LM SPK 12/2 C 9 108 154.5 P 103883 12oz CN MDEW GM FL CIT 12/2 PL 9 108 349 P 155970 12oz CN AQ SPK BLKCH DRGN 1/12 L 28 168 62.5 P 154692 12oz CN MDEW KS WTML 1/12 LC 28 168 288.5 P 123375 15.2oz PL OS RR GRFT 1/12 LC 10 80 141 P 140651 16oz CN RKSTR PRZR SLVIC 1/24 LC 18 108 41.5 P 148168 16.9oz CRTN ONE CW TEA TCLDA 1/12 C 17 102 138 P 134193 20 oz PL LW ACI RAZ 0C 1/12 LC 17 102 110.25 P 32207 1L PL SCHWP GALE 1/12 L 10 50 24.5 P • Whether the product case configurations changed or stayed the same is based on comparing the average product use per period for 1 year to the number of cases per layer and number of cases per pallet. • If the average use per period for 1 year was greater than cases per pallet then the new configuration would be pallet. • If the average use per period for 1 year was greater than cases per layer, and less than cases per pallet, than the new configuration would be layers.
  • 27. July 29, 2016 27 Analysis - Selected Data Product Product Name Old Config. Case/Layer Cases/Pallet Avg. Use Q3 Avg. Use Q4 Avg. Use Q1 Avg. Use Q2 Avg. Use/period for 1 year New Config. Time Saved $ saved 126658 7.5oz CN DT SCHW G ALE 8/3 LC 12 144 83 49 127 203 115.5 P 0.3 $6.17 30867 10ox NR DT SCHW QUITON 6/4 C 10 60 16 11 7 14 12 L 0.0 $0.00 143145 10.1 oz PL FRT SHT ORG 1/24 LC 13 91 263 115 99 158 158.75 P 0.4 $8.23 148054 11oz CN STRBK DS PRTN VAN BN 1/12 LC 28 196 282 216 138 312 237 P 0.7 $14.40 155966 12oz CN AQ SPK LL 1/12 L 28 168 0 0 0 251 62.75 P 0.7 $14.40 155969 12oz CN AQ SPK ORG GRPFRT 1/12 L 28 168 0 0 0 254 63.5 P 0.7 $14.40 152474 12oz CN SCHW RAZ LM SPK 12/2 C 9 108 36 41 75 466 154.5 P 0.4 $8.23 103883 12oz CN MDEW GM FL CIT 12/2 PL 9 108 312 385 284 415 349 P 1.0 $20.57 155970 12oz CN AQ SPK BLKCH DRGN 1/12 L 28 168 0 0 0 250 62.5 P 0.7 $14.40 154692 12oz CN MDEW KS WTML 1/12 LC 28 168 0 0 629 525 288.5 P 0.5 $10.29 123375 15.2oz PL OS RR GRFT 1/12 LC 10 80 153 124 140 147 141 P 0.4 $8.23 140651 16oz CN RKSTR PRZR SLVIC 1/24 LC 18 108 79 37 19 31 41.5 P 0.1 $2.06 148168 16.9oz CRTN ONE CW TEA TCLDA 1/12 C 17 102 267 145 112 28 138 P 0.4 $8.23 134193 20 oz PL LW ACI RAZ 0C 1/12 LC 17 102 140 104 100 97 110.25 P 0.3 $6.17 32207 1L PL SCHWP GALE 1/12 L 10 50 42 20 26 10 24.5 P 0.1 $2.06 6.70 $137.82 From Increasing product configurations from cases to layers or from layers to pallets, we are able to save load time and the labor cost its associated with due to a decrease in time spent on breaking down pallets received from transport.
  • 28. July 29, 2016 28 Results – Money Saved • The reduction in labor for the building and breakdown of pallets/layers/cases from transport produced savings in time and labor cost. • Labor cost –$20.57 per hour Product Product Name Old Config. New Config. Time Saved $ saved 126658 7.5oz CN DT SCHW G ALE 8/3 LC P 0.3 $6.17 30867 10ox NR DT SCHW QUITON 6/4 C L 0.0 $0.00 143145 10.1 oz PL FRT SHT ORG 1/24 LC P 0.4 $8.23 148054 11oz CN STRBK DS PRTN VAN BN 1/12 LC P 0.7 $14.40 155966 12oz CN AQ SPK LL 1/12 L P 0.7 $14.40 155969 12oz CN AQ SPK ORG GRPFRT 1/12 L P 0.7 $14.40 152474 12oz CN SCHW RAZ LM SPK 12/2 C P 0.4 $8.23 103883 12oz CN MDEW GM FL CIT 12/2 PL P 1.0 $20.57 155970 12oz CN AQ SPK BLKCH DRGN 1/12 L P 0.7 $14.40 154692 12oz CN MDEW KS WTML 1/12 LC P 0.5 $10.29 123375 15.2oz PL OS RR GRFT 1/12 LC P 0.4 $8.23 140651 16oz CN RKSTR PRZR SLVIC 1/24 LC P 0.1 $2.06 148168 16.9oz CRTN ONE CW TEA TCLDA 1/12 C P 0.4 $8.23 134193 20 oz PL LW ACI RAZ 0C 1/12 LC P 0.3 $6.17 32207 1L PL SCHWP GALE 1/12 L P 0.1 $2.06 6.70 $137.82
  • 29. July 29, 2016 29 Youngwood Results – 1 year  From the selection of these 15 items and the changes that were made from Cases to layers and from layers to pallets, there was a savings of: ◦ 6.7 hours of work saved per period. ◦ $137.82 of labor cost saved per period. 6.7 hours X 13 periods = 87.1 hours of time saved/yr ◦ $137.82 X 13 periods = $1,791.65/yr. Youngwood
  • 30. July 29, 2016 30 87.1 X 2 = 174.2 hours of time saved $1,791.65 X 2 = $3,583.30/year Warehouse and Production Results – 1 year  The labor time saved at the Youngwood location will equal labor time saved at production. ◦ 1 warehouse, 1 production ◦ 87.1 hours saved for Youngwood location ◦ $1,791.66 saved for Youngwood location Warehouse/Pro.
  • 31. July 29, 2016 31 National Savings – 1 year  If every satellite location and production site made equivalent changes to their inventory configurations they would save: ◦ 338 locations nationwide ◦ 87.1 hours saved for Youngwood location ◦ $1,791.66 saved for Youngwood location 87.1 X 338 = 29,439.8 hours of time saved/yr. $1,791.66 X 338 = $605,577.70/yr. Nationwide
  • 32. July 29, 2016 32 Storage Space Shrinkage Product Product Name Old Config. New Config. Pallet Type Sq. Feet 126658 7.5oz CN DT SCHW G ALE 8/3 LC P W 10.2 30867 10ox NR DT SCHW QUITON 6/4 C L W 10.2 143145 10.1 oz PL FRT SHT ORG 1/24 LC P W 10.2 148054 11oz CN STRBK DS PRTN VAN BN 1/12 LC P W 10.2 155966 12oz CN AQ SPK LL 1/12 L P P 11.0 155969 12oz CN AQ SPK ORG GRPFRT 1/12 L P W 10.2 152474 12oz CN SCHW RAZ LM SPK 12/2 C P P 11.0 103883 12oz CN MDEW GM FL CIT 12/2 PL P P 11.0 155970 12oz CN AQ SPK BLKCH DRGN 1/12 L P P 11.0 154692 12oz CN MDEW KS WTML 1/12 LC P W 10.2 123375 15.2oz PL OS RR GRFT 1/12 LC P W 10.2 140651 16oz CN RKSTR PRZR SLVIC 1/24 LC P W 10.2 148168 16.9oz CRTN ONE CW TEA TCLDA 1/12 C P W 10.2 134193 20 oz PL LW ACI RAZ 0C 1/12 LC P P 11.0 32207 1L PL SCHWP GALE 1/12 L P P 11.0 158.2 • 158.2 square feet of storage space • Warehouse = 82,000 square feet • New configurations = reduction of storage space by .19%. Storage Space
  • 33. July 29, 2016 33 Results and Recommendations – Top Safety Days  From analyzing the average ending inventory compared to the total average inventory from each period in each quarter, I was able to recalculate the top number of safe day supply for each of the 15 selected products  Shrink ending inventory and support PQI dates. Product Product Name Current Top Safety Supply Days New Top Safety Supply Days. Q1 New Top Safety Supply Days Q2 New Top Safety Supply Days. Q3 New Top Safety Supply Days. Q4. 126658 7.5oz CN DT SCHW G ALE 8/3 25 5 20 5 5 30867 10ox NR DT SCHW QUITON 6/4 20 7 20 20 12 143145 10.1 oz PL FRT SHT ORG 1/24 25 17 25 25 21 148054 11oz CN STRBK DS PRTN VAN BN 1/12 20 8 20 20 11 155966 12oz CN AQ SPK LL 1/12 5 5 5 5 5 155969 12oz CN AQ SPK ORG GRPFRT 1/12 5 5 5 5 5 152474 12oz CN SCHW RAZ LM SPK 12/2 5 5 5 5 5 103883 12oz CN MDEW GM FL CIT 12/2 25 22 25 25 23 155970 12oz CN AQ SPK BLKCH DRGN 1/12 5 3 5 5 4 154692 12oz CN MDEW KS WTML 1/12 25 12 25 25 25 123375 15.2oz PL OS RR GRFT 1/12 25 11 14 16 13 140651 16oz CN RKSTR PRZR SLVIC 1/24 25 8 25 25 14 148168 16.9oz CRTN ONE CW TEA TCLDA 1/12 10 6 6 8 5 134193 20 oz PL LW ACI RAZ 0C 1/12 25 16 16.2 15 12 32207 1L PL SCHWP GALE 1/12 25 10 22 19 12
  • 34. July 29, 2016 34 Takeaways  PepsiCo. Supply chain is a continuous, fast paced process through the relationship of marketing, logistics, warehouse and production.  Responsibilities of warehouse operators are maintaining long-term storage of materials and products to supporting economies of purchasing, production, and transportation.  PepsiCo’s warehouse inventory is strongly based off of weekly forecasts that must be accurate and consistent to meet market demands.
  • 35. July 29, 2016 35 Takeaways  Warehouse operations are sequenced in a series of steps that leads product to reach customers through transport.  The market demand fluctuates through out the year for all products causing unique shifts in demand for each product  Making appropriate, accurate and consistent forecast through out each period decreases the chance of having unnecessary operation cost.
  • 36. July 29, 2016 36 Feedback  Work Experience  Education Experience  Culture  People
  • 37. July 29, 2016 37 & The Youngwood Location