EGN 5621 – Enterprise systems collaboration



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Term Project: Company Background and Data

Table of Contents

Company History and Overview 2

Company Overview 2

Key Dates in PepsiCo History 3

Corporate Mission 3

Corporate Vision 4

Value 4

Strategies for Growth 4

Code for roadmap 5

Products lines for Pepsi and Mountain Dew 5

Organization Structure and Business Processes 6

Organizational Structure 7

Product, Production and other related data 9

Bill of Materials 9

Work centers and Routing 11

Vendor 12

Major Customers 12

Financial Accounts 13

Company History and Overview

Company Overview

PepsiCo was founded in 1965 via the merger of Pepsi-Cola and Frito-Lay, up to now Pepsi-Cola and Frito-Lay are still the major products of PepsiCo, Inc. In 1966, Doritos brand tortilla chips are introduced; Pepsi entered Japan and Eastern Europe and open a broad market. In the 1970s, PepsiCo acquired Pizza Hut, Inc., in the same time, Pepsi-Cola becomes the number one cola drink in the supermarkets. In the 1980s, PepsiCo focused on the human healthy problems and invented the first major brand caffeine free colas. In the 1990s, PepsiCo acquired Tropicana Products from Seagram Company Ltd., the biggest acquisition even undertaken by PepsiCo. Up to now, PepsiCo became the second largest manufacturer of soft drink in the world; it has 22 different product lines that offer variety of high quality products providing refreshment and nutrition. Like Quaker, Cheetos, Mirinda, Starbucks, Fritos, Aquafina, 7 up, Lay’s, Ruffles, which are all our favorites.

Indra Krishnamurthy Nooyi, the chairman and chief executive officer of PepsiCo, joined the company in 1994 and was named CEO in 2006. She is striving for a net-zero impact on the environment and focuses on the healthier beverages and foods. She also was ranked No.11 in Fortune’s list of the most powerful women in business.

Key Dates in PepsiCo History

1898, Pepsi-Cola Company formulated. In 1948 and 1964, Mountain Dew and Diet Pepsi was invented.

1932, Fritos brand corn chips and Lay’s brand potato chips were created.

1960s, Doritos brand tortilla chips are introduced. Pepsi enters Japan and Eastern Europe.

1970s, PepsiCo moves from New York City to Purchase, N.Y. Pepsi-Cola becomes the number one cola drink in supermarkets.

1980s, PepsiCo enters the top 25 of the Fortune 500 ranking.

1990s, PepsiCo spins off Kentucky Fried Chicken, Pizza Hut and Taco Bell as Tricon Global Restaurant, Inc. The Pepsi-Cola Company celebrates its 100th anniversary.

2000s, PepsiCo merges with The Quaker Oats Company. PepsiCo celebrates its 40th anniversary.

2010s, Diet Mountain Dew, Brisk and Starbucks ready-to-drink beverages join PepsiCo’s portfolio of billion-dollar brands, bringing the total to 22.

Corporate Mission

The mission of PepsiCo is to be first consumer products in this world. Its mean products are convenient foods and beverages. PepsiCo is always pursuing giving the most profits to its investors, employees, and business partners. They use honesty, fairness and the best integrity to create every single product.

Corporate Vision

“Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

At PepsiCo, we're committed to achieving business and financial success while leaving a positive imprint on society - delivering what we call Performance with Purpose.

Our approach to superior financial performance is straightforward - drive shareholder value. By addressing social and environmental issues, we also deliver on our purpose agenda, which consists of human, environmental, and talent sustainability.”

Value

PepsiCo always want to be an environmentally and socially responsible company. PepsiCo is aware of how the environment plays an important part in their sustainability; so they lighted their bottles’ weight, use green materials as more as possible. Via their customer services, they build trust between their agenda and customers.

Strategies for Growth

PepsiCo has several key strategies for sustainable, long‐term growth, including: 

▪ Building a responsible and trustable company

▪ Profitably growing the company’s beverage business worldwide 

▪ Seek to produce financial rewards to investors

▪ Ensuring green environmental, responsible financial management

Code for roadmap

At PepsiCo, they have faith in acting ethically and responsibly are not only the correct things to do, but also the correct things to do for their business.

▪ Act responsible and respect in the work environment

▪ Act with trustiness in the market environment

▪ Focus on environmental stewardship, activities to benefit society

▪ Commitment to build shareholder value

Products lines for Pepsi and Mountain Dew

|Pepsi |Mountain Dew |

|Pepsi Max |MTN Dew |

|(Zero Calories. Maximum PepsiTaste) |MTN Dew Baja Blast |

|Diet Pepsi |Black Cherry Kick Start MTN Dew |

|(Love every sip) |Limeade Kickstart MTN Dew |

|Pepsi Next |Diet MTN Dew |

|(Drink it to believe it) |MTN Dew Code Red |

| |MTN Dew Live Wire |

| |MTN Dew Voltage |

| |MTN Dew White Out |

| |MTN Dew Throw Black |

| |Orange Citrus Kickstart MTN Dew |

| |Fruit Punch Kickstart MTN Dew |

Table. 1 Two Products lines in PepsiCo

Organization Structure and Business Processes

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Fig. 2 Detail of organization structure in PepsiCo

Organizational Structure

Fig. 1 Organization structure

Company Code: C___

|Headquarters |Plant |P___ |PepsiCo Inc. |Purchase, NY USA |

|Bottling Plant |Plant |P___ |The Pepsi Bottling Group, Inc. |Somers, NY USA |

|Bottling Plant |Storage Location Raw Materials |SL__ |The Pepsi Bottling Group, Inc. |Somers, NY USA |

|Bottling Plant |Storage Location Finished Goods |SL__ |The Pepsi Bottling Group, Inc. |Somers, NY USA |

|Distribution Center |Shipping Point |S___ |Refreshments Services Pepsi |Tallahassee, FL USA |

|Distribution Center |Storage Location Finished Goods |SL__ |Refreshments Services Pepsi |Tallahassee, FL USA |

Table. 2 Company Code C___ of PepsiCo

Product, Production and other related data

Bill of Materials

For Diet Pepsi

|Material |Part number |Qty / Unit |Cost / Order|Order Qty |Cost / Unit|material type |Vendor |

|Water | |1 ltr |400 |4000 ltrs |0.10 |raw |Crystal Clear Water |

| | | | | | | |Systems Mahopac, NY |

|Artificial Sweetener | |1 ltr |280 |140 ltrs |2.00 |raw |American Sugar Refining |

| | | | | | | |Inc. Yonkers, NY |

|Diet Pepsi Flavoring | |1 ltr |180 |400 ltrs |0.45 |raw |Pepsico |

|Syrup | | | | | | | |

|Diet Pepsi Cans | |7000 |350 |7000 |0.05 |raw |Rexam Chicago, Illinois |

|Diet Pepsi Lids | |7000 |70 |7000 |0.01 |raw |Rexam Chicago, Illinois |

|12 Pack Box for Diet | |600 |12 |600 |0.02 |raw |Nepa Carton and Carrier |

|Pepsi | | | | | | |Co., Inc. |

Table. 3 Detail of the BOM for Diet Pepsi products

For Diet MTN Dew

|Material |Part number |Qty / Unit |Cost / Order|Order Qty |Cost / Unit|material type |Vendor |

|Water | |1 ltr |400 |4000 ltrs |0.10 |raw |Crystal Clear Water Systems|

| | | | | | | |Mahopac, NY |

|Artificial Sweetener | |1 ltr |280 |140 ltrs |2.00 |raw |American Sugar Refining |

| | | | | | | |Inc. Yonkers, NY |

|Diet MTN Dew Flavoring | |1 ltr |180 |400 ltrs |0.45 |raw | |

|Syrup | | | | | | |PepsiCo |

|Diet Mountain Dew Cans | |7000 |350 |7000 |0.05 |raw |Rexam Chicago, Illinois |

|Diet MTN Dew Lids | |7000 |70 |7000 |0.01 |raw |Rexam Chicago, Illinois |

|12 Pack Box for Diet MTN| |600 |12 |600 |0.02 |raw |Nepa Carton and Carrier |

|Dew | | | | | | |Co., Inc. |

Table. 4 Detail of the BOM for Diet MTN Dew

Trading goods

|Material |Part number |Qty / Unit |Cost / Order|Order Qty |Cost / Unit|material type |Vendor |

|Pepsi Bottle Cap Keychain| |10000 |5000 |1000 |0.50 |trading goods |Flexsystems USA, Inc. |

| | | | | | | |El Cajon, CA |

Table. 5 Detail of trading goods for PepsiCo

Work centers and Routing

Routing for Diet Pepsi

|Operation no.: |Ingredients / Parts |Steps |Time |Cost |Work |Plant |

| |used | |(min) | |Center | |

|1 |water, artificial sweetener, |mix the ingredients to form final |0.09 |0.08 |WCPS |P110 |

| |flavouring syrup |product i.e. diet Pepsi | | | | |

|2 |Diet Pepsi Can |fill the cans with diet Pepsi |0.02 |0.01 |WCFL |P110 |

|3 |Diet Pepsi Lid |seal the cans |0.01 |0.01 |WCSL |P110 |

|4 |Diet Pepsi 12 Pack Carton |make 12 pack cases for distribution |0.12 |0.03 |WCPK |P110 |

Table. 6 Detail of routing for Diet Pepsi products

Routing for Diet MTN Dew

|Operation no.: |Ingredients / Parts |Steps |Time |Cost |Work |Plant |

| |Used | |(min) | |Center | |

|1 |water, artificial sweetener, |mix the ingredients to form final |0.09 |0.08 |WCPS |P110 |

| |flavouring syrup |product i.e. diet MTN Dew | | | | |

|2 |Diet MTN Dew Can |fill the can with diet MTN Dew |0.02 |0.01 |WCFL |P110 |

|3 |Diet MTN Dew lid |Seal the can |0.01 |0.01 |WCSL |P110 |

|4 |Diet MTN Dew 12 pack Carton |Make 12 pack cases for distribution |0.12 |0.03 |WCPK |P110 |

Table.7 Detail of routing for Diet MTN Dew products

Vendor

|Vendor Name |Location |Material Type |Material |

|American Sugar Refining Inc. |Yonkers, NY |Raw Material |Artificial Sweetener |

|Rexam Chicago, Illinois |Chicago, Illinois |Raw Material |Aluminum Cans |

|Crystal Clear Water Systems |Mahopac, NY |Raw Material |Water |

|Flexsystems USA, Inc. |El Cajon, CA |Trading Goods |Pepsi Key Chain |

|Nepa Carton and Carrier Co., Inc. |Moosic, PA |Raw Material |12 Pack Cartons |

Table. 8 Detail of vendor for PepsiCo beverages

Major Customers

|Customer Name |Location |

|Wal-Mart Stores, Inc. (Including Sam’s club) |850 Cherry Avenue San Bruno, CA 94066 |

|Fast Food Restaurant |KFC |1900 Colonel Sanders Ln Louisville, KY 40213 |

| |McDonalds |McDonald's Corporation 2111 McDonald's Dr. |

| | |Oak Brook, IL 60523 |

| |Burger King |Burger King Worldwide 5505 Blue Lagoon Drive |

| | |Miami, FL 33126 |

Table. 9 Detail of major customers for PepsiCo beverages

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Credit Control Area C___

Division

Client

Company Code C___

Work Center WC___

Sales Organization S___

Plant P___

Cost Center Standard Hierarchy*

Controlling Area C___

Fiscal Year Variant K1

Chart of Accounts C___

Purchasing Organization

Shipping Point S___

Purchasing Group

Distribution Channel (RE/WH)

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