PepsiCo Food Shanghai Plant Production Planning Management Improvement Study

Fast changing market environment has more requirement on high production efficiency; on-time delivery and flexible capability. As a manufacturing company, how to meet customer needs with high efficiency and low cost is a common operational problem for modern corporations. Planning is the key function of management, while production planning is the key of corporation’s planning management system. An optimized production planning system can create excellent productivity and operational improvement on each management level, and achieve the better business performance target of whole corporations.PepsiCo Foods is a typical MTS FMCC manufacturing company, its product and target consumers result the big uneven demand during different seasons. Meantime, more customer individuation and diversity requirement result many product series which impacted the production efficiency a lot. Facing the variable demand, the main issue which company met is how to balance and enhance the production capability; eliminate the bottle neck of constrictive capability resource to achieve minimized cost. Work out an optimized production capability and aggregate production plan to cope with the increasing operational resource cost, it was very important to maintain a continuous revenue increasing and industrial competing advantage.This thesis will focus on the optimizing improvement of annual aggregate production plan and production capability for PepsiCo Shanghai plant. Firstly, applying three aggregate planning strategies to dealing with uneven demand, to analyze and make the comparison for three strategies’total cost, while applying linear programming mathematic method to configure the optimized model of annual aggregate production plan with lowest cost target. Secondly, facing the recourse constraints of production capability, make the improvement study on HR management; equipment overall efficiency; raw material supply and production control system to optimize company whole operational plan, increase the production capability and cut down the operational cost as well. Finally, make some study for long term capability development strategy, through capability balance of demand management and mixed strategy of capability expansion schedule for Shanghai plant to solve the continuous forecast increasing in following years.