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PepsiCo on Asset Reliability and TPM

Two representatives from PepsiCo delivered presentations Tuesday afternoon in the Food and Beverage track.

First up was Ed Michael, national reliability manager at Frito-Lay, who talked about how asset reliability has improved markedly at Frito-Lay since a National Reliability Team was formed in 2002. Back then, Frito-Lay was experiencing downtime-caused by changeovers, operational failure, equipment failure, power outages and raw ingredients shortages-in the range of 9 percent. Today that number is 4.7 percent. This improvement in asset utilization is one of the reasons that the company hasn't had to build a new plant in about seven years, noted Michael.

Partially responsible for the improvement in asset reliability at Frito-Lay is Invensys's Avantis Enterprise Asset Management solution, a maintenance, repair and operations solution that helps reduce costs while continuing to maximize asset reliability and performance. But equally important, noted Michael, was the simple fact that Frito-Lay stopped viewing reliability as a cost, and instead began to view it as an enabler.

Later in the day it was Jeff Russell's turn. He is a Total Productive Manufacturing (TPM) coach in PepsiCo's beverage division, which includes brands such as Gatorade, Naked Juice and SoBe.

A main objective of TPM in Russell's group is to drive ownership of equipment into the hands of the operators. "Why call a maintenance expert to grease a machine or turn a photo-eye if it gets bumped out of position?" said Russell. "Why shouldn't operators who spend time with their machines shift after shift take enough ownership of those machines to perform such tasks themselves?"

Russell also touched on some of the key manufacturing needs that his group faces, including these:

  • Flexibility of equipment needs to be increased so that changeovers can be done more quickly.
  • Market demand must be better balanced with manufacturing capacity to optimize material usage and asset utilization.
  • Better integration spanning the entire organization will lead to greater productivity. For example, why should a line ever be shut down because supplies of corrugated material are inadequate or a key product ingredient is not in inventory?
  • The cost of design, deployment and support of manufacturing and IT systems at manufacturing plants around the world must be reduced.
  • It would be nice if customer orders, production scheduling and raw materials supply were driven by real-time information so that just-in-time manufacturing could become more commonplace.
  • Similarly, real-time operating key performance indicators (KPIs) and financial accounting of yield, scrap and inventories should be available anywhere in the enterprise through SAP integration.
  • It would be nice if manufacturing procedures, manuals, equipment centerlines and the like were available to operators on plant floor terminals and tablet PCs.
  • More warehouse space needs to be transformed into manufacturing space, and better control of manufacturing processes is what will permit this to take place.
  • Manufacturers need to pay more attention to energy intensity, i.e., how much power is required to produce a gallon of juice?

Russell also wishes that IT solutions that are intended to improve manufacturing operations weren't so often driven by the top executive levels of today's manufacturing companies. Too often, these solutions are developed with no input from manufacturing professionals, and this, he believes, is not right.

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