Ingredient Tracking for HFCS (High Fructose Corn Syrup)

Pepsi Beverages Company

Ingredient Tracking for HFCS (High Fructose Corn Syrup)

Project Outline

Project Purpose

The intention of this project is to develop a way to track the receipt, transfer and usage of HFCS (High Fructose Corn Syrup) to accurately identify gains and losses in sugar at any give time. The project includes the development of best accounting practices, diagramming the use of HFCS, identifying areas of opportunity, pricing new equipment or modifying existing equipment.

History

With the introduction of Self-Manufacturing process Pepsi has significantly increased volumes requiring the plant to produce twenty-four hours, seven days a week on the bottle lines. One ingredient in many of our products is HFCS, (High Fructose Corn Syrup) which is transported to the facility by train using tanker vessels. Sugar being moved from the tanker cars to the facility is accomplished by using air to push the HFCS out of the tanker car to the facility. Unless the tanker is completely emptied it is very difficult to determine the daily reconciliation of corn sweetener received. Currently, the Denver production facility is using 110 million pounds of HFCS a year. It is critical our daily tracking of HFCS received is accurate at any given time.

Project Objectives

Perform research to develop a way to track the use of HFCS.

Diagram the flow of HFCS
Analyze current tracking methods
Identify areas of opportunity
Develop accounting best practices
Accurate measure of incoming HFCS
Price the installation of new equipment or the repair of current equipment
Develop implementation plan
Write the strategic rational synopses for the implantation of new tracking methods covering the following topics:
Critical strategy
Economic justification
Action plan
Present final recommendations to Management

Project Scope

In-Scope

The scope of the project is HFCS tracking through out the production process. Individuals taking on this project will utilize the resources available to understand and track HFCS use and develop tracking plan for the Pepsi facility. Quality of product or production processes cannot be compromised by tracking methods.

- Description of the HFCS use process and areas of opportunity:

Receipt
Transfer
Use
Waste

Out of scope

- Making monetary promises to suppliers or venders

- Any changes that will effect product quality or negative image of PBC

- Implementation of project.

Deliverables

- Develop a set of plans to account for HFCS use.

- A one page synopsis for each of the best areas of opportunity

Critical strategy
Economic justification
ROI < 3 Years
Action Plan
Project or task.
Accountable individuals or team of individuals.
Timeline for completion.
Completion date.
Savings.
Strategic rationale.
Cost savings

- Other Deliverables

Use defined by consumption points and cost
Design and execute brainstorming session(s)
Package results for hand-off to plant for further development

Project Approach

- Review Pepsi Manufacturing Practices and Rules

- Review tracking process

- Meet with Dan Frauenfelder, Doug Waechter and Stephanie Brossman

- Receive necessary briefings on and documentation related to processes, points, and approaches

- Outline HFCS process flows in addition to measurement points; confirm flows and points w/Pepsi

- Research and brainstorm as necessary on opportunities and action plans. Pepsi personnel involved in the brainstorm process are:

Dan Frauenfelder (Process Compliance Manager)
Katie Ojennes (Production Manager)
Mark Allen (Quality Control Manager)
Nate Mulhen (BU Engineer)
Doug Waechter (Quality Control Supervisor)
Stephanie Brossman (Quality Control Supervisor)
Rene Gonzales (Quality Control Supervisor)
Terry Cobb (HFCS Receipt)
Jeannie Koskimaki (Ingredient Supply Coordinator)
Suppliers you would like to engage with

- Utilizing period HFCS usage report to determine best opportunity for improvements, along with knowledge from plant tour

- Develop and finalize synopsizes

- Present results

- Package result and feedback for hand off

Critical Milestones and Event Dates

September

- Review of manufacturing process and initial plant tour

- Validate HFCS flow process and obtain measurements

- Research team’s initial thoughts on opportunities

- Design brainstorming session & identify any additional constituencies and/or participants

- Execute brainstorming session (end of month)

October

- Compile and handout from brainstorming session results

- Identify KPIs (Key Performance Indicators)

- Identify preliminary tracking strategies

- Develop draft synopsizes (due at end of October)

- Obtain first pass on supplier quotes

November

- Continue development of synopsizes

- First draft on awareness plan to sell HFCS tracking

December

- Finalize plans

- Present results

- Compile results and feedback

Celebrate wins as they occur

Quality Considerations

Conservation projects cannot compromise quality of product or processes associated with product quality in any way. Process changes must be defined without compromising quality of product or process

If ROI in not <3 years broaden scope to include other tracking methods.

Roles & Responsibilities

Students / Pepsi
Develop synopsis and approach to conservation goals / Agree on action plans and goals

Dan Frauenfelder (Project Manager)
Mark Allen (Quality Control Manager)
Doug Waechter (Project Mentor)
Stephanie Brossman (Co-Project Mentor)

Establish execution planner and track progress / Ensure executional planner tracks progress

Dan Frauenfelder (Project Manager)
Mark Allen (Quality Control Manager)
Doug Waechter (Project Mentor)
Stephanie Brossman (Co-Project Mentor)

Establish goals from prioritizing potential opportunities / Agree with or realignment with goals and opportunities

Dan Frauenfelder (Project Manager)
Mark Allen (Quality Control Manager)
Doug Waechter (Project Mentor)
Stephanie Brossman (Co-Project Mentor)

Present goals and priorities to Operations Management Staff / Gain alignment and help work with to reach conservation goals
Operations Management Staff

Mark Allen (Quality Control Manager)
Doug Waechter (Project Mentor)
Stephanie Brossman (Co-Project Mentor)
Katie Ojennes (Production Manager)
Matt McLaughlin (Plant Manager)

Other managers affected by changes

Assumptions

- Project teams shall have reasonable access to project-related facility locations as requested, provided sufficient notification of the student visit is given

- Some measurement devices needed for project success are currently in place; others may need to be installed to accurately measure usage

- Any accurate documentation regarding HFCS will be shared with the student team

- The project team will designate one point-of-contact for PBC

- A status meeting will occur at least once a week with PBC. (In person or conference call)

Additional Notes:

When working in corporate environment expect the following:

- Expect candid feedback, do not take it personal

- Validate your findings & provide backup data to support findings

University of Colorado – Leeds School of Business

Project Outline Document