PepsiCo Company Harvard Case Solution & Analysis

Total Quality Management:

The TQM theory is a vital part in quality control and operations management department in each and every organization so the same applies to PepsiCo as well (Peters, T. and Waterman, R. 1982, pp. 12-23). The quality control department in Pepsi should make sure that all the steps of total quality management are included in the organization to make sure that the manufacturing process is free of error. Therefore, PepsiCo needs to implement total quality management techniques and standards so as to ensure the quality standards. Furthermore, the company needs to apply TQM so that the company can gain back the trust of stakeholders and customers. To ensure quality standards the company has applied steps that are involved in the TQM process (Martin, 1993). Steps involved in the total quality management problems in order to solve the Pepsi issue are as follows:

First of all, the department needs to identify the problem i.e. the cause of the problem. After identifying the problem, the operations management department of the company needs to inform the top management to identify all the problems regarding quality. To identify problems, the company can use fish bone diagram to make it simple and easy to understand for the top management of the company.

After identifying the issues, proper and deep analysis needs to be done so that measures can be taken so as to ensure safety. While analyzing the problems, it should be broken down into sections, and then sections should be prioritized according to its urgency. After prioritizing problems, there must a brainstorming session in which ideas can be generated about how to solve and resolve issues identified above (Tichey, 1983).

Next step in the process of total quality management is the testing of ideas. After identifying issues and idea generation, the company needs to test those ideas on a smaller level. If the ideas are successful then, it can be applied to a bigger level. Pilot testing can help PepsiCo to identify problems in ideas. After the testing of ideas, the next thing that needs to be done is the implementation of those ideas to solve the problem. Last step in the process of TQM involves checking the result to gauge the results of the implementation.

Fish-bone theory:

The main idea behind fish-bone theory is that problems and issues need to be analyzed by squiggling down the issues in a diagrammatic form so that it can be understood easily. The diagram is based on the cause and effect relationship that means the companies first identifies the cause of the problems and then the effect of those problems on the performance of the organization. With the help of total quality management techniques and fish bone theory, the PepsiCo Company can identify a range of problems faced by companies. Furthermore, with the help of these theories, the company has perused the change over the passage of time by taking strict measures to ensure the quality in the manufacturing process (Swiss, 1992).

It is clearly evident that issues raised in the manufacturing of Pepsi were due to the carelessness of employees and slackness of the operations management and quality control department. It has been observed that employees and other staff in the company are not fully trained and skilled. The company needs to take measures so as to ensure the correct pressure and temperature for the bottles so that drinks cannot be contaminated. In a nutshell, the management of the company needs to ensure that water used in the manufacturing is properly distilled and boiled. Further, training should be provided to the employees and other staff members in the company. The management of the company needs to understand that perishable goods need special care and attention, and a slight negligence can be severely hazardous for the health of consumers. With the help of operational management theories, the prime issues have been identified and sorted as well.................................

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