Aggregate Planning at Frito Lay
In Module 8, you will be asked to complete a case study assignment.
Directions: Read the introduction paragraph on Frito Lay on Page 518 of the textbook, and also watch the following youtube videos:
(you can copy and past the links in your browser). After watching the above videos, answer the following questions:
Does it appear that Frito Lay was using mathematical planning? Please explain.
How did aggregate planning help accurately schedule labor hours to decrease overall operational costs?
Was Frito Lay using capacity or demands option of aggregate planning? Please explain.
What do you think the operations of Frito Lay would be like if they never used aggregate planning strategies?
What steps would you create to setup a facility like Frito Lay did with aggregate planning?
Is there anything that you would have done differently if you were the CEO of Frito Lay?
Who should be responsible for aggregate planning?
What are some strategies that you learned from this case?
Submission: The plan should be 4 pages in length, not including the title or reference pages, and include an introduction with a thesis statement and a conclusion that summarizes the main ideas. Each paragraph should have a topic sentence supported by 3-5 sentences that offer additional details, explanation, and examples. The plan should be free of errors in grammar, sentence structure, and other mechanics. In addition, the plan should be in APA format, which includes Times New Roman, 12 point font with double line spacing and one inch margins. Submit the assignment as a Word document with the file name LastName_FirstName_CaseStudy2.
P. 518 of textbook 1st paragraph reads:
Like other organizations throughout the world, Frito-Lay relies on effective aggregate planning to match fluctuating multi-billion-dollar demand to capacity in its 36 North American plants.
Planning for the intermediate term (3 to 18 months) is the heart of aggregate planning. Effective aggregate planning combined with tight scheduling, effective maintenance, and efficient employee and facility scheduling are the keys to high plant utilization. High utilization is a critical factor in facilities such as Frito-Lay, where capital investment is substantial.
Heizer, Jay; Render, Barry (2013-03-29). Operations Management (11th Edition) (Page 518). Prentice Hall. Kindle Edition.