Total Quality Management - Frito Lay

Topics: Frito-Lay, Potato chip, Lay's Pages: 9 (2735 words) Published: March 8, 2013
I. Company Background

The success of Frito Lay is a tribute to two entrepreneur’s dreams. In 1932, C.E. Doolin purchased a bag of corn chips in a café in San Antonio, Texas. He learned that the chips manufacturer was selling his business so he purchased the recipe and began selling Fritos Corn Chip.

Meanwhile, that same year, Herman W. Lay began his potato chip business in Nashville by delivering snack foods. He then purchased the manufacturer, and the H.W. Lay & Company was formed. It soon became one of the largest snack food companies in the Southeast, and LAY'S brand Potato Chips is still America's favorite potato chip.

In 1961, the Frito Company and the H.W. Lay company merged to become Frito-Lay, Inc. Today, Frito-Lay brands account for 59% of the U.S. snack chip industry. In 1965, Frito-Lay, Inc. merged with the Pepsi-Cola Company and formed PepsiCo, Inc. Since that time, Frito-Lay has operated as a wholly owned subsidiary of PepsiCo. Through Frito-Lay, PepsiCo is the largest globally distributed snack food company in the world.

The primary snack food brands produced under the Frito-Lay name include Fritos corn chips, Cheetos cheese-flavored snacks, Doritos and Tostitos tortilla chips, Lay's potato chips. Something wonderful—a company that’s all about good fun—doing good things when it comes to making snacks and caring for the environment. This is the company vision of Frito Lay. For more than 75 years, they have been making snacks, starting with simple, farm-grown ingredients. Frito Lay continues to innovate, so that it can provide tasty products that are good as well as fun. They’re also reducing their environmental footprint by conserving natural resources as well as harnessing renewable energy technology that reduces harmful emissions.

Corporate Awards:

8 U.S. Green Building Council Gold LEED sites (2005-11)

This award is about being able to transform the way they build, design and operate buildings for healthier places that save precious resources for people to live, work, learn and play in. To achieve LEED for Existing Buildings Gold certification, the company's Beloit sustainability strategy included applying a number of green design and construction features, water reduction technologies and practices, as well as improved waste management. With these strategies in place, Frito-Lay Beloit was able to reduce its dependence by 35 percent of natural gas, 20 percent electricity and water by 50 percent per pound of finished product since 2000.

EPA and DOE Partner of the Year for conservation leadership (2006-09)

Frito-Lay, one of a select number of businesses and organizations, was recognized by the United States Environmental Protection Agency (EPA) for energy conservation. To unceasingly develop innovative programs that will improve our business performance and protect the environment by taking full advantage of the use of natural resources, is Frito-Lay's promise to sustainability, while recycling or removing ineffective or polluting resources from our processes. Over the years, the company has willingly developed and implemented programs aimed at environmental sustainability.

One of Fast Company’s Most Innovative Companies (2010-2011)

One of the companies that were named Most Innovative Companies is Frito Lay for its plan to move all 32 of its plants to zero-waste status. The snack giant has completed what is perhaps an even more ambitious project: a 75% net-zero energy plant that the firm is calling the "greenest manufacturing facility in the U.S”

II. Product Discussions

A. Specifications

Lay’s potato chips have two sizes. The small pack 28.3 grams while the large pack weighs 184.2 grams. The potato chip itself is about 2.5 inches in diameter.

B. Quality Dimension


Frito Lay North America is a top player in the snack food industry in United States, with a 65% of the market share at the presence of principal competitors such...
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