Strategic management of technology at Frito-Lay's Kern manufacturing facility

Recognizing that technology is an important element of competitive strategy, the Frito-Lay Kern facility has invested substantially in both its people and technology. Reviews the technology and process applications, highlights organizational approaches and discusses implementation issues and success factors at the Kern facility. interconnected systems . . .’’ which allows coordination and collaboration between computers and the functions they formulate. (Attaran, 1996). The DH network links Allen Bradley 504 (500 series) programmable logic controllers (PLC) and operator interface terminals (OIT) which serve as the `̀ backbone’’ of the computing and interfacing needs required in an automated factory. The OIT allows line operators to communicate to the CIM system in a pre-defined format, allowing line manipulation, in the form of production throughput, quality, raw ingredients, moisture content, and temperature settings. The OIT uses a graphical interface program (GIP), known as Wonderware , to provide a visual representation of all equipment speeds and settings. Additionally, this program provides real time data to the operator to access line performance. Settings established by the operators must conform to a pre-established matrix of variables to allow the CIM systems to maintain an `̀ auto’’ mode of operations. Production line permissive matrixes vary depending on the product type, seasons, and mode of operation. Operational modes vary, and are dependent upon the function being performed. For example, the `̀ start-up’’ mode allows the manufacturing line to achieve specified set points before any product is processed through the system. This function eliminates the waste of raw ingredients and the labor associated to it in the form of transportation, receiving, and staging. As the predefined set points are established, the CIM system will display real time information of all conditions throughout the line. The operator can then select the auto mode for line production. As the line ramps up in production volume, the CIM system will continuously monitor all the line variables (in the form of inputs, both discrete and analog, and display those variables to the OIT). The CIM system will further monitor the line inputs and via output modules, will control line temperatures and speeds. The computer programming matrixes, sometimes in the form of cascaded programming loops, looks at statistical process control (SPC) programs to evaluate trends and will make line compensations to provide a steady state process. If computer input signals deviate outside, above or below, predefined set points, the CIM system will provide both audio and visual alarms to notify the operator of a control point deviation. The operator will then have to assess the situation to determine a proper course of action. Figure 1 illustrates the bakery CIM network in a generic format. The automated warehouse The warehouse system comprises six different computer systems, each responsible for specific warehouse functions. First, a system known as Auto motion transfers core products to an induction lanes system. The Auto motion system receives cased product from the potato chip, Fritos, and Doritos lines. This system is composed of a number of conveyance systems, which utilize a number of photo sensors to traffic the flow of products to the induction system. Two induction lanes separate cases so that a bar code scanner can determine the type of product being conveyed. Next, the system transfers individual cases on to a tilt tray conveyance system that delivers the cases to one of 30 lanes, predetermined for a specific product type. Both the induction lane and tilt tray systems operate off the same computer. Once the product has been delivered to one of the 30 lanes, five automated case palletizers, manufactured by Fanue, will automatically palletize the cases in predetermined formats. Fanue robot palletizers are similar in construction to those robots found in automated car assembly lines ± primarily in the welding applications. The implementation of the robots eliminated five positions, but created higher skilled positions. Once the palletizers have completed a full pallet, the pallet is staged for AGV pickup. The palletizing phase of the project focused on streamlining of the core products business. The AS/RS system also had to accommodate the new bakery expansion. Upper management evaluated the cost and infrastructure requirements to determine the feasibility of expanding the automation process. At that time, management determined the feasibility to be outside the strategic needs of the business. However, management did determine the need with respect to utilizing the AS/RS system in the bakery. Approximately 600yd of additional underground wiring (subsurface) were needed for AGV tracking and monitoring. New AGV induction points were installed adjacent to bakery packaging where manual palletizing and transfer systems were incorporated. Underground wiring had to be incorporated on predetermined shutdowns to allow for system startup and program initialization. Regardless of pallet input stations from the bakery induction points and the input points of the auto palletizers, the system would transfer all products to the AS/RS input stations, known as pickup and drop off (P&D) stands. At this point, the SRVs would continuously deliver products to and from [ 265 ] Mohsen Attaran and Samuel Michael Grijalva Strategic management of technology at Frito-Lay’s Kern manufacturing facility Industrial Management & Data Systems 101/6 [2001] 264±272