Course Project Pringles

8/10/2019 Course Project Pringles

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CONTENT

INTRODUCTION____________________________________________________________________2

1. THEORETICAL PART__________________________________________________3

1.1 Description of Six Sigma_____________________________________________________31.2 Doctrine________________________________________________4

1.3 Methodologies___________________________________________5

1.4 Implementation roles_________________________________________________7

1.5 Origin and meaning of the term "six sigma process"______________________9

1.6 Role of the 1,5 sigma shift__________________________________10

1.7 Criticism___________________________________________________12

1.8 Application_________________________________________________14

2. PRACTICAL PART

2.1Main characteristic of chosen product________________________________16

2.2 Description of innovation__________________________________19

2.3 Analysis of main consumers________________________________20

2.4 Analysis of main competitors________________________________________21

3. ANALYSIS OF PRODUCTION LINE__________________________________________________24

3.1 Sequence of operations____________________________________24

3.2 Amount of workers and time_________________________________________29

3.3 Description of the equipment________________________________________29

4. PRODUCTION PLAN OF PRODUCT WITH INNOVATION_____________31

4.1 Plan of the works__________________________________________________________31

4.2 Critical path_____________________________________________________________________________32

4.3 Calculation of the network graph indicators______________________________________32

5. NEW DESIGN_____________________________________________33

6. MAIN TECHNIVAL AND ECONOMIC INDICATORS OF PERFORMANCE

________________________________________________________________________________________34

7. CONCLUSION___________________________________________________________________36

8. LIST OF REFERECES_______________________________________37


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INTRODUCTION

The main aim of this course project to consolidate skills on the basis of

key indicators of designing and manufacturing a product on the production

company.Presented course work structurally consists of four sections.

The first section theoretical part provides information about the Six

Sigmaa a set of techniques, and tools for process improvement.

Second part of this project encompasses the information about market of

Pringles chips, description of chosen company, its main competitors and

consumers, and depiction of innovation.

In the third section there is production plan of product with the innovation

and network graph.

The forth part includes description of a package new design which was

invented in framework of course project.


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1 THEORETICAL PART

1.1 Description of Six Sigma

Picture 1.1 Six Sigma

Six Sigma is a set of techniques, and tools for process improvement. It was

developed by Motorola in 1986, coinciding with the Japanese asset price bubble

which is reflected in its terminology. Six Sigma became famous when Jack Welch

made it central to his successful business strategy at General Electric in 1995.

Today, it is used in many industrial sectors.

Six Sigma seeks to improve the quality of process outputs by identifying

and removing the causes of defects (errors) and minimizing variability in

manufacturing and business processes. It uses a set of quality management

methods, including statistical methods, and creates a special infrastructure of

people within the organization ("Champions", "Black Belts", "Green Belts",

"Yellow Belts", etc.) who are experts in the methods. Each Six Sigma project

carried out within an organization follows a defined sequence of steps and has

quantified value targets, for example: reduce process cycle time, reduce pollution,

reduce costs, increase customer satisfaction, and increase profits.

The term Six Sigma originated from terminology associated with

manufacturing, specifically terms associated with statistical modeling of

manufacturing processes. The maturity of a manufacturing process can be

described by a sigma rating indicating its yield or the percentage of defect-free

products it creates. A six sigma process is one in which 99.99966% of the products


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manufactured are statistically expected to be free of defects (3.4 defective

parts/million), although, as discussed below, this defect level corresponds to only a

4.5 sigma level. Motorola set a goal of "six sigma" for all of its manufacturing

operations, and this goal became a by-word for the management and engineeringpractices used to achieve it.

1.2 Doctrine

Six Sigma doctrine asserts that:

- Continuous efforts to achieve stable and predictable process results

(i.e., reduce process variation) are of vital importance to business success.

- Manufacturing and business processes have characteristics that can be

measured, analyzed, controlled and improved.

- Achieving sustained quality improvement requires commitment from

the entire organization, particularly from top-level management.

Features that set Six Sigma apart from previous quality improvement

initiatives include:

- A clear focus on achieving measurable and quantifiable financial

returns from any Six Sigma project.

- An increased emphasis on strong and passionate management

leadership and support.

- A clear commitment to making decisions on the basis of verifiable

data and statistical methods, rather than assumptions and guesswork.

The term "six sigma" comes from statistics and is used in statistical quality

control, which evaluates process capability. Originally, it referred to the ability of

manufacturing processes to produce a very high proportion of output within

specification. Processes that operate with "six sigma quality" over the short term

are assumed to produce long-term defect levels below 3.4 defects per million

opportunities (DPMO). Six Sigma's implicit goal is to improve all processes, but

not to the 3.4 DPMO level necessarily. Organizations need to determine an

appropriate sigma level for each of their most important processes and strive to


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achieve these. As a result of this goal, it is incumbent on management of the

organisation to prioritize areas of improvement.

"Six Sigma" was registered June 11, 1991 as U.S. Service Mark

74,026,418. In 2005 Motorola attributed over US$17 billion in savings to SixSigma. Other early adopters of Six Sigma who achieved well-publicized success

include Honeywell (previously known as AlliedSignal) and General Electric,

where Jack Welch introduced the method. By the late 1990s, about two-thirds of

the Fortune 500 organizations had begun Six Sigma initiatives with the aim of

reducing costs and improving quality.

In recent years, some practitioners have combined Six Sigma ideas with

lean manufacturing to create a methodology named Lean Six Sigma. The Lean Six

Sigma methodology views lean manufacturing, which addresses process flow and

waste issues, and Six Sigma, with its focus on variation and design, as

complementary disciplines aimed at promoting "business and operational

excellence". Companies such as GE, Verizon, GENPACT, and IBM use Lean Six

Sigma to focus transformation efforts not just on efficiency but also on growth. It

serves as a foundation for innovation throughout the organization, from

manufacturing and software development to sales and service delivery functions.

The International Organisation for Standards (ISO) has published ISO

13053:2011 defining the six sigma process.

1.3 Methodologies

Six Sigma projects follow two project methodologies inspired by Deming's

Plan-Do-Check-Act Cycle. These methodologies, composed of five phases each,

bear the acronyms DMAIC and DMADV.

1) DMAIC is used for projects aimed at improving an existing business

process.

2) DMADV is used for projects aimed at creating new product or process

designs.

The DMAIC project methodology has five phases:


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- Define the system, the voice of the customer and their requirements,

and the project goals, specifically.

- Measure key aspects of the current process and collect relevant data.

-

Analyze the data to investigate and verify cause-and-effectrelationships. Determine what the relationships are, and attempt to ensure that all

factors have been considered. Seek out root cause of the defect under investigation.

- Improve or optimize the current process based upon data analysis

using techniques such as design of experiments, poka yoke or mistake proofing,

and standard work to create a new, future state process. Set up pilot runs to

establish process capability.

- Control the future state process to ensure that any deviations from

target are corrected before they result in defects. Implement control systems such

as statistical process control, production boards, visual workplaces, and

continuously monitor the process.

Some organizations add a Recognize step at the beginning, which is to

recognize the right problem to work on, thus yielding an RDMAIC methodology.

The DMADV project methodology, known as DFSS ("Design For Six

Sigma"), features five phases:

- Define design goals that are consistent with customer demands and the

enterprise strategy.

- Measure and identify CTQs (characteristics that are Critical To

Quality), product capabilities, production process capability, and risks.

-Analyze to develop and design alternatives

- Design an improved alternative, best suited per analysis in the

previous step

- Verify the design, set up pilot runs, implement the production process

and hand it over to the process owner(s).

Quality management tools and methods used in Six Sigma


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Within the individual phases of a DMAIC or DMADV project, Six Sigma

utilizes many established quality-management tools that are also used outside Six

Sigma. The following table shows an overview of the main methods used.

-

5 Whys- Analysis of variance /

ANOVA Gauge R&R /Regression

- Axiomatic design

- Business Process

Mapping

- Cause & effects diagram

(also known as fishbone or Ishikawa

diagram)

- Check sheet

- Chi-squared test of

independence and fits

- Control chart

- Control plan (also known

as a swimlane map)

- Correlation

- Cost-benefit analysis

- CTQ tree

- Design of experiments

-General linear model

- Histograms

- Pareto analysis

- Pareto chart

- Pick chart

-

Process capability- Project charter

- Quality Function

Deployment (QFD)

- Quantitative marketing

research through use of Enterprise

Feedback Management (EFM)

systems

- Rolled throughput yield

- Root cause analysis

- Run charts

- Scatter diagram

- SIPOC analysis

(Suppliers, Inputs, Process, Outputs,

Customers)

- COPIS analysis

(Customer centric version/perspective

of SIPOC)

- Stratification

-Taguchi methods

- Taguchi Loss Function

- TRIZ

- Value stream mapping

1.4 Implementation roles

One key innovation of Six Sigma involves the absolute "professionalizing"

of quality management functions. Prior to Six Sigma, quality management in


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practice was largely relegated to the production floor and to statisticians in a

separate quality department. Formal Six Sigma programs adopt a kind of elite

ranking terminology (similar to some martial arts systems, like Kung-Fu and Judo)

to define a hierarchy (and special career path) that kicks across all businessfunctions and levels.

Six Sigma identifies several key roles for its successful implementation.

- Executive Leadership includes the CEO and other members of top

management. They are responsible for setting up a vision for Six Sigma

implementation. They also empower the other role holders with the freedom and

resources to explore new ideas for breakthrough improvements.

- Champions take responsibility for Six Sigma implementation across

the organization in an integrated manner. The Executive Leadership draws them

from upper management. Champions also act as mentors to Black Belts.

- Master Black Belts, identified by champions, act as in-house coaches

on Six Sigma. They devote 100% of their time to Six Sigma. They assist

champions and guide Black Belts and Green Belts. Apart from statistical tasks,

they spend their time on ensuring consistent application of Six Sigma across

various functions and departments.

- Black Belts operate under Master Black Belts to apply Six Sigma

methodology to specific projects. They devote 100% of their valued time to Six

Sigma. They primarily focus on Six Sigma project execution and special leadership

with special tasks, whereas Champions and Master Black Belts focus on

identifying projects/functions for Six Sigma.

- Green Belts are the employees who take up Six Sigma implementation

along with their other job responsibilities, operating under the guidance of Black

Belts.

Some organizations use additional belt colours, such as Yellow Belts, for

employees that have basic training in Six Sigma tools and generally participate in

projects and "White belts" for those locally trained in the concepts but do not


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participate in the project team. "Orange belts" are also mentioned to be used for

special cases.

1.5 Origin and meaning of the term "six sigma process"

The term "six sigma process" comes from the notion that if one has sixstandard deviations between the process mean and the nearest specification limit,

as shown in the graph, practically no items will fail to meet specifications. This is

based on the calculation method employed in process capability studies.

Capability studies measure the number of standard deviations between the

process mean and the nearest specification limit in sigma units, represented by the

Greek letter (sigma). As process standard deviation goesup, or the mean of the

process moves away from the center of the tolerance, fewer standard deviations

will fit between the mean and the nearest specification limit, decreasing the sigma

number and increasing the likelihood of items outside specification.

Picture 1.2 Graph of the normal distribution

Graph of the normal distribution, which underlies the statistical

assumptions of the Six Sigma model. The Greek letter (sigma) marks the

distance on the horizontal axis between the mean, , and the curve's inflection

point. The greater this distance, the greater is the spread of values encountered. For

the green curve shown above, = 0 and = 1. The upper and lower specification

limits (USL and LSL, respectively) are at a distance of 6 from the mean. Because

of the properties of the normal distribution, values lying that far away from the

mean are extremely unlikely. Even if the mean were to move right or left by 1.5


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at some point in the future (1.5 sigma shift, coloured red and blue), there is still a

good safety cushion. This is why Six Sigma aims to have processes where the

mean is at most 6 away from the nearest specification limit.

1.6 Role of the 1,5 sigma shiftExperience has shown that processes usually do not perform as well in the

long term as they do in the short term. As a result, the number of sigmas that will

fit between the process mean and the nearest specification limit may well drop over

time, compared to an initial short-term study. To account for this real-life increase

in process variation over time, an empirically-based 1.5 sigma shift is introduced

into the calculation. According to this idea, a process that fits 6 sigma between the

process mean and the nearest specification limit in a short-term study will in the

long term fit only 4.5 sigma either because the process mean will move over

time, or because the long-term standard deviation of the process will be greater

than that observed in the short term, or both.

Hence the widely accepted definition of a six sigma process is a process

that produces 3.4 defective parts per million opportunities (DPMO). This is based

on the fact that a process that is normally distributed will have 3.4 parts per million

beyond a point that is 4.5 standard deviations above or below the mean (one-sided

capability study). So the 3.4 DPMO of a six sigma process in fact corresponds to

4.5 sigma, namely 6 sigma minus the 1.5-sigma shift introduced to account for

long-term variation. This allows for the fact that special causes may result in a

deterioration in process performance over time, and is designed to prevent

underestimation of the defect levels likely to be encountered in real-life operation.

The role of the sigma shift is mainly academic. The purpose of six sigma is

to generate organizational performance improvement. It is up to the organization to

determine, based on customer expectations, what the appropriate sigma level of a

process is. The purpose of the sigma value is as a comparative figure to determine

whether a process is improving, deteriorating, stagnant or non-competitive with

others in the same business. Six sigma (3.4 DPMO) is not the goal of all processes.

Sigma levels


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The table below gives long-term DPMO values corresponding to

various short-term sigma levels.

Sigma

level

Sigma (with

1.5 shift)

DPMOPercent

defective

Percentage

yield

Short-

term Cpk

Long-

term Cpk

1 -0.5 691,462 69% 31% 0.33 0.17

2 0.5 308,538 31% 69% 0.67 0.17

3 1.5 66,807 6.7% 93.3% 1.00 0.5

4 2.5 6,210 0.62% 99.38% 1.33 0.83

5 3.5 233 .023% 99.977% 1.67 1.17

6 4.5 3.4 0.00034% 99.99966% 2.00 1.5

7 5.5 0.019 0.0000019% 99.9999981% 2.33 1.83

Table 1.1 Long-term DPMO

It must be understood that these figures assume that the process mean will

shift by 1.5 sigma toward the side with the critical specification limit. In other

words, they assume that after the initial study determining the short-term sigma

level, the long-term Cpk value will turn out to be 0.5 less than the short-term Cpk

value. So, for example, the DPMO figure given for 1 sigma assumes that the long-

term process mean will be 0.5 sigma beyond the specification limit (Cpk = 0.17),

rather than 1 sigma within it, as it was in the short-term study (Cpk = 0.33). Note

that the defect percentages indicate only defects exceeding the specification limit

to which the process mean is nearest. Defects beyond the far specification limit are

not included in the percentages.

A control chart depicting a process that experienced a 1.5 sigma drift in

the process mean toward the upper specification limit starting at midnight. Control

charts are used to maintain 6 sigma quality by signaling when quality professionals

should investigate a process to find and eliminate special-cause variation.


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Picture 1.3 Control chart

1.7 Criticism

1.7.1 Lack of originality

Noted quality expert Joseph M. Juran has described Six Sigma as "a basic

version of quality improvement", stating that "there is nothing new there. It

includes what we used to call facilitators. They've adopted more flamboyant terms,

like belts with different colors. I think that concept has merit to set apart, to create

specialists who can be very helpful. Again, that's not a new idea. The American

Society for Quality long ago established certificates, such as for reliability

engineers."

1.7.2 Role of consultants


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The use of "Black Belts" as itinerant change agents has (controversially)

fostered an industry of training and certification. Critics argue there is overselling

of Six Sigma by too great a number of consulting firms, many of which claim

expertise in Six Sigma when they have only a rudimentary understanding of thetools and techniques involved, or the markets or industries in which they are

acting.

1.7.3 Potential negative effects

A Fortune article stated that "of 58 large companies that have announced

Six Sigma programs, 91 percent have trailed the S&P 500 since". The statement

was attributed to "an analysis by Charles Holland needed of consulting firm

Qualpro (which espouses a competing quality-improvement process)". The

summary of the article is that Six Sigma is effective at what it is intended to do, but

that it is "narrowly designed to fix an existing process" and does not help in

"coming up with new products or disruptive technologies." Advocates of Six

Sigma have argued that many of these claims are in error or ill-informed.

1.7.4 Lack of systematic documentation

One criticism voiced by Yasar Jarrar and Andy Neely from the Cranfield

School of Management's Centre for Business Performance is that while Six Sigma

is a powerful approach, it can also unduly dominate an organization's culture; and

they add that much of the Six Sigma literature lacks academic rigor:

Probably more to the Six Sigma literature than concepts, relates to the

evidence for Six Sigmas success. So far, documented case studies using the Six

Sigma methods are presented as the strongest evidence for its success. However,

looking at these documented cases, and apart from a few that are detailed from the

experience of leading organizations like GE and Motorola, most cases are not

documented in a systemic or academic manner. In fact, the majority are case

studies illustrated on websites, and are, at best, sketchy. They provide no mention

of any specific Six Sigma methods that were used to resolve the problems. It has

been argued that by relying on the Six Sigma criteria, management is lulled into

the idea that something is being done about quality, whereas any resulting


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improvements using this set of tools and techniques. The infrastructure described

as necessary to support Six Sigma is a result of the size of the organization rather

than a requirement of Six Sigma itself.


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2 PRACTICAL PART

2.1 Description of Pringles

Picture 2.1 Logo

Pringles is a brand of potato- and wheat-based stackable snack chips owned

by the Kellogg Company.

Originally marketed as "Pringles Newfangled Potato Chips", Pringles are

sold in more than 140 countries, and have yearly sales of more than US$1.4 billion.

They were originally developed by Procter & Gamble (P&G), who first

sold the product in 1967. P&G sold the brand to Kellogg in 2012.

2.1.1 History

Pringles were first sold in the United States in October 1967, and

distributed internationally by 1975. P&G wanted to create a perfect chip to address

consumer complaints about broken, greasy, and stale chips, as well as air in the

bags. The task was assigned to chemist Fredric Baur, who, from 1956 to 1958,

created Pringles saddle shape from fried dough, and the can to go with it. Baur

could not figure out how to make the chips taste good, though, and he eventually

was pulled off the Pringles job to work on another brand. In the mid-1960s,

another P&G researcher, Alexander Liepa of Montgomery, Ohio, restarted Baurs


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work, and set out to improve on the Pringles taste, which he succeeded in doing.

While Baur was the true inventor of the Pringles chip, according to the patent,

Liepa was the inventor of Pringles. Gene Wolfe, a mechanical engineer-author

known for science fiction and fantasy novels, developed the machine that cooksthem. Their consistent saddle shape is mathematically known as a hyperbolic

paraboloid. Their design is reportedly aided by supercomputers to ensure safe

aerodynamics while packaging.

There are several theories behind the origin of the name "Pringles". One

theory refers to Mark Pringle, who filed a US Patent 2,286,644 titled "Method and

Apparatus for Processing Potatoes" on March 5, 1937. Pringle's work was cited by

Procter & Gamble (P&G) in filing their own patent for improving the taste of

dehydrated processed potatoes. Another theory suggested two Procter advertising

employees lived on Pringle Drive in Finneytown (north of Cincinnati, Ohio), and

the name paired well with potato. Another reference says that P&G chose the

Pringles name from a Cincinnati telephone book.

They were originally known as "Pringles Newfangled Potato Chips", but

other snack manufacturers objected, saying Pringles failed to meet the definition of

a potato "chip". The US Food and Drug Administration weighed in on the matter,

and in 1975, they ruled Pringles could only use the word "chip" in their product

name within the following phrase: "potato chips made from dried potatoes". Faced

with such an unpalatable appellation, Pringles eventually opted to rename their

product potato "crisps" instead of chips. This later led to other issues in the United

Kingdom, where the term potato "crisps" refers to the product Americans call

potato "chips".

In April 2011, P&G agreed to the $2.35 billion sale of the brand to

Diamond Foods of California, a deal which would have more than tripled the size

of Diamond's snack business. However, the deal fell through in February 2012

after a year-long delay due to issues over Diamond's accounts. On May 31, 2012,

Kellogg Company officially acquired Pringles for $2.695 billion as part of a plan


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to grow its international snacks business. The acquisition of Pringles makes

Kellogg the second-largest savory snacks company in the world.

Pringles are manufactured in factories in Jackson, Tennessee; Mechelen,

Belgium; Johor, Malaysia; and Fujian, China.

Picture 2.2 Pringles share of the market

2.1.2 Ingredients

Pringles have only about 42% potato content, the remainder being wheat

starch and flours (potato, corn, and rice) mixed with vegetable oils, an emulsifier,

salt, and seasoning. Other ingredients can include sweeteners like maltodextrin and

dextrose, monosodium glutamate (MSG), disodium inosinate, disodium guanylate,

sodium caseinate, modified food starch, monoglyceride and diglyceride, autolyzed

yeast extract, natural and artificial flavors, malted barley flour, wheat bran, dried

black beans, sour cream, cheddar cheese, etc.; Pringles varieties vary in their

ingredients. Contrary to a popular misconception, Pringles chips are fried, not

baked.


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In July 2008 in the London High Court, P&G lawyers successfully argued

that Pringles were not crisps (even though it said "Potato Crisps" on the container)

as the potato content was only 42% and their shape, P&G stated, "is not found in

nature". This ruling, against a United Kingdom VAT and Duties Tribunal decisionto the contrary, exempted Pringles from the then 17.5% VAT for potato crisps and

potato-derived snacks. In May 2009, the Court of Appeal reversed the earlier

decision. A spokesman for P&G stated it had been paying the VAT proactively and

owed no back taxes.

Table 2.1 Description of the product

Description of product Indicators which can be

measured

Quantitative index(g)

Carbs Cm(H2O)n 57.97

Fiber (C6H10O5)n 10.9

Sugar C6H12O6 9.75

Protein NH2CHRCOOH 4.13

Total fat H3C 24.23

Sodium Na 246

2.2 Description of innovation

Pringles is famous because of its taste, variety of flavors, so that everyone

can find a personal favorite. But mostly Pringles is famous because its packaging.

The innovation is new convenient and eco-friendly tube for stackable

chips. As we know Pringes tube is quite narrow, so when you ate half of the tube,

its not convenient to get the rest of the chips. Purpose is to make the process of

enjoying chips even more enjoyable.

Picture 2.3 Pringles inconvenience
http://en.wikipedia.org/wiki/Carbonhttp://en.wikipedia.org/wiki/Hydrogenhttp://en.wikipedia.org/wiki/Hydrogenhttp://en.wikipedia.org/wiki/Hydrogenhttp://en.wikipedia.org/wiki/Oxygenhttp://en.wikipedia.org/wiki/Oxygenhttp://en.wikipedia.org/wiki/Oxygenhttp://en.wikipedia.org/wiki/Hydrogenhttp://en.wikipedia.org/wiki/Carbon


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2.3 Analysis of main consumers

Chart 2.1 Analysis of consumers by age

Children up to 13 consume only 2%. Up to 15 11%.Young people up to

17 consume 25%, up to 1941%. Adults (21 years old) consume 18%

As we can see Pringles target audience are people between 17 and 21.

Chart 2.2 Analysis of consumers by gender

According to survey, people who bought Pringles only 1 time 6%.

Amount of people who buy Pringles often 13%. Amount of people who never

bought Pringles 20%. And percent of people who buy Pringles sometimes

61%.

2%

11%

25%

41%

18%

3%

By age

13 years

15 years

17 years

19 years

21 years

>21 years

59%

41%

By gender

Woman

Man


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Chart 2.3 Analysis of consumers by frequency of purchase

Brand of Pringles chips gained a place in the minds of its major consumers,

ie youth. Pringles is one of the most consumed and popular snacks because of the

pleasant taste, convenience, packaging, etc.

2.4 Analysis of main competitors

National

Picture 2.4 Top 10 brands


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Our advantages:

- Big amount of chips;

-

Satiety;- Abundance of advertising;

- Packaging;

- Quality;

- Taste;

- Diversity of flavors.

According to the survey, we can see what is more necessary to our

consumers, and what is less necessary.

As we can see, Pringles main advantage is packaging.

Chart 2.4 Main advantages

Big amount of chips Satiety

Abundance of advertising Packaging

Quality Taste

Diversity of flavors


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3. Mixing step

The continuous mixing of the dry ingredients with water has been preferred

from the very beginning as the possible alternative to batch mixing. The main

reason for this preference was the evidence of instability in the process when themixed dough was held for different times before being sheeted.

Picture 3.3 Sheeting

4.Sheeting step

The sheeting step have been revised at the initial stage of the development

and, from the results of the pilot plant experiments, Pavan had the confirmation

that a multiple reduction system was narrowing the possibilities of getting a

controlled surface and texture of the product.

Picture 3.4 Cutting


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5.Cutting and rework handling

The rotary cutters derived from the biscuit technology has become a

standard in reformed potato chips production both wet fried or pellets type. In the

case of stackable potato chips, the most important issue is the regularity of the

cutting and the absence of movement of the cut chips. Each product must stay in its

position on the transporting belt in order to be fed in the continuous fryer exactly

aligned with the fryer moulds that will give the classical curved shape to the chip.

The scrap resulting from the cutting ranges between 40 and 45% of the sheet

surface and must be reintroduced in the dough to be sheeted and reused.6. Frying and moulding:

The frying time for stackable potato chips - as many other potato based wet

fried products with similar 0.60.7 mm thickness - is ranging between 15 and 20

seconds with an oil temperature of 185 C.

The turn over of the oil in the type of fryer used for stackable potato chips is

generally around 8 hours. Being the typical characteristics of this product its longshelf life, the oil quality and management must be at the highest possible standards.

7.Seasoning device:

The variety of seasonings necessary to cover the market request led to the

need of different seasoning units designed around the seasoning characteristics.

Picture 3.5 Seasoning


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8.Portioning and Packaging:

The importance of this section is clear when comparing the shelf attraction

of a can or a nice carton box with a tray in it against the common form/seal bags.

Picture 3.6 Shipping

Picture 3.7 Stackable chip machine


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3.2 Amount of workers and time

There are over 1,200 workers working in shifts in the one facility as a

whole. Pringles production line is automatic, so the number of operators required

in the production is a minimum.This machine can make the potato powder to eatable Pringles. The whole

line is highly automatic, only 8 - 10 workers is needed to operate. To make one

tube of stackable chips, machine need 20 minutes. There can be more than 100 kg

of Pringles at the end of the day

3.3 Description of equipment

Table 3.2 Quick Details

Condition: New

Model Number: ALSC-250

Power(W): 120KW

Certification: BV,ISO9001

Product Name: Stackable Pringles Chips Production

Line

Engine: Electricity

Capacity: 250kg/h

Place of Origin: Henan China (Mainland)

Application: Chips

Weight: According to the capacity

Warranty: 1 year

Material: Stainless Steel

Type: fully automatic

Usage: Stackable Potato Chip

Brand Name: ALLANCE

Voltage: 220V/380V

Dimension(L*W*H): different dimension for


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4 PRODUCTION PLAN OF PRODUCT WITH INNOVATION

4.1 Plan of the works

Table 4.1 Plan of the works

Name Name of operation Duration

IP

1 A Budgeting 3 -

2 B Design 7 A

3 C Bespeak materials 1 A

4 D Presentation of the new

design

1 B

5 E Implementation of new

design

12 D

6 F Convention with the

technical department

2 C,E

7 G Regulation of the equipment 5 F

8 H Delivery materials 10 C

9 I Locate materials in

warehouses

1 H

10 J Testing of the equipment 2 G,I

11 K Standardization 2 J

12 L Launching 1 K


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4.2 Critical path

LABDEFGJKL = 3+7+1+12+2+5+2+2+1=35

LACFGJKL = 3+1+2+5+2+2+1=16

LACHIJKL = 3+1+10+1+2+2+1=204.3 Calculation of the network graph indicators

Table 4.2 Calculation of the network graph indicators

IP Code Time Tes Tef Tls Tlf Slack

- 0-1 3 0 3 0 3 0

1 1-2 7 3 10 3 10 0

1 1-3 1 3 4 18 19 15

1 2-4 1 10 11 10 11 0

1 3-6 0 4 4 23 23 19

1 3-9 10 4 14 19 29 15

1 4-5 12 11 23 11 23 0

1 5-6 0 23 23 23 23 0

2 6-7 2 23 25 23 25 0

1 7-8 5 25 30 25 30 0

1 8-11 0 30 30 30 30 0

1 9-10 1 14 15 29 30 15

1 10-11 0 15 15 30 30 15

2 11-12 2 30 32 30 32 0

1 12-13 2 32 34 32 34 0

1 13-14 1 34 35 34 35 0

According to the nalysis of the network graph indicators calculation

showed, that to implement new product with innovation to the company its needed

35 days. There is also slack time on few positions.


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6 THE NEW DESIGN

New design consists of new convenient tube, which you can abate with a

twist, and the new eco-friendly biodegradable packaging.

In general Pringles tube is made out of plain brown paper and foil -backedpaper. The idea is to substitute plain brown paper with natural resources including

sugarcane waste fibre, corn starch, wood cellulose and recycled unbleached paper.

And also substitute plastic lid.Conventional plastic is made from oil. Oil can take

up to 300 million years to form.

Thus, the idea is to design of new tube and to decrease the amount of

harmful components.Not only can switching to biodegradable packaging help to distinguish our

product, it can also increase brand recognition and build loyalty with the increasing

number of environmentally aware consumers.

This is how it will look like without a cover.

Table 6.1 New tube without cover


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6 MAIN TECHNICAL AND ECONOMIC IN|DICATORS OF

PERFORMANCE

For analyzing the economic situation in the company after implementation

of innovation, first its needed to calculate Liquidity coefficient. The degree to

which an asset or security can be bought or sold in the market without affecting the

asset's price.

Table 6.1 Financial performance

Year 2011 2012

Non-current assets

(Dollars in millions)

357.4 326.7

Current assets

(Dollars in

millions)

223.3 361.8

Total assets: 580.7 688.5

Total current

liabilities

177.8 192.1

Kl = current assets/ current liabilities

Kl2011 = 223.3/177.8=1.256

Kl2012 = 361.8/192.1=1.893

KL=Kl2012/Kl2011=1.893/1.256=1.507

Current ratio increased during the year by 50.7%.According to calculations, we can see that liquidity coefficient increases on

50.7%, thus project is beneficial to accept.

Second, we will calculate Payback period.

The payback period is calculated by counting the number of years it will

take to recover the cash invested in a project.

Pringles invests $400,000 in more efficient equipment. The cash savings from the

new equipment is expected to be $100,000 per year for 10 years.


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The payback period is 4 years ($400,000 divided by $100,000 per year).

This is not a long period for a payback, so this project is remunerative.


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7 CONCLUSION

In the first theoretical part of a course project we became familiar with the

concept of Six Sigma. It was sad that Six Sigma is a set of techniques, and tools for

process improvement. It was developed by Motorola in 1986, coinciding with theJapanese asset price bubble which is reflected in its terminology.

We also acquainted with Six Sigma doctrine, methodologies, its

implementation roles, origin and meaning of the term "six sigma process", levels,

criticism and application.

In the second part of a project I scrutinized the production process of

Pringles US chips one of the most popular snack in the world. I also created andembed the new design, which is new convenient tube, which you can abate with a

twist, and the new eco-friendly biodegradable packaging.

In general Pringles tube is made out ofplain brown paper and foil-backed

paper. The idea is to substitute plain brown paper with natural resources including

sugarcane waste fibre, corn starch, wood cellulose and recycled unbleached paper.

For analyzing the economic situation I have calculated some main technical

and economic indicators of performance such as liquidity coefficient and payback

period.

According to calculations we can see that liquidity coefficient increases on

50.7%, thus project is beneficial to accept. And the payback period is 4 years,

which is quite short period.


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8 LIST OF REFERENCES

- http://en.wikipedia.org/wiki/Six_Sigma

- http://en.wikipedia.org/wiki/Pringles

-

http://caloriecount.about.com/tag/food/pringles- http://www.youtube.com/watch?v=V83rdbSpiGA

- http://www.pringles.co.uk/home

- http://www.kelloggs.com/en_US/our-brands.html

- http://www.annualreport2012.kelloggcompany.com/highlights.htm

- http://shhengguang.en.alibaba.com/product/599349293-

219234316/Automatic_pringles_potato_chips_production_line.html- http://www.getfilings.com/sec-filings/120215/KELLOGG-CO_8-

K/d300946dex992.htm

Documents

Course Project Pringles