How PepsiCo makes the perfect Cheetos with the help of Autonomous AI
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Summary

Manufacture the perfect Cheetos

PepsiCo is a leading food and beverage manufacturer, and Cheetos are one of their most famous snacks. But how can PepsiCo continue to ensure they manufacture the perfect Cheetos every time?

Fractal worked with the Microsoft AI engineering team and the Cheetos manufacturing experts to build, train, and deploy an Autonomous AI agent leveraging the Azure Machine Learning platform.

This solution helps PepsiCo ensure the perfect Cheetos snack comes out each time.

Challenge

Optimize production yield

Optimizing production yield while ensuring quality is always a complex challenge. It is no different when it comes to manufacturing an irresistible snack like the Cheetos.

Cheetos production process overview

From ingredient characteristics to equipment behavior, it takes significant effort for operators and automated control systems alike to ensure consistent quality.

Changes in raw materials and plant environment can affect the process.

Although they are the same make and model, extruders across manufacturing lines will also have minor differences within their manufacturer’s tolerance range.

Finally, like any mechanical equipment, each extruder is different and extruder behavior can change over time. To help with these aspects, PepsiCo was looking for a solution that would both ensure consistent quality and minimize waste.

Solution

Developing an AI simulator

To optimize the production yield, Fractal worked closely with PepsiCo’s manufacturing team, from process experts to operators, and the Microsoft AI engineering team to design, train, and deploy a Production Yield Optimization autonomous AI agent.

This agent helps operators optimize the yield of the Cheetos extrusion process.

AI simulator controlling process

The first step to training the AI agent using the trial-and-error approach of Deep Reinforcement Learning (DRL) was to develop an accurate process simulator.

Because of the process complexity, Fractal’s AI experts developed an AI simulator using a Deep Neural Network architecture.

This custom-built process simulator was itself trained using real-life process data recorded during regular Cheetos production runs.

Using this simulator and PepsiCo’s process experts and operators, the DRL’s so-called “reward function” was defined using the concepts of Machine Teaching and after a series of tests to optimize the solution’s appropriate components from process inputs and outputs to reward function parameters.

How PepsiCo makes the perfect Cheetos with the help of Autonomous AI How PepsiCo makes the perfect Cheetos with the help of Autonomous AI

Results

Improved system performance

Once deployed, the AI agent makes real-time adjustments to the extruder which helps maintain the product within specifications consistently.

How PepsiCo makes the perfect Cheetos with the help of Autonomous AI

As the output quality is now measured continuously using a product attribute measurement system developed by PepsiCo’s engineers, it now enables quality assurance without interrupting or even disturbing production.

Altogether, this solution improved the overall system performance by optimizing it for both efficiency and quality.



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Paint and coating company

Challenge

A global leader in paints and performance coatings, with a presence in over 150 countries, aimed to maintain its strategic advantage and stay ahead of competition from both local and global players.  

The company had a SaaS platform that curated market trends and competitor information from diverse sources like news, websites, and reports. However, this process required substantial efforts from the market intelligence team to stage the data and fetch information from different business units for strategic decision-making. Overwhelmed with requests from more than 1,200 users in different languages, the team struggled to provide strategic insights promptly.  

Due to slow response time and lack of engagement caused by outdated search functionalities, the corporate strategy team recognized the imperative to adopt generative AI. This strategic move was aimed at automating content curation, refining the search experience, and proactively delivering precise insights to users throughout the organization. 

Solution

Recognizing the critical need to enhance the client’s market intelligence capabilities, Fractal deployed its GenAI-powered Knowledge Assist solution that leverages Azure OpenAI Service. The solution automated the ingestion of diverse articles on market trends and competition, streamlining topic modeling and tagging.  

Its human-like Q&A chat interface allowed the market intelligence team to retrieve contextual information swiftly and answer domain-specific questions across different user personas.   

Some key features of Knowledge Assist include: 

  • Auto-summarization of articles 
  • Relevant excerpts surfacing through citations 
  • Multi-lingual support 
  • Understanding acronyms  
  • Incorporating user feedback for continuous improvement 
  • Preventing hallucinations with rigorous checks 

The solution offers an intuitive UI that helps configure responses to align with specific business needs. It also demonstrated the capability to quickly surface insights suggest related questions, and tag topics automatically using large language models (LLMs). 

Results

Following the deployment of Fractal’s Knowledge Assist, the company experienced a notable improvement in its market intelligence operations. The response time for delivering market intelligence was cut in half, while maintaining an 85% accuracy rate

This led to a significant increase in user satisfaction, with an average score of 94%. The financial impact was equally impressive, with the company projecting annual savings of $3 million.  

Additionally, the solution’s adoption rate reached 10%, indicating its effectiveness in disseminating knowledge throughout the company. This initiative also set the stage for introducing AI solutions in other departments, such as R&D and Procurement, further strengthening the company’s competitive strategies. 

Run systematic remodeling experiments to optimize retail store sales

The Big Picture

A store remodeling exercise is a significant investment, sometimes ranging into millions of dollars. Additionally, at times, store operations need to be put on hold for a few days, which further impacts store sales and revenue. A top 10 specialty retailer wanted to remodel 27 stores, by taking a measured approach to remodeling based on incremental benefits. However, measuring the impact of remodeling was subject to misinterpretation due to factors such as seasonality and difficulty in identifying a control group.

Transformative Solution

The retailer used Fractal’s Trial Run product to run systematic experimentation on individual store enhancements. Each of the 27 stores had different test levers. Trial Run proprietary algorithms were applied to simulate a control group for each of the tests, after first assembling granular data for all the stores in the US. Statistical techniques were applied to quantify a significant lift in sales, with an interactive visual capability to diagnose for drivers of incremental sales.

The Change

As a result of the engagement, 22 of the company’s stores generated a positive lift, with a few experiencing a lift of more than 15% in sales. In addition, break-even for large stores (i.e., those with sales greater than $10 million) was expected within 2.5 years, whereas break-even for small stores (i.e., those with sales less than $5 million) was expected in 5-7 years. Based on the results, the retailer decided to prioritize remodeling for large stores.

Use AI to enhance customer experience and drive digital sales

The Big Picture

For most legacy brick-and-clicks that sell mid to high complexity products, conversions on digital continue to remain sluggish, and businesses face a high degree of customer drop-off, cart abandonment, as well as confused and irrelevant customer conversations. The impediments to digital sales can be very unique for each visitor, such as insufficient product information, in-store pick-up issues, improper search results, price shock, poor product recommendations, and more.

Since most large businesses cannot recreate the digital experience from scratch, they need to adopt a rapid mode of continuous improvement. That means identifying what went wrong in the sales experience, what were the causes, and how the various improvement options can be tested.

Transformative Solution

For a leading retailer, Fractal deployed an advanced AI-based framework to create features from every digital interaction down to minute click-events and identified high-impact causative issues that negatively impacted the customer sales journey.

The Change

As a result of the engagement, the retailer gained more than a 25% increase in digital sales, by removing the impediments in the customer purchase journey.