Nestle Water Leading Expert of Bottled Water

GROUP MEMBERS

Salma Bashir 126

Sana Khalid 127

Nasiba Waris 139

Sobia Akhlaq 1548

Sameera Dar 1542

Kiran Zahra 1550

Introducton andPlant Layout

By Sameera Dar- 1542By Sameera Dar- 1542

Nestle Pure Nestle Pure LifeLife

“Nestlé” is a Swiss-German word which means “Little Nest” which is its trademark

Nestlé is the worlds’ number one food company

5th largest company of the world according to its turn over

2 million 31 thousand people employed from all over the world

Present in 81 countries of the globe having 522 factories

Over 700 products renovated or innovated in the past five years, with wellness in mind

INTRODUCTIONINTRODUCTION

KEY DATES 1866 COMPANY KEY DATES 1866 COMPANY FOUNDATIONFOUNDATION

Major joint ventures 1981 Galderma

1905 Merger between Nestlé and Anglo-Swiss Condensed Milk Company

1929 Merger with Peter, Cailler, Kohler Chocolates Suisses S.A. 1947 Merger with Alimentana S.A. (Maggi)

1969 Vittel (equity interest)

1971 Merger with Ursina-Franck

1974 L'Oreal (equity interest)

1977 Acquisition of Alcon (2002: partial IPO)

1985 Acquisition of Carnation

1988 Acquisition of Buitoni-Perugina

1988 Acquisition of Rowntree

1990 Cereal Partners Worldwide

1991 Beverage Partners Worldwide (formerly CCNR)

1992 Acquisition of Perrier

1998 Acquisitions of San Pellegrino and Spillers Pet foods

2000 Acquisition of Power Bar 2001 Acquisition of Ralston Purina

2002 Acquisition of Schöller and Chef America 2002 Dairy Partners Americas and Laboratories innéov

2003 Acquisition of Mövenpick, Powwow and Dreyer's

2004 Acquisition of Valio (ice cream activities) 2005 Acquisition of Wagner, Protéika, Musashi

MISSION STATEMENTMISSION STATEMENT

"Nestlé is the largest food company in the world. But, more important to them is to be the world's leading food company”.

Nestlé MilkPak Limited (NML) was incorporated in Pakistan under the Companies Ordinance, 1984 & listed on Karachi and Lahore stock exchanges since 1980.

Joint venture between Nestle Switzerland and MilkPak Limited came about in 1988.

Nestlé Pure Life was launched in Pakistan in 1998

REGIONAL SALES OFFICESREGIONAL SALES OFFICES

Nestle has 10 Regional Sales Offices in all over the Pakistan.:

Karachi F - 77/1, Block 7,Clifton, KDA Scheme 5,Karachi, Sind, Pakistan Phone: (021) 5833935-6 Fax: (021) 5833937

Hyderabad 178, Block C, Unit 2Latifabad, Hyderabad, Sind, Pakistan Phone: (0221) 860403Fax: (0221) 863202

Sukkur F - 33/5 - CWorkshop RoadSukkur, Sind, Pakistan.Phone: (071) 615946Fax: (071) 615946

Lahore 29-B, Main Gulberg,Lahore, Punjab, PakistanPhone: (042) 5754335-6, 5761484Fax: (042) 515061

Faisalabad House No. 24-Y-103 Madina Town,Faisalabad, Punjab, Pakistan Phone: (041)726993Fax: (041) 47438

Gujranwala Plot No: 144-A, First Floor Satellite-Town Market, Gujranwala, Punjab, Pakistan.Phone: (055) 3733415 Fax: (055) 3733415

Peshawar 201, 2nd Floor, City Tower, Jamrud Road, B Block,Peshawar, N.W.F.P., Pakistan Phone: (091) 840859, 842415Fax: (091)45516

Multan Surij Miani Road, Chungi No.1,Multan, Punjab, Pakistan Phone: (061) 515061Fax: (061) 515061

Quetta 63 B - D, Chaman Housing Scheme, Opposite Askari Park Quetta, Baluchistan, Pakistan Phone: (081) 834887Fax: (081) 822297

Islamabad 74-W, Yaseen Plaza, 1st Floor, Blue Area, Islamabad, Pakistan Phone: (051) 271874-75,824328, 824384, 274376

These offices work under their respective zonal offices

Registered & Corporate Office Is in Lahore 308 - Upper Mall, Lahore PABX: 5757082-95 Fax: 5711820

FACTORIESFACTORIES

Nestle has two factories in Pakistan for the production of different food items.

One in Sheikhupura near Lahore and other in Kabirwala near Multan

Plant layoutPlant layout

Meaning-Meaning-

Plant layout is the physical arrangement of industrial facilities. It involves the allocation of space & the arrangement of equipment in such a manner that overall operating costs are minimized.

LAYOUT OF NESTLE Pure LAYOUT OF NESTLE Pure LifeLife

NESTLÉ Pure Life is using a plant layout which

is functional in nature. Layout that can handle

varied processing requirements.

Here all machines performing similar type of

operations are grouped together at one location

in the process layout. Thus here facilities are

grouped together according to their functions.

ADVANTAGESADVANTAGES

NESTLÉ Pure Life has a plant that can handle a variety of processing requirements

Machines breakdown doesn’t result in shutdown.

less costly

Flexibility in production facilities.

Each production unit of system works independently.

High utilization of facilities available to the company.

Lower initial capital investment is needed by NESTLÉ Pure Life in machines and equipments. There is high degree of machine utilization, as a machine is not blocked for a single product.

The overhead costs for NESTLÉ Pure Life are relatively low

Breakdown of one machine does not result in complete work stoppage

Supervision can be more effective and specialized

There is a greater flexibility of scope for expansion.

There are more benefits of economies of scale.

PURCHASE POLICY

&

LABOUR SUPPLYBy Sana Khalid - 127By Sana Khalid - 127

Purchase Purchase PolicyPolicy

PurchasingPurchasing

Purchasing is the function of management

Which forms the interface between supplier and manufacturer.

It is also called supplier management, materials management or procurement.

Goals of PurchasingGoals of Purchasing

To procure as efficiently as possible. To provide continuous training and education to customers. To provide knowledgeable advice and consulting. To identify vendors who meet internal customer needs at reasonable prices. To process documentation within reasonable timeframes. To minimize disputes between internal customers and vendors. To maintain ethical business standards and full legal compliance

NESTLÉ Pure Life business objective is to manufacture and market the company products in such a way as to create value that can be sustained over the long term for shareholders, employees, customers and business partners

NESTLÉ ‘s Pure Life global vision is to be leading

health. wellness and nutrition. NESTLÉ Pure Life contributes to customer’s well being and enhance their quality

of life. NESTLÉ Pure Life has unique experience of anticipation customer’s needs and creating solutions.

Functions of PurchasingFunctions of Purchasing

To organize and administer a purchasing program for all departments and activities.

To communicate and interpret state and federal guidelines governing purchasing practice.

To train employees in the preparation of electronic requisitions and to administer this process.

To provide with expertise on obtaining goods and services of the best quality at the lowest prices.

To dispose of all obsolete, used or surplus materials, supplies and equipment.

To coordinate the selection and purchase of federal and state surplus property.

Purchasing CyclePurchasing Cycle

1.1.Recognize, describe, define the need

A.Classification Of Needs

Type Of Need

Strategic Or Operational?

Repetitive Or Non-Repetitive

Size (quantity; dollars)

Speed/Timing

B.Specification Of Need

2.Transmit the need (requisitions)

A. standard requisitions

B. traveling requisitions

3.Determine sources, investigate, and select supplier/analyze bids

4.4.Prepare and issue the PO

5.Follow-up the order (including expediting and de-expediting)

6.Receive and inspect the material

7.Clearance of the invoice and payment to supplier

8. Close the order/records

Centralized vs. Decentralized Centralized vs. Decentralized Purchasing Purchasing

Centralized PurchasingCentralized Purchasing

Means buying and managing purchases from one location for all locations within an organization. This can also be run by a central location buying in to a

distribution warehouse that feeds smaller warehouses. 

Advantages of Advantages of Centralized PurchasingCentralized Purchasing

Better budgetary and financial control of departments' expenditures.

Development of qualified personnel through specialization in purchasing.

Reduction in administrative costs through elimination of multiple purchasing staffs, records and procedures.

Benefits of competition, as a result of improved market studies and other research.

Better public relations, as a result of consistent and equitable treatment of vendors

Decentralized PurchasingDecentralized Purchasing

A decentralized organization is one in which decision making is not confined to a few top executives but rather is throughout the organization, with managers at various levels making key operating decisions relating to their sphere of responsibility.

Benefits of DecentralizationBenefits of Decentralization

Decisions are made by those who have the most knowledge about local conditions;

Greater managerial input in decision-making has a desirable motivational effect; and

Managers have more control over results.

Disadvantages of Decentralized SystemsDisadvantages of Decentralized Systems

Expansions are generally more expensive than with a centralised system, as every component must carry the necessary intelligence.

Specific components have to be installed in the system in order to execute certain functions

Decentralization is a Decentralization is a basic principle of basic principle of

NESTLÉ Pure Life.NESTLÉ Pure Life.

Purchasing - Code of Purchasing - Code of EthicsEthics

Give first consideration to the objectives and policies of institution.

Strive to obtain the maximum value for each rupee of expenditure.

Decline personal gifts or gratuities.

Grant all competitive suppliers equal consideration insofar as state or federal statute and institutional policy permit

Conduct business with potential and current suppliers in an atmosphere of good faith, devoid of intentional misrepresentation.

Demand honesty in sales representation whether offered through the medium of a verbal or written statement, an advertisement, or a sample of the product.

Receive consent of original or of proprietary ideas and designs before using them for competitive purchasing purposes.

Supplier ManagementSupplier Management Supplier Management is responsible for consolidating requirements for External services and supplies

Scanning the market for providers

Negotiating with a chosen supplier,

For the contracting and monitoring of external services and service providers.

Various Aspects of Supplier ManagementVarious Aspects of Supplier Management

Supplier Audits

Supplier Certification

Supplier Relationships

Supplier Partnership

Supplier AuditsSupplier Audits Supplier audits offer companies the means to examine their suppliers' performance and hold them accountable in key areas:

Supplier audits confirm suppliers are charging agreed-upon prices

Supplier audits verify authorized policies & procedures are consistently administered

Supplier audits measure the quality of your vendors’ products

Supplier CertificationSupplier CertificationPart of a larger strategy of Supplier Quality Management

Process of managing the relationship between your organization and its suppliers to coordinate as one in creating value for all stakeholders

A minimum requirement to be considered for work

Main goal: continuous improvement

Supplier RelationshipsSupplier Relationships

All successful companies build strong relationships with their suppliers Supplier relationships are different from simple purchasing transactions A sense of commitment to the supplier Advanced planning

Supplier PartnershipSupplier PartnershipOne of the keys to obtaining high-quality products and services is for the customer to work with suppliers in a partnering atmosphere to achieve the same quality level as attained within the organization.Customers and suppliers have the same goal—to satisfy the end user. The better the supplier’s quality, the better the supplier’s long-term position, because the customer will have better quality.

Sources of Sources of labour Supplylabour Supply

Sources of Labor SupplySources of Labor SupplyThe employment of workers require attention to sources of labor supply in order that the numbers of qualified applicants may be adequate.The sources of labor supply vary with the business, industry and the community and every business should determine for itself which sources are best.

Some Sources of Labor Supply Some Sources of Labor Supply

1.Persons Already Employed

Cumulative promotionPromotion purposeTemporary employees and permanent

2.Recommended by Present Employees

For lower jobGuarantee by present employees

3.Recommended by Former Employees

Seasonal employmentIn case of layoff

Layoff

Layoff is the temporary suspension or permanent termination of employment of an employee

Or a group of employees for business reasons, such as the decision that certain positions are no longer necessary or a business slow-down or interruption in work.

4.Unsolicited Applications

Private sector to avoid pressure Emergency needs Temporary basis

5.Educational Institution

Fresh mind person Job trainees Carrier jobs

6.Recommended by Labor Unions

Lower category Temporary appointment

7.Employment Agencies

Middle management

Middle management is a layer of management in an organization

Primary job responsibility is to monitor activities of subordinates while reporting to upper management.

Emergency requirement

8.Moving Recruitment

Representative selection (public sector)Bulk selection

9.Other Business Units

Higher managerial portExperienced personsLack of loyalty and morale

10.Advertisement and Selection

Public sectorFor high postStandardsFair competition

Methods of Selecting WorkersMethods of Selecting WorkersPreliminary interview

Application blank

Letter of application

Photograph

Employment interview

Recommendation

Personal investigation

Mental tests

special aptitude tests

Trade tests

Social interest tests

Physical examination

Preliminary Interviews

Preliminary interview is the initial greeting of the applicant by the receptionist

Together with a brief discussion of the purpose of his visit to the employment office.

Application Blank

The application blank should be filled out by the applicant,the information requested may be classified into four groups.

Some information is designed to identify the applicant, and to make it possible to communicate with him later.

Aptitude Test

A measure of a person's natural ability or potential to learn a skill or set of skills.

Abilities that are typically measured by aptitude tests include abstract, verbal, and numerical reasoning, because these give a rounded view of a person's general ability in relation to the workplace.

Recommendation

It is any quality or characteristic

That gains a person a favorable reception or acceptance or admission

Employment Interview

Employment Interview An interview to determine whether an applicant is suitable for a

position of employment

Trade Test

The trade test aims to ensure That people entering into the security industry have acquired

the basic knowledge Requirement for discharging their security duties, thus help

enhance the quality of security service

Physical Examination

It is the process by which a health care provider investigates the body of a patient for signs of disease.

Employment ProcedureEmployment ProcedureApplicationInvitation to an Interview MeetingTestStarting out in NESTLECareer Development

NESTLÉ Pure Life uses Advertisement as source of labor supply. Advertising is a form of communication that typically attempts to persuade potential customers to purchase or to consume more of a particular brand of product or service.

NESTLÉ Pure Life also uses Employment Agencies as sources of labor supply. An employment agency is a company that matches workers to open jobs. Employment agencies (also known as placement and temporary (or temp) agencies) can help us to find a job.

These agencies are usually private companies that find people to fill job postings. But, these jobs are with other companies. Their task is to find a job with another company.

Employees should not pay any money to these agencies

Employment agencies make their money by charging the company that is looking for someone, or they may take a percentage of wage from employees hen they found a suitable job

NESTLÉ Pure Life also uses Departmental Hiring as a source of labor supply.

INDUCTION &

EMPLOYEES TRAININGBy Sobia Akhlaq- 1548By Sobia Akhlaq- 1548

InductionInduction

InductionInductionInduction is a necessity for future performance of the new employee or even for existing employees who are transferred to other functional areas. This gives the candidates good grasp of functions and facilitate their future functioning efficiently. Today, new recruits are

expected to be self-starter from day one.

A good induction programmeA good induction programme

Orientation (physical) - describing where the facilities are.

Orientation (organizational) - showing how the employee fits into the team and how their role fits with the organization's strategy and goals.

Health and safety information - this is a legal requirement.

Explanation of terms and conditions.

Details of the organization's history, its products and services, its culture and values.

A clear outline of the job/role requirements.

AT NESTLE AT NESTLE The long-term success of the Company depends on its capacity to attract, retain and develop employees able to ensure its growth on a continuing basis.

New employees are given responsibility at an early stage, and high performers can develop fast.

Each new member joining Nestlé is to become a participant in developing a sustainable quality culture which implies a commitment to the organization.

special attention will be paid to the matching between a candidate’s values and the Company culture.

MANAGER OF NESTLE VISITS MANAGER OF NESTLE VISITS IBAIBA

At Nestlé we believe that it is important to give people the opportunities for life-long learning. All our employees are called upon to upgrade their skills in a fast-changing world.

. Nestlé promotes a culture of engagement and performance, and strives towards best practice. For example, we have introduced Mission Directed Teams (MDTs) in a number of our operations.

On October 15, 2008, Ms Sadia Irfan (Recruitment and

Development Manager, Nestle Pakistan) visited IBA City

Campus to meet the students graduating in December

2008. This was Ms Irfan’s second visit to IBA within

a short span of 20 days. It shows the cordiality that

exists between IBA and Nestle. During this visit Ms Irfan

also met Mr. Danishmand (Dean and Director of IBA)

and discussed areas for future cooperation.

Training &Training & Development of Development of

EmployeesEmployees

The term training refers to the acquisition

of knowledge, skills, and competencies as

a result of the teaching of vocational or

practical skills and knowledge that relate

to specific useful competencies.

What is on-the-job training?What is on-the-job training?

On-the job training is an important way in which people acquire relevant knowledge and skills at work.

learning through watching and observing someone with more experience performing a task.

Development of Training Development of Training CoursesCourses

1-Trainers course

2-Professional course for assistant supervisors

3-Professional course

4-Specialized technical courses

5-Specialized technical course

AT NESTLEAT NESTLEThe Nestlé Management and Leadership Principles include the guidelines inspiring all the Nestlé employees in their action and in their dealings with others. The Corporate Business Principles refer to all the basic principles which Nestlé endorses and subscribes to on a worldwide basis. Both these documents are the pillars on which the present policy has been built.

We offer you an attractive and dynamic working environment where you'll find constant opportunities for development: a place where you can grow, learn, and fulfill your potential to the utmost.

A shared Responsibility

Employment at Nestlé

The Corporate Business Principles outline the Company’s commitment to fully endorse and to respect a series of principles and international conventions concerning employee’s rights,

Work/Life BalanceWork/Life Balance

At Nestlé we believe that the employee’s private and professional life should

have a good balance.

It helps attracting and retaining people and reconciles economical imperatives with well being.

Professional DevelopmentProfessional DevelopmentLearning

Learning is part of the Company culture. Each employee,at all levels, is conscious of the need to upgrade continuously her/his knowledge and skills. The willingness to learn is therefore a non-negotiable condition to be employed by Nestlé. First and foremost, training is done on-the-job. Guiding and coaching is part of the responsibility of each manager and it is crucial to make each one progress in her/his position.

Assessing and DevelopingAssessing and DevelopingEach employee is in charge of her/his own

professional development.

The objective is to retain and motivate

employees by offering attractive but realistic

career moves allowing them to develop their

skills over a long-term period within the

framework of economic reality and a changing

environment.

PROMOTIONSPROMOTIONSPromotions will exclusively be based on

competence, insight, performance and potential

with the exclusion of any consideration for origin,

race, nationality, gender, religion or age.

The development of expertise in specific areas

of competence is determinant for the Company’s

success.

Role of Role of SupervisorSupervisor

Planning and Organizing

Provision of working conditions

Leadership and Guidance

Motivation

Controlling

Linking Pin

Grievance Handling

Reporting

Introducing new work methods

Enforcing Discipline

Role of supervisorRole of supervisor

Supervisor's ResponsibilitiesSupervisor's Responsibilities Job Related · Cost Control · Equipment · Goals · Materials · Plans · Procedures · Productivity · Quality · Standards · Training

People Related · Coaching · Communicating · Delegating · Disciplining · Leadership · Managing yourself · Motivating · Supervising others

Production supervisor Production supervisor A production supervisor (sometimes known as a shift manager or team leader) reports to the production manager or plant/works manager and is responsible for achieving immediate and short-term objectives laid down by the production manager; for example, output, quality, waste, yield, safety and overtime costs.

Production supervisor Production supervisor

Typically activities include: general operations; labour resourcing and absence management; general house keeping and continual

improvement activities; reallocating tasks or rescheduling production,

where necessary.

SPECIALITIES IN NESTLE SPECIALITIES IN NESTLE SUPERVISORSUPERVISOR

Assigns cases and projects to representatives; periodically confers with subordinates on handling of cases and projects

Reviews and approves requests for vacation leave and premium-time compensation; counsels employees on work rules, policies, and procedures.

OBJECTIVES OF NESTLE OBJECTIVES OF NESTLE SUPERVISORSUPERVISOR

Clarify the different roles, trends and factors affecting levels of management today

Understand the basic factors, skills and responsibilities of management

Identify how well you fit into your company’s culture

NESTLÉ Pure LifeNESTLÉ Pure Life Supervisor Supervisor Quality ControlQuality Control

responsible for reviewing completed Quality Control (QC) audits to ensure quality of work and production standards are met for each employee. In addition, this position will directly supervise QC staff and daily activities.

Abilities of nestle supervisorAbilities of nestle supervisor Ability to deal with sensitive and confidential matters

with discretion

Ability to perform complex technical work with considerable independence

Ability to multi-task several assignments simultaneously

Ability to work effectively as part of a group or team.

Product Product DesignDesign

Product designProduct designProduct design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object or service.

Product designProduct design

The Nestle Pure Life water bottles themselves have a shaped design, sort of a hour-glass shape with larger top and bottom with indented waist. The bottom 1/3 of the bottle has ridged lines to help with hold and grip on the bottle There is a bright blue label strip that runs around.

Product designProduct designUnique bottle design, developed by designer’s team, catchy self-adhesive and glossy label, and trendy name, give to the product the edge that is needed to be spotted on the shelves.

Product designProduct designFor your convenience NESTLÉ PURE LIFE is available in non-returnable 0.5 liter and 1.5 liter bottles at retail outlets and Bulk bottles for Home & Office Delivery in 19 & 12 liter (12 liter is available at retail outlets).

IINFLUENCES UPON DESIGNNFLUENCES UPON DESIGN

Service Expected. Appearance Shipping Costs Cost to Manufacture consumer preferences

STANDARDIZATION &

SIMPLIFICATIONBy Salma Bashir- 126By Salma Bashir- 126

STANDARDIZATION

What is Standard?What is Standard?A document established by consensus and approved by a recognized body that provides for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context”.

StandardizationStandardizationIt refers to setting of fixed size, type and measurement in adition to quality of different products manufactured by different organizations in the industry. It is an agreement whereby each manufaturer undertake to follow the set standards.

Goals of StandardizationGoals of Standardization• quality

• cost certainty

• process certainty

• schedule certainty

• performance certainty

• safety

• repeatability

Simplification and StandardizationSimplification and StandardizationSimplification and standardization of the product are two different but closely related practices. Simplification is the reduction of the number of sizes, colors, styles or other variations of the product.

Simplification may precede or follow standardization or the two processes may be accomplished simultaneously. In other words, in simplification the unprofitable lines of the product may be eliminated by a program of simplification and standards may then be established for the lines that are to be continued.

Merits of StandardizationMerits of Standardization1.1. To the design departmentTo the design department

Fewer specifications, drawings and part list have to prepared and issued.

More time is available to develop new design or to improve established design.

Better resource allocation

Less qualified personnel can handle routine design work

Merits continued…..Merits continued…..

2. 2. To the manufacturer:To the manufacturer:lower unit costbetter quality products better methods and toolingincreased interchangeability of partsEconomical inspectionLess technical and special machinery requiredLess wastageLarge productionBetter utilization of manpower and equipment.Accurate delivery datesBetter services of production control, stock control, purchasingMore effective training

3. To marketers3. To marketersBetter quality products of proven design at reasonable cost leads to greater sales volume

Increased margin of profit

Better product delivery

Easy availability of sales part

Less sales pressure of after sales-services

Merits continued…..Merits continued…..

4. To production planning department4. To production planning departmentScope for improved methods, processes and layouts.

Opportunities for more efficient tool design

Better resource allocation

Reduction in pre-production activities

5. To production control department5. To production control departmentWell proven design and methods improve planning and control.

Accurate delivery promises

Fewer delays arise from waiting from materials, tools etc

Follow up of small batches consumes less time

Merits continued…..Merits continued…..

6. To purchase and stock control department6. To purchase and stock control department Holding of stock of standard items leads to less paper

work and fewer requisitions and orders

Storage and part location can be improved

Newer techniques can be used for better control of stocks

Because of large purchase quantities involved, favorable purchase contracts can be made

7. To quality control department7. To quality control departmentBetter inspection and quality control is possible

Quality standards can be described more clearly

Operators become familiar with the work and produce jobs of consistent quality

Merits continued…..Merits continued…..

8. To the wholesaler:8. To the wholesaler:Elimination of slow moving stock

Easy buying and selling

More attractive

Less investment for high turnover

9. To the consumer:9. To the consumer:Availability of better quality product

Cost and quality assured

Reasonable prices

Merits continued…..Merits continued…..

10. Others10. OthersWork study section is benefited with efficient breakdown of operations and effective work measurement

Costing can obtain better control by installing standard costing

More item is available to supervisor to make useful records and preserves statistics

Reduced reduction and scrap

Helps supervisors to run his department efficiently and effectively

Merits continued…..Merits continued…..

Levels of StandardizationLevels of Standardization

Industrial standardsIndustrial standards-- which relate to the engineering requirements

Commercial standardsCommercial standards- - which are of primary concerns for users who will purchase and use the product.

Industrial StandardsIndustrial Standards “ “ An engineering or industrial standard is a precise

description or definition of a product, a part, a raw material or a manufacturing process which has been established by one company or by a group of companies in an industry”

standards are undertaken by statutory bodies and authorities established by the government e.g;

• Director general of supplies and disposals.

• Research design and standards organization of railways.

• Directorate for standardization for defence production

• Directorate of marketing and inspection

Three types of process standards are used in every industry

• Standards for process activities

• Performance standards

• Management standards

IndustrialIndustrial Standards….Standards….

Types of industrial StandardsTypes of industrial StandardsTechnical Specification

Standardization of Nomenclature:

Optimum Number of Types, Sizes, Colors or Grades of Products

Quality Standards:

Machinery & Equipment Standards

Safety Standards

IndustrialIndustrial Standards….Standards….

Commercial StandardsCommercial StandardsA standard of commerce, which is sometimes called a consumer standard is designed to protect the purchaser or ultimate consumer or manufacturer. It is the measure of

quality

performance,

dimensional characteristics

It covers terminology, grades, sizes, and use characteristics of manufactured products.

agreement for establishing a standard may include method of listing, rating and labeling order that a product made in conformity with the standard may be readily recognized by distributors and consumers.

Standards & Specifications of Standards & Specifications of NESTLÉ Pure LifeNESTLÉ Pure Life

As a world leader in the sector, NESTLÉ Pure Life

always comply with local legislations and standards but

sometimes exceed them, applying its own internal

standards, if they are considered to be insufficient.

These internal standards also apply in developing

countries, where local regulations are lacking or

inexistent. 

NESTLÉ Pure Life materials are tested to relevant ANSI, ASTM , ISO 14001, 22000, and OSHAS certification and ISO standards to ensure durability.

American National Standards Institute (ANSI) - empowers its members to strengthen the marketplace in the economy while helping to assure the safety and health of consumers and the protection of the environment.

American Society for Testing and Materialsis (ASTM) - is an international standards organization that develops and publishes voluntary consensus technical standards for a wide range of materials, products, systems, and service

International Organization for Standardization (ISO) is an international-standard-setting body composed of representatives from various national standards organizations

Standard & CertificationStandard & Certification

Food & Drug Administration (FDA) is the

regulating body in the field. With the Safe Drinking Water Act, which applies to all types of drinking water,the FDA sets specific standards for different types of bottled. So on the international level it meets the standards set by FDA

Certified measurement methodology- Global Environmental Footprint (GEF) The GEF tool is designed for Nestle for the purpose to calculate Greenhouse gas emissions as well as water and energy consumption using methods that meet the recommendations of ISO quality standards.

Environmental Standards- Environmental Act (1997) NESTLÉ Pure Life comply with the Environmental Act , and try to ensure that at every stage of its operations, the environmental impact is minimal.

Environmental Performances - ISO 14001

ISO 14001, the internationally recognized environmental management system standard, whereby performance is independently audited.

Production Standards- LEED (Leadership in Energy and Environmental Design NESTLÉ Waters manufacturing facilities includes measures to reduce energy use and emissions throughout the LEED Certification program.

Waters plants together have reduced:

Energy use by 1.5 million kWH

Emissions by 1 million kilo of CO2

SIMPLIFICATION

SIMPLIFICATIONSIMPLIFICATION

a process to eliminate and produce large number of size, variety, design and select more suitable items in market which are greater in demand.

Product Simplification

Product simplification is a technique in engineering design that aim to reduce the number of different parts within a product.

Advantages of SimplificationAdvantages of Simplification

reduces manufacturing operations and risk of obsolescence.

volume of remaining products may be increased.

provides quick delivery and better sales services.

results in better inventory control.

lowers the production cost

reduces the price of the product.

improves product quality.

helps specialization

Increase in profit

Inc in labor efficiencies

Value Analysis and SimplificationValue Analysis and SimplificationAn organized creative approach which has its objective, the efficient identification of unnecessary cost-cost which provides neither quality nor use nor life nor appearance nor customer features.”

So it is a cost-reduction technique to cut costs of established products or services without reducing their value.

Product design features are evaluated relating to cost and construction elements not contributing to function are eliminated.

VA evaluates a product's: Utility - how useful/functional the product is seen to be + its

VFM.

Esteem value - what the customer/user values in the product features (aesthetic and subjective).

Market value - what the market will pay for the product

Value Analysis Framework

What is the item?

What does it do?

What does it cost?

What else would do the job?

What would the alternative cost be?

Steps for value analysisSteps for value analysis1. Which product?

2. Obtain cost data

3. Identify and define the components

4. Define all the functions that the essential product/service must perform

5. Get the data on current and future demand

6. Now focus on the primary function only

7. Brainstorm as many alternative ways as possible of achieving the

8. primary function

9. Now evaluate/cost the alternatives

10. Investigate the cheapest alternatives

11. Select the best option and work out all development requirements

12. Now return to additional/secondary functions

13. Win acceptance

Product Simplification and DiversificationProduct Simplification and Diversification A programme of simplification is usually initiated because the

product line has become overextended through the development of an excessive number of unrelated products or the production of too many colors, sizes or other varieties. This situation may arise because management did not give sufficient attention to the product line when new varieties were added or because the conditions have changed since the varieties were first placed in the market.

Diversification can takes place in two different ways:

Diversification in depth

Diversification of the existing product lines means adding another product to the existing product line e.g. Godrej Company adding a new washing machine to its existing product line of consumer durables.

Diversification in breadth

Adding a new product line means starting the production and marketing of products in which the company is not previously dealing in. e.g: a company not dealing in consumer durables commences production of consumer durable goods.

Simplifications in Product Design & Simplifications in Product Design & Procedures of Procedures of NESTLÉ Pure LifeNESTLÉ Pure Life

Between 2004 and 2008, NESTLÉ Waters succeeded

in reducing the average weight of bottles by 20% .

have one of the lightest bottles on the market for all

types of beverages.

NESTLÉ Pure Life bottles are primarily made of PET

plastic which is a 100% recyclable material.

In 2007, NESTLÉ Pure released the lightest 0.5 l plastic bottle, the Eco-Shape bottle.

The Eco-Shape half-litre bottle at that time weighed 12.4 grams and used 30% less plastic than the average half-litre plastic beverage container .

they are working on a new generation of Eco-Shape bottle that will weigh less than 10 grams!

Nestlé reduced the amount of PET used per litre by 24% between 2005 and 2007.

The new packaging uses 100% recycled cardboard and paper labels.

NESTLÉ Pure Life support initiatives that aim to collect all packaging materials and promote their reuse.

PRODUCT PLANNING

& QUALITY CONTROLBy Kiran Zahra- 1550By Kiran Zahra- 1550

Quality Control &Quality Control &

InspectionInspection

Quality controlQuality control

Quality control (QC) is a procedure or set of procedures intended to ensure that a manufactured product or performed service adheres to a defined set of quality criteria or meets the requirements of the client or customer.

Quality assurance Quality assurance

QA is defined as a procedure or set of

procedures intended to ensure that a product

or service under development (before work is

complete, as opposed to afterwards) meets

specified requirements.

Steps of Quality assurance:Steps of Quality assurance:

Plan: Establish objectives and processes required to deliver the desired results.

Do: Implement the process developed.

Check: Monitor and evaluate the implemented process by testing the results against the predetermined objectives

Act: Apply actions necessary for improvement if the results require changes.

Compontants of Quality ControlCompontants of Quality Control

(1) Quality assurance;

(2) Failure testing:

(3) statistical control:

(4 ) Company quality:

(5) Total quality control:

Advantages of Quality ControlAdvantages of Quality ControlQuality assurance is used to deliver the quality product to the client according to his requirements and budget.

It makes sure that the software developed without any defects

The primary focus of QA is on facilitation, training, audits and QA reviews, there by ensuring defect free products.

clarification of what services a client expects the practice to provide;

Quality control tools:Quality control tools:

Cause-and-effect Cause-and-effect diagram: diagram:

Check sheet Check sheet Control chartsControl charts Histogram Histogram Pareto chartPareto chart Scatter diagram Scatter diagram Stratification Stratification

InspectionInspection Under traditional quality control, inspection of products and services (checking to make sure that what's being produced is meeting the required standard) takes place during and at the end of the operations process

Problems of inspectionProblems of inspection

The inspection process does not add any "value". If

there were any guarantees that no defective output

would be produced, then there would be no need for an

inspection process in the first place!

Inspection is costly, in terms of both tangible and

intangible costs. For example, materials, labors, time,

employee morale, customer goodwill, lost sales

Inspection Methods to Fulfill Quality Inspection Methods to Fulfill Quality RequirementsRequirements

Sorting out failure:

Production line inspection:

Office work inspection:

Not a good approach:

Gathering failure information:

Inspection intermediate stages:

Inspection by workers

NESTLÉ Pure LifeNESTLÉ Pure Life

Quality control and inspectionQuality control and inspection

Satisfying your healthy thirst for life:Satisfying your healthy thirst for life:

NESTLÉ Pure Life Purified Water is pure bottled water enhanced with a unique balance of minerals to deliver a crisp taste.

Enjoy NESTLÉ ® Pure Life ® Purified Water Enhanced with minerals for Taste or, for a splash of excitement, try NESTLÉ Pure Life Pure Life Natural Fruit Flavored Water Beverage.

You get the high quality bottled water or bottled water beverage that you've come to expect from NESTLÉ a refreshing water or water beverage perfect for those with a healthy thirst for life.

First make it pureFirst make it pure

® NESTLÉ Pure Life ® Purified Water Enhanced with Minerals for Taste begins with well or municipal water.

Every drop of water in every bottle goes through a multi-step process of filtration that involves reverse osmosis and/or distillation.

We then enhance the water with a unique blend of minerals for great taste.

Minerals as germsMinerals as germs

A light blend of minerals contributes to the taste of NESTLÉ Pure Life ®

Purified Water Enhanced with Minerals for Taste.

The mineral contentof any water is measured scientifically as TDS (total dissolved solids). TDS is a "fingerprint", identifying the amount and type of minerals present.

This TDS is what gives our Nestle Pure Life® Purified Water Enhanced with Minerals for Taste its personality and distinguishes it from other waters. The basic composition is not changed during bottling, so you can enjoy the water's clean, crisp taste and natural goodness.

14 steps of quality control14 steps of quality control

source

Activated carbon filtration

Pre treatment

Demineralization process

Water storage and monitoring

Re mineralization

A ,Iicrofiltratiun

Ultra-Violet Light Disinfection

Ozonation Disinfection

Bottling Control

Packaging Control

Clean-In-Place Sanitation Process

Plant Quality Control and HACCP* Program

Corporate Quality Assurance Program

Bottling for QualityBottling for Quality

All of our NESTLÉ Pure Life ® Purified Water products begin with well and/or municipal water.

The water from all of our sources is tested as it comes into our plants.

To ensure continued water quality from source to bottle,

we further employ a comprehensive, multiple-barrier system, which complies with all state and federal regulations.

This approach involves carefully controlled filtration and disinfection processes in hygienically designed lines, supported by continuous monitoring and testing.

We test our products throughout the bottling process and in hourly tests on finished products.

We perform multiple checks hourly to guarantee the quality of our water.

We screen for over 200 possible contaminants annually, even more than the FDA requires At Nestle Waters.

Certified Plant Operators:Certified Plant Operators:

Our success depends on the knowledge and strength of our people operating our plants. We require that all plant quality and operating managers study and pass an exam on bottled water manufacturing technology and quality, which is proctored by the International Bottled Water Association (IBWA).

Third-party inspections:Third-party inspections:We adhere to strict regulatory compliance by

submitting to an independent and unannounced

factory audit sanctioned by the IBWA. This audit,

performed by the National Sanitation Foundation

(NSF), is performed annually at all Nestle Waters

plants. Our plants consistently perform in the top

10% of all bottled water companies ..

Production Production Planning Planning

& & ControlControl

The ConceptThe Concept

Planning: consideration of all input variables to achieve predetermined output goals; a pre-production activity to determine optimal production schedule, operation sequence, economic batch quantity, etc.

Control: remedial action to prevent variance of output from planned levels; tracking operations to ensure compliance with planned levels

Production Planning StagesProduction Planning Stages

Defining objectives

Setting priorities to attain objectives

Examining internal & external environments of planned system

Determining achievable targets

Determining inputs needed to achieve targets

ObjectivesObjectivesEffectiveness: goods to fulfill customers’ needs

Maximising output: maximum output with minimum input

Quality control: Product/service quality meets planned quality specifications

Minimise throughput time: conversion of RM to FG in minimum time

Functions of Production Functions of Production PlanningPlanning

Product selection & design Process selection & planning Facility location Facility layout & materials handling Capacity planning Systems & procedures Estimating quantity/costs of production, men Routing operation sequence Job scheduling & loading

Functions of Production Functions of Production ControlControl

Inventory control: MRP; JIT

Time management

Quality control

Maintenance & Replacement

Cost reduction & cost control

Dispatch

Expediting/Follow-up/Progressing

Scope of Production Planning Scope of Production Planning & Control& Control

Material: RM, component,spares; right quantity; right timeMethodsMachines & equipmentsManpowerRoutingEstimatingLoading & sceduling

Scope of Production Planning & Scope of Production Planning & Control (continuedControl (continued))

Dispatching

Expediting

Inspection

Evaluating

Cost control

Phases in Production Planning Phases in Production Planning & Control System& Control System

Planning: Pre-planning product planning & development; demand forecasting; resource planning; facilities planning; plant location & layout

Active planning

quantity planning; product mix; routing; scheduling; material planning; process planning; capacity planning; tool planning

Phases (continued)Phases (continued)

Action phase

execution – dispatching; progress function

Control phase

status reporting; material control; tool control; inventory control; quality control; labour output control; cost control

Benefits of Production Planning Benefits of Production Planning & Control& Control

Higher quality

Better resource utilization

Reduced inventory

Reduced manufacturing cycle time

Faster delivery

Better customer services

Lower production costs

Benefits (continuedBenefits (continued))

Lower capital investment

Higher customer service

Improved sales turnover

Improved market share

Improved profitability

Competitive advantage

Flexibility

Dependability

Lower prices

Limitations of Production Limitations of Production Planning & ControlPlanning & Control

Based on assumptions

Resistance to change

Time consuming

Difficult due to rapid environment changes

Measuring Effectiveness of Measuring Effectiveness of Production Planning & ControlProduction Planning & Control

Delivery

Inventory levels

Production/Operations Management

NESTLÉ Pure LifePlanning and controlling production

NESTLÉ NESTLÉ SCHEDULING SYSTEMSCHEDULING SYSTEM NESTLÉ Scheduling System is used to prioritise and schedule production across manufacturing processes, machine capacity and labors resources.

Nestle Scheduling System automates clerical tasks and enables timely and consistent production scheduling.

NESTLÉ Scheduling System enables forecasting and planning of manufacturing resource requirements and capacity utilization.

18

This is to conserve resources, boost productivity and minimize production costs.

NESTLÉ Scheduling System enables planning and tracking of manufacturing orders across multiple areas of processing.

Priorities for production scheduling are assigned for each processing area on each shift. This is to boost customer service.

NESTLÉ Scheduling System enables different areas of the enterprise to centralize production scheduling information.

Information can then be shared across the enterprise and with customers and suppliers.

ContinuousImprovement

Check

Act

Plan

Do....

Steps for Capacity PlanningSteps for Capacity Planning

Estimate future capacity requirements

Evaluate existing capacity

Identify alternatives

Conduct financial analysis

Assess key qualitative

issues

Select one alternative

Implement alternative chosen

Importance of time horizonImportance of time horizon

Depending on the time horizon, the plan is of 3 types-

Long-term Planning: Strategic Planning – normally more than an year’s time.

Medium-term Planning: Aggregate Planning – up to an year’s time.

Short-term Planning: Routine Planning – monthly/weekly.

Transform the aggregate demand for each time period into production resource requirements (workers, materials, machines, etc.)

Develop alternative resource plans to support the cumulative aggregate demand and compute the cost for each.

Select the best alternative which satisfies aggregate demand and best meets the organization’s objectives

AGGREGATE PLANNING PROCESS AGGREGATE PLANNING PROCESS IN NESTLE IN NESTLE

Sales forecast for each product: the quantities to be sold in each time period (weeks, months, or quarters) over the planning horizon (6 -18 months)

Total all the individual product or service forecasts into one aggregate demand

Production planning Production planning procedures in Nestleprocedures in Nestle

It can be divided in 3 partsRouting SchedulingLoading

Routing: It means determination of path or route over which each piece is to travel in being transformed from raw-material into finished product.

Advantages of routing:Efficient use of resourcesReduction in manufacturing

Scheduling

it means A description of when & where each operation is to be executed.Establishment of timetable at which to begin/ complete each operation.

Objectives of scheduling in NestleObjectives of scheduling in Nestle

Items are delivered on due date

Production cost is minimum

To minimize idle time of machines

To prevent unbalanced allocation of time among various departments

Types of schedulesTypes of schedulesOperations schedule- determine total time required to do a piece of work with given machine

Master schedule- is a list showing how many of each item to make in each period of time in future.