operation management project on nestle juice -phpapp02

FINAL PRESENTATION

of NESTLE JUICE

Munir Ahmad Gondal

03026862883

Table of contents1) History

2) Mission

3) Vision

4) Nestle worldwide

5) Nestle Pakistan

6) Company Structure

7) Nestle juice

8) Production process

9) Core Competency

10) Product Development

11) Planning Phase

12) Market Demand Analysis

13) Product Ingredients

14) Design Detail

15) Testing and refinement

16) Product Launch

17) Recommendation

HISTORY

Henri Nestle, born Heinrich Nestle on

10 August 1814 was a German who

immigrated to Switzerland.

In the 1860’s Henri nestle

developed the first condensed

milk and cereal based infant food

‘‘ FARINE LACTEE HENRI NESTLE’’

(a dry mixture of cow’s milk, sugar, wheat

flour)

1900 operating factories in the united states,

Germany, Britain Spain.

1905 merger with Anglo Swiss condensed milk

company.

1920’s saw nestle first expansion with chocolate .

Since 1996 there have been acquisitions including:

San Pellegrino 1997

Spillers pet food 1998

Ralston Purina 2002

Jenny Craig and uncle toby’s 2006

Novartis medical nutrition 2007

Mission• Build branded food business to improve quality of

life by offering tasty, affordable and highly

nutritional products to our consumers while

maximizing stake holders value.

Vision• Nestlé aim is to meet the various needs of the

consumer every day by marketing and selling food

of a consistently high quality.

• The confidences that consumers have in our brands

is a result of our company’s many years of

knowledge in marketing, research and

development, as well as continuity - consumers

relate to this and feel they can trust our products.

Vision Statement of Nestle

JUICES• The strategic priorities of Nestle Juices are focused

on delivering shareholder value through the

achievement of sustainable, capital efficient and

profitable long term growth. Improvements in

profitability will be achieved while respecting

quality and safety standards at all times. Nestle

JUICES envisions to grow in the shortest possible time

into the number one BeverageCompany in Pakistan

with the unique ability to meet the needs of

consumers of every age group through

development of a large variety of beverage

categories of the highest quality.

The Nestlé logo was launched by

Henri Nestlé in 1868 on the basis of

the meaning of his name in German,

i.e. little nest, and of his family

emblem.

LOGO

SLOGON

GOOD FOOD, GOOD LIFE

NESTLE WORLDWIDE

Offering more than 8500

brands and 10,000

products.

Head quarter in VEVEY,

Switzerland.

487 factories spread over

86 countries and

employees more than

283000 people

NESTLE PAKISTAN

Nestle started its operations in Pakistan back in 1988, by

acquiring a diary company MILKPAK LTD.

Butter, cream, desighee under brand name MILK PAK

Juice drink under brand name FROST

1990 it start producing NIDO, Everyday, CERELAC

1991 LACTOGEN 1 & 2

1994 MILO and NESCAFE 3 in 1

1998 sweet treats (POLO)

1999 fruit drops, NESTLE PURE LIFE

NESTLE fruita vitals

PRODUCT LINE

BRANCHES IN PAKISTAN

Nestle in Pakistan has its

branches in fallowing major cities.

• LAHORE

• ISLAMABAD

• FAISALABAD

• SHEIKHUPURA

• KARACHI

Company Structure

• Nestle head office in Pakistan is in Lahore. It also has

its registered office in Lahore.

• Nestle has divided the whole Pakistan in to three

Zones.

• Northern Zone

• Central Zone

• Southern Zone

• Nestle has 8 regional offices in all over Pakistan.

These offices work under their respective zonal

offices.

Factories

• Nestle has two factories in Pakistan for the

production of juice items.

• One near Sheikhupura near Lahore (29Kilometer on

Lahore Sheikhupura road)

• Second in Kabirwala near Multan (Khanewalraod,

Distt. Kabirwala)

Nestle juice

• Enlarged by the consumer response to NESTLE

ORANGE JUICE that was launched in 1996, the

category of Nestle juice was expanded with the

introduction of MANGO-ORANGE and Mango

flavors in the year 2000. This has further

strengthened the position of Nestle as leader in the

value added/premium drinks market consumer

response to these new flavors has been very

upbeat and is expected to gain further.

Types of Nestle juice

• Pure orange

Types of Nestle juice• Clear apple nectar

Types of Nestle juice• Red grape nectar

Types of Nestle juice• Pineapple nectar

Types of Nestle juice• Mango orange

Types of Nestle juice• Chaunsa nectar

Types of Nestle juice• Guava nectar

Types of Nestle juice• Mango

NESTLE FRUITA VITALS• NESTLE FRUITA VITALS embraces

the simplicity and clarity that

comes with being unpretentious,

genuine and down to earth,

which is also reflected in the "

NESTLE FRUITA VITALS• Get Real ".The product backs up

their claim by being the market

leader in the juices and nectar

categories. No pretentions, no

fake attitudes or buzzwords,

just good quality juice.

NESTLE FRUITA VITALSNestle FRUITA VITALS has also rolled

out of a line of Nestle FRUITA VITALS

premium range. Currently available in

Pomegranate and 100% Orange

variants, the project has met with

great success, and quickly

established a niche for itself in the

juices category.

tagline:

Primary activities

.

Inbound logistics

operations

Outbound logistics

Marketing &sales

service

Inbound

• Major raw materials of Nestle orange juices are

different pulps of orange which they import from

Germany and France. Nestle company get their

other raw material from local market in Pakistan.

Nestle juices raw material include ingredients such

as fresh fruit, nectar of mango, apple, and

pineapple, orange.

Operations

• Process is any part of an organization that takes

inputs and transforms them into output of greater

value. Fruit Juice production procedures involved in

fruit drinks manufacturing depends on type of juice

unit is going to make. For purpose of this- feasibility,

Nestle propose 4% token juice drink of citrus fruit

(Orange), Mango and pineapple.

• The type of process that Nestle uses is make-to-

stock as it produces standardized products. The

process is multistage as few stages are similar for all

juices and few are different.

Process Type

• The process for Nestle Juices is continuous flow

process as juice, which is liquid, flows through the

production process.

Push or Pull strategy

• Nestle follows push strategy as they make product,

which are standardized and then push them in to

market.

Fruit production process flow

• .Boiling of fruit Storage in tank Ingredients mixing

Syrup storage in tankJuice preparationJuice storage tank

Filling and packing

Cooling and storage

Fruit Juice Production Process

• Fruits boiled in the boiler and shifted to the plate

heat exchanger. Then it is stored in the storage

tank. Then supplied to the mixing tank in the desired

quantity while in mixing tanks; any additives to the

mixture is made at this stage before it is pumped to

syrup storage tank. Blended juiced is then pumped

through pasteurizer; where it is heated to 90 C to

inactivate enzymes and living organism. After

pasteurization the juice passes through final

filtration, before lauding it into juice tank. Juice from

the tank is ready for packaging.

Packaging and Labeling

• The juice is the packed in the quantities demanded

by the market. Consumer packs as like 200ml and

1000ml tetra pack and then labeled as Nestle

Juices. Then the final product is stored in cool dry

store.

Raw Material

Reject Production

StorageNO YES

Boiler

Plate Heat Exchanger

Storage and ShippingJuices Mixing TankPreservatives

Juices Mixing Tank

Syrup Storage Tank

Pasteurizers

Juice Storage Tank

Bottled/ Packaged/ Labeled

Bulk Transport

Finished Product in

cold storageTransportRetailer Wholesaler

Outbound Logistics

• In Nestle Company the activities that include in

outbound logistics are, They establish their sale and

distributive offices in big cities like Karachi, Lahore,

Islamabad, Faisalabad, Gujranwala etc. and also

hire suitable distributors on agreed profit margins.

Who buy product from Nestle office of the cities

and try to distribute to each retailers and shop

keeper in the cities and rural areas.

Services

• Company established the customer center in each

office in a major city and also given toll free number

as a help line number. This means that if customer

feels any problem then they can contact through

their help line.

Marketing and Sale

• Nestle company has efficient market management who’s main objectives for marketing their product are.

• Strong customer relationship

• Identify need of customer like new taste new, fruit items

• Maintain market leadership by maintaining the pure quality

• Provide juices which are fit for human body

• Stop brand selling and don’t reduce quality

• Quality is Nestlé’s guarantee

Process Analysis

• Cycle time

• In a repetitive process the average time between

the completions of successive units is called cyclic

time. For Nestle 90 min is batch preparation time. 60

min is the process time and 75 min packing time.

(Batch of 15000 Liters).

Process Analysis• Bottleneck

• The limiting factor or the constraint in the process is

called bottleneck. In Nestle juices Batch making is

the bottle neck. What should be the size of

batch?Another bottleneck is mixing plant. It takes

the largest amount of time.

Process Analysis• Efficiency

• It is the ratio of actual output of a process relative to

some standard input. Packing machine at 100 %

efficiency produces 7000 packs in 1 hour. At Nestle

the packing machine efficiency is 95%.

Process Analysis• Run time

• It is the time required to produce a batch of parts.

This is calculated by multiplying the time required to

produce each unit by the batch size.If the machine

produces 7000 packs in 60 mins, then it takes 0.514

sec to produce one pack. So the batch will be

completed in 3855 secs, if packed on two similar

machines. This will make in total 15000 packs.

Process Analysis• Setup time

• It is the time required to prepare a machine to

make a particular item. For Nestle Juices, 3.5 hrs.is

the setup time. (Sum of CIP and sterilization

processes)

Process Analysis• Operation time

• It is the sum of the setup time and run time for a

batch of parts that are run on a machine. For Nestle

it is 210 + 75 = 285 min

Process Analysis• Through put time

• It includes the time that the unit spends actually

being worked on together with the time spent

waiting in a queue. For Nestle Juices it is 90 mins

(Batch making time) + 60 mins( process time) + 75

mins (filling time) = 225 mins

MARKETING

• Nestle hold strong reputation for high quality

brands. In major markets, trade marketers are

frequently rated highly in customer surveys on

professionalism and service. They don't believe in

'one brand fits all' and that’s their marketing

strategy. They have a strong, diversified global

portfolio – well focused and defined – offers a

brand for all key consumer and market sectors.

Nestle (JIT-Manufacturing System)

“The concept of JIT is to getting

the right quantity of goods at

the right place and at the right time.”

• Raw Material

• Reduce space requirements

• Continuous improvement

• Lower production cost

• Increased flexibility

• Increased machine utilization

• Lower inventory cost

Nestle (Supply Chain Management)

• Good supplier relations

• Price advantage for materials

Responsibility of SC Manager

• To buy raw material as an input.

• To use raw material in economical way.

• To supply all of the materials to the customers.

Nestle (Current Techniques)

• JIT (Just in time) inventory system.

• Implemented since 3 years back.

Benefits:

• Elimination of Waste

• Reduced space requirements

• Increased machine utilization

Functions of OM• Understanding strategic objectives

• Developing an operations strategy

• Improving the performance of operation

• Planning and controlling

• Designing the operation's products, services and

processes

Organization ChartCHAIRMAN

P.Barbeck-letmathe

Corporate governance

D.P FRICK

CEO

P.BulckeCorporate

communications

R.Ramsauer

Pharma &cosmetics HR

F.Castaner

Finance & control

J.SinghOperations

J.LopezSBU’s marketing &sales

W.Bauer

Innovation technology &

R&D

W.Bauer

Zone EUR: EUROPE

L.Freixe

Nestle Professional

M.Caira

Nestle nutrition

R.T.Laube

Zone AOA: ASIA/AFRICA

F.Van Dijk

Zone AMS: Americas

L.Cantarell

Nestle waters

J.J.Harris

Core Competency

• Core competency is defined as “one thing that a

company can do better that its competitor”. For

Nestle, the core competency lies in its quality and

brand name.

Product Development

• It includes phase of Planning, concept

development, system level designs, design details,

testing and refinement and production ramp up.

Planning Phase

• In this phase, product type is selected based on

Nestle’s corporate strategy and market demand.

Nestle has introduced many product for specialized

market and as they believe that one product

cannot serve all the customers. They believe in

quality product and wellbeing of customers. They

believe in building trust of customer.

Market Demand Analysis

• In this stage Nestle, research the market and

develop alternate product categories. Concept

are developed related to design and features of

product

Product Ingredients

• In this process Nestle defines the product

architecture and composition of product. What

would be the ingredients and what would be its

nutrition value is decided in this phase.

Design Detail

• In this phase Nestle define the complete

composition of product, its packaging and the

nutrition value it will provide to customer.

Testing and refinement

• Prototype is developed and tested in market by

promotional activities like distributing product free

of cost. Mostly Lahore is selected as test city and

product is launched in Lahore and its response is

checked and feedback from customer is

evaluated.

Product Launch

• After all the testing and making necessary

adjustments to taste and nutrition value, product is

launched.

Recommendation• Increase advertising & Show your Competitive

edge.

• Ware houses should be installed as soon as possible.

• Do more for the completion of projects on time

• Increase its distribution network.

• Try to get more & more party orders.

• Give keen interest to CRM.

• Increase incentives & Promotional Activities.

THANK YOU