operation management project on nestle juice -phpapp02
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nestle juice of operation management projectTRANSCRIPT
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