Introducton Introducton andand

Plant LayoutPlant Layout

“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

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”.

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 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 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 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 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 SUPPLY

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 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 global vision is to be leading health.

wellness and nutrition. NESTLÉ contributes to customer’s well being and enhance their quality of life.

NESTLÉ 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

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.

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.

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

PRODUCT PLANNING

& QUALITY CONTROL

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

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.

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