A Project on Operations Management
An understanding of current production systems, the quality aspects and supply chain management of Nestle
Group-5 : SANTOSH KUMAR GUPTA, JAISON JOSEPH, NANJAPPA P.B., TANUJ GOYAL, MAITREE MISHRA, ANAND S. INDIAN INSTITUTE OF MANAGEMENT ROHTAK
Nestlé's Popularly Positioned Products (PPP) strategy5
Key facts on Popularly Positioned Products Strategy5
Operations of Nestle6
Milk reception and quality checks7
Industrial Performance Tools14
Nestle Quality Management System16
Nestlé Quality Management System Structure17
Nestle Quality System: Key principles18
International Organization for standardization (ISO)19
ISO 9001, 14000, 1800019
Bureau of Indian Standards (BIS)20
Food Safety and Standards Acts(FSSA)21
Fruit Products Order- 195521
The HACCP seven principles22
Nestle Supply Chain Management25
A Quick Look At Nestle India’s Moga Factory28
Nestle is a market leader in the FMCG sector across different markets with products such as beverages, ice cream, baby foods/formulas, soups, frozen foods, snacks, pet care and candy. Some of the more popular products are Kit Kat, Nescafé, Nestea, Nestlé Everyday Dairy Whitener, Nestlé Maggie among others. Nestlé uses the strategy of popularly positioned products which focuses on the specific needs of around 3 billion lower-income consumers worldwide. PPPs offer these consumers the opportunity to consume high-quality food products that provide nutritional value at an affordable cost.
In this report, we analyze the operations involved in the production of one of the most popular milk products, which is Nestlé Everyday Dairy Whitener. We identify the main manufacturing processes involved in the production of the whitener which involves milk reception and quality check, milk separation, standardization, concentration, drying, mixing and packaging.
We also identify Industry Performance Tools used by Nestle, such as DMAIC and other tools of continuous improvement such as 6sigma, lean supply chain management, CI Methodology, TPM concept. We also discussed the Nestlé Quality Management System (NQMS), which is a process-based Quality Management System that focuses on compliance and continuous improvement programs to achieve consumer trust and preference. It covers the Food Safety and Regulatory Compliance systems as well as all other systems needed to ensure quality compliance and performance across the value chain. We also discussed the quality policy of the company, along with the quality standards followed such as BIS, FSSA, HACCP.
We analyzed the Supply Chain Management of Nestle, spanning all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. For a company like Nestle which has a huge scale of operations SCM strategy plays a bigger role.
We conclude our analysis with an over view on the Nestle Moga factory and its use of the Sustainable Supply Chain Model.
Nestle SA, Switzerland is amongst the world’s largest food and beverages companies. The company is progressively evolving from a respected, trustworthy food and beverage company to a respected, trustworthy food, beverage, nutrition, health and wellness company. This objective is encapsulated in “Good Food, Good Life”. The principle activities of the group encompass: beverages, milk products, nutrition and ice cream;...