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 and
Plant Layout
By Sameera Dar- 1542
Nestle Pure
Life
 INTRODUCTION
“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
 KEY DATES 1866 COMPANY
FOUNDATION
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 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 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
 FACTORIES
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 layout
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
Life

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.
 ADVANTAGES
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 SUPPLY
By Sana Khalid - 127
Purchase Policy
 Purchasing
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 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 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 Cycle
1.Recognize,
1. 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.Prepare
4. 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
Purchasing

Centralized 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
Centralized 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 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 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 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 basic
principle of NESTLÉ Pure
Life.
 Purchasing - Code of
Ethics
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 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 Management

Supplier Audits
Supplier Certification
Supplier Relationships
Supplier Partnership
 Supplier 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 Certification
Part 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 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 Partnership
One 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 labour
Supply
 Sources of Labor Supply
The 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

1.Persons Already Employed
Cumulative promotion
Promotion purpose
Temporary employees and permanent
 2.Recommended by Present Employees

For lower job

Guarantee by present employees
3.Recommended by Former Employees
Seasonal employment
In 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 port
Experienced persons
Lack of loyalty and morale

10.Advertisement and Selection

Public sector
For high post
Standards
Fair competition
 Methods of Selecting Workers
Preliminary 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 Procedure
Application
Invitation to an Interview
Meeting
Test
Starting out in NESTLE
Career 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
TRAINING
By Sobia Akhlaq- 1548
Induction
 Induction
Induction 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 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
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
IBA
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 &
Development of
Employees
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?
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
Courses
1-Trainers course
2-Professional course for assistant supervisors
3-Professional course
4-Specialized technical courses
5-Specialized technical course
 AT NESTLE
The 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 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 Development
Learning
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 Developing
Each 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.
 PROMOTIONS
Promotions 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
Supervisor
 Role of supervisor
Planning and Organizing
Provision of working conditions
Leadership and Guidance
Motivation
Controlling
Linking Pin
Grievance Handling
Reporting
Introducing new work methods
Enforcing Discipline
Supervisor'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
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

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
SUPERVISOR
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
SUPERVISOR
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 Life Supervisor
Quality 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 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 Design
 Product design
Product design can be defined as the idea
generation, concept development, testing
and manufacturing or implementation of a
physical object or service.
 Product 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 design
Unique 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 design
For 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).
 INFLUENCES UPON DESIGN
 Service Expected.
 Appearance
 Shipping Costs
 Cost to Manufacture
 consumer preferences
STANDARDIZATION
&
SIMPLIFICATION
By Salma Bashir- 126
STANDARDIZATION
 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”.

Standardization
It 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 Standardization
• quality
• cost certainty
• process certainty
• schedule certainty
• performance certainty
• safety
• repeatability
 Simplification and Standardization
Simplification 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 Standardization
1. To 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…..

2. To the manufacturer:
lower unit cost
better quality products
better methods and tooling
increased interchangeability of parts
Economical inspection
Less technical and special machinery required
Less wastage
Large production
Better utilization of manpower and equipment.
Accurate delivery dates
Better services of production control, stock control,
purchasing
More effective training
 Merits continued…..

3. To marketers
Better 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…..

4. To production planning department

Scope for improved methods, processes and layouts.
Opportunities for more efficient tool design
Better resource allocation
Reduction in pre-production activities
5. To production control department
Well 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…..

6. 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 department

Better 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…..

8. To the wholesaler:
Elimination of slow moving stock
Easy buying and selling
More attractive
Less investment for high turnover
9. To the consumer:
Availability of better quality product
Cost and quality assured
Reasonable prices
 Merits continued…..

10. Others
Work 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
 Levels of Standardization
 Industrial standards- which relate to the engineering
requirements

 Commercial standards- which are of primary concerns

for users who will purchase and use the product.
 Industrial 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
 Industrial Standards….

Three types of process standards are used in every

industry
• Standards for process activities
• Performance standards
• Management standards
 Industrial Standards….

Types of industrial Standards

Technical Specification
Standardization of Nomenclature:
Optimum Number of Types, Sizes, Colors or
Grades of Products
Quality Standards:
Machinery & Equipment Standards
Safety Standards
 Commercial Standards
A 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
NESTLÉ 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 & 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
 SIMPLIFICATION
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 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 Simplification
An 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 analysis
1. 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 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 & Procedures
of NESTLÉ 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 CONTROL
By Kiran Zahra- 1550
Quality Control &
Inspection
 Quality 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
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:
 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 Control
(1) Quality assurance;
(2) Failure testing:
(3) statistical control:
(4 ) Company quality:
(5) Total quality control:
 Advantages of Quality Control
Quality 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:
 Cause-and-effect
diagram:
 Check sheet
 Control charts
 Histogram
 Pareto chart
 Scatter diagram
 Stratification
 Inspection
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 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
Requirements
Sorting out failure:
Production line inspection:
Office work inspection:
Not a good approach:
Gathering failure information:
Inspection intermediate stages:
Inspection by workers
 NESTLÉ Pure Life
Quality control and inspection
 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 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 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 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 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:
 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:
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 Planning
&
Control
 The 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 Stages

Defining objectives
Setting priorities to attain objectives
Examining internal & external environments of planned
system
Determining achievable targets
Determining inputs needed to achieve targets
 Objectives
Effectiveness: 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
Planning
 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
Control
Inventory control: MRP; JIT
Time management
Quality control
Maintenance & Replacement
Cost reduction & cost control
Dispatch
Expediting/Follow-up/Progressing
 Scope of Production Planning
& Control
Material: RM, component,
spares; right quantity; right time
Methods
Machines & equipments
Manpower
Routing
Estimating
Loading & sceduling
 Scope of Production Planning &
Control (continued)
Dispatching
Expediting
Inspection
Evaluating
Cost control
 Phases in Production Planning
& 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)

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
& Control
Higher quality
Better resource utilization
Reduced inventory
Reduced manufacturing cycle time
Faster delivery
Better customer services
Lower production costs
 Benefits (continued)

Lower capital investment

Higher customer service
Improved sales turnover
Improved market share
Improved profitability
Competitive advantage
Flexibility
Dependability
Lower prices
 Limitations of Production
Planning & Control

Based on assumptions
Resistance to change
Time consuming
Difficult due to rapid environment changes
 Measuring Effectiveness of
Production Planning & Control
Delivery
Inventory levels
Production/Operations Management
 NESTLÉ Pure Life
Planning and controlling production
NESTLÉ SCHEDULING 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.
Do....
Chec
k
Continuous
Improvement
Plan Ac
t
 Steps 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 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
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
procedures in Nestle
It can be divided in 3 parts
Routing
Scheduling
Loading

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 resources
Reduction 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 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 schedules
Operations 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.