Professional Documents
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Introduction
DYNAMIC EXPANSION
NESTLE TODAY
1998 has been, by far, the most outstanding year for Nestle
Milkpak. As a result of the timely implementation of major
expansion plans, involving a substantial capital outlay, no less
than 17 products were launched during the year. Significantly,
the factory now houses three new flavors of POLO in addition to
two flavors of POLO, namely Blackcurrent and Strong Mint
brought the number of POLO variants to five. A new variant
Lemony was added to the range of popular FROST fruit drink
flavors and a new 1-liter packing of FROST was introduced. Three
flavored milk – Vanilla, Strawberry and Mango, under the brand
FRESH & FRUITY, came under production on the new Tetra Filling
Machine equipped with the modern “slim” format. MILO RTD and
UHT Cream were also shifted over to this new format. A flexible
confectionery line for the manufacture of a wide range of high
and low boiled sweets and toffees was commissioned, with
TOFFO and two variants of SOOTHERS – Menthol Eucalyptus and
Honey Lemon, being the maiden products. Nestle Milkpak also
contracted to supply dairy mixes to McDonald’s, for its popular
soft serves and milk shakes. And to top it all, the most prestigious
project, NESTLE PURE LIFE was also commissioned in December
1998. based on the latest water treatment and bottling
technology, this marked the entry of Nestle Milkpak in the
Pakistan water market.
In the past, Indus Fruit Products Ltd. has been co-processing fruit
pulping for Nestle Milkpak. In view of the growing needs of fruit
pulp for its products as well as for exports, Nestle Milkpak
entered into a 5-year lease agreement with the management
enables Nestle Milkpak to put in place its own systems to ensure
better product quality and capacity utilization. The new cold
sauces production line has been established at this plant.
DETAILS OF PRODUCTION PROCESS4
With the merger of this factory with Nestle Milkpak in April 1997,
Kabirwala Factory, as it is now called, is a fully owned unit of
Nestle Milkpak Ltd.
CORPORATE STRUCTURE
Head Office
PABX: 5757082-95
Fax: 5711820
Factories
There are two factories of Nestle Milkpak Ltd. For dairy products.
Sheikhupura:
Kabirwala:
Islamabad :
Karachi:
REGIONAL OFFICES
• Karachi
• Hyderabad
• Sukkhar
• Lahore
• Multan
• Faisalabad
• Gujanwala
• Quetta
• Islamabad
• Peshawar
The core raw material of Nestle Milkpak is milk. Over the last
thirteen years the company prime concern has been to improve
the quality and volume of milk for UHT processing and for other
milk base products. So the company has twenty-five milk
collection centers in Pakistan.
DETAILS OF PRODUCTION PROCESS7
Products
DETAILS OF PRODUCTION PROCESS8
Desi Ghee
Frost Juice
1990 Nido
Cerelac
1991 Nestum
Lectogen
Gloria
Maggis Noodles
1994 Milo
Neslac
Nescafe 3 in 1
Nestea
Polo
Nescafe Classic
Maggi Yakhni
1998 Toffo
Soothers
Fruit Drops
Butter Skotch
Rafhan:
1. Condensed Milk
Mission
“Wherever you live, only Nestle can provide the best and most
relevant food and beverage products to meet your needs
throughout your day, throughout your life. The Nestle Network
icon will take you on the journey of discovery through our world
of food.”
DETAILS OF PRODUCTION PROCESS12
Nestle not maximize profit through high market share but use
maximize customer’s satisfaction. Nestle earn profit through
satisfaction of consumer.
CORPORATE STRATEGY
EXTERNAL ENVIRONMENT
CORE COMPETENCIES
WORK FORCE
Nestle Milk Pak has a small work force as their most of the
operations are automated. They have a very skillful and trained
workforce.
FACILITIES
The NM’s facilities i.e. offices stores and plants are very well
located and have the requisite capabilities, which is a big
competitive advantage for them.
COMPETITIVE PRIORITIES
i. Consistent quality
QUALITY
CONSISTENT QUALITY
DEVELOPMENT SPEED
VOLUME FLEXIBILITY
FLOW STRATEGY
PRODUCTION PROCESS
Packing
DETAILS OF PRODUCTION PROCESS17
PRODUCTION PROCESS
MILK COLLECTION
Main Centers 23
Collection Areas are in all over Punjab Nestle Milk Pak divide the
areas in following Categories:
RECEPTION
2- Clot an boiling
Trollers are not preferred to stay more than 1.75 Hrs. in factory
so that they can in time collect milk for next day.
STORING OF MILK
1 Silo of 70 tons.
STANDARDIZATION
DECREAMING
PASTEURIZATION
Evaporation
Spray drying
Central lecithination:
Drying
After all these procuress still powder has 5.5 % moisture in it,
Powder is dried through x- Egran System to reduce moisture level
up to 3.1%
DETAILS OF PRODUCTION PROCESS20
Cooling
Storing of powder
Packing
Capacity
Nestle Milk Pak, Kabir Wala has installed new evaporate, doubling
the Sout put of spray dryer in 1999. Along said the were house
capacity at Kabir Wala to handle increased volumes of finished
products was proportionately increased. They also installed
pouch filling machine, making Kabir Wala factory independent
from Sheikhu Pura for filling of full cream Milk powder.
1 Silo of 70 tons.
LOCATION
This factory has been located in this area because here the
supply of milk is more than the requirement of the local area.
This factory location is immensely surrounded by Argicultrual
farms, villages and small towns. The people o f thess areas have
their own
Animals and the feudals of the region have their own live stock
farms. So there is abundant milk available.
In the end we can say that the most important and critical factor
for locating the facility at this place is the availability of the milk
in this area.
TYPES OF INVENTORIES
RAW MATERIALS
The factory can store the milk up to 596000 liters. They have five
silos for storing the milk all have different capacities. The milk
can remain there for the period of 36 hours without loosing
quality.
MATERIALS MANAGEMENT
SUPPLIER RELATIONS
COOPERATIVE ORIENTATION.
there are the suppliers of Milk and on the other hand the
suppliers of packing NM have cooperative relations with both of
its suppliers.
PROGRESSIVE FARMERS
Sole sourcing P is the only supplier who provides are the packing
material. So NM use sole sourcing.
Continuous Review
DETAILS OF PRODUCTION PROCESS25
DISTRIBUTION
i. Forward Placement
FORWARD PLACEMENT
BACKWARD PLACEMENT
For the milk collection the NM has their own tankers, which are
made of special material to maintain the quality of milk.
FORE CASTING
DETAILS OF PRODUCTION PROCESS27
AGGREGATE PLANNING
PRODUCTION PLAN
AGGREGATION
TIME
The planning horizons of NM are of two types one is the long term
planning horizon which covers the period of ten years. The other
is the shorter planning horizon normally or one year.
In long term planning horizon NM plans for about ten years. They
plan how much production capacity to be achieved. How much
production rates will be required what will be the customer
demand how will they collect the milk. From where they will
collect the milk. How many number of animals would be there is
a particular area and from there how much milk we will be
collecting. They got all the information and plan for a longer
period of time.
In shorter planning horizon they plan usually for one year and
then further decompose that in seasonal plan. How much to
produce in a year. How much milk to be collected in one year
what is the deficiency or surplus. How much inventories we will
be holding. This yearly plan is further divided into four quarters.
Targets are set for each quarter and the efforts are made to
achieve the targets.
QUALITY
Nestle Milk Pak has quality as its top competitive priorities along
with availability of its products all over.
Customer satisfaction
Nestle take their customer on top of its hierarchical chart. Its top
priority is to satisfy the customer. They design the product in
such a way that they confirm their speciation, fit for use and give
support to the company image.
Employee involvement
They conduct weekly meetings and discuss the ideas; good ideas
are rewarded to motivate employee’s involvement. There are
formal training sessions for employees to train them and enhance
their capabilities. Employees are given rewards and incentives to
involve them more in organization.
Continuous improvement
BENCHMARKING
QUALITY CERTIFICATION
Nestle Milk Pak has its own quality standard certification which
has much higher standards as compared to ISO, called Nestle
Quality Standards. Nestle Milk Pak Kabirwala is approved by
Nestle Quality Standards.
Quality of Materials
Quality of Process
Distribution
Continuous improvement
Customer satisfaction
Employee involvement
DETAILS OF PRODUCTION PROCESS31
Milk Collection
Buffalo 6% Fat
Cow 3.5%
Goat 3%
Sheep 6%
Human 3.5%