Introducton and Plant Layout

INTRODUCTION
Nestl is a Swiss-German word which means Little Nest which is its trademark Nestl 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

MISSION STATEMENT

"Nestl is the largest food company in the world. But, more important to them is to be the world's leading food company.

Plant layout
MeaningPlant 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

NESTL 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
NESTL has a plant that can handle a variety of processing requirements Machines breakdown doesnt 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 NESTL 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 NESTL 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

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

NESTL 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

NESTL s global vision is to be leading health. wellness and nutrition. NESTL contributes to
customers well being and enhance their quality of life.

NESTL has unique experience of anticipation

customers 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, describe, define the need 1. 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 and issue the PO 4. 5.Follow-up the order (including expediting and deexpediting) 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

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 goalto satisfy the end user. The better the suppliers quality, the better the suppliers 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.

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.

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 designers 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 NESTL 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

PRODUCT PLANNING
QUALITY CONTROL
&

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

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 NESTL 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, multiplebarrier 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 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