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Nestle Operation Management (Final)

Nestle Operation Management (Final)

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Published by Salman ilyas
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Published by: Salman ilyas on Dec 26, 2009
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11DETAILS OF PRODUCTION PROCESSDETAILS OF PRODUCTION PROCESS
IntroductionT
HE
 
NESTLE
 
STORY 
 
Nestle S.A. the present Switzerland based international foodgroup, originally consisted of two companies and two products:Henri Nestle and his baby food in Vevey, and the Anglo-SwissCondensed Milk company and its condensed Milk Company andits condensed milk in Cham, both in Switzerland. In 1866 thePage Brothers form the United States set up a new industry inCham, making condensed milk from a raw material that wasavailable in abundance in the region. In 1867 Henri Nestle achemist in Vevey, created a milk and cereal based food forbabies. The companies competed vigorously until 1905, whenthey merged and became the starting point of the present foodgroup.DYNAMIC EXPANSION The history of Nestle include the development of many differentproducts as well as acquisitions, mergers and the purchasing of shares in companies, mainly abroad, over the course of the tears,this enabled it to broaden its range of products and diversify itsoperations, while at the same time strengthening the economicfoundations of the company. Amongst the most importantacquisitions were Carnation in Los Angeles (milk products and petfoods) and more recently Rowntree Mackintosh in York (chocolateand confectionery), Buitoni in Perugia (pasa) as well as Perrier inFrance (mineral water).Nestle which does 98% of its business outside Switzerland, alsohas interests in non-food sectors, in cosmetics (a large shareholding in L’Oreal) and ophthalmic products (acquisition of Alconlaboratories Inc.) while continuing to give priority to foodproducts.
NESTLE TODAY 
Nestle is now the world’s largest food company. It is present onfive continents, has an annual turnover 70 billion Swiss francs,runs 522 factories in 81 countries, 200operating companies, 1basic research center and 20 technological development groupand more than 231,000 employees the world over.
 
22DETAILS OF PRODUCTION PROCESSDETAILS OF PRODUCTION PROCESS
 The company owes its current status to the pioneering spiritinherited from its founders which continues to inspire it, to itsconstant search for new ways of satisfying man’s mutationalneeds.Wherever possible, it sets up factories locally, employeespersonnel from the country concerned and relies on indigenousraw materials. Its agricultural services provide assistance toimprove the quality and yield of the raw materials it uses. Muchattention is devoted to professional training and to theintegration of the company in its economics and socialenvironment.
Nestle Milkpak Ltd.
As a consequence of joint venture arrangement between NestleS.A. of Switzerland and Milkpak Ltd. In 1988, the existingproduction facility of Milkpak in Sheikhupura became a part of Nestle Milkpak. The Milkpak Sheikhupura factory had commenced operations in1981 as a producer of UHT milk. By 1988, it had expanded itsoperation and was also producing butter, cream, Desi ghee – allunder the brand name of MILKPAK and juice drinks under thebrand name FROST.Conscious of the large food market that Pakistan offered, NestleMilkpak drew up ambitious expansion plans. While re-organizingand re-enforcing the production of existing brands, it lost no timein giving shape to new production lines. The first to come was amilk powder plant, which not only began producing NIDO in 1990but was also critical to the production of several milk-basedproducts in the future. With the installation of the roller dryer in1990, the first such product to come was CERELAC aninternationally recognized brand on infant cereal, followed byLACTOGEN 1 & 2 in 1991. The year 1992 saw the introduction of tea whitener EVERYDAYand milk powder in bulk packing named GLORIA. MILO andNESLAC came under production in 1994 and MILO RTD, In 1995.Local packing of coffee mixes under the name of NESCAFE 3 in 1commenced the same year. In 1996, Nestle Milkpak Ltd. firstconfectionery plant of POLO Mint was installed and the line of NESTL’E PURE ORANGE JUICE was also added. Packaging of 
 
33DETAILS OF PRODUCTION PROCESSDETAILS OF PRODUCTION PROCESS
coffee under the brand name NESCAFE CLASSIC was undertakenthe same year. In 1997 NESTL’E WHEAT and two variants of POLOviz. strawberry and Orange were introduced.1998 has been, by far, the most outstanding year for NestleMilkpak. As a result of the timely implementation of majorexpansion plans, involving a substantial capital outlay, no lessthan 17 products were launched during the year. Significantly,the factory now houses three new flavors of POLO in addition totwo flavors of POLO, namely Blackcurrent and Strong Mintbrought the number of POLO variants to five. A new variantLemony was added to the range of popular FROST fruit drinkflavors and a new 1-liter packing of FROST was introduced. Threeflavored milk – Vanilla, Strawberry and Mango, under the brandFRESH & FRUITY, came under production on the new Tetra FillingMachine equipped with the modern “slim” format. MILO RTD andUHT Cream were also shifted over to this new format. A flexibleconfectionery line for the manufacture of a wide range of highand low boiled sweets and toffees was commissioned, with TOFFO and two variants of SOOTHERS – Menthol Eucalyptus andHoney Lemon, being the maiden products. Nestle Milkpak alsocontracted to supply dairy mixes to McDonald’s, for its popularsoft serves and milk shakes. And to top it all, the most prestigiousproject, NESTLE PURE LIFE was also commissioned in December1998. based on the latest water treatment and bottlingtechnology, this marked the entry of Nestle Milkpak in thePakistan water market.In the past, Indus Fruit Products Ltd. has been co-processing fruitpulping for Nestle Milkpak. In view of the growing needs of fruitpulp for its products as well as for exports, Nestle Milkpakentered into a 5-year lease agreement with the managementenables Nestle Milkpak to put in place its own systems to ensurebetter product quality and capacity utilization. The new coldsauces production line has been established at this plant.

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