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CORE COMPETENCIES Nestle Milk Pak has the following 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 NESTLE STORY Nestle S.A. the present Switzerland based international food group, originally consistedof two companies and two products: Henri Nestle and his baby food in Vevey, and theAngloSwiss Condensed Milk company and its condensed Milk Company and itscondensed milk in Cham, both in Switzerland. In 1866 the Page Brothers form theUnited States set up a new industry in Cham, making condensed milk from a rawmaterial that was available in abundance in the region. In 1867 Henri Nestle a chemist inVevey, created a milk and cereal based food for babies. The companies competedvigorously until 1905, when they merged and became the starting point of the presentfood group.MEANING OF NESTLE:Henri Nestlé endowed his company with the symbol derived from his name. His familycoat of arms, the nest with amother birdprotecting her young, became the Company'slogo and a symbol of theCompany's careand attitude to life-long nutrition. The Nestlénest represents the nourishment, security and sense of family that are so essential tolife.BRIEF HISTORY OF NESTLE:1866 -1905 In the 1860s Henri Nestlé, a pharmacist, developed a food for babies who were unableto breastfeed.1905-1918In 1905 Nestlé merged with the Anglo-Swiss Condensed Milk Company. By the early1900s, the company was operating factories in the United States, Britain, Germany andSpain..1918 -1938. The 1920s saw Nestlé's first expansion into new products, with chocolate theCompany's second most important activity.1938 -1944Nestlé felt the effects of World War II immediately. Profits dropped from $20 million in1938 to $6 million in 1939. Factories were established in developing countries,particularly Latin America. Ironically, the war helped with the introduction of theCompany's newest product, Nescafe, which was a staple drink of the US military..1944 -1975In 1947 came the merger with Magi seasonings and soups. Crosse & Blackwell followedin 1950, as did Findus (1963), Libby's (1971) and Stouffer's (1973). Diversification camewith a shareholding in L'Oréal in 1974.1975 1981Nestlé made its second venture outside the food industry by acquiring AlconLaboratories Inc..1981 -1996 Nestlé divested a number of businesses1980 / 1984. In 1984, Nestlé's improved bottomline allowed the Company to launch a new round of acquisitions, the most importantbeing American food giant Carnation.1996+The first half of the 1990s proved to be favorable for Nestlé: trade barriers crumbledand world markets developed into more or less integrated trading areas. Since 1996there have been acquisitions including San Pellegrino (1997), Spillers Pet foods (1998)and Ralston Purina (2002).

Opposite Askari Park Quetta. 2nd Floor. Chaman Housing Scheme. 1st Floor.6bn acquisition was announced of Chef America.A. Lahore PABX: 5757082-95Fax: 5711820FaisalabadHouse No.The Milkpak Sheikhupura factory had commenced operations in1981 as a producer of . It is present on five continents. 824384.Pakistan Phone: (081) 834887Fax: (081) 822297Islamabad74-W.As a consequence of joint venture arrangement between NestleS. Main Gulberg.824328.Pakistan. Chungi No. whilst alsosetting and matching new trends such as growing out-of-home consumption and caringabout the well being of its consumers. 24-Y-103 Madina Town. the existing production facility of Milkpak in Sheikhupura becamea part of Nestle Milkpak. developed by designer’s team.1. Yaseen Plaza. City Tower. give to the product the edge that is needed to bespotted on the shelvesINFLUENCES UPON DESIGN Service Expected.runs 522 factories in 81 countries. Gujranwala.There were two major acquisitions in North America. and responds to specific nutritional problems. Lahore PABX: 5757082-95Fax: 5711SALES ORGANIZATION HIERARCHY Managing DirectorIAN DonaldSales DirectorZafar Hussain ShahZonal Sales ManagerAmmad MalikRegional Sales ManagerAbdul Mateen Khan FACTORIESNestle has two factories in Pakistan for the production of different food items. Pakistan Phone: (051)271874-75. IncNESTLE TODAY Nestle is now the world’s largest food company. catchy self -adhesiveand glossy label.Pakistan Phone: (081) 834887Fax: (081) 822297Islamabad74-W. Punjab. aUSD 2. N. 842415Fax: (091)45516MultanSurij Miani Road.. Punjab. Islamabad.W.Peshawar. sort of a hour-glassshape with larger top and bottom with indented waist. Yaseen Plaza. The bottom 1/3 of the bottle hasridged lines to help with hold and grip on the bottle There is a bright blue label strip thatruns around Unique bottle design. Lahore29-B. both in2002: in July. 274376These offices work under their respective zonal offices Registered & Corporate Office Is in Lahore308 . Punjab. and trendy name. Pakistan Phone: (051)271874-75.824328. testing andmanufacturing or implementation of a physical object or serviceArea Sales Manager6 ASMTerritory InchargeTI 14 Order Booker250 The Nestle Pure Life water bottles themselves have a shaped design.F.000 employees the world over. Baluchistan.Upper Mall. ice cream business into Dreyer's. Jamrud Road.D. In 1988. of Switzerland andMilkpak Ltd. Nestlé merged its U. concept development. Blue Area. has anannual turnover 70 billion Swiss francs .Faisalabad. Baluchistan.Lahore.P. B Block. Blue Area. Punjab. Islamabad. 824384.Phone: (055) 3733415 Fax: (055) 3733415Peshawar201. 274376These offices work under their respective zonal officesRegistered & Corporate Office Is in Lahore308 . The Nestle factories are operating in the regionof Africa America Asia Europe OceaniaBeing a company dedicated to food from the beginning. 1st Floor. Nestle remains sensitive toculinary and eating habits.Upper Mall.Pakistan Phone: (091) 840859. 1basic research center and 20 technological development group and morethan 231. Chaman Housing Scheme.S.D. and in August.5761484Fax: (042) 515061Quetta63 B . Pakistan Phone:(041)726993Fax: (041) 47438GujranwalaPlot No: 144-A. Opposite Askari Park Quetta. Appearance Shipping Costs Cost to Manufacture consumer preferencesNestle Milkpak Ltd. Pakistan Phone: (061)515061Fax: (061) 515061Quetta63 B .Multan. PakistanPhone: (042) 5754335-6. OneinSheikhupuranear Lahore and other inKabirwalanear MultanProduct DesignProduct design can be defined as the idea generation. 200operatingcompanies. First Floor Satellite-Town Market.

the most prestigious project.UHT milk. Three flavored milk –Vanilla. With theinstallation of the roller dryer in1990. the most outstanding year for Nestle Milkpak. By 1988.The year 1992 saw the introduction of tea whitener EVERYDAY and milk powder in bulkpacking named GLORIA.YEAR PRODUCT NAME1981 UHT Milk1983 Butter1986Milk Pak CreamDesi GheeFrost JuiceMilk Pak UHT Milk1990NidoCerelac1991NestumLectogen1992Everyday Tea WhitenerGloriaMaggis Noodles1994MiloNeslac1996NesteaPoloNescafe Classic Maggi Yakhni1997Nestle Wheat1998ToffoSoothersNestle Pure Life1999Maggi SaucesFruit DropsButter Skotch2001Nescafe Creamy FlavorsCream milk powder Nestle Milkpak Ltd. In 1995. by far. the factory nowhouses three new flavors of POLO in addition to two flavors of POLO. And to top it all. The first to comewas a milk powder plant.MILO and NESLAC came under production in 1994 and MILORTD. followed by LACTOGEN 1 & 2 in 1991.1998 has been. They areproducing high quality well known brands. There is no such competitor that cancompete Nestle Milkpak Ltd . In 1997 NESTL’E WHEAT and two variants of POLO viz. Nestle Milkpak drew upambitious expansion plans. making Kabirwala Factoryindependent from Sheikhupura. first confectionery plant of POLO Mint was installed and the line of NESTL’E PURE ORANGE JUICE was also added. strawberry and Orangewere introduced.under the brand FRESH & FRUITY. A new variantLemony was added to the range of popular FROST fruit drink flavors and a new 1-literpacking of FROST was introduced. involving a substantial capital outlay. While reorganizing and re-enforcing the production of existing brands. MILO RTD and UHT Cream were alsoshifted over to this new format. being themaiden less than 17 products were launched during the year. .Conscious of the large food market that Pakistan offered. which not only began producing NIDO in 1990but was alsocritical to the production of several milk-based products in the future. As a result of thetimely implementation of major expansion plans. Market LeaderNestle Milkpak Ltd.1999 also saw the installation of a pouch-filling machine.Shezan and BambinoShezan and Bambino is competing Nestle Milkpak’s local brand “Frost”. A flexible confectionery line for the manufacture of awide range of high and low boiled sweets and toffees was commissioned. These competitors are:Rafhan Rafhan is competing Nestle in infant and follow up cereals. it had expanded its operation and was also producing butter.Desi ghee –all under the brand name of MILKPAK and juice drinks under the brandname FROST. There are a few local competitorsof the company in different product its total product mix. to handle the increased volumes of finished products was proportionately increased. Strawberry and Mango. Nestle Milkpak Ltd. namely Blackcurrent and Strong Mint brought the number of POLO variants to five.Local packing of coffee mixes under the name of NESCAFE 3 in1commenced the same year.for its popular soft serves and milk shakes.Packaging of coffee under the brand name NESCAFE CLASSIC was under taken the sameyear. with TOFFOand two variants of SOOTHERS –Menthol Eucalyptus and Honey Lemon. In 1996. Significantly. Nestle Milkpak alsocontracted to supply dairy mixes to McDonald’s. cream. it lost no time in giving shape to new production lines. the first such product to come was CERELAC –aninternationally recognized brand on infant cereal. came under production on the new Tetra FillingMachine equipped with the modern “slim” f ormat. is the market leader in food and beverage industry.

They have a very skillful and trained workforce.entally sound businesspractices throughout the world. The health of consumer and employees is at primary prioritiesProduction DivisionQuality asst DepartmentBrand wise productiondepartmentsMarketing DivisionCustomer Relation DepartmentDistribution DepartmentResearch & DevelopmentHR DivisionPersonnel departmentFinance DivisionTreasury departmentMilk Collection DivisionAgriculture service DepartmentLogistic Department Nestle provide the pollution free enviroNestle Milkpak ltd. Nestle Milkpak Ltd. SYSTEM AND TECHNOLOGY Nestle Milkpak ltd. CORE COMPETENCIES Nestle Milk Pak has the following core competencies. is an organization which heavily depends upon new systems andtechnologies to excel in the market. Nestle aim to deal only with reputable suppliers who willing to apply NestleQuality Standard.The top management of Nestle MilkPak continuously carries on environmental scanningand within the environmental trends.WORK FORCENestle Milk Pak has a small work force as their most of the operations are automated.entally sound manner. Nestle has been committed to enviroNestle Milkpak ltd. The major objective of the company is to sell high quality.ent and provide themedical facilities Nestle establish policies.. programs and practices to conduct operation in anenviroNestle Milkpak ltd. which is a big competitive advantage for them.CDL and Adar-e-kisan:These two competitors are competing in milk and milkpowder products. innovative andsuperior products which satisfy needs and wants of consumers. Nestle not maximize profit through high market share but use satisfaction of consumer. The organization is well equipped with newdeveloped systems and technologies especially in their operations COMPETITIVE PRIORITIES Following are the competitive priorities of NESTLE MILKPAK LTD.In spite of this competition. Nestle operate to achieve highest standard of ethical conduct.OBJECTIVES OF NESTLE MILKPAK LTD. offices stores and plants are very well located and have the requisite capabilities. which acquirecompany’s activities and relationship world-wide in each business sector. FACILITIES The NESTLE MILKPAK LTD.Consistent qualityDevelopment speedVolume flexibility QUALITY .e. EXTERNAL ENVIRONMENT NESTLE MILKPAK LTD. Opportunities & opportunities they carry onrequired adjustments in their organization to remain variable and to survive in the faceof competition.DIVISIONS OF NESTLE MILK PAK ltd. is enjoying about70-75% market share in Pakistan.’s facilities i.

So they follow the line strategy..Quality is the cone competitive priority of NESTLE MILKPAK LTD. STANDARDIZED SERVICE STRATEGY . there existrepetition of work and a consistent quality is maintained all these priorities lead to maketo stock strategy. Theyhave special sort of equipments and process which facilitates in maintaining a consistentquality. FLOW STRATEGY Flow strategy is one of the primary element of operations strategy. In season when there is shortage of milktheir production rate dropped. In this strategy all products follow linear pattern in facility. pays special attention for maintaining consistent quality. So they can adjust their volume of production according to their requirements. It specifies has the operations systemto be organized and handled.MAKE TO STOCK STRATEGY NESTLE MILKPAK LTD. When the availability of Milk is high in winter season they increase their production as the milk cannot be stored for longer period of time. is the industry leader notonly in Pakistan but all over the world. For different set of products different flow strategies can be implemented. They have high volumeproduction and the demand for their products can be forecasted quite well. NESTLEMILKPAK LTD. has adopted the line flow strategy here the system is organized around the product. They take qualityin two ways. has high volume production with highly automated facility and huge capital investment is there and the standardized products they produce. They have a team of very innovative people which consistently focus on the development of new products and to improve the already existing products.. DEVELOPMENT SPEED As for as develop speed is concerned NESTLE MILKPAK LTD. CONSISTENT QUALITY NESTLE MILKPAK LTD. LINE FLOW STRATEGY NESTLE MILKPAK LTD. VOLUME FLEXIBILITY Volume flexibility is one of the competitive priority of NESTLE MILKPAK LTD. follows the make to stock strategy. STRATEGIES BASED ON FLOW Following are the flow based strategies adopted by NESTLE MILKPAK LTD. So the each and every unit of its product equally satisfies its customers. High performance design and consistent quality.. Based oncompetitive priorities a flow strategy is selected.

Sarghoda Kabir Wala. there is no middle man. If the quality of fatis less than required (6%) than price will be paid accordingly.PH test (6. gerber test is performed for determination of fat. AhmadpurThere are Area collection managers. in factory so that they can in time collect milk for next day.75 Hrs. The milkmen provide milk oncontract basis. There are 5 Silos of100 tons each. Ltd. are standardized. Chistian. there is no rejection on temperature basis. The capacity to store milk is 596 tons. Thereforethe standardized service strategy also exist in NESTLE MILKPAK LTD.Clot an boiling3.5%Goat 3%Sheep 6%Human 3.Fat (5. On milkcenter price of milks is paid at Rs. Buffalo 6% FatCow 3.SNF (Solid non -fat) (8. 5. Chaniot. Alcohol precipitation test2.9Up to reception temp of milk is about 8-10oC. Collection Areas are in all over Punjab Nestle Milk Pak divide theareas in following Categories: Sahiwal. According to this systemthe companies’trucks reach 140000 milkmen and collect milk daily.000 km . Bahawalnagar. In milk collection centers temperature of milk is kept at 4oC. PRODUCTION PROCESS Milk Collection &ReceptionStandardizationStoringEvaporationSpray dryingPackingPasteurizationDeCreamingCooling MILK COLLECTION Milk Collection system of Industry is excellent. STANDARDIZATION . At receptionfollowing tests are performed before storing milk to assure the quality of milk. Pindi Bhattian.5% At milk collection centers. Kahane wal. Nestle purchase milk directly few frames. Gerber Test in done for the determination of Fat. Mian Channu.Village Milk centers 2273Sub centers 583Main Centers 23On milk centers price of milk is paid according to percentage offers. Companies are bounded to maintain 3.5%Fats under pure Food Laws. They havestandardized and consistent quality products. Percentage of FAT in Various Kinds of Milk.1.000 liters. Burewala.5-8. Milk collection Cocoordinators and Milk Collection Supervisors in each Area for collection of specific amount of Milk in specific time RECEPTION From milk collection centers milk is collected and delivered to factory daily seal of tankers are properly decided. Shorkot. According to this system milk is collected from area of about 72. Kacha KHU Bahawalpur . Milk can be stored for 36 Hours in Silos.8% 6%)4. Prices of milk vary in case of self-collection and contract basis. It is legal requirement throughout the world Milk collection system of Nestle Milk Pak is excellent. STORING OF MILK Milk is stored in storage tanks called Silos.8 –6.9)5. Okara etc. If the quality of fat is lessthan required 6% then price will be paid less proportionately.2 Silos of 10 tons each. Trollers are not preferred to stay more than 1.1 Silo of 70 tons. Receiving capacity of milk is 60.The products which are provided by NESTLE MILKPAK LTD.80 per liter at 6% Fats. At milk collection centers .

That way Nestle Milk Pak say “ Nidois instantMilk” (easily dissolvable in hot ad coldwater).Capacity planning is duty of top management and it is long term . 67% and 75%after 1st 2nd3rdand 4th effect respectively. it produces 4tons / Hours & in 20 working hrs it can produce 80tons per day.DryingAfter all these procuress still powder has 5. in which powder is cooled before storing. In summer whenavailability of milk is lower they have their annual . After 3rd effect Homogenization is donewhich uneven composition of fats and SNF is homogenizedSpray dryingIn this process there are 5 lateral high pressure nozzles which exert high pressure onmilk after that there which exert high pressure on milk after that there are about 50%water and 50%solids are remained in milk. Dirt is drained after 30 seconds milk is send for further processes. DE-CREAMING In this process dirt particles. milk is given temp of 60oC and60. Milk powder process activities After pasteurization milk to treated for conversion into powder.000 rpm in de-creamer. Powder is dried through x-Egran System to reduce moisture level up to 3. otherwise the organizationwill miss the opportunities for growth & profits.Packing Milk is packed in different packing according to the weight required.Standardize milk according to the recipe milk is given temperature of 72oC for 15seconds to reducebacteria’s in milk. Cream is sendto butter section.5 % moisture in it.CapacityCapacity is the maximum rate of output for a facility. this process iscalled thermization life of milk isincreased by this process and in standardization composition of fats and SNF arestandardized.1%CoolingAfter drying there is a cooling process. SNF and cream is separated. After this step about 320oC hot air is thrownon milk.Central lecithinationLecithinate is sprayed on powder so that it is converted into highly dissolvable powder. The operations manager mustprovide the capacity to meet current and future demands. form tote tiltingstation from bins. Installed capacity in NIDO plant is 560 tons. 62%.In flush season whenmilk is abundantly available they utilize capacity 100% as cleaning time is just 4 hoursdaily and 20 hours for working.All the animals have different composition of fats in their milk indifferent seasons. it is very quick process in which powder settle in base and moisture evaporatein forms of vapors.(b)4-effect falling film Milk is evaporated in 4 effect system. So that dirt particles cream can be separated.following activities are performed to milk: Evaporation (a) Low heat treatment (b) Milk is heated at high pressure of 889 milli bar so that it start boiling at about 70 oC . Milk is evaporated about 56%.Storing of powderPowder is stored in bins there are 40 bins. PASTEURIZATION In This Process milk is heated at 92 oC for 5 seconds to remove remaining bacteria’s.

shut down (June). Efficiency of employees is calculated daily . There are certain standards for laborutilization. They have trainingsession for employees and vacations in that time.