Introduction

Company : Nestle
Industry : Food
Founded : 1866, Vevey, Switzerland
Company
Nestl bean in Switzerland in t!e mid 186"s w!en #ounder $enri Nestl %reated one o#
t!e #irst baby #ormulas& $enri realized t!e need #or a !ealt!y and e%onomi%al produ%t to
serve as an alternative #or mot!ers w!o %ould not breast#eed t!eir babies& 'ot!ers w!o
were unable to breast#eed o#ten lost t!eir in#ants to malnutrition& $enri(s produ%t was a
%are#ully #ormulated mi)ture o# %ow(s mil*, #lour and suar& Nestl(s #irst produ%t was
%alled Farine +a%te ,-%orn#lour ruel. in Fren%!/ $enri Nestl& 0!e produ%t was #irst
used on a premature baby w!o %ould not tolerate !is mot!er(s mil* or ot!er alternative
produ%ts o# t!at time& 1o%tors ave up on treatin t!e in#ant& 'ira%ulously t!e baby
tolerated $enri(s new #ormula and it provided t!e nouris!ment t!at saved !is li#e& 2it!in
a #ew years t!e #irst Nestl produ%t was mar*eted in 3urope&
In 1845 t!e Nestl Company was pur%!ased by 6ules 'onnerat& Nestl developed its own
%ondensed mil* to %ontend wit! its %ompetitor, t!e 7nlo8Swiss Condensed 'il*
Company& 0!e 7nlo8Swiss Condensed 'il* Company made produ%ts li*e %!eese and
instant #ormulas& 0!e two %ompanies mered in 19":, t!e year a#ter Nestl added
%!o%olate to its line o# #oods& 0!e newly #ormed Nestl and 7nlo8Swiss 'il* Company
!ad #a%tories in t!e ;nited States, <ritain, Spain and =ermany& Soon t!e %ompany was
#ull8s%ale manu#a%turin in 7ustralia wit! ware!ouses in Sinapore, $on >on and
<ombay& 'ost produ%tion still too* pla%e in 3urope&
0!e start o# 2orld 2ar I made it di##i%ult #or Nestl to buy raw inredients and distribute
produ%ts& Fres! mil* was s%ar%e in 3urope, and #a%tories !ad to sell mil* #or t!e publi%
need instead o# usin it as an inredient in #oods& Nestl pur%!ased several #a%tories in t!e
;&S& to *eep up wit! t!e in%reasin demand #or %ondensed mil* and dairy produ%ts via
overnment %ontra%ts& 0!e %ompany(s produ%tion doubled by t!e end o# t!e war& 2!en
#res! mil* be%ame available aain a#ter t!e war, Nestl su##ered and slipped into debt&
0!e pri%e o# inredients was in%reasin, t!e e%onomy !as slowed and e)%!ane rates
deteriorated be%ause o# t!e war&
7n e)pert ban*er !elped Nestl #ind ways to redu%e its debt& <y t!e 19?"s Nestl was
%reatin new %!o%olate and powdered beverae produ%ts& 7ddin to t!e produ%t line on%e
aain, Nestl developed Nes%a# in t!e 19@"s and Nestea #ollowed& Nes%a#, a soluble
powder, revolutionized %o##ee drin*in and be%ame an instant !it&
Nestl %ontinued to prosper, merin wit! 7limentana S&7&, a %ompany t!at
manu#a%tured soups and seasonins, in 1954& In t!e %omin years, Nestl a%Auired Crosse
B <la%*well, Findus #rozen #oods, +ibby(s #ruit Cui%es, and Stou##er(s #rozen #oods&
Nes%a# instant %o##ee sales Auadrupled #rom 196" to 1945, and t!e new te%!noloy o#
#reeze8dryin allowed t!e %ompany to %reate a new *ind o# instant %o##ee, w!i%! t!ey
named 0aster(s C!oi%e&
<y t!e 198"s Nestl !ad a new C!ie# 3)e%utive D##i%er& 0!e %ompany #o%used on
improvin its #inan%ial situation and %ontinuin to e)pand& In t!e one o# t!e larest
ta*eovers at t!at time, Nestl bou!t Carnation #or E@ billion and parted wit! any
unpro#itable businesses& International trade barriers diminis!ed in t!e 199"s, openin
trade wit! parts o# 3urope and C!ina& In t!e 199"s Nestl a%Auired San Fellerino, and
Spillers Fet#oods o# t!e ;>& 2it! t!e a%Auisition o# Galston Furina in ?""?, t!e Nestl8
owned pet %are businesses Coined to #orm t!e industry leader Nestl Furina FetCare& 0!e
leadin in t!e #ood industry, Nestl brins in E81 billion in overall sales and !as 54"
#a%tories around t!e world& Nestl will %ontinue to row, introdu%e new produ%ts and
renovate e)istin ones& 0!e %ompany(s mission is to #o%us on lon8term potential over
s!ort8term per#orman%e&
Product
Nestle believe t!at all #oods and beveraes %an be enCoyable and play an important role in
a balan%ed and !ealt!y diet and li#estyle&
0!e brands and produ%ts a%%ompany %onsumers( lives #rom birt! t!rou! adult!ood,
#rom brea*#ast to dinner, at !ome and elsew!ere& 2e wor* to ensure t!e same level o#
%ommitment to Auality, taste and nutrition a%ross all our produ%ts, to tou%! lives in a
positive way and %ontinually earn %onsumers( trust&
0!e nutrition, !ealt! and wellness stratey is based on t!ree #undamental belie#s:
Pleasure and health: 2e believe t!at nutrition must !ave reat taste i# it is to be
enCoyed as part o# a !ealt!y balan%ed diet& Feople want t!eir #ood to be bot!
enCoyable and !ealt!y, so i# we are to win t!eir pre#eren%e our produ%ts must
deliver in bot! taste and nutrition& 0!is is %!allenin, and our team o# !i!ly
Auali#ied s%ientists and resear%! e)perts !as an obCe%tive to ensure our produ%ts
a%ross di##erent %ateories not only taste better but also !elp people lead a
!ealt!ier li#estyle&
Eating with moderation and balance: 2e en%ourae responsible nutrition,
moderation and variety in #ood !abits& 0!ere is no su%! t!in as bad #ood, w!et!er
sweet or savoury, #res! or #rozen& 'oderation and variety are two *ey
%omponents o# an enCoyable, !ealt!y and balan%ed diet& Dur produ%t rane is
desined to in%lude a reat variety o# %!oi%es #or every moment o# t!e day and #or
all #amily membersH we invite people to dis%over all t!e alternatives and interate
t!em in t!eir diets in a balan%ed way&
Transparent communication: Nestle s!are wit! %onsumers t!e nutritional
%ontent and value, in%ludin enery, suar, salt, #at, protein and #ibre %ontent o#
our produ%ts& 2e believe bein transparent is t!e best way to win trust& Clear,
user #riendly, easy8to8understand nutrition in#ormation is !i!li!ted %onsistently
on billions o# pa%*s bou!t daily around t!e world& 0!is in#ormation is in%luded
in t!e Nestl Nutritional Compass&
Dur lon term %ommitment is to enable people to ma*e in#ormed %!oi%es about
t!eir diets and li#estyle, !elpin t!em %are #or t!emselves and t!eir #amilies&
Product
0!e #ollowin are some o# t!e >rispy >reme produ%t sold at every o# its store:
No. Product Example and description Product diagram
1.
<aby #oods 7 rane o# nutritious, easily8
diested instant %ereals #or
in#ants #rom si) mont!s
onwards&

?&
<ottled water 0!e ultimate spar*lin water
re#res!ment I a uniAue
balan%e o# minerals and a
li!t e##erves%ent taste&
@&
Cereals <rea*#ast %ereal made wit!
w!ole rain and 1" vitamins
and minerals, in%ludin
%al%ium #or a sensible, reat8
tastin start to t!e day&
5&
C!o%olate B
%on#e%tionery
1eli!tin %onsumers all
over t!e world, >it>at is a
#avourite %!o%olate treat
t!an*s to li!t wa#ers and
deli%ious %!o%olate&
:&
Co##ee 0!e world(s most trusted and
enCoyed %o##ee 8 ri%! in
natural oodness, #lavour and
%onvenien%e&
6&
Culinary, %!illed B
#rozen #ood
In 196", in t!e
small ;S town o# +ittle
C!ute, 2is%onsin, a man
named 6a%* !ad a vision to
%reate t!e per#e%t
pizza&&& 6a%*(s pizza was
born&
4&
1airy 7 deli%ious alternative to
%ream #or %reatin your
#avourite meals and treats&
7nd a ood sour%e o#
%al%ium&
8&
1rin*s 1rin* upJ 0asty and
trusted,'ilo enery drin*
o##ers essential vitamins and
minerals to meet t!e
demands o# little bodies and
minds&
9&
Food servi%e Kui%* and easy solutions 8
li*e bouillons, soups and
seasonins, to !elp %!e#s and
pro#essional *it%!ens brin
out t!e #lavour and nutrition
o# #res! #ood inredients&
1"&
$ealt!%are nutrition ;sed in !ealt!%are #or total
or supplementary nutrition
#or %!ildren w!o are
strulin to et t!eir
nutrient reAuirements #rom
reular #ood&
11& I%e %ream 7 wonder#ully %onvenient
and deli%ious %one& 7
balan%e o# taste and te)ture
wit! t!e deli!t o# a
%!o%olate8#illed tip&
1?& Fet%are =ive your %at everyt!in s!e
wants I reat taste, nutrition
and an unbelievable sele%tion
o# #lavours& 2it! Fris*ies %at
#ood, it(s easy to !elp your
%at live li#e to t!e #ullest&
1@& 2ei!t
manaement
7 medi%ally monitored
wei!t loss proramme t!at
is %lini%ally proven to !elp
people lose wei!t and *eep
it o## #or t!e lon term&
Process
Nestle produ%ed many produ%ts and ea%! pro%esses are varies dependin on t!e produ%t
reAuirement& 0!e #ollowin are t!e e)ample o# pro%ess #low #or Neslte Cui%e:
Gaw
'aterial
GeCe%t
Frodu%tion
Storae
N L
<oiler
Flate $eat
3)%!aner
Storae and
S!ippin
6ui%es
'i)in 0an*
Freservatives
6ui%es
'i)in 0an*
Syrup Storae
0an*
Fasteurizers
6ui%e Storae
0an*
<ottledM
Fa%*aedM
+abeled
<ul*
0ransport
Finis!ed
Frodu%t in
%old storae
0ransport Getailer 2!olesaler
Process Analysis
Cycle time
In a repetitive pro%ess t!e averae time between t!e %ompletions o# su%%essive units is
%alled %y%li% time& For Nestle 9" min is bat%! preparation time& 6" min is t!e pro%ess time
and 4: min pa%*in time& ,<at%! o# 1:""" +iters/&
Bottlenec
0!e limitin #a%tor or t!e %onstraint in t!e pro%ess is %alled bottlene%*& In Nestle Cui%es
<at%! ma*in is t!e bottle ne%*& 2!at s!ould be t!e size o# bat%!N 7not!er bottlene%* is
mi)in plant& It ta*es t!e larest amount o# time&
E!!iciency
It is t!e ratio o# a%tual output o# a pro%ess relative to some standard input& Fa%*in
ma%!ine at 1"" O e##i%ien%y produ%es 4""" pa%*s in 1 !our& 7t Nestle t!e pa%*in
ma%!ine e##i%ien%y is 9:O&
"un time
It is t!e time reAuired to produ%e a bat%! o# parts& 0!is is %al%ulated by multiplyin t!e
time reAuired to produ%e ea%! unit by t!e bat%! size& I# t!e ma%!ine produ%es 4""" pa%*s
in 6" mins, t!en it ta*es "&:15 se% to produ%e one pa%*& So t!e bat%! will be %ompleted in
@8:: se%s, i# pa%*ed on two similar ma%!ines& 0!is will ma*e in total 1:""" pa%*s&
#etup time
It is t!e time reAuired to prepare a ma%!ine to ma*e a parti%ular item& For Nestle 6ui%es,
@&: !rs& is t!e setup time& ,Sum o# CIF and sterilization pro%esses/
$peration time
It is t!e sum o# t!e setup time and run time #or a bat%! o# parts t!at are run on a ma%!ine&
For Nestle it is ?1" P 4: Q ?8: min
Through put time
It in%ludes t!e time t!at t!e unit spends a%tually bein wor*ed on toet!er wit! t!e time
spent waitin in a Aueue& For Nestle 6ui%es it is 9" mins ,<at%! ma*in time/ P 6" mins
, pro%ess time/ P 4: mins ,#illin time/ Q ??: mins
Nestle and Environmental
7t Nestl, t!e re%onised world(s leadin Nutrition, $ealt! and 2ellness %ompany, we
believe t!at to be su%%ess#ul over t!e lon8term we need to %reate value #or our
s!are!olders and #or so%iety as a w!ole& 2e %all t!is Creatin S!ared Value ,CSV/& 7s
an essential prereAuisite #or CSV we not only !ave to %omply wit! all appli%able leal
reAuirements and 0!e Nestl Corporate <usiness Frin%iples but also ensure t!at t!e
prin%iple o# sustainable development is embedded in our a%tivities, brands and produ%ts&
0!is means prote%tin t!e #uture by ma*in t!e ri!t %!oi%es in an environment w!ere
water is in%reasinly s%ar%e, natural resour%es are %onstrained and biodiversity is
de%linin& 7ll o# t!ese elements are vital #or #eedin a rowin world population and #or
t!e development o# Nestl& 'oreover, %limate %!ane may e)a%erbate our Flanet(s
environmental %!allenes& Nestl is t!ere#ore %ommitted to:
#ull %omplian%e wit! all appli%able leal environmental reAuirements and our
internal reAuirements w!ere spe%i#i% environmental leislation is non8e)istent or
insu##i%ientH
t!e %ontinual improvement o# t!e environmental per#orman%e o# our a%tivities,
produ%ts and servi%es and prevention o# pollution t!rou! t!e Nestl
3nvironmental 'anaement System ,N3'S/ w!i%! %omplies wit! t!e
international ISD 15""1 standardH
t!e systemati% assessment and optimisation o# environmental impa%ts in t!e
desin o# new and renovated produ%tsH
t!e responsible sour%in o# inredients, pa%*ain materials and ot!er oods and
servi%es #rom suppliers w!o %omply wit! t!e Nestl Supplier Code and
demonstrate %ontinual improvement o# t!eir environmental per#orman%eH
so t!at Nestl(s produ%ts will be not only tastier and !ealt!ier but also better #or t!e
environment alon t!eir value %!ain& Commitment o# t!e C3D to environmentally
sustainable business pra%ti%es
0!is also means deli!tin %onsumers by ivin t!em anot!er reason to trust Nestl and
enCoy our produ%ts, and livin up to employees( and e)ternal sta*e!olders( e)pe%tations
about our environmental responsibility and pra%ti%es& Nestl is t!ere#ore %ommitted to:
meanin#ul and a%%urate environmental in#ormation and dialoue based on
s%ienti#i% eviden%e about our produ%ts, a%tivities and servi%es at %orporate, mar*et
and produ%t brand levelH
independent environmental auditin, veri#i%ation and %erti#i%ation o# our pra%ti%es
and alon our supply %!ainH
environmental awareness trainin and edu%ation #or our employees, alonside
e##e%tive %ommuni%ation wit! employees and re%onition o# t!eir initiatives and
a%!ievements towards environmental improvementH
proa%tive lon8term enaement and partners!ips wit! sta*e!olders, in%ludin
reulators, s%ientists, %ustomers, business partners, %ivil so%iety oranisations and
t!e
%ommunity, in order to de#ine, implement and evaluate solutions to t!e %omple)
environmental %!allenes we are #a%in&
Smarter distribution
'ore t!an 1?:,""" tonnes o# Nestl produ%ts are transported to %ustomers #rom our
#a%tories and distribution %entres every day&
2e(ve #ound t!at smarter route plannin and s!i#tin to di##erent modes o# transport %an
!ave a mar*ed positive impa%t on reen!ouse as emissions, noise and road %onestion&
In Foland we manaed to de%rease =$= emissions by a #i#t! last year by relo%atin one
o# our distribution %entres& 0!e move also lowered distribution %osts by a Auarter and %ut
6" *m o## ea%! domesti% delivery Courney&
7%ross 3urope in ?"11 we a%!ieved a redu%tion o# more t!an :,""" tonnes
o# CD? emissions by swit%!in #rom lon8distan%e road transportation to eit!er rail or
s!ort8sea s!ippin&
Optimising packaging
In t!e ;nited >indom, we e)pe%t to !alve t!e number o# lorries used to
distribute Nes%a# by introdu%in new li!ter8wei!t %o##ee re#ill pa%*s&
0!e new pa%*s are made #rom a %ombination o# aluminium8#oil and plasti% #ilm& 0!ey
use more t!an a t!ird #ewer pa%*ain materials t!an be#ore but still !old t!e same
amount o# %o##ee&
0!is means we %an double t!e volume o# %o##ee pa%*s on a pallet, usin #ewer lorries and
redu%in =$= emissions #rom produ%t distribution by more t!an a t!ird&
0!e new pa%*s also reAuire less water and enery to manu#a%ture %ompared wit! t!e
previous re#ill pa%*& 0!eir %ompa%t size ma*es t!em easier #or retailers to sta%* on
s!elves and #or s!oppers to %arry and store at !ome&
Eliminating waste
Gedu%in waste !elps to %onserve natural resour%es& Sin%e ?""?, we(ve redu%ed t!e
amount o# waste #or disposal we enerate in our #a%tories by almost !al# per tonne o#
produ%t& +ast year, @9 o# our #a%tories a%!ieved zero waste #or disposal&
0!e #a%tories pro%ess by8produ%ts #rom t!e manu#a%turin pro%ess #or use in #arm animal
#eed, %ompostin or ma*in bioas& +e#tover metals, plasti%s, paper, %ans and %ardboard
are pro%essed by our %ontra%tors and be%ome raw materials t!at %an be used #or new
purposes&
Furt!er up t!e value %!ain, we(re trainin #armers to improve %rop Auality and storae to
redu%e #ood losses in ari%ulture and post8!arvestin, and to #oster more sustainable
#armin pra%ti%es in eneral&
Helping consumers
7t t!e same time we(re !elpin %onsumers to improve t!eir own environmental impa%t,
su%! as %uttin down on t!e amount o# #ood t!ey t!row away by providin various
portion size options, %lear portion uidan%e and preparation instru%tions&
For e)ample, did you *now t!at boilin t!e water #or a %up o# Nes%a# is t!e most
resour%e intensive step in t!e w!ole value %!ainN
'any people tend to boil more water t!an needed& Individually, t!is may seem neliible,
but i# all :,:"" people w!o prepare a %up o# Nes%a# every se%ond boiled t!e %orre%t
amount o# water, it would save more enery t!an t!at used by all ?4 o#
our Nes%a##a%tories&
Frodu%t li#e %y%le assessments we(ve %ondu%ted s!ow t!at t!an*s to t!e e##i%ien%y o# our
!i!8te%! industrial %o##ee ma%!ines in t!ese #a%tories, produ%in a %up o#Nes%a# uses
only !al# t!e total resour%es reAuired to produ%e a traditional %up o# #ilter %o##ee&