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NAME:
UNIV R.NO.
A STUDY OF PRACTICES IN
INDUSTRIAL PERFORMANCE
DEPARTMENT OF NESTLE INDIA
TAHLIWAL PLANT
PREFACE
I, ASHUTOSH SHARMA student of MBA of Govt. College Una H.P. is going to present my
project on NESTLE Indias Tahliwal Factory.
My project provides complete information about my topic" A STUDY ON THE
INDUSTRIAL PERFORMANCE COMPONENTS
INDUSTRIAL PERFORMANCE (IP) supports in delivering optimal performance to
manufacture products with the prescribed quality at the lowest cost.
In this report I have mentioned the various tools and techniques which are used in
INDUSTRIAL PERFORMANCE to ensure the effectiveness with an effective SWOT
analysis and Internal Factor Evaluation Matrix (IFE) of the Nestle India, Tahliwal Plant
(Himachal Pradesh).
ACKNOWLEDGEMENT
I would like to gratefully acknowledge the contribution of those who played important part
and provided valuable support to me during the course of this project.
I would like to thank those people who helped me in completing my project.
I would like to express gratitude to Mr. JATINDER SINGH RATHORE (Industrial
Performance, Head of the Department). Also, I want to give special thanks to Mrs. TRIVENI
GAUTAM (Industrial Performance Department), for their guidance, support and valuable
suggestions during the period. Without their supervision, project could have not been
completed.
My heartfelt thanks also go to entire INDUSTRIAL PERFORMANE department team for
their assistance and willingness towards reply all my queries.
CERTIFICATE
INDEX
S. NO.
TITLE
PREFACE
ACKNOWLEDGEMENT
CERTIFICATE
CHAPTER 1: INTRODUCTION
CHAPTER 4: FINDINGS
CHAPTER 5: SUGGESTION/CONCLUSION
BIBLIOGRAPHY/REFERENCES
PAGE NO.
CHAPTER 1
INTRODUCTION
COMPANY PROFILE
1997, respectively; and Pantnagar (Uttarakhand), in 2006. In 2012, Nestl India set up its 8th
manufacturing facility at Tahliwal (Himachal Pradesh).
The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate the sales
and marketing activities. The NESTL Indias Head Office is located in Gurgaon, Haryana
HEAD OFFICE
REGISTERED OFFICE
NESTL HOUSE,
COMPANY PROFILE
NESTL India is a subsidiary of NESTL S.A. of Switzerland. With eight factories and a
large number of co-packers, Nestl India is a vibrant Company that provides consumers in
India with products of global standards and is committed to long-term sustainable growth and
shareholders
satisfaction.
The Company insists on honesty, integrity and fairness in all aspects of its business and
expects the same in its relationships. This has earned it the trust and respect of every strata of
society that it comes in contact with and is acknowledged amongst India's 'Most Respected
Companies' and amongst the 'Top Wealth Creators of India'.
NESTL's relationship with India dates back to 1912, when it began trading as The NESTL
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market. Mr Suresh Narayanan is the Chairman and Managing
Director of Nestle India Limited.
After India's independence in 1947, the economic policies of the Indian Government
emphasised the need for local production. NESTL responded to India's aspirations by
forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the
Government wanted NESTL to develop the milk economy.
NESTL has been a partner in India's growth for over a century now and has built a very
special relationship of trust and commitment with the people of India. The Company's
activities in India have facilitated direct and indirect employment and provides livelihood to
about one million people including farmers, suppliers of packaging materials, services and
other goods.
The Company continuously focuses its efforts to better understand the changing lifestyles of
India and anticipate consumer needs in order to provide Taste, Nutrition, Health and Wellness
through its product offerings. The culture of innovation and renovation within the Company
and access to the NESTL Group's proprietary technology/Brands expertise and the
extensive centralized Research and Development facilities gives it a distinct advantage in
these efforts. It helps the Company to create value that can be sustained over the long term by
offering consumers a wide variety of high quality, safe food products at affordable prices.
NESTL India manufactures products of truly international quality under internationally
famous brand names such as MAGGI, MUNCH, NESTCAFE etc.
NESTLE PLANT AT TAHLIWAL, DISTRICT UNA, HIMACHAL PRADESH:
Nestl India set up its 8th manufacturing facility at Tahliwal (Himachal Pradesh).
NESTL MUNCH is the countrys most loved coated wafer product. Available throughout
stores across the country, every variant of NESTL MUNCH is a delicious crunchy treat for
fans.
Presenting the all-new MUNCH NUTS which has crunchy wafer, delicious peanut creme and
roasted peanut bits. A first-of-its-kind product, one bite and Youll go nuts about it!
Nestl Tahliwal factory has 6 major departments. It deals with all factory operations.
1.) Finance
2.) Human Resource (HR)
3.) Industrial Performance (IP)
4.) Supply Chain Management (SCM)
5.) Production Culinary (Noodles)
6.) Production Chocolate ( Munch & Munch Nuts )
7.) Quality Assurance (QA)
VISION:
Nestl's vision is "to be a leading, competitive, nutrition, health and wellness company
delivering improved shareholder value by being a preferred corporate citizen, preferred
employer, and preferred supplier selling preferred products.
MISSION:
Nestles mission of 'Good Food, Good Life' is to provide consumers with the best tasting,
most nutritious choices in a wide range of food and beverage categories and eating occasions,
from morning to night."
These statements reflect the company's long-term business strategy. In keeping with its
claimed commitment to nutrition, Nestl has invested in scientific research on nutritional
aspects of the kinds of products it sells. For example, it has studied the effects of chocolate on
metabolism and gut bacteria. The Economist describes this as a potentially risky strategy; by
investing in research and development, the company is "playing a long game," in contrast to
the short-term strategies of some of its competitors.
Nestl has also made an effort to practice "corporate citizenship." It has been involved in a
number of efforts to promote good agricultural and environmental practices, such as the
World Cocoa Foundation, which is "committed to creating a sustainable cocoa economy by
putting farmers first - promoting agricultural and environmental stewardship, and
strengthening development in cocoa-growing communities."
ABOUT
THE
PERFORMANCE
DEPARTMENT
IN
(HIMACHAL PREADESH)
NESTLE
OF
PLANT,
INDUSTRIAL
TAHLIWAL
CHAPTER 2
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
The study of conducting research is Research Methodology. Research: The word research is
composed of two syllables Re and Search. Re is the prefix meaning Again or over
again or a new and Search is the latter meaning to examine closely and carefully or to
test and try.
Together they form, a careful, systematic, patient study and investigation in some field of
knowledge undertaken to establish principles / policies.
Research can also be defined as
1. Search for knowledge
2. Systematic and scientific search for getting relevant answers on any specific topic.
3. Scientific enquiry into a subject.
4. Research is a movement from the unknown to the known.
When we talk of Research Methodology, we not only talk of research methods but also
consider the logic behind the methods we use in the context of our research study and explain
why we are using a particular method or technique so that research results are capable of
being evaluated either by the researcher or others.
In Research Methodology, researcher always tries to search the given question systematically
in our own way and find out all the answers till conclusion. If research does not work
systematically on problem, there would be less possibility to find out the final result. For
finding or exploring research questions, a researcher faces lot of problems that can be
effectively resolved with using correct research methodology
TYPE OF RESEARCH
Exploratory Research
CHAPTER 3
ON THE JOB TRAINING EXPERIENCE
&
DATA ANALYSIS
1. INDUSTRIAL PERFORMANCE:
DEFINITION: Industrial performance can be defined in terms of numerous criteria to be
synthesized for global control purposes, many of them being of a complex nature, i.e. not
related to one elementary physical measure. Industrial Performance is related to number of
KPIs. Key Performance Indicators (KPI) are a set of quantifiable measures that a company
uses to scale its performance over time. These metrics are used to determine a company's
progress in achieving its strategic and operational goals, and also to compare a company's
finances
and
performance
against
other
businesses
within
its
industry.
PURPOSE: People credited with this unit standard are able to: follow the approved routine
maintenance schedule for a food processing machine; inspect and maintain the various
systems of the machine and associated support equipment; ensure safety devices are working;
care for gauges and instruments available in the workplace; follow a preventive maintenance
programme; and follow procedures for disposal of waste material.
JOB DESCRIPTION OF AN INDUSTRIAL PERFORMANCE SPECIALIST IN
NESTLE (ROLES AND RESPONSIBILITIES)
1. Provide methods and tools for improvement of practices and optimizing factory
performance.
2. Assistance for factory, line, machine layout and design and optimize planning by providing
proposals
to
determine
least
cost
production
scenarios.
3. Promote the application of improvement initiatives and best practices in the markets and
provide training as required and exchange of know-how to achieve improved business
performance.
Projects
and
provide
other
focused
improvement
support.
6. Organize & Review (DOM) with Production, Engineering, QA, and Application Group to
ensure appropriate use of information systems in the manufacturing environment to obtain
maximum benefit through.
A.
B.
C.
D.
E.
F.
A.
Standard Routine
Breakdown Analysis (BDA)
Go See Think Do (GSTD)
Daily Operations Review (DOR)
Weekly Operations Review (WOR)
Monthly Operations Review (MOR)
STANDARD ROUTINE
For Standard Routine, SOP is followed. Standard Operating Procedure (SOP) is a set of
written instructions that document a routine or repetitive activity followed by an organization.
Well-written SOPs should first briefly describe the purpose of the work or process, including
any regulatory information or standards that are appropriate to the SOP process, and the
scope to indicate what is covered. The development and use of SOPs are an integral part of a
successful quality system as it provides individuals with the information to perform a job
properly, and facilitates consistency in the quality and integrity of a product or end-result e.g.
possible
interferences,
required
equipment,
personnel
qualifications,
and
safety
considerations. The development and use of SOPs minimizes variation and promotes quality
through consistent implementation of a process or procedure within the organization, even if
there are temporary or permanent personnel changes.
In every organisation continuous production is required to meet the demand of the market, so
to make the continuous production machines plays very important role. Breakdown in a
machine will decrease the production. So the BREAKDOWN ANALYSIS is done to find the
accurate reason of the breakdown during production process.
Procedure of BREAKDOWN ANALYSIS
Analysis Date
Breakdown Description
Machine ( Where breakdown happened )
Shift Number ( In which shift breakdown was happened )
Responsible person or cause
Root cause
Status ( what action was taken against the problem )
GO-SEE : In this first part, go to place where the project is based with a group of
cost-benefit.
DO : In this step working on the action is started to solve the problem.
In the evening it is reviewed that what has done today and what has not done, does it there or
move.
E. WEEKLY OPERATIONS REVIEW (WOR)
Purpose: Re-prioritizing projects and clearing all inbox in preparation for the week.
Tasks:
When: Once in the month ( first week of the month or depending on time and style)
Purpose: Balancing attention and effort with roles and priorities, broader
prioritization picture across circles and roles, and clarifying working relationships
and processes
Tasks:
2.
NESTL
CONTINUOUS
EXCELLENCE
(NCE):
FOUNDATIONS OF NCE
1. Compliance
2. Leadership Development
3. Goal Alignment
PILLARS OF NCE
1. Autonomous Maintenance
2. Planned Maintenance
3. Focused Improvement
4. Education & training
5. Safety, Health & Entertainment
6. Quality
7. Early Management
8. Lean Design
9. Lean Office
10.
Lean Value Stream
5 WHY ANALYSIS: The 5 why is a technique used in the Analyze phase of the Six Sigma
DMAIC (Define, Measure, Analyze, Improve, and Control) methodology.
5 why analysis is used to go deeper to find and verify the root cause.
In 5 why analysis the answer of 1st why will become the question of 2nd why and so
on.
Figure: 2
CQI is a management philosophy which contends that most things can be improved. This
philosophy does not subscribe to the theory that if it aint broke, doesnt fix it. It is a set
of concepts, principles and methods developed from quality principles proposed by early
quality gurus, W. Edwards Deming, Joseph Juran, Philip Crosby, Brian Joiner, and others.
These CQI principles, tools, and techniques have been found to work effectively in
manufacturing industries. They have recently been found to also effectively work in
human service industries, including healthcare.
At the core of CQI is serial experimentation (the scientific method) applied to everyday
work to meet the needs of those we serve and improve the services we offer.
Most problems are found in processes, not in people. CQI does not seek to blame, but
rather to improve processes.
Continuous improvement is most effective when it becomes a natural part of the way
everyday work is done.
or solutions.
Multivoting Rating for consensus
To allow a team to quickly come to consensus on the importance of issues, problems,
or solutions.
Cause & Effect/Fishbone Diagram - Find and cure causes, NOT symptoms
To identify, explore, and graphically display, in increasing detail, all of the possible
causes related to a problem or condition to discover its cause(s).
Storyboard
A communication vehicle to display improvement efforts to alert others of changes
being tested or carried out.
DEFINITION: The fishbone diagram or Ishikawa diagram as named after its creator Kaoru
Ishikawa is a way to represent cause and effect. The effect forming the head of the fishbone
and the potential causes forming the skeleton behind. It is a structured way to represent the
results of a brainstorm in specific categories that contribute to problems, Man, Method,
Machine, Materials, Metrics, and Mother Nature being the usual areas that the ideas are
broken down into. A fishbone diagram, also called a cause and effect diagram is a
visualization tool for categorizing the potential causes of a problem in order to identify its
root causes.
Analysis needs to examine where the organization is today, and where it may be positioned in
the future.
SWOT analysis needs to be kept specific by avoiding gray areas and analysing in relation to
the competition. For example, how do the organizations products and services compare to
the competitions? SWOT analysis should be short and simple, and should avoid complexity
and over-analysis, as much of the information is subjective. Thus, use it as a guide and not a
prescription.
Strengths and Weaknesses
Strengths describe what an organization excels at, allowing decisions on how to gain a
competitive advantage. For example, a hedge fund may have developed a proprietary trading
strategy that returns superior results in comparison to its competitors. It must then decide how
to use those superior results to attract new investor capital.
Weaknesses stop an organization from performing at its optimum level. They have the
potential to reduce progress or to give a competitive edge to the competition. An organization
needs to minimize weaknesses and analyse how they can be improved. An inadequate supply
network or lack of capital is example of weaknesses.
Opportunities and Threats
Opportunities refer to favourable external factors that an organization can use it its advantage.
If utilized effectively, opportunities have the potential to create a competitive advantage. For
example, a car manufacturer may be able to export its cars into a new market if tariffs in a
country are substantially reduced. This is likely to increase sales and market share, which
may create a competitive advantage in terms of scale.
Threats refer to factors that have the potential to negatively impact an organization. For
example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the
yield of a wheat crop. Market share is likely to be lost if a competitor has not diversified
operations in terms of location. It is prudent for an organization to have a comprehensive
contingency plan that addresses possible risks and specifies how to deal with them.
Thus, SWOT analysis of Nestle Plant, Tahliwal reflects that Nestle has high brand value and
strong financial base. Overcoming its weaknesses as nowadays, ill effects of Maggi has been
highlighted; company has to overcome with strong quality control and positive advertisement
as Maggi is the most popular product of Nestle in North India. Company can go for tie ups
and it can launch more products by carrying out proper Research and Development in this
area.
INTERNAL FACTORS
Internal factors are the outcome of detailed internal audit of a firm Obviously, every company
have some weak and strong points, therefor the internal factors are divided into two
categories namely strengths and weakness.
Strengths
Strengths are the strong areas or attribute of the company, which are used to overcome
weakness and capitalize to take advantage of the external opportunities available in the
industry. The strengths could be tangible or intangible; such as brand image, financial
position, income, human resource.
Weaknesses
Weaknesses are the risky areas which needs to be addressed on priority to minimize its
impact. The competitors always searching for the loop holes in your company and put their
best effort to capitalize on the identified weaknesses.
The strengths and weaknesses are organized in IFE matrix in different portions mean all
strengths are listed first under internal factors and then comes the internal weakness. In case
if all the factors are listed altogether then the rating will help you out to identify internal
strength and weakness.
RATING
In IFE, Rating is the way out to differentiate internal strengths and weakness. Internal
weakness is further divided in two categories namely minor weakness and major weakness
same goes of the strengths (minor strength and major strength)
There are some important points related to rating in IFE matrix.
Major weakness needs company attention to change into minor weakness then strength and
finally major strength. As compared to major strength minor weakness need little efforts of
the company to change it into strength. The range of rating start from minimum 1.0 which is
worst and maximum 4.0 which is the best factor of the company.
WEIGHT
Weight attribute in IFE matrix indicates the relative importance of factor to being successful
in the firms industry. The weight range from 0.0 means not important and 1.0 means
important, sum of all assigned weight to factors must be equal to 1.0 otherwise the
calculation would not be considered correct.
WEIGHTED SCORE
Weighted score value is the result achieved after multiplying each factor rating with the
weight.
TOTAL WEIGHTED SCORE
The sum of all weighted score is equal to the total weighted score, final value of total
weighted score should be between range 1.0 (low) to 4.0(high). The average weighted score
for IFE matrix is 2.5 any company total weighted score fall below 2.5 consider as weak. The
company total weighted score higher than 2.5 is consider as strong in position.
Strengths
Weakness
Expensive products
Negative publicity
WEIGHT
RATING
WEIGHTD
SCORE
WEAKNESSES
Negative Publicity
0.15
1.0
0.15
0.10
1.0
0.10
0.08
2.0
0.16
Expensive Products
0.06
2.0
0.12
0.06
3.0
0.18
0.08
3.0
0.24
Strong Management
0.12
4.0
0.48
0.15
4.0
0.60
0.20
4.0
0.80
TOTAL
1.00
STRENGTHS
2.83
CHAPTER 4
FINDINGS
FINDINGS
Nestle India Limited build trust by offering products and services that match
consumer expectation and preference.
It complies with all internal and external food safety, regulatory and quality
requirements.
It guarantees food safety and full compliance by respecting the policies, principles
and standards with full transparency,
The company strives for zero defects and no waste by constantly looking for
opportunities to apply our continuous improvement approach to deliver competitive
advantage.
CHAPTER 5
SUGGESTION/CONCLUSION
SUGGESTION/CONCLUSION
During my training session, I have experienced that nestle never compromise with the
quality of the product, and it makes Nestle different from their competitors. Nestle serves
international quality products with international standards.
Nestle organise many cultural and sports activities to their employees during lunch break
to motivate them.
Industrial Performance department helps to maintain that international level quality and
standards.
Industrial Performance department ensures that whether all the standards which are given
by govt. or company are being followed.
Now at the end I would like to conclude that Industrial Performance department is very
essential for the growth of the organisation. It helps to maintain the standards in budgeted
cost.
BIBLIOGRAPHY
REFERENCES
BIBLIOGRAPHY/REFERENCES
Nestle India
https://www.nestle.in
https://www.nestle.in/aboutus/websites-social-media
https://www.nestle.in/brands/pdca
https://www.nestle.in/brands/chocolatesandconfectionery
http://www.nestle.com/aboutus/quality-and-safety
Wikipedia
https://en.wikipedia.org/wiki/Nestl%C3%A9
Prezi
https://prezi.com/j3v1dkjlxprc/application-of-total-quality-management-at-nestle/