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Since it began over 130 years ago, Nestlé’s success with product innovations and business acquisitions has turned it into the largest Food Company in the world. As the years have passed, the Nestlé family has successfully grown to include soups, coffee, cereals, frozen products, chocolates, yoghurts, mineral water and other food products. In the beginning in the 70s, Nestlé has continued to expand its product portfolio to include pet foods, pharmaceutical products and cosmetics as well.
Nestlé wants to be known as a ‘Respected, Trustworthy, Food, Nutrition, Health and Wellness Company’. All the actions are guided by a series of business principles. Market research showed that customers of Nestlé have a genuine and growing interest in information about its brands. In particular, consumers want more information about what they eat and drink. They felt this information should be supplied as part of the product and they have the right to know it.
So, in this assignment, we will discuss about the quality management of nestle. Quality management can be divided into three components: quality control, quality assurance and quality improvement. In nestle, quality is the number one priority. Other than that, they also continuously improving their product, known as kaizen. The important of quality management to Nestle is to win customer trust and preferences, it everybody’s commitment, strive for zero defects and no waste, guarantee food safety and full compliance.
“Thinking globally – acting local”
What is Quality Management?
Quality management consists of three main components. There are quality control, quality assurance and quality improvement. Quality management is the organization activities to ensure the product is achieving the quality requirement. Therefore, in order to achieve the quality requirement, the component in quality management is used to achieve it.
Quality control is a process of review the product or service to ensure that they reach a certain standard or requirement.
From the above definition, we can say that the requirements will achieve by the done the organization activities in the process of products manufacture or services provided. To uncover defect, the organization need to monitor the standard, make measurement and take corrective action.
Quality control (QC) is a procedure to ensure that a manufactured product or performed service meets the requirements of the client or customer.
Quality assurance defined as a tool in quality system to fulfilled quality requirements of product and service by planning and systematic activities.
From the above definition of quality control, we can say that to make sure a qood quality of product and service, a set of procedures is used in the process. Besides that, this quality assurance tries to avoid and minimize the defect in process by improving and stabilizing production.
QA is refers to a set of procedures intended to ensure that product or service under development before work is done to achieves specified requirements.
Steps of Quality Assurance
ØPlan: Establish objectives and processes required to deliver the desired results.
ØDo: Implement the process developed.
ØCheck: Monitor and evaluate the implemented process by testing the results against the predetermined objectives
ØAct: Apply actions necessary for improvement if the results require changes.
Quality improvement is a continuous improving of quality in manufacturing goods or services. There are various models used and there is some quite often discussed which is:
- Six Sigma (DMAIC)
- CQI: Continuous Quality Improvement
- TQM: Total Quality Management
There are 4 broad steps to the FADE QI model:
FOCUS: Define and verify the process to be improved
ANALYZE: Collect and analyze data to establish baselines, identify root causes and point toward possible solutions
DEVELOP: Based on the data, develop action plans for improvement, including implementation, communication, and measuring/monitoring
EXECUTE: Implement the action plans, on a pilot basis as indicated, and
EVALUATE: Install an ongoing measuring/monitoring (process control) system to ensure success.
Another commonly used QI model is the PDSA cycle:
PLAN: Plan a change or test of how something works.
DO: Carry out the plan.
STUDY: Look at the results. What did you find out?
ACT: Decide what actions should be taken to improve.
Repeat as needed until the desired goal is achieved
Another model for improvement is Six Sigma. Six sigma is a statistical method based on the quality control process to improve the product process and service.
Six sigma refers to the statistical evaluation showed that the rate of 3.4 errors per million products.
To complete the process of improvement, there are two model used in Six Sigma: DMAIC and DMADV.
DMAIC (define, measure, analyze, improve, control) also pronounced, as “duh-may-ick” is an improvement system by minimize the defect in quality of product process and service and looking for incremental improvement.
DMADV (define, measure, analyze, design, verify) also pronounced, as “duh-mad-vee” is an improvement system used to develop new processor products at Six Sigma quality levels.
Total Quality Management (TQM)
TQM is a quality management process that change the whole organization based on customer oriented quality, continuous improvement, organizational involvement in processes and solving a problem in a team. This will fulfilled the customer requirement by producing the product and service, which exceeds the customer needs.
In total quality management, the customer determines the quality of output. The output with the high quality will meet the requirement and expectation of customer. From managing outcomes to managing and improving processes there are shifting in focus: from what to do to how to do the processes better. Quality performance expands to include how well the relationship of each part to the process and each part of the process works. Also, process improvement focuses on continuously achieving the greatest potential benefit for our customers.
Continuous Quality Improvement (CQI)
In improving the quality management, total quality management stress on a process of continuous improvement.
in the quality management, there are some of management principle that can be used as a guideline for upper management in improving organization performance. The are eight principles cover customer focus, leadership, involvement of people, process approach, system approach to management, continual improvement, factual approach to decision-making and mutually beneficial supplier relationships. Among from the 8 principles, we have chosen Leadership to describe in Nestlé group.
Principle : Leadership
Leadership refers to the ability to influence people to achieve the organization goals and ability to create a climate of innovation and to think outside the box. Leadership also must have willingness to accept change and the ability to manage it. At all levels, members of the Nestlé Management are more concerned with continuously adding value to the Company compared to exercising formal authority. A high involvement of each employee and a common mindset geared to results is materializing. Contributing to results through project work and special assignments becomes more frequent, reaching beyond conventional boundaries in order to contribute to wider group performance. All those issue that allows others to progress in their work and to develop their capabilities by their ability to motivate and to develop people. As well as a high level of interest in other cultures and life-styles there also curiosity and open mindedness. As well as to sharing knowledge and ideas freely with others, this also includes a commitment to continuous learning and improving.
Under traditional quality control, inspection of products and services, which is checking on the process to make sure that what’s being produced is meeting the required standard and takes place during and at the end of the operations process.
Quality Management of Nestlé
In Nestlé group, they prioritized quality. There are over ten million people through out the world enjoying Nestlé’s products each and everyday. Nestlé conducts business on a global scale; everyone pays careful attention to the cultural bias and personal tastes of each country, because each food culture is based on the distinct characteristics of that particular region. However, it will not going to be too far in the pursuit of food safety and quality management. Nestlé has attained a world-class level by applying “Nestlé Quality Management System” to all their products. Nestlé respects to all relevant laws and regulations of each country, but also implements their own independent high standards of total quality management throughout every aspect of the manufacturing process, from raw materials to end products, in order to consistently bring safe and quality products to consumers around the globe.
Furthermore, they are continuously “improving” their products (KAIZEN) in the global network, which the headquarters of the quality management department in Switzerland, and through the performance of regular inspections that ensure their quality management system is functioning at the highest level.
What is Kaizen?
Kaizen (Japanese for “improvement” or “change for the better”) refers to practices on continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. It also applies to processes, such as purchasing and logistics that crosses organizational boundaries into the supply chain. By improving standardized activities and processes, kaizen aims to get rid of waste. After the Second World War, Kaizen was first implemented in several Japanese businesses influenced in part by American business and quality management teachers who visited the country. And now, it has spread throughout the around world.
The importance of quality in Nestle
Quality is the foundation of Nestlé food, nutrition, health and Wellness Company
Nestlé strives to create value that can be sustained over the long term by meeting consumer needs for nutrition, enjoyment and Quality they can trust. Everyday, millions of people all over the world show their confidence in us by choosing Nestlé products and brands. This confidence is based on our Quality image and a reputation for high standards that has been built up over many years. Every product on the shelf, every service and every customer helps to shape this image. A Nestlé brand name on a product is a promise to the customer that it is safe to consume, that it complies with all relevant laws and regulations and that it constantly meets high standards of Quality. Each and every Nestlé employee is involved in and dedicated to achieving high Quality standards for our customers and consumers.
Quality is to win consumer trust and preference
They are committed to offering products and services to their customers and consumers that meet their needs have their preference and provide sound nutrition. Nestlé wants to win the trust of their customers and consumers by continuously listening to them by understanding their expectations and consistently satisfying their needs and preferences. Their customers and consumers are at the center of their attention and they recognize their legitimate interest in the behavior, beliefs and actions of Nestlé behind brands in which they place their trust.
Quality is everybody’s commitment
Demonstrates its commitment towards quality by practicing and living what they reach. All Nestlé functions across their Value Chain are fully responsible for observing mandatory principles, norms and instructions for maintaining agreed Quality standards and for constantly improving them. Their quality personnel at all levels are the guardians of Quality Food Safety and Regulatory Compliance. They promote quality awareness, assess, performance, and challenge the organization to sustain and improve quality standards. They communicate their quality standards to their Business Partners who are expected to share the same commitment to quality and to meet their requirements consistently.
Quality is to strive for zero defects and no waste
They focus on facts and results and they strive for zero defect and excellence in everything they do. They adopt a “no waste attitude” and they constantly look for competitiveness and opportunities for continuous improvement of the Quality Standards delivered to their customers and consumers. They provide adequate resources equipment procedures and systems to ensure high quality standards. They build the necessary competence and technical skills. They develop training and teamwork that are crucial to the successful implementation of these standards and to the achievement of excellence and competitiveness.
Quality is to guarantee food safety and full compliance
They enforce full compliance with the mandatory standards and principals of their quality management system, which include Food Safety Regulatory and quality requirements in every step of their Value Chain. They measure their quality performance as well as the satisfaction of their customers and consumers by listening to them. Shortcomings and mistakes are analyzed and trigger an immediate action plan for correction and improvement. Their quality management system is aligned with international standards and full transparency is ensured through verification by independent external bodies. They strive for the flawless execution of their quality activities throughout their organization based on rigorous discipline on pro-activeness and on factual and open communications
Intentions, direction and aims regarding quality of its products and processes in top management expression.
Success is built by quality
Quality is very important for their success. Nestlé product has been chosen by millions of people in this world because they trust Nestle brand. This confidence comes from the quality image and a good reputation for high standards of quality that has been built up over many years by Nestlé. Every product, service and customer contact helps to build up this image in Nestle. Customer confidence that the product are safe to consume is based on the look of Nestle brand name on a product, that it complies with all regulations and that it meets high standards of quality. People, equipment and instruments are made available to ensure safety and conformity of Nestlé products at all times. Companies with high quality standards are able to minimize the possibility of making mistakes, waste less time and money and are more productive. Therefore, quality is the most vital criteria and it is the key for Nestlé to achieve success for today and future.
Quality is a competitive advantage
Nestlé is a world brand and live in a competitive world and must never forget that customers have the right to make their choice. If the customers are not satisfied with a Nestlé product, they are free to switch to another brand. For Nestlé’s company goal, they want to provide superior value in every product category and market sectoring which they include in market to complete and promote they brand. The pursuit of highest quality of product at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive benefit is gained from a balanced search for optimal value to customers, by simultaneous improvement of quality and reduction of cost.
Quality is made by people
Building quality needs adequate equipment, procedures and systems, including dedicated people. Each and every Nestlé employees must be confident in doing his best to produce higher quality products and services. Therefore, training and teamwork are important to the successful implementation of high quality standards. Teamwork allows us to achieve results that are better than the sum of individual job or efforts. They motivate employees by demonstrating management commitment to quality, by setting effective goals and giving them responsibility and recognition. It is through employee involvement that mission of goal can be achieved in the shortest time.
Quality is action
Quality is the result of deliberate action. The senior manager is responsible to present the quality objectives and to provide the necessary resources for the implementation. It is then up to all employees to make provide quality throughout the company. Progress is followed by listening to our customers’ comment and by measuring nestle product performance. Shortcomings problem and mistakes must be analyzed and corrected. Problems must be expected and prevented before they occur. We also must identify and take advantage of opportunities to make sure stand still and will not fall behind or left out. Contend for continuous improvement for every Nestle product sell area. It is through every little improvements as well as through major breakthroughs that nestle will perform excellence.
General Principle Of Nestlé
Nestlé is more people, product and brand adapt than systems oriented. Nestlé helps in building long-term successful business development and works hard to be a preferred company for long-term lead shareholders. However, Nestlé does not lose sight of the necessity to improve short-term results and remains conscious of the need to generate profit annually. Nestlé seeks to gain consumers’ confidence and preference and to follow consumer trends, creating and responding to customer demand for its products. Therefore Nestlé is followed by an acute sense of performance, support and favoring the rules of free competition within a clear legal framework. Nestle is conscious for social responsibility, which is natural in its long-term orientation. Nestlé is as decentralized as likely, within the framework imposed by fundamental policy and strategy decisions requiring to increasing flexibility. Operational efficiencies, as well as the group-wide need for combination and people development, may also set limits to decentralization. Nestlé is committed to the concept of continuous improvement of its activities, thus they try avoiding more operatic one-time changes as much as possible.
What is Standard?
A document that established by agreement and approved by a recognized body that provides for public use and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the maximum degree of order in a given meaning.
It refers to setting of fixed size, type and measurement in addition to quality of different products manufactured by different organizations in the industry. It is an agreement whereby each manufacturer undertakes to follow the set standards. Standardization is a proses of develop and agreement upon technical standard
Level of standardization
Industrial standards-which relate to the engineering requirements
Commercial standards- which are of primary concerns for users who will use and bought the product.
An engineering or industrial standard is a desired description or definition of a product, a raw material and a manufacturing process, which has been established by one company or by a group of companies in an industry.
Standards are undertaken by statutory bodies and authorities established by the government e.g.:
â€¢Director general of supplies and disposals.
â€¢Research design and standards organization of railways.
â€¢Directorate for standardization for defense production
â€¢Directorate of marketing and inspection
A standard of commerce, also call consumer standard is designed to protect the purchaser or ultimate consumer or manufacturer. It is the measure of
It covers terminology, grades, sizes, and use characteristics of manufactured products.
Agreement for establishing a standard may include method of listing, rating and labeling order that a product made in submission with the standard may be readily recognized by distributors and consumers.
For example: NESTLÉ Pure Life materials are tested to relevant ANSI, ASTM , ISO 14001, 22000, and OSHAS certification and ISO standards to ensure durability.
American National Standards Institute (ANSI) – empowers its members to strengthen the marketplace in the economy while helping to assure the safety and health of consumers and the protection of the environment.
American Society for Testing and Materialsis (ASTM) – is an international standards organization that develops and publishes voluntary consensus technical standards for a wide range of materials, products, systems, and service
International Organization for Standardization (ISO) is an international-standard-setting body composed of representatives from various national standards organizations
Standard and certification
Food & Drug Administration (FDA) is the regulating body in the field. With the Safe Drinking Water Act, which applies to all types of drinking water in the market, the FDA has sets specific standards for different types of bottled. So on the international level it will meets the standards set by FDA
Certified measurement methodology- Global Environmental Footprint (GEF)
To calculate Greenhouse gas emissions as well as water and energy consumption using methods that meets the recommendations of ISO quality standards.
Environmental Standards-Environmental Act (1997)
Try to ensure that at every stage of its operations, the environmental impact is minimal.
Environmental Performances – ISO 14001
ISO 14001, the internationally recognized environmental management system standard.
Production Standards- LEED (Leadership in Energy and Environmental
Design NESTLÉ Waters manufacturing facilities includes in measures to reduce energy use and gas emissions throughout the LEED Certification program.
Note: Sources from http://www.slideshare.net
Nestle Scheduling System
NESTLÉ Scheduling System is used to prioritize and schedule production across manufacturing processes, machine capacity and labors resources.
NESTLÉ Scheduling System automates clerical tasks and enables timely and consistent production scheduling.
NESTLÉ Scheduling System enables forecasting and planning of manufacturing resource requirements and capacity utilization.
This is to conserve resources, boost productivity and minimize production costs.
ØNESTLÉ Scheduling System enables planning and tracking of manufacturing orders across multiple areas of processing.
Ø Priorities for production scheduling are assigned for each processing area on each shift. This is to boost customer service.
ØNESTLÉ Scheduling System enables different areas of the enterprise to centralize production scheduling information.
Note: Sources from http://www.slideshare.net
Superior Quality Water
Superior Quality Water means implementing high standards to guarantee 100% safety and consistent taste to the consumer.
Since bottled water has a direct impact on human health because public will consume the bottled water, so it must meet the strictest health standards.
The Food & Drug Administration (FDA) is the main leader in this field in the United States. Together with the Safe & Drinking Water Act, they sets specific standards for different types of bottled water which applies to all types of drinking water. This is to determine the maximum mineral and microbiological levels that the product must meet the quality tests that must be used.
épar quality control
As a world leader in the sector, FDA has their own quality criteria that apply to local regulations that are lacking especially in developing countries.
In addition, FDA also fulfills consumers’ demand, whose demanded water with unique properties, which is achieved through a careful selection of underground sources so consumers may enjoy their natural mineral composition and unique taste characteristics. They also guarantee it is used in a sustainable way which undergoes no chemical treatments, with no disinfectants or preservatives added to it.
When you choose water from Nestlé Company, you know where the water you’re drinking comes from.
The majority of Nestlé Waters comes from underground sources. Unlike surface water (lakes, rivers and streams), water from underground sources undergoes natural geological filtration that removes chemical pollutants and microbiological and viral contaminants. How effective this filtration is does depend on the aquifer, its geological characteristics, the depth of the water table and even the amount of time that it takes a drop of rain to reach it. In the case of the English mineral water Buxton, the journey through the underground stone takes nearly 20 million years.
The original quality of the water and its ability to be preserved over time are very carefully monitored in their Water Resource department and carefully assessed whenever they consider using any new sources. But the absence of all pollution is only one of the aspects that Nestlé Waters looks at when selecting water sources.
Because every spring is unique from a geological standpoint, each one of their brands with its own origin has its own mineral alchemy, which naturally gives it its own taste. This distinctive characteristic constitutes one of the major criteria according to which consumers everywhere choose their water. Some prefer the light, fresh taste of a still water with a low mineral content; others prefer the mouth feel of water that is rich in minerals. Nestlé mission is to provide a variety of waters with taste characteristics that best suit the taste of the local consumers. And, from one side of the earth to the other, just as from one individual to another, there are all different tastes!
The sustainability of the water resources that they use is also a determining factor. Every source has its own flow rate, defined by the natural rate at which it fills up. Respecting the natural water cycle is a fundamental part of their business: the sustainability of their own activity depends on it. In order to remain a viable source, a spring must have a sustainable flow that’s high enough to meet our needs over the long term, while also taking into account the needs of other possible users (agriculture, industry, local governments). For decades, they have managed the water resources that they control responsibly in order to preserve the natural balance, as can FVGCVFF be seen with Poland Spring, bottled since 1845, Vittel, since 1854 and Sao Lourenço since 1899.
In some regions of the world, there may be a lack of natural underground water or simply a lack of good quality water in sufficient quantities, and there are therefore no sources that meet Nestlé strict specifications. That’s the case in the Middle East and some regions in Asia and in America. In those cases and in order to provide superior quality drinking water to local consumers, Nestlé Waters sometimes uses municipal water as its primary source. This water is processed through a series of filtration (reverse osmosis and carbon filtration in order to remove any chemicals that may be present, like chlorine,) and physical purification treatments (microfiltration, ultraviolet light, ozonation). Once it has been purified to meet their standards, they may add minerals back into the water to meet the local population’s taste expectations and, where necessary, to provide essential nutrients (calcium, magnesium, fluoride, etc.).
At Nestlé Waters, water processed in this way is sold almost exclusively under the brand Nestle Pure Life. Depending on the local regulation and demand, the name “distilled water”, “purified water” or “drinking water” is clearly mentioned on the label of this type of products. In an effort to avoid any confusion for consumers, the communication for this type of water never includes any visual elements that could lead consumers to think it comes from a natural underground source, when it is not the case.
High Performing Manufacturing
Nestle does not carry out any heavy operations because their plants is different from other industries. Thus, their role is to bottle water exactly as its comees out of the ground in most cases. This operation is requiring the monitoring and quality control procedures to preserve the original quality and purify of the water to be implemented at every step of production.
In order to avoid any pollution coming from inside their production sites, they kept the natural spring water that they used in a closed circuit and flows through stainless steel pipes and equipments. As the result, the automatic cleaning procedures of the water circuits meet the highest hygiene requirements. Certified by external Third Party Certification Bodies covering 80% of their plants, plus, ISO 14001, 22000, and OSHAS certification will be fully implemented in 100% of their plants by the end of 2010 through the strict application of the highest standards for quality, safety and environment.
Nestle apply much stricter criteria to the composition of their water than the regulation required. Therefore, the quality of the water is controlled at every step of production through out sensory, chemical and microbiological analyses. For example, waters performs a quality test for about every 150,000 liters (40,000 gallons) produced, which is several hundred times more frequent than the major, national, public water suppliers do in the United States.
For Nestlé Waters, quality can’t not only rely on the original quality of the water. Throughout the entire production chain, from packaging to the finished product, a battery of tests to guarantee that it conforms to the highest standards before it is sent off to consumers checks every step.
All their production plants have their own laboratory, which allows them to carry out rigorous tests regularly. Some more elaborate tests, including a yearly verification of all quality parameters are carried out at their Nestle Waters Quality Assurance Centre in Vital in order to profit from the latest, most high-tech equipment there.
Each step in this value chain could have harmful consequences if not managed properly. For example, without sustainable agricultural practices the natural resources of farms worldwide might be damaged.
By embedding corporate responsibility in its business practices in this way, Nestlé is
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