CURRENT TRENDS IN OPM

NESTLE
FAHAD JAVED
BADAR UL ISLAM KHAN LODHI
ABDUL RAFAY ALI
FURQAN SHEIKH

Operations Management
What is Operations: is basically part of
organization, responsible for producing goods and
services.
How can we define operations management?:The
management of systems or processes that create goods
and/or provide services.

INTRODUCTION
Nestl is a Swiss-German word which means
Little Nest which is its trademark.
Nestl is number one food company in the world.
5th largest company of the world according to
its turn over.
2 million 31 thousand people employed from all
over the world.
Operating in 81 countries of the globe having 522
factories.

HISTORY
Our history begins back in 1866, when the first
European condensed milk factory was opened
in Cham, Switzerland, by the Anglo-Swiss
Condensed Milk Company.

MISSION STATEMENT
GOOD FOOD, GOOD LIFE
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.

Objectives of Nestle
To achieve compatibility with international voluntary standards on
environmental management systems.
To build mutual trust with consumers, governmental authorities and
business partners.
To ensure continuous improvement of nestles environmental
performance.
Conservation of natural resources and minimization of waste.
Total compliance with the laws.
To establish the benchmark for good business practice.
Employing new technologies and processing.
By committing to resources, both human and financial.
Measuring the cost and benefits to business of its activities

GOALS OF NESTLE
Nutrition, Health and Wellness
Sustainable Financial Performance
Trust by all stakeholders

OPM TRENDS OF NESTLE

TQM.
LEAN MANGMENT.
I-SCM
E COMMERCE.
ENVIRONMENTAL MANGEMENT.
BUSINESS PROCESS OUTSOURCING.

Total Quality Management

TQM capitalizes on the involvement of management,
workforce, suppliers, and even customers, in order to meet or
exceed customer expectations.
Nestle defined quality as the corner stone for success and
the satisfaction of the customers. They relate the word
quality with the stage on which customer is satisfied and they
say that if the customers are fully satisfied with their products
then it is quality. They also say that consistency in their
products defines the quality.

ContTotal Quality Management

In Nestle the duties of the quality department are to:
Develop, with input from all personal, the core values, visio
n statement, mission statement, and quality policy
statement.
Develop the strategic long term plan with goals and the
annual quality improvement program with objectives.
Determine and continually monitor the cost of the poor
quality.
Continually determine those projects that improve the
process, particularly those that affect external and internal
customer satisfaction

LEAN MANGMENT/LEAN PRODUCTION

NESTLE Lean production focuses on minimizing
resources used in the production process. Production
should therefore aim to take place using the most
efficient use of space, machinery, labor, materials and,
crucially, be in the shortest time period. At Nestl this
lean approach is called Nestl Continuous Excellence
(NCE).
It will also help reduce environmental impacts by using
less materials and reduce the time wasted in dealing
with poor quality products.

E-COMMERCE
Nestl now is using the Internet to collect and leverage
information about consumers and drive new marketing
initiatives.
Nestl relies on its Online Marketplace to build
customer involvement.
The flexibility of the Microsoft platform allowed Nestl
to develop component-based Web architecturethe
Nestl Internet Resource Framework (NIRF).
Standardization of the platform is allowing Nestl to
gather consumer information -Enables nestle to know
about common trends for marketing initiatives.

Nestl's Environmental Management

System
NEMS is an organizational tool at the heart of Nestl's programme
for the environment, and sets the framework for all measures
applied.
The NEMS objectives include:
To provide a systematic approach that ensures compliance with
Nestl's environmental policy, relevant laws and Nestl's
operational standards.
To ensure the continuous improvement of Nestl's environmental
performance, e.g. through the conservation of natural resources
and the minimization of waste.
To achieve compatibility with international voluntary standards on
environmental management systems.
To build mutual trust with consumers, governmental authorities
and business partners.

BUSINESS PROCESS OUTSOURCING

Switzerland-Based food company Nestl S.A. has
chosen the Philippines as its site for its shared service
center for financial and employee services.
Nestl Philippines earlier announced plans to invest
P1.3 billion this year to enhance its capabilities to serve
domestic and export demands.
Nestl S.A. and Barry Callebaut AG announce their
intention to broaden their strategic co-operation in
Europe.
Nestl proposes to transfer its chocolate factory in
Dijon to Barry Callebaut.

I-SUPPLY CHAIN MANAGEMENT

Ensured timely and efficient supply, both of input
commodities and material, as well as that of the
finished goods to consumers across the country,
helps sustainable and profitable operations of the
company.
Initiated implementation of Radio Frequency
technology help to maintain higher inventory
accuracy and improve traceability of materials,
increasing efficiency and productivity in the
warehouses and shop floors.

 Implementing an advanced sales automation,

to connect distributors through a uniform,
robust and integrated distribution
management system, will increase
transparency, speed, accuracy and efficiency
in trade spends and market execution as the
sales force will focus more on core functions.