Presented by: IMRAN KHAN (20097) RATISH K (20072) RAKESH ROSHAN (20069) SUJITH SURENDRAN (20083)

Nestle S.A. the present Switzerland based international food group, originally consisted of two companies and two products: Henri Nestle and his baby food in Vevey, and the Anglo-Swiss Condensed Milk company and its condensed Milk Company and its condensed milk in Cham, both in Switzerland.

Dynamic Expansion
The history of Nestle include the development of many different products as well as acquisitions, mergers and the purchasing of shares in companies, mainly abroad, over the course of the tears, this enabled it to broaden its range of products and diversify its operations, while at the same time strengthening the economic foundations of the company.

NESTLE TODAY
Nestle is now the worlds largest food company It is present on five continents Annual turnover 70 billion Swiss francs 522 factories in 81 countries 200operating companies 1 basic research center and 20 technological development group and  More than 231,000 employees the world over      

Nestle Milkpak Ltd.

    Founder Sayed Babel Ali Established in 1981 Milkpak was first introduced in the market by Milkpak Ltd Milkpaks Milk Packs were very well-received and the brand soon became synonymous with quality milk

 In 1988, Switzerland-based Nestl SA, acquired a share in Milkpak Ltd  Formerly known as Nestl Milkpak Limited  Now, known as Nestle pakistan limited  In 2008 the market share of Nestl Pakistan in the dairy milk category has been estimated at 40 percent

PRODUCT RANGE  UHT milk  Butter  Milk pak cream  Desi ghee  Cerelac  Nescafe  Maggi etc.

Location is the process of determining a geographic site for a firms operations. Nestle Pack has located one of its factories at Kabirwala They are using raw materials like milk and materials of packaging. REASONS FOR SELECTING THIS LOCATION supply of milk is more than the requirement of the local area. This factory location is immensely surrounded by Agricultural farms, villages and small towns. The people o f this areas have their own animals and the feudal of the region have their own live stock farms. So there is abundant milk available. By locating one factory at Sheikhupura and the other at Kabirwala the Nestle MilkPak can cover the geographic area of milk collection very well, especially the area of whole Punjab

 

CONT REPUTATION OF THE LOCATION

The suppliers of milk are already oriented with this location.

PROXIMITY TO NATIONAL HIGHWAY Kabirwala factory is quite closer to National Highways so the transportation of Raw Material and Finished Goods is also easier. In the end we can say that the most important and critical factor for locating the facility at this place is the availability of the milk in this area

MILK COLLECTION AND RECEPTION

storing

Standardization

De-Creaming

Cooling

Spray Drying

Evaporation

Pasteurizatio n

Packing

PRODUCTION PROCESS

MILK COLLECTION
Milk collection system of Nestle Milk Pak is excellent. According to this system milk is collected from area of about 72,000 km . Village Milk centers 2273 Sub centers 583 Main Centers 23 On milk centers price of milk is paid according to percentage of fats. If the quality of fat is less than required (6%) than price will be paid accordingly. At milk collection centers, gerber test is performed for determination of fat. In milk collection centers temperature of milk is kept at 4oC.

Collection Areas are in all over Punjab Nestle Milk Pak divide the areas in following Categories: A. Sahiwal, Burewala, Okara etc. B. Pindi Bhattian, Chaniot, Sarghoda C. Kabir Wala, Mian Channu, Shorkot, Kahane wal, KachahKhu D. Bahawalpur , Bahawalnagar, Chistian, Ahmadpu

RECEPTION
From milk collection centers milk is collected and delivered to factory daily seal of tankers are properly decided. Receiving capacity of milk is 60,000 liters. At reception following tests are performed before storing milk to assure the quality of milk. 1- Alcohol precipitation test 2- Clot an boiling 3- Fat (5.8% - 6%) 4- SNF (Solid non fat) (8.5-8.9) 5- PH test (6.8 6.9)

Up to reception temp of milk is about 8-10oC, there is no rejection on temperature basis.

STORING OF MILK
Milk is stored in storage tanks called Silos. The capacity to store milk is 596 tons. There are 5 Silos of100 tons each, 2 Silos of 10 tons each, 1 Silo of 70 tons. Milk can be stored for 36 Hours in Silos

STANDARDIZATION
All the animals have different composition of fats in their milk in different seasons. Standardize milk according to the recipe milk is given temperature of 72oC for 15 seconds to reduce bacterias in milk, this process in called thermization. life of milk is increased by this process and in standardization composition of fats and SNF are standardized

DECREAMING In this process dirt particles, SNF and cream is separated, milk is given temp of 60oC and 60,000 rpm in de-creamer. So that dirt particles cream can be separated. Cream is send to butter section. Dirt is drained after 30 seconds milk is send for further processes PASTEURIZATION In This Process milk is heated at 92 oC for 5 seconds to remove remaining bacterias. Milk powder process activities After pasterization milk to treated for canveersion into powder, following activities are performed to milk:

Evaporation
A) Low heat treatment Milk is heated at high pressure of 889 milli bar so that it start boiling at about 70 oC .

(b) 4-effect falling film Milk is evaporated in 4 effect system. Milk is evaporated about 56%, 62%, 67% and 75% after 1st 2nd 3rd and 4th effect respectively. After 3rd effect homogenization is done which uneven composition of fats and SNF is homogenized

Spray drying
In this process there are 5 lateral high pressure nozels which exert high pressure on milk after that there which exert high pressure on milk after that there are about 50% water and 50% solids are remained in milk. After this step about 320oC hot air is thrown on milk, it is very quick process in which powder settle in base and moisture evaporate in forms of vapors

Central lecithination:
Lecithinate is sprayed on powder so that it is converted into highly dissolvable powder. That way Nestle Milk Pak say Nido is instant Milk (easily dissolvable in hot ad cold water

Drying
After all these procuress still powder has 5.5 % moisture in it, Powder is dried through x- Egran System to reduce moisture level up to 3.1%

Cooling
After drying there is a cooling process, in which powder is cooled before storing.

Storing of powder
Powder is stored in bins there are 40 bins..

Packing
Milk is packed in different packing according to the weight required, form tote tilting station from bins

Layout
 The are using product layout  Volume is very high  Variety is low

  

 

Capacity is the maximum rate of out put for a facility. Capacity for receiving milk is 60,000 Liter/Hours Milk is stored in storage tanks called Silos. The capacity to store milk is 596 tons. The factory can store the milk up to 596000 liters. They have five silos for storing the milk all have different capacities. The milk can remain therefore the period of 36 hours without loosing quality

Forecast
 Forecasting methods is based on trend analysis using historical data available, qualitative methods drawing on managerial experience or a combination of both.  Nestle Milk Pak forecast the demand of products on annually basis with mutual understanding between planning and selling departments on the basis of historical data and sales forecast estimates.  They conduct monthly meetings to forecast on monthly basis.  As in summer when availability of milk is scarce and demand is high, they have stock in winter to meet this demand. They produce more in peak season (Jan, Feb, and March) to meet the demand of lean seasons (June, July, August

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. QUALITY -Quality is the core competitive priority of NM. They take quality in two ways. High performance design and consistent quality.

VOLUME FLEXIBILITY

DEVELOPMENT SPEED ;As for as develop speed

is concerned NM is the industry leader all over the world. They have a team of very innovative people which consistently focus on the development of new products and to improve the already existing products. BRAND PREFERENCE

CONTINUOUS REVIEW
NM use continuous review system. They have the whole computerized system. How much stock is in the store room how much stock has been further put into warehouse and how much stock has been drawn from the stores

FINISHED GOODS INVENTORY

 

Nestle Milk Pak maintains huge amounts of F.G. inventories. huge warehouse within the factory. JIT