Introduction

THE NESTLE STORY

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. In 1866 the Page Brothers form the United States set up a new industry in Cham, making condensed milk from a raw material that was available in abundance in the region. In 1867 Henri Nestle a chemist in Vevey, created a milk and cereal based food for babies. The companies competed vigorously until 1905, when they merged and became the starting point of the present food group.

NESTLE TODAY

Nestle is now the world’s largest food company. It is present on five continents, has an annual turnover 70 billion Swiss francs, runs 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.

The company owes its current status to the pioneering spirit inherited from its founders which continues to inspire it, to its constant search for new ways of satisfying man’s mutational needs.

Wherever possible, it sets up factories locally, employees personnel from the country concerned and relies on indigenous raw materials. Its agricultural services provide assistance to improve the quality and yield of the raw materials it uses. Much attention is devoted to professional training and to the integration of the company in its economics and social environment.

Nestle Milkpak Ltd.

As a consequence of joint venture arrangement between Nestle S.A. of Switzerland and Milkpak Ltd. In 1988, the existing production facility of Milkpak in Sheikhupura became a part of Nestle Milkpak.

The Milkpak Sheikhupura factory had commenced operations in 1981 as a producer of UHT milk. By 1988, it had expanded its operation and was also producing butter, cream, Desi ghee – all under the brand name of MILKPAK and juice drinks under the brand name FROST.

ESTABLISHMENT OF NESTLE MILKPAK, KABIRWALA FACTORYESTABLISHMENT OF NESTLE MILKPAK, KABIRWALA FACTORY

In 1986 Milkpak Ltd. acquired the services of Kabirwala Dairy Ltd. For co packing of UHT milk under the brand name MILKPAK. Nestle Milkpak acquired KDL in 1990 as a subsidiary and began installation on a MAGGI NOODLES plant in 1991. this production line became operational in 1992 with two flavors: Chicken and Masala. This second milk powder plant was commissioned in September 1996. the plant produces NIDO, GLORIA and skim milk powder. The UHT line was discontinued in June 1996 and the same year witnessed the launching of the MAGGI YAKHNI line with 3 flavors: Chicken, Masala and Chatpata.

With the merger of this factory with Nestle Milkpak in April 1997, Kabirwala Factory, as it is now called, is a fully owned unit of Nestle Milkpak Ltd.

CORPORATE STRUCTURE

Head Office

The registered and corporate office of Nestle Milkpak Ltd. is in Lahore.

308 – Upper Mall Lahore

PABX: 5757082-95

Fax: 5711820

Factories

There are two factories of Nestle Milkpak Ltd. For dairy products.

Sheikhupura:Sheikhupura:29th km, Lahore - Sheikhupura Road,29th km, Lahore - Sheikhupura Road,

Sheikhupura, Punjab, Pakistan.Sheikhupura, Punjab, Pakistan.Kabirwala:Kabirwala:

Khanewal – Kabirwala Road, KabirwalaKhanewal – Kabirwala Road, KabirwalaDistrict Khanewal, Punjab, Pakistan.District Khanewal, Punjab, Pakistan.

There are two plants for Mineral Water situated in:There are two plants for Mineral Water situated in:Islamabad :Islamabad :

Karachi:Karachi:

REGIONAL OFFICES

Company has ten regional sales offices in following cities of Pakistan:

Karachi

Hyderabad

Sukkhar

Lahore

Multan

Faisalabad

Gujanwala

Quetta

Islamabad

Peshawar

MILK COLLECTION CENTERS

The core raw material of Nestle Milkpak is milk. Over the last thirteen years the company prime concern has been to improve the quality and volume of milk for UHT processing and for other milk base products. So the company has twenty-five milk collection centers in Pakistan.

DIVISIONS OF NESTLE MILKPAK LTD.

ProductsYear Product Name

1981 UHT Milk

1983 Butter

1986 Milk Pak Cream

Desi Ghee

Frost Juice

1990 Nido

Cerelac

1991 Nestum

Lectogen

1992 Everyday Tea Whitener

Maggis Noodles

Marketing DivisionMarketing DivisionCustomer Relation DepartmentCustomer Relation Department

Distribution DepartmentDistribution DepartmentResearch & DevelopmentResearch & Development

DepartmentDepartment

Milk Collection DivisionAgricultural Services

DepartmentLogistic Department

HR DivisionHR DivisionPersonnel DepartmentPersonnel Department

Finance DivisionTreasury DepartmentAccounts Department

Production DivisionProduction DivisionQuality Assurance. DepetQuality Assurance. DepetBrand Wise ProductionBrand Wise Production

DepartmentsDepartmentsPackaging DepartmentPackaging Department

1994 Milo

Neslac

1995 Millo RTD

Nescafe 3 in 1

1996 Every day UHT Milk

Nestle Orange Juice

Nestea

Polo

Nescafe Classic

Maggi Yakhni

1997 Nestle Wheat

1998 Toffo

Soothers

Nestle Pure Life

1999 Maggi Sauces

Fruit Drops

Butter Skotch

2001 Nescafe Creamy Flavors

Role of Nestle Milkpak Ltd. in Industry

Nestle Milkpak Ltd. is the market leader in food and beverage industry. They are producing high quality well known brands. There no is such competitor that

can compete Nestle Milkpak Ltd. in its total product mix. There are a few local competitors of the company in different product item. These competitors are:

Rafhan:

Rafhan is competing Nestle in infant and follow up cereals.

Shezan and Bambino:

Shezan and Bambino are competing Nestle Milkpak’s local brand

“Frost”.

In spite of this competition, Nestle Milkpak Ltd. is enjoying about 70-75% market share in Pakistan.

“Wherever you live, only Nestle can provide the best and most relevant food

and beverage products to meet your needs throughout your day, throughout

your life. The Nestle Network icon will take you on the journey of discovery

through our world of food.”

MissionMission

OBJECTIVES OF NESTLE MILKPAK LTD.

Nestle Milkpak believes in following objectives:

The major objective of the company is to sell high quality, innovative andThe major objective of the company is to sell high quality, innovative and superior products which satisfy needs and wants of consumers. superior products which satisfy needs and wants of consumers.

Nestle not maximize profit through high market share but use maximizeNestle not maximize profit through high market share but use maximize customer’s satisfaction. Nestle earn profit through satisfaction of consumer.customer’s satisfaction. Nestle earn profit through satisfaction of consumer.The health of consumer and employees is at primary priorities. To ensureThe health of consumer and employees is at primary priorities. To ensure

consumer’s health, Nestle provide quality products and for employee health.consumer’s health, Nestle provide quality products and for employee health. Nestle provide the pollution free environment and provide the medicalNestle provide the pollution free environment and provide the medical

facilities.facilities.Nestle establish policies, programs and practices to conduct operation in anNestle establish policies, programs and practices to conduct operation in an

environmentally sound manner.environmentally sound manner.Nestle operate to achieve highest standard of ethical conduct, which acquireNestle operate to achieve highest standard of ethical conduct, which acquire company’s activities and relationship world-wide in each business sector.company’s activities and relationship world-wide in each business sector.

Nestle aim to deal only with reputable suppliers who willing to apply NestleNestle aim to deal only with reputable suppliers who willing to apply Nestle Quality Standard.Quality Standard.

Nestle has been committed to environmentally sound business practicesNestle has been committed to environmentally sound business practices throughout the world.throughout the world.

CORE COMPETENCIES

Nestle Milk Pak has the following core competencies.

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.

FACILITIES

The NM’s facilities i.e. offices stores and plants are very well located and have the requisite capabilities, which is a big competitive advantage for them.

SYSTEM AND TECHNOLOGY

NM is an organization which heavily depends upon new systems and technologies to excel in the market. The organization is well equipped with new developed systems and technologies especially n their operations.

COMPETITIVE PRIORITIES

Following are the competitive priorities of NM.

i. Consistent quality

ii. Development speed

iii. Volume flexibility

QUALITY

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

CONSISTENT QUALITY

NM pays special attention for maintaining consistent quality. They have special sort of equipments and process which facilitates in maintaining a consistent quality. So the each and every unit of its product equally satisfies its customers.

DEVELOPMENT SPEED

As for as develop speed is concerned NM is the industry leader not only in Pakistan but 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.

VOLUME FLEXIBILITY

Volume flexibility is one of the competitive priority of NM. When the availability of Milk is high in winter season they increase their production as the milk cannot be stored for longer period of time. In season when there is shortage of milk their production rates dropped. So they can adjust their volume of production according to their requirements.

Spray DryingSpray Drying Pasteurization Pasteurization EvaporationEvaporation

PRODUCTION PROCESSPRODUCTION PROCESS

Milk Collection & ReceptionMilk Collection & Reception

CoolingCooling

StoringStoring StandardizationStandardization De-CreamingDe-Creaming

PackingPacking

PRODUCTION PROCESSPRODUCTION PROCESS

1.1. MILK COLLECTION 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 4 oC. Nestle purchase milk directly few frames, there is no middle man.

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, Kachah Khu

D. Bahawalpur , Bahawalnagar, Chistian, Ahmadpur

There are Area collection managers, Milk collection Co coordinators and Milk Collection Supervisors in each Area for collection of specific amount of Milk in specific time.

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 on boiling

3- Fat (5.8% - 6%)

4- PH test (6.8 – 6.9)

5- Adulteration test (only on doubt)

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

Trollers are not preferred to stay more than 1.75 Hrs. in factory so that they can in time collect milk for next day.

2. 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.

3. 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 72 oC 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.

4. DECREAMING

In this process dirt particles, SNF and cream is separated, milk is given temp of 60 oC 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.

5. PASTEURIZATION

In This Process milk is heated at 92 oC for 5 seconds to remove remaining bacteria’s.

Milk powder process activities

After pasteurization milk to treat for conversion into powder, following activities are performed to milk:

6. 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 Homogenansization is done which uneven composition of fats and SNF is homogenized

7. Spray drying

In this process there are 5 lateral high pressure nozels which exert high pressure on milk after that there which exerts high pressure on milk after that there are about 50% water and 50% solids are remained in milk. After this step about 320 oC 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).

8. 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%

9. 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 , with capacity of --------each.

10. Packing

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

Capacity

Capacity is the maximum rate of out put for a facility. The operations manager must provide the capacity to meet current and future demands; otherwise the organization will miss the opportunities for growth & profits.

Nestle Milk Pak, Kabir Wala has installed new evaporate, doubling the output of spray dryer in 1999. Along said the were house capacity at Kabir Wala to handle increased volumes of finished products was proportionately increased. They also installed pouch filling machine, making Kabir Wala factory independent from Sheikhu Pura for filling of full cream Milk powder.

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.

Milk can be stored maximum for 36 Hours in Silos.

Capacity planning is duty of top management and it is long term. In flush season when milk is abundantly available they utilize capacity 100% as cleaning time is just 4 hours daily and 20 hours of working. Installed capacity is NIDO plant is 560 tons, it produces 4 tons / Hours & in 20 working hrs it can produce 80 tons per day. In summer when availability of milk is lower they have their annual shut down (June). They have training session for employees and vacations in that time. There are certain standards for labor utilization. Efficiency of employees is calculated daily.

LOCATION

Facility location is the process of determining a geographic site for a firm’s operations.

Nestle Pack has located one of its factories at Kabirwala.

REASONS FOR SELECTING THIS LOCATION

PROXIMITY TO SUPPLIERS AND RESOURCES

This factory has been located in this area because here the 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 of this areas have their own Animals and have their own live stock farms. So there is abundant milk available.

Furthermore, by locating one factor at Sheikhupura and the other at Kabirwala the Nestl MilkPak can cover the geographic area of milk collection very well, especially the area of whole Punjab.

REPUTATION OF THE LOCATION

Placing of the factory at Kabirwala is also advantageous in this way that at the current place there was actually the factory in the name of Kabirwala Dairies Ltd. (KDL). So the place has the reputation of having a milk factory. 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.

SUPPLY CHAIN MANAGEMENT

Supply Chain |Management seeks to synchronize a firms functions and those of its suppliers to match the flow of materials , services and information with customer demand. A basic purpose of supply Chain management is to control inventory by managing the flows of materials.

TYPES OF INVENTORIES

Following types of inventories are kept by Nestle Milkpak Kabirwala:

RAW MATERIALS

Raw Material inventory of Nestle MilkPak consists of milk. Their Raw Material is kept in Silos. Silos are the big tanks, which are used to store the milk. Inventories of their raw materials cannot be maintained in bulk quality and for a longer period of time.

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 there for the period of 36 hours without loosing quality.

WORK IN PROCESS INVENTORIES

Work in process inventories are not to huge. Whatever they put into production they stop production after its completion if there is no unusual break down.

The unpacked goods inventory can be considered as the WIP inventory. The condensed milk is stored in Bins. Bins are the big boxes in which the milk powder is stored before packing it.

Then through an automatic plant the milk is packed. The butter is stored in huge tubs. From where that is packed through the automatic.

FINISHED GOODS INVENTORY

Inventories of packaging material can also be included in WIP inventories. The packing material is purchase externally. The supplier of packing material is packages private limited Pakistan.

Nestle Milk Pak maintains huge amounts of F.G. inventories. There is a huge warehouse within the factory. In the warehouse they store the finished goods.

Especially when the availability of milk is high then the L.M. is produced and stock in this warehouse and the same is released when the Milk availability is lesser and the production is also low.

Normally it’s the FG inventory the NM has RM & WIP inventories not that huge.

MATERIALS MANAGEMENT

There is a separate department in the factory which is responsible for purchasing the materials and manages its supply.

There is a centralized system of material management. The whole operations of which are looked after by the operations managers. There is also a stores officer which also looks after the materials management.

SUPPLIER RELATIONS

The nature of relations maintained with suppliers can affect the quality, timeliness and price of a firm’s products. There are two types of supplier relation competitive orientation.

COOPERATIVE ORIENTATION.

Nm’S SUPPLIERS RELATIONS

NM follows the cooperative orientation. They have very friendly and cooperative relations with their supplier’s one hand and there are the suppliers of Milk and on the other hand the suppliers of packing NM have cooperative relations with both of its suppliers.

RELATION WITH MILK SUPPLIERS

NM has very cooperative relations with its milk suppliers. NM’s people

themselves look after the animals of the former who provide them milk and

give them useful tips.

NM provides various facilities to its milk suppliers. NM also provides or facility to its suppliers. It also provides them consultancy facilities consultations s provided for improving the milk quality looking after the health of the animals.

PROGRESSIVE FARMERS

The progressive farmers are the farmers having lots of animals and supply milk to NM. These are farmers which wish to further grow. NM provides them loans for improving their farms and for the purchase of animals. NM provides medical facilities to the animals. The NM provides loans to these farmers for expanding their farms. So that the milk requirements of NM can be filled. In turn the supplier of milk also cooperate with NM

PACKAGING MATERIAL SUPPLIERS

The packaging material is supplied to NM by the packages (Pvt) Ltd. Pak NM have very cooperative orientation with packages and they cooperate a lot with NM for maintaining high quality of final product.

So NM has very cooperative orientation with its suppliers.

INVENTORY CONTROL SYSTEMS

For controlling inventory the NM use Continuous Review

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? In this way they keep a continuous control over their inventory.. Operations manager and the auditing people also check the inventory and its records so that the risks of loss or manipulation may be minimized.

DISTRIBUTION

Distribution is the management of the flow of materials from manufacturer to customer and from warehouse to retailers. Involving the storage and transportation of goods.

PLACEMENT OF FINISHED GOODS INVENTORY

The fundamentals decision is where to stock an inventory of finished goods there can be two alternates.

i. Forward Placement

ii. Backward placement.

FORWARD PLACEMENT

In forward placement finished goods are stored closer to customer .NM use forward placement as they use to keep the stock of finished goods in their regional offices and distribution centers. From the distribution centers the goods are further sent to the retailers.

BACKWARD PLACEMENT

In backward placement finished goods are stored at the manufacturing plant where they keep goods stocked. So in this way they use backward placement also. So for inventory placement NM uses a mix of forward placement and backward placement in order to provide goods to the market on time.

DISTRIBUTION STRATEGIES OF NESTLE MILK PAK LTD.

Distribution plays important role in success and failure of any organization. The organization may fail, if its distribution networks are not efficient and unable to provide the necessary items at required place and at reasonable time.

Distribution system of Nestle is one of major source of competitive edge over its existing rivals. Nestle has its own distribution networks equipped with all necessary transportation facilities. They transport their products at major ten regional sales offices, which are situated at different cities of Pakistan. These sales office (distribution centers) have their own vans with sales people who sell and transport goods to the small retailers. In general Nestle followed following sequence for distribution of its products.

This figure indicates Nestle never sell directly is ultimate customers but follow above sequence.

CompanyCompany Distribution CenterDistribution Center RetailersRetailers CustomersCustomers

In general, Nestle has following two distribution strategies:

Selective distribution strategySelective distribution strategyExtensive distribution strategyExtensive distribution strategy

For some products, Nestle adopt “selective strategy” in which firm distribute its products on few selective retail outlets while for some products, Nestle people go for “extensive strategy” in which they distribute their goods on all possible retail outlets.

.

FORECASTING

Forecast is a prediction of future events used for planning purposes.

Forecasts are needed to aid in determining what presences are needed, scheduling existing resources and acquiring additional resources. Accurate forecasts allow schedules to use machine capacity efficiently, reduce productions times and cut inventories. Forecasts are needed to anticipate changes in prices or costs or prepare for new laws or regulations, competitors, resource shortage or technologies.

Forecasting methods may be based on mathematical models 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 and fine tune the 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).

AGGREGATE PLANNING

Aggregate plan is a statement of production rates, work force levels, and inventory holdings based on customer requirements and capacity limitations.

PRODUCTION PLAN

A manufacturing firm aggregate plan is called as the production plan which generally focuses on inventory holdings and production rates.

NM has its production plan which is generally developed by the planning department.

AGGREGATION AGGREGATION

NM aggregate their plan on the basis of total milk collection, total milkNM aggregate their plan on the basis of total milk collection, total milk requirements, total production etc. requirements, total production etc.

TIMETIME

The planning horizons of NM are of two types one is the long term planningThe planning horizons of NM are of two types one is the long term planning horizon which covers the period of ten years. The other is the shorter planninghorizon which covers the period of ten years. The other is the shorter planning horizon normally or one year. horizon normally or one year.

LONG TERM PLANNING HORIZONLONG TERM PLANNING HORIZON

In long term planning horizon NM plans for about ten years. They plan howIn long term planning horizon NM plans for about ten years. They plan how much production capacity to be achieved. How much production rates will bemuch production capacity to be achieved. How much production rates will be required what will be the customer demand how will they collect the milk.required what will be the customer demand how will they collect the milk. From where they will collect the milk. How many number of animals would beFrom where they will collect the milk. How many number of animals would be there is a particular area and from there how much milk we will be collecting.there is a particular area and from there how much milk we will be collecting. They got all the information and plan for a longer period of time. They got all the information and plan for a longer period of time.

SHORTER PLANNING HORIZONSHORTER PLANNING HORIZON

In shorter planning horizon they plan usually for one year and then furtherIn shorter planning horizon they plan usually for one year and then further decompose that in seasonal plan. How much to produce in a year. How muchdecompose that in seasonal plan. How much to produce in a year. How much milk to be collected in one year what is the deficiency or surplus. How muchmilk to be collected in one year what is the deficiency or surplus. How much inventories we will be holding. This yearly plan is further divided into fourinventories we will be holding. This yearly plan is further divided into four quarters. Targets are set for each quarter and the efforts are made to achieve thequarters. Targets are set for each quarter and the efforts are made to achieve the targets. targets.

QUALITY

Quality has no proper definition its vary from person to person. In general sense quality may be defined as meeting or exceeding the expectations of customers.

In general business’s success depends on the accuracy of its perception of customer’s expectations and its ability to bridge the gaps between those expectations and operating abilities. Good quality can also pay off in high profits. High quality products and services can be priced higher then comparable low quality once.

Nestle Milk Pak has quality as its top competitive priorities along with availability of its products all over.

In quality they want to achieve consistent quality and even to improve it continuously. In this regard the stress on customer satisfaction, continuous improvement and employee involvement.

There is strict quality control by computerized system in control room, quality of product are assured at each stage.

Customer satisfaction

Nestle take their customer on top of its hierarchical chart. Its top priority is to satisfy the customer. They design the product in such a way that they confirm their speciation, fit for use and give support to the company image.

Employee involvement

Nestle milk pak involves their employees in making decisions and changing in organization. They have idea boxes in factories and offices, employees are encourages to give ideas about improvement.

They conduct weekly meetings and discuss the ideas; good ideas are rewarded to motivate employee’s involvement. There are formal training sessions for employees to train them and enhance their capabilities. Employees are given rewards and incentives to involve them more in organization.

Continuous improvement

Nestle Milk Pak try to improve the quality of products continuously they conduct continuous improvement meetings to improvement the quality. They train the employees for improving quality tools, build team work, employee involvement and develop sense of operator ownership.

Improving quality through TQM

Programs for employee involvement and continuous improvement are aimed at improving quality in general sense. However, TQM often focuses on benchmarking, product and process design.

BENCHMARKING

Benchmarking is a continuous systematic procedure that measures a firm’s product and process against industry leaders. As NESTLE is industry leader in food products, each factory has its benchmark to improve quality. Nestle Milk Pak Kabirwala takes Nestle Tambula factory Australia as bench mark, which is the best Nestle factory in all over the world. Nestle Milk Pak Kabirwala is at 2nd number.

PRODUCT & PROCESS DESIGN

Nestle Milk Pak design the produce according to the customer’s satisfaction and process is designed in such a way to maintain purity and nutrition’s of the products.

QUALITY CERTIFICATION

Nestle Milk Pak has its own quality standard certification which has much higher standards as compared to ISO, called Nestle Quality Standards. Nestle Milk Pak Kabirwala is approved by Nestle Quality Standards.

In which quality is maintained right from the purchase of raw material to the distribution of the products to the ultimate consumers.

Quality of Materials

Quality of Process

Distribution

Continuous improvement

Customer satisfaction

Employee involvement