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Lean Manufacturing In Food Industry - Nestle Case

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Nick kritikos

on 28 March 2017

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Transcript of Lean Manufacturing In Food Industry - Nestle Case

Lean Manufacturing
in Food Industry -
Nestlé Case Study
Lean Manufacturing Tools
Thank you for your attention!!!
MBA TQM International
Nick Kritikos
Lean is a philosophy that seeks to eliminate waste in all aspects of production activities:

Lean manufacturing was developed by the Japanese automotive industry, with a lead from Toyota and utilising the Toyota Production System (TPS), following the challenge to re-build the Japanese economy after World War II.

The concept of lean thinking was introduced to the Western world in 1991 by the book “The Machine That Changed the World” written by Womack, Jones, and Roos.

Five Principles of Lean
The concept of Lean Manufacturing was developed by Henry Ford in 1920’s

Toyota was the first company to introduce ‘lean manufacturing’ concept in its production system.

Lean manufacturing focuses on reducing waste.

The concept of Lean Manufacturing was developed by Henry Ford in 1920’s

Toyota was the first company to introduce ‘lean manufacturing’ concept in its production system.

Lean manufacturing focuses on reducing waste
Parts arrive through the supply chain shortly before they are needed for production

Inventory Strategy that a business implements to reduce work in process (WIP).

Must be coordinated with

Saves Space

Visual Signs
Case Study - Nestlé
NCE guiding Philosophy
"Lean Thinking - The Nestle Way"

Lesson Learned
If a food company wants to implement
Lean Manufacturing
Figure 1. Vinodha, Kumar, 2010
Kai = Change

Zen= For the Better

Continuous Improvement
Based on PDCA
The ability to stop the process by a man or a machine in an event of a problem

Poka- Yoke
Fixed Position Stop
Line Stop Cord

Figure 1. Cardiff University
Figure 3. Mannman, 2013
Supplier Development
Figure 4 Camelot ,2014
Figure 6. Xr-colcultancy, 2014
Cellular Manufacturing
7 Types of Waste
One of the largest companies in the world 2011 snapshot
Total revenues 83.6 billion CHF
265,000 employees
481 factories in 87 countries
CEO of Nestle,
Peter Brabeck - Limathe
"From project-driven initiatives
to a sustainable attitude - aspired approach
Tour Operation Findings

Brazil: Lean thinking, TPM
Malaysia: SAWT
USA: focus on teamwork
Australia : SAWT
Germany : TPM
Asia : Quality cycles,
Small Groups Activities
Nestle Continuous Excellence
Common Model throughout the Company
Focused on Sustainability
Use of Best Practices
Elimination of Duplication
Enable learning from implementation

Beyond Cost - Saving

Focus on 3C's
Consumer Delight
Competitive Advantage
Compliance Excellence
Engage People
Understand Value
Evaluate adding or not
value Activities
Eliminate Not adding
Continuous Improve
value stream
John Cox, 2011
Jose Lopez, Nestle Vice-President
Three Steps for implementation
Nestle Continuous Excellence foundation
Nestle Integrated Management System
Ensures health, safety and quality
Leadership Development
successful profiling
talent pool
leadership and coaching
Goal Alignment
align company's and employees' goals
30% reduction of Consumer Complaints
9% cost reduction
90% efficiency - productivity
zero accidents
Nestle Continuous Excellence inception
Pilot-launch Results
NCE - implementation in 300 factories
The motivation of employees' has completely changed
1.5 billion CHF in cost savings
5% - 6% yearly organic sales growth
Create your own adaptable model
Start with foundation
Change will not come quickly
Balance local agility and global efficiency
Multi-level leadership is critical
Encourage participation and ownership
in order to create a mindset change
Full transcript