Analysis Of Total Quality Management Of Nestle Drink
Introduction
Quality management has become a vital part of the business. It is the process of ensuring, controlling and quality improvement, both in operations and business productivity. Customers should be satisfied and should feel that they are receiving products with superior quality and which undergoes constant modifications and changes to meet up the timely demands. High quality of the services and products results in success of the business. Satisfied customers would be repeated customers, for which every business is striving for. Quality management should continuously be reviewed for the success of the business. In this assignment, quality management and process phase of the Nestle drink is analysed and recommendations are made.
Company Introduction
Nestlé is the world's driving nourishment and refreshment organization, with offers of about CHF 83 billion. It has 230,000 representatives worldwide and works 520 processing plants in 82 nations. Its items are accessible all around, including such remote markets as North Korea, and they are sold under various brands, for example, Nestlé, Nescafe, Nestea, Maggie, Buitoni, Perrier and Friskies. Organization has a place with more than 200,000 investors, today; Nestlé is about double the extent of its closest rival in the nourishment and refreshment division. The organization is good to go for more than 130 years. Nestlé point is to meet the different needs of the purchaser consistently by advertising and offering products of a reliably high quality. The confidences that consumers have in the brands is an aftereffect of numerous times of learning in advertising, innovative work, and additionally progression - customers identify with this and feel they can put stock in our items.
The aim of the company is to convey the absolute best quality in all that they do, from essential deliver, to selection of providers and transport, to formulas and bundling materials. The key needs of Nestle Juices are around conveying investor esteem through the accomplishment of reasonable, capital productive and beneficial long haul development. Upgrades in productivity will be accomplished. Nestlé's brands and items are focused in consistent development and revise with the goals to meet the objectives. Nestle guarantees that their products are accessible at whatever point, wherever and however our shoppers need them. Nestlé's motivation is to offer protected, great, advantageous and nutritious nourishments to enhance wellbeing and prosperity of shoppers of any age everywhere throughout the world. To address the issues and wants of the present and tomorrow's shoppers, Nestlé is firmly dedicated to Research and Development (R&D) to enhance existing items and grow new nourishments with particular medical advantages.
Literature review
According to the British Standards institution, quality management is defined as “That aspect of the overall management function that determines and implements the quality policy”.
“QM can provide a clearly defined structural frame work in which all organizational activity occurs- a must for empowered self-directed or cross-functional work place teams, multi-skilled flexible workforces, or dynamic workplace environments” (Grimwood, 1997). Since the 1980’s and 1990’s, effective quality management was considered as the key to competitive advantage and the quality management concepts were developed in parallel to the development new management ideas. Quality management can be divided into 5 major stages:
- Statistical process control
- Inspection
- Quality assurance
- Strategic quality management
- Continuous competitive improvement.
Quality management, the term itself is referring to activities which are coordinated that can control and direct the quality of the product and services of an organization. Quality management basically includes setting the quality policies and objectives hand in hand with planning, control, assurance and improvement.
During the 90’s organizations can be described as “basic” since they focused on the existence rather than progression. Only the top level management and few employees dealt with the customers. Majority of the employees had a lack of awareness regarding the customer requirement. The adopted management approach was top-to-down, where the employees received the instructions from the management where there was no approach to improvement. But in today’s context, quality management has been employed as the principal factor which determines the organizational excellence and development of the business. Therefore, the current quality management approach is to be systematic, across the company and linked to the corporate strategic plans. Still, the ultimate aim of quality management remains to be the same as continuous improvement of management process, thereby advancing on the performance of the business operations, developing effective operational strategies and excellence, ultimate aim to be the stakeholder satisfaction. Quality management remains very crucial to the business, although the concept has been common. “By the mid-and the late 1990, quality disappeared as a major topic in the media and was less and less a focus of top management’s attention. This is a natural process manifested in the growing normalization of quality improvement as a management activity. In this process, simplified versions of the more formal and often complex quality methodologies gradually evolved. ” In past, Cole (32, p. 47) Similar time, the ISO 9000 series standards exhibited extraordinary growth and application, and represented the most remarkable globally recognized standardisation effort. Companies who are the users of ISO 9001 as their major quality management theme are comparatively smaller and less developed in organizational terms, but many subsequently aspire to acquire TQM or award of excellence. A board historical perspective indicates that the quality management approaches have emerged as a number of waves, with different spread, origins, influence and time-scale. Attempts to depict the origin of quality management approaches since the evolution of the organizational pattern over time. Since 1960, many quality management systems were proposed by considering organizational aspects from adaptive level of total quality to excellent – sustainable organization.
USA and Japan has specialized and developed most of these methods; but they pass across the globe and have been adapted and adopted in countries with different industrial culture. Difference in the implementation and practise of quality management techniques continues. For instance, the mix of traditional Kaizen costing and Lean production over the time from1994 to 2001, Japanese automotive plants depicted remarkable productivity improvement and defect rates reduction, compared with those in the United States and Britain.
At the same period, the impact of TQM has forced to bring radical organizational changes was strongly felt in USA, and some extent to Europe. Presently in the USA, Six Sigma, Lean and TQM (including MBNQA) appear to be the most-liked concepts of quality management. In Europe, the ISO 9000, Kaizen, 5S and TQM are most liked techniques along with several quality award models like MBNQA and EFQM. Over the past few decades, there has been many studies and discussions for the reason of inferior quality in industries and prescribed quality improvement techniques for quality improvements. In the attempt to define quality management practices, Zeitz et al. [256] refers to quality adoption practices as “specific practices that has been adopted, but which lacks entrenchment. ” Dale et al. defined the term entrenchment as “the presence of a practice within organization such that abandonment of it is unlikely, even under extreme pressure. ” At broad spectrum; Youssef, Koch and Dolan (252, p. 946) define quality management practices as those: “Quality techniques and behaviours entrenched within an organization or its sub-units under two conditions. First, these techniques and behaviour are in congruent with criteria established by International Standardization Organization (ISO) or they are embodied in a framework of national or international quality award frameworks such as those of MBNQA or EFQM. Second, these techniques must help organization or its sub-units achieve a sustainable competitive advantage at both operational and strategic levels- that is they impact the business performance of an organization or one or more of it sub-units. ” “Total quality Management (TQM) is a quality management technique that embodies the belief that the management process must focus on integrating customer- driven quality throughout an organization”. “It stresses the uninterrupted betterment of merchandise quality and service bringing while taking into awareness the world that in order to accomplish this end, employee dealings needs to be every bit addressed, as the client can non-acquire the satisfactory services bringing from ill-motivated employees. ” The underlying principle for the execution of TQM strategy is view the organizational clients as key resources to the business. Through TQM techniques, customer concerns can be understood in depth. Agreeing to Balogun and Hope-Hailey, techniques should be seen as a process/system which is able to develop in the employees as a mission of the administration.
“Quality merchandises or services need non merely to conform to consumers demands; the product/service must be acceptable. Effective TQM scheme entails that the product/service must travel beyond acceptableness for a given monetary value scope. For illustration, instead go forthing customers/clients satisfied that nil went incorrect with the merchandise or service, a product/service should give the customers/clients some delicious surprises, or provide unexpected benefits”. This means, hence, that product/service quality confidence requires more than merely run intoing customers/clients minimal criterions. The degree of merchandise quality is the grade, to which a product/service is equal to or greater than customers/clients outlooks. “One of the major obstructions that have bedevilled the successful execution of TQM is the non – acknowledgment of quality squads in organisations in the pursuit for a successful scheme that will raise the organisation above its rivals”.
Lean Management, which is another one of the most like quality technique is an approach of running a business organization which undergoes continuous improvement. It is an ongoing effort to improve products, process or services, which require “incremental” enhancement over time for increased quality and efficiency. It involves factors that waste time and resources which is attained through analysing the business process and then eliminating non-value adding step. Lean Management has been adopted from Japanese manufacturing industry which includes: Defining value from the standpoint of the end customer. Identifying each step in a business process and eliminating those steps that do not create value. Making the value-creating steps occur in tight sequence. Repeating the first three steps on a continuous basis until all waste has been eliminated.
These lean principles ensure that the processes involved with bringing a product to market remain cost effective from beginning to end. Lean production or lean manufacturing is a systematic method for the elimination of wastes within a manufacturing process. This may include wastes created through unevenness in workloads, overburden and any work that does not add value. From the point of view of the customer who consumes a service or product, “value” is any process or action that a client would be willing to pay for. In essence, lean is focus on making obvious what appends value by decreasing everything else.
Quality management
Quality management is the arranged and methodical exercises executed in a quality framework with the goal that quality prerequisites for an item or administration will be satisfied. It is the efficient estimation, correlation with a standard, checking of procedures and a related criticism circle that gives mistake counteractive action.
Two standards incorporated into quality management are: 'Fit for reason', the product ought to be appropriate for the planned reason; and 'Right first time', errors need to be dispensed out. Quality Management incorporates administration of the nature of crude materials, congregations, items and segments, administrations identified with creation, and administration, generation and examination forms.
Following the comparable functional steps, the Nestle has an incredible concentration on the nature and quality of its products. To guarantee the consistency of its Juice and to get it free from any outside pollution HACCP is connected at the plant. HACCP is a framework which goes under the food safety program and in this system such points or process steps in the system are determined which can lead to the deterioration of the product quality. Once these steps are finalized then the controls are applied on these steps. Similarly controls are applied from End to end product process i. e. form receipt of raw materials to the finished goods. All the Raw materials are checked before being given to production and their conformance with the agreed specifications with suppliers are verified. Similarly the function of quality control is also to check in line parameters of product manufacturing process. In juice plant the sugar percentage and brix is checked and after that taste testing is also done by a panel of people which is certified by the company. Many of the organizations are accomplished through team work, therefore it is essential to determine the factors which has led to the effective as well as ineffective process of the team. The INPUT-PROCESS-OUTPUT model has been adopted as an approach to understand the team performance and extent strong influence on the performance. The framework is based on classic systems theory, which states that the general structure of a system is as important in determining how effectively it will function as its individual components. Similarly, the IPO model has a causal structure, in that outputs are a function of various group processes, which are in turn influenced by numerous input variables. In its simplest form, the model is depicted as the following: Input —> Process —> Output Fruit Juice- Production Process flow
Production of fruit juice is standardized process and initial processes for all fruits will be similar, as will be the last stage of juice pasteurization section and packaging, although differences in handling juice composition arise in certain cases due to the nature of the fruit and percentage of vitamin involved.
Fruit Juice Production Process
Fruits boiled in the boiler and shifted to the plate heat exchanger. Then it is stored in the storage tank. Then supplied to the mixing tank in the desired quantity while in mixing tanks; any additives to the mixture is made at this stage before it is pumped to syrup storage tank. Blended juiced is then pumped through pasteurizer; where it is heated to 90 C to inactivate enzymes and living organism. After pasteurization the juice passes through final filtration, before lauding it into juice tank. Juice from the tank is ready for packaging.
Packaging and Labelling
The juice is the packed in the quantities demanded by the market. Consumer packs as like 200ml and 1000ml tetra pack and then labelled as Nestle Juices. Then the final product is stored in cool dry store
Process Analysis
In a repetitive process the average time between the completions of successive units is called cyclic time. For Nestle 90 min is batch preparation time. 60 min is the process time and 75 min packing time.
Bottleneck
The limiting factor or the constraint in the process is called bottleneck. In Nestle juices Batch making is the bottle neck. What should be the size of batch? Another bottleneck is mixing plant. It takes the largest amount of time.
Efficiency
It is the ratio of actual output of a process relative to some standard input. Packing machine at 100 % efficiency produces 7000 packs in 1 hour. At Nestle the packing machine efficiency is 95%.
Run time
It is the time required to produce a batch of parts. This is calculated by multiplying the time required to produce each unit by the batch size. If the machine produces 7000 packs in 60 t, then it takes 0. 514 sec to produce one pack. So the batch will be completed in 3855 seconds, if packed on two similar machines. This will make in total 15000 packs.
Setup time
It is the time required to prepare a machine to make a particular item. For Nestle Juices, 3. 5 hrs. is the setup time. (Sum of CIP and sterilization processes)
Operation time
It is the sum of the setup time and run time for a batch of parts that are run on a machine. For Nestle it is 210 + 75 = 285 min Through put time It includes the time that the unit spends actually being worked on together with the time spent waiting in a queue. For Nestle Juices it is 90 mints (Batch making time) + 60 t( process time) + 75 mints (filling time) = 225 mints
Recommendation
Nestle have achieved the highest piece of the overall industry for their brands. The main issue they can confront is from constrained Distribution Channel and the bottleneck of blender. Nestlé’s problem could be eliminated by strategic ideas and implementing those plan which can be effective in development and future profits for the company. Solution to the problem of distribution channel is go to the joint ventures for distribution and make others to do their job as Pepsi. co have their own joint ventures for distribution purpose which even actually gives them an edge. Thereby, if they move forward with these integration, they will be able capture more of the market share and the product demand can be increased.
