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
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 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.
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.
point is to meet the different needs of the purchaser consistently by advertising
and offering products of a reliably high quality.
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.
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.
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
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
Statistical process controlInspectionQuality assuranceStrategic quality managementContinuous 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.
(Lakhe and Mohanty, 2013). 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. Figure 1.
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.
QM approaches along with the evolution of the organisational Pattern
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
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. 46 defined the term entrenchment as “the presence of a practice
within organization such that abandonment of it is unlikely, even under extreme
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” (Stahl, 1999). “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.” (Lewis, 1996).
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.(Balgun, Hope Hailey and Scholes, 2014).
“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 “( Collard, 2001 ) . 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
“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” (Stanford, 2005 ) .
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:
value from the standpoint of the end customer.
each step in a business process and eliminating those steps that do not
the value-creating steps occur in tight sequence.
the first three steps on a continuous basis until all waste has been
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.
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.
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.
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.
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
Production Process flow
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.
Below is the flow chart
and brief description of the various processes involved in fruit juice
production are outlined
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
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.
Boiling of fruits in the boiler
Supervisor in charge monitors
Storage of boiled fruit
in the storage tanks
Then supply the boiled
fruit to the mixing tank
Supervisor in charge monitors
Add additives to the
Pump the mixture to syrup
Supervisor in charge monitors and HACCP
monitors the additives
Pump the blended juice
Heat to 90 C to
inactivate enzymes and living organism.
Load the juice to storage
Juice – end product is ready
Timer on heating equipment
Juice then goes through final filtration
before transferring to juice tank
Juice ready to pack from juice tank
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. (Batch of 15000 Liters).
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.
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%.
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.
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)
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
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
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.