Lean Manufacturing Assignment - Nestle
Added on - 21 Apr 2020
1Lean Operations in NestleName:Course:Tutor:College:Date:
LEAN OPERATIONS IN NESTLE2Understanding of Lean throughout its yearsThe application of Lean operation in Nestle firm leads to effective and efficientutilization of resources. It is made possible because of the implementation of this flexible systemwhich allows the use of fewer resources in manufacturing. The application of Lean since 2008in Nestle and throughout its operative years, the company has managed to make an annualsavings of CHF 1.5 billion. This saving is enabled by higher productivity, low manufacturingcosts, shorter cycle time and more top quality in Nestle. The more significant productivitythrough the use of lean means massive sales of the manufactured products to esteemedcustomers. This higher productivity entails accommodation of particular products features fromcustomers placed orders (Rahaman & Lal 2017, p. 39).The employment of Lean systems has led to less production cost. This because leansystems incorporate the application of modern technology in manufacturing of goods. Currentinnovation uses capital-intensive production techniques which exclude the number of peoplerequired in business operation. The reduction in labor means low production expenses hencehigh-profit levels. Nestle managers concerned with product improvement and quality hasmanaged this through the utilization of lean operation(Mohamad 2014, p. 83). The attainment of1.5 billion saving in Nestle has been made possible through the consideration of shorter cycletime. This technique fastens and shortens the manufacturing process. The response to individualcustomers placed orders means their maintenance in the company. Despite the fact that Nestlerapidly responses to customer’s needs, it puts into consideration the quality of the product. Hightechnology enhanced through lean operation makes it possible for high-quality manufacturinggoods. These high-quality products are fast moving and have contributed significantly to therealization of the 1.5 billion profits.
LEAN OPERATIONS IN NESTLE3The application of Lean system includes the employment of the Sigma six models byNestle. Throughout its existence years, the company has been fighting the war on wastage,implementation of simplified process and aggregate value goals. Six Sigma is a technique, data-driven tactic, and approach for reducing defects in any progression from production totransitional in goods. The company aims at increasing the annual 1.5 billion profits to 2 billionthrough the six sigma model. This anticipated approach by Nestle considers just in timeproduction, total quality management, and lean manufacturing.Just in time creates a highly synchronized dispensation technique in which products movethrough the system and services are executed, only as they are desired. This method which iscurrently implemented aims at timely delivery of goods to customers. The approach as underlean will get enabled by advancement in technology by Nestle. It is because timely delivery isfacilitated by the speedy manufacturing process(Tshuma & Rivera 2015, p. 77). This process iscurrently implemented by the company also strategizing on how to respond to placed orders fromesteemed customers. Just in time too cuts down additional operation costs. Between 1997 and2007, Nestlé went from 495 factories and CHF 67 billion in sales to 480 plants and over CHF100 billion in sales.The Lean technique of six sigma has also maintained total quality management in Nestle.The CEO Peter Brabeck recognizes overall quality management in Nestle. It ensures inclusion ofspecific features as required by potential customers while maintaining quality. Brabeck postulatethat administration of total quality includes cost saving in the entire production process.Through the enhancement of lean process, the quality is maintained and improved in allproducts. In the year 2006, the CEO Brabeck said that the lean process though consideration of
LEAN OPERATIONS IN NESTLE4total quality management would move Nestle from project-driven initiatives to a sustainable,attitude-inspired approach to maintain product quality.The company as it practices Lean operation; it currently aims at implementing simplifiedmanufacturing process. The simplified method means maintaining low costs while producinggoods and maintaining quality. As the company presently aims at this objective, it serves itscustomers by through replacement of materials or parts by their demand. The implementation oflean ensures a shift from a manual system to automatic one which signifies the need for rawmaterial and their associated cost. Brabeck said that the company branches are aiming atworkload leveling to reduce the cost. It means that the initially placed orders are first sortedfollowing a planned strict schedule (Rahaman & Lal 2017, p. 99).Nestle faces a test to connect with everyone at all levels of the association in a frequentconsistent change to quicken execution change and guarantee manageability. José Lopez as thenew vice president of global operation in 2007 was given mandate by Brabeck to solve thisproblem. Lopez though the application of Lean process initiated a collective goal strategy. Itrequires that labors from different departments in different branches focus on the same goals.Lopez is presently working on the improvement of the entire Nestle manufacturing systemthrough the cooperation of workers(Rahaman, & Lal 2017, p. 43). The quality at each source indifferent companies was a challenge. Lopez through lean approach suggests the automaticoperation of activities to ensure continuous improvement and accelerate performance.Implementation of Lean at Nestle CompanyIn Brazil, Nestlé had executed LEAN Thinking, an administration rationality concentrating onzero waste and on Total Productive Maintenance (TPM) in its plants starting in 2005. In