Operation and Project Management

Running head: OPERATION AND PROJECT MANAGEMENT
Operation and Project Management
Name of the Student
Name of the University
Author Note

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Table of Contents
1. Introduction............................................................................................................................4
1.1 Overview of the commercial establishment.....................................................................4
1.2 Insights of the operation...................................................................................................5
1.3 Supply chain and quality challenges................................................................................7
1.4 Quality issues associated with the suppliers....................................................................8
2. Operation strategy and exploring solution to address challenges..........................................9
2.1 Present operations strategy...............................................................................................9
2.1.1 Product and design....................................................................................................9
2.1.2 Process Design........................................................................................................10
2.1.3 Planning and control...............................................................................................10
2.1.4 Innovation...............................................................................................................11
2.2 Short and long term solutions........................................................................................11
2.3 Internal considerations...................................................................................................12
2.4 External considerations..................................................................................................12
2.4.1 PESTEL Analysis....................................................................................................12
3. Supply Chain Management of Nestlé..................................................................................13
3.1 Definition of SCM..........................................................................................................13
3.2 Role of the assessor........................................................................................................13
3.2.1 Overall strategy of the firm.....................................................................................14
3.3 Challenges of SCM........................................................................................................14
3.4 Operations strategy for SCM.........................................................................................15
4. Lean and Quality Management............................................................................................15
4.1 Definition of Lean Management....................................................................................16
4.1.1 Benefits of Lean Management................................................................................16
4.1.2 Different categories of waste of Nestlé...................................................................16
4.2 Quality Management......................................................................................................16
4.2.1 Offline line approaches...........................................................................................17
4.2.2 Online approaches...................................................................................................17
4.2.3 Total Quality Management.....................................................................................17
4.3 Methods to address quality (FMEA)..............................................................................17
4.3.1 Linking with operations strategy.............................................................................18
4.3.2 Linking with lean operations...................................................................................18
5. Impact of Artificial Intelligence (AI)...................................................................................18
5.1 Definition of AI..............................................................................................................18
5.1.1 History of the technology........................................................................................18

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5.1.2 Use of this technology on other organizations........................................................19
5.2 Impact of using Artificial Intelligence...........................................................................19
5.2.1 Impact of using Artificial Intelligence on organizational objective of Nestlé........19
5.3 Challenges of using Artificial Intelligence....................................................................20
6. Conclusion............................................................................................................................21
Reference..................................................................................................................................23

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1. Introduction
The notable determination of this report is to evaluate the existing supply chain
networks, quality management processes, operations management, systems and procedures
and identify the competitiveness of Nestlé (nestle-me.com. 2019). The impact of using
Artificial Intelligence will be discussed in the later sections of the paper. The ensuing section
of the report will be briefing the overview of Nestlé.
1.1 Overview of the commercial establishment
Being one of the most reputed commercial establishment all around the world Nestlé
provides a wide range of service in terms of the snacks, pet foods, frozen foods, ice cream,
tea, confectionary, dairy products, coffee, breakfast cereals, bottled water, medical food and
baby food. This global commercial establishment operates in more than 190 countries all
around the world. There are 447 factories or production departments of Nestlé all around the
world.
There are numerous subsidiary organizations which are associated with this commercial
establishment such as L’Oreal which is the biggest cosmetics organization in the world.
Established in the year 1866, Nestlé grew significantly over the years and over the years most
of the strategies and operations changed (Bharucha 2016). This global commercial
establishment has numerous sponsor such as Walt Disney who is helping this organization to
have more exposure and maintain a competitive advantage over the other similar
organizations. Activities of Nestlé can be seen on reputed music festivals all around the world
such as the Beijing Music Festival and Salzburg festival (Akhtar,Xicang and Iqbal 2017).
This commercial establishment also sponsors internal sports events such as Tour de France
and IAAF’s kids athletic programmes. The famous Australian Institute of Sports also gets the
support of this commercial organization (Panigrahi and Chaudhury 2015). There are

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numerous social responsibility programs of this commercial establishment such as sustainable
agriculture development, creation of the shared values, Nestlé Cocoa plan, Ecolaboration,
World Cocoa Foundation, numerous rural development programs in developing countries.
There are lots of recognition for this global commercial establishment as well as they
received the Malcolm Baldrige National Quality Award for exceptional customers service
and market focus. The organizational leadership qualities of Nestlé si also very much superior
as compared with the other similar organizations (Galalae and George 2017). International
standards are maintained in the production room of Nestlé such as ISO 14001 and OHSAS
18001. Global Food Industry award was given to this commercial establishment in the year
2010 by International Union of Food Science and Technology (IUFoST). At the same time
Nestlé also won the gold medal award in the year for their contribution to environment
sustainability.
1.2 Insights of the operation
Contribution to the society is one of the most important priority of this commercial
establishment as strategies and operations. Being of the world’s leading nutrition maintaining
the resources is one of the prime challenges of this commercial establishment and operational
strategies are created by the operational managers of each of the business heads of Nestlé.
Rural development is also considered in the operational strategies of the
New plans and strategies are increasingly used in this commercial establishment, at
the same time IT innovations such as big data technologies are used by this organization to
categorise the structured as well as the raw data which are collected from numerous sources
such as the distributors and consumers (Ramesh 2018). The operations strategies are made in
such a way so that it have a direct impact on the society and as well as business.

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Transparency is maintained across most of the operations in the production room. It can also
be said that creating shared value is very much considered in the operation room of Nestlé.
Each of the operations are made in such as way so that that the net profitability of the
business is maintained (Garimella 2018). Discounted prices and other facilities are set in such
as way so that most of the probable consumers are attracted to this organization. Producing
the products and services is also maintained in such a way so that the expectation of the
consumers is met.
The entire manufacturing process of this commercial establishments are very much
optimised and they are managed using the Information System. This organization have an
extensive department as they provide services in terms of the health and wellness products
over 100 years. Improving accuracy and demand planning is the one of the key strategies
regarding the operations of this commercial establishment (Espinoza-Orias, Cooper and
Lariani 2018). Most of the promotional activities are managed according to needs and
expectation of the consumers in each countries. Cultural considerations and the risks of the
local market conditions are highly considered by the operational team of Nestlé.
The operational mangers of each branch identifies and monitors the performance of
each of the stakeholders of the business so that organizational growth is maintained.
Operational strategies includes designing of products and application of Just In Time and
establishment of supply chain.