Report on AI Incorporation in Nestlé: Project Management Perspective

This report presents a comprehensive analysis of an AI implementation project for Nestlé, focusing on operation and project management aspects. It begins with an overview of the project objectives, emphasizing the benefits of AI integration for optimizing existing technologies, enhancing stakeholder activities, and improving product quality. The report details the project scope, outlining considerations such as time management, resource allocation, and the need for dedicated IT experts. It also defines project assumptions, responsibilities of stakeholders, and a timeline with a Gantt chart. Risk management strategies, including the identification, analysis, and mitigation of potential risks like cybersecurity threats and ethical considerations, are discussed. Furthermore, the report covers stakeholder management, project funding, and the application of Total Quality Management principles to ensure project success and competitive advantage. The report concludes with a detailed reference section.

Running head: OPERATION AND PROJECT MANAGEMENT
Operation and Project Management
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1OPERATION AND PROJECT MANAGEMENT
Table of Contents
Project Objectives................................................................................................................2
Organization objectives.......................................................................................................2
Project Scope.......................................................................................................................4
Project assumptions.............................................................................................................5
Project responsibilities.........................................................................................................5
Work Breakdown structure of the project.......................................................................9
Risk Management..............................................................................................................10
Description of Risk Management......................................................................................11
Stakeholder Management..................................................................................................12
Project funding...................................................................................................................13
Total Quality Management................................................................................................14
Reference...........................................................................................................................16

2OPERATION AND PROJECT MANAGEMENT
Project Objectives
The incorporation of Artificial Intelligence (AI) can be very much significant for
the entire Nestlé fraternity all over the world as it can optimise the existing technologies
which are increasingly used in this commercial establishment such as the robotics as well
as the big data technologies (Dirican 2015). Most of the fraudulent activities of each of
the stakeholders of this organization can be enhanced using the service provided by
Artificial Intelligence. The mission and vision of Nestlé can be significant enhanced
using this emerging technology. Thus, it can be stated that the incorporation of AI can be
very much significant to ensure the organizational growth of Nestlé.
The added investments required for the strategic team of Nestlé can be reduced
due to the use of this technology. At the same time, it can also be said that quality of
packing and quality of product development can be improved significantly due to the
uses of AI in Nestlé (Garcez and Nedel 2019). The time required to understand the
market position of Nestlé as compared with the other reputed food corporations can be
reduced due to the employment of AI in the working space of Nestlé. Thus, it can be said
that the performance of both the internal as well as the external stakeholders can be
significantly enhanced due to the use of AI.
Organization objectives
The prime organizational objectives of Nestlé are protection of the natural capital,
promotion of sustainable consumption, reduction of food loss and waste and
improvement of the packaging performance of the internal stakeholders of Nestlé.

3OPERATION AND PROJECT MANAGEMENT
There are different categories of AI platforms which can be considered in the
business environment of Nestlé such as Apache Prediction IO and NVidia Deep Learning
AI and IBM SPSS and Meya which can be used in the business environment of Nestlé in
order to manage the internal and external operations as well as the organizational
objectives of Nestlé (Hahn 2018). The organization targets of Nestlé can be maintained
effectively using the Apache Prediction IO.
Figure 1: Operations of Apache Prediction IO
(Source: Harnie et al. 2017)

4OPERATION AND PROJECT MANAGEMENT
Project Scope
The employment of this AI platform must be a much-planned approach
considering each of the drawbacks and limitations of using AI. Dedicated IT experts must
be hired on a contractual basis by Nestlé in order to study the advantages and the
disadvantages of using this AI platform in the business environment of Nestlé (Kaplan
and Haenlein 2019). All the business risks which can have an undesirable impact on the
growth and productivity of Nestlé must be studied in the first place before incorporating
this new AI platform. Special training sessions such as orientation training, onboard
training, skills development training, and services training must be given to both the
internal as well as the external stakeholders of Nestlé.
Time management is also one of the significant constraints associated with this
project as the expectation of the consumers of this organization keeps on changing every
moment (Brynjolfsson and Mcafee 2017). Thus, it can be said that management of time
and resources will be very much significant to address the project goals which is
incorporation of Apache Prediction IO in the business environment of Nestlé.
Figure 2: Representation of the work flow of Apache Prediction
(Source: Lin et al. 2019)

5OPERATION AND PROJECT MANAGEMENT
Project assumptions
Time management plan as well as the cost management plan will be considered to
finish off this project within the specific period of time. The different costs associated
with this projects in terms of hiring professional IT experts, server costs, and costs to
address the limitation of this AI platform all these different categories of cost must be
planned and addressed using AI. The other project assumptions are implementation of
this platform using the business models (Makridakis 2017). The other major assumptions
of this project is the utilization of the resources which has to be done in an organized
manner so that the project results in success and growth for Nestlé.
Project responsibilities
The roles and responsibilities if each of the stakeholder who will be working in
this project are described in the following table.
Stakeholders Category Responsibilities
Project Manager Internal Stakeholder Documentation control and manage each of
the stakeholders working on this project.
Steering committee Internal Stakeholder Priorities of the organization and all the
operations will be monitored by the steering
committee.
Risk Analysis team Internal Stakeholder Understand the impact of using this AI
platform in the business environment of
Nestlé.

6OPERATION AND PROJECT MANAGEMENT
Finance team Internal Stakeholder Address most of the budget issues using the
financial management plan.
Security engineer External Stakeholder The security of the new platform will be
maintained by the security engineer
Consumers External Stakeholder They can state their opinion about the use of
this platform of AI in Nestlé.
Local communities External Stakeholder The impact of using this platform of AI
must be understood by the local
communities so that sustainable
development is achieved.
Manager Internal Stakeholder Both the branch manager and operational
managers of each offices of Nestlé must be
monitoring the activities of the programmer
who will be working in the project.
Power Users/ IT
experts
External Stakeholder Both designers as well as developers must
have an in- depth knowledge about the
business processes of Nestlé so that the
incorporation of this new platform can be
actually beneficial to improve the
producticty of this commercial
establishment.
Table 1: Stakeholders of the project

7OPERATION AND PROJECT MANAGEMENT
(Source: Created by the author)

8OPERATION AND PROJECT MANAGEMENT
Timeline with Gantt chart
The detailed description of each phase of the project month are represented in the
following diagram
Figure 2: Timeline of the project
(Source: Created by the author using MS Project)
ID Outline
Number
Task
Mode
Task Name Duration Start Finish Predecessors
0 0 Incorporation of Apache
Prediction IO in Nestlé
90 days Fri
07-06-19
Thu
10-10-19
1 1 Month 1 30 days Fri 07-06-19 Thu 18-07-19
2 1.1 Understanding the issue
in operations
10 days Fri 07-06-19 Thu
20-06-19
3 1.2 Identification of risk
mitigation stratgies
5 days Fri 21-06-19 Thu
27-06-19
2
4 1.3 Identify the areas of
improvement
5 days Fri 28-06-19 Thu
04-07-19
3
5 1.4 Understand the
advantages and
limitations of Apache
Prediction IO
10 days Fri 05-07-19 Thu
18-07-19
4
6 2 Month 2 30 days Fri 19-07-19 Thu 29-08-19
7 2.1 Selection of the resources 5 days Fri 19-07-19 Thu
25-07-19
5
8 2.2 Finance and Time
management plan of the
project
5 days Fri 26-07-19 Thu
01-08-19
7
9 2.3 Incorporation of the
platform
20 days Fri 02-08-19 Thu
29-08-19
8
10 3 Month 3 30 days Fri 30-08-19 Thu 10-10-19
Branch manager
Risk mitigation team
Business Analysts
Operation Manager
Steering commitee,Project manager
Business Analysts,Project manager
Branch manager,Operation Manager,Steering commitee
12-05 16-06 21-07 25-08 29-09 03-11 08-12 12-01 16-02 22-03 26-04 31-05
11 March 21 May 01 August 11 October 21 December 01 March 11 May

9OPERATION AND PROJECT MANAGEMENT
Work Breakdown structure of the project
Figure 3: WBS of the project
(Source: Created by the author)

10OPERATION AND PROJECT MANAGEMENT
Risk Management
Table 2: Risk and the risk mitigation strategies of the project
(Source: Created by the author)
A B C D E F G H I
IDENTIFIED RISK / CHALLENGES PROBABILITY
(1-5)
IMPACT
(1-5)
SCORE
(B x C) RISK PLANT SERVICEABILITY
IMPACT
BUSINESS
IMPACT
RISK MITIGATION /
CONTINGENCY PLAN ACTION STATUS
1 Cyber security risks 4 3 12 High
The cyber security risk can have a
huge impact on the impact of using AI in
Nestlé
Business operation
can be impacted due
to the use of AI.
Updation of the latest patches of the OS
can be useful to address this cyber
security risk.
No actions required
2 Less area of expertise/ skills 2 3 6 Medium
The low area of expertise is very mucu
desired to understand the impact of
using AI.
This risk can have
an undirable impact
on the quality of
service.
Skill development training can be very
much usefull to address this issue. Ongoing process
3 Archietectural flexibilty 3 4 12 High
This risk can have a undesirable imoact
on the grow th and productivity of
Nestlé
Quality of product
cn be ef fected due
to the uses of AI.
Orientation tarining can be very much
useful to address this risk. No actions required
4 Industrial Regulations 2 2 4
Low
The sustainable developmebt can be
af fected w ith this risk. Mainatining
sustainable
environment is
possible using this
risk.
Each stakeholder of Nestlé must be
understanding the indutrial regulations. No actions required
5 Aligning w ith the business 4 2 8 Medium
The entire business and the factirs
responsible for the success and failure
of the projet can be affceed due to this
risk.
Business provcess
can get compligated
due to this risk.
Risk management team help to address
this issue. Ongoing process

11OPERATION AND PROJECT MANAGEMENT
Description of Risk Management
Risk management is very much significant for Nestlé as it can help this
commercial establishment to minimise the undesirable impact of using AI in Nestlé. Each
of the five steps of risk management such as the identification of the risk, analysing the
risk, evaluating the risk, treating the risk and monitoring the risk can be very much
beneficial to address the complexities of incorporating new technology in Nestlé (Moro,
Cortez, and Rita 2015). The three different categories of risk, such as strategic risk,
operational risk, as well as the financial risk, can be avoided using the risk management
procedures.
There are different categories of risks which are associated with the incorporation
of Apache Prediction IO in Nestlé such as the cyber security risks, risk associated with
the skills level of the employees who will be using AI in the business environment of
Nestlé, lack of architectural flexibility, managing the global industrial regulations and the
aligning Artificial Intelligence with the present business practices of Nestlé. All these risk
must be addressed in an organized manner which can help Nestlé to meet or accomplish
the organizational target.
Along with these there are few limitations associated with the use of Artificial
Intelligence as well such as the auto programming facility of AI algorithms, inaccuracy in
the calculation is the other significant limitation of using the AI services in global
corporate establishments. The other significant limitation of incorporating AI in Nestlé is
the huge maintenance cost of AI. Thus it can be said that risk management procedures

12OPERATION AND PROJECT MANAGEMENT
must be used in Nestlé to address all the risks associated with the use of the AI based
services in Nestlé.
Considering the specifications of Apache Prediction IO it can be said that the
lack of knowledge about the functionality of this platform is one of the other reason
behind the need of risk management (Ransbotham et al. 2017). There are lots of ethical
considerations associated with the use of this medium which must be addressed in the
first place using the AI platforms.
Stakeholder Management
Stakeholder management is one of the most significant aspect regarding the
successful incorporation of the AI platform in Nestlé. It can also be said that the selection
of the efficient stakeholder management strategy can be very much significant for success
as well as the failure of projects. It must be said that the selected stakeholder management
strategy must be aligning with the business process and the business protocols which are
maintained in Nestlé. The stakeholder management plan is directly associated with the
communication plan, which must be selected by the project manager of this commercial
establishment (Reilly 2019). Engagement of the stakeholders is also a very significant
criteria during the enactment procedure of AI in Nestlé. Stakeholder identification must
be aligning the business needs and expectation of the consumers of this commercial
establishment. The other significant aspects of the stakeholder management are
stakeholder register, stakeholder analysis and responsibility assignment matrix.

13OPERATION AND PROJECT MANAGEMENT
Nestlé have both internal as well as external stakeholders who will be directly
associated if AI technology is introduced in the business environment of Nestlé.
Communication between each of these stakeholders is very much significant for the
incorporation of this technology in Nestlé (Roca et al. 2016). Understanding the project
goals how the new technology will help them as well as organizational growth. Most of
the investment decision must be aligned with stakeholder management. The need for
additional funding must also be done using stakeholder management. The communication
between each of the internal as well as the external stakeholders, can be very much
beneficial to reduce the risk factors of this project which are highlighted in the above
section of this plan. Most of the collaboration program can also be improved using the
communication plan (Skilton and Hovsepian 2017). The interest grid of the stallholders
can also be enhanced using the communication plan which must be practised between the
internal as well as the external stakeholders of Nestlé. Stakeholder management approach
is also very much required to maintain the complexities of incorporating AI in Nestlé.
Most of the project relationships which are required between each of the project team
members can be enhanced using the communication plan. It can be said that
communication between each of the stakeholders is possible using social media platforms
such as Dropbox, Google Drive. SharePoint and Skype. Video conferencing can be very
much important to address the complexities of the business components of Nestlé. It can
also be said that cloud based communication platforms such as CPaaS can also be very
much beneficial for most of the real time communication which will be required during
the enactment of AI in Nestlé.

14OPERATION AND PROJECT MANAGEMENT
Project funding
Crowd funding platforms, as well as the investment from the board of directors
and other subsidiary organization, are very much required for incorporating AI in Nestlé.
At the same time it can also be said that a collaborative approach between the
stakeholders can be very much beneficial to incorporate this new technology in Nestlé.
Total Quality Management
The concepts and principals of TQM must be considered by the stakeholders of
this project as they it will ensure the success of this project. Cost reduction, identification
of the defects in the production rooms and improving the morale of the employee who
will be using the new technology can be monitored if the concepts of TQM are
considered during the enactment procedure of the AI in Nestlé (Obeidat et al. 2016).
Maintaining the TQM during the incorporation of the new technology can be very much
beneficial for Nestlé o have a competitive advantage over the other similar organizations.
Six sigma can also be very much helpful to identify the limitations of using AI in
Nestlé. It can also be said the evaluating the impact after the installation of AI can be
done using the six sigma methodology. The quality of service can also be enhanced if
Nestlé use this methodology after the installation of Apache Prediction IO which is a
very significant platform of Artificial Intelligence (Pugna, Negrea and Miclea 2016).
Continuous improvement is very much required in the production as well as the strategy
rooms of Nestlé which is possible if the steering community of Nestlé decides to use the
Kaizen methodology in order to improve the quality of service offered by this

15OPERATION AND PROJECT MANAGEMENT
organization. Just-in-Time methodology can also be used in Nestlé as it can help them to
reduce the waste production of this organization.
The networking investments of Nestlé can also be improved using network
planning, network planning can also help Nestlé to manage traffic of this corporation. It
can also be said that project management tools such as Liquid Planner, Base camp and
PERT can be very much useful to manage the entire implementation procedure of AI in
Nestlé (Ahmed et al. 2018). Co-ordination between the stakeholders of this project and
activity analysis are the prime contribution of using PERT chart in Nestlé.

16OPERATION AND PROJECT MANAGEMENT
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