GROUP PROJECT MANUFACTURING SYSTEM IN NESTLE

Development of Nestle in Viet Nam: Nestle Saigon's first sales office in Saigon was established in 1912.. Here are the milestones recording the rapid growth of the company in Vietnam: 19

HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY

-GROUP PROJECT MANUFACTURING SYSTEM IN NESTLE

I.Introduction of Nestle: 1

II Organization plan and management in the production system of Nestle: 3

III Manufacturing process and products: 5

VI Conclusion: 14

VII References: 14

I.Introduction of Nestle:

Nestle is a leading food and beverage company in the world, with a worldwide production and sales network Nestle operates nearly 500 factories in 86 countries worldwide, employs more than 280,000 employees, and marets 8,500 brands with 30,000 products

1 Origin:

Nestle the world's largest food and beverage company, headquartered in Vevey, Switzerland Current products of Nestlé include mineral water, baby food, coffee and dairy products

In the 1860s, pharmacist Henri Nestle invented a food for babies who could not be breastfed His first success was in saving the life of a premature baby who could not be breastfed or other conventional alternatives The value of this new product was quickly recognized since the new Nestle formula saved the premature baby's life Since then, Farine Lactée Henrie Nestlé milk powder has been widely sold in Europe

Nestlé was founded in 1866, but it wasn't until after World War I that businesses really grew with dairy products Up to now, Nestlé has acquired and merged many companies and brands

in the world, including Carnation, Rowntree, Dreyer's, Delta Ice Cream Nestlé even holds

up to 26, 4% stake in the world's leading French cosmetic company - L'Oréal

2 Development of Nestle in Viet Nam:

Nestle Saigon's first sales office in Saigon was established in 1912 Here are the milestones recording the rapid growth of the company in Vietnam:

1992: La Vie Company, a joint venture between Perrier Vittel of Nestle and a trading company of Long An was established

1993: Nestle officially returned to Vietnam and opened a representative office in Ho Chi Minh City

1995: Nestle Vietnam was born, officially started construction of Dong Nai factory

2002: Putting La Vie's second factory into operation in Hung Yen

2007: Choosing Dielthem as the official distributor for chocolate and confectionery products 2008: Establishment of the Special Nutrition Division

2011: Built Tri An factory in August, then repurchased Binh An factory (Gannon) in November in Dong Nai

2013: Nestle Vietnam inaugurated a new NESCAFE factory in Amata Industrial Park, Dong Nai; the main office of Nestle Vietnam moved to a new location at 5th Floor, Empress Tower, District 1 since September

10/2014: Nestle inaugurated a US $ 37 million production workshop at the Nestle Binh An factory

2015: Inauguration of a $ 80 million decaffeinated coffee bean factory

2016: Started construction of Nestle Bong Sen Factory in Hung Yen worth 70 million USD 2017: Inaugurated the Bong Sen Factory in Hung Yen and a modern distribution center in Dong Nai

2018: Inauguration of the NESCAFE Dolce Gusto Tablets Production Line at Tri An Factory, Dong Nai province

March 2019: Operating Nestle Bong Sen Distribution Center (Hung Yen province) applying logistics technology 4.0

September 2019: Completed the Second stage of the Nestle Bong Sen factory expansion project in Hung Yen

October 2019: Opening a modern and creative workspace at Ho Chi Minh City Office With a total investment capital of more than 600 million USD, Nestle not only demonstrates the company's long-term development commitment in Vietnam, but also wishes to improve the quality of life and contribute to a healthier future for Vietnamese family generation

3 Locations and facilities:

Today Nestlé operates 04 factories, including 03 factories located in Dong Nai and 01 factory in Hung Yen with representative offices in Ho Chi Minh and Hanoi

Factories: In Hung Yen province, batch 1PA, Thang Long Industrial Park II, My Hao District In Dong Nai province, laboratory and factories, 7 Street 17A, Long Binh Ward, Bien Hoa City, Dong Nai

Representative offices: Nestlé Vietnam Company Limited, In Ha Noi, Room 311, Floor 3, Ocean Park Building, No 1, Dao Duy Anh, Phuong Mai Ward, Dong Da District In Ho Chi Minh city, 5th Floor, Empress Tower, 138-142 Hai Ba Trung, Da Kao Ward, District 1

II Organization plan and management in the production system of Nestle:

1 Executive Board of Management:

Ulf Mark Schneider - is a German/American businessman, and the CEO of Nestlé In June

2016, Schneider was appointed CEO of Nestlé SA, replacing Paul Bulcke He started as CEO in January 2017, Schneider is the first outsider to run Nestlé since 1922 And in Viet Nam, Mr Binu Jacob replaced Mr Ganesan Ampalavanar, who recently became the General Manager of Nestle Indonesia Mr Ganesan has led Nestle Vietnam to grow strongly in the period from February 2015

to the end of March 2020 Nestle Group continues to expect experience and the ability to lead the strong team of Mr Binu Jacob to help bring Nestle to develop and grow with the Vietnamese market Before coming to Vietnam, Mr Binu Jacob experienced leadership positions including Regional Sales Manager and Senior Vice President, in charge of sales of Nutrition for Children of Nestle Group in China.

2 Human Resource analysis:

Nestle Vietnam has a team of high-quality staff that ensure entry standards at the office staff level In addition, this is also a young, dynamic and creative staff that contributes to Nestle many good ideas to jointly develop a new product in accordance with the consumption characteristics of Vietnamese people The members of the company, regardless of their position, always learn, improve their knowledge and working skills, share lessons and useful work experiences together to develop a sustainable business career of Nestle Vietnam

Challenge: Aging workforce and retirements, less experienced and smaller younger generations, lack

of investment in training and education Mismatch between training and education outputs vs business skill needs, lack of appropriate succession planning Recruiting from a narrow pool of potential talent, lack of proper policy regarding talent acquisition Lack of motivation to keep the competitive talents, high turnover rate, talent costs this year are inflated, brain drain.

3 Corporate Strategies:

It can be said that in Vietnam, Nestle applied a localization strategy to some products, but then when it entered the market, with a lot of pressure from costs and pressure to adapt to the locality This business has turned to a transnational strategy This is a somewhat risky step when not all businesses can implement this strategy However, this move of Nestle has brought many results for the business Nestle has acquired a huge customer loyalty file for its broad product portfolio In the past 5 years from 2019, Nestlé Vietnam has continuously grown 2 digits, this business has always been in the top 10 of developing enterprises

Challenge: Difficulty and complexity in the organization, rooted in the conflict between cost

reduction requirements and adaptive pressure; local adaptation requirements often increase costs leading to the elimination of cost reduction efforts

4 General comments on the company's activities:

a Financial and accounting activities:

Management accounting department: Always making future plans and continuously adjusting according to the changes of the goals, the market is a very good supportive tool for decision making

Financial accounting department: In addition to the functions of receivables and

payables, the company is interested in analyzing the cost of product costs in detail, finding the actual causes, to improve costs and control well according to financial indicators according to company regulations

b Production activities:

Strength: Using modern and flexible technology, the machinery and equipment installed at the factory must pass the technical inspection of a Nestle global technology support center in Switzerland In terms of production management, Nestle Vietnam complies with NQS (Nestle Quality System) standards, and achieves HACCP (Hazard Analysis and Critical Control Points) and GMP (Good Manufacturing Practices) certification.

Weakness: Some production lines have operated with high capacity such as coffee, soy sauce, seasoning powder, it is difficult to meet the increased demand in a certain time There are

also lines that have to produce a wide variety of products, which leads to

constant technical adjustments, resulting in production interruptions and high material costs for machine adjustments

c Marketing activities:

Strength: well organized, divided specifically for each department, providing

supportive information for new product development, planning appropriate production and business, implementing many advertising and promotion programs, developing and promoting market expansion

Weakness: The company's pursuit of advertising and sponsorship programs has pushed the company's advertising costs very high Besides that, Nestle Vietnam must strictly comply with the global Nestle advertising regulations According to the regulations of the mothers and children organizations, Nestle Global develops the following rules:

Do not advertise in any way for products for children under 12 months old

Company employees are prohibited from direct marketing, or giving free samples of these products to mothers

It is forbidden to reward salespeople for the sales of these product groups

d Research and application activities:

Based on the research results of 17 research and development centers serving all Nestle branches, Nestle Vietnam Research and Development Department has re-developed the product formulation to be more suitable for Vietnamese people Besides, it also includes the function of researching the recipe, the taste of competitors Compared to other companies Nestle Vietnam has a great advantage in using the available research results as well as research methods and equipment from the main company

e Quality assurance inspection:

Nestle Vietnam controls from the beginning of raw materials Every year, reputable suppliers are assessed to select key suppliers and maintain periodic inspections twice a year Pre-production materials and finished products prior to release must be approved by the Quality Control Department with the specific analysis criteria of the food industry and Nestle

III Manufacturing process and products:

1 Company products trading in Vietnam:

a KitKat:

Kit Kat is a chocolate bar made from wafers and chocolate.The wafers are covered with a layer of chocolate inside and out Each whole piece is considered a “finger.”, each package of Kit Kats usually has either one, two, or four fingers connected together In Japan, Nestlé has introduced over 300 different flavours since 2000, including ginger ale, soy sauce, baked potato, butter, creme brulee, green tea, sake, and banana, etc Back to the 18th century, the name Kit Kat or Kit Cat was used for a type of food for the first time, after the war the name became Kit Kat, with the original milk chocolate recipe and red packaging

b Nestle Milo:

Over 78 years of serving children around the world, a drink has become a symbol of cocoa flavor, soluble, delicious, unique, energizing for a new dynamic and refreshing Spiritual love not only by children but also by adults

c Breakfast cake Nestle Koko Krunch:

KOKO KRUNCH is mostly liked by the kids because of its chocolaty taste, mothers also prefer it for its nutritional benefits NESTLÉ KOKO KRUNCH is a breakfast cereal It is a source for Iron and Vitamin B2, B3, B6 & B9 –which helps in strengthening the immune system and in being active It is also a source for Calcium which is an important component in normal growth and development of bone in children

d Nescafé:

One of the most popular coffee brands in the world Nescafé brings you authentic Brazilian coffee flavor, aroma from coffee beans mixed with Coffee-mate cream powder, giving you a cup of coffee that

is rich, harmonious, and completely convenient, to start a new day full of energy.

e Nestea:

The refreshing natural lemon tea flavor, which helps to cool the body, is a combination of green tea leaf essence and the delicious lemon flavor, is a product close to most Vietnamese people.

f Cerelac:

Combine with breast milk to build a solid foundation of health for your baby Nestlé's brand of baby formula for babies from 6 months of age, helping to supplement essential nutrients for the

development of babies , which mothers everywhere choose and trust The Cerelac brand was first registered in 1949 and is currently available in most countries around the world.

g Maggi:

The quick and easy solution to perfect the delicious taste for each meal, is a brand originating from Switzerland and acquired by Nestlé from 1947 until now, Maggi has become a familiar brand most of the housewives Is the secret of every delicious dish, ensuring the quality and safety for each family

2 The manufacturing process of outstanding products:

For Nestlé, manufacturing includes all the processes we need to turn raw materials into safe, nutritious products for our consumers with the basis process including: planting harvesting -processing the cherries - industrial -processing - quality insurance And the following description will demonstrate deeper three typical products of Nestle

a Kitkat:

The manufacturer takes over the production process This involves:

Cleaning: ensuring materials such as sticks and stones are removed

Winnowing: the shells are cracked open, the beans isolated, collected and heated

Roasting: the beans are roasted in furnaces at temperatures between 100ºc 150ºc for 20

to 50 minutes This releases the cocoa's full flavour and aroma

Grinding: this process breaks down the cocoa butter on the beans and produces a smooth liquid (cocoa paste)

Blending: different varieties of cocoa paste are combined to ensure a consistent final product and to determine the flavour, quality and hardness of the chocolate

The mixture depends on the type of chocolate being produced Other processes involved in providing high quality chocolate include:

Refining to reduce the size of the particles

Conching (stirring) to produce a smooth and glossy chocolate

Tempering (heating at 45ºc to produce an even smoother end product

Moulding the chocolate into shape, before it is finally packaged.

Typically, chocolates are produced using a continuous flow method along a production line dedicated to producing large quantities of a single product

b Nestle milo:

Milo is manufactured by evaporating the water content from a thick syrup at reduced pressure The thick opaque syrup is obtained from malted wheat or barley The whole process takes around an hour but operates in a continuous mode At the bottom of the box the varying sized chunks of soft solid, from fist size to fine powder, fall from the last conveyor into an airlock where they are brought back to atmospheric pressure The solid is introduced into a hammer mill where it is broken up into the final granular form

The hygroscopic granular powder is packaged by filling cans from the "bottom", because the "top" end has been previously fabricated with an aluminium foil seal beneath the lid The cans then have the tinplate bottoms affixed by a roll seam and the paper label is applied to complete the product Some other chocolate drink bases, such as Ovaltine, are made by similar processes.

c KOKO KRUNCH

2 Making flaked cereals

3 Making puffed cereals

4 Making shredded cereals

5 Making other cereals

6 Adding coatings

The KOKO KRUNCH production process is a kind of mechanized process which uses

advanced machines and tools in production lines to replace workers in almost the whole process The output of the products is large, requiring investment in specialized machinery for each stage of the process such as: rotating pressure cooker for preparation stage, drying oven for making cereals,

3 Reviews on product packaging:

Nestlé carefully considers the environmental impact of packaging as an integral part of its product design Since the early 1990’s, Nestle has been focusing on reducing the amount of packaging use through a global source reduction programme - eliminating unnecessary packaging and reducing weight while ensuring product quality

Labelling: Environmental labelling is an important component of our packaging strategy It helps our

consumers know what to do with packaging when they have finished with it Environmental labelling is

a requirement on all of their products Our labelling consists of information to assist in identifying if the packaging can be recycled or how it should be disposed of.

Recycling information: Recycling plays a significant role in packaging minimisation Where

possible, recycling information is put on our packaging It is important that consumers sort recyclable containers from their household waste and put these into their recycling services

4 Engineering group (machinery and equipment): a Operating filling and packing machines:

Directly operate the filling machine and be able to safely handle minor problems on the machine Perform regulatory quality checks and clean machines at a frequency with minimal production loss Responsible for the quality of the machine in their charge , for ensuring the loss of raw materials within permissible limits, completing production reports accurately and completely Implement saving initiatives, participating in improvement projects to ensure fuel loss Report to the Production Supervisor immediately when there is a machine failure to prevent product defects as soon as possible and minimum consumption Comply with production plans, proactively respond quickly to changes to production plans when needed or when required by superiors Complete high newspaper related to output in stock, perform some other work in the actual working process