achieving sustainability through lean production
TRANSCRIPT
Achieving sustainability through lean production
We areShaan
Asad
OnNestlé 'GOOD FOOD, GOOD LIFE'
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Nestlé…..
Nestlé is the world’s largest food and beverage company Headquarters is in Vevey, Vaud, Switzerland It was founded in 1867 by Henri Nestlé It employs over a quarter of a million workers In its acquisitions, Crosse & Blackwell in 1950, Findus in
1963, Libby’s in 1971, Rowntree Mackintosh in 1988, and Gerber in 2007
Its products include baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, ice cream, pet foods
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Nestlé’s Product Group
Beverages - (e.g. Perrier) 26%Milk products, nutrition & ice cream - (e.g. Coffee Mate) 26%Prepared dishes and cooking aids - (e.g. Buitoni) 18%Chocolate, confectionery and biscuits - (e.g. Kit Kat) 12%Petcare - (e.g. Felix)12%Pharmaceutical products- (e.g. Alcon) 6%
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Nestlé IN RESPONSIBLE BUSINESS PRACTICEThe Ten Nestlé Principles
Consumers
Human rights and labor practices
Our people Suppliers and customers
The environment
1 Nutrition, Health and Wellness
4 Human rights in our business activities
5 Leadership and personal responsibility
7 Supplier and customer relations
9 Environmental sustainability
2 Quality assurance and product safety
6 Safety and health at work
8 Agriculture and rural development
10 Water
3 Consumer communication
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Sustainability
Sustainability
Economy
Society Environment
It is a long term perspective.Balancing impact of a business on economy, society and the environment.It’s aim is to limit negative impact of the business.
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(CSV) Creating Shared Value
‘We believe that, to succeed as a business in the long-term and create value for our shareholders, we must also create value for society. We call this Creating Shared Value (CSV).’
Nutrition
Rural Development
Water
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Nestle Waters’ ‘Waste Hunting’
Waste
Area
Production
Inbound materials
Outbound products
‘Waste Hunting’ was carried out in the old factory looking at the seven areas of Muda. This exercise established that waste was present in three main areas: production, inbound materials and outbound products.
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Findings of ‘Waste hunting’
Key areas where waste was found included excess handling, waiting time and defects. For example, raw materials, packaging and finished goods were handled multiple times.
Waiting issues included blockages, idle machinery and trucks being made to wait at loading bays.
Waste hunting also revealed other areas that could be further improved. These included label application on bottles, bottle cap application and finished bottle damage.
The final area for improvement identified was that of water usage2/26/2015
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LEAN Production
Lean
Pr
oduc
tion Eliminating Waste
JIT
Continuous Improvements/Kaizen
Eliminating waste in terms of time, money and quantity of resources.Minimising resources using the production process. Production should therefore aim to take place using the most efficient use of space, machinery, labour, materials and, crucially, be in the shortest time period.Just-in-time (JIT)Continuous Improvement (Kaizen). 2/26/2015
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Eliminating Waste
Waste
Transport
Inventory
Motion
Waiting items
Over-processing
Over-production
DefectsValue can also be added by reducing waste which in turn reduces production costs. Any activity which puts cost on a product without adding value is waste.Waste can happen at any part of the process. ‘Muda’ is the Japanese term for waste. Muda is broken down into the seven areas that make up the mnemonic ‘TIMWOOD’.
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Just-in-time (JIT)
JIT means materials arrived just they are needed,
Focuses on timing of production
Eliminate inventory cost of both waiting and storing.
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Continuous Improvement
Kaizen is another idea developed in Japan. It supports lean production by introducing the idea of
continuous improvement. Kaizen is a concept that makes improvement the
responsibility of everyone involved in production. Improving efficiency becomes a continuous process,
not a one-off activity. Kaizen implies that even the smallest improvement
should be made, as many small improvements can lead to big savings.
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Earnings of LEAN Production
Eliminates Waste
Reduces costs
Smooth productionIncreases productivity and efficiency
Employment benefitsCreates social and environmental benefitsHelps retaining economies of scaleSustainable practice
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Nestlé and Water
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