jürgen großhauser head of operational excellence germany

May 2019

Jürgen Großhauser

Head of Operational Excellence

Germany

Agenda

Introduction to Nestlé

Developing a High Performing Organisation – Nestlé Continuous Excellence

• WHY – WHAT – HOW

• Exercise on Mindset and Behaviour

• Business case example: Optimisation of a Value Chain

17/04/2019 Nestlé Corporate Presentation

Nestlé at a glance

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CHF 91 439 million in sales in 2018

323 000 employees in over 189 countries

413 factories in 85 countries

Over 2 000 brands

1 billion Nestlé products sold every day

Wide and varied product portfolio

17/04/2019 Nestlé Corporate Presentation

Our purpose

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Enhancing quality of life

and contributing to

a healthier future.

Our values

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Respect for - ourselves

- others

- diversity

- the future

Our people

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Head and Heart and Hands

Developing a High Performing Organisation

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WHYWe help teams to create value for consumers and society leading to sustainable prosperity for Nestléthrough Enabling, Aligning and Continuously Improving the organization

CONSUMER FOCUS

COST EFFICIENCY

WHYWe help teams to create value for consumers and society leading to sustainable prosperity for Nestléthrough Enabling, Aligning and Continuously Improving the organization

3 d

imen

sio

ns

of

exce

llen

ce

ContinuouslyImprove ways of working

Enablepeople

Alignorganization

• Take ownership of your own contribution• Lead by example to inspire trust• Respect every individual

• Think and act end-to-end• Create constancy of purpose

• Focus on the process• Create agility through flow and pull• Built in quality• Seek perfection step by step• Embrace learning with a scientific approach

Nestlé Lean Enterprise Guiding Principles

Note: The Nestlé interpretation combines “Lean the Nestlé Way” guiding principles, Nestlé Management and Leadership Principles and Shingo Institute inputs

WHAT

We help teams understand and improve their businesses from an End-to-End and cross-functional perspective, according to their priorities

We use continuous improvement approaches to get breakthrough results and sustain them beyond the initial change

We are from Nestlé and for Nestlé

We help teams to create value for consumers and society leading to sustainable prosperity for Nestléthrough Enabling, Aligning and Continuously Improving the organization

We do this in a distinctive way:

HOWThrough simple steps to identify Business opportunities & gaps to be a high performing organization through Individual, Team and Team of Teams.

Business leaders own and drive NCE implementation to achieve tangible business results and targets# 1

# 2

# 3 NCE support structures are efficiently aggregated, fully optimized at all levels, organized in multi-competent pillars, providing hands-on support for business priority areas to accelerate savings and benefits

NCE competencies are embedded in line managers, employees and functional roles wherever possible

3 KEY GUIDING PRINCIPLES

Enabler:

NCE Practices and tools

Key contributions to become an autonomous,

competent High Performing

Organization

and

Sustainably improvingBusiness Results

The Outcome

14

What do you expect to SEE people do

in an organization that does the topic well ?

What do you expect to HEAR people say

in an organization that does the topic well ?

What do you assume people THINK / FEEL

in an organization that does the topic well ?

Engaging people on future state:

Mindset and Behaviour

15

Maturity Checks are used at various stages of the

improvement journey

Behavior

What can be observed

and assessed

Knowledge

Skill

Mindset

Cultural Factors Governanc

e & Organizatio

n

Processes & Routines

Personality/Style

Personality

Deep dive in specific areas:

What is going on?

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• Use new trends and growth drivers

• Drive export sales

• Overcome x€ price threshold without losing

consumers

• Generate incremental marginal contribution

of x mio €

• Overcome capacity constraints by improving

OEE

• Increased growth by 10%

• Export sales growth* (+56%)

• Increased factory OEE by 23%

• Reduced Total Delivered Cost

• Strong improvement of marginal contribution

• New premium variants

OPPORTUNITIES/ CHALLENGES BUSINESS BENEFITS

Business case example:

Optimisation of a Value Chain – Cup Terrine

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Engaging all functions along the value chain to

optimise and deliver value

Deep consumer

understanding

Lean innovation -

prototyping

Reduce lead time

of suppliers

Increase speed

in development

Material flow and

warehousing

optimisation

OEE improvement

Display

optimisationPicking

optimisation

Packaging

Optimisation

17/04/2019 Nestlé Corporate Presentation