nee gi 00 900 pdf version

5/19/2018 Nee Gi 00 900 PDF Version

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Nestl

Engineering

Excellence

(NEE)


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Index: 2 Index: 3

Chapter 1: Introduction

Introduction 1: 1

Key Groups 1: 3

Chapter 2: Engineering Policy & Key Principles

Engineering Policy 2: 1

Key Principles 2: 3

Valuing People 2: 3

Safety, Environmental and Legal Compliance 2: 5

Striving for Low Cost, Highly Efficient Operations 2: 6

Innovation/Renovation 2: 7

Hygienic Engineering 2: 8

Food Plant Principles 2: 10

Continuous Improvement 2: 11

Working in Partnership 2: 12

Protecting Proprietary Technology 2: 13

Managing Change 2: 14

Chapter 3: Organisation

Engineering Function 3: 1

Organisational Principles 3: 4

Organisational Structure 3: 5

Technical Competence Centres 3: 6

Communication and Cooperation 3: 8

Core Competence and Staffing 3: 9

Reference Documents 3: 9

Chapter 4: Strategic Roles, Accountabilities & Responsibilities

Overview 4: 1

Site Level 4: 3

People Development 4: 3

Product Mastership 4: 3

Full Compliance 4: 4

Competitive Product Supply 4: 5

Business Management 4: 6

Market (Region) / Business Level 4: 7






Group/Corporate Level 4: 11






Chapter 5: Key Engineering Activities

Overview 5: 1

Fixed Asset Planning 5: 3

Overview 5: 3

Fundamentals 5: 4

Functional Roles 5: 8

Key Performance Indicators 5: 9


Project Management 5: 10

Overview 5: 10

Fundamentals 5: 11


Key Performance Indicators 5: 15Reference Documents 5: 16

Maintenance & Improvement 5: 17

Overview 5: 17

Fundamentals - Maintenance Strategy 5: 18

Fundamentals - Consequence Driven Maintenance (CDM) 5: 22

Fundamentals - Asset and Maintenance Management (AMM) 5: 23




Industrial Services 5: 28

Overview 5: 28

Fundamentals 5: 28




Nestl Engineering ExcellenceTable of Contents

Nestl Engineering ExcellenceTable of Contents, Continued


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Electricity & Automation - Manufacturing Execution System 5: 32

Overview 5: 32

Fundamentals - Electrical Distribution 5: 33

Fundamentals - Automation 5: 34

Fundamentals - Manufacturing Execution System 5: 35

Fundamentals - E&A-MES and GLOBE Consideration 5: 36




Energy Management 5: 40

Overview 5: 40

Fundamentals 5: 41


Key Performance Indicators 5: 43Reference Documents 5: 44

Process and Packaging Optimisation 5: 45

Overview 5: 45

Fundamentals 5: 45



Nestl Engineering ExcellenceTable of Contents, Continued


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Nestl Engineering ExcellenceIntroduction

What is NEE? Nestl Engineering Excellence (NEE) is a corporate concept to

Engineering Excellence. It defines the strategic roles, accountabilities,

responsibilities and functional relationships of Engineering within Nestl, at

all levels.

Engineering Excellence at Nestl is the key to achieving competitive advan-

tage. The four bubbles below highlight the significant roles and the extent

to which Engineering is influencing our business.

It is through defining its roles, accountabilities, and responsibilities as well

as its relationship with the other functions within Nestl, that Engineering

via Nestl Engineering Excellence is able to more clearly manage the

issues relating to these four bubbles and the many other activities

Engineering is involved in.


5/62Chapter 1: 2 Chapter 1: 3

Key elements

of NEE

The concept of NEE comprises the following elements:

Relateddocuments

For additional information see also:

NEE Executive Summary for senior management and non-engineers

NEE Pocket Book for engineers working at the site level (e.g. factory,

distribution centre and local head office).

Overview Engineering governance is provided by the following groups:

Enginee ring Council

Regional Chief Engineers Conference

Chief Engineers Conference

Market Conference.

EngineeringCouncil

The Engineering Councilconsists of senior engineers representing thevarious functions (CT-Engineering, Zones, PTCs, Regional and Global

Businesses and Markets).

The purpose of the council is to:

develop and manage Nestle Engineering Excellence (NEE)

set a program and priorities to move Engineering forward in line with

business needs

focus engineering resources across the organisation in an optimal way to

avoid duplication and mistakes work smarter.

Meetings are organised by the Head of CT-Engineering as the needs arise.

Regional Chief

Engineers

Conference

The Regional Chief Engineers Conference is organised for each of the three

zones (AOA, EUR and AMS) with a separate conference to cover the Chief

Engineers from the PTCs, R&D Centres, SBUs and CTUs.

The purpose of the conference is to:

review and approve Engineering-specic policies, standards,

and guidelines

disseminate engineering information both up and down the organisation.

Meetings are organised at least once every year and facilitated by

CT-Engineering, in cooperation with Zone management with respect to the

three Zone conferences, and the PTC/R&D management in respect to the

PTC, R&D, SBU and CTU conference.

Chief Engineers

Conference

The Chief Engineers Conference includes all the Chief Engineers from the

CTUs, PTCs, R&D Centres, SBUs, Market, Regional and Global Businesses.

The purpose of the conference is to:

discuss the latest business strategies that affect Engineering agree on the strategic direction for Engineering

agree on Engineering specic policies, standards

discuss and decide on new guidelines

learn about new technologies, and

network and leverage experience and synergies with other colleagues.

Meetings are organised every two or three years.

Market

Conference

Market Conference involve the key engineers from the market.

Meetings are organised at least once a year by the Chief Engineer.

Nestl Engineering ExcellenceIntroduction, Continued Key Groups


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Engineering Policy and Key Principles

Engineering Policy

Nestls

commitment

Nestl is dedicated to providing consumers with the best, safe food

throughout life. The continued emphasis over more than one hundred years

on quality, reliability, convenience and value is the reason why every day,

millions of consumers all over the world show their confidence by choosing

Nestl products. Upholding this confidence demands the very best from

every aspect of the company.

The role ofEngineering

Engineering, being one of the cornerstones of the organisation, contributesto the consumer confidence and adds value to our business by:

providing creative and economical solutions in line with Nestl's business

needs and

improving the return on invested capital through the management of the

companys fixed assets.

Leadershipfunction

With Nestls primary focus being the transformation of perishable rawmaterials into added-value nutrition and health products, the associated

functions such as transport, storage, processing, packaging and distribution

require significant input from Engineering.

To fulfil its leadership function, Engineering must be technically strong,

creative and professional with a common sense approach. It must also

engage all other relevant functions such as Manufacturing, Quality

Management and Marketing to get the optimal results out of its actions


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Key principles The key principles represent the foundation of Nestl Engineering

Excellence (NEE) and are to be viewed as an extension of the Engineering

policy.

They include:

Valuing People

Safety, Environmental and Legal Compliance

Striving for Low Cost, Highly Efficient Operations Innovation/Renovation

Hygienic Engineering

Food Plant Principles

Continuous Improvement

Working in Partnership

Protecting Proprietary Technology

Managing Change.

Irrespective of business pressures, technology changes, or industry trends,

Engineering must ensure that these key principles are maintained and

safeguarded at all times, at all levels.

Best-in-Class Manufacturing Company requires Best-in-Class Engineering

Werner Bauer

Executive Vice President

Technical, Production,

Environment, Research

and Development

Marco Bernasconi

Vice President

Engineering

People - our

greatest asset

Our people are our most valued asset. Nothing can be achieved without

their commitment and their energy.

Engineering supports this through:

its commitment to helping others

continuous improvement of the meaning of the profession by creating

an environment where those that make up Engineering know clearly

their role and their value for the company developing, deploying and connecting people in order to maximise the

engagement of each person within the engineering team

its full commitment to creating a positive experience for all engineering

staff ensuring compatibility between corporate and individual values.

Nestl

Corporate

Business

Principles

Extract from theNestl Corporate Business Principles

In valuing its people Engineering respects the companys business

practices which are designed to:

establish staff relations based on trust, integrity and honesty

maintain respect for basic human values, attitudes and behaviour

respect employees privacy

comply with applicable data protection regulations and apply Nestl

standards in those countries where specific legislation is not yet in place promote a sense of integrity among all employees all over the world, and

apply a number of common rules while at the same time adapting the

expression of these rules to local customs and traditions

encourage continuous improvement through training, and the improve-

ment of professional skills at all levels in the organisation

offer career opportunities based upon merit, irrespective of colour, age,

national origin, religion, gender, disability, veteran status, or any other

protected class as defined by local law. Professional skills, experience

and the capacity and willingness to apply The Nestl Basic Management

and Leadership Principles are the main criteria for promotion

offer competitive salarie s and benets. Working hours, wages and

overtime pay comply with applicable local laws and are competitive with

those offered by similar companies

limit overtime to a reasonable level

create a safe and healthy working environment for each employee

respect the right of employees to form representative organisations and

to join or not to join trade unions, provided this right is freely exer-

cised and establish a constructive dialogue with these unions

refrain from any action restricting the employees right to be, or not to

be, affiliated to a union

treat every employee with respect and dignity and do not tolerate any

form of mobbing, harassment or abuse

forbid the use of forced labour or involuntary prison labour.

Engineering Policy and Key Principles

Engineering Policy, Continued

Key Principles

Valuing People

Chapter 2: 3 / Continued next page



Key Principles

Safety, Environmental and Legal Compliance

Full compliance Nestl fully complies with all applicable safety, environmental and legal

codes and restrictions. Engineering being one of the cornerstones of the

company will not compromise customer and employee safety or environ-

mental and legal compliance.

This also applies to all co-manufacturers and any contractors working for

Nestl.

Safetyawareness

The highly automated and powerful equipment in use represents largeamounts of energy. Even the smallest incident can lead to a

serious accident. Engineering must therefore adopt an attitude of

absolute intolerance for unsafe situations and make every effort to

eliminate all recognised safety hazards through proper engineering design,

control and maintenance.

The paramount importance of preventing accidents dictates that:

all equipment must be designed for safety and ergonomics

all engineers receive safety, ergonomic and Behavioural Based Safety

(BBS) training

Engineering participates in regular safety audits and risk assessments

Engineering strives for continuous safety improvement.

Environmental

awareness

Our facilities must be environmentally sound, and must never abandon

this principle for economic gain. Ensuring the environmental soundness

of Nestls transformation processes and manufacturing operations is an

Engineering accountability.

Therefore Engineering must continuously improve the companys

environmental performance by:

reducing energy consumption per unit produced

reducing raw material usage through improved control

reducing packaging per unit produced through proper selection of

assets, effective start up following a line change and maintenance

reducing the amount of waste created in the transformation process

through effective CIP, design of conveyor transfers and machine start

ups etc.

recycling waste where possible.

In case of an

accident

If an accident occurs despite all effort to eliminate such an occurrence,

Engineering must participate in and in most cases will lead the accident

investigation to determine the cause.

Engineering is responsible for:

implementing any technical changes necessary to prevent the accident

from ever happening again and

alerting other entities to potential hazards uncovered by the investigation.

Training Engineering management must ensure that appropriate training is

available for engineers in order for them to:

develop their core competencies

embrace cutting edge technologies and systems, and

keep pace with the changing needs and situations in the manufacturing

environment.

Engineering

as a leader

Engineering as the driver behind many activities within Nestl must

perform this duty keeping in mind the following principles (extract

from The Nestl Management and Leadership Principles):

Personal commitment and courage, including the capacity and the

willingness to take initiatives and risks as well as to maintain composure

under pressure

Ability to motivate and to develop people, addressing all those issues

that allow others to progress in their work and to develop their

capabilities

Curiosity and open-mindedness as well as a high level of interest in other

cultures and life-styles. This also includes a commitment to continuous

learning and improvement, as well as to sharing knowledge and ideas

with others

A taste for initiative together with the ability to create a climate of in-novation and to think outside the box. This implies the right to make a

mistake but also the readiness to correct it and to learn from it.

Willingness to accept change and the ability to manage it

Adaptabilit y of thought and deed, taking into account the specicity and

the complexity of the environment

Credibili ty as a result of coherent action, leadership and achievement.

Key Principles

Valuing People, Continued



Introduction Low cost, highly efficient operations is the first of the four pillars that Nestl

sees as key to achieving worldwide, sustainable competitiveness.

With all engineering-related costs included within the manufacturing

cost and with Engineering responsible for the selection, installation and

maintenance of the lines means that Engineering is in an excellent

position to assist Nestl in achieving this objective.

Cost reduction Engineering must minimise the cost in the following areas:

Area of optimisation Affected cost type

Choice of manufacturing technology, capital investment

planning and project implementationCapital cost

Utilities design, management, measurement and control Utilities cost

Identifying and favouring source reduction options over

end of pipe environmental treatmentEnvironmental cost

Energy optimisation, raw materials conversion and filling

weight accuracy in processes and packaging systemsWaste cost

Process automation Labour cost

Equipment selection and effective maintenance Depreciat ion cost

Design for low-maintenance Maintenance cost

Ergonomic equipment design and installation that

prevents employee injuries and accidentsPersonal injury cost

Efficiency

improvements

Engineering is committed to optimising factory performance while

minimising total manufacturing cost. To achieve this, Engineering will

take the following actions:

Action Expected improvement

Systematically analyse line

performanceReduce number and impact of failures

Perform regular maintenance Improved asset reliabil ity

Optimise equipment changeovers Reduced amount of time required

Minimise t ime of an overhaul Increased productivi ty

Schedule overhauls so as to minimise

disruptionsIncreased productivity

Apply cost-effective technical

improvements to equipment

Increased reliability and reduced risk of

failure

Targets vs.

budgets

Engineering adds value to the entire supply chain by contributing to lasting

reductions in overall manufacturing and distribution costs.

In all cases, Engineering must:

evaluate benets against measurable improvements in manufacturing

performance, cost and potential savings

determine if and when which service has to be added or removed

consider short and long term impacts of budget modications on manu-

facturing performance and engineering core competencies.

Introduction Innovation/Renovation is the second of the four pillars that Nestl sees

as key to achieving worldwide, sustainable competitiveness. It involves

upgrading existing processes, developing and designing new and improved

processes, products, ways of packing and product presentation. Engineer-

ing is fundamental to this and has a significant influence.

Understanding

the business

To be effective, engineers must understand:

the market business strategy including the main business cost and prot-ability drivers

the marketing requirements

the impact of packaging styles and materials

the product shelf life, storage and usage properties

the recipes and how the ingredients are prepared and blended

the processes they are involved in

the equipment and technology used.

Looking for

opportunities

Opportunities for innovation and renovation arise every day. In order to

stimulate innovation and renovation Engineering must regularly challenge

the way things are done.

Partnership and

information

sharing

To avoid the pitfalls of factory isolation, Engineering must:

share information and experience with other entities

continuously look for opportunities

provide and ask for feedback

maintain excellent relationship with equipment suppliers.

Key Principles

Striving for Low Cost,

Highly Efficient Operations

Key Principles

Innovation /Renovation


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Chapter 2: 9

Introduction Hygienic Engineering is an integral part of good manufacturing practice.

NGHE (Nestl Good Hygienic Engineering) fits under the umbrella of

NGMP (Nestl Good Manufacturing Practice).

Hygienic Engineering is the application of concepts by which:

buildings and their surroundings

process areas equipment, and

industrial services

are designed, constructed, installed and maintained in a state that is suit-

able for production of safe and consistent products.

Hygienic Engineering applies to:

all products sold under any of the groups brand names

all non-branded products

the total supply chain

business partners such as suppliers, co-manufacturers and distributors.

Related documents: Nestl Quality System GI-31.000-3.

Teamwork Engineering is the driver of NGHE. However, teamwork with Quality

Management, Production, Industrial Performance, Supply Chain and Pur-

chasing is critical to consistently achieve and sustain results. This teamwork

requires that Engineering be also involved in activities of Production and

Quality Management, such as audits of suppliers and troubleshooting.

Training and

coaching

Applying Nestl Good Hygienic Engineering (NGHE) requires much more

than only the basic knowledge from classroom training. Hygienic Engineer-

ing is learnt by doing. Engineering along with its Production and

Quality Management colleagues must ensure that:

For the operators and mechanics,who are the ones closest to the

product, receive direct on the line coaching in machinery and line operation

skills such that they understand:

why Hygienic Engineering is relevant to our business

which are the risks and regulations (internal, external) associated with a

particular operation

how to operate and use equipment in a food safe manner

how to respect the building plans and zoning

how to build for cleaning and to clean

how to repair, maintain and improve efciently in a food safe manner.

Training and

coaching

(Continued)

For Engineering in general, the knowledge and experience of Engineer-

ing, Quality Management and Production is shared with all those involved

to ensure that:

all equipment is hygienically designed and easy to clean thereby prevent-

ing such hazards as microbiological, chemical, or physical contaminants

and ensuring consistent quality

production environment, layout and construction details are correctly

planned to optimise cleaning, personal movement, flow of goods and to

minimise the potential of cross contamination

instruments and sensors on the production line are regularly calibrated

and correctly maintained at critical control points (CCPs)

there is appropriate provision of energy and utilities in the quantity and

quality required for the process

there is compliance with local legislation, which may have some specic

(or more strict) requirements

all 3rd parties working in the area of Engineering within the factory

must first receive training on the fundamentals of NGMP and especially

NGHE.

Key priorities of

Good Hygienic

Engineering

Engineers must never forget that product and product contact surfaces are

the first priority for NGHE. This is in line with the Nestl Quality System

first priority level of ensuring production of safe and consistent food.

Related documents: Nestl Quality System, GI-31.000-3.

Key Principles

Hygienic Engineering

Key Principles

Hygienic Engineering, Continued



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Chapter 2: 10 Chapter 2: 11

Good

Manufacturing

Practices

In addition to specific requirements as outlined under Hygienic Engineering

all the engineers must familiarise himself/herself with Good Manufacturing

Practices (GMP), particularly in respect to:

Ergonomics

Industrial safety

All aspects of cleaning

Environment Pest prevention

Thermal processing and heat treatment

Food-related government regulations and codes

Food packaging practices.

Standardisation To ensure consistent, reliable, safe and cost-effective food plant engineer-

ing, Engineering will wherever possible, implement tested and proven

standards. To accomplish this, the engineers must know and apply ap-

propriate standards from Nestls time-honoured, tried and tested bank

of know-how.

For example the following points must be understood:

General hygiene levels appropriate for all kinds of product within Nestl's

sphere of activity. Various product specic aspects of equipment design and installation

that cover hygiene, sanitation, environmental, safety and ergonomic

considerations.

Process criteria, including critical control points, calibration standards,

metal detection, weighing and other accuracy requirements. Control and

automation hardware and software.

These standards do not just ensure consistency and repeatability they

provide management with a level of assurance of the reliability and safety

of manufacturing processes and can reduce engineering cost by reducing

the initial design and engineering effort.

Adherence to

standards

Adherence to Nestls mandatory standards and a working knowledge of

food plant design principles are prerequisites for all technical and engi-neering staff at all locations where Nestl products are manufactured and

stored.

Nestl sets the same high standards for co-manufacturers as it does for its

own facilities; management verifies food plant engineering knowledge and

work practices at all locations that manufacture or store Nestl products,

including co-packers, raw and packaging material suppliers and plant

contractors. Standards can be general or product-specific.

Introduction Aware that the companys long-term survival can be jeopardised by com-

placency, Engineering must be continuous in its search for manufacturing

improvements to keep pace with the ever-changing needs of the business.

Objective The scope of engineering improvements is nevertheless not limited to

machinery and assets; it also includes systems, processes, methods,

organisation, staffing and employee skill levels.

Engineering must enhance profitability by improving manufacturingflexibility and efficiency. This means Engineering must strive for the

following improvements:

Speed of execution and project implementation.The introduction

of products ahead of the competition leads to higher market share and

opportunity.

Line efficiency.Reducing line waste and downtime lowers manufactur-

ing costs.

Asset life.Effective maintenance and creative equipment improvement

reduces or defers capital investment.

Tools By systematica lly using tools, such as ESAT, NEMT, AMM and CDM,

Engineering will ensure that Nestl can maintain a competitive edge and

become and remain the industry benchmark for engineering excellence.

Over time, even small and incremental improvements and breakthroughs

can have a significant impact on manufacturing efficiency.

Networking

and sharing

Continuous improvement must never remain isolated. Networking and

sharing information must become a key pillar of the Nestle Engineering

culture.

Key Principles

Food Plant Principles

Key Principles

Continuous Improvement


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Internal

partners

Engineering cannot operate alone. Close teamwork between all functions

(e.g. Engineering, Production, Quality Management, Finance, Marketing,

Supply Chain) is essential if Nestl is to become the low cost, highly

efficient operation and the industry benchmark for the food industry.

External

partners

Engineering works with a wide range of service providers and suppli-

ers, such as construction and installation contractors, architectural and

engineering consultants, equipment suppliers, specialised equipmentmaintenance contractors and contract manufacturers. However, Engineer-

ing always retains management oversight and decision-making authority

over their activities.

To ensure that technical and quality expectations are met, Engineering

familiarises its external partners with the requirements of NEE and its key

principles and regularly checks compliance.

Joint

development

of new

technologies

Nestl is sometimes interested in gaining a competitive manufacturing

advantage by being the first or even the only manufacturer to use new

vendors and proprietary technologies, or by receiving an exclusive level

of service or support from vendors. In such cases, Engineering seeks and

encourages privileged relationships with certain specialised equipment

vendors and service providers.

However, Engineering must avoid partnerships that might undermine theability to self-engineer and self-manufacture. Potential relationships with

partners who seek exclusive technical and business relationships with

Nestl must be scrutinised with care to ensure that they do not diminish

Engineering core competence.

Technical

know-how

The protection of Nestls technical know-how is the responsibility of the

whole technical community of which Engineering is part. Engineering has

a significant role in this due to its access to proprietary information coupled

with extensive use of 3 rdparties. In this respect it is the responsibility of

Engineering to ensure that the company adopts a careful relationship

with 3rdparties, particularly outsourcing partners.

Therefore:

Engineering documents, including P&IDs, ow sheets, process descrip-

tions and documents containing recipes and operating conditions must

be kept in a secure location.

Access to sensitive, proprietary information must be limited on a

need-by-need / case-by-case basis.

The use of cameras in areas where proprietary equipment is operating

must have the approval of the site manager. In addition, a responsible

senior employee must be present at all times.

Engineering issues documents to outsiders on a need-to-know basis

only. Even then, this requires the written approval of management and a

record kept of the issue and return of document originals and copies.

Documents Documents must be considered proprietary and confidential if they contain

information on processes that competitors could use to duplicate Nestl

products, processes, or systems.

Equipment Equipment must be considered proprietary if on viewing a person can

visually pick up information that could be used to duplicate products, proc-

esses, or systems that are specific to Nestl.

Related documents: Nestec Guidelines on the Protection of Confidential

Information, GI-00.105.

Key Principles

Working in Partnership

Key Principles

Protecting Proprietary Technology


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Introduction More often than not, accidents, incidents, recalls and withdrawals are theresult of poorly managed changes within our operations. The key to manag-

ing this effectively is to recognise that a change is really happening.

Most operations have change management procedures in place for the

conscious changes that take place... planned ones that are obvious.

However, there are also many unconscious changes... ones that do

not really seem like changes at first glance... that are often missed. These

are the changes that sometimes result in problems that could have beenavoided.

Procedure The following illustration explains the change management

procedure:

Key Principles

Managing Change


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Organisation

Engineering Function

Introduction Engineering is one of the key disciplines of the Technical Function. It is adiverse group of people who offer a wide range of skills, know-how and

disciplines ranging from non-professionals to qualified professionals.

With Nestls primary focus being the transformation of perishable raw

materials into added value nutrition and health products. The engineering

personnel are employed across all areas of the supply chain, with the main

concentration at the site level, i.e. factory, distribution centre, sales and

the local head office.

To drive Innovation/Renovation, develop new products, new technology

and to ensure that those at the site level are using the appropriate tech-

nology, plant and processes, engineering personnel are also located in:

Central Technical (CT-Eng and CT-Pack),

Strategic Business Units (SBU),

Product Technology Centres (PTC) and Research & Development Centres (R&D).

Functional

relationship

The functional relationship of Engineering is illustrated below where the

main concentration and focus is at the site level as indicated


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Functional

role of

Engineering

The role of Engineering at each of the functional levels is summarised as

follows.

Site Level

Ensure reliable, efcient operations

Continuously improve and optimise processes and lling lines

Comply with all safety and environment regulations

(internal and external)

Execute capital projects

Investments remain competitive

Ensure optimisation of resources

Product specic and non-product-spec ic engineering

Market (Region), Business Level

Implementation of strategies / guidelines for M&I, investment

management, energy management

Management of the overall investment budget

Selection of technical experts and that such resources are shared

Management of the engineering organisation

Succession planning for key engineering personnel

Training relating to engineering

Group - Corporate Level (CT-Eng)

Functional leadership for Engineering worldwide and set overall

engineering strategy and direction

Fixed asset management establish guidelines relating to capital

investments (CIAT), asset redeployment and optimisation

The engineering management of ESAT, CDM, AMM, NEMT, Project

Management, toolkit, etc.

Guidelines and best practices Build and maintain a Best in Class reposi-

tory and benchmark information

The management of the engineering organisation and succession planning

Development of new technologies in Industrial Services, construction

project management, electrical and automation, MES, etc.

Facilitate cross-fert ilisation of product and non-product specic proc-

esses

Training on non-product related services and technologies worldwide

Prov iding non-product-spec ic technical assistance

Hiring of non-product-spec ic engineers

Functional

role of

Engineering

(Continued)

SBU Engineering

Preparing investment strategies in line with GBS, ZBS, MBS,

Dene the technology roadmap allowing delivery of the product portfolio

Performing feasibili ty and pre-concept studies for new plant or for

restructuring of existing facilities

Preparing industrial master plans including industrial footprint for com-

mercial and manufacturing investments

Capac ity management

PTC and R&D Engineering, CT- Pack

The process and lling line design optimisation and industrialisation of

new processes

Build and maintain Best in Class repository (product specic)

Development of proprietary technology and dene a technology roadmap

Ensure the cross fertilisation of technological and technical develop-

ments

Maintaining technology understanding and awareness at the "state of

the art" level

Training on product-specic engineering

Providing product-specic technical assistance

Manage succession planning, recruiting, training and development of

product-specific technical staff

See also: Strategic Roles, Accountabilities and Responsibilities.

Organisation

Engineering Function, Continued

Organisation

Engineering Function, Continued

Chapter 3: 2 / Continued next page Chapter 3: 3


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Technical

function

Engineering as part of the Technical Function must adopt the following

organisational principles when designing, reviewing, or changing any engi-

neering organisational structure.

Organisational

principles

Technical knowledge

The factory is a fundamental part of the business and the centre of core

technical knowledge and leadership excellence in the group

A strong technical identity driven by functional leadership must bepresent at all levels of the Technical Function

Dissemination of know-how across the Technical Function must be

ensured through cross-fertilisations and horizontal communication

Operational focus

Execution focus must be maintained at the local level, while ensuring

competitiveness in global and regional operations

The Technical Function must ensure appropriate product focus, with

increased alignment and in-depth understanding of Businesses

Organisation structure

Technical resources must be represented in all business managementstructures, even for those with no factories present within their geogra-

phies

Market / Business organisations must be exible and adaptable, but they

must remain within the organisational framework as described in:

The Organisation of the Technical Management in the Markets, GI-00.961

Technical positions must be as close as possible to operations, with very

limited overlap and no duplications (at, focused and exible structures)

The line of command must be continuous: resource management, career

development and target setting must remain with Technical Manage-

ment

Clear denition of accountabil ities and responsibil ities must be ensured

upfront at all levels

Future

structure

Technical positions must act in accordance with the future direction as

outlined in Nestl on the Move.

For Engineering, the move is:

from Hierarchy

National-functional

Discipline

Competition

Task orientation

to Network

Cross-border/cross functional

Initiative

Co-operation

Result orientation

Organisational

models

Due to the diversity of the company, the technical management within the

market will conform to one of the following three organisational models:

Organisation

Organisational Principles

Organisation

Organisational Structure


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Chapter 3: 7

Engineering

as part

of a Technical

Competence

Centre

Each model represents an organisational backbone that can be adapted

to the specific characteristic of the business or market where it has to be

applied.

Within each model, the technical manager will set up Technical Compe-

tence Centres (TCCs) of which Engineering will be part. For further details,

refer to The Organisation of the Technical Management in the Markets

GI-00.961.

All model structures are designed to achieve lean but effective organisa-tions, avoiding any duplication of positions. They furthermore allow an easy

allocation of the responsibilities along the defined lines of control.

To maximise the effectiveness and efciency of these TCCs the techni -

cal manager must ensure that these competencies are shared across the

market and region.

The scope and action of the TCCs can be classified in three main

categories as illustrated below:

Product-

specific

engineering

Product-specificengineering refers to the areas covering:

Industrialisation, project planning and management

Co-manufacturing

Co-packer selection and auditing

Process related issues

This means that:

process, packaging and mechanical engineers related to specic

products must be close or in the plants

core factories could become product specic competence centres

those working in this eld must have close liaisons with the product /

process related PTC

process and lling line optimisation is the key responsibility of the

factories, and

resources are shared within the same business (expert network).

Non product-

specific

engineering

Non-product-specificengineering refers to the areas covering:

M&I strategy denition and deployment

Investment budget evaluation

Investment project management

Over all Capex monitoring

Internal safety instruction denition

Utility (energy) management

Industrial services, boilers, refrigeration and air handling.

This means that:

resources will be shared across different businesses.

experts from other businesses are integrated into the Competence

Centre.

cost sharing mechanisms must be clear and transparent.

priorities are based on business needs.

those working in this eld will have close liaison with the specialistlocated in CT-Eng and the related PTC.

those working in this eld are based in a core factory or centrally and are

managed by the chief engineer.

Organisation

Technical Competence Centres

Organisation

Technical Competence Centres, Continued



18/62


Introduction For engineering to be effective requires excellent communication and

cooperation between all levels and functions. This includes training, cross-

fertilisation of know-how, career and succession planning, dissemination of

corporate culture and management principles.

Corporate

technical

Intranet site

All engineers are encouraged to regularly review the information presented

on the CT-Eng Intranet sites.

Product-

specific

All engineers working in the product specic area in the market must be

in regular contact with their counterpart in the related PTC, R&D and vice

versa. They also must regularly consult the information presented on the

related PTC and R&D Intranet sites.

Non-product-

specific

All engineers working in the non-product-specic area in the market must

be in regular contact with their counterpart in CT-Eng.

Technical

expertise

The technical expert could reside at any level: Factory, Market, PTC, R&D

and CT-Eng.

Typical areas of expertise are:

Refrigeration

Project Management Electrical and Automation

Architecture and Construction

Water management

Energy management

Egron design

Safety

Utilities design

Engineering management, and

Hygienic engineering

Etc.

Key groups The Engineering Council, Regional Chief Engineers Conference, Chief

Engineers Conference and the Market Conference are key forums whereinformation is exchanged.

See also: Key Groups.

Organisation

Communication and Cooperation

The value of

maintaining

core

competence

The value that Engineering places on core competences signifies more than

the importance of managing engineering resources and budgets alone.

Maintaining core competence requires the preservation and integration of

the knowledge, experience and expertise(Product Mastership) upon which

engineerings contribution to high-performance manufacturing depends.

Engineering is therefore committed to fostering and maintaining its core

competencies through its attention to employee skill levels, training, staffing

and succession planning (People Development).

Difficult to

rebuild if lost

Unlike product ingredients, which cannot be eliminated without notice,

or line operators, without which the line cannot operate, the erosion

or elimination of core competence might not be noticeable at first. Key

performance indicators and factory operations do not change immediately.

However, core competence is almost impossible to rebuild once lost,

whether through retirement, attrition, cost-cutting measures or outsourcing.

Safeguarding

core

competence

To preserve Nestls competitive advantage, engineering must identify and

safeguard its core competencies. Core competencies are maintained in

three ways:

through employee training and development

through identifying and maintaining critical stafng levels

by deploying and connecting people in a way that satises employee andemployer interests in a balanced way. This includes succession planning.

Reference Documents

Reference

documents

GI-00.961 The Organisation of the technical Management in the

markets

GI-00.960 Technical Skills and Competences required for Nestle

Technical Function in Market Head Ofces and Factories

Nestle on the Move Human Resources Department

Nestec 2002

CEC 2004 Chief Engineer conference 2004

Organisation

Core Competence and Stafng


19/62

Strategic Roles, Accountabilities

and Responsibilities

Overview

Strategic roles A Strategic Role is the contribution of a function to the long-term resultsof the business. It represents one element of functional leadership associ-

ated to the person managing a business entity. Each function can have

more than one Strategic Role.

The Strategic Roles set the organisational framework for the attribution of

accountabilities and responsibilities.

The Strategic Roles of the Technical Function are illustrated below:

Strategic Roles, AccountabilitiesStrategic Roles, Accountabilities



20/62

Chapter 4: 2 Chapter 4: 3 / Continued next page

Account-

abilities

An accountabilitymust be either fulfilled or delivered in order to comply

with a Strategic Role. Accountability includes tasks the individual/unit

should influence, but cannot directly enforce. It comprises the areas of re-

sponsibility of her/his subordinates or the functional (dotted) line, including

the final resolution of trade-offs.

Accountability can be shared but not delegated and includes an obligation

to challenge. It is measured on objectives and includes individual KPIs and

targets of subordinates.The accountabilities for each of the strategic roles are summarised below:

Role Accountability

People Development Corporate culture and policies

Management and leadership principles

Technical and managerial competence development

Career and succession planning

Product Mastership Product quality and safety assurance

Co-leadership for Innovation/Renovation

Nutrition and consumer preference

Product / technology know-how and deployment

Full Compliance Labour safety and legal requirements

Food regulations

Environment Business principles and sustainability

Competitive

Product Supply

Total delivered cost

Fixed asset management

Flexibility and reliability

Industrial / employees relations

Business

Management

Company representation

Sounding board

Governance

Respons-

ibilities

A responsibilityis associated with the main task that the individual can

act upon herself/himself in line with her/his Accountability. It assumes

decision-making authority and the competence/ability to directly enforce

the execution of the task.

Responsibility is primarily assigned ad-persona; it cannot be delegated nei-

ther shared. Only related sub-tasks can be delegated to others (e.g. peers,subordinates).

Several responsibilities may be related to the same accountability.

The responsibilities for each strategic role and accountability are outlined as

follows for the three levels:

Site

Market (Regional)/Business and

Group/Corporate



Overview, Continued

Corporate

culture and

policies

Ensure that the corporate values are integrated into the local culture and

that corporate initiatives are implemented.

Ensure that the technical organisation and the working environment are

set in the spirit of Nestl on the Move and the Nestl Human Resources

Policy.

Adhere to the highest principles of ethical conduct on behalf of the com-

munity, consumer, company, and the engineering profession.

Work hand in hand with the other functions such as Production, QualityManagement, Supply Chain as well as functions at the Market/Region

and Corporate level.

Management

and leadership

principles

Ensure that "Nestl Management and Leadership Principles" are inte-

grated into the local culture.

Show leadership regarding the development of skills and resources.

Ensure implementation of the best practices and harmonised solutions

from other factories.

Technical and

managerial

competence

development

Ensure technical resources achieve a recognised best-in-class level of

competence and managerial skill.

Develop and apply advanced training programs for all factory technical

resources encompassing both technical and managerial competencies.

Apply its talent, knowledge, and experience to the Maintenance and

Improvement (M&I) of the factory assets, to protect and enhance theirfunctionality in accordance with the factory and business priorities.

Career and

succession

planning

Identify future needs and potentials.

Ensure appropriate development, career, and succession planning for all

technical personnel working at the site.

Manage training and development - especially rank and le personnel

working at the site.

Product Mastership

Product quality

and safety

assurance

Ensure all engineering activities at the site level fully respect food safety

and Nestl's quality requirements.

Comply with all relevant guidelines and instructions.

Implement structured process change management procedures. Ensure a good knowledge of the Nestle Quality System (NQS), Good

Manufacturing Practices (GMP), Hazard Analysis Critical Control Points

(HACCP) and Nestl Good Hygienic Engineering (NGHE) exists across

Engineering.

Adopt Good Engineering Practices at all times.

Ensure correct calibration for all critical instruments.


Site Level:People Development






21/62

Chapter 4: 5

Co-leadership

for Innovation /

Renovation

Execute innovation/renovation projects.

Identify local innovation/renovation opportunities.

Remain up-to-date with technological developments.

Ensure operator involvement and training.

Nutrition and

consumer

preference

Engineering at the site level will have limited involvement in nutrition and

consumer preference.

Product /

technology

know-how

and

deployment

Ensure continuous contribution to the market business through

advanced and focused know-how on product and process technology

deployment.

Ensure that the relevant technical know-how from PTC, R&D, CT-Eng

and CT-Pack is disseminated to the appropriate personnel and where

applicable implemented.

Protect Nestls technological know-how by adopting a careful

relationship with 3rd parties, particularly outsourcing partners.

Full Compliance

Labour safety

and legal

requirements

Ensure compliance with all legal regulations and internal guidelines,

practices and principles.

Implement structured process change management procedures.

Implement Good Engineering Practices (GEP).

Food

regulations

Ensure appropriate application of local and company regulations.

Ensure regular equipment certication and calibration.

Ensure the traceabilit y of operational processes and supplies.

Ensure continuous application of the principles of Nestl Good Hygienic

Engineering (NGHE).

Environment Ensure continuous improvement of environmental and energy manage-

ment performances.

Ensure full compliance with local environmental regulations and

corporate initiatives.

Provide leadership in environmental policy.

Ensure prompt, accurate reporting.

Business

principles and

sustainability

Apply market, business principles and ensure decision making takes into

account the long term interests of Nestl.

Maximise line efciencies and performance without jeopardising safety

and quality.

Optimise labour productivity on the production lines.

Identify innovation and renovation opportunities.

Identify activities that could be outsourced.

Total delivered

cost

Take the leadership in driving the line and process optimisation, day to

day planning and the execution and control of engineering activities

through using engineering tools such as AMM, MES, ESAT and NEMT.

Apply continuous improvement (CI) of the factory performance through

engineering activities such as Maintenance and Improvement (M&I),

industrial performance, energy management, MES and automation.

Fixed assetmanagement Optimise capacity utilisation and redeployment of assets to avoid invest-ment in additional assets, idle equipment and the related impact on

depreciation.

Identify and develop investment requirements. Particularly Group 1 and

Group 4 investments.

Execute investment projects (on time, to budget, in scope) without

jeopardising operational needs.

Apply at all times the principles relating to Nestl Good Hygienic

Engineering (NGHE).

Use Nestl's own project managers to oversee its own capital investment

program.

Maximise the use of 2nd hand equipment (cooperation with Nestrade).

Flexibility and

reliability

Take the leadership in driving M&I at the site level. Do everything to

eliminate the root cause of unacceptable failures and enhance asset

functionality and exibility by using tools such as CDM and AMM.

Ensure the efcient management of all engineering activities by day to

day planning, execution and control.

Identify, implement and track Continuous Improvement (CI) opportunities.

Maximise line efciencies and performance without jeopardising safety

and product quality.

Optimise labour productivity on the production lines.

Industrial /

employees

relations

Contribute to employee's relationship with local authorities.

Contribute to employee's relationship with other departments according

to defined principles and policies:

Labour, product quality, safety assurance

Innovation/renovation co-leadership

Technology know-how and deployment, relations with PTC, R&Dand CT-Eng.


Site Level:Product Mastership, Continued


Site Level:Competitive Product Supply

Chapter 4: 4

Strategic Roles, Accountabilitiesand Responsibilities



22/62

Chapter 4: 6


Site Level:Business Management

Corporate

culture and

policies

Ensure that the corporate values are integrated into the local culture and

that corporate initiatives are implemented.

Ensure that the technical organisation and the working environment

are set in the spirit of "Nestl on the Move" and the Nestl "Human

Resources Policy".

Adhere to the highest principles of ethical conduct on behalf of the com-

munity, consumer, company, and the engineering profession.

Work hand in hand with the other market functions such as Production,Finance, Product Development, Quality Management, Marketing, Supply

Chain and Human Resources.

Management

and leadership

principles

Ensure that "Nestl Management and Leadership Principles" are effec-

tively integrated into the Market/Region culture.

Show leadership within the Market/Region Business technical areas

regarding the developing of skills and resources.

Work in a network, distributing best practices and harmonised solutions

to all Nestl sites within the Market/Region.

Technical and

managerial

competence

development

Ensure technical resources achieve a recognised best-in-class level of

competence and managerial skills.

Develop and apply advanced training programs for all technical re-

sources encompassing both technical and managerial competencies.

Apply its talent, knowledge and experience to the Maintenance and

Improvement of the companys assets, to protect and enhance their

functionality in accordance with the business priorities.

Career and

succession

planning

Identify future Market/Region needs, develop and make available candi-

dates for expert networks.

Ensure appropriate development, career, and succession planning of

technical personnel and positions within the Market/Region including the

rank and file members.

Develop and manage succession plans.

Ensure training oriented to cover competency gaps.

Provide support for factory training at the Market/Region level.

Product Mastership

Product quality

and safety

assurance

Set requirements for quality and safety.

Ensure all engineering activities at the market level fully respect food

safety and Nestl's quality requirements.

Ensure structured process change management procedures are imple-

mented.

Ensure that all operating instruction and guidelines such as NQS,

HACCP, GMP, GEP and M&I are implemented (including training) at the

site level.

Company

representation

Contribute to the representation of the group in all site industrial,

regulatory, environmental, and social events and initiatives with specific

relevance to the business.

Sounding

board

Participate and ensure sound advice in key decisions, even if not strictly

related to technical subjects.

Governance Ensure adequate support in the preparation of policies and procedures

for the local management.

Ensure the proper backup, security, update and maintenance of docu-

ments and applications (e.g. plant layouts, electrical single line diagram,

ow diagrams, P&IDs, equipment records, software programs, log

sheets).

Participate in steering and governance at the site level.


Market (Region) / Business Level:People Development





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Co-leadership

for Innovation /

Renovation

Identify and drive local market innovation/renovation opportunities.

Remain up-to-date with technology.

Maintain close links with the PTC, R&D, CT-Eng. and CT-Pack. in respect

to new developments.

Ensure that all process engineers are located in the factories.

Ensure the proper execution of projects prepared by the PTC and R&D.

Nutrition andconsumer

preference

Ensure that all the technical competencies, skills and the proactiveapproach of Engineering contribute to achieving the desired consumer

product preference.

Product /

technology

know-how and

deployment

Ensure continuous contribution to the Market business through

advanced and focused know-how on product and process technology

deployment.

Ensure "pull and push" of relevant technical know-how from PTC, R&D,

CT-Eng, CT-Pack. and the markets.

Protect Nestl's technological know-how by adopting a "careful" relation-

ship with third parties, particularly outsourcing partners.

Provide creative and professional technical support (expert) for the

specialised assets, processes and systems whether product-specific or

non-product-specific.

Full Compliance

Labour safety

and legal

requirements

Provide leadership in safety, health, and environmental performance.

Localise global directions and set specic requirements and priorities.

Drive performance improvement and compliance through factory management.

Ensure adequate resources are available to meet the factory and distribu-

tion needs.

Drive plant risk assessments and contingency planning to deal with

localised risks through factory/supply chain management.

Monitor all engineering work to ensure safe, cost effective execution.

Food

regulations

Ensure appropriate application of local and company regulations con-

cerning food and related items.

Set the requirements to ensure appropriate equipment certication,documentation, traceability, etc.

Ensure structured process change management procedures are imple-

mented at the site level.

p

Market (Region) / Business Level:Product Mastership, Continued

p

Market (Region) / Business Level:Full Compliance, Continued

Environment Ensure continuous improvement of environmental performances at all

operating sites.

Set the requirements to ensure full alignment with local regulations and

corporate initiatives at the site and market level.

Provide environmental benchmarking and target setting at the site and

market level.

Businessprinciples and

sustainability

Consistently apply market, business principles and ensure that all engi-neering activities are in alignment with business strategy.

Establish and provide creative and economical solutions, which are

contributing to the return on the invested capital.

Maintain and improve the manufacturing asset base.

Ensure that the attitude and approach that the engineers at the site and

in the market, put into their every day activities, incorporates at all times

the principles of NEE.

Ensure that Nestle Corporate Business principles are introduced at all

levels of Engineering.

Competitive Product Supply

Total delivered

cost

Localise global directions according to the market/business strategy and

set specic local requirements. Drive engineering performance through the site engineers.

Drive continuous improvement CI, through the site management.

Ensure deployment of the engineering tools.

Fixed asset

management

Be part of the management team developing the Market Business

Strategy (MBS).

Identify and develop investment requirements across all Investment

Groups.

Ensure alignment with the Market/Business Strategy (MBS).

Ensure appropriate balance between factory operation and Capex activities.

Ensure adequate resources for the execution of capital projects.

Ensure appropriate technical solutions and equipment to meet local

market needs (e.g. standardisations).

Ensure compliance with Capex envelopes.

Manage capital projects beyond factory capability.

Facilitate and drive redeployment of assets between factories.

Conceive and design processes with a high degree of exibility to enable

the operations to adjust to a changing environment.

Chapter 4: 8 / Continued next page Chapter 4: 9 / Continued next page




24/62

Chapter 4: 11

Group/Corporate Level:People Development

Corporate

culture and

policies

Ensure that the company values are effectively integrated into the local

culture and that corporate initiatives are driven through the technical

organisation.

Ensure technical organisation and working environment are set in

the spirit of Nestl on the Move and the Nestl Human Resources

Policy.

Adhere to the highest principles of ethical conduct on behalf of the

community, consumer, company, and the engineering profession.

Work hand in hand with the other functions on the corporate level.

Management

and leadership

principles

Show leadership within the Corporate technical areas (CT-Eng., CT-Pack.,

PTCs, R&D and SBUs) regarding the developing of skills and resources.

Manage experts work in a network, distributing best practices and

harmonised solutions to all Nestl Zones, Markets, and Factories.

Technical and

managerial

competence

development

Ensure technical resources set and achieve a recognised best-in-class

level of competence and managerial skill.

Develop and apply advanced training programs for all technical

resources on the Corporate level encompassing both technical and

managerial competencies.

Career and

succession

planning

Ensure strategic resources.

Ensure appropriate development and harmonisation of the career and

succession planning of technical personnel and positions at the

corporate level.

Manage succession planning, recruiting, and development of corporate

base experts.

Coordinate and introduce a roadmap for training worldwide.

Coordinate product specic training.

Support career development in process specic areas.

Manage expert networks.

Encourage networking across all levels.

Organise and manage training relating to new technology

and equipment.

Flexibility and

reliability

Ensure that an effective maintenance system is in operation (AMM) at

the site level.

Localise global directions and set specic local requirements.

Take the leadership in driving M&I.

Set requirements. Drive CI through factory/ supply chain management.

Drive Market Engineering performance.

Ensure adequate engineering resources are available to meet market needs.

Industrial /

employees

relations

Manage engineering relations with local market authorities and entities

contributing to the appropriate representation of Nestl in the market.

Contribute to employees relationship according to dened principles and

policies:

Innovation/renovation co-leadership on the market level

Market/Business technology know-how and deployment, relations

with PTC, R&D and CT-Eng

Markets environmental, safety and legal requirements

Food regulations.

Business Management

Company

representation

Contribute to the representation of the group in all industrial, regulatory,

environmental, and social events and initiatives with specific relevance to

the business.

Participate in fostering external relationship with key stakeholders at the

Market/Region level.

Sounding

board

Participate and ensure sound advice in key decisions, even if not strictly

related to Market/Region technical subjects.


for the Market/Regional business management.

Ensure the proper backup, security, update and maintenance of docu-

ments and applications (e.g. plant layouts, electrical single line diagram,

ow diagrams, P&IDs, equipment records, software programs, log

sheets).

Participate in the steering and the governance of the businesses withinthe Market/Region level.

Market (Region) / Business Level:Competitive Product Supply, Continued

Chapter 4: 10




25/62

Product quality

and safety

assurance

Set requirements for quality and safety.

Develop and implement process and equipment design, master plan,

zoning and operational guidelines.

Set methodology and guidelines for quality and food safety related

process improvements.

Provide technical assistance related to generic services, buildings and

products.

Ensure food safety and product quality through regular auditing of sitesand encouraging markets to perform self audits / gap assessments.

Co-leadership

for Innovation /

Renovation

Develop from the Global Business Strategy (GBS) the SBU and Zone

Business Strategies (ZBS) and forward these to the Markets.

Ensure new product and technology development is in line with the SBU

strategy.

Remain up-to-date with, and ensure the cross fertilisation of

technological and technical developments in respect to process (PTC),

packaging (CT-Pack.) and industrial services (CT-Eng.).

Provide innovative concepts that will improve the process efciency.

PTC: To focus on product-specific renovation/innovation, the mainte-

nance and improvement in respect to product quality and that this is

being followed in the market.

R&D: To focus primarily on the substantial, fundamental andtransformational innovations and renovation equipment and technology.

CT-Eng: To focus on renovation and improvement regarding

non-product-specific technologies and that these are being followed in

the market.

CT-Eng: Facilitate/identify common processes/systems across

businesses.

Nutrition and

consumer

preference

Support 60/40+ initiative with technical competencies and any other

way that will enable Nestl to achieve its desired consumer preference.

Ensure that "+" features of the product are addressed.

Support 60/40+ initiative by new product and technology development

to help maintain the companys leading position in the Health and

Nutrition market.

Group/Corporate Level:Product Mastership

Product /

technology

know-how and

deployment

Ensure continuous contribution to the business through advanced and

focused know-how on product and process technology deployment.

Ensure "pull and push" of relevant technical know-how from PTC, R&D,

CT-Eng. and CT-Pack. and the markets.

CT-Eng: Provide and develop long-term technical solutions regarding

industrial services, building design and construction.

Provide creative and professional technical support to the markets for the

specialised assets, processes, and systems. Both product-specific andnon-product-specific.

Continuously maintain and improve the engineering asset base knowing

that appropriate technologies, plants, and processes are the foundation

of Nestl's success.

Develop Nestl's proprietary technologies in strategic areas.

PTC:For each product portfolio define a technology roadmap.

CT-Eng./PTC: Build/maintain a Best in Class repository and benchmark

information to identify opportunities and to encourage communication.

Full Compliance

Labour safety

and legal

requirements

Set requirements and initiate outside assistance when needed.

Carry out benchmarking and target setting.

Develop and distribute tools for ensuring the highest standard of oc-cupational health and safety across all organisational units and industrial

operations.

Provide corporate guidance on SHE regulatory trends.

Drive risk assessments and contingency planning to deal with regional

and global risks.

CT-Eng: set and distribute tools and guidelines for factory utility audits.

PTC/R&D: provide knowledge in respect to equipment that promotes

safe, efficient, environmentally responsible operation and maintenance.

Food

regulations

Develop and roll out to the market guidelines and regulations concerning

food safety and ensure that the market follow these appropriately.

Develop, design, and implement equipment and process lines which

respect all local and Nestle food regulations.

Environment Ensure continuous improvement of environmental performances at the

corporate level.

Provide corporate guidance by developing and distributing tools and

guidelines relating to the environment.

Provide environmental benchmark ing data as well as set the environ-

mental targets for the company.

Develop appropriate energy management programs and best practices

for all markets.

Group/Corporate Level:Product Mastership, Continued



G /C


G /C


26/62


Business

principles and

sustainability

Consistently apply Global and Zone business principles.

Ensure decisions take into account the long-term interests of Nestl.

Be available to assist the markets in the formulation of the Market Busi-

ness Strategy (MBS).

Develop and apply proprietary technologies in strategic areas.

Work in networks, distributing best practices and harmonised solutions

to all markets (i.e. f actories).

Ensure that Corporate Business principles are introduced at all levels ofEngineering.

Competitive Product Supply

Total delivered

cost

SBU:Benchmarking and target setting in line with the GBS, ZBS and

MBS. Determine the business needs, which in turn will drive the PTC and

R&D activities.

CT-Eng:Development and distribution of the Engineering Toolkit and

guidelines (AMM, ESAT, NEMT, Hexaplan, VEA etc.).

PTC and R&D:Design, prepare equipment selection and expedite for safe

and efficient operation and maintenance.

Fixed asset

management

SBU:Set strategic production requirements in line with the GBS, ZBS

and MBS. Make evaluation recommendations, give opinion regarding

investment budget proposals, and ensure adequate resources for execu-

tion of capital projects.

CT-Eng:Establish guidelines relating to capital investments (CIAT), asset

redeployment and optimisation. Use Nestls project managers to over-

see its own capital investment program.

PTC, R&D: Conceive and design processes with a high degree of exibil -

ity to enable the operations to adjust to a changing environment. Critical

that the PTC and R&D remain:

up-to-date with, and deploy, technological developments

Safeguard relevant technologies

Provide product specific technical solutions.

Flexibility and

reliability

SBU:Set production expectations and initiate outside assistance when

needed.

CT-Eng:Set overall engineering strategy and direction.Optimise service level and operation reliability by benchmarking and

target setting for non-product-specific engineering, services, secondary

and tertiary packaging, safety, environmental issue, etc.

PTC and R&D:Optimise process and lling line design, equipment

selection, and expertise (esp. proprietary) for safe, efcient, reliable, and

exible operation and maintenance.

Group/Corporate Level:Full Compliance, Continued

Industrial /

employees

relations

Contribute to employee's relationship.

Provide knowledge in respect to equipment that promotes safe, efcient,

environmentally responsible operation and maintenance.

Provide technical assistance to markets.

Business Management

Company

representation

Contribute to the representation of the Group in all scientic, industrial,

regulatory, environmental, and social events and initiatives with specificrelevance to the business.

Participate in fostering external relationship with key stakeholders.

CT-Eng: Make engineering visible to the business.

Sounding

board

Participate in key decisions and ensure sound advice, even if not strictly

related to corporate technical subjects.


for the Group business management.

Ensure security, update, and maintenance of documents and software.

Participate in the steering and the governance at the corporate level.

Participate in the steering and the governance of the related product

category.

Group/Corporate Level:Competitive Product Supply, Continued



27/62

Key Engineering ActivitiesOverview

Introduction Engineering covers a broad range of activities and is one of the reasonswhy engineers are a diverse group of people who collectively offer a wide

range of skills, know-how and disciplines ranging from non-professionals to

qualified professionals.

Objective The overall objective of Engineering is to optimise the companys fixed

asset base with the aim of having operations that are low cost, highly

efficient.

Asset life cycle The Key Engineering Activities covered under NEE all relate in some way to

the Fixed Asset Life Cycle as illustrated below:

Fixed Asset Planning

Project Management

Maintenance & Improvement

Industrial Services

Electricity & Automation - Manufacturing Execution System

Energy Management

Process and Packaging Optimisation

Outsourcing and Contracting.

Key Engineering Activities




28/62


Short and long

term impact

Fixed Asset Planning is the activity where Engineering takes the major

decisions with regard to fixed assets and where the market reviews the

performance of their assets in the light of:

the Global Business strategy (GBS) and Zone Business strategy (ZBS)

compliance with external legislation and internal mandatory require-

ments

whether to outsource or manufacture in house

energy source or process / packaging options to use whether to obtain new assets, continue using existing or when to retire

an asset.

It is decisions from the Fixed Asset Planning exercise that impact the short

and long term effectiveness of the companies fixed assets.

Structure of

this chapter

Each section of this chapter is structured as follows:

Overview: General overview

Fundamentals: The minimum requirements that the particular engineer

must have both in place and operating effectively

Functional Roles: Summary of the roles and responsibilities of each func-

tion

Key Performance Indicators: Indicators used to measure and monitorthe activity

Reference Documents: Related available reading material

Introduction Nestls business objective, and that of management and employees

at all levels, is to manufacture and market products in such a way as to

create value that can be sustained over the long term for shareholders,

employees, consumers, business partners and the large number of national

economies in which Nestl operates. Fixed assets play an essential role in

this process.

Fixed assets Fixed assets comprise:

Land

Buildings

Machines and equipment

Tools, furniture and sundry equipment

Outdoor vehicles

Information Technology.

Fixed Asset

Planning

Fixed Asset Planning is part of the Asset Life Cycle and covers the major

decisions with regard to fixed assets.

Key Engineering ActivitiesOverview, Continued

Fixed Asset PlanningOverview






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Market

Business

Strategy

All planning in respect to the companys xed assets start with the Market

Business Strategy (MBS). The formulation of the MBS being a joint effort

involving all representative of the market management team of which

Engineering is part.

The main inputs to the formulation of the MBS are:

Input provided by

The SBU / Zone Business Strategy SBU and Zone (annually)

Local new business opportunities Local marketing

Potential savings opportunities Local management

Compliance Safety ofcer / Engineering

Asset replacement Engineering

Potential restructuring opportunities Centre, regional management

Audits / gap assessments Local management

New technology / processes PTC, R&D, CT-Engineering, suppliers

Benchmarking studies Local management

Continuous improvement Local management

Capacity

planning

The capacity plan is based on the Marketing Business Strategy for particular

markets. It provides data about asset loading and is the basis for making

decisions about fixed assets, such as:

investment in additional capacity upgrading existing assets and processes

rationalis ing, consolidating and/or realignment of the operation

sourcing and/or allocating production across the market and/or region

outsourcing (co-manufacturing and co-packing)

loading of production lines to meet demand

optimisation of capacity utilisation through improvements of systems

and operating performance.

Who manages

fixed assets?

When it comes to the management issues related to fixed assets like:

maintenance, selecting new assets, replacing old assets, installing and

commissioning new assets, Engineering will take the lead in a team

typically composed of members from:

Engineering Manufacturing

Industr ial Performance

Finance

Marketing

Sales

Supply Chain

Environmental / Safety

Qual ity Management.

Input to the

decision

process

The quality of the final decision to be made by the management team will

relate to the quality of the information supplied.

Engineering must:

provide accurate costing regarding investments

provide accurate costing regarding potential savings and future benets

for areas where engineering has direct responsibility

challenge the validity of all the gures presented, not only those

presented by engineering

propose and cost alternatives particularl y relating to:

layouts

equipment selection (new or used)

technology

control and automation.

Decision

affecting fixed

assets

The main decisions resulting from the capacity planning studies in relation

to fixed assets could be one or more of the following:

The future investment in additional assets. Engineering will need to:

evaluate whether to purchase second-hand or new

choose the technology

choose the degree of automation

prepare the proposal for approval as per the guidelines for

capital investment.

See also: Project Management, Guidelines for Capital Investment

The re-evaluation of the maintenance strategy:The asset loading

emanating from the capacity plan might require a review of the mainte-

nance strategy.

See also: Maintenance & Improvement

A change to the industrial service requirements: The study might also

affect the requirements of the industrial services.

See also: Industrial Services

To restructure the asset base: This may involve moving processes to

another site, offshore or even the removal of a process. All of which willinvolve Engineering.

To outsource: This could be the outsourcing part or all of manufacturing,

packing and/or industrial services and it is therefore important that

Engineering, as part of the management team, be involved.

See also: Outsourcing and Contracting

Fixed Asset PlanningFundamentals

Fixed Asset PlanningFundamentals, Continued







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Preparing the

investment

plan

nee gi 00 900 pdf version

Documents

key performance indicators

functional roles

reference documents

fundamentals automation

fundamentals asset

key groups

fundamentals ea

hygienic engineering