Operations Management

COLLEGE OF ECONOMICS, MANAGEMENT AND DEVELOPMENT STUDIES

BMGT 25: OPERATIONS MANAGEMENT

1st Semester, AY 2023 – 2024

Nestle Philippines, Inc.

Submitted by

Group 4

Atilano, Sandler G.

Cabe, JanMarc M.

Gastardo, Jerome Ymanuelle D.

Ramos, Richard Lei N.

Gabumpa, Ellissa Ceejay N.

Oabel, Dandley Lourainne A.

Villagracia, Abby Gale T.

Submitted to:

Cheyne L. Banogon

Date:

January 19, 2024

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TABLE OF CONTENTS
I. Introduction................................................................................................................................... 6
II. Vision and Mission.......................................................................................................................7
2.1 Vision statement............................................................................................................... 7
2.2 Mission Statement........................................................................................................... 7
2.3 Corporate Core Values......................................................................................................7
III. PRODUCTION AND OPERATIONS SYSTEMS..................................................................7
3.1 Type of production system followed................................................................................ 7
3.2 Management of Production System..................................................................................8
3.3 Utilisation of Resources....................................................................................................9
3.4 Customer Service System............................................................................................... 11
IV. PLANT LOCATION AND LAYOUT...................................................................................13
4. 1 Locational factors.......................................................................................................... 13
4.2 Strategy adopted for identifying the location................................................................. 14
4.3 Plant/Store layout with discussion and description........................................................ 14
V. MATERIALS HANDLING AND MANAGEMENT............................................................. 15
5.1 Material Requirement Plan for Procurements of Raw Materials...................................15
5.2 Purchase procedures adopted.........................................................................................15
5.3 The supplier or vendors selection.................................................................................. 15
5.4 Adaptation of Just In Time Manufacturing Technique.................................................. 15
VI. PRODUCTION PLANNING AND CONTROL................................................................... 16
6.1 Phases of production planning and production control.................................................. 16
6.2 Planning for the demand fluctuation.............................................................................. 17
6.3 Procedures to manufacture/deliver products.................................................................. 17
6.4 Scheduling the orders..................................................................................................... 18
VII. QUALITY CONTROL.......................................................................................................... 18
7.1 Quality control technique adopted.................................................................................18
7.2 Maintenance of quality.................................................................................................. 19
7.3 Quality control tools used..............................................................................................19
7.4 Types of errors in accepting or rejecting samples......................................................... 19
7.5 Total Quality Management Approach for continual improvement of quality............... 19
7.6 Quality Standard certification obtained, if any.............................................................. 20
VIII. MAINTENANCE AND WASTE MANAGEMENT.......................................................... 21
8.1 Method use of maintaining their machine or equipment................................................ 21
8.2 Methods of disposal of wastes, scrap and obsolete items..............................................21
IX. AUTOMATION........................................................................................................................22
9.1 Type of automation........................................................................................................ 22
9.2 How is the flow managed in automation........................................................................ 22
9.3 Automated storage system.............................................................................................23
REFERENCES............................................................................................................................... 23
APPENDICES.................................................................................................................................26

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I. Introduction

Nestle Philippines Company operates in a dynamic and competitive food and beverage

industry where effective operations management is needed for the company’s success. As

consumers become more demanding and the industry becomes more globalized, companies like

Nestle have to optimize their operations in order to remain competitive and meet customer

demand. Operations management is important for companies like Nestle that belong in the food

and beverage industry, for several reasons. First, it contributes to efficient production processes,

which are important in meeting the high demand for food and beverage products. This also helps

to maintain product quality and safety standards, which ensures consumer satisfaction. It also

aids in improving supply chain management, lowering costs, and increasing overall productivity.

By focusing on operations management, Nestle can enhance productivity, reduce costs, and

maintain a competitive edge in the market.

Nestle Philippines is one of the branches of Nestle SA, a global food and beverage

company established in 1866 by Henri Nestlé in Vevey, Switzerland. Nestlé has been around in

the Philippines since the late 1800s. They officially began doing business here in 1911 by

establishing a location to sell their products. Nestlé then formed a partnership with San Miguel

Corporation, a large Philippine company, in 1962. In 1990, Nestlé Philippines fully owned this

partnership, becoming the sole owner in the Philippines. They marked 95 years of service to the

country in 2006. Since then, Nestlé Philippines has expanded and produced a wide range of

foods and beverages, such as dairy products, coffee, milk, and more. They have almost 2,000

brands, including Nescafe, Milo, Nido, Bear Brand, KitKat, and more. Thus, Nestle Philippines

has established itself as a trusted and well-known brand in the country. The company currently

has five production plants in the Philippines, located in Laguna, Cagayan de Oro, Bulacan, as well

as another two in the province of Batangas. (Monzon, A. 2023)

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Nestle Philippines' philosophy revolves around the principles of nutrition, health, and

wellness. The company strives to provide products that help consumers live a healthier and more

balanced lifestyle, as expressed in their corporate proposition, 'Good Food, Good Life'. Nestle

Philippines is also guided by a quality policy, which states that they will never compromise on the

safety, compliance, or quality of their products and services. The company's primary goal is to

maintain a zero-defect mindset for reliable products and services, to comply with laws and

regulations, to continuously improve the quality management system, and to encourage

participation and promotion of quality responsibilities. Its quality policy statement reflects its

dedication to providing excellence in every aspect of its operations, from production to distribution

and customer service.

II. Vision and Mission

2.1 Vision statement

“To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved

shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier

selling preferred products.

2.2 Mission Statement

“The world’s leading nutrition, health, and wellness company. Our mission of “Good Food,

Good Life” is to provide consumers with the best tasting, most nutritious choices in a wide range

of food and beverage categories and eating occasions, from morning to night.”

2.3 Corporate Core Values

“Full legal compliance, honesty, fair dealings, integrity, and respect.”

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III. PRODUCTION AND OPERATIONS SYSTEMS

3.1 Type of production system followed.

Nestlé follows a decentralized approach, which means each country is responsible for its

own operational decisions based on local market conditions and consumer preferences. This

allows them to be flexible and responsive to changes in the market. When it comes to production,

Nestlé uses a mix of batch production and continuous production systems, depending on the

specific product and its demand. Continuous production is used for high-demand products like

Nescafé coffee or KitKat chocolate bars, while batch production is used for smaller quantities or

specialty items. Nestlé has a comprehensive approach. They have a Quality Management

System that is designed to provide products that are safe, are of high quality, and comply with

relevant laws and regulations. This system is based on several principles, including customer

focus, leadership, engagement of people, process approach, improvement, evidence-based

decision making, and relationship management. Nestlé also has a program called "Nestlé

Continuous Excellence" (NCE), which is a company-wide initiative aimed at improving efficiency,

reducing waste, and promoting a culture of continuous improvement.

3.2 Management of Production System

Nestle Philippines, as part of the global Nestle brand, employs a comprehensive and

efficient production system. This system is a blend of cutting-edge technology, a highly skilled

workforce, and strategic planning to ensure seamless operations. Here's a closer look at how they

manage their production:

1. Process Design: Nestle Philippines designs its processes to be efficient and effective,

ensuring that resources are used optimally. This includes everything from the layout of the

production floor to the sequence of operations in making a product.

2. Quality Management: Quality is a top priority for Nestle. They have strict quality control

measures in place at every stage of the production process. This includes regular

inspections and audits to ensure that all products meet their high standards.

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3. Inventory Management: Nestle Philippines uses advanced inventory management

systems to ensure they have the right amount of raw materials and finished products. This

helps them meet demand without overstocking or running out of products.

4. Supply Chain Management: Nestle Philippines works closely with its suppliers to ensure

a steady supply of high-quality raw materials. They also manage their distribution

networks effectively to ensure products reach their customers in a timely manner.

5. Capacity Planning: Nestle Philippines uses forecasting tools to predict demand and plan

their production capacity accordingly. This helps them avoid overproduction or

underproduction.

6. Continuous Improvement: Nestle Philippines is committed to continuous improvement.

They regularly review and update their operations to increase efficiency and reduce waste.

7. Employee Training and Development: Nestle invests heavily in training its employees.

This ensures that they have the skills and knowledge needed to manage the production

system effectively.

3.3 Utilisation of Resources

Nestle Philippines optimizes its resources, including manpower, capacity, and materials, to

ensure efficient and effective operations. Here's how they utilize each resource:

1. Manpower: Nestle Philippines recognizes that its employees are a valuable asset. They

prioritize manpower utilization by:

● Training and Development: Nestle provides comprehensive training programs to enhance

the skills and knowledge of its workforce. This ensures that employees are equipped to

perform their roles effectively and efficiently.

● Workforce Planning: Nestle Philippines carefully plans its workforce to align with

production needs. They assess staffing requirements based on production volumes,

market demand, and product development plans.

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● Cross-Functional Teams: Nestle encourages collaboration and cross-functional teamwork.

This allows employees to leverage their diverse skills and expertise, leading to improved

problem-solving and decision-making.

● Employee Engagement: Nestle fosters a positive work environment that promotes

employee engagement. They value employee feedback, encourage open communication,

and provide opportunities for growth and recognition.

2. Capacity: Nestle Philippines optimizes its production capacity to meet market demand while

ensuring efficiency and cost-effectiveness. Here's how they manage capacity:

● Demand Forecasting: Nestle Philippines utilizes advanced forecasting techniques to

predict market demand accurately. This helps them plan their production capacity

accordingly, avoiding underutilization or overutilization of resources.

● Production Planning: Nestle carefully plans its production schedules to optimize capacity

utilization. They consider factors such as production lead times, equipment availability, and

resource allocation to ensure smooth operations.

● Continuous Improvement: Nestle Philippines continuously evaluates and improves its

production processes to enhance capacity utilization. They identify bottlenecks, streamline

workflows, and implement efficiency-enhancing measures.

3. Materials: Nestle Philippines focuses on responsible sourcing and efficient utilization of

materials. Here's how they manage their material resources:

● Supplier Collaboration: Nestle works closely with its suppliers to ensure a steady supply of

high-quality materials. They establish long-term partnerships and engage in sustainable

sourcing practices.

● Waste Reduction: Nestle Philippines implements waste reduction initiatives throughout its

production processes. They prioritize recycling and reuse, minimizing material waste and

environmental impact.

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● Inventory Management: Nestle maintains efficient inventory management systems to

optimize material utilization. They carefully monitor stock levels, minimize excess

inventory, and ensure timely replenishment.

3.4 Customer Service System

Nestle Philippines employs a customer-centric system to cater to the needs and

preferences of their customers. This system can be defined as a holistic approach that

encompasses various strategies and processes to ensure customer satisfaction. Here are some

key elements of this customer-centric system:

1. Customer Relationship Management (CRM): Nestle Philippines utilizes CRM tools and

techniques to understand their customers better. They collect and analyze customer data

to gain insights into their preferences, buying behavior, and feedback. This information

helps them tailor their products and services to meet customer expectations.

2. Market Research and Analysis: Nestle Philippines conducts market research to identify

customer needs, market trends, and emerging opportunities. They analyze market data to

develop new products, improve existing ones, and align their offerings with customer

preferences.

3. Product Development and Innovation: Nestle Philippines focuses on continuous

product development and innovation to cater to evolving customer demands. They invest

in research and development to create new and improved products that align with

customer preferences, tastes, and health considerations.

4. Personalized Marketing and Communication: Nestle Philippines employs personalized

marketing strategies to engage with customers on a more individual level. They utilize

targeted advertising, social media, and other communication channels to deliver relevant

messages and offers to specific customer segments.

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5. Customer Service and Support: Nestle Philippines places great emphasis on providing

excellent customer service and support. They have dedicated customer service teams that

promptly address customer inquiries, concerns, and feedback. This ensures a positive

customer experience throughout their interaction with the company.

6. Continuous Improvement: Nestle Philippines continuously seeks ways to improve their

customer-centric system. They actively listen to customer feedback, monitor customer

satisfaction metrics, and implement necessary changes to enhance the overall customer

experience.

Nestle Philippines utilizes a customer feedback system as part of their customer-centric approach

to cater to their customers. This system allows customers to provide their feedback, opinions, and

suggestions regarding Nestle's products, services, and overall customer experience. The

feedback system serves as a valuable tool for Nestle to gather insights and make improvements

based on customer preferences and needs.

The customer feedback system employed by Nestle Philippines typically includes the following

elements:

1. Feedback Channels: Nestle provides various channels through which customers can

share their feedback. These may include online feedback forms, customer service

hotlines, email communication, social media platforms, and dedicated feedback portals on

their website.

2. Customer Surveys: Nestle Philippines conducts customer surveys to gather specific

feedback on product preferences, quality, packaging, pricing, and other aspects of their

offerings. These surveys help Nestle understand customer perceptions and make

data-driven decisions.

3. Customer Service Interaction: Nestle's customer service team actively engages with

customers to address their concerns, inquiries, and feedback. This interaction provides an

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opportunity for customers to share their experiences and provide feedback directly to

Nestle.

4. Online Reviews and Ratings: Nestle monitors online platforms, review websites, and

social media channels to track customer reviews and ratings. This allows them to gain

insights into customer sentiment and identify areas for improvement.

5. Product Testing and Sampling: Nestle occasionally provides customers with the

opportunity to test new products or participate in sampling programs. This allows

customers to provide feedback on the taste, quality, and overall experience of the

products.

IV. PLANT LOCATION AND LAYOUT

4. 1 Locational factors

The Nestle Company is a Swiss multinational food and drink processing conglomerate

corporation headquartered in Vevey, Vaud, Switzerland. They started Nestle Philippines in 1911

although Nestlé products were already available in the Philippines as far back as 1895. In Picking

a location there are factors to consider. There are types of locational factors, general locational

factors and specific locational factors.

Supply of Raw Material - Getting the fresh supplies for their company is a must. The

company’s second biggest selling brand is nescafe and about a third of raw materials for the

brand comes from Vietnam and Indonesia , the 70% will be sourced from the local farmers (2011).

Nestlé Philippines announced that in crop year 2020-2021, its local coffee buying had increased

by 39 percent, following an increase of 27 percent in 2019-2020. These increases are attributed

to higher yields because of intensified classroom and hands-on training for Robusta coffee

farmers, and greater availability of credit for farming, aspects of coffee production in which the

NESCAFÉ Plan is actively involved. Nestlé Philippines aims to continue increasing direct buying

from individual farmers and farmer groups as a component of the NESCAFÉ Plan.

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Location of Competitors - The Nestle Philippines has many competitors in the country,

the leading package food company is San Miguel Corp. and it is followed by Nestle Philippines.

Although Nestle Philippines is the second largest packaged food company ( in 2022 , according to

market share) they still have to look out for their competitors because they can't predict what the

market will be in the future. The current top 2 food companies are in terms of market share San

Miguel Corp (8.3%) , Nestle SA (8.1%).

Proximity to Markets - Nestle Philippines have 5 manufacturing and 5 distribution centers

and they distribute their products using distributor companies like MSCS PrimeGoods, Inc.

(MSCS), is a distributor and sub-distributor of imported and local food, and other consumer goods

in the Philippines. MSCS was established in May 2015 as a family-owned company. MSCS

PrimeGoods . INC covers the Greater Manila Area (GMA) they distribute to food restaurants and

others alike, they also supply to the consumers / stores in Cebu and the Visayas . In places like

Rizal, Pasig and Marikina Area Right Moves Inc. (RMI) is an exclusive distributor of Nestle

Phils., Inc. These are some of the distributors that Nestle Philippines provides for their customers.

Transportation Facilities - Companies like Nestle Philippines use third party transport

service providers for their raw materials transportation . If the raw materials are from overseas

they use air and water transportation. For local raw materials they use roads , water , and airlines.

These are some partners of Nestle Philippines for transportation AP Cargo , MCC Philippines ,

etc.

Labour and Wages - The Nestle Philippines have 3,900 employees working within their

function worldwide – from scientists and engineers to regulatory experts and culinary chefs . The

average Nestlé monthly salary ranges from approximately Php 8,000 per month for Intern to Php

76,126 per month for Marketing Manager. The average Nestlé daily wage ranges from

approximately Php 500 per day for Office Clerk to Php 700 per day for Office Worker.

Government Policies - In the Philippines, food manufacturing and packaging are

primarily governed by Republic Act No. 10611, known as the Food Safety Act of 2013 (FSA),

along with its implementing rules and regulations outlined in Department of

Agriculture-Department of Health Joint Administrative Order No. 2015-0007 (FSA IRR). Under the

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FSA, the term "food" encompasses any substance or product intended for human consumption,

including drinks, chewing gum, water, and substances intentionally incorporated during

manufacturing, preparation, and treatment. The Food and Drug Administration (FDA) plays a key

role, prescribing control measures, standards, and regulations to ensure the safety of processed

and prepackaged foods. The FDA oversees various aspects, including inspection, licensing,

registration, post-market monitoring, and laboratory analysis, pertaining to both locally produced

and imported processed food products, along with food supplements and dietary supplements.

These are some factors that need to be considered when finding locations for business .

4.2 Strategy adopted for identifying the location

In identifying location there are some factors to consider. One key factor to be considered

is the potential and growth of the market . The Philippines has a strong market and has lots of

opportunities to be explored. As one of the leading companies in the Philippines , Nestle

Philippines priorities the sourcing raw materials especially the coffee because the coffee market in

the Philippines is very strong and Nestle sees exciting opportunities for expanding their coffee

business (Schneider , 2023)

4.3 Plant/Store layout with discussion and description

Manufacturing companies often have their machines in a specific layout to maximize

space , time and lessen cost. It is an essential part of their plan to generate maximum profit.

Nestle is using a plant layout which is functional in nature or called process layout. Layout that

can handle varied processing requirements. Here all machines performing similar types of

operations are grouped together at one location. Thus, facilities are grouped together according to

their functions.

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V. MATERIALS HANDLING AND MANAGEMENT

5.1 Material Requirement Plan for Procurements of Raw Materials

Nestle forecasts and manages raw material requirements of its products using a

sophisticated MRP. The system takes into account demand forecasts, inventory levels, and

production schedules to ensure timely purchasing of raw materials

5.2 Purchase procedures adopted

In accordance with their procurement policy, Nestle obtains its supplies either directly from

the farmers or through their organization. Substantial raw materials will go through competitive

bidding, and they will either choose to acquire from their preferred provider or get quotations from

at least three other suppliers before making a substantial purchase decision. Justification must be

given if sole sourcing is a problem.

5.3 The supplier or vendors selection

Nestle takes great care while choosing its suppliers. After compiling a limited list of

competent vendors, they will only review the proposals from those providers. After that, they will

be examined to see if they meet Nestle's requirements. The prospective suppliers will undergo

additional evaluation to determine their capacity to maintain the quality of the materials and

comply with Nestle's policy.

5.4 Adaptation of Just In Time Manufacturing Technique

Lean production is employed by Nestle. It aids in waste minimization, which lowers

production costs. They incorporated values at manufacturing, and the result is a program known

as TIMWOOD, which consists of cost-cutting measures. Another lean manufacturing strategy they

employ is just-in-time. They stack water with it. They won't stack water bottles needlessly until the

trucks have arrived, making efficient use of transportation resources.

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VI. PRODUCTION PLANNING AND CONTROL

6.1 Phases of production planning and production control

1. Planning Phase

The planning phase is when the project plans are documented, the project deliverables and

requirements are defined, and the project schedule is created. It involves creating a set of

plans to help guide your team through the implementation and closure phases of the project

(Watt, A. (2014),. The planning phase is the first stage of production planning and control at

Nestle Philippines. During this phase, the production team establishes production goals and

objectives based on market demand and company’s objectives. They also estimate the

amount of manpower, raw materials, and equipment needed to meet production targets. In

addition, a production schedule is created to specify the order and timing of production

activities. The planning phase is essential because it lays the groundwork for the entire

production process, ensuring that all of the necessary components are in place before moving

on to the action phase.

2. Action Phase

The action phase of Nestle Philippines' production planning and control involves carrying out

the production plan developed during the planning phase. During this stage, the production

team allocates resources, coordinates activities, and begins the production process. The

required raw materials and equipment are collected and the production schedule is followed to

ensure that each step of the process is completed efficiently. Effective communication and

coordination among various departments, such as procurement, manufacturing, and logistics,

must occur during the action phase to ensure smooth operations and timely production.

3. Control phase

Nestle Philippines' production planning and control process relies heavily on the control

phase. In this phase, the production team monitors and evaluates production activities to

ensure that they are in accordance with the plan developed during the planning stage. Key

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performance indicators (KPIs) and quality standards are used to evaluate the manufacturing

process's efficiency, productivity, and quality. If there are some changes or issues, corrective

actions are made to address them and maintain the desired level of performance. Continuous

monitoring and evaluation during the control phase help to ensure that production goals are

met and that any necessary adjustments are made to optimize the production process.

6.2 Planning for the demand fluctuation

One of the forecasting techniques used by Nestle Philippines when facing the demand

fluctuations is time series analysis, this involves studying previous sales data to identify the

demand patterns and trends. This helps in forecasting future demand based on previous

behavior. Nestle also uses the market research technique, which involves comprehensive

research to determine consumer preferences, buying behaviors, and market trends. This

information helps the company to make informed forecasts about future demand. Additionally,

Nestle uses various capacity plans in order to deal with the fluctuations of demand. They use

short term capacity plans where when demand is high they hire extra staff and when the demand

is lower the company tends to produce more products keeping in mind the shelf-life and quality of

products. They also organize additional product promotions and discounts to stimulate purchases

in off-the-season time.

6.3 Procedures to manufacture/deliver products

Nestle Philippines has established a comprehensive manufacturing and distribution

process to ensure the production and delivery of high-quality products.

The company first sourced raw materials from their trusted suppliers and these raw

materials are then carefully inspected and tested to meet the company's quality standards.

Approved materials go through advanced processing methods, and the finished products are

thoroughly tested and evaluated to determine whether they reflect Nestle's commitment to

continuous improvement and innovation in the manufacturing process. Nestle Philippines carefully

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checks products after they are manufactured to ensure they meet high standards. After that, the

products are carefully packaged and labeled for easy identification. The products are then

transported to selected distribution centers throughout the Philippines. They are then distributed

nationwide to retailers, wholesalers, and distributors. Nestle Philippines manages a truck fleet and

a network of logistics partners to ensure timely and reliable delivery. In addition, the company

uses advanced technology and tracking systems to monitor the movement of goods and provide

real-time updates.

6.4 Scheduling the orders

Nestle Philippines uses Master Production Scheduling (MPS) as a scheduling method for

their products/orders, it means they follow a detailed production planning process to manage their

production activities and meet customer demand. Master Production Schedule (MPS) is a series

of time phased quantities for each item that a company produces, indicating how many are to be

produced and when.

VII. QUALITY CONTROL

7.1 Quality control technique adopted

Nestlé Philippines adopts the Statistical Process Control (SPC) technique, which means

they utilize statistical methods to monitor and control their production processes. SPC is a quality

control technique that involves Data Collection, Data Analysis, and Continuous Improvement. This

process is used to make data based decisions and to maintain consistent quality. SPC helps

Nestlé Philippines identify potential issues or deviations from quality standards early on and take

proactive measures to address them.

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7.2 Maintenance of quality

Nestle ensures the quality of their products and food safety by implementing the

internationally recognized Good Manufacturing Practices (GMP) and HACCP (Hazard Analysis

and Critical Control Point). GMP covers all aspects of manufacturing, including standard operating

procedures, people management and training, equipment maintenance, and handling of

materials. while the HACCP identifies, evaluates, and controls hazards that are significant for

food safety. It covers the entire food production process from raw materials to distribution and

consumption.

7.3 Quality control tools used

Nestle Philippines uses a variety of tools and techniques, such as the fishbone diagram, a

cause-and-effect diagram that helps Nestle identify factors that can affect product quality or cause

problems during the manufacturing process. Using this tool, Nestle Philippines can effectively

identify the root cause of quality issues and implement appropriate corrective measures. In the

fishbone diagram, each rib represents a type of cause that contributes to the problem. These

categories include the five most common contributors to safety and accident analysis: equipment,

environment, personnel, materials, and methods. Nestle Philippines uses the fishbone diagram to

systematically analyze these categories and identify specific factors that may be contributing to

the quality issue.

7.4 Total Quality Management Approach for continual improvement of quality

Nestle Philippines follows the Total Quality Management (TQM) approach to continually improve

the quality of their products and services. As per Feigebaum, “Total Quality Management is an

effective system of integrating the quality development, quality maintenance and quality

improvement efforts of various groups in an organization so as to enable marketing, engineering,

production and service at the most economical levels which allow for full customer satisfaction”.

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● Customer Focus: Nestle Philippines places a strong emphasis on understanding and

meeting customer needs and expectations. They actively gather customer feedback and

use it to improve their products and services.

● Continuous Improvement: Nestle Philippines is committed to constantly improving its

processes, products, and services. They use quality performance indicators and

measurements to monitor progress and implement corrective actions when necessary.

● Supplier Collaboration: Nestle Philippines works closely with its suppliers to ensure the

quality of raw materials and ingredients used in their products. They have established

strong supplier evaluation and selection processes to ensure consistent quality standards

are met.

● Employee Training: Nestle Philippines provides ongoing training and development

programs to equip employees with the necessary skills and knowledge to deliver

high-quality products and services.

7.5 Quality Standard certification obtained

Nestle Philippines has obtained several quality standard certifications to ensure the high quality of

their products and operations. Some of the certifications include:

● ISO 9001: This certification shows that Nestle Philippines has implemented effective

quality management systems and processes to consistently provide products that meet

customer and regulatory requirements.

● FSSC 22000: This certification represents the highest standards of food safety

management and indicates that Nestle Philippines has implemented rigorous food safety

practices throughout their operations.

● Halal Certification: Nestle Philippines has obtained Halal certification for certain products,

ensuring that they are compliant with Islamic dietary requirements.

These certifications demonstrate Nestle Philippines' commitment to upholding stringent quality

standards and providing safe and reliable products to their customers.

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VIII. MAINTENANCE AND WASTE MANAGEMENT

8.1 Method use of maintaining their machine or equipment

Nestlé Philippines has established maintenance procedures and strategies to ensure their

machines and equipment are well-maintained to minimize breakdowns and improve efficiency.

● Regular Inspections: Nestlé Philippines regularly conducts visual inspections to check for

early signs of wear and tear or any damage on their machines and equipment. This helps

identify potential issues before they cause significant downtime or failure of equipment.

● Periodic Preventive Maintenance: To ensure optimal function, Nestlé Philippines

implements preventive maintenance protocols according to manufacturer

recommendations. They conduct periodic inspections and replacements of parts to

prevent machine deterioration or breakdowns.

● Lubrication: Proper lubrication is key to machine health, and Nestlé Philippines uses

lubricants on their machines to minimize friction and wear on critical components..

● Training and Skill Development: Nestlé Philippines invests in the training and skill

development of their technicians and engineers to ensure that they stay up-to-date with

the latest advancements and technologies in the industry

● Monitoring and Analytics: Nestlé Philippines uses advanced monitoring and analytics tools

to track the performance of their machines, optimize operational efficiency, and diagnose

potential issues before they become critical.

8.2 Methods of disposal of wastes, scrap and obsolete items

Nestlé Philippines has been implementing various methods for the disposal of wastes, scrap, and

obsolete items in their efforts towards sustainable waste management.

● Recycling: Nestlé Philippines has been actively promoting the recycling of plastic waste.

They aim to lead the shift from virgin plastics to food-grade recycled plastics and invest in

the development of innovative sustainable packaging.

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● Packaging Alternatives and Innovation: Nestlé Philippines focuses on finding alternative

materials and innovative packaging solutions that are more sustainable and

environmentally friendly. This includes exploring options for packaging materials that are

easier to recycle or made from recycled materials.

● Waste Recovery: Nestlé Philippines strives to recover and reuse as much waste as

possible. They work on the recovery and recycling of plastic waste, aiming to reduce the

amount of waste that reaches landfills or becomes pollution

● Proper Disposal: Nestlé Philippines emphasizes the importance of proper waste disposal

and encourages consumers to dispose of waste plastics responsibly. They conduct

community workshops and educate consumers on the best practices for waste disposal.

IX. AUTOMATION

9.1 Type of automation

According to an Analytics Insight research, Nestle has used innovative technologies such

as artificial intelligence, machine learning, advanced data analytics, blockchain, augmented

reality, and others to improve company prospects and give a better consumer experience. Nestle

has invested in AI and data analytics to create data-driven business strategies. According to

studies, Nestle has an effective structure that makes data accessible, interrelated, and liberalized.

Nestle built a centralized data warehouse using Microsoft Power BI and Azure to provide a

dependable data analytics and business intelligence platform based on high-quality, scalable

data. Nestle has also used artificial intelligence to improve consumer experiences and business

intelligence.

9.2 How is the flow managed in automation

Management of flow in automation is managed by different employees with relation to their

job description. This includes maintenance, monitoring and overseeing of automated systems

although it was not specified how many workers were part of managing.

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REFERENCES AND APPENDICES

Msa. (2022, October 4). Nestle Mission Statement 2024 | Nestle Mission & Vision Analysis.

Biggest Mission Statements Collection - Mission Statement Academy.

https://mission-statement.com/nestle/#

Nestle Philippines is shaping a waste-free future by sustaining waste recovery. (2020, September

4).Manila Bulletin.

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