Case study: Nestle Quality experience

Since it began over 130 years ago, Nestl's success with product innovations and business acquisitions has turned it into the largest Food Company in the world. As the years have passed, the Nestl family has successfully grown to include soups, coffee, cereals, frozen products, chocolates, yogurts, mineral water, and other food products. In the beginning of the 70s, Nestl has continued to expand its product portfolio to include pet foods, pharmaceutical products, and cosmetics as well.

Nestl wants to be known as a 'Respected, Trustworthy, Food, Nutrition, Health and Wellness Company'. All the actions are guided by a series of business principles. Market research showed that customers of Nestl have a genuine and growing interest in information about its brands. In particular, consumers want more information about what they eat and drink. They felt this information should be supplied as part of the product and they have the right to know it.

Quality Management of Nestl

In the Nestl group, they prioritized quality. There are over ten million people throughout the world enjoying Nestl's products each and every day. Nestl conducts business on a global scale; everyone pays careful attention to the cultural bias and personal tastes of each country because each food culture is based on the distinct characteristics of that particular region. However, it will not go to be too far in the pursuit of food safety and quality management. Nestl has attained a world-class level by applying "Nestl Quality Management System" to all their products. Nestl respects all relevant laws and regulations of each country, but also implements their own independent high standards of total quality management throughout every aspect of the manufacturing process, from raw materials to end products, in order to consistently bring safe and quality products to consumers around the globe.

Furthermore, they are continuously "improving" their products (KAIZEN) in the global network, which the headquarters of the quality management department in Switzerland, and through the performance of regular inspections that ensure their quality management system is functioning at the highest level.

What is Kaizen?

Kaizen (Japanese for "improvement" or "change for the better") refers to practices on continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. It also applies to processes, such as purchasing and logistics that crosses organizational boundaries into the supply chain. By improving standardized activities and processes, kaizen aims to get rid of waste. After the Second World War, Kaizen was first implemented in several Japanese businesses influenced in part by American business and quality management teachers who visited the country. And now, it has spread throughout the around world.

The importance of quality in Nestle

Quality is the foundation of Nestl food, nutrition, health and Wellness Company

Nestl strives to create value that can be sustained over the long term by meeting consumer needs for nutrition, enjoyment and Quality they can trust. Everyday, millions of people all over the world show their confidence in us by choosing Nestl products and brands. This confidence is based on our Quality image and a reputation for high standards that has been built up over many years. Every product on the shelf, every service and every customer helps to shape this image. A Nestl brand name on a product is a promise to the customer that it is safe to consume, that it complies with all relevant laws and regulations and that it constantly meets high standards of Quality. Each and every Nestl employee is involved in and dedicated to achieving high Quality standards for our customers and consumers.

Quality is to win consumer trust and preference

They are committed to offering products and services to their customers and consumers that meet their needs have their preference and provide sound nutrition. Nestl wants to win the trust of their customers and consumers by continuously listening to them by understanding their expectations and consistently satisfying their needs and preferences. Their customers and consumers are at the center of their attention and they recognize their legitimate interest in the behavior, beliefs and actions of Nestl behind brands in which they place their trust.

Quality is everybody's commitment

Demonstrates its commitment towards quality by practicing and living what they reach. All Nestl functions across their Value Chain are fully responsible for observing mandatory principles, norms and instructions for maintaining agreed Quality standards and for constantly improving them. Their quality personnel at all levels are the guardians of Quality Food Safety and Regulatory Compliance. They promote quality awareness, assess, performance, and challenge the organization to sustain and improve quality standards. They communicate their quality standards to their Business Partners who are expected to share the same commitment to quality and to meet their requirements consistently.

Quality is to strive for zero defects and no waste

They focus on facts and results and they strive for zero defect and excellence in everything they do. They adopt a "no waste attitude" and they constantly look for competitiveness and opportunities for continuous improvement of the Quality Standards delivered to their customers and consumers. They provide adequate resources equipment procedures and systems to ensure high quality standards. They build the necessary competence and technical skills. They develop training and teamwork that are crucial to the successful implementation of these standards and to the achievement of excellence and competitiveness.

Quality is to guarantee food safety and full compliance

They enforce full compliance with the mandatory standards and principals of their quality management system, which include Food Safety Regulatory and quality requirements in every step of their Value Chain. They measure their quality performance as well as the satisfaction of their customers and consumers by listening to them. Shortcomings and mistakes are analyzed and trigger an immediate action plan for correction and improvement. Their quality management system is aligned with international standards and full transparency is ensured through verification by independent external bodies. They strive for the flawless execution of their quality activities throughout their organization based on rigorous discipline on pro-activeness and on factual and open communications

Quality Policy

Intentions, direction and aims regarding quality of its products and processes in top management expression.

Success is built by quality

Quality is very important for their success. Nestl product has been chosen by millions of people in this world because they trust Nestle brand. This confidence comes from the quality image and a good reputation for high standards of quality that has been built up over many years by Nestl. Every product, service and customer contact helps to build up this image in Nestle. Customer confidence that the product are safe to consume is based on the look of Nestle brand name on a product, that it complies with all regulations and that it meets high standards of quality. People, equipment and instruments are made available to ensure safety and conformity of Nestl products at all times. Companies with high quality standards are able to minimize the possibility of making mistakes, waste less time and money and are more productive. Therefore, quality is the most vital criteria and it is the key for Nestl to achieve success for today and future.

Quality is a competitive advantage

Nestl is a world brand and live in a competitive world and must never forget that customers have the right to make their choice. If the customers are not satisfied with a Nestl product, they are free to switch to another brand. For Nestl's company goal, they want to provide superior value in every product category and market sectoring which they include in market to complete promote they brand. The pursuit of highest quality of product at any price is no guarantee for success, nor is a single-minded cost-cutting approach. Lasting competitive benefit is gained from a balanced search for optimal value to customers, by simultaneous improvement of quality and reduction of cost.

Quality is made by people

Building quality needs adequate equipment, procedures and systems, including dedicated people. Each and every Nestl employees must be confident in doing his best to produce higher quality products and services. Therefore, training and teamwork are important to the successful implementation of high quality standards. Teamwork allows us to achieve results that are better than the sum of individual job or efforts. They motivate employees by demonstrating management commitment to quality, by setting effective goals and giving them responsibility and recognition. It is through employee involvement that mission of goal can be achieved in the shortest time.

Quality is action

Quality is the result of deliberate action. The senior manager is responsible to present the quality objectives and to provide the necessary resources for the implementation. It is then up to all employees to make provide quality throughout the company. Progress is followed by listening to our customers' comment and by measuring nestle product performance. Shortcomings problem and mistakes must be analyzed and corrected. Problems must be expected and prevented before they occur. We also must identify and take advantage of opportunities to make sure stand still and will not fall behind or left out. Contend for continuous improvement for every Nestle product sell area. It is through every little improvements as well as through major breakthroughs that nestle will perform excellence.

General Principle Of Nestl

Nestl is more people, product and brand adapt than systems oriented. Nestl helps in building long-term successful business development and works hard to be a preferred company for long-term lead shareholders. However, Nestl does not lose sight of the necessity to improve short-term results and remains conscious of the need to generate profit annually. Nestl seeks to gain consumers' confidence and preference and to follow consumer trends, creating and responding to customer demand for its products. Therefore Nestl is followed by an acute sense of performance, support and favoring the rules of free competition within a clear legal framework. Nestle is conscious for social responsibility, which is natural in its long-term orientation. Nestl is as decentralized as likely, within the framework imposed by fundamental policy and strategy decisions requiring to increasing flexibility. Operational efficiencies, as well as the group-wide need for combination and people development, may also set limits to decentralization. Nestl is committed to the concept of continuous improvement of its activities, thus they try avoiding more operatic one-time changes as much as possible.

1- Discuss the general quality strategy used by Nestle.

2- Explain the main dimensions of quality implemented by Nestle.

3- Explain how the company is managing to reduce defects.

4- Explain what might be the cost of quality for NESTLE.

5- As a consultant of a Nestle company, explain in which cases they have to Inspect in the Process.