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Transcript of 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
People Development 4: 7
Product Mastership 4: 7
Full Compliance 4: 8
Competitive Product Supply 4: 9
Business Management 4: 10
Group/Corporate Level 4: 11
People Development 4: 11
Product Mastership 4: 12
Full Compliance 4: 13
Competitive Product Supply 4: 14
Business Management 4: 15
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
Reference Documents 5: 9
Project Management 5: 10
Overview 5: 10
Fundamentals 5: 11
Functional Roles 5: 14
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
Functional Roles 5: 25
Key Performance Indicators 5: 26
Reference Documents 5: 27
Industrial Services 5: 28
Overview 5: 28
Fundamentals 5: 28
Functional Roles 5: 29
Key Performance Indicators 5: 31
Reference Documents 5: 31
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
Functional Roles 5: 37
Key Performance Indicators 5: 38
Reference Documents 5: 39
Energy Management 5: 40
Overview 5: 40
Fundamentals 5: 41
Functional Roles 5: 42
Key Performance Indicators 5: 43Reference Documents 5: 44
Process and Packaging Optimisation 5: 45
Overview 5: 45
Fundamentals 5: 45
Functional Roles 5: 47
Key Performance Indicators 5: 48
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.
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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
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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
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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
Chapter 2: 8 / Continued next page
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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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Chapter 2: 12 Chapter 2: 13
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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Chapter 3: 4 Chapter 3: 5
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
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Chapter 3: 8 Chapter 3: 9
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
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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
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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
Strategic Roles, Accountabilities
and Responsibilities
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.
and Responsibilities
Site Level:People Development
Strategic Roles, Accountabilities
and Responsibilities
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and Responsibilities
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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.
and Responsibilities
Site Level:Product Mastership, Continued
and Responsibilities
Site Level:Competitive Product Supply
Chapter 4: 4
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Chapter 4: 6
and Responsibilities
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.
and Responsibilities
Market (Region) / Business Level:People Development
Chapter 4: 7 / Continued next page
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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
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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.
Governance Ensure adequate support in the preparation of policies and procedures
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
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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
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Chapter 4: 14 Chapter 4: 15
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.
Governance Ensure adequate support in the preparation of policies and procedures
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
Chapter 4: 14 / Continued next page
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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
Key Engineering Activities
Fixed Asset Planning
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Chapter 5: 2 Chapter 5: 3
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
Key Engineering Activities
Fixed Asset Planning
Key Engineering Activities
Fixed Asset Planning
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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
Chapter 5: 4 / Continued next page Chapter 5: 5 / Continued next page
Key Engineering Activities
Fixed Asset Planning
Key Engineering Activities
Fixed Asset Planning
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Preparing the
investment
plan