Leveraging Automation for Leveraging Automation for Global AcceptanceGlobal Acceptance
Rakesh Verma Rakesh Verma –– Nestle India LtdNestle India Ltd77thth April 2006April 2006
Automation in F &B Industry
Outline
• Food business emerging trends / Challenges
• Nestle Business drivers and key initiatives
• Nestle automation strategy and Benefits
leveraged
• Feedback and way forward
• On-shelf Availability with Innovative Packaging
• Freshness• Value for money• Assured Food Safety
and Quality• Health and Wellness
attributes
Is she going to pick up our product every time?Yes if we are superior in
Food Industry - emerging trends ...
Food Safety & Stricter regulatory norms• Focus on raw material potential contaminants,
Pathogenic bacteria, foreign body management, net contents control
Process consistency and traceability across Supply Chain from farm to fork
Freshness of stocks• Taste, aroma, flavor, texture of processed food expected
close to fresh stockLean pipeline for freshness demand reliable and consistent Plant Performance
“Value for Money” first for the consumer• Low Cost, efficient & flexible in Logistics, production
Affordable Products with Market penetration
Food Industry - emerging trends ...
Discerning consumer• Less disposable income for food, more for consumer
durables e.g. Mobile phones, cars etc.
Leadership through Innovation- Renovation using R & D and Consumer in-sight
Consumer education towards health- well being with appropriate consumer communication
Strong hope into future• Food is fundamental to basic need for human masses
800 million people still go to bed without food, another 1200 million yet to touch processed food
Evolution of Need States in Food ...
GOOD FOOD GOOD FOOD, GOOD LIFE
Sustenance Enjoyment Health/ Nutrition Psychological Contentment
Good Food Health & Wellness Wellbeing
Feeling GoodTaking Control
EquilibriumBody & Mind
PerceivedNutritional
value +Taste/Pleasure
Variety/BalanceSafety/Quality
For all+
Nestlé – World’s leading food and beverage company
• Founded 140 years ago, in 1866 by Henri Nestlé
• 71 billion USD turnover and 6.2 bio USD net profit in 2005
• 254,000 employees
• Over 8500 brands
• operating in more than 120 countries
• 521 factories
Nestle Logo, universally understood, simultaneously evokes security & affection, nature & nourishing, family & tradition.
Worldwide number 1 in……..
• Soluble Coffee• Infant Nutrition• Confectionery• Dairy• Chocolate Milk Beverages• Bottled Water• PetCare• Ice Cream• We own 26.4 % of L’Oreal, world’s leading
cosmetics company
Nestle India – partner to economic growth
Established: year 1912
Manufacturing: Year 1961
Sales: INR 2,480 crores
Factories: 7
Employees: 3,500
Sales: 4 Branches, 3900 distributors and 900,000 outlets
Third largest Food Industry in India
Nestlé India - manufacturing ...
NANJANGUDNANJANGUD…….1989.1989Instant coffeeInstant coffeeHealth BeveragesHealth Beverages
CHOLADICHOLADI…19671967
Instant TeaInstant Tea
MOGA ...1962MOGA ...1962Milk ProductsMilk ProductsInfant Milk ProductsInfant Milk ProductsWeaning CerealsWeaning CerealsCulinary ProductsCulinary Products
HEAD OFFICE HEAD OFFICE
GurgaonGurgaon
SAMALKHASAMALKHA……19921992Weaning CerealsWeaning CerealsInfant Milk ProductsInfant Milk ProductsDahi Dahi NoodlesNoodles
PONDAPONDA……19951995ChocolatesChocolates
BICHOLIMBICHOLIM……..1997..1997
Culinary ProductsCulinary Products
Our core values reflect in businesses....
• High commitment to quality products and brands
• Respect for other cultures and traditions
• The Nestlé culture– Strong work ethic, integrity, honesty and quality– Personal relations based on trust– Personalized and direct way of dealing with each other– More pragmatic than dogmatic approach to business– Openness and curiosity for dynamic and future trends– Pride in contributing to the reputation and performance of the
Company– Loyalty to and identification with the Company
Our core values reflect in businesses....
Global Business drivers
• Long term Sustainable & profitable growth
– Low cost highly efficient operations
– Product availability whenever, wherever, however
– Innovation and Renovation
– Consumer communication
• Focus on its biggest assets: people, brands, products
• High quality products for health, nutrition & well-being
• Leverage Nestle Global strength with common business Process & IS/ IT architecture and Best practices
• Culture of continuous improvement
Operation Excellence at work
Lean Technical Overheads
Product Complexity Optimization
GLOBE
Low cost / High effective operations
Total Delivered Costs
improvement
Challenges for Food Industry
Asset Productivity– Down time reduction
• Automated start up and shut down of plant• Focus on Unplanned downtime with people ownership• “Fast pit stop” changeovers• Efficient cleaning and Continuous runs of equipment• Condition Based Preventive Maintenance systems
– Enhanced plant Throughput• Minimized process variability• Challenge the process all the time “Toyota Principle”
• Reduced Rework/ loss thru people involvement and training
Quality is part of plant design, Processes, People mind setQuality is part of plant design, Processes, People mind setQuality is part of plant design, Processes, People mind set
Challenges for Food Industry
Compliances
– Robust recipe management
• A necessity for continuous and integrated process
• Human error avoidance
– Traceability
• Process conditions inclusive of CCPs
• Lot traceability of finished product back to Raw materials
– Calibration of Instruments
Quality– Integrating in-line quality data for instant product release
– Empowering line operators to take product release ownership
Shop Floor Process Management
S 88
Str
uctu
res
Control & Measuring Systems & ToolsPC Based (Ethernet) User Interface, Data Storage & Reporting
Real Time Data (INSQL Server), Event Data (SQL Sever)Sensors, Actuators, Logical Devices(PLC), Drives
Recipe Management Batch / Continuous Process
ManufacturingWork
Processes
ProductionManagementTransaction
PlanDefinition InformationCapabilityProductionS95-01S95-02S95-03
Overview Nestle Enterprise model
SAP Business Planning & Supply Chain Management
BusinessProcess
TransactionsBusiness
WorkProcesses
GLOBE IS-IT
Process Focus Traceability
Process Consistency
Mid
dlew
are
M E SM E SM E S
Tool BoxTool Box
Non ProductSpecific
ProductSpecific
Local
ProductSpecific
Re-usable
Coffee MES
SAP
Strategy: MES Integration
Factories
Factory FloorMES & Control SystemsApplications
Standard "XML Dialect" for control systems
SAP "Native Dialects, IDOC, XML, PCS Messages"
Data centers
Horizontal WorkflowApplication Software tools to Accomplish Full Fledged MES
GLOBE IS-IT Mapping and Mailing
Tool BoxTool Box
Non ProductSpecific
ProductSpecific
Local
ProductSpecific
Re-usable
Milk MES
Tool BoxTool Box
Non ProductSpecific
ProductSpecific
Local
FactoryA
FactoryB
FactoryXProduct
SpecificRe-usable
Milo MES
Middleware
Horizontal WorkflowApplication Software tools to Accomplish Full Fledged MES
Horizontal WorkflowApplication Software tools to Accomplish Full Fledged MES
Net working Process Control
APC OFF% TC Mean Value - 43.7
APC ON% TC Mean Value - 46.3
Advanced Process Controls -Process consistency
Process Focus: Real Time monitoring and Instant Release
Production run time Stoppage
Upper Limit
Lower Limit
Online trend of ingredient dosing rate is monitored continuouslyby control system and is visible for operator through out.
Data is available from Historian any time later.
Proactive SAFETY Solution: Spray dryers
Spark
Early warning at 0.5 PPM of CO
Instrument Calibration: Back bone of Food Safety
Class A: High Priority- CCP – Critical Control point. Critical in ensuring the food safety.
Temperature measurement used in Sterilization process. Metal Detectors.
Class B : Medium Priority- CP – Control Point. Direct influence on the quality of product, but do not affect food safety.
Weigh Scale Batching System. Pressure and temperature measurement on Evaporators.
Class C : Low Priority- Monitoring instruments other than CCP and CP.
DO and pH meters, Steam Flow measurement, Tank level.
Change Management Process
There are many “unconscious” changes... ones that do not really seem like changes at first glance... that are often missed and sometimes result in avoidable problems
We must first questioning its impact in relation to product safety, people safety and the environment
6 m Egron Output (Kg/Hr)
1500
2000
2500
3000
3500
4000
1999 2000 2001 2002 2003 2004 2005
Current output at ~3850 Kg/HrCurrent output at ~3850 Kg/Hr
Plant throughput
ProductivityKg/man hr
26.027.5
30.9
34.0
37.4
40
3.433.41
3.32
3.18
3.02
2.8500
2.90
3.00
3.10
3.20
3.30
3.40
3.50
2000 2001 2002 2003 2004 200520.0
22.0
24.0
26.0
28.0
30.0
32.0
34.0
36.0
38.0
40.0Mio Man Hours Used
Productivity -- Increasing trends
0
25
50
75
100
125
150
175
200
1997 1998 1999 2000 2001 2002 2003 Tgt 2004
YEARS
SAVI
NG
S IN
R M
IO
-
0.5
1.0
1.5
2.0
2.5
3.0
% O
F C
OP
Savings INR Mio % OF COP
Savings on Cost Of Production
Can we achieve 100% potential of our capabilities and Business ambition without your partnership?
Way forward….
• Consumer decides quality - Food plants ensure consistent quality based on perceived consumer insight.
Automation is integral part of consistent process and product quality
• Food Safety, Compliance, People Safety & Environment are Non-negotiable.
Automation is The Solution for Traceability and Reliability
Integrate People Safety related Standards & norms at design stage
Energy Savings, Waste reduction mindset to integrate in processes
• Standardization of automation systems in today’s rapidly changing technological advancement
• Value Pricing, not the lowest cost will sustain in long termUnderstand Customer’s Processes and key Deliverables
Educate customer with tailor-made training modules
Visit customers proactively: get feedback and improve
Nurture local service support: Global principles but local culture
Passion,Spirit,Work culture Passion,Spirit,Passion,Spirit,Work culture Work culture
Build a high performance culture to unleash 100% potential..
Without our burning out…
Ensure success for customers and it is WIN WIN for both…
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