NESTLE India, Tahliwal Plant's Industrial Performance Department, Project Report MBA

ON THE JOB TRAINING REPORT

A STUDY OF PRACTICES IN INDUSTRIAL PERFORMANCE DEPARTMENT

AT

NESTLE INDIA LIMITED TAHLIWAL

SUBMITTED TO

THE DEPARTMENT OF PROFESSIONAL EDUCATION

GOVT P G COLLEGE UNA IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION (MBA)

TWO YEAR FULL TIME COURSE (2015-2017)

SUBMITTED TO- SUBMITTED BY-

DEPTT OF PROFESSIONAL EDUCATION NAME: ASHUTOSH SHARMA

GOVT PG COLLEGE UNA UNIV R.NO. 43MB5013236

A STUDY OF PRACTICES IN

INDUSTRIAL PERFORMANCE

DEPARTMENT OF NESTLE INDIA

TAHLIWAL PLANT

GOOD FOOD, GOOD LIFE

PREFACE

I, ASHUTOSH SHARMA student of MBA of Govt. College Una H.P. is going to present my

project on NESTLE India’s Tahliwal Factory.

My project provides complete information about my topic" A STUDY ON THE

INDUSTRIAL PERFORMANCE COMPONENTS”

INDUSTRIAL PERFORMANCE (IP) supports in delivering optimal performance to

manufacture products with the prescribed quality at the lowest cost.

In this report I have mentioned the various tools and techniques which are used in

INDUSTRIAL PERFORMANCE to ensure the effectiveness with an effective SWOT

analysis and Internal Factor Evaluation Matrix (IFE) of the Nestle India, Tahliwal Plant

(Himachal Pradesh).

ACKNOWLEDGEMENT

I would like to gratefully acknowledge the contribution of those who played important part

and provided valuable support to me during the course of this project.

I would like to thank those people who helped me in completing my project.

I would like to express gratitude to Mr. JATINDER SINGH RATHORE (Industrial

Performance, Head of the Department). Also, I want to give special thanks to Mrs. TRIVENI

GAUTAM (Industrial Performance Department), for their guidance, support and valuable

suggestions during the period. Without their supervision, project could have not been

completed.

My heartfelt thanks also go to entire INDUSTRIAL PERFORMANE department team for

their assistance and willingness towards reply all my queries.

CERTIFICATE

INDEX

S. NO. TITLE PAGE NO.

1 PREFACE

2 ACKNOWLEDGEMENT

3 CERTIFICATE

4 CHAPTER 1: INTRODUCTION 1

5 CHAPTER 2: RESEARCH METHODOLOGY

6 CHAPTER 3: ON THE JOB TRAINING EXPERIENCE &

DATA ANALYSIS

7 CHAPTER 4: FINDINGS

8 CHAPTER 5: SUGGESTION/CONCLUSION

9 BIBLIOGRAPHY/REFERENCES

CHAPTER 1 INTRODUCTION

COMPANY PROFILE

INTRODUCTION: NESTLE INDIA LIMITED

It was founded in 1867 by HENRI NESTLE. After more than a century-old association with

the country, today, NESTLÉ India has presence across India with 8 manufacturing facilities

and 4 branch offices. NESTLÉ India set up its first manufacturing facility at Moga (Punjab)

in 1961 followed by its manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud

(Karnataka), in 1989; Samalkha (Haryana), in 1993; Ponda and Bicholim (Goa), in 1995 and

1997, respectively; and Pantnagar (Uttarakhand), in 2006. In 2012, Nestlé India set up its 8th

manufacturing facility at Tahliwal (Himachal Pradesh).

The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate the sales

and marketing activities. The NESTLÉ India’s Head Office is located in Gurgaon, Haryana

HEAD OFFICE REGISTERED OFFICE

NESTLÉ INDIA LTD. NESTLÉ INDIA LTD.

NESTLÉ HOUSE, M – 5A, CONNAUGHT CIRCUS,

JACARANDA MARG, 'M' BLOCK, NEW DELHI, 110001

DLF CITY, PHASE II,

GURGAON – 122002 (HARYANA)

COMPANY PROFILE

NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories and a

large number of co-packers, Nestlé India is a vibrant Company that provides consumers in

India with products of global standards and is committed to long-term sustainable growth and

shareholders satisfaction.

The Company insists on honesty, integrity and fairness in all aspects of its business and

expects the same in its relationships. This has earned it the trust and respect of every strata of

society that it comes in contact with and is acknowledged amongst India's 'Most Respected

Companies' and amongst the 'Top Wealth Creators of India'.

NESTLÉ's relationship with India dates back to 1912, when it began trading as The NESTLÉ

Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished

products in the Indian market. Mr Suresh Narayanan is the Chairman and Managing

Director of Nestle India Limited.

After India's independence in 1947, the economic policies of the Indian Government

emphasised the need for local production. NESTLÉ responded to India's aspirations by

forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the

Government wanted NESTLÉ to develop the milk economy.

NESTLÉ has been a partner in India's growth for over a century now and has built a very

special relationship of trust and commitment with the people of India. The Company's

activities in India have facilitated direct and indirect employment and provides livelihood to

about one million people including farmers, suppliers of packaging materials, services and

other goods.

The Company continuously focuses its efforts to better understand the changing lifestyles of

India and anticipate consumer needs in order to provide Taste, Nutrition, Health and

Wellness through its product offerings. The culture of innovation and renovation within the

Company and access to the NESTLÉ Group's proprietary technology/Brands expertise and

the extensive centralized Research and Development facilities gives it a distinct advantage in

these efforts. It helps the Company to create value that can be sustained over the long term by

offering consumers a wide variety of high quality, safe food products at affordable prices.

NESTLÉ India manufactures products of truly international quality under internationally

famous brand names such as MAGGI, MUNCH, NESTCAFE etc.

NESTLE PLANT AT TAHLIWAL, DISTRICT – UNA, HIMACHAL PRADESH:

• Nestlé India set up its 8th manufacturing facility at Tahliwal (Himachal Pradesh).

• In Tahliwal factory Nestlé does production for 3 products :-

1.) Maggi (Noodles)

MAGGI Noodles is one of the largest & most loved food brands that defines the Instant

Noodles category in India by being a part of our way of life. It has been bringing people

together and is the favourite of millions; living in our hearts it has become intertwined

in some of people’s most memorable experiences.

Made out of choicest roasted spices and quality ingredients through a world class

noodles technology, MAGGI Noodles brings to you goodness that you can always trust.

2.) Munch (Chocolate)

NESTLÉ MUNCH is the country’s most loved ‘coated wafer’ product. Available throughout stores across the country, every variant of NESTLÉ MUNCH is a delicious crunchy treat for

fans.

3.) Munch Nuts (chocolate)

Presenting the all-new MUNCH NUTS which has crunchy wafer, delicious peanut creme and roasted peanut bits. A first-of-its-kind product, one bite and You’ll go nuts about it!

• In 2012, Nestlé opened a Rs2.5bn ($45.07m) factory at Tahliwal, Himachal Pradesh

state, for the production of Maggi noodles as well as chocolate products.

• Nestlé Tahliwal factory has 6 major departments. It deals with all factory operations.

1.) Finance

2.) Human Resource (HR)

3.) Industrial Performance (IP)

4.) Supply Chain Management (SCM)

5.) Production Culinary (Noodles)

6.) Production Chocolate ( Munch & Munch Nuts )

7.) Quality Assurance (QA)

VISION:

Nestlé's vision is "to be a leading, competitive, nutrition, health and wellness company

delivering improved shareholder value by being a preferred corporate citizen, preferred

employer, and preferred supplier selling preferred products.

MISSION:

Nestle’s mission of 'Good Food, Good Life' is to provide consumers with the best tasting,

most nutritious choices in a wide range of food and beverage categories and eating occasions,

from morning to night."

These statements reflect the company's long-term business strategy. In keeping with its

claimed commitment to nutrition, Nestlé has invested in scientific research on nutritional

aspects of the kinds of products it sells. For example, it has studied the effects of chocolate on

metabolism and gut bacteria. The Economist describes this as a potentially risky strategy; by

investing in research and development, the company is "playing a long game," in contrast to

the short-term strategies of some of its competitors.

Nestlé has also made an effort to practice "corporate citizenship." It has been involved in a

number of efforts to promote good agricultural and environmental practices, such as the

World Cocoa Foundation, which is "committed to creating a sustainable cocoa economy by

putting farmers first - promoting agricultural and environmental stewardship, and

strengthening development in cocoa-growing communities."

THIS PROJECT REPORT IS BASED ON THE JOB TRAINING IN THE DEPARTMENT

OF INDUSTRIAL PERFORMANCE OF NESTLE INDIA LIMITED, TAHLIWAL, UNA

(H.P)

ABOUT THE DEPARTMENT OF INDUSTRIAL

PERFORMANCE IN NESTLE PLANT, TAHLIWAL

(HIMACHAL PREADESH)

Industrial Performance and Nestlé Continuous Excellence (NCE) supports in delivering

optimal performance to manufacture products with the prescribed quality at the lowest cost

and adherence to manufacturing instructions, quality standards and budgeted costs. The role

will make use of best practices within the company in terms of cost, quality and service.

Nestlé Continuous Excellence is our sophisticated business model around continuous

improvement projects that have extraordinary impact on our business becoming a successful

Lean Enterprise. This global initiative inspires everyone to understand and contribute to what

consumers and customers value most. It's our Total Performance Management (TPM) and our

way of delighting consumers, delivering competitive advantage and excelling in compliance.

It targets zero waste, one team and 100% engagement.

As a foundation to the model, we developed and honour basic management practices to help

align on key priorities, track performance and deliver consistent results. As a result, we've

found our teams to be more empowered, engaged and thinking sustainably – always. NCE

ensures that the external world, our customers and consumers, are perpetually at the forefront

of our agenda in every single aspect of our business.

What's unique about NCE? It applies to more than just our manufacturing practices. It

translates into Human Resources, Finance, Marketing, Engineering and all other functions

behind the Nestlé name. Pragmatic and business-oriented tools and technologies are provided

to each of our teams across the business to maximize efficiencies and drive significant

category growth.

Our continuous excellence mindset tells us that our work to improve is never done. We must

dare to make every day better. We must lean into the opportunities, challenges and

advantages we encounter to continue doing what's never been done before in pet care.

Working together

CHAPTER 2RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

The study of conducting research is Research Methodology. Research: The word research is composed of two syllables “Re” and “Search”. “Re” is the prefix meaning ‘Again or over again or a new’ and “Search” is the latter meaning ‘to examine closely and carefully’ or ‘to test and try’.

Together they form, a careful, systematic, patient study and investigation in some field of knowledge undertaken to establish principles / policies.

Research can also be defined as

1. Search for knowledge

2. Systematic and scientific search for getting relevant answers on any specific topic.

3. Scientific enquiry into a subject.

4. Research is a movement from the unknown to the known.

When we talk of Research Methodology, we not only talk of research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique so that research results are capable of being evaluated either by the researcher or others.

In Research Methodology, researcher always tries to search the given question systematically in our own way and find out all the answers till conclusion. If research does not work systematically on problem, there would be less possibility to find out the final result. For finding or exploring research questions, a researcher faces lot of problems that can be effectively resolved with using correct research methodology

IN THIS REPORT THESE TECHNIQUES OF RESEARCH METHODOLOGY ARE USED:

SOURCE OF DATA COLLECTION

Secondary Data

TYPE OF RESEARCH

Exploratory Research

2.1 NEED AND SIGNIFICANCE OF THE STUDY

Quality control is a process within an organization designed to ensure a set level of quality

for the products or services offered by a company.  This control includes the actions

necessary to verify and control the quality output of products and services.  The overall goal

of quality control includes meeting the customer’s requirements, product satisfaction, fiscally

sound, and dependable output.  Most companies provide a service or a product.  The control

is important to determine that the output being provided is of overall top quality. Quality is

important to companies for liability purposes, name recognition or branding, and maintaining

a position against the competition in the marketplace.

2.2 OBJECTIVES OF THE STUDY

1. To study the Industrial Performance Indicators in Nestle Plant, Tahliwal.

2. To study the Nestlé Continuous Excellence (NCE) i.e. Performance Management System

at Nestle Plant, Tahliwal

3. To conduct a SWOT analysis of Nestle Plant, Tahliwal.

4. To make a general hypothetical Internal Factor Evaluation Matrix (IFE) of Nestle India

Limited.

2.3 METHOD OF DATA COLLECTION:

Research design of this study is basically exploratory in nature and will employ inputs from

reports and statistics of agencies of good standing.

2.4 SOURCES OF DATA:

For the present study, secondary source of data is used for data analysis. Secondary sources

like various reports and documents provided by Nestle India Limited, Tahliwal.

CHAPTER 3 ON THE JOB TRAINING EXPERIENCE

&

DATA ANALYSIS

1. INDUSTRIAL PERFORMANCE:

DEFINITION: Industrial performance can be defined in terms of numerous criteria to be

synthesized for global control purposes, many of them being of a complex nature, i.e. not

related to one elementary physical measure. Industrial Performance is related to number of

KPIs. Key Performance Indicators (KPI) are a set of quantifiable measures that a company

uses to scale its performance over time. These metrics are used to determine a company's

progress in achieving its strategic and operational goals, and also to compare a company's

finances and performance against other businesses within its industry.

PURPOSE: People credited with this unit standard are able to: follow the approved routine

maintenance schedule for a food processing machine; inspect and maintain the various

systems of the machine and associated support equipment; ensure safety devices are working;

care for gauges and instruments available in the workplace; follow a preventive maintenance

programme; and follow procedures for disposal of waste material.

JOB DESCRIPTION OF AN INDUSTRIAL PERFORMANCE SPECIALIST IN

NESTLE (ROLES AND RESPONSIBILITIES)

1. Provide methods and tools for improvement of practices and optimizing factory

performance.

2. Assistance for factory, line, machine layout and design and optimize planning by

providing proposals to determine least cost production scenarios.

3. Promote the application of improvement initiatives and best practices in the markets and

provide training as required and exchange of know-how to achieve improved business

performance.

4. Co-ordinate the implementation of Continuous Improvement and Conduct Rapid

Improvement Projects and provide other focused improvement support.

5. Ensure Standard, performance & productivity measurements are applied according to

Nestlé guidelines (GIN 23) and Ensure establishment of key performance indicators and

assist that objectives are linked to improvement initiatives.

6. Organize & Review (DOM) with Production, Engineering, QA, and Application Group to

ensure appropriate use of information systems in the manufacturing environment to obtain

maximum benefit through.

7. Co-ordination of improvements and updates of factory system applications and providing

user training and assistance to factories

Practices of Industrial Performance (IP) in Nestle:

A. Standard Routine

B. Breakdown Analysis (BDA)

C. Go See Think Do (GSTD)

D. Daily Operations Review (DOR)

E. Weekly Operations Review (WOR)

F. Monthly Operations Review (MOR)

A. STANDARD ROUTINE

For Standard Routine, SOP is followed. Standard Operating Procedure (SOP) is a set of

written instructions that document a routine or repetitive activity followed by an organization.

Well-written SOPs should first briefly describe the purpose of the work or process, including

any regulatory information or standards that are appropriate to the SOP process, and the

scope to indicate what is covered. The development and use of SOPs are an integral part of a

successful quality system as it provides individuals with the information to perform a job

properly, and facilitates consistency in the quality and integrity of a product or end-result e.g.

possible interferences, required equipment, personnel qualifications, and safety

considerations. The development and use of SOPs minimizes variation and promotes quality

through consistent implementation of a process or procedure within the organization, even if

there are temporary or permanent personnel changes.

B. BREAKDOWN ANALYSIS (BDA)

In every organisation continuous production is required to meet the demand of the market, so

to make the continuous production machines plays very important role. Breakdown in a

machine will decrease the production. So the BREAKDOWN ANALYSIS is done to find the

accurate reason of the breakdown during production process.

Procedure of BREAKDOWN ANALYSIS

Analysis Date

Breakdown Description

Machine ( Where breakdown happened )

Shift Number ( In which shift breakdown was happened )

Responsible person or cause

Root cause

Status ( what action was taken against the problem )

C. GO SEE THINK DO (GSTD)

GSTD is a Problem Solving method used to solve day-to-day issues.  It is splitted into 3

parts:

1. GO-SEE  

2. THINK

3. DO

GO-SEE : In this first part, go to place where the project is based with a group of

people who have experience with problem related.

THINK : After defined what is the current problem, it is analyzed that which of the

actions listed are actually feasible and which of them are the ones that are the most

cost-benefit.

DO : In this step working on the action is started to solve the problem.

D. DAILY OPERATIONS REVIEW (DOR)

When : It is done once in the morning and in the evening.

Length: 5-10 minutes.

Purpose: To discuss tasks of the day.

Tasks:

Choose project/work according to priorities.

Assign it to appropriate persons.

Move it to today, upcoming or later.

In the evening it is reviewed that what has done today and what has not done, does it there or

move.

E. WEEKLY OPERATIONS REVIEW (WOR)

When: At the beginning of each week, usually Monday.

Length: 10-20 minutes.

Purpose: Re-prioritizing projects and clearing all inbox in preparation for the week.

Tasks:

Go through every project.

Setting the priorities.

Setting the target for the week.

Discussion on strategies.

Go through the later tasks, does anything need to shift to upcoming?

F. MONTHLY OPERATIONS REVIEW (MOR)

When: Once in the month ( first week of the month or depending on time and style)

Length: 30-60 minutes.

Purpose: Balancing attention and effort with roles and priorities, broader

prioritization picture across circles and roles, and clarifying working relationships

and processes

Tasks:

Discussion on performance of last month.

Focusing on new opportunities.

Setting of new target and strategies.

2. NESTLÉ CONTINUOUS EXCELLENCE (NCE):

CONTINUOUS PROCESS AND QUALITY IMPROVEMENT

FOUNDATIONS OF NCE

1. Compliance 2. Leadership Development3. Goal Alignment

PILLARS OF NCE

1. Autonomous Maintenance2. Planned Maintenance3. Focused Improvement4. Education & training 5. Safety, Health & Entertainment6. Quality7. Early Management8. Lean Design9. Lean Office10. Lean Value Stream

EXPECTED OUTCOME OF NCE

1. Zero Waste2. One Team3. 100% Engagement

5 WHY ANALYSIS: The 5 why is a technique used in the Analyze phase of the Six Sigma

DMAIC (Define, Measure, Analyze, Improve, and Control) methodology.

• 5 why analysis is used to go deeper to find and verify the root cause.

• In 5 why analysis the answer of 1st why will become the question of 2nd why and so

on.

Figure 1: Six Sigma – DMAIC Process.

CONTINUOUS PROCESS IMPROVEMENT: It is the task of identifying, analyzing, and

improving upon existing work methods or processes. This is done to reduce waste and

achieve a higher level of optimization or quality. It usually involves a systematic problem

solving approach such as lean, six sigma, Kaizen, and others. Different approaches

bring different methods, tools, and perspectives. None of them are better than another they

are simply different schools of thought.

CONTINUOUS QUALITY IMPROVEMENT An approach to quality management that

builds upon traditional quality assurance methods by emphasizing the organization and

systems: focuses on “process” rather than the individual; recognizes both internal and

external “customers”; promotes the need for objective data to analyze and improve

processes.  Source:  Graham, N.O. Quality in Health Care (1995).

Figure: 2

CQI is a management philosophy which contends that most things can be improved.   This

philosophy does not subscribe to the theory that “if it ain’t broke, doesn’t fix it.” It is a set

of concepts, principles and methods developed from quality principles proposed by early

quality gurus, W. Edwards Deming, Joseph Juran, Philip Crosby, Brian Joiner, and others.

These CQI principles, tools, and techniques have been found to work effectively in

manufacturing industries.  They have recently been found to also effectively work in

human service industries, including healthcare.

At the core of CQI is serial experimentation (the scientific method) applied to everyday

work to meet the needs of those we serve and improve the services we offer.

CORE CONCEPTS OF CONTINUOUS QUALITY IMPROVEMENT

Quality is defined as meeting and/or exceeding the expectations of our customers.

Success is achieved through meeting the needs of those we serve.

Most problems are found in processes, not in people.  CQI does not seek to blame, but

rather to improve processes.

Unintended variation in processes can lead to unwanted variation in outcomes, and

therefore we seek to reduce or eliminate unwanted variation.

It is possible to achieve continual improvement through small, incremental changes

using the scientific method.

Continuous improvement is most effective when it becomes a natural part of the way

everyday work is done.

COMMONLY USED CQI TOOLS AND METHODS

(Source: Brassard, M. and Ritter, D. The Memory Jogger, 1994)

Brainstorming -- Creating bigger and better ideas

To generate a high volume of ideas on any topic by creating a process that is free of

criticism and judgment.

Nominal Group Technique (NGT) –Ranking for consensus

To allow a team to quickly come to consensus on the importance of issues, problems,

or solutions.

Multivoting – Rating for consensus

To allow a team to quickly come to consensus on the importance of issues, problems,

or solutions.

Cause & Effect/Fishbone Diagram - Find and cure causes, NOT symptoms

To identify, explore, and graphically display, in increasing detail, all of the possible

causes related to a problem or condition to discover its cause(s).

Control Charts - Recognizing sources of variation

To monitor, control, and improve process performance over time by studying

variation and its source.

Flowchart - Picturing the process

To identify the actual flow or sequence of events in a process that any product or

service follows.

Histogram - Process centering, spread, and shape

To summarize data from a process that has been collected over a period of time, and

graphically present its frequency distribution in bar form.

Pareto Chart - Focus on key problems

To focus efforts on the problems that offer the greatest potential for improvement by

showing their relative frequency or size in a descending bar graph.Pareto principle:

20% of the sources cause 80% of any problem.

Run (Trend) Chart - Tracking trends

To study observed data (a performance measure of a process) for trends and patterns

over a specified period of time.

Scatter Diagram - Measuring relationships between variables

To study and identify the possible relationship between the changes observed in two

different sets of variables.

Storyboard

A communication vehicle to display improvement efforts to alert others of changes

being tested or carried out.

Conducting Effective Meetings: 7-step meeting process

At Nestle India Tahliwal Plant FISHBONE ANALYSIS OR CAUSE & EFFECT

ANALYSIS Is used for CONTINUOUS QUALITY IMPROVEMENT

DEFINITION: The fishbone diagram or Ishikawa diagram as named after its creator Kaoru

Ishikawa is a way to represent cause and effect. The effect forming the head of the fishbone

and the potential causes forming the skeleton behind. It is a structured way to represent the

results of a brainstorm in specific categories that contribute to problems, Man, Method,

Machine, Materials, Metrics, and Mother Nature being the usual areas that the ideas are

broken down into. A fishbone diagram, also called a cause and effect diagram is a

visualization tool for categorizing the potential causes of a problem in order to identify its

root causes.

Example: Fishbone diagram for a Food Industry

These are product design and quality defect prevention tools used to identify potential factors

causing an overall effect. Each cause or reason for imperfection is a source of variation.

Causes are usually grouped into major categories to identify these sources of variation. The

categories typically include: people, methods, equipment, materials, measurements, and

environment

3. WHAT IS SWOT ANALYSIS ?

DEFINITION: SWOT analysis is a process that identifies the strengths, weaknesses,

opportunities and threats of an organization. Specifically, SWOT is a basic, analytical

framework that assesses what an organization can and cannot do, as well as its potential

opportunities and threats. A SWOT analysis takes information from an environmental

analysis and separates it into internal strengths and weaknesses, as well as its external

opportunities and threats.

A SWOT analysis determines what assists the firm in accomplishing its objectives, and what

obstacles must be overcome or minimized to achieve desired results. When using SWOT

analysis, an organization needs to be realistic about assessing its strengths and weaknesses.

Analysis needs to examine where the organization is today, and where it may be positioned in

the future.

SWOT analysis needs to be kept specific by avoiding gray areas and analysing in relation to

the competition. For example, how do the organization’s products and services compare to

the competitions? SWOT analysis should be short and simple, and should avoid complexity

and over-analysis, as much of the information is subjective. Thus, use it as a guide and not a

prescription. 

Strengths and Weaknesses

Strengths describe what an organization excels at, allowing decisions on how to gain a

competitive advantage. For example, a hedge fund may have developed a proprietary trading

strategy that returns superior results in comparison to its competitors. It must then decide how

to use those superior results to attract new investor capital.

Weaknesses stop an organization from performing at its optimum level. They have the

potential to reduce progress or to give a competitive edge to the competition. An organization

needs to minimize weaknesses and analyse how they can be improved. An inadequate supply

network or lack of capital is example of weaknesses.

Opportunities and Threats

Opportunities refer to favourable external factors that an organization can use it its advantage.

If utilized effectively, opportunities have the potential to create a competitive advantage. For

example, a car manufacturer may be able to export its cars into a new market if tariffs in a

country are substantially reduced. This is likely to increase sales and market share, which

may create a competitive advantage in terms of scale.

Threats refer to factors that have the potential to negatively impact an organization. For

example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the

yield of a wheat crop. Market share is likely to be lost if a competitor has not diversified

operations in terms of location. It is prudent for an organization to have a comprehensive

contingency plan that addresses possible risks and specifies how to deal with them.

SWOT ANALYSIS OF NESTLE PLANT, TAHLIWAL (HIMACHAL PRADESH):

Thus, SWOT analysis of Nestle Plant, Tahliwal reflects that Nestle has high brand value and

strong financial base. Overcoming its weaknesses as nowadays, ill effects of Maggi has been

highlighted; company has to overcome with strong quality control and positive advertisement

as Maggi is the most popular product of Nestle in North India. Company can go for tie ups

and it can launch more products by carrying out proper Research and Development in this

area.

4. INTERNAL FACTOR EVALUATION MATRIX

IFE (Internal factor evaluation) matrix is one of the best strategic tool to perform internal

audit of any firm. IFE is use for internal analysis of different functional areas of business

such as finance, marketing, IT, operations, accounts, Human Resources and others depend

upon the nature of business and its size. Before going into further details, there are some

important terms in IFE matrix which should be known to the individual who shall be using

this tool of internal analysis of any Company or Organization. The explanation of each term

would be clearly explained in order to make it easier to understand the concept for when you

further go into details.

Following are the important components of IFE Matrix:

INTERNAL FACTORS

Internal factors are the outcome of detailed internal audit of a firm Obviously, every company

have some weak and strong points, therefor the internal factors are divided into two

categories namely strengths and weakness.

Strengths

Strengths are the strong areas or attribute of the company, which are used to overcome

weakness and capitalize to take advantage of the external opportunities available in the

industry. The strengths could be tangible or intangible; such as brand image, financial

position, income, human resource.

Weaknesses

Weaknesses are the risky areas which needs to be addressed on priority to minimize its

impact. The competitors always searching for the loop holes in your company and put their

best effort to capitalize on the identified weaknesses.

DIFFERENTIATION OF STRENGTH AND WEAKNESS IN IFE MATRIX

The strengths and weaknesses are organized in IFE matrix in different portions mean all

strengths are listed first under internal factors and then comes the internal weakness. In case

if all the factors are listed altogether then the rating will help you out to identify internal

strength and weakness.

RATING

In IFE, Rating is the way out to differentiate internal strengths and weakness. Internal

weakness is further divided in two categories namely minor weakness and major weakness

same goes of the strengths (minor strength and major strength)

There are some important points related to rating in IFE matrix.

Rating is applied to each factor.

Major weakness is represented by 1.0

Minor weakness is represented by 2.0

Minor strength represented by 3.0

Major Strength represented by 4.0

Major weakness needs company attention to change into minor weakness then strength and

finally major strength. As compared to major strength minor weakness need little efforts of

the company to change it into strength. The range of rating start from minimum 1.0 which is

worst and maximum 4.0 which is the best factor of the company.

WEIGHT

Weight attribute in IFE matrix indicates the relative importance of factor to being successful

in the firm’s industry. The weight range from 0.0 means not important and 1.0 means

important, sum of all assigned weight to factors must be equal to 1.0 otherwise the

calculation would not be considered correct.

WEIGHTED SCORE

Weighted score value is the result achieved after multiplying each factor rating with the

weight.

TOTAL WEIGHTED SCORE

The sum of all weighted score is equal to the total weighted score, final value of total

weighted score should be between range 1.0 (low) to 4.0(high). The average weighted score

for IFE matrix is 2.5 any company total weighted score fall below 2.5 consider as weak. The

company total weighted score higher than 2.5 is consider as strong in position.

STEPS TO DEVELOP IFE MATRIX

1. List key internal factors as identified in the internal audit process. Use a total of from ten to

twenty internal factors, including both strengths and weaknesses. List strengths first and then

weaknesses. Be as specific as possible, using percentages, ratios, and comparative numbers.

2. Assign a weight that ranges from 0.0 (not important) to 1.0 (all important) to each factor.

The weight assigned to a given factor indicates the relative importance of the factor to being

successful in the firm’s industry. Regardless of whether a key factor is an internal strength or

weakness, factors considered to have the greatest effect on organizational performance should

be assigned the highest weights. The sum of all weights must equal 1.0.

3. Assign a I to 4 rating to each factor to indicate whether that factor represents a major

weakness (rating = 1), a minor weakness (rating = 2), a minor strength (rating = 3), or a major

strength (rating = 4). Note that strengths must receive a 4 or 3 rating and weaknesses must

receive a 1 or 2 rating. Ratings are thus company based, whereas the weights in Step 2 are

industry based.

4. Multiply each factor’s weight by its rating to determine a weighted score for each variable.

5. Sum the weighted scores for each variable to determine the total weighted score for the

organization.

EXAMPLES OF NESTLE INTERNAL FACTORS

There are few examples of internal factors of the company.

Strengths

Strong marketing and promotion

Best product quality

Strong Financial condition

High Market Share

High value assets

Weakness

High cost operations

Manufacturing cost is high

Expensive products

Negative publicity

WHAT IS THE DIFFERENCE BETWEEN IFE AND EFE?

External factor evaluation matrix considers external environment for evaluation by

considering external opportunities and threats whereas IFE is the strategic tool to identify the

internal factors for internal audit.

NESTLE IFE MATRIX

KEY INTERNAL FACTORS WEIGHT RATING WEIGHTD

SCORE

WEAKNESSES

Negative Publicity 0.15 1.0 0.15

High Cost Operations 0.10 1.0 0.10

High Manufacturing Cost 0.08 2.0 0.16

Expensive Products 0.06 2.0 0.12

STRENGTHS

High Market Share 0.06 3.0 0.18

Best Product Quality 0.08 3.0 0.24

Strong Management 0.12 4.0 0.48

Strong Financial Condition 0.15 4.0 0.60

Strong Marketing & Promotion 0.20 4.0 0.80

TOTAL 1.00 2.83

NESTLE IFE Matrix

INFERENCE: Total weighted score below 2.5 indicates internally week business and total

weighted score above 2.5 indicates internally strong position.

CHAPTER 4FINDINGS

FINDINGS

Nestle India Limited build trust by offering products and services that match consumer

expectation and preference.

It complies with all internal and external food safety, regulatory and quality requirements.

It has gained a zero-defect, no-waste & 100% engagement attitude by everyone in the

company.

It guarantees food safety and full compliance by respecting the policies, principles and

standards with full transparency,

The company ensures preference and consistency to delight consumers and customers by

valuing what they value and by offering products, systems and services that always meet or

exceed their expectations,

The company strives for zero defects and no waste by constantly looking for opportunities

to apply our continuous improvement approach to deliver competitive advantage.

The company follows Continual Improvement Management Cycle to ensure an effective

and efficient management of Quality processes, to measure performance, and drive the

enhancement of our Quality culture.

CHAPTER 5SUGGESTION/CONCLUSION

SUGGESTION/CONCLUSION

During my training session, I have experienced that nestle never compromise with the

quality of the product, and it makes Nestle different from their competitors. Nestle serves

international quality products with international standards.

Nestle always ensure the safety of their employees as their priority.

Nestle also provides food and accommodation to their employees.

Nestle organise many cultural and sports activities to their employees during lunch break

to motivate them.

Industrial Performance department helps to maintain that international level quality and

standards.

Industrial Performance department ensures that whether all the standards which are given

by govt. or company are being followed.

Industrial Performance department measure the performance of the company on Daily,

Weekly and Monthly basis.

Now at the end I would like to conclude that Industrial Performance department is very

essential for the growth of the organisation. It helps to maintain the standards in budgeted

cost.

BIBLIOGRAPHY

REFERENCES

BIBLIOGRAPHY/REFERENCES

Nestle India

https://www.nestle.in

https://www.nestle.in/aboutus/websites-social-media

https://www.nestle.in/brands/pdca

https://www.nestle.in/brands/chocolatesandconfectionery

http://www.nestle.com/aboutus/quality-and-safety

Wikipedia

https://en.wikipedia.org/wiki/Nestl%C3%A9

Prezihttps://prezi.com/j3v1dkjlxprc/application-of-total-quality-management-at-nestle/