Process Improvement - Nestlé and Lean Production

Nestlé and Lean Production

Morgan Burks

MG 395

University of North Alabama  

Abstract

Nestle Waters is concerned that their business is not sustainable. Nestlé Waters’ business is taking the advantage of lean production to make their company more sustainable. Using the lean production approach they are eliminating waste and making the company more efficient. Lean production focuses on minimizing the resources used in the production process. Lean production offers many benefits in the social, financial, and environmental aspects of the company.

The Problem

        Nestlé is the world’s most popular brand for nutrition and wellness. The company manufactures over 70 brands in the United Kingdom, also in the United States. Since the 1800s, Nestlé has taken pride in safe, high quality, produced products. The most important aspect of Nestlé is sustainability.  To have a sustainable business, they must limit the negative impact from economic, social, and environmental impacts on the business (Achieving, 2014). The Nestlé Waters business is continuing to grow. The growing company is concerned that their company will not be sustainable. The UK bottling factory had no space to expand and meet the demand. The site also had problems in the production process.

Lean Production

        Lean production was developed in Japan and aims to reduce waste. Waste in a business consists of the time, money, and quantity of resources used in the production of products. Reducing these items will increase the productivity and efficiency of the business and make the company sustainable (Sperber). Lean production focuses on minimizing resources used in the production process. Nestlé’s production should aim to take the most efficient space, machinery, labor, and materials and use them wisely in the shortest period of time (Achieving, 2014). One example Nestlé can do in lean production is reduce product defects. This will reduce costs by the savings in the inputs used to make the goods.

Just-In-Time

        Just-in-time is another approach to attain sustainability and to reduce waste. It focuses on the timing during the production process. Storing items and waiting on materials can increase costs and also create some waste (Achieving, 2014). For Nestlé, JIT can improve the overall efficiency of the production line. This approach can also lead to a better return on investment, therefore making Nestlé more sustainable.

Benefits

Nestlé Waters uses lean production to bring benefits to efficiency and quality to the business. It also helps create social and environmental benefits. Some social benefits are bringing the community together on projects including on-the-go recycling programs. Also, bringing educational programs into schools teaching the students about waste and how a water supply is vital to a community.