Production and Operations of Maggi Noodles

Mr. Toh Yew Soon

Abhilash Eranna, Gautam Jain and Sylvia Christine

POM Assignment

Mr. Toh Yew Soon

Nestle Maggi

[pic 1]

INTRODUCTION TO MAGGI

Maggi an international brand of seasonings, instant soups, and noodles that originated in Switzerland. It was acquired by Nestlé in 1947.

The company originally started in Switzerland in 1885, when Julius Maggie took over his father's mill. He quickly became a pioneer of industrial food production, aiming to improve the nutritional intake of worker families. Maggi was the first to bring protein-rich legume meals to the market, and followed up with a ready-made soup based on legume meals in 1886. In 1897, Julius Maggie founded the company Maggi GmbH in the Singen, Germany where it is still based today.

 In 1947, following several changes in ownership and corporate structure, Maggi's holding company merged with the Nestlé Company to form Nestle- Alimentana S.A, currently known in its francophone HOMEBASE as Nestlé S.A

Maggi products help bring out the best in every meal. Quick and easy solutions - like bouillons, soups, seasonings and sauces - to aid cooking and add flavour. Maggi brand – the flavour that fresh food loves, helping you make nutritious, delicious meals.

his marked the beginning of the Maggi brand and its convenient products. Known for his nutrition-oriented approach, the Swiss Government asked Julius Maggi to create a product that would be quick to prepare yet nutritious as more and more women were working outside the home. The results were a success — two instant pea soups and an instant bean soup.

In 1947 Nestlé acquired the Maggi brand. Today the tradition continues around the world. Whether it’s Maggi bouillons, soups, seasonings, noodles or sauces, consumers have come to know and trust the Maggi brand for its high quality, convenience and nutrition.

You’ll notice many of Maggi products are dehydrated, which is a process of preserving food that has been used for thousands of years. Fresh ingredients are carefully selected and the dehydrated, to remove the water, which helps to stop the growth of nasty bacteria. The dehydrated ingredients are then skilfully blended together to give a delicious balance of flavour that helps to bring beaming smiles to every Maggi meal time. Using this method of preservation means that we don’t need to add any chemicals or preservation to keep their recipe so tasty.

PRODUCTS OFFERED BY MAGGI

The quality of Nestlé's brands has given the organization an unparalleled position on a

worldwide premise over an extensive variety of item classifications. Six overall corporate

brands, Nestlé, Nescafé, Nestea, Maggi, Buitoni and Friskies contribute around 70% of

the gathering's aggregate deals, with the Nestlé brand itself contributing 40%. These brands

are the main decision of buyers around the globe, whether as stand alone brands or

in blend with item brands, for example, KitKat and LC1.

Nestlé likewise possesses territorial and national brands with which shoppers have a nearby

also, regularly longstanding commonality. These brands empower customers to express their

distinction and to regard their customs whilst as yet getting a charge out of the nature of a Nestlé

item and, in that capacity, are key components of the Nestlé portfolio.

Nestlé's brands and items are the center of ceaseless development and redesign so

that they will be significant and speaking to today's and tomorrow's buyers. As

vital as guaranteeing that our brands meet and beat our purchasers' desires is

guaranteeing that they are accessible at whatever point, wherever and however our customers

need them.

An expanded scope of soups, stocks, sauces and culinary arrangements, fundamentally

under the Maggi brand, is adjusted to neighbourhood tastes, formulas and fixings in

every nation. Maggi moment noodles are sold in the Far East-Pacific territory, and in addition

Europe, Africa and Latin America. Nestlé's solidified arranged dishes are promoted

mostly under two brands, Stouffer's in the United States and Maggi in different locales

of the world. Nestlé is available in Italian food with Buitoni pastas and sauces, both

refrigerated and retire stable. The Buitoni extend likewise incorporates a wide decision of solidified

pizzas and formula dishes.

Nestle holds 49% of Loreal share as well.

[pic 2]

[pic 3]

LOCATION OF FACTORY AND THE REASONS FOR WHY IT IS LOCATED THERE

[pic 4]

(Above: Choladi Factory)

The Maggi production factories are spread across India.
However, the factory chosen for study is the one at Choladi, Tamil Nadu. The Choladi factory boasts very high productivity combined with lower costs relative to the other factories in the country. A few reasons why this place was chosen could be:
- The land and labour prices are cheap. The Choladi region is cheaper than other parts of the state due to arid nature. Agriculture is not very economical here so the market prices of land is much lower than other parts.
- Proximity to Chennai: Choladi factory is about 3 hours away from Chennai, the capital of the state. Chennai has a very large port and also an international airport. Nestle Maggi uses shipping as a means of export to its South-East Asian customers so this is a huge plus point.
- Cheap labour: The tamil labour is cheap due to high population and low levels of education in the Choladi region.
- Good connectivity: Choladi-Chennai has a state highway with well-maintained roads. This reduces the risk of transportation mishaps and transportation delays.
- The factory is adjacent to the highway as to reduce movement and time.

All these factors are the reason could be the reasons why Nestle chose Choladi as the factory site.

LAYOUT CONSIDERATIONS

The Maggi production layout, being a product layout, has the following considerations:

The movement of the work-in-process is almost in a straight-line at Choladi. The machinery are arranged in such a way so that they can save time and costs (least movement). There is sufficient space around the machinery so that maintenance of the machinery can be done easily. The operations are temperature sensitive so the layout allows for proper ventilation and also control of ventilation during the steaming and rolling process. There are almost no bottlenecks at this layout because of the number of machines at stages where there is bottleneck potential. For example, the one phase there could be possible bottlenecks is the packaging phase where the noodle blocks are filled into the packages. To address this, the Choladi factory has 3 extra lines in the conveyor belt to ease out the pressure of the incoming work-in-progress.
Lastly, the layout in their dispatch department is note-worthy. They have implemented a well-thought out sequence of loading and dispatching which also gets rid of the bottleneck possibility. These considerations have been the strength of the Choladi factory and are crucial in its success.