Manufacturing execution process at Nestle

The manufacturing execution process critically binds the entire organization to indicate the order levels which is directly associated with the demand forecast model and prediction analysis. The deep sense of collaboration would ensure better handling of the order request and ensuring the manufacturing process to flow smooth with the machine allocation for timely meeting up with the order. The machine allocation process is quite efficiently handled at Nestle as they maintain buffer machinery for handling any process at an appropriate pace.

The capacity requirements and capacity planning are taken care well. At this stage in production you still have the opportunity of having several parallel planned orders per period (for example, per shift), as the sequence of the planned orders has not yet been fixed. It is therefore possible for partial capacity overloads to arise within a period, even though on average no overloads are recognized. This process effectively places Nestle at a better position than other manufacturing companies with non SAP systems.

The available capacity, capacity requirement and capacity load are displayed as percentages per period in the planning table for each production line. The capacity dates are redefined for every change made. The work scheduler thereby has an overview of the capacity status of his production lines and can react quickly to capacity overloads and under loads in order to produce equal capacity load utilization per period.

Nestle hires the best and its process of acquisition, enhancing and retention is dealt very largely. The resource management group for Nestle is very strong and handles all the allocation process of the hires, both fresh and lateral to the various departments after the training department clears them. So the liaison among the human resources (HR), training and resource management group (RMG) is quite strong. The human capital management function within the SAP module identifies the requirement for a particular talent arising from the project requirements and customers demands. The specific demands are fed in the system and are passed to the RMG for their filling.

The RMG checks their system in place to work out the various specific needs of the organization and handles the resource allocation process. In case the human resource requirement is not met, RMG communicates with the HR department for hiring either a lateral or a fresh talent for the allocation. The primary advantage would be to ensure that the HR module of SAP system in place would ensure better availability of data and swift notification of the same to the aligned department for their entire business operation and fulfill the requirements.

The scope of the human resource planning module of SAP at Nestle is very large. It handles the compensation functions for laborers at their manufacturing concern and salaries for all other full time and contractual employees. The salary, benefits, facilities and other emoluments require observing the company policy, government policies regarding taxes and other facilities are incorporated within the system on the whole. Furthermore the payment benefits, employee insurances, health benefits, payroll processing and management, taxes and personnel management are all incorporated in the SAP HR module of Nestle.

They also have implemented country specific salary calculations in various currencies and ensure very efficient handling of the HR module. The training and the RMG module are also integrated along with the SAP HR system to train the recruits and finally their allocation and handling process.