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NCE Nestle

Nestlé introduced the Nestlé Continuous Excellence (NCE) initiative in 2008 to enhance operational performance and profitability by standardizing Lean, TPM, and Six Sigma methodologies across its factories. The initiative has led to significant improvements in safety, quality, and employee engagement, resulting in over 1.5B CHF in additional savings by 2010. NCE's success is attributed to leadership engagement, employee buy-in, and a structured approach to continuous improvement, with plans for further growth and digitalization by 2025.

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0% found this document useful (0 votes)
146 views12 pages

NCE Nestle

Nestlé introduced the Nestlé Continuous Excellence (NCE) initiative in 2008 to enhance operational performance and profitability by standardizing Lean, TPM, and Six Sigma methodologies across its factories. The initiative has led to significant improvements in safety, quality, and employee engagement, resulting in over 1.5B CHF in additional savings by 2010. NCE's success is attributed to leadership engagement, employee buy-in, and a structured approach to continuous improvement, with plans for further growth and digitalization by 2025.

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🚀Episode #2

NESTLE
CONTINUOUS
EXCELLENCE

LEAN the Nestlé way

SWIPE
In memory of José Lopez

Five years after his death


One of the greatest leaders I have
ever worked for
01/09

A New Challenge
In 2008, Nestlé had completed the
GLOBE transformation, harmonizing
processes & IT systems across all markets.

✅ 1B CHF savings per year


❌ But profitability was still lagging behind
competitors in the Food & Beverage
industry.

❌ Operational performance varied


significantly across the 460 factories.

KEEP SWIPING
02/09

The Insight
José Lopez, EVP Operations, observed that
Nestlé factories around the world had 🌍
independently implemented Lean, TPM &
Continuous Improvement practices.

💡 These initiatives delivered outstanding


results in safety, quality, cost efficiency, and
employee morale.

💡 What if Nestlé scaled these best practices


globally?

KEEP SWIPING
03/09

The Birth of NCE


2008 Nestlé Continuous Excellence (NCE) was
introduced as a global initiative:

🔹 A structured, behavior-driven approach to


operational excellence.
🔹 Rooted in best-in-class methodologies:
TPM, Lean, Six Sigma & Bold Leadership
🔹 Aimed at eliminating waste, reducing
variability, and driving continuous
improvement.
🔹 Designed to standardize excellence across
all factories and beyond.

🔹 A key principle: engaging employees at


all levels, from shop floor to leadership.

KEEP SWIPING
04/09

3 C’s Objectives
The NCE’s vision is encapsulated in the 3Cs:

🎯 Delight Consumers By ensuring product


quality & availability.
🎯 Deliver Competitive Advantage
Through cost optimization & operational
efficiency.
🎯 Excel in Compliance By maintaining the
highest safety, quality & environmental
standards.

🔹 People-centric approach: Developing


problem-solving skills at all levels.

KEEP SWIPING
Deploying NCE
05/09

🏭 Pilot implementations began in selected


high-performing sites to refine the
methodology. 🛠 A structured roadmap was
developed:

Foundation phase: Training, leadership


engagement, cultural shift.
Implementation phase: Standardized tools,
daily performance reviews, and problem-
solving techniques.
Advanced phase: Deep integration of TPM,
Lean, and Six Sigma methodologies.

📈 Results were measured through KPIs, and


sites had to pass maturity gates before
progressing to advanced practices (LEAN &
TPM)
KEEP SWIPING
06/09

2 years down the road


🏭 In 2010, 300 factories in 15 countries
adopted NCE.

📈 Significant improvements in safety, quality,


cost, delivery, and employee engagement.
💰 Over 1.5B CHF additional savings realized.
🔥 Operators and employees gained a
stronger sense of ownership and pride in
their work.

🔄 Continuous Improvement became


embedded in the company culture.

KEEP SWIPING
07/09

Beyond Operations
From 2010, it expanded across the entire
value chain:

✔️ Supply Chain: Optimizing logistics,


warehouse management & procurement.
✔️ Shared Services: Finance, HR, and IT
applied Lean to streamline workflows &
eliminate inefficiencies.
✔️ R&D & Marketing: Leveraging data-driven
decision-making and customer-centric
process improvements.

💡 NCE demonstrated that Lean &


Continuous Improvement could be applied
beyond manufacturing.

KEEP SWIPING
08/09
Lessons Learned

🔑 80% mindset, 20% tools


Success depended on leadership
engagement & employee buy-in.

🔑 Leadership & empowerment: Managers


shifted to a coaching role, fostering
autonomy & problem-solving skills.

🔑 Standardization enabled scalability: The


NCE model ensured a common language
and approach across all markets.

🔑 Sustainable change required discipline:


Sites followed a structured progression, with
maturity gates preventing backsliding.
KEEP SWIPING
09/09

New Growth Strategy


🚀In 2025, Nestlé's CEO Laurent Freixe
extends his “virtuous circle” model to the
entire group. It aims to “Fuel the growth” by
generating savings for reinvestment.

💰 2.5B CHF savings targeted by 2028.


💡NCE at the core, eventually boosted by
digitalization, and innovations 🤖

Exciting developments ahead! 🌍✨

KEEP SWIPING
Produced with care ✨ from my personal archives and public sources

✨ I had the privilege of spending 20 years


working on these 3 exceptional business
transformation programs at Nestlé (GLOBE,
NCE, NBE), and I have never seen anything
like them elsewhere

💡 This is the story and the learnings I want to


share with you in an upcoming series of posts.

👋 I’m Nicolas Jourdain, I ve founded OpEx


an independant consulting business, helping
companies improve performance through:

Operational Excellence 📈
Human Capital Development 🏆

FOLLOW US ON LINKEDIN TO
GET THE FULL STORY!

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