Food Safety & Quality Journey

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1 Food Safety & Quality Journey Britannia Industries Ltd., N. R. Selvaraj General Manager & Head Corporate Quality CII Food Safety & Quality Summit, 12 th Oct, 2012

2 Agenda Who are We? What we wish to Be? The Core and the Adjuncts 2

3 Agenda Who are We? What we wish to Be? The Core and the Adjuncts 3

4 With over 90 years of heritage, Britannia is amongst the oldest food companies in India. Today it is a $ 1 billion strong company with consumer offerings that span bakery and dairy. It is in the business of making enjoyable food healthy and accessible. An effort consumers acknowledge by voting Britannia the most trusted food brand in India 4

5 Key Milestones Over 100 years of heritage, serving a billion Indians R 10,000 MM USD 220 MM R 15,000 MM USD 326 MM 2003 R 55,000 MM USD 1Bn 2012 R 1,000 MM USD 20 MM Set Up

6 Purpose, Vision and Goals Purpose Help people enjoy life thru healthy snacking Make enjoyable food, including beverages, healthy & accessible to all people, any time, anywhere - everyday Business Vision Make Britannia the favorite food brand of a Billion Indians & the best FMCG to work for & partner with. Transform Britannia from Bakery Products to Healthy Snacks - with an international presence Secure #1 or #2 position for all our brands in chosen value-spaces & markets. Create a business model that is hard to replicate By March 2016: Business Goals Double the top line and bottom line At least one Britannia brand purchased and consumed by 50% of all Indian households once a week 6

7 Our products Health and Wellness Delight and Lifestyle Kids Nutrition Adult Health Khatirdari Snacking Indulgence Dairy & Breakfast Cereals 7

8 Britannia Nutrition Foundation Building awareness and creating platforms for action through partnerships ON GROUND PARTNERS RESOURCE PARTNERS ADVOCACY PARTNERS TECHNICAL COLLABORATIVE/ LEARNING PARTNERS 8

9 Britannia : India s Most Trusted Food Brand No. 1 Food Brand No. 1 Food FMCG No. 1 Trusted Brand No. 1 India s most respected companies No 5 FMCG 9

10 Quality Awards 2010: IMC Ramakrishna Bajaj National Quality Award: Performance Excellence in Manufacturing category for Corporate Office, Uttaranchal and Sunandaram Foods 2011: CII Food Safety Award for Delhi Factory and Merit Certificate for JBM Gwalior on best practices in Food Safety 2011: IMC Ramakrishna Bajaj National Quality Award : Highest Award in Manufacturing Excellence for Corporate Office, Delhi, JBM, Uttam Foods and Paramount Asia Pacific Quality Award in Manufacturing Category Best in Class Award - to receive on 14 th Oct

11 Our Presence Exporting to more than 70 countries Manufacturing facility at Dubai and Sohar 11

12 Our Presence Manufacturing locations 3300 Distributors Million Million Retail Retail outlets Outlets 12

13 What we want to be Building sustainable advantage by developing superior business processes in the organization - Benchmarking our processes to achieve business excellence. - Building individual competency and organizational capability to create a culture of excellence. - Integration of initiatives to achieve the business goals 13

14 Agenda Who are We? What we wish to Be? The Core & the Adjuncts 14

15 Challenges in Standardization 5 Product challenge Product shelf life Product vulnerability to handling Number of Brands Sub brands, Varieties and SKU s Quality challenge Diversified Manufacturing Foot print Diversified product portfolio. 90 Manufacturing locations 3300 Distributors 3.6 Million Retail outlets Outlets 15

16 The Core & The Adjuncts Quality Standardization Q Next Cost Optimization B Next THE CORE P Next Process Standardization (Operational Excellence) Quality Competence Practices in Environment Management E Next I Next Best Practices in Information Management 16

17 Core Competency Policy Level Food Safety & Quality EHS Other Company policies Strategic Level Operational Excellence People Competency Quality Process Standardization Key Quality Metrics Certification External Benchmarking Audits & Compliance Documentation Process compliance CQI Complaints Q Score ISO 22 K BRC EHS Business Excellence Quality Awards Food Safety Awards 17

18 Q NEXT Britannia s initiative to Transform its Consumer Delivered Quality to the Next Level speedily, dramatically and sustainably Quality Non- Negotiables Quality Enablers Ways of Working Metrics & Reporting 18

19 Q Next Model Application of TPM Pillars Kaizen & Autonomous Maintenance Consumer Expectations Product Parameters (Quality Nonnegotiables) Standardization of Process Parameters AM Standardization of Equipment Parameters Standardization of Practices SOP s Focussed Improvement through people involvement KAIZEN 19

20 P NEXT Process / Operational Excellence Program Competitive advantage through Operational Excellence Total Productive Maintenance (TPM) - Raise the consumer delivered quality of products to the next level (Q Next) - Impact Productivity Cost, Delivery, Safety and Morale at workplace Statistical Quality/Process Control tools of TQM - Improve consistency of process and product delivery - Develop competency in using statistical tools to solve a problem Lean Six Sigma - Improve effectiveness of processes - Develop competency in using practical problem solving methodology Factories Pilot initiated at depots Factories and related functions Non-manufacturing & Central functions Challenging National Quality Awards to benchmark processes Periodic Review by Steering Committee 20

21 I NEXT Information systems to enable capture data at all stages of process. All workflows have escalation matrix built-in that gets triggered on reaching specified criteria. Back End Process Online Process Front End Process Quality Module of SAP Technology Transfer Processes Consumer Complaints Vendor Management Portal Quality Processes Key Quality Metrics 21

22 E NEXT Environment, Health and Safety frame work EHS POLICY BUSINESS AND LEGAL REQ RISK MANAGEMENT. GOALS AND TARGETS EHS PLANNING EHS TOOLS PRACTICE AND PROCEDURES TRAINING AND ASSESSMENT RESPONSIBILITY AND ACCOUNTABILITY CORRECTIVE & PREVENTIVE ACTION PERFORMANCE MANAGEMENT OTHER BUSINESS OFFICE / PROJECTS / DEPOTS / SALES» EHS policy considering all critical parameters» Development and deployment of Safe Operational Control Procedures» Score card to demonstrate commitment to EHS» Online Incident Management System workflow 22

23 E NEXT Environment Focus: Fuels & Alternate Technology Direct Gas Fired Oven Thermic Fluid Oven Biogas plants IR Technology 23

24 B NEXT BIL s approach towards systemic cost reduction program involving all internal stakeholders - without affecting Quality. Achievement Delivered 4-5% of NSV Savings Contributing to BIL Operating income and improving competitiveness Team Dedicated functional work-streams including multiple regional representatives The Initiatives Procurement Raw material and Packaging materials Technical collaboration and tie up with specialist vendors Manufacturing Achieving operational excellence through cost modeling Wastage reduction LTCP development and finalization Distribution Total cost optimization Synergy and integration of verticals Increasing truck utilization Primary and secondary freight 24

25 Quality Through Technology: BIL s focus Ingredient Handling Batch handling Bulk Handling Mixing Batch Process Continuous Mixing Feeding to Packing Machines Manual Auto Feeding Air Tight Carton Filling Secondary Carton Filling Manual Manual PanPack Auto Feeding Auto Cartoning Loading to Trucks Manual Auto-Loading through Retractable Conveyors 25

26 AV 26

27 AV 27

28 Consumer Perceived Quality Consumer Perceived Quality Assessed for products at different stages of shelf life. Sensorial Parameters tracked through trained and validated sensory panels. 28

29 Key Achievements Unified Quality Systems Constant Tracking of Consumer Centric Attributes Benchmarking of Quality & Food Safety Processes System and Process certifications Data & Knowledge Management Q Score at units for Continuous improvement 29

30 LEARNING Not to forget basics of Food Safety. Documentation is important, but documentation is not all. Documented actions are important. Why SOPs don t work. Make simple SOPs. A complicated SOP that cannot be implemented is as good as not being there. Food Safety and Quality must be demonstrated. People follow the leader. Improvements must be made after sustaining previous improvements in an area. Ego is good for Quality. Bad Quality hurts ego. People like to feel proud of what they produce. People tend to break rules when things are monotonous. There must always be new learnings which will keep them challenged. 30

31 THANK YOU 31