TPM and the Extended Supply Chain. Tetra Pak Production d.o.o. Gornji Milanovac, Serbia London, Nov 2016
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1 TPM and the Extended Supply Chain Tetra Pak Production d.o.o. Gornji Milanovac, Serbia London, Nov 2016
2 Introduction Indira Petrovic WCM & Engineering Director Cluster Europa and Central Asia Svetislav Savic WCM Manager Gornji Milanovac Factory IP-SS/ / 2
3 Who are we? Tetra Pak specialise in providing customers with complete solutions for the processing, packaging and distribution of food products IP-SS/ / 3
4 Tetra Pak vision We commit to making food safe and available, everywhere
5 Converting factories produce printed rolls of packaging material Prepress & Printing Coating & Lamination Finishing & Material Treatment IP-SS/ / 5
6 Five Geographic Clusters Europe & Central Asia Greater China 32 Converting Factories 23,460 Employees 10,9 billion sales in 2014 Products in >175 countries Greater Middle East & Africa South Asia, East Asia & Oceania North, Central & South America IP-SS/ / 6
7 Everything Started with one Idea. and Belief that Ruben Rausing A package should save more than it costs IP-SS/ / 7
8 TPM started in Tetra Pak 1999 as WCM Programme Top management initiative and support Pilot teams in 2 factories Investment in time and coaching IP-SS/ / 8
9 Expansion started in other factories WCM global office established with WCM Champions and Master Pillars Extensive training and coaching programme established
10 Stabilization Phase WCM Champions moved to Clusters Factories start delivering consistent results
11 Progress and Evolution Factories delivering breakthrough results Teams and factories becoming self driven Building on continous improvement to drive innovative solutions
12 WCM Principles ZERO Losses Mindset - Zero Defects ( Total Quality ) - Zero Breakdowns and unplanned Stops - No touch - JIT Involvement Engagement and Self-fulfillment IP-SS/ / 12
13 Break through results in key areas Consolidated Global Results Waste (Index 100) Claims (Index 100) % % IP-SS/ / 13
14 WCM going Deeper & Wider 2014 Factory Managers and WCM Managers take on the coaching Tackling more losses together Benchmarking and sharing between factories Expansion in full Supply Chain and Engineering areas IP-SS/ / 14
15 INNOVATION CHAIN Ambition to cover whole business Technology Development Plan Suppliers Source Make Deliver Customers Product Development SUPPLY CHAIN WCM Level 1 Factory Operational Excellence WCM Level 2 Integrated Supply Chain WCM Level 3 Extended Supply Chain World Class Business IP-SS/ / 15
16 Learnings from 16 years of WCM Full top management commitment is essential Willingness to invest time in coaching Needs involvement at all levels Does not work overnight requires persistence Empowered people deliver breakthrough results! IP-SS/ / 16
17 Tetra Pak Production d.o.o. Gornji Milanovac, Serbia Tetra Pak factory in Serbia World Class Award 2015 Tetra Pak factory in Serbia World Class Award 2015 First Tetra Pak factory to receive the World Class Award! IP-SS/ / 17
18 TPM level 3 Case study Tetra Pak Production d.o.o. Gornji Milanovac, Serbia IP-SS/ / 18
19 TPM Journey in Gornji Milanovac Factory TPM Excellence TPM Consistency TPM Special TPM Advanced Special TPM World Class 250 employees 350 customers worldwide IP-SS/ / 19
20 Cost Aims OUR FOCUS TPM LEVEL Innovation Chain TPM - The Three Levels Technology Development Plan Suppliers Source Make Deliver Customers and Consumers Product Development TPM Level 1 Factory Operational Excellence Supply Chain TPM Level 2 Integrated Supply Chain TPM Level 3 Extended Supply Chain Production Excellence by learning and mastering TPM tools and techniques Defending & Strengthening Competitive Position through flexible & efficient Supply Chain Zero Loss Company by Innovative TPM Activities Reduce Production Cost Reduce Total Product Cost Improve Overall Cashflow IP-SS/ / 20
21 TPM Level 1 Factory Operational Excellence TARGET Increase production operation capabilities to contribute to business results Improve production QCD performaces Create safe and pleasent working environment Improve ability to manage development of new products and equipment CHALLENGES Low production volume Not recognized globally Employees mindset inherited from past Non relialable data collection system Immature business proceses Low equipment reliability People Key Word Key Concept Key Activities Motivation Involvment Competencies Safe and pleasent work environment Skill gap reduction Slogan No Limit for Our Improvements AM introduction Risk level reduction Training, Practising Mindset change PM + AM = One team Process Equipment Effectivness Basic Capabilities QCD performance at production Pilot production process-line Loss Intelligence & Reduction Bottleneck attack Prioritization Basic metodolghies and tools Pilot teams Gemba approach Reactive to preventive Organization Driving strategy Steering Comittee Company Management Support System development Teams small group activity Collaboration Internal benchmark Survival strategy KPI Introduction Top managemenet involvment Communication IP-SS/ / 21
22 TPM Level 2 Integrated Supply Chain TARGET Enhance production operation capabilities to contirbute to business results Establish and improve QCD performances in integrated supply chain Improve productivity and flexibility through lead time reduction CHALLENGES Economic crisis in the region Increased competition Pressure for cost reduction Request for Lead time reduction Capability for new product deployment People Process Organization Key Word Key Concept Key Activities Cooperation Engagemnet Leadeship Attitude Puchasing, logistic, design, customer service QCD performance at supply chain Attack invisibile losses Enhance capabilities New service to customer Integrated supply chain New product development Skill loss focus Employee satisfaction Leaders promotion Mutltiskill development Lead time reduction Offer new service to customer Flexibility Improvement Loss Eradiction & Prevention Infinity Loop Sustainability standardization Business Process Improvement From survival to winning strategy Cross Pillar Activity PM+AM+QM+FI = One team Reward and recognition ET pillar maturity Self learning Customer satisfaction survey New service - Repro Hub Development Advanced tools, Flying setup Preventive to predictive Perfect execution rigorous method application Low Cost Automation, Poka Yoke, DMS Information system VSM, Makigami KMI-KPI-KAI From Pillar to Process Team Benchmarking IP-SS/ / 22
23 TPM Level 3 Extended Supply Chain TARGET Sustain and improve capabilities of the production operation processes Establish QCD performances in R&D department and extended supply chain Create additional value to customer Enhance social responsibility CHALLENGES Deployment of advanced technologies and services Support Customers Competetivness Involvement of R&D in WCM programme Manage high complexity Product and service quality beyond boundaries Further cost optimization Key Word Key Concept Key Activities People Self actualization Decison making participative management Self management High performance teams From operator to innovator AM step 7 Soft skill development Process Innovation think outside the box Cretivity Optimization Zero Loss System New products development Cost effective equipment upgrade Complexity management system CBM, RCM, SPC implementation Zero Touch Machine Low cost approach Stock management Organization New technology and products development Common agenda with customers Company prosperity Own TPM program Social responsibility Customer and supplier involment in R&D Challenge existing business process Proactive approach Spread TPM Philosophy Technology innovation New businness process development Support to central organization WCM & Engineering integration TPM to Supliers & Customers IP-SS/ / 23
24 TPM Level 3 Support Customer Competitivness Creative TPM Premium Print Technology Development IP-SS/ / 24
25 REALITY product Help customers to attract end consumers to make the RIGHT CHOICE
26 How to catch the consumer s attention? No time for being rational choosing what feels right SECONDS
27 Turn consumer s heads Make Customer Package Absolute Winner Good package design allows brand owners to gain shelf impact and create sales opportunities Capture intagible values Emotional connection Flavour Colour Taste Freshness 1
28 Enable Customer Competitive Advantage Premium Print Technology Development using Creative TPM Customer expectations: Premium Printing for highest design capabilities and consumer attraction Highly competitive PRICE with NO logistic constrains Deliver brand value without any equipment investment One Team Early Product Management Methodology Specification Processes IP-SS/ / 28
29 Design Phase TPM Advanced Tools Application Factory spread TPM knowledge to other stakeholders Factory Suppliers Base Material Paper Ink R&D Repro House IP-SS/ / 29
30 Technology Development Thorough application of EM route to ensure vertical start up α α+β > 91% IP-SS/ / 30
31 Technology Industrialization Sustainable technology achieved New product specification released QA QM Matrix PM-AM Plans MP system updated Training to other Tetra Pak factories
32 Customer expectations achieved Enhancing Customer brand with high quality printing Enhance product appeal in the point of purchase Freedom for creative design and branding Improve communication power High value with no cost impact Differentiation without equipment investment IP-SS/ / 32
33 Business implications Make the difference Transport cost reduction due to higher availability Lowered impact on CO2 emissions by worldwide availability Spread application of TPM methodology among suppliers, customers, R&D, Sales Strengthened role of factory in development projects Improved Tetra Pak profitability Improved Customer relationship
34 Innovative TPM as Tool for Competitiveness Transforming Challenges to Opportunities People & Process Equipment Technology Society Operational Excellence secures the present. Innovation Excellence secures the future. IP-SS/ / 34
35 WCM The Culture Change Culture change People change Machine change If you focus on results, you will never change. If you focus on change, you will get results. IP-SS/ / 35
36
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