WCM Journey. Tetra Pak Production d.o.o. Gornji Milanovac, Serbia Beograd, Sep 2017

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1 WCM Journey Tetra Pak Production d.o.o. Gornji Milanovac, Serbia Beograd, Sep 2017

2 Introduction Svetislav Savic WCM & Engineering Manager Tetra Pak, Converting Factory Gornji Milanovac

3 Who are we? Packages to meet every need Tetra Pak specialise in providing customers with complete solutions for the processing, packaging and distribution of food products

4 Tetra Pak vision We commit to making food safe and available, everywhere

5 Everything Started with one Idea. and Belief that Ruben Rausing A package should save more than it costs

6 Tetra Pak Organisations Europe & Central Asia Gornji Milanovac Greater China 48 Manufacturing Sites Products in >175 countries 32 Market Companies Over 24,100 Employees 11,4 billion sales in 2016 North, Central & South America Greater Middle East & Africa South Asia, East Asia & Oceania sales offices market companies 6 R&D units 13 Technical Training Centres 48 manufacturing sites

7 Converting factories produce printed rolls of packaging material Prepress & Printing Coating & Lamination Finishing & Material Treatment

8 What is World Class Manufacturing? a mindset based on a continuous improvement approach a systematic approach to achieve maximum organization effectiveness through all employee involvement WCM has its foundations in the Total Productive Maintenance (TPM) - a maintenance process developed in Japan for improving productivity by making processes more reliable & less wasteful.

9 TPM started in Tetra Pak 1999 as WCM Programme Top management initiative and support Pilot teams in 2 factories Investment in time and coaching

10 Expansion started in other factories WCM global office established with WCM Champions and Master Pillars Extensive training and coaching programme established

11 Stabilization Phase WCM Champions moved to Clusters Factories start delivering consistent results

12 Progress and Evolution Factories delivering breakthrough results Teams and factories becoming self driven Building on continous improvement to drive innovative solutions

13 WCM Principles ZERO Losses Mindset - Zero Defects (Total Quality ) - Zero Breakdowns and unplanned Stops - No touch - JIT Involvement Engagement and Self-fulfillment

14 Break through results in key areas Consolidated Global Results Waste (Index 100) Claims (Index 100) % %

15 WCM going Deeper & Wider 2015 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

16 WCM at Tetra Pak Factory Gornji Milanovac

17 Start of WCM in Gornji Milanovac Start of World Class Manufacturing Program 4 Pillars support from advanced Tetra Pak factories Big opportunity for the factory to improve and be exposed 2 main resources People Time Right implementation of available methodology Embraced from top and middle management Full involvement of employees Empowerment

18 Key of Success Change of mind set of employees From individual to team approach From receiving to giving and sharing From reactive to proactive From operator to innovator From small factory to standard one From outsider to World Class factory

19 Autonomous Maintenance Planned Maintenance Quality Maintenance Early Management Education & Training Office Supply Chain (Logistic) Cost Focused Improvement Safety & Health Environment 11 Pillars structure since 2008 Governing the WCM program Each Pillar Focuses on Common Themes / Losses with Expertise in specific Methods and Tools

20 WCM Pillars Pillar is a... cross functional team which use specific methodology to achieve defined business objectives (KPI) in a systematic way with total involvement of all members LOSS ANALYSIS (Deployments, Improvement team launching) IMPROVEMENT TEAM SUPPORT (Training, Coaching, Auditing) competence centre supporting the organisation at three levels Pillar leaders & WCM Manager & Factory Director Steering Committee SYSTEMS DEVELOPMENT (DMS - loss control and loss prevention)

21 WCM Organization Kaizen Teams 30 Kaizen teams each year All operators are members of AM teams AM Teams - Operators

22 From Loss Deployment to Zero Loss Example

23 WCM Tools & Methodologies Tool/Method Purpose Level 5S, 5G Housekeeping, overall mindset, base of WCM Basic Pareto chart Loss deployments Basic 5W-1H, 4M, 5WHY Root cause analysis Basic 12-step kaizen story Loss eradication methodology Basic SMED Setups/Changeover optimization Intermediate SPC Measuring process capability Intermediate FMEA Identifying potential failures Advanced Makigami, VSM Process lead time reduction Advanced Poka Yoke Fool proof design for eradication of human error Advanced Karakuri kaizen Low cost automation to remove manual work Advanced

24 Applying Infinite Loop Approach Maintenance and Improvement How to Maintain? How to Improve? Carta de Promedios - Grupo Carta de Rangos - Grupo Carta de Promedios - Grupo LNS-X 2 3 4Valor 5 de 6Muestra-X LNC-X LNI-X LNS-R Valor de Muestra-R LNC-R LNI-R LNS-X Valor de Muestra-X LNC-X LNI-X Good Production 90% Losses 10% By controlling the process 4 M conditions (DMS) Improve and Eradicate by Kaizen teams Which identify new conditions to keep under control

25 WCM Journey - Three Levels and JIPM Awards Excellence Consistency Special Advance Special World Class TPM Level 1 Factory Operational Excellence TPM Level 2 Integrated Supply Chain TPM Level 3 Extended Supply Chain

26 Public 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! Public IP-SS/ / 26

27 Innovative WCM as Tool for Competitiveness Transforming Challenges to Opportunities People & Process Equipment Technology Society Operational Excellence secures the present. Innovation Excellence secures the future.

28 Society TP M 3 Suppliers & Customers TPM 2 Source & Deliver Social Responsibility WCM Mindset Promotion Tetra Pak Market Company Technical Service Support Customers -Basic tools -PM Pillar Integrated Supply Chain Suppliers Business Partners Universities

29 Factory Results Key benefits to the business Improvement rate TPM Award vs. BM year 2001 Category Indicator (unit) Excellence 2005 Consistency 2008 Special 2010 Adv. special 2012 World Class 2015 Production P Productivity (MioPacks/Head) Volume produced (MioPacks) Number of new products 2,4 times 3,5 times + 7 2,5 times 5,5 times ,7 times 5,6 times ,8 times 6,7 times times 10 times Quality Q Total waste (%) Customer claim (case/miopacks) 43 % 1/1,5 46 % 1/2 53 % 1/2 57 % 1/3 63,5 % 1/5 Cost C Cost index (index) 53,5 % 66,9 % 62,4 % 65,6 % 68,2 % Delivery D Lead time (days) 1/1 1/1 1/2 1/3 1/3 Safety S Number of accidents (case) Morale M Tags solved by operators (%) Employee satisfaction score (absolute value %) (* - new measurement) 23 % NA 37 % 88 % 116 % 97 % 228 % 98 % 340 % * 93 %

30 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 Get the fundamentals right Things don t work if they are not simple Develop and retain WCM talents Empowered people deliver breakthrough results!

31 WCM The Culture Change One-Way Journey It s not always easy. Sometimes it s even painful...but: Culture change People change It works! It makes the difference! It changes the way you do business! Machine change If you focus on results, you will never change. If you focus on change, you will get results.

32 HVALA!

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