Tolu Adesalu Head of Procurement West Africa Cadbury Nigeria PLC Nigeria
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1 Tolu Adesalu Head of Procurement West Africa Cadbury Nigeria PLC Nigeria
2 Manufacturing in Nigeria: Yesterday, Today & Tomorrow Tolu Adesalu
3 Purpose: Spark debate on the benefits of making Nigeria the manufacturing hub of Sub-Saharan Africa.
4 Manufacturing: Manufacturing is the production of merchandise for use or sale using Labour and Machines, Tools, Chemicals and Biological processing or formulation. - Wikipedia. The process of Converting raw materials, components or parts into finished goods that meet a customer s expectations or specifications. Business Dictionary
5 The Consumer: Yesterday s Consumer: Very loyal, not too quality conscious, not interested in the supply chain of the brand, access to information only through traditional media. Today s Consumer: Quality conscious, enlightened, interested in the well being of the Planet, loyal but demanding, social media savvy. Tomorrow s Consumer:?
6 Manufacturing Yesterday: Poor Quality: Short shelf life, high defect rate. Poor safety record: Lost time incidents, accidents. No HSE agenda. HSE function absent. Inefficient process: High wastage Not consumer focused. Weak regulatory environment.
7 Manufacturing Today: Improved Quality: still a long way to go. HSE agenda developing. Some process improvements but still way behind best in class levels. Increasing consumer focus. Improved regulatory environment.
8 Manufacturing Tomorrow: Vision: When Made in Nigeria products compete and are adjudged to be better than similar products manufactured elsewhere in the world!
9 KEY DRIVERS- MANUFACTURING EXCELLENCE Quality Cost Delivery Manufacturing Excellence Safety Morale 9
10 Manufacturing Tomorrow: Enablers: Labour: Young, trainable population, skilled diaspora. Availability of basic raw materials. Largest market in Africa. Missing: Will power.
11 Manufacturing Tomorrow: Quality Enablers: Imbibe Global best practices. Make best in class certification mandatory requirement. GFSI, BRC etc. Food Safety becomes the highest priority. Strengthened Regulatory environment. Increases the confidence of the export markets in our products.
12 QUALITY COSTS Prevention Costs: cost of doing it right the first time 1. Cost of Quality Training Programs 2. Cost of planning/ specifying quality levels 3. Cost of supplier selection & approval 4. Cost of calibration of test equipment 12
13 QUALITY COSTS CONT D Quality Appraisal Costs: cost of checking whether it was right 1. Cost of inspection 2. Cost of laboratory tests 3. Cost of quality audit 13
14 QUALITY COSTS CONT D Failure Costs: cost incurred because it wasn t right first time. 1. Cost of scrap and waste 2. Cost of investigation of product failure 3. Warranty costs 4. Consumer complaints & loss of goodwill 5. Cost of replacement / repair 6. Product recall 14
15 Quality Key Performance Indicators ( KPI s) KPI Definition Measurement Consumer Complaints Product Recall Non- Conforming products Supplier Performance No of complaints received from consumer / customer Quantity of product recalled due to defect Sub-standard products generated Defects or Delay in supplier delivery No of complaints / 100T of products No of recall % of sub-standard products / Total product produced % defect / Total quantity supplied 15
16 SAFETY WORKING SAFELY Our Job is never so important that we cannot take the time to do it safely 16
17 CRITICAL AREAS Risk Assessment : Site & Task Levels Planned inspection : Hazards spotting Permit To Work : Control of activities Control of Hazardous Energy Accident & Incident Investigation Personnel Protective Equipment 17
18 Safety Key Performance Indicators ( KPI s) KPI Definition Measurement Near Miss Incident / Accident Reportable Accident and Incident Rate ( RAIR) Lost Time Incident Frequency Rate( LTIFR) An incident or accident that could have occurred An occurrence that could cause harm or injury or destruction No of severe accident/incident that resulted in keeping the victim away from work for more than 24 hours Severe accidents with > 48 hours lost time No of near misses / period No of incident / accident per period No of accident* No of total hours worked / 100,000 employees No of accident* No of employees/ 100,000 man hours 18
19 Manufacturing Tomorrow: HSE Enablers: Create a zero accident mindset. Accident/Incident Investigation. Largest market in Africa.
20 Manufacturing Tomorrow: Production Enablers: Increase efficiency. Adopt Lean Six Sigma. To achieve six sigma, a process must not produce more than 3.4 defects per million opportunities. Reduce downtime. Inculcate Continuous Improvement philosophy (Kaizen) The six sigma DMADV process ( Define, Measure, Analyse, Design, Verify) is an improvement system used to develop new processes or products at six sigma quality levels.
21 Lean Management Tools Value Stream Mapping 5S 5 Whys Total Productive Management ( TPM) Quick Changeover ( SMED) Continuous Improvement ( Kaizen) 21
22 Manufacturing Tomorrow: Recommended Wave 1 Sectors: FMCG. Pharmaceuticals. Processed Agricultural produce/raw materials for FMCG.
23 Thank You!
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