Kraft Foods Group, Inc.

Integrated Lean Six SigmaWhat is it?

Kraft Foods Group, Inc.

What is Integrated Lean Six Sigma?• A Strategy to Build the Capability of the TOTAL

Organization

• IL6S brings together Lean, Six Sigma, TPM and High Performance Work Systems in an integrated approach.

• Aimed at achieving and SUSTAINING breakthrough Business Results through a highly skilled, motivated and self-reliant Work Force

• Through 100 % Total Employee Ownership and Pursuitof Zero

Kraft Foods Group, Inc.

Pursuit of Zero – Why is Zero Important?• Loss is the difference between actual results and the

ideal ZERO State• The definition of quality is the conformance to

requirements – NO Defects• Eliminating Stops and Breakdowns enables

Predictable Supply and Predictable Maintenance• Predictable Supply is needed for a produce-to-

demand system with just-in-time inventory

Kraft Foods Group, Inc.

ZERO and 100…Create a predictable supply chain with customers and suppliers

Big Supply System Losses• Inventory • Delayed/Incomplete Orders• Damage/Over Age Stock

• Productivity • Initiative Launch• Customer Returns

Big Losses Across the Silos in the Supply System

Building an End to End Supply Chain

Kraft Foods Group, Inc.

IL6S Design Elements

• Pillars– Provide “Centers of Excellence” (COE) containing key tools

and approaches aimed at building capability

– Build required capability horizontally across the Organization

– Pillars Are Not Functions

With the House example, the pillars simply provide the builders with the necessary capabilities.

Kraft Foods Group, Inc.

Integrated means building 11 interdependent Capability building pillars

Stable & Predictable Line Performance Zero Losses Across the Value Chain Vertical Start-up of New Initiatives

Kraft Vision

ISC Vision

CBN

Pillars

Foundation

Leadership

Organization (Org)

Education & Training (E&T)

“We are a CONSUMER-driven, CUTOMER-focused team delivering WORLD CLASS solutions and sustained breakthrough results through the best developed PEOPLE and CAPABILITIES

Initi

ative

Man

agem

ent (

IM)

Qua

lity

Man

agem

ent (

QM

)

Auto

nom

ous

Mai

nten

ance

(AM

)

Prog

ress

ive

Mai

nten

ance

(PM

)

Conti

nuou

s Im

prov

emen

t (C

I)

Supp

ly N

etw

ork

(SN

)

Safe

ty, H

ealth

& E

nviro

nmen

t (SH

&E)

Wor

k Pr

oces

s Im

prov

emen

t (W

PI)

Make Kraft North America’s Best Food Company .

2 + 0 + 15 by 2015 thru POWER of 1

Kraft Foods Group, Inc.7

Blitz – Accelerating the Future

• Pillar Leads– Dee Gibbs – Leadership– Johanna Ramirez – AM– Hany Azmy - PM– Tim Preston - CI– Bob Hollingsworth – IL6S Mgr– Kato Oliver – Health, Safety & Env– Windy Glahn – Education/Training– Susan Ledbetter - Org– Jill Hoffman – Quality– Matt O’Shield – Material– To be determined – WPI

Making IL6S the way we work

Kraft Foods Group, Inc.

Objectives:• Prepare Leaders to effectively and efficiently

leverage IL6S to meet their business needs.• Begin the organizational change effort to achieve a

Zero Loss and Total Employee Ownership Culture • Ensure leadership defines the organization’s

Compelling Business Need business in a way that every employee can link their work plan to it.

CHANGE OUR LEADERSHIP BEHAVIORS

Kraft Foods Group, Inc.

• Leaders establish clear stretching objectives and standards for the organization based on business needs.

• Leaders role model IL6S behaviors, (e.g. finding & eliminating defects, root-cause problem solving, broad involvement of the organization, etc.)

• Leaders Learn-Do-Teach through participation in Leadership Models on-the -floor/work area activities, roll-down training and day-to-day coaching.

Culture Elements/Behaviors

Vision

Support the RTD BU with World Class performance and innovation

Network: Provide service flexibility while

producing high quality products at the lowest cost

Facility: Continue to develop our safety culture

through 100% engagement Build employee capability and

opportunity to achieve highest quality and lowest cost

Mission

Everyone, every day, the best way

Full EngagementWorking togetherShared goals

Small Improvements everydayWorking to eliminate all lossesConstant review of current processes

Learn and apply from othersIdentifying best practices - plant and networkStandard work

Compelling Business Need

Beverage RTD Network

Mission

2Double Volume

Growth

OZero Loss Thinking

Safety / Costs

15 % Efficiency gains

over 3 years to support growth

Chain LinksNetwork and employees

Working together

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Kraft Foods Group, Inc.

Questions?????

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