WCM Journey

Tetra Pak Production d.o.o.

Gornji Milanovac, Serbia

Beograd, Sep 2017

Internal

Introduction

► Svetislav Savic

► WCM & Engineering Manager

► Tetra Pak, Converting Factory Gornji Milanovac

Internal

Who are we?

• Tetra Pak specialise in providing customers with complete solutions

for the processing, packaging and distribution of food products

Packages to meet every need

We commit to making

food safe and available,

everywhere

Tetra Pak vision

Internal

“A package should save more than it costs”

Everything Started with one Idea….and Belief that

Ruben Rausing

Internal

Tetra Pak Organisations

Europe & Central Asia

South Asia, East Asia & Oceania

North, Central & South America

Greater China

Greater Middle East & AfricaOver 24,100 Employees

11,4 billion € sales in 2016

Products in >175 countries

48 Manufacturing Sites

32 Market Companies

sales offices market companies 6 R&D units 13 Technical Training Centres 48 manufacturing sites

Gornji Milanovac

Internal

1.2.

3.4.

5.6.

1.2.

3.4.

5.6.

Prepress &

Printing

Coating &

Lamination

Finishing &

Material

Treatment

Converting factories produce printed rolls of packaging material

Internal

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.

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

Internal

TPM started in Tetra Pak – 1999 as WCM Programme

► Top management initiative and support

► Pilot teams in 2 factories

► Investment in time and coaching

Internal

Expansion started in other factories 2001 - 2003

► WCM global office established

with WCM Champions and

Master Pillars

► Extensive training and

coaching programme

established

Internal

► WCM Champions moved to Clusters

► Factories start delivering consistent results

Stabilization Phase 2004 – 2009

Internal

► Factories delivering breakthrough results

► Teams and factories becoming self driven

► Building on continous improvement to

drive innovative solutions

Progress and Evolution 2009 – 2014

Internal

WCM Principles

ZERO Losses Mindset- Zero Defects (Total Quality ) - Zero Breakdowns and unplanned Stops- No touch - JIT

Involvement

Engagement and

Self-fulfillment

Internal

75

21

51

2003 2004 2005 2006 2007 2008 2009 20102002200120001999

100

2015

Consolidated Global Results

Break through results in key areas

Waste (Index 100) Claims (Index 100)

80

68

2003 2004 2005 2006 2007 2008 2009 20102002200120001999

100

2015

41

- 59%

2015 2015

100 100

- 79%

Internal

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

WCM at Tetra Pak FactoryGornji Milanovac

Internal

► 2001 - Start of World Class Manufacturing Program – 4 Pillars

► Internal 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

Start of WCM in Gornji Milanovac

Internal

► 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

Key of Success

Internal

11 Pillars structure since 2008Governing the WCM program

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Main

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Each Pillar

Focuses on Common Themes / Losses with Expertise in specific Methods and Tools

Internal

► cross functional team which use specific

methodology to achieve defined business

objectives (KPI) in a systematic way with

total involvement of all members

► “competence centre” supporting the

organisation at three levels

► Pillar leaders & WCM Manager & Factory

Director – Steering Committee

WCM Pillars Pillar is a...

SYSTEMS DEVELOPMENT

(DMS - loss control and loss

prevention)

IMPROVEMENT TEAM SUPPORT

(Training, Coaching, Auditing)

LOSS ANALYSIS

(Deployments, Improvement team

launching)

Internal

WCM Organization

AM Teams - Operators

• 30 Kaizen teams each year

• All operators are members of AM teams

Kaizen Teams

Internal

From Loss Deployment to Zero LossExample

Internal

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

Internal

By controlling the process 4 M conditions

(DMS)

Carta de Promedios - Grupo 1

313.00

314.00

315.00

316.00

317.00

318.00

319.00

320.00

321.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

LNS-X Valor de Muestra-X LNC-X LNI-X

Carta de Rangos - Grupo 3

0

1

2

3

4

5

6

7

8

9

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

LNS-R Valor de Muestra-R LNC-R LNI-R

Carta de Promedios - Grupo 3

315.00

315.50

316.00

316.50

317.00

317.50

318.00

318.50

319.00

319.50

320.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

LNS-X Valor de Muestra-X LNC-X LNI-X

Applying Infinite Loop Approach

Good Production

90%

Losses

10%

Improve and Eradicate by Kaizen teams

Which identify new conditions to keep

under control

Maintenance and Improvement

How to

Maintain?

How to

Improve?

Internal

WCM Journey - Three Levels and JIPM Awards

TPM Level 1Factory Operational Excellence

TPM Level 2Integrated Supply Chain

TPM Level 3Extended Supply Chain

Excellence Consistency Special Advance

SpecialWorld

Class

Internal

Tetra Pak Production d.o.o. Gornji Milanovac, Serbia

IP-SS/2016-11-30

Public

/ 26

Tetra Pak factory in Serbia – World Class Award 2015Tetra Pak factory in Serbia – World Class Award 2015

First Tetra Pak factory

to receive the

World Class Award!

Public

Internal

Innovative WCM as Tool for CompetitivenessTransforming Challenges to Opportunities

Operational Excellence

secures the present.

Innovation Excellence

secures the future.

People & Process

Equipment

Society

Technology

Internal

Social ResponsibilityWCM Mindset Promotion

TP

M 2

So

urc

e &

De

live

r

TP

M 3

Su

pp

liers

&

Cu

sto

me

rsS

ocie

tyTetra Pak Market Company Integrated Supply Chain

Customers Suppliers

Business Partners Universities

Technical Service Support

-Basic tools

-PM Pillar

Internal

Factory ResultsKey benefits to the business

PProductivity (MioPacks/Head)

Volume produced (MioPacks)

Number of new products

Q Total waste (%)

Customer claim (case/MioPacks)

C Cost index (index)

D Lead time (days)

S Number of accidents (case)

M Tags solved by operators (%)

Employee satisfaction score

(absolute value %)(* - new measurement)

Production

Quality

Cost

Delivery

Safety

Morale

Category Indicator (unit)Excellence

2005

Consistency

2008

Special

2010

Adv. special

2012

World Class

2015

Improvement rate TPM Award vs. BM year 2001

2,4 times

3,5 times

+ 7

2,5 times

5,5 times

+ 19

2,7 times

5,6 times

+ 44

2,8 times

6,7 times

+ 49

3 times

10 times

+ 137

43 %

1/1,5

46 %

1/2

53 %

1/2

57 %

1/3

63,5 %

1/5

23 %

NA

37 %

88 %

116 %

97 %

228 %

98 %

340 %

* 93 %

5 3 2 1 0

1/1 1/1 1/2 1/3 1/3

53,5 % 66,9 % 62,4 % 65,6 % 68,2 %

Internal

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!

Internal

WCM – The Culture Change

It works!It makes the difference!

It changes the way you do business!

One-Way Journey

It’s not always easy. Sometimes it’s even painful...but:

People

change

Machine

change

Culture

change

“If you focus on results, you will never change.

If you focus on change, you will get results.”

HVALA!