TPM and the Extended Supply Chain

Tetra Pak Production d.o.o.

Gornji Milanovac, Serbia

London, Nov 2016

Introduction

► Indira Petrovic

► WCM & Engineering Director

► Cluster Europa and Central Asia

► Svetislav Savic

► WCM Manager

► Gornji Milanovac Factory

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Who are we?

►Tetra Pak specialise in providing customers with complete solutions

for the processing, packaging and distribution of food products

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We commit to making

food safe and available,

everywhere

Tetra Pak vision

Prepress &

Printing

Coating &

Lamination

Finishing &

Material

Treatment

Converting factories produce printed rolls of packaging material

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Five Geographic Clusters

Europe & Central Asia

South Asia, East Asia & Oceania

North, Central & South America

Greater China

Greater Middle East & Africa

23,460 Employees

10,9 billion € sales in 2014

Products in >175 countries

32 Converting Factories

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“A package should save more than it costs”

Everything Started with one Idea…. and Belief that

Ruben Rausing

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TPM started in Tetra Pak – 1999 as WCM Programme

► Top management initiative and support

► Pilot teams in 2 factories

► Investment in time and coaching

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Expansion started in other factories 2001 - 2003

► WCM global office established

with WCM Champions and

Master Pillars

► Extensive training and

coaching programme

established

► WCM Champions moved to Clusters

► Factories start delivering consistent results

Stabilization Phase 2004 – 2009

► Factories delivering breakthrough results

► Teams and factories becoming self driven

► Building on continous improvement to

drive innovative solutions

Progress and Evolution 2009 – 2014

WCM Principles

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

Involvement

Engagement and

Self-fulfillment

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75

21

51

2003 2004 2005 2006 2007 2008 2009 2010 2002 2001 2000 1999

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 2010 2002 2001 2000 1999

100

2015

41

- 59%

2015 2015

100 100

- 79%

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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

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Ambition to cover whole business

Plan

Technology Development

Product Development

WCM Level 1 Factory Operational Excellence

WCM Level 2 Integrated Supply Chain

WCM Level 3 Extended Supply Chain World Class Business

SUPPLY CHAIN

INN

OV

AT

ION

CH

AIN

Customers Suppliers Source Make Deliver

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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!

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

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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!

TPM level 3 – Case study

Tetra Pak Production d.o.o.

Gornji Milanovac, Serbia

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TPM Journey in Gornji Milanovac Factory

TPM Excellence

TPM

Consistency

TPM Special

TPM Advanced

Special

TPM

World Class

•250 employees

•350 customers worldwide

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TPM - The Three Levels

Supply Chain

Inn

ova

tio

n C

ha

in

Customers

and

Consumers Suppliers Source Make Deliver

Plan

Technology Development

Product Development

OU

R

FO

CU

S

TP

M

LE

VE

L

TPM Level 1 Factory Operational Excellence

Production Excellence by

learning and mastering TPM

tools and techniques

TPM Level 2 Integrated Supply Chain

Defending & Strengthening

Competitive Position

through flexible

& efficient Supply Chain

TPM Level 3 Extended Supply Chain

Zero Loss Company by

Innovative TPM Activities

Cost

Aim

s

Reduce Production Cost Reduce Total Product Cost Improve Overall Cashflow

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TPM Level 1 – Factory Operational Excellence

Key Word Key Concept Key Activities

People •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

CHALLENGES

•Low production volume

•Not recognized globally

•Employees mindset inherited from past

•Non relialable data collection system

•Immature business proceses

•Low equipment reliability

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

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Key Word Key Concept Key Activities

People •Cooperation

•Engagemnet

•Leadeship

•Attitude

•Skill loss focus

•Employee satisfaction

•Leaders promotion

•Mutltiskill development

•PM+AM+QM+FI = One team

•Reward and recognition

•ET pillar maturity

•Self learning

Process •Puchasing, logistic, design, customer

service

•QCD performance at supply chain

•Attack invisibile losses

•Enhance capabilities

•New service to customer

•Lead time reduction

•Offer new service to customer

•Flexibility Improvement

•Loss Eradiction & Prevention

•Infinity Loop

•Sustainability –standardization

•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

Organization •Integrated supply chain

•New product development

•Business Process Improvement

•From survival to winning strategy

•Cross Pillar Activity

•Information system

•VSM, Makigami

•KMI-KPI-KAI

•From Pillar to Process Team

•Benchmarking

TPM Level 2 – Integrated Supply Chain

CHALLENGES

•Economic crisis in the region

•Increased competition

•Pressure for cost reduction

•Request for Lead time reduction

•Capability for new product deployment

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

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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

TPM Level 3 – Extended Supply Chain

•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

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

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TPM – Level 3 Support Customer Competitivness

Creative TPM

Premium Print Technology Development

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REALITY Help customers to attract end consumers to

make the RIGHT CHOICE

product

No time for being rational choosing what feels right

How to catch the consumer´s attention?

SECONDS

Make Customer Package Absolute Winner

Turn consumer´s heads

1

Capture intagible values

Emotional connection Flavour Colour Taste Freshness

Good package design allows

brand owners to

gain shelf impact and

create sales opportunities

Premium Print Technology Development using Creative TPM

Enable Customer Competitive Advantage

Processes One Team

Early Product

Management

Methodology

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

Specification

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Factory spread TPM knowledge to other stakeholders

Design Phase – TPM Advanced Tools Application

Base Material

Paper Ink

R&D

Suppliers Factory

Repro House

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Thorough application of EM route to ensure vertical start up

Technology Development

α

α+β > 91%

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Sustainable technology achieved

Technology Industrialization

•New product specification released

•QA QM Matrix

•PM-AM Plans

•MP system updated

•Training to other Tetra Pak factories

High value with no cost impact

Enhancing Customer brand with high quality printing

Customer expectations achieved

Differentiation without equipment investment

Enhance product appeal in the point of purchase

Improve communication power

Freedom for creative design and branding

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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

Business implications Make the difference

Innovative TPM as Tool for Competitiveness Transforming Challenges to Opportunities

Operational Excellence

secures the present.

Innovation Excellence

secures the future.

People & Process

Equipment

Society

Technology

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

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

WCM – The Culture Change

Machine

change

People

change

Culture

change

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