How Tetra Pak drives Lean activities through WCM with a customer-oriented focus, while adapting to the new normal
Lean Café Dec’20
WCM / 2011-11-29 / 1 Who we are?
Emma Årman Christian Tage WCM Champion WCM Champion
15 years of experience 15 years of experience working with continuous in TPM and Lean within improvement (Lean, Six Tetra Pak. Sigma and TPM)
Carlos Ortiz Dirk Desiron OpEx & WCM director System Architect 10-15 years experience in Global Automation and Continuous Improvement (TPM) digitalization expert Combined with Production, Maintenance, Project Management roles among others
WCM / 2011-11-29 / 2 Remember the story?
WCM / 2011-11-29 / 3 Tetra Laval group
DeLaval
Sidel
Tetra Pak
WCM / 2011-11-29 / 4 End to end solutions From farmer to consumer
WCM / 2011-11-29 / 5 OUR VISION We commit to making food safe and available, everywhere
WCM / 2011-11-29 / 6 Social Responsibility
We are committed to social responsibility UN Global Compact including responsible sourcing, Principles Health for ourselves and our suppliers. & Safety − Corporate Governance Assurance system − Code of business conduct − Supplier audit programme Human & Labour Rights − Membership of the Supplier Ethical Data Exchange (SEDEX) Responsible Sourcing
Business Ethics & Environment
WCM / 2011-11-29 / 7 One company, three business
Services WCM / 2011-11-29 / 8 Packaging portfolio
Tetra Gemina® Aseptic Tetra Brik® Tetra Top® Aseptic Edge
® Tetra Prisma® Aseptic Tetra Brik Aseptic Tetra Wedge® Tetra Brik® Aseptic Aseptic Slim Leaf
Tetra Fino® Aseptic Tetra Brik® Aseptic Tetra Top® MiniV Base Crystal Tetra Evero®
® Aseptic ® Tetra Classic Tetra Rex Tetra Recart® Aseptic
WCM / 2011-11-29 / 9 Processing categories
DAIRY ICE CREAM BEVERAGE
CHEESE PREPARED FOOD POWDER
WCM / 2011-11-29 / 10 Processing portfolio Core technologies
BLENDING ● MIXING ● DOSING PASTEURIZATION ● UHT TREATMENT
SUGAR DISSOLVING ● CARBONIZATION SEPARATION ● STANDARDIZATION ● HOMOGENIZATION
CURD MAKING ● CURD HANDLING ● FILTRATION CLEANING-IN-PLACE ● ASEPTIC BUFFERING
EVAPORATION ● DRYING ● POWDER HANDLING FREEZING ● MOULDING ● EXTRUSION WCM / 2011-11-29 / 11 Our continuous improvement program
WCM / 2011-11-29 / 12 What is World Class Management (WCM) ? WCM is a culture, our way of working
The philosophy around WCM is based on the principle…
“Energy comes from the whole organization”
…meaning our results come from all employees
WCM / 2011-11-29 / 13 What do we mean with WCM? WCM embraces elements from other methodologies
WCM / 2011-11-29 / 14 TPM: Total Productive Maintenance How do we apply our WCM metodology Infinite loop
Loss Intelligence Loss Eradication Loss Prevention
SEEK
ERADICATE
MAINTAIN
WCM / 2011-11-29 / 15 In WCM we combine two approaches
Kaizen: Continuous Improvements - Suggestions Competitive - Improvement teams Must - Bottom-up approach advantage
PDCA cycles
Innovation - Big jumps Maintain & Improve NEW STANDARD - Big investments
Waste/Loss - Top-down approach PERFORMACE TIME
WCM / 2011-11-29 / 16 L How is our Continuous Improvement Approach Standardization is key
Performance “The electric light did not come from the continuous 3 Innovation improvement of candles” (Oren Harari) Improvements generate new n standards standard
Second Improvement Losses Teams standard 2
First standard Method Losses (Variation due to Standards (eliminate variation): 1 - Instructions lack of standards) - Specifications - Checklists Time
WCM / 2011-11-29 / 17 Our journey from WCM to WCM From Manufacturing to full Business
Technology Development
Plan Customers Suppliers Source Make Deliver and
Consumers Innovation Chain Innovation
Product Development Experience in driving Supply Chain WCM in production, now going into new areas WCM Level 1 WCM Level 2 WCM Level 3 Factory Operational Excellence Integrated Supply Chain Extended Supply Chain
Production excellence by Defending & strengthening Zero loss company via learningWorld and mastering Class WCM competitive position innovativeWorld WCM Class activities Manufacturingtools & techniques through flexible & efficient supply chain Management WCM / 2011-11-29 / 18 WCM history...
WCM First ever ”Global WCM in Capital Leaders” award Starts in Equipment Tetra Pak from JIPM 1999 2007 2016
2001-2003 2014 2018 Expansion to all WCM in Expansion Packaging material Processing to cover factories Solutions full Supply chain
WCM / 2011-11-29 / 19 WCM / 2011-11-29 / 20 Customer oriented focus, while adapting to the new normal
- Lead time reduction initiative
- Remote Factory Acceptance Test (FAT)
WCM / 2011-11-29 / 21 Our business model Capital Equipment Sales
Service Sales
Packaging Material Sales
CT/2020-12-02 / 22 The Problem...
Lead time +20% Volume +25% Customization +20%
*Illustrative figures CT/2020-12-02 / 23 The process
Packing Order Commissio Engineering Procurem. Production Test and Clarification ning shipping
► Engineered to order ► 80% are customized solutions ► Mix of outsourced and internally produced parts
CT/2020-12-02 / 24 Identify the critical path...
Organization A
Organization B
Critical Path Organization C
Activity 1 Activity 6 Slack Activity 2 Activity 3 Activity 4 Activity 5
5 days 5 days 15 days 10 days 10 days 35 days 45 days
► Drive improvements on the critical path ► Understand Slack
CT/2020-12-02 / 25 Understand the Process – Value Stream Mapping
Production Control
Vessels BU LF Line Mgmt
Control Panel
Market Company Pumps Market Company / Customer warehouse / etc.
others
Assembly LIM
Clarification Process Design Automation Design Electrical Design Purchase Order Procurement DHM Goods Receipt TEST Packing Including tanks & Tetra Pak Warehouse C/T= 19 days vessels VA = x days FTE= x LEVELLING C/T= 7 days C/T= 18 days C/T= 12 days C/T= 6 days C/T= 4 days C/T= 20 days Assembly DHM C/T= 34 days C/T= 4 days VA = x days VA = x days VA = x days VA = x days VA = x days VA = x days VA = x days FTE= 1 PM FTE= x FTE= x FTE= x FTE= x Procurement Main FTE= x FTE= x Module Control Panels Documentation Mechanical Design included here C/T= 18 days C/T= 23 days VA = x days FTE= x Procurement Aut. Assembly Main Homogeniser C/T= 11 days C/T= 21 days Module Dampers VA = x days VA = x days FTE= x FTE= x
C/T= 20 days C/T= 12 days VA = x days Procurement LIM FTE= x Assembly Aut. Homogeniser Dampers Best scenario delivery time (incl. levelling) C/T= 27 days is around 19-20 weeks. Exlcuding waiting C/T= 12 days VA = x days time handing over to other resources. Critical path FTE= x
9 days Julia Loschkin/2020_04_14 / 26 7 days 15 days* 1 day * 5,5 days * 4 days * 17 days* 3 days 25 days* 9 days * 4 days* 100 days 4M – Fishbone analysis
Method Man
Delivery Time Targets Expand standard portfolio Problem Statement Procurement Test Area Capacity Long Lead time material Improve capacity in our bottleneck Material Machine
CT/2020-12-02 / 27 Test Area Capacity
► Our bottleneck process, with long que of orders.
► First available slot determine our delivery date...
CT/2020-12-02 / 28 Test area capacity…
Assembly SMED – Attacking activities on the Hours critical path. What can be performed • Loss deployment before entering the test area? • Loss eradication • Loss prevention
Losses
Machine Footprint – 23% of total Test capacity is lost because of machines requiering double testbays.
Dissassembly Machine dissasembly – Move Total time Assembly Test Dissassembly Waiting times entire activity to 2:nd shift.
CT/2020-12-02 / 29 *Illustrative figures Procurement Seek – Understanding of losses, Long leadtime material current process and requirements Number of Materials
196 139 57
L/T > 15 days Stock Critical
Eradicate Prio 1: Improve lead time Prio 2: Put in stock
Maintain Establish forum between specification owners, Supplier Managment and Production to align
leadtime requirements. CT/2020-12-02 / 30 Delivery Time Targets -Expand std portfolio
DTG 1 DTG 2 DTG 3 <16 weeks 14%* 16 - 18 weeks 3%* On request 83%*
Standard Customized
Median = 28 weeks
*Illustrative figures > 21 weeks <35 weeks
CT/2020-12-02 / 31 Delivery Time Targets -Expand the standard portfolio
What are the most common reasons why we can’t offer a standard leadtime?
1. Non standard layout 2. Pressure vessel other than PED 3. Multimode machine
CT/2020-12-02 / 32 Factory Acceptance Test (FAT) with customer
Tetra Pak Lund or Modena Travel Customers
WCM / 2011-11-29 / 33 FAT with remote setup
PC PE Lund & Modena Technical solution/setup Customer
Machines HMI video stream MS Teams
Test engineers video stream MS Teams Internet iPhone 11 equipped with a gimbal
Optional video stream
Iphone MS Teams Displayed at customer site or Computer by using PC, Mac and with MS Teams desktop app
WCM / 2011-11-29 / 34 FAT with remote setup
Live demo
WCM / 2011-11-29 / 35 FAT with remote setup
Global Standard Satisfied customer Continuous improvements
Standard service offering
WCM / 2011-11-29 / 36 Who is better?
Both!
• Hare: • Muscle, big change! • Tortoise: • Consistency, compliance!
I M
WCM / 2011-11-29 / 37 WCM / 2011-11-29 / 38