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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Tetra Pak vision
We commit to making
food safe and available,
everywhere
Converting factories produce printed rolls of packaging
material
Finishing &
Prepress & Coating &
Material
Printing Lamination
Treatment
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Five Geographic Clusters
Europe & Central Asia
Greater China
32 Converting Factories
23,460 Employees
10,9 billion € sales in 2014
Products in >175 countries
Greater Middle East & Africa
South Asia, East Asia & Oceania
North, Central & South America
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Everything Started with one Idea….
and Belief that
Ruben Rausing
“A package should save more than it costs”
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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
Stabilization Phase 2004 – 2009
► WCM Champions moved to Clusters
► Factories start delivering consistent results
Progress and Evolution 2009 – 2014
► Factories delivering breakthrough results
► Teams and factories becoming self driven
► Building on continous improvement to
drive innovative solutions
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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Break through results in key areas
Consolidated Global Results
Waste (Index 100) Claims (Index 100)
100 100
100 100
80
- 59% - 79%
75
68
51
41
21
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2015 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2015
2015 2015
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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
INNOVATION CHAIN Technology Development
Plan
Suppliers Source Make Deliver Customers
Product Development
SUPPLY CHAIN
WCM Level 1 WCM Level 2 WCM Level 3
Factory Operational Excellence Integrated Supply Chain Extended Supply Chain
World Class Business
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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
Tetra
TetraPak
Pakfactory Serbia––World
factoryininSerbia WorldClass
ClassAward
Award2015
2015
First Tetra Pak factory
to receive the
World Class Award!
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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 TPM TPM Advanced TPM
TPM Special
Excellence Consistency Special World Class
•250 employees
•350 customers worldwide
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TPM - The Three Levels
Technology Development
Innovation Chain
Plan
Customers
Suppliers Source Make Deliver and
Consumers
Product Development
Supply Chain
TPM Level 3
LEVEL
TPM Level 1 TPM Level 2
TPM
Factory Operational Excellence Integrated Supply Chain Extended Supply Chain
Production Excellence by Defending & Strengthening Zero Loss Company by
FOCUS
OUR
learning and mastering TPM Competitive Position Innovative TPM Activities
tools and techniques through flexible
& efficient Supply Chain
Aims
Cost
Reduce Production Cost Reduce Total Product Cost Improve Overall Cashflow
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TPM Level 1 – Factory Operational Excellence
TARGET
•Increase production operation capabilities to
contribute to business results CHALLENGES
•Improve production QCD performaces •Low production volume
•Create safe and pleasent working environment •Not recognized globally
•Improve ability to manage development of new •Employees mindset inherited from past
products and equipment •Non relialable data collection system
•Immature business proceses
•Low equipment reliability
Key Word Key Concept Key Activities
•Motivation •Safe and pleasent work environment •Risk level reduction
People •Involvment •Skill gap reduction •Training, Practising
•Competencies •Slogan – No Limit for Our Improvements •Mindset change
•AM introduction •PM + AM = One team
•Equipment Effectivness •Pilot production process-line •Basic metodolghies and tools – Pilot teams
Process •Basic Capabilities •Loss Intelligence & Reduction •Gemba approach
•QCD performance at production •Bottleneck attack •Reactive to preventive
•Prioritization
•Driving strategy •Teams – small group activity •Survival strategy
Organization •Steering Comittee •Collaboration •KPI Introduction
•Company Management Support •Internal benchmark •Top managemenet involvment
•System development •Communication
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TPM Level 2 – Integrated Supply Chain
TARGET
•Enhance production operation capabilities to
contirbute to business results
•Establish and improve QCD performances in CHALLENGES
integrated supply chain •Economic crisis in the region
•Improve productivity and flexibility through lead •Increased competition
time reduction •Pressure for cost reduction
•Request for Lead time reduction
•Capability for new product deployment
Key Word Key Concept Key Activities
•Cooperation •Skill loss focus •PM+AM+QM+FI = One team
People •Engagemnet •Employee satisfaction •Reward and recognition
•Leadeship •Leaders promotion •ET pillar maturity
•Attitude •Mutltiskill development •Self learning
•Puchasing, logistic, design, customer •Lead time reduction •Customer satisfaction survey
Process service •Offer new service to customer •New service - Repro Hub Development
•QCD performance at supply chain •Flexibility Improvement •Advanced tools, Flying setup
•Attack invisibile losses •Loss Eradiction & Prevention •Preventive to predictive
•Enhance capabilities •Infinity Loop •Perfect execution – rigorous method application
•New service to customer •Sustainability –standardization •Low Cost Automation, Poka Yoke, DMS
•Integrated supply chain •Business Process Improvement •Information system
Organization •New product development •From survival to winning strategy •VSM, Makigami
•Cross Pillar Activity •KMI-KPI-KAI
•From Pillar to Process Team
•Benchmarking Public
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TPM Level 3 – Extended Supply Chain
TARGET
•Sustain and improve capabilities of the
production operation processes
•Establish QCD performances in R&D •CHALLENGES
department and extended supply chain •Deployment of advanced technologies and
•Create additional value to customer services
•Enhance social responsibility •Support Customers Competetivness
•Involvement of R&D in WCM programme
•Manage high complexity
•Product and service quality beyond boundaries
•Further cost optimization
Key Word Key Concept Key Activities
•Self actualization •High performance teams •AM step 7
People •Decison making – participative management •From operator to innovator •Soft skill development
•Self management
•Innovation – think outside the box •Zero Loss System •CBM, RCM, SPC implementation
Process •Cretivity •New products development •Zero Touch Machine
•Optimization •Cost effective equipment upgrade •Low cost approach
•Complexity management system •Stock management
•New technology and products development •Customer and supplier involment in R&D •Technology innovation
Organization •Common agenda with customers •Challenge existing business process •New businness process development
•Company prosperity •Proactive approach •Support to central organization
•Own TPM program •Spread TPM Philosophy •WCM & Engineering integration
•Social responsibility •TPM to Supliers & Customers
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TPM – Level 3
Support Customer Competitivness
Creative TPM
Premium Print Technology Development
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REALITY
product
Help customers to attract end consumers to
make the RIGHT CHOICE
How to catch the consumer´s attention?
No time for being rational choosing what feels right
SECONDS
Turn consumer´s heads
Make Customer Package Absolute Winner
Good package design allows
brand owners to
gain shelf impact and
create sales opportunities
Capture intagible values
Emotional connection 1
Flavour
Colour
Taste
Freshness
Enable Customer Competitive Advantage
Premium Print Technology Development using Creative TPM
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
Early Product Processes
One Team Management
Methodology
Specification
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Design Phase – TPM Advanced Tools Application
Factory spread TPM knowledge to other stakeholders
Factory Suppliers
Base Material
Paper Ink
R&D Repro House
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Technology Development
Thorough application of EM route to ensure vertical start up
α
> 91%
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Technology Industrialization
Sustainable technology achieved
•New product specification released
•QA QM Matrix
•PM-AM Plans
•MP system updated
•Training to other Tetra Pak factories
Customer expectations achieved
Enhancing Customer brand with high quality printing
Enhance product appeal in the point of purchase
Freedom for creative design and branding
Improve communication power
High value with no cost impact
Differentiation without equipment investment
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Business implications
Make the difference
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
Innovative TPM as Tool for Competitiveness
Transforming Challenges to Opportunities
People & Process
Equipment
Technology
Society
Operational Excellence Innovation Excellence
secures the present. secures the future.
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WCM – The Culture Change
Culture
change
People
change
Machine
change
“If you focus on results, you will never change.
If you focus on change, you will get results.”
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