End to End Process Control for Total Operational Excellence

Total Operational Excellence Conference 2012

Lis MannesFriday August 24th 2012

AGENDA

• Food for Thought

• Aligning the operational strategy to business strategy– Organise to win– Multi Site Engagement

• Creating Sustainable Operational Advantage

Food For Thought

Australian Landscape

16 Manufacturing Sites in Australia(Further 3 in NZ)

Tip Top Australia Distribution Network

Tip Top has one of the most extensive distribution networks in Australia, delivering fresh bread daily across the whole of Australia

Number of daily serviced customer drops 18,000

Furthest Customer serviced daily within a State2,500 kms one way daily –

Brisbane to Woolworths Weipa North Qld

Number of loaves of bread picked &delivered per week

8 million

Kms travelled per week by bread trucksc 850,000 kms

Number of Depots Nationally102

Longest Feeder Trip into depotBrisbane to Townsville 2,880 klms

return trip, 6 days PW

Alignment of Operational Strategy to Business Strategy

At The Table

• Engagement

• Education – More than just capital investment– Not just about cost reduction

• Delivering on the consumer promise

• Long term sustainability

Alignment of Operational Strategy to Business Strategy

EXPLICIT

Alignment of Operational Strategy to Business Strategy

IMPLICIT

Fuel for Growth

Asset CareSocial and Ethical

requirementsLegal & Regulatory

complianceRisk Management

Alignment of functional areas Production, Engineering,

Supply Chain, Procurement,Quality, Safety

Alignment of Regions with the Centre

Plan On a Page Keeping it Simple & Transparent

Direct Cascaded Link

Appropriate Best Practice linked

Clarity of KPI Measures

Collaborative Development

Organise to WinBuilding Field & Central Alignment Initiative Title

2012 Initiative from the Plan on a Page

Effective Safety Programme

Quality Assured Every Day

Head of ANZ Engineering Objectives

Head of ANZ Quality & Technical DevelopmentObjectives

Head of ANZ Supply Chain DevelopmentObjectives

Head of ANZ Quality & Technical DevelopmentObjectives

Head of ANZ Supply Chain DevelopmentObjectives

Head of ANZ Engineering Objectives

Objectives

Top 3 Goals Addressed

SMART Objectives

Safety / P&P / Sustainability

Regional Operations ManagersObjectives

Quality / Sustainability /

P&P

Regional Operations ManagersObjectivesCollaborative Creation

Individual Accountability

Joint responsibility

Initiative DetailsEstimated

Saving% Project

Completion

Strategic Initiative : Building Capability

XXX • XXX $ %

Strategic Initiative : Supply Chain Development

$ %

$ %

Strategic Initiative: Quality Assured Every Day

Delivering on Consumer promise through process control

• Trusted Product delivery• Systems alignment• Process waste reduction to external bench

$ %

Total $

Inflation $

Strategy Realisation Schedule

Leadership, Alignment &

Systems based

Project Based Analysis

& Delivery

Multi Site Deployment

Creating Operational Advantage

Through an umbrella process delivery framework

What does good look like?

Simple but Limited Model

Site A

Site B

Site C

Multi SiteChallenges

• Many dependent processes and systems to align

• Sites move at different paces, different history, capabilities

and challenges

• Resources often limited and have to be deployed selectively

Q • How do we objectively understand where our sites are?

• How do we harness achieve best practice transfer between locations?

• How do people understand the end game and what good looks like?

So How Do You Express the Journey?

One option is to redevelop every year

Year 4 POP

Year 3 POP

Year 2 POP

Year 1 POP

Great for capturing new project based activities

Ensures alignment with a changing business strategy

More challenging for process deployment and best practice implementation

Team can’t see where they are going

Creating Clarity & TransparencyIdentifying what good looks like!

Level 1

• Foundation

Level 2

• Control

Level 3

• Improve

Needed an additional frame of reference

Individual journeys for each key process & metrics of achievement

Collaboration around Creation – Team development

Asset Care Best Practice

Lean Manufacturing Tool DeploymentLevel 1

• Foundation

Level 2

• Control

Level 3

• Improve

Level 4

Maturity Curves - Spider / Radar diagrams

Becoming increasingly commonVisual and easy to understand

Compare and TrackPeople development

Supply Chain Excellence

Innovation

Process control

CI tools deployedCost control

Asset Care

Quality Assurance

HSE

0%

20%

40%

60%

80%

100%

Site A : Level 1

People development

Supply Chain Excellence

Innovation

Process control

CI tools deployedCost control

Asset Care

Quality Assurance

HSE

0

5

Site ASite BSite C

Compare Several Sites

Our Alignment Model

• Cascade from Board to Shop Floor

• Simplicity

• Collaboration & TransparencyFunctionsRegions to Centre

• Frameworks for

In Year & The Journey

• Strategy realisation

Q & A