Fonterra TRACC journey to world class

TRACC

TRACC J URNEYto world class!

CCI The PeopleBehind TRACC

The world’s dairy leaderNew Zealand-based Fonterra is the world’s leading milk processor and dairy exporter, responsible for more than one-third of international dairy trade.

CLIENT TRACC JOURNEY

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TRACC

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Fonterra by the numbers

16 000 EMPLOYEES

140 COUNTRIES

2 000 000 tons of dairy products produced

EACH YEAR




TRACC



Choosing the right framework

In March 2000, Fonterra and its unions jointly adopted TRACC as the framework for its Operational Excellence Programme.

TRACC




TRACC



1999 • Fonterra legacy company Kiwi Dairies approaches CCI with a view to

deploying TRACC as a framework to assist them with improving operational

performance

TRACC Milestones

March

• Kiwi Dairies appoints CCI to assist with TRACC deployment at two pilots: the

Cheese plant and the Milk Collection department at the Whareroa site in the

Taranaki region

• The group’s CI initiative is named ‘Manufacturing Excellence’ (later to become

‘Operational Excellence’)

• The Cheese plant is identified as a pilot due to sporadic quality issues

• At Milk Collection, the initial focus is on the fleet maintenance workshop.

Some of the objectives of this pilot include: more efficient fleet and route

planning, and the reduction of maintenance and running costs

2000-2002




TRACC



• To get the ball rolling at Milk Collection, a TRACC Set-up Time Reduction

blitz is introduced with three objectives:

1. Increase on-the-road capacity of its tanker fleet at any given time

2. Streamline maintenance processes to ensure efficiency gains are

sustainable

3. Maintain the tanker fleet’s reliability and total availability rates

TRACC Milestones

• Within two years of TRACC deployment, the Cheese plant increased OEE by 24.8% and achieved

an impressively positive ROI (nearly 57 times payback on investment)

• On Product Time (OPT) increased from 76% to 84.5%

• As a result of the blitz activity, the maintenance workshop at Milk Collection achieved an 87.5%

reduction in time spent off the road for maintenance, a 94% reduction in the distance walked

during the service, a 65% reduction in service time, and a truck availability rate of 99%

HIGHLIGHTS

March 2000-2002




TRACC



TRACC Milestones

2005 • Widespread rollout of TRACC commences

• Business plans, including practice maturity targets, are introduced

2003 • Following the successful conclusion of the pilot

projects, Manufacturing Excellence is rolled out

nationally to 25 sites as well as to all 10 factories at

the original site over a two-year period

• The initiative is renamed ‘Operational Excellence’




TRACC



2007• A kaizen blitz is initiated at Fonterra subsidiary, Canpac, to improve

On-Product-Time (OPT) performance on Line 4 can assembly

• The Operational Excellence initiative yields some impressive results at

Fonterra’s Te Rapa site – Te Rapa is responsible for nearly 20% of Fonterra’s

whole and skim milk powder production

TRACC Milestones

HIGHLIGHT• The kaizen blitz results on Canpac’s Line 4 indicated that changeover times could be cut by half

over time, which meant the improvement target of 30% had been exceeded

• Te Rapa achieved a record production of cream cheese, up 3% from the record set the year

before

HIGHLIGHTS




TRACC



TRACC Milestones 2010

• The TRACC business performance improvement approach is now deeply

embedded within Fonterra manufacturing operations as Operational

Excellence, and the next phase of building an integrated and defining

business system begins

• Rebranded as ‘The Fonterra Way’, the initiative becomes the framework for

the fully internalised approach to all work

2015 • 15 years on, the journey that started with two small pilots in Taranaki in 2000 is

declared a resounding success

• CCI is immensely proud to have worked closely with Fonterra since 2000 in building its

capability in Operational Excellence, proudly known today as The Fonterra Way

There can be no doubt that our plants present better since the

introduction of Manufacturing Excellence (TRACC).

— Brent Taylor, former General Manager, New Zealand Manufacturing, Fonterra

“ ”




TRACC



CCI The PeopleBehind TRACC

The TRACC framework helps organisations build standardised and integrated

good practice and performance capacity across their Plan, Source, Make and

Deliver functions. Simultaneously it accelerates their collaboration and alignment

capacity to build world class end-to-end value chains enabling the organisation

itself to become the ultimate source of sustainable competitive advantage.

TRACC

®

ONESOLUTION TO ACHIEVE YOUR IMPROVEMENT STRATEGY

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Visit http://traccsolution.com/resources/integrative-improvement/ to find out how an integrative improvement approach can help deliver superior

results for your organisation.

Copyright © 2016 CCI (Pty) Ltd All rights reserved TRACC, its logo, and Integrative Improvement System are trademarks of CCI.

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Fonterra TRACC journey to world class

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