Food Safety & Quality Journey

Britannia Industries Ltd.,

N. R. Selvaraj

General Manager & Head Corporate Quality

CII Food Safety & Quality Summit, 12th Oct, 2012

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Agenda

Who are We ? What we wish to Be ?

The Core and the Adjuncts

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Who are We ? What we wish to Be ?

The Core and the Adjuncts

Agenda

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With over 90 years of heritage, Britannia is amongst the oldest food companies in India.

Today it is a $ 1 billion strong company with consumer offerings that span bakery and dairy.

It is in the business of making enjoyable food healthy and accessible. An effort consumers acknowledge by voting Britannia the most trusted food brand in India

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Key Milestones

Over 100 years of heritage, serving a billion Indians

1983

R 1,000 MMUSD 20 MM

1999

R 10,000 MMUSD 220 MM 2003

R 15,000 MMUSD 326 MM

2012

R 55,000 MMUSD 1Bn

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Set Up

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Purpose

Business Vision

Business Goals

Help people enjoy life – thru healthy snackingMake enjoyable food, including beverages, healthy &

accessible to all people, any time, anywhere - everyday

Make Britannia the favorite food brand of a Billion Indians & the best FMCG to work for & partner with.

Transform Britannia from Bakery Products to Healthy Snacks -with an international presence

Secure #1 or #2 position for all our brands in chosen value-spaces & markets.

Create a business model that is hard to replicate

By March 2016:

Double the top line and bottom line At least one Britannia brand purchased and consumed by 50% of all

Indian households once a week

Purpose, Vision and Goals

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Health and Wellness Delight and Lifestyle

Kids Nutrition Adult Health Khatirdari Snacking Indulgence

Dairy & Breakfast Cereals

Our products

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TECHNICALCOLLABORATIVE/

LEARNING PARTNERS

ON GROUND PARTNERS

RESOURCE PARTNERS

ADVOCACY PARTNERS

Building awareness and creating platforms for action through partnerships

Britannia Nutrition Foundation

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• No. 1 Food Brand

• No. 1 Food FMCG

• No. 1 Trusted Brand

• No. 1 India’s most respected companies

• No 5 FMCG

Britannia : India’s Most Trusted Food Brand

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2010: IMC Ramakrishna Bajaj National Quality Award:

Performance Excellence in Manufacturing category forCorporate Office, Uttaranchal and Sunandaram Foods

2011: CII Food Safety Award for Delhi Factory and Merit Certificate for JBM Gwalior on best practices in Food Safety

2011: IMC Ramakrishna Bajaj National Quality Award :

Highest Award in Manufacturing Excellence for CorporateOffice, Delhi , JBM, Uttam Foods and Paramount

Asia Pacific Quality Award in Manufacturing Category –Best in Class Award - to receive on 14th Oct 2012.

Quality Awards

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• Exporting to more than 70 countries• Manufacturing facility at Dubai and Sohar

Our Presence

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90 Manufacturing locations

3300 Distributors

3.6 Million Retail outlets

Our Presence

90 Manufacturing locations

3300 Distributors

3.6 Million Retail Outlets

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- Benchmarking our processes to achieve business excellence.

- Building individual competency and organizational capability to create a culture of excellence.

- Integration of initiatives to achieve the business goals

Building sustainable advantage by developing superior business processes in the organization

What we want to be

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Who are We ? What we wish to Be ?

The Core & the Adjuncts

Agenda

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90 Manufacturing locations

3300 Distributors

3.6 Million Retail outlets

Quality challenge

• Diversified Manufacturing Foot print

• Diversified product portfolio.

Product challenge

• Product shelf life• Product vulnerability to

handling• Number of Brands Sub

brands, Varieties and SKU’s

Challenges in Standardization

90 Manufacturing locations

3300 Distributors

3.6 Million Retail Outlets

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THE CORE Quality

Competence

Q Next

P Next

I NextE Next

B Next

Quality Standardization

Process Standardization

(Operational Excellence)

Cost Optimization

Best Practices in Information

Management

The Core & The Adjuncts

Practices in Environment Management

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• Food Safety & Quality• EHS• Other Company policies

Policy Level

• Operational Excellence• People CompetencyStrategic Level

• Audits & Compliance• Documentation• Process compliance

Quality Process Standardization

• CQI• Complaints• Q Score

Key Quality Metrics

• ISO 22 K• BRC• EHS

Certification

• Business Excellence Quality Awards• Food Safety Awards

External Benchmarking

Core Competency

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Quality Non-

Negotiables

Quality Enablers

Ways of Working

Metrics &Reporting

Britannia’s initiative to Transform its Consumer Delivered Quality to the Next Level speedily, dramatically and sustainably

Q NEXT

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Consumer Expectations

Product Parameters (Quality Non-negotiables)

Standardization of Process Parameters

Standardization ofEquipment Parameters

Standardization ofPractices

Focussed Improvement through people involvement

AM SOP’s

KAIZEN

Application of TPM Pillars – Kaizen & Autonomous Maintenance

Q Next Model

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Competitive advantage through Operational Excellence

Total Productive Maintenance (TPM)

- Raise the consumer delivered quality of products to the next level (Q Next)- Impact Productivity Cost, Delivery, Safety and Morale at workplace

FactoriesPilot initiated at depots

Statistical Quality/Process Control tools of

TQM

- Improve consistency of process and product delivery- Develop competency in using statistical tools to solve a problem

Factories and related functions

Lean Six Sigma

- Improve effectiveness of processes- Develop competency in using practical problem solving methodology

Non-manufacturing & Central functions

Periodic Review by Steering Committee

Challenging National Quality Awards to benchmark processes

P NEXT

Process / Operational Excellence Program

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Information systems to enable capture data at all stages of process.

All workflows have escalation matrix built-in that gets triggered on reaching specified criteria.

Back End Process

Quality Module of

SAP

Vendor Management

Portal

Online Process

Technology Transfer

Processes

Quality Processes

Front End Process

Consumer Complaints

Key Quality Metrics

I NEXT

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Environment, Health and Safety frame work

E NEXT

» EHS policy considering all critical parameters» Development and deployment of Safe Operational Control Procedures» Score card to demonstrate commitment to EHS» Online Incident Management System workflow

EHSPOLICY

BUSINESS AND

LEGAL REQ

RISKMANAGEMENT.

GOALS AND

TARGETS

EHSPLANNING

RESPONSIBILITY AND

ACCOUNTABILITY

TRAININGAND

ASSESSMENT

PRACTICEAND

PROCEDURESEHS TOOLS

CORRECTIVE & PREVENTIVE ACTION

OTHER BUSINESS – OFFICE / PROJECTS / DEPOTS / SALES

PERFORMANCE MANAGEMENT

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E NEXT

Environment Focus: Fuels & Alternate Technology

Direct Gas Fired Oven

Thermic Fluid Oven

IR Technology

Biogas plants

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BIL’s approach towards systemic cost reduction program involving all internal

stakeholders - without affecting Quality.

Achievement • Delivered 4-5% of NSV Savings • Contributing to BIL Operating income and improving competitiveness

Team • Dedicated functional work-streams including multiple regional representatives

The Initiatives

Procurement• Raw material and

Packaging materials • Technical

collaboration and tie up with specialist vendors

Manufacturing• Achieving operational

excellence through cost modeling

• Wastage reduction• LTCP development

and finalization

Distribution• Total cost optimization• Synergy and

integration of verticals• Increasing truck

utilization – Primary and secondary freight

B NEXT

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Ingredient Handling

Batch handling Bulk Handling

Mixing Batch Process Continuous Mixing

Feeding to Packing

MachinesManual Auto Feeding

Air Tight Carton Filling

Manual PanPack Auto Feeding

Secondary Carton Filling

Manual Auto Cartoning

Loading to Trucks Manual Auto-Loading through

Retractable Conveyors

Quality Through Technology: BIL’s focus

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AV

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AV

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Consumer Perceived Quality

Consumer Perceived Quality Assessed for products at different stages of shelf life.

Sensorial Parameters tracked through trained and validated sensory panels.

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Unified Quality Systems

Benchmarking of Quality & Food

Safety Processes

Data & Knowledge Management

Q Score at units for Continuous

improvement

System and Process certifications

Constant Tracking of Consumer Centric

Attributes

Key Achievements

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LEARNING

Not to forget basics of Food Safety.

Documentation is important, but documentation is not all. Documented actions are important.

Why SOPs don’t work.

Make simple SOPs. A complicated SOP that cannot be implemented is as good as not being there.

Food Safety and Quality must be demonstrated. People follow the leader.

Improvements must be made after sustaining previous improvements in an area.

Ego is good for Quality. Bad Quality hurts ego. People like to feel proud of what they produce.

People tend to break rules when things are monotonous. There must always be new learnings which will keep them challenged.

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THANK YOU