1. The Challenges of Implementing a Global Safety ProgramCraig Torrance, PepsiCoGlobal Senior ManagerHealth, Safety and Well-being: OperationsCopyright 2011 Rockwell Automation, Inc. All rights reserved.

2. Who is PepsiCo? Largest Food and Beverage Company inSales * ($Bn)North America and DJSI F&B category leader Approx 300,000 employees 19 mega brands (>$1bn) Annual sales of PepsiCo products = $118bn * 800 manufacturing plants globally Consumer tastes, large customer base,market leading = need to move quickly$0 $5$10 $15$20 3. The Challenge in PepsiCo Structure Decentralization and autonomous divisions, sectors,business units and brands Innovation, fast-paced, do-it-yourself culture, meet local tastes Size 300,000 employees, 800 plants Growth Logistics model dictates local manufacturing new plants Diverse supply chain Beverage (CSDs/NCB), Chips, Cookies, Cereals,Dairy products, Juices, Agriculture (corn, potato, dairy) Global reach Operations in more than 99.9% of countries Franchises/JVs Lack of specific technical safety knowledge machine safetyImplementing a global safety program in PepsiCo is verychallenging Copyright 2011 Rockwell Automation, Inc. All rights reserved. 4. Implementing a Global Safety Program: Machinery and Equipment Decision to focus on M&E based on current injury data and foreseencultural benefits NEW: Global M&E safety standard Massive amount of existing equipment $5bn annual spend on new equipment Different engineering work processes in each business low machine safety culture and knowledge Copyright 2011 Rockwell Automation, Inc. All rights reserved. 5. The Roadmap LeadershipStrategy TacticsSustain Take others with SIMPLIFY SIMPLIFY Integration of you Set clear roles, Local resources and Strategic plan responsibilities and implementationprocess Objectives accountabilities plans Audit Milestones Create metrics SMART goals Review Communication Communicate Ownership transferPerformance Plan Move from Corporate tactical Map to cultural Set the tone Corporate to planmaturity modeldivision/sector Scorecards & AOP Funding Review and adjust 3rd party supportSIMPLIFY too often a global program gets lost in the details Copyright 2011 Rockwell Automation, Inc. All rights reserved. 6. Leadership and Commitment Achieving alignment before roll-out is critical to success Commitment from CEO level non-starter without CEO and 5 divisionCEOs + HR EVP Health and Safety Executive Council 6 Global Operations Senior Vice Presidents - 10 Health and Safety Leadership Council - 12 Engineering Councils (VP and Director Level) - 40 Division and sector ideation - 30 All in all over 100 leaders needed to be aligned and on-board Timeframe to do this 9 months 1st phase of implementation is to COMMUNICATE the SLT commitment Copyright 2011 Rockwell Automation, Inc. All rights reserved. 7. Leadership and Commitment What does leadership and commitment look like?Copyright 2011 Rockwell Automation, Inc. All rights reserved. 8. Strategy Be able to articulate the strategy simply think elevator pitch MESS strategy was in 3-parts 1) New Equipment 2) Existing Equipment 3) Internal Capability Build Know where the program sits within the broader initiatives H&SPolicy, GEHSMS, EHS Standards, Performance withPurpose, Sustainability Be clear on objectives, milestones, ownership, timeline External support needed for all 3 strategic elementsCommon not Identical Copyright 2011 Rockwell Automation, Inc. All rights reserved. 9. Focus on a standard PepsiCo standard becomes reference point for the program Tools to support program based on standard Standard does NOT include: Engineering guides, specifications,example wiring diagrams, risk assessment templates, explanatorytext, etc. Standard was simplified to what MUST be done (14 pages) withsupport guides to expand and provide greater coverage (100 pages) Simply Use of standard to arbitrate discussion and steerprogram Copyright 2011 Rockwell Automation, Inc. All rights reserved. 10. Tactical Plans New Equipment All new equipment must be compliant by 1st Jan 2012 All new machines must have a risk assessment completed by OEM andreviewed by PepsiCo or assigned 3rd party Internal stage gate processes, RACI, EWPs, etc to be implemented byall divisions (not identical) RFQs, RFPs, MPAs, Payment Schedules, Project documentation andspecifications to be updated All Project Managers, Engineering Managers, Procurement and H&Smanagers involved in new equipment projects to be introduced Copyright 2011 Rockwell Automation, Inc. All rights reserved. 11. RACI for EWP safety integration New Equipment Project Team EWP RACIPT H&S site SSM Task Preparation of general safety requirements for1Project Concept / FeasibilityR CI project2Issue Standard/specsCommunicate requirements as part of RFxRA3Bid ReviewReview safety design info with supplier. R C Ensure language in PO to meet PEP safety standard,4Award PO RI A local legislation and local standards. Complete the Risk Assessment and Safety Design5Detailed DesignR R C Review -6Equipment Build7AcceptanceComplete FAT or supplier safety sign-off testing R A8Install/Debug Complete final install safety inspection R R A Hand over equipment safety manuals, risk9Production / Hand over R I RI assessment, residual risk to site H&S manager11 12. Tactical Plans Vendor Engagement 4 x 3-day roadshows US, Europe, Latin America, Asia Top M&E suppliers that constitute 80% of capital spend (120 supplier) Broader communication to 6500 total capital suppliers Supplier tools safety packets, example Risk Assessments, trainingmaterials and expectations issued to suppliers Positive affirmation from suppliers on meeting standard, cost/deliveryimpact and timeline. Best way to educate suppliers is face-to-faceCopyright 2011 Rockwell Automation, Inc. All rights reserved. 13. Tactical Plans Existing Equipment Simple Pilot Study sample linked to funding and AOP Every piece of equipment MUST be risk assessed with 3 years Timelines to remediate vary by division at least a10 year program Online XPERT tool to share common solutions and approaches. Global Risk Assessment databaseMajor concern is funding upgrades for existing assets. All projects that touch an existing machine must bring it up to the standard - Project BundlingCopyright 2011 Rockwell Automation, Inc. All rights reserved. 14. Existing Fillers 15. Tactical Plans Capability Build Objective - build top line capability to be able to identify and askquestions about non-compliance. Utilize 3rd parties for in-depth discussion and validation and trainingdelivery (Rockwell) Locally owned Centrally developed training materials Competence mapping Sustainable program requires internal capability Copyright 2011 Rockwell Automation, Inc. All rights reserved. 16. Sustain Formal Audit Program in 2012 Set up XPERT machine safety community and working groups Map to PepsiCo culture maturity model Continual vendor engagement and support Utilize external partners Annual Equipment Supplier declaration Tracking of machinery and equipment incidents Copyright 2011 Rockwell Automation, Inc. All rights reserved. 17. Lessons learned Leadership commitment and over-communication is IMPERATIVE SIMPLIFY machinery safety can be technical, engineers can over-complicate. Expect a lot of questions Why? How? Who? When? Allow businesses to take ownership and work out details withindesignated framework Corporate role moves from strategy to setting expectation to support In order to be successful there needs to beClear messaging from leadersSteady drumbeatRealistic and achievable goalsAccountability: Regular reviews and scorecardComplex problems sometimes need simple solutions Copyright 2011 Rockwell Automation, Inc. All rights reserved. 18. Questions?Copyright 2011 Rockwell Automation, Inc. All rights reserved.