How Tetra Pak drives Lean

activities through WCM with a

customer-oriented focus, while
adapting to the new normal

Lean Café
Dec’20

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Who we are?

Emma Årman Christian Tage

WCM Champion WCM Champion

15 years of experience 15 years of experience

working with continuous in TPM and Lean within
improvement (Lean, Six Tetra Pak.
Sigma and TPM)

Carlos Ortiz
Dirk Desiron OpEx & WCM director
System Architect
10-15 years experience in
Global Automation and Continuous Improvement (TPM)
digitalization expert Combined with Production,
Maintenance, Project
Management roles among others
WCM / 2011-11-29 /2
Remember the story?

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 Tetra Laval group

DeLaval

Sidel

Tetra Pak

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End to end solutions
From farmer to consumer

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OUR VISION
We commit to making food safe
and available, everywhere

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Social Responsibility

We are committed to social responsibility UN Global

Compact
including responsible sourcing, Principles
Health
for ourselves and our suppliers. & Safety
− Corporate Governance Assurance system
− Code of business conduct
− Supplier audit programme Human &
Labour Rights
− Membership of the Supplier
Ethical Data Exchange (SEDEX)
Responsible
Sourcing

Business
Ethics &
Environment

WCM / 2011-11-29 /7
One company, three business

Services WCM / 2011-11-29 /8

 Packaging portfolio

Tetra Gemina® Aseptic Tetra Brik® Tetra Top®

Aseptic Edge

Tetra Prisma® Aseptic Tetra Brik®

Aseptic
Tetra Wedge®
Tetra Brik®
Aseptic
Aseptic Slim Leaf

Tetra Fino® Aseptic

Tetra Brik® Aseptic
Tetra Top® MiniV Base Crystal Tetra Evero®
Aseptic
Tetra Rex® Tetra Classic®
Tetra Recart®
Aseptic

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Processing categories

DAIRY ICE CREAM BEVERAGE

CHEESE PREPARED FOOD POWDER

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Processing portfolio
Core technologies

BLENDING ● MIXING ● DOSING

PASTEURIZATION ● UHT TREATMENT

SUGAR DISSOLVING ● CARBONIZATION

SEPARATION ● STANDARDIZATION ● HOMOGENIZATION

CURD MAKING ● CURD HANDLING ● FILTRATION CLEANING-IN-PLACE ● ASEPTIC BUFFERING

EVAPORATION ● DRYING ● POWDER HANDLING

FREEZING ● MOULDING ● EXTRUSION WCM / 2011-11-29 / 11
Our continuous improvement program

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What is World Class Management (WCM) ?
WCM is a culture, our way of working

The philosophy around WCM is based on the

principle…

“Energy comes from the whole organization”

…meaning our results come from all employees

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 What do we mean with WCM?
WCM embraces elements from other methodologies

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TPM: Total Productive Maintenance
How do we apply our WCM metodology
Infinite loop

Loss Intelligence Loss Eradication Loss Prevention

SEEK

ERADICATE

MAINTAIN

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 In WCM we combine two approaches

Kaizen: Continuous Improvements

- Suggestions
- Improvement teams Competitive
advantage Must
- Bottom-up approach

PDCA cycles

Innovation
PERFORMACE

- Big jumps
Maintain & Improve - Big investments
NEW STANDARD
Waste/Loss - Top-down approach

TIME
WCM / 2011-11-29 / 16
L
 How is our Continuous Improvement Approach
Standardization is key
Performance “The electric light did not
come from the continuous
3 Innovation improvement of candles”
(Oren Harari)
Improvements
generate new n
standards standard

Second Improvement
standard Losses Teams
2
First
standard

Method Losses
Standards (eliminate variation):
1 (Variation due to
- Instructions
lack of standards) - Specifications
- Checklists

Time
WCM / 2011-11-29 / 17
 Our journey from WCM to WCM
From Manufacturing to full Business
Technology Development
Innovation Chain

Plan
Customers
Suppliers Source Make Deliver and
Consumers

Product Development
Supply Chain
WCM Level 1 WCM Level 2
Factory Operational Excellence Integrated Supply Chain
Experience in driving
WCM in production, now
going into new areas
WCM Level 3
Extended Supply Chain

Production excellence by Defending & strengthening Zero loss company via

World Class
learning and mastering WCM competitive position World Class
innovative WCM activities
through flexible
Manufacturing
tools & techniques
& efficient supply chain
Management WCM / 2011-11-29 / 18
 WCM history...

WCM First ever ”Global

WCM in Capital Leaders” award
Starts in Equipment
Tetra Pak from JIPM
1999 2007 2016

2001-2003 2014 2018

Expansion to all WCM in Expansion
Packaging material Processing to cover
factories Solutions full Supply
chain

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WCM / 2011-11-29 / 20
Customer oriented focus,
while adapting to the new normal

- Lead time reduction initiative

- Remote Factory Acceptance Test (FAT)

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Our business model
Capital Equipment Sales

Service Sales

Packaging Material Sales

CT/2020-12-02 / 22
 The Problem...

Lead time +20%

Volume +25%
Customization +20%

*Illustrative figures CT/2020-12-02 / 23

 The process

Packing
Order Commissio
Engineering Procurem. Production Test and
Clarification ning
shipping

► Engineered to order
► 80% are customized
solutions
► Mix of outsourced and
internally produced parts

CT/2020-12-02 / 24
 Identify the critical path...
Organization A

Organization B

Critical Path Organization C

Activity 1
Activity 6
Slack Activity 2 Activity 3 Activity 4 Activity 5
5 days 5 days 15 days 10 days 10 days

35 days
45 days

► Drive improvements on the critical path

► Understand Slack

CT/2020-12-02 / 25
 Understand the Process – Value Stream Mapping
Production Control

Vessels
BU LF Line Mgmt

Control Panel

Market Company
Pumps
Market Company /
Customer warehouse /
etc.

others

Assembly LIM

Clarification Process Design Automation Design Electrical Design Purchase Order Procurement DHM Goods Receipt TEST Packing
Including tanks & Tetra Pak Warehouse C/T= 19 days
vessels VA = x days
FTE= x LEVELLING
C/T= 7 days C/T= 18 days C/T= 12 days C/T= 6 days C/T= 4 days C/T= 20 days Assembly DHM C/T= 34 days C/T= 4 days
VA = x days VA = x days VA = x days VA = x days VA = x days VA = x days VA = x days
FTE= 1 PM FTE= x FTE= x FTE= x FTE= x Procurement Main FTE= x FTE= x
Module
Control Panels
Mechanical Design Documentation
included here
C/T= 18 days
C/T= 23 days VA = x days
FTE= x
Procurement Aut.
Assembly Main
Homogeniser C/T= 11 days
C/T= 21 days Module
Dampers VA = x days
VA = x days
FTE= x
FTE= x

C/T= 20 days
C/T= 12 days
VA = x days
Procurement LIM FTE= x
Assembly Aut.
Homogeniser
Dampers Best scenario delivery time (incl. levelling)
C/T= 27 days
is around 19-20 weeks. Exlcuding waiting
C/T= 12 days
VA = x days time handing over to other resources.
Critical path FTE= x

9 days
Julia Loschkin/2020_04_14 / 26
7 days 15 days* 1 day * 5,5 days * 4 days * 17 days* 3 days 25 days* 9 days * 4 days* 100 days
4M – Fishbone analysis

Method Man

Delivery Time Targets

Expand standard portfolio
Problem
Statement
Procurement Test Area Capacity
Long Lead time material Improve capacity in
our bottleneck
Material Machine

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 Test Area Capacity

► Our bottleneck process, with long que of orders.

► First available slot determine our delivery date...

CT/2020-12-02 / 28
 Test area capacity…
Assembly
SMED – Attacking activities on the
Hours
critical path. What can be performed
• Loss deployment before entering the test area?
• Loss eradication
• Loss prevention

Losses

Test
Machine Footprint – 23% of total
capacity is lost because of machines
requiering double testbays.

Dissassembly
Machine dissasembly – Move
Total time Assembly Test Dissassembly Waiting times entire activity to 2:nd shift.

CT/2020-12-02 / 29
*Illustrative figures
Procurement Seek – Understanding of losses,
Long leadtime material current process and requirements
Number of Materials

196
139
57
L/T > 15 days Stock Critical

Eradicate
Prio 1: Improve lead time
Prio 2: Put in stock

Maintain
Establish forum between
specification owners, Supplier
Managment and Production to align
leadtime requirements. CT/2020-12-02 / 30
 Delivery Time Targets
-Expand std portfolio

DTG 1 DTG 2 DTG 3

14%* 3%* On request 83%*
<16 weeks 16 - 18 weeks

Standard Customized

Median = 28 weeks

*Illustrative figures
> 21 weeks <35 weeks

CT/2020-12-02 / 31
Delivery Time Targets
-Expand the standard portfolio

What are the most common reasons why we can’t offer a standard leadtime?

1. Non standard layout

2. Pressure vessel other than PED
3. Multimode machine

CT/2020-12-02 / 32
 Factory Acceptance Test (FAT) with customer

Tetra Pak Lund or Modena Travel Customers

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 FAT with remote setup

PC PE Lund & Modena Technical solution/setup Customer

Machines HMI video stream
MS Teams

Test engineers video stream

MS Teams Internet
iPhone 11
equipped with a gimbal

Optional video stream

Iphone
or
MS Teams Displayed at customer site
Computer by using PC, Mac and with
MS Teams desktop app

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FAT with remote setup

Live demo

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 FAT with remote setup

Global Standard Satisfied customer Continuous improvements

Standard service offering

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Who is better?

Both!
• Hare:
• Muscle, big change!
• Tortoise:
• Consistency, compliance!

I
M

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WCM / 2011-11-29 / 38