Skarbimierz Gum Driving Competitiveness Event May 29 th

Skarbimierz Gum Driving Competitiveness Event May 29 th, Dublin Castle, Ireland

A Brief History April 2013 February 2010

Location on European Map Skarbimierz, Poland 60 km from Wrocław

Skarbimierz Gum Facility • Production Commenced 2009 • Factory occupies c. 13 hectares • Floor area of Factory 28, 000 m 2 • 380 Employees

Product’s

Business Environment Complexity V’s Volume Reductions 250 12. 5 12 200 11. 5 150 11 10. 5 100 10 50 9. 5 0 9 2011 2012 2013 FG SKU volume (k T)

Environment Site Business • Increasing product Complexity • Shorter productions runs • Increasing Equipment changeovers • Changeovers adversely affecting Line Efficiencies • • • CI seen as an additional task CI Fatigue Lean Tool Confusion Lack of Consistency in Lean tool execution Increased distractions from what mattered

Five Bold Steps ople ate • F i ticip par oo ersh to wn ds • N • S ant • O afe ot o als le w up ty ferr po eop ope nly m rtin e re • P ys & oye • P ration onth g. I wa s QUALITY de mpl ride to m oth nward as • E nging • P ont ENGAGEMENT • B ow s) ’ cha OWNERSHIP h eop ness (d ard le = busi am upw eting the bas OPEN • Me irements sad BIGGER ors requ COMMUNIe ered PURPOSE choic deliv • Sk n for CATION • #1 tract ills m n iratio The most successful Gum rly co atrix / insp a as • Be • Ye site where people are of ide nchm urce mers a othe inspired to fulfill Customers’ • So Custo the SHARING r pla rking wi d by th the nts raise and Business’ needs KNOWLEDGE as l w ide l leve & BENCHMARK • Ne loyees rsona Revisit Vision & KPI emp on pe ivity o-act • Pr • XInclude Vision in Yearly Plan cultu ral pr • Not full capacity • Ch ofiles Spread the Vision ange Org. will help s in b • Irish boss envir Define & Map The Method of Implementation onme usiness Willingness to • W nt • Nothing to lose e hav (skills & process) learn e no the c • “Formatting “ the “Buy-in” Change Agents (critical mass) hang firm idea People we have e age • Co abou organization nts t st o WE have created IT peop rientation le of Kr Change of Org NAME aft-> • W e lac k exp • Do nothing (stop here; let the time pass) deplo • Changing the leader y this erience / No arguments (no info to employees, no • W skills vision • Wrong communication (no proper attention to e to support, no benefit) • Passive (lack of • Focus on short term only init don’t have vision, not talking about it, no alignment)No iate c a cris collaboration, be a passive participant, no risk h is to ownership (by FLT, no identification with vision • “It’s our vision You implement it” ange management, lack of engagement especially Mgrs & FLT) • N o pe p by risk VISION • • • SUPPLIER OF CHOICE TS POR P SU THREATS BOLD STEPS CHA LL ENG ES

Site Vision

Repetitive Flexible Supply

We can do Anything But We cannot do Everything!

We Need A Plan

CI Roadmap 2013 2014 2015 -2017 Performance Objective Waste 2, 7% Slabs Waste 3% Sticks GE Improvement Waste reduction Slabs Waste reduction Sticks GE improvement Power of Performance Initiatives • • Leadership Development Daily production meetings Join Lean & 6 S conferences Lead 2 Kaizen Events TPM in Lean Academy Internal coaches development Develop CI library Benchmarking visits in 6 plants Benchmarking visits continuation Join Lean & 6 S conferences Lead 2 Kaizen Events Internal coaches development Develop CI library Benchmarking visits continuation Join Lean & 6 S conferences Lead 2 Kaizen Events Develop CI library Power of One A 3 problem solving method development 2 Kaizen events Host of CI Gum event A 3 problem solving method development 2 Kaizen events CI Resources 2 BB, 5 GB, 15 SGA leaders 2 BB, 7 GB, 25 SGA leaders 16 2 BB, 7 GB, 25 SGA leaders • • • SMED on 12’’ & 16’’ lines and Loesch lines Waste Reduction to 2, 7% on Slabs. Overweight reduction to 2% on pellets. 3 Sigma measurement of Loesch lines, 12’’ & 16’’ Lines Pull System implementation on Slabs 5 S on all lines Waterspider (Milk run) for packaging TPM audit & AM on pilot line POM implementation • • • SMED on Sapal lines 3 Sigma certification of Loesch, 12’’ & 16’’ Lines 3 Sigma mesurement of Sapal lines, FM lines & I-box lines Waste Reduction Overweight Reduction TPM continuation POM implementation • • TPM continuation 3 Sigma certification of Sapal lines, FM lines & I-box lines Waste Reduction Overweight Reduction TPM continuation POM implementation

Lean Academy 2013 Time of Internal Trainers! Goals: • Short term: Create standards and transfer of good knowledge between operators and technicians, create skills matrix with clear responsibilities • Long term: GE improvement Area: Loesch Lines I stage: Recruitment process for operators - 15 people applied! - done II stage: Train-the-trainer course and people selection – in progress III stage: Create skills matrix For whom: Technicians Operators Team leaders

Lean Academy • Trainings - 2013 SMED Heijunka Lean Manufacturing basics Internal trainers academy Problem Solving Small Group Activities TPM • Dates Temat szkolenia Marzec Lean Manufacturing basics Problem solving [ SGA, A 3 ] Internal trainers academy Heijunka Maj Czerwiec Lipiec Sierpień Tydzień 18 Tydzień 10 TPM SMED Kwiecień Tydzień 22 Tydzień 15 Tydzień 27 Tydzień 24 Tydzień 12 Tydzień 35 Tydzień 16 Tydzień 24 lub 25 Tydzień 21 Tydzień 32 lub 33 Tydzień 34

Global Line Efficiency • Global Efficiency (GE) – Measurement of asset capacity utilization calculated as a ratio of the actual product produced to theoretically possible amount of product that could be produced during theoretical hours minus the No Demand Legal Holiday hours. 19

CI Projects Main Lean/Kaizen & 6 Sigma projects Finished: Coaters Cleaning time stabilisation (135 mins) Bożena Socha Started: Waste level reduction on Slabs Klaudia LibnerŁukaszenia In Progress: Started: In Progress: Changover time reduction by 50% on O’Hara lines Overweight reduction on Pellets Overweight reduction on Slabs Waste reduction on LTM machines Marcin Borowski Magda Karabowicz Ala Jastrząb Piotr Żurawski Target: Reduction from 5% to 3, 5% Average Reduction by Reduction from 2, 05% to 1%; 20% 3% to 2, 25% Lean/Kaizen Projects Target: 6 Sigma Projects

Talk Reduction (16’’ Line) - Kaizens A 1 1 Losses Identification 2 Losses Elimination Before After 3

CI – SMED Activities 12’’ Line 16’’ Line Time reduction for 130 minutes changeovers in 12” line can be reduced by 43 % Current state observed Time reduction for 180 minutes changovers in 16” line can be reduced by 50% 33 % 43 % Current state SOP Loesch Lines Future state ~ 131 k. PLN savings Timing: 31 st of January 2013 Current Future state SOP state observed Step 1 50 % Future state Step 2 ~ 153 k. PLN savings Timing: 31 st of December 2012 22 Changeover on Loesch from 18 to 12 format – 86 % time reduction 80 % 86 % Current Future state SOP state observed Step 1 Future state Step 2 ~ 156 k. PLN savings Timing: 31 st of December 2012

Utilities 23

Benchmarking Visits 2013 Today 2013 Kaizen Institute Conference 2012 November September January October Poznań Open training Kaizen Basics March May July

Not the End, only a Pause