29_sabmiller_ed_koch.pdf

Upload: karsten-herr

Post on 03-Apr-2018

218 views

Category:

Documents


0 download

TRANSCRIPT

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    1/48

    Competitive Advantage GeneratedThrough the Global Deployment of aContinuous Improvement Programme

    Ed Koch

    Head of Manufacturing Development

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    2/48

    Contents

    SABMiller

    some context

    Operational Excellence at SABMiller The SABMiller Manufacturing Way Results Summary

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    3/48

    SABMiller some context

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    4/48

    Scope of our Operations Today

    200+

    brands owned

    Presence in 75

    countries, across six

    continents

    140+ breweries, 20+

    bottling plants, 10+

    maltings

    Almost 70 000 employees

    213 million hectolitres

    of lager sold

    US$26 350 million

    group revenue to Mar 10 *

    US$4 381 million

    EBITA to Mar 10 *

    * Not Audited

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    5/48

    Where We Operate

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    6/48

    Reported Volumes and EarningsContribution (March 2010)

    31%

    19%14%

    12%

    2%

    19%

    3%

    Latin America

    Europe

    North America

    Africa

    Asia

    South Africa Beverages

    Hotels and Gaming

    (hl000)

    Total Sales Volumes

    261,447

    Lager

    212,576

    Soft drinks

    43,509

    Other alcoholic beverages 5,361

    Earnings Contribution (EBITA)

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    7/48

    International Brands

    Grolsch Premium Lager

    The Dutch premium quality lager

    Miller Genuine Draft The original cold-filtered draft beerPeroni Nastro Azzurro Italian style in a bottlePilsner Urquell

    The Pilsner from the original source

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    8/48

    Key Regional Brands

    Aguila

    Castle Miller Lite Snow Tyskie

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    9/48

    Other Regional Brands

    SABMiller owns over 200 regionalbeer brands, including:

    2M (Mozambique)

    Atlas (Panama)

    Carling Black Label (South Africa)Castle Lite (South Africa)

    Club Colombia (Colombia)

    Cristal (Peru)

    Dreher (Hungary)Gambrinus (Czech Republic)

    Hansa Marzen Gold (South Africa)

    Haywards (India)

    Kilimanjaro (Tanzania)

    Nile Special (Uganda

    Pilsener (Ecuador)

    Pilsener (El Salvador and

    Honduras)

    ari

    (Slovakia)

    St Louis (Botswana)

    Timisoreana (Romania)Lech (Poland)

    Velkopopovick Kozel

    (Czech Republic)Zolotaya Bochka (Russia)

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    10/48

    Becoming a Global Brewer

    1895 Foundation of South African Breweries

    and launch of Castle Lager

    1897 Listing on Johannesburg stock exchange

    1898 Listing on the London stock exchange

    2010

    Regional and product expansion

    1978-82 Botswana, Lesotho

    and Swaziland

    First acquisitions in Europe

    1988 Compania Cercercera de

    Canarias in Canary

    Islands1993 Dreher in Hungary

    1910 Expansion into Zimbabwe

    (formerly Rhodesia)

    Acquisition in South Africa

    1956 Ohlssons, Chandlers Union Breweries

    1975-79 Old Dutch, Whitbreads, Swaziland

    breweries, beer interests of the

    Rembrandt Group attaining 99%

    market share

    Global growth begins

    1993 Uganda

    1994 Angola, Mozambique,

    Tanzania, Zambia,

    China1995 Poland

    1996 Romania

    1997 Ghana, Slovakia

    1998 Russia

    1999 Czech Republic

    2000 India

    2001 El Salvador, Honduras,

    strategic alliance with

    Castel Group in Africa

    2002 Creation

    of SABMiller

    following purchase

    of Miller Brewing

    Company

    1999 Movement of primary

    listing to London

    Stock Exchange

    1895

    2003

    Acquisition of

    Birra Peroni,

    Italy

    2005 Merger with

    Grupo Empresarial

    Bavaria

    2008

    Acquisition of

    Grolsch, The

    Netherlands

    2008

    Acquisition of

    Grolsch, The

    Netherlands

    2008

    MillerCoors

    JV created,

    USA

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    11/48

    Our Strategic Priorities

    SABMiller has a clear strategic focus, at the centre of which are our four strategicpriorities:

    Creating a balanced and attractive global

    spread of businesses

    Developing strong, relevant brand portfoliosin the local market Constantly raising the performance of localbusinesses Leveraging our global scale

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    12/48

    Operational Excellence

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    13/48

    Technical Strategic Priorities

    1. Building pride inthe technicalfundamentals ofour brands.

    2.

    Enhancing ourreputation foroperational

    excellence.3.

    Developing areputation forproduct andpackaging

    innovation.

    4.

    Enhancing thesustainability of

    our supplychain.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    14/48

    StrategicOperatingPractice (SOP)

    Reduced Variability & Lead time

    Evolution of Operational Excellence inSABMiller

    1988 1996 200820041992 2000

    Quality and Production Upgrade Strategy

    Best Operating Practice (BOP)1.

    Process Control

    2.

    Performance Measurement

    3.

    Plant Availability

    Best OperatingPractice II (BOP II)1.

    OD

    Self-sufficient teams

    2.

    Multi-skilling

    3.

    Asset Care & QC at Source

    TheSA

    BMiller

    Manufa

    cturingWay

    In

    creas

    ingP

    erformance

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    15/48

    Approach to Operational Excellence

    Competency

    and Capability

    CompetencyCompetency

    and Capabilityand Capability

    Enable performance and capability

    transformation through change leadership

    and a deliberate approach to learning.

    Enable performance and capability

    transformation through change leadership

    and a deliberate approach to learning.

    WCM Work

    PracticeDevelopment

    WCM WorkWCM Work

    PracticePracticeDevelopmentDevelopment

    Processes to Enhance Performance

    including teamwork, standard work,waste elimination and other work

    practices.

    Processes to Enhance Performance

    including teamwork, standard work,waste elimination and other work

    practices.

    Organisational

    Model

    OrganisationalOrganisational

    ModelModel

    Build an organisation to implement and

    sustain operational excellence including

    structures, roles and jobs.

    Build an organisation to implement and

    sustain operational excellence including

    structures, roles and jobs.

    PrinciplesPrinciplesPrinciples

    Principles and philosophy that ensures an

    integrated approach for Operational Excellence in

    the context of business strategy. Long termthinking with a business case for change.

    Principles and philosophy that ensures an

    integrated approach for Operational Excellence in

    the context of business strategy. Long term

    thinking with a business case for change.

    PREPAREAN

    D

    ENABLECHANG

    E,

    PREPAREAN

    D

    ENABLECHANG

    E,

    IMPROVE&

    SUS

    TAIN

    MANUFACTU

    RING

    IMPROVE&

    SUS

    TAIN

    MANUFACTU

    RING

    CA

    PABILITY

    CA

    PABILITY

    CONTINUOUS

    CON

    TINUOUS

    IMPROVEMENTOF

    IMPROVEMENTOF

    MANUF

    ACTURING

    MANUF

    ACTURING

    CAP

    ABILITY

    CAP

    ABILITY

    PHASE 1PHASE 1

    PHASE 2PHASE 2 Enable continuous improvement through

    collaboration and development of new

    competencies.

    Enable continuous improvement through

    collaboration and development of new

    competencies.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    16/48

    Deployment of the Manufacturing Way via a decentralised collaborative model

    RegionalRegionalHubHub

    TeamTeam

    MDEV HubLead

    CountryLead

    GroupGroupLeadershipLeadership

    TeamTeam

    Head ofMDEV

    MDEV CountryLeadsEurope

    MDEV HubLeaderAfrica

    MDEV Hub

    LeaderAsiaMDEV Hub

    LeaderSouth Africa

    MDEV HubLeader

    MillerCoors

    MDEV CountryLeadsLATAM

    CountryLead

    CountryLead

    CountryLead

    CountryLead

    CountryCountryTeamTeam

    CountryLead

    BreweryConsultant

    BreweryConsultant

    BreweryConsultant

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    17/48

    Partnership with CCI

    SABMillers partnership with CCI extends more than 20

    years.

    Currently CCI actively consults in over 50

    of SABMiller

    operations.

    It is fair to say that CCI has supported SABMillers

    global expansion by providing thought leadership andconsulting support into the operational excellenceapproach. Operational excellence has been fundamental indriving SABMillers growth.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    18/48

    Results of the SABMiller CCI Partnership The Global Evaluation of Manufacturing (GEM)

    Excellent processes leads

    to excellent and sustainable results.

    Therefore SABMiller measures

    operational excellence in terms of both the what we

    achieve (Results)(Results) as well as

    the how

    we go about

    achieving our results (Work Practices and Processes)(Work Practices and Processes)

    The GEM is intended to measure the maturity of WorkPractices.

    Excellence in Work Practices

    Measured byGEM

    ExcellenceinResults

    M

    easuredbyGlobalKPIs,

    GTS

    WCMWCM

    ExcellenceExcellenceUnsustainableResults

    IncorrectlyFocusedWCM

    Programme

    Excellence in Work Practices

    Measured byGEM

    ExcellenceinResults

    M

    easuredbyGlobalKPIs,

    GTS

    WCMWCM

    ExcellenceExcellenceUnsustainableResults

    IncorrectlyFocusedWCM

    Programme

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    19/48

    GEM and TRACC

    The Global Evaluation of Manufacturing is a SABMiller

    customised version of the TRACC Assessment tool.

    The content was customised by SABMiller to include

    our own learning and knowledge.

    The tool was developed and is supported by CCI.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    20/48

    Competency

    and Capability

    CompetencyCompetency

    and Capabilityand Capability

    WCM Work

    Practice

    Development

    WCM WorkWCM Work

    PracticePractice

    DevelopmentDevelopment

    Organisational

    Model

    OrganisationalOrganisational

    ModelModel

    PrinciplesPrinciplesPrinciples

    Key elements

    The following slidesillustrate some of the keyelements of our approachto operational excellence.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    21/48

    Organisational Model Policy Deployment & Performance Management

    Business, regional

    and functional

    aspirations,

    strategies and

    plans

    Goal setting

    for teams

    and

    individuals

    Performance

    monitoring

    through

    one-on-ones

    and teammeetings

    Midyear

    and yearend

    performancereviews

    Performance data

    feeds into keydecisions on

    compensation,

    Individual develop-

    ment and career

    management

    Key input Process steps Key output

    Definition of Performance ManagementCore to our culture and our ways of working, performance management is how we manage the

    performance of teams and individuals against goals through personal accountability, which driveexecution of the business strategy in a way that shapes a high-performance, high-engagementculture and ensures sustainable business performance.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    22/48

    Organisational Model Shift Team Work Practices

    Pre-shift meetings

    One-on-one shift hand-over(at work stations)

    Team goal setting andperformance measurement

    Operating fundamentals

    Improving flexibility

    Asset Care and AutonomousMaintenance

    Participation in focusedimprovement and problemsolving

    Operator-based quality

    control at source

    Level 1Level 1Level 1

    OperatorSkill 1

    OperatorOperator

    Skill 1Skill 1

    Mech.Crafts

    Mech.Mech.

    CraftsCraftsOperator

    Skill 2

    OperatorOperator

    Skill 2Skill 2

    ElectricianElectricianElectrician

    Shift Team LeaderShift Team LeaderShift Team Leader

    Shift 3Shift 3Shift 3

    Shift 2Shift 2Shift 2

    Shift 1Shift 1Shift 1

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    23/48

    Organisational Model Leader Standard Work

    Meetings

    Standardised work to identify, monitor and

    control the optimum

    conditions under which a

    manufacturing operation will be failure and

    defect free at optimum cost and service.

    DailyDaily

    Level 3 meeting of department and

    area managers covering safety,production to plan, quality and cost

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    24/48

    Competence and Capability Learning and CollaborationOur learning and collaborationmodel is linked to some of the

    fundamental principles of theManufacturing Way, namely:

    Operational Excellence is entirely

    dependent upon a resolute process ofcontinuous improvement.continuous improvement.

    Performance and practice aremeasured against internal and

    external benchmarks.benchmarks.

    Organisational Learning andCollaborationCollaboration

    are important aspects

    of the improvement process.

    Individual competenceIndividual competence anddevelopment is promoted.

    StandardsStandards

    CommonCommonMeasurementMeasurement

    BetterBetter

    PracticePractice

    LessonsLessons

    LearntLearnt

    StandardsStandards

    CommonCommonMeasurementMeasurement

    BetterBetter

    PracticePractice

    LessonsLessons

    LearntLearnt

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    25/48

    Competence and Capability Developing Individual Competence

    Making learning accessible,rapidly

    The ManufacturingThe Manufacturing

    Way on eLearningWay on eLearning

    A solid foundation for allmanufacturing employees and

    managers to achieve operational

    excellence.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    26/48

    Competence and Capability Collaboration Tools

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    27/48

    Competence and Capability Benchmarking

    The Manufacturing Global Key Performance IndicatorsThe Manufacturing Global Key Performance Indicators

    (KPI) Process enables benchmarking.(KPI) Process enables benchmarking.

    Principles

    Focus:Focus: the Global KPIs are limited to 15 measures. Balance:Balance: measures are spread across the keymanufacturing drivers. Common measurement:Common measurement: a defined set of proceduresand rules.

    Benchmarking Focus:Benchmarking Focus:

    drives continuous improvement

    in a sustainable way

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    28/48

    Competence and Capability BenchmarkingWater Ratio - Best and Wo rst Quartile Ranked - Mar F10 (YTD)

    3.1

    03

    .24

    3.4

    2

    3.5

    0

    3.5

    33

    .64

    3.6

    5

    3.6

    9

    3.7

    7

    3.7

    8

    3.8

    4

    3.8

    4

    3.8

    7

    3.9

    5

    3.9

    5

    3.9

    6

    3.9

    9

    4.0

    7

    4.0

    7

    4.1

    0

    5.7

    05

    .84

    5.9

    16

    .08

    6.2

    36.7

    26

    .87

    6.9

    2

    6.9

    57

    .19

    7.3

    3

    7.4

    1

    7.5

    1

    7.5

    8

    7.6

    47

    .77

    8.0

    18

    .29

    9.5

    0

    13

    .62

    0

    2

    4

    6

    8

    10

    12

    14

    16

    Bialys

    tok

    Poznan

    Fort

    Wort

    h

    Tyc

    hy

    Guayaqu

    ilBeer

    Tren

    ton

    IndLa

    Cons

    tanc

    ia

    Ibhay

    i

    Ka

    luga

    Boyac

    Eden

    Nosov

    ice

    New

    lan

    ds

    Shenan

    doa

    h

    Prospec

    ton

    Albany

    Ve

    lke

    Popov

    ice

    Gro

    lsc

    h

    Po

    lokwane

    Bucaramanga

    Cluj

    Vladivos

    tok

    Lu

    bango

    Dares

    Sa

    laam

    Nile

    Buzau

    Mwanza

    Sarma

    t

    Leso

    tho

    Beer

    Sica

    Pon

    dicherry

    Swaz

    ilan

    dBeer

    Arus

    ha

    Cen

    tra

    lDistillers

    Be

    ira

    Accra

    Kga

    laga

    diBeer

    Eas

    tCoas

    t

    Mapu

    to

    Lusa

    ka

    Beer

    Vietnam

    Beer

    hl/hl

    TOP 25%

    Simple Average = 5.13

    Std Dev = 1.7

    BOTTOM 25%

    Machine Efficiency - Best and Worst Quartile Ranked - Mar F10 (YTD)

    98.3

    7

    96.6

    2

    94.8

    5

    94.6

    6

    94.6

    1

    94.2

    5

    94.2

    0

    93.6

    6

    93.4

    9

    93.2

    0

    92.6

    7

    92.4

    3

    92.1

    6

    91.3

    1

    91.1

    8

    91.1

    0

    91.0

    4

    90.9

    7

    90.8

    2

    90.5

    8

    76

    .42

    76.0

    0

    75.7

    2

    74.75

    73.7

    1

    73.4

    2

    72.88

    71.16

    70.97

    69.0

    0

    67.3

    2

    67.2

    3

    65.8

    4

    65.0

    7

    62.7

    5

    61.8

    0

    60.0

    3

    59.8

    1

    58.7

    0

    58.0

    5

    0

    20

    40

    60

    80

    100

    120

    Eas

    tCoas

    t

    Qu

    ito

    Me

    de

    llin

    Boyac

    Cusco

    Ma

    labar

    Arequ

    ipa

    Bucaramanga

    IndLa

    Cons

    tanc

    ia

    Tocanc

    ipa

    Bogo

    t

    Bialys

    tok

    Tyc

    hy

    Mo

    tupe

    San

    Pe

    dro

    Su

    la

    Ka

    luga

    Plzen

    Poznan

    Ve

    lke

    Popov

    ice

    Cen

    tra

    lDistillers

    Albany

    Ross

    lyn

    Bari

    Vladivos

    tok

    Dares

    Sa

    laam

    Shenan

    doa

    h

    Lusa

    ka

    Beer

    Charm

    inar

    Mapu

    to

    Leso

    tho

    Beer

    Go

    lden

    Gro

    lsc

    h

    Accra

    Sarma

    t

    Kga

    laga

    diBeer

    Lu

    bango

    Swaz

    ilan

    dBeer

    Be

    ira

    Haryana

    Ulyanovs

    k

    TOP 25%

    Simple Average = 82.09

    Std Dev = 10.13

    BOTTOM 25%

    SustainabilitySustainability

    (Water Usage,

    Energy Usage)

    QualityQuality

    (Brewery Hygiene,

    Consumer Predictive Index,Flavour Stability Index, PackedProduct Quality, Total PackagedOxygen)

    ProductivityProductivity (UnadjustedFactory Efficiency, MachineEfficiency)

    CostCost

    (Total Cost of

    Manufacturing, Cost ofMaintenance, Macro ExtractLoss, Container Loss)

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    29/48

    Work Practices Short Interval ControlMONTH TO DATE SIC REPORT Dec-09

    4

    Unit of Corporate Month

    De sc ri pti on Mea su re T ar ge ts M il wa uk ee Ed en Al ban y T re nt on F t. Wo rt h I rw in da le Go ld en Sh ena nd oa h to Da te

    SAFETY / PEOPLE

    DART Rate # 1.55 - 1.65 1.78 1.83 1.67 1.65 0.00 0.00 0.00 2.65 0.85

    Salaried - Budget # 1,154 161 144 139 128 160 149 174 122 1,177Salaried - Actual # 154 145 142 127 156 138 0 113 975

    Salaried - Budget (Temps) # 22 3 3 3 3 0 1 0 9 22

    Salaried - Actual (Temps) # 0 5 17 4 4 2 0 11 43

    Hourly - Total # 541 455 461 436 510 412 0 353 3,168

    Hourly Temps # 0 8 0 3 0 13 0 31 55

    Hourly - Sick/Personal % 0.0% 0.0% 0.0% 0.0% 0.0% 1.9% 1.1% 1.1%

    Hourly LOA % 0.0% 0.0% 0.0% 0.0% 0.0% 4.4% 1.1% 0.0%

    Hourly FMLA's % 0.0% 0.0% 0.0% 0.0% 0.0% 1.9% 0.2% 0.7%

    QUALITY (LM Only)

    TPO - BOTTLES # 80 61 106 93 75 61 99 94 88 83

    TPO - CANS # 120 135 137 112 121 135 108 223 156 123

    ESR - FV (T150's) # 25,000 15,714 38,533 24,997 21,173 32,221 24,311 25,959 8,572 25,826

    CQI: Taste % 50% 67% 64% 51% 48% 60% 52% 46% 59% 56%

    CQI: Clarity % 80% 100% 94% 95% 94% 90% 96% 92% 53% 89%

    CQI: Foam % 30% 36% 48% 39% 59% 26% 38% 10% 34% 36%

    Flavor Stability Index % 50% 67% 65% 52% 49% 60% 58% 48% 67% 58%

    PPQA - Bottles 6 Sigma 4.8% 4.8% 4.8% 4.9% 5.3% 5.5% 5.0% No Data No Data 4.9%PPQA - Cans 6 Sigma 4.7% 5.2% 5.6% 4.5% 5.6% 4.4% 4. 9% No Data No Data 4.7%

    SERVICE

    Production Volume - Plan # 5 44 ,1 60 6 08 ,3 21 6 32 ,3 59 9 45 ,0 68 5 97, 93 5 42 7, 02 0 1 ,0 40 ,5 24 4 83 ,2 15 5 ,27 8, 60 2

    Production Volume - Actual # 5 37 ,1 03 5 72 ,2 48 6 08 ,8 23 6 94 ,4 62 6 08, 47 5 40 0, 28 9 86 1, 16 5 4 58 ,2 83 4 ,74 0, 84 8

    (ALL)

    Weekly Order Fulfillment % 95.0% 94.0% 84.1% 67.4% 91.1% 94.4% 88.0% 97.9% 87.7% 86.1%

    FE % 63.7% 69.4% 54.5% 57.2% 59.8% 6 5.6 % 6 4. 9% 51.1% 50.1% 57.2%

    OEE % 74.7% 79.4% 67.7% 67.1% 74.1% 79.8% 72.6% 60.5% 67.8% 69.3%

    ME % 80.3% 85.4% 77.9% 74.1% 8 1. 8% 8 5.5 % 78.8% 66.7% 71.7% 76.0%

    ALL BREWERIES

    ShopfloorManagement

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    30/48

    Work Practices Standard Work

    Operator Quality Control

    Standardised work to identify, monitorand control the optimum

    conditions

    under which a manufacturing operationwill be failure and defect free at optimumcost and service.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    31/48

    Work Practices Focused Improvement

    Ruble/Hl

    0

    10

    20

    30

    40

    50

    60

    70

    Packaging

    Stoppages

    Bottle

    Breakage/

    Carton/

    TraysLosses

    MaltTransfer

    Losses

    BeerLosses

    inPackaging

    BeerLosses

    inBrewing

    Material

    Usages

    Material

    Usages

    Material

    Usages

    Usageof

    Laboratory

    EmptyBottle

    Breakage

    Flt'sGas

    Usage

    QualityLosses

    QualityLosses

    GasUsage

    (Utilities)

    WaterUsage

    (Utilities)

    WasteWater

    Utilisation

    Electricity

    Usage

    Brewing

    Maintenance

    Packaging

    Maintenance

    Warehouse

    Maintenance

    Utilities

    Maintenance

    Time

    Losses

    Material

    Losses and Usages

    Quality

    Losses

    Energy

    Usage

    Maintenance

    Costs

    Month

    YTD

    best result

    DecemberDecember

    Loss Analysis:

    the difference between Focused Improvement

    and Continuous

    Improvement

    Example below is from Kaluga Brewery, Russia

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    32/48

    Work Practices Asset Management and Autonomous Maintenance

    Breakdown

    Maintenance

    Breakdown

    MaintenancePreventative

    Maintenance

    Preventative

    Maintenance

    EmergencyMaintenance

    Run to failScheduled

    Maintenance(Time Based)

    Reliability Centred

    Maintenance

    Reliability Centred

    Maintenance

    Maintenance

    Prevention

    through Design

    of Equipment

    Maintenance

    Prevention

    through Design

    of Equipment

    Autonomous

    Maintenance

    Autonomous

    Maintenance

    CorrectiveMaintenance(Inspect & Repair)

    PredictiveMaintenance

    (CBM)

    Autonomous Maintenance formspart of the Asset Management

    programme to ensure conditionsfor equipment operation and careare standardised and effective

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    33/48

    Work Practices Sustainable Development

    discourage irresponsible drinking

    brew more beer but using less water

    reduce our energy and carbon footprint

    create a vibrant recycling and reuse economy

    work towards zero waste operations

    have supply chains that reflect our own values andcommitment to SD

    bring benefit to the communities we serve

    respect human rights

    reduce the impact of HIV and Aids in our sphere of influence

    be transparent in our response to these environmental andsocial trends

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    34/48

    Work Practices Sustainable Development

    Recovery ofbiogas from

    waste water

    treatment

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    35/48

    Results

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    36/48

    Performance Improvement El Salvador Water and Energy

    11.15

    4.05

    0.00

    2.00

    4.00

    6.00

    8.00

    10.00

    12.00

    F02 F03 F04 F05 F06 F07 F08 F09

    WaterHL/HL

    164.24

    93.41

    0.00

    20.00

    40.00

    60.00

    80.00

    100.00

    120.00

    140.00

    160.00

    180.00

    F02 F03 F04 F05 F06 F07 F08 F09

    ThermalEnergyMJ/HL

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    37/48

    Performance Improvement Italy Birra Peroni Water Usage

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    38/48

    Performance Improvement MillerCoors Packaged Beer Quality

    Quality Total Packaged Oxygen (ppb) & Cpk

    97

    72 72

    128

    0

    20

    40

    60

    80

    100

    120

    140

    FY06 FY07 FY08 FY090.0

    0.2

    0.4

    0.6

    0.8

    1.0

    1.2

    1.4

    TPO

    Cpk

    TPO measure the oxygen content in package,Oxygen leads to poor flavour stability in beer and it

    is critical to keep it as low as possible

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    39/48

    Performance Improvement Honduras Factory Efficiency

    30

    40

    50

    60

    70

    80

    F05 F06 F07 F08 F09

    L3 L4 L5 PET

    15% FactoryEfficiency

    improvement in 4years

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    40/48

    Performance Improvement MillerCoors Machine Efficiency

    Can Line Performance

    60,000

    70,000

    80,000

    90,000

    100,000

    75% 76% 77% 78% 79% 80% 81% 82% 83% 84% 85%

    Annual Avg ME

    Annual

    TotalLH

    F04

    F07

    F06

    F08

    F05

    Total maintenance labour hours initially increased toimprove performance and bring lines into the Zone of

    Maintainability. Thereafter labour hours and spendwas reduced but performance continued to improve indication of more efficient maintenance.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    41/48

    Performance Improvement ABI South Africa Efficiency Improvement

    Efficiency & Capacity Improvement

    100%

    99%

    100%

    109%107%

    117%

    126%

    50%

    60%

    70%

    80%

    90%

    100%

    F04 F05 F06 F07 F08 F09 F10 TD

    MachineEfficiency

    80%

    90%

    100%

    110%

    120%

    130%

    EffectiveCapacityIncrease

    Machine Efficiency Effective Capacity Increase

    Investment in

    Support

    Heads

    In a rapidly growing business, investment in assetmanagement people and processes has effectively

    delayed investment in further capacity by four years!

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    42/48

    Growth in GEM* Maturity

    7

    21

    18

    6

    1-

    17

    31

    19

    5

    8

    13

    27

    22

    17

    -

    5

    10

    15

    20

    25

    30

    35

    < 1.5 1.5 - 2.0 2.0 - 2.5 2.5 - 3.0 > 3.0

    GEM Assessment Score

    Numbero

    fOperations

    F08 H2

    53 Operations

    F09 H2

    73 Operations

    F10 H2

    87 Operations

    *The Global Evaluation of Manufacturing (GEM)

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    43/48

    Performance and Practice Correlation

    0

    10

    20

    30

    40

    50

    60

    70

    80

    1 1.5 2 2.5 3 3.5 4

    GEM Maturity

    GlobalKPIRank

    Africa Asia Europe Latin America MillerCoors South Africa

    Consolidated

    rankingacross 15

    globally

    measured

    KPIs

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    44/48

    Summary

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    45/48

    Key Learning on our Journey

    Senior leadership belief in, and engagement with theprocess. A team based organisational design (structure, roles,practices) is most effective for delivering continuousimprovement. Policy deployment through a structured performancemanagement process.

    Optimise the system or process, not the functionalarea. Operational Excellence is entirely dependent upon a

    resolute process of continuous improvement.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    46/48

    Key Learning on our Journey

    Benchmarking performance and practice internally andexternally. Strong partnership with thought leaders and outsideexperts are important to build internal capability andto maintain an external perspective. Organisational learning and collaboration are importantaspects to the improvement process.

    Individual competence and development is crucial. We are still on the journey we are still learning.

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    47/48

    In the end

    Organization doesn't really accomplish anything.Organization doesn't really accomplish anything.Plans don't accomplish anything, either.Plans don't accomplish anything, either.

    Theories of management don't much matter.Theories of management don't much matter.Endeavors succeed or fail because of the peopleEndeavors succeed or fail because of the people

    involved. Only by attracting the best people will youinvolved. Only by attracting the best people will youaccomplish great deeds.accomplish great deeds.

    General Colin PowellGeneral Colin PowellChairman (Retired), Joint Chiefs of StaffChairman (Retired), Joint Chiefs of Staff

    Army of the United States of AmericaArmy of the United States of America

  • 7/28/2019 29_SABMiller_Ed_Koch.pdf

    48/48

    Thank you!

    Questions?