Cultural Revolution - How ILC Brewery of El Salvador

Cultural Revolution - How ILC Brewery of El
Salvador managed their change of culture.
Agenda:
• ILC Background.
• Manufacturing Vision and Mission.
• Brief history of our WCM/TRACC and continuous
improvement initiatives.
• Results achieved, challenges faced and overcomes.
Let's discuss….
© SABMiller plc 2005
Agenda:
• ILC Background.
• Manufacturing Vision and Mission.
• Brief history of our WCM/TRACC and continuous
improvement initiatives.
• Results achieved, challenges faced and overcomes.
ILC Background
• In 1906 La Constancia Brewery was born in the
neighborhood of Santa Cruz, in the city of Santa Ana,
being the first company dedicated to the production
of beer in El Salvador.
• The company started with 4 brands: Perro, Abeja,
Extracto de Malta and Pilsener.
• In 1920 the first bottling plant for carbonated soft
drinks was founded in the city of San Salvador.
• In 1928 La Constancia Brewery is transferred to the
city of San Salvador, in Avenida Independencia, with
new production machinery and equipment.
ILC Background :
• In 2001, a stock exchange is realized between Grupo
AGRISAL and the multinational company South African
Breweries, establishing the holding BevCo; integrated
by the following companies: SAB ltd., La Constancia,
Embosalva, Industrias Cristal and the group of
companies of Cerveceria Hondureña.
• In 2002, SAB ltd. acquires the 100% of the stocks of
the Miller Brewing Company, the second largest
brewing company in volume in the United States of
America; changing its name to SABMiller plc, and
becoming the second global largest brewing company
in volume.
ILC Background :
• In 2003, the beverage companies: “Cervecería La
Constancia”, “Embotelladora Salvadoreña” and
“Industrias
Cristal
de
Centroamérica”
are
consolidated; giving life to a new multi beverage
company named “Industrias La Constancia”.
• In 2005, SABMiller acquires the total stocks of
Industrias La Constancia.
ILC Background:
• Number of Plants:
–
–
–
–
Beer Plant.
Carbonated Soft Drinks Plant.
Water and Juice Plant.
Ice Plant.
• Categories of Products:
–
–
–
–
–
–
–
Beer.
Carbonated soft drinks (CSD).
Isotonic.
Bottled water.
Juices.
Nectars
Ice.
• Number of employees: 1847 (Sept. 08)
ILC Background:
Forecast
Beer
CSD
Water
Juice
Total
Hl- F09
880,000
2,325,000
3,005,000
398,000
6,608,000
ILC Background:
Certifications in ILC:
Division
Certification
Since:
BEER
ISO 9001
Aug 2002
ISO 14001
Aug 2003
HACCP
Aug 2003
OHSAS 18001
Aug 2004
ILC Background:
Certifications in ILC:
Division
Certification
Since
CSD
Phase 1 TCCC
May 2000
Phase 2 TCCC
Dec 2001
ISO 14001
Jan 2002
ISO 9001
Aug 2004
OHSAS 18001
Aug 2004
Phase 3 TCCC
Sep 2004
HACCP
Aug 2005
Phase 4 TCCC
Oct 2005
Agenda:
• ILC Background.
• Manufacturing Vision and Mission.
• Brief history of our WCM/TRACC and continuous
improvement initiatives.
• Results achieved, challenges faced and overcomes.
ILC Manufacturing Vision:
• To be, according to its size and conditions, one of the
most efficient and unique technical directions of the
SABMiller group, regarding the variety of high quality
beverage products, process management, production
costs and mainly standing out for being the group’s
leader in brewing technology.
ILC Manufacturing Mission:
• To manufacture high quality and low cost beverages
that fully satisfy the expectations of our national and
international customers, through the use of state of
the art technology and innovating processes, with a
high social and environmental consciousness.
Agenda:
• ILC Background.
• Manufacturing Vision and Mission.
• Brief history of our WCM/TRACC and continuous
improvement initiatives.
• Results achieved, challenges faced and overcomes.
Evolution of the WCM Program.
• CCI – Competitive Capabilities International
accomplished the Best Practice Performance
Assessment Feedback in September 2002, determining
that best practices were on stage 1.4
TRACC BEST PRACTICE ASSESSMENT
La Constancia
BEST PRACTICES FOR WORLD CLASS PERFORMANCE
WORLD CLASS
COMPETITIVENESS
INDIVIDUALISM
FORMATION
FOUNDATIONS
RELATIONS
PERFORMANCE
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
1.4
SHOPFLOOR TEAMS
5S HOUSEKEEPING
VISUAL PERFORMANCE
MEASUREMENT
Visual Performance
Measurement
SAFETY, HEALTH &
ENVIRONMENT
MATERIALS
MANAGEMENT
PROCESS FLOW
QUALITY CONTROL
SET-UP TIME
REDUCTION
OPTIMUM MAINTENANCE
MIX
AUTONOMOUS
MAINTENANCE
Teamwork
5S
Focused
Improvement
Autonomous
Maintenance
Effective
Maintenance
PROBLEM SOLVING &
CONTINUOUS
IMPROVEMENT
LEADING AND MANAGING CHANGE
OPERATIONS & BUSINESS STRATEGY
© CCA
24 09 02
ON TRACC
ON TRACC
ON TRACC
ON TRACC
Set up Reduction
ON TRACC
Quality
ON TRACC
ON TRACC
Evolution of the WCM Program.
• CCI – Competitive Capabilities International carried out
the Organizational Climate Assessment in October
2002, determining an average practice in stage 3.4
Best Practices For World Class Climate
2. Organisation Health Check (cont.)
Category: All Categories
WORLD CLASS
Organisational Climate Assessment
CLIMATE
JOINT COMMITMENT
JOINT UNDERSTANDING
1.00
2.00
3.00
4.00
5.00
Comm & Info
Categories
PEOPLE RESOURCING
MANAGEMENT
CHANGE MANAGEMENT
RELATIONSHIPS
DIVERSITY MANAGEMENT
DEVELOPMENT
EMPLOYMENT EQUITY &
TRAINING AND
WORK
ORGANISATION
REWARDS &
RECOGNITIONS
MANAGEMENT
PERFORMANCE
COMMUNICATION
LEADERSHIP
VISION / DIRECTION
0.00
Vision & Dir & Val
Rew ards & Recg
Operators
Middle Managers
Training & Dev
Senior Managers
Relationship Man
Continuous Improvement
Scores
Evolution of the WCM Program.
• Developed during the first
semester of F04 (2003):
– Workshop to generate a
sensible mind set in all
employees.
– The WCM Organization is
developed. Facilitators,
auditors, instructors,
trainees and team leaders
are trained; defining roles
and responsibilities.
• During the second semester
of F04 we began
implementing the TW, 5S,
VPM and FI.
Structure:
• Implementación: Estrategia
y Objetivos.
• Desiciones sobre politicas
• Revisión avance
• Equipo Multi funcional
• Desarrollo del plan de
implementación.
• Implementación de las
mejores prácicas.
• Reporta del progreso al
comité timón
Comité timón
Fuerza operativa
Facilitadores
Instructores
Auditores
Workplace
Team
Workplace
Team
Workplace
Team
Workplace
Team
Workplace
Team
• Consultores internos.
• Facilita la implementación de las MP
• Facilita la mejora continua
• Facilita el liderazgo de los equipos
• Retroalimentación a la fuerza operativa.
Workplace
Team
• Instructores de las
herramientas de MP
• Uso estándar de kit de
capacitación
• Entrenamiento justo
a tiempo
• Tropicaliza el entrenamiento
•Seguimiento y evaluación del MCM
• Mantenimiento del sistema de
comunicación.
• Evaluación de clima organizacional
de las áreas del MCM.
9
Last Evaluation
September 11th., 2007:
(Digitracc ver. 3)
TRACC BEST PRACTICE ASSESSMENT
La Constancia
24 09 02
INDIVIDUALISM
FORMATION
FOUNDATIONS
Stage 1
Stage 2
Stage 3
Teamwork
ON TRACC
ON TRACC
ON TRACC
Visual Performance
Measurement
ON TRACC
ON TRACC
ON TRACC
5S
ON TRACC
ON TRACC
ON TRACC
ON TRACC
ON TRACC
ON TRACC
ON TRACC
ON TRACC
ON TRACC
ON TRACC
ON TRACC
ON TRACC
3.60
Set up Reduction
ON TRACC
ON TRACC
ON TRACC
ON TRACC
Quality
ON TRACC
ON TRACC
ON TRACC
Focused
Improvement
Autonomous
Maintenance
Effective
Maintenance
3.50
RELATIONS
PERFORMANCE
Stage 4
Stage 5
3.46
3.61
3.74
3.19
3.88
3.10
4.04
Continues Improvement initiatives.
Brews per day
7.15
8
7
6.58
6.76
6.95
7.07
F04
F05
F06
F07
5.81
6
5
4
4.61
3
2
1
0
F02
F03
F08
Key improvement initiatives:
•
•
•
Improvement of malt specifications.
New mill and malt cleaning system.
Improvement of the beer filtration system.
•
•
Substitution of starch by maltose.
Improvements in preventive and predictive maintenance.
Continues Improvement initiatives.
Water ratio ( Hl/Hl)
11.15
12
10
8
6.63
6.36
5.42
6
4.93
4.66
4
4.19
2
0
F02
F03
F04
F05
F06
F07
Key improvement initiatives:
•
•
•
•
•
•
Technology conversion.
Installation and calibration of gauges.
Re use of water through cooling towers for pasteurizers.
Culture of rational use of water.
CIP improvements.
Continuous improvement TW.
F08
Continues Improvement initiatives.
Electricity Ratio (KWH/ HL)
30
25
21.92
20
15.38
15
12.5
9.63
10
10.28
9.71
5
9.83
0
F02
F03
F04
F05
Key improvement initiatives:
•
•
•
•
•
Technology conversion.
Installation and calibration of meters.
Efficiencies of production lines and utilities.
Culture of rational use of energy.
Continuous improvement TW.
F06
F07
F08
Continues Improvement initiatives.
Thermal energy ratio (Mj/Hl)
164
180
146
151
160
130
140
122
120
97
100
80
99
60
40
20
0
F02
F03
F04
F05
F06
Key improvement initiatives:
•
•
•
Technology conversion.
Efficiencies of production lines and utilities.
Optimize condensate recovery.
•
Continuous improvement TW.
F07
F08
Continues Improvement initiatives.
Line 4 Factory Efficiency (%)
70.00%
62%
60.00%
49%
50.00%
40.00%
48%
41%
52%
42%
30.00%
20.00%
10.00%
0.00%
F03
F04
F05
Key improvement initiatives:
•
•
•
•
Effective autonomous maintenance.
Setup time reduction
Continuous improvement TW.
Optimization of production planning.
F06
F07
F08
Continues Improvement initiatives.
Line 4 Machine Efficincies (%)
95.00%
91.9%
90.3%
90.00%
86.7%
87.6%
85.3%
85.00%
80.00%
78.8%
75.00%
70.00%
F03
F04
F05
F06
F07
F08
Key improvement initiatives:
•
•
•
•
•
Effective autonomous maintenance.
Improvements in preventive and predictive maintenance.
Continuous improvement TW.
Optimization of Production planning.
5 “S”.
Continues Improvement initiatives.
Total Extract Beer Losses ( % )
10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
9.26%
8.10%
5.53%
4.22%
F02
F03
F04
F05
4.06%
F06
Key improvement initiatives:
•
•
•
•
Technology conversion.
Operational efficiencies for brewing and packaging.
Optimization of start-up and shut-down losses.
Continuous improvement TW.
3.68%
4.69%
F07
F08
Continues Improvement initiatives.
WATER RATIO HL/HL
3.20
THERMAL ENERGY MJ/HL
30.00
3.13
3.10
25.00
3.00
24.23
18.62
20.00
2.90
15.00
2.80
10.00
2.70
2.72
2.60
5.00
0.00
2.50
F05
F06
F07
YTD F09
F05
F06
F07
Key improvement initiatives:
• Efficiencies of production lines and utilities.
• Culture of rational use of water.
• Continuous improvement TW.
YTD F09
Continues Improvement initiatives.
FACTORY EFFICIENCY % HALL
MACHINE EFFICIENCY % HALL
69.15%
70.00%
68.00%
93.21%
94.00%
92.00%
66.00%
90.00%
64.00%
88.00%
62.00%
60.00%
86.00%
60.90%
86.24%
84.00%
58.00%
82.00%
56.00%
F05
F06
F07
YTD F09
F05
F06
F07
YTD F09
Key improvement initiatives:
•
•
•
•
•
Effective autonomous maintenance.
Improvements in preventive and predictive maintenance.
Continuous improvement TW.
Optimization of Production planning.
5 “S”.
Continues Improvement initiatives.
PREFORM LOSS %
SYRUP LOSS %
0.38%
0.40%
1.20%
1.03%
0.35%
1.00%
0.30%
0.80%
0.25%
0.20%
0.60%
0.15%
0.40%
0.10%
0.10%
0.20%
0.05%
0.00%
0.00%
F06
F07
0.00%
YTD F09
F05
F06
F07
YTD F09
Key improvement initiatives:
•
•
•
•
Effective autonomous maintenance.
Improvements in preventive and predictive maintenance.
Continuous improvement TW.
Optimization of Production planning.
Agenda:
• ILC Background .
• Manufacturing Vision and Mission.
• Brief history of our WCM/TRACC and continuous
improvement initiatives.
• Results achieved, challenges faced and overcomes.
Results achieved, challenges
faced and overcome:
• Create a functionally attractive environment in which
people have great pride.
• Empower people in the workplace to achieve a common
goal of improve performance, by developing them into a
flexible and self directed team, which act as a small
business unit in the organisation.
• Provide information to manage and control the
performance of the team in line with organisational
objectives.
• Keep the continuous improvement process and assure
an operational excellence.
Results achieved, challenges
faced and overcome:
• Increase the speed of execution, delivery, problem
solving and value creation.
• Continuous focus in the quick delivery of high quality
products, with lower costs.
• Flexible operations to quickly adapt to the global
environment, technological and innovation changes,
aligned with consumer’s demands.
• Constant changes in technological levels and global
complexity.
Results achieved, challenges
faced and overcome:
• Develop the teamwork under the Manufacturing Way
philosophy.
• Facilitate collaboration due to the continuous
globalization of SABMiller, through a quick adoption and
display of best practices, and share internal knowledge.
• Maximize the effective utilization of the available
resources.
Let's view….
Continuous Improvement Initiatives
Malt reception
Before
After
Continuous Improvement Initiatives
Brewhouse
Before
After
Continuous Improvement Initiatives
Brewhouse
Before
After
Continuous Improvement Initiatives
Old Cellars
Before
Continuous Improvement Initiatives
New Cellars
After
Continuous Improvement Initiatives
New Cellars
After
Continuous Improvement Initiatives
BEFORE
Quality at the source – Brewing Lab.
After
AFTER
Before
Continuous Improvement Initiatives
Packaging Lines
Before
After
Continuous Improvement Initiatives
BEFORE
Packaging Lines
AFTER
Before
After
Continuous Improvement Initiatives
Utilities
Before
After
Continuous Improvement Initiatives
Before
Utilities
After
Continuous Improvement Initiatives
Quality at the source – Brewing Pack.
BEFORE
Before
AFTER
After
Continuous Improvement Initiatives
Best Practices
Cheers….
Salud…
Prost…
Salut…
Latinashi…
Na zdravi…
Na zdrowie…
Oogy wawa…