Skarbimierz Gum

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

2. A Brief History April 2013 February 2010

3. Location on European Map Skarbimierz, Poland 60 km from Wrocław

4. SkarbimierzGum Facility • Production Commenced • 2009 • Factory occupies • c.13 hectares • Floor area of Factory • 28,000 m2 • 380 Employees

5. Product’s

6. Business Environment Complexity V’s Volume Reductions

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

10. Five Bold Steps • Ownership by people • People want to participate • Employee referrals • No risk • Food safety • Supporting Ideas • Both ways (downwards & upwards) • Not only month to month operation • Pride • People = ambassadors QUALITY OWNERSHIP ENGAGEMENT • Meeting the business’ changing requirements • #1 choice • Yearly contract delivered • Source of ideas / inspiration for the Customers • New ideas raised by the employees • Pro-activity on personal level OPENCOMMUNI-CATION BIGGER PURPOSE VISION The most successful Gum site where people are inspired to fulfill Customers’ and Business’ needs • Skills matrix • Benchmarking with other plants SHARING KNOWLEDGE & BENCHMARK SUPPLIER OF CHOICE Revisit Vision & KPI Include Vision in Yearly Plan CHALLENGES SUPPORTS Spread the Vision • • Not full capacity • • Irish boss • • Nothing to lose • “Formatting “ the organization • • X-cultural profiles • Changes in business environment • We have no firm idea about the change agents • Cost orientation of Kraft-> people • We lack experience / skills to deploy this vision • We don’t have a crisis to initiate change • • Org. will help • • Willingness to learn • • People we have • WE have created IT • Change of Org NAME Define & Map The Method of Implementation (skills & process) “Buy-in” Change Agents (critical mass) BOLD STEPS THREATS • Do nothing (stop here; let the time pass) • Wrong communication (no proper attention to vision, not talking about it, no alignment)No ownership (by FLT, no identification with vision especially Mgrs & FLT) • • Changing the leader • Focus on short term only • “It’s our vision You implement it” • No arguments (no info to employees, no support, no benefit)• Passive (lack of collaboration, be a passive participant, no risk management, lack of engagement

11. Site Vision

12. Repetitive Flexible Supply

14. We can do Anything But We cannot do Everything!

15. We Need A Plan

16. CIRoadmap

17. Lean Academy 2013Time of InternalTrainers! • Goals: • Short term: Createstandards and transfer of goodknowledgebetweenoperators and technicians, createskillsmatrix with clearresponsibilities • Long term: GE improvement Area: Loesch Lines I stage: Recruitmentprocess for operators - 15 people applied! - done II stage: Train-the-trainercourse and peopleselection – in progress III stage: Createskillsmatrix For whom: Technicians Operators Team leaders

18. Lean Academy Trainings - 2013 SMED Lean Manufacturing basics Heijunka Internal trainers academy Problem Solving Small Group Activities TPM • Dates

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

20. CI ProjectsMain Lean/Kaizen & 6Sigma projects Finished: Started: In Progress: In Progress: Started: In Progress: Overweightreduction on Pellets Waste reduction on LTM machines Overweightreduction on Slabs Changover timereduction by 50% on O’Hara lines Waste levelreduction on Slabs CoatersCleaningtimestabilisation (135 mins) Magda Karabowicz Piotr Żurawski Ala Jastrząb Bożena Socha Marcin Borowski Klaudia Libner-Łukaszenia Target: Average Reduction from 3% to 2,25% Target: Reduction from 5% to 3,5% Target: Average Reduction from 2,05% to 1%; Target: Reduction by 20% 6 Sigma Projects Lean/Kaizen Projects

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

22. CI– SMED Activities 12’’ Line 16’’ Line Loesch Lines Time reduction for 130 minutes changeovers in 12” line can be reduced by43 % Time reduction for 180 minutes changovers in 16” line can be reduced by 50% Changeover on Loesch from18 to12 format – 86 % time reduction 33 % 50 % 43 % ~ 131 kPLN savings ~ 153 kPLN savings ~ 156 kPLN savings Timing: 31st of December 2012 Timing: 31st of December 2012 Timing: 31st of January 2013 Current state observed Future state Current state SOP Current state SOP Current state observed Future state Step 1 Current state SOP Current state observed Future state Step 1 Future state Step 2 80 % 86 % Future state Step 2

23. Utilities

24. BenchmarkingVisits 2013 Today 2013 Kaizen Institute Conference 2012 November March January July May September October Poznań Open training Kaizen Basics

25. Not the End, only a Pause