This document outlines the IL6S (Integrated Lean 6 Sigma) journey of a factory to become lean. It describes the 10 phases of the IL6S strategy including launching the program, selecting a model line to learn and implement techniques, focusing on daily work and continuous improvement, getting expert assessments, expanding techniques to all lines, developing self-sufficient teams, conducting internal and external benchmarking, and evolving the company culture. The overall goal is to transform the factory operations and culture to achieve high performance as measured by key metrics like defects, efficiency, and costs.

1. December 2018,
for Lean Forum
FACTORY of the FUTURE
LEARN-DO-TEACH story to become
LEAN PLANT
IL6S Journey

2. IL6S Phases in LEAN Strategy
IL6S (Integrated Lean 6 Sigma) is iintegration of:
TPM (Total Productive Maintanance)  Aims «0» Breakdown
HPWS/HPO (High Perfromance Work System / High Performing
Organization)  Aims 100% Organization performing at its peak
Lean Supply Chain  Aims creating «flow» and «0» loss
6 Sigma  Aims «0» defects with a controlled process

3. Шаг 1 – запуск программы
Inspire & Engage Team
BIC SUPPLY CHAIN

4. Шаг 2 – выбираем модельную
линию
Model Line to LEARN and DO IL6S

5. Clean to be LEAN. Personal Example
Шаг 3 – теория и практика. Личный пример

6. 3 Days of Learning and Practice
Научиться и попробовать на
практике:
- Инструменты безопасности при
проведении чистки
- Обнаружение дефектов (отклонение от
базового состояния)
- Обнаружение источников загрязнения
- Передача знаний - OPL
- Основы Kaizen
- Основы 5 Why?
Basic Condition =
1) Equipment is Clean + 2) Adjusted + 3) Lubricated

7. IL6S Implementation Steps
Activity at production
Day 2
21.01.14
Day 3
22.01.14
Total
Defects (all categories) 229 214 443
* Safety defects 44 57 101
Plant employees
attended
47 47 47
OPL 8 34 42
Kaizen ideas 19 57 76
5 Why 3 9 12
Phase 0 Started. First Results
Январь 2014

8. Journey to be… “The BEST PLANT in MDLZ!”

9. Every day, Hard work… Defects Elimination
Weeks 1-52’14
Phase 0 Audit
Phase 0 Start Шаг 4 – фокус и ежедневная
работа!

10. Total DEFECTS 1250
DEFECTS eliminated 99%
DEFECTS related to SAFETY 100%
Reduction time of STOPPAGES 60%
Reduction time of INSPECTION 50%
Reduction time for CLEANING 30%
Reduction time for major SANITATION 3 times
GE increase +15%
GE maximum level reached 87%
THEO capacity increase 20%
Success Story of Model Line

11. 11
Phase 0 Assessment
Шаг 4 – экспертная оценка. Подтверждение

12. IL6S Phases in LEAN Strategy

13. Шаг 5 – обучение на всех линиях
шаг за шагом!
We Learn CIL
Initial cleaning
Initial cleaning
Safety First
(LOTO) !!!
Knowledge transfer
Phase 1 OPM
Base condition
Abnormalities detection
Developed CapabilitiesLearn
Autonomous
Maintenance steps

14. Spare parts storage room
Restore base conditions
5 S
12 steps Kobetsu Kaizen
Root cause analysis
Gemba open discussions
BOS
Developed CapabilitiesDo
Шаг 6 – внедрение и поддержка каждый день

15. Шаг 7 – передача навыков от экспертов к
работникам линий
Daily Gemba Walk by Leadership
Training center Practical trainings
Technical modules workshop
Developed CapabilitiesTeach
Autonomous Maintenance Technical modules trainings
Skills matrix for each line/team

16. ОПЕРАТОР
Относительно своей
системы
•Обучение в соответствии с
работой системы
•Ежедневный анализ
эффективности IL6S
•Управление охраной труда в
соответствии с IL6S
•Усовершенствование
системы
Относительно своего
оборудования...
•Уменьшение колличества
остановок
• Усовершенствование CIL
•Обучение с использованием
передовых практик
•Регистрация системных
данных
•Устранение потерь
Относительно своего
участка...
•Обеспечение работы участка в
соответствии с СТАНДАРТАМИ
•Дисциплина
•Ежедневное базовое состояние
•Регистрация данных
•Решение проблем
Оператор
участка
Владелец
обордования
Владелец
системы
Teams Self-Sufficiency

17. Шаг 8 – достижение уровня навыков
на всех линиях и в отделах
Plant Capabilities
System Skills
Operational Skills
Technical Skills
91
88
92
94
86
90
86
92
91
89
82
84
86
88
90
92
94
96
Lead FI PM IIM Org E&T QM HSE AM WPI
100 %
Pillar
Leads
qualified 88%
Internal
SME
developed100 %
Pillar
Members
qualified
85
86
95 98 99 99 99
80
0
20
40
60
80
100
120
Line 1 Line 2 Line 3 Line 4 Line 5 Line 6 Line 7 Line 8
Core team Skills Mastery
Support
team
Core
team
target
85%
target
85%
Support team Step Up Card Mastery

18. Шаг 9 – эволюция культуры предприятия
From
blue/white
collars
From “ Silent”
culture
From goals
setting
for WC
From
directional
role of
leadership
to R&R based on
Results and
business
contribution
From shift –
supervision
production
structure
From
feedback at
YE
From limited
scope of
responsibilities
to effective
Team work
to core/support
colleagues
to “ Thank You”
culture
to equipment/
process/
system
ownership
to regular 1x1
meetings
to line teams
lead by line
leader
to more servant
leadership and
coaching
to “principles” as
“best for MDLZ”
to goals and
development
plans for
100%
colleagues
From
Group of
specialists
From standard
R&R system
From rules
Cultural Changes

19. RESULTS: KPIs Progress to CBN
0,1 0,2 0,8
3,0
18,1
22,0
0
5
10
15
20
25
2013 2014 2015 2016 2017 2018
BOS per employee
0,2
0,11
0,09
0
0,05
0,1
0,15
0,2
0,25
2016 2017 2018 YTD
Confirmed Consumer Complaints
Per Million Units
95,5 95,1
92,1
96,1
97,0
98,1
95,5 95,1
95,8
98,2 97,4 98,6
85
90
95
100
2013 2014 2015 2016 2017 2018
Compliance To Schedule, %
0,3
0,7
1,0 1,1 1,2
0
0,5
1
1,5
2014 2015 2016 2017 2018
Kaizen (per employee)
79,0
80,9 81,8
85,6
83,2
86,686,0 87,1 88,1
90,4 91,4 90,9
70,0
75,0
80,0
85,0
90,0
95,0
2013 2014 2015 2016 2017 2018
Global Efficiency, %
4,1
3,6 3,5 3,3
2,9
2,3
2,6 2,4
1,8
1,3 1,1 1,0
0
1
2
3
4
5
2013 2014 2015 2016 2017 2018
RM/PM Losses, %

20. Phase 1 in 21 Months From GOOD to GREAT
Шаг 10 – экспертная оценка. Подтверждение
результатов GE Total plant 88,4%
Conversion Cost reduction 50%
Customer Service (CFR) >99%
Minor Stops reduced (all lines) 90%
Cleaning time reduction (all lines) 90%
Sources of contamination reduction 92%
MTBF Packing lines 85 min
MTBF Model line > 200 min
Total Abnormalities fixed 12 838
Abnormalities Autonomy 72%
IL6S pillars 11 / 100%
VISION: “Preferred supplier in
Chocolate and Biscuit!”

21. IL6S Phases in LEAN Strategy

22. Our Vision
Factory of the Future
HPO Высокоэфективная организация
100% engagement and ownership
Simplified lean structure
Оптимальная структура организации
Top- tier financial performance
Наилучшие финансовые показатели
Digitalization &Smart automation
Разумная автоматизация
Self – sufficient teams
Самодостаточные команды
Skilled and capable people

23. E2E Synchronization
Enabling Work Processes
Losses:
✓ Line Feeding Process
✓ Production Scheduling
Tools/work processes:
✓ SMED/Rapid CO
✓ RFS /Production levelling
✓ Kanban
Losses:
✓ Customer Relationship Managment
(CRM)
Tools/work processes:
✓ Demand Pull – Integrated systems
✓ Demand sensing
✓ Customer Driven Supply Network
✓ Service Level Agreements/trade terms
✓ Design to shelf
Losses:
✓ Outbound Logistics mgm
Tools/work processes:
✓ Backhaul/Xdock/RFS for trucks
✓ Direct plant shipments
✓ Network design
✓ Warehouse optimization
✓ Kanban
E2E Losses:
✓Cash, Cost, Service
Tools/work processes:
✓E2E Inventory
✓E2E SC Cost
✓E2E DMS
✓Demand & Supply
planning
Losses:
✓ Inbound
Logistics
Tools/work processes:
✓ Inbound Logistics Optimization
✓ Milk Run Managment
✓ Hole in the Wall
✓ Kanban
Tools/work processes:
✓ SMI, JIT, Consignment
✓ MOQ/LT Reduction/Localization
✓ Supplier Development Program
Losses:
✓ Supplier Relationship
Managment (SRM)
✓ Material Requirements Plan
(MRP)

24. Journey to Supply Chain Excellence
Value Chain
InnovationChain
Customers
and
Consumers
SuppliersProcurement Make Log Ops
DSP & CS
Technology Development
Product Development
KEY
ACHIEVEMENT
S
IL6S
PHASES IL6S Phase 0 & I
Anticipate
Reliable, Predictable
and Cost efficiency
operations
Reduce variability of
manufacturing process
IL6S Phase II & III
Integrated & Collaborative Supply Chain
Integration across extended supply chain
for profitable demand fulfillment
Improve SC flexibility and reduces
dramatically production cycle times
IL6S Phase IV
Orchestrated Supply Chain
Profitable creation of customer value
by translating innovation into
execution across extended networks
Speed to market and fully
producing to demand
KEY
ACTIVITIES

25. Line aligned organization - self-sufficiency and capability to
carry out business with the minimum support from outside
Every shift based on “STAR” model, where the shift team
responsible for Leadership (Team Leader), HS&E, Quality,
Planning, E&T and Cost
Core Team Evolution

26. JOURNEY TO EXCELLENCE - Benchmarking
Шаг 11 – внутренний и внешний бенчмаркин
Еxternal benchmarking
Marketing
key competitors benchmarking
Quality Benchmarking

27. • AM step 1 Cleaning and Initial Inspection
• AM step 2 Eliminate SOC/HTR areas
• AM step 3 Provisory CIL & Centerline Mgmt. PM-AM skills transferring
• IDP for core team. Pay for Performance
• AM step 4 General Inspection.
• Empowerment for operators for losses prevention through inspection and repair routines.
• Start 6 Star Model implementation (FoF concept). IL6S Pay System worked out
• AM step 0 Learning, Teaching & Preparation
• Start line-aligned structure development. Pay for tasks not so much skills
• AM step 5 Autonomous Inspection
• AM step 6 AM Inspection Std. Develop the ability to correlate the equipment working principles
with the conditions for zero defect.
• 6 Star Model development
• Salary Structures built on IL6s Roles – Business results & Capabilities progression
Phase 1
Phase 0
Phase 2
Phase 3
• AM step 7 Autonomous Management. Full responsability over the line management.
• Continuous Improvement of the routines from steps 1-6
• 6 Star Model & autonomous teams
Phase 4
IL6S payment system –
based on Business Results & Capability

28. Smart Automation Journey
Flexible automation
with cobots
Gravity Warehouse
Robotization solutions

29. Digitalization Journey
Video control
iQS
iTab
Video OPL
E- learning training
IDF / DMS
EMS
QR code - simple access to product
and plant documentation

30. Phase 2 in 20 month vs. 3 years – BIC Globally

31. BIC
COGS
Harmony
and
Sustainabilit
y
100%
core team
self-
sufficiency
Vision 2025
Great assets in a Great place for
a Great people to work and
deliver Great results
Great Place
Great People
Great Work
Great Assets
Great Results
Loved
brands
household
penetration
Craft - made delicious moment for
each consumer
5G
Lead and Live Consumer
Inspired Quality
WorkPlayLiveSafe
Health and
Wellbeing
Empowering autonomous
team
Winner Mindset
IL6S Phases in LEAN Strategy