Manual de procedimientos

Page 1

Brazil Gap Assessment

April 2010

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Brazil OPEN Implementation Team

Roberto Seibel

Sponsor

Aurelio Silva

OPEN Leader

Felipe

Teloeken FM Book Coordinator

Anacker

Seibert

Ledi

Victor H. P

WPO Book Coordinator

Q. Book Coordinator

OA Book Coordinator

Leonardo A.

Oliveira

Alexandre

Luiz B.

MM Book Coordinator

OI Book Coordinator

Luz

Kroth

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Content

Flow Manufacturing.......................................................................................................  Work Place Order...........................................................................................................  Quality...............................................................................................................................  Operational Availability..................................................................................................  Material Movement........................................................................................................  Organizational Involvement..........................................................................................  Assessment Summary...................................................................................................

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Flow Manufacturing

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Felipe

Teloeken Op. Planning Sup.

Daniel

Fabiano

Ă?talo

Henn

Oshima

Vettorazzi

Maintenance Cost Analyst

Managerial Inf. Sup

Maintenance Sup.

FabrĂ­cio

Edson

Production Supervisor

Secondary Process Mgr

Egert

Silva

Site Planning Value Stream Mapping Gap Assessment Manufacture is Organized by Value Streams Product Cycle Time Takt Time Improvement in Value Stream Process Synchronization Process Standardization Practices

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FM-1 Site Planning Score:

Criteria and Observables:

3.00

Action Plans have been defined and started; key support structures/tools are being used, and there is measurable improvement to a certain extent. The relation with OPEN has commenced. The site plan has been defined for a future stage. The action plan and support structure are being used. Metrics and follow-up systems have been defined; there is some evidence of improvement in OPEN. RSG Tip

Project

This planning approach is a best practice and it is recommended for the rest of the affiliates to review it and adapt it to their own operation. This practice only needs time to mature and grow stronger.

Prioritizing Chart Área

Proyectos

Abr

T.01 - Fluxo de informação de Mercado

Mai

Jul

Ago

Primario

Kaizen Kaizen Projec

Implantado Kaizen FM

$ 21, 000. 00 Kaizen MM

$ 6, 500. 00

Secundario

GIE - MIM Kaizen MM

Reducción e implantación

Gráfica

$ 194, 000. 00

PDCA - QA Kaizen MM

S. 9 - Reducción de tiempo

GIE - DD Kaizen FM

$ 40, 000. 00 $ 225, 000. 00

G.09 - Reducción de quebras

G.04 - Aumento de productividad

$ 300.000. 00

Kaizen DD

S.14 - NIveles de calidad VQI

G.07 - Setup de impresora

$ 100, 000. 00 $ 83, 000. 00

THT.01 - Productividad

G.11 - Reducción de stock

$ 51, 385. 00

Kaizen MM

D.01 - Stock de materiales

S.17 - Reducción de stock

Ganho

$ 2141, 000. 00

GIE - MIM

T.06 - Registro de Productos

S.12 - WCM Manutención efectiva

Dic

$ 45, 200 00 Kaizen FM

G.05 - Flujo robusto

S.13 - Aumento de productividad

Nov

GIE - MIM

T.09 - Reducción de costos

CL.05 - Rencimiento GLP

Out

$ 150, 000. 00

T.05 - Reducción de prototipos

Cl.03 - Reducción de aplicacion de PG y PLY

Set

GIE - MIM

T.03 - Reducción de inventario DIM

Corporativo

Jun

$ 118, 000. 00 Kaizen DD

$ 35, 000. 00 Kaizen DD

$ 150, 000. 00

Flow Manufacturing

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Flow Manufacturing: 204

209

VQI Evolution

165 152

209

204

158

170

63. 14

159

63.14

61.11

165

63. 14

152

158

170

63. 14

170

159

2008 2009

jan

Feb

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

63.14

61.11

YTD 2010

Uptime Evolution

64.08

63.20

jan

Mar

63.14

Feb63.14 Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

64.0

63.20

159 60.03

2008 2009

6

63.20

Dec

YTD 2010

60.34

2008 2009

60.03

60.34

2008 2009

62.19

64.05

jan

Feb

62.19

64.05

62.1

jan

Feb

Ma

61.11 63. 14

170

60.34

61.112008 2009

YTD 2010

60.34

116

YTD 2010

62.19

63.14 64.05

62.19

jan

Feb

Mar

64.05

62.19

2008 2009

Feb

Mar

CPQI - Total Apr

62.19

117

jan

115

May

Jun

Jul

Aug

Sep

Apr

115

May

116

Jun

Jul

Oct

Nov

114

Aug

Sep

Dec

YTD 2010

CPQI Evolution

1,07

1,02

1, 05 1,00 CPQI - Total

1, 01

1,05

1.02 60.03

Dec

63.14

159 60.03

Dec

64.08

63.20

119

Oct

Nov

1.02 0,42

1,05 0,39

1,0,42 01

1,00 0,45

1,0,36 05

1,02 0,39

1,07 0,39

set-09 116

out-09 117

nov-09 115

dez-09 115

jan-10 116

fev-10 114

mar-10 119

Dec

YTD 2010

abr-10

2,60

0,42

0,39

0,42

0,45

0,36

0,39

0,39

set-09

out-09

nov-09

dez-09

jan-10

fev-10

mar-10

2,51

abr-10

3,14

2008 2009

3,10

3,14

2008 2009

2,70

2,33

2

jan

Feb

M

2,70

2,33

2,34

jan

Feb

Mar

Dim Waste Evolution

07 2,60

9

39 07 -10

3,10

2,51

3,10

3,14

2008 2009

abr-10

2,70

2,33

2,34

jan

Feb

Mar Apr

2,70

2,33

2,34

jan

Feb

Mar Apr

May

Jun

Jul

Aug Sep

Oct

Nov

Dec

YTD

May

Jun

Jul

Aug Sep

Oct

Nov

Dec

YTD

9 3,10

39

-10

2008 2009

abr-10

8

3,14

Flow Manufacturing

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Flow Manufacturing: Leaf

Inventory (U$ Mio) – Jun/09

82,0 Duration: 16 months

Wip 11,4 Duration: 2 months

FG Factory

Dim 7.6 1.8 months

DC’s FG

4,0 4.4 days 546 Mio/cigs

EZD’s FG 13,4

18,2

235, 12 Mia/CIG 18 day’s 319, 9 Mia/CIG 19 day’s

Leaf

Inventory (U$ Mio) – Nov/09

73.7 14.4 months

Wip 11,4 2 months

FG Factory

Dim 7.6 1.8 months

DC’s FG

4,0 5 days 745 Mio/cigs

EZD’s FG 13,4

18,2

116,9 Mia/CIG 9 days 195,6 Mia/CIG 12 days

FM-2 Value Stream Mapping Score:

2.50

Criteria and Observables: All value streams have been identified with their current and future status maps complete. The PCT has been defined and opportunities for eliminating waste have been identified.

RSG Tip Future value stream maps need to be define for the entire value chain. Also, trough a well defined strategy, the VSM should be scaled down to operators, guaranteeing that it is understood, maintained and continually used by them.

Flow Manufacturing

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FM-2 Value Stream Mapping Current Value Stream Map was revised at the end of December 2009 for the whole production chain; Improvements for 2010 were defined and prioritized based on VSM and OPEN tools; VSM responsible team has been defined in order to garantee the continuous update through the Business Units; Visio system has been defined as the software for VSM maintenance; Future VSM has not been defined.

For Illustration Porpuses Only

10

Flow Manufacturing

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FM-3 Gap Assessment Score:

Criteria and Observables:

3.00

The Gap Assessment of the site has been completed. An action plan to reduce gaps has been clearly defined and is being implemented. The action plans to reduce gaps have been defined and are being implemented, with signs of improvement through interdependent elements. The Gap Assessment of the site is now available to be checked.

OPEN Model Brazil re launch in September, October, November and December. The implementation strategy is based on 3 main activities: 1. Change management - training and change team; urgency and Values 2. Books interpretation - write Brazilian version of the Books 3. New VSMs review current VSM supported by PM Mexico In September the book owners worked on OPEN sense of urgency and PM Brazil Operations Values definition:

RSG Tip Given the level of expertise demonstrated by the affiliate, it is expected for the Brazilian OPEN team to actively participate in the definition of the new assessment criteria for the region. Due to the early stage of the system since the re lunch, future follow up to their GA will take them to the next level. .

FM-4 Manufacture Organized in VS Score:

Criteria and Observables:

2.50

At least 80% of factory processes are organized by Value Streams. Plans are continually being developed and realized to organize all factory processes in Value Streams. Natural Working Groups (NWG) and Natural Support Groups (NSG) are aligned to value streams.

Monthly meetings: Safety Performance Quality

Actions through VSM Primary Set up time decrease

RSG Tip

Weekly Meetings: Preventive maintenance Quality Improvement (new materials, prototypes, new products, etc.)

There are still some groups to be defined, since the Natural Working Group should be applied to the entire value chain, and the affiliate should find a definition of its own that makes sense to areas outside manufacturing. Remember the basic cell is the smallest possible group of people sharing common KPIs.

Flow Manufacturing

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FM-5 Product Cycle Time Score:

3.00

Criteria and Observables: PCTs have been put into graphic form for all Value Streams of the line, and a procedure has been developed and implemented to update improvements in the process or major changes to the critical route. There are signs that the PCT is being reduced in line with the targets of future value streams.

For Illustration Porpuses Only

For Illustration Porpuses Only

RSG Tip PCT is defined for current VSM, the improvements in the operation have improve the PCT in specific parts of the value chain; however, since the Future value stream maps are not defined, there is no evidence that the PCT has improve along the entire value chain, which is at the end the final purpose of the element.

12

Flow Manufacturing

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FM-6 Takt Time Score:

Criteria and Observables:

2.50

Takt Time is used as a reference to set the rhythm or speed of most production operations. Most brands (>80%) are manufactured to balance the pattern of the master production plan. Inventory levels begin to decrease according to planned targets.

Theoretical Takt time: 0,6 s/kg (4,0s/cx de cigarro) Real Takt time: cut & dry: 0,74 s/kg casing VA/BY: 0,88 s/kg conditioning VA: 0,88 s/kg conditioning: BY: 0,79 s/kg Primary Process total: 0,88 s/kg (5,9s/cigarette cases) VSM Improvement opportunity : reduce the higher takt time, adjusting the production rhythm Set up reduction time, keeping the production line working during spare time between batches. Old Set up: 13 min New Set up: 06 min New real takt time: cut & dry: 0,74 s/kg casing VA/BY: 0,79 s/kg conditioning VA: 0,79 s/kg conditioning BY: 0,79 s/kg Primary process total: 0,79 s/kg (5,3 s/cigarette cases)

RSG Tip

It is outstanding the level of understating of the strategic insertion of this element in the entire value chain. In order to take this element to a next level, it is necessary to take the concept to the production master plans and integrate it to the future value stream maps once this are defined in order to compare the Takt time and the Planned Cycle Time.

FM-7 Improvement in VS Criteria and Observables:

3.50

OPEN tools are used in 80% of value streams through tasks for waste elimination. NSGs and NWGs check progress at their meetings regarding the future value map, indicator statistics, work instructions and production operation cycles.

Improvement Teams Secondary process – 5 groups Tobacco Process – 5 groups Print Shop – 2 groups

PLAN

The “Improvement Teams” concepts is one of the most solid strengths in the affiliate, and it is a methodology that should be transferred to the rest of the affiliates.

CONTINUOUS IMPROVEMENT CYCLE

K CHEC

RSG Tip

DO

ACT

Score:

Flow Manufacturing

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FM-8 Process Synchronization Score:

Criteria and Observables:

3.00

Pull systems are being widely implemented throughout the factory. Tasks to implement ongoing stream processes in the stream unit are also in process. Initial tasks have been carried out to implement the Pull system throughout the factory. The plan is available for review.

KABAN System

M01

M02

P01

P02

M02

Detalhes Máquina:

Programa: xxxxxx Data: 20/03/2009 Marca: FA000xxxx.00

REGRAS DE ALERTAS:

Verde

Maior de > = 50%

Cinzento

Maior de < = 50%

Azul

Maior de < = 50%

Material

Recibido

Consumido

Disp

% Disp

Hora ultima leitura

46.xxxx

22

10

12

55%

20 / 03  14:21

21.xxxx

10

6

4

40%

20 / 03  13:15

34.xxxx

4

3

1

25%

20 / 03  10:01

81.xxxx

2

1

1

50%

20 / 03  06:21

RSG Tip There are important opportunities in the affiliate regarding process synchronization, one of them is to bring primary process closer to secondary, and by doing so reducing or eliminating inventories and other wastages.

FM-9 Process Standardization Score:

Criteria and Observables:

3.50

There are standardized operating methods that have been documented and implemented with the active involvement of NWGs and there is aplan for these methods to be checked regularly. NWGs are involved in designing and reviewing operating methods; the NSG’s role changes to that of an advisor.

Operations Reward Program PNR As each KPIs has its own weight in the program, its achievement gives points; The points are summed up;

The sum is the percentage of the reward achieved; Population involved in the program – grade 9 and below; The reward varies according to Labor Union agreement;

RSG Tip A new focus on working process standardization is recommended. Process Based Administration techniques may be an option. Regarding the option selected, operators involvement needs to be key in the process.

14

Flow Manufacturing

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FM-9 Process Standardization Score

Possible Points

7. 75

9

9

9

Secondary

8

10

Print Shop

11

10

Factory Yield Export

1

1

Factory Yield Domestic

2

4

Wastage Cast Leaf

0

2

Rejection Cast Leaf

0.8

1

Wastage DIET (Lรกmiana)

2

2

Wastage DIET (Small Lรกmiana)

1

1

Uptime Secondary

5

6

Uptime Print Shop

2

2

Productivity Cast leaf

2

2

Productivity PPPp

4

4

Productivity Diet

2

2

EXPENSES

20

20

22Rejection Int + Ext (bob)

2

2

Rejection Int + Ext (ML)

2

2

1

1

2.55

3

AVG VQI

2

4

Costumers Complains

3

3

90,10

100

Indicator

Target

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Total

SECURITY Accident Sol WASTAGE REDUCTION

TOBACCO

PERFORMANCE

PRINT SHOP QUALITY

PREPRESS Failure by file generated SECONDARY QUALITY CPQI

TOTAL

Flow Manufacturing

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Achievements Main achievements from the FM Book: OPEN Program Deployment; Rewarding Program 2010 (PNR); GAP Assessment (OPEN Program Re-launch); Leadership engagement on VSM process.

Flow Manufacturing 2010 Final GAP Assessment Sub System

16

GA 2009

GA 2010

2011 Target

FM1

Site Planning

1.50

3.00

3.50

FM2

Value Stream Mapping

1.50

2.50

3.00

FM3

Gap Assessment

2.00

3.00

3.50

FM4

Manofacture is organizad by Value Steram

2.00

2.50

3.00

FM5

Product Cycle Time

1.00

2.50

3.00

FM6

Takt Time

1.00

2.50

3.00

FM7

Improvement in Value Stream (Value Stream Segment)

1.50

2.50

3.00

FM8

Process Synchronization

1.00

2.50

3.00

FM9

Operating Methods or Process Standardization Practices

1.00

3.50

4.00

Average

1.39

2.72

3.22

Flow Manufacturing

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Flow Manufacturing Book Overall Assessment The progress of the system over the period of a year is truly impressive. The team managed to evolve from using isolated lean tools to a truly integrated continuous improvement system. The level of understanding of the value stream maps developed for each production format is outstanding. A truly remarkable aspect is the integration of Finance into the improvement projects feasibility analysis, integrating to the site plan only those projects that prove to create value for the value chain and are coherent from the business stand point of view. Different implementation and study groups are defined, all of them with their own scopes and methodologies. The improvement groups are affective consultants of the Natural Working Groups in the whole process. Supply Chain is fully integrated into the system, understanding the main aspects of it and the relationship of the pillar books, but above all; they have achieved an strategic understanding on those elements in which they impact directly.

FM Book 2009 - 2010 Progress 4.00 3.00 2.00 1.00 0.00 FM 1

2009 GA

FM 2

FM 3

2010 GA

FM 4

FM 5

Avg 2009

FM 6

FM 7

FM 8

FM 9

Avg 2010

Work Place Order

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Work Place Order

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Brazil OPEN Implementation Team

Leonardo A.

Alexandre L.

Pillar Coordinator

Pillar Sub Coordinator

Anacker

Gralow

Barros

Girardi

Luis

Rafael

Fabrício I.

Secondary Coordinator

Primary Coordinator

Print Shop Coordinator

Support Team

Luciana

Marcelo

José I. Backes

Bielscki

Secondary Sub Coordinator

Primary Sub Coordinator

Print Shop Sub Coordinator

Support Team

Gustavo

Weber

Schaefer

Brusius

Mendes

Selmo

Organization of Working Area Visual Controls Defining Location System Presentation of Parts Factory Communication Center Central Cell Information Area

19

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WO-1 Organization of Working Area Score:

Criteria and Observables:

2.50

Factory management is aware that Organization of the Working Area. An audit should be carried out to check organization in their working area. Location of aisles, equipment and some material has been defined. It is difficult to correctly locate other items in the working area. Dirt, garbage and liquid accumulate during working hours, but the area is cleaned at the end of the shift.

ISO 14001 and OHSAS 18001 certification achieved on August 2009 SOL revamp – established new check list focusing on behavior ISO system project was prepared and it is under management approva

RSG Tip There a significant improvement in Organization of Working Areas, in order to reinforce the system, The implementation of 5S’s audits could provide elements to gain sustainability of the progress achieved so far. Regarding the SOL system, it is important to be careful of going always beyond and not to assign behavior as a possible cause for safety issues, since this may deviate from the true origin of the problem. The print shop is a perfect example of what can be achieve in a very short time. WPO gives costumers a sense that product are produce with the outmost care and detail to attention.

WO-1 & WO-7 ‘SOL Program’ Evolution Previous version

Current version

Safety

56%

30%

Order

23%

20%

Cleanness

12%

5%

Results

10% 45%

Behavior Total

100%

100%

WO team revised SOL Program in order to focus in employee behavior which has been identified as the basis for Safety, Order and Cleanness improvements.

20

Work Place Order

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WO-1 & WO-7 Tobacco Processes

Tobacco Processes - materials have their own position defined. Exception made for place where tobacco can be contaminated (NTRM)

WO-1 & WO-7 Secondary Process

Secondary Process – storage area are marked for materials and equipment.

RSG Tip Well done!!! AN organized environment where everything is in order not only assures better product being made, but also allows for a substantial reduction and elimination of waste, more important, it shows costumers a commitment to meeting quality needs for their products.

Work Place Order

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WO-1 & WO-7 Print Shop

Print Shop – after a Kaizen week, as minimum as possible inks are kept near the machine. Inks and plastic tubes storages are well organized.

WO-2 Visual Controls Score:

1.50

Criteria and Observables: Factory management realizes that a common visual control system should be implemented throughout the factory. This task has started in some parts of the factory. Location of aisles, equipment and some material has been defined.

RSG Tip OPEN is a visual management system, even when evidence of this is begin to show, a wider scope deployment is needed in order to facilitate abnormal situation identification. Also, measuring effectiveness of the visual aids such as the ANDON needs to be implemented.

22

Work Place Order

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WO-2 Tobacco Processes

Tobacco Processes – orange valves must kept open, white valves must kept closed during operation Nitrogen vessels have tags to easily identify (full, empty or using) Operational condition were marked in some manometers

WO-2 Secondary Process

Secondary Process – plastic labels to identify adhesive (type and batch) Adhesive level indicator

Work Place Order

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WO-3 Defining Location System Score:

Criteria and Observables:

2.50

A system has been set up for the common definition of locations for at least 80% of the factory. The implementation process is scheduled to be completed within the next three months. There is a plan that is being put into action.

A common procedure was established considering racks, area and equipment identification.

RSG Tip There is a robust warehouse management system implemented in Finish Goods that could be deployed for DMs. The Greenfield project should be born with this kind of systems in place, in order to take advantage of the experience already attained. This particular practice is a good example of how OPEN is an umbrella that embraces all the elements within the operation and all across the value chain.

WO-3 Finished Goods warehouse

Finished Goods Warehouse rack identification

24

Work Place Order

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WO-3 Tobacco Processes

Building, areas and equipment identification

WO-3 Secondary Process

Building, areas and equipment identification

Work Place Order

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WO-4 Parts Presentation Score:

Criteria and Observables:

2.50

There are still some areas of the factory where there is a waste of movement when receiving or placing material. Corrective action has been identified and established and is being taken. Natural working groups are involved in establishing the best means for presenting material. There are some signs excessive movement (waste) at the work station.

Reduction of stocks in production floor; Movements optimization (people and material) improving accessibility for NWG.

RSG Tip Involvement from the Natural Working Groups should be carefully integrated, having a balance of creativity from the Natural Working Groups and Natural Support, groups, taking always into account that the system revolves around the operator and no the other way around.

WO-4 Secondary Process

Parts presentation – tools and materials.

26

Work Place Order

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WO-5 Factory Communication Center Score:

Criteria and Observables:

2.50

The factory communication center has been set up. Information displayed is changed regularly to keep employees interested. Employees use the communication center to find out what is going on in the factory.

The factory communication center has been set up. Information displayed is changed regularly to keep employees interested. Employees use the communication center to find out what is going on in the factory.

RSG Tip There is a best practice in the print shop that should e standardized and implemented across the rest of the business units. There are many information boards around the operation, this created the impression that there are different messages competing among them. Together with the Organizational Involvement Book, the right messages, at the right time and trough the right media should be decided and standardize.

WO-5 Secondary Process

Secondary Process Communication Center

Work Place Order

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WO-5 Tobacco Processes

Tobacco Processes Communication Center

WO-5 Print Shop

Print Shop Communication Center (LCD Monitor, Personal Protection Equipment control).

28

Work Place Order

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WO-6 Central Cell Information Area Score:

Criteria and Observables:

2.00

Factory management realizes that there is a need for a central cell information area, based on organization of working area and visual control criteria. Factory management and NSGs have developed and documented a procedure for setting up the central information area at all the right levels of value streams. The implementation procedure has been documented.

Communication Center (Green Cross, Production Plan and Performance)

RSG Tip There are very good different efforts across the operation, however, and without any doubt the filter making cell together with the print sop cell central information board are the benchmarks for defining a standard to be used together with workers to latter be implemented in all working cells.

WO-6 Secondary Process

Filter Communication Center (Green Cross, Production Plan and Performance)

Work Place Order

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WO-6 Tobacco Processes

Tobacco Processes Communication Center (Performance, “Programa Minha Ideia�, Accidents)

WO-6 Print Shop

Print Shop Communication Center (Laser Perforation, Kaizen weeks improvements).

30

Work Place Order

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Achievements ISO 14001 and OHSAS 18001 certification; Warehouse Management System for Finished Goods; ‘SOL’ Revamp focusing employee behavior; Software upgrade to integrate EHS and QA management system (ISO System); Procedure development for internal communication: Business Units and equipments identification; Totem for central communication (Tobacco and Secondary Processes). WO participates each Kaizen week focusing safety and order.

Workplace Order 2010 Final GAP Assessment Sub System

GA 2009

GA 2010

2011 Target

W01

Organization of Working Area

1.50

2.50

3.00

W02

Visula Controls

1.00

1.50

2.00

W03

Defining Location System

1.50

2.50

3.00

W04

Presentation of Parts

2.00

2.50

3.00

W05

Factory Communication Center

1.50

2.50

3.00

W06

Central Cell Information Area

2.00

2.00

2.50

Average

1.58

2.25

2.75

Work Place Order

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Workplace Order Book Overall Assessment

An outstanding improvement in terms of cleanliness and visual controls across the plant was achieved during the last year. Even so, there are still some areas of opportunity. There is a revitalization of everything that has anything to do with workplace order. SOL system was reorganized and redesigned giving behavior a weight. This can catalyze for the concepts to be adopted by workers but it should not be considered when analyzing a abnormal condition cause. It is important to involve all the books with each other, in this case the feedback and integration of the Organizational Involvement book and more specifically the Communication chapter to define, standardize and deploy the messages that the organization needs to share with workers throughout the communication boards and communication centers. This book has reached a point in which integration with the rest of the books is key; sharing responsibility with them for becoming a visual media for aiding in the evolution of NWG and NSG roles, standardizing initiatives across the entire operation and supporting continuous improvement.

4.00 3.00 2.00 1.00 0.00 W01 2009 GA

32

W02

W03 2010GA

W04 Avg 2009

W05

W06

Avg 2010

Work Place Order

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Quality

33

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Quality Team Ledi

Danielle

Pillar Coordinator

Pillar Sub Coordinator

Deibert

Oleiro

Mauro

Patricia

Ana Paula

Anderson

Secondary Coordinator

Tobacco Processes Coordinator

Print Shop Coordinator

Support Team

Heck

Marcia

Correa

Luis

Pagel

Isabel

Machado

Patricia

Assman

Thesing

Csastro

Wienandts

Secondary Sub Coordinator

Tobacco Processes Sub Coordinator

Print Shop Sub Coordinator

Support Tea

Carina Kunkel

Support Team

Leadership in Quality Benchmarking Quality System Requirements (QSS) Supplier Quality Management Internal Audits Protecting the Customer Analysis of the Measuring System Process Capacity Process Control Error proof Continuous Improvement Process Detecting, Dealing with and Preventing Quality Issues Measuring and Feedback

34

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Q1- Leadership in Quality Score:

Criteria and Observables:

3.5

Shows the commitment and involvement of all staff to comply with and improve quality. Management and organization staff plan, control and improve the quality indicators established in order to meet product and process requirements. Quality is a priority for the administration. There are clear signs of a sustained improvement in quality indicators; line staff (NWGs and NSGs) are fully involved in their performance (discuss, measure, control and improve). There is evidence that quality is a priority for processes and products.

Improvements on Quality Results: VQI, CPQI and Consumer Complains Quality meeting with operational people including their leaderships and some support areas, in order to (Oct09): reinforce their knowledge in visual quality tools (SPC, VQA methodology and gauges) owner analysis visual results define the strategy to achieve the goals increase know how on non quality costs Definition of the action plan for negative results by the workgroup with support areas

RSG Tip Improvement in Quality KPIs are being achieved, in order to gain full sustainability and continuous improvement, it is required a greater involvement and ownership of this KPIs by workers, as well as a greater degree of empowerment in order to allow decision making targeting improvement.

Visual Quality Index 233

214 186

VQI Results Jan09-Mar10

Jan 2009

210

206 204

Feb 2009

225 218 217 223

207 178

Mar 2009

Apr 2009

May 2009

Jun 2009

Jul 2009

Aug 2009

Sep 2009

Oct 2009

Nov 2009

165

167

Dec 2009

2009

Jan 2010

152 158 159

Feb 2010

Mar 2010

2010

Cigarette Physical Quality Index

1, 08

1,11

1,04

1,04

1,05

1,06

1,09

1,05

1,02

1,05

1,01

1,00

1,05

1,02

1,07

124

131

124

124

130

128

129

122

116

117

115

115

116

114

119

0,47

0,55

0,55

0,55

0,63

0,58

0,54

0,59

0,42

0,39

0,42

0,45

0,39

0,39

Jan 2009

Feb 2009

Mar 2009

Apr 2009

May 2009

Jun 2009

Jul 2009

Aug 2009

Sep 2009

Oct 2009

Nov 2009

Dec 2009

0,36 Jan 2010

Feb 2010

Mar 2010

CPQI Results Jan09-Mar10

Quality

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Consumer Complains 178

97

82

98

84

83 65

41

75

82

85 51

62

73

78

Consumer Complains Results Jan09-Mar10

Quality Meeting

36

Quality

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Improvement Teams

Recognition Program - CPQI & VQI Best results

Quality

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Kaizen weeks

Q1- Leadership in Quality

38

Improvement Teams and Kaizen Weeks according to improvement needs and VSM Quality KPI’s are included in the Annual Reward Program (PNR), and the leadership and operational people were involved to define quality targets and strategies to follow Recognition program implementation in order to value the best results with Organization Involvement Methodology implementation of the work including: Understanding quality reports What methodology to use to improve the quality results Workgroup present their results with respective action plan, if necessary Maintain periodical meetings with cell leaders and mechanics at least once a month, and each three months with all workgroup and with the presence of the support areas. Dissemination of the new VQI methodology (Factor Weight) – Dec09

Quality

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Interdependence among OPEN Pillars

Quality Work Places Order

Material Movement

Manufacturing Flow

Operational Availability

Organizational Involvement Quality & Manufacturing Flow

VSM Analysis Strategy to reduce wastes Performance Indicators following Customer Satisfaction PDCA implementation

Quality

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Quality & Organizational Involvement

Recognizing Program to the Best Results in Quality Knowledge improvement in Quality for people Culture changing Support to My Idea Program Quality Refence People – Profile & Role Actions roll out & keep the results

Quality & Operational Availability

Process Control Process Capacity Planning Maintenance Self Control: technical improvement Actions roll out & keep the results

Quality & Material Movement

Storage, handling and material identification methodologies Supplier Quality Improvement Non- conformities material segregation KANBAN Actions roll out & keep the results

40

Quality

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Q2- Benchmarking Score:

Criteria and Observables:

3.5

A process has been established in order to carry out a benchmark with affiliates; an improvement in product quality has been observed through their CPQI, FVQI, MVQI (green) indicators, etc. There is evidence that operating performance indicators have improved in a sustained manner, as a result of lessons learned from other affiliates.

Action Plans for South Cluster VQI Results Monthly South Cluster Meetings – Tsunami projects Secondary Process Team (SPT) & Primary Process Team (PPT) PMI online contact by all affiliates Visits in affiliates to share the best practices (2 visits of Brazil to Argentina, 1 visit of Argentina to Brazil and 1 visit of Brazil to Uruguay) Workshop for LCC (Light Curing Coating) technology among suppliers and affiliates

Q3- Quality System Requirements Score:

Criteria and Observables:

4.0

The factory has implemented the quality system well and action has been taken to ensure that the system is established internally; ongoing changes and adjustments are being made to requirements. The factory has set up the quality system and the audits did not show any discrepancies that need to be dealt with immediately.

Compliance with the PMI methodology To keep the ISO 9001 & ISO 17025 Certification Review and standardize methodologies among the BUs to: Customer Satisfaction Survey, Corrective and Preventive action systems In 2010 there will be established a Supplier Self Assessment (Supplier QS Requeriments/Traceability/Product & Process) - Jul10

RSG Tip A score of 4 is not the end, systems speed is determined by the slowest pilar book. Do not forget, Quality is the leader of the entire process.

The affiliate covered every criteria stated from this element in the current gap assessment guide, and therefore becomes benchmark in the region

Quality

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Operations Quality System

Q4- Supplier Quality Management Score:

Criteria and Observables:

3.4

A supplier certification system has been set up in accordance with the QSS, together with an annual supply chain audit plan. There is evidence that suppliers included in the yearly program have been audited and reports may be found at the Central Team.

Yearly audits according QSS PMI and with leaders auditors support SQA (Supplier Quality Assessment) implementation - Aug09 SCP (Supplier Collaboration Portal) implementation Action Plan elaborated for Polo Films - Dec09 Workshop for the main suppliers (developing by QA, Process Control and Procurement)

42

RSG Tip This elemento toghether with the Material Movement pilar book are the pieces that may take the system outside the production plants boarders. The affiliate has an example of this with PoloFilms where the system could be shared.

Quality

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Q5- Internal Audits Score:

Criteria and Observables:

3.4

There is an ongoing and systematic process for carrying out internal audits in the organization, in order to ensure the quality system is implemented and meets SIMAC requirements; they are properly maintained and consistent, in order to maintain the organization’s ongoing improvement cycle. The audit program is complied with in due time and proper form; plans of action are created to close GAPs and there is no reoccurrence of discrepancies.

ISO 9001:2000 in Feb/10 we have been reached upgrade to ISO 9001-2008 ISO 9001:2008, 19 Internal auditors trained from several processes ISO 17025 Certification TASC (Sanitation Control Audit Team) PMI Quality System Audit

RSG Tip There are important results achieved in the affiliate in terms of internal auditing, however it is important not to let the guard down and maintain the level, and even perfect it.

Q6- Protecting the Customer Score:

Criteria and Observables:

3.5

Methods have been developed that ensure that preventive, corrective and improvement actions are properly checked and assessed; customer complaints are dealt with irreversibly; the VQI and CPQI numbers meet and, in some cases, exceed factory targets. There is a consistent trend in the improvement in VQI and CPQI; the number of claims made by adult consumers regarding discrepancies in quality is consistently decreasing and the number of calls per billion of cigarettes is within the permitted target.

Integration of call center representatives and Operations PMB Defined target to reduce the renitence of Consumer Complaints The VQI and CPQI present a positive trend Established Improvement Teams for Consumer Complaints Methodology implemented in Operations to monitoring and follow up actions for Consumer Complaints

Q7- Analysis of the Measuring System Score:

Criteria and Observables:

4.0

The measuring system is analyzed according to established procedures and requirements; there is a quality plan and methods established for handling samples, and the use, calibration and maintenance of inspection, measuring and test equipment. All measuring equipment of process and product parameters meet the minimum acceptable operating levels and there is evidence to this effect (crosscheck, inter-laboratories).

Validation/Qualification of new equipments, products and methods Inter-collaborative tests among affiliates and PMI – Physical/ Chemical/ Visual parameters Internal visual calibration among VQA & Process Control and Print Shop & MQA Established measuring system for products and equipments according to relevant methods

RSG Tip They should identify how this strength will be potentiated by supporting the rest of the books.

The affiliate covered every criteria stated from this element in the current gap assessment guide, and therefore becomes benchmark in the region

Quality

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Q8- Process Capacity Score:

Criteria and Observables:

2.0

Process capacity is analyzed every now and then, the results of which are not followed up; product specifications are established without taking capacity into account. Process capacity is known for some quality parameters, but is not taken into account for product design.

RSG Tip

Study among Quality & Operational Availabitity Pillars to establish process capacity for blend and technologies: MK9/MAX S – 8 machines (8 blends/8 brands) MK9/PA8 – 5 machines (4 blends/4 brands) 3 Mollins PM5

This element is critical to bring onboard people in charge of product design, and by doing so, being able to link both processes having a better understanding of what the processes capabilities are. For any new product, process capacities and capabilities should be taken into consideration instead of getting data from pilot runs.

Capability Study Peso total Calculado Specs Target

818

Tolerancia

30

Stdey

Aplicado 30

Freq Freq

8.47

811

818 Classes

824

831

4 2 805

811

Circunferéncia

818 Classes

(SUP)

3.54

(INF)

3.54

824

Specs 18 Tolerancia

Freq

Freq

16 Stdey 14 12 10 8 18 6 16 4 14 2 12 0 10 20.90 8 6 4 2 0 20.90

831

868 858 848 838 828 818 808 868 798 858 788 848 778 838 768 828 818 808 798 788 778 768

1.18

1.18

Control chart

Limites controle

Specs

Limites controle

Specs

Aplicado

20.95 Histograma

Processo

764.1

804.1

824.1

844.1

764.1

804.1

824.1

844.1

Capabilidades (CPK) 1 e CP 1) Em relação Spec

20.95

0.15

0.15

0.05 Histograma

20.93

20.95 Classes

20.98

21.01

20.93

20.95 Classes

20.98

21.01

21.20 0.10 21.15 0.033 21.10 21.05 21.00 20.95 20.90 21.20 20.85 21.15 20.80 21.10 20.75 21.05 20.70 21.00 20.95 20.90 20.85 20.80 20.75 20.70

CPQI 0.22

0.03

0.07

Z

.5 Stdev (CPQI)

Control chart

(SUP)

4.52

(INF)

4.52

CPK

CP

1.51

1.51

0.11

Control chart

Limites controle

Limites controle

44

CP

15

Calculado Target

CPK

Control chart

Histograma

805

10.00

Z

.5 Stdev (CPQI)

30

Histograma

10 8 6 14

CPQI

25.4 8.47

12

0

Capabilidades (CPK) 1 e CP 1) Em relação Spec

818.0

10.00

14

4 12 2 10 08 6

Processo

Specs

20.7

20.8

20.9

21

21.1

21.2

20.7

20.8

20.9

21

21.1

21.2

Specs

Quality

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Process Capacity Study RTD Calculado Specs 95.00

Tolerancia

10.80

Stdey

3.60

Freq

Freq

Target

Aplicado

Processo 7.48 2.49

15 3.15

5.00

Z

.5 Stdev (CPQI) (SUP)

5.10

(INF)

3.57

CPK

CP

1.19

1.44

7.5

Control chart 108.20 103.20

Histograma

89

91

94 Classes

Control chart

98.20

95

98

93.20 108.20 88.20 103.20 83.20 98.20 78.20 93.20 88.20

1

83.3

88.8

93.8

98.8

103.8

83.3

88.8

93.8

98.8

103.8

83.20 89

91

94 Classes

95

98

Limites controle

78.20

Specs Target

Processo

Limites controle

Specs

Em relação Spec

CPQI

Capabilidades (CPK) 1 e CP 1)

5.00

1.67 Histograma

30

31

32 Classes

33

34

30

31

32 Classes

33

34

Control chart

3.12

21.20 21.15 1.04 21.10 21.05 21.00 20.95 21.20 20.90 21.15 20.85 21.10 20.80 21.05 20.75 21.00 20.95 20.70 20.90 20.85 20.80 20.75 20.70

2.16

8.1 2.70

Z

.5 Stdev (CPQI)

31.19

Histograma 5.00

16 Stdey 14 12 10 18 8 16 6 14 4 12 2 10 0 8 6 4 2 0

Aplicado

30.00

Tolerancia 18

Specs

1

Calculado

Freq

CPQI

93.1 10.80

Histograma

18 16 14 12 10 18 8 16 6 14 4 12 2 100 8 6 4 2 0

Ventilação

Freq

Capabilidades (CPK) 1 e CP 1) Em relação Spec

(SUP)

3.01

(INF)

6.62

CPK

CP

1.00

1.60

4.05

Control chart

Limites controle

Specs

Limites controle

Specs

24.9

29.9

34.9

24.9

29.9

34.9

Q9- Process Control Score:

Criteria and Observables:

4.0

Self-control has been implemented for the process; line staff (NWGs) corrects process and product discrepancies; it is acquainted with basic QSS procedures. There are control graphics on the floor; action taken to correct process discrepancies are documented; NWGs are now taking some preventive action.

The process control tools: • PRIMAT (Primary Monitoring Tool) • SPC (Statistical Process Control) • Check lists • Traceability System Where: • The process is controlled by the operator • The correction of the deviation (process and product) is made by the Workgroup • The Workgroup has knowledge of the Quality System

RSG Tip Brazil’s SPC online and traceability system should be analyzed and adapted across the entire region

The affiliate covered every criteria stated from this element in the current gap assessment guide, and therefore becomes benchmark in the region

Quality

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PriMAT Avg. Total Processing Index Per Month - PriMAT BRAZIL

Mar 01

Feb 10

Jan 10

0

0.5

100

1.5

200

2.5

300

3.5

400

4.5

Definition and features The system was designed to follow the PMI methods Q0736 and Q0737: SPC rules according to the PMI concept Enable on-time visual inspection

Automatic data acquisition from standard equipment or QTM Control-charts self generation Bill-of-material and Check-list inspection Uptime and interruption monitoring

Process Control – CEP Online Main Projects QTM Module (Cigarette e Filters)

Quality Index (IQF - weight):

Definition and features Main Projects Packaging Module (Roll-out 2010) Main Goals: Support Quality and Uptime initiatives

46

Visual Inspection Tools and Reports New Logbook for events on Machine

Quality

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CEP Online – South Cluster e LA Region Cep Online in Numbers: 2009 - 500 direct users - 120 Machines (Fil/Cig/Pac) - 60 billions cigarrettes/year

Guatemala

Guatemala City Cep Online 2010

Guatemala

Guatemala City Cep Online

Costa Rica Heredia Cep Online

Ecuador Quito

Cep Online 2010

Brazil

Santa Cruz Cep Online

Uruguay

Argentina Goya Merio

Montevideo Cep Online

Cep Online

Quality

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Traceability System QAT –Local System erials Traceability e Barcode Label (CBL) L-Track -> iTrack3

Quality Assurance Traceability System ( QAT) Concept – (Q0847 and Q0777) Raw Material Identification Links among processes Bill of Materials (BOM) Key Points: What Where When Who On What

Scope Tobacco processes (Primary, DIET, Cast Leaf) Menthol on foil, Laser perforation Print Shop Secondary Process FG Labeling interfaced with L-track

48

Quality

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Q0777- PMI Standard

L300

TOP CASNG

TOP CASNG

CASNG

VIRGINIA - ORIENTAL L400

TOP CASNG CASNG

L200

L500

REMIX CUT FILLER

BURLEY - CAST LEAF L700 STEM

TRACEABILITY POINTS CONSUMED PRODUCED

L800

L600

RIPPER SHORTS

TOP FLAVOR

L1000

CASNG

CASNG

QAT - Primary Process – Overview

L900

SILO SILO

ESL

DIET

Quality

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Case Barcode Label FA Version (Variant)

Product Code

Short Description (PMI Standard) Destination (BR04= Brazil) Barcode (Standard 128) (01)= Identificator 07893789300040 = 0 + EAN 13 (20) = Identificador 00 = Variant (11) = Identificador 0702216 = Fab date (YYMMDD) (10) = Identificador 73 = Production Center 01 = Case Packer No. 151421 = Hour (HHMMSS)

Product Description

Shelf life (day month year) Weekly Lot ( Week number PMB) Cigarettes Quantity per box Product Date

Machine number (case Packer)

Product Time

EAN Code 13 of the box

Quality Assurance Traceability System ( QAT) Through the Internal Code Traceability (QAT Code), QAT System provides information about the raw materials used during the manufacturing steps and send in a label in the CBL standard.

50

Quality

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Identification Process & Boxes Traceability 1. Label emission - CBL:

CBL Labels are generated by QAT (Local System) that has interface with SAP.

2. Pallets & Boxes Identification:

The pallets can be assembled manually or by robot. In both cases, the boxes receive a number of pallet.

3. Transference from Factory to Warehouse: The barcode pallet is read in the QAT System. During this procedure, the invoice number for this transference is identified.

4. Transference from Warehouse to DC’s: Through the L-track System (regional), all boxes are scanned and their origin and destination are identified.

Q10- Error Proof Score:

Criteria and Observables:

3.0

Processes have error proof devices; they are not clearly identified and their operation is not checked systematically. There is an operating check program for some error proof devices, however, there are no records that show that they have been complied with.

Systematic plans will be reviewed in collaboration with Operational Availability Pillar based on the Poka Yoke existents

RSG Tip The goal is to create in workers an error proof culture, and most important, to transfer the Poka Yoke culture to the Safety element, this should become a way of life inside the operation. A error recurring should be consider anti esthetic, this creates a firm platform for continuous improvement.

Quality

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Q11- Continuous Improvement Process Score:

Criteria and Observables:

3.5

A process has been implemented to ensure that action is taken based on the planning, control and improvement of processes, products and systems; NWGs and NSGs are actively involved in prevention, correction and improvement tasks. There has been a sustained improvement in factory performance indicators (CPQI, FVQI, MVQI, etc.; there have not been repeated discrepancies; defective products manufactured during the process and customer complaints are decreasing.

Standardized and consolidated the PDCA methodology among BUs and Support areas – 16 Improvement Teams Kaizen Weeks - 07 Quality Newspaper Quality System Best Practices was standardized among BUs and Support areas Refresh Training about Visual Quality Concepts Elaboration of action plans for negative results by workgroups Work focused in the VSM (Value Stream Map) opportunities

RSG Tip This element is a strength for the Quality and the entire system, where the improvement team is really making a difference. The system should gain enough maturity to transfer knowledge and practices to anyone integrating into the teams, and to the rest of the books teams.

Q12- Detecting, Dealing with and Preventing Quality Issues Score:

Criteria and Observables:

3.5

A methodology has been established to identify, analyze and eliminate problems at their root cause (PDCA, 5 STEPS, AMEF, etc); all staff involved (NWGs and NSGs) are acquainted with and apply the methodology; there have been improvements in products and processes based on the results of the use of this tool. There is evidence that all quality problems are detected and dealt with using the methodology implemented and discrepancies do not reoccur; defective product indices and reprocesses are improving.

The PDCA has been implemented in Operations Elaboration/Presentation of Action Plans for negative results by workgroups Monthly meetings to monitoring CPQI, PRIMAT, CI Report and SPC (PD, QA and Primary & Secondary Process)

RSG Tip Meetings are being taken seriously and should be kept that way.

Q13- Measuring and Feedback Score:

Criteria and Observables:

3.5

There is a communication process that provides common understanding, so that decisions may be taken to ensure the continuous improvement of product and process quality. There is a consistent trend in the improvement of factory performance indicators and there is evidence that the internally learned lessons are shared with other affiliates.

Manager Report available for the workgroups analysis Financial Report available for the workgroups analysis Workgroups and Support groups are close to treat quality issues and other performance indicators Support Areas working close to Production Process (PD, QA, Maintenance, Planning and Process Control)

52

RSG Tip It is important to remark the availability of financial reports for workgroups, this gives a greater sense of business oriented initiatives. It is important that the affiliate has the opportunity to share with the rest of the region the lessons learned.

Quality

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Achievements Quality System standardization PDCA consolidation Kaizen weeks implementation Recognition Program Support Improvements on Quality Results: VQI, CPQI and Consumer Complains Workgroups involved in definition and treatment the Quality Indicators Benchmarking with affiliates Support/develop suppliers Team working focused in the VSM Quality newspaper

Interdependence among OPEN Pillars Sub System

GA 2009

GA 2010

2011 Target

Q1

Leadrship in Quality

3.00

3.50

4.00

Q2

Benchmarking

3.00

3.50

4.00

Q3

Quality System Requierements

3.00

4.00

4.00

Q4

Supplier Quality Management

3.00

3.40

4.00

Q5

Internal Audits

3.00

3.40

4.00

Q6

Protecting the Custumer

3.00

3.50

4.00

Q7

Analysis od the Measuring System

4.00

4.00

4.00

Q8

Process Capacity

2.00

2.00

2.50

Q9

Process Control

4.00

4.00

4.00

Q10

Error proof

3.00

3.00

3.50

Q11

Continious Improvement Process

2.50

3.50

4.00

Q12

Detecting, Dealing with and Preventing Quality Issues

3.00

3.50

4.00

Q13

Measuring and feedback

3.00

3.50

4.00

2.96

3.45

3.85

Average

Quality

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Quality Book Overall Assessment OPEN in Brazil is driven by Quality, with an amazing focus on results and at the same time achieving certifications. The role of the Quality team is remarkable, since they personify the advisor role quality should have to achieve workers growth in the use of problem solving tools, root cause analysis, as well as involvement in the entire continuous improvement system. This books has produced some benchmarks for the region, like the traceability system. Understanding of the system at a strategically level is noticeable, as well as the potential support that the quality team can bring to the rest of the pillar books. The SPC online system has been incorporated in other affiliates. The local PDCA cycle (developed in quality) has been deployed in all operations in a systematic manner. It is obvious that quality understand how it impacts in the rest of the pillar books, and given its strength it should provide efficient support to all of them.

Quality Book 2009 - 2010 Progress 4.00

3.00

2.00

1.00

0.00 Q1

Q2

Q3

2009 GA

54

Q4

Q5

Q6

2010 GA

Q7

Q8

Q9

AVG 2009

Q10

Q11

Q12

Q13

AVG 2010

Quality

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Operational Availability

55

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Victor H.P. Oliveira

Coordinator

Leandro Schimitt

Ezequiel

Fabiano

Secondary Coordinator

Leandro

Fardin

Vettorazzi

Support Team

Primary Coodinator

Marcelino

Marcelo

Ricardo

Fernanda

Support Team

Primary Sub Coordinator

Secondary Sub Coordinator

Print Shop Sub Coordinator

Facci

Ferreira

Ribeiro

Print Shop Coordinator

Castro

Teloeken

Fernando Sampaio

Support Team

Understanding and Continuous Improvement Reporting Production Quick-Response System Owner Operator Planned Maintenance System Spare Parts Quick Set-Up Design for Manufacturability Equipment/Process Validation Documenting Specifications Prevention of Potential Failures Reliability and Durability 56

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OA1- Understanding and Continuous improvement Score:

Criteria and Observables:

3.0

Understanding of the concepts of operational availability has been spread throughout the entire organization. NWGs develop plans to decrease downtime. NWGs and NSGs show evidence of the work carried out to improve this indicator through concentrated improvement plans.

In the Secondary, Primary Processes and Print Shop monthly are performed meetings for sharing results of the work cells and discussed with Operators, Technicians, Supervisors and Manager. NWGs of the Secondary Process are in charged of sharing the production performance that were reached. They are also in charged of opening of the action plans for PI’s or KPI’s that were not reached the goals. The next slides shows examples of down time performances in Secondary Process and Print Shop process that are used by each one to manage there Processes.

RSG Tip Even when there is a pretty good level of understanding of the terminal perfomance indicatores (uptime & downtime), other WCM KPIs should start being incorporated.

Print Shop Production Performance

Operational Availability

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Secondary Up Time and Down Time

Secondary Electronics Down Time Dow time Elétrico

ge ra

o

Av e

br

o

ze m

br De

ve m

No

tu

br

o

o Ou

te

m

br

st o Se

Ag o

o lh

o

Elétrica (%)

58

Ju

nh Ju

o ai

M

ril Ab

ço ar

M

iro re

ve

iro

Fe

ne

9

Ja

20 0

D YT

YT

D

20

08

2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.20

Objetivo Elet

Operational Availability

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Downtime %

8

10

11

12

15

16

17

18

0.0%

14

0.01%

13

0.01%

0.03%

0.04%

0.04%

0.05% 9

0.02%

7

0.02%

6

0.03%

5

0.05%

0.07%

4

0.07%

3

0.03%

2

0.07%

1

0.08%

0.10%

0.14%

0.18 %

0.20 %

Spread

19

20

21 22 23

Total

Maquina

23P1

14P1

51P1

24P1

12P1

38P1

45P1

Grand Total

% Downtime

0.20^

0.18% 0.14%

0.10%

0.08% 0.07% 0.07% 0.07% 0.05% 0.05% 0.04% 0.04% 0.03% 0.03% 0.03% 0.02% 0.02% 0.01% 0.01%

0.00%

1.24%

15P1

22P1

12P1

21P1

35P1

36P1

11P1

37P1

52P1

44P1

25P1

32P1

31P1

OA2- Reporting Production Score:

Criteria and Observables:

3.50

Reports are visible, updated and are kept by the administrative area, by employees and/or by NWGs. The table-reports that show production status are installed and are used as a toll for actual administration and for communication. They are maintained and followed through by NWGs.

PMB has implementing PNR program with the purpose of awarded the employs as a recognition of achieve of the results. This is another way because the production performance indicators are shared and always action plans are demand when the goals aren’t reached. In this Program the NWGs have active participation in the targets definitions for the production.

RSG Tip In order to achieve the next step, multiskills training for operators should be deployed, in order to allow them to generate their own reports, and manage their micro operation to achieve the goals previously set.

Operational Availability

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PNR Mes Target OB Actual Target PNR’ Actual

Jan

Feb 63.2% 62.2% 63.7% 62.7%

Mar 63.1% 64.1% 63.7% 65.0%

64.1% 62.2% 64.8% 64.4%

PNR’10

OB’10 65.5%

65.5%

65.0%

65.0% 64.1%

64.5% 64.0% 63.5%

63.2%

63.7%

63.7%

62.7%

65.0%

64.4%

Jan

Feb

Mar

63.5%

63.0%

63.0%

62.5%

62.5%

62.0%

62.0%

61.5% 61.0%

64.5% 64.0%

63.1%

64.8%

62.2%

64.1 %

62.2%

61.5% 61.0%

60.5% Jan

Feb Actual

Mar Target

Actual

Target

As we can see the proposed target in the PNR is upper than the OB. This results gives to the Operation the guaranteed for the program self payment.

Secondary Table Report

In this picture we can see the table-reports that show production status installed at the Secondary Process.

60

Operational Availability

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In this picture we can see the table-reports that show production status installed at the Tobacco Process.

OA3- Quick Response System Score:

Criteria and Observables:

2.0

A quick-response system is operating in half of the factory’s production areas. The people in charge of lines are nearby. The ANDON is in operation. Response time is not traced. Members of NWGs and NSGs may explain how the system works and what their responsibilities are.

In the Tobacco Processes and Print Shop Process the communication among the production personnel are made by using hand talks devices. These audio devices are distributed to all area involved on these processes. I Today we can find the people around the process and realize with more efficiency, for example maintenance activities, setup activities, etc... I For instance we can not control the times of short machine stops in the process. I In the Secondary Process the proper machine signal are used to indicate the machine stopped.

RSG Tip The radio system works well for a inside person, however, the goal is to have a visual factory, in which any person may know the status of the operation by the visual aids presented to him, so it is convenient to have an ANDON system in all business units and keep the visual approach of the tool.

Hand talk communication devices

In the Tobacco Processes and Print Shop Process the communication among the production personnel are made by using hand talks devices. These audio devices are distributed to all area involved on these processes.

Operational Availability

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Secondary machine signal

In the Secondary Process the proper machine signal are used to indicate the machine stopped.

OA4- Owner Operator Score:

Criteria and Observables:

1.50

A pilot scheme has been set up for the owner-operator concept. The owner-operator certification process is at the planning stage. At least in one area, operators are beginning to monitor machinery to identify problems and to carry out basic cleaninginspection-lubricating processes for the equipment. (steps 1 to 3). Operators have begun to advise their maintenance needs through visual aids. A basic inspection list has been drawn up. An implementation plan has been developed.

The Print Shop Process are developing the orientation for the Operators to clean the equipments as Autonomous Maintenance action.

The operational instructions were performed together with the Pillar of Work Area Organization and are recorded in the common file.

RSG Tip Without any doubt, the organizational evolution and of workers roles is a mid and long term strategy, it is impotant to have an excercise for visualizing how this subject will be confronted, since the steps need to be gradually taked and with consensus from all involed parts (specially the union). A plan should be developed, making a reflexion excercise on the whens, hows,& whos.

OA5- Planned Maintenance System Score:

Criteria and Observables:

3.50

The planned maintenance system has been completely implemented. NWGs and NSGs are actively involved in reviewing and improving the plan. Maintenance routines are checked every now and then and are improved by NWGs. At least 70% of activities are proactive. Maintenance cost factors are controlled.

The concepts and system of preventive maintenance are implemented at all BUs. The maintenance actions are manage by the controls did by the SAP. As we can see in the followed slides, the proactive maintenance are in course. In the Secondary Process the proactive maintenance orders are around 70%. In the Tobacco Processes the proactive maintenance orders are more than 80%. In the Print Shop the proactive maintenance orders are more than 90%.

62

RSG Tip A greater involvement from natural working groups should be achieved, in order to gradually eliminate the boundaries between operators and support teams. Also, the amount of proactive activities should be increase, this can only be achieved with full communication between support teams and operators.

Operational Availability

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Secondary Maintenance Orders PM01 - Ordens Nãão Planejadas - R$

PM02 - Ordens Planejadas - R$

80.000

80.000

60.000

Jan Fev

40.000

Mar

20.000 0

60.000

Jan Fev

40.000

Mar

20.000 1501

1502

1701

0

Total

1501

1701

Total

PM03 - Ordens Preventivas - R$

PM04 - Peças - R$ 50.000

60.000

40.000

50.000

30.000

Jan

20.000

40.000

Jan

Fev

30.000

Fev

Mar

20.000

Mar

10.000 0

1502

10.000 1501

1502

1701

0

Total

1501

1502

1701

Total

In the Secondary Process the proactive maintenance orders are around 70%.

Tobacco Processes Maintenance Orders Primary

Cast Leaff

90% 90% 70% 60% 50% 40% 30% 20%

60% 50% 40% 2009 2010

2009 2010

30% 20% 10%

10% 0%

0% PM01

PM02

PM01

PM03

PM02

PM03

DIET 70% 60% 50% 40%

2009 2010

30% 20% 10% 0% PM01

PM02

PM03

In the Tobacco Processes the proactive maintenance orders are more than 80%.

Operational Availability

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Print Shop Maintenance Orders 100.00% 90.00% 80.00% 70.00% 60.00% 2009 2010

50.00% 40.00% 30.00% 20.00% 10.00% 0.00% PM01

PM03

PM02

OA6- Spare Parts Score:

Criteria and Observables:

3.50

A spare part system has been set up that effectively supports operational availability. Location and storage of parts is controlled. Warehouse service level is not less than 97%. Turnover of inventory has improved. Obsolete and slow-moving material has been reduced. Frequently used spare parts are close to the areas that use them.

In the followed slides we are showing the spare part management performance.

RSG Tip The spare parts management system is delivering interesting benefits for the business. Integrating this element with the Reliability and Durability Element could give the impulse to reach the next level.

Spare Parts Inventory evolution 19.09 17.29 14.38

13.30

12.16

12.31

12.40

In this chart we can see the spare parts inventory evolution at PMB.

64

Operational Availability

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My Idea Program Statement Popularidade

Criticidade

Adquisição

Económico

F01

Este materiais deverao ser repostos através de compras automáticas

F02

As quantidades reservadas devem ser solicitadas de acordo com a programação

F03

Estes materiais deverão ser mantidos com alto nivel de serviço, ou seja 100%

F04

Estes materiais deverão ser mantidos com alto nivel de serviço, ou seja 97%

F05

Estes materiais deverão ser mantidos com alto nivel de serviço, ou seja 94%

F06

Periodicamente repor os estoques até o ponto máximo

F07

Ponto de reposição com saldo minimo

F08

Comprar somente sab reservas

F09

Peçãs Estratégicas

Z P

1 X, Y

C 2,3

B A

Z Q

1 X, Y 2,3

Planeador MRP

B,C A

Z B,C

R X, Y

1

2,3

A

Z Inativo X, Y

Here is the relevance classification algorithmic for the spare parts recorded for PMB. In accordance with the classification we define a MRP Planner and managing the spare parts.

Operational Availability

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Some topics F02 – Programmed delivery Items (171 items) The increased in an amount of items with programmed deliveries gives to the spare parts analyses more fast responses. F08 – Planned items (1905 items) Actually the amount of spare parts planned representing more than R$2.600.000,00. This meaning in an around of 20% out of inventoried value, compared with R$12.300.000,00 the total inventory stocked. Descriptive pattern of Materials

Improvement in the consultations to the system, larger agility in purchases, reduction of redundant items, standardization of the register; Evaluation of Inactive / Overstock 2010 (R$ 572.856,90–2499 items) Evaluation of the inactive and overstock items; Revaluation of Strategic Items Revaluation of the items classified as strategic in agreement with the politics of the company. Constant revision of the Register of Materials The planners’ of MRP revision, types and control points, etc.

Service level Attendance 2009

2010

Avaliação do Nível de Serviço (%) 100

Objetivo 97.7

96.5

97.0

97.4

98 97

96

96

95

95

End 08 jan/09 fev/09 mar/09 abr/09 mai/09 jun/09

End 08 jan/10 fev/10 mar/10

BR40

BR20

BR40

BR40 BR20

BR20

BR40

BR40 BR20

BR20

BR40

BR40 BR20

BR20

BR40

BR40 BR20

BR40 BR20

BR40 BR20

BR40 BR20

BR40 BR20

BR40 BR20

BR40 BR20

BR40 BR20

BR40 BR20

BR20

BR40

BR40 BR20

94 BR20

94

97.8

98.1 98.2

99

YTD09

jul/09 ago/09 set/09 out/09 nov/09 dez/09 YTD09

BR20 = Secondary Process BR40 = Tobacco Processes and Print Shop

Spare Parts Turnover

66

Operational Availability

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Setup Total Gráfica (Horas) Setup Total Gráfica (Horas) 3.19 3.17

19.4 2008

19.4 2008

13.0

2.80

Setup Total Gráfica (Horas) 3.19

3.17

2.08

2.08

13.0

2.80

16.9 2009 16.9 2009

12.6

13.7 Jan

Fev

Mar

Fev

Abr Gráfica

12.6

13.7 Jan

12.5

Mar

Abr Gráfica

Mai

Jun

Objetivo OB’10 Mai

Jun

Objetivo OB’10

Jul

Ago

Set

Out

Nov

Dez

YTD’10

Objetivo LE’10 Jul

Ago

12.5 Set

Out

Nov

Dez

YTD’10

Objetivo LE’10

This chart is showing the average set up among the print machines.

Causas de Setup (Horas) Jan a Dez/10

Causas de Setup (Horas) Jan a Dez/10

Causas de Setup (Horas) Jan a Dez/10 84.9% 74.6% 64.3%

No CausasNo Causas

500

43.2%

500

21.6% 0

0

111 21.6%

64.3% 43.2% 111

108

Troca do Conunto Acerto de cor Acerto diverso de de impressão máquina 111 (Roto) 111 108 (esp)

74.6% 53

84.9% 53

90.2%

92.5%

87.9%

90.2%

92.5%

60 100%% 40 % 80

16

12

12

20 60 %

87.9%

100 % 80 %

040%% Acerto de 53 registro

Troca do Conunto Acerto de cor Acerto diverso de Acerto de In this chart is showed the mainly máquina down times set ups. de impressão (Roto) (esp)during the registro

Limpeza de 53 máquina para troca de procuto

Trocade faca (Rama) 16

Acerto de relevo 12

Reirada, lavagem e desmontagem 12 cilindros

Limpeza de máquina para troca de procuto

Trocade faca (Rama)

Acerto de relevo

Reirada, lavagem e desmontagem cilindros

20 % 0%

Operational Availability

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OA7- Quick Set-Up Score:

Criteria and Observables:

2.50

A quick set-up/changeover process has been established for critical and highly-use equipment. Procedures have been established and are followed. Equipment that may be liable to quick set-up has been identified. There are clearly identified targets. Each working method and improved utensils have been documented. RSG Tip

In the Print Shop some actions are developed to increase the machine set up. The Set up is one of KPIs used to manage the process. As we can see in the followed slides these results are monitored and managed.

Some initiatives have been deployed in the print shop, and it is important to bring this knowledge to the rest of the bunsiess units, and develop sub assemblies for quick changes, cleaning and equipment maintenance.

Set up total This chart is showing the average set up among the print machines. In this chart is showed the mainly down times during the set ups.

Set up by machine

Setup lemanic (Horas)

ge ra

Av e

br o m

ze

br o De

No

ve m

tu br

o

o Ou

br

to

te m

os

Se

Ag

ho

Ju l

nh o

o

Ju

ai

M

M

Ab ril

รงo

4.3

ar

ro ei

Fe v

Ja ne

7.0

er

20 0

D YT

3.5

iro

3.9

9

3.4

YT D

4.0

4.0

20 08

4.0

This chart is referred to the Lemanic set up.

68

Operational Availability

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Set up by machine Setup Uteco (Hotras)

3.1 2.8

3.1

3.5

3.9

3.4

3.5

3.5

4.3

2008 2009 Jan Fev Mar

Abr Mai

Jun Jul Ago Set Out Nov Dez TD 09

This chart is referred to the Uteco set up.

Set up by machine Setup Roto 04 (Horas)

1.5

09

o YD T

br

o

ze m De

m

br

ro No

ve

ub

o

Ou t

br

to

te m

os

Se

Ag

o lh

o

Ju

Ju

nh

o ai

M

ril

2.0

Ab

ar

รงo

1.8

M

iro re

ve

ne

1.6

Fe

20

20

08

iro

3.4

Ja

3.5

3.4

09

1.7

This chart is referred to the Roto 4 set up.

Operational Availability

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OA8- Design for Manufacturability Score:

Criteria and Observables:

2.50

The DFM concept has been made known and is beginning to be used. Some improvement designs have been completed for utensils and tools. Changes have been assessed.

The DFM software aren’t used in the PMB, but some action for develop the manufacturability are been done. As example we can mentioned the development and implementation of the GD’s control changed from electronic cards to PLCs control.

RSG Tip The spirit of this element applied to the tobacco industry is to continue updating old machinery based on the technology of new equipments either from on site or from other affiliates. Benchmarking with other plants is key to get information on improvements developed in equipments from other locations, as well as on new technologies available.

GD X1 old electronic cards panel

The above photos are showing the GD X1 old electronic cards panel.

70

Operational Availability

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GDs main panel and interface

The photos above showing the new GD X1 panel and interface for machine operation.

OA9- Equipment / Process Validation Score:

Criteria and Observables:

2.50

Equipment is delivered to users after each alteration, repair, or when newly bought, but there is no validation protocol or a validation protocol is being developed. There is no standard protocol validating the performance (Safety, Availability and Quality) after any maintenance, alteration or purchase of equipment.

Some incipient actions are in course for the Equipments and Process Validation like machine capability and quality validation. • Quality validation • Process card • Machine capability

RSG Tip A greatter involvement from Natural Working Groups / Operators when receptioning new equipments, or when maintenance routines are over is needed. A service agreement betwen producion and support areas, as well as documented procedures are key.

Operational Availability

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Quality Validation PHILIP MORRIS BRASIL Ind. & Com. LTDA. PRODUCT & PROCESS QUALITY - PPQ

PHILIP MORRIS BRASIL Ind. & Com. LTDA. PRODUCT & PROCESS QUALITY - PPQ

PHILIP MORRIS BRASIL Ind. & Com. LTDA. PRODUCT & PROCESS QUALITY - PPQ

PHILIP MORRIS BRASIL Ind. & Com. LTDA. PRODUCT & PROCESS QUALITY - PPQ

COMMENTS:

3. SENSORIAL EVALUATION

2. VISUAL QUALITY AUDIT

VALIDATION REPORT

CK: SWEET AFTERTASTE, WELL BALANCE, GOOD AMOUNT OF KRETEK. GM: GOOD BALANCED, SOFT, GENTLE PRODUCT. PROPER KRETEK CONTENT. SWEET AFTERTASTE (TIPPING), PLEASANT. MS: ROD AROMA: SWEET CLOVE SMELL. NICE BALANCE TOBACCO VS CLOVE TASTE, ROUNDED, SMOOTH. NICE CLEAN AND SWEET AFTERTASTE, BALANCED CLOVE VS TOBACCO.

Were inspected 8 samples with 5 packs, and the results of the Visual Quality were:

(RVL 074/09) – November 04th, 2009 ! Cigarettes (maximum accepted: 93 points):.............. 107 points ! Final Product (maximum accepted: 170 points): ...... 247 points Brand: ........................L&M KRETEK KS RSP 20

4. CIGARETTE INFORMATION REPORT Product type: .............King Size SMOKE: Butt Length (mm): ............................................................................................................................... 35,0

TAR/NIC: ..................7 / 0,6 mg/cigt.

TAR (mg/cigt):..................................................................................................................................... 8,1 TPM (mg/cigt): .................................................................................................................................... 9,1

Market: ......................Domestic

NICOTINE (mg/cigt):.......................................................................................................................... 0,55 Water (mg/cigt):................................................................................................................................... 0,5

Price Segment: ...........Medium

Puffs (n/cigt): ....................................................................................................................................... 7,7 CO (mg/cigt): ....................................................................................................................................... 7,9

Production month: .....October’09

Tar/Nicotine: ........................................................................................................................................ 14,6 Nicotine/Puff (mg):.............................................................................................................................. 0,07

Launching volume: .... 200 Th

Tar/Puff (mg): ...................................................................................................................................... 1,05

Technology: ...............Maker: MK9-5

CIGARETTE: Total RTD (mm HOH): ....................................................................................................................... 108

Packer: HLP-2

Total Length (mm):.............................................................................................................................. 82,9 Circumference (mm):........................................................................................................................... 24,26

1. QUALITY ON FLOOR – SPC

Firmness (as is basis) (mm): ............................................................................................................... 2,60 Loose Ends (mg/open end): ................................................................................................................. 5,10 NTM Weight (mg): .............................................................................................................................. 254 Total Weight (mg): .............................................................................................................................. 926

During the validation production, the results were: MAKER: 51M1

SPECIFICATION

PAPER: Paper Permeability (Coresta): .............................................................................................................. 71

PERIOD RESULTS

PARAMETERS

LL

TARGET

UL

WEIGHT

890,0

920,0

950,0

CIRCUNFERENCE

24,1

24,25

24,4

RTD

100,0

118,0

136,0

n

Avg

Amplitude

921,0

08,0

24,21

11,0

110,0

11,0

FILTER: Type: .................................................................................................................................................... SF

Legend: 9

RTD (mmHOH):.................................................................................................................................. 96 Length (mm): ....................................................................................................................................... 24,7

Avg VQI " 170 - APPROVED

Tipping Paper Color:............................................................................................................................ WHI Tipping Paper Length (mm): ............................................................................................................... 32

170 " Avg VQI " 178,5 - APPROVED VENTILATION

32,6

41,0

49,4

41,1

4,0

178,5 " Avg VQI " 204 – Evaluated by Quality Area

All the parameters results are according with the specification.

RVL Nº : 034/09

Ventilation (%): ................................................................................................................................... 42 Tipping Perforation Type:.................................................................................................................... MICS

Avg VQI # 204 – REJECTED – Evaluated by Quality Management and Operations Director

Paper Ventilation System:.................................................................................................................... LZ

Page 1 of 6

RVL Nº : 034/09

Page 2 of 6

RVL Nº : 034/09

Page 3 of 6

RVL Nº : 034/09

Page 4 of 6

Process Card TECNOLOGIA: MOLINS Passim

TAG: H1-041 / H8-111

FICHA REVISADA EM:

FABRICAÇÃO DE CIGARROS

MÁQUINA

ISS / MARCA / BLEND

REVISÃO

12M1

MLB68 / MARLBORO KS FTB / A0A0U

00

1.00) ELABORADORA DE CIGARROS - Alimentador de Tabaco ITEM

DESCRIÇÃO

PARÂMETRO

REVISADO

LACRADO

1.01)

Velocidade de abastecimento do cut-filler

22 a 30 metros / segundo

Não

Sim

1.02)

Distância dos pinos do rolo traçador às cardas

0,25 a 0,35 mm

Não

Não

1.03)

Pentes em relação ao tambor de cardas maior

Tensionamento de 80 mm e sem desgastes

Não

Não

1.04)

Abertura entre os tambores de cardas maior e menor

0,8 a 2,0 mm

Não

Sim

1.05)

Giro do rolo coletor de pó

Girando livremente

Não

Não

1.06)

Velocidade do rolo alimentador de tabaco

90 RPM

Não

Não

1.07)

Retorno de tabaco

35% +/- 5 %

Não

Não

1.08)

Extração de talos

0,8% +/- 0,2%

Não

Não

2.00) ELABORADORA DE CIGARROS - Câmara de Sucção DESCRIÇÃO

ITEM

Machine capability

PARÂMETRO

REVISADO

LACRADO

2.01)

Feltro de vedação entre a chaminé e guias de bronze

Sem desgaste excessivo

Não

Não

2.02)

Aberturas das guias de bronze da Câmara de Sucção

5,5 / 5,7 / 6,9 / 7,1 / 7,4 / 7,6 mm

Não

Não

2.03)

Ecreteur em relação às guias da Câmara

Bolsas centralizadas com o canal das guias

Não

Não

2.04)

Folga entre a sapata e a fita de sucção

0,1 mm

Não

Não

2.05)

Altura da Câmara

7,1 mm

Não

Não

2.06)

Folga entre as guias laterais e polia motriz

0,1 a 0,3 mm

Não

Não

2.07)

Folga entre os discos ecretores

Máximo de 2,0 mm

Não

Não

2.08)

Sistema de adensamento / bolsas discos ecretores

Single Denser / 63 a 64 mm

Não

Não

2.09)

Polia de tração em relação a Garniture

Alinhada e sem oscilações

Não

Não

2.10)

Vácuo do ventilador maior do lado esquerdo

34 pol / H O

Não

Não

2.11)

Vácuo do ventilador maior do lado direito

40 pol / H O

Não

Não

2.12)

Pressão fita de sucção

4 BAR

Não

Não

2.13)

Calibração (eletrônica) do peso

Conforme manual da máquina

Não

Não

REVISADO

LACRADO

3.00) ELABORADORA DE CIGARROS - Câmara de Formação DESCRIÇÃO

ITEM

PARÂMETRO

3.01)

Garniture utilizada na máquina

Para circunferência de 24,50 mm

Não

Não

3.02)

Dobrador menor utilizado / condição

Para circunferência de 24,50 mm

Não

Não

3.03)

Lingüeta (dedo) utilizada / condição

Para circunferência de 24,50 mm

Não

Não

3.04)

Altura do dedo (lingüeta)

Entrada: 9,0 mm (+- 0,8) / Saída: 6,25 mm (+- 0,8)

Não

Não

3.05)

Sistema de aspiração de partículas de tabaco

Operante

Não

Não

3.06)

Relação de velocidades da fita da Garniture e sucção

Fita de sucção 0,5 a 1,5% > fita da Garniture

Não

Não

3.07)

Distribuição de tabaco adensado - PROSCAN

Uniforme para cigarros de dentro e fora

Não

Não

3.08)

Temperatura do aquecedor da tripa (baixa)

300 ºC

Não

Não

3.09)

Temperatura do aquecedor da tipa (alta)

300 ºC

Não

Não

3.10)

Pressão fita de algodão

4 BAR

Não

Não

3.11)

Diâmetro para troca da bobina de papel coluna

124 mm

Não

Não

REVISADO

LACRADO Não

4.00) ACOPLADORA DE FILTROS - Máquina Geral DESCRIÇÃO

ITEM

PARÂMETRO

4.01)

Bolsas do rolo skip do subconjunto Gomeira

Desgaste mínimo de 0,033 e máximo de 0,027

Não

4.02)

Paralelismo dos rolos de gomeira

Pressão uniforme na superfície de contato dos rolos

Não

4.03)

Pressão correta entre rolos de gomeira

Impressão uniforme (visual) no papel ponteira

Não

Sim

4.04)

Abertura entre linhas de perfuração da ponteira

24 mm

Não

Não

4.05)

Furos por polegadas / nº de linhas / RTD da ponteira

35 furos por polegada / 2 linhas / RTD 4.0

Não

Não

4.06)

Linha seca na ponteira dos cigarros

Distribuída uniformemente em ambos os lados

Não

Não

4.07)

Skip na ponteira dos cigarros

Aplicação uniforme de adesivo na 1ª e 2ª colagem

Não

Não

4.08)

Suportes das bobinas de ponteira e guias

Sem desgastes e devidamente centralizados

Não

Não

4.09)

Compressão da placa enroladora de cigarros

7,2 mm

Não

Não

4.10)

Temperatura da placa enroladora

260 ºC

Não

Não

4.11)

Temperatura do pré-aquecedor

80 ºC

Não

Não

4.12)

Temperatura do pós-aquecedor

80 ºC

Não

Não

4.13)

Temperatura do tambor da cortiça (ponteira)

140 ºC

Não

Não

4.14)

Diâmetro troca de bobina cortiça (ponteira)

48 mm

Não

Não

4.15)

Calibração de ponta vazia

Conforme manual da máquina

Não

Não

4.16)

Limite da baixa diluição

80

Não

Não

4.17)

Limite da alta diluição

5

Não

Não

4.18)

Teste de iodo em um pedaço de ponteira

Zona limpa sem resíduos de adesivo

Não

Não

Sim

INFORMAÇÕES IMPORTANTES SOBRE A REVISÃO REALIZADA

72

Operational Availability

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OA10- Documenting Specifications Score:

Criteria and Observables:

2.00

The need for documenting equipment specifications is understood fully. There are equipment manuals; there are equipment specifications, including the right performance standards.

The equipments specification is fully understood by the personnel. These are mainly used by the product development personnel in order to establish the standards to produce the same product in the regular process. The production management plan are performed using these parameters. Even for determinate the up time we need have the performance standards.

RSG Tip Capacity analysis based on the OMT specs, as well as perfomance records should be developed, specially now that an increased number of SKUs is demanded, this to assure the equipment is in conditions of producing reaching the particular specifications of a given product.

OA11- Prevention of Potential Failures Score:

Criteria and Observables:

2.00

Critical processes or equipment susceptible to the use of preventive tools (AMEF and RCM) have been identified. Analysis tools are now being used. There is a critical matrix. There are some incomplete AMEF or RCM analyses that are not updated.

As an evidence of the score on the OA11 item, last year we done 12 failure cause analysis on secondary packing equipments. The technicians are making some meeting using they experience to find the root cause of the failures and propose improvements on the equipments to prevent further reoccurrences on the failure analyzed. In the Tobacco Processes there are monthly meetings to analyzing the potential failure and action plans are performed to correct that.

RSG Tip Taking advantage of the PDCA tool as support for this element is recommended.

OA12- Reliability and Durability Score:

Criteria and Observables:

1.50

The concepts of reliability or durability are being made known. These indicators are now being calculated and made known, but there is still no objective. NSGs are aware of reliability and durability concepts. Calculations of indicators (MTTR, MTBF).

The concepts are understood by the Engineers and Maintenance Supervisors. The developments for calculation and goals definitions are in study but it wasn’t indicated as a priority in the VSM analyzes.

RSG Tip The engineering area should gain understanding and apply the operational availability calculations. The MTBF (Middle Time Between Failures) & MTTR (Middle Time To Repair) calculations can provide information that should reflect in improved service levels. Experience from other affiliates should be taken advantage of.

Operational Availability

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Achievements

Main achievements from the OA Book Planned Maintenance System The maintenance are managed using the implemented SAP controls. The preventive maintenances are analyzed and if necessary adjusts are made. Spare Parts The inventory value continues decreasing and the service level performance are almost flat around 98%. MRP planning are given good financial results (Planned spare parts out off stock is about R$2.600.000,00) Quick Set-Up The performance indicator for it are used as KPI in the Print Shop. Prevention of Potential Failures Technical meetings are performed to analyze the potential failure in equipments at the Secondary Process and Tobacco Processes.

Operational Availability 2010 Final GAP Assessment Sub System OA1

Understanding and ongoing improvement

1.50

3.00

3.50

OA2

Reporting Production

2.00

3.50

4.00

OA3

Quick-Response System

1.00

2.00

2.50

OA4

Operator Owner / Autonomous Maintenace

1.00

1.50

2.50

OA5

Planned Maintenance System

3.50

3.50

4.00

OA6

Spare Parts

3.00

3.50

4.00

OA7

Quick Set-Up

2.50

2.50

3.00

OA8

Design for Manufacturability

2.00

2.50

3.00

OA9

Equipment /Process Validation

1.00

2.00

2.50

OA10

Documenting Specifications

2.00

2.00

2.50

OA11

Prevention of Potential Failures

1.50

2.00

2.50

OA12

Reliability and Durability

1.50

1.50

2.50

1.88

2.46

3.04

Average

74

GA GA 2011 2009 2010 Target

Operational Availability

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Operational Availability Book Overall Assessment As in the rest of the books there is a great improvement achieved during the last year. In the case of the operational availability book, it can be clearly identified a focus towards a technical approach and in some cases they have excelled in doing so. However, they have reached a point in which the focus should be towards the people. For this book to continue progressing it is essential to enrich operators roles, defining a clear strategy on how they are going to do this, supported by the Organizational involvement book. The affiliate has one of the most solid and robust engineering areas, nevertheless, the operator is not still at the center. The book team has in its hands the needed impulse to put the operator at the center of the system: The Owner operator definitions are key. The spare parts management system has given some interesting results for the business, and it should be further analyzed by the rest of the affiliates in order to take advantage of the experience of the affiliate.

OA Book 2009 - 2010 Progress 4.00

3.00

2.00

1.00

0.00 Q1

Q2

Q3 2009 GA

Q4

Q5

Q6 2010 GA

Q7

Q8

Q9

AVG 2009

Q10

Q11

Q12

Q13

AVG 2010

Operational Availability

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Material Movement

76

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Material Movement Chapters Alexandre Luz

Pillar Coordinator

Fรกbio

Jeferson

Gerson

Luciano Olivera

Freitas

Secondary Coordinator

Primary Coordinator

Print Shop Coordinator

Support Team

Vitor

Marcia

Robson

Ademir

Secondary Sub Coordinator

Primary Sub Coordinator

Print Shop Sub Coordinator

Support Team

Couto

Oldenburg

Kurtz

Poll

Moura

Team

Maiquel Maske

Support Team

Shipping as Scheduled Building According to Schedule Plan for Each Part Designated Storage Containers of the Right Size and that Support the Operator Pull Systems Internal Delivery Routes Delivery of External Material

77

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MM1- Shipping as Scheduled Score:

Criteria and Observables:

3.00

Scheduled shipment windows and visual controls have been set up. Excess or short shipments have been minimized and compliance with the shipping window is between 90% and 95%. A board has been created for scheduled shipment windows, but it is not always used or brought updated. There are some red dots on the scheduled shipment windows board RSG Tip

Board that showed shipments windows at Support Logistics and Primary Production Area. Some indicators that show shipments window effectiveness.

Given the business model from Brazil, managing finish goods tightly is fundamental, therefore the fulfillment KPI is Key to the operation. Synchronization and continuity are vital in this market.

MM1- Shipping as Scheduled 0.25%

0.08%

0.37%

0.11%

0.03%

0.02%

0.26%

0.26%

2008 2009 Jan Fev Mar

Abr Mai

Jun Jul Ago Set Out Nov Dez TD 09

KPI

Objetivo

MM1- Shipping as Scheduled

Loads & Empty Returned Control 112 913

308

2010 Actual

1171

1042

151 27%

181 17%

173

187

17%

Jan

1042

Feb

17%

17%

MAr

Load

Apr

Aug 2010

Empty Returned

1319

78

1206

Material Movement

1160

1158

1151

1143

1003

1112

1067

1007

933

859 635

2009 Actual

390

347

369

348

328

296

255

146

PMC_010_053_libro P5 65-80.indd 78

23%

35%

32%

28%

26%

28%

30%

308

258

181 18%

224 23%

30%

177 21%

19%

27%

20/9/10 17:48:47


308

2010 Actual

151 27%

181 17%

17%

Jan

173

187

Feb

17%

17%

MAr

Load

Apr

Aug 2010

Empty Returned

MM1- Shipping as Scheduled 1319 1206

1160

1158

1151

1143

1003

1112

1067

1007

933

859 635

2009 Actual

390

347

369

348

328

296

255

181

146 35%

23%

Feb

32%

Mar

28%

Apr

Mai Load

28%

26%

Jun

30%

Jul

308

258 18%

Aug

224 23%

Sep

30%

Oct

177 21%

Nov

19%

Dec

27%

Aug

Empty Returned

MM1- Shipping as Scheduled

Material Movement

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MM2- Building According to Scheduled Score:

Criteria and Observables:

3.00

Production leveling has been established in the operation that sets the standard. Planning transfers customer requirements in a weekly balanced production schedule for the operation that sets the standard. Over 80% of finished products and semi-finished products are produced to level the production plan pattern. The desired level of stock of finished products has been defined and this level is maintained.

During beginning of January’ 10 Supply Chain trough Production Planning review and applied SCO methodology in order to evaluate new finished good inventory policy as demonstrated below for the main brands:

2009 Policy

2010 Policy

#

RSG Tip

MARLBORO RED FTB

14

12

(2)

MARLBORO RED SP

15

12

(3)

MARLBORO GOLD FTB

15

12

(3)

MARLBORO GOLD SP

19

12

(7)

SHELTO SP

14

10

(4)

SHLETON SLIMS SP

17

17

0

It is of the most importance to have a close follow-up to the weekly fulfillment of the production program as well as the average production rate, this KPIs should be analyzed at a daily level, and not only at FG but to semis, since this are is in different locations and their impact is greater. What a Lean system should target is to produce accordingly to the market demand, synchronizing both market and actual production using Production Adherence and Schedule Fulfillment KPIs.

L&M LI RSP

18

10

(8)

DALLAS BLUE SP

15

19

4

LUXOR EX SLIMS SP

18

12

(6)

PALACE SLIMS SP

17

18

1

17.3

14.5

(2.8)

Brand

TOTAL

MM2- Building According to Scheduled FG inventory reduction (mil cigs) on DSD (Direct Sales & Distribution) & EZD (Exclusive Zone Distribution) enabling row material inventory revision. 550

555 459

429 389 351 313

320

350 310 251

RSG Tip Safety Stocks are a safety measure, however, the focus should be towards the demand. It is important not to lose focus in synchronizing with the demand and work to reduce variations in order to bring safety inventories to cover only lead time, instead of eventualities.

80

Material Movement

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MM2- Building According to Scheduled Duração DIM (MR$) 16.0 15.0 13.1

19.4

16.9

2008

2009

13.2

13.7

Jan

12.8

12.5

12.6

Fev

Mar

12.8

13.1

13.1

12.8

12.8

12.9

12.9

13.0

12.9

Abr

Mai

Jun

KPI

13.6

12.5

Jul

Ago

Set

Out

Nov

Dez

YTD

Objetivo planejamento

DIM inventory reduction. Continuously Improvement Group is working with new PMI polyce to reduce DIM inventory level.

MM2- Building According to Scheduled 2009 Actual (Tons) 235 233

256

231

245

2010 Actual (Tons)

248 200

136

219 191

193

122

189 149

108

136

Dez-08 Jan-09 Fev-09 Mar-09 Abr-09 Mai-09 Jun-09 Jul-09 Ago-09 Set-09 Out-09 Nov-09 Dez-09

111

Dez-09 Jan-10 Fev-10 Mar-10 Abr-10 Mai-10

F Prototype inventory reduction. New prototype production without Top Flavor throughout each batch (Top Flavor to 1 ton around).

81

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MM2- Building According to Scheduled

Print Shop pallets optimization. Labels, BP, RSP & TP already used pallet optimized (1.13 X 1.13).

MM2- Building According to Scheduled

Inks inventory reduction at Print Shop site. Blue ink optimization using local supplier. SKU Reduction (4). Cost reduction per kg/ink.

Recurso

310001301

Descrição

IK AZUL CLARO METÁLICO L&M RTG

Recurso

Descrição

Fórmula

Custo

Custo total

Fornecedor

53. 0148

IK AZUL CLARO METÁLICO SUN RTG

60.000

R$ 40.96

R$ 2.457.60

Sun chemical

54.0036

IK VERNIZ DE CORTE SUN RTG

15.000

R$ 7.88

R$ 118.20

Sun chemical

53.0146

IK AZUL TONER SUN RTG

3.000

R$ 30.70

R$ 92.10

Sun chemical

53.0144

IK VIOLETA TONER SUN RTG

0.500

R$ 106.06

R$ 53.03

Sun chemical

40018340

IK ACETATO DE ETILA RTG

19.625

R$ 3.48

R$ 68.30

RHodia

Custo total

Fornecedor

Cost per Kg R$ 28.43 Recurso

310001301

Descrição

IK AZUL CLARO METÁLICO L&M RTG

Recurso

Descrição

54.0004

IK VEICULO MÉDIO CR RTG

25.000

R$ 15.61

R$ 390.25

Cromos

53.0018

IK AZUL FTALO II CR RTG

15.000

R$ 21.10

R$ 316.50

Cromos

40014055

IK PRATA 255PA SB RTG

2.000

R$ 137.49

R$ 274.98

Silberline

Fórmula

Custo

53.0143

IK VERM RUBI TONER SUN RTG

0.500

R$ 70.06

R$ 35.03

Sun chemical

53.0144

IK VIOLETA TONER SUN RTG

0.400

R$ 106.06

R$ 42.42

Sun chemical

40018340

IK ACETATO DE ETILA RTG

10.725

R$ 3.48

R$ 37.32

RHodia

Cost per Kg R$ 20.45

82

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MM3- Plant for Each Part Score:

Criteria and Observables:

3.50

A PFEP database has been set up, maintained and is used to support implementation of the movement of materials in most Value Streams of the factory (more than 80%). The PFEP database is electronic, it is entirely used, it is accessible to multi-functional teams and has updated and detailed information of at least 80% of part numbers.

Traceability System used as PFEP.

Bar code for all materials used at all Process.

RSG Tip Material Management systems are proven to be very robust in secondary, it is important to bring all this systems to the rest of the business units across the value chain. Information generated by this systems, KPIs and electronic databases should be available to anyone that needs to access this information.

MM4- Designated Storage Score:

4.00

Criteria and Observables: Parts are supplied directly by the supplier to the supply areas. Inventory in process and empty containers have been reduced to the point that all are stored in the supply area, without affecting the area in which the operator works.

83

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Raw materials to 8 production hours around machines (kits) on Secondary Process. Internal delivery routes to supplier Kits and removing empty Kits at all Process.

RSG Tip This system is one of the most robust and complete in the Region, and the score applies to the scope presented by the affiliate. It is necessary to ask if this degree of implementation is present in the rest of the business units in operations, and also if there are already included in the Greenfield project. The affiliate covered every criteria stated from this element in the current gap assessment guide, and therefore becomes benchmark in the region

MM5- Containers of the right size Score:

Criteria and Observables:

4.00

At least 75% of material is in standard packing quantities and has been reduced to containers that may be easily transported. All returnable containers that have been used have been implemented. The repacking strategy is used even when use of containers has not been implemented. Repacking is used when necessary. Production material is kept in the operator’s working area for at least 2 hours.

Row Material Kits supplier implementation to 8 hours on Secondary Process. Empty RM Kits reverse logistics at Secondary Process. Bags (cut-filler) are supplied from Primary to Secondary with reverse logistics also.

RSG Tip As with the previous element, this initiatives should be present in all business units across operations. The affiliate covered every criteria stated from this element in the current gap assessment guide, and therefore becomes benchmark in the region

84

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MM6- Pull Systems Score:

Criteria and Observables:

3.00

Pull systems are used to connect the process that sets the standard with supply processes. There is a process for maintaining and assessing inventory levels and updating Pull systems every now and then. Rules are sometimes broken. Pull cards may be found in all closed inventories next to the line; Pull cards have been removed from open containers; used Pull cards are in their allocated location; there is no program on paper on the floor; operators are committed to the system.

Electronic Kanban is used on Secondary Process connecting with Support Logistics.

RSG Tip All internal systems should be connected in such a way that buffers are eliminated (or reduced to the smallest possible size) and the system replenishes what the market demand is moving forward along the operation. The affiliate has the advantage that the system developed in secondary is effective enough to be the standard and be deployed in the rest of the operation.

MM6- Pull Systems - Timeline Electronic Kanban is used on Secondary Process connecting with Support Logistics.

Logistic 19/02 Meetings with Supplier

2009

Business Case Project Charter Supplier Definition 650B Approval Tool Development

2010 1ºQ

22/04 Evaluation & Changes

01/06: Roll-out

2010 2ºQ

31/05: Test & Validation

Kaisen week on Filter Process

2ºQ Kanban on Print Shop

Business Case Evaluation & Changes Test & Validation

2010 3ºQ

2010 4ºQ

Roll-out on Filter Process

2011

4º Q Kanban on Tobacco Process

85

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MM7- Internal Delivery Routes Score:

Criteria and Observables:

4.00

All empty parts and containers are delivered/removed directly from all working areas of operators, based on Pull signals at frequent intervals and on pre-determined routes. There is no effect on operators’ working material. Operators for subsequent operations receive material on scheduled routes.

Routes to supply Kits at Secondary Process (road map) with frequent intervals Scheduled. Routes to supply tobacco from warehouses to Primary Process. Routes to supply cut-filler from Primary Process to Secondary Process.

RSG Tip This initiative is a best practice across the Region, materializing the theoretical requirement from the book into a well balance between functionality and cost effective initiative. The affiliate covered every criteria stated from this element in the current gap assessment guide, and therefore becomes benchmark in the region

MM7- Internal Delivery Routes

Distance between PMB sites Unidade Carlota

Armazém 2 Depósito de Tabaco

Unidade I

Depto de auditoria e Qualidade de Materiais

3 km

300 m

Unidade II

Processos Produtivos, Depósitos de Materiais e Tabaco

6 km

Unidade I

Fábrica 2 - Produção de Cigarros

3 km

500 m

Rec. Federal

Unidade III

Selos Fiscais

Depósito de Tabaco

86

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MM7- Internal Delivery Routes

MM8- Delivery of External Material Score:

Criteria and Observables:

2.00

Scheduled windows and visual controls have been established. Adherence to window times (both for loading and unloading) is less than 80%. A scheduled receipt window table is being installed.

Weekly delivered of row material from external supplier is showed to all employees at Material Logistics Area (file from SAP System). Unload window is beginning used for this Area.

RSG Tip Internal logistics are solid, but on the other hand they are weak once leaving the plant boundaries, in terms of external deliveries. In order to achieve a completely robust system both inside and outside this element should be strengthen, since failing in managing external materials may collapse the internal system no matter how effective this may be.

87

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Achievements New Finished Goods Inventory Level. Row Material Inventory Revision. Continuously Improvement Group to Polypropylene & Inner Liner Optimization. Cut-Filler Prototype Inventory Reduction. Blue Light Ink Optimization Using Local Supplier. (SKU Reduction). Kits to 8 Production Hours on Secondary Process. Internal Delivery Routes to Supplier Kits on Secondary Process. Internal Delivery Routes Optimization to Supplier RM, FG & CF from WH to Process. Electronic Kanban on Secondary Process. Some Equipments: Electric Trolleys, Kits, Vacuum Handling, Electrics Platform, Electrics forklifts‌ Pallets Optimization & Standartization. Support Logistics Area Optimization: Picking Area. Supermarket System on Support Logistics Area.

Material Movement 2010 Final GAP Assessment Sub System

GA 2009

GA 2010

2011 Target

Q1

Shipping as Scheduled

2.00

3.00

3.50

Q2

Building according to schedule (production)

3.00

3.00

3.50

Q3

Plan for each Part

3.00

3.50

4.00

Q4

Designated Wharehouse

2.50

4.00

4.00

Q5

Containers of the right size ant that sup

2.00

4.00

4.00

Q6

Pull Systems

1.50

3.00

3.50

Q7

Internal Delivery Routers

1.00

4.00

4.00

Q8

Delivery of External Material

1.50

2.00

3.00

2.06

3.31

3.69

Average

88

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Material Movement Book Overall Assessment

The work developed in this book in a short period of time is extraordinary, and the assessment scores reflects that effort. It is important to highlight the strategic role this books has taken for the system in this affiliate. Across the region, it is safe to say that Brazil has the best strategic understanding of the material movement system. Inventories reduction are beginning to show in Finish Goods, Direct Materials and Cut Filler for prototypes. There is a traceability system using handheld technology, that together with internal delivery routes, kitting system and containers of the right size, are a perfect example of an cleaver and cost adequate effort. The next step should be incorporating workers in the management and design of this system. It is expected for the affiliate to analyze the entire value chain and take the best learning’s to all of the operation, so that the score of the assessment truly reflects a door to door implementation, since most of the initiatives were build in secondary with great results, but should also be incorporated to the rest of the business units.

Material movement Book 2009 - 2010 Progress 4.00

3.00

2.00

1.00

0.00 MM1

MM2 2009 GA

MM3

MM4 2010 GA

MM5

MM6

AVG 2009

MM7

MM8

AVG 2010

89

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Organizational Involvement

90

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Organizational Involvement Team Luiz B.

Luiz

Kroth

Quadros

Pillar Coordinator

Pillar Sub Coordinator

Claudio

Fernando Fritsch

Pacheco

Janine

Alexandre

Secondary Coordinator

Primary Coordinator

Print Shop Coordinator

Support Team

Fernanda D.

Felipe

Luaciano G.

Daniela

Secondary Sub Coordinator

Primary Sub Coordinator

Print Shop Sub Coordinator

Support Team

Candido

Jacqueline

dos Santos

Desbesel

Support Team

Support Team

Nascimento

de Rosa

Barros

Pinto

Eidt

Lopes

Values & Beliefs Communication Plan for the Entire Factory Factory Health, Safety and Environmental Policy Education and Training Certification of Multi-skills/Multi-functions Recognition System Suggestions System Structure and Support of Natural Working Groups Development of the Organizational Structure Collaborative Working Relations

91

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OI1- Values & Beliefs Score:

Criteria and Observables:

3.50

There is clear evidence that values and principles have been institutionalized. Decisions are checked against our main values and principles and against the concept of excellence. A procedure has been set up to strengthen values and principles. Communication of values and principles has been documented and they have been put into practice for the last three months. Employees recognize values easily and/or know where they can find information. There is a periodic assessment system.

PMB Vision creation with the leadership and change team in november/2009; “Be Recognized as one of the best PMI Operations in the world, based on development, commitment and people’s recognition, with focus on innovation and excellence of our processes and products” Communications of Operation Brazil Vision were realized on 15 march until 01 april/2010 during the Open Model Spread Out and the values and principles were worked with experimental activities; Positive feedbacks from employees; VOLUNTAR Program. (see intranet site)

RSG Tip There is a great job in terms of vision and shared values, focusing on the basics. The positive feedback program for employees is remarkable, since this program recognizes the importance of positive feedback, they have living examples on floor that show how this motivates people. It is recommended that in each meeting a few minutes are dedicated to recognize the values that were lived during the session. Also, as soon as possible, the team should help the organization understand what is the mach between PMI values and the local values and find a way that they don’t coexist in parallel but as a single and universal concept.

OPEN SPREAD OUT

The values and principles were worked with experimental activities;

92

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“Inovação, Comprometimento e Excelência” OPEN SPREAD OUT

The values and principles were worked with experimental activities;

93

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VOLUNTAR PROGRAM

OI2- Communication Plan for the Entire Factory Score:

Criteria and Observables:

2.50

There is a process for developing and implementing a communication plan. The plan is now being worked on and tasks are related to the targets and objectives of the factory or site. A survey has been drafted to measure employees’ understanding of business targets and objectives.

Leadership meeting (each three months); News Letter e-training; Quality Newspaper; My Idea Program such as a Communication Tool;

Operation KPI’s communication through PNR Program; Open Model intranet page; Institutional Video;

RSG Tip It is important to have a single communication strategy for all initiatives across the plant, in which different messages are not competing one another, this strategy should define the right media, the right audience and the right timing, having in mind that communication should be designed from the recipients needs point of view. There are different communication boards across the operation, this suggests (without necessary being right) the existence of silos, that should gradually be integrated as a whole. They developed an intranet site, which is also a good practice that should be analyzed by affiliates.

94

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OI3- Factory Health, Safety and Environmental Policy Score:

Criteria and Observables:

3.00

The site has implemented the integral health, safety and environmental system; its indicators show improvements; its progress is put on record by system audits and the EHSS policy is reviewed frequently (levels 4,5 and 6) Health, safety and environmental procedures are obligatory and are documented: General and specific rules are normally respected. The change in culture is evident. Notice boards display safety indicators; planned inspections are carried out as are investigations into accidents; the BMP has been adopted; 5Ss are part of the working culture. Ongoing improvement in safety KPIs.

Pilot program “Protect the Hands and Keeping the Health” for Maintenance Technicians of the Secondary Process; Safety Minute with Secondary Process employees; SOL improvement;

Focus in personal attitudes; Green Cross in all cells; COERGO team (Benchmark for other affiliates); Humanization meeting.

RSG Tip They took the interesting decision of incorporating behaviors into the EHS system, this may be a good practice as long as when investigating events the root causes goes always beyond attributing the cause to behaviors. Safety training is of the finest and more artistic (lateral thinking). They have reached a point in which refreshing this element is key and it will be a big effort, but by doing so KPI numbers will reflect the efforts.

“Protect the Hands and Keeping the Health”

Pilot program “Protect the Hands and Keeping the Health” for Maintenance Technicians in the Secondary Process .

SOL REVAMP PResults Meeting with leaderships on the results spread; Team Highlights Recognition (with trophies); Evaluation Program The results of the SOL Programa in Philip Morris, Santa Cruz do Sul Unit, can be checked in loco at any moment, because besides visualizing these results in the work enviroment and physical instalations, also their can be observed the commitment of the people in making the SOL concepts present in the development of their daily tasks. The mission of the program is to develop a behavior change in our employees.

95

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SOL Improvement Principal Changes: Alteration of the check-list format; Attribution of different weights in the risk classification; Inclusion of behavioral item; Attending the requirement 4.3.1 (OHSAS 18001).

Item

Possible Scoring Previus Version Current Version

Security

56%

30%

Order

23%

20%

Cleaning

12%

5%

Results

10%

0%

Behavior

0%

45%Â

Total

100%

100%

COERGO

COERGO team (Benchmark for other affiliates).

Cart for collecting samples for analysis

NEW

Ergonomical Tables for Cells 1,2 and 3 mechanics machine operation.

96

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Cart for collecting samples for analysis

NEW

Shovel for waste collecting

Wheels for machines transportation

OI4- Education and Training Score:

Criteria and Observables:

3.50

There is a structured method to identify training needs and to develop a training plan. NWGs, NSGs and factory management are involved. Detection of needs and the training plan are the result of work carried out jointly by factory managers. Detection of needs by group has been filed. All managers are aware of the site training plan.

All trainings are integrated in the same plan: health, safety, quality and technical, to form an individual as a Philip Morris worker; operation.

RSG Tip The role of the technical training personnel is remarkable in terms of their involvement with OPEN, their commitment and professionalism. This same methodological rigor should be extended to soft skills training, in which an umbrella should be design covering the entire soft skills set integrating behaviors. There are also some Lean concepts that should be shared with workers, adapting knowledge to the audience in order to deploy initiatives more easily and assure sustainability.

Training Operations - Guideline 1. Definition of Training needs

Monitors Surveillance

4. Training results evaluation

2. Project and Training Planning

3. Training Execution

Organizational Involvement

Improvemnent Needs

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RD 058 Last Estimate Planning

Organization Needs

97

Requests, Improvement groups Person needs, Incidents, accidents Risk analysis

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3. Training Execution

Model Analysis of Training Needs Improvemnent Needs RD 058 Last Estimate Planning

Requests, Improvement groups Person needs, Incidents, accidents Risk analysis

Organization Needs

Need related to the competencies

Other Needs

Other Needs

Training Needs

Training

Training Process Planning & Development • Methodology   • BTP application   • Mini-class, upgrade class Records • Documents   • Pre and post test;   • Training data;   Training reaction;   On job training form.;   Training results.   ISOTRAIN Resources Background of training team

EVERY JOB • Skills (technicall and “soft”) • Knowledge • Attitudes

•SKA’S

Training Report

98

Organizational Involvement

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What has been done … BTP; Self-control; At the end of 2009, implement technical training in Tobacco Processes with pilot class in July; Workshops • Operational availability; • Autonomous Maintenance; • Preventive Maintenance.

Recycling; Mentoring Program; SPC; All new Mechanics and Electronics are being trained as well as operators (level 1), before mechanical training delivery.

What has been done … LA partnership

Cooperate with several affiliates by sending:   manuals,   methodology and documentation to develop a Training Area   deliver Training there or   preparing a technician to deliver OJT there: • Venezuelan; • Argentina; • Costa Rica; • DR;

• Colombia; • Ecuador and • Senegal Analyzed the potential opportunities to share practices and resources between Argentina and Brazil’s training centers. The first action occurred in May: TTT was delivered in Colombia ; Center of Expertise: MK9, GDX1, GDX2 and Passim we are contributing: sharing experiences, trading data and delivering training

Some Good Contributions

Mar 06

Mai Jun Jan

Feb

Mar

6.7%

9.1%

14.8%

Internal Rejetion - Printed Material (%)

44.7%

90

100

130

140

21%

Roland Produtivity (%)

Star up - Onserts

Apr 06 May 06

Apr Participação em Treinamentos 2010

Set Up - Shrink Film

120% 100% 80%

75%

60%

120

100

100

40%

Aug

Sep

Oct

20%

Rtes

Lm

Open

Long term projects At the end of 2012 - 5% of labour journey dedicated to Training; Cooperate with local Technical Schools to build a recruitment source and gather an updated awareness of the educational system, its contents and alignments with trends. (Special needs persons) And mainly to interact with the whole Latin America forming a training party.

Organizational Involvement

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99

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OI5- Certification of Multi-skills/Multi-functions Score:

Criteria and Observables:

2.50

Some departments/administrators encourage job rotation by providing operators practical hands-on training. This not a formal factory policy. There is no staff covering program. Production is lost when jobs are rotated. Only some operators selected are trained to cover other jobs.

Improvement identified in the VSM; Most of the training is technical; Job rotation in Tobacco Process, Printing Shop and in some machines of the Secondary Process (all providing operators practical technical training). SPC and Traceability performed by operators ( Benchmark and support for other Affiliates: Argentina, Uruguay, Colombia, Costa Rica , Ecuador next July) Operators accountability: Safety, Product Quality and Equipment Performance

RSG Tip They are still in the phase of finding and determining what their multi skills strategy is going to be. So time was destined to have a conversation on what the strategy should be, the importance of this strategy is fully understood. There is a good set of technical trainings, a soft skills and lean oriented trainings need to be developed to support the strategy.

OI6- Recognition System Criteria and Observables:

Score:

3.00

A formal recognition system has been set up under which natural working groups (teams) are taken into account. Results are consistent with business targets. The criterion for applying the recognition system is not the same for all the site’s areas. Managers take responsibility for dealing with those restrictions that affect NWGs, but it is not in their hands (quality of material, changes in assessment criteria, etc.) Some natural working groups (teams) have been given formal recognition. Cases of formal recognition have been documented and communicated to all the site’s areas.

PPilot recognition program in Secondary Process since november/2009 (best results in CPQI an VQI); Tobacco Process and Print Shop in progress; New recognition program in Secondary Process with safety, quality, waste and performance indicators; ABCD Award Excellence Award Improvement Groups Recognition

Kaizen Weeks Recognition Highlights EHS’s

RSG Tip They started a new recognition program that includes KPIs such as safety, quality and waste with a really good use of the PMI institutional tools for recognition.

Recognition System Pilot

The teams of the Open Model Books- Environment, Involvement and Quality- organized this recognition in order to establish a program for the good results in quality since November/2009. The machine teams that achieved the targets in CPQI and VQI received an identification in their machines and the appreciation of the director, management and supervision of the Secondary Process and Support Areas.

100

Organizational Involvement

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Recognition System Pilot 217

Recognition and training

223

178 162

168

165 152

CPQI - Total

158

CPQI - Total n

Set/09

Out/09

Nov/09

Dez/09

Jan

Total VQI

Objetivo

Cigarros

Feb Carteoiras

MAr Filme + Fitilho

1.02

1.05

1.01

1.00

1,05

1.02

1.07

116

117

115

115

116

114

119

0.42

0.39

0.42

0.45

0.36

0.39

0.39

Set/09

Out/09

nov/09

dez/09

jan/10

fev/10

mar/10

CPQI and VQI recognition is a good tool for employees involvement and stimulation.

Improvement Groups Recognition

On April 17 the Improvement Groups were recognized for their results and dedication.

Kaizen Weeks Recognition

All Kaizen Weeks the employees that participate receive the recognition of the director, managers and leaderships.

Organizational Involvement

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Highlights EHS’s

People who put in the first place their health and safety , respect the environment and are concerned with the welfare of others, received the recognition.

OI7- Suggestions System Score:

Criteria and Observables:

2.80

There is a formal suggestions system that the entire site understands. There is a rescannable amount of involvement and most suggestions require further analysis and concentrate on improving processes. Recognition of involvement in the suggestions system has been formalized. There is less than 40% involvement in suggestions. Suggestions are looked at and assessed. There is evidence of suggestions made on the basis of employees’ contributions. The natural support group provides feedback. RSG Tip

“My Idea Program” was implemented in march/2010 and spread out for all employees in the Open Model Program.

They need to be very sharp in order to keep the suggestions system under control, with the commitment of providing feedback to all suggestions. It is necessary to develop a plan to evolve the current suggestions system into a focused program that it is linked to the VSM, this evolution should be performed as soon and as quickly as possible.

My Idea Program Involve all operational people in a continuous improvement process; Exercise the empowerment; Stimulate new ideas and opportunities; Use collecting boxes around the business units; Provide dedicated analysis for feasibility and cost impact; Feedback during team meetings; All validated ideas are recognized once a month; Best ideas to be recognized during a formal event.

102

Organizational Involvement

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My Idea Program

My Idea Program was communicated for Printing Shop, Primary Process and Secondary Process lastFebruary and for all employees during the Open Model Spread Out.

My Idea Program- Results 250 200

Ideias Validadas Ideas Nao Validadas Em estudo

202 ideas

150 100 50 0 Mar-10

Abr-10

May-10

Jun-10

Jul-10

Ago-10

Sep-10

First month results – all Bus

Oct-10

Nov-10

Dic-10

16 % of the employees participated in March

My Idea Program Statement

Flávio André Martins Process Operator Cast Leaf Area 2.

“We have a good expectation regarding to My Idea Program. This program will be an important communication channel between the production people and leadership in order to stimulate the involvement and creativity of all employees. To have an open mind to see improvement possibilities in our area is fundamental to the My Idea success . This will bring to us a better knowledge, encouraging our professional development. “

“In my opinion, the My Idea is an excellent program because it gives all employees the opportunity to participate in our process improvements. With My Idea Program, our suggestion for improvement will not be forgotten if not used within that time, the system will be achieved and can be reviewed later. “ César Drescher Pritn Shop Assitant

Organizational Involvement

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My Idea Program Recognition

This picture is the first recognition of the My Idea Program realized for the maintenance technicians In the Secondary Process. The employees received a little souvenir with the PMB logo.

OI8- Structure and Support of NWG Score:

Criteria and Observables:

2.50

Natural working groups are now being incorporated into cells. Functions and roles are not yet completely defined or documented Natural working groups carry out group activities that are now beginning to be documented. These activities are infrequent and are not formalized. Supervisors have begun a transition process in order to set up the natural support group (NSG).

With the PRIMAT introduction in the Primary Process are now being incorporated the NWG into the cells. Printing shop has implemented the auto control activities shared with all operational people. Secondary Process NWGs know all KPI and control their targets. The NWGs present their results once a month with their action plans.

RSG Tip It is required a solid training strategy aimed to natural working groups and natural support groups, so that both parts may understand its respective roles and are able to evolve together with the system. It is also important to have in mind that basic cells are not restricted to manufacturing, any other support area should apply this concept in order to improve the value stream flow; in order to achieve this a fine cell mapping work should be done.

OI9- Development of the Organizational Structure Score:

Criteria and Observables:

2.50

The gap assessment of the organizational structure has been shared with key audiences, in order to understand specific needs and differences, and to create a three-year panorama of the organizational structure. The organization has a formal benchmark and a business plan to achieve it has been established.

All job descriptions were revised; Individual evaluation was validated, shared with leadership and the implementation is ongoing; Workshop Sense of Urgency e Change Management was delivered for leadership (Out ‘09); PMB Vision was created and shared with all employees; Organizational structure is being studied in order to standardize BU’s ( Benchmark with LA and EU).

104

RSG Tip There is a very mature supervision group, collaborative and with whom workers feel comfortable, and this makes them a key element of the process.

Organizational Involvement

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My Idea Program Recognition Score:

Criteria and Observables:

3.50

The supervisor deals with problems related to labor matters and CBAs with a greater degree of autonomy. Values and principles are incorporated consistently into day-to-day tasks. The supervisor seeks out the union’s executive committee to establish alliances in order to achieve targets together. There are common tasks that go beyond just finding a solution to disputes. There is a formal and documented error-handling procedure. There is evidence of joint action and projects with the union’s executive committee. Recognition processes are mainly guided by the supervisor, making the most of this opportunity to create processes that involve the union and HR.

Tools being implemented to build collaborative working relations: Individual evaluation was validated, shared with leadership and the implementation is ongoing; My Idea Program Feedback session; Leadership is responsible for NWG schedule control ; Union participated with PNR targets definition; Meeting with Union (each 3 months) in order to discuss work relations; Last Union agreement with 82 % of approval ; Excellent Union relations.

RSG Tip Keep on the good work!!! Operations Director role is fundamental given his absolutely natural style. Commitment from the Union was fundamental for the success of this element and it was clearly achieved.

Organizational Involvement

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105

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Organizational Involvement 2010 Final GAP Assessment Sub System

GA 2010

2011 Target

EE1

Values & Belifs

1.00

3.50

4.00

EE2

Communication Plan for the Entery Factory

1.50

2.50

3.00

EE3

Factory Health, Safety and Enviromental Policy

3.50

3.00

3.50

EE4

Education and Training

2.00

3.50

4.00

EE5

Certification of Milti-skills/Multi-Fuction

1.00

2.50

3.00

EE6

Recognition System (non-guaranteed payment)

2.00

3.00

3.50

EE7

Suggestions Systems

1.00

2.80

3.00

EE8

Structure and Support Of natural Working Groups

2.00

3.00

3.50

EE9

Development of the organizational Structure

2.00

2.50

3.00

EE10

Colaborative Working Relations

2.00

3.50

4.00

1.80

2.98

3.45

Average

106

GA 2009

Organizational Involvement

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Organizational Involvement Book Overall Assessment This is one of the books that during the last year manage to evolve from a series of isolated initiatives and tools to an integrated system. The team has moved forward in the system as much as it is possible for the management team to advance, they find themselves in a position where high impact strategically decisions are to be defined and latter taken. In terms of Values & beliefs they did a massive event originally for management teams, and latter for more than 1,200 workers. The training team is a great strength for the future evolution of the system, they must apply the same methodological rigor used for technical training into soft skills training. This will be a great advantage when deploying training as support for the new roles that are to be defined. he Organizational Involvement needs to work shoulder to shoulder both with the Operational Availability and the Workplace Order book teams, defining the roles that put the operator in the center of the whole system, and effectively communicating this strategy.

OI Book 2009 - 2010 Progress 4.00

3.00

2.00

1.00

0.00 EE1

EE2 2009 GA

EE3

EE4

EE5 2010 GA

EE6

EE7 AVG 2009

EE8

EE-9

EE10

AVG 2010

Organizational Involvement

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107

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Final Assessment Summary

108

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Merlo OPEN Overall Assessment Sub System

GA 2009 GA 2010 2011 Target

FM

Values & Belifs

1.39

2.72

3.22

WO

Communication Plan for the Entery Factory

1.58

2.25

2.75

Factory Health, Safety and Enviromental Policy

2.96

3.45

3.85

OA

Education and Training

1.88

2.46

3.04

EE

Certification of Milti-skills/MultiFuction

1.80

2.98

3.45

Recognition System (nonguaranteed payment)

2.06

3.31

3.65

1.95

2.86

3.33

Q

MM

Average

Final Assessment Summary

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Assessment Summary The overall progress of the OPEN implementation during the last year is remarkable. Going in only a one year period from a performer level to knocking the door to the reformer level, and in the case of the Quality and Material Movement books, clearly going into that stage. All of the 6 pillar books have their own organizational structure, increasing with this the effectiveness of the initiatives being deployed. Also, every book team has develo ped a great work on understanding the strategic implications of each concept, and the best way to adapt them to the local operation. This kind of results are not possible without the commitment and leadership from the operations Director, that in the case of Brazil is evident. OPEN has truly become the central strategy in operations, integrating everything under the same umbrella. The OPEN team has reached a turning point in the implementation, in which the system needs to transition into the hands of the natural working groups; creating more empowerment to them so that they gradually integrate at a greater level in every aspect of OPEN. Defining the future role of the operators is key, placing the operator at the center of the system. Another aspect that should be addressed is the standardization of some initiatives throughout the entire value chain, with the possibility of even improving some very good practices by defining a standard based on the best from each area. Quality and Material Movement Books, must be the leverage for the improvement of the system, while Organizational Involvement should work closely with Workplace Order in creating a communication strategy and with Operational Availability to define the future operator role that best fits the local situation in operations. Congratulations to the entire Brazilian team, their efforts in OPEN have truly created a new benchmark in LA.

OI Book 2009 - 2010 Progress 4.00

3.00

2.00

1.00

0.00 FM

WQ 2009 GA

110

Q 2010 GA

OA AVG 2009

EE

MM AVG 2010

Final Assessment Summary

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Final Assessment Summary

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111

20/9/10 18:08:25


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