Lean Business Conference

21 February 2012

Where did I start

Why Lean?

Challenges

• Vertically integrated supply chain• Cultural Change

Very strong history of volume growth

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

FG Kg Produced Choc Volume KG

The actions and priorities of the team are a reflection of the leadership. If I want people to change first I must change myself.

Training TechnicalExcellence

Standard Processes

Scheduling Safety Environment

ChangeControl

Measure/monitorBatch Cards

WorkOrders

Morale

CCPDashBoard Culture

Accountability Financial Level

Results

Labour

Matrix KS

Rob, Ben -maintenance

SOP/WI/Cleaning SD/BS

Ph II SW/PM/JS/SM

Meeting TS/SWJohn Moore – BK/SW/PM

HAMMER – ALLKitchen – SD/BKCAPEX -BK

Quality Circle

Feb 09

Each and every day my team is here to

• Deliver high quality product• Deliver it on time in full• Develop out team to continue to grow

our skills• Keep the factory clean and hygienic• Do all of these things safely without

injuring our people

Give people the rules of the game, and measure their performance they will improve their performance.

Visual Management Boards

• Visual Management is a tool

• It is an attempt to provide simple feedback to the manufacturing team to measure performance

Enrober Team

Safety RIR – 1.1

Quality 94 %

Training 75 %

Red O OJack L UHamish I O

Demand

Production 107 %

Factory Cleaning Graph

27/1

2/20

10

6/01

/201

1

16/0

1/20

11

26/0

1/20

11

5/02

/201

1

15/0

2/20

11

25/0

2/20

11

7/03

/201

1

17/0

3/20

11

27/0

3/20

11

6/04

/201

1

16/0

4/20

11

26/0

4/20

11

6/05

/201

1

16/0

5/20

11

26/0

5/20

11

5/06

/201

1

15/0

6/20

11

25/0

6/20

11

5/07

/201

1

15/0

7/20

11

25/0

7/20

11

4/08

/201

1

14/0

8/20

11

24/0

8/20

11

3/09

/201

1

13/0

9/20

11

23/0

9/20

11

3/10

/201

1

13/1

0/20

11

23/1

0/20

11

2/11

/201

1

12/1

1/20

11

22/1

1/20

11

2/12

/201

1

12/1

2/20

11

22/1

2/20

1170%

75%

80%

85%

90%

95%

100%

Factory cleaning compliance

Quality Compliance Graph

Nov Dec JAN FEB MAR APR MAY JUN JUL AUG SEP OCT98.5

98.7

98.9

99.1

99.3

99.5

99.7

99.9

Factory QA Compliance% Compliance per Qty of product made each month

% C

ompl

ianc

e

Challenges

• Benefits of improved efficiency without losing the hand crafted appeal

• Seasonality

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 510

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Units Sold per Week

Shippers Dispatched

Seasonality

9/07

/200

6

10/0

9/20

06

12/1

1/20

06

14/0

1/20

07

18/0

3/20

07

20/0

5/20

07

22/0

7/20

07

23/0

9/20

07

25/1

1/20

07

27/0

1/20

08

30/0

3/20

08

1/06

/200

8

3/08

/200

8

5/10

/200

8

7/12

/200

8

8/02

/200

9

12/0

4/20

09

14/0

6/20

09

16/0

8/20

09

18/1

0/20

09

20/1

2/20

09

21/0

2/20

10

25/0

4/20

10

27/0

6/20

10

29/0

8/20

10

31/1

0/20

10

2/01

/201

1

6/03

/201

1

8/05

/201

1

10/0

7/20

11

11/0

9/20

11

13/1

1/20

11

15/0

1/20

1285.0%

87.0%

89.0%

91.0%

93.0%

95.0%

97.0%

99.0%

101.0%

% Products Delivered In Full

Series1 Moving average (Series1) Linear (Series1)

YEJ 2011 Top 50 Lines

1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

80%

85%

90%

95%

100%

366Maltichocs

364Caramel Chocs

18 & 38Truffle Boxes

618 Speckles

647Murray

Cod340 & 341Rocky Road

DEMAND REPORT 2010/2011 - % DELIVERED

% Delivered

YTD

You can never change anyone’s mind for them. When people see the reasons they will change their own mind

Moulded Chocolate

Carle

BindlerMoulding Room

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Pieter Elmo

Yes 1/2/2009 Pieter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Yes 1/2/2009 Peter Elmo

Moulded Chocolate

Carle

BindlerMoulding Room

Moulded Chocolate

1 2 3 4 5 6 7 8 9750

755

760

765

770

775

780

785

790

795

800

767

774

779

786

790

794

785787

784

MANUFACTURING TRAINING BY FORTNIGHT

1 2 3 4 5 6 7 8 9

FORTNIGHTLY GAIN IN POINTS 31 7 16 7 4 4 3 2 4

FORTNIGHTLY LOSS IN POINTS NaN NaN -11 NaN NaN NaN -12 NaN -7

-12.5

-7.5

-2.5

2.5

7.5

12.5

17.5

22.5

27.5

32.5

Level 5 / Perm Rest

FORTNIGHTLY POINTS LOSS / GAIN

Visual Management Boards

• This provides a Key Performance Indicator to both the manufacturing team and Management teams

Enrober Team

Safety RIR – 1.1

Quality 94 %

Training 75 %

Red O OJack L UHamish I O

Demand

Production 107 %

While I am still interested in the view from the mountain top, I have been transformed already by the journey thus far.