The Print and Packaging Skillnet

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• Breakout Session Three
• New Approaches in Traditional Sectors
• SLM Skillnet
• Presenter Peter Morehead, Irish Distillers
  Pernod Ricard
• Print Packaging Skillnet
• Presenter Diarmuid Everard, Printcom Ltd.
• Chair Mr. Sexton Cahill, Irish Business
  Employers Confederation Skillnets Board Member

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New Approaches in Traditional Sectors Background

• SLM Skillnet
• Sector Manufacturing Wholesale of Non-durables
• Region Midlands, South-east, South-west, Dublin.
• Aims The aims of the SLM Skillnet are to develop
  enhanced skills knowledge and competencies for
  sectoral employees.

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Creating a performance culture in a bottling
plant, using lean manufacturing techniques.

• Peter Morehead, Production Director.

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Presentation structure

• SLM Skillnet
• Skillnets IDPR
• The Group the Company
• Case study Creating a performance culture using
  Lean Manufacturing Techniques
• Results Conclusions
• Next Steps

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The SLM Food and Drink Manufacturing Skillnet

• Focus on the Food and Drink Manufacturing Sector
• Established 1999
• Activities 2006/07
• 45 member companies
• 600 Trainees
• 4,743 Training Days

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Skillnets partnering with Irish Distillers

• 04/05 - Brewing Skillnet
• IBD Diploma in Distilling
• 06/07
• IBD Diploma in Distilling
• Best practice visits
• Guest speakers
• Improving bottling line efficiency through front
  line supervisors

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A Brief History

• Pernod Ricard is the family group that expanded
  its French based activity (83 of its sales in
  1975) through organic growth and acquisition

1966 Creation of Irish Distillers 1975
Creation of Pernod Ricard 1988 Irish
Distillers becomes part of Pernod Ricard
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Global Reach Ambition
000s C/E
2.3 Million C/E
2,500
6 million c/e 2016
2,250
2,000
1,750
1,500
1,250
1,000
750
466,000
500
250
89
93
88
90
92
94
91
03
96
98
00
02
95
97
99
01
04
05
06
07
Year
Source Pernod Ricard 2007 Base 9L. C/E
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Irish Distillers Production Division
Structure

• Bottling
• Supply Operations
• Inventory
• Planning Purchasing
• Contract Operations
• Engineering

Belfast
Bottling Plant Fox Geese (136 employees)

• Distilling
• Central Laboratory

Midleton, Distillery (110 employees)
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Case Study Fox Geese, bottling plantCreating
a performance culture using Lean Manufacturing
Techniques

• Objectives
• Raise OEE to 60
• Develop Supervisors to implement front line
  management techniques
• Timeline March November, 2007.
• Partnerships
• Supervisors - non union
• Operators - SIPTU
• Maintenance - TEEU
• Lean
• Management Control Systems
• Front Line Management
• Funding and Support

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Situation Analysis March 2007

• Strengths
• Young, mixed workforce, amenable to change
• High quality output
• Good managers / supervisors
• Good industrial relations
• Weaknesses
• Inefficiency 45 OEE on main lines
• Clutter
• All lines treated equally
• Poor first hour efficiencies
• Supplier quality issues
• Irregular communication back to the floor
• Opportunities
• Jameson Growth
• To build a world class operation based on Lean
  Manufacturing

• No Performance Culture

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APPROACH

• BASELINE EXISTING OPERATION
• HOW?
• Suite of weekly KPIs
• Time on the floor
• STRUCTURAL REVIEW
• HOW?
• Identify priorities
• Identify disconnects
• EMPLOYEE BRIEFING
• What?
• Why?
• How?
• CONSULTANTS REPORT
• A review of plant effectiveness completed in
  February 2006 (pre Demeter) by PROMECH
• VISIT PERNOD RICARD U.S.A.

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Actions

• 1. BRIEFED EMPLOYEE REPS TOGETHER
• Findings
• Plan outline
• Need for Change
• 2. RESTRUCTURED MANAGEMENT
• Production Engineering together
• Wet Dry supplies together
• QSE together
• 3. INVESTED IN SUPERVISOR TRAINING
• Lean Manufacturing Techniques
• 4. RAISED TARGET OUTPUTS
• Plan for 70 design
• Weekly line speed checks
• 5. SHORT TERM INTERVAL MANAGEMENT
• Focused on main lines

• 6. IMPROVED DATA CAPTURE
• Downtime analysis
• OEE dashboards
• 7. ADOPTED to 3 Ss
• Reduce clutter
• Tidy workstations
• Parts storage
• 8. SUPPLIER PRESSURE
• Non Conformances raised
• Compromises reduced
• 9. COMMUNICATION
• Daily Production Meetings
• Weekly Line Reviews (x2)
• Weekly Management Meeting
• Monthly Supervisor Meeting
• Quarterly Performance Review

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Training Development

• Phase 1 March June
• Value stream mapping
• Development display of process measures
• Classroom training FLM theory
• Compiled Line Operator TNA
• Identified Line Operator competencies compiled
  training versatility chart
• Identified Supervisor competencies compiled
  training versatility chart
• Weekly project review meetings with Operations
  Plant Manager
• Phase 2 July November
• On the job shadowing of Supervisors
• Off line coaching of Supervisors
• Skills Knowledge development of Line Operators

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Negotiation Status

• Supervisors
• Have adopted changes wholeheartedly
• Operators
• Agreed to undergo training on QA principles
• Line running through breaks.
• Cross skilling performance pay at a future date
  
• Maintenance
• More circumspect
• Agreed to changes in communication and
  diagnostics
• Progress remains to be achieved in a number of
  other key areas

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Results Achievements

• OEE now tracking 60 - 70
• End of line quality gt 99
• Rework reduced by 65 room for further
  improvement
• Year on year output 23 ahead
• fewer FTES
• shift reduced from 17 weeks to 8 weeks
• Integrated QA Training / Site visits completed.

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Concluding remarks

• OEE is now a primary focus
• IDPR is now aware of what is world class 80
  OEE, and believes it can reach that standard
• A positive approach to partnership is essential
  at grassroots
• Engagement at all levels is a key to success
• Ongoing Training Development is critical

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April 2008, Pernod Ricard wins tender to acquire
Vin Sprit and become joint leaders of the
global wines spirits industry
5.6 Billion
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2008 / 09 Leadership Development Programme

• Implement a company wide Performance Management
  Process to foster
• A constructive leadership style
• and
• Cascade objectives that align employee activities
  with the priorities of the business
• Methodology
• Quarterly business employee reviews
• Competency analysis
• Training Development planning at individual
  employee level (recognition / accreditation)
• Career Succession planning
• Performance evaluation for continuous improvement
  reward

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New Approaches in Traditional Sectors Background

• Print Packaging Skillnet
• Sector Print Packaging Industry
• Region National
• Aims The aims of the Print Packaging Skillnet
  are to improve the competitive position of its
  member companies through the delivery of relevant
  and well directed training.

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PrintComDiarmuid Everard MD

• Continuous Improvement
• with
• Lean Tools

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The Print and Packaging Skillnet

• National Focus on the Print and Packaging
  Industry
• Founded 1-1-06
• Activity to date
• 106 member companies
• Trainees 628
• Training Days 4,602

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The industry

• Traditionally locally competitive
• Increasingly internationally competitive
• Increasing input costs coupled with downward
  price pressures
• Significant skills gap vs. market needs
• Training needs
• Basic skills
• Substantive change programmes

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About PrintCom

• Founder member of the Print and Packaging
  Skillnet
• Steering Committee participant
• Engaged in considerable individual employee
  training 2006-7
• 12 loyal employees
• General Commercial, Digital and Continuous
  Stationary
• Introduced to Vision in Print Multi Company
  Improvement Programme through Skillnet

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The Lean Initiative

• Staff completely involved
• Off site session
• Full company status report given
• Co-operation requested and received
• Initiative led by key staff members
• Initial training with 3 other companies

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Staff Company Expectations
Clearly articulated and recorded!
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Streamlined Planning
Original order process New planning Board
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5C Office Workplace Organisation
Tools can also be applied in an office
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5C Workplace Organisation

• Machine maintenance
• Work areas organised
• Red Tag Book for issues
• Maintained by staff

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Re-organised Finishing

• Work area reorganisation
• Less space required
• Better work flow
• More efficient

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Re-organised Despatch

• Clear layout
• Everything in its place
• Significantly less space required

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The Benefits

• Better work flow
• Space requirements almost halved
• Staff involvement in change paramount
• Equally effective in the administration area as
  in production

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Conclusions

• Staff involvement key
• Application of Lean Techniques
• Openness to new thinking
• Real and sustainable change achieved