Integrated Lean Six Sigma What is it?

What is Integrated Lean Six Sigma? A Strategy to Build the Capability of the TOTAL Organization IL6S brings together Lean, Six Sigma, TPM and High Performance Work Systems in an integrated approach. Aimed at achieving and SUSTAINING breakthrough Business Results through a highly skilled, motivated and self-reliant Work Force Through 100 % Total Employee Ownership and Pursuit of Zero

Pursuit of Zero – Why is Zero Important? Loss is the difference between actual results and the ideal ZERO State The definition of quality is the conformance to requirements – NO Defects Eliminating Stops and Breakdowns enables Predictable Supply and Predictable Maintenance Predictable Supply is needed for a produce-to-demand system with just-in-time inventory

Building an End to End Supply Chain ZERO and 100… Create a predictable supply chain with customers and suppliers Big Losses Across the Silos in the Supply System Big Supply System Losses Inventory Delayed/Incomplete Orders Damage/Over Age Stock Productivity Initiative Launch Customer Returns

IL6S Design Elements Pillars Provide “Centers of Excellence” (COE) containing key tools and approaches aimed at building capability Build required capability horizontally across the Organization Pillars Are Not Functions With the House example, the pillars simply provide the builders with the necessary capabilities.

Integrated means building 11 interdependent Capability building pillars Kraft Vision ISC Vision CBN Pillars Foundation Make Kraft North America’s Best Food Company . “We are a CONSUMER-driven, CUTOMER-focused team delivering WORLD CLASS solutions and sustained breakthrough results through the best developed PEOPLE and CAPABILITIES 2 + 0 + 15 by 2015 thru POWER of 1 Stable & Predictable Line Performance Zero Losses Across the Value Chain Vertical Start-up of New Initiatives Autonomous Maintenance (AM) Progressive Maintenance (PM) Continuous Improvement (CI) Work Process Improvement (WPI) Supply Network (SN) Safety, Health & Environment (SH&E) Quality Management (QM) Initiative Management (IM) Leadership Organization (Org) Education & Training (E&T)

Blitz – Accelerating the Future Making IL6S the way we work Pillar Leads Dee Gibbs – Leadership Johanna Ramirez – AM Hany Azmy - PM Tim Preston - CI Bob Hollingsworth – IL6S Mgr Kato Oliver – Health, Safety & Env Windy Glahn – Education/Training Susan Ledbetter - Org Jill Hoffman – Quality Matt O’Shield – Material To be determined – WPI

Change our leadership behaviors Objectives: Prepare Leaders to effectively and efficiently leverage IL6S to meet their business needs. Begin the organizational change effort to achieve a Zero Loss and Total Employee Ownership Culture Ensure leadership defines the organization’s Compelling Business Need business in a way that every employee can link their work plan to it. 1. Understand Phase-0 and use IL6S Methodologies, and focus on System and People capability building. 2. OPM deployment and Start Organization Change for delivering for delivering Zero Loss Mentality and TEI working culture in your site, At first, you Leaders should start changing your leadership. How can you succeed to serve your support to your people? Without this success story at your site, it will not be possible to ZL Mentality and TEI. 3. Link everything to your CBN. Focus on Understanding External Business Needs and your CBN should be integrated to External Business Objective. Change our leadership behaviors

Culture Elements/Behaviors Leaders establish clear stretching objectives and standards for the organization based on business needs. Leaders role model IL6S behaviors, (e.g. finding & eliminating defects, root-cause problem solving, broad involvement of the organization, etc.) Leaders Learn-Do-Teach through participation in Leadership Models on-the -floor/work area activities, roll-down training and day-to-day coaching. 1. Why Stretching Objectives is important for you? ---- Create innovation for delivering more excellent business results which will be really integrated to Zero Loss. 3. You will be able to learn real hand on work at the Leadership Models line. Without this skill capability building for you, it is impossible to deploy your teaching to your people. This is really important message to you. You have to book your Leadership Model line activities time in your daily schedule. This is activity is number one priority for you and never postpone /cancel your activities at the Modell line in your mind, please.

Support the RTD BU with World Class performance and innovation Vision Support the RTD BU with World Class performance and innovation Network: Provide service flexibility while producing high quality products at the lowest cost Facility: Continue to develop our safety culture through 100% engagement Build employee capability and opportunity to achieve highest quality and lowest cost

Mission Everyone, every day, the best way Full Engagement Working together Shared goals Small Improvements everyday Working to eliminate all losses Constant review of current processes Learn and apply from others Identifying best practices - plant and network Standard work

Compelling Business Need Beverage RTD Network 2 Double Volume Growth 15 % Efficiency gains over 3 years to support growth Chain Links Network and employees Working together O Zero Loss Thinking Safety / Costs Mission

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