End to End Process Control for Total Operational Excellence Total Operational Excellence Conference 2012 Lis Mannes Friday August 24 th 2012

AGENDA Food for Thought Aligning the operational strategy to business strategy – Organise to win – Multi Site Engagement Creating Sustainable Operational Advantage

Food For Thought

Australian Landscape 16 Manufacturing Sites in Australia (Further 3 in NZ)

Tip Top Australia Distribution Network Tip Top has one of the most extensive distribution networks in Australia, delivering fresh bread daily across the whole of Australia Number of daily serviced customer drops 18,000 Furthest Customer serviced daily within a State 2,500 kms one way daily – Brisbane to Woolworths Weipa North Qld Number of loaves of bread picked & delivered per week 8 million Kms travelled per week by bread trucks c 850,000 kms Number of Depots Nationally 102 Longest Feeder Trip into depot Brisbane to Townsville 2,880 klms return trip, 6 days PW

Alignment of Operational Strategy to Business Strategy

At The Table Engagement Education – More than just capital investment – Not just about cost reduction Delivering on the consumer promise Long term sustainability

Alignment of Operational Strategy to Business Strategy EXPLICIT

Alignment of Operational Strategy to Business Strategy IMPLICIT

Fuel for Growth Asset Care Social and Ethical requirements Legal & Regulatory compliance Risk Management Alignment of functional areas Production, Engineering, Supply Chain, Procurement, Quality, Safety Alignment of Regions with the Centre

Plan On a Page Keeping it Simple & Transparent Direct Cascaded Link Appropriate Best Practice linked Clarity of KPI Measures Collaborative Development

Organise to Win Building Field & Central Alignment

InitiativeDetails Estimated Saving % Project Completion Strategic Initiative : Building Capability XXX $% Strategic Initiative : Supply Chain Development $% $% Strategic Initiative: Quality Assured Every Day Delivering on Consumer promise through process control Trusted Product delivery Systems alignment Process waste reduction to external bench $ % Total $ Inflation$ Strategy Realisation Schedule Leadership, Alignment & Systems based Project Based Analysis & Delivery

Multi Site Deployment

Creating Operational Advantage Through an umbrella process delivery framework

What does good look like? Site A Site B Site C

Multi Site Challenges Many dependent processes and systems to align Sites move at different paces, different history, capabilities and challenges Resources often limited and have to be deployed selectively Q How do we objectively understand where our sites are? How do we harness achieve best practice transfer between locations? How do people understand the end game and what good looks like?

So How Do You Express the Journey? One option is to redevelop every year Year 4 POP Year 3 POP Year 2 POP Year 1 POP  Great for capturing new project based activities  Ensures alignment with a changing business strategy  More challenging for process deployment and best practice implementation  Team can’t see where they are going

Creating Clarity & Transparency Identifying what good looks like!  Needed an additional frame of reference  Individual journeys for each key process & metrics of achievement  Collaboration around Creation – Team development Asset Care Best Practice Lean Manufacturing Tool Deployment

Maturity Curves - Spider / Radar diagrams Becoming increasingly common Visual and easy to understand

Compare and Track Compare Several Sites

Our Alignment Model Cascade from Board to Shop Floor Simplicity Collaboration & Transparency Functions Regions to Centre Frameworks for In Year & The Journey Strategy realisation

Q & A