1. Nestlé Waters –AOA Best of the Best Awards – 2014
Dammam Factory / Reduce NQC of PET line through reduction in packaging materials losses by 66%
1. Scale of impact
Problem Statement:
PET Factory Non-Quality Cost related to packaging materials ( Preforms,Cartons,labels,& Shrink film ) is an issue highlighted as it the main contributor of factory NQC through Key
Priorities & Drivers of OMP 2014-2016 , & KPI’s of MOR Review and reaching to 0.39 % (PET NQC/PET COP) by end of March 2014.
Reduction Quantified:
Net Target Reduction was set in define phase to 27.5% while the actual reduction was exceeded to 45% during control phase and reaching to 66% net reduction after that with
0.13% by (PET NQC/PET COP) by end of Feb 2015.
Relevant to business:
The project scope was included all types of packaging materials ( Preforms,Cartons,labels,& Shrink film ) and covered
the whole production cycle starting from bottle blowing up till the end ( i.e. finished product dispatched to the warehouse ) .
Linked KPI’s:
1. Total captured and approved OpEx value was KCHF 19.4 during 11 months .
2. Increase Asset intensity of the line on 1.5 SKU by 28% & 21% on 0.6 SKU .
3. Environmental impact by 29% reduction in total PET packaging materials waste for recycling.
4. Ensure sustaining Zero customers complaints on the quality of finished good products .
2. Effective use of NCE and problem solving methodologies
 Project used the NCE problems solving methodologies effectively and efficiently as the project scope was covered one production line to be aligned with green belt level ,team efforts
lead the project to be on time in full “ OTIF “ without any delays and to be completed in one month in advance with overall project tollgate score of 98% (Excellent !! ) .
 The project has a lot of impacts regarding creating new API’s to be included in SHO & SOR operations
reviews with new SOP’s to ensure sustaining & preventing issues related to the project as below :
1. New API’s for checking the incoming materials .
2. Standards routines to ensure that standards are met and managed well .
3. SHO & SOR reviews to monitor standards and parameters related to material losses.
4. DOR & WOR reviews to monitor the results of the project in higher level .
SOR SHO

2. Nestlé Waters –AOA Best of the Best Awards – 2014
Dammam Factory / Reduce NQC of PET line through reduction in packaging materials losses by 66%
3. Team work
Involvement:
Cross functional team were assigned to this project from different division including :Maintenance,
Finance,Production,Qaulity ,Safety & Store and they were distributed from top management level to
shop floor level . In addition, special participation was also shared in the project from external
suppliers of raw materials . Focusing on the principle of empowering the team to ensure that all are
engaged were taken in our consideration .
Contributions:
Everyone of the team has an impact to the project as shown below :
1. Gemba was done by the team
2. Brain storming & writing and open discussions were done .
3. Actions were agreed by everyone
4. All solutions & validations were done by the team
4. Sustainability
Results:
 Target is over achieved by reaching to 0.13% ( i.e. 66% reduction in measure )by the end of Feb 2015 as shown on
the right since the project was signed -off on July 28 , 2014 and till l Mar 19, 2015 the result was sustained without
any single day none achievement. In all reviews, we tagged our measures with yellow badge represent that as
sustaining measures and proving the sustainability and best practices results .
 The main contributors of the achievements were coming from:
78% reduction on rejected Cartons losses ; 39% reduction on rejected Preforms losses ; 82% reduction on
rejected Labels losses ; 95% reduction on rejected shrink film losses .
Control action:
1. Activities were managed and standardized through SOP’s, checklists, API measure and OPL’s.
2. Modification was also done in Baumer machine “Cartons packaging m/c “ to reduce material losses. (Kaizen)
3. QC inspection was strengthened for incoming materials.
4. A dialogue and commitment were made with suppliers.
5. Warehouse system and handling were improved to sustain the results.
6. Engagement and involvement were also a key factors from the shop floor which resulted a self disciplined manner of
doing things with initiative and heart of NCE.
Maintaining
measure
Checklists HandlingSOP & OPLKaizen
Self discipline
With supplierUnderstanding GEMBA BrainwrittingImplementing Validating
Handover

3. Nestlé Waters –AOA Best of the Best Awards – 2014
Dammam Factory / Reduce NQC of PET line through reduction in packaging materials losses by 66%
5. Creativity
 Part of the project was a quick win through GSTD and surprising that the involved material was
the SHRINK FILM and contributing the highest in terms of NQC losses. The actions that control the
issue in the GSTD were just a simple & quick by adjusting the parameters of the machine to
optimizing the material usage left over on the core & convincing material supplier to count only net
weight of roll in cost and excluding the weight of the core.
 Using Kaizen in modifying carton machine suction arm design from 2 to 3 arms which result to
reduce the carton losses.
 Another creativity way in implementing of solutions was having a dialogue with suppliers for
quality alignment, standardization, communications and commitments .
TEAM LEADER: EHA PARTICIPANTS: Danilo, Francis AREA/LINE: LINE D PET 4004 DATE: Feb 12 2014
Who When Status
Francis 11-Feb-14 done
Fenix machine
Shrink reel control
shrink film rolls
Reel 1& 2
Left over after each roll used
WHAT
HOW
WHICH WHO
Indicator Impacted (Success Criteria):
No helper
unoptimized film control anatomy
Write Y for Yes, N for No on the Tick Box
Draw/Sketch the Flow/Machine/Process
Reels not functioning
Savings thru optimization of shrink film usage
WHERE Fenix machine
No cleaning
Check Points What is the Action?
Focus on the Problem
WHEN 11-Feb-14
THINK
Analyze Possible Root Causes and Verify Root Cause/s
Unoptimized shrink film usage increase the consumption rate of shrink film last Feb 11, 2014 at Fenix
Machine area operated by Francis Dulay
High consumption of Shrink film
unoptimized shrink film usage.
Untrained m achine
operator
No SOP
Poor quallity of film.
Francis Dulay
GO-SEE
Describe the Problem (Prob lem identified from FI Project selection process, operations reviews )
high consumption of shrink film
Check Conditions, Standards and Procedures
Adjust parameter.
If the answer is No, write down Action, Who, When, Status
Are equipment and materials in
specification?
ProcessFlow
InformationFlow
MaterialFlow
Do people know the standard and are
they trained?
Do we have a standard?
unoptimized shrink film usage.
Do we have corrective (temporary fix)
and containment actions?
Is the standard clear and available?
CAUSE-EFFECT ANALYSIS
Possible Causes Effect
Material
Machine
Man
Methods
Y
Y
Y
Problem Statement
Y
Y
For full GSTD check I-Nexus ID : 121,955
Kaizen Commitments
GSTD- quick win
6. Customer or process satisfaction
Testimonial
“ After the project, PET NQC continuously improved day by day , as far as I recalled what I have said at the start of the project about environmental impact,
I am confident and proud of successful achievement of the team by making a high reduction in material wastes and truly reduced cost of production on positively
contribution at financial impact .For non-financial impact, the team gained a great knowledge and understanding on the methodology of DMAIC and enhanced the
engagement level between members as one team work . In addition, foundation was strengthened and developed ensuring that we can do more challenges
and more better achievements in future toward our NCE Journey . “
“After reducing the losses in packaging materials; we were able to reduce the running hours which were affected by material losses. Asset intensity was improved
and get better as we continuously improved the line and eliminating material waste to align with Nestle vision of 85% AI .”
“It helped our team to solve problems from the beginning to end while producing bottom line results . It also allowed us to quantify improvements and find answers
to complex problems leading to waste reduction and elimination of quality lapses.”
“After the project, changes did happened in the production. Material losses were minimized and converted to finished goods, stoppages related to
material rejections were also lessened, and most important was that engagement of people were enhanced, They begun feeling the sense of ownership
as they continuously strive for better results in eliminating waste, and lastly people were able to develop their skills in problem solving tools . “
“The project target was over achieved and it was an excellent opportunity and first time involvement in DMAIC which enhanced our problem solving skills,
on the other side financially, the benefit of this project was reflected actually and approved in I-nexus .“
Factory manager
Project sponsor
Process Owner
Quality Team
Production Team
Financial Controller