Presentation delivered to lean Business Systems Conference 22 Feb 2012

1. Lean Business Conference
21 February 2012

2. Where did I start

3. Why Lean?

4. Challenges
• Vertically integrated supply chain
• Cultural Change

5. Very strong history of volume growth
FG Kg Produced Choc Volume KG
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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

8. Feb 09
Results
Quality Circle
Accountability Financial Labour
Level
Dash
CCP Culture
Board
Measure
Change Work Morale
/monitor
Control Orders
Batch Cards
Training Technical Standard Scheduling Safety Environment
Excellence Processes
Matrix KS SOP/WI/Cleaning SD/BS Meeting TS/SW
John Moore – BK/SW/PM
Rob, Ben -maintenance Ph II SW/PM/JS/SM HAMMER – ALL
Kitchen – SD/BK
CAPEX -BK

9. 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

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

11. Visual Management Boards
Enrober Team
• Visual Management
is a tool Safety RIR – 1.1
• It is an attempt to
Quality 94 %
provide simple
feedback to the Training 75 % Red
Jack
O
L
O
U
Hamish I O
manufacturing
team to measure Demand
performance
Production 107 %

12. Factory Cleaning Graph
Factory cleaning compliance
100%
95%
90%
85%
80%
75%
70%

13. Quality Compliance Graph
Factory QA Compliance
% Compliance per Qty of product made each month
99.9
99.7
% Compliance
99.5
99.3
99.1
98.9
98.7
98.5
Nov Dec JAN FEB MAR APR MAY JUN JUL AUG SEP OCT

14. Challenges
• Benefits of improved efficiency without
losing the hand crafted appeal
• Seasonality
Units Sold per Week
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
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 51
Shippers Dispatched

16. Seasonality
% Products Delivered In Full
101.0%
99.0%
97.0%
95.0%
93.0%
91.0%
89.0%
87.0%
85.0%
9/07/2006 9/07/2007 9/07/2008 9/07/2009 9/07/2010 9/07/2011
Series1 15 per. Mov. Avg. (Series1) Linear (Series1)

17. YEJ 2011 Top 50 Lines
DEMAND REPORT 2010/2011 - % DELIVERED
100%
647
618 Murray
18 & 38 Speckles Cod
95% 340 & 341
Truffle Boxes
Rocky Road
364
Caramel Chocs
90%
% Delivered
YTD
85%
366
Maltichocs
80%
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 51

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

19. Carle
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 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 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
Yes
1/2/2009
1/2/2009
Peter
Peter
Moulded
Elmo
Elmo
Yes
Yes
1/2/2009
1/2/2009
Peter
Peter
Elmo
Elmo
Yes 1/2/2009 Peter
Chocolate
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
Moulding Yes 1/2/2009 Peter Elmo
Yes 1/2/2009 Peter Elmo
Bindler
Room Yes 1/2/2009 Peter Elmo Yes
Yes
1/2/2009
1/2/2009
Peter
Peter
Elmo
Elmo
Yes 1/2/2009 Peter Elmo

20. Carle
Moulded
Moulded
Chocolate
Chocolate
Moulding
Bindler
Room

21. MANUFACTURING TRAINING BY
FORTNIGHT
800
795 794
790
790
787
786
785
785 784
780 779
775 774
770
767
765
760
755
750
1 2 3 4 5 6 7 8 9

22. FORTNIGHTLY POINTS LOSS / GAIN
35
30
25
20
Level 5 / Perm Rest
15
10
5
0
-5
-10
-15
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 -11 -12 -7

23. Visual Management Boards
Enrober Team
• This provides a Key
Performance Safety RIR – 1.1
Indicator to both
the manufacturing Quality 94 %
team and
Training 75 % Red
Jack
O
L
O
U
Management teams Hamish I O
Demand
Production 107 %

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