The document discusses performance visibility and loss improvements in manufacturing plants. It proposes establishing common metrics and definitions, benchmarking plants by technology, and using a plant performance index system. Loss analysis would define major loss opportunities through loss trees and maps. The ideal state is described as having zero recoverable losses. Specific plant examples show largest loss areas like overfills and mix tank losses, with estimated savings from improvements. Key takeaways include choosing the right benchmarking approach, focusing on data planning and prediction, and integrating data to standardize performance evaluation and focus on loss reductions.

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October 14 - 16
Performance Visibility of Plants
Drives Improvements to Zero Loss
Enterprise SC Leaders
2019 Fall Peer Forum

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Ivan Broodryk
Vice President Supply Chain MPDQ
Global Institutional Sector and NA
Blend / Equipment Plants

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Performance Visibility of Plants
Drives Improvements to Zero Loss
▪ A highly experienced, enthusiastic, creative, well-adaptive executive with good strategic &
analytical thinking ability. Proven effective leader skilled in development and oversight of
high-performing, multi-disciplined, multicultural and quality-oriented teams, who has
demonstrated this in a variety of highly competitive industries and fast-paced
environments.
▪ I have a personal philosophy of "passion for excellence". For me, finding ways to increase
business and operational efficiency is more than just fulfilling my role. It's a personal
challenge that I enjoy. I gain immense satisfaction out of learning new tools, and
techniques for improving work processes and standards, then sharing them with others and
watching the benefits. I believe that there is always opportunities to do things better, and
that it's my duty to find a way to make it happen.
▪ 16, October 2019, at 11:15 a.m.
▪ Ivan Broodryk, Vice President Supply Chain, MPDQ Global
Institutional Sector and NA Blend / Equipment Plants
▪ Ecolab

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Performance
Visibility of Plants
Drives Improvements
to Zero Loss

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Agenda
▪ Key Challenges
▪ How do we set goals & align
▪ How do we look at performance & loss
▪ How do we do loss deployment
▪ Loss Analysis / Improvement examples

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Our Supply Chain vision
“actively contribute to
profitable growth for the
company by becoming an
execution powerhouse”
How do we contribute?
What do we execute?
What’s the Ideal State?

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Key Challenges
1. Common Metrics & Definitions
2. Performance System Planning
3. Data Analytics vs Prediction
4. Progression / Depth of Evaluation needed
▪ Level 1 Global
▪ Level 2 Regions
▪ Level 3 Plant[s]
▪ Level 4 Technology / Product Platform
▪ Level 5 Materials / Machines / Operators
5. Loss Analysis & Deployment

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Best Practice
ORGANIZATIONS THAT TAKE A
BROAD STRATEGIC APPROACH
INSTEAD OF MAKING
IMPROVEMENTS IN BITS AND
PIECES

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Our Performance Control System
Yearly
Quarterly
Monthly
Weekly
Daily
Shift
Forecast Plan Execute Report
Activities
Process
Control
Out Put
Figures
KPI
Report
Out Put
Figures
KPI
Report
Out Put
Figures
KPI
Report
Out Put
Figures
KPI
Report
Out Put
Figures
KPI
Report
OGSM
Reviews
Functional /
WOM
Reviews
Sector
Reviews
Annual
Reviews
DOM
Reviews
Budget /
Activities
Action
Plan
Action
Plan
Action
Plan
Forecast
Vision
Production
Plan
Action
Plan
Production
Plan
Production
Plan

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OGSM Objectives-Goals-Strategies-Measures
▪ Why we use OGSM?
– Identify strategic priorities
– Capture market opportunities
– Optimize resources
– Enhance speed and execution
– Align team members
▪ Global Alignment to Personal
Development
▪ Standardized Performance
Measurement

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Global Metrics
Move from Lagging to Leading Indicators

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BUT… DATA DOESN’T
SPEAK, IT RESPONDS to
QUESTIONS ...
CHOOSE YOUR PATH
WISELY
…….it starts from understanding what you may want
from the data; what it is that you want to drive from
the data.

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Plant Quality Performance – balance differences in
technology, plant size, etc by using an Index/Point system
At the highest level a Index is utilized to compare / standardize plant performance & ranking.
An Index is usually a multi-item measure that assesses key dimensions of operational and service vs Best-Practice.
NOTES:
Facilities might be „green“ to goal but „red“ to best practise
Index is an automated calculated score based on key results achieved compared to industry world-class performance indicators.
Plant Points
A 95.6
B 94.2
C 88.8
D.. 85.0
Level PPM Points
1 <10 25
2 <50 20
3 <100 15
4 <200 10
5 <400 5
6 >400 0
Example on Customer Rejects
[PPM Part-Per-Million]
Multi-Level Point System
• Customer Rejects
• Internal Rejects
• BOM Compliance
• Supplier Performance
• CAPA Management

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Technology Platform Metrics and KPIs to improve
manufacturing effectiveness, quality, and process
capability
More in-depth capability
measurement require more
involvement from cross-functional
teams
Real-time information in operations
and per-unit costs, our teams will
be able to implement short-interval
controls, make real-time
adjustments and measure
immediate performance
improvements in $ value.

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Benchmarking Plant -> Platform
Ensure you have the necessary available dashboards at each organizational level / stage –
depending upon complexity – to enable the organization to understand the losses – and engage on
loss improvement initiatives.

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Defining the Loss Opportunities
+
In-depth loss analysis and deployment needed to
ensure focused improvements
Assign Resources on loss improvement

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Ideal State challenges loss
paradigms. More breakthrough
ideas.
Loss Trees categorize losses in
standard buckets.
Loss Definition Maps ensure
standard monetization of losses
Engage broader/deeper levels of the
organization in loss identification and
loss elimination
“What needs to be true”
”thinking paradigm”

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The state where there are 0 recoverable losses or losses
are at industry benchmark levels.
May be described through KPI’s or inspirational
descriptions.
Keep in mind:
It is important to deploy a single definition of Ideal State. By
doing so, we will all be measuring our losses against a
common standard.
A stretching definition of Ideal State will also help people
rethink their paradigms of what they believe is achievable.
Thus, it is more important that the Ideal state definition is
standard and stretching, rather than “technically perfect”.
THE IDEAL STATE

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Loss Improvements
Key Identified Loss Ideas - ‘Biggest Bang for the Buck’
Work Center Plant Top Loss Ideas
$M
Benefit
(Ideal State)
Platform #1 Plant 1
•Overfills (9%; $250K-$300K)​
•Mix Tank Losses (RM Charging, Wall Build-
up,Washouts; $450K)​
$1.50​
Platform #1 Plant 2
•Overfill (13%; $400K)​
•Grinder (Salvage Re-use)​
•Mix Tank Losses​
$1.08​
Platform #2 Plant 3
•Start-up and Shutdown losses
•Reformulation​
$0.77​
Platform #2 Plant 4
• CC Losses
• Start-up/Shutdown losses
$0.65​
Platform #4 Plant 1
•Incoming Raw Materials​
•Transfer Line Losses
$.50​
Platform #4 Plant 1
•Start-up Losses
•Mixing: RMMis-Charge.​
$.19​
Platform #5
•Inventory Loss
•CC write-offs​
$1.1​
Potential Size Of The Prize
($M)
$M Benefit
Total Losses Recoverable Losses
$10 $5
Loss Analysis starts with understanding
the current state
Example of a sub-group of plants

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Loss Improvements
▪ Minimise overfill / giveaway in all FG pack type
Key Strategic Benefits
▪ Savings $250Kpa from initial roll out.
▪ Further savings of $250k pa when rolled
out to all plants

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Loss Improvements
▪ Reduce washout losses by optimizing transfer equipment and minimizing plant
washouts
Key Strategic Benefits
 Combined savings of $600Kpa from initial mixers.
Further savings of $800k pa when rolled out to all
plants
 Reduction in washout will increase OEE of mixing
vessels which has not been considered in the
savings calculations.
 Environmental; reduced environmental impact from
chemical disposal

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Key Takeaways
1. Choosing the right approach to
benchmarking is of critical importance to
getting results.
2. Look at different approaches for standardize
performance evaluation e.g. Group plants
into technology groups
3. More focus on data planning and linkage to
depth of visibility needed. Prediction is the
future: … Imagine the power of using data to
predict the outcome of the shift / product you
are about to run …
4. Focus on the loss and improve.
Integrate & Aggregate
Data integration and
aggregation brings
our data together in
an organized way,
building a strong
basis for analytics
and data
standardization

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Thank you