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FROM LOSS TO PROFITBY ENGAGING OUREMPLOYEES

Nestle Clayville Factory, South Africa

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Belville.ppt

MosselBay.ppt

EastLondon.ppt

Estcourt.ppt

Harrismith.ppt

Isando.ppt

Clayville.ppt

Doornkloof.ppt

Babelegi.ppt

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FACTORY HISTORYFACTORY HISTORYFACTORY HISTORYFACTORY HISTORY

Nestle Clayville Factory, South Africa

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Nestle Clayville Factory, South Africa

The DairyMaid plant was built in Clayville Industrial area

during 1982.

During 1992, Nestl purchased 50% of the DairyMaid

company and a joint venture, Nestl - DairyMaid was

established.

In April 2002, Nestl secured the remaining 50% and the

company Nestl Ice Cream was formed.

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WHERE HAVE WE COMEWHERE HAVE WE COME

FROMFROM

WHERE HAVE WE COMEWHERE HAVE WE COME

FROMFROM

Nestle Clayville Factory, South Africa

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BUSINESS EVOLUTION

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Volume 29,967 32,060 39,714 46,969 44,813 44,507 47,433 51,434 53,761 47,484

Turnover 165,484 190,647 260,269 306,313 296,246 313,241 337,771 381,628 412,245 401,678

RIG % 14.4 -7.4 -1.4 4.0 4.0 3.8 -3.1

EBITA % -3.2 -2.4 -1.1 4.0 -3.3 -2.3 -0.1 -2.2 -0.7 -7.5

-

10,000

20,000

30,000

40,000

50,000

60,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Volumes

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

NPS

Volume Turnover

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KEY FACTORY ISSUES

High fixed costs

High factory losses

Lack of motivation job security

People skills, attitude and mindset problem

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WHAT HAS BEEN DONEWHAT HAS BEEN DONEWHAT HAS BEEN DONEWHAT HAS BEEN DONE

Nestle Clayville Factory, South Africa

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WHAT HAVE WE DONE

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WHAT HAVE WE DONE

Remove potential source of employees

discontent orgrievances at their workplace

Corrected the organisation structure and HR systems correct

grading, internal drive on vacancies, policy alignment Improve work environment

Improve the facility for Level 1 and 2

Proper MDWT facility

Better visibility charts

Engage CDI to facilitate MDWT

Monthly Coaching Reviews and MLM

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RESULTSRESULTSRESULTSRESULTS

Nestle Clayville Factory, South Africa

2007 RESULTS

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2007 RESULTS

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Volume 29,967 32,060 39,714 46,969 44,813 44,507 47,433 51,434 53,761 47,484 44,072 45,603

Turnover 165,484 190,647 260,269 306,313 296,246 313,241 337,771 381,628 412,245 401,678 418,503 469,779

RIG % 14.4 -7.4 -1.4 4.0 4.0 3.8 -3.1 1.2 3.9

EBITA % -3.2 -2.4 -1.1 4.0 -3.3 -2.3 -0.1 -2.2 -0.7 -7.5 0.3 3.7

NPS

-

10,000

20,000

30,000

40,000

50,000

60,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Volumes

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Volume Turnover

SIGNIFICANT IMPROVEMENTS

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SIGNIFICANT IMPROVEMENTS

Effective Communication among our people

Skill upliftment

Engagement of workers in their workplace through MDWT

Better teamwork

Change of mindset

Sense of belonging

Employees take pride in the work they do

Purpose in their work

Improved performance of the factory

Improvement in trust and respect

N tl Cl ill F t S th Af i

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FACTORYFACTORY

PERFORMANCE 2007PERFORMANCE 2007

FACTORYFACTORY

PERFORMANCE 2007PERFORMANCE 2007

Nestle Clayville Factory, South Africa

Improvement in Quality

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Improvement in Quality

97.7

98.6

99.5

99.8

97

97.3

97.6

97.9

98.2

98.5

98.8

99.1

99.499.7

100

FTQ Final Release

Quality

2006 2007

%

Improvement in Speed

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Improvement in Speed

86

91

82

89

80

8182

83

84

85

86

87

88

89

90

91

92

Line Efficiency Process Line Performance Process

SPEED

2006 2007

%

Improvement in Speed

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Improvement in Speed

75.8 75

79

61.7

67

71

76.3

80

84

55

57

5961

63

6567

6971

7375

77

7981

8385

Line Efficiency F&P Line Performance F&P MSA

SPEED

2005 2006 2007

%

Improvement in Cost

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Improvement in Cost

-11.79

-5.79

2.15

-12

-10

-8

-6

-4

-2

0

2

4

2005 2006 2007

COST

Factory Controllable Variance

R Mio

Improvement in People

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Improvement in People

96

97.4

95

95.5

96

96.5

97

97.5

2006 2007

Attendance

%

Improvement in People

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Improvement in People

7.7

2.2

0

1

2

3

4

5

6

7

8

2006 2007

LTFR

ppm

Nestle Clayville Factory, South Africa

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MDWT IN CLAYVILLEMDWT IN CLAYVILLEMDWT IN CLAYVILLEMDWT IN CLAYVILLE

Nestle Clayville Factory, South Africa

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Nestle Clayville Factory, South Africa

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PROBLEM SOLVINGPROBLEM SOLVING

WORKSHOPWORKSHOP

PROBLEM SOLVINGPROBLEM SOLVING

WORKSHOPWORKSHOP

y y,

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LESSONS LEARNT TO ENSURE SUCCESS

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Perseverance

Quality of implementation having proper facility

Monthly Coaching Review challenging the team

Monthly MLM review recognising the team

Involvement of Coaches and Sponsors

Special recognition

WHAT HAVE I LEARNT FROM THE PROCESS - TEAM LEADERS

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Line issues surface freely and are acted upon by the team in

a very proactive and cooperative manner

Team members gain better understanding of company goalsand values

Since team goals are aligned with company and factory

goals, collaborative efforts move in one direction which brings

better results, not only in quality and quantity but also in

speed of execution.

Culture of results orientation is enhanced at all levels in the

organization

WHAT HAVE I LEARNT FROM THE PROCESS - COACH

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Modules Implemented: Goal Alignment & 5S

Involvement with the Teams & using the tools in Goal

Alignment & 5S has boosted the Team confidence in

addressing & solving issues.

Better understanding of targets & expected outputs of the

individual teams. Better alignment between Team Goals and the Business

Goals (Factory KPIs)

Driving Continuous Improvement by taking ownership &

responsibility of the processes.

VIDEO

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Mr. Frits Van Dijks Visit

Mr. Ian Donalds Message

Clayville Choir

SUSTAINABILITY

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Ice Cream Rules of the Game

Never let an ice cream businessNever let an ice cream business

"cruise""cruise"

... it is like driving a car uphill:if you ease your foot off the

accelerator, the car goes

backwards!

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