what do you need to improve - tracc value chain ... do you need to improve ... and be transformed...

OPERATIONS BEST PRACTICES

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BE S T- I N - C L A S S O P E R AT I O N S P R AC T I C E S i n p r o c e s s m a n u f a c t u r i n g d e l i ve r 9 7 % o n - t i m e d e l i ve r y ; 8 9 % ove r a l l e q u i p m e n t e f f e c t i ve -n e s s ; a n d 9 7 % r a w m a te r i a l u t i l i s a t i o n . I n f a c t, yo u c a n e x p e c t to u n c ove r u p to 2 0 % o f n e w l y a va i l a b l e c a p a c i t y f r o m t h e ‘ h i d d e n f a c to r y ’.

WHAT DO YOU NEED TO

IMPROVETO ENSURE BEST-IN-CLASS

MANUFACTURING

& PROCESSING?

www.traccsolution.com

Practices drive performance

In today’s competitive landscape, it is imperative that your

organisation learns to focus its efforts on BEST PRACTICES in a

way that sustains continuous improvement to meet the market

requirements. To do this, you need to address the deep question of

HOW WORK IS DONE by every single person, at every single workplace,

in every part of your business. And you need a business performance

improvement system to manage the improvement process.

We believe that by improving everything and enabling everyone, your

organisation will deliver sustainable world class results across its end-

to-end value chain, and be transformed into the ultimate source of

competitive advantage. If best practice is not embedded through an

improvement system, the step-change transformation opportunity is

lost and, over time, people in your organisation will slip back into their

old habits.

Most organisations in the food & beverage, chemical, FMCG and

pharmaceutical industries have been doing the good work of

continuous improvement in manufacturing and processing for years.

But typically, organisations take a project-based approach to this

work, resulting in sharp, short-term results. The real need is to build

capability across the entire organisation to sustain the results, and

to ensure consistent best practice standards and improvements are

implemented across global operations.

“SABMiller has enjoyed a 25-year journey with TRACC — capturing what works and tackling challenges together. The TRACC team is a great partner and sounding board, always bringing new knowledge and ideas into our organisation, helping us to test out new thinking.”

— Ed Koch, Head of Manufacturing Development, SABMiller

ONESOLUTION TO ACHIEVE YOUR IMPROVEMENT STRATEGY

Can’t go the distance

Contenders

Promising

Back of the pack

Stragglers

World ClassY

Perfo

rman

ce

Practice1 2 3 4 X5

We have spent the last 30 years helping organisations build

competitive capability in their manufacturing and processing

functions with the TRACC Operations Best Practices and our expert facilitation support in more than 2 000 operations,

across 70 countries and in multiple languages.

[email protected] |2| www.traccsolution.com [email protected] |3| www.traccsolution.com

mailto:info%40traccsolution.com?subject=

http://www.traccsolution.com



Stage1

Stage 2

Stage 3

Stage 5

Stage 2

Transformation

Leading and Managing Change

Employee Engagement

Skills Development

Functional system improvementinitiatives via codified standardsAsset Care

HR Systems

Integrated Business Planning

Process FrameworksISO 9000

ISO 14000

Standard Work

TPMLean

Six Sigma

Expert Supported Projects

Organisational Design

Traditional Continuous Improvement

Structurebias

Executivebias

Impl

emen

tatio

n ve

rsus

Syst

ems/P

roce

ss p

redi

spos

ition

Project-based (Micro) change Broad Transformation (Mindsets and Behaviours)

INTEGRATIVE IMPROVEMENT SYSTEM

INTEGRATIVE IMPROVEMENT

Integrative Improvement is a comprehensive

business performance improvement approach

supported by a three-pronged philosophy

comprising the following: the arrangement of

an organisation around end-to-end processes

that serve customer segments rather than

functions; the involvement of all employees

in improving all processes and systems; and

committed leadership that actively creates

the mindset and behaviours within the

organisation to support these principles.

The ‘project-based approach’ to improvement

alone will only deliver incremental change,

and not the culture transformation needed

to create sustainable results and reach world

class. We believe the answer is ‘integrative

improvement’, which continuously integrates

WHY TRACC

We believe that sustainable competitive advantage hinges on 5 critical

success factors:

1To really win with the customer, you need more than a series of improvement projects. The required culture change can

only be realised by implementing an overarching business performance improvement system to drive the improvement

work in a way that will harmonise the interactions between your organisation’s people, processes and systems to better

serve your customers. This new system must deliver integrative improvement. WORLD

CLASS COMPETITIVENESS

people, processes and systems across functions, levels of work, and stages of best practice maturity into the transformation process.

Transforming organisations is a complex process. In our work over the last 30 years, we’ve seen, time and again, that the improvements

made by companies with armies of consultants and many disconnected improvement projects are simply not sustainable. They are

not externally focused enough and tend to result in one part of the operation being optimised while other parts fail to keep up.

The TRACC integrative improvement framework will help your organisation build standardised and integrated best practice and world class performance capacity across your manufacturing and processing functions. Simultaneously, it facilitates cross-functional collaboration to segment your customers and define your value streams, creating visibility to sense demand and build world class, end-to-end value chains to deliver to your demand requirements. TRACC aligns all your people to common SERVICE, COST and CASH metrics enabling the organisation itself to become the ultimate source of sustainable competitive advantage.


“Before we implemented TRACC, we were investing in the same improvement projects over and over again. TRACC’s standard improvement framework solved this problem for us.”

— Donald D. Wirth, Vice President — Global Operations, Corporate Supply Chains, DuPont (Retired)

Practices drive performanceOrganisations need codified best practices in increasing stages of maturity to

drive all functions and processes towards best-in-class practices and competitive

performance.





ES

LMC

TW 5S VM FI

EHS

AM AC STR QU AE

Improvement must be integrativeOrganisations must move beyond a ‘project-based’ approach and take an integrative approach to Continuous Improvement

(CI). Best practices must be integrated across functions to break down silos and improve people, processes and systems

simultaneously. An integrative improvement system is needed to transform the organisation across three dimensions:

1. Operating practices

2. Enabling systems — all its tiers, operational practices, enabling systems and governing principles using an integrated approach

across all functions where each new component of change becomes ‘The way we do work’.

3. People — an incremental sequence of improvements, with skills development delivering behavioural change that will transform the

organisation and its people. The implementation approach must develop the best practice maturity of the organisation incrementally.

Transformation to world class, while taking care of all three dimensions, ensures integration between practices and processes, fundamentally

changing HOW WORK IS DONE by every single person, at every single workplace, in every part of your business. This culture and work process

change ensures sustainable results over time.

WHY TRACC

Improvement must move beyond the factory walls To drive marketplace success, organisations need an unblinking focus on segmented customer needs, rather than on internal

functional metrics. One size does not fit all, but a common improvement framework is needed to drive improvement across

all of the core business processes — from enabling people to innovation, through to planning, sourcing, manufacturing and

delivery to customers. Creating reliability in delivery in manufacturing operations is the critical starting point. This is where TRACC enables

organisations to design and develop processes and build skills and competencies first. However, it cannot be the only place on which you focus

your improvement strategy. To create the capability for breakthrough results and build the collaboration between functions, TRACC ensures

that all your cross-functional leaders and teams are invested in the outcomes of customer segmentation and the network reconfiguration

needed to design demand-driven value networks. TRACC collaborative teams at various levels help to focus functions on rapid joint problem-

solving and on shared cost, cash and service goals. This cross-functional improvement process really starts taking effect during Stage 3 of the

best practice maturity journey. It is at the end of Stage 3 in TRACC that this breakthrough work happens. All functions collaborate to design

joint KPIs and design demand-driven value networks (DDVN) that dynamically sense and supply to demand for each customer segment.

Depending on which industry you play in, 55% to 85% of the improvement opportunity sits outside of the factory walls once this cross-

functional collaboration takes place at Stage 3.

Operating Practices and Tools

Enabling Systems

People

Inte

grate

Sust

aina

bilit

y

Transformation

1 2 3 4 5

more than just tools...

Sustainable implementation requires that the tools integrate

into an operating system and are bound by clear management

principles into a complete framework.

…an integrated approach…

Implementation cannot be done functionally. Each new component of change becomes “The way we do work.”

…incremental sequence of implementation…

Transformational, behavioural-based change requires an evolution of the organisation and its people.

The implementation approach must incrementally develop the

maturity of the organisation.

Typical Business Transformation Results between Stages 3-5:• 20%

improvement in Perfect Orders

• 10% reduction in Costs (COGS, Supply Chain, Admin)

• 33% reduction in inventory

• 30% improvement in Overall Equipment Effectiveness

AM Autonomous Maintenance AC Asset Care STR Set-up Time Reduction QU Quality

AE Administrative Excellence EHS Environmental Health and Safety 5S 5S TW Teamwork

VM Visual Management FI Focused Improvement LMC Leading and Managing Change ES Environmental Sustainability

KEY

Businesses ultimately compete through the operational capability of their supply chains. A business needs to understand its customer

segments and proactively build value chains that can uniquely service these customer segments. An integrative improvement system takes

the concept of a production system from manufacturing across the end-to-end supply chain and allows a company to improve functional

capability within the context of building value chains that service specific customer segments, improving collaboration across functions to

ultimately enable demand sensing and shaping capability.

2 3

Stage 1 Stage 2 Stage 3 Stage 4 Stage 5Silo Thinking Customer Alignment Extended Alignment Demand-drivenInternal Alignment

Fully integrated extended network

Extended, consolidated, aligned and

balanced

Differentiated value chain development; Multi-

functional process teams

Functional competency, project driven, early

segmentationSilos, conflicts, unfocused

Busin

ess P

erfo

rman

ceYear 1 Year 2 Year 4+ Year 5+

Building a culture of problem-solving and empowerment

People working across functions towards joint KPIs

Bette

r cus

tom

er ex

perie

nce

Incr

ease

d m

argin

s

Impr

oved

velo

city

Optim

ised a

sset

s

TRACC delivers sustainable continuous

improvement

TRACC delivers breakthough business

transformation

Transformation Zone 2 :

Collaborate and align with

functions across the supply chain

to build DDVN

Transformation Zone 1 :

Design and develop processes and build skills and

competencies to ensure reliability

in delivery

Tran

sfor

mat

ion

Zone

1

Tran

sfor

mat

ion

Zone

2






Build skills and a common language through workshops and eLearning

Self-assess to identify improvement opportunities

Plan and execute improvements according to an integrative, maturity-based road map with clearly defined improvement work packages

Share learning and rapidly evolve best practices

WHY TRACC

4 An engaged and enabled workforce is criticalOrganisations need to engage all of their people to

drive the improvement transformation under the guidance of

their internal improvement experts and a small team of external

advisors. The external consultants must be committed to building

internal capability and a culture of excellence that enables the

people in operations and the various functions to make the changes

themselves. The ultimate competitive advantage is the organisation

itself through the ongoing work of every single employee. It is

mission critical that the transformation process be owned and

driven internally.

TRACC challenges mindsets and behaviours through an inclusive

change management process, detailed guiding framework and

a training approach that is designed to be delivered by internal

TRACC-accredited trainers. This is supplemented by blended

eLearning materials, where appropriate, to provide cost-effective

skills development. One of the critical success factors is that TRACC

delivers change management and skills development workshops for

every stage. About 95% of the improvement work triggered through

using the TRACC Framework is action-based, with training making

up around 5% of the activities. TRACC provides workshop material

and training to develop skills just-in-time to various teams along

the way, designed on the 70:20:10 learning principle, with the real

learning happening through actually doing the improvement work.

This builds the capability needed for each step in the improvement

journey.

Enable your people with an integrative improvement

system that makes improvement a way of life.

Systemisation of improvement ensures sustainabilityTRACC is the only solution that provides an integrative

improvement online production system that delivers sustainable

business improvement results through best practice and work

process improvement. The system enables you to assess your best

practice and identify opportunities and losses; plan your step-by-

step performance improvement process; implement improvement

work bundles through the ‘How To’ implementation actions in

the system; track your progress and benchmark your operations;

manage your implementation plan against a proven improvement

methodology; and share best practice and build internal capability.

5

THE TRACC SYSTEM:• Aligns implementation activities with organisation maturity

• Focuses on developing people in all functional areas to own

and create process-based operational excellence

• Improves operating capabilities through process and policy

consistency

• Integrates continuous improvement processes and systems

(WCM, TPM, TQM, Lean, Six Sigma) into an integrative approach

TRACC SYSTEM COMPONENTS:TRACC Platform

The TRACC Integrative Improvement System provides a secure

online platform and application that enables you to assess your

organisation’s practice gaps, maps out the recommended sequence

of best practice and process improvement steps, and provides the

work packages to action these improvement steps.

TRACC Reader

The system includes an application for tablets (iPad and Android)

and Windows PCs that provides TRACC users with easy, mobile and

electronic access to the TRACC best practice steps, shared learning

and resources.

TRACC Training

The TRACC Platform includes training programmes and materials

designed to be customised and delivered by internal trainers. The

training methodology enables companies to be competitive by

unlocking the inherent capabilities of employees at all levels.

TRACC eLearning Cogs

The TRACC Solution provides online learning with overviews of each

best practice to ensure newcomers or latecomers to the process are

given the opportunity to accelerate their understanding of each

practice and work process improvement.

Businesses ultimately compete through the operational

capability of their supply chains. A business needs to

understand its customer segments and proactively build value

chains that can uniquely service these customer segments.

An integrative improvement system takes the concept of a

production system from manufacturing across the end-to-

end supply chain and allows a company to improve functional

capability within the context of building value chains that

service specific customer segments, improving collaboration

across functions to ultimately enable demand sensing and

shaping capability.

TRACC Training

TRACC Platform

TRACC Assessor

TRACC Reader

TRACC eLearning Cogs






How does TRACC

deliver to these critical

success factors

Building a truly world class organisation requires a defined

framework for improvement action which enables the

whole organisation, and which takes account of the specific

needs and maturity at each local workplace. This allows people to work

separately but simultaneously on improving the whole organisation.

Without such a framework, sustainable success is unlikely.

The TRACC Framework provides a road map that guides all operations

and functions towards best-in-class, no matter what stage of maturity

they are at.

1 2 3 4 5

BEST PRACTICE MATURITY STAGES

STATUS QUONO

BEST PRACTICE

STABILISATIONAND

AWARENESS

OWNERSHIP AND

IMPROVEMENT

REFINEMENT AND

TECHNOLOGY

WAY OF LIFE(WORLD CLASS)

A five-stage best practice maturity framework with assessment and

improvement work packages.

We have created a science of best practices — a five-stage maturity

framework which lays out the road map of codified best practice and

business process maturity across your entire manufacturing and

processing network. Firstly, TRACC is focused on creating capability

and empowerment to deliver reliability and productivity gains in

all your plants. By Stage 3, TRACC has delivered well-entrenched

ownership of improvement by all operational teams, enabling plant

leaders and teams to collaborate across the supply chain with their

colleagues in innovation, planning, sourcing and delivery to create a

fully integrated value network in Stages 4 and 5. This framework has

been designed to unlock continuous improvements in SERVICE, COST

and CASH across the end-to-end value chain.

EnableEVERYONE

across the value network

A series of projects, externally driven, no

matter how successful or how prolific, will never

build organisational capability to create

end-to-end value chains. That is why TRACC focuses on enabling people, while improving processes and systems simultaneously.

Is this true for your organisation?

“I have some really good status quo managers, but no one that really improves what we do.”

TRACC enables your leaders and their people to put the right amount of rigour, discipline and structure into place to improve your business.

We work with teams of managers, all good at keeping their functions running,

keeping the business on track, keeping costs down and managing their

personnel. These managers are traditionally charged with ‘doing the work’.

What makes the difference is that TRACC builds their capability to challenge

and change the status quo, and create a ‘shadow’ improvement structure. The

same structured cadence of meetings required at different tiers of the business

to manage the business is needed to improve the business. The improvement

‘shadow’ structure is focused on ‘improving the work’ and relies on integrated

data from the TRACC Platform to drive improvement in the business, and track

best practice maturity and KPI performance improvement to target.

ImproveEVERYTHING

“TRACC has a clear road map and plan to transform our plants in Mexico from good to great, giving us the methodology and foundations to be sustainable in the future in order to create a competitive advantage for Kellogg’s Latin America.”

— Fernando Teixeira, Supply Chain Director, Kellogg’s

“Our DPS System (powered by TRACC) has returned $2 billion to the business in the first two years.”

— Paul Mocniak, Program Manager, DuPont Production System, TRACC






EnableEVERYONE

across the value network

Organisations like SABMiller and DuPont have not just delivered on rapid results improvement projects; they have also had

the insight to realise that the same amount of rigour, discipline and structure required to manage a business is needed to drive

improvement.

They chose the TRACC Solution not only because of its Integrative Improvement System that provides improvement tracking

cadence, but also because it builds capability to sustain step-change improvement across their global operations.

OBJECTIVE OF MANAGEMENTDeliver sustainable business results

(shareholder value)

TASK 1Manage the business

TASK 2Improve the business

Usually there is a defined structure and governance

A formal process is needed to create the structure and governance

Metrics and Projects

Figure 1: The Objective of Management Teams

Organisations that perform well in sustaining business improvement and innovation have developed a rigorous approach

and improvement system to enable the ‘shadow’ structure to improve the business, as shown on the right side of the diagram

above. They have embedded TRACC’s improvement solution in the organisation to create:

• a rigour in identifying, applying and persevering with best practice

• empowerment and skills at all levels, to enable managers to lead improvement as a way of life

To enable this, TRACC delivers these key principles:

1. Involve everyone in improvement.

2. Empower teams to address issues and eliminate the root cause of problems.

3. Identify excellence, interrogate it and implement it in a standardised way.

4. Create a separate ‘shadow’ structure to improve the business.

5. Drive improvement in a structured, maturity-based manner to both systematise improvement and expand best

practices upon sound foundations.

All these points have clear logic, but it is especially with points 4 and 5 that businesses often battle to see the logic, as this is

counter-intuitive. Unless the existing management structure is duplicated to create the mental ‘headspace’ and dedication

where they can separate themselves from the daily grind, they will be pulled back to business-as-usual. TRACC’s approach

(see Figure 2) ensures a separate cadence of meetings, and separate indicators focusing on business practices and improvement

performance outcomes. It is supported by a system to evaluate, guide, capture and then share best practice.

TRACC’s implementation methodology drives business improvement in the ‘shadow’ structure below.

Executive Leadership Committee

Site Steering Commitee

Implementation Task Force

Team Leader Team Leader Team Leader Team Leader

Shift-basedTeam

Shift-basedTeam

Shift-basedTeam

Shift-basedTeam

Figure 2: The ‘shadow’ structure TRACC creates to focus efforts on continuously applying best practice and process improvements to suit the business needs

Setting up an improvement vision and strategy is executed at a strategic level by the Executive Leadership Committee; planning

the structured implementation of an improvement strategy is done at a systemic level by the Site Steering Committee; and

most of the improvement work is executed and owned at the situational level by the Implementation Task Force who guide,

train and help the team leaders and teams to drive best practice, to perform better and to apply their knowledge.

TRACC enables leaders to not just ‘manage’ the business and its people, but to lead people to continually improve service, cost

and cash in the business.

TRACC TrainingAt each stage of best practice maturity, people need new levels of skills to advance the improvement to the next stage,

building organisational capability as they grow. TRACC Training provides:

• Training-of-trainers development to teach internal trainers how to use the TRACC training programmes and materials

• Leadership and team leader development materials

• Team training workshop materials

• eLearning modules






TRANSACTINNOVATE

Procurement

SOURCE MAKE (OPERATIONS)

Teamwork Asset Care5S Set-up Time ReductionVisual Management QualityFocused Improvement Environmental

SustainabilityEnvironment, Health and Safety

Administrative Excellence

Autonomous Maintenance

DELIVER/RETURN

Warehouse ManagementTransportation Management*

PLAN

Demand PlanningSupply PlanningSales and Operations PlanningIntegrated Business Planning*

Portfolio and Lifecycle Management* Transactional Excellence

ENABLE

Value Chain AlignmentLeading and Managing ChangeHuman Capital

CUS

TOM

ER

SUPP

LIER

What is TRACCTRACC is a business performance improvement solution that delivers

sustainable organisational transformation to continuously improve

SERVICE, COST AND CASH across the end-to-end value chain.

TRACC builds Demand-driven Value Networks through an outside-in approach, from the customer’s customer back through to the

supplier’s supplier.

TRACC is focused on creating capability

and empowerment to deliver reliability and productivity gains in

all your plants.

THE TRACC VALUE CHAIN IMPROVEMENT SOLUTION

* Currently in Development






The TRACC Methodology

The TRACC methodology focuses on changing mindsets and behaviours to enable your own people to drive the change,

giving your organisation a truly competitive advantage with demonstrable financial impact. A special emphasis is placed

on leadership behaviours. The TRACC Platform provides the ‘How To’ for all the improvement work packages and the

necessary training materials for your organisation to train everyone just-in-time on the improvement journey. This will give them

the motivation and skills needed to drive improvement in their work area every day. To ensure ongoing success, our consultants,

or TRACC Trusted Advisors, assist with coaching and guiding the CoE Department and operational TRACC implementation teams

on their improvement journey.

On this journey to world class, the TRACC methodology focuses on three key drivers:

1. The first, and most important driver, is gaining leadership commitment at all levels, cascading from the top. Leadership

commitment starts with a true belief in the value of integrative improvement, as well as the persistence and discipline needed to

fully engage all employees in the effort, year after year. Leaders must also govern the improvement process to ensure employees

have the tools and skills to both identify and fix problems. This approach ensures that the improvement process is owned and

managed by operations and functional leaders.

2. The second driver is the competency development of these leaders and the internal support resources that are working within

the ‘shadow’ structure which TRACC creates to own and drive the improvement journey.

3. Operational TRACC implementation teams. These internal resources are supported by consultants who guide the journey,

but who are first and foremost there to transfer competency and enable teams to do the work required without armies of

consultants.

TRACC prepares the organisation to move towards achieving world class reliability at Stages 2 and 3. It builds the capability and

commitment required of your people to deliver breakthrough business transformation at Stages 4 and 5 to create:

• A better customer experience

• Increased margins

• Improved velocity

• Optimised assets

Every TRACC best practice is mapped across five stages of maturity and defined by themes which are the components of that best practice,

incrementally developing capability and work improvement.

Operational Performance Improvement Potential: Examples

World Class

Perfo

rman

ce

Practice Maturity

97%96%

95%

94%

1.6 33 years

World Class

Perfo

rman

ce

Practice Maturity

1.6 33 years

The TRACC Framework

Yield %

= Material loss due to

• Spillage

• Rejects

• Rework

• Oversupply

Overall Equipment Effectiveness (OEE)%

= Lost time due to

• Breakdowns

• Minor stops

• Lower speed

• Set-up / Changeover

• Rework

• Rejects

Margin Increase Potential %

• Less waste

• Less downtime

• Fewer breakdowns

• Lower overtime

• Less energy

• Less consumables

• Less water

• Less spares

• Less packaging

• Less maintenance, etc.

Capex Saving Potential %

• Release hidden capacity

8.9%9.9%

10.9%

11.8%

12.5%

20%

28.6%

50%

80%75%

70%

60%






Successfully developing a solid foundation of reliability in all of the functional areas will take your organisation through to Stage 2

with major improvements in reliability, productivity, engagement and morale. TRACC consultants are there to guide your TRACC

implementation teams and help them maximise the value of TRACC, but your people will own and drive the journey themselves.

At Stage 3, our TRACC consultants provide focused guidance in the areas of value chain alignment and building a Demand-driven Value

Network (DDVN) to drive the true transformational step change. Between Stages 3 and 4, you can expect significant improvements in:

• Service: Perfect Orders or On Time In Full (OTIF)

• Cost: Operational cost reduction in manufacturing, supply chain and administrative operations

• Cash: Inventory reduction and OEE improvement

Our TRACC consultants will help you ensure that your customer segmentation, network analysis and work process integration are focused,

and that the metrics are clear and integrated across functions. Our consultants work closely with your TRACC implementation teams to

display the information in a way that facilitates critical decision-making for leaders and helps them move forward with creating a DDVN.

The TRACC DDVN collaborative teams focus everyone, in every function, on Cost, Cash and Service goals. They empower the people on

the front-line and on the shop floor to take the right actions. It is when you enable this level of ownership and behaviour that you really

begin to see a step change. With TRACC as your journey partner, you will have access to our consultants who draw on significant best

practice implementation experience from a broad cross-section of industries, ranging from small single-site operations to some of the

largest Fortune 500 companies. This enables you to create a sustainable improvement capability with a relatively small team of external

consultants that focuses on guiding and coaching your people, and building the in-house expertise necessary to ensure your improvements

are sustained even after the consultants leave the building.

TRACC Journey Partners

Our reputation for building competitive

capability is reinforced by our ability to enable

our clients’ global workforce.

OPERATIONS BEST PRACTICESBE S T- I N - C L A S S O P E R AT I O N S P R AC T I C E S i n p r o c e s s m a n u f a c t u r i n g d e l i ve r 9 7 % o n - t i m e d e l i ve r y ; 8 9 % ove r a l l e q u i p m e n t e f f e c t i ve -n e s s ; a n d 9 7 % r a w m a te r i a l u t i l i s a t i o n . I n f a c t, yo u c a n e x p e c t to u n c ove r u p to 2 0 % o f n e w l y a va i l a b l e c a p a c i t y f r o m t h e ‘ h i d d e n f a c to r y ’.

Core Improvement Strategy and Enablement Best Practices

Value Chain Alignment

Leading and Managing Change

Human Capital

Foundation Operations Best Practices

Teamwork

5S

Visual Management

Focused Improvement

Environment, Health and Safety

Pillar Operations Best Practices


Asset Care

Set-up Time Reduction

Quality

Environmental Sustainability

Administrative Excellence






The Value Chain Alignment TRACC helps define value chain

strategies and build the capability to balance the interaction

between demand needs, supply capability and product

innovation. It enables the optimisation of supply chain processes

and networks to aligned customer service segments. And it builds

and aligns practices and processes across functional boundaries.

The Value Chain Alignment TRACC enables …

9 Establishment of multidisciplinary structures to coordinate and sustain all improvement efforts

9 Establishment of a common set of cost, asset utilisation, reliability, responsiveness and agility goals that will satisfy customer requirements and shape demand

9 Alignment of performance measures and targets at all levels

9 Visibility and transparency of processes, integration points and wastes

9 Improved integration of supply chain planning and execution processes

9 Establishment of shared information systems and technologies with a high level of data integrity and visibility

9 All stakeholders to understand both the supply chain and their role in it

9 Creation of the necessary governance, risk and compliance structures and processes to ensure ongoing control

9 Prioritisation and guidance of the implementation of supply chain best practices to achieve and sustain required

performance

VALUE CHAIN ALIGNMENT TRACCYou need to align all the elements of the supply chain towards

achieving sustainable performance improvement across the

demand network to deliver optimal value to your end customer.

And to achieve this, you need alignment between the network

of businesses, processes and people involved in supply chain

execution.

Value chains aligned to deliver sustainable performance improvement

Core Improvement Strategy and Enablement

Best Practice

The Leading and Managing Change TRACC supports

organisations that wish to undertake a major change process

in a measured and structured way. It helps achieve sustainable

business improvements by embedding sound methodology into

the DNA of the organisation and that of its people. And it ensures

that, intuitively, your organisation knows the steps that need to

be followed when major changes are required.

The Leading and Managing Change TRACC enables …

9 Detailed implementation plan development and

integration

9 Effective communication and deployment of improvement

plans

9 Alignment and commitment of all key stakeholders to the

change vision

9 Workforce engagement and participation in the

implementation plan

9 Identification and management of improvement strategy

implementation risks

LEADING AND MANAGING CHANGE TRACCYou need to know how to read the changing environment and

develop strategies that translate into new capabilities to remain

competitive. You need to drive meaningful behavioural change

to ensure continuous improvement. And you need to engage and

empower your people at all levels of the organisation to ensure

your improvements are implemented and sustained.

An agile organisation that responds appropriately to change at all levels


Best Practice


Currently available in English UKCurrently available in English UK, English US, Dutch,

French, German, Italian, Mandarin, Polish, Portuguese, Russian and Spanish





The Human Capital TRACC aims to bring the HR team into

the organisation’s wider world class end-to-end improvement

journey. It introduces HR policies and procedures in stages to

support growing human capital management maturity. And it

develops the leadership competencies and practices necessary

to drive and maintain improvement results in all functions of

the business.

The Human Capital TRACC enables … 9 Establishment of fully measurable leadership

development practices

9 Introduction of fully measurable HR policies, practices

and services

9 A clear HR strategy aligned to business imperatives and

customer requirements

9 Line management and HR team cooperation and

engagement

9 Sustained performance of HR teams through teamwork,

structured problem-solving, visual measurement and 5S

HUMAN CAPITALTRACCYou need to develop the leadership competencies and

practices of your line managers so that they can grow your

single most important competitive advantage — your people.

You need to put the appropriate HR policies and procedures in

place to support them in their drive to become world class. And

you need to develop the HR team itself to apply best practices,

build capability and deliver service levels that exceed global

benchmarks.

Optimise human capital to sustain superior performance standards


Best Practice

The Teamwork TRACC is a foundation best practice designed

to improve organisational efficiency and drive down waste

on a daily basis. It ensures that work teams are accountable

for their performance. It takes your teamwork initiatives from

non-existence through the phases of development to be fully

self-directed by your teams. And you decide how far along this

continuum you wish to go.

The Teamwork TRACC enables … 9 Improved quality, productivity and service

9 Greater production flexibility

9 Faster response to technological change

9 Fewer, simpler job classifications

9 Better response to new worker values

9 Attraction and retention of the best people

9 Alignment of the teams around cascaded strategy and goals

9 Increased effectiveness in executing tasks

9 Teams that own and drive CI right at the point of production

TEAMWORK TRACC

You need to develop high performing teams and make excellence

a top priority to meet your organisation’s strategic goals. You

need greater flexibility in the workplace and improved quality,

productivity and services. And you need to develop the unique

and advanced worker skills and close interdependence among

team activities that were once separate in order to achieve this.

Maximise operational effectiveness with high performance teams

Foundation Operations Best Practice


Currently available in English UK and Mandarin Currently available in English UK, English US, Dutch,

French, German, Italian, Mandarin, Polish, Portuguese, Russian and Spanish





The 5S TRACC is a foundation best practice that applies the

basic principles of order, cleanliness, ownership, responsibility

and pride. It ensures that work standards are set and sustained

through self-discipline. And it establishes an environment for

other best practices to prosper and for your people to be their

most effective.

The 5S TRACC enables … 9 A clean work environment with everything in its place

9 Improved product quality through clear work standards

and visibility

9 Standards set and sustained through discipline and built-in

checks

9 Improved overall safety performance

9 Decreased equipment deterioration and failure

9 Early detection and elimination of problems and hazards

9 The creation of the necessary foundations for corrective

action, structured thinking and problem-solving

5S TRACC

You need to establish basic discipline, standardisation and

orderliness to launch and sustain all best practices successfully

within your organisation. You need to give workers a sense

of ownership and pride in their workplace. And you need to

establish clear work standards and visibility in order to improve

product quality and reduce equipment deterioration, hazards

and injuries.

Discipline, standardisation and orderliness that sustains best practice improvement


The Visual Management TRACC is a foundation best practice

that drives problem-solving and focused improvement. It

supports performance measurement through the visual display

of information and it enables effective control through visual

controls.

The Visual Management TRACC enables … 9 Accurate and timeous information visually displayed for

decision-making

9 Teams which actively own the information they generate

and act on it as appropriate

9 Teams empowered to drive down waste actively and

improve performance

9 Organisational performance visible and transparent to key

stakeholders

9 Measurement and strengthening of the implementation of

other best practices, e.g. Autonomous Maintenance, Set-up

Time Reduction, and Quality.

VISUAL MANAGEMENTTRACCYou need an approach for managing and measuring the high-

impact aspects of your business such as waste, quality and on-

time delivery right at the point of production, and by the people

who work there and own that process. They need to understand

what needs to be measured and figure out how best to measure

it. And they need effective methods to collect, process and display

this information quickly and easily to facilitate profitable decision-

making.

Drive problem-solving, decision-making and focused improvement through visual management



Currently available in English UK, English US, Dutch, French, German, Italian, Mandarin, Polish,

Portuguese, Russian and Spanish







The Focused Improvement TRACC is a foundation best practice

that ensures the right people own and address the right problems,

at the right time, and with the right tools. It helps you build an

organisation and an approach to business (call it your business

system) which continually identifies and solves problems, and does

so in a way which is totally integrated into all other processes and

practices across the organisation.

The Focused Improvement TRACC enables … 9 Empowered and enabled front-line workers

9 Establishment of effective cascaded lines of support, so that

the right problems are solved by the right people, at the right

time, and in the right way

9 Organisational learning through problem-solving

9 A highly disciplined approach to decision-making

9 An understanding of key losses and their business impact

9 Enhanced teamwork across disciplines

9 The change process to gain momentum and credibility

9 Increased customer satisfaction and reduced product delivery

time

FOCUSED IMPROVEMENT TRACCYou need to build a business system where the major wastes

and priority areas in your business are identified and owned by

the people closest to the process, and where these people focus

effectively and relentlessly on driving improvements in these areas,

with clear targets. You need to tie together all activities required

to maximise the effectiveness of equipment, processes and people

to rigorously eliminate losses, and to improve performance. In this

way, you and your teams yield the returns you know are possible

but which have remained so elusive to date.

Improvement initiatives converted into real ‘value’ with focused improvement


The Environment, Health and Safety TRACC is a foundation best

practice that takes organisations from a position of indifference

to a state where EHS excellence is the norm. It assists teams to

highlight, address and progressively eliminate risks and hazards,

thereby creating a healthy and safe workplace. And it engages all

employees in developing, owning and sustaining a world class

EHS culture.

The Environment, Health and Safety TRACC enables …

9 The progressive building of a safety culture within the

organisation

9 Increased productivity and enhanced employee

relationships

9 Prevention of injuries, lost working time and environmental

incidents

9 Improved environmental performance indicators, such as

energy and water consumption

9 Enhanced public image and increased employee morale

9 Continuous improvement of EHS plans and programmes

ENVIRONMENT, HEALTH AND SAFETY TRACCYou need to ensure the well-being of both your employees and

the environment to achieve world class standards. You need to

set in place the correct environment, health and safety policies

and procedures. And you need to change the behaviours and

attitudes of your employees so that the change is sustainable.

Reduce business risks and costs with Environment, Health and Safety (EHS) excellence











The Autonomous Maintenance TRACC fosters equipment

ownership among operators to enhance product quality,

production efficiency and equipment lifespan. It helps prevent

equipment failures by introducing proper asset care and early

detection of minor problems. And it ensures operators become

responsible for basic maintenance tasks. This delivers improved

equipment utilisation at lower overall cost.

The Autonomous Maintenance TRACC enables …

9 Improved equipment efficiency

9 A reduction in equipment failures, downtime and

maintenance costs

9 A reduction in equipment-related wastes (quality defects,

speed losses, set-ups and adjustment)

9 Improved teamwork between maintenance and production

9 Higher morale with operators’ potential fully utilised

AUTONOMOUS MAINTENANCE TRACCYou need to take a team-based approach to maintenance

activities in order to care for your assets effectively. You need to

create a partnership between operators, maintenance personnel,

engineers and operations management to eliminate unplanned

downtime, and to free up skilled tradespersons for more specialist

activities.

Eliminate 40-60% of unplanned downtime with autonomous maintenance

Pillar Operation Best Practice

The Asset Care TRACC helps entrench business centred

maintenance as a strategic imperative, as the smallest failure

can stop a whole plant. It prevents equipment failures through

the implementation of an effective preventive maintenance

programme. And it uses the analysis of the current failures to

prevent re-occurrence.

The Asset Care TRACC enables … 9 Prevention of equipment failures and losses

9 Condition-based maintenance strategies that reduce costly

shutdowns

9 Regular inspections to ensure correct equipment settings

and operating conditions

9 Quick fault-finding and repair by multi-skilled maintenance

persons with diagnostic tools

9 Better planning and scheduling to reduce maintenance

downtime

9 Maintenance costs reduced to less than 10-15% of overall

manufacturing cost

ASSET CARE TRACC

You need to maintain optimum equipment productivity to

minimise the total life-cycle costs of owning and operating capital

assets. You need to prevent machine failures. And you need

to comply with legal requirements regarding record-keeping,

analysis and inspection.

Eliminate equipment failures and increase output with proper asset care











The Set-up Time Reduction TRACC uses the Single Minute

Exchange of Dies (SMED) technique to enable fast changeovers

and set-ups. It improves production scheduling and predictability

through the standardisation of changeovers. And it increases

equipment utilisation through reduced set-up downtime.

The Set-up Time Reduction TRACC enables …

9 Flexibility to respond quickly to changing customer

demands

9 Improved production output and profits

9 Improved equipment utilisation

9 Reduced start-up wastes and rejects through efficient set-

ups

9 Simple, standardised set-up procedures that free up higher

skilled people to focus on improvements

9 Standardisation and consistency of changeovers

SET-UP TIME REDUCTION TRACCYou need to be flexible enough to respond quickly to customer

demands without being bound by costly changeovers and set-

ups. You need to reduce stock-holding levels and lower working

capital requirements through shorter production runs. And you

need to minimise cost and waste to boost efficiency.

Cost, waste and efficiency improved with set-up time reduction


The Quality TRACC embraces all the elements of TQM, improving

both the quality control and assurance elements in your

organisation. It assists with the application of quality systems and

techniques to improve product and process quality at the source.

And it ensures you achieve quality in a proactive way, as opposed

to being reactive.

The Quality TRACC enables … 9 Improved customer satisfaction and staff morale

9 Reduced rework and rejects, and thus greater profit and less

waste

9 Reduction of waste relating to manpower, machine time

and material

9 Consistent product performance

9 Reliable delivery dates

9 Reduction in the cost of non-conformance

9 Reduction and control of product and process variability,

and increased machine efficiency through centre-lining

QUALITY TRACC

You need to create products that satisfy customer requirements

and produce quality where it matters most — the coalface. You

need to improve the effectiveness of your quality effort over time.

And you need to strive for zero defects or Six Sigma quality levels

in your effort to reach world class.

Exceptional quality that satisfies customer requirements











The Administrative Excellence TRACC ensures a systematic

approach to embedding the principles of Lean and process

improvement within your administrative departments. It

supports the implementation of teamwork, 5S, problem-solving

and visual management best practices. And it results in better-

defined service levels, improved service delivery, higher quality,

lower costs and increased customer satisfaction.

The Administrative Excellence TRACC enables …

9 Improved value delivered to customers through Lean

processes and work methods

9 Application of basic planning tools to smooth demand and

create customer pull

9 Improved problem-solving skills to drive performance

improvement projects

9 Teamwork and leadership skills development

9 Management through the visual display of performance

9 Implementation of 5S for discipline, order and efficiency

9 Clear performance indicators and targets (delivery, quality

and cost)

ADMINISTRATIVE EXCELLENCE TRACCYou need to apply Lean principles in your on-site administrative

and support departments, as well as to work processes if

your organisation is to become truly world class. You need to

unlock and track the hidden value-adding activities within

administration. And you need to set clear performance indicators

and targets such as delivery, quality and cost in order to improve

consistently.

Improved service delivery, quality and cost through administrative excellence


The Environmental Sustainability TRACC aims to support the

corporate sustainability strategy and improve performance by

guiding operations in the implementation of environmental best

practices. It expands from an initial focus on internal operations

and primary priority issues, to working with secondary priority

issues and the organisation’s value chains to significantly improve

operational and environmental performance, and ultimately

influence change in the industry.

The Environmental Sustainability TRACC enables …

9 The identification and management of environmental risk

9 Compliance with environmental legislation

9 Cost savings over the longer term

9 The enhancement of the organisation’s reputation

9 Access to financial markets

9 Increased employee motivation and retention

9 Product market opportunities

ENVIRONMENTAL SUSTAINABILITY TRACCYou need to implement environmental best practices to improve

operational and environmental performance in alignment with

your corporate sustainability strategy. You need to identify and

prioritise the most pertinent environmental issues, which may

include energy and Greenhouse Gas (GHG) emissions, water

and wastewater, waste, air pollution and Substances of Concern

(SOC). And you need to set targets and establish management

plans for each of these issues in order to achieve both incremental

improvements and step changes in behaviour, technology and

products.

Identify and manage risks with environmental sustainability best practice



Currently available in English UK Currently available in English UK, Spanish and Mandarin





BEST PRACTICESINCLUDE

Operational excellence improves effectiveness and efficiency while minimising costs without reducing value. It standardises and integrates best practices to enable your people to implement improvements simultaneously across multiple plants. And it builds the motivation and capability to improve performance, practices and work processes continuously.

INSIDE THIS SOLUTIONThe TRACC Operations Best Practices integrate all your improvement processes into one cohesive system that aligns

your practices to your strategy and ensures sustainable results on your world class journey. This integrative improvement

system drives world class best practice irrespective of leadership changes, mergers and aquistions and your operation’s

preferred language, making it a scalable source of competitive advantage.

OPERATIONSBEST PRACTICES

Together these best practices enable your people to secure alignment and cooperation

across functions and departments, build and support the human capital that is necessary

to reach world class, and manage the journey in a manner which keeps everyone engaged.

PLUS TRACC’S THREE CORE IMPROVEMENT STRATEGY AND ENABLEMENT BEST PRACTICES

Human Capital

Value ChainAlignment

Leading andManaging

Change

FocusedImprovement


QualityVisual

Management

Teamwork

Set-up Time Reduction

Environmental Sustainability

Environment, Health and

Safety5S

Asset Care

Administration

Excellence

The TRACC Value Chain improVement Solution

To achieve accelerated business performance improvement that is both notable and sustainable, and to continuously increase value, you need to improve everything and enable everyone across your PLAN, SOURCE, MAKE, and DELIVER processes.

More possible tracc best practice solutions for your business ...

TRACC PLANNING BEST PRACTICESYou need to guarantee both planned production that meets forecast demand and the availability of the appropriate amount of raw materials and goods for planned production runs. You need a solution that builds a more agile, flexible and responsive supply chain with an integrated and structured approach to planning.[7 best practices]

TRACC SOURCING BEST PRACTICESYou need to manage complex data, compliance and risk across increasingly global, multi-tier supply chains. You need a solution that helps you reduce the total cost of ownership (TCO) and enables your people to deliver to supply chain KPIs.[4 best practices]

TRACC LOGISTICS BEST PRACTICESYour processes are misaligned and there are activities in your warehouses and across transportation that compromise the management and delivery of your products. You need a solution that organises and coordinates all activities regarding the receiving, storage, preparation and distribution of your products to be on time and delivered in full.[5 best practices]

TRACC TRANSACTIONAL SERVICES BEST PRACTICESYou need to ensure a high level of transactional service in order to increase profit margins, attract new customers and retain existing ones. You need a solution that improves processes, and embeds Lean in the high-volume transactional areas of your business.[4 best practices]






SERVICESTRACC Trusted Advisors TRACC Trusted Advisors walk every step of the way with your internal implementation and training teams, guiding them through the process, and coaching and training them on how to implement TRACC, build capability, achieve your improvement strategy and sustain the improvements.

SUPPORTTRACC System SupportTo ensure rapid deployment, TRACC provides secure online platform set-up and virtual training. As part of the secure platform set-up, various user groups are created for your organisation. This enables your business to control access rights such as creating and conducting assessments, viewing specific business areas, and system administration.

TRACC CommunityThe TRACC online community of best practice provides a mechanism for TRACC users to see photographic examples of what good looks like. This support service also provides peer networking and discussion forums for shared learning.

TRACC EventsTRACC events are hosted all around the world, attracting thousands of people to collaborate and innovate around business performance improvement. These events are designed to foster collaboration and networking in order to maximise the opportunity for leaders and industry experts to learn from each other’s business improvement programmes, experiences and insights.

TRACCSERVICES AND SUPPORT

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Find out how thiS Solution workS in your induStry:

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Copyright © 2016 CCI (Pty) Ltd All rights reserved TRACC, its logo, and Integrative Improvement System are trademarks of CCI.

Our reputation for building competitive capability is reinforced by our ability to enable our clients’ global workforce.

Our focus on value-based solutions for our clients brings about both practice and work process improvements,

efficiency gains and substantial bottom-line growth.

For over 25 years, we have delivered sustainable results across more than 2 000 operations in 70 countries and in

multiple languages.

Provided by

CCI The PeopleBehind TRACC

ONESOLUTION TO ACHIEVE YOUR IMPROVEMENT STRATEGY

If you are already a TRACC user, please contact your TRACC account manager

Europe ............................. +44-207-321-3902 Africa/Middle East ....... +27-21-555-3610

China ................................ +86-21-3382-1651South East Asia ............. +65-6866-3300 Australasia ...................... +61-75-577-4005

North America .............. +1-949-679-2960 Latin America ................ +52-33-3002-4023





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