TPM Pilar Alineacion de Objetivos

PILLAR REFERENCE GUIDE FOR
GOAL ALIGNMENT
IN MANUFACTURING
VERSION 1.0
December 5, 2017
GOAL ALIGNMENT IN MANUFACTURING
TABLE OF CONTENTS
DOCUMENT CONTROL .......................................................................................................3

INTRODUCTION TO THE DOCUMENT ...............................................................................4
TARGET AUDIENCE ....................................................................................................................................................................4
OBJECTIVE ..................................................................................................................................................................................4
PILLAR GA IN MANUFACTURING .......................................................................................5

PILLAR OVERVIEW .....................................................................................................................................................................5
PILLAR MISSION .........................................................................................................................................................................5
PILLAR ROLE ...............................................................................................................................................................................5
IMPROVEMENT AND SUSTAINABILITY CYCLES ..............................................................6

SUSTAINABILITY CYCLE ....................................................................................................7
WHAT ARE THE DIFFERENT ROLES AND RESPONSIBILITIES FOR STANDARD MANAGEMENT IMPLEMENTATION? ..................9
HOW IS STANDARD MANAGEMENT IMPLEMENTED? .............................................................................................................10
STANDARDIZE: .........................................................................................................................................................................10
DO: ...........................................................................................................................................................................................11
CHECK: .....................................................................................................................................................................................11
SOR / SHO ................................................................................................................................................................................11
DOR ..........................................................................................................................................................................................12
IMPROVEMENT CYCLE .................................................................................................... 14

OMP DEVELOPMENT PROCESS ................................................................................................................................................14
PERFORMANCE MEASURES DEVELOPMENT PROCESS ............................................................................................................15
MEASURES TREE ......................................................................................................................................................................17
QOR .........................................................................................................................................................................................19
MOR .........................................................................................................................................................................................19
WOR.........................................................................................................................................................................................20
ANNEX: EXAMPLE OF SDCA AND PDCA ...................................................................... 22
NESTEC LTD © 11/2017 THIS DOCUMENT MAY NOT BE REPRODUCED OR DISCLOSED TO THIRD PAGE 2 OF 24
PARTIES WITHOUT PRIOR AUTHORIZATION
DOCUMENT CONTROL
Date of Changes made
Updated by Version Status of
update (Section numbers and
(Author name) # document
(dd/mm/yyyy) description)
01.11.2017 Marcos Rivière de First Reference Guide for 1.0 Approved
Alvear Manufacturing published
Ronaldo Bagawisan
INTRODUCTION TO THE DOCUMENT
TARGET AUDIENCE
The target audience of this document includes Pillar leaders and members, Factory Leadership Team
(FLT) and Local Leadership Team (LLT) members, Heads of Functions and Departments.
The guide is intended for use as a reference to implement Goal Alignment at all levels of the factory.
Further details on Goal Alignment practices can be found in the Goal Alignment Reference Guide from
Corporate NCE.
OBJECTIVE
The objective of this document is to serve as a common and aligned basis for the Goal Alignment Pillar as
part of NCE. It describes the specific particularities for Manufacturing and is intended to:
 Help make the connection of all the GA practices specifically in a factory. The document will present
several examples helping to implement the practices correctly as explained in the main GA Reference
Guide.
 Explain how to live the improvement and sustainability cycle in daily factory life.
PILLAR GA IN MANUFACTURING
PILLAR OVERVIEW
Goal Alignment in Manufacturing follows the general GA methodology applied in a factory environment. It
is important that the factory pillar have the participation of the factory manager and representatives of the
different committees.
PILLAR MISSION
Goal Alignment in Manufacturing follows the general GA methodology applied in a factory environment. It
is important that the factory pillar have the participation of the factory manager and representatives of the
different committees.
Our mission is to enable factory leaders at all levels to transform the ways of working to achieve a high
sense of ownership and empowerment to deliver business results.
Goal Alignment in Manufacturing Pillar provides the link with the management cycles and general Goal
Alignment practices. In short, the Goal Alignment Pillar Mission is to help leaders align and engage
everybody to deliver business objectives.
PILLAR ROLE
The Pillar’s role comprises of four activities:
 Methodology: masters methodology and links to tools designed by the Master Pillar, taking
management cycles into consideration;
 Training: provides / supports training on methodology and tools to leaders (FLT and LLT);
 Coaching: coaches on the application of the methodology and tools linked to managerial cycles. Pillar
members observe the application of different methodologies by leaders and coach them based on
these;
 Assessment: ensures right application of methodology and tools. The Pillar needs to see evidence of
ways of working being applied from FLT and LLT.
IMPROVEMENT AND SUSTAINABILITY CYCLES
The role of the leaders at the factory is to drive transformation to deliver breakthrough results. In order to
do it, there are two different managerial cycles they have to consider; PDCA (improvement cycle) and
SDCA (sustainability cycle); both cycles run in parallel. Thus, to distinguish a real improvement from the
noise generated from an unstable process, you will need to have a strong sustained cycle, otherwise it will
not be possible to differentiate the improvement from the noise. Hence the need to run both cycles in
parallel since they are interdependent.
The improvement cycle known by PDCA (Plan Do Check Act):
The business/functions request for improvements on the current situation and the factory has to develop
an improvement plan, which is reflected in the Operational Master Plan. In addition, the PDCA cycle is the
base for the NMS (Nestlé Management System) used by the T&P functions (Quality and SHE) for
Continuous Excellence.
The sustainability cycle is the SDCA (Standardize Do Check Act):

The factory has to ensure reproducibility in the way they produce. To make this possible they need first to
make sure that they have good standards and secondly, that the standards are applied with discipline.
In summary, there is a need to have a strong sustainability in place before starting any improvement. This
makes the SDCA cycle a basis for a successful improvement cycle.
SUSTAINABILITY CYCLE
The way to have sustainability is by ensuring standards execution. This is so critical that,
before starting any improvement cycle, it is necessary to ensure that performance is
sustainable and enabled by standards.
A strong standard culture helps to identify the improvement opportunities, whereas it is very
difficult to see any improvement in a process without standards. The management routine to ensure a
good standard execution is through the Standard Routines (or SDCA).
What is a standard?
A standard is a written definition of a proven current Best Practice that is needed to follow to ensure sustained
results. Thus, whenever a standard exists, it must be applied. A good standard has to be relevant, team agreed,
easy to understand and accessible.
How to manage a good standard execution?

The system to ensure that the standards are executed with discipline and delivering the expected results is
through the SDCA cycle or Standard Routines as used in GA.
They allow for the proper application of standards. A Standard Routines is not a new type of standard but a
key practice related to the SDCA (sustainability) cycle. As a result, achieved results of the factory are
sustainable.
The SDCA cycle aims to:
 Empower and engage team members by agreeing on the most efficient way to perform activities and
tasks
 Give visibility on the training needs of the operators on a standard
 Make easier to identify the link of any task with the result
 Ensure consistent results through the disciplined execution of activities and tasks
 Further empowerment of the operator through proper coaching sessions from the leadership team to
keep developing them
 Facilitates the transfer of knowledge to develop people’s autonomy
What are the different Standards?

In Nestlé, standards can broadly divided in to two types:
Nestlé Standards: also called Corporate Standards or Group Standards;

 Contain procedures, norms and instructions for application of Nestlé Group Principles and Policies or
industry-wide standards;
 Mandatory application (if not applied it constitutes a Compliance issue);
 Approved by Executive Board (delegation to one Executive Board member possible).
Standard Procedures: (e.g. SOPs, Centerline, checklist, CIL, Business Procedures…)

 Written definitions of a current best practice on how to do things
 Refer to a group of activities or tasks that are expected to be followed by the user
 Can be associated to a Nestlé Standard to support its local application, so in case it is not applied it
constitutes a Compliance issue
Key Standard: these are standard procedures coming from contributor analysis. They ensure that key
activities in the line are delivering the expected results making reference to the following:
1. Cleaning (or CIL when AM pillar is started)

2. Centerline
3. Change-over (includes the start-up, change over and shut-down procedures)
4. Maintenance Planning and scheduling
5. Zero product defect
6. Safe way of working
7. Tagging (only when AM pillar is started)
IMPORTANT: Any standard should follow the same SDCA cycle. The Check and Act frequency will
depend on priority and frequency of execution.
To make the standard management implementation successful, we recommend the application of the
simple plan below:
1. Prioritize lines based on business priorities

2. Identify line specific losses (i.e. reason codes)
3. Prioritize roll out plan based on losses
4. Identify critical standards based on these losses (with process owner, operator, SME- Subject
Matter Expert)
5. Engage leadership in creating a culture of standards and results (leadership@shopfloor)
6. Set up Standard Routine structure (i.e. SDCA traffic lights)
7. Ensure quality execution by being meticulous in the checks (i.e. execute gemba routine checking
the standard when applied)
WHAT ARE THE DIFFERENT ROLES AND RESPONSIBILITIES FOR STANDARD MANAGEMENT
IMPLEMENTATION?
Factory Leadership Team (FLT):
 Follow-up results delivered by LLT;
 Build deployment plan with the help of FI Pillar based on losses;
 Coach LLT in the execution part of the KSR.
Local Leadership Team (LLT):

 Execution and follow-up of the KSR implementation plan;
 Daily coaching of KSR application;
 Deliver expected results.
GA Pillar Factory:
 Train, coach and assess the general KSR methodology to the FLT/LLT;
 Train all function/Pillar members on the general KSR;
 Consolidate the implementation and governance of all KSR and how is the interactions/cooperation
amongst pillars/functions.
Function/Pillar:
 Develop the content of the functional KSR (i.e. Zero defect product is developed by Quality, Safe
way of work by SHE, Planning and scheduling maintenance by Engineering);
 Train FLT/LLT/Pillar on KSR content;
 Coach and Assess on the understanding and execution of the standard during their visits;
 Follow-up the implementation and governance of their own KSR.
HOW IS STANDARD MANAGEMENT IMPLEMENTED?
Standard management is made of the four elements that are the SDCA cycle:
In order to assess if any Standard management system has been implemented it has to meet the
following criteria (this is known as the traffic lights):
Standard Evidences
Routines
Standard Quality of standard - is relevant, with team agreement, easy to understand
and accessible
Do Training plan followed at LLT
Discipline in execution
Check  Measures: have to be easy to make the link of activity with result
 Gemba visits: calendar placed in FLT/LLT
o Planned visits: daily visits for LLT with a weekly follow up
o Result-driven visits
o Use of on-the-job verification tool
Act Use the flow to solve the deviations
STANDARDIZE:
Start with the most critical line according to business needs and then implement the different Standard
according to factory losses. A good standard has to be relevant and done with the team.
As already mentioned a well-defined standard has these characteristics:
 Relevant: Based on relevant activities or tasks for the team;

 Team Agreement: People involved in creation/application of a standard, agreeing on its content
and thereby ensuring ownership;
 Easy to understand & access using simple and visual descriptions and ensuring easy availability
and accessibility.
DO:
There are two important points to be considered in this step:
 Training: Local leadership team is responsible to ensure the operators are competent in their daily
activities, so they need to follow-up the training. This is done in the DOR (training done in the last 24h
and to be done in the next 24h) and WOR (training strategy). In order to build the competency plan
E&T methodology should be applied.
 Discipline in the execution: Training alone is not enough to achieve results; the LLT needs to ensure
that the standards are executed as defined in the standard. This is part of the DOR.
CHECK:
There are 2 points to be considered:
 Measures: any task performed in the line needs to be linked to a result (example: #unplanned stops
with Adherence to CIL, CL, Maintenance planning and scheduling, tagging, etc.). Follow the different
measures in different OR according to the info given in the GA in Manufacturing SharePoint. These
measures are coming from the predefined contributor analysis for manufacturing following the PMD
process.
 Gemba visits: they are based on the Leadership @ Shopfloor principles. FLT/ LLT has to do the
follow up of the visits during the WOR. There are two types of visits:
o Planned visits (helps to check the quality of the standard on a regular basis, these visits are
planned in advance and follow a calendar.
o Result driven visits: going to Gemba to identify which standard led to a red measure and
recover the lost basic conditions. This this happens after a DOR where a decision is made to
go for a Gemba walk.
The monitoring of sustainability cycle (SDCA) is discussed in the DOR and SOR/SHO meetings.
SOR / SHO
Owner: Team leader
Objective:
 Follow standards adherence to ensure a proper 8 hours shift preventing any loss related to SHE, Q
and Asset intensity.
Process:
 Review performance of the previous shift while taking necessary actions to restore the line conditions;
 Focus on the last 8 hours adherence to standards and results to identify sporadic losses;
 Sharing of any other relevant information between incoming and outgoing shifts;
 Understand the risk to mitigate them.
Outcome:
 A detailed shift activity plan ensuring the execution of standards and restoring any deviation or
mitigation of risks;
 Escalating issues that the team is not able to resolve to the DOR.
DOR
Owner: Production/Plant/Area Manager
Objective:
 Drive a culture of adherence to standards culture by setting the right priority and allocating resources.
 Ensure that every Standard gives the expected result.
 Ensure the following 24h are going to be perfect.
Process:
 Review the performance and issues of the previous 24h and how it can be ensured the next 24h
without problems.
 Follow up on the action plans
 Review adherence to standards
 Trigger problem solving in case of unknown root cause.
 Tracking GSTD and its action plans
 Decision-making and resource allocation according to the priorities of the department/ day
 Identify barriers and actions to deliver the plan of the day
Outcome:
 Departmental daily activity plan & priority setting to have a perfect next 24h
 Supporting the execution of standards restoring any deviation or mitigation of risks
 Launching GSTDs
ACT:
Any deviation of the results needs to be linked to a standard. Typically, a bad result is related to something
that is not working in the standard and linked to the following five causes (4M and Environment):
1. Methodology - example: are we applying the right method?

2. Man - example: are the operators well trained and with the right competency level?
3. Machine - example: is the machine in basic conditions?
4. Material - example: is the material within specifications?
5. Environment - example: is the temperature and or humidity correct?
If the root cause is known, a Just Do It is applied but where it is not known, the process in the below
diagram should be followed:
Operational Review APIs and PPIs connection

START
Red indicator in the

PPIs
Do you Know
NO
which part of Go and see to find out
machine Fail?
YES
Is there a Standard
NO Just Do it (CREATE the
to Execute the
Do you Know standard)
activity ?
which Activity YES
Fail? link with
APIs red
YES
NO
The standard To
GS perform the NO Just Do it (UPDATE the
Trigger a "On the Job activity is Correct standard)
verification" of the and COMPLETE?
activities related
YES
YES
Do You identfy the
activity that fails ?
the people who
performed the activity NO Is there a YES
has the correct Behaviour Just FIX IT
competence? (Skills problem?
NO and behaviours)
NO END
YES
Perform GSTD The activity is NO

included in the Update The
Competency competence Matrix
Matrix ?
Update
YES
Standards
Review the
competency
description and
Train (or re-train) content
Standards
(train the people)
Review Competence Matrix &
Onboarding plan.
END
Standard Routines are the most critical part in order to ensure the results sustainability and it reflects the
teamwork needed to ensure it. It starts from the Factory Manager together with the FLT and LLT until the
operator. Everyone in the factory has a contribution towards it.
IMPROVEMENT CYCLE
If the Business requests for an improvement in a current situation, then PDCA or

improvement cycle is used to achieve the improvement requested.
PLAN:
Any improvement or business objective needs a plan. This plan is what we call the Operational Master
Plan (OMP). A well-defined Operational Master Plan consists of:
 Business priorities translated into manufacturing priorities and related measures;

 Functional priority plan prioritized according to Business priorities.
The OMP represents the improvement plan (i.e. part of the PDCA cycle) of the factory and should include:
 Improvements required to go from current situation to expected situation based on business needs;
 Priority initiatives/projects to close gaps to obtain the expected result.
OMP DEVELOPMENT PROCESS
The Operational Master Plan development process consists of six steps. In doing the OMP, we need to
reflect the business needs, the current situation, activities that we will perform, and the capability needed
to get the plan done to achieve results.
When building the OMP, it is necessary to define measures to periodically check the plan. Typically in
Manufacturing, these are the dimensions to consider:
 Safety: safety and health of people within the organization

 Asset Intensity: how consistently and efficiently a process operates
 Quality: how well we do what we do
 Cost: financial figures and cost-related figures
 Delivery: service level provided to customers
 Environment: impact on the environment
 People: people engagement and competency development.
Some measures are already defined in the St-21.010 Performance Measures for Manufacturing that have
to be followed in the different OR’s. There is a certain degree of freedom to define the specific measures
to follow in the Factory Leadership Team and less strategic meetings (WOR, DOR and SHO). In order to
establish the different measures at different levels, there exists a “Predefined Contributor analysis” for
some of the measures: AI, Quality (FTR, Consumer Complaints), Cost of Production, Safety, Case Fill
Rate and Stock cover.
If there are different losses to be taken into account in the OMP, it will require to develop a new measure,
so it will need to use the Performance Measure Development (PMD):
PERFORMANCE MEASURES DEVELOPMENT PROCESS
The Performance Measures development process consists of five steps:
In order to define them we need to consider the following elements to have an effective Performance
Measure Development:
 Measure Tree (some are already developed as per KSR)

 Contributor Analysis (helps to prioritize)
MEASURES TREE
Example of Measure Tree / Contributor Analysis for Total Delivery Cost/ Cost of Production for the
PDCA cycle (taken from the predefined contributor analysis for Cost of Production).
Contributor Activity Measure
Let us see an example, remember that:
Business Needs Factory Current GAPS

and Performance (means Factory
T&P Roadmap (previous Results) Priorities)
Some of 2016 T&P Roadmap objectives:

1. Eliminate the Unplanned stoppages – 2018 Target: <7%
2. Optimize the Planned stoppages – 2018 Target: <13%
3. Excel in Machinery Safety – 2018 RIR Target: <1.8
4. Eliminate the critical defects in our products – 2018 Target: 30% reduction vs 2015; Zero Food Safety
related foreign body consumer complaints (glass & metal)
Based on the needs and the current performance, where are we? What are the gaps to achieve the needs?
Example:
How to achieve the target in
the glide path? What are the
activities to execute in order to
achieve the target?
Note: Same applies to Planned

Stoppages, RIR, Critical
Achievement for 2016 was 17% still a Glide path for % UPS to achieve 7% in
gap of 10% to achieve 2018 Target
Defects and other T&P
2018. This will be the quarterly target in
OMP. Roadmap objectives
The process is:
1. Identify the priority lines and the impact that it will have on the factory (previous results, volume
requirements, capacity utilization, etc.);
2. Glide path can be drilled down until the line level to deliver the factory result.
Examples of Activities in OMP:
Business needs a reduction of 7% Production Costs:

1. This is translated into: reduce 15% of UPS in the factory;
2. From the UPS deployment we see that Line X has to reduce 25% UPS;
3. How: these will be the activities/milestones to put in the OMP:
a. Deploy KSR in Line X from Jan to April;
b. Close step 2 in AM from April to September.
DO:
Execution of the plan. This is the follow up of adherence to the plan as part of MOR.
CHECK:
Quality of the plan: link the adherence to the plan with business results. The proper way to know if the
quality is accurate is through the Measures defined previously in the Plan. If the Plan is good, then
completing the activities will lead to expected results.
In order to apply the right measure in the right meeting, different Operational Reviews for the improvement
cycle (PDCA) need to be considered:
QOR
Owner:
 LLT: Production Manager
 FLT: Factory Manager
Objective:
 Ensure that our quarterly trends are going to deliver the annual target
 Challenge the current strategy shown in the OMP
Process:
 Review quarterly measures and analyze trends vs. annual targets
 Follow up on status of action plans or issues from previous quarter
 Review OMP completion (activities and competencies) to ensure it is forward looking
 Identify roadblocks to get the annual results and reallocate resources
 Propose launching/stopping improvement activities( including NCE Imp plan)
 Update the number of trainers and coaches needed to support the updated plan according to the
new changes
Outcome:
 New strategy reflected in the updated OMP
MOR
Owner:
 LLT: Production Manager
 FLT: Factory Manager
Objective:
 Ensure that our monthly trends are going to deliver the quarterly target
 Ensure the improvement activities and competency building are on track and deliver the required
results.
Process:
 Review monthly measures and analyze trend
 Follow up on status of actions plans or issues from previous month
 Review planned stop plan; it should be forward looking
 Remove roadblocks & resource allocation
 Launching/reviewing of improvement activities/ problem solving (NCE Imp plan)
 Review Competency building plan adherence
Outcome:
 Monthly activity plan and priority setting (Improvement, Coaching, People development, NCE
implementation)
WOR
Owner:
 LLT: Production Manager
 FLT: Factory Manager
Objective:
 Ensure that our weekly trends are going to deliver the monthly target
 Ensure the improvement activities and competency building are on track and deliver the required
results.
Process:
 Review weekly measures and analyze trend
 Follow up on status of Action plans or issues from previous week
 Review production plan, it should be forward looking
 Support the teams – Assessment/ Coaching
 Remove roadblocks & resource allocation
 Launching/reviewing of improvement activities/ problem solving, (NCE Imp plan)
 Review Competency building plan and development activities
Outcome:
 Weekly activity plan and priority setting (Improvement, Coaching, People development, NCE
implementation)
ESCALATION
Escalation means requesting additional support to remove barriers that the team cannot solve. Moreover,
if there is a flow interruption, then the escalation process ensures that the immediate follow-up is done to
minimize the impact across the value chain. The factory should have a flow describing what triggers the
process and whom to contact.
These escalations should be reviewed in the Operational Reviews in order to confirm that an escalation
was open, to assess if the problems that caused the escalation are repetitive and to take additional action.
Once issues are solved or decision is taken, timely feedback should be provided to the teams.
ACT:
Any deviation of the results needs to be linked to the activities.
If the adherence to plan is correct and the result is not achieved (watermelon effect), a deeper analysis
has to be done in order to challenge the current strategy (OMP). Based on this, a change in the OMP
activities should be done during the QOR and new projects such as DMAIC, SMED or even Capex may
be added. In the end, there will be a new or an updated standard in place to ensure the sustainability, so
it will have to be part of the SDCA cycle.
ANNEX: EXAMPLE OF SDCA AND PDCA
In order to better understand, below is an illustration of how to differentiate both cycles in the factory using
UPS.
The SDCA and PDCA cycles are repeated

endlessly to go for zero
Make the Improvement Plan (PDCA)
Imagine that as a factory objective, we need to deliver an improvement on UPS. Today we have 20% UPS
and the business requests that we need to deliver 7% by the end of 2019 in order to meet the cost reduction
they need to continue to stay competitive.
This will be a milestone in the OMP. In order to deliver this milestone we will add projects/activities (typically
DMAIC, projects and NCE maturity levels). All those will be part of the OMP activities. We will review the
adherence to the plan in the MOR and the entire strategy in the QOR. In order to see the Planned Evolution
we need to measure it.
Hence, we have the Performance Measure Development “PDM” (i.e. contributor analysis, measure tree).
The contributor analysis helps to define the key activities. In this particular case, we will use the Predefined
Contributor analysis for AI; it contains UPS contributors up to the critical line activities. Using this
information, we can establish which measure we need at each OR (from QOR to SHO).
Up to here is what we call the PDCA cycle or the improvement cycle. As a summary, we need a plan to
get the business objectives and the collection of all these plans and activities reflected in the OMP, and
the monitoring of the plan is done in the ORs (MOR and QOR).
Execution
At the beginning of the journey, the reality of a line performance is that it is very unstable; one day it can
be at 10% UPS and the next it can be at 40%. If we start to do improvement activities in an unstable
environment, how can we ensure the improvement is sustainable?
Therefore, we need first to get the sustainability in the line performance and to do that we apply the
sustainability cycle or SDCA cycle. How do we do that? Very simple, GA helps us to make it happen. We
need to know what are the activities influencing the results (remember the outcome from the contributor
analysis). Hence, we need to put a Standard Routine behind those. To see that the standard is bringing
sustainability we need to monitor the progression, hence we need to use the measures developed during
the Improvement Plan creation to see if the standard is giving the expected results (measure tree).
Then we will start measuring and making the right decisions at the right level of responsibility. For this, we
have the OR at different levels. Immediately after starting the OR with the right measures, we will see that
we need to change/update the way we do things, therefore we will need to update the current standard,
for this, we have the standard routines.
1st reduce variability (SDCA cycle)
Variability reduction requires competency development of the standards. For this, the role of leadership is
key. Through leadership at the shop floor, they will create the culture of adherence to standards by
recognizing the people for the correct application instead of recognizing the firefighters.
Coaching visits
The coaching visits can have different urgency: Planned versus Result driven visits. For example, if there
is a problem in one machine and it is planned to have a coaching visit in one month. You need to go and
see immediately, that is why you have two different coaching approaches: Planned and result-driven. In
the end, you need time for both, but the objective is different. One is to get an improvement to take it to
the next level and the other is to find where the basic conditions fail and to put them back on track.
Do we need to do coaching of all the standards every day? No, we need to have a clear loss map to know
where we need to start and where we need a better focus; what we need is to ensure that we coach
everyday but not on everything (all the standards at the same time), even though the LLT has planned to
get all standards coached.
When applying the standards correctly and with discipline we will see that the variation starts to decline,
hence the line is more stable.
What to do when we have an outlier?
One day we will have a bad result. This bad result normally comes from one of the 4M plus environment.
Therefore, one standard is not meeting its expectations and we need to find the reason. Sometimes we
already know it, then we do a “Just Do It”, and sometimes we do not know so we need a little bit of more
investigation. In order to do this investigation, it is key to have a good link of the measures with the
activities. If we do not find anything, then we need to use another tool called “GSTD”. In the end, we will
have a new updated standard that has to go through the Standard Routines cycle to ensure the
sustainability.
2nd Improvement cycle (PDCA)
After reducing the variability we can go to another improvement initiative/project that is mentioned in the
OMP. Typically it can be a project or a DMAIC or implementing a practice coming from any pillar (AM, PM,
FI, LEAN, etc.). Finally, it has to be said that if you want to improve you need both cycles working together,
first you reduce variability then you improve, then reduce variability, then improve...infinite times...

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PILLAR REFERENCE GUIDE FOR

DOCUMENT CONTROL .......................................................................................................3

PILLAR GA IN MANUFACTURING .......................................................................................5

IMPROVEMENT AND SUSTAINABILITY CYCLES ..............................................................6

IMPROVEMENT CYCLE .................................................................................................... 14

ANNEX: EXAMPLE OF SDCA AND PDCA ...................................................................... 22

INTRODUCTION TO THE DOCUMENT

IMPROVEMENT AND SUSTAINABILITY CYCLES

The improvement cycle known by PDCA (Plan Do Check Act):

The sustainability cycle is the SDCA (Standardize Do Check Act):

How to manage a good standard execution?

The SDCA cycle aims to:

What are the different Standards?

Nestlé Standards: also called Corporate Standards or Group Standards;

Standard Procedures: (e.g. SOPs, Centerline, checklist, CIL, Business Procedures…)

1. Cleaning (or CIL when AM pillar is started)

1. Prioritize lines based on business priorities

Local Leadership Team (LLT):

HOW IS STANDARD MANAGEMENT IMPLEMENTED?

As already mentioned a well-defined standard has these characteristics:

 Relevant: Based on relevant activities or tasks for the team;

1. Methodology - example: are we applying the right method?

Operational Review APIs and PPIs connection

Red indicator in the

Perform GSTD The activity is NO

If the Business requests for an improvement in a current situation, then PDCA or

 Business priorities translated into manufacturing priorities and related measures;

OMP DEVELOPMENT PROCESS

 Safety: safety and health of people within the organization

PERFORMANCE MEASURES DEVELOPMENT PROCESS

The Performance Measures development process consists of five steps:

 Measure Tree (some are already developed as per KSR)

Contributor Activity Measure

Let us see an example, remember that:

Business Needs Factory Current GAPS

Some of 2016 T&P Roadmap objectives:

Note: Same applies to Planned

The process is:

Examples of Activities in OMP:

Business needs a reduction of 7% Production Costs:

Any deviation of the results needs to be linked to the activities.

ANNEX: EXAMPLE OF SDCA AND PDCA

The SDCA and PDCA cycles are repeated

Make the Improvement Plan (PDCA)

1st reduce variability (SDCA cycle)

What to do when we have an outlier?

2nd Improvement cycle (PDCA)

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