Human Resources

Factory HR Overview

1 © Perfetti Van Melle 2017

Factory HR Vision 2018

To become The
Best Factory in
BU SAMEA

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Key HR Strategies

Strategic Human Transformation & Change Process/System/ Employee Engagement

Resource Productivity

- Talent Management - Capability Building - Compliance - Compensation & Benefit

- Industrial Relationship - - CSR - Reward & Recognition

Change Management
Management - Security Management - Employee
- Organization Design Communication
- Headcount Optimization
Study

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 Key Accomplishments
YTD 2017

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Strategic Human Resources

Talent Management – SFEs

 Introduced and driving Multiskilling Program
 Introduced alternate Manpower Supplier (E&C) contractor for own SFE

Industrial Relation
 Visiting SFEs house on various occasions in order to further strengthen relationship
 Developed good relationship with the Labor Directorate, Law Enforcement
agencies and the neighborhood
 Regular one – to – one sessions with the SFEs

Organization Design
 Swapped roles and responsibilities in Distribution and Stores function

5
Training and Change

Capability Building Programs

 Focused majorly on Employee Skill Development

- YTD 2017, total 68.5 hours functional training has been
provided to 218 own SFE (0.32 man hour)
- Also provided training on “Team Building and Positive Thinking”
to own SFEs
- Conducted "Awareness Program on Woman worker" working at
Night Shift
- Developed 28 Security guards through training on 10 types of
Security Strengthening protocol

Change Management

 Current suppliers,
 Rahat Corporation for Casual
 Environmental and Cleaning for Direct Casual
 Marine Security Service for Security Service
 Standard Cleaning Services for cleaning service
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Process / System / Productivity

Compliance

 Reinforced and Institutionalized “CoC & Whistleblowing Policy”

 Implemented New Labor Laws
 Moved all the casual employees through 3rd party management
 All manpower supplier obtained Labor Supplier License to abide by the Labor Law

CSR

 Supporting 4 schools near the Factory area

 Provided salary to 12 teachers and 1 cleaner
 Periodically conduct Free Health Camp

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Process / System / Productivity

System & Process Development

 Conducted Headcount Optimization Study in a continuous basis
 Strengthened Security System at the Factory
 Brought down OT
 Ensured timely, industrious manpower, in spite of many adversities

Organization Development

 Controlled deployment of under age workforce

 Improved Factory GMP Score from 78% to 80%
 Introduced “Female Workers” in the Night Shift and obtained approval from
Labor Inspector
 0 (Zero) factory disruption days
 Introduced 240 working days
 Periodically conducted Safety Week and Quality Week for awareness
 Introduced Factory Guest House

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Employee Engagement

Compensation & Benefits

 Provided increment above the market average in 2016

 Introduced Contingency loan policy for SFEs
 Introduced Maternity Leave of 20 weeks
 Revamped Insurance Benefits with a 296% increase
 Other facilities
- Improved Canteen facility
- Improved Laundry facility
- Improved Change Room facility
- Introduced new prayer room
- Introduced new Training room
- Introduced driver’s rest room
- Introduced Personal hygiene protocol
- Introduced Safety shoe protocol
- Shoe rack, bench, slippers & floor mat facility
- Upgraded smoking area
- Upgraded factory work station
- Established new cycle stand

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Employee Engagement

Reward & Recognition Program

 Introduced “Employee of the Month” – SFE team

 Introduced Long Service Award (10 years)
 Continuing Star Performers Awards and PPS

Engagement Activities

 Conducted SYV 2015 and 2017

 Worked with concerned functional managers based on SYV Results 2015
 Adhered and executed Engagement Programs as per Engagement Calendar

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People Matrix – YTD 2017
Management Staff - Total 60 SFEs - Total 216.5
160 147.8
140
120
100
80
60
40 35
20 12 9 11 11 7 9 5 5 5 5
1 2 1 2 1 3 3 1 1
0
Production Maintenance Quality Depot Store Eg.Store ETP Project SCM Finance IT HR

SFEs Yearly Average Attrition (In percentage)

25%

20% 21%

15%

10% 8% 9%
5%
2% 4%
0%
2013 2014 2015 2016 YTD 2017
People Strength ( YTD June 2017 )
Direct Labor
218
Total SFEs
Total SFE 180 Direct Labor
217 175
170 175
216 216.5 165
160
215 155 46%
50% 50%
214
216.7 150 54%
145
148
140
213
135
130
212
Own Casual Own Casual Own Casual Own Casual

Gender (own + casual) Gender (own) Gender (casual)

17% 5%

30%

70%
83%

95%
Female Male Female Male
12 Female Male
 Speed – Impact – Innovation (Factory)

Manpower Deployment Productivity Man Hour / Ton Absenteeism Days / Per Man / Per Year Factory Disruption Days
350
68
300 1 3
66
67 1
0.48 2
250 2
64
200 62
0
63 0
2
301 296 323 60
150 291 1
100
237 58 0 0.10 0.10
56 58 57 0 1
50 54
0 0 0
0 0
0 52 2015 2016 YTD June'17 2014 2015 2016 YTD
Bud 2016 Actual Bud 2017 Avg YTD Jun'17 2014 2015 2016 YTD P6 2017
2016 June'17 2017

Casual Supply Trend (Average) SFE OT Hours /Per Man/Year

40
180
157 158 158 152 154 35
160
160 159 158 158 30
140 152
120
120 25
126 Savings from Guest House
100 20
80 36 YTD June 2017
15 30 30
60 25 23
10 19 21 18 20 BDT 615,558
40
20 5.69 5 11
2.75 1.30 0.13 0.00 3.72
- 0
Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17
14 15 16 .. 7 7
'17 7 7 7
20 20 20 n. n '1 b '1
ar r '1 -1 -1
Ju Ja Fe M Ap ay J u n
Requisition Supply Shortage D M
YT
 Key Imperatives – BTG 2017
Transformation & Change
- Further continue conducting
trainings according to the
Training Calendar
14 © Perfetti Van Melle 2017
Strategic Human Process/System/ Employee Engagement
Resource Productivity
- Continue with - Further improve on, - Continue with the
Multiskilling Program Hygiene and Leave Reward & Recognition
/Absenteeism Programs and
- Follow up on the - Engagement Programs
Continue with HC
Development Plan of the as per the calendar
Optimization Study
Key Employees
- Reduce OT hour by
- Continue with Industrial utilizing Multi Skilled
Relation Program talents
- Develop Digital
Documentation by end
of December
- Continue with CSR
Program
Key Challenges

Volatile IR Scenario and Recent Terrorism Activity

Implementation of New Labor Laws specially at the 3rd Party end

Attracting Technical Talents specially in Engineering function

Need to further improve RSP

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 Thank You

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