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TRACC assisting Heinz with global process standardization

process standardization

Executive Summary
To help drive sustainable long-term success, global food manufacturer HJ Heinz required a solution that would allow best practice management across multiple plants, integrating plant-specific improvement initiatives such as Six Sigma, Lean, WCO and TPM. Having selected the TRACC Integrative Improvement System as a basis, the Heinz Global Performance System (HGPS) was developed over 18 months to integrate its global supply chain, rationalize the manufacturing footprint, and drive operations excellence initiatives. A major focus is on changing behavior at the execution point. Heinz started with four pilot sites in North America and one site each in Italy, Spain, the UK and the Netherlands. As the program grows, Heinz should soon see a shift from a leadership-driven program to an employee-owned one.

 

Situation
Bent on planning, innovating and navigating activities for sustainable long-term success, Heinz researched a system that would allow global standardization of its operations excellence processes, while allowing regional implementation flexibility. In short, it needed a system enabling best practice management across multiple plants, integrating its regional/local improvement initiatives, such as Six Sigma, Lean, WCO and TPM. Developed over 18 months, the Heinz Global Performance System (HGPS) includes integrating its global supply chain by better leveraging direct and indirect procurement, rationalizing the manufacturing footprint, and driving operations excellence initiatives. By introducing TRACC, it is also aiming to reduce short-term gains dependency.

The group’s top 15 power brands account for more than two-thirds of its annual sales.

Action
Each of the company’s factories is at a different stage, but foundations have been built by introducing the Leading and Managing Change TRACC. Time has been spent with management to help them understand their role in the change program.

Thereafter the company will expand internal skills to move the process forward. It’s about sustainability — engaging and mobilizing change through the people. A major focus is on changing behavior at the execution point.

Heinz’s fastest-growing emerging markets are Russia, India, China, Indonesia and Poland, which represent more than 40% of the global population and 15% of the world’s GDP growth. The TRACC, business improvement system is being implemented in all these countries as well as many others from across North America, Europe and Australia.

Results
Commitment has been the key. It started with senior leadership and is being pushed down through the organization. As the program grows, Heinz should see a shift from a senior leadership-driven program to an employee-owned one.

Heinz started with four pilot sites in North America and one site each in Spain, Italy, the UK and The Netherlands. At the time of going to print Heinz process standardisationhad rolled out the TRACC Integrative Improvement Solution to more than 20 sites across the globe.

Company Background
As one of the world’s largest food manufacturers, Heinz is a US$10.6 billion global company, enjoying number one or two market share in more than 50 countries. The group’s top 15 power brands account for more than two-thirds of its annual sales. Founded in Sharpsburg, Pittsburgh, Pennsylvania in 1869 by entrepreneur Henry John Heinz, it employs approximately 35,000 people around the globe. Heinz’s Ketchup and Sauces, Meals and Snacks and Infant Nutrition are sold in most countries all over the world. Adapting to changes in the global economy, the organization focuses on the five “Cs” — consumers, costs, commodities, cash and currency. As such, it’s geared to make swift tactical adjustments, innovate for value-conscious consumers, emphasize margins and cash, and invest in the business continually.

Disclaimer
This resource has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained herein without obtaining specific professional advice. Competitive Capabilities International (CCi) does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this resource or for any decision based on it.

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