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TRACC spearheading Andina’s world class revival with focused team training

TRACC spearheading Andina’s world class revival with focused team training

Executive Summary
After an initial increase in efficiency by implementing TPM, large expansions and changes in management structure at Andina’s Córdoba bottling plant resulted in a slowdown and subsequent standstill, five years after TPM was first implemented. To revive the initiative, the TRACC Operations Best Practices were implemented at the plant following an in-depth performance and practice assessment. Spearheaded by teamwork and team training to establish a solid foundation for the implementation, significant progress was made in the 11 Profit Improvement Projects (PIPs) subsequently selected. These PIPS were not only executed in the pilot areas, but across the entire plant.

 

RESULTS
  • 16% and 38% reduction in unplanned line stops caused by two machines on one of the pilot lines
  • 35% reduction in breakage of returnable bottles
  • 21% reduction in raw material (sugar) loss
  • 72% reduction in raw material (concentrate) loss
  • Standardized DMAIC tools now used to solve chronic, complex problems

 

Situation
The Andina plant in Monte Cristo, Córdoba started with TPM in 2005 on one line and rapidly expanded it to the other lines in the years following. Efficiency increased by approximately 10 percent until a standstill was noticed in 2010. The reasons were, among others, large expansions of the site and changes in management structure. An in-depth performance and practice assessment was performed by CCI in 2011, which uncovered substantial improvement potential.

Action
The journey to world class at the Andina plant in Monte Cristo began in May 2013 with the Site Steering Committee (SSC) workshop and the implementation of the Leading and Managing Change (LMC) TRACC. The improvement program is called SEA: “Sistema de Excelencia Andina”, which translates to “Andina Excellence System”. The word “sea” also means “to be”.

team trainingFour pilot areas were identified in the early stages: production line 1 (soft drinks, returnable refpet bottles
2 liters), production line 6 (soft drinks, one-way PET bottles 1.5 and 2.25 liters), production line 30 (water, one-way PET 0.5, 1.5 and 2 liters and glass bottles 0.5 liters), and the returnable bottles sorting line.

The next step was to train the three Implementation Task Forces (ITFs) to implement the Stage 2 foundation TRACCs. Each ITF has its own area of responsibility for SEA implementation: ITF1 is responsible for the soft drink lines (lines 1 to 10 as well as the bag-in-box line); ITF2 is responsible for the sensitive lines (four water and juice lines); and ITF3 is responsible for logistics processes (sorting, picking, etc).

Because the pilot areas involve many team leaders and shop floor teams, a large group of internal trainers was trained. A total of 11 team trainers and four team leader trainers were certified after an intensive two-week Training of Trainers (TOT) workshop. The team and team leader training workshops commenced in April 2014.

Applying the Teamwork best practice, there was a strong focus on gaining the commitment and engagement of the internal trainers, the champions and the supervisors/team leaders. Before the workshops started, all roles and functions — and particularly those of middle management — were revised. In addition, meeting routines were defined and Leader Standard Work (LSW) was designed.

What I do perceive is ‘movement’. World class practices are not left behind in the training rooms.
– Cecilia Ibarra, Internal Trainer, SEA and Raw Material Planning Supervisor

TRACC spearheading Andina’s world class revival with focused team trainingIn July 2014, six more internal trainers were certified to accommodate the large number of operators to be trained in rollout phases. Two of the most experienced internal trainers were promoted to master trainers. In addition, 16 people were trained in facilitating Profit Improvement Projects (PIPs). With such a strong focus on training, Andina ultimately invested 15,750 training hours involving 445 employees.

A thorough loss and waste analysis was conducted and 11 PIPs were identified. These PIPs were not only executed in the pilot areas, but across the entire plant. The PIPs focused on unplanned line stops, breakage of returnable bottles and raw material loss (sugar and concentrate).

This process is based on creating internal capabilities to generate permanent change agents.

– Ariel Guzman, Program Manager SEA

Implementation challenges
The arrival of high season made the implementation process slightly more challenging — teams found it difficult to make time for 5S clear-up exercises, team meetings and 5 Why problem-solving sessions when demand began to spike. Implementing LSW also proved to be a challenge — it soon became apparent that all levels of leadership must be involved in LSW from the outset.

Other challenges included organizing SSC and ITF progress meetings, as well as the availability of senior leadership during the implementation process.

Results
Team and team leader training has had a positive impact on the shop floor. Almost all production lines have team boards with relevant information. Even lines that were not part of the original pilot have installed boards to chart the progress of various KPIs. Every line has selected two key wastes to monitor during each shift, and the five most significant wastes are monitored on a daily basis. Most of these wastes are unplanned line stops, but material losses are also included. There are also boards that display information on 5S, safety and morale.Victor-Ligorria

The most noticeable progress that the Monte Cristo plant has made so far is in the areas of Teamwork best practices and Profit Improvement Projects (PIPs). Detailed performance reviews, continuous coaching and an improved reward and recognition system have resulted in stabilized work teams. A continuous improvement manager actively manages the PIP hopper, and five PIPs were successfully closed within two to three months. Three new PIPs have subsequently been launched, one of which is at the Andina plant in Bahía Blanca.

The training gave us the tools to not only work in teams, but also to improve our performance and take efficient decisions.
– Victor Ligorria, Mechanical Technician, filling machine

 

The results of the completed PIPs are impressive: unplanned line stops, caused by two machines on one of the pilot lines, were reduced by 16% and 38%, respectively. Breakage of returnable bottles was reduced by 35%. Raw material loss was reduced by 21% (sugar) and 72% (concentrate).

After initial scepticism with regard to the content and structure of the training workshops, I soon changed my opinion when I noticed the energy that was being generated within the training room. The work teams, after a week of training, took up their standard tasks with gusto.

– Santiago Luque, Senior Manager Industrial Processes

Aside from the impressive tangible results of the completed PIPs, there were also many intangible results. A culture of problem-solving has been fostered, with standardized DMAIC tools being used to solve chronic, complex problems. There is a greater focus on clearly defined improvement objectives across the entire organization. Working in ad hoc cross-functional teams has increased internal understanding of business processes, and PIP team members report feeling motivated by the positive results of their projects.

Company Background
The Coca-Cola bottling company, Andina, is active in the following South American countries: Argentina, Chile, Paraguay and Brazil.
As a result of the merger with Polar in 2012, Andina Argentina now consists of three plants. The two former Polar plants are based in Patagonia: the Trelew plant has three bottling lines and the Bahía Blanca site has five lines. The largest bottling plant is situated in Monte Cristo, Córdoba. Furthermore, Andina Argentina owns 35 distribution centers.
The Monte Cristo plant started operating in 1999 with five production lines and has seen numerous expansions over the years. Currently, the plant has 14 production lines (10 soft drink lines and four water and juice lines), as well as a bag-in-box line. The site also has its own sugar refinery. 1,400 people work in the Monte Cristo plant, and Andina Argentina employs 3,200 people in total.
The Andina plants produce over 150 SKUs, including various bottle sizes of soft drinks (Coca-Cola, Fanta and Sprite), fruit juices (Cepita del Valle) and mineral water (Bon Aqua). In 2014, the sales volume in these segments was about 222 million unit cases. Andina Argentina caters to almost 21 million people.

 

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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