Greenfield site reaches full capacity within three months

SCMC greenfield site

Executive Summary
A greenfield site at Coca-Cola Supply Chain Manufacturing Company (SCMC) in Wuhan, China achieved the significant breakthrough of 85% machine efficiency. Furthermore, within the first three months they’d managed to reach full capacity.

 

Situation
With remarkable World Class Manufacturing (WCM) implementation successes across four other sites, the group decided to launch WCM implementation before commissioning the plant. The biggest challengSCMC-greenfield-capacity-success-resultse was to improve employees’ capabilities rapidly. With a new plant, equipment and technology, more than 95% of staff members were inexperienced in operating aseptic beverage production equipment. In addition to the maintenance team, the production team had limited appropriate maintenance skills. What’s more, team members came from different industries and therefore didn’t share a common language. Another priority was to transfer engineering knowledge from the equipment supplier to the workforce.

Ensuring a relatively short period from commissioning the plant to achieving 85% machine efficiency with a competent workforce in place certainly would be no mean feat.

Action
In the initial stage of factory construction, the site core team was established with most team members selected from WCM teams at other sites. Formerly from the Suzhou site, the plant manager had significant TRACC implementation experience. He decided that the site should focus on consolidating the WCM way of work right from the start.

They then organised the Site Steering Committee and Task Force teams, and also created a WCM implementation structure. Following that, they arranged basic TRACC training to make sure that the WCM language and management support through Leading and Managing Change were in place before commencing production. In addition, they set up team building activities to guide teams in vision, code of conduct, and communication approach. After training, the team created a 5S map to identify responsibility areas that allowed staff to take ownership. Meanwhile, based on TRACC guidance, they established a data-collecting procedure for detailed first-hand improvement information.

In the past, new greenfield sites took more than 12 months to reach this level of efficiency. Moreover, after three months the second production line achieved the same performance.SCMC greenfield site

In normal implementations, the focus of reaching targeted machine efficiency would be measuring and reducing the six big losses. However, as the plant wasn’t in production yet, the team’s focus was on standardising operational steps at their workstations. Guided by experts, they were able to eliminate potential losses in many areas of the lines. The three-tier meeting structure — shift-based team, multidisciplinary teams and department heads — was a foundation for developing teamwork and problem-solving across the operations team.

Results
Through the approaches detailed above, the Wuhan plant’s first production line achieved 85% machine efficiency within four months. In the past, new greenfield sites took more than 12 months to reach this level of efficiency. Moreover, after three months, the second production line achieved the same performance.

Wuhan became the first Coca-Cola Bottlers manufacturing site to benchmark such a remarkable achievement. The use of TRACC in this greenfield site was a key factor in reaching full capacity within three months of start up. Large financial savings were realised as the volumes achieved were 12 months ahead of normal WCM implementations.

Company Background
Coca-Cola Supply Chain Management Company (SCMC) was established by the major bottling companies in China to manufacture and supply non-carbonated products for the Chinese and some regional export markets. The company operates through a supply location network of 17 plants. Because the demand for non-carbonated beverages had increased rapidly in the Chinese market, the group established a new plant in Wuhan. This plant was designed with a larger capacity than their other plants, while the buildings were designed and constructed according to Leadership in Energy and Environmental Design (LEED) silver certification standards.

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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