伊利集团龙游伊利乳业有限责任公司

Introduction to Longyou Yili Dairy Co.,
Ltd. under Yili Group.

Address：Number 3, Qinshan Road, North Development Zone,Longyou County, Quzhou City, Zhejiang Province.

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伊利集团龙游伊利乳业有限责任公司

Contents
Chapter 1 Introduction to Yili Group & Longyou Company................................. 3
1.1 Introduction to Yili Group ....................................................................................3
1.2 An overview of Longyou Company......................................................................3
1.2.1 A brief introduction to Longyou Company................................................3
1.2.2 Organizational Structure............................................................................4
1.2.3 Products & Equipment...............................................................................5
1.2.4 Technique...................................................................................................6
1.2.5 Equipment..................................................................................................6
1.2.6 Staff Make-up............................................................................................6
Chapter 2 TPM: a milestone on our journey to excellence......................................7
2.1 Reasons for introducing TPM...............................................................................7
2.2 Development of TPM in Longyou........................................................................8
Chapter 3 TPM’s effects..............................................................................................83.1 Tangible Growth in Operation Performance.........................................................83.2 Intangible Results..................................................................................................9
Chapter 4 The Key to TPM’s Success in our Factory...............................................9
Chapter 5 Achievements............................................................................................102

伊利集团龙游伊利乳业有限责任公司

Chapter 1 Introduction to Yili Group & Longyou Company
1.1 Introduction to Yili Group
Yili Group finds itself among the top echelon of the global dairy industry, and itis the top leader of Asian dairy industry for a second year. As the largest dairy
enterprise in China with the most comprehensive product categories, Yili Group hasscored in 2021 a total business revenue of over 110.595 billion yuan, making it thefirst dairy enterprise ever to have a revenue over 100 billion yuan. Yili Group has 5business divisions, including liquid milk division and milk powder division, andLongyou Yili Dairy Co., Ltd. stands as one of the subsidiaries of liquid milk division(see Figure 1.1)

Figure 1.1Yili Group
1.2 An overview of Longyou Company.
1.2.1 A brief introduction to Longyou Company
Longyou Yili Dairy Co., Ltd. under Yili Group is located in Longyou County,
Quzhou City, Zhejiang Province, China. It covers an area of 103,300 square meters witha total investment of 550 million yuan. The factory was put into operation in May 2015,
and TPM was introduced during the same period. Since 2016, 9 pillars have been
introduced successively. In 2020, the factory met the examination criteria of TPM
Excellence Award (Class A) by virtue of independent learning, and the factory is tochallenge the TPM Sustained Excellence Award in 2023. (See Chart 1.2.1)
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伊利集团龙游伊利乳业有限责任公司

Figure 1.2.1 Longyou Company
1.2.2 Organizational Structure.
Longyou has set up 12 departments, including safety department, technology
department, production department and equipment department（See Figure 1.2.2）

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伊利集团龙游伊利乳业有限责任公司

Figure1.2.2 Organizational Structure
1.2.3 Products & Equipment.
The factory has 4 UHT production lines, 8 filling machines and 8 packingmachines, with a production capacity of 728 tons/day. The products produced by thefactory involve 6 items under 2 series, fermented milk series and milk beverage series.
(see Figure 1.2.3）

Figure 1.2.3 Products & Equipment

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1.2.4 Technique
Factory production process: milk acceptance →milk clarification → pasteurization →batching →UHT sterilization → aseptic filling → packaging → storage → delivery（See Figure 1.2.4）

Figure 1.2.4 Technique1.2.5 Equipment
The factory classified its equipment into A, B and C categories according to thedimensions of safety, quality, cost, efficiency and assets, and sorted out 261 sets ofequipment in total. Among them, Category A devices (24) accounts for 9.20%, Category
B devices (34) accounts for 13.03%, and Category C devices (203) accounts for 77.78%.
(See Figure 1.2.5)

Figure 1.2.5 Equipment
1.2.6 Staff Make-up
We have 536 staff members in total, 50.9% of which is made up of direct labor.
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伊利集团龙游伊利乳业有限责任公司

Staff members no older than 30 years of age accounts for 38% of the total, and 41% ofour staff has received an education at least in Junior College, 63% of the staff has aworking age longer than 3 years. (See Figure 1.2.6)

Figure 1.2.6 Staff Make-up

Chapter 2 TPM: a milestone on our journey to excellence.
2.1 Reasons for introducing TPM
Yili Group has a vision of becoming the world's most trusted provider of healthfood, and guided by that vision, Longyou company sets to build itself into a worldclass health food manufacturing factory, and it has developed a strategy after athorough SWOT analysis: Team Building, Consolidation of Foundation, QualityAssurance, Reduction of Losses. To ensure the realization of the strategy, the factory
has introduced into it TPM, an advanced management system. (See Figure 2.1)

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伊利集团龙游伊利乳业有限责任公司Figure 2.1 Factory Strategy.
2.2 Development of TPM in Longyou
In May 2015, TPM activities were partially introduced into the Longyou factory.
In 2016, we entered the stage of full implementation. The factory launched in order 9pillars, namely FI, TD, AM, PM, QM, SH, ENV, OM and EM, and carried out
improvement campaign. The factory plans to challenge itself for the TPM Sustained
Excellence Award in 2023 and continue to challenge for JIPM awards at all levels in
the years to come. (See Figure 2.2)

Figure 2.2 development of TPM in Longyou
Chapter 3 TPM’s effects
3.1 Tangible Growth in Operation Performance（See Figure 3.1）
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伊利集团龙游伊利乳业有限责任公司

Figure 3.1 Tangible Results
3.2 Intangible Results①A better sense of cooperation: pillar activities have enabled closer cross-departments
cooperation② A growth in staff competence: TPM has helped staff to cultivate a systematic
thinking and enhanced their ability to solve problems.
③ A boost in morale: TPM has helped improve the production condition and a boostin morale and confidence.

Chapter 4 The Key to TPM’s Success in our Factory

The management’s identification with and support to TPMA closer and more systematic cooperation among departments.



An integration of TPM activities into daily work routine.

A constant upgrading of TPM methodology and tools.

TPM incentive mechanism set up to involve all of the staff.

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Chapter 5 Achievements
CategoryIndexUnit

Enter the year →BM(TPM Started orlast time awarded)

Actual Status

Target

2016

2022

2023

S

Number of work-related
accidents requiring days offwork

Cases/ year

200

S

Number of work-related
accidents not requiring days
off work

Cases/ year

700

P

Productivity for main
products

Parts/Operator
hours///POEE(or Overall Plant Efficiency)

%

63.86

85.64

86.49

P

Availability

%

64.9

86.3

87.1

P

Performance Rate

%

99.45

99.73

99.75

P

Quality Products Rate%

98.94

99.5

99.55

P

Number of breakdowns

Breakdowns/ year

5032

1331

1210

PMTBF

Hour3.58

15.58

16.66

PMTTR

Hour

0.76

0.5

0.42

Q

Number of customer
complaints

Number/year

91

4326

Q

In-line defect rate (scrap)

%

0.78

0.044

0.03

Q

In-line defect rate (rework)%///C

Cost index

Cost/Unit
Cost/Kilogram

100

90.93

90.65

D

Production Lead time

Days

15.6

7.2

6.5

D

Delivery performance

%

100

100

100

Number ofoccupational
accidents withleave for 1 000
000 worked hours

1600

Number/year

4401

7091

7800

S

Frequency rate

M

Number of Employee
Suggestions

10