Sichuan New Huaxi Dairy Co., Ltd.

Award for TPM Excellence Category B
Sichuan New Huaxi Dairy Co., Ltd.
1. Organization Overview
Founded in 1982, New Hope Group has a history of 41 years and have been oneof the largest private enterprises in China. Conducting business in dairy, finance, chemical,real estate, agriculture and animal husbandry, medical, etc., New Hope Group has more than
600 subsidiaries in more than 30 countries and regions around the world, with around 135,000
employees. In 2022, the whole group's revenue exceeded 270 billion yuan. We also ranked
363rd in the "Fortune Global 500" list 2023, officially released by Fortune Magazine on
August 2, 2023.
The Dairy Division was established in 2001, with 16 subsidiaries. In 2022, theproduction yield was 1 million tonnes, with the production value exceeding 10 billion yuan.
Sichuan New Huaxi Dairy Co., Ltd is one of those subsidiaries.
Located in Xiandu District, Chengdu City, the plant was relocated and put into operation in2015, covering an area of 117,300 square meters, with an investment of 620 million yuan. Its
design production capacity is 600 tonnes/day. We have two production workshops: onefor low temperature and another for room temperature production. Workshops consistof 5 different sections of milk collection, pretreatment, filling, packaging andwarehouse respectively, with a total of 29 filling production lines.

The plant's organizational structure are as follows: the Plant Director,Safety Department, Production Department, Equipment Department, Quality &Technology Department, Finance Department, Administrative & HR Department,Procurement Department, PMC production planning, material control and TPM
offices. The total number of employees is 438.
In order to meet market demands, we adopt a diversified production scheme,involving 145 SKUs.
Our products are sold to more than 6,000 locations in Sichuan, Tibet and Chongqing etc.,

Sichuan New Huaxi Dairy Co., Ltd.
through refrigerated transport. Our main customers include supermarkets anddistributors such as Ito, Hema, Hongqi chain, and Yonghui.

The company's operating status are as follows. Since 2020, our output has
been increasing year by year, reaching 111,400 tonnes in 2023, realizing a profit of 120
million yuan.

2. Milestone on the Journey of Manufacturing Excellence
Sichuan New Huaxi Dairy Co., Ltd.'s journey of development is illustrated as follows.
The plant was relocated and put into operation in 2015. We have acquired certifications such
as HACCP, GMP and ISO9000/14000/22000, etc. In 2017, we successfully passed theassessment for the National Quality Engineering award, becoming the first dairy plant inSichuan Province that produces high-quality milk. We introduced TPM in 2020 and improved
our production site management standards by implementing 5S and DMS; We launched AMpillar and AM pilot team in 2021, and E&T, FI, QM, PM, SH and ENV pillars in May 2021.
In June 2023, we passed the first stage assessment for the Award for TPM Excellence. InDecember 2023, the second stage assessment was conducted.
Through the introduction of TPM pillars, we have formed the cross-management ofpillars and departments. In our daily reviews and monthly steering committee meetings, wereview, analyze, and resolve by looking into our KMIs and KPIs. In order to achieve the goalof zero accidents, zero defects, zero short stops, zero failures and zero losses across the wholeplant, by implementing review on all levels, problems are solved layer by layer, andimprovements are continuously carried out using the method of overlapping small groupactivities.
For the TPM's main activities and the management of pillar activities: We have formed apillar management process, and each pillar carries out distinctive pillar activities tied to ourplant strategies. Through Pillar Meetings, we manage our activity processes and develop
Pillar Advancement Plans. And we inspect activity outcomes using Pillar Kanbans.
Since the launch of TPM, we have won the following awards: the second prize of the Sichuan
Provincial Patent Award, the Chengdu Smart Factory, the Top 100 Manufacturing Industries,
the Top 100 Private Enterprises, the Meritorious Enterprise Award of the National Nutrition

Sichuan New Huaxi Dairy Co., Ltd.
Program for High-quality Dairy Project, and the National Green and Low-carbon Factory
certification.

3. Benefits Achieved
Through in-depth TPM activities and the use of professional tools during problem
analyses, employees' personal ability has been greatly improved; the sense of collaboration
between positions has changed for the better, and work efficiency improved consequently;
employees' awareness for quality has been improved by continuing to carry out adverseactivities; and our work environment has been improved continuously, which has been highly
appreciated by employees. Our participation rate has reached 100%, and the company's
external image has also improved. TPM activities are unanimously praised throughout theplant. Since 2021, production volume and profits have been increasing.
Categ
orySSSPPQQCC

Kick off/TPM
Started (or lasttime awarded)（2020-12）

Actual Status（2023-12）

Index(Calculation Formula)

Unit

Safety index

Accidents per
1,000,000
operator hours

00

Cases/ year

00

Cases/ year

00%

41.83

73.14

Breakdowns/year

72

39

Number/year

762363

‰
%

1.9
2.61

0.87
2.38

29.66

34.6

Number of work-related
accidents requiring days
off work
Number of work-related
accidents not requiringdays off work
OEE
(or Overall Plant Efficiency)
Number of breakdowns
Number of customer
complaints
In-line defect rate, scrap
Milk waste rate
Labour productivity percapita

Tonne/month/personSichuan New Huaxi Dairy Co., Ltd.
C

Maintenance cost

Yuan/Tonne

111.3

83.47

DDelivery performance
Autonomous MaintenanceTechnician
Planned MaintenanceTechnician
Number of multi-skilledworkers
Number of Employee
Suggestions
Environmental/safetyincidents and accidents

%

99.61

99.86

Persons025

Persons010

Persons

1030

Number/year

176

440

Cases/ year

00M
M
M
M
E

4. Key of our Manufacturing Excellence
Expand the company's goals using a top-down approach and thoroughly implement theplan; combine the activity objectives with our business objectives; strong support andparticipation of the company's leaders; advance according to the steps and structure of TPM;
have an agency responsible for promoting TPM; carry out a variety of activation activities;
training, guidance; full participation in continuous improvement activities and regular result
review to meet the plant strategy.

Future plans: Continuous equipment efficiency improvement, focusing on reducing
minor stoppages and recurrent failure losses, and realizing 0-failure machines; launch OM
and EM pillars in 2024 to meet requirements for the Award for Excellence in Consistent TPM
Commitment.