Ningxia Yili Dairy Co.,Ltd.

The Profile of Ningxia Yili Dairy Co., Ltd.

Address: No.121, Rd Yili, Jinji Industrial Park, Litong District,
Wuzhong City, the Ningxia Hui Autonomous Region1Ningxia Yili Dairy Co.,Ltd.

ContentChapter1 Company&Factory Profile .................................................. 3
1.1

Company&FactoryProfile.................................................................. 3

1.2

Factory Overview .............................................................................. 4
1.2.1 Factory flow chart ................................................................... 5
1.2.2 Facilities&products ................................................................. 6
1.2.3 Factory leadership ................................................................... 6
1.2.4 Employees' profile .................................................................. 7

Chapter2 Milestones of the Journey to Excellence............................. 7
2.1

Background of TPM Introduction ..................................................... 7

Chapter3 Achievements ........................................................................ 8
3.1

Tangible Bussiness Achievements ..................................................... 8

3.2 Employees' Engagement& Motivation and Other Intangible2Ningxia Yili Dairy Co.,Ltd.

Achievements .............................................................................................. 9
Chapter4 Key to Our Success ................................................................ 9
Chapter5 Achievements.........................................................................10

Chapter 1: Company& Factory Profile
1.1Company& Factory Profile
1.1.1 An introduction of Yili
Yili Group is China's largest dairy company with the most complete product portfolio,ranking No.1 in Asia and top five in global dairy industry(Fig.1.1). The annual revenueof Yili Group was 12.32 billion Yuan in 2022 (Fig.1.2).The plant applying for the TPM
award is the Ningxia Plant of Yili Group.

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Figure1.1: Yili Group

Figure 1.2：Yili Group’s Revenue

1.1.2 Factory Profile
The output of the plant has been increasing every year since its foundation. Theproduction volume was 1.2066 million tons in 2022, and is expected to be 1.23
million tons in 2023. The output of the plant is the highest among all plants of theLiquid Milk Division.
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Ningxia Yili Dairy Co.,Ltd.

Figure1.3：Factory Output
Ningxia Yili started its construction in 2010 and the first workshop was officially
put into production in 2011. It introduced TPM in 2015. The second workshop was put
into production and TPM activities were kicked off in the same year. The factory won
the Award for TPM Excellence (Category A) in 2018. The third workshop was put into
production and TPM activities were introduced in May 2020, and in 2021 it won theAward for Excellence in Consistent TPM Commitment. (See Figure1.4)

Figure1.4：The Journey of Our Factories
1.2 Factory Overview
1.2.1 Factory flow chart
The production processes in the factory follow this pattern:5Ningxia Yili Dairy Co.,Ltd.

milking in the ranch → reception of raw milk → milk cleaning → Pasteurization→ Mixing ingredients → UHT sterilization → Sterile filling → Packaging →Warehousing → Delivery（See Figure1.5）

Figure1.5：Flow Chart
1.2.2 Facilities& products
There are altogether 53 production lines and 10 machine models.
It has the largest number of models across Business Division.
All products of this factory are middle-to-high end products of the division.
（See Figure 1.6）

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Ningxia Yili Dairy Co.,Ltd.

Figure 1.6：Facilities& Products
1.2.3

Factory leadership

The factory is under the leadership of General Manager. With the establishment ofSteering Committee, TPM activities were instructed in an orderly manner (SeeFigure1.7）.

Figure 1.7：Factory Leadership

1.2.4

Employees’ profile

The plant hired 1,929 employees. 79% employees are line workers. 84%
employees have worked in the plant for more than 2 years. 79% employees are college
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Ningxia Yili Dairy Co.,Ltd.

graduates or above. 54% employees are less than 30 years old. As a result of processoptimization, development of multi-skill workers, and introduction of automaticmachines, the number of employees is decreasing.(See Figure1.8)

Figure1.8：Employees’ Profile

Chapter2 Milestones of the Journey to Excellence
2.1 Background of TPM Introduction
The factory's vision is “To Build A World-class Health Food Manufacturing Plant". Facing internal and external challenges such as competition in the industry and thelack of skilled workers, the factory decided to introduce TPM activities to improve thefactory's operational performance.
The factory introduced some TPM tools and concepts in 2014 and officiallyintroduced TPM in 2015. It won the Award for TPM Excellence (Category A) in 2018
and initiated the Supply Chain Management Pillar in 2019. In 2021, it won the Awardfor Excellence in Consistent TPM Commitment. It started the CM Pillar in 2022 andplans to apply for the Special Award for TPM Achievement in 2023. (See Figure 2.1)

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Ningxia Yili Dairy Co.,Ltd.

Figure 2.1The Factory’s TPM Journey

Chapter3 Achievements
3.1 Tangible Business Achievements
Through continuous TPM activities, our performance has been improved
significantly. Compared with the phase of Award for Excellence in Consistent TPM
Commitment, profit margin increased by 11%, output value increased by 16.5%. There
was no environment accident in 9 years, and market claim rate decreased by 15.6%.
(See Figure 3.1)

Figure3.1：Tangible Achievements
9Ningxia Yili Dairy Co.,Ltd.

3.2

Intangible Achievements
Up to now, employees have submitted 130,175 suggestions, and 100%

employees have been involved in TPM activities. (See Figure3.2)

Figure3.2 Intangible Achievements
Chapter Key to Our SuccessThe factory has set clear strategic guidelines;

The factory’s leadership has made TPM the only management model;A data collection system has been established and improved to identify all types oflosses;

Based on the goal of "zero" loss, we apply high-level tools and continuously carryout relevant activities;

Promote TPM activities by raising the awareness of personnel to improve
themselves;



Continuously strengthen the ability of employees to identify and improve problems.

10Ningxia Yili Dairy Co.,Ltd.

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Chapter5Achievements
TPM Award Assessment Achievement Sheet

Company & plant name

Ningxia Yili Dairy Co., Ltd.

TPM Slogan/Objectives

TPM Contribute to the continuous improvement of organizational performance

Category

Index

Unit

Enter the year →BM(TPM Started
or last timeawarded)Actual Status

Target2015

2023（1-12）

2023

S

Number of accident

Cases/ year

300

S

Number of first aid

Cases/ year

200P

Productivity

Ton/Person

29.6

52.1

51.7

POEE
(or Overall Plant Efficiency)

%

66.20

83.08

82.30

P

machine stop
Breakdown and Short stop rate time/ Availabletime * 100%

10.07

2.31

2.42

8.02

11.4

20.51

PMTBF

Hour

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P

MTTR

Hour

0.70

0.33

0.43

Q

Claim rate

PPM

0.336

0.266

0.272

Q

In-line defect rate (scrap)

%

0.049

0.021

0.022

C

Cost Per Ton

Cost/Ton

6242

6375.47344

D

Lead time

Days

7.10

5.98

6.11

D

Perfect Delivery

%

93.86

99.63

98.60

S

Lost Time Accident Rate

Lost Time
Accidents /Total Worked
Hours of Last
12 Months *1.000.000

0.100900M

Number of Employee
Suggestions

Number/year3851

21375

9905

Note:Have the indices covered all important items related to PQCDSM measures being undertaken in theentirety of the subject to be assessed. Note all indices in the TPM Activity Report. Where your specificindices vary from those above attach relevant data.

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