1. Company, Plant/Factory Profile
Mondelez International, Inc., a global snack company was separated from Kraft Foods inOctober 2012. Kraft Foods began in 1903 with James Lewis (J.L.) in Chicago, Illinois. Now
Mondelez International is operating is in 165 countries and is the world’s largest snack company,No. 1 global leader in Biscuits and No.2 Largest Global leader in Chocolate and Candies &Gummies. Also, Kraft Foods Group, Inc., is operating as a North American grocery products
company.
Mondelez Brazil has Two Plants, Vitoria de Santo Antão and Curitiba. Is competing in the 4Most important markets, being the 3rd largest food company in Brazil, as well as we are a leader
or co-leader position in 4 categories: Chocolate, Gummies & Candies, Powder Drinks and Meals(Cheese and Groceries). Curitiba Plant have had JIPM TPM Consistence Award in 2021. We, VSAPlant, are sharing, and are communicating with their efforts as a model plant in Brazil and Latin
America.
The VSA plant is in the state of Pernambuco, 50km away from the state capital Recife, it wasbuilt in 2009 with an investment of R$100 million in a total area of 300,000 m² and 59,825 m² of
built area, and originally with five production lines. Currently, 42% of the city lives in extreme
poverty and the per capita income is R$30 reais, which makes the plant's relevance even greaterfor the city. Mondelez employees represent 20% of the city's economically active population.

VSA plant has 1341 employees (December 22 Update), has a production capacity of 138
thousand tons/year and produces a volume of 127 thousand tons/year, being the 3rd largest
operation in Mondelez Global Operations. The organizational structure is formed by one director
and eight managers who lead the areas of: Manufacturing, quality, maintenance, TPM, humanresources, engineering, safety / health and environment and logistics.

The factory produces a variety of 62 SKUs in nine production lines: Five lines are dedicatedto biscuits, producing brands such as Oreo, Trakinas, Lacta Cookies, Belvita, Chocolícia and Club
Social and four lines dedicated to enrobed wafers chocolates such as Bis, Sonho de Valsa and Ouro
Branco.

2. Milestone on the Journey of Manufacturing Excellence
In order to improve our results and become even more competitive in the market, weunderstand that the best path would be to implement an excellence system: Integrated Lean Six
Sigma Program (IL6S). After the decision and declaration by Mondelez Brazil, we started thetraining with the leadership and extensive communication reinforcing that from that moment on
IL6S would be part of the plant's routine. IL6S is composed by three methodologies: Lean Six
Sigma, TPM and HPWS (High Performance Work System). The official kick off was in 2014 andcovered plant’s leadership and operational team.

After that, we’ve defined the model line (Bis 1 Line) where the methodology would be applied
first. We have also defined all eight pillar leaders (Autonomous maintenance, Focused
improvement, Planned maintenance, Education and training, Initial control, safety, health andenvironment, Quality maintenance and TPM office). To guarantee success we’ve structured thesepillars from various areas teams composed by specialists, supervisors, and operational team. We
have also elaborated IL6S master plan and rollout for autonomous maintenance.
Currently we have TPM in 100% of the plant through fourteen autonomous maintenanceteams distributed in nine production lines and five processes areas and our model line is in AM
step 6. An important point of our excellence journey is the definition of objectives and goals
through KPIs to be achieved at each given period, which we call CBN (Compelling Business Need),
where these goals are shared with the entire plant and illustrated in many departments of the factory.
The strategic actions to achieve these KPIs are structured and deployed through Hoshin Kanri. TheKPIs evolution is monitored through the plant's balance scorecard.
In addition, we highlight the importance of starting improvement cycles led by the focused
improvement pillar, which identifies, measures, and eradicates the plant's biggest losses throughmethodologies such as SMED, 12 Kaizen steps, DMAIC, PM Analysis, etc. The plant performs
two improvement cycles per year, where we prioritize the losses to be attacked through the loss
trees, we form the work teams and they eradicate or drastically reduce the loss, creating anenvironment that leads us to the Zero Loss Journey: Zero accidents, zero defects, zero breakdowns.
The evolution of 5S, plant's indicators, as well as the development of people during this journey,
was driven by the skills matrix that is currently implemented in 100% of the plant. We share ourknowledge through the OPL tool (one point lesson).
To analyze the effectiveness of the program, the pillars carry out a monthly assessment toverify their evolution and the result is shared with leadership at the weekly TPM Governancemeeting.
3. Benefits AchievedSince implementing in TPM, VSA plant is prioritizing to improve Safety, so MAT TAR(Moving Annual Total Accidents Rate) to 0.33 in 2022 from 5.8 in 2014 by half. Also, we arecontinuing to Zero Lost Time Accidents for over 860 days. As well as GE (Global Efficiency),
which is the common KPI in Mondelez Global, for measuring OEE + Asset Utilization, improveto 83.5 % in 2022 from 60.3% in 2014, as a result, Conversion Cost was improved by half. Those
improving speed is beyond the average in Mondelez Global.
How do we get the good results. Plant Leadership Team clearly shows Vision, 100% Shopfloor People take part in TPM and use JIPM Step-by-Step Process, it is not only Autonomous

Maintenance but also All other pillars. Most significant results is that People have changed
Mindset, create more better idea and behave routine task with high moral.
4. Key of our Manufacturing Excellence
The key to our success in the TPM journey lies on our employees, we want our people tobecome more autonomous, so that we can achieve better results, guaranteeing the safety of theworkplace environment and the quality of our products for our consumers and costumers.
A strength of the plant is the commitment of the top and middle leadership maintaining theprogram, demonstrated through support for activities led by the TPM pillars and clarity incommunication. We can also highlight that the company's strategic plan comes from the board andis promoted to all employees from the top to bottom. Thus, leadership shows what must be doneby its own example. This is very impactful in terms of defining the clear vision. This journey led
us to be elected as the best Mondelēz Latin America Plant in 2021.
More than maintaining TPM activities throughout the company, now it's time to make TPM apractice outside the factory walls. We want our suppliers and partners to be involved in TPM aswell as we are. With that said, we want to use the tools and processes as facilitators of thecompany's vision: to achieve a stable and reliable Supply Chain.

Achievement Record
Company & plant name

Mondelez Brazil LTDA – VSA Plant

TPM Slogan/Objectives

Integrated Lean Six Sigma – Identify, eradicate and inspire.
Objective: Achieve a stable and reliable Supply Chain.

CategoryIndex(Calculation Formula)SMAT TAR (Moving Annual Total &Total Accidents Rate)

Unit
Number of accidents last 12 months(Total) / hours worked last 12 months *Bech Mark(Baseline)
Year(2014)
100%of Reduction/Increasing(2023)(2023)-96%

Target2023(2014)
100(2023)-97%-94%(2015)
100(2023)+3555%+3211%-92%

200.000,00

SMAT TIR (Moving Annual Total &Total Incidents Rate)

Number of accidents last 12 months(Total) except First Aid Cases last 12months / hours worked last 12 months *200.000,00

Productivity for main products(Output/FTE)
PVolume (weight in Ton) / Total labor
utilized on conversion contributing to theproduced volume of the period (includes
all employees, indirect, internal andexternalP

OEE (Overall Plant Efficiency)

Operating Time / Production hours (%)(2014)
100(2023)
+41%

+38%

GE (Global Efficiency)

Operating Time / Available Hours (%)(2014)
100(2023)+40%

P

Number of breakdowns packagelines

Number of breakdowns package lines /(2019)100(2023)
-52%

-57%

P

Breakdowns Frequency Ratepackage lines

Number of breakdowns / hours used(2019)
100(2023)
-67%

-78%P

Number of breakdowns fromoriginal 4 lines

Number of breakdowns from original 4(2019)100(2023)
-69%

-83%

P

Breakdowns Frequency Rate fromoriginal 4 lines

Breakdowns Frequency Rate from(2019)100(2023)
-69%

-87%

MTBS (Mean Time Between Stop)

Uptime / Number of breaks + number of(2018)
100(2023)
+973%

+691%

PP
QQ
Q

yearlines / year

original 4 Lines / hours usedsmall stops + operating losses+39%

Number of customer complaints

Number(2019)100(2023)
-76%

-80%

Number of consumer complaints

Number(2019)100(2020)
100100(2015)
100(2023)-54%(2023)-89%-12%(2023)
-41%

-33%

(2015)
100(2023)
-79%

-61%

Average run length (Days)(2015)
100(2023)
+13%

+32%

Scheduled Production – Actual(2015)
100(2023)
-1,7%

-2.0%

In-line defect
rate

Scrap
Rework%%Total plant operating costs per Ton of

-90%
-8%
-41%

C

Conversion Cost (M$/Ton)

CYieldDDays Between Next Run (DBNR) Number of days from the end of thelast run until the start of the nextrun.

D

Compliance to Schedule (CTS) Variance of actual production
versus scheduled by item / week.

M

Number of Ideas per person permonth

Number of ideas/Headcount /months(2015)
100(2023)
+176%

+163%

Absenteeism (%)

Number of working hours lost due to(2015)
100(2023)
-48%

-39%

Production Volume (M$/Ton)(Raw material losses in R$ + Package
material losses in R$)/production volumein R$

M(Production by Item) / Scheduled
Production for All Items for the Week
*100%

Absence / Total hours worked