Company Profile
Sigma Alimentos Lacteos S.A. de C.V.
Celaya Plant 23034, Guanajuato, México
22 January 2024
“Award for Excellence in Consistent TPM”

1. PLANT PROFILE
1.1. Founded in 1974, ALFA is a Mexican company of worldwide recognition. We manage a portfolioof leading global businesses in the food and petrochemicals industries.

Leading producer of PTA, PET & EPS worldwide.

Leading multinational food company, that produces, commercializes, anddistributes cooked & fresh meats, dry meats, cheese, yogurt, other refrigerated,frozen and plant-based foods.

ALFA has a presence in:

25 Countries

TPM

103 Plants+57,700
Collaborators

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Currently, with the contribution of Sigma's plants in Mexico, there was a 77% increase in
EBITDA in the 3Q2023 compared to the 3Q2022:

In 1980 ALFA acquires Brener, the origin of Sigma Alimentos. Thanks for its fast growth, in
only six years ALFA becomes one of the most important companies in Mexico.

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Page 2OUR PRESENCE

Our wide variety of products by brand or categoryHams, sausages, bologna,and bacon, as well as otherproducts, targeting all
segments of the market.

TPMHams and products
focused on thepremium market

Dairy products, including
Yoghurt, Cheeses,Creams, Butter, andMargarines.

Includes refrigerated pizzas,
prepared Mexican food, andother products such as fish,canned and dry foods.

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SIGMA CELAYA PLANT
1.2. Our plant was built in 1977 for “La Mesa” food company; in 2001 acquired for New Zealand Milk
Mexico, then in 2005 became part of SIGMA ALIMENTOS, later in 2010 started theimplementation of work systems such as high-performance equipment and Take 2 Security
Program, in 2013 start-up of TPM and pilot equipment.
Our Sigma Alimentos Celaya Plant contributes 53% of the total volume in the fresh cheesecategory of all Sigma Alimentos Dairy Products Plants.

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We produce Fresh Cheese and our financial goals in plant are aligned to the company strategic
business plan. Talking about process technology we include few automated areas, most of them
are still hand-made.

PLANT WITH 46YEARS OF USE

We have flexible lines where we can change flavors or forms to satisfy our consumer’s needs.

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Page 5Our volume has been increasing year by year, since 2013 with the most pronounced growthwhen we started with the TPM methodology. TPM helped us to improve our processes andeliminate losses.
OUR PRODUCTS:

2. MILESTONE ON THE JOURNEY OF MANUFACTURING EXCELLENCE
2.1 The main reason why we acquired TPM in our Celaya plant is that we did not have a solidor organized work team, we had a lot of waste, many of which were not accounted for ormeasured, we did not meet the service levels, we had machines with very low efficiencies, there
were unnecessary expenses, unplanned repairs, constant and costly machine stoppages andthe worst part of this is that we did not know how to start acting and even less how to identify theroot cause.
2.2 We have an artisanal operation with several pieces of equipment with an average of 44 years
old, they were not given preventive maintenance, so the losses were uncountable, the personnel
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did not know their machine and waited for it to be fixed, so the customer's requirements werenot met.
2.3 The organization started with high performance teams attacking quality, safety, and costissues, but the results were not so surprising. When TPM and the first pilot teams arrived, atransformation, a structure and a more solid system began, achieving more favorable results.
2.4 In 2013 the TPM Kick off was carried out with 4 autonomous maintenance pilot teams,
currently we have 23 teams, and we are developing more generations. In addition, we began tointegrate multidisciplinary teams for the solution of the main losses of the plant, acquiringexperience and anticipating obstacles in the implementation.

2.5 After years of learning the methodology, in 2020 we obtained the Excellence Award, category
A, thanks to our commitment to maintaining and improving our results, as well as thecollaboration and enthusiasm of the personnel working at the Celaya Plant.
The TPM path has been very satisfactory as the staff has acquired a new culture in Genba,
which we continue to work on, as well as the staff of the other pillars with a better focus andmotivation to meet the results of the strategy and the company.

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In 2020, faced with the threat of the global pandemic caused by COVID-19, it was thanks to thesolid and systematic organization achieved with TPM that we were able to avoid risks to thehealth of our employees and continue with the supply of our products in supermarkets,guaranteeing the availability of food in those difficult times. And now, in these years, we are once
again on our way to obtaining the JIPM Consistency category award.

3. BENEFITS ACHIEVED
3.1 In the TPM path we have achieved benefits that we did not believe possible. The change ofculture can be perceived since the operators use a more technical language, they talk about
breakdowns, unscheduled stops, poka yokes, they have learned to solve problems
autonomously, they did not have such a close contact with the machines, now they are ownersof them. This has allowed us to challenge ourselves to change our work and training schemes.
3.2 The implementation of methodologies has been an important key to identify our main losses
and attack the root cause, these have been developed by more personnel from different areas,
the degree of complexity has increased from excellence to consistency, thanks to that we arebetter able to eliminate the loss with more focus and not repeat the causes.

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3.3. We have had benefits such as a 85.7% decrease in lost time accidents, increased equipment
efficiency, customer complaints have decreased by 80%, quality failures have decreased
considerably, internal defects are measured in the lines, breakdowns have decreased 43%
positively, we have a sustainable approach such as the use of recyclable materials in ourpackaging and the decrease in energy and water consumption.
4. KEY OF OUR MANUFACTURING EXCELLENCE
4.1 Ensure the strategies and objectives set out in the Hoshin kanri and cascade them frommanagement down to the operators.
4.2 Implementation of risk analysis and a preventive system for the total elimination of accidents
within the plant.
4.3 Implement and have better tools to attack complaints and quality defects on the line,
implementing improvement projects to reduce shrinkage and rework.
4.4 Promote and encourage the nationalization of domestic tools, as well as reduce inventories
in the warehouse and reduce maintenance expenses.
4.5 We are committed to the development of skills and knowledge of our employees, as well as
the participation of 100% of our collaborators.
4.6 Continue with the autonomous maintenance steps to maintain and improve your standards
to complete these steps and achieve the 4 zeros.
4.7 Currently our vision is to expand our reach to suppliers and customers, having a robust andefficient system to identify and eliminate losses with implementation and improvement projects.
4.8 Start with lead time in the process to reduce downtime, increase capacity and gain acompetitive advantage in the supply chain.
4.9 With early management continue with the development of PM sheets for new equipment andproducts to have an adequate investment.
4.10 A new concept that is being implemented is the OPE, which will allow us to identify thelosses in the previous process in order to attack them.

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5. ACHIEVEMENT RECORD
5.1. TPM Award Assessment Achievement Sheet

2023 TPM Award -Achievement Sheet
Company

Sigma Alimentos S.A. de C.V.

Plant nameSigma Alimentos, Celaya Plant

TPM Slogan/Objectives
Year when TPM activity started

Kick Off 2013

Year of benchmarking
Category

TPM

2020
Index(Calculation Formula)

Last timeawardedYear 2020

Unit

Actual Status

TargetYear 2023

Year 2023

S

Number of work-related
accidents requiring days offwork

Cases/ year (Acumm)

710S

Number of work-related
accidents not requiring days
off work

Cases/ year (Acumm)

24100P

Productivity for main products Pieces/person (AVG month)

6544

7259

7277POEE% (AVG)

80.1%

82.1%

83.0%

P

Availability% (AVG)

91.1%

87.3%

87%

P

Performance Rate% (AVG)

88.9%

95.5%

96%

P

Quality Products Rate% (AVG)

100.0%

99.5%

100%P

Number of breakdowns

Breakdowns/ year

35

206

P

MTBF

Hour

470

554

597

P

MTTR

Hour

1.88

0.91

0.82

Q

Number of customer
complaints

Number/year

15

3

1

Q

In-line defect rate (scrap)% (AVG)

0.96

1.2

1.3

Q

In-line defect rate (rework)% (AVG)

3.6

0.440.49

C

Cost index- Conversion Cost

Cost/Kilogram

0.74

0.770.75

D

Production Lead time

Hours

22.2

21.8

20.9

DDelivery performance%

91.6

9398

S

Safety index

Accidents per 1,000,000
operator hours

180.920M

Number of Employee
Suggestions

Number/year

1151

2181

2484

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