Hubei Huanggang Yili Dairy Co., Ltd.

Brief introduction to Hubei Huanggang Yili Dairy Co.,
Ltd.

Address: 168 Huangzhou Avenue, Huangzhou District, Huanggang, Hubei
Province1

Hubei Huanggang Yili Dairy Co., Ltd.

Contents
Chapter 1 Profile of the company & factory ............................................... 3
Chapter 2 TPM promotion plan ................................................................... 8
Chapter 3 Benefits achieved .......................................................................... 9
Chapter 4: Key points for success of the factory....................................... 10
Chapter 5 Achievements obtained .............................................................. 112

Hubei Huanggang Yili Dairy Co., Ltd.

Chapter 1 Profile of the company & factory
1.1 Company profile
Yili Group is the largest dairy product enterprise with the most complete productlines in China. By 2022 Q3, the company had achieved the gross operating income of
93.861 billion yuan, ranking first in the Asian dairy industry and Top 8 in the global
dairy industry. (See Diagram 1.1)

Diagram 1.1 Profile of the group
1.2 Overview of the factory
1.2.1 Brief history of the factory
Hubei Huanggang Yili Dairy Co., Ltd., located in Huangzhou District,
Huanggang, Hubei, covers an area of 102,800m2, with a total investment of 2 billion
yuan. It is a factory jointly constructed by the Cold Drink Division and the Liquid
Milk Division. Cold drink production plant that applied for TPM award certification
this time. (See Diagram 1.2)

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Hubei Huanggang Yili Dairy Co., Ltd.

Diagram 1.2: Factory profile
The factory was invested and built in 2006, put into production in 2007, won thehonor of City Quality Management Pioneer in 2013, won the honor of Safety
Production Standardization Level 3 Enterprise in 2014, introduced TPM activities in
2019, passed the energy system ISO 150001 certification in 2020, passed the quality
FSSC 22000 certification in 2021, and will challenge for the certification of TPM
Excellence

Award

(B)

in

2023

(see

Diagram

1.3)

Diagram 1.3: History of the factory
1.2.2 Factory process
The production process includes raw material receiving → batching → pasteurization→ aging → congelation → filling → filling → coating → packaging → boxing →palletizing and warehousing (see Diagram 1.4).
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Hubei Huanggang Yili Dairy Co., Ltd.

Diagram 1.4: Process flow
1.2.3 Equipment layout of the factory
Hubei Huanggang Yili Dairy Co., Ltd. has a total of nine production lines, with adaily output of 240 tons. The production workshop includes pre-treatment workshop,
filling workshop and packaging workshop, with 322 sets of equipment, including 184
sets of pre-treatment equipment, 58 sets of filling workshop equipment and 80 sets ofpackaging workshop equipment (see Diagram 1.5)

Diagram 1.5: Equipment layout
1.2.4 Categorization of factory equipment
The existing equipment are categorized according to the categorization criteria of A,
B and C, and combined with the categorization process. Among them, there are 38
sets of Class A equipment, accounting for 12%, 26 sets of Class B equipment,
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Hubei Huanggang Yili Dairy Co., Ltd.

accounting for 8%, and 256 sets of Class C equipment, accounting for 80%. In orderto ensure equipment maintenance, the maintenance strategies are developed for
different types of equipment for stable operation of the equipment (see Diagram 1.6)

Diagram 1.6: Equipment categorization
1.2.4 Product structure of the factory
The factory has fancy ice-cream lines and quick-frozen tunnel lines, producing 4
series of products, namely, popsicle, ice-cream, ice stick and ice frost, with 37 items
in total (see Diagram 1.7)

Diagram 1.7: Manufactured products
1.2.5 Factory organization
Huanggang Yili has a total of 9 business departments, 412 self-owned employees and224 outsourced personnel. The three-shift system is adopted for production,
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Hubei Huanggang Yili Dairy Co., Ltd.

equipment and quality departments, and the day shift is adopted for others. (SeeDiagram: 1.8)

Diagram 1.8 Factory organization
1.2.6 Overview of employees
The factory personnel are mainly distributed in the production, quality and equipment
departments, accounting for 85.69% of the total employees of the factory. Those withthe college education and above account for 34.12%, those working for more than 5
years account for 48.3%, and those under 40 years of age account for 56.45% (seeDiagram 1.9).

Diagram 1.9: Overview of employees7Hubei Huanggang Yili Dairy Co., Ltd.

Chapter 2 TPM promotion plan
2.1 TPM support for strategy
According to the Group's vision of “becoming the world's most trusted healthfood provider”, the factory has proposed the vision of “building a healthy andintelligent operating factory”. Based on the analysis on the current situation of thefactory, we have developed the five strategies of "creating green life together, casting
excellent quality, improving synergy efficiency, reducing operation cost, and realizing
value-added of all employees"; to achieve the strategies, we introduced TPM. (SeeDiagram 2.1)

Diagram 2.1: Factory strategy
2.2 History of the factory's TPM
In 2019, the factory introduced the four pillars of AM, FI, ET and PM. To ensure
the effective operation of the pillars, we established the DMS management
mechanism and OEE data system in July of the same year. In 2020, we introduced
QM, SH and ENV pillars. We plan to challenge for the certification of TPM
Excellence Award (B) in 2023, and continue to challenge for JIPM awards at all levelsin the future. (See Diagram 2.2)

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Hubei Huanggang Yili Dairy Co., Ltd.

Diagram 2.2: History of the factory's TPM
Chapter 3 Benefits achieved
3.1 Tangible improvements in the factory’s operating performance
Through the implementation of TPM activities, we have made certain achievements,
safety accidents, environmental accidents and food safety incidents continue to be 0,
the output value is increased by 168.2%, the profitability reaches the target, and thecustomer satisfaction is improved continuously (see Diagram 3.1)

Diagram 3.1: Tangible achievements
3.2 Employee participation, atmosphere improvement and other intangible
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Hubei Huanggang Yili Dairy Co., Ltd.

achievements
Since 2019, the personnel have created a total of 33536 reasonable suggestions
and 25087 AM tags. The participation in TPM activities continues to increase, with aparticipation rate of 100%. (See Diagram 2.2)

Diagram 3.2: Achievements of TPM
Intangible achievements:
The factory has become more confident in practicing the world-classmanufacturing management model, and will continue to promote the full expansion of
TPM in the factory.
Chapter 4: Key points for success of the factory

The factory management pays attention to and adheres to TPM.

The interdepartmental cooperation is closer.

Combine TPM activities to daily work.



Apply the standard methodology to make continuous improvement.



Establish the TPM incentive system to drive more people to participate in TPM
activities.

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Hubei Huanggang Yili Dairy Co., Ltd.

Chapter 5 Achievements obtained
TPM Award Assessment Achievement Sheet
Company & plant name

Hubei Huanggang Yili Dairy Co., Ltd.

TPM Slogan/Objectives

TPM contributes to the continuous improvement of organization
performance.

Cat
egor
y

S
S

BM
(TPM
Started orlast timeawarded)ActualStatusActualStatus

2019

2022

2023

Cases/ year

0

0

0

Cases/ year

0

0

0

68.56

79.88

82.95

Index

Number of work-related
accidents requiring days off
work
Number of work-related
accidents not requiring days off
work

Unit
Enter the year →Parts/Operator
hours

P

Productivity for main products

P

OEE(or Overall Plant Efficiency)

P

Availability%

P

Performance Rate%P

Quality Products Rate%P

Number of breakdowns

Breakdowns/ year

745

306

239

P

MTBF

Hour

2469

6480

8424

P

MTTR

Hour

46.24

37.62

36.43

Q

Number of customer complaints

Number/year

0.042

0.033

0.030

Q

In-line defect rate (scrap)

%

0.678

0.259

0.208

Q

In-line defect rate (rework)

%

0.71

0.31

0.23

C

Cost index

Cost/Unit
Cost/Kilogram

D

Production Lead time

Days

11.4

8.5

8

D

Delivery performance

100

100

100

S

Frequency rate%
Number ofoccupational
accidents with leave
for 1 000 000 worked
hours

0

0

0

M

Number of Employee
Suggestions

Number/year

4566

8484

8858

%

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

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