Guangxi Yili Frozen Food Co.,LtdGuideline of Company Profile
Guangxi Yili Frozen Food Co., Ltd.

Address：No. 23, Siyuan South Road, ASEAN DevelopmentZone, Wuming District, Nanning City, Guangxi Zhuang
Autonomous Region1Guangxi Yili Frozen Food Co.,LtdContents
Chapter 1 Brief introduction to Yili Group& Factory ......................... 3
1.1 Brief introduction to Yili Group ......................................................... 3
1.2 General situation of the factory .......................................................... 3
1.2.1 Brief history of the factory .............................................................. 3
1.2.2 Factory Technique. .......................................................................... 4
1.2.3 Factory Equipment & Products ....................................................... 5
1.2.4 Factory Architect ............................................................................. 6
1.2.5 Staff Information ............................................................................. 6
Chapter 2 TPM: a milestone on our journey to excellence. ................. 7
2.1 Reasons for introducing TPM ............................................................ 7
2.2 TPM implementation/application history ........................................... 7
Chapter 3. Benefits shipped................................................................... 83.1 Tangible Result as demonstrated in performance improvement. ......... 83.2 An improvement in employee participation and working atmosphere 83.3 Other intangible results ...................................................................... 9
Chapter 4 Keys for success .................................................................... 9
Chapter 5 Performance and Achievements ........................................ 102

Guangxi Yili Frozen Food Co.,Ltd

Chapter 1 Brief introduction to Yili Group& Factory
1.1 Brief introduction to Yili GroupAs the largest dairy enterprise with the most comprehensive product lines in China,
Yili Group has scored a total revenue of 123.17 billion yuan in the year of 2022, making
it the first Asian dairy enterprise to ever achieve a annual revenue over 100 billion yuan.
Yili group now stands at the top position among Asian dairy enterprises, ranking thefifth place in the world.

Chart1.1 Yili Group’s development
1.2 General situation of the factory
1.2.1 Brief history of the factory
Guangxi Yili Frozen Food Company Ltd. is located in Nanning City, Guangxi
Province of China, covering an area of 77 thousand square meters, with a total
investment of 400 million yuan. The factory is currently equipped with 8 productionlines, including 3 quick-freeze tunnel line and 7 stripped color popsicle production line,with an annual production capacity of 60 thousand tonnes of frozen foods.
Here’s a brief history of our factory’s development:2013 officially went into operation.
2015 Obtained the second standard of National Production Satefy.
2019 Official introduction of TPM into the factory
2021 Obtained certificate of ISO 14000, FSSC 22000 and was awarded the3

Guangxi Yili Frozen Food Co.,Ltdhonorary title of National-Level Green Factory.
2022 Launching the authentication project of JIPM
1.2.2 Factory Technique.
•The basic major technological process is as follows:
Ingredient reception → Burdening → pasteurization/homogenization →Emulsification → Congelation/Priming → Freezing/coating → Packaging →Packing → Storage/Shipping.

◼

Ingredient Reception
Acceptable ingredient will be delivered to thefactory for examination and stored for production
if it’s deemed up-to-standard.

◼

Burdening
Putting in ingredients according to the requirements, andmix evenly sugar, milk power, water and fat with atemperature of 60-65℃

◼

◼

◼

Pasteurization/homogenization

Emulsification

Congelation/Priming

Shearing the mixed large-particle material liquid throughpressure to make the material liquid more delicate, andsterilizing the material liquid through high temperature tocool down for further use. Homogeneous pressure: 100180bar
Further emulsifying the fat, increasing the viscosityand foaming of the material and liquid, shortening
the freezing time, making the product texture thick,
improving the organization of the ice cream;
Temperature stays within 2-10℃
The semi-solid liquid with high viscosity is produced bycontinuous cooling and scraping of the liquid through thefreezing cylinder and scraper, and is poured into the moldby the priming car4

Guangxi Yili Frozen Food Co.,Ltd◼

◼

Freezing/CoatingPackaging

The refrigerant is used to finalize the material liquidon the mold, and the product is pulled out from themold by the manipulator and dipped into thechocolate liquid to wrap the semi-finished product.
Coating temperature stays within 28-38℃
The semi-finished products are packaged with
auxiliary materials such as bags, cups and so on,and processed by jet coding to become finishedproducts that meet the requirements; Goodsealing and complete packaging is required◼

Packing
Loading the product into the outer box according
to the product specification; The packing quantity
needs to be accurate and neatly placed◼

Storage/Shipping
The products will be sent to the cold storage after
packing, waiting for transfer and selling; Storage
temperature stays below minus 22℃

1.2.3 Factory Equipment & Products
Our factory boasts 10 production lines, including 3 quick-freeze tunnel lines and 7
colorful ice-cream production lines, with a daily production capacity of 300 tonnes（see chart 1.2）
colorful popsicles
production lines

quick-freeze
tunnel lines

Chart 1.2 facilities
We have 4 major serial products including popsicles, ice creams and more，with 39
items in total.（See Chart 1.3）

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Guangxi Yili Frozen Food Co.,Ltd

Chart 1.3 Product Lines

1.2.4 Factory Architect
The factory is comprised of 10 departments, including Production Department, Facility
Department, Quality Department, Safety Department and more（See Chart 1.4）

Chart 1.4 Factory Architect
1.2.5 Staff Information
We have 647staff in total, with worker at the production line making up 90%. 40%
percent of our staff have at least an education in college for professional training. 42%
percent of our staff has a working age over 5 years, and those younger than 40 years ofage account for three quarters of our labor force. Here in our factory we practiceproduction pattern of THREE shifts, with 12 hours as a shift.

6Guangxi Yili Frozen Food Co.,Ltd

Chart 1.5 Staff Information
Chapter 2 TPM: a milestone on our journey to excellence.
2.1 Reasons for introducing TPMYili group has a vision of becoming the most trustworthy provider of healthy foodin the world. And with that vision in mind, we have set out to become a leader interms of frozen-food/drink industry value while at the same time setting a satefy
paradigm and improving both food quality and production efficiency, thus achieving
the most cost effective way where all members benefit from a rise in value andenvironment risks are kept within a low range. （See Chart 1.6）

Chart 1.6 Factory Strategy.
2.2 TPM implementation/application history
In 2018, part of TPM tools and philosophy were introduced into our factory. We
conducted a campaign to improve groups in order to lay a foundation for TPMimplementation.
2019 was the year of the official introduction of TPM into our factory, which,7

Guangxi Yili Frozen Food Co.,Ltdafter 3 years of function, has helped with the steady improvement of factory’sperformance.

Chart 1.7

Factory’s development after introducing TPM

Chapter 3. Benefits shipped.
3.1 Tangible Result as demonstrated in performance improvement.
We have seen a remarkable rise in our performance thanks to TPM. We havemanaged a perfectly clean record in terms of safety accident, food security accidents
and environment concerns, with production value, profit and customer satisfaction
continuing to grow.

Chart 1.8 Tangible Results
3.2 An improvement in employee participation and working atmosphere
TPM welcomes all to participate in its activities, with 1536 lessons, and 30151
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Guangxi Yili Frozen Food Co.,Ltd

reasonable suggestions and 29186 labels. We have seen a increase of employee
participation, which now stands at 94.70%.(see chart 1.9)

Chart 1.9 TPM accomplishments
3.3 Other intangible results
Factory now possesses more confidence in following a world-class management
pattern and spreading TPM out to all aspects of the factory.
Under the development philosophy of TPM, we see a raise in employer’s quality,
safety awareness and the ability to identify risks.
Digitization allows the factory to better identify major loss and better grasp theopportunity to improve.
A more scientific and reasonable cultivation system enables the employee todevelop a thinking ability that allows them to tackle problem in a systematic way.
A more orderly manufacturing site and more comfortable working environmenthas worked magic on boosting the morale amongst employees.
Regular pillar and group activities has brought cross-department work more
possible and efficient

Chapter 4 Keys for success▪

Managers’ Attention on and Persistence on TPM▪

Closer cooperation among departments
9Guangxi Yili Frozen Food Co.,Ltd▪

Combination of TPM activities and daily routine.

▪

Constantly refining based on standard measures▪

Setting up TPM incentive mechanism to involve more people.

Chapter 5 Performance and Achievements
TPM Award Assessment Achievement SheetIndexCategory

SSUnit(Calculation Formula)
Number of work-related accidents
requiring days off work
Number of work-related accidents
not requiring days off work

Kick off/
TPM Started

ActualActualStatusStatus2022

2023

Cases/ year000

Cases/ year

000165

223

242

P

Productivity for main products

Parts/Operatorhours

POEE(or Overall Plant Efficiency)%

66.90%

81.94%

84.28%

Availability%

89.70%

92.07%

92.13%

Performance Rate%

75.16%

89.38%

91.78%

Quality Products Rate%

99.23%

99.57%99.68%

P

Number of breakdowns

Breakdowns/year

1558474

PMTBF

Hour

312.1

474.6

507.6

PMTTR

Hour

0.92

0.87

0.66

Q

Number of customer complaints

Number/year

7.0

7.0

7.0

Scrap

%

0.75

0.32

0.32

Q

In-line defectrate

Scrap and rework

%

0.77

0.33

0.33

C

Cost index

Cost/Unit
Cost/Kilogram

6.80

7.50

7.69

DProduction Lead time

Days

11.5

9.4

9.1

D

Delivery performance%

100

100100S

Safety index

Accidents per
100,000
operator hours

000

M

Number of Employee Suggestions

Number/year

5112

5816

3349

Other<Specify achievements not expressible in numerical terms>
1.

Do you have a program where all employees can participate in TPM?

10Guangxi Yili Frozen Food Co.,LtdNote:2.

Do you have a program allowing employees to be recognized their achievements?

3.

Are top management involved in the audit/verification of completion of TPM pillar steps?

4.

Are all pillar activity boards displayed and reviewed by top management?

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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