Chongqing Tianyou Dairy Co., Ltd.

Chongqing Tianyou Dairy Co.,Ltd.
Plant 1Plant Profile

Postal address: 99 Jinshi Dadao, Yubei District,
Chongqing
Zip Code: 401120

Chongqing Tianyou Dairy Co., Ltd.

CONTENTS
Chapter 1 Company & Plant Profile ......................................................................................... 1
1.1 Company Profile .................................................................................................... 1
1.2 Plant Profile................................................................................................................. 1
1.2.1 A Brief History of the Plant.......................................................................................... 1
1.2.2 Manufacturing Processes ............................................................................................. 2
1.2.3 Plant Equipment & Products ........................................................................................ 3
1.2.4 Plant Organization Structure ........................................................................................ 4
1.2.5 Employee Overview ..................................................................................................... 5
Chapter 2 Milestone on the Journey of Manufacturing Excellence .......................................... 6
2.1 Plant Vision and Strategy ............................................................................................ 6
2.2 Plant TPM Introduction Process ................................................................................. 6
Chapter 3 Benefits Achieved ..................................................................................................... 7
3.1 Tangible Improvements in Business Results ............................................................... 7
3.2 Employee Involvement, Motivation and Other Intangible Improvements .................. 7
Chapter 4 Key of our Manufacturing Excellence................................................................... 9
Chapter 5 Business Results ....................................................................................................... 9

Chongqing Tianyou Dairy Co., Ltd.

Chapter 1 Company & Plant Profile
1.1Company Profile

Founded in 1931, boasts a history of 93 years, Chongqing Tianyou Dairy Co., Ltd. is awhole-industry-chain enterprise specialized in dairy products. The company is mainly
involved in the processing of dairy products and dairy-related businesses. It has fourlarge-scale dairy processing plants, Tianyou Animal Husbandry, sales branches,
Youshenghuo Cold Chain Logistics, a city-level technology center, and a four-star hotel"Galaxy Hotel" listed as its subsidiaries. In 2022, the operating revenue was 2,518
million yuan, and the profit was 91.07 million yuan.
1931: Chongqing Dairy Farm was established
1994: "Tianyou" trademark, as well as "Tianyou" brand officially launched
2002: Formed a joint venture with New Hope, reorganized, and became a joint-stock
enterprise
2003: Plant 2 was completed and put into operation
2006: Plant 1 was completed and put into operation
2017: Certified by "China Quality Dairy Project"
2018: Awarded the "Most Influential Brands"
2022: Awarded the title of "Exemplary & innovative smart low-temperature dairy
factory" of Chongqing City.
2023: Won the second prize of Chongqing Science and Technology Award
2023: Proposed to build a new "exemplary & innovative smart dairy factory"
1.2 Plant Profile
1.2.1 A Brief History of the Plant

Chongqing Tianyou Dairy Co., Ltd Plant 1 is the subject of this application. Our
brief history is illustrated below:
1Chongqing Tianyou Dairy Co., Ltd.

In July 2006, Plant 1 was completed and put into operation.
In May 2007, we obtained the ISO22000 certification.
In December 2009, we obtained the HACCP certification.
In December 2012, we are certified by the Environmental/Occupational Healthand Safety Management System.
In April 2017, we are certified by the China Quality Dairy Project.
In June 2019, TPM was introduced.
In February 2021, we are awarded the title of "Healthy Enterprise" and "National
Green Factory"
In 2023, we are applying for the Award for TPM Excellence
1.2.2 Manufacturing Processes

There are two main types of production lines in the plant. One is for fresh milk:
processes include raw milk reception → membrane filtration → cooling & storage →preheating & homogenization → pasteurization→ cooling → filling → cartoning →testing. The other one is for yogurt: processes include raw milk reception & storage →standardization → preheating, homogenization→ sterilization → cooling →inoculation → fermentation → filling → cartoning → testing.
Raw milk reception and storage

Raw milk is transported from the pastures to theplant. After the milk passed its testing, it is thenfiltered, cooled and stored.
Standardization

Standardize stored fresh milk as required

Pasteurization

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Chongqing Tianyou Dairy Co., Ltd.

Pathogens and harmful bacteria in the raw milk
are effectively killed during pasteurization,

Fermentation

Filling

Beneficial bacteria are inoculated in fresh milk.
After the lactic acid fermentation process, thesubstance produced is more easily absorbed bythe body.

The sterilized milk is packed and sealed using afilling machineCartoning

Products are packed into boxes according torespective specifications and then stocked intothe warehouse

1.2.3 Plant Equipment & Products

Chongqing Tianyou Dairy Co., Ltd. has a total of 27 production lines, with a daily
production capacity of 465 tonnes. Our product type falls under low-temperature
milk, which is mainly packaged in gable top cartons, paper cups, PET and glassbottles, with a total of 87 SKUs.

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Chongqing Tianyou Dairy Co., Ltd.

1.2.4 Plant Organization Structure

The plant has 8 departments including Workshop No.1, Workshop No. 2, QC
Department, Equipment & Safety Department, etc..

4Chongqing Tianyou Dairy Co., Ltd.

Figure: Plant Organization Structure
1.2.5 Employee Overview

Plant 1 has a total of 245 employees. 56% of which are front-line production
personnels, 60% hold a college degree or above, 85% have more than 5 years on thejob, and 54% are under the age of 40. We implement a three-shift production model,
where one shift lasts for 8 or 12 hours

Figure: Employee Overview

5Chongqing Tianyou Dairy Co., Ltd.

Chapter 2 Milestone on the Journey of Manufacturing Excellence2.1 Plant Vision and Strategy
According to the company's vision of "become a leading dairy enterprisethat is most trustworthy and favored by consumers", we put forward the plant visionof "be the leader amongst low-temperature dairy processing plants". Based on theanalysis of our current status, we formulated the four major strategies for 2019~2023,
namely "high quality, solid safety, low cost and high efficiency".
2.2 Plant TPM Introduction Process
In 2018, we introduced some of the TPM tools and concepts, and mainly
implemented team improvement activities to lay the foundation for full TPM
introduction. In 2019, we officially introduced TPM, and first established the 5S andDMS project teams, and the two pillars of Focused Improvement (FI) and Quality
Maintenance (QM). In 2020, we launched Planned Maintenance (PM), Autonomous
Maintenance (AM), Education and Training (ET), and Environment, Health, andSafety (EHS) pillars. We planned our application for the Award for TPM Excellence(Category B) in 2023 and decided to continue challenging ourselves to JIPM awards
at all levels in the future.

6Chongqing Tianyou Dairy Co., Ltd.

Chapter 3 Benefits Achieved
3.1 Tangible Improvements in Business Results

Labor efficiency per capita: 1.28 tonnes/shift/person in 2023, an 28% increasesince 2019;

Yield rate: 96.26% in 2023, a 1.49% increase since 2019;

Failure rate: 0.69% in 2023, a 53% decrease since 2019;

Benefits achieved from improvements: The total benefits since the launch ofimprovement activities amounts to 38.83 million yuan.

3.2 Employee Involvement, Motivation and Other Intangible Improvements
In the second year, we began to achieve full participation. During 2019~2023, wehave implemented a total of 162 improvement teams. Through those team activities,
loss was eliminated, whereas quality, equipment efficiency, and worker skills, andemployee working environment were improved.
7Chongqing Tianyou Dairy Co., Ltd.

Intangible results:

TPM activity methodologies focus on the education and training of people. As weutilize those approaches, employees' approach to work and ability to use
management tools have been improved. We have nurtured talents through thoseactivities, and employees have also grown rapidly.

The pillar system emphasizes a spirit of solidarity and collaboration. Facing
prominent problems, we replaced our original vertical management system to thecross-departmental pillar management, greatly improving efficiency.

Our pillars are managed through multi-departmental cooperation, where themanagement is oriented towards problem-solving, deepening interdepartmental
communication and collaboration, and enabling better integration of resources, andbetter realization of full participation.

The atmosphere formed by TPM activities is prominent, and ideas such as quality,cost, efficiency, and safety have penetrated into the subconscious minds of ouremployees. They have become better at discovering improvement points in theproduction process, thus achieving continuous improvements.

We have effectively utilized internal resources to train all employees and helped
them improve their work and performance, thus realizing the sharing andinheritance of knowledge within the plant.
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Chapter 4 Key of our Manufacturing ExcellenceTPM is valued by plant management and supported by institutionalized incentives.

The pillar management formed by departmental cooperation has broken down
barriers between departments, deepened communication, understanding andcollaboration between departments, and better integrated resources to achieve fullparticipation.

We have been progressing our TPM activities steadily, where managers andemployees have all been able to remain committed.

systematically utilize a variety of approaches and management tools tocontinuously improve on all kinds of fronts and fix problems.

Chapter 5 Business Results

2023 Award for TPM Excellence - Achievement
SheetCompany NamePlant Name
Slogan/Goal
TPM Kickoff
YearBenchmark Year

CategoryS

Chongqing Tianyou Dairy Co., Ltd.
Chongqing Tianyou Dairy Co.,Ltd. Plant 1Be the leader amongst low-temperature dairy processing plants
2019
2019

Item (Formula)
Work-related
accidents requiringdays off work

9Unit

Kickoff
event/TPM
Kickoff (or lastawarded): 2019

Actualperformanceresults 2023

cases/year70

Chongqing Tianyou Dairy Co., Ltd.

SPPPPPPPPQ

Work-related
accidents not
requiring days offwork
Productivity of mainproductsOEE
Operating ratio basedon time (Availiability)
Performance Rate
Quality Products Rate
Number ofbreakdowns
MTBFMTTR
Number of complaints(due to processes within thecases/year

20Total production
volume/total
working
hours(tonne/hour)
%

0.125

0.16

58.76

71.41%

62.02

74.19%%
Number of
breakdowns/year
hh

95.21
99.51

96.29
99.9666

859

443

87
1.2

93
0.99

cases/year

310

64%

0.28

0.03

%

0.210.0034

Tonne/yuanDay%
Accidents per
100,000 hours

7224
0.81
10070090.64
10000cases/year

81297plant)

CDD

In-line defect rate(causing scrap)
In-line defect rate(causing rework)
Cost index
Production Lead time
Delivery performanceS

Safety index

M

Number of Employee
Suggestions

QQ10