Brief introduction to Yili Freezing Food (Meizhou) Co., Ltd.

Address: High-tech Industrial Park, Shejiang Town, Meixian District, Meizhou, Guangdong, 514779

Contents

Chapter 1 Profile of the company & factory……………………………………………………………………….1
1.1 Company profile………………………………………………………………………………………………….3
1.2 Overview of the factory………………………………………………………………………………………….5
1.2.1 Brief history of the factory……………………………………………………………………………………..3
1.2.2 Factory process…………………………………………………………………………………………………5
1.2.3 Factory equipment & products………………………………………………………………………………….7
1.2.4 Factory organization……………………………………………………………………………………………6
1.2.5 Overview of employees…………………………………………………………………………………………8Chapter 2 Milestones in the journey of manufacturing excellence……………………………………………….9
2.1 Reasons for introducing TPM into the factory……………………………………………………………………92.2 History of the factory's TPM……………………………………………………………………………………..10Chapter 3 Benefits achieved………………………………………………………………………………………...7

3.1 Tangible improvements in the factory’s operating performance (see Diagram 1.8) ……………………………..7
3.2 Employee participation and improvement of factory atmosphere……………………………………………..…93.3

Otherintangible

achievements……………………………………………………………………………………12
Chapter 4 Key points for success of the factory…………………………………………………………..………9Chapter5obtained…………………………………………………………………………….…….12Achievements

Chapter 1 Profile of the company & factory

1.1 Company profile
Yili Group is the largest dairy product enterprise with the most complete product lines in China. In
2021, the company achieved the gross operating income of 110.6 billion yuan, ranking first in theAsian dairy industry and Top 5 in the global dairy industry. (See Diagram 1.1 , 1.2)

Diagram 1.1

Diagram 1.2
1.2 Overview of the factory

1.2.1 Brief history of the factory
Located in the northeastern region of Guangdong, China, Meizhou Yili covers an area of 15,800km2,
with a population of nearly 5.44 million. The project has a total investment of 540 million yuan andcovers an area of 142 acres.
The development history is as follows
In 2013, the foundation of the workshop was laid.
In 2014, the workshop was put into production.
In 2018, the TPM concept and tools were partially imported.
In 2019, the HACCP system certification was passed.
In 2019, the TPM was officially imported.
In 2021, the safety production excellence award of Yili Group was obtained.
1.2.2 Factory process
The main production process of the factory is: material receiving → batching →pasteurization/homogenization → aging → congelation/filling → freezing/coating → packaging →boxing → storage/shipment.
Material receiving
Deliver qualified raw and auxiliary materials to the factory, and put
them into the warehouse for temporary storage for use in theproduction process after passing internal inspectionExcipient

According to the requirements of the recipe, mix the sugar, milk powder, water,
grease and other materials added in sequence, with a temperature of 60-65℃
in the mixing process.

Pasteurization/homogenization
Shear the mixed large particles through the pressure to make the liquid moredelicate, sterilize the liquid through high temperature, and cool down thetemperature for use; homogenization pressure: 100-160bar

AgingFurther emulsify the fat, increase the viscosity and foaminess of the liquid,
shorten the congelation time, make the product thick, and improve theorganization of ice cream; temperature of 2-10℃

Congelation/filling
Continuously cool and scrape the liquid by the congelation cylinder andscraper, produce the semi-solid liquid with high viscosity, and fill it into themold using the filling trolleyFreezing/coating
Finalize the liquid on the mold using the refrigerant, pull the product out fromthe mold using the manipulator, and dip the chocolate liquid to wrap the semifinished product; coating temperature of 28--38℃

Packaging
Pack the semi-finished products using the packing bag and cup and otherauxiliary materials, and spray the code, thus becoming the finished product thatmeets the requirements; good sealing and complete packaging

Boxing
Put the products into the outer boxes according to the product specifications;the boxing quantity is accurate, and the products are piled orderly

Storage/shipment
After boxing, send the product into the cold storage, waiting for the transferand sales; storage temperature ≤ -22℃

1.2.3 Factory equipment & products
With an annual output of more than 60,000 tons, it is one of the largest frozen beverage production
bases in China. The workshop is equipped with 5 fancy lines, 4 quick-frozen tunnel lines and 2 Rollolines. (See Diagram 1.3)

5 long cylinder lines

5 tunnel lines

5 Rollo lines

Diagram 1.3
1.2.4 Factory organization
The factory has 9 departments, including Production Department, Equipment Department, QualityDepartment, Safety Department, etc. (See Diagram 1.4)

Diagram 1.4
1.2.5 Overview of employees

There are 426 employees in Meizhou factory. The regular employees account for 66%, those with

college degree or above 30%, the employees with the working age of more than 5 years 73%, and theemployees under 40 years old 68%. The production mode of “three shifts and two operation” isimplemented for the factory, with 12 hours as a shift and 7 working days per week. (See Diagram 1.5)

Diagram 1.5

Chapter 2 Milestones in the journey of manufacturing excellence
2.1 Reasons for introducing TPM into the factory
According to the Group's vision of becoming the world's most trusted health food provider andthe division's vision of becoming the world's most trusted provider of cold beverages, the factory has
proposed the vision of “becoming a lean manufacturing factory for healthy foods in the cold beverageindustry”. Based on the analysis of the factory status, we have developed six strategies for 2019 to2023, that is: "keeping safety, improving quality, enhancing efficiency, controlling cost, gathering
talent and sharing health"; we have introduced TPM to achieve the strategy. (See Diagram 1.6)

Diagram 1.6
2.2 History of the factory's TPM
In 2018, the improvement proposal was imported, and the DMS and QC group activities werecarried out, which laid the foundation for importing TPM activities; in 2019, the TPM activities werecomprehensively started by the factory, and FI, ET, AM, PM and QM were carried out in succession.
In 2020, the SH and ENV pillars were imported. In 2022, the OM and EM pillars were imported. It isclarified to challenge for TPM Excellence Award (A) in 2023 (see Diagram 1.7).

Diagram 1.7

Chapter 3 Benefits achieved

3.1 Tangible improvements in the factory’s operating performance (see Diagram1.8)

Diagram 1.8 Tangible achievements
3.2 Employee participation and improvement of factory atmosphereA total of 38481 rationalized suggestions and 30013 AM tags have been generated since 2019;
the positivity of the personnel’s participation in TPM has been increasing, and the participation rate
has reached 78.88%; the improvement benefit reached 1898，5000 yuan. (See Diagram 1.9)

Diagram 1.9: Achievements of TPM
3.3 Other intangible achievements

The factory has become more confident in practicing the world-class manufacturing 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 approach to make continuous improvement.

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

Chapter 5 Achievements obtained
TPM Award Assessment Achievement SheetBMCategoryIndex

Unit

Actual Status

Target

2019

2022

2023

Cases/ year

2.00

0.00

0.00

Cases/ year

0.00

0.00

0.00

Parts/Operator hours

102.73120.78152.97

%

69.57

79.45

82.21

(TPM Started or lasttime awarded)

Enter the year →Number of workS

related accidents
requiring days off work
Number of work-S

related accidents not
requiring days off work
Productivity for mainPproductsOEE
P(or Overall Plant
Efficiency)

P

Availability

%

92.40

91.13

93.83

P

Performance Rate

%

73.45

87.50

87.90

PQuality Products Rate

%

95.50

96.30

99.68

P

Number of breakdowns

Breakdowns/ year

537.00257.00163.00

PMTBF

Hour

112.80228.00232.80

P

MTTR

Hour

0.77

0.95

0.75

Number/year

15.00

45.00

26.00

Number of customer
Q
complaints

In-line defect rate
Q%

0.45

0.37

0.36%

///6.90

8.19

8.46

(scrap)In-line defect rate
Q(rework)
Cost/UnitC

Cost index
Cost/Kilogram

D

Production Lead timeDays

22.80

15.68

12.91

D

Delivery performance

%

99.96

97.93

100.00

1.47

0.00

0.00

3527.00

32346.00

38481.00

Number of occupational
S

Frequency rate

accidents with leave for 1 000000 worked hours

Number of Employee
M

Number/year
Suggestions