Shijiazhuang Yongsheng Diary Co., Ltd.（Yongsheng Plant No.2）

Shijiazhuang Yongsheng Diary Co., Ltd.
（Yongsheng Plant No.2）
Plant Profile1

Shijiazhuang Yongsheng Diary Co., Ltd.（Yongsheng Plant No.2）

Content
Shijiazhuang Yongsheng Diary Co., Ltd. .............................................................. 3
Chapter 1: Group&Company Profile ...................................................................... 3
1.1 Group profile ................................................................................................ 3
1.2 Plant overview .............................................................................................. 4
Chapter 2： TPM Organization and Activities ...................................................... 5
2.1 The TPM journey ......................................................................................... 5
2.2 Special efforts for the Special Award for TPM Achievement ................... 5Chapter 3： Achievements .................................................................................... 6
3.1 Tangible bussiness achievements ................................................................. 6
3.2 Employees' engagement& motivation and other intangible achievements 7Chapter 4：Key to Our Success.............................................................................. 8
Appendix：Contact Information............................................................................. 9Chapter 1：Group&Company Profile
1.1 Group profile
Founded in 1995, Junlebao Dairy Group is the largest dairy processor in Hebei province. Our business
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Shijiazhuang Yongsheng Diary Co., Ltd.（Yongsheng Plant No.2）

covers the whole diary industry including production, supply and marketing. It is reputed as a national key
leader in agricultural industrialization, a technology-driven and a research and development technology subcenter. As the largest dairy producer in Hebei province, Junlebao holds the Vice Chairman status at National
High-tech Business Association and the Chairman status of the Hebei Dairy Industry Association. In 2015, allof our liquid milk plants passed the EU BRC Grade A and all milk powder plants,

BRC A+ top certification,

making Junlebao the first milk powder producer with a BRC A+ certification.
Junlebao Diary Group now has 32 modern dairy farms, 21 modernized manufacturing bases and over
15,000 employees. It is the regional champion in in North China and the third best player in the country.
According to statistics from Nielsen, both of our yogurt and milk powder products boast the third largest
market occupancy in China. Under its sales target of 22 billion RMB, retailing sales of yogurt reached thethird place nationally and the first place provincially.
The Group consists of five business divisions: milk powder division, banner diary division, fresh milkdivision, liquid milk division and husbandry division, and we have established an operation layout covering
the whole milk industry chain with upstream and downstream reinforcing each other. We have adopted fiveworld-class models

including world-class research and development, world-class advanced farms, world-class leading factories, world-class partners, world-class food safety management system to provide
consumers with nutritious, healthy and safe dairy products.

1.2 Plant overview
Yongsheng Plant No.2 is located in Junlebao Dairy Town, Luquan Development Zone, Shijiazhuang City,Hebei Province. It is the TPM pilot plant of Junlebao Diary Group. The Group hopes to continue to explore
the integration of TPM activities and production system through the work practice of Yongsheng Plant No.2,and promote the experience of TPM system to the cryogenic division and even the whole Group while3

Shijiazhuang Yongsheng Diary Co., Ltd.（Yongsheng Plant No.2）

achieving important and outstanding results.
Yongsheng Plant No. 2 was founded in 2013, officially put into operation in 2014, introduced into TPM
in December 2015, passed CNAS laboratory certification in 2017, added recess milk and cheese in 2018, won
TPM Excellence Award in 2019, and won TPM Sustained Excellence Award in 2021. With the developmentof the company and the in-depth promotion of TPM, This year we challenge for the TPM Special Award.
Yongsheng Plant No.2 is currently the highest grade of domestic low-temperature products, with theinternational leading level of technology and equipment of the mono workshop, the Plant clear flow of people,
logistics, air flow and waste channels, the Plant has 13 fermented milk and milk beverage production lines,fermented milk has 9 filling lines, milk beverage filling lines 4.
At present, the Plant products are divided into two categories: fermented milk and milk beverage, of
which fermented milk products account for 82.62% of the total output of the Plant, and are the key items ofthe Plant. Up to now, there are 60 SKUs in our Plant, among which the production of new products from 2022
to 2023 will directly bring 20,600 tons of revenue.
2018 witnessed the introduction of Milk for Class Breaks and 2020 saw the introduction of productswith Dreamy Resealable Caps. Milk For Students Initiative was launched in 2021. In 2022, we released a
new product: Cheese Flavored Yogurt Tray and in the same year Junlebao Jianchun Flavored Yogurt series
received GI certification. In 2023, Low-fat yogurt tray products Among all new products, Milk for Class
Breaks and Milk For Students are government-funded projects and both have received zero complaint since
their launch.
The Plant has A total of 552 equipment, including 23 Class A equipment and 76 Class B equipment.
Through the continuous improvement of TPM activities, device reliability continues to improve. When newdevices are introduced year by year, the number of Class A devices decreases year by year.
Plant management for the director responsibility system, under the production, equipment, quality andother ten departments. At present, the Plant has 326 employees (including 60 outsourcing personnel), including
production, equipment, quality departments according to three shifts and two operations for production. The
number of direct workers in the Plant accounts for 73.31% of the total number, and the employees with morethan 5 years of age account for 45.71% of the total number of the Plant, and the personnel is relatively stable.

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Shijiazhuang Yongsheng Diary Co., Ltd.（Yongsheng Plant No.2）

Chapter 2: TPM Organization and Activities
2.1 The TPM Journey
In order to help the Plant achieve the vision of "building a world-class dairy manufacturing plant",
Yongsheng Plant No.2 introduced TPM in December 2015, won the Excellence Award in 2019, won theContinuous Excellence award in 2021, and in 2022, under the guidance of improving the competitiveness ofthe Plant, we will decompose FI into CM pillar, further reduce manufacturing costs and improve
competitiveness. Lead the whole chain to improve and achieve win-win results.
Entering the TPM Special Award stage, we plan the medium and long term goals of the plant fromefficiency (P), quality (Q) and delivery (D). It is expected that through the continuous application of TPM, it
will become the group's benchmark in terms of efficiency, quality and delivery by 2025, and at the sametime, it has determined the phased decomposition objectives.

2.2 Special efforts for the Special Award for TPM Achievement

In order to break through TPM activities and better help Plant operation and management, we set up theCM pillar at the stage of special award, and we will carry out in-depth activities of 11 pillars and continue toexplore breakthrough TPM activities, with the ultimate goal of improving the competitiveness of Yongsheng
Plant No.2.

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Shijiazhuang Yongsheng Diary Co., Ltd.（Yongsheng Plant No.2）

Based on the plant’s competitiveness and strategies and two priorities in renovation/innovation TPM
activities, we continued to lead and set benchmarks and promote production to enhance the company's
competitiveness through the Group’s pilot workshop. With continuous pursuit of zero losses, we lead in
making benchmarks for different division and cultivate TPM talents.

Chapter 3 Achievements
3.1 Achievement in Business Performance
Company
Plant name
TPM
Slogan/Objectives

Junlebao Dairy Group Co., Ltd.
Shijiazhuang Yongsheng Diary Co., Ltd.
Build a world-class dairy manufacturing plant

Kick off/TPMStarted (or lasttime awarded)

ActualStatus 2023

Cases/ year

00S

Number of work-related
accidents not requiring days
off work

Cases/ year

00P

Productivity for main
products

Parts/Operatorhours--POEE(or Overall Plant Efficiency)

%

73.5

74.29

PP
P

Availability
Performance Rate
Quality Products Rate%%%100%-100%-P

Number of breakdowns

Breakdowns/ year

180108

PP

MTBF
MTTR

Hour
Hour

222536
19Index(Calculation Formula)

UnitS

Number of work-related
accidents requiring days offworkCategory

6Shijiazhuang Yongsheng Diary Co., Ltd.（Yongsheng Plant No.2）

Q

Number of customer
complaints

Number/year

749

613

Q

In-line defect rate, scrap%--Q

In-line defect rate, scrap andrework%--C

Cost index

8648

8645

DD

Production Lead time
Delivery performance

1.48
100%

1.30
100%

003621

5389

Cost/Unit
Cost/Kilogram
Days%

S

Safety index

Accidents per
1,000,000 operator
hours

M

Number of Employee
Suggestions

Number/year

3.2 Intangible benefits
In addition to the tangible benefits that TPM activities bring to the achievement of Plant targets, theSpecial Award stage also improves intangible benefits, as follows:
Team Outcomes ：34 teams succeeded in TPM improvement initiatives; 36 teams was engaged in theGroup’s innovation appraisal.
Skill Professional Training ：Thanks to in-house skill training sessions, those involved in final review
stage increased to 8 and professionals with advanced skills increased to 10.
Manager Training: In 2022, TPM program trained and promoted 47 employees to managerialposition,leading among all factories of the whole Group.
Atmosphere fostering: We established plant innovation and improvement experience hall, safety
experience hall and carried out safety knowledge competition, innovation PK competition, upper and lowerbids.
In terms of intangible achievements, we have been awarded as National Green Plant and National
Secondary Green Warehouse. As a lead tax-payer, we are the Shijiazhuang Municipal-level Leading Enterprise.
In 2021 Annual Assessment, we won the “Innovators’ Team” title.

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Shijiazhuang Yongsheng Diary Co., Ltd.（Yongsheng Plant No.2）

Chapter 4：Key to Our Success
During Special Award activities, we seek full participation from all staff members, from 80%
participation in the the Excellent Award Pillar Group activities to 100% participation across plant staff inAward for Excellence in Consistent TPM Commitment activities and then to full attention to the Special Awardinnovation proposal and outcomes.
For instance, during cost proposal activities, all staff members were asked to scan the QR code and gave
their feedback. We have finished 84 out of the 95 proposals collected, among which 11 proposals were enlisted
as Hardware Modification Plan. Also, as many as 64.25% select innovation projects were approved by theGroup;
During the Special Award for TPM Achievement period, each pillar had independent activities including
credit accumulation activities for the FI Pillar and AM Pillar. At the same time, we conducted centralized
training to address difficulties, such as APM and ET cooperation to improve and empower technical personnel.
After the empowerment, we conducted internal transformation and the equipment failure rate was reduced
from 0.8% to 0.2%;
During the Special Award stage, we focused on personnel participation and group leader training. For
example, we held award ceremonies before the training sessions instill a sense of mission into group leaders;
At the end of the training sessions, examinations for theoretical knowledge were held. Up to now, 100% ofour group members have passed the tests;
At the same time, to foster a climate where full participation of all staff members is encouraged, weorganize activities on this front. In early 2023, we set the goal of reaching the health review target for Special
Award for TPM Achievement. Knowledge and information flow has been advanced through both internal andexternal tracking mechanisms like quarterly improvement competitions, closed-door symposium on staff
satisfaction, quarterly TPM outreach activities. We underlie our priorities and ensure our employees are
informed and are the same page with us through annual / semi-annual strategic meetings.

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