ChengduFrozen Food Co.,LtdGuideline of Company Profile
Chengdu Yili Dairy Co., Ltd.

Address：No.1, Nanjiang Road, Linqiong Town, Qionglai City,Chengdu City, Sichuan Prov.

1

ChengduFrozen Food Co.,Ltd

1. Company Profile

Item
1. Company, Plant/Factory Profile
1.1 Inner Mongolia Yili Industrial Group Co., Ltd. is a large-scale privately owned enterprise inChina which mainly specializes in dairy products. Yili has set up Factories and Research Institutein North America and Europe to develop International layout. Yili was the sole Asian dairyproducer which has ranked Top 5 in Rabobank’s 2020 global dairy report. In 2021, the revenue
exceeded 110 billion yuan, and the revenue in the first three quarters of 2023 was 97.404 billionyuan.
1.2 Chengdu Yili Dairy Co., Ltd.
Chengdu Yili Dairy Co., Ltd. is a wholly-owned subsidiary jointly established by Yili Group's Ice
Cream Management Department, Liquid Milk Management Department and Yogurt
Management Department. The total constructive investment of the project is 420 million yuan,engaging in the production of ice cream, liquid milk and yogurt. The area to assess is the Ice
Cream Workshop, which mainly produces popsicle and ice cream, with a designed daily capacityof 260 tons,The cumulative tax payment is 867 million yuan.
1.3 Ice Cream Management Department of Chengdu Yili introduced advanced technology andequipment from global manufacturing industries of frozen drinks. It contained 11 productionlines, 10 branches and 509employees, Among them, 87% of front-line personnel, 28% ofemployees with college degree or above, 84% of employees with more than 5 years ofeducation, and 66% of personnel over 35 years old。
2. Milestone on the Journey of Manufacturing Excellence
2.1 Since 2012, Chengdu Yili has started to introduce the optimization project (TPOS):
Introducing lean thinking and learning basic improvement tools and individual improvement.
2.2 Chengdu Yili introduced AM, PM, CM and QM in 2013, yet it had been contributed
insufficiently due to the small improvement scale of the implementation mode and lack of longterm maintenance.
2.3 Chengdu Yili introduced improvement projects of 5S/AM/PM/QM/ET/LT team from 2014 to2

ChengduFrozen Food Co.,Ltd2015, and hence initially established the maintenance system and capability improvements ofemployees.
2.4 Since 2015, Yili Group has consistently advocated unifying all business units to facilitate TPMactivities.
2.5 Based on the above, Chengdu Yili was selected by the Ice Cream Management Department
in 2018 as the first factory to apply for the Award for TPM Excellence, Category B. As the leading
factory of the Ice Cream Management Department,
Chengdu Yili shoulders the mission of achieving the goal of becoming the world-classmanufacturing plant, deploys comprehensive improvement activities, improves operationefficiency, and promotes excellent experience to other factories.
2.6At the same time, in December 2021, the Chengdu factory introduced the TOP and EM pillars,
and at the same time, it passed the final review of the Excellence Award (B) category in 21,
planned the implementation plan of the Excellence Continuation Award in the same year, andpassed the preliminary review of the Excellence Continuation Award in June 2023.
3. Benefits Achieved
3.1 Through carrying out TPM activities, the overall production efficiency of the factory
increased significantly, the overall OEE increased by 29.3% In the face of the increase of orders,the factory can calmly deal with the situation on the premise of quality guarantee and ensure
the business development needs of the enterprise.
3.2 The factory set up the TPM management system, and the staff gradually formed thecontinuous improvement of lean thinking.The on-site staff was more willing to participate insetting standards and abide by the standards in order to achieve personal ability improvement
and treatment promotion
3.3 Based on the TPM activities of the factory, the factory was awarded the title of "Quality
Demonstration Unit" by Yili Group.

3

ChengduFrozen Food Co.,Ltd

4. Key of our Manufacturing Excellence
TPM Award Assessment Achievement Sheet
Company & plant name

Chengdu Yili Dairy Co., Ltd.(Frozen Beverage Division)

TPM Slogan/Objectives

TPM helps to improve organizational perfomance on a continual basis.

Index

Category(Calculation Formula)

Kick off/

Actual Status

Actual Status

2018

2022

2023

Cases/ year000

Cases/ year

100Unit

TPM Started

Enter the year →SS

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

Productivity for main products

Parts/Operatorhours

0.4

1.27

1.32

POEE
(or Overall Plant Efficiency)%

6578.89

84.05

P

Availability

%

87.42

92.21

92.8

PPerformance Rate

%

75.36

85.74

90.72

P

Quality Products Rate%

98.67

99.78

99.84

P

Number of breakdowns

Breakdowns/year

893

12079

P

MTBF

Hour

47.35

166.4

202.8

P

MTTR

Hour

64.12

36.7

29.5

Number/year

30

18

9%

1.33

0.22

0.16

Number of customer
complaints
In-line defectrate

QQC

Cost index

Cost/Unit
Cost/Kilogram

6.8RMB/Kg

DProduction Lead timeDays

8

6.42

5.71

DDelivery performance%100100100S

Safety index

Accidents per100,000
operator hours

000

M

Number of Employee
Suggestions

Number/year

3540

7616

8765

6.17RMB/Kg 5.84 RMB/Kg<Specify achievements not expressible in numerical terms>
Other

1.

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

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?

4ChengduFrozen Food Co.,Ltd

5. Key to our Manufacturing Excellence
In the process of TPM implementation, first of all, combined with the requirements of the TPM
implementation of the factory, the factory formulated the management organization structure of
the committee, and clarified the organizational structure of each pillar under the committee, as
well as the operation content, implementation purpose and management method of the committee
and the pillars. At the same time, the factory has established an organizational structure ofdepartments and pillars, broken down departmental barriers, established a cross-departmentalorganization to carry out improvement activities, and carried out the goal development from top
to bottom: from the TPM committee to the production line of small group goals; DMS review
activities are carried out by the most basic group activities, and problems are quickly fed back to
the committee step by step. At the same time, based on the realization of the goal, we haveestablished a TPM promotion plan, and in the process of TPM implementation, we have carriedout KICK OFF conferences, method training, group reviews, process coaching and auditing,benchmarking Xi, and other activities to improve team capabilities, and enhance the TPM culture
atmosphere of the factory through regular commendation activities.

5