JIPM Excellence Award, Category A

TETRA PAK BINH DUONG FACTORYCompany profile

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 15/01/2024, updated: Year-Month-Day

1(16)WCM Department
GeneralContents
1. Company, Factory Profile ................................................................................................................................ 3
1.1

Tetra Pak Company .................................................................................................................................. 3

1.1.1

Tetra Pak History ............................................................................................................................ 3

1.1.2

Tetra Pak Business Foundation ...................................................................................................... 4

1.1.3

Tetra Pak Vision, Mission, and Strategy ......................................................................................... 4

1.1.4

Tetra Pak Worldwide ...................................................................................................................... 5

1.2

Tetra Pak Asia Pacific Region (APAC) .................................................................................................... 5

1.3

Tetra Pak Vietnam Market Company ....................................................................................................... 6

1.4

Tetra Pak Binh Duong Factory ................................................................................................................. 6

1.4.1

Binh Duong Factory Overview........................................................................................................ 6

1.4.2

Factory layout and our equipment .................................................................................................. 6

1.4.3

Factory capacity.............................................................................................................................. 7

1.4.4

Product Portfolio ............................................................................................................................ 7

1.4.5

Our People ...................................................................................................................................... 82

Milestone of Manufacturing excellence ...................................................................................................... 93

Benefit Achieved ......................................................................................................................................... 113.1

Tangible business result improved day by day ....................................................................................... 11

3.2

Intangible Result is positive trend........................................................................................................... 124

Key of Our Manufacturing Excellence ..................................................................................................... 13

5Achievement Record .................................................................................................................................. 16

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 20222(16)WCM Department
General1. Company, Factory Profile
1.1

Tetra Pak Company

1.1.1

Tetra Pak History
Tetra Pak® is the world's leading food processing andpackaging solutions company. Working closely with ourcustomers and suppliers, we provide safe, innovative, andenvironmentally sound products that each day meets the needof hundreds of millions of people in more than 175 countries
around the world. With more than 24,100 employees based inover 85 countries, we believe in responsible industry
leadership and a sustainable approach to business. Our motto,“PROTECTS WHAT’S GOOD™," reflects our vision to
make food safe and available, everywhere.

Figure 1.1 – Company Logo

Founded on Ruben Rausing’s business idea that “A package should save more than it costs”,
Tetra Pak began its journey in the early 1950s, as one of the first packaging companies forliquid milk. Since then, it has become one of the world’s largest suppliers of packaging systems
for milk, fruit juices and drinks, and many other products. The company’s name is derived fromthe shape of its first carton with tetrahedral shape, now known as Tetra Classic.

“A Package should save morethan it costs”
Dr. Ruben Rausing
Figure 1.2 – Founder Ruben Rausing and First machine delivered.

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

3(16)WCM Department
General1.1.2
Tetra Pak Business FoundationTetra Pak has been the pioneer in Aseptic Processing Technology, which has been identified
as “the most important food science advancement of the 20th century” by the Institute ofFood Technologists, with three businesses: processing, packaging, and service solutions,maintaining the highest standards of food safety, operational performance, and sustainability.
(Figure 1.3)

Processing solution

Technical service

Packaging products

Figure 1.3 End to End solution

1.1.3

Tetra Pak Vision, Mission, and Strategy

Our Vision

We commit to making
food safe and available
everywhere

Core Value

Strategy 2030

1. Customer focus andLong-term view
2. Freedom andResponsibility
3. Quality andInnovation

Our Vision
We commit to making food safe and available, everywhere.
Our Mission
We work for and with our customers to provide preferred processing and packaging solutions
for food. We apply our commitment to innovation, our understanding of consumer needs andour relationships with suppliers to deliver these solutions, wherever and whenever food isconsumed. We believe in responsible industry leadership, creating profitable growth inharmony with environmental sustainability and good corporate citizenship.

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

4(16)WCM Department
GeneralOur Strategy
With the coming decade we have finalized strategy 2030 of deliver food safety and the best
quality, lead the sustainability transformation, integrate and optimize customer cooperation,
innovate for custom growth.
1.1.4
Tetra Pak Worldwide
Tetra Pak is a global company, organized as four clusters: Americas, E&CA, GME&A, Asia
Pacific (APAC). Our product and services provided more than 160 countries, 25147
employees in worldwide. 192 billion of Tetra Pak® packages sold in 2021, Net sales in 2021
more than 11,145 € billion.

Figure 1.4 Tetra Pak Worldwide (2023)

1.2

Tetra Pak Asia Pacific Region (APAC)

Asia Pacific Region is one of Region in Tetra Pak with the whole capacity is 98 billion QSVs
and 6700 employees.
We have 8 plants responsibility to supply Packaging material for 7 Markets.

Figure 1.5 Tetra Pak Asia Pacific (2021)

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 20225(16)WCM Department
General1.3Tetra Pak Vietnam Market Company

In 1993, Tetra Pak Vietnam become one of the first foreign company who registered andoperated in Vietnam.
In last 30 years, go along with our mission of “Protect what’s good”, Tetra Pak Vietnam has asustain growing trend on sales of packaging.

Figure 1.6 Tetra Pak Vietnam sales of packaging trend
1.4

Tetra Pak Binh Duong Factory

1.4.1
Binh Duong Factory Overview
To support for fast growing of Vietnam and APAC market, Tetra Pak Binh Duong Project waslaunched in 2016. Tetra Pak Binh Duong factory is putted into operation in May 2019, withworld-class technical equipment, management system, energy saving and environmental
protection, Factory area: 100,000 square meters; construction area: 36,000 square meters. Ourfactory proud to be the first one got certified for LEED Ver.4 Gold in Vietnam.
Right after production start in 2019, we were certified for 3 ISO system include: Safety,Environment, Quality and BRC. Not only achieve those standards, but we are also doing goodjob of maintaining, especially, for BRC, we proud to be the first factory in Vietnam whoachieved BRC level AA+ in November 2022.
1.4.2
Factory layout and our equipment
Tetra Pak Binh Duong is one line factory with 2 Printers, 1 Laminator and 2 Slitters.

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

6(16)WCM Department
GeneralPrepress

Prepress: 2 Lines

Printing

Coating

Printers: VT Flex 175 Laminator: VTES (2018)
LAM 650/6 (2018)• IVFC(Ink• Dupont machine
Viscosity and Flow
• Easydesigncontrol)
platform• Unwinder Splicingsystem• Futec to ISRA for
print inspection• Rew: Electrical
Braking roller andElectrical shaft
extractor

Slitting

Slitter T2E (2018)• All operations
Electrical (NoHydraulics)• Safety bar for
lifting table• Improved Fumeexhaust system• Software
improvements• Ready for ALIA

CLS Slitter (2018)• Rewinder safety
fencing• Melt glue forrewinder core
• Rew gear
lubrication system

1.4.3

Factory capacity

Factory designed for capacity 5.5 million Standards pack/ year.
Current capacity: 4.4 million standards pack/ year
1.4.4
Product Portfolio
We have two main products are TBA and TFA, accounted 95% in total volume. In 2021 wedeveloped new product as PoMF and TBA Slim Leaf. In 2023, based on demand of customer,
we developed TCA.

Figure 1.11 Product Portfolio

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

7(16)WCM Department
General1.4.5
Our People
The important part to driving our factory is Our People, we have 74% of blue collar, 9% offemale, more than 80% of population is Diploma and Bachelor. We have very young people
who are directly driving factory operation and willing to take the business challenge.
Our factory located in a high developing industrial zone where the labour market is verydynamic.

Figure 1.12 Our People

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

8(16)WCM Department
General2 Milestone of Manufacturing excellence
WCM (TPM) is defined globally as our way of working, that is the reason why Binh Duong
Factory kicked off WCM activity from day one. From 2020, all 10 WCM Pillars were built up
and day by day improve our factory performance.

201720182019

2020

2021

2022

Figure 2.1 Milestone of Manufacturing Excellence
In within last 3 years, we were successfully moving from Foundation level to Silver level follow
our internal assessment and this is the first time we apply for JiPM award. As the main supplierof packaging material for several big FMCG company in Vietnam and Asian, we are frequently
sharing our good practice of manufacturing management to our customers via their onsite visit.
That will be our honour to share our TPM results also to all customers as the certified JiPM
Excellence Award Plant.

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 20229(16)WCM Department
GeneralIn 2019, Tetra Pak Binh Duong's KPI were performing in the bottom tier. But through thededicated implementation of WCM principles over the past four years, we've achieved aremarkable turnaround, propelling ourselves to the top spot in the global rankings in EE
Laminating and MTBI Laminating process

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

10(16)WCM Department
General3 Benefit AchievedSince the implementation of TPM, we managed to improve our performance in both of Tangible
and Intangible. The way of working was improved to increase our capability of Losseradication.

3.1

Tangible business result improved day by day

Here is the summary of our performance:
1) More than 1435 days without accident

KMI - Number of Lost Time Accident (#)
1000000of Accident
2018 Figure
20193.1 Number
2020
2021
202220172023

2) Customer Experience Score was improved 37 points from 2019.

KMI - Customer Experience Score (#)
9285.7766655

20172018

2019

2020

20212022

2023

Figure 3.2 Customer Experience Score

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

11(16)WCM Department
General3) Extend Converting Transformation Cost was reduced 41%

KMI - ECTC Index (%)
10078.8

2017

2018

2019

2020

68.4

60.24

59

2021

2022

2023

Figure 3.3 ECTC Index
4) Production volume was increased 338.5%

KMI - Production Volume (Bio. StdPs)

2.9

4.4

4.4

2022

2023

3.2

1.3

2017

2018

2019

2020

2021

Figure 3.4 Production volume

3.2

Intangible Result is positive trend.

The proactive way of developing our people. Started from the beginning of our Factory, we
have developed our people with very strong skill matrix of functional and TPM. Everyone isinvolving in daily WCM activities: Kaizen, Suggestion, AM, Team improvement.
As the result our Employee Engagement score wase increased 30 points.

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

12(16)WCM Department
GeneralMoral - Employee Engagement Score (#)
8965

2017

2018

2019

7275

2020

2021

2022

95

2023

Figure 3.5 Employee Engagement Score

4 Key of Our Manufacturing Excellence
We always start our Manufacturing Excellence with global strategy 2030 together with ourSCO strategy. Besides, input from Market company and Voice from Customer are these key
inputs for us to define our strategy.

Figure 4.1 Strategy define with link to global strategy

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

13(16)WCM Department
GeneralAlignment and Communication in Whole factory is the approach we bring our Strategy fromHighest level to the Shopfloor people, who are day by day driving our Manufacturing
Excellence

Figure 4.2 Our communication program

Base on the Factory Strategy we define the KMIs, KPIs, and the KAIs to achieve our result.

Figure 4.3 Key Management Indicator developing
To be able to achieve those KMIs, our TPM system focus on 3 must win battles: Must win allteams/improvement project; Must maintain all basic condition; Must engage everyone everyday.
With the right implementation of TPM tool, TPM is enabling us to stay competitive within
Tetra Pak group as well as competitors. People development, zero loss system and governanceTetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

14(16)WCM Department
Generalare the pillars for world class results. Of course, 100% involvement and engagement are thefoundation. TPM mindset develops an environment that encourages people to think in unusual.

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

15(16)WCM Department
General5 Achievement Record
With high engagement and full alignment of all employees, TPM tool and mindset help us todrive all our indicators go in right track.
Below figure show you clearly the positive trend of all our indicators:••••Safety: We maintain zero lost time accident in last 3 years
Quality: Number of standard packs/ customer claim increase year by years
Cost: Total waste is key drive for cost also reduce significantly
Productivity: Our volume produce increase significantly year by year

Figure 5.1 Achievement record

Tetra Pak Binh Duong Factory
Report ID: ID 00027, Company profile
WCM Department
Created Date: 19 Dec 2022

16(16)WCM Department
GeneralTPM Award Assessment Achievement Sheet
Company & plant name

Tetra Pak Binh Duong Joint Stock Company

TPM Slogan/Objectives

Beyon Expectation▼ Please fill in the range of data you are collecting ▼CategoryUnitIndex

Enter the year →BM(TPM Started or lasttime awarded)

Actual Status

Target2019*start 19May2019

2023

2023

S

Number of work-related accidents requiring days offwork

Cases/ year

000

S

Number of work-related accidents not requiring days
Cases/ year
off work

100

P

Productivity for main products

1000 Standard packs/ employee

485

1905

2102

POEE
(or Overall Plant Efficiency)

%

51.20
(Coating machine)

75.70(Coating machine)

78.07(Coating machine)P

Availability%

65.60(Coating machine)

79.87(Coating machine)

84.6(Coating machine)P

Performance Rate%

80.20(Coating machine)

95.22(Coating machine)

92.7(Coating machine)P

Quality Products Rate%

97.30(Coating machine)

99.53(Coating machine)

99.55(Coating machine)P

Number of breakdowns

Breakdowns/ year

261

143

220

PMTBF

Hour

12.51
(Coating machine)

160(Coating machine)

42.00(Coating machine)

PMTTR

Hour

2.60

1.41

1.70

Q

Number of customer complaints

Number/year742831

Q

In-line defect rate (scrap)

%

6.37

2.91

2.90

Q

In-line defect rate (rework)

%

24.34

21.20

19.00

CCost index

Eur/ Million Standard Pack

12.93

8.62

7.20

DProduction Lead timeDays

7.80

3.80

4.00

DDelivery performance

%

58.40

92.60

80.00

SFrequency rate

Number of occupational accidents with leave for
1 000 000 worked hours

1.23

0.00

0.00

M

Number of Employee Suggestions

Number/year

46621

600

* The data is Full Year of 2023
* Bottleneck machine: Coating machine