LINDT & SPRÜNGLI
LUSERNA PLANT
COMPANY PROFILE

1 Organization Profile
1.1 Lindt & Sprüngli GroupIn 1845 in Zürich - Switzerland, a confectioner named David Sprüngli and his apprentice son Rudolf,
decided to produce chocolate. Under the influence of a new Italian trend, they started to make solid, rather
than liquid, chocolate.
In the wealthy Zürich society, this became very popular and consequently production was transferred to anew factory in Horgen, on the Zürich Lake. In 1862, Rudolf Sprüngli took the helm of the company andboosted the business, opening a new confectioner shop and moving the factory back to Zurich.
In 1898, after Rudolf Sprüngli’s retirement, his son Johann started to build a new larger factory inKilchberg, on the Zurich Lake, where one year later the production started. Since then, the company
headquarters have never been moved.

With six production sites in Europe, six in the USA and distribution and sales companies on four continents,
Lindt & Sprüngli is recognized as a market leader in the premium quality chocolate business, offering alarge selection of products in more than 120 countries around the world. After more than 165 years, Lindt& Sprüngli has become known as one of the most innovative and creative premium chocolate companies.

1.2 Luserna Plant History
History of Luserna Plant is strictly related to the history of the brand Caffarel. Caffarel was founded in
1826 when Pierre Paul Caffarel (1801–1871) converted an ex-tannery into a chocolate factory. The originalplant was built in Turin, then in 1968 it has been moved in Luserna San Giovanni (TO) the homeland of its
founder, the actual plant is still located there.
One of the most important commercial success was Gianduia chocolate invented by Caffarel in 1852. Thisnew type of chocolate, made by mixing cocoa, sugar and Tonda Gentile delle Langhe hazelnuts (renownedfor their taste), is the innovative recipe of Gianduiotto.
In fact, Caffarel began producing this unique specialty in 1865, birth year of original Gianduiotto.
In 1845 Michele Prochet joined the company and the company name became Caffarel Prochet & Co, thecompany's ties with the Caffarel family ended by 1897, and Prochet died in 1904. The company changed
hands more than once in the early 20th century, and finally in 1997 Caffarel was acquired by the Lindt &Sprüngli Group.
In 2021 Caffarel was merged into Lindt & Sprüngli Italia SpA.

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1.3 Luserna Plant Volume and Products
Luserna Plant is currently producing both for Caffarel brand, both for Intercompany Lindt & Sprüngli
business which is becoming the biggest part of the total production volumes.
Here is showed a deployment of the production volumes of the plant.

Luserna Plant produces a wide range of products which can be grouped in different families.

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1.4 Luserna Plant Organization
Here the Management Team of Lindt & Sprüngli Italia.
CEOBenedict
Riccabona
CEO AssistantChiarelli Simona

CFO
Alberto Zocchi

HR Director
Mossuto
Marco

Sales Director
Francesca DeMarco

MarketingDirector
Brand
CaffarelValeria
UngaroMarketingDirector
Brand Lindt
Francesca
Bernasconi

RetailDirector
Ilaria Cereda

R&D
Director
Nico
Tomaselli

Quality
Director
Roberta
Fogliatto

Operations
Director
Fabrizio
CerinaLindt Group has two production plant in Italy: one in Induno Olona and one in Luserna San Giovanni. The
headquarter of Operations Area is in the plant of Induno Olona but there are some functions specific ofLuserna Plant. In the following flowchart we present the Operations structure related to the Luserna Plant.
Operations Director
Fabrizio Cerina

Op. Director AssistantGiuliana Macchi

Safety Manager
Federica Giai

Technical Director
Luigi Banfi

Planning &Logistic Manager
Cristiano Rosso

Industrial
Performance
Manager
Emanuel Giraudo

Production
ManagerSimone Baretta

MaintenanceManager
Marco Carle

Head of Mass Department.
Marco Ghigonetto

Project Engineer
Flavio Falco

Head of Moulding Department
Stefano Vietti

Project Engineer
Roberto Ferro

Head of Wrappring &Packaging Department
Silvia Ayassot

General Services
Walter Roland

Production Accounting
Manager
Fabrizia TraversIn Luserna are currently working 168 blue collars. The most of the white collars are related to theOperations functions.

42 Milestone on the Journey of Manufacturing Excellence
TPM in Luserna Plant was launched in the middle of 2013 after the decision of the Lindt & Sprüngli
Group to start a global TPM program, called LPW “Lindt Performance Way”.
Luserna Plant started the program in order to better analyze the losses inside the plant, to reduce the costs
and to standardize the processes to avoid fluctuating results of the machines.
The need for the TPM launch was due to different factors, grouped as:- External needs: growth volumes mainly of the Intercompany business; a competitive selling price;
yearly progressive reduction in operating profit;- Internal needs: low efficiency of productions lines; training hours not formalized and tracked; a generallack of KPI’s and Pareto culture; need to adopt continuous improvement approach;

The first step was to roll-out the 5S program to all the production areas and setting up a reliable
Performance Control System (PCS). The PCS was set up on every production line with standardizedboards.

From 2019 we had eight pillars running and in 2021 we achieve the JIPM Excellence Award.
In 2023, achieving STEP 5 on the most of our lines, we apply for the award for TPM Excellence inConsistent.

53 Benefits Achieved
The TPM methodology helped to increase the knowledge and the awareness of the employees. Below
there is the chart with the Factory KPIs in terms of PQCDSME.
INDEX ( Calculation Formula)

CATEGORY

Unit

2013
TPM
Kick Off

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Delta %
2013
/2023

PPlant Productivity

kg/ h produced (2013as 100 baseline)

100107

121

135

142

163

179

207

255

262

255

155%

P

Filling Line%

4445

4650

535965

6874

69

7161%

P

Chocolate line%

64637375

72

68

69

6970

69

7416%

P

Cutted products - Delver%

6364

65

66

68

6064

66

77

75

79

25%

P

Bindler%

4654

56616131%P

F.A.G.

%

58585858

58

59

58

6267

65

7631%

P

Spread Line PMR (until 2020) - CMI%

30

30

30

45

52

68

75

5551

53

5377%

P

Wrapping machine AC0332

%

81

81

8183

80

82

81

78

76

79

79-3%

PWrapping machine AC0790%

616168686872747674

65

7014%

P

Jointech-FIMA%

5959

68725665737376

7773

24%

Q

N°Consumer Complaints / tons molded#/ tons

14101811119-39%

Q

Non Right 1st time Levels II and III% (tons/tons)

1,1%

0,8%

0,1%

0,1%

0,1%

0,2%-78%Q

Non Right 1st time Levels IV, V and VI% (tons/tons)

1,8%

2,3%

2,5%

1,7%

0,7%

0,7%

-61%

C

Waste of production (% tons)

%

1,6

1,9

1,8

1,7

2,1

2,3

1,8

1,1

1,3

1,1

1,3-19%C

Rework (% tons)%

2,62,1

1,92,01,9

1,62,1

2,2

2,62,73,329%€/ton produced (2013as 100 baseline)€/ton produced (2013as 100 baseline)

100

97

87

8174

65

5956

48

50

49-51%

100

104

102

83

60

52

47

48

41

39

47-53%-31%

C

Direct labour costC

Indirect cost (excluding depreciation)

DOn time%

98,999,199,399,299,299,299,198,868,868,868,0D

Case Fill%

98,798,599,099,198,798,799,298,297,897,798,0-1%

SLost time accidents (requiring days off working)#340112

3001

1-67%

SFirst Aid (not requiring days off working)#18214229212022611119-50%

M

Sick leave%

4,75,7

4,5

5,8

6,1

6,3

5,1

6,36,17,3

9,091%

M

Turnover rate Operations

%

19,0

19,0

12,6

4,9

2,3

8,0

6,9

5,6

18,3

7,08,4-56%

M

Satisfaction Index (from Company Survey)%

E

Water Consumption

fresh water m3/tonproduced

18,8

18,8

20,7

17,4

13,3

11,7

12,0

9,5

10,4

10,96,9-63%

EEnergy Consumption

MWh/ton produced

3,43,43,43,02,7

2,52,32,42,1

1,81,7-50%

5756

617%

During last five year we also obtained intangible results, below are some highlights:•
Standardized working processes across the whole factory;•
The development of skills through training and knowhow improvement;•The creation of an environment where all workers can get involved;•Discipline and an “speaking by numbers” approach;•Involvement of lot of people in Improvement teams, Autonomous Maintenance initiatives;•Culture of zero losses, zero defects and zero breakdowns has been established aiming to achieve
excellence in every part of daily activities.

64 Key of our Manufacturing Excellence
Our current “House of improvement” is based on the two foundations of PCS and 5S, while the pillars areworking to eradicate their proper losses.
On the roof of the house is displaced the name of the program of our company, LPW. In 2021 the company
changed the name of its improvement program from “LPW: Lindt Production Way” to “LPW: Lindt
Performance Way”. This represents a milestone in the development of the program, where through the helpof digital technologies as enablers, we want to extend the perimeter of action on the end-to-end value chain,from suppliers to customers.

At the very top is the Hoshin Kanri, that allows us to systematically deploy company strategy and highlevel company targets into practical actions. The link with the company targets is run by the monthly
meetings of the Steering Committee. The Steering Committee oversees the progression of LPW activities
and is responsible for:•Checking the status of the eight pillars and providing support when needed•
Confirming the teams proposed by pillars•Verifying the results of the teams by monitoring and tracking results

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