Fraser & Neave Holdings Bhd Sustainability Report 2019

Quality Excellence Our Quality Excellence team at Rojana Plant initiated a project to improve the efficiency of product releasing scheme of sweetened condensed milk, by shortening the period of microbiology tests from seven days to one day. The shorter timeframe allows our products to be released to the market faster and enables consumers to enjoy the freshly produced sweetened condensed milk. This project will help to achieve annual cost savings of 6.5 million baht, through optimisation of finished goods inventory with lower operations cost, reduction of analysis cost and reduction of water usage in laboratory. Lean Production Management We recognise that lean management is important in our production. Our employees at Rojana Plant initiated a project to increase production line productivity of Sweetened Beverage Creamer (2kg) through effective packaging materials, storage and transportation. The team reviewed the entire process of transportation mechanism of foil from storage room to filling room and implemented an improved design of process flow, including designing and building a storage room near to the filling room to reduce the distance of forklifts, reducing the lead time of changing foil roll to reduce downtime, and installing a roller conveyor machine to reduce workload. This project will help to achieve annual cost savings of 13 million baht, and at the same time reduce the risk of accidents caused by forklifts. EMPLOYEE-DRIVEN INNOVATION We empower our employees to lead when it comes to innovation. Our employees actively participate in ThaiBev’s WOW (Way of Work) Awards, an annual award to promote the concept of ‘Simplicity’, ‘Efficiency’ and ‘Competitiveness’ in our work processes. 19 teams from F&NHB participated this year and won the third runner-up award for an enterprise workflow improvement project and first runner up award for a project on ‘Quality Excellence’. Excel as One Convention (EAO) EAO (previously known as ‘Winning as One’) is an annual convention held for the past 13 years in Thailand to allow cross-functional F&N Dairies Thailand teams to present their ideas to enhance our productivity, cost savings and/or product quality. This year’s convention was held in August 2019 with the theme of ‘Continuous Improvement & Innovation Excellence’. Teams successfully identified solutions which resulted in cost savings or cost avoidance of 18.44 million baht (approximately RM2.41 million) per year. This year’s convention saw continuous improvement activities at the Small Group Activities, Kaizen, Quality Control Circle, and new awards were given for the Innovation category and Lean category. F&NHB is determined to maintain an excellent performance and continual development towards being the best in Innovation in the F&B Industry towards achieving our Vision 2020. Digital Efficiency We are continuously seeking opportunities to enhance our processes using the latest digital technologies. In Malaysia, we implemented an Enterprise Workflow project which digitised, simplified and integrated the processes of our sales team with the IT application - JOGET. Through this web-based system, sales colleagues can now perform sales transactions anywhere and anytime. As a result, processing time of sales equipment requests has reduced from an average of fourteen days to only one day (effectively cutting ten hours of administrative work per month for our sales team). Paper usage has also reduced by 70%. Continuous Improvement Project This year, our employees at F&N Dairies Thailand initiated a Gemba Kaizen project at our plant in Rojana that encouraged continuous improvement in process enhancement and cost reduction. Through this project, the team reviewed the mechanism of display boxes at the packing line and incorporated the Karakuzi Kaizen mechanism (leveraging on gravitational energy). This initiative successfully reduced the frequency of machine jams by almost 90%. and recognised by Technology Promotion Association (Thailand-Japan) 2019 in the Thailand Kaizen Award 2019 with a gold medal. S U S T A I N A B I L I T Y R E P O R T 2 0 1 9 Delivering Value 041