EUROPEAN OPERATIONS RESET MODEL VINCENT MAURICE VP OPERATIONS DAIRY DIVISION

Transcription

1 EUROPEAN OPERATIONS RESET MODEL VINCENT MAURICE VP OPERATIONS DAIRY DIVISION

2 TOUGH MARKET CONDITIONS ARE IMPACTING THE DAIRY MANUFACTURING ORGANIZATION IN EUROPE Volume (kt) B % 70% 60% 50% 40% 30% Sustained efforts led to a better efficiency in plants But volumes are steadily decreasing since 2010 Resulting in continuous reduction of capacity utilization in Europe Overall asset utilization (Operational efficiency x Operational utilization) now below 35% Volume Ope. Efficiency Ope. Utilization Note1: B2014 includes a change of scope with 4 plants less in the network, equivalent to 167kt

3 RESULTING IN A FRAGMENTED MANUFACTURING FOOTPRINT WITH HIGH COMPLEXITY 24 plants in early 2013 Castello Lunnarp Bailleul Hagenow Molay Rotselaar Warsaw DPB Bierun Ochsenfurt Benesov Salas Rosenheim Villecomtal St Just Budapest Casale Tres Cantos Parets Bucharest Sevilla Aldaia Sofia Ambitious plan to transform European Operations Tenerife

4 NEVERTHELESS, WE CONTINUOUSLY CREATE VALUE THROUGH INNOVATION KISS OIKOS / DANIO ACTIKIDS / DANONINO 12 plants 2 plants 3 plants Packaging Process & Packaging Packaging Significant CAPEX allocated to differentiate our products through innovative technologies

5 MEANWHILE SIGNIFICANT IMPROVEMENT ON SEVERAL KEY PERFORMANCE FUNDAMENTALS CUSTOMER SERVICE LEVEL WATER CONSUMPTION (m 3 /T FG) CO 2 EMISSIONS (G Eq CO 2 /Kg FG) % of CSL H 2 O consumption, m 3 /ton CO 2 consumption 99 +1ppt 3.2-6% %

6 TO REACH SUPERIOR PERFORMANCE, WE NOW FOCUS ON 3 STREAMS FOR OPERATIONS IN EUROPE 01 Integrated Operations organization 02 Manufacturing Competitiveness 03 Supply Chain Co-partnerships

7 1 INTEGRATED OPERATIONS: A CHANGE OF ORGANIZATION TO UNLEASH THE FULL POTENTIAL OF END-TO-END OPERATIONS 2013: reinforcement of European Operations to leverage synergies across the full Value Chain Our Value Chain goes from the farm to the fridge

8 2 A DEEP DAIRY FOOTPRINT CONSOLIDATION TO BETTER CREATE VALUE AND STRENGTHEN COMPETITIVENESS European network 16 plants by mid 2015 Network optimization from 24 plants in 2013 to 16 plants in 2015 Lunnarp Tenerife Salas St Just Villecomtal Casale Castello Tres Cantos Parets Sevilla Aldaia Molay DPB 2013 Sale of Castello, Benesov, Sofia Closure of Sevilla Bailleul Rotsel aar OchsenfurtBenesov Rosenheim Hagenow Warsaw Bierun Budapest Sofia Bucharest 2014 Sale of Tenerife Closure project of Casale, Budapest, Hagenow Better assets utilization: +8pts YE15 and +15pts by YE18 Clear technology and European sourcing role for each dairy plant

9 Copyright 2014 by The Boston Consulting Group, Inc. All rights reserved. 2 CONTINUOUS IMPROVEMENT REMAINS OUR CULTURE: A GLOBAL IDEAL FACTORY PROGRAM RECENTLY LAUNCHED BENCHMARKS STANDARDS ROADMAPS Selection of operational KPIs Approach de-averaged by process technologies Identification of performance gaps / assessment of plant maturities Detailed operational standards for each performance topic Documented support for each plant to progress in its practices Construction of Danone Dairy Production System Work with each plant on a single reference document gathering all productivity projects in next 2-3 years Roadmap fully owned by the plants 1.2 M de gains associés à des initiatives nécessitant des capex 5 initiatives capex sur 9 ont des payback inférieurs à 2 ans Répartition des Capex des initiatives selon leur Première estimation des besoins CONFIDENTIEL durée de payback (vague 1) en Capex par usine Vision d'ensemble du phasing possible des initiatives et impact ETP M de Capex 2.0 Estimati Gains Cape on du # 2014 Initiative (k ) x (k ) payback 0.1? 1.6 (années) Initiatives locales VLC-24 Chargement Vague par les chauffeurs implémentation suivi du phasing du du plan détaillé par par usine : Vague 2 : ETP (- 57 par an) - 43 ETP VLC-31 Arionic pré-traitement Gaz VLC-29 Eclairage Fréquences à ledsde des fab ateliers : - 4 ETP H24(-1, -3) Initiatives 0.5 transverses VLC-36 Obus Optimisation masses blanches des CFU : - 36 ETP (- 4015, -18, 65-4) 1.6 Vague 2 CFU : - 3 ETP / avec pilotage Isolation des échangeurs boucles central 3 VLC-30 Volumes européens : ETP NEP 0.0 Initiative Eole (automatisation Optimisation des organisationnels 5 : - 16 ETP (- 8, - 8) VLC Payback Payback Payback Capex à total Capex des plieuses) <= 2 ans compris > 4 ans déterminer vague 1 VLC-10 Augmentation de la cadence Réduction fréquence 100 de 300 livraison : 3-50 ETP (- 4, -13, -21,-12) entre 2 Supply et 4 ans VLC-28 Instrumentation consos Mécanisation et autres 5.2leviers supply : - 50 ETP (- 11, -28, -11) Gains associés (M ) VLC-32 Divers PNI avec CAPEX 170 TBD TBD Nombre d' Optimisation de la collecte : - 11 ETP (- 4, -7) initiatives Total Lait Sites laitiers : - 13 ETP Source: Entretiens avec les membres du CODU, baseline E1 2013, analyse BCG Ideal Factory proposal 12mar14-18 mars v10.pptx Draft for discussion only OVH DL : - 25 ETP76 4 (-7.5, -7.5, -10) Impact ETP 6 (Total : 406) 80 ETP (21 intérim) 121 ETP (38 intérim) 125 ETP (38 intérim) 80 ETP (18 intérim) A intégrer dès 2014 Vague 2 ou en local 1. Réduction des fréquences de fabrication lien de l'ordo avec les interfaces lait vu en parallèle 2. Principalement DPB et VLC (enjeux plus importants sur les fruits) 3. Optimisation des CFU avec le chargement par les chauffeurs et changement des organisationnels ETP dans les DL locales sur site usine 5. Hors fermeture WE des sites. Impact headcounts à prévoir 6. Impact intérim : indus réparti de 2014 à 2016, supply de 2015 à 2017 Note : Chiffrages arrondis Source : Interview, Analyses BCG Les informations et propositions contenues dans ce document sont des hypothèses de travail et ne constituent en aucun cas des décisions de changement d organisation. 29 Aucune décision éventuelle ne serait prise sans consultation des représentants du personnel conformément à la loi. Leveraging DPFF Project Villers Cotterets' experience 17 fév v3.pptx

10 3 SUPPLY CHAIN: A KEY ASSET TO DELIVER FRESHNESS AND COMPETITIVENESS TO DIFFERENTIATE AT POINT OF SALE Unique Best Total Cost Co-Logistic / Co-Distribution Total Cost To Serve Go To Market Superior Point Of Sale Differentiating from competitors in each market where we operate In a sustainable manner (will last over time) Generating value Generating customer / shopper preference For all customers Best freshness

11 3 AN INNOVATIVE MODEL TO BETTER CAPTURE VALUE THROUGH PARTNERSHIPS WITH FMGC S OR LOGISTICS PROVIDERS

12 THE EUROPEAN VALUE CREATION MODEL AND INITIATIVES ARE AS WELL ROLLED-OUT GLOBALLY 01 Integrated Operations organization 02 Manufacturing 03 Competitiveness Supply Chain Co-partnerships