EARLY MANAGEMENT (EM)

PILLAR REFERENCE GUIDE

Early Management
PILLAR REFERENCE GUIDE

Version 3
November 2016
Page 1 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

© 2016, NESTEC LTD.

Property of NESTLÉ. For internal use only.

STRICTLY CONFIDENTIAL: no reproduction without NESTLÉ prior authorisation.

Page 2 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

TABLE OF CONTENTS
Table of contents ......................................................................................................................................... 3
Document control ........................................................................................................................................ 4
Introduction .................................................................................................................................................. 5
Target audience.......................................................................................................................................................... 5
Objective .................................................................................................................................................................... 5
The document is... ...................................................................................................................................................... 5
The document is not... ................................................................................................................................................ 5
Document map ............................................................................................................................................. 6
Pillar definition ............................................................................................................................................. 7
What is a Pillar?.......................................................................................................................................................... 7
Pillar mission .............................................................................................................................................................. 7
Pillar objectives........................................................................................................................................................... 8
Pillar role .................................................................................................................................................................... 8
Pillar Implementation Strategy ................................................................................................................... 9
Starting EM Pillar ........................................................................................................................................................ 9
EM Implementation CYCLE ...................................................................................................................................... 10
Expected Contribution to TPM Maturity Phases ....................................................................................................... 13
Interactions with the other Pillars .............................................................................................................................. 14
Pillar methodology .................................................................................................................................... 16
Description................................................................................................................................................................ 16
EM Systems ............................................................................................................................................................. 16
Synchronization of Activities ..................................................................................................................................... 17
Interactions between EM Cycle and Projects ........................................................................................................... 17
Expected Results – Measures .................................................................................................................................. 19
Waste Prevention....................................................................................................................................... 21
Description................................................................................................................................................................ 21
Activities ................................................................................................................................................................... 21
Deliverables .............................................................................................................................................................. 25
Standards & Feedback .............................................................................................................................. 26
Description................................................................................................................................................................ 26
Activities ................................................................................................................................................................... 26
Deliverables .............................................................................................................................................................. 31
Project Management Foundations ........................................................................................................... 32
Description................................................................................................................................................................ 32
Activities ................................................................................................................................................................... 32
Deliverables .............................................................................................................................................................. 35
Operations & Start-up Management ........................................................................................................ 36
Description................................................................................................................................................................ 36
Activities ................................................................................................................................................................... 36
Deliverables .............................................................................................................................................................. 39

STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 3 of 39

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

DOCUMENT CONTROL
Changes made
Date of update Updated by Status of
(Section numbers and Version #
(dd/mm/yyyy) (Author name) document
description)
02.09.2013 Jose Ferrato EM Pillar Reference Guide 1.0 Superseded
01.09.2015 Jose Ferrato EM Pillar Reference Guide 2.0 Superseded
Complete revision of the
24.11.2016 Robert Le Dortz 3.0 Released
document

Page 4 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

INTRODUCTION

TARGET AUDIENCE THE DOCUMENT IS...

The target audience for this document is any  Aligned with the St-00.907 - Corporate
person involved in an industrialisation project. Engineering Standards that describes
the principles of Project Management
For instance Market TPM Managers, EM Foundations and provides an
Pillar leaders and members, Chief Engineers, introduction to EM methodology.
Factory NCE Coordinators, Other NCE Pillars  An integral part of the EM Pillar
Leaders and members, Project Managers, Framework (refer to the Support
Application Groups and TCUs. Materials in the EM Pillar Knowledge
Centre).
It can be used as a reference at different
levels of the organisation (Factory, Market,
Function, R&D and NPTCs). THE DOCUMENT IS NOT...
 A training document or a set of
OBJECTIVE examples.
This document explains Early Management  A description of the EM Pillar structure,
roles and responsibilities and
methodology which is the way to manage
management routines. This information
industrialisation projects in Nestlé. It covers
is available in the EM Pillar Framework
any project with direct impact in
(Support Material for EM Pillar Reference
manufacturing, including recipe introduction
Guide), which you can find in the TPM
or changes, lines installation/modification,
Knowledge Center.
packaging change and other.
Early Management enables multifunctional
collaboration for continuous improvement of
the delivery of new product, equipment and
processes, achieving sustainable Vertical
Start-up.
It also reinforce the importance of establishing
and using standards during industrialisation
projects.

STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 5 of 39

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

DOCUMENT MAP

This document is part of the TPM Knowledge Center. The link below gives you access to this
Knowledge Center and other TPM related documents (Implementation Strategy, Governance,
Pillar Reference Guides and Support Material).

Page 6 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

PILLAR DEFINITION

WHAT IS A PILLAR?
Early Management aims to build and sustain
What it is capability for industrialisation excellence,
The EM Pillar is a team of people who have enhancing cooperation between R&D,
expertise in, and disseminate, Early Operations and Project Teams in a
Management methodologies. consumer-driven war to eliminate waste from
initial new design to full-scale production.
A “Pillar leader or member” is usually a role,
not a position. Refer to the NCE Operating
Framework for details.
What it does…
It builds people competency on the EM
methodology through training, coaching and
assessments.

PILLAR MISSION
Our mission is to enable our people to deliver
Manufacturing Excellence through
industrialisation projects. This means launch
new equipment, processes and products with
a sustainable Vertical Start-Up, so that
business objectives are reached at the right
time and at the right cost.

In every industrialisation projects, with or

We provide a set of practices that engage our
without investment, Early Management also
people to deliver loss-free manufacturing
delivers Manufacturing Excellence by setting
systems by working cross-functionally,
Standard routines from the beginning of
implementing established Standards and
operations.
Best Practices with discipline and re-applying
what they’ve learnt from experience.

STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 7 of 39

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

PILLAR OBJECTIVES PILLAR ROLE

How to fulfil the mission What the Pillar does

A Pillar’s role comprises the following four
The primarily objective of EM Pillar is to enable activities:
our multifunctional Project Teams, which
includes NPTCs when required, to deliver loss-
free manufacturing systems impacting in all  Methodology:
dimensions of Manufacturing Excellence: the Pillar should master the methodology
Safety, Sustainability, Quality, Cost, and tools in order to support the
Availability and ultimately Asset Intensity. organisation (methodology and tools are
designed by Master Pillars)
To do so, we will:
 Promote a waste prevention mindset,  Training:
enhancing collaboration on losses analysis the Pillar provides training on Pillar
(with FI Pillar) that enable Project Teams methodology and tools.
to understand manufacturing losses in
existing solutions and plan for its  Coaching:
elimination in every industrialisation. the Pillar coaches on the application of
Pillar methodology and tools.
 Promote and foster a “Vertical Start-Up”
mind-set amongst all project stakeholders.
 Assessment:
 Provide systems to assure projects will be
the Pillar ensures the right application of
designed and resourced for Manufacturing
the methodology and tools.
Excellence from the start.
 Leverage existing company and category
standards, promote learnings and
improvements from existing manufacturing
systems, as inputs to new projects.
 Develop collaboration between
Operations, R&D and Categories for better
understanding of manufacturing
requirements based on the TPM initiative.
 Develop Project Teams and improve their
competencies to use EM methodology and
tools as part of the end to end project
management process.

Page 8 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
PILLAR IMPLEMENTATION STRATEGY
STARTING EM PILLAR
At Market Level
The launch of EM Pillar at Market level is
aligned with the TPM implementation Plan of
the market. As soon as the first factory of
market gets ready for progressing to Phase
1, the pillar should be launched and its
members trained to better support the
achievement of Manufacturing Excellence
through industrialisation.
Picture 1 NCE Advanced Practices Implementation Steps
At Greenfield Level
Greenfield projects are to be implemented
according to EM methodology. As a general
requirement, it is expected that new factories
open their Gate and reach TPM Phase 1
within the first year of operations.
For this reason, the following aspects need to
be taken into consideration:
1. EM Pillar has to be launched at
Market level and trained to support
the Greenfield project.
Page 9 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
At Factory Level
For launching the Pillar in factories, it is
necessary to have a Market EM Pillar
launched. Factory EM Pillar will be launched
as part of the TPM Phase 1 implementation,
as illustrated in the image below. For
factories where important Industrialisation
projects are forecasted, it is also
recommended to launch the EM pillar as
early as possible in order to start building
capability in the teams.
2. The Project team need to be trained
in EM Methodology and apply EM
Methodology and tools.
Note that Leadership Development (LDv)
requirements may not be fully satisfied at the
time of Gate Assessment and should be
reviewed later on as per Market NCE
strategy.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

EM IMPLEMENTATION CYCLE
Description
Early Management Pillar works in a cycle of
continuous improvement that helps to
consistently develop internal capability for
preventing waste in each industrialisation
project selected in the OMP. By leveraging
this cycle we keep ensuring that every effort
we put on Industrialisation delivers the short
term business results and also sets the long
term industrial capabilities and competencies
needed for the market and factories to deliver
Operational Excellence.
Once the Market and selected Factories have
met the conditions to launch the pillar they
need to set the cycle and perform it at least
once a year and every time there is a
significant change in the OMP or in the
projects portfolio, such as changes in
priorities, new business requirements, major
organisational changes, etc

Picture 2: EM Cycle and relationship with OMP

Roles and Responsibilities

In order to guarantee consistency and functional approach. The table below

alignment the execution of the EM cycle provides guidance on the different people
should be performed with a cross- involved in the process.

Page 10 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
At their respective level, EM Pillar leaders
play an active role of facilitator for the
different steps of the EM Cycle.
Lead
Chief Engineer
Market Level
I&R Manager
Factory Level Factory manager
1. Understand previous projects results
(I&R, Capex, improvements projects):
Even prior to the pillar being set-up
(either at market or at factory level), there
is a legacy from previous projects. It is
very important to understand the lessons
learnt from previous successes and
failures. This understanding will help the
pillar to drive more efficient
industrialisation efforts to reach business
objectives.
The investigation should include at least
the following elements:
 Analyse the effect that recent
projects have had on business
results and what has been their
contribution and impact.
 Identify -in previous and existing
projects- the different problems, in
particular the ones that are most
common across projects.
 Identify also the best practices
that may have helped prevent
problems before the project start-
up phase/product launch.
 Find what are the typical
resources, the timelines to deliver
the projects and how they have
been influenced by the best
practices and problems
previously identified.
STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 11 of 39
Participate
Market NCE Champion
Market TPM Manager
FI Market Pillar Leader
EM Pillar Leader
Factory EM Pillar Leader
Factory TPM Coordinator
FI Pillar representative
Factory Executive Committee
 Collect through the other pillars
what are the typical operational
issues delivered from projects.
2. Understand current losses:
It is important to understand the current
losses that exists on the manufacturing
area to ensure industrialization projects
will effectively contribute to their
elimination and to prevent future ones.
For that is critical to include at least:
 Loss tree analysis from the
market factories (LTA)
 Loss tree analysis from similar
factories in the category(LTA)
 Detailed analysis on unplanned
and planned stoppages
 Category benchmarks on the
losses for specific line design.
FI Pillar can help to get detailed
understanding of current situation, and
prioritize losses.
3. Understand market and factory
competencies:
Map EM competencies currently
available at the market and at factory
levels and their contribution to
continuously improve the results of the
projects. This mapping has to be done for
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
project teams, project sponsors and any
other relevant stakeholders. Understand
which competencies should be prioritized
for short and long term success.
Overall competency level of the
concerned operational staff should be
evaluated as well.
4. Understand projects portfolio
contribution to business priorities:
Industrialization projects are expected to
contribute to Business short and long
term objectives. Therefore a clear
understanding of the integrated project
portfolio has to be developed, at
categories, market and factories level.
Then the priority projects EM Pillar will
focus on can be identified and selected.
For the first iteration, the Pillar should be
launched after this 4th step at the latest.
5. Develop pillar implementation plan to
support projects execution:
Based on the results of the previous cycle
steps, the EM Pillar Implementation Plan
provides the guidance for the pillar
members on what are the required
competencies to be developed during the
year. Support from other NCE Pillars may
be required.
In that sense the EM Pillar
implementation plan contains the specific
activities required to train, coach and
assess project teams and their
connection with each project specific
milestone.
The EM development plan should be
aligned to the business needs.
At Market/Factory Level:
 Develop EM coaches at the
market/factory to provide
capability to the coming project
teams.
Page 12 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
 Establish competence matrix
for project teams to understand
their strengths and opportunity
areas and built development plan
accordingly.
 Ensure awareness for
Market/Factory Leaders on the
basic concepts behind EM to
inspire the organization.
 Establish training calendar for
the market, factories and project
teams based on competencies
required.
 Ensure collaboration with E&T
Pillar to support this activity.
6. Execute pillar implementation plan
and projects and monitor progress:
The EM pillar drive results via the
development of the project teams. To
achieve such purpose the EM Pillar team
should establish:
 The specific coaching sessions
for the project teams, particularly
during critical periods of the
project development (i.e. losses
understanding, definition of CQV
plan, etc.)
 The proper project routines that
support the project teams to
autonomously check the health
of project progress. (DOR;
WOR).
 The project governance routines,
enable steering committees and
project teams cascading /
escalation process as well as
change management when
required. For more information
on how to establish a proper
routine, refer to the GA
Reference Guide.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

EXPECTED CONTRIBUTION TO TPM MATURITY PHASES

The image below, illustrates the minimum expected contribution of the EM Pillar to the TPM
Maturity Phases for factories.
At Market level, setting-up the EM Pillar is required before launching pillars in factories to support
capability building and proper deployment.

Picture 3: Contribution of EM to TPM Phases

Page 13 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
INTERACTIONS WITH THE OTHER PILLARS
As Early Management intends to deliver
Manufacturing Excellence through projects, it
is of paramount importance that all the
requirements coming from the other NCE
Pillars are well understood so that project
results can reach expectations. In order for
the results to be obtained, the other Pillars
also have developed specific methodology
and tools.
Therefore, other Pillars need to support and
build competencies of the EM Pillar leader
and members at the different levels of the
organization (Market and Factory Pillars,
Projects Teams). As a result, the outcomes
of the project will be consistent with the NCE
Advanced Practices Maturity Phases
expectations and standards.
The chart below illustrates some key
interactions (gives and gets) between each of
the NCE Pillars and EM Pillar. At Market and
Picture 4: Examples of some interactions between EM and some other Pillars
Page 14 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
Factory level the interactions will be triggered
while running through the EM Pillar
Implementation Cycle with the proper level of
collaboration between all required
Stakeholders. That way the priorities can be
set regarding capability building and
consistency can be ensured between TPM
Roll-Out and Projects Portfolios.
What is really important to consider here is
not only the current status of TPM
implementation within the organization but
also the forecasted one at the time projects
will deliver operations.
As a consequence of these considerations,
the impact on the resources allocation plan of
the organization need to be evaluated and
relevant decisions taken.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

At project level, from a practical point of view,
these interactions are triggered as part of the
project team’s activities during the project
preparation and execution. This will ensure
project teams consider other Pillar’s inputs as
part of their scope, as well as they plan and
receive the necessary support during the
project execution.

Page 15 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

PILLAR METHODOLOGY

DESCRIPTION
In our journey toward Manufacturing
Excellence it is critical that for every
industrialisation project and each time we
introduce a new technology or product to a
factory a clear focus is made on designing
“waste out”. For that purpose, all project
related activity have been classified into 4
main systems that are described below. It
must be highlighted that sustainable Vertical
Start-Up will be delivered if and only if the
activities of each of these systems are
performed in a synchronized way. This
requires good cooperation between all key
stakeholders, specifically Operations,
Categories and R&D. Deep involvement and
strong collaboration of key equipment
suppliers may also be required.

EM SYSTEMS
The 4 different systems and their purpose are
described below:
Waste Prevention
Ensure clear identification and understanding
of losses and provide ways to prevent them.
Standards and Feedback
Ensure adherence to Standards and enable
continuous learning from projects and current
manufacturing operations
Project Management Foundations
Provide the disciplined way for the teams to
steer and deliver projects, including the
sequencing of activities
Operations & Start-up Management
Ensuring the Operational preparation and
Start-Up execution required to enable
Vertical Start-up.

Picture 5: the 4 EM Systems

Page 16 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
SYNCHRONIZATION OF ACTIVITIES
Project’s activities required are sequenced
through a Multi-Functional Project Workflow,
a stage gate process defined to conduct any
industrialization projects within Nestlé. It
covers all the key tasks in a project’s
execution, as well as the milestones and
gates required to monitor and control the
project.
It reflects internal and external best practices
in project management and provide structure
to project management, standardization in
Picture 6: Project Workflow
INTERACTIONS BETWEEN EM CYCLE AND PROJECTS
While the EM cycle should be triggered and
executed at least on a yearly basis, projects
follow their own lifecycle. Project Teams will
apply EM methodology in their projects by
executing activities from all 4 systems in a
synchronized way.
STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 17 of 39
planning, scheduling and controlling, and
thereby avoiding the waste of time, money,
and resources. All the required activities are
grouped in the Task Completion Checklist.
At each step and for each activity, the
expected Deliverables are clearly defined
and available for the Project Teams.
For more information about Project Workflow
please refer to the EM Knowledge Center.
These activities are organized and
sequenced throughout the steps of the
Project workflow.
Interaction between projects and EM Cycle
can be represented on the following picture.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

EM Pillar follows a continuous improvement cycle…

…while each project team follows the project workflow

Picture 7 – Interactions between EM cycle and projects

Page 18 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

EXPECTED RESULTS – MEASURES

Project Measures
The EM methodology must be applied to
manage industrialisation projects, with or
without investment. In order to drive the good
quality of implementation and the
achievement of the results, Vertical Start-up
has been defined as the key final measure for
project success.
It has been broken down into PPIs and APIs,
and a Vertical Start-up dashboard was
established, to clarify how each function
contributes to its achievement.
These elements are presented in the
following table.
The frequency of monitoring is a
recommendation and may vary depending of
the project size and complexity. It can also be
adapted as required during the project
execution, according to point of focus at a
given time.

Expected
Type Measure Frequency Why do we need this measure?
result
At the end of This is the final measure of project success
PPI Vertical Start-up Yes
the Project (see details in the next section)

To ensure we learn from previous

API % Adh. to standards Quarterly 100%
experience and sustain knowledge
% Adh. to improvements To ensure we learn from operational
API Quarterly 100%
replication continuous improvement activities

To track how the project is working on the

% Adh. to loss prevention
API Monthly 100% loss prevention opportunities identified at
plan
early stages

To ensure operators, technicians and staff

have the right competencies to operate and
% Adh. to development
API Monthly 100% maintain the new manufacturing solution,
plan
including competency on TPM reliability
pillars.

To ensure projects are on track and

API % Adh. to Project workflow Quarterly 100% capturing their learnings in the milestone
PDAs
Recordable Injury Rate To ensure we care about our people during
KPI Monthly 0
(RIR) project implementation

To constant monitor project expenditure

PPI % Adh. to expenditure plan Monthly 100%
against the plan

To measure the quality of the initial plan of

API # of Scope Changes Monthly 0
the project

Additionally to the measures above, for

The three last measures are already as per projects with investments, it is expected that
St-00.907 - Corporate Engineering the equipment and operators pass through
Standards. an AM assessment according to TPM/AM
Pillar requirements.
The detail of the calculation can be found into
the EM Measures Manual which is available
on the Knowledge Centre.

STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 19 of 39

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
Vertical Start-Up
Definition
EM aims for flawless introduction of new
products and equipment, impacting all 5
dimensions of Manufacturing Excellence.
This means launch new equipment,
processes and products with a sustainable
Vertical Start-Up, which is defined as follows.
It is a measure of Project Success that shows
that the new production system:
Picture 8: Vertical Start-up Chart
Measure
A line achieves sustained AI ≥ 80% in less
than 100 days after commissioning
completion. It applies for both new and
modified lines.
The key contributors for achieving this are:
On Time Elements:
 Commissioning completion on time: No
gaps on installation, on functionality,
Safety or food safety. Confirmed with
Steering committee at Gate Go to
Qualification Meeting (MS6).
Page 20 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
 …has been delivered and validated
for Manufacturing Excellence
 …is free of problems and with
minimum waste
 …has been delivered On time, Right
First time
 …had capabilities built from a defect
free design to deliver a defect free
operation
 Technically Acceptance Time Line
Agreed for selected SKU’s
In Full Ramp-Up Elements:
 Ramp up Plan Agreed based on
Success Criteria validated by Steering
Committee on MS2 / Go to Industrialize
Gate.
 Volume for Product Launch Gate by
SKU
 Asset Intensity Target Sustained for 3+
weeks
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
WASTE PREVENTION
DESCRIPTION
Why / purpose
As described the primarily objective of EM
Pillar is to enable our Project Teams to
deliver a loss-free manufacturing solution.
It is understood that the Product Cost may be
affected by different kind of losses, as
illustrated in the image below:
Picture 9: Product Cost contributors
Manufacturing Losses covers any kind of
losses during the manufacturing process, like
quality or productivity losses, for example,
which will directly impact the Cost of
Production (CoP) and, consequently, the
Product Cost.
The Business Losses are impacted by
Time-to-Market, missed opportunity and
others.
Finally, Project Losses groups all kind
losses generated due to mistakes or
omissions during project planning and
execution. It can generate delays,
overspending, extra start-up costs and
ultimately, manufacturing losses into future
operations.
In order to continuously improve the results
delivered by our projects, it is essential to
learn not only from previous projects, but also
from existing and/or similar operations.
Existing losses identified need to be
analysed, its root cause understood and
STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 21 of 39
preventive actions taken as part of new
projects, to avoid same issues to reoccur.
The continuously application of this process,
project after project, will contribute to build a
‘loss-free by design’ mindset, and to achieve
Manufacturing Excellence with every project.
Waste Prevention System groups the
different activities that will enable the Project
Teams to remove waste by design.
ACTIVITIES
 Understand Losses
 Set Target
 Prevent losses
Understand Losses
Why / purpose:
To have a detailed understanding of losses in
existing similar operations, as well as losses
that occurred in previous projects.
Description:
At the beginning of a project, the Project
Team must build a clear understanding of
losses from existing similar operations,
including incidents, consumer complaints,
waste, quality defects and stoppages. Once
the targets are set, this information will
enable the team to evaluate the gaps,
prioritize them and plan the actions that need
to take place, in order to ensure the new
projects won’t bring the same losses and
therefore deliver below expectations.
The Project Team should also understand
the losses generated during previous project
execution, which are captured through the
analysis of Project Learnings. More
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
information is available in the Standards and
Feedback System.
The following processes and tools will
support this activity:
Loss Tree Analysis (LTA): in order to have
a pragmatic and detailed understanding of
existing losses, organized by categories and
based on a cost perspective.
The following table shows the different
manufacturing loss categories, which will be
identified in the analysis.
For more details about LTA, refer to the FI
Pillar Reference Guide.
Picture 10: Loss categories
Identify, Prioritize, Assign (IPA) and data
collection: will be used to collect and stratify
any other losses not captured in the LTA
(incidents, consumer complaints, water and
energy consumption, etc…).
Refer to FI, Quality and SHE Reference
Guides for more details.
Page 22 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
Current Operations Assessment (COA): in
order to understand the current issues in
similar operations, the readiness of the
technology, the best practices and the
organization culture in the project, including
operational competencies gaps.
Benchmarking and tagging (for equipment)
activities are recommended to be performed
in order to enrich the understanding of
current operations.
Even similar equipment not under TPM
implementation can be the object for tagging
for a project purpose.
Quality Matrices (QX/QM): QX Matrix
correlates defect modes, machine
components, process parameters and
machine settings, while QM Matrix identifies
the process conditions that have significant
impact on defects (Q Factors) and the way to
control them.
The understanding of these matrices will
enable the Project Team to improve the
machine settings control, in order to prevent
quality defects.
For more details about the Quality Matrices,
refer to the Q Pillar Reference Guide.
Learning from previous projects: beyond
learning from current operations, it is also
important to analyse previous projects
execution to learn from their experience and
also capitalize on their positive deliveries.
For more information, refer to the “Standards
& Feedback” system, later in this document.
Losses across the Value Chain: the impact
of the project on the whole Value Chain
should be considered and eventual losses
identified properly. Specific activities such as
IBO (Identifying Business Opportunities),
CCVP (Consumer and Customer Value
Proposition), VSM (Value Stream Mapping)
can provide useful information. Refer to
LEAN Initiatives reference documentation for
details.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
Set Targets
Why / purpose:
To define targets for the main losses
categories (PPIs), in a way the project can
deliver on the 5 dimensions of Manufacturing
Excellence.
Description:
In order to deliver on the expected KPIs, the
Project Team should set clear targets on the
contributors (PPIs).
As example, in order to deliver 80% of Asset
Intensity in a manufacturing line, the Project
Team need to define what will be the target
for Unplanned and Planned Stoppages, as
well as for Speed Loss and Waste & Rework,
in order to enable the targeted AI. More
details on Asset Intensity can be found in the
Standard GI-21.010 - Performance
Measures for Manufacturing.
The following processes and tools need to be
used to perform this activity:
Target Setting Allocation (TSA): used to
evaluate and define performance targets for
the manufacturing systems, assessing how
improvements at Asset Intensity PPIs levels
(change over, unplanned stoppages, etc…)
will affect the AI.
Identify, Prioritize, Assign (IPA): Provides
robust data analysis to identify improvement
opportunities and a structured way to
prioritize activities. The IPA methodology
establishes how many improvement activities
are needed to achieve a given target based
on the quantitative contribution of each
improvement activity.
For more information about IPA, refer to the
FI Pillar Reference Guide.
STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 23 of 39
Prevent Losses
Why / purpose:
Ensure projects delivers loss-free solutions,
enabling them to achieve sustainable Vertical
Start-up. As a result new manufacturing
system are expected to satisfy the 6 following
EM performance concepts:
 Safety: designed safe to operate.
Covers the “free from” dangerous
operations and maintenance tasks.
 Quality: designed for quality.
Covers the “First Time Right”
requirements for a quality defect
free operation.
 Reliability: designed for “high
performance”. Covers the
requirements to ensure stable
production at the desired level of
Asset Intensity.
 Operability: “easy to operate”, with
minimal ongoing operator
intervention.
 Maintainability: “easy to maintain”
by understanding critical
components life cycle to prevent
breakdowns.
 Affordability: designed for optimal
“Total Cost of Ownership” of the
manufacturing system and its
components.
Description:
To eliminate the identified losses according
to the targets defined.
Different methods and tools may be used for
losses prevention, as presented below. They
should be applied based on existing
operations and their outputs should integrate
the design of new manufacturing solutions.
Tools have to be selected according to the
losses identified that have to be prevented.
Problem solving tools (GSTD/DMAIC):
provide problem-solving methodologies to
effectively address and eliminate different
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
types of problems/losses with varying levels
of complexity.
Single Minute Exchange of Die (SMED):
enables optimization of planned stoppages,
with direct impact on Asset Intensity.
Failure Mode and Effect Analysis (FMEA):
is a technique used to identify, prioritize and
eliminate potential failures within a system, in
order to implement countermeasures to
prevent failures.
Value Stream Engineering Design (VSED):
provides a systematic approach to optimize
basic plant designs, ensuring the most long
term value, optimizing process flows, line
layout.
Breakdown Analysis (BDA): is a process to
understand root cause of machine
breakdowns and identify countermeasures to
prevent them to happen again in the future.
For more details, refer to PM Reference
Guide.
Implement operational standards: through
NCE implementation, factories will create
important standards and routines to eliminate
losses and sustain results. It includes CIL,
Centerlining, Planned Maintenance, etc.
Those standards, when incorporated as
inputs to new projects, will also help the
prevention of losses as from the start-up.
The methods and tools above will be not only,
but predominantly, used at early stages of a
project, to provide the Project Team with the
detailed information on what to do to
The image below illustrate how the Waste
Prevention system can be applied to the
different equipment considered into a project.
Page 24 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
eliminate the root cause of losses, in the
design. Verification that activities results will
meet forecasted targets can be ensured
during Design Reviews as described in the
Project Management Foundations system.
Additionally to this, it is also important to
confirm that the actions taken are delivering
the expected results in later stages. This will
be done during:
Factory Acceptance Test (FAT): is the
opportunity to perform safety tests, static
tests, dry tests without product, and
performance tests with product in a new
piece of equipment under near production
conditions at the manufacturer’s facility prior
it is delivered to the factory.
The FAT is a contractual requirement that
prevents shipping a machine that does not
meet the requirements specified in the
contract with the supplier.
Induced Failure Test: to confirm the
capability of the equipment and the operators
in identifying failures and recovering from
them.
The test can be performed mainly during the
FAT, while running or dry cycling the
equipment, inducing or simulating a failure.
Then confirm that the failure has been
properly identified and that the operator can
restart the equipment.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

Understand Losses Prevent Losses Set Targets

ES 2 days EF

Eqpt. A
SMED Eqpt. A

Eqpt. B
Changeover Changeover

Eqpt. Z
Planned

LS LF

losses
Planned
Start/Shutdown Start/Shutdown

20%
Plan. Maint. Plan. Maint.
losses

ES 3 days EF
35%

CIL BDA Eqpt. B CIL

LS LF
Eqpt. B

3 days

80% Asset Intensity

ES EF
Eqpt. Z

FMEA Eqpt. B
65% Asset Intensity

Eqpt. A Breakdowns

Unplanned
Unplanned

Breakdowns LS LF
Waste/Rework Waste/Rework

Minor stops ES 2 days EF Minor stops

Speed Loss FMEA Eqpt. Z Speed Loss

LS LF
Eqpt. Z

Eqpt. A

ES 2 days EF
Eqpt.
B

Qx Matrix Eqpt. Z
LS LF

Line level Equipment / Machine level Line level

Picture 11: Illustration of the whole “Waste Prevention” flow

DELIVERABLES
Activities Deliverables
 Pareto of losses from previous projects,
 Pareto of losses from existing similar
operations,
Understand losses  List of taggings put in existing similar
equipment,
 List of operational standards (CIL, Centerlining,
etc.)
 Clear targets at KPIs and PPIs level
 Appropriated contribution analysis,
Set Target
demonstrating that the deliverables of the PPIs
will ensure the KPI results.
 Operational standards implemented (CIL,
Centerlining, etc.)
 Achievement of targets defined, through the
Prevent losses
loss elimination activities identified (SMED,
GSTD, FMEA, etc.) and performed from the
design.

STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 25 of 39

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
STANDARDS & FEEDBACK
DESCRIPTION
Why / purpose
Standards refer to written definitions of
proven current best practices related to
equipment, building, operations, products
and materials. As described in the “Nestlé
Way for Standards in Manufacturing”
(NWSM), they can be either Generic,
Category Specific or Local.
Standards are usually owned by CO / CT
functions (Generic), NPTC / TCU (for
Category Specific) or directly by factories
(Local).
The “Standards & Feedback” system is a
key component of Continuous Improvement
and as such aims to ensure that:
- Existing applicable Standards are
implemented properly
- Valuable learnings from previous
projects as well as improvements
from ongoing operations are
reapplied
- Standards, specifications or any
project key data can be updated (or
created)
Key data relates to performance of existing
lines, downtimes, breakdowns, quality
records, consumer complaints, etc.
The process that describes how to create
Standards is covered in the NWSM
documents and is not described in this
Reference Guide. Nevertheless it is key to
consider that in case of first industrialisation,
good application of Early Management and
proper usage of “Standards & Feedbacks”
system can contribute to Standards creation.
ACTIVITIES
The “Standards & Feedback” system can be
structured around 4 main activities.
 Perform Pre-Project Review
 Collect Factory Feedback
Page 26 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
 Implement required Standards
 Collect Project Feedback
Perform Pre-Project Review
Why / purpose:
The pre-project review ensures that
Standards, best practices and key data
applicable to the project are identified and
reviewed since the early beginning. The
ultimate aims are that:
- The project’s outcomes comply with
the existing applicable Standards.
- The project’s outcomes satisfy the
standards requirements for AM
Step3, as a minimum.
- Clear alignment is built on which key
learnings can be reapplied to prevent
the repetition of issues detected in
existing operations and/or previous
projects.
Description:
Several sub-activities can be performed
which will help to build a 360° vision.
- “Understanding Losses” activities as
described in the system “Waste
Prevention”.
- Review required minimum technical
expectations to enable AM Step 3.
- Review and align all other
expectations for the TPM maturity
level the project has to satisfy.
- Review of the “Project Learnings
Analysis” from previous projects in
the same factory, in the same market,
on similar lines or equipment, in the
same category, etc.
- Review of the Technical and
Business Post-Project Evaluations
- Review of the existing validated
improvements in MP Data Base.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
- Extensive collaboration with NPTC,
TCU/PCU, Subject Matter Experts
and review of the existing Defects
Prevention Checklist for their relative
Standards
Most of all, it must be highlighted that this
review does not consist only in reviewing
documentation but also Go and See in other
locations and take the opportunity to share
directly with Standards Owners, previous
projects teams and Operations staff.
Any intention to reapply a learning has to be
properly documented with facts and figures
and clear references have to be described in
the project documentation.
Collect Factory Feedback
Why / purpose:
The aim of this activity is to take
acknowledgement of AND/OR to provide the
potential improvements that have been made
at factory level during normal operations and
that can be reapplied.
This feedback process can impact each type
of Standards (Generic, Category Specific or
Local)
Description:
To generate, analyse and communicate
feedbacks from Operations, several sub-
activities have to be performed, as following:
Manage Changes (MoC)
All the improvements and modifications
triggered or executed by the AWG/MWG
throughout TPM journey, as well as problem
solving activities carried out throughout FI
projects (DMAIC, SMED…), have to follow
rigorously the Management of Change
Process as described in the St-21.114.
For proper identification of the equipment
concerned, the standard FLOC structure
STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 27 of 39
establish by PM and consistent with NWSM
requirements for the category must be used.
Establish List of Improvements
The improvements that can be reapplied or
become a Standard in the future must be
documented in an Improvement Register
(see below) and included into a List of
Improvements, where all the Improvements
are gathered. If EM Pillar is not already
launched at factory level, this document has
to be maintained by PM Pillar.
The criteria to define “Improvements” can be
as followed:
- Change has delivered the
improvement with direct impact on
Manufacturing Excellence.
- The improvement is replicable within
the factory or to other factories.
- The improvement can be applied to
other projects
As a basic rule, this is the responsibility of the
Standard Owner to decide whether the
improvement can be reapplied or not.
Register improvements
In order to describe the technical changes
more in details, a template called
Improvement Register (Maintenance
Prevention Data Sheet) has to be used. This
template will collect all the technical details
and information needed to ensure the
Standard owners can evaluate and validate
the change, allowing correct replication to
new machines and equipment as well as to
existing ones (includes description of the
change, reason, benefits, and results
achieved).
When applicable, a Standard Operational
Procedure (SOP) should be updated to
reflect the changes.
These documents should be uploaded in
GLOBE as part of the MoC process and will
serve as a basis for sharing.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
Share Improvements
Once the decision is made to select an
improvement for reapplication beyond the
“Local” level then it has to be communicated
in a structured way to all the areas
concerned, depending of the type of
Standards impacted.
The Responsible for proper communication
remains the Standard Owner.
For the technical Improvements, a specific
tool - called Maintenance Prevention Data
Base (MPDB) - has been designed in order
to support effectively the sharing process.
This is a central and global searchable
database which is accessible by all Nestle
users. The MP DataBase is structured by
Product category (as defined per NWSM)
and based on the standard functional location
(FLOC) structure established for each of
these category through the Modularization
process.
Once validated by the Standard Owner, the
documents created during the MoC process
(MP Datasheet, SOP) can be uploaded on
the MPDB then shared within the community
concerned by this change depending of its
type (Generic, Category Specific).
Implement required Standards
Why / purpose:
Once the Pre-Project Review has been
performed and clear alignment has been built
on which Standards must be applied and
which learnings has to be taken into account
and replicated, it is key to implement in a
flawless and consistent way.
Description:
The responsibility of project team is to ensure
the identified Standards and learnings are
Page 28 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
fully part of the project scope and that the
persons in charge of the implementation
have the required level of competence.
Adherence to the Standards should be
controlled during Design, Implementation
and Start-Up phases by the relevant authority
depending of the level of Standards
(Category Specific, Generic, Local). This can
be done through specific “Design Reviews”,
as described in the “Project Management
Foundations” system. Final validation is
required prior to Start-Up.
Collect Project Feedback
Why / purpose:
The purpose of this activity is to capture
learnings from a project (positive learnings or
negative ones) in order to prevent similar
defects to happen in future projects (or even
in the following steps of the same project) as
well as to reapply positive learnings.
The learnings and feedbacks provided may
impact all level of Standards.
Description:
To generate, analyse and communicate
feedbacks on a Project, several sub-activities
can be performed at different time of the
project lifecycle and with different impacts or
benefits, as following:
Analyse Project Learnings
This activity consist in capturing the learnings
at each step during project’s lifecycle. The
learnings can be either positives ones that
can be reapplied (Best Practices) or negative
ones (Defects).
Positive learnings have to be recorded and
share among the community in the more
appropriate manner in order to ensure
replication or Standards Improvement.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
For the Defects, a detailed Analysis has to be
performed. It consists in identifying in which
project step each defect were found and in
which project step the defect would have
been avoided.
An evaluation of the impacts of each defect
on the 5 dimensions of Manufacturing
Excellence has to be carried on as well as a
Root Cause Analysis.
During Project preparation or execution,
learnings and changes are captured at each
project milestone and analysis is performed
by the project team. Here the main purpose
is to prevent similar defects to happen during
the next project steps. This may require
changes in the Project Management Plan.
During Project Closure, a final exercise also
has to be performed. This exercise should be
performed by a cross-functional teams with
representatives from technical, commercial
and management so that leanings can be
shared quickly throughout the organization.
To support the Project Learning Analysis, a
specific tool (called Project Defect Analysis -
PDA) has been developed. Further details on
how to perform this analysis and how to use
the PDA tool can be found in the ED-221.30.
Update Defects Prevention Checklist
All the defects identified during the Project
Learnings Analysis and related to existing
Standards must be discussed with the
concerned Standard Owners and trigger
some changes for improvements if required.
Moreover, for each technical Standards, a
Defect Prevention Checklist can be built.
This Checklist which comprises technical
YES / NO questions and ensures that the
previous identified Defects are not repeated.
It will be used by the respective Standard
Owner in order to guide, coach and challenge
the project teams during project preparation
and execution.
STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 29 of 39
Perform Project Final Evaluation
The final evaluation of the Project and its
results is performed at different level and
with different timeline depending of the
purpose. The following elements can be
mentioned.
 Perform Technical Post Project
Evaluation
The scope of this activity is primarily technical
(technology and project management) and
aims to summarize the project achievements
compared with the agreed success criteria.
 Perform Post-Launch Analysis
The review visit covers all the issues and items
which relate to effective and efficient technical
transfer of the product and process into
operations, from the R&D brief stage through the
development phase, the factory trials, the
industrialization, the launch period and the post-
launch period.
 Perform Business Post Project
Evaluation
The scope of this evaluation is primarily
financial and commercial and aims to
summarize the project achievements
compared with the expected targets.
Use of Learnings from Projects
Learnings from projects can be used in
different ways at different levels and for
different purposes, as explained below.
 Learnings from the project used for the
next steps of this project
 Learnings from the project used as inputs
for other running or future projects (in the
same factory, in the same category, in the
market or even at global level).
 Learnings from all the projects at factory
or market level used as inputs for the
understanding of project results (1st step
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

of the EM implementation cycle) and inputs to feedback and strengthen the

maturity level assessment.
 Learnings from the project used as inputs
to feedback design or existing standards
defined for the category.
 Learnings from all projects (on a factory,
in a category, in the market, at zone level
or even at the Centre level) used as
methodology.
The process for sharing learning has to be
defined at Market level and at Category level
in order to ensure a proper diffusion across
project teams and factories.

Page 30 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

DELIVERABLES
Activities Deliverables

 Requested Standards for the project

Perform Pre-Project Review
Collect Factory Feedback
Implement required Standards
At Project level
Collect Project Feedback
identified. Standards Owner contacted.
 Learnings from previous projects formally
reviewed
 Lessons learnt fully included into Project
Scope
 MoC in place (according to St-21.114)
 List of improvements available
 Improvements documented on
“Improvement Register” template
 Sharing of improvements performed
through the MP DataBase
 Defined Standards implemented with
proper validation (ZCTM, TCU, PCU,
CTAG, Zone Chief Engineer…)
 Required Operational Standards
implemented, as stated in “Waste
Prevention”
 Milestone PDA executed
 Final PDA executed
 If required Defect Prevention Checklist
completed with Standard Owners
 Technical Post-Project Evaluation
performed
 Business Post-Project Evaluation
performed

At Market/Category level
 Process in place to share learnings from
projects across factories and Project
teams.

STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 31 of 39

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
PROJECT MANAGEMENT FOUNDATIONS
DESCRIPTION
Why / purpose
The Project Management Foundations
objective is to bring the right structure,
discipline and alignment within project teams
in order to deliver projects that meet the
agreed success criteria, including the overall
business and technical objectives.
Project Management Foundations also
enables proper integration of all the required
activities defined in the 4 systems.
Project Management Foundations system is
based and relies on the Corporate
Engineering Standards St-00.907 and its
associated documents. As described above,
the mandatory application of these
requirements are part of the Factory
Preparation phase.
ACTIVITIES
 Initiate Project - Develop the Project
Charter
 Plan Project - Develop the Project
Management Plan
 Execute, Monitor and Control Project
Initiate Project - Develop the
Project Charter
Why / purpose:
The purpose of this activity is to define clearly
the business proposal that will be supported
by the project with its associated Success
Criteria and the main requirements to provide
the expected results. At that stage the
organization also formally recognizes the
existence of the project and allow resources
allocation.
Page 32 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
Description:
The high level requirements of the business
and of key stakeholders (high level “Why”
and “What”) are captured in the “Project
Charter”. This document is formally approved
by the Steering Committee.
The structure of the document is described
below:
 The project purpose and justification
 The project high level description
 The project strategy, high level
requirements and scope
 The project high level risks
 The project key objectives with
success criteria
 The project organization
Plan Project - Develop the Project
Management Plan
Why / purpose:
The purpose of this activity is to define how
the project team will execute, monitor, and
control the project. Through this activity, the
project baselines in terms of scope, cost and
schedule are also established and used for
project approval.
Description:
To capture the basic design content of the
project and the plans to manage its various
aspects, a Project Management Plan (PMP)
has to be established. Based upon the
knowledge areas defined by the Project
Management Institute (PMI), this document
is structured around different subsidiary
plans as follows:
 Safety and Health management
 Human resource management
 Communication management
 Stakeholder management
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
 Time management and baseline
 Quality management
 Cost management and baseline
 Risk management
 Procurement management
 Scope management and baseline
 Operations and Start-Up
Management Plan
Signed off by the Steering Committee, it will
drive the project team for the Project
Execution.
Execute, Monitor and Control
Project
Why / purpose:
During project execution, Monitoring and
control is the process of tracking, reviewing
and regulating the overall project status
relative to the objectives defined in the
Project Charter and in the Project
Management Plan. It aims to ensure that the
required level of Quality will be delivered for
all Project’s activities and for the Project’s
outcome.
Description:
While Monitoring and Control is a continuous
Project Process, it is achieved through the
use of assessments or checklists during
Design Reviews, Milestone, Gate, and
Steering Committee review meetings. These
specific activities are described as follows.
Ensure adherence to Project
Foundations
Prior to Project Execution an exhaustive
assessment should be conducted and
demonstrate the adherence to the 7 elements
of Projects Foundations. These elements are
covered in details in the ED-221.29 and the
expectation are as follows.
STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 33 of 39
 Project Workflow: the defined
Nestlé’s Project Workflow is
rigorously followed and the required
activities, milestones and gates are
properly scheduled.
 Clear Deliverables: the project
deliverables are clearly defined,
understood and are owned by the
project team.
 Clear Governance: the project
sponsorship, the interactions
between the steering committee and
the project team, as well as the
management of any significant
change requests generated during
the course of the project are defined
and agreed.
 Holistic Organization: all roles and
functions required for the project
design, implementation, operation
preparation, and start-up activities
are described.
 Competent Team: job success
profiles, competencies and potential
training required for the project team
members are described. The
competencies evaluation is part of the
EM cycle as described in the relevant
section.
 Adequate Resources: the required
resources for all stages of the project
and for future operations are
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

adequately defined and planned at

Market and Factory levels. Perform Milestone Review
 Standards and Feedback Loop: the The milestone review allow the Project Team
project team demonstrates how the to measure the progress against the planned
learnings from previous projects and activities and requested deliverables.
existing operations will be reapplied
and used as described in the
Perform Gate Review
“Standards & Feedback” system.
Gates are structured decision points (Go/No
Go) where the Steering Committee takes the
Perform Design Reviews decisions to continue, temporary stop,
These exercises allow the Project Team readjust the scope or cancel the project.
members to verify in deep detail that what is
intended to be built will deliver the expected
results and contribute to reach the Success
Criteria defined in the Project Charter.

Page 34 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE

DELIVERABLES
Activities Deliverables

 Project charter with project high level scope

Initiate Project - Develop Project Charter and targets
 Success criteria (“WHY” part)
Baselines and auxiliary project management plans
developed:
 Scope management and baseline incl.
WBS list and success criteria “HOW” part
 Time management and baseline
 Cost management and baseline incl.
Project Estimating & Cost Tracking Tool
“ProjECT”
 Safety and Health management
 Human resource management
Plan Project - Develop the Project Management
 Communication management incl. Capex
Plan
Dashboard tool (CADA), progress and final
report
 Stakeholder management incl. stakeholder
matrix
 Quality management Incl. the Task
completion check list
 Risk management incl. risk matrix
 Change management incl. change request
form
 Procurement management
 Adherence to Project Foundations
demonstrated
 Design, Milestones and Gate Reviews
performed
 Schedule, scope and cost controlled
Execute, Monitor & control Project  Changes to the project baseline managed
 Checklists monitored (Task completion,
Expert and Defect Prevention)
 Dynamic Risks Management performed
 Defects and lessons learnt documented
through Project Learning Analysis

STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 35 of 39

EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
OPERATIONS & START-UP MANAGEMENT
DESCRIPTION
Why / purpose
The Operations & Start-Up Management
system defines the way for early
manufacturing engagement in projects.
Besides the focus on equipment and
construction, aiming for vertical start-up also
requires a thorough preparation of all
operational aspects such as people hiring
and training, recipes, materials as well as
processes, compliance requirements,
methods and organization structure.
This system contains the procedures and
activities required to plan, prepare and
execute the start-up of new or modified
operations (equipment and/or product)
regarding people, methods and materials.
ACTIVITIES
 Collect manufacturing input to design
 Understand Compliance requirements
 Prepare Quality & Food Safety
 Set GLOBE/IT preparation
 Set Maintenance and Spares
 Define Supply, Demand & Materials
readiness
 Set Line Labour Mapping and staffing
needs
 Provide Manufacturing, Product and
Process Competencies
 Define Start-up sequence and protocols
Collect Manufacturing Input to
design
Why / purpose:
The aim of this activity is to provide voice to
the factory regarding the available
experience, improvements that can be
leveraged by the project, as well as enable
factory engagement.
Page 36 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
Description:
The multifunctional project teams should
understand the current risks and synergies
between the factory and the project by
analysing the Current Operation Assessment
(COA). At same time they should lead the
capture of inputs from the factory
stakeholders that can enable the project to
prevent existing losses from Loss Tree
Analysis (LTA), as described in the Waste
Prevention System.
By doing this activity the project teams will
ensure that existing experience and learning
are available to make the project successful
and at the same time prepares the landscape
in the factory to embrace the changes that
the project will provide.
For projects taking place in TPM factories, it
is important to consider TPM competencies
required to deliver the AM Step 3 level as
required.
Understand Compliance
requirements
Why / purpose:
To ensure that the project team understands
the potential compliance risks that the
existing factory site has, and ensure that the
project is prepared to address any
compliance requirements. This will enable
not only the project to be successful but to
ensure the factory compliance is enabled and
sustained by the projects.
Description:
There are three steps to develop this activity.
First the project team based on the input from
the regulatory/legal experts and the
information from previous projects should
map the permits, licences and required
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
compliance assessments that the project
should be prepared to submit trough the
project life. Secondly the project team should,
make available the Compliance Tracking
Tool (CTT) plans, as well as previous audit
plans to the project team in order to
understand common risks and opportunities.
The third part is to write the Compliance plan
for the project including the mapping of
permits and audits, as well as the different
preparation activities and factory and market
level to enable this plan.
Prepare Quality & Food Safety
Why / purpose:
To ensure a successful project we should
ensure that the product that is going to be
produced/launched delights the consumers.
In that sense is critical that the food safety
and quality assurance methods are prepared
and executed.
Description:
The Project team must ensure that the
Hazard Analysis Critical Control Points
(HACCP) and the Quality Monitoring Scheme
(QMS) have been developed for the new
product / new line that the project will bring.
This should be included in the Quality & Food
Safety plan, as well as the different
components to make it happen like the
Laboratory Set up, Sampling plan, Quality
competencies and Product Technical
Acceptance.
Set GLOBE/IT Preparation
Why / purpose:
Every new product/line requires to monitor
report specific performance information into
the company systems. Depending on the
impact of the project on the current set up, it
may be needed to set up the GLOBE
preparation plan.
STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY | Page 37 of 39
Description:
For small impact projects, the plan should
ensure that the existing GLOBE templates
are updated and that the Key users provide
the refreshment on the capability to users
based on the changes. However for high
impact projects like a new production
department or a new Greenfield site. The
GLOBE preparation plan should include the
factory mapping, the key user development,
as well as the validation of the data.
Set Maintenance and Spare Parts
Why / purpose:
Every new line or change to existing line,
must come with the right preparation to
ensure sustainable performance long term,
thus maintainability is required.
Description:
This plan should include the basic
maintenance requirements AMM, including
FLOCs and Maintenance Procedures. For
new equipment it is particularly critical to
have this as well as the revised spare part
stock. For equipment modifications is critical
to ensure the maintenance plan is adequate
for the new situation.
These activities require the support of the PM
Pillar and are described in the relative
Reference Guide.
Define Supply, Demand and
Materials Readiness
Why / purpose:
The final outcome of the project is the actual
product volume flowing to the market. In that
sense it is critical to ensure that the supply
chain is set in as part of the operational
preparation.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
Description:
This plan comprises the supply base
requirements to support the project as well as
the proper production planning and the
proper contingency planning regarding to
demand variation. The plan should be based
on SAP data available in GLOBE, and
properly reflected in the operational
preparation and project ramp up curve.
Set Line Labour Mapping and
staffing needs
Why / purpose:
Production operators will drive the success of
every new line or every change to existing
line to industrialize.
Description:
It is critical to ensure that there is a clear
mapping of resources required by the line,
and that this is properly recruited during the
line construction to be able to prepare them.
Provide manufacturing, product
and process competences
Why / purpose:
The product and process Mastership
competencies required for every position in
the new/modified line as well as for the
supporting staff (QA, Maintenance, etc.)
should be planned and executed. Depending
on the project complexity, the competences
can include business and functional
competences.
Description:
The standard package coming from the
category, should include the technology
deployment materials to develop the
competency of the factory staff. A Training
plan and competency measure should be
Page 38 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
develop to ensure the capability of the staff
before the qualification stage starts.
For Greenfield projects, the capability
building plan should also be aligned with the
implementation plan of NCE Advanced
Manufacturing Practices defined by the
market.
Define Start-up Sequence and
protocols (CQV)
Why / purpose:
This is the execution plan that provides the
final integration of all the workflow streams to
get the “go live” of the project. In that sense
the CQV plan requires a detail planning of
each module and each step to ensure a
perfect execution according to standards.
Description:
The Commissioning Plan provides the details
for the installation qualification (IQ) e.g. the
safety checks, the I/O test, the functional
tests, and the operational qualification (OQ)
of the installed equipment. The optimal
settings of the equipment are documented,
and the maintenance plans are prepared in
SAP. Finally, the training of the factory staff
is completed. The Qualification Plan covers
the release of the line by SHE and QA and
covers the initiation of the industrial trials for
the capability of the process and the
operators, as well covering the final validation
of SOPs (Standard Operating Procedures)
for operation and maintenance. It also
includes the test that the line can operate at
nominal speed and committed asset intensity
level for a period a time a defined in the
project success criteria. Finally, the first
saleable production lot is technically
approved. The Verification plan comprises
the monitoring of the project success criteria,
and the assessment of the level of training
and skills of the factory staff, as well as the
final documentation of the Manufacturing
Dossier.
EARLY MANAGEMENT (EM)
PILLAR REFERENCE GUIDE
DELIVERABLES
Activities
Collect Manufacturing Input to design
Understand Compliance requirements
Prepare Quality & Food Safety
Set GLOBE/IT preparation
Set Maintenance and Spares
Define Supply, Demand & Materials
readiness
Set Line Labour Mapping and staffing
needs
Provide Manufacturing, Product and
Process Competencies
Define Start-up sequence and protocols
(CQV)
Page 39 of 39 | STRICTLY CONFIDENTIAL – FOR INTERNAL USE ONLY
Deliverables
Manufacturing design review
Compliance Plan including Permit, License
requirements
HACCP, QMS, NGMP, Product Technical
Acceptance plan
GLOBE Mapping, Key User development
Spare Parts list, FLOC, AMM update,
Maintenance Procedures
Supply & Demand Plan, Materials Plan, Ramp
up Curve
Labour Map, Standardize work for line, Staffing
and recruitment plan.
Technology Transfer and Training plan, SOP’s,
Training Materials, Competency matrixes
CQV Plan, Start-up measures, final
manufacturing dossier. Ramp up Curve