DSM Food Specialties - SafeFood360

Johan Noordover

January 14, 2016

Case Study - Holistic project, people, process & system

nutrition health materialsactive in:

We create solutions to bring healthier, better

performing and more sustainable products to

the lives of people today and for generations

to come.

DSM Life Sciences and Material Sciences company

Sales~€10 billion

Global presence~25,000 employees

At Euronext NYSE

Sustainability leader Top ranking Dow Jones

Sustainability Index

Enzymes

Cultures

Savory flavors

Hydrocolloids

Preservation

systems

Vitamins

Nutritional lipids

(Omega 3 & 6)

Carotenoids

Health

ingredients

INDUSTRIAL BIOTECH(21st century)

CLASSICAL BIOTECH (19th century - 1869)

MODERN BIOTECH(20th century)

Yeast — over a century of experienceRoyal Dutch Yeast and Alcohol factory since 1869

• Today DSM produces a variety of ingredients produced from yeast:

– Yeast extract

– Enzymes such as lactase, pectinase, invertase

– Caratenoids

DSM Food Specialties today

• Leading positions in food & beverage enzymes, cultures and yeast extracts

• Over 1500 employees worldwide

• Manufacturing locations in Europe, North & South Americas, Asia, Australia

• Food Innovation Center with dedicated application and sensory specialists

• Regional application labs in China, the Netherlands, USA

DSM ingredients support key trends

DSM in Dairy

• One of the broadest portfolios of coagulants and other enzymes, cultures,

probiotics, preservation systems & antibiotic residue tests

• Global leader in lactase solutions

• Acquisition Cargill Cultures & Enzymes in 2013 – global manufacturing

footprint, application support and R&D

DSM Enzymes help to do more with less

Baking

Brewing

Oils & Fats

Fruit processing

Grain processing

• Reduce production costs

• Get more out of raw materials

• Improve appearance, taste & mouth feel

• Replace undesired substances like acrylamide

• Create healthier products

• Keep products fresh for longer

• Leading supplier of yeast extract based

taste components to the culinary industry

• Natural solutions for every taste direction

• Building taste: unique block-by-block

approach

DSM in Savory

DSM’s Natural food preservativesProtection you can trust

CheeseFermented

milk products

Meat Beverages Baking

• Natural anti-microbial, anti-mold and yeast protection

• Improved shelf life and product safety

• No effect on taste, color or smell

• Providing full control over production processes

• Natural preservatives

• High quality products, safe from toxins or harmful contaminants

Our commitment: Quality for Life™

As a pioneer and market leader, DSM

Always gives you the very best ingredients, with the

highest quality level

Is the most reliable company that sets global

standards and ensures product safety

Can always trace the origins of any

ingredients, wherever manufactured or

sourced

Example Quality for Life

DFS Quality Policy – Our Vision

We deliver superior quality, safe products and excellent services

that add value and help our customers to grow and secure

their business

We help our customers to make consumers choose their products thanks to our added value high

quality ingredients and processes

We are responsible Corporate Citizen, with the highest social,

ethical and environmental standards in our industry

We develop and maintain long-term trustful and sustainable

partnerships with our suppliers to our mutual benefit

We offer innovative products, processes, concepts and

solutions that improve the quality of life

We are a preferred employer offering a safe working

environment that values individual and group

performances

In all our markets, we are a reliable and competent

industrial partner that complies with the local rules and

regulations

We are a benchmark for our competitors when it comes to

quality.

First

choice

for

13

DFS Quality Strategy

Sit

e

Infr

ast

ructu

re*

Perf

orm

ance &

Impro

vem

ent

Cert

ific

ati

on &

Regula

tory

Com

pliance

Sta

ndard

izati

on /

Harm

oniz

ati

on

Data

& D

ocum

ent

Managem

ent

Cust

om

er

Excellence

People

, O

rganiz

ati

on

&

Com

munic

ati

on

Flawless Execution

Rationale for SafeFood360

• DSM Food Specialties implemented SF360 :

– SF360 is a Food Safety Management System that

supports the Quality vision of DFS.

– Integral Business Group Food Safety management to

get more oversight on BG and BU level

– Raise the bar for quality and food safety

– Efficiency by standardization and harmonization, also

for future changes

– Support the drive for legal and customer compliance

• SafeFood360 implementation (1 year)

– Quality and food safety project (not IT tool project)

– 11 manufacturing sites – harmonization

– BG level processes

14

SafeFood360 DFS status

• Implemented on all manufacturing sites

– Harmonized approach for some key processes

– As-Is situation for others, site specific

• DFS customer feedback:

– Impressed on speed and scope of the implementation

– Recognized as best in class system and would like to have it

as well

• Strong starting point for further harmonization

• Benefits will already materialize during FSMA implementation:

– DFS can absorb this in running business due to SafeFood360

implementation

Safefood360 maturity curve for DFS

HACCP, Deviations, Supplier Management

CAPA, Non-conformances, MOCB

Environmental monitoring, MOCM,

Pest Control, Glass Policy, Int. Audits

External audits,

Performance mgt.,

Customer logon

HACCP

• Group wide standardisation of HACCP

– Standard risk assessment and decision model

– Convert and translating existing HACCP studies of manufacturing sites

(around 30)

• Benefits:

– BG oversight of HACCP plans as basis for improvements

– Integration with new requirements (FSMA changes)

Deviation process is standardized

• Three types of deviations:

– CCP / oPRP “breaches”

– Process deviations

– Incidents

• Facts and figures captured in monitoring

module

• Potentially non-conforming products managed

in NC module

• Related corrective actions are captured in CA

module

• Benefits:

– Reporting and monitoring

– Supports escalation to BU and BG

Quality management processes

• Internal auditing – standardized internal audit approach

• Management review – standardized agenda

• Alerts – standardized to drive also the escalation process

• BG level reporting – reporting is used to get overview of

all the sites.

• Benefits:

– Connection to the BG QA plans

– Integrated QA management and oversight of issues

Supplier Quality Management Process - Into SF360

• SQM is centrally managed at Business Group level with Business Unit

responsibilities.

• Supplier information is collected and managed using Supplier portals

(assessments, questionnaires and documents)

MOC2.0 processin BPM

• Management of Change process is

centrally driven by Business Units to

also implement changes at

manufacturing sites

• In SF360 a 'Business Process Module'

is used for management of MOC

process (via a work flow).

• Process is split in different ‘phases'

(= e.g. ‘Review MOCB’)

• In a phase you add 'actions’ and

'due dates‘ on top of the predefined

ones.

1. prepare Change

Basic info

2. Pre-MOC

3. Risk Assessment

4. Review MOCB

5. MOCB Hold

6. MOCM

7. MOCM Hold

8. Implementation

9. Finalize

0. Create MOC

2

1

3

2

Phase responsible:

1: champion 2: MOCBc 3: MOCMchair

1

DFS Quality vision

Compliance Harmonization Standardization Efficiency

Holistic project,

people, process

& system

NO IT project

Manufacturing

sites

BG level QA

processes

Food Safety

Management