Charoen Pokphand Foods Public Company Limited -Poultry Integration Business (Nakornratchasima)

Charoen Pokphand Foods Public Company Limited (CPF) - Poultry Integration Business (Nakornratchasima) or CPFKorat is one of 98 subsidiaries of CPF. CPFKorat was established in 2004 producing fresh chicken products, then the cooked chicken products were further processed in the next year. Nowadays, there are all around 5,000 workforces, who adhere to CPF Way for our vision achievement. Besides, to achieve our mission and vision, CPFKorat also capitalizes on core competencies in strategic objectives, work systems and work processes. Leadership by Senior Leaders: To achieve CPF’s vision, The COO will determine CPF business direction and policies. Then our senior leader team takes CPF’s PPMVV and CPF’s direction and policies to determine CPFKorat’s PPMVV. Further, the senior leader team considers other factors such as organizational performance, stakeholders’ requirements, changes, etc. to determine CPFKorat’s core competencies, strategic objectives and key goals. Then the action plans which capital on core competencies are determined the related owners. After that the senior leader team will communicate PPMVV and the strategic plans to the related departments and the stakeholders. To follow up and review the organizational performance are conducted through the organizational meeting as the defined frequency. In case of the action plan adjustment is needed, the senior leader team will brainstorm for the continuous improvement by

applying the process improvement approach, PDCA-BLI (Plan-Do-Check-Act-Benchmarking-Lean-Innovation). Moreover, rewards and recognition are other means to encourage our workforce for their engagement and high performance. Workforce is endorsed for learning and knowledge sharing through our knowledge management system. This system is the source or the business needed knowledge, the organizational performance and improvement methods. Besides, the knowledge becomes inputs for determining business direction, policies or goal in the annual strategic planning process.

Leadership

Leadership

Charoen Pokphand Foods Public CO.,LTDFood Processing Poultry Business (Nakhonratchasima)

Leadership

Charoen Pokphand Foods Public CO.,LTDFood Processing Poultry Business (Nakhonratchasima)

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Thailand Quality Class 2010

With one of CPF values, CPF Way - Integrity and Honesty, CPFKorat consistently adheres to business transparency, and stakeholders’ benefits protection. The organizational governance boards consist of 2 offices of Charoen Pokphand Group : Business Governance Department and Internal Audit Department of Charoen Pokphand Group (CPG), 3 offices of CPF: the CPF Examine Office, the Specific Investigate Office, and the External Auditor, KPMG, as well as 3 offices of CPFKorat: the Authorities of product delivery, the Governance and Community Committee, and the Second and the Third Parties Auditors. Moreover, the accounting office is directly governed by the CPF Central Accounting Office. These promote business transparency and independence in internal and external audits.

Referring to our 3 benefits Philosophy that our business must be “benefit to the countries, the people and the organization respectively, together” with another values of the CPF Way, dedicated to countries; CPFKorat realizes that handling business is not only advantageous for the organization, but also the society and the communities that shall be developed and sustained along with our organization. Therefore, our senior leaders determine annual projects. They themselves participate and follow up the progress every week. The samples of societal projects are the forest plantation, “Rak Num Moon Project”, Carbon

Footprint Project, Bio-Diesel Project, and the Contract Farming for local husbandries. For the community support, CPFKorat determines the communities as the local governmental areas which are 1. Tayiem Community, 2. Chockchai Community, 3. Nakornratchasima Community, and 4. Thailand Community. The sample projects are “CPFKorat Food Safety Open House”, taking the community to visit the “Kitchen of the World”, Luncheon for children and sport community, etc.

The Organizational governance:

Societal Responsibility and Community supporting:

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Process Management

Work System and Work Process Design CPFKorat applies 5 aspects of Balance Scorecard (BSC) to design the business strategy and work systems, which are defined into Financial, Customer, Productivity, Workforce and Sustainability aspects. The work systems also capitalize on core competencies. For examples, one of our core competencies, Hi-CAP/Hi-Tech, is incorporated into key production processes design. For examples, firstly a modern modular system is applied in key process LiveBirds. This make live birds be gently transported to the production process and be in compliance with the animal welfare regulations as well. Secondly, in key process Slaughter, CPFKorat was the first company in Thailand that used the Air Chill technology for decreasing carcass temperature in order to keep the chicken meat quality. This becomes the causes of contamination deduction and conserving of water usage around 180,000 m3. Next, our

Emergency Readiness: To ensure that our work systems, workplaces, and Business are prepared for disasters, emergencies or crisis, Risk Management is designed. It covers 3 main scopes: Business Continuity and Recovery Plan (BCR), Product Recall and Emergency Response Plan. This makes our business encounter the crisis and the business can be run smoothly since the business is initiated. CPFKorat is always ready for risk control by annually review, manage and practicing emergency drills such as a fire drill. Besides, CPFKorat is benefits from the subsidiaries of CPF. In case

cooking lines were designed for mass production with variety products. We can serve fried, ovened, streamed, fried – ovened, fried – streamed and seared products with maximum capacity of 12 tons per hour. Moreover, CPFKorat takes pride in the ASHRAE Award, the world class award for our cooling system design. This reflects the global warming concern. This system promotes economic cost efficiency, electricity and water usage. This cooling system can reduce 1,900 tons CO2 release per year. Our work processes are designed to make the customers feel confidents on CPFKorat’s products which are absolutely qualified, delivered on time, safety and environmental friendly.

Process Management

Charoen Pokphand Foods Public CO.,LTDFood Processing Poultry Business (Nakhonratchasima)

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Thailand Quality Class 2010

Work Process Design and Management: To ensure that the work processes are complied with all stakeholders’ key requirements, the criteria of work process design is determined as follows: [1] To concern work process’ requirements [2] To consider 4Ms components : 1) Man – capability and capacity of workforce, 2) Machine – new technologies information from the Engineering quarterly meeting 3) Method – inputs from the case study knowledge 4) Material – the quality and the cost of raw materials concerning [3] Line Balancing – the process design that incorporate the processing time, the cycle time, the productivity, the cost and the efficiency. To control daily work for all requirements’ compliance, all the 167 procedures and the 361 work instructions, together with In-Process and Outcomes Process Measures are deployed to related owners. Then management team will follow up key performance measures with PPAD codes (PPAD means Perfect – Pass – Alert – Damaged) to control and improve work processes.

of any emergencies, disasters or crisis, we can transfer supplies, workforce or orders amount CPF’s Poultry Business Units. Then our business can be run and the stakeholder’s benefits are protected in any matters.

Work Process Improvement

To achieve better performance and keep the process current with business needs and directions, CPFKorat applies the approach of PDCA-BLI for work process continuous improvement. PDCA (Plan – Do – Check – Act) is consistency applied for the Daily Work. Lean, principle of 7 wastes deduction, promotes work process agility. DMAIC of Six Sigma methodology helps work process’ variability deduction. The needed improve areas are tracked from key performance measure benchmarking among CPF Business Units. Innovation creativity is initiated during brainstorming in the follow up meeting. The varieties of customers’ requirements push forward the continuous improvement of CPFKorat. This supports our sustainability.

Process Management

Charoen Pokphand Foods Public CO.,LTDFood Processing Poultry Business (Nakhonratchasima)

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