tolu adesalu head of procurement west africa …€¢ head of procurement – west africa •...
TRANSCRIPT
• Tolu Adesalu
• Head of Procurement – West Africa
• Cadbury Nigeria PLC
• Nigeria
Manufacturing in Nigeria: Yesterday, Today & Tomorrow
Tolu Adesalu
Purpose:
• Spark debate on the benefits of making Nigeria the manufacturing hub of Sub-Saharan Africa.
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Manufacturing:
• Manufacturing is the production of merchandise for use or sale using Labour and Machines, Tools, Chemicals and Biological processing or formulation. - Wikipedia.
• The process of Converting raw materials, components or parts into finished goods that meet a customer’s expectations or specifications. – Business Dictionary
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The Consumer:
• Yesterday’s Consumer: – Very loyal, not too quality conscious, not
interested in the supply chain of the brand, access to information only through traditional media.
• Today’s Consumer: – Quality conscious, enlightened, interested
in the well being of the Planet, loyal but demanding, social media savvy.
• Tomorrow’s Consumer:
–?
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Manufacturing – Yesterday:
• Poor Quality: Short shelf life, high defect rate.
• Poor safety record: Lost time incidents, accidents.
• No HSE agenda. HSE function absent.
• Inefficient process: High wastage
• Not consumer focused.
• Weak regulatory environment.
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Manufacturing – Today:
• Improved Quality: still a long way to go.
• HSE agenda developing.
• Some process improvements but still way behind best in class levels.
• Increasing consumer focus.
• Improved regulatory environment.
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Manufacturing Tomorrow:
• Vision: When Made in Nigeria
products compete and are adjudged to be better than similar products manufactured elsewhere in the world!
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KEY DRIVERS- MANUFACTURING EXCELLENCE
Manufacturing
Excellence
Quality
Delivery
Morale Safety
Cost
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Manufacturing – Tomorrow:
• Enablers:
– Labour: Young, trainable population, skilled diaspora.
– Availability of basic raw materials.
– Largest market in Africa.
• Missing: Will power.
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Manufacturing – Tomorrow:
• Quality Enablers:
– Imbibe Global best practices. Make best in class certification mandatory requirement. GFSI, BRC etc.
– Food Safety becomes the highest priority.
– Strengthened Regulatory environment.
– Increases the confidence of the export markets in our products.
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12
QUALITY COSTS
• Prevention Costs: cost of doing it right the first time
1. Cost of Quality Training Programs
2. Cost of planning/ specifying quality levels
3. Cost of supplier selection & approval
4. Cost of calibration of test equipment
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QUALITY COSTS CONT’D
• Quality Appraisal Costs: cost of checking whether it was right
1. Cost of inspection
2. Cost of laboratory tests
3. Cost of quality audit
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QUALITY COSTS CONT’D
• Failure Costs: cost incurred because it wasn’t right first time.
1. Cost of scrap and waste
2. Cost of investigation of product failure
3. Warranty costs
4. Consumer complaints & loss of goodwill
5. Cost of replacement / repair
6. Product recall
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Quality Key Performance Indicators ( KPI’s)
KPI Definition Measurement
Consumer Complaints No of complaints received from consumer / customer
No of complaints / 100T of products
Product Recall Quantity of product recalled due to defect
No of recall
Non- Conforming products
Sub-standard products generated
% of sub-standard products / Total product produced
Supplier Performance Defects or Delay in supplier delivery
% defect / Total quantity supplied
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WORKING SAFELY
“ Our Job is never so important that we cannot take the time to
do it safely”
SAFETY
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CRITICAL AREAS
• Risk Assessment : Site & Task Levels
• Planned inspection : Hazards spotting
• Permit To Work : Control of activities
• Control of Hazardous Energy
• Accident & Incident Investigation
• Personnel Protective Equipment
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Safety Key Performance Indicators ( KPI’s)
KPI Definition Measurement
Near Miss An incident or accident that could have occurred
No of near misses / period
Incident / Accident An occurrence that could cause harm or injury or destruction
No of incident / accident per period
Reportable Accident and Incident Rate ( RAIR)
No of severe accident/incident that resulted in keeping the victim away from work for more than 24 hours
No of accident* No of total hours worked / 100,000 employees
Lost Time Incident Frequency Rate( LTIFR)
Severe accidents with > 48 hours lost time
No of accident* No of employees/ 100,000 man hours www.nigeriamanufacturingexpo.com
Manufacturing – Tomorrow:
• HSE Enablers:
– Create a “zero accident” mindset.
– Accident/Incident Investigation.
– Largest market in Africa.
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Manufacturing – Tomorrow:
• Production Enablers:
– Increase efficiency. Adopt Lean Six Sigma.
– Reduce downtime. Inculcate Continuous Improvement philosophy (Kaizen)
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To achieve six sigma, a process must not produce
more than 3.4 defects per million opportunities.
The six sigma DMADV process ( Define, Measure,
Analyse, Design, Verify) is an improvement system
used to develop new processes or products at six
sigma quality levels.
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Lean Management Tools
• Value Stream Mapping • 5S • 5 Whys • Total Productive Management ( TPM) • Quick Changeover ( SMED) • Continuous Improvement ( Kaizen)
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Manufacturing – Tomorrow:
Recommended Wave 1 Sectors:
• FMCG.
• Pharmaceuticals.
• Processed Agricultural produce/raw materials for FMCG.
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Thank You!
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