The challenge
Despite implementing “World Class Manufacturing” (WCM) principles for more than a decade – which initially helped raise efficiencies – the Samrong plant was facing significant operational challenges. With OEE at just 66% and persistent quality issues, the site struggled to keep pace with the rapidly growing demand for Omega products, which have seen sales increase by more than 15% year-on-year since 2022.
In 2023, demand for the RTD segment grew so rapidly that a major capital expenditure of 4-5 million euros for line expansion had to be considered – unless a significant OEE improvement could be achieved. Without change, profit margins and growth would be at risk. Leadership saw a better path forward: boost performance with existing resources by strengthening team culture and focusing on continuous improvement.
Industry
Beverage
FrieslandCampina is one of the largest dairy cooperatives in the world and ranks among the top ten global dairy companies. Headquartered in the Netherlands, the company has operated for over 150 years, providing dairy products to millions of consumers across over 100 countries. Its Thailand business, centered around the Samrong plant, has experienced consistent yearly growth, with the Ready-to-Drink (RTD) product segment currently representing its core focus.
The solution
Rapid deployment approach
A phased action plan was rolled out to improve plant performance and avoid the heavy cost of a new production line. Each step was designed to address bottlenecks and embed high-performance habits across the site.
Quick wins on the most challenging line (TP3) :
- Set-up time reduction for filler clean-in-place (CIP) and line changeovers aimed to achieve consistent CIP times through Single-Minute Exchange of Die (SMED) methodology. A team was formed to implement improvements and tools, enhanced standards and training, stronger communication protocols, and tighter management of deviations.
- Supply failure reduction team aimed to reduce supply failures by 2.8% to increase asset reliability and availability Implementation of structured Gemba walk routines, process mapping, and data recording mechanisms to gather data-driven insights into key issues.
- Breakdown & short stop improvement team focused on reducing unplanned downtime by 8.3% (from 14.9% to 6.6%). A stronger problem-solving mindset and focus on building standards enabled by center-lining practices created greater line stability.
- Hands-on leadership presence on the shop floor together with clear escalation policies accelerated issue resolution.
A turning point came when operators on adjacent lines asked to join the program. The pilot benefits were soon extended to two more lines (TP2 and CB20).
The results
Rapid Deployment Line
The rapid deployment approach delivered remarkable results in just 12 weeks, increasing pilot line OEE, avoiding significant capital expenditure and transforming both operational performance and shop floor culture at the Samrong plant.
OEE increased by 12% (from 64% to 76%) in just 12 weeks
Improved accountability and ownership on the shop floor
Significant reduction in machine breakdowns
Easier daily tasks improving the lives of shop floor teams
Avoided €4-5 million capital expenditure for a new production line
Building on the success of the Rapid Deployment phase, the site has embarked on a Full-Site Scaling (FSS) initiative. This program will extend the same principles across all areas and processes while introducing increasingly advanced practices in line with the Site’s Improvement Strategy. More specialized areas such as Asset Care, Quality, Planning and Logistics will play a central role in this multi-year journey.
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