Tolu Adesalu Head of Procurement West Africa …€¢ Head of Procurement – West Africa •...

• 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.

www.nigeriamanufacturingexpo.com

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


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:

–?


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.


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.


Manufacturing Tomorrow:

• Vision: When Made in Nigeria

products compete and are adjudged to be better than similar products manufactured elsewhere in the world!


9

KEY DRIVERS- MANUFACTURING EXCELLENCE

Manufacturing

Excellence

Quality

Delivery

Morale Safety

Cost


Manufacturing – Tomorrow:

• Enablers:

– Labour: Young, trainable population, skilled diaspora.

– Availability of basic raw materials.

– Largest market in Africa.

• Missing: Will power.



• 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.


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


13

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


14

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


15

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


16

WORKING SAFELY

“ Our Job is never so important that we cannot take the time to

do it safely”

SAFETY


17

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


18

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


• HSE Enablers:

– Create a “zero accident” mindset.

– Accident/Incident Investigation.

– Largest market in Africa.



• Production Enablers:

– Increase efficiency. Adopt Lean Six Sigma.

– Reduce downtime. Inculcate Continuous Improvement philosophy (Kaizen)


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.

21

Lean Management Tools

• Value Stream Mapping • 5S • 5 Whys • Total Productive Management ( TPM) • Quick Changeover ( SMED) • Continuous Improvement ( Kaizen)



Recommended Wave 1 Sectors:

• FMCG.

• Pharmaceuticals.

• Processed Agricultural produce/raw materials for FMCG.


Thank You!


Tolu Adesalu Head of Procurement West Africa …€¢ Head of Procurement – West Africa •...

Documents

Transcript of Tolu Adesalu Head of Procurement West Africa …€¢ Head of Procurement – West Africa •...