Find out how multinational dairy leader, Fonterra, built its operational excellence capability on the journey to world class.

1. TRACC
TRACC J URNEY
to world class!
CCIThe People
Behind TRACC

2. The world’s dairy leader
New Zealand-based Fonterra is the world’s
leading milk processor and dairy exporter,
responsible for more than
one-third of international dairy trade.
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TRACC

3. Fonterra by the numbers
16 000
EMPLOYEES
140COUNTRIES
2000000tons of dairy products produced
EACH YEAR
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TRACC

4. Choosing the right framework
In March 2000, Fonterra and its
unions jointly adopted TRACC as
the framework for its Operational
Excellence Programme.
TRACC
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TRACC

5. 1999 • Fonterra legacy company Kiwi Dairies approaches CCI with a view to
deploying TRACC as a framework to assist them with improving operational
performance
TRACC Milestones
March
• Kiwi Dairies appoints CCI to assist with TRACC deployment at two pilots: the
Cheese plant and the Milk Collection department at the Whareroa site in the
Taranaki region
• The group’s CI initiative is named ‘Manufacturing Excellence’ (later to become
‘Operational Excellence’)
• The Cheese plant is identified as a pilot due to sporadic quality issues
• At Milk Collection, the initial focus is on the fleet maintenance workshop.
Some of the objectives of this pilot include: more efficient fleet and route
planning, and the reduction of maintenance and running costs
2000-2002
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6. • To get the ball rolling at Milk Collection, a TRACC Set-up Time Reduction
blitz is introduced with three objectives:
1. Increase on-the-road capacity of its tanker fleet at any given time
2. Streamline maintenance processes to ensure efficiency gains are
sustainable
3. Maintain the tanker fleet’s reliability and total availability rates
TRACC Milestones
• Within two years of TRACC deployment, the Cheese plant increased OEE by 24.8% and achieved
an impressively positive ROI (nearly 57 times payback on investment)
• On Product Time (OPT) increased from 76% to 84.5%
• As a result of the blitz activity, the maintenance workshop at Milk Collection achieved an 87.5%
reduction in time spent off the road for maintenance, a 94% reduction in the distance walked
during the service, a 65% reduction in service time, and a truck availability rate of 99%
HIGHLIGHTS
March
2000-2002
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TRACC

7. TRACC Milestones
2005 • Widespread rollout of TRACC commences
• Business plans, including practice maturity targets, are introduced
2003 • Following the successful conclusion of the pilot
projects, Manufacturing Excellence is rolled out
nationally to 25 sites as well as to all 10 factories at
the original site over a two-year period
• The initiative is renamed ‘Operational Excellence’
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TRACC

8. 2007 • A kaizen blitz is initiated at Fonterra subsidiary, Canpac, to improve
On-Product-Time (OPT) performance on Line 4 can assembly
• The Operational Excellence initiative yields some impressive results at
Fonterra’s Te Rapa site – Te Rapa is responsible for nearly 20% of Fonterra’s
whole and skim milk powder production
TRACC Milestones
HIGHLIGHT
• The kaizen blitz results on Canpac’s Line 4 indicated that changeover times could be cut by half
over time, which meant the improvement target of 30% had been exceeded
• Te Rapa achieved a record production of cream cheese, up 3% from the record set the year
before
HIGHLIGHTS
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9. TRACC Milestones
2010
• The TRACC business performance improvement approach is now deeply
embedded within Fonterra manufacturing operations as Operational
Excellence, and the next phase of building an integrated and defining
business system begins
• Rebranded as ‘The Fonterra Way’, the initiative becomes the framework for
the fully internalised approach to all work
2015 • 15 years on, the journey that started with two small pilots in Taranaki in 2000 is
declared a resounding success
• CCI is immensely proud to have worked closely with Fonterra since 2000 in building its
capability in Operational Excellence, proudly known today as The Fonterra Way
There can be no doubt that our plants present better since the
introduction of Manufacturing Excellence (TRACC).
— Brent Taylor, former General Manager, New Zealand Manufacturing, Fonterra
“ ”
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TRACC

10. CCIThe People
Behind TRACC
The TRACC framework helps organisations build standardised and integrated
good practice and performance capacity across their Plan, Source, Make and
Deliverfunctions.Simultaneouslyitacceleratestheircollaborationandalignment
capacity to build world class end-to-end value chains enabling the organisation
itself to become the ultimate source of sustainable competitive advantage.
TRACC®
ONESOLUTION TO ACHIEVE YOUR
IMPROVEMENT STRATEGY
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Visit http://traccsolution.com/resources/integrative-improvement/ to find out how an
integrative improvement approach can help deliver superior
results for your organisation.
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