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An efficient and responsible Group Operational excellence policies

OPERATIONAL EXCELLENCE 2. POLICIES Industrial Excellence with the WCM program 2.1

The operational excellence of an industrial site is characterized for the Group by: the identification of global best performance; „ the systematic eradication of losses that deviate from this „ global performance; the maintenance and improvement of a high level of „ performance over time by creating solid foundations and ensuring operator involvement; preventive control of machines and working conditions „ (5S and Autonomous Maintenance); the involvement of all employees on site. „ In 2007, Saint-Gobain deployed the World Class Manufacturing (WCM) program, an integrated management system designed to improve business performance by seeking industrial excellence in accordance with world standards. Its ambition is for each Group industrial sites to be exemplary, both through health and safety, attentiveness to customers and customer service, the quality of the products it supplies, and its economic and environmental performance. Performance is measured by quantitative indicators but also by satisfaction assessments of the stakeholders involved, customers and employees in priority. Because operational excellence can only be obtained with the involvement of all employees and by developing a culture of change, Saint-Gobain has chosen to place people at the heart of this process. WCM Saint-Gobain is therefore a program specifically adapted to the Group culture, associating the standardization of methods, tools and good practices with an essential modularity to adapt to a wide variety of industrial processes. It is based on pillars that cover performance improvement methods such as Lean, Six Sigma and TPM (Total Productive Maintenance) or 5S. The pillars of the WCM 2.1.1 Each pillar of the WCM represents a center of excellence on which the organization will draw and organize itself to reduce losses as much as possible. The WCM methods are applied in the same way for each of the pillars under the responsibility and leadership of the manager and the subject-matter expert, working in a cross-functional way and involving the entire organization. Consequently, the WCM program incorporates and supports the policies implemented by the Group such as the Health and Safety policy or the environmental policy by becoming an operating lever for achieving the Group’s objectives in the short-, medium- and long-term.

OPERATIONAL EXCELLENCE & CUSTOMER SATISFACTION

Reliability Environment & Risk Prevention

Inniovation

Health & Safety

Industrial Efficiency

People Development

Development &Growth

Customer Focus & Service

Quality & Process Control

TIME BASED MANAGEMENT (VSM) & COST DEPLOYMENT FOCUSED IMPROVEMENT & PEOPLE INVOLVEMENT STANDARDISATION, SS, AUTONOMOUS & VISUAL MANAGEMENT

The WCM program ensures the strict implementation of internal and external standards in each of the pillars and foundations, including certification measures such as standard ISO 9001 for quality, ISO 14001 and 50001 for the environment and OHSAS 18001 for health and safety or internal standards such as the OPEN program or the Saint-Gobain Attitudes for the development of persons, or the GAP guidelines for the prevention of risks. The WCM program therefore delivers a substantial reduction in production costs at the same time as a significant reduction in health/safety, environmental and industrial risks. The Quality, Industrial Performance and Environment pillars contribute significantly towards reducing the Group’s environmental footprint by reducing waste generated in production and water consumption and by optimizing energy efficiency. In addition, it has also been possible to avoid many production investment costs or environmental taxes. Thanks to the Customer Orientation & Service pillar, significant reductions in stocks of raw materials, semi-finished and end products lead to a significant reduction in the requirement for working capital both in terms of value and in number of stock days, while improving customer service and customer satisfaction as the priority objective.

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