Saint Gobain - Registration document 2016

4 AN EFFICIENT AND RESPONSIBLE GROUP 2. Operational excellence policies

Operational excellence policies 2.

2.1

INDUSTRIAL EXCELLENCE WITH THE WCM PROGRAM

The operational excellence of an industrial site is characterized for the Group by the optimization of four factors: the systematic eradication of losses; ‹ the maintenance of gains over time by operator ‹ involvement; designed to improve business performance by seeking industrial excellence in accordance with world standards. In 2007, Saint-Gobain applied the World Class Manufacturing (WCM) program, an integrated management system Its ambition is for each Group industrial sites to be exemplary, both through safety, the quality of the products it supplies, customers and employees in priority. and its economic and environmental performance. Performance is measured by quantitative indicators but also by assessments of satisfaction of the stake holders involved, of this process. 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 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 Maintenance) or 5S. methods such as Lean, Six Sigma and TPM (Total Productive modularity to adapt to a wide variety of industrial processes. It is based on pillars that cover performance improvement losses as far as possible. The WCM methods are applied in the same way for each of the pillars under the responsibility and leadership of the expert on the subject, working in a cross-functional way and involving the entire organization. Each pillar of the WCM represents a center of expertise on which the organization will focus and organize itself to reduce the policies implemented by the Group such as the Health and Safety policy or the environmental policy by becoming Consequently, the WCM program incorporates and supports an operating lever for achieving the Group’s objectives in the short-, medium- and long-term. The pillars of the WCM 2.1.1 prevention-oriented working conditions; ‹ the involvement of all employees on site. ‹

OPERATIONAL EXCELLENCE & CUSTOMER SATISFACTION

3

People

Quality

Customer Focus & Service

Reliability

Innovation

Environment

Development

Health & Safety

& Risk Prevention

& Process Control

Industrial Efficiency

Development & Growth

4

TIME BASED MANAGEMENT (VSM) & COST DEPLOYMENT FOCUSED IMPROVEMENT & PEOPLE INVOLVEMENT STANDARDISATION, 5S, AUTONOMOUS & VISUAL MANAGEMENT

prevention of risks. ISO 14001 and 5001 for the environment and OHS 18001 for safety or internal standards such as the OPEN program for the development of persons or the GAP guidelines for the The WCM program is compatible with the internal and external standards of each of the pillars and incorporates certification measures such as standard ISO 9001 for quality, 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. production and water consumption and by optimizing energy efficiency; but it has also been possible to avoid many production investment costs or environmental taxes. The Quality, Industrial Performance and Environment pillars contribute significantly towards reducing the Group’s environmental footprint by reducing waste generated in satisfaction as the priority objective. 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 maintaining customer Thanks to the Customer Orientation & Service pillar, site path. requires graduated implementation, pillar by pillar, with methodology and constancy. The benefits in terms of competitiveness, improvement of customer service and employee commitment can be measured at each stage of the Achieving industrial excellence is a long-term measure that Tools and methods are therefore made available to the sites to construct their own roadmap and to define their stages of application. Training programs are applied, in advance for employee. managers and as projects are implemented for each site The WCM path of an industrial site 2.1.2

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SAINT-GOBAIN - REGISTRATION DOCUMENT 2016