2022 Management Pillar Handbook

MANAGEMENT
PILLAR BOOK
ENVIRONMENT
MAINTENANCE
LOGISTICS
PEOPLE
MANAGEMENT
QUALITY
SAFETY
For translation purposes, all updates to the 2022

version have been highlighted in yellow.
December 2021 14.0
The printout of this book shows the structure of the Pillar. It refers to updated documents
in the VPO Portal.
Click here to access the VPO Portal.
The electronic version provides the required links to all documents building the pillar.
MANAGEMENT
PILLAR BOOK
Click any of the boxes below to navigate directly to the specific section in this document.
Strategy
Manage to
Improve
Target Setting Problem Project Knowledge Performance

& Cascading Solving Management Management Review
Process
Manage to
Sustain
Product & Standards Routine

Business Process
Process Creation & Review
Description Mapping
Indicators Execution Process
Fundamentals
Global Company Policies 5S
Confidential ©AB InBev 2018. All rights reserved. Page 2 of 125

MANAGEMENT PILLAR HANDBOOK
Table of Contents
1. ABI MANAGEMENT SYSTEM ..................................................................................................... 5
1.1 ABI Management System Overview .............................................................................................................. 5
1.2 ABI MS and the 3 Key Success Factors to Achieve Results ........................................................................... 6
2. VPO PROGRAM......................................................................................................................... 11
2.1 VPO Dream, Mission & Flywheel ................................................................................................................ 11
2.2 VPO Principles to Achieve Results ............................................................................................................ 12
2.3 Results Aspects ........................................................................................................................................... 12
2.4 The VPO House ............................................................................................................................................ 13
3. VPO MANAGEMENT PILLAR.................................................................................................... 13
3.1 VPO Management Pillar Structure................................................................................................................. 14
3.2 Management Pillar Design Principles ............................................................................................................ 17
3.3 VPO Business Cycle ...................................................................................................................................... 18
4. Fundamentals Layer ................................................................................................................. 20
4.1 Global Company Policies ............................................................................................................................... 21
4.1.1 Global Policies ................................................................................................................................................................ 21
4.1.2 Crisis and Risk Management .......................................................................................................................................... 22
4.1.3 Global Risk Management Audit Process ........................................................................................................................ 30
4.2 5S ................................................................................................................................................................. 32
5. Manage to Sustain (MTS) Layer ............................................................................................... 36
5.1 The MTS Method: Standardize, Do, Check Act (SDCA) .................................................................................... 37
5.2 Business Description (BD) ............................................................................................................................. 39
5.3 Process Mapping (PMap) .............................................................................................................................. 43
5.4 Product & Process Indicators (PPI) ............................................................................................................... 50
5.5 Standards Creation and Execution (SCE) .......................................................................................................... 54
5.6 Routine Review Process (RRP) ......................................................................................................................... 57
5.6.1 MCRS Concept............................................................................................................................................................... 57
5.6.2 MCRS Benefits ............................................................................................................................................................... 58
5.6.3 MCRS Structure ............................................................................................................................................................. 58
5.6.4 KPI & PI Dashboards ...................................................................................................................................................... 60
5.6.5 TORs, Action Logs & Routine Agendas .......................................................................................................................... 63
5.6.6 Checklists ....................................................................................................................................................................... 64
5.6.7 Operator Workstation ..................................................................................................................................................... 65
5.6.8 Short Interval Control (SIC) ............................................................................................................................................ 68
5.6.9 Visualization (Visual Boards & Team Rooms) ................................................................................................................ 69
6. Manage to Improve (MTI) Layer ............................................................................................... 75

6.1 The MTI Method: Plan, Do, Check, Act (PDCA) .......................................................................................... 76
6.2 Target Setting and Cascading (TSC)............................................................................................................. 77
6.3 Problem Solving ............................................................................................................................................. 83
6.4 Project Management .................................................................................................................................... 100
6.4.1 Project Execution.......................................................................................................................................................... 102

6.4.2 Management of Change (MOC) ................................................................................................................................... 105

6.5 Knowledge Management ............................................................................................................................. 109
6.5.1 Good Practices Program .............................................................................................................................................. 110
6.5.2 Good Operating Practices ............................................................................................................................................ 111
6.6 Performance Review Process (PRP) ........................................................................................................... 115
7. Strategy & Business Cycle ..................................................................................................... 119
7.1 Strategy (Mid and Long-term) ...................................................................................................................... 119
7.2 Yearly Targets and Projects ........................................................................................................................ 120
7.3 Budget (Business Cycle) ............................................................................................................................. 123
8. Acronym List ........................................................................................................................... 124
9. Document History ................................................................................................................... 125

1. ABI MANAGEMENT SYSTEM

1.1 ABI Management System Overview
The ABI Management System supports the annual ABI

What is
it? Management Cycle by providing a framework to continuously
improve the company processes, procedures and tools.
How does The ABI Management System contains three parts (Fundamentals,
it create Manage to Sustain and Manage to Improve) to help our employees
value? consistently deliver the right results to achieve our Dream to Build
a Profitable Growth Company.
Management excellence demands an ability ABI Management System Benefits

to sustain and improve results through the
• Greater clarity of goals to be achieved
disciplined execution of daily routines,
efficient business process controls and • An efficient way to improve and sustain
tracking of Key Performance Indicators (KPIs). results
• Installing a continuous improvement

The ABI Management System (ABI-MS)
mindset
describes the way the company manages its
processes from strategic planning to routine • Ensuring alignment from strategy to daily
execution, to obtain desired results. To better execution
visualize and organize the ABI-MS, a pyramid
• Disciplined, routine follow-up of results
was developed with four layers that align with
the Management Cycle: Fundamentals, • More effective decision-making based on
Manage to Sustain (MTS), Manage to data and analysis
Improve (MTI) and Strategy. • Sharing of best practices through
knowledge management
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Confidential ©AB InBev 2020. All rights reserved. Contents Page 5 of 125
At the top is Strategy & Business Cycle which outlines our mid- and long-term strategies based on the Dream
defined by our Executive Board of Management. Strategies are the outputs that come from analyzing the current
situation of the company, future trends and perspectives, and their comparisons. See Section 7 for more details
on Strategy & Business Cycle.
The Strategy and Business Cycle enables the next layer, the Manage to Improve (MTI) Cycle. It encompasses
work each year towards the improvements and innovation targets that were identified during the Target Setting
and Cascading process of the Management Cycle. The MTI Cycle relies on the PDCA (Plan-Do-Check-Act) Method
to solve problems and to close the gaps opened during the strategic planning processes. See Section 6 for more
details on the MTI Cycle and PDCA Method.
The second layer from the bottom is our Manage to Sustain (MTS) Cycle. It defines our daily routines which
produce predictable and repeatable results, and reduces the time required to achieve the same results year over
year. The MTS Cycle follows the SDCA (Standardize-Do-Check-Act) Method to sustain results and to close any
gaps in performance which may arise during daily execution. See Section 5 for more details on the MTS Cycle and
SDCA Method.
Forming the base of the Management System are The Fundamentals – our Global Company Policies and 5S
Methods – together these define what we do and how we do it.
1.2 ABI MS and Anyone holding

the 3 Key a leadership
Success Factors position at ABI
to Achieve is responsible for sustaining the
Results
results budgeted for each year within their span of control. They are also
To achieve results, ABI requires leadership, and knowledge of our methods and functional processes. The
responsible for improving the results identified during the strategic planning
achievement of results is strongly related to 3 key success factors: Leadership, Method and Process Knowledge.
process through the Manage to Improve (MTI) and Manage to Sustain (MTS)
Cycles.
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The ABI Management System is supported by 3 key success factors: Leadership, Method, and Process
Knowledge.
Leadership
Set the Direction
Reach results through the team,
doing the right thing.
Results
Method Process Knowledge

Way to achieve targets Learn how to execute
What we do to achieve the Tacit knowledge & Explicit knowledge
best results Transform Tacit knowledge into Explicit
knowledge.
Leadership
Our company’s Leadership principles are described in the Leadership Competence Model, which is aligned to the
10 Principles.
Our Leadership factor is represented by the People Pillar.
• Leadership strategically guides the organization.
• It defines objectives and should allocate the resources needed to achieve them.
Leaders should inspire and motivate, leading by example, behaving and working in a way that is aligned with the
objectives, values, vision and mission of the company.
Front Line-Focused Leadership
Traditionally, many organizations and companies employ a hierarchical leadership model, with senior leaders at
the top of the org chart, then their direct reports, followed by their direct reports and so on until the front line
positions closest to the process or customer are shown at the lowest level. This model is illustrated below.
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However, when we look at where we need to go as Supply and as a company to ensure our success and growth
for the next 100+ years, this traditional model will not work. It does not do an effective job of fostering
autonomy, empowerment and ownership at the front lines of our business, which is truly where everything
happens that ultimately drives our success. If you think about it in terms of who actually touches our ingredients,
processes and equipment, it is not our senior leaders, managers or even supervisors. Rather, it is our Operators,
Technicians and Lab Analysts that have their hands on these items and take actions every day to turn the raw
inputs into finished products and load them to head out to our customers. With this in mind, the true roles of
everyone else in Supply is to support the Front Line, rather than the opposite. Leaders at all levels must
fundamentally understand this and consider their primary objective, regardless of their specific role, to be
focused every day on supporting, coaching and listening to the Front Line in their role as the primary drivers of
our processes. Leaders at all levels must constantly look for ways to remove any obstacles or hurdles getting in
the way of the Front Line’s ability to drive all aspects of performance. Another way to think about this mindset is
to invert the traditional hierarchical leadership model and org chart to look like the version below.
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Process Knowledge
Process Knowledge gives the ability to work using the best available techniques and know-how.
Our Process Knowledge factor is represented by the Technical Pillars.
• An individual must have technical knowledge of the process in which he/she works.
• An individual must seek full understanding of his/her processes, with a broad knowledge of details. We
should always maintain a curious attitude.
• Attend formal training to transform Tacit knowledge (personal experience) into Explicit knowledge
(simple and repeatable).
Method
Understanding our Methods provides a common language and a disciplined and standardized way to address
challenges and perform routines consistently.
Our Method factor is represented by our standard problem-solving method Plan Do Check Act (PDCA).
• Combined with Leadership, Method is needed in order to apply people’s knowledge in the most effective
way, to align efforts and to organize resources in seeking better results.
• It provides people with concepts and managerial tools that improve efficiency at work.
• It also provides the advanced problem-solving methods for solving strategic problems and achieving
targets. For more details, see the Problem Solving block.
100% Mindset
Linked with Front Line-Focused Leadership, but also connected to our Methods, is the 100% Mindset. This is a
very simple concept. It is another way of describing the culture of continuous improvement that should be
embedded in every Supply employee at every level. It ties to Principle #5…We are never completely satisfied
with our results. We embrace change, take smart risks and learn from our mistakes. It is critical that everyone
not only believes in the 100% Mindset, but lives it every day in our routines.
• Our full potential is 100% in everything we do.

• Leaders must believe we can achieve 100%.
• Team members at all levels must believe we can get to 100%, too.
• Leaders are responsible for ensuring their teams believe in the 100% Mindset.
• We must take the steps necessary to achieve 100%.
When the two concepts come together, leaders empower their teams and turn them loose with full autonomy to
go after 100%. When this happens, exponential step changes in performance also happen. Examples of what the
100% Mindset can be in various parts of Supply are shown below.
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We already see examples of teams embedding Front Line-Focused Leadership approaches, as well as the 100%
Mindset in sites and the results that come from both.
• 0 injuries for years across entire sites

• 0 Consumer Complaints or 100% Micro Index for over a year
• 100% LEF on a Packaging line for over a month
• 0% Service Level for an entire region of breweries for over 8 months
We have only begun the journey to 100%. Throughout this handbook, the 100% Mindset will be referenced to
help teams see how the various Management Pillar processes can be applied to strategically and tactically embed
it in the routines in a site. Please also consult the VPO People Pillar handbook for more details on how the 100%
Mindset can be applied to live this mindset.
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2. VPO PROGRAM
2.1 VPO Dream, Mission & Flywheel
Voyager Plant Optimization (VPO) is the AB InBev way to operate our facilities and it has the objective to
achieve sustainable results by creating a culture of continuous improvement and empowerment within the
Supply Organization.
The Management Pillar handbook supports the dream and mission of Voyager Plant Optimization by creating a
culture of continuous improvement and empowerment within the facilities.
The VPO Dream:

VPO Forever!
We measure our progress towards this Dream by the percentage of our Supply facilities achieving the three highest
maturity levels within our excellence program, Sustainable, Excellent and World Class.
The VPO Mission:

Be recognized as VPO experts, providing standards, knowledge and coaching to enable VPO execution,
leading to World Class results.
The VPO Flywheel below describes how our Supply organization operates at all levels and in all sites. This
Flywheel is essentially the driving engine of our entire VPO management system.
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2.2 VPO Principles to Achieve Results

The VPO Program is based on 6 key principles:
• Simplification: Keep it simple, put the fundamentals in place

• Focus on execution: Measure the right and few KPI’s that drive the results to the targets
• Communication: Create the sense of ownership and accountability
• Discipline: Excellence in execution - sustainability, free time to do the important things
(important/relevant x urgent)
• Teamwork: Commitment, sharing of best practices, the best team with one single goal
• Leadership: Drive behavior change, fact-based decisions, lead the way
These principles are aligned with ABI’s “Dream, People, Culture” concept and will drive behaviors that will make
the difference to achieve Excellence in the Results.
2.3 Results Aspects

Aligned with the AB InBev Management System, the VPO Program brings together the following 3 key success
factors and the framework of our “Dream, People, Culture” platform in order to achieve Results:
• Leadership skills
• Necessary technical knowledge of brewery operations
• Method knowledge
Results are not only measured in terms of costs. They are also cover the safety and morale of our People
(Behavior), the quality and delivery of our products (Service), and the efficiency of our processes, both from a
performance and sustainability/Better World standpoint (Performance).
Behavior (moral and

safety)
• Safe Environment / Zero
Leadership accidents
Set the Direction • Good and neat work
Reach results through the place
team, doing the right thing. • Trained, multi
Service (quality and delivery
Results • Available of our products
• No consumer / customer
complaints
Method Process • Right Quality – first time
Knowledge
Learn how to execute
Way to achieve targets Tacit knowledge
Performance
What we do to Explicit knowledge
• Higher efficiencies
achieve the best results Transform Tacit knowledge
• Lean organization
into explicit knowledge.
• Low material losses
Cost
• Lowest cost producer
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These 3 key success factors (Leadership, Process Knowledge and Method) are also reflected in the VPO House
that AB InBev has chosen to structure the management of the facilities.
2.4 The VPO House

The Quality, Service and Cost aspects are also present in the “roof” of the VPO House to achieve Excellence in
results:
Since People are the foundation of everything we do, the VPO People Pillar defines all policies, procedures and
processes to engage and develop our teams and leadership.
The method to sustain and improve results is encompassed in the VPO Management Pillar. It optimizes and
standardizes plant operations across AB InBev on its journey towards achieving our company Dream and
Purpose.
By successfully implementing the method supported by Process Knowledge (Safety, Quality, Environment,
Maintenance, Logistics), the necessary behavior will be established to continuously drive and sustain
performance improvement and share best-practices.
3. VPO MANAGEMENT PILLAR

The VPO Management Pillar optimizes and standardizes plant operations across the facilities by providing
globally aligned and standardized management tools and methods that are applicable to all facilities. All these
tools and methodologies are customized for VPO and described in this VPO Management Pillar Handbook.
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As the People Pillar is the foundation of the VPO House, the VPO Management Pillar is the “beam” that ties and
holds everything together and at the same time supports the achievement of RESULTS (our VPO House “roof”).
3.1 VPO Management Pillar Structure

The VPO Management Pillar is based on the AB InBev Management Pillar and is customized for the requirements
of operations in Supply. It also includes the tools specific to Supply that are required for the execution of the
operating standards.
The Business Excellence picture below is the basis for constructing the VPO Management Pillar. It illustrates the
two cycles of continuous improvement: PDCA and SDCA. These cycles are the basis to achieve business
excellence.
• The Routine Review Process is the engine to turn the SDCA cycle, checking and acting to guarantee the
sustainability of results.
• The Performance Review Process plays the same role to keep the PDCA cycle spinning, checking and
acting to improve the results.
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Performance MCRS STRATEGIC OBJECTIVES OF TOP MANAGEMENT
PRIORITY
CHRONIC ANNUAL
PROBLEMS TARGETS Improvement
Cycle
Routine IMPROVES
MCRS
PERODIC REVIEW OF
PRIORITY CHRONIC
PROBLEMS
Sustaining
CORRECTIVE ACTIONS STANDARDIZATION Cycle
MAINTAINS
PRODUCTS
• Routine Review Process is a set of initiatives to check all sustaining KPI results and act on the
underperforming ones in order to ensure the current results will be sustained. It is based on the SDCA
cycle (S, D, Check, Act).
• Performance Review Process is a set of initiatives to check all improvement KPI results and act on the
underperformance ones, in order to ensure improvement of the company’s performance. It is based on
the PDCA cycle (P, D, Check, Act).
What is the content of the VPO Management Pillar?
Strategy Strategy and Business Cycle

Service Cost
Management
Maintenance
Target
Environment
Manage To Problem Project Knowledge Performance

Logistics
Setting and
Quality
Safety
Improve Solving Management Management Review

Cascading
Business Process Product and Standards Routine

Manage To
Description Mapping Process Creation and Review
People Sustain
Indicators Execution
Fundamentals Global Company Policies 5S
VPO
Toolkit
The VPO Management Pillar is organized into 4 layers: Strategy, Manage to Improve (MTI), Manage to Sustain
(MTS) and Fundamentals. The Strategy layer is aligned with the AB InBev Strategies, and is used for mid- and
long-term range initiatives, encompassing the Strategic Objectives in a 3-year planning cycle. The MTI layer
utilizes the PDCA cycle to improve our daily routine and current results. After the PDCA has reached expected
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Confidential ©AB InBev 2020. All rights reserved. Contents
Page 15 of 125
results, they become new standards that are put in place and executed in order to sustain the results achieved by
the improvement. These new standards become part of the MTS layer, which utilizes the SDCA cycle to run the
daily routine and sustain our current results. The Fundamentals layer is the basic preparation before
standardization and improvement take place. It is the essential part to be put in practice in facilities before
starting to implement MTS and MTI.
The 4 layers of the Management Pillar are organized in the following blocks, and shows the most common
connections between the layers. The Strategy is an input to the Target Setting & Cascading process, as well as the
Project Management block. Chronic issues that can’t be solved with routine tools are escalated to the Problem
Solving block and the non-routine tools within it. Knowledge from the Manage to Improve layer must be re-
standardized into our routines, mainly via the Standards Creation & Execution processes.
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The connections between the blocks within the Manage to Sustain layer, as well as what part of the SDCA Cycle
each one fits into are shown below. The connections between the blocks within the Manage to Improve layer, as
well as what part of the PDCA Cycle each one fits into are also shown in the same figure.
3.2 Management Pillar Design Principles

The Management Pillar content is defined primarily by Global, with the ability for the Zone/Function and Country
levels to add specificity and some customization to the Global material where needed. All VPO Pillars are built
using the same design principles, which are based on the three levels described below.
• Levels 1 & 2 are standardized Globally and Level 3 can be customized by the Zone;
• An individual facility cannot change any of the elements covered in Levels 1, 2 and 3;
• All changes to the Pillar content must be approved through Zone and GHQ channels.
Structure [Standardized Globally]
• Level 1: Covers plant organization and structure,

department missions, service level agreements, management
roles & responsibilities.
Management [Standardized Globally]
• Level 2: Covers all the tools & systems to properly
manage the plant, such as KPIs, Routines, Visual Management,
Meetings, etc, to be standardized globally. The responsibility
of updating the material will remain with Global Supply.
Technical [Customized by Zone Brewery Support (ZBS)]
• Level 3: Covers all the tools and systems to manage the
plant beyond the Level 2, which can be customized by Zone
depending on the equipment and process used, language, etc.
The customization and update of this level is maintained by
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the Zone functions. Therefore, it is possible to add customized tools based on local needs either on Zone or
Country levels that are aligned with the Global version. However, it is not possible to leave out any items from
the core AB InBev Way, as defined at the Global level.
3.3 VPO Business Cycle

The annual process that drives our Supply facilities is the VPO Business Cycle, which is contained in the Strategy &
Business Cycle Block. This cycle details the key processes each facility (and department within it) must execute
every year as part of the strategic planning process. This cycle and overall flow of the Management Pillar from
annual strategic to daily routine processes are shown in the figure below. Further details about the annual review
process, its specific requirements and the connections from the Strategy & Business Cycle Block into the rest of
the VPO Management Pillar can be found in section 7 – Strategy & Business Cycle.
The flow of the VPO Business Cycle:
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The VPO Management Pillar can be considered to be a “tool box”, where different means can be used from the
tool box to help close gaps and reach results. Some of these tools are permanently in place to drive the business,
while others are used only when needed, or temporarily until a problem is solved and a process is sustainable.
For an overview of the VPO Management Pillar, including linkages with the People Pillar and Technical Pillars,
please go to the Global VPO Portal and the following video:
Description Filename
VPO Overview VPO Overview Video.mp4
All Management Pillar materials referenced at the end of each section, including
videos, standards, templates and training material, can be found on the Global VPO
Portal under the VPO Documents menu option as shown in the screen shots below.
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4. Fundamentals Layer
What is The Fundamentals serve as the foundation of the ABI Management

it? System. It is on these policies and methods that all subsequent layers are
based.
How does Our Global Company Policies (including Internal Audit action closure) and
it create 5S Methods ensure consistency and integrity in what we do and how we do
value?
it across the company.
The Management system is built from the bottom up and is designed to ensure that the Fundamentals are in
place to create a solid foundation for sustainability, and to enable our Manage-To-Sustain SDCA Cycle to run
smoothly. The Fundamentals define what we do, and how we do it. The People Handbook defines who is
responsible and accountable to get it done.
The Fundamental Layer is composed of two blocks:
• Global Company Policies
• 5S
These blocks need to be implemented before moving to the MTI and MTS layers.
Target Problem Project Knowledge

Manage To Setting & Performance
Improve Solving Management Management Review
Cascading
Product and Standards

Manage To Business Process Routine
Process Creation &
Sustain Description Mapping Review
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4.1 Global Company Policies
Global Company Policies are defined by the top leaders of the company
What is it? and immediately become mandatory. These are rules that are
established as a product of beliefs, values and experiences linked to our
company Dream.
How does Employees must be fully compliant with all policies, at all times, at all
it create levels of the company. As such, Global Company Policies ensure
value? consistency in how we behave and operate worldwide.
The Global Policies Block has three main components:

• Global Policy awareness, understanding and adherence
• Crisis and Risk Management
• Global Risk Management Audit process
4.1.1 Global Policies

Global Policies are in place for every aspect of our business. External to Supply examples that we adhere to and
use routinely within Supply include Ethics and Compliance within our Code of Business Conduct, Anti-Corruption,
People (e.g. leave, compensation, diversity & inclusion, labor relations, etc), Finance, Legal and Procurement
policies. Internal to Supply, the main source of Global Policies we use extensively in both the Zone functions and
sites are our SMS and VPO handbooks and associated policies.
With this in mind, Global Policies provide the basic requirements that must be followed by everyone in Supply.
However, they can also be consulted as a resource when encountering problems in the business. Similar to GOPs
(Good Operating Practices) discussed later in the Knowledge Management block (section 6.5), Global Policies can
be a wealth of information on how to properly execute specific processes.
Site teams must be familiar with the specific Global VPO policies applicable to the parts of our business within
their span of control, but also function as consultants for other departments within the site. Therefore, site
teams must know how to locate the latest versions of all Global Policies they are primarily responsible for. In
many cases, SOPs (Standard Operating Procedures) should be written according to Global Policies. SOP writers
must have access to relevant Global Policies so they can use them as a reference for this purpose. Some (but by
far not all) examples per site department are included below:
• ES: Global Health & Safety Policy, Global VPO policies for all Safety Pillar fundamental blocks; Global
Environment Policy, Global VPO policies for all Environment Pillar fundamental blocks, etc.
• Quality: Global Quality Methods policies, Global Quality Audit policies, Global Complaints Handling
Policy, etc.
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• Brewing and Soft Drinks: Global Brand manuals, Global Quality PTS Policies, Global Quality Process
Standardization policies, Non-conformances Policy, etc.
• Packaging: Global Time Allocation Policy, Glass Inclusion Policy, Non-conformances Policy, Global Quality
Process Standardization policies, etc.
• Utilities: Global Natural Resources (N-Block) Policy, ABI Sustainability Internal Process manual (for E&F
KPI definitions and calculations), etc.
• Tech Services/Maintenance: Global Upholding Capex policies, Global ZBB Maintenance Chart of
Accounts, Global Technical Standards (GTS), Global Delegation of Authority policies, Global Capex
policies, Global Project Management Handbook, etc.
• People: Global Compensation, Diversity & Inclusion, Leave and People Cycle Policies, etc.
• Verticals: Global Quality PTS Policies, Global VOP KPI Definitions, Global Capex policies, etc.
4.1.2 Crisis and Risk Management

Risks are inherent to our business. It is impossible to eliminate all of them completely, but it is within our control
to mitigate many of them. Failure to recognize risks and put mitigation measures in place can result in incidents
of varying proportions, up to and including full-blown crises. Obviously, crises should be avoided for many
reasons, including their potential negative impacts to employee, contractor or consumer health and safety, brand
integrity and reputation, company reputation and the company’s financial health.
ABI has a comprehensive Crisis Management System in place. The Global Crisis Management Team (CMT) owns
the system and works with Zone and Business Unit (BU) Crisis Management Teams, as well as partner groups in
various Global Functions (e.g. Safety, Quality and Environment in Supply) to address any issues that arise in our
business.
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The ABI Crisis Management System is summarized below. The main components of the system are Preparedness
and Response Execution:
Supply sites have responsibilities for understanding and executing according to various existing Global VPO
policies that relate to the following parts of the Preparedness portion of the ABI Crisis Management System:
• Risk Assessments
• Crisis Prevention Planning
• Crisis Training and Simulation
Global, Zone and BU CMTs also have roles and responsibilities within each of these, as well as additional items
under this portion of the system.
Annually, the country, Zone and Global CMTs conduct risk and impacts assessments. These assessments look at
both internal and external risks with a wide variety of potential impacts (e.g. safety, quality, environment,
reputation, cost, regulatory compliance, media exposure, etc.). Additionally, four VPO Pillars include risk
assessment tools we use within Supply:
• Management: The Strategy Block discussed later in section 5.16 includes the SWOT Analysis tool
(Strengths, Weaknesses, Opportunities, Threats). This is the most general of the VPO risk assessment
tools where the identified weaknesses and threats can also be considered risks.
• Safety: Emergency Response Block requirements to assess potential hazards, conditions or incidents that
would trigger emergency response procedures. This includes understanding the types of natural
disasters a site is more prone to vs others.
• Quality: Food Safety Block requirements to assess food safety, food defense and food fraud-related risks
via our HACCP (Hazard Analysis Critical Control Point), HARPC (Hazard Analysis Risk-based Preventive
Controls), TACCP (Threat Assessment CCP) and VACCP (Vulnerability Assessment CCP) programs.
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• Environment: Aspects & Impacts and Non-compliances Block requirements to determine all potential
environmental aspects and impacts that could trigger regulatory non-compliances or cause an adverse
impact on the environment.
Site team members must understand the Supply risk assessment tools noted above and utilize them as applicable
to their specific department and span of control. Some examples include the following:
• Site and all departments: SWOT analysis, including strategies and initiatives to leverage strengths and
opportunities to overcome or mitigate weaknesses and threats.
• ES: potential injuries (especially SIFs), natural disasters, violence in the workplace or in transit, disease
outbreak, kidnapping, terrorism, regulatory non-compliances, contamination or failure of a BTS, willful
contamination of site waste streams, unintended environmental pollution, regulatory non-compliances,
etc.
• Quality: food safety risks, food security/bioterrorism, natural disasters, disease outbreak, product
tampering, non-conformances (especially any triggering product recalls), etc.
• Brewing, Soft Drinks, Packaging, Utilities, Verticals, Maintenance/Tech Services: natural disasters,
catastrophic equipment failure, facility destruction, major unplanned site or process shutdowns, major
process issues, product shortages
• Logistics: potential loss points, inventory accuracy risks, natural disasters, catastrophic equipment failure,
facility destruction, major unplanned site or process/system shutdowns, product shortages, load theft or
tampering, etc.
• People: labor disruptions, disease outbreak, workplace harassment/violence, compensation issues, etc.
All of our VPO Pillars have policies and processes in place designed to help us mitigate risks, prevent crises and
plan for them in the inevitable event they happen. Many of these may not be recognized initially as crisis
prevention or risk mitigation tools, but it is important for site team members to understand how they can be
applied for these purposes.
We can divide up our various Crisis Prevention Planning VPO tools into three categories:
• Preventive actions
• Early detection
• First/immediate reactions
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The figure below maps out the various policies and processes from each of the seven VPO Pillars and which
category they fall into. Some of them fall into more than one category based on their different components or
applications. In other cases, multiple policies or processes from the various pillars come together for different
types of situations.
Preventive Actions
The fundamental blocks in several pillars provide us the basics to prevent issues, whether as serious as a crisis or
as minor as a routine incident. The Safety Pillar is a good example with PPE requirements, policies for Lock-out-
Tag-out (LOTO) and Safe Access to Machines (SAM), Working at Heights and Fall Protection and Hazardous
Substances. Following these policies and training everyone according to them can prevent injuries. Similarly, from
the Quality Pillar are the Food Safety and Non-Conformances blocks. Following these can prevent harm to our
consumers and a crisis in the form of a public product recall. The Environment Pillar’s fundamental blocks can
prevent not only environmental pollution, but also possible production shutdowns and fines for non-
compliances. Preventive and Predictive Maintenance routines from the Maintenance Pillar can prevent not only
routine equipment breakdowns, but also catastrophic equipment failure. Control & Loss Prevention procedures
from the Logistics Pillar can prevent raw materials, work in process and finished goods losses that would
otherwise cause significant financial impacts to the business. From a People standpoint, several aspects of the
Work Environment & Engagement block (among other People Pillar processes), including proper basic conditions
throughout the site, fair and consistent labor relations practices, open communication channels and feedback
mechanisms can prevent labor disruptions and other people-related disturbances.
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Overarching all of these are tools from the Management Pillar itself. Management of Change (MOC) will be
discussed in more detail in section 6.4, but is one of the most important risk management tools we have in place
to deal with many different kinds of changes we may make in our business. Process Mapping will be discussed in
more detail and additional contexts in section 5.2, but it can be combined with the tools mentioned from Safety,
Quality, Environment and Logistics to map out risks, hazards, potential loss points, etc, to then be addressed
within SOPs to help mitigate them. Finally, the Product & Process Indicators and Routine Review Process blocks
combine to ensure we are looking at the right leading indicators within our routines to prevent minor incidents
from becoming major crises.
Early Detection
Similar to the Preventive side, tools in some of our Pillars also help us to detect issues early, before they become
bigger problems or even full-blown crises. Safety and Environmental Monitoring are critical tools for this purpose
from those two Pillars to prevent injuries, incidents and legal non-compliances. Process Technical Specifications
(PTS) in the Quality Pillar give us targets and allowed deviations for raw materials, work in process and finished
products to enable monitoring and handling of any non-conforming product before it leaves the site. Multiple
policies in the Logistics Pillar help us to keep accurate inventories for raw materials, packaging materials, spare
parts and finished goods, plus ensure proper shelf life tracking and management, as well as management of any
returnable assets. All of these tools help to prevent food safety, quality and loss issues. The Routine Review
Process within the Management Pillar again overarches all of these to ensure the right routines are in place at all
levels within a site to detect and address issues before they can become crises.
First and Immediate Responses

Our VPO Pillars again help us with tools for our immediate reactions to issues, which if done properly, may in
some cases be able to prevent a situation from having more serious consequences. Emergency Response
procedures within the Safety Pillar are the primary example of these tools. From there, the Safety, Quality and
Environment Pillars all have incident reporting and investigation policies and requirements, especially when it
comes to determining root cause of the problem. Within the Quality Pillar, the Global Blocking Procedure for
Non-Conforming Product must be strictly adhered to as soon as a non-conformance is detected. Reaction plans,
discussed further in the Problem Solving Block (section 6.3), executed by Operators and Technicians upon
immediate recognition of an issue should align with early detection-related policies, as well as any policies
applicable to the Response portion of the Crisis Management process within the site. This will contribute to
mitigating the risk of a small problem turning into a major incident or crisis.
For all three of these areas that fall under the Crisis Prevention portion of the Preparedness part of our Crisis
Management System, it is the responsibility of the site to ensure all employees understand these policies and the
reasons for them. Though there are several applications of these policies, employees should always understand
that one of the most critical reasons for following them is to prevent serious incidents, up to an including a major
crisis. Consult the specific VPO Pillar handbooks and their related policies and standards for more details on each
one.
Business Resumption Plan

A key part of preparing for a wide variety of potential crises is the concept of a Business Resumption Plan (BRP).
This can take several forms—a physical binder of printed documents, checklists, contact lists, etc., or digital
formats from simple documents and spreadsheets to sharepoints or systems like Acadia and the APAC Digital
VPO Tool. The content of a BRP is the important part. At a minimum, the following items should be consolidated
into the BRP and reviewed for any needed updates at least annually:
• Contact lists
o Country Crisis Management Team Coordinator
o Internal Emergency Response Teams
o Insurance company
o Local authorities and stakeholders, including emergency response and municipal utility contacts
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o Neighbors around the site

o Zone function escalation contacts (BOP Director, Zone function directors and emergency contacts)
o All vendors, contractors and service providers the site routinely deals with
o Union leadership contacts (if applicable)
• Call trees or communication plans to be able to reach every employee as quickly as possible
o Link(s) to updated personal contact info (home address and phone) for all employees
o Employee hotline set-up procedures (and any other alternative communication channels if needed)
o WhatsApp or WeChat groups, or other social media communication mechanisms allowing for
restricted access groups (these are good practices, but not required)
• Employee or temporary workforce call-in, temporary layoff and recall procedures
• Considerations and protocols for disease outbreak scenarios (note: specific protocols and procedures
must always follow local, region, country and company public health requirements)
o PPE and physical distancing requirements
o Testing requirements and protocols
o Sanitation and hygiene requirements
o Contact tracing, isolation and quarantine requirements
o Work permit procedures
o Procedures for occupancy, workspace and MCRS adaptations to adhere to public health
requirements
• Site lockdown procedures
o Triggers for and procedures to set up additional entry and exit protocols for specific crisis types
(e.g. disease outbreak vs natural disaster or catastrophic equipment/facility incident)
o Triggers for initiation of additional security protocols, as well as the protocols themselves
• Site-wide and department-specific contingency plans
o T-minus checklists: in general, having 14-day, 7-day and 3-day plans to completely shut down
production or reduce to the bare minimum of essential processes, depending on the department
(i.e. Brewing and Utilities may have minimal necessary operations, while Packaging and Logistics
are shut down in totality)
o Staffing plans: include easy access to the department SKAP matrices (reference the People Pillar
L&D Block for more information); staffing needs during the various T-minus time periods, any
minimal staffing required during shut down periods and a staffing ramp-up plan when operations
can resume
o Detailed modulation checklists (note additional levels of modulation or detail beyond routine
modulation executed during normal operations may be needed for some process areas like Utilities
or the BTS depending on the length and extent of the shutdown), as well as modulation reversal
checklists
o Production and shipment ramp-down and ramp-up checklists
o Work in process handling SOPs (e.g. yeast management, in-process beer, overage in-process,
finished goods shelf life management, etc.)
o Stay team preparation checklists: (a Stay Team comprises individuals who volunteer to stay on site
through a major weather or total shutdown event, if allowed by local government regulations)
▪ Sleeping and locker room accommodations
▪ Food, water, additional emergency supplies
▪ MCRS requirements (minimum of shiftly meetings including everyone on site)
▪ Buddy system requirements (no one should work or walk the site alone)
A Business Resumption Plan must be created in alignment with the applicable Global and Zone policies,
particularly the VPO Safety Pillar Emergency Response Policy, Quality Pillar Food Safety and Non-Conformances
Policies, all relevant Global, Local and Zone People-related policies, including any labor contracts in place at a site,
as well as any local, regional or national laws and regulations. Following any simulation exercises, near misses or
actual incidents, any lessons learned should be incorporated into relevant site protocols, SOPs and the applicable
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parts of the BRP. The Plant Manager owns the BRP for the site, in close coordination with each site department
manager.
Crisis Training and Simulation

Crisis Training and Simulation is the final Preparedness part of the ABI Crisis Management System where sites
have responsibilities. Just as with the first two parts, existing VPO policies and processes outline these
responsibilities and expectations. The figure below shows examples of tools from four VPO Pillars:
Training materials, preferably standardized in large part by the Zone functions and cascaded to all sites, should
emphasize the consequences a failure to adhere to any of these policies could have to an employee’s health and
safety, a consumer’s health and safety, the quality of our products, the environment and the company’s
reputation and financial well-being. This emphasis must start with the Onboarding process referenced in the
Recruitment & Selection Block of the People Pillar and continue through Induction processes for both new hires
and job movers, as well as ongoing upskilling and development activities outlined in the People Pillar Learning &
Development Block.
There is an old saying, “practice makes perfect”. This is true for many things, including our crisis preparedness
process. Consult the Safety, Quality and Environment Pillars for specific expectations regarding simulation
exercises (e.g. emergency response or evacuation drills, food safety traceability or mock food defense exercises,
environmental incident mock exercises, etc.). Zone collaboration with sites for any simulations is strongly
recommended, as any lessons learned from these exercises can be captured to improve Zone-wide risk mitigation
and crisis prevention policies and procedures.
Sites are always encouraged to conduct mock drills beyond the basic requirements, especially if they have higher
risks for specific types of issues or have had recent near misses or even actual incidents and want to use a
simulation to check the effectiveness of their root cause eliminating actions. Examples may include drills for
specific weather-related or natural disasters a site is at higher risk for, site lockdown drills, use of major overhauls
or annual shutdowns to practice additional levels of modulation, simulation of a BTS contamination or bypass,
drills for hazardous substance spills/releases, etc. Simulations and mock exercises tend to involve a portion of the
site population, while drills may be site-wide, including all employees and contractors. A good mix of both ensure
that all employees have opportunities to practice, and therefore reinforce, their training.
Crisis and Incident Response

The Response side of the ABI Crisis Management System is again a collaboration between the involved Crisis
Management Team(s) and Supply. Supply facilities have responsibilities mainly within the Incident Detection and
actual Crisis Response portions of the Response side of the system.
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Just as with the Preparedness side, our VPO policies again support our response execution within Supply. These
and other Global and Zone policies outline what must be done to respond to both sudden crises and critical
issues.
• Sudden crises: Severe injury or fatality (SIF), disease outbreak, facility destruction, catastrophic major
equipment failure, natural disaster, labor disruption, violence
• Critical incidents: Workplace safety issues, product issues, major process issues, business systems or
business security issues, threats, ethics or compliance issues, government or media investigations
Site employees must understand the policies and tools relevant to the various types of crises and critical
incidents they might encounter, particularly those most applicable to their specific job roles. This is another
reason to write SOPs and Reaction Plans using applicable Global and Zone policies as a reference. This will ensure
standard methods are aligned to policies such that employee understanding and adherence is made easier. The
figures below show examples of the relevant VPO policies and tools, as well as non-Supply functions that are
likely to be involved with specific types of crises and critical incidents.
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Each site and department within it must have clear escalation triggers, including expected timeliness, requiring
escalation to the appropriate site leader(s), Zone and Global function(s), as well as any external stakeholders (e.g.
local authorities, municipal utilities or vendors). These triggers must be clearly communicated to all applicable
employees in the site. Depending on the situation, Zone functions may deploy resources to a site to help with
onsite crisis or critical incident support. Zone function team members will also likely be involved with the root
cause analysis for a crisis or critical incident. All lessons learned from any crisis or critical incident must be
standardized back into SOPs, policies, protocols and the BRP (if applicable).
4.1.3 Global Risk Management Audit Process

Embedded in our Global Company Policies is the Global Risk Management Audit process. The Global Risk
Management Team is an independent assessor of the efficiency, effectiveness and compliance to established
controls, procedures, policies and contracts, as well as external requirements such as regulations. Global Risk
Management performs audits in accordance with an annual audit plan, fraud investigations arising from
whistleblower reports and various other ad hoc requests from management or the ABI Audit Committee.
All locations/processes of ABI are included in Global Risk Management’s scope; however, audits are prioritized to
more material/risky locations. The audit plan is based on:
• Rotational requirements – all significant business units, processes and breweries will be covered at least
every five years
• Risk areas that have been identified by senior management.
Any actions resulting from a Global Risk Management Audit must be captured by the facility in an action log and
closed according to the agreed-upon timeline between the Global Risk Management team, the facility and the
Zone Supply VP. The Global Risk Management team monitors and validates action plan closure as part of the
Supply Excellence Program (SuEP), People Excellence Program (PEP), and reports progress on a quarterly basis to
ABI’s Board of Directors. Actions should be closed in a timely manner, with “timely” defined as being closed
within the same calendar year as assigned.
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In addition to Global Risk Management Audit actions, the facility must also capture any actions stemming from
the following in the same action log:
• Zone VPO Audits
• Global VPO Audits
• Global Chief of Supply or Global Vice President visits
Action item closure should be monitored, and, as a good practice, Zones should monitor the action item closure
percentage from one audit to another.
Global Policies are the minimum requirement for the sustainability of our ABI operations. The Zone Policies can
be more strict, but never less strict. For example, all Supply operations must adhere to the pre-defined and non-
negotiable Plant Management Basic Fundamentals which ensure legal, safety and environmental compliance,
allowing for the optimal operation of breweries and verticalized facilities (which manufacture products other
than beer) and results achievement.
The Compliance Channel is a tool developed to facilitate interaction between the employees and the Compliance
Team. For further clarification on Compliance policies and codes, all employees can access the Compliance
Channel to ask general question, gain easy access to the Helpline site, where you can confidentially report a
violation of our policies and codes and access Compliance related documents.
For more information about the Global Policies Block, please go to the Global VPO Portal and the following VPO
Documents:
Description Link or Filename
Global Company Policies VPO.MGT.4.1.Global Company Policies.docx
VPO Pillar Action Log_Brewery.xlsm

Site Audit/Global Visit Action Log example templates
VPO Pillar Action Log_Vertical.xlsm
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4.2 5S
What is 5S is comprised of five steps to ensure an organized and clean physical

it? and digital work area. 5S is not a sanitation program. It is intended to
help employees perform more efficiently and effectively.
How does 5S is the foundation for productivity and is an enabler of efficiency. This
it create method provides a fundamental and systematic approach to be more
value? productive while improving safety and quality.
5S has to be a permanent mindset for every employee. It is a mindset that should be continuously and routinely
executed.
Listed below are the 5 phases of 5S:
1) Sort: Screening through the working materials in order to separate the essential from non-essential and
remove the latter
2) Set in Order: Organizing the essential materials in the workplace to allow for easy and immediate
retrieval
3) Shine: Cleaning, sweeping, washing, and tidying the workplace
4) Standardize: Establishing schedules and methods to perform and maintain the sort, set in order, and
shine
5) Sustain: Performing sort, set, shine, and standardize on an ongoing and systematic basis.
5S helps to simplify work by increasing the quality of the work conditions and
reducing time spent on non-value added activities, such as searching for misplaced
items.
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There are two types of 5S: Physical 5S and Digital 5S.

• Physical 5S maintains efficiency of how an individual works in a physical workspace.
• Digital 5S maintains efficiency of how an individual works online, in shared digital areas such as
SharePoint sites and shared drives. It guarantees that documents can be retrieved efficiently and
accessed in a secure and structured environment. Some examples of digital 5S are: documents saved
with a common naming system, or being accessed by the whole team stored in a shared folder.
Shop floor and office area operations vary in their focus on Physical and Digital 5S:
5S Focus Breakdown
Office areas Shop Floor
80% Digital 5S 80% Physical 5S

20% Physical 5S 20% Digital 5S
To ensure consistent 5S implementation, periodic 5S audits should be conducted. These can be done via a digital
tool (InterAction Log or other web-based tool) or using a physical printed audit checklist. Where there are
synergies with other Pillar checklists, these efforts can be combined together (e.g. Prerequisite Program—PRP—
audits from the Quality Pillar) for multi-tasking purposes. Audits can be performed by anyone on the team, and
small gaps should be closed as soon as they are found as much as possible. Bigger items or longer-terms
improvement efforts outside the span of control of an individual Operator or Technician should be escalated
within the MCRS to the Team Room for tracking on the team’s action log (whether short term on the wall or via
InterAction Log/APAC DVPO Tool). As a good practice, cross-audits between teams in the same department or
across departments in a site can be done for benchmarking and calibration purposes.
For any greenfield or acquired sites who do not yet have 5S in place, or for an existing site or area within it
needing to reset its 5S program, it is important to plan out the implementation to ensure its effectiveness. A 5S
owner for the implementation effort is strongly recommended to lead the 5S process, which consists of the
following steps:
• Mobilization: Naming facilitators, communicating the program, gathering training material, defining a
calendar (training and audit)
• 5S Training: Define method (e-learning, on the job training (OJT), classroom) and deliver training
• Implementation: Provide guidance for each “S” and follow up on implementation initiatives in each area
together with a facilitator. A RACI matrix can be used to better clarify responsibilities for 5S execution. 5S
can be an engagement driver, so wherever possible, team members working in an area should be given
the autonomy to apply the guidance to define how they want to organize their work areas and then
implement their plans accordingly.
• Audit: Train and calibrate team members at all levels on the audit process, communicate an audit
frequency, perform audits using a 5S checklist, compile and communicate results
• Corrective Actions: Define and follow up on action plans to improve 5S results
• Recognition: Identify and recognize best practices, best areas and people who have outstanding 5S
performance to generate and sustain momentum in the early stages of implementation. This does not
need to be permanent once 5S has matured within the team(s).
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5S the Job, NOT the Space

This is a concept that is particularly helpful to keep in mind as you are going through an area to either install 5S
initially, or sustainably improve the existing 5S. It is relatively easy to clean out (Sort) a cabinet and workbench,
for example, and also to neatly arrange the items back on the shelves. However, unless you have thought about
what tasks you and others need to do in that area, and the items needed to perform those tasks before you Set
the cabinet and workbench back in order, you will never truly Sustain the 5S in that area, nor will you capture any
efficiencies for yourself and your teammates. Further, think about the order you need things for routine tasks, or
how to set up a space such that it cannot be messed up—in other words, there is only one way to put something
back, and that is in its proper place. When teams start to think first about the jobs they do in an area—safety,
quality, cleaning/sanitation, operating, inspection, lubrication, routine maintenance, changeovers and
overhauls—then set up their spaces, tools and equipment according to what has to be done, they truly leverage
the power of a strong 5S mindset.
Examples (see pictures below):
1. Including safety equipment, tie-off points, lifting pick points, etc in the 5S of an area, making
maintenance tasks easier to perform safely
2. Painting inventory control into the pallet bay line demarcations, as well as vertical markers for easy re-
order point and min/max visualization for things like raw and packaging materials
3. Use of shelf segregation bins or foam cut-outs to make it impossible to put things back in the wrong spot
In addition to applying this concept of “5S the Job, Not the Space” to installation or improvement projects, teams
can also successfully apply it during problem solving efforts. As they dig into a problem, there are often aspects of
the issue that 5S can help to solve.
Examples (see pictures below):
1. Manual tank cleaning equipment Set executed with Micro Index performance in mind…getting as
detailed as storing the sanitizer bath upside-down so that there is no doubt as to when the sanitizer was
last changed out.
2. Making complicated LOTO procedures safer, easier and faster to execute, reducing downtime
3. Changeover part storage, color-coded and segregated by bottle type, and arranged in the order it goes
onto the machine to reduce changeover time, resulting in GLY improvements
4. Shim storage by thickness to reduce machine adjustment time, resulting in GLY improvements
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A strong 5S program, always keeping job tasks in mind and organizing the workplace according to them for
improved safety and job execution efficiency is one of the fundamental characteristics of a world class facility.
To learn more about 5S, please go to the Global VPO Portal and the following VPO Documents:
5S Checklist Templates VPO.MGT.4.2.2 5S Audit Form
5S Video 5S What Good Looks Like.mp4
5S Training VPO.MGT.4.2.3 5S Training
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5. Manage to Sustain (MTS) Layer
What is it? The Manage-To-Sustain (MTS) Cycle defines our daily routines to sustain
our performance improvements of the past.
How does
it create Simply crafted routines add time back into the day by producing
value? predictable and repeatable results.
The MTS Cycle includes five sequential blocks: Business Description, Process Mapping, Product & Process
Indicators, Standards Creation & Execution, and Routine Review Process.
These blocks are implemented to maintain the current level of operation, making it more efficient. We must
manage our routine before we can improve it. Together these ensure predictable and repeatable results at ABI by
providing:
• Standard processes and procedures indicating how to perform a particular task

• Detailed documents such as standard operating procedures (SOPs), process maps, policies and
handbooks
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• Proper training and supervision to execute the task properly each and every time, and ensure standards
compliance
5.1 The MTS Method: Standardize, Do, Check Act (SDCA)

Standardization is the heart of business excellence. It assures consistent results
from repetitive operations by having stable processes achieved via standards
compliance. ABI standardizes all the activities necessary and critical to achieve
results.
The MTS Cycle ensures standardization by following the SDCA method:
S STANDARDIZE: Set planned values for product characteristics or process parameters that must be
sustained, and create standard procedures (operational or technical) to achieve them.
D DO: Train users and execute routine operations according to the standards.
C CHECK: Check the results (process parameters and product characteristics) for consistency.
A If there are anomalies, remove their symptoms and act on their root causes; otherwise, keep
following the standard. Chronic problems are addressed with the Manage to Improve Cycle.
To illustrate how the SDCA method applies to our operations, consider the example of a job task to weigh out the
hops for a given brew in one of our brewhouses.
• S: an SOP is in place for the Operator to follow to weigh out any hop bill…what type of container to use,
what type of weighing tools and scale to use, how to tare the scale, etc. But, more specifically, the hop
recipe for each brand specifies the exact hop varieties and lot numbers that must be used, as well as the
exact weight for each. The SOP and the recipe comprise the Standardize step for this task.
• D: the operator performs the task…she finds the correct varieties in the hop room, weighs each on the
scale into the correct container, labels it with the brew information and stages it for addition to the
brewkettle. These steps should be obvious that they represent the Do step of the method.
• C: in reality, this is performed almost simultaneously with the Do phase for this example…as the Operator
is pouring hop pellets into the container, she is watching the scale. In other words, she is Checking to
make sure she achieves the correct recipe weight.
• A: if the Operator sees that she is still under the recipe weight when she checks the scale, she Acts by
adding more hop pellets. If she sees she is over weight, she can Act by taking some hop pellets out. This is
a very simple example of the Act phase. Obviously, the actions required for any given anomaly may
require substantially more troubleshooting and root cause analysis.
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This is a relatively simple example, but it illustrates that we are all using the SDCA method throughout our daily
routines…in many cases, we may not even realize it!
Once standards are established and executed with discipline daily, it is essential to continuously improve them to
ensure sustainable results.
More Examples of MTS in Our Daily Work

• Executing operating standards on a piece of equipment
• Executing maintenance routines on a piece of equipment
• Tracking and monitoring the outputs of a process compared to PTS values
• Completing 5-Why analyses or abnormality reports and corrective actions
• Attending routine review meetings
Operators dedicate most of their time to executing routine standardized activities. Leaders at all levels must
periodically check that their teams are consistently complying with established standards, but focus more on
facilitating and supporting the teams’ execution and improvement efforts. Team members at all levels will also be
involved in improvement and innovation initiatives to refine existing processes and products, or to develop and
implement new ones. The following diagram illustrates this mindset.
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5.2 Business Description (BD)
The Business Description Block is the starting point for the MTS Cycle. It
What is defines the Suppliers, Inputs, Processes, Outputs, and Customers/Clients of
it? the specific business function being described, as well as agreed deliverables
between Suppliers and Customers when there are issues between them.
How does
The tools in the block provide a comprehensive overview of how a given
it create
area contributes to the company and satisfies its customers.
value?
A Business Description:
• Contains “Suppliers” and “Clients” that are external or internal
• Can be used at many levels of the business, including business unit, Zone, for macro processes, and at the
plant, department and area/line level within a Supply facility
• Is most effective if developed at the department or process area level by its team members
A Business Description should contain all of the following elements:

• The products/services (outputs) that the customer/client values
• The Critical Processes that add value to the company
• The main reason it exists – the mission, aligned with the purpose of AB InBev
• The Dream of the business unit being described, aligned with the Supply Dream
• The inputs and suppliers
The main objective of a business is to satisfy its customers or clients!
In order to improve business performance and reach business excellence, the first thing to be done is to identify
what our business is and what it delivers to its clients. To start creating a Business Description, define all of the
Clients and the products they value which your process makes. The Mission should be aligned with the Dream
and connected to the delivery of the products to the client(s). After the products have been defined, then the
processes that deliver those products are defined, Finally, the inputs required for each process are listed and the
suppliers that deliver those inputs are identified.
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Sample Business Description:
Reviewed by:
Brewery or Department Business Description
Date:
Suppliers Inputs Business Overview Products / Outputs Clients
Dream
Zone ES Department & OSHA Laws and Regulations and Reporting Definitions Safe Work Environment
Zone ES Department & Environmental Laws and Regulations Community & State and Federal
Environmental Compliance
Compliance Agencies Reporting Definitions Environmental Agencies
Laws and Regulations Quality Product Produced using HAACP and Wholesalers, Logistics Department,
FDA Optional to paste the brewery
Reporting Definitions GMP Principles Customers, Distribution Center
logo here.
Non-Compliance Product Management
Consumer and Customer Compliance Management Wholesalers, Logistics Department,
Zone Quality Assurance Quality and production data integrity
Quality Compliance Audits Customers, Distribution Center
Micro Index Management
Area
Production Plan and Control
Wholesalers, Logistics Department,
Logistics Department Shipping Objectives Packaged beer in bottles, cans and kegs
Distribution Center
Inventory Management
Mission
Malted Barley, Hops, Rice, Corn grits, Specialty Ingredients,
Raw Material Suppliers Spent Grain Spent Grain Hauler
CO2
Bottles, Cans, Kegs, Labels, Crowns, Lids, Primary and

Packaging Suppliers Brewery Wastewater Effluent Nutri Turf Land Application Site
Secondary Packaging
Processes
Municipal Utilities Water, Natural gas and Electricity Recyclable Materials Recycling Contractors
Supplier Purchase Agreements

Procurement Vendor Contracts Landfill Waste Landfill Haulers
Spare Parts Management Support
People Department Training and Development Resources Professional Development of Employees

Benefits and Benefit Communication
Zone People Recruiting
EMPLOYEE OWNERSHIP
Union Grievance Management
Policies and Procedures

Targets and Resources
Policy and Procedure Adherence and
Standards (VPO)
Zone Brewery Support Standardization Zone PPM Department
Audit and Inspections
Brewery Performance Metrics
Business Information
Standardization of Reports
Accounting Compliance Auditing Financial Reporting Integrity

Finance Department Targets and Objectives Financial Results Finance Department
Financial Information Performance to Plan
International and Domestic ABI Breweries Import and Domestic ABI Brands External Customers
CO2 External Customers

Critical Products
Agricultural Crops External Customers
Note: The minimum requirement for Business Description development is at the facility and department level. In
order to complement the Team Room concept required as part of the Routine Review Process block, a Business
Description should also be developed for any department that breaks into sub-areas for its management
structure. For example, if a Packaging Department has more than one packaging line, each will be considered a
team, and require its own Team Room. In this case, a Business Description should be written for each packaging
line, in addition to the Packaging Department and facility Business Descriptions. However, if a department does
not break down into any sub-areas, Business Descriptions do not need to be written below the department level.
Once an initial Business Description is written, it must be kept current. At a minimum, it should be reviewed
annually in conjunction with the strategic planning process (see the Strategy Block in section 7 for more detail).
However, it is a good practice to update the Business Description any time there are major changes to the
business. In this way, the Business Description functions as a living document for the team.
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The Business Description clarifies customer-client relationships and stimulates the

customer-focused approach. It is the starting point for defining the key
performance indicators (KPIs) and service level agreements (SLAs) that will help
monitor our business.
Once the Business Description has been created, the team should rate the products using a Critical Product
Matrix. This matrix helps the team prioritize the products for Process Mapping, covered in section 5.3, as well as
evaluating the need for any Service Level Agreements (covered below). The matrix gives the team a data-ish way
(though still somewhat subjective) to determine the impacts their products have on various aspects of their
business, as well as the satisfaction levels of their customers. A partial example for a site-level brewery product
list is shown below.
Teams can choose to add additional granularity to the above impact categories, such as adding in specific KPIs.
Wherever possible, clients should have input into the client satisfaction rating. While all of the products a team
makes should ultimately be process mapped, the criticality matrix prioritizes the order in which this should be
done by the team.
Just as with the Business Description review, the team should review its Critical Product Matrix as well. New
products must be added to the matrix and rated, and the team should solicit feedback from its clients at least
annually as well.
Service Level Agreements
A Service Level Agreement (SLA) is a negotiated agreement between business partners in which the expected
level of service is formally defined and agreed upon. An SLA must have a KPI linked to it to measure the service
level that must be achieved to satisfy the agreement. An SLA must be established for all critical products where
client satisfaction is an issue. In this respect, SLAs are more routinely used than the other tools in the Business
Description Block, and primarily coming from problem solving efforts. There is no need to define an SLA for every
product, whether critical or not. SLAs guarantee that requirements are clear and assure quality, timeliness and
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cost of the product provided by the supplier. By ensuring that the specifications for critical products are met,
SLAs help us meet client expectations and achieve results.
Specifically, SLAs should:
• Formalize the service provider’s and client’s expectations and agreements

• Describe the products or services to be delivered
• Identify people’s roles to resolve potential issues
• Specify the metrics by which the effectiveness of the service, activities, functions and processes will be
measured, checked, changed and controlled
A team can create an SLA with one of its suppliers or with a client. An SLA can be internal, meaning between two
departments in a site, or external. External SLAs can be between the site or site department/team and a third
party contractor or vendor or with a Zone function. Some examples (though none of these are required) for
various departments are shown below.
• ES: with internal departments for timelines to complete SIF potential, injury and environmental incident
investigations; with internal departments for discharges to the BTS; with Zone ES for monthly KPI
reporting timelines and reconciliation between Credit360 (injury and incident reporting system) and
Anaplan (KPI reporting system)
• Quality: with internal departments for timelines to complete quality incident investigations; with
Packaging and Logistics committing to disposition decision timelines for any non-conformances
• Brewing: with third party transportation service providers (e.g. railcar switching service) for timelines and
defective equipment reporting; with Packaging for finished product releasing increments, timelines and
schedule change communication requirements
• Raw Materials VOP production departments: with Zone Logistics for loading and unloading schedule
adherence; with brewery Warm Block departments for railcar/truck inspections (before and after
unloading)
• Packaging/Packaging VOP production departments: with Logistics for production schedule changes in
weeks 0-3 or cancelling/pushing maintenance days out; with QA for Defective Material Report (DMR)
submission timelines, required information and supplier follow-up
• Utilities: with Brewing or Packaging regarding high usage follow-up requirements; with internal Tech
Services/Engineering or Zone Capex regarding adherence to Global Technical Specifications (GTS) for E&F
efficiency design requirements for new equipment
• Maintenance: with Procurement for requisition processing timelines and alternative parts Management
of Change (MOC) process adherence; with Zone Maintenance and Zone Capex for Upholding capex
process; with Logistics for overhaul schedule commitments
• Tech Services/Engineering: with Brewing, Packaging and Utilities for capacity file updates; with internal
departments for project KPI performance and financial savings delivery validation; with Procurement for
supplier bidding process; with major equipment suppliers for GTS adherence (written into contracts)
• People: with internal departments for People Cycle adherence and committing to vacancy fill timelines;
with People Continuity/Zone ABIU for L&D content delivery
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SLAs must be reviewed periodically (at least yearly) to incorporate any upcoming changes in processes, fine-tune
requirements, add or remove SLAs and to validate the delivery of the results. Do not create SLAs just to create
them—rather, put them in place when there is a problem between the supplier and client. In addition to being
measurable, SLAs are more effective when there are consequences for breaking them. In the most formalized SLA
examples where the conditions are written into contracts, witholding payment to a third party contractor or
vendor is a good example of consequences. Internal SLAs can be more effective when the party who broke the
SLA is required to provide the problem solving done for the SLA violation, including the root cause eliminating
actions and due dates for their completion, to the other party.
To learn more about the Business Description block, please go to the Global VPO Portal and refer to the following
VPO Documents:
Business Description Template VPO.MGT.5.2.2 Business Description Template v6.1.xlsx
Critical Product Matrix Template VPO.MGT.5.2.3 Critical Product Matrix Template v2.1.xlsx
Service Level Agreement Template VPO.MGT.5.3.1 SLA Template v1.0.xlsx
5.3 Process Mapping (PMap)
What A Process Map is a graphic representation of a process flow with all of its
is it? steps in value-added sequence, leading to an end product or service.
It is a way to visually analyze a process to maximize efficiencies. It helps

How does
to identify activities, process interactions and tasks which are essential to
it create
value? sustainability and to ensure that the critical outputs and products are
delivered with the expected goals and quality.
While a Business Description is a horizontal exercise describing the Suppliers, Inputs, Processes, Outputs, and
Customers/Clients of a function, Process Mapping is a vertical exercise to drill down from the critical products
and their processes defined in the Business Description. It is used to describe:
1. How the end-to-end process is executed

2. The sequence of steps to produce a product or intermediate output
3. What is done by whom (position) at each step
A Process Map ensures that everyone has the same understanding of the process. Another important benefit is
the identification of the critical steps and checkpoints that must be controlled to improve process productivity,
compliance and efficiency, as well as the predictability of the end results.
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Overall, Process Mapping helps define:

• What we do – by identifying the tasks that need to be completed to deliver the outputs and products
that the customer expects.
• How to do it – by creating the basis (or outline) for the standards that define the steps of the tasks in
correct sequence or order.
• What to measure while doing it – by identifying the product and process indicators that need to be
tracked and monitored to ensure the desired outcome at each step in the Process Map.
The output of Process Mapping creates the connection with the Systems & Structure
block in the People Handbook, specifically Organization Design & blueprint. First,
people are assigned to a role to complete an activity by executing tasks. By aligning the
roles to the Process Map, they form an organizational chart. The tasks are organized
into logical groups which form the basis for Roles and Responsibilities for the people
who will execute the tasks.
Process mapping is an exercise that cascades the processes into four hierarchical levels within a certain business
scope:
Level 1 - Business: A business (e.g. the department in a site) contains a group of processes. The processes are
those listed in the business’s Business Description.
Level 2 - Process: A process (e.g. Brewhouse, Fermenting, Cellars, Filtration, Maintenance for a Brewing
department; Bottling, Canning, Kegging, Maintenance for a Packaging department; Steam Generation,
Refrigeration, CO2 Systems, Water Systems, Air Systems in a Utilities department) contains a sequence of
activities.
Level 3 - Activity: An activity, in general, can be thought of as unit operations or equipment centers (e.g. wort
boiling in Brewing or filling in Packaging). It contains a sequence of tasks required to convert the input(s) into
the activity’s output.
Level 4 - Tasks: A workflow is the breakdown of the activities into its tasks in a sequential or parallel order, on
the operational level. Examples of workflows include the tasks for wort boiling or filling from the Activity
examples above.
Note: there are no additional levels of Process Mapping. The steps required to perform each task (whether a
person executes the task, or a control & automation system) within the Level 4 Process Map workflow become
the detailed content of an SOP or the description of operation documentation given to a Control & Automation
expert to program a control system.
The diagram below illustrates the flow of Process Mapping, from Business to Process to Activities to Tasks.
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Once Process Mapping is complete to Level 3, the identified activities should be prioritized for mapping to Level 4
using a Critical Task Matrix. This matrix is similar to the Critical Product Matrix described in the Business
Description Block (section 5.2), but the aspects evaluated are internally focused and emphasize what the team
has to do instead of the level of client satisfaction. The example below lists the activities defined for a Brewhouse
process in a Brewing department (the Business).
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While all of the identified activities should eventually be mapped to Level 4 workflows, the Critical Task Matrix
helps the team prioritize the order this should be done in. Level 4 Process Maps in the form of workflows show
not only the tasks to transform the inputs into the output(s), but also identify where indicators are needed to
measure progress towards achievement of the desired outcomes. These indicators (PIs) could be related to
Safety, Quality, Loss, Productivity or Better World Efficiencies. Note: the indicators are not defined here during
initial Process Mapping…simply the need for an indicator is what is identified. The actual definition will be done in
the Product & Process Indicators Block (section 5.4). A simplified example of a Level 4 Workflow Process Map for
a lautering process in a Brewing department is shown below.
The two primary outputs of a Level 4 Process Map are tasks and
identification of needed indicators. During VPO implementation, this is
the primary purpose for conducting Process Mapping exercises.
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Once a workflow has been created for an activity, the same Critical Task Matrix should be used to prioritize the
identified tasks for standardization. Those tasks deemed critical on the critical task matrix must have SOPs
created for them to ensure their consistent execution and outcomes. The example below now shows the tasks
within the Lautering Activity, one of those identified as critical in the previous example rating the activities within
a Brewhouse process.
The above outlines the steps a team must follow to create the initial set of baseline (i.e. minimum starting level
of detail) Process Maps covering the entire process the team is responsible for. As a general rule, the baseline
Process Maps should be made for all critical products during the initial VPO implementation phase. Over time
post-implementation, the team should create Process Maps for all of its products on the Business Description
(often this requires creation of only a Level 4 Process Map if the non-critical product wasn’t already covered on
the Maps done for the critical products).
The more detailed the Level 4 Process Map is, the more useful the team will find the
document for further use. A good Level 4 Process Map includes all PIs associated with
that process, the KPIs the sub-process impacts, links to the SOPs connected to each
task identified on the map, including Standard Work Instructions and Preventive
Maintenance Routines for Maintenance tasks, as well as links to other standard
routine tools from any applicable Pillar (e.g. related Safety or Environment Checklists,
Quality check documentation templates, Logistics Pillar Inventory forms, etc).
Once Process Maps have been established for all critical activities, and the tasks and indicators defined as the
main outputs from Process Mapping, they should be printed out in large format (at least the Level 4 maps; use a
plotter printer to get to at least flip-chart size) and stored in the Team Room (see section 5.6.9 for more on Team
Rooms). Note: they don’t need to be hung on the walls, as this will take up valuable space. Drawing racks or other
storage methods can be used. In some cases, smaller printed versions, or digital access, may be needed at
Operator Workstations (see section 5.6.7 for more on this tool). Easy access to Process Maps for the team is
critical because there are three primary ongoing uses for Process Maps within a team’s routine:
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1) TRAINING. Process maps must be part of the induction and onboarding process for new employees to
quickly orient them as to their position in the organization, why their role is important and how they add
value to the company.
2) CHANGES. Any time a new product, new piece of equipment or change to the existing process is made,
the team must update the related Process Maps. In the case of a new brand or new equipment, the team
must review its existing Process Maps to determine where any updates may be needed. In some cases,
this could require completely new Process Maps, even if just for the Level 4 Activity Workflow. Many
times, use of the baseline Process Map in the early Design phases of a project can provide the starting
point for the team to define how the new process will work. Actually designing that new process can be
done using the same Process Mapping concept and process as was used to make the baseline PMaps.
3) PROBLEM SOLVING. Existing Process Maps, as well as the concept of Process Mapping, can be very
helpful during problem solving efforts, whether at the routine (e.g. 5-Why follow-up, Abnormality
Treatment) or improvement level (e.g. PDCA, ITF; refer to the Problem Solving block for more on Problem
Solving tools).
Consulting a Process Map may help the team to quickly isolate where in the process a problem has
occurred, which will speed up root cause analysis for more effective problem solving.
Sometimes, the Process Map can be consulted to ground the team in the as-is or ideal way the process
should run, which then helps the team map what actually happened when the problem occurred. They
can do this using white space in their Team Room, flip chart paper, etc. In this way, the team ends up
with two Process Maps for easy side-by-side comparison to see exactly where things went wrong to
cause the problem. In another situation, the team may see that certain steps on the Process Map are
shown in the wrong order, and this mistake was translated all the way into the SOP or process
automation. The use of the Process Map for either of these examples again helps the team focus its
efforts in the right part of the process for root cause analysis.
In many cases, the team will find that the baseline Process Map is not detailed enough to help the
problem solving effort. In this case, however, Process Mapping can still apply to help the team solve the
problem, but it will involve creating a new Level 4 Process Map by expanding on a portion of the existing
baseline version. Again, simple hand drawing on a white board or flip chart to map out the new detail is
fine during the team’s problem solving efforts.
Other forms of Process Maps can also be leveraged for problem solving, and may help the team to
further improve the details captured in their Level 4 Activity Workflow Process Map formats. Various
types of drawings at the team’s disposal could be helpful, including Process & Instrumentation Diagrams
(P&IDs), equipment layouts, SCADA screens, equipment schematics, etc. These formats, whether hand-
drawn ad hoc or marked up by the team obviously look different from the traditional format described
above, but they simply provide the team with a different visual map of their process that could be helpful
to confirm or deny potential root causes or determine new things to investigate.
Regardless of how a team uses Process Mapping during problem solving efforts (or even if they don’t
apply the concept at all), any changes made to the process must be reflected on the team’s standard
format Process Maps. Because of this, Process Maps must be printed out in large format (usually using a
plotter/drawing printer) and housed in the Team Room for easy access. The team can then pull out the
applicable PMaps (Level 4 especially) and mark them up during troubleshooting and problem solving
discussions. In this way, the Process Maps become living documents and tend to show a lot of use
throughout the year.
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Examples of various ways both traditional Process Maps and the concept of Process Mapping have been used by
teams for problem solving are shown below.
At least once a year, a team member should be assigned to update the digital Process Map versions to reflect all
of the accumulated mark-ups. The newly updated version should then be re-printed and replace the marked-up
version in the Team Room. In this way, both the printed working copies, and the reference digital versions are
kept up to date.
Based on the above ongoing use of the Process Mapping concept, teams will refine their baseline Process Maps
over time, gradually incorporating the applicable tools and templates, and therefore showing the connections
into the Process, from all seven of the VPO Pillars as their process continually evolves.
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To learn more about Process Mapping, please go to the Global VPO Portal and the following VPO Documents:
Process Mapping Template VPO.MGT.5.4.2 Process Map template.xlsx
Critical Task Matrix Template VPO.MGT.5.4.3 Criticality Matrix.xlsx
Process Mapping Training VPO.MGT.5.2.1 Process Mapping Training.pptx
5.4 Product & Process Indicators (PPI)
Product and Process Indicators measure the outputs of a process. They

What are are the starting point of key measurements for process performance and
they? directly link to results.
How does Verifying that Key Performance Indicators (KPIs) are achieved during and at
it create the end of a process helps to deliver predictable outputs or products and
value? determines if client/customer requirements have been met (as defined in
an SLA).
The Product & Process Indicators Block is focused on the definition of measurements, which can be considered
KPIs or PIs depending on the scope and point of view considered. These definitions are the outputs of this block.
The check of these indicators (actuals vs targets) is part of the Routine and Performance Review Process Blocks
discussed later.
There are two types of indicators:
1. Product or Process Indicator (PI): These measure parameters during or at the end of activities and tasks
within the process that are critical to the final outcome and are directly controllable. These are generally
known as “leading indicators” in the context of the KPIs they are connected to because they are
predictors of the final outputs to the clients.
2. Key Performance Indicator (KPI): Measure of the final process outputs (product-related) to determine if
customer/client requirements have been met. Also known as “lagging indicators” because they usually
are not directly controllable.
A KPI should be established for each critical product after establishing: 1) what is critical to the client by the
development of a Business Description, and, 2) what is critical to the process through Process Mapping to ensure
the client’s expectations are met. If an SLA is created for a critical product, this KPI should be included as the
measurement means to track and monitor if the SLA conditions have been met. PIs (Product or Process
Indicators) that can be used as leading indicators of performance for each KPI should then be defined, followed
by the Short Interval Control levers (SICs) for those PIs. This break down of a KPI into its component PIs and their
SIC levers can be visualized in a KPI Tree. The PIs should also be incorporated within the related Process Maps at
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the Activity and Task levels. SIC levers can be incorporated into Standard Operating Procedures (SOPs) and
Reaction Plans.
The following diagram shows the connection between the Business Description, Process Maps and starts the
creation of KPI Trees.
The following diagram strips away the Business Description and Process Map items from the initial diagram
above, leaving behind the full KPI Tree by itself.
A KPI Tree is a visualization of the concept of cascading indicators. If we only measure KPIs in our business, we
are measuring results when our products are already finished. This is too late to make corrections, and would
result in a lot of waste and re-work. Therefore, we measure interim product characteristics, as well as variables
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within our processes to prevent issues with our final products. In this manner, we control the parts to control the
whole and avoid unwanted surprises.
In its simplest form, a KPI Tree has three levels: a KPI breaks down into PIs, which can be controlled by
manipulating Short Interval Control (SIC) levers. In reality, however, most of our KPIs are more complicated and
are broken down into at least two levels of PIs. Generally, less leading Product Indicators are defined directly
from the KPI itself, and then broken down further into more leading Process Indicators and their related Short
Interval Control levers impacting them.
Understanding the difference between Product Indicators and Process Indicators, as well as their SIC levers, is
critical to building effective performance tracking routines at all levels within a site.
• Product Indicators measure a product characteristic such as color, Plato, alcohol content, etc., and tends
to be more lagging, meaning it takes time before a Product Indicator changes.
• Process Indicators measure a process condition such as temperature, weight, flow, pressure, time, etc,
and tend to more leading, meaning we can see changes in them almost instantly.
SIC levers are generally associated with Process Indicators, though there can be examples of connecting them
directly to a Product Indicator. The SIC lever is the parameter that can be adusted, one direction or another, to
cause the Process Indicator to change. For example, temperature (the Process Indicator) will increase if the steam
valve is opened further (SIC lever). A generic example of a more typical KPI Tree, composed of more lagging
Product Indicators, broken into more leading Process Indicators and their related SIC levers is shown below.
Below is a specific example for a portion of a PhysChem KPI Tree, in this case for part of the Brewhouse process.
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The concept of cascading indicators can be taken a step further in that some of our standard KPIs are actually
leading indicators for other KPIs. Some examples are noted below:
• Micro Index, PhysChem and Beer Consistency Index (BCI) are all leading indicators for Sensory (Brewery
Support Sensory Index, BSSI) and Consumer Complaints.
• Line Efficiency (LEF) is a leading indicator for Gross Line Yield (GLY).
• Total Technical Productivity (TTP) and Plant Network Productivity (PNP) are leading indicators for the
labor portion of VILC (Variable Industrial and Logistics Cost).
The KPIs for our beverage and verticalized businesses are well-defined and standardized by the Global KPI
Owners. The definitions and calculation methods for these Global KPIs can be found in the Anaplan KPI reporting
system, owned by Global PPM and the GCC. However, PIs may be defined at a Zone or site level. If this is the
case, each indicator must have a name, a clear calculation method, an owner, a frequency of measurement, unit
of measurement, and source where the data will come from.
KPI Trees should be developed for at least the monthly KPIs required by Global and Zone to be tracked and
monitored at the facility level as part of its Performance Review Process. Similar to Process Maps, KPI Trees can
then be used for training and problem solving purposes during the team’s routine. In the case of problem solving,
the reference KPI Tree may be consulted, but the team may find equal value in creating a new version of a KPI
Tree from a different perspective. Just like initial Process Mapping efforts, the KPI Trees created by a team during
the VPO implementation phase are a baseline, but may not always contain the level of detail that can be added
subsequently during problem solving.
For example, a Total Extract Loss (TEL) KPI Tree may have been created with branches for Warm Block Loss, Cold
Block Loss and Packaging Block Loss, with branches off of each for related PIs and SICs. However, no branch was
initially included, nor was anything mentioned within the first three branches about data accuracy. This could be
a whole new branch the team adds to its TEL KPI Tree during a problem solving effort, especially if the same
effort also included Process Mapping the flow of the raw data inputs that go into the KPI’s calculation.
In their ideal state, KPI Trees are detailed enough to aid with PI selection for the team’s Operator positions at
their Operator Workstations. This means not only that the detail is in place, but that the KPI Trees contain all of
the PIs that can truly be controlled and acted upon by the Operators with autonomy. PIs outside the control of
Operators must of course be included as well, but the value KPI Trees can provide will be much higher when the
link to the Operator Workstations is strong.
Similar to Process Maps, KPI Trees can be printed and made available in the Team Room so that the team can
mark them up as needed. The digital versions should be updated to reflect any mark-ups on at least an annual
basis.
For a KPI Tree template, please go to the Global VPO Portal and the following VPO Document:
KPI Tree Template VPO.MGT.5.5.2 KPI Tree.xlsx
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5.5 Standards Creation and Execution (SCE)
What is Standardization means to establish, implement and check for compliance

it? to standard procedures.
How does It ensures predictable results, that all activities are performed in the best
it create and right way by all those involved, guarantees knowledge retention and
value? facilitates training.
Once the critical products of the area are defined (in the Business Description) and the processes that deliver
these products are mapped by defining the Sub-processes, Activities and Tasks (Process Mapping), it is important
to identify the critical tasks in the process using a critical task matrix, as mentioned in the Process Mapping
block. This helps the team prioritize which tasks to standardize before others, and defines the “What we do.”
Each critical task must have a Standard Operating Elements of a Standard Operating
Procedure (SOP) to define the “How to do,” and the output Procedure
of each critical task should have a PI connected to it to
• Objective
ensure the inputs to the next activity or task in the process.
SOPs must be created at the level at which they are going to • Safety and environment instructions
be used. They should be documented using a standard when applicable
template, and care must be taken so as not to duplicate • Tools and resources needed
SOPs that already exist elsewhere at the same level. • Reference to Process Indicators
• Roles and responsibilities
Standard Work Instructions (SWIs) are a specific type of SOP
for maintenance tasks. The VPO Maintenance Pillar requires • Target audience
SWIs to be created for preventive maintenance plans • Procedure Steps
related to critical equipment first, and eventually for all • Description of tasks/steps
equipment. The elements of an SOP shown at right are
• Actions in case of abnormalities
applicable to SWIs as well.
• Creator and approver
Reviewing and Improving SOPs and SWIs • Responsible
It’s important to periodically review SOPs and SWIs to
update them with any needed changes. Generally, SOPs
and SWIs are reviewed with the people who execute
the task or whenever there is a change in the process.
Many times, no changes are needed. However, the
periodic check ensures ongoing compliance and that the
procedure still reflects the current working conditions.
Confirming that employees follow company standards is a vital part of the management routine, as people tend
to drift away from standard compliance over time when it is not reinforced. At ABI, this is done using an
Operational Work Diagnosis (OWD) to check whether operators and technicians are executing their tasks
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according to established standardized procedures. The Global template for performing an OWD is designed to
check for multiple items:
1) Adherence to the SOP by the person performing the task

2) Effectiveness of the SOP, when followed correctly, to obtain the desired outcomes as efficiently as
possible in terms of time, effort, etc.
3) Identification of better ways to execute to achieve the desired outcomes.
The VPO Management Pillar’s OWD template has been merged with the Enhanced Quality OWD Form from the
Quality Methods Block of the VPO Quality Pillar. This template is built into the Acadia Dynamic SOP System, and
an excel format is also available on the Global VPO Portal for any sites who have not yet implemented Acadia.
This template should be used for all OWDs, not just those specified in the Quality Pillar.
Having a large number of SOPs and SWIs does not necessarily mean good management. SOPs should be
established for all critical tasks identified during Process Mapping. SWIs should be developed for the preventive
maintenance plans for all critical equipment. Remember that an SOP or SWI is a living document that requires
review of its suitability, need for update, as well as a routine compliance check. SOPs and SWIs must be
controlled documents and have a formal review and approval process. In order to avoid duplication and
unnecessary confusion, it is essential to check for existing procedures before setting up a new one.
Standards Management
ABI is in the process of implementing the Acadia dynamic SOP system in most zones (for APAC, refer to the Zone
Digital VPO Tool). Acadia has many advantageous capabilities for a site’s standardization cycle. However, based
on the phased nature of the implementation, each Zone must provide direction to its sites during the transition
to manage existing standards in terms of document management and version control. As a minimum
requirement, SOPs and SWIs must:
• Be readily available for user reference at their work place

• Be updated and formally approved
• Have an owner and a clear control system to ensure proper coding and numbering, availability of the
latest version, regular reviews, and retention of records of SOP/SWI training and checks for compliance
(OWD)
Once Acadia is implemented in a given facility, the Zone and site teams must work through a strong Management
of Change (MOC) and training process to educate all employees and drive usage of its full capabilities. Failure to
leverage all aspects of Acadia or APAC’s Zone Digital VPO Tool for Standards Management is unacceptable.
Change Management Requirements

Any employee who is assigned to execute a specific job must be trained on all of the critical tasks associated with
that position. The department should maintain documentation to ensure that this requirement is adhered to.
SOPs for all critical tasks must be reviewed yearly using an OWD. Non-critical SOPs may be reviewed at a lower
frequency, and do not necessarily need to be reviewed via an OWD. Re-training of all employees who utilize a
critical SOP must take place within 30 days of a change or update to the standard. SWIs for at least the critical A
& B equipment in a department should be reviewed using OWDs. Consult the Maintenance Pillar for further
review requirements for SWIs.
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Each department within a facility should have a prioritized calendar to execute the required annual review of
critical tasks via OWDs. To facilitate this process, it is recommended that all leaders within a facility should
perform a minimum of 1 OWD per week as part of his or her Manager/Supervisor Checklist requirements.
Operators and/or Technicians who are qualified as trainers, are subject matter experts for certain process areas
or are part of problem solving efforts can also execute OWDs for critical SOPs and SWIs.
Aside from the yearly review requirement, an OWD should be utilized to:
• Verify training effectiveness and trainee comprehension

• Evaluate SOP quality and execution related to an underperforming KPI or PI
• Help determine the root cause of a problem, whether triggered for a 5-Why or Abnormality Report, or as
part of a PDCA or ITF effort.
When an OWD is executed for any of the above ad hoc reasons, that also fulfils the annual review requirement
for that critical SOP or SWI. Most of a team’s critical SOPs and SWIs will likely be reviewed with an OWD for one
of these ad hoc reasons. The team’s OWD calendar will most likely serve as a safety net to ensure any remaining
critical SOPs and SWIs are reviewed.
One Point Lessons

A One Point Lesson (OPL) is a one-page, simple description of a task, usually including pictures to illustrate how to
complete the task. There are two uses for an OPL:
1. OPLs are created for simple, non-critical tasks that are unlikely to change, or to emphasize one part of a
bigger process at the point of execution. Examples: how to power on or shutdown a piece of equipment
in the correct sequence, how to use a rolling staircase-type ladder, which settings to use on a machine for
a given brand/package. In this case, the OPL may or may not be associated with a more detailed SOP.
2. An OPL is created to highlight a change made to an SOP. This OPL is then used to communicate the
change and re-train all affected employees. The OPL is also used as the sign-off tool to document
acknowledgement of the change by the operators. In this case, the OPL is associated with an SOP.
Note: Each zone must standardize on how it will use the OPL concept. Should a
zone choose to utilize OPLs as a change communication tool (as outlined in #2
above), then the zone must ensure that facilities are updating the actual SOP with
the change, and not just creating the OPL. Also, the OPL must be retired within 30
days of its creation, which aligns with the requirement to re-train all employees on
an SOP change within the same timeframe.
To access templates for the tools in the Standards Creation and Execution block, please go to the Global VPO
Portal and the following VPO Documents:
SOP Template (Acadia-conversion-friendly) VPO.MGT.5.6.2 SOP Template v1.docx
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OWD Template (newly merged with the Quality VPO.MGT.5.6.3 OWD Template v5.xlsx
Pillar’s Enhanced Quality OWD Form)
One Point Lesson Template VPO.MGT.5.6.4 OPL Template v3.xlsx
5.6 Routine Review Process (RRP)

The Routine Review Process checks the effectiveness of a routine on a
What shiftly, daily and weekly basis, defines actions to take when results are not
is it? acceptable, and establishes plans and standards to follow once results are
achieved.
How does
This process ensures ABI sustains and improves business results in the most
it create
value? effective, easy and smart way.
The Routine Review Process is part of ABI’s Management Control Reporting System (MCRS), which provides a
systematic way to check results. A carefully planned and executed MCRS can reduce the volume of meetings, free
up time for employees and generally improve productivity.
5.6.1 MCRS Concept
The Management Control and Reporting System encompasses:

• The Routine Review Process (RRP), a part of Manage to Sustain (MTS) layer in the VPO Management
Pillar
• The Performance Review Process (PRP), a part of Manage to Improve (MTI) layer in the VPO
Management Pillar
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Both are essential to make sure the company, respectively, sustains and improves results in the most simple,
effective and smart way, checking their effectiveness and acting on them in case of underperformance.
5.6.2 MCRS Benefits
One of the major benefits of the MCRS is to prevent micromanaging, because:

• Its structure ensures that all the important results measured are being managed at the appropriate level
and that everything is being done to check them and act in a timely manner to sustain them according to
plan.
• It manages the results achievement, reviewing the results level by level through disciplined checking,
monitoring and acting upon deviations
• It establishes a clear flow of information between levels—because the enterprise obtains accurate
information regarding the results, the right decision can be made to improve or sustain performance,
depending on the case
Therefore, due to the MCRS structure (each level links to the next), each level does not second guess or do the
work of its direct reports.
This creates an environment of trust because a manager knows the work that needs to be done by direct reports
is being effectively done. Micromanaging therefore does not become part of the manager’s routine. Exception:
when something is very critical or has a big impact on the result.
5.6.3 MCRS Structure
In order to get the full benefits from the MCRS, the right meetings must be in place to:
• Prompt the control cycle: Routine Review Process – weekly, daily and shiftly
• Seek improvement of the current results: Performance Review Process – monthly, quarterly and yearly
Routine MCRS and Performance MCRS and their respective frequencies can be identified below:
The following is a general overview of how the PDCA and SDCA cycles are applied in the facilities in the MCRS
structure at different levels & frequencies in an organization, depending on the objective:
• Routine Review Process and the SDCA cycle are applied:
a) When a target is cascaded and delegated down the levels of an organization to the lowest level and
an SDCA cycle is applied;
b) When the results of the shift activity can be consolidated into daily results and the daily results into
weekly for the area and the SDCA cycle is applied to sustain the results.
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• Performance Review Process and the PDCA cycle are performed:

a) When weekly results are consolidated into monthly results;
b) When the plant manager receives information and reviews results on a monthly basis and the PDCA
cycle is performed.
It is important that the right people receive the right information at the right time for the PDCA and SDCA cycles
to work. The right information includes:
• Improvement (PDCA) items: KPI/PI results (monthly and YTD) updated for an area/ business, action
plans per KPI updated (status), deviation analysis and Gap Analysis (GapA) reports available to be
presented
• Sustaining (SDCA) items: KPI/PI results (week, day and shift) updated, critical standards updated, OWD
findings managed on a regular basis and standard results (parameters) followed up on with updated
information available to be presented
The Routine Review Process (RRP) includes the sustaining items noted above. This process drives the Check and
Act components of the SDCA Cycle and involves:
• Check – comparing between KPI or PI planned values and actual results

• Act – conducting root cause analysis whenever the result is different from what was expected
(performance gap) and implementing corrective actions to restore the planned level of performance and
close the gap.
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Benefits of the Routine Review Process
• Ensures that all KPIs are being measured and managed at the right level
• Allows corrective actions in a timely manner
• Establishes a clear flow of information between levels in the organization
• Creates an environment of trust since it encourages employees to report any
deviations to the rest of the team
• Reinforces the culture of “facing the problems” and emphasizes discipline
In order for the right people to receive the right information at the right time, each facility should develop its
MCRS map to visualize the flow of information throughout the facility. The following figure shows a simplified
MCRS map for a facility. Only the core meetings that define the backbone of the information flow are shown in
this example. More detailed versions that include all of the reoccurring meetings should be put in place for a
facility.
5.6.4 KPI & PI Dashboards

Each of the core reoccurring meetings on the MCRS Map shown above should have a KPI/PI Dashboard. To track
and monitor results, we follow the MCRS process by first breaking down the annual forecast to establish
quarterly, monthly, weekly, daily and shift production plans. Dashboards are built with the KPIs and PIs that were
identified during Process Mapping and defined in the Product & Process Indicators Block. It is important to
include only the KPIs and PIs that are controlled at each level of the process for tracking at the appropriate
frequency. As a guideline, each level should be aligned with the levels of the process maps and tracked and
monitored at the following frequencies:
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Process Map Level Process Level Measurement Type Frequency
1 Business KPIs Monthly
2 Process KPIs & PIs Weekly
3 Activity Some KPIs, mostly PIs Daily
4 Task PIs Every Shift
The minimum KPIs and PIs to be tracked monthly at the facility and department level have been defined by
Global for both Beverage and Verticalized operations. These minimums have been selected to ensure all
performance aspects/categories of the business for a given facility or department are covered on the dashboard:
• Safety
• Quality
• People
• Better World
• Efficiency
• Loss
• Productivity
• Maintenance
• Cost
These same aspects should always be considered when selecting KPIs or PIs for the remaining dashboards – some
may be combined as the frequency increases (e.g. Efficiency and Productivity or Loss as a leading driver of Cost).
Additionally, Global guidelines have been established within the department-specific Team Room (section 5.6.9)
and Operator Workstation (section 5.6.7) standards for the categories of PIs that must be tracked in those two
locations on a shiftly and/or daily basis. It is the responsibility of the Zone VPO Director to coordinate with the
Zone functional groups to provide further guidance on specific minimum requirements for the KPI & PI dashboard
items for the departments within the facilities. However, it is ultimately the site’s responsibility to ensure the
final dashboards in use in the facility are aligned to its strategy, critical products, Process Maps, KPI Trees and
current performance.
Especially for the monthly and weekly dashboards, each Zone may choose to allow a small number (~5-10) of KPIs
or PIs to be added to the Zone minimum requirements by a facility or department to its dashboards. As a general
rule, a facility should not be tracking more than 30-35 items on its monthly dashboards. There are exceptions to
this guideline, but too many items on a dashboard generally leads to poor control of the indicators.
For the shiftly/daily dashboards, the individual teams must prioritize the specific items to include based on
current performance, within the Global performance category guidelines. For example, a Packaging Shift
Handover (SHO)/Daily Dashboard in a line team room must include Safety, Quality, Performance, Loss,
Maintenance and E&F PIs. Some of the specific PIs within those categories are mandatory (e.g. LEF), but others
should be selected by the team based on its priorities and current performance (e.g. including Packaging
PhysChem vs Packaging Micro Index or both). With this in mind, the items on a team’s Shiftly/Daily Dashboard
will likely be fairly dynamic throughout the year, with some PIs switched out for new ones, while others may
always be tracked.
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Finally, it is critical to remember that all of the dashboards are connected to each other based on the KPI Tree
concept outlined in the Product & Process Indicators block, section 5.4. Shift performance rolls up to drive Daily
performance, which rolls up in turn to drive Weekly performance, which obviously ultimately rolls up to drive
Monthly performance. Ideally, the key (most impactful) leading PIs are selected for Shiftly/Daily Dashboards,
such that keeping those in control enables target achievement for the KPIs populated on the more lagging
Weekly/Monthly Dashboards. This alignment can be visualized by layering the MCRS frequency onto a KPI Tree,
as shown below.
Because of these connections, if you look at a SHO/Daily Dashboard, and most of the PIs are green, or in control,
you would expect to see their related KPIs are also green on the Weekly/Monthly Dashboards. In an even better
scenario, the targets for the PIs would be stretched past their budget/target values to futher ensure KPI
achievement on a monthly and annual basis. In this case, you might see a lot of red PIs (i.e. not achieving the
stretch value) on the SHO/Daily Dashboard, but still see green on the Weekly or Monthly Dashboards for their
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related KPIs. If you do this comparison between the Dashboards and see a lot of green on the SHO/Daily, but
mostly red on the Weekly/Monthly, it should flag re-evaluation of the items selected for each Dashboard, as well
as their target values. An example of this incorrect connection between the SHO/Daily Dashboard with mostly
green performance and a red Monthly Dashboard is shown below.
5.6.5 TORs, Action Logs & Routine Agendas
Each reoccurring meeting is required to have a Terms of Reference (TOR) defining the meeting objective,
attendees, timing, expected inputs and outputs, ground rules and the standard agenda to ensure that the correct
information is efficiently reviewed, and actions are created to close gaps. The Zone functions are responsible for
standardizing the TORs for their respective site departments, ensuring consistency across all sites, but also
allowing some flexibility for specific local situations. Refer to the Global TOR templates in the TOR file in the links
table at the end of section 5.6.9 for examples specific to each department in a site. A site’s living TORs should be
housed within a digital tool such as InterAction Log or APAC’s Digital VPO Tool. Regardless of the format, the local
TORs can be customized with hyperlinks to resources needed during the individual meetings to increase meeting
efficiency.
All actions created during a meeting must be captured in an Action Log to ensure visibility to all attendees, as well
as accountability for an action owner. The entire team can then see who is supposed to be doing what by when
to ensure follow-up happens. An action should have one owner assigned to it so that accountability is not lost
between multiple people. A due date must be assigned that is agreed to by the action owner, as well as aligned
to the business needs in terms of timeliness. Due dates should not be changed in the event a person does not
complete an item. This undermines the accountability purpose of the Action Log—the action is instead marked as
Delayed. The Action Log can be a digital tool such as InterAction Log or APAC’s Digital VPO Tool. Actions already
taken do not need to be added to the Action Log. At the beginning of each meeting occurrence, those actions
that are due on that date or delayed should be reviewed to ensure the whole team has visibility into their
completion (or lack thereof). Actions should not be completed outside of a meeting for this reason—this is the
purpose of utilizing the Request to Close status available in InterAction Log. As part of each meeting attendee’s
preparation responsibilities, completed actions should be marked as Request to Close to enable an efficient
review at the beginning of the meeting. For additional meeting efficiency purposes, the entire Action Log should
not be reviewed—only those items that are due or delayed. At the end of the meeting, new actions should be
reviewed to ensure they were captured correctly, the owner is clear on what to do to complete an assigned
action and the due date is agreed to by both the owner and the team.
Once KPI/PI Dashboards and standardized TORs have been created for all reoccurring meetings in a facility, the
Routine Agenda for each leader must be defined. The Routine Agenda is one of the most critical tools in the
Management Pillar, and must be adhered to with rigid discipline. A Routine Agenda lays out, in calendar format,
which meetings a leader must attend because he/she owns them, as well as which meetings, and at what
frequency, he or she must attend to check the effectiveness and efficiency of the MCRS at lower levels in the
facility. Finally, the Routine Agenda allows for adequate shop floor time for each leader to observe, check and
coach his or her team to sustain and improve performance.
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The Global minimum Routine Agenda has been defined for the Plant Manager position, regardless of facility type,
and is shown in the following figure.
This Routine Agenda was developed to ensure at least 40% of a Plant Manager’s time can be spent at the shop
floor. The owner of the Routine Agenda for all positions in the Zone and its facilities is the Zone VPO Director. He
or she must coordinate with the Zone functional groups to adjust the Global Plant Manager Routine Agenda for
local needs, but only sparingly. Furthermore, he or she must work with the Zone functional groups to define the
Zone standard Routine Agendas for all remaining leader positions in the facilities. Once the Zone standard
Routine Agendas have been set, they must be standardized across all facilities in the Zone. The percentage of
shop floor time allowed by each Routine Agenda should increase for each position as it gets closer to the shop
floor. As a general guideline, the Routine Agenda for a front-line supervisor should be aligned to enable 70% of
his or her time to be spent on the shop floor.
5.6.6 Checklists
Following the creation of the Routine Agendas, each position in the facility must also have a Checklist. A Checklist
for leader positions includes all of the items a person must do in his or her role on a daily, weekly, monthly,
quarterly and annual basis. Leader position checklists should be housed in InterAction Log or the APAC Digital
VPO Tool. As a good practice to ensure leaders are front line-focused, their checklists should be periodically
reviewed by Operators and Technicians for feedback and input to improve the content.
Operators and Technicians should also have Checklists. Operator/Technician Checklists can follow one of two
formats:
• A task-based checklist outlining production, cleaning, inspection, autonomous operations and
performance reporting items that must be done each shift.
• A specification or operating parameter-based checklist that enables the Operator to document necessary
quality and production data throughout the shift.
Operator/Technician Checklists can be documented on paper in the form of logbooks, on visual boards or in an
electronic system like InterAction Log or the APAC Digital VPO Tool. Regardless of the format, the
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Operator/Technician Checklist must be accessible from the Operator Workstation (see section 5.6.7 for more
details).
Checklist execution at all levels should be monitored on a routine basis to ensure compliance, but more
importantly, the effectiveness of the checklist in supporting an individual’s job performance. Where problem
solving efforts uncover issues with task execution at any level within the team, updates to position Checklists
should be made to ensure loop closure of the problem. Additionally, creation of specific Checklists for specialized
tasks or scenarios, especially if performed infrequently or by multiple people can be a good way to capture
learnings from problems.
5.6.7 Operator Workstation
The Operator Workstation (OWS) is a deliberately designed space within or adjacent to the immediate work area
of an Operator. The concept is the same for the Technician Workstation as it relates to Maintenance Technicians.
The Workstation includes all of the safety checks/tools, process control, performance measurement, problem
solving tools, SOPs, Checklists, physical tools and quality equipment that an Operator or Technician needs to
perform his/her role effectively. The flow from each component to the next within the Workstation is critical to
ensure Operators and Technicians have all the proper conditions and information to perform their jobs
effectively. When designed with substantial Operator and Technician involvement and implemented correctly,
the Operator and Technician Workstations facilitate strong engagement to enhance performance.
Specific standards have been developed for each applicable department within both brewery/soft drink and
vertical operations. Every position routinely staffed in a department must have an Operator Workstation. This
means all staffed equipment centers on a packaging line in a BOP or VOP, and all positions staffed to directly run
the process in Brewing, Soft Drinks, Malting production areas, Quality, Utilities, the BTS and Logistics. Please
consult the specific standards (listed in the links table following section 5.6.9) for full details on how the Operator
Workstation and Technician Workstation concepts should be implemented in your department and area.
Safety Checks/Tools
The Workstation should contain safety information and tools specific to the job tasks the Operator or Technician
performs on a routine basis. Examples include the specific hazards that may be encountered while executing the
role, specific machine/area safety checklists, routinely used safety equipment like SAM/LOTO devices, safety
harnesses or specialty PPE, as well as a space (or digital mechanism) to enter and communicate Safety Hazard or
Safety Incident Observations (SHOs/SIOs). The SHO/SIO piece is particularly important to support the 1-to-1 shift
handover conversation between the outgoing and incoming Operators or Technicians. If applicable for the
specific job, the Workstation may also include Environment-specific items like the job-specific aspects and
impacts, recycling containers or routinely used Environment checklists.
Process Control and Performance Measurement Components

The critical PIs the Operator must not only control, but track should be displayed as individual Short Interval
Control Charts at the Operator Workstation—whether in a digital or manual format. Please refer to section 5.6.8
for more information about Short Interval Control. In general, these critical PIs should be more leading Process
Indicators and fall within the performance categories of Quality, Loss, or Production/Volume. Consult the specific
OWS standard for a department or VOP category for additional information.
Brewing, Soft Drinks, Malting, brewery/soft drink Packaging departments, vertical Packaging production
departments and Utilities each have recommended SIC categories for certain Operator Workstations in those
departments to align with the 100% Mindset concept. The 100% Mindset aligns with ABI’s Principle #5…”We are
never completely satisfied with our results, which are the fuel of our company.” In the context of our Supply
operations, this means that we are constantly striving for processes and equipment to run at 100% of their
capability. In Brewing, Soft Drinks, Malting and Utilities departments, this translates to consistent process control
and control systems that do not fail, give our Operators nuisance alarms or require manual intervention to
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ensure they perform the automated tasks correctly. On our packaging lines, whether in a brewery, soft drink or
vertical packaging facility, the 100% Mindset translates to machines that don’t stop.
The following are the 100% Mindset PI recommendations:

• Brewing, Soft Drinks, Malting & Utilities – a PI related to process control/consistency (e.g. BCI-related) or
Control System Health should be tracked via an SIC chart at all control room Operator Workstations.
Examples include occurences of a specific alarm or group of alarms (e.g. valve failures or bright beer
release alarms), sequencer faults, devices in manual or manual interventions.
• Brewery/Soft Drink packaging and vertical packaging production lines – machine uptime must be tracked
via an SIC chart at all staffed equipment center Operator Workstations on the line. Uptime is for that
machine only, irrespective of its impact to the V-curve machine on the line, and does not include impacts
external to that machine. Any upstream issues causing idle time on the machine, or downstream
problems causing a discharge back-up on the machine do not count against uptime. Uptime can be
calculated for the SIC chart as a percentage, or simply tracked as the number of running minutes each
hour. From there, the same Operator Workstations should be tracking a Top Machine Issue PI related to
the Uptime PI. For example, a packer is running around 70% uptime, caused mostly by misfed
cartons/crates. The Packer Operator tracks hourly Packer Uptime on one SIC chart and how many misfed
cartons/crates she gets per hour. Utilities operations may also choose the Uptime and Top Machine
Issue PI approach for certain areas of the department, or consider 100% efficiency PIs for equipment
such as boilers, air compressors and ammonia compressors.
• Note: there may be some cases where there are no control system issues, or a machine has been
running at 100% Uptime for a very long time. In these situations, the team should look to other PI
categories to expand the 100% Mindset to based on the specific performance of that process area or
machine.
• Other potential categories from which PIs can be selected are Safety, losses or energy & fluids. Good
examples of Safety PIs leading to dramatic improvements in safety behaviors include tracking of machine
access occurrences, jams, exploding bottles or leaks leading to slip hazards. KPI Trees are particularly
helpful to identify leading, operator-controllable PIs for losses and energy & fluids KPIs.
For more on how the 100% Mindset PIs tracked at the Operator Workstations connect to the Team Room,
Technician Workstation and routine Problem Solving, see section 6.3.
For Technicians, the PIs tracked at the Technician Workstation are closely related to those tracked by the
Operators in the same area or working on the same machine, but the Technician is tracking them from a
reliability point of view, and therefore over a longer timeframe (typically on a weekly basis, versus the
hourly/shiftly tracking done by the Operator). The specific Workstation standards outline requirements and
recommendations for Technician Workstation PIs, but they all generally fall into three performance categories:
Process Performance, Equipment Reliability/Uptime and Usage/Waste. The Technician Workstation also tracks
Maintenance backlog health for the equipment he/she is responsible for, as well as the medium term
maintenance plan.
Especially for the 100% Mindset PIs outlined above, the applicable Technician will likely have a weekly version at
his/her Technician Workstation. As the Technician develops actions to improve the reliability of the equipment or
process, he or she must do so in close communication with the Operators running that equipment or process.
Routines must be in place for the Technician to visit the Operator Workstation and discuss the Top Machine Issue
or other problems driving less than 100% Uptime, for example, and ensure his/her actions are aligned with the
Operators’ to resolve the root causes of the issues. Similarly, there should be a routine in place for Operators to
visit the Technician Workstation, see the longer term reliability performance of their equipment/process and
discuss medium or long term actions planned to improve performance.
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Problem Solving Components

Each SIC Chart displayed in the Operator Workstation should have defined triggers aligned with the yellow and
red sections of the chart. If a PI is in the yellow area, a reaction plan should be available for the Operator to
execute to return the PI to the green. SIC levers defined in the related KPI Trees should be included in reaction
plans in an order that puts the most likely causative SIC lever to check first. If a PI is in the red area and the
reaction plan was not successful, this situation should trigger a 5-Why analysis to be completed by the Operator
once the symptom is found, resolved and the PI comes back into control. Please refer to the Problem Solving
Block for more detail on the 5-Why tool. For Technicians, there may be specific triggers defined for them, but in
many cases, they will be involved with Operators to troubleshoot problems when the Operator triggers are hit.
Remaining Workstation Components

Following the performance and problem solving sections of the Operator Workstations, SOPs and the Operator
Checklist(s) should be readily available to ensure the Operator knows what he or she has to do. Technicians
should have easy access to Standard Work Instructions (SWIs), the Work Order System or applicable
Computerized Maintenance Management System (CMMS, e.g. SAP), Preventive Maintenance plans, etc.
All physical tools needed on a routine basis for operating, cleaning, inspecting, lubricating or changing over the
equipment within the Operator’s responsibility should be organized according to 5S principles and immediately
available in the Operator Workstation. Finally, any tools or equipment needed for quality checks should also be
placed in the Operator Workstation.
For Technicians, physical tool proximity to the Workstation will depend on the Technician’s job responsibilities. In
many cases, personal Technician toolboxes and Maintenance Shop common tool storage locations will be more
efficient storage options.
Visual Boards or clearly segmented workbench space should be utilized as much as possible for the Operator and
Technician Workstations so that the flow within them is very efficient for the users. Some items can be available
for access on a computer if needed (e.g. SOPs/SWIs and reaction plans), but these should be kept to a minimum.
The figure below shows the optimal flow of an Operator Workstation.
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5.6.8 Short Interval Control (SIC)

Short Interval Control methodology is used to track and monitor the performance of a PI at the shortest
possible/feasible time interval to improve or sustain its performance. It is typically applied by employees on the
front line of a process, and involves using and SIC Chart sectioned into green, yellow and red levels to track
performance, deviations, and actions taken to resolve specific issues. Note that SIC Charts are not the same as
the SIC levers described as part of a KPI Tree. In this case, an SIC Chart is used to plot the performance of a PI
(whether it is a Product or a Process Indicator). SIC levers are then used by the Operator or Technician to affect
the PI and bring it back into the green if it deviates. SIC Charts can be used in two ways:
• As a result of performance gaps, the root cause analysis may determine that it is not possible to see
process deviations at the current measurement frequency of the KPIs or PIs. Therefore, it is necessary to
measure the PI at a higher frequency in order react to process deviations prior to them having an impact
on the KPIs. In this case, team members review and chart performance data on a short-term basis for
critical processes. Once the process deviations have been eliminated, the PI is no longer tracked with an
SIC Chart.
• An SIC Chart can also be used to sustain a process or validate an improvement. In this case, it may be in
place permanently due to its criticality.
Correct set-up of an SIC chart is a critical factor for its success as a performance management tool. The
measurement frequency of the PI must be decided based on the impact an out-of-specification deviation has.
Most PIs are tracked hourly or by batch on an SIC chart, but this is entirely dependent on the specific PI being
tracked. However, a PI should always be tracked more than once a shift. If it can’t be, the PI is likely too lagging
and a more leading Process Indicator should be chosen to track instead.
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The orientation of and range for the green, yellow and red sections must also be determined based on the
specific PI. For some PIs, the green section will be at the bottom of the chart (i.e. lower is better). For others, the
green section will be at the top of the chart (i.e. higher is better). In other cases, the green section may be in the
middle of the chart, as both high and low values outside of certain values are considered out of specification. The
range of the Y-axis and limits for the green and yellow sections must align with the Problem Solving triggers for
the Operator. This will be discussed further in the trigger setting section of the Problem Solving block (section
6.3). In some cases, as a way to apply the 100% Mindset, teams may choose to eliminate the yellow range on the
SIC Chart altogether. This is a good practice for high-performing processes with very capable teams. It is not
recommended for poor-performing processes or when the teams are inexperienced or lack strong problem
solving capabilities. If improperly applied, removing the yellow range can overwhelm an already struggling team.
Below is an example of an SIC chart tracking TPOs on the Filler of a brewery packaging line.
Good Practice: a typical SIC Chart is set up with 24 hours along the x-axis and is
often put in a sleeve so that dry-erase markers can be used to update it.
Either extend the range or embed a routine where the Operators do not erase
the entire sheet at the start of a new day. For example, erase the current shift’s
data only such that some history is preserved to aid with shift pass-on and
conversations with Technicians, SME Technicians, Supervisors, etc.
5.6.9 Visualization (Visual Boards & Team Rooms)
Visualization
There are five main themes the visual content falls under in our Supply facilities:
• Local facility pride (including brands/products produced on site)
• Company pride (both ABI and the applicable subsidiary)
• Dream-People-Culture and the ABI 10 Principles
• Passion for Beer and Better World (including the 10 Brewing Principles and Sustainability goals)
• VPO and Performance Management, including Safety
Specific content from the first four themes should be integrated together into a cohesive, organized plan for the
visualization outside of Operator Workstations, control rooms and Team Rooms. One theme of the first four
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may be a focus in a certain area vs the others, but all of them should be represented in the site. For example, the
canteen area may focus on local and company pride themes, while the main entrance area of the facility may
contain mostly VPO, site-wide performance info and Passion for Beer/Better World themes.
Zones may choose to standardize the visualization requirements in areas outside of Operator Workstations and
Team Rooms. Zone Capex & Engineering teams must include a visualization and branding plan in the scope for
any greenfield site built in the zone. These plans can also provide inspiration and specific graphics for existing
facilities. Finally, refer to the Quality Pillar Quality Culture policy for specific Passion for Beer requirements
applicable to all sites. Additional resources for Passion for Beer visualization are available at
werehereforthebeer.beer.
The remainder of this section will cover the requirements for VPO and performance management visualization in
Supply facilities.
Visual Boards
Visual Boards are used as communication and routine execution tools in our facilities. They can be used in
different ways and in different places throughout a facility, as well as by different people. For example, specific
visual boards may be used during a shift by Operators and Technicians, on a shiftly or daily basis in a Team Room,
or on a weekly and monthly basis by department leaders in a Team Room or common department area. Finally,
plant-wide Visual Boards (such as in the main plant entrance area) may be used primarily for communication and
include the KPIs and other information that are critical to plant performance and the plant dream.
The two primary locations where Visual Boards should be employed to support the execution of the routine are
the Operator Workstation and the Team Room. In both cases, the content on the Visual Boards in these locations
should be dynamic, meaning updated predominantly on a shiftly and daily basis. A quick glance at these Visual
Boards should allow anyone to ascertain the performance of the area or process within it. The information at the
various Operator Workstations in an area should align with and connect to the Team Room.
Outside of the Operator Workstations and Team Rooms, sites must carefully consider the value performance
management Visual Boards deliver to the teams working in that area, and keep them to a minimum. Focus should
be placed instead on the other four visualization themes noted above to improve the working environment and
drive engagement for all employees. The following areas require specific items to be visualized, staying consistent
with the overall look and feel of the visuals throughout the site.
• Plant entrance area: Zones may standardize specific requirements for this space, but all plant entrance
areas should include, at a minimum, the plant dream, VPO maturity level (consider this to be the level
the site achieved the previous year), Passion for Beer-required historical timeline, specific site Better
World impacts and Sustainability goals, and a strong Safety theme. Specific items that should be
included are BEP or Sustainability/Excellence/World Class Index visibility showing current YTD status, the
site’s current Safety pyramid, SIF (Severe Injury/Fatality) prevention behaviors such as the Safety Golden
Rules and Life Savers, plant minimum PPE requirements, etc.
• Department entrance area: Zones may standardize specific requirements for this space, but the most
commonly used entry point into a department must include the specific safety hazards (good practice is
to show these in a department map format), Safety Golden Rules, minimum required PPE, department
dream and department-specific Better World impacts and Sustainability goals.
• Within a department: Specific PPE requirements must be visualized outside an area within a department
if that area requires anyone entering it to wear additional PPE beyond the minimum already shown at
the department entrance. A 5S map and the most recent 5S audit scores must be displayed in the
department. Zones may standardize the specific visual layout and location(s). Small departments may
only need one 5S visual, while larger departments may choose to have a 5S map for each area or line
within them. If space allows, the 5S visual can be incorporated into the Team Room(s) in a department.
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Operator Workstation visuals were covered in section 5.6.7. For further details specific to each department in a
brewery/soft drink facility or vertical operation, consult the standards shown in the link table following this
section.
Team Rooms
A Team Room is a space in close proximity to the production area where the team leader, Operators, Technicians,
etc., can gather to share and analyze the necessary information for effective, efficient and sustainable problem
solving and continuous improvement. A Team Room is a tool used to execute the routine, and should only be put
in place once that routine is already running effectively.
Each operational department (Brewing, Soft Drinks, Packaging, Quality, Energy & Fluids, Verticalized production
departments and Logistics) should have a minimum of one Team Room. If the department breaks down its
operational structure into additional areas, each area should have a Team Room. For example, a Packaging
Department with multiple packaging lines must have a Team Room for each line. If the Brewing Department
operates as a Brewhouse area, Fermentation area and Filtration area, it should have three Team Rooms.
Similar to the Operator Workstation concept, where the design and layout of the space is a deliberate flow, the
Team Room is also designed with a deliberate layout to facilitate the routine meetings that must take place in it.
Those minimum required meetings to take place in the Team Room are Start of Shift and End of Shift meetings
(with some flexibility based on Blueprint), the Daily meeting (line or area level), team communication meeting,
weekly maintenance meeting and problem solving activities above the shop floor 5-Why level (e.g. Abnormality
Treatment or PDCA).
Start of Shift (SoS) and End of Shift (EoS) meetings involve only the current team on shift. As many team
members, including the on-shift Maintenance Technician, as possible should be included in these meetings
without having to shut down the process. These meetings are short (5-10 minutes) and should be owned and
driven by the team members, not the team leader. The team leader is there as a facilitator for the team. The
Start of Shift meeting is intended to set the priorities for the team’s shift based on the previous shift’s
performance and any information passed on by that outgoing shift. The End of Shift meeting updates the team’s
performance for its shift, reviews the priorities set during the SoS meeting to ensure they were completed and
notes any actions the incoming shift needs to prioritize for the next shift. This SoS/EoS format can be especially
helpful for teams that do not have an overlap to their shift schedules, making a true shift handover meeting
impossible.
Based on the required meetings, Global standards for each department and verticalized category have been
developed. The basic elements are the same for each, and are pictured below in the following diagram. The
details within each section are specific to the business area. The content has been intentionally designed and
organized to flow according to the TORs of the meetings that take place in the Team Room. It is critical that
teams understand this flow and how to leverage the layout of their rooms to drive Operator/Technician
ownership of the content, optimizing meeting efficiency and ultimately driving improved performance of the
process for which the team is responsible. Team Rooms at the Department and Plant levels are not required, but
have been implemented in some Zones as a good practice. Each Zone may elaborate on the Global Team Room
standards to account for Zone and local situations, but all of the Global elements must be included in that
standard, and the Zone must take care to keep a consistent look and feel across all of the Team Rooms in a site
and across the Zone.
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Routine Review Process Block Concept Connections

The RRP block contains several concepts and tools, some of which also incorporate concepts and tools from other
blocks in both the Management and technical VPO Pillars. In any given facility, the three most critical locations
where all of these tools must come together, connect and flow seamlessly to drive a strong routine are the
Operator Workstation, Technician Workstation and Team Room. As such, the specific standards linked below all
contain visuals outlining the connections between these three locations, as well as the flow of the components
used within the Team Room for specific core MCRS meetings. Below is a Packaging example of the connections
from the Team Room to individual Operator and Technician Workstations:
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The figure below further illustrates the connections between multiple Workstations and their Team Rooms in a
department, as well as the overall information flow among the different locations and parts of a site’s MCRS. This
example highlights the Brewing and Quality departments in a brewery to keep the visual simple.
To learn more about the Routine Review Process, please go to the Global VPO Portal and the following VPO
Documents:
VPO.MGT.5.7.4.2 Global Minimum KPI Dashboards

KPI & PI Dashboard Minimums
Zone Site.xlsx
KPI & PI Dashboard Template VPO.MGT.5.7.4.1 KPI-PI Dashboard.xls
TOR Template VPO.MGT.5.7.5.1 TOR V8.3.xlsx
Action Log Template VPO.MGT.5.7.5.2 Action Log v5.0.xlsx
Plant Manager Routine Agenda VPO.MGT.5.7.5.3 Plant Mgr. Routine Agenda v2.0.xlsx
VPO.MGT.5.7.5.4 Packaging Mgr. Routine Agenda

Packaging Manager Routine Agenda
v1.0.xlsx
Meeting Effectiveness Audit Form VPO.MGT.5.7.5.5 Meeting Effectiveness Audit v5.0.xls
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Leader Checklists VPO.MGT.5.7.6 Managers Checklists.xls
VPO.MGT.5.7.7.1 Operator Workstation Design

Operator Workstation General Guidelines
v3.0.docx
Operator Workstation Video Operator Work Station.mp4
OWS Shift Handover Video SHO.mp4
Operator Workstation Training VPO.MGT.5.7.7.3 Operator Workstation Training.pptx
Overview Team Room Standard (applies to all depts, VPO.MGT.5.7.9.2 General Team Room Standard
all VOP categories) v1.docx
Team Room Video Team Room 360p.mp4
SDCA Matrix Video ABI SDCA Matrix_HD.mp4
VPO.MGT.5.7.9.3 Brewing Team Room & OWS

Brewing Team Room & OWS Design Standards
Standards v5.xlsx
VPO.MGT.5.7.9.3 BTS Team Room & OWS Standards

BTS Team Room & OWS Design Standards
v2.1.xlsb
VPO.MGT.5.7.9.3 Logistics Team Room Standard

Logistics Team Room Design Standard
v7.2.xlsx
Packaging & Packaging Maintenance Team Room & VPO.MGT.5.7.9.3 Packaging & Pack Maint Team Room
OWS Design Standards & OWS Standards v6.3.xlsx
VPO.MGT.5.7.9.3 QA Team Room & OWS Standards

QA Team Room & OWS Design Standards
v5.xlsx
VPO.MGT.5.7.9.3 Utilities Team Room & OWS

Utilities Team Room & OWS Design Standards
Standards v4.xlsx
VPO.MGT.5.7.9.3 Malt Team Rom & OWS

Malting Team Room Design Standard
Standards.xlsx
Can Team Room Design Standard VPO.MGT.5.7.9 .3 Team Room Standard Can v2.pptx
VPO.MGT.5.7.9.3 Team Room & OWS Glass

Glass Team Room Design Standard
Standards.xlsx
VPO.MGT.5.7.9.3 Crown Team Room & OWS

Crown Team Room Standard
Standards.xlsx
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6. Manage to Improve (MTI) Layer
What The Manage to Improve Cycle builds on the Fundamentals and Manage
is it?
to Sustain Cycle to further advance our company.
How does It contains tools that are used to open and close gaps through target
it create setting and cascading, problem-solving, project management, knowledge
value? management and the performance review process.
The Manage to Improve layer is composed of the following 5 blocks:
Manage To Target Setting Problem Project Knowledge Performance

Improve and Cascading Solving Management Management Review
Product and Standards

Manage To Business Process Routine
Process Creation and
Sustain Description Mapping Review
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This MTI layer helps to reach strategic targets and improve results.
6.1 The MTI Method: Plan, Do, Check, Act (PDCA)

Standardization is at the heart of business excellence. It assures consistent results of
repetitive operations by having stable processes achieved by standards compliance.
ABI standardizes all the activities necessary and critical to achieve results. However,
when processes aren’t yet stable, or problems are encountered that the routine
cannot solve, we need additional methods to close the gaps, stabilize the process and
improve our standards such that we sustain the improved performance. The PDCA
method should be used to resolve any chronic problems that have not been solved during daily execution of the
MTS Cycle and SDCA Method.
PLAN: Identify the problem and quantify the gap, set improvement targets, analyze current results,
conduct root cause analysis or identify key drivers, develop countermeasures to solve the problem
P and eliminate the root cause or to achieve the target, prioritize the causes and solutions, set-up an
action plan to test or implement the solutions.
D DO: Execute the action plan.
C CHECK: Check action plan execution and results.
ACT: If target is achieved, standardize the new way to ensure stability at a better level. If the target is
A not achieved, review/add new actions to plan and start a new cycle.
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6.2 Target Setting and Cascading (TSC)
What TSC is an 18-month cycle of breaking down strategic business goals into
is it? annual individual goals and targets that are actionable.
How does The process enables ABI to align its objectives and priorities across
it create business units, Zones, and functions (i.e. horizontally and vertically)
value? within the company.
The TSC process starts following the approval of the three-year plan (3YP) by the Board of Directors and includes:
The VPO People Pillar details the aspects of the Target Setting & Cascading process tied to the People Cycle for
personal targets and any bonus compensation an employee may be eligible for if achieved.
The focus of the TSC process within the VPO Management Pillar is aligned with the Strategy Block, detailed in
section 7.1. The minimum expectations of annual targets with proper monthly calendarization and plans to
achieve are outlined below, followed by two examples of best practices from APAC and SAZ.
One of the key outputs of the strategic planning process at both the Zone and site levels is the targets for the
main KPIs. Once these targets have been fully aligned between the Zone and site KPI owners, they must be
calendarized, and the site must make plans to achieve them.
Calendarization of targets takes the following inputs into account to develop the individual targets for each
month throughout the year such that the year end target will be met, yet the monthly targets are realistic:
• Seasonality of the KPI’s behavior due to weather (e.g. E&F KPIs that vary due to temperature, humidity,
precipitation, etc.)
• Seasonality of the site’s volume (e.g. if the site’s production has peaks and valleys during the year)
• Known impacts of projects or other factors (e.g. start-up of a new process or equipment, addition of a
new brand, etc.)
The monthly targets for some KPIs may be static throughout the year (e.g. PhysChem, Micro Index or Sensory),
but many others will fluctuate due to the above input factors or others. If targets are not calendarized properly,
the team won’t be able to accurately assess the KPI’s actual performance. In other words, the KPI may actually be
red (worse than target) when it shows as green (better than target) or the opposite.
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Even for KPIs that would otherwise have static monthly targets, the team may choose to challenge itself with
stretched monthly targets that are also phased in order to ensure achievement of a year end target, or to over-
deliver to a target if the business situation changed after the target was set.
Following calendarization, the team must make a plan to achieve the targets. In many cases, this is already part
of the team’s strategic plan, but the strategic plan may not cover every KPI the team is responsible for. A good
way to visualize how a KPI target will be achieved is a waterfall chart. The KPI impacts (whether positive or
negative) of known initiatives (e.g. GOP or best practice implementation), capital projects, Innovations impacts
and ITF or PDCA efforts are quantified and used in the chart to show how much of the gap from the current KPI
actual to the target is accounted for. If there is still a gap remaining, this must be addressed in the team’s plan to
achieve the target. An example of a waterfall for a brewery’s Water Usage KPI is shown below.
In this example, there is still a gap left after all of the known impacts were determined. There are different ways
the team can choose to close this gap. Some examples:
• Define additional initiatives, whether by further reviewing applicable GOPs or consulting with Zone
• Explore the Global VPO Ideas Sharing Tool, Eureka!, for potential good practices to implement (see
section 6.5.1 for more information)
• Identify improvements that could be made if capex is available to implement them (this is an unlikely
option based on the capital planning and budgeting timelines)
• Stretch the targets and work to achieve them by cascading them into the teams’ routines in all relevant
areas across the site
While all of these are potential options, there are two approaches from APAC and SAZ that are worth sharing.
The first one is a best practice from APAC. As a Zone, APAC has implemented the Dynamic PI Management
process to apply the 100% Mindset to many aspects of performance within a site team. The process starts with
stretching KPI targets and has enabled significant performance improvements in sites across the APAC Zone.
Some of the concepts of the process have been described already in the Routine Review Process Block (section
5.6.7) where the 100% Mindset PIs were discussed. The Dynamic PI Management process also links to the
Problem Solving Block (section 6.3) where 100% Mindset PI selection routines and trigger-setting are discussed. It
also links to the Process & Product Indicators Block, specifically the KPI Tree concept and leveraging leading PIs
fully owned by the shop floor to drive KPI improvement. The connections to multiple blocks within the VPO
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Management Pillar also makes the Dynamic PI Management process a good example of how multiple VPO tools
and concepts can be applied to drive world class results.
This cycle, depicted below, acts as a flywheel once it gains momentum:
1) The flywheel starts with setting stretched KPI targets. This means sites set targets for themselves that will
over-deliver to their budgeted targets set by the Zone function. This is also the link to the target planning
process described above with the waterfall example. The remaining unidentified gap goes into steps 2 and 3.
2) Using strong KPI trees, performance analysis and Front Line team member input, focus PIs are selected. In
the example shown for a Packaging Line, the focus PIs are based on fault data to select a Top Machine Issue
(TMI) by equipment center. This is exactly the process described in the Routine Review Process and Problem
Solving sections of this handbook.
3) Current fault data and team input is used to set targets to reduce or eliminate them completely. The
Operator tracks the number of TMI faults per hour in this example. The same TMI is tracked on the Team
Room SHO/Daily Dashboard—in this case as the number of TMI faults per shift. SoS/EoS Meeting discussions
cover actions being taken to identify and eliminate symptoms and root causes of the faults.
4) The Operator troubleshoots the issues causing the TMI fault and works with Technicians and other team
members to eliminate root causes. 5-Whys are used by the Operator to document the troubleshooting and
root cause analysis efforts of the team. This is discussed further in the 5-Why section of the Problem Solving
Block.
5) Improvement, SDCA Loop Closure & New PI Selection

a. Over the course of a few days or a couple weeks, the team can hopefully find and eliminate the root
cause of the TMI. The PI tracking at the OWS improves, as well as the shift-to-shift results in the
Team Room.
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b. Actions are taken to fully close the loop on the issue using the Team Room SDCA Matrix to track the
team’s update of applicable SDCA tools.
c. The leading PI is retired and a new one is selected based on updated performance data. Steps 2-5
continue with the new PI.
6) Related lagging PIs should also start to improve as well (equipment Uptime in this example).
7) The combined efforts across the line with Operators at each equipment center working on Top Machine
Issues specific to their machines results in overall KPI improvement as well (LEF in this example). This may
lag behind the TMI and PI improvements.
The key to turning this process into a flywheel is to keep stretching the KPI and selecting new PIs and Top
Machine Issues as soon as the current ones are solved. Even if the KPI stretch target hasn’t yet been reached, the
cycle should continue running and selecting new PIs and/or TMIs.
This specific example from a brewery packaging line is very translatable to a Packaging VOP. But it can also be
applied to Brewing, Utilities, Malthouses, etc. Additional examples for other departments and VOPS are outlined
in the Dynamic PI Management deck included in the reference documents at the end of this section. This deck
also gives examples of KPI Tree use in the PI selection process, as well as an outline for a workshop that can be
conducted with a team to help in teaching them the Dynamic PI Cycle using their actual performance.
A best practice for execution of the Dynamic PI cycle, PI selection process and Team Room routine to accelerate
solving the problems related to Top Machine Issues/Dynamic PIs is an application of Agile/Scrum principles from
the NAZ Los Angeles brewery. In the picture below, a simple grid on a board in the Team Room is used to track all
of the actions planned, in progress and completed for the Dynamic PIs the team is working on. At the SoS
meeting, the team aligns on the actions they can each accomplish that shift. Those items are moved from the “To
Do” section of the board to the “Doing” section of the grid for their shift. At the EoS meeting, the team moves
completed actions to the “Done” section of the grid, or if they weren’t able to complete an action due to a barrier
outside of their control, they move it to the “Roadblocks” section of the grid. The team leader is responsible for
helping to remove the roadblocks for those actions.
Dynamic PI Scrum Board Best Practice
PIs, their
stretch Actions being Actions with
Completed Roadblocks
targets and To Do Actions completed Actions outside the
Done item this shift
points team’s
tracking control
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Anyone can add new actions to the board. The team also tracks the performance of the PIs on their Shiftly/Daily
Dashboard to see the impact of their actions. This also helps them to retire a PI when the actions have been
completed and the PI performance proves those actions have sustainably eliminated the issues impacting its
performance. This Scrum Board approach to execution of the Dynamic PI Cycle is a very interactive and Front
Line-driven way to drive involvement from the whole team in solving its focus problems, while also bringing
accountability and a sense of urgency to the process. Note that the team in this example is assigning points for
each action as a way of motivating the shifts and team members, but this is completely optional.
The second good practice for execution of the Target Setting & Cascading process is the concept of Objectives &
Key Results (OKRs) currently in use by SAZ. This concept is complimentary to APAC’s Dynamic PI Cycle, but applies
to the KPI and lagging PI parts of the TSC process, vs the more granular leading PI piece. In this way, OKRs tie into
the Strategic Plan of the department or site.
The OKR concept was developed by Intel and later used by Google. It is described in detail in the book Measure
What Matters by John Doerr. The principle is simple. Objectives give clear direction on what needs to be
achieved. Key Results provide the means of measuring progress towards achieving the Objectives. The Key
Results targets are significantly stretched, even referred to as “moonshot” goals intended to push the team to
reinvent itself. In most cases, these Key Results goals are the same as the site’s Dream KPI targets.
Once the Objective has been defined and the Key Result moonshot goal set, the Key Result is broken down into a
1YP goal, then quarterly milestone targets and initiatives are planned by quarter to achieve the milestones and
ultimately the 1YP. Similar to the APAC practice of stretching targets (step 1 of the Dynamic PI Cycle), the 1YP and
quarterly targets are often stretched to challenge the team.
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An example for Consumer Complaints is shown below.
Combining the OKRs with the Dynamic PI Cycle is even more powerful. The two concepts have the advantage of
improved connection of the strategy into the shiftly and daily routines, involvement of more levels in the
organization, more challenging targets and much more frequent feedback loops. All of these help to break down
what may seem like an unattainable dream into manageable pieces and milestones, ultimately driving
accelerated performance improvements.
To learn more about the Target Setting & Cascading processes, please go to the Global VPO Portal and the
following VPO Documents:
Dynamic PI Management VPO.MGT.6.2.1 Dynamic PI Mgmt.ppt
Objectives & Key Results Intro VPO.MGT.6.2.2 OKR Intro.ppt
Waterfall Chart Template VPO.MGT.6.2.3 Waterfall Template.xlsx
Target Planning Worksheet VPO.MGT.6.2.4 Target Cascade Planning Worksheet
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6.3 Problem Solving
Problem Solving closes gaps between the current and desired

What
performance of a process. It can be used as part of the routine in the
is it?
Manage to Sustain layer, or as part of the Manage to Improve layer.
Problem solving is the method used to solve business issues either

How does
it create through methods of innovation or continuous improvement. It ensures
value? the company consistently achieves desired results and targets to
improve business performance.
A problem can be defined as a gap between the current and desired performance of a process. The most
common gaps are identified during the Routine & Performance Review Processes when comparing actual results
to the planned results or targets for the respective KPIs and PIs. These are performance gaps that occur when a
process fails to meet the expected results for a given period. All problems require root cause analysis and
corrective action in order to solve the problem and close the performance gap. Performance gaps in critical KPIs
must be addressed immediately before they affect the Service Level to the customer.
Problem Solving is a key block within the Manage to Improve Layer of the VPO Management Pillar, because it
explains step by step the methods used to close KPI/PI gaps. The diagram below shows the standard VPO tools
used as part of Problem Solving:
The problem solving tools are visualized in a pyramid to illustrate the level responsible for each type of tool, and
also to emphasize when and how often each tool should be utilized. In this manner, there is a clear escalation
from one problem solving level to the other. Roughly 80% of the problems that come up during execution of the
routine at the shop floor should be solved at the shop floor using a simple 5-Why process. Of the 20% of
problems that can’t be successfully solved with the 5-Why tool, approximately 80% of those should be solved
using the Abnormality Report tool. Similarly, of the 20% of problems not solved with an Abnormality Report,
approximately 80% of those should be solved by a team executing the PDCA method. Improvement Task Force
topics should be determined from the facility’s SWOT analysis as outlined in Section 7, Strategy & Business Cycle.
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A facility should have no more than 3-5 ITFs active at any time throughout the year. Finally, Belt projects are
defined at the Zone level and tend to focus on strategic initiatives.
This escalation concept is shown in the following diagram:
Problem Solving Mindset

Fundamentally, the most critical responsibility of everyone working in Supply is to solve problems. We should all
be looking to solve something every day, even the smallest of issues. Instilling a problem solving mindset into
everyone on our teams is critical to our long-term success. The first way we can do this is by setting triggers for
the PIs tracked every shift by our Operators.
Trigger Setting for 5-Why Analysis

As introduced in the Operator Workstation and Short Interval Control sections of the Routine Review Process
Block, tracking and monitoring is part of the routine and should be conducted as part of the process (not during
review meetings). Within the Operator Workstation, all of the PIs for the process within the Operator’s control
are shown on the span of control visual. The critical PIs are then tracked utilizing SIC Charts. Each of these critical
PIs should have a trigger for off-track conditions to generate follow-up to determine the root cause and
implement corrective actions in a timely manner. If a critical PI is found to be in the yellow portion of an SIC
Chart, a reaction plan should be initiated by the Operator to return it to the green section. If the reaction plan is
unsuccessful and the PI moves to the red portion of the chart, the Operator must troubleshoot the symptom(s)
and initiate a 5-Why once the symptom has been resolved to determine the root cause of the problem such that
action can be taken to eliminate it.
The sections of the SIC Chart for each PI must be carefully considered to determine the correct performance
levels to denote as green, yellow and red. This is the start of the trigger-setting process. Process Maps, PTS
(Process Technical Specifications) and current process performance level/capability are three factors to consider
when setting the red zone trigger, but also the PI target. In general, the trigger should be set tighter than the
target, such that it is hit before the target is lost. For example, if a Control Room Operator in a Brewhouse can
have a wort gravity deviation for a given brew no more than +/- 0.5° Plato from the PTS target without incurring a
PhysChem deviation for that brew, the trigger might be set at +/- 0.3°P. However, in a poorly performing process,
the trigger may need to start out looser than the target based on current performance so as not to overwhelm
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the Operator and the rest of the team. As the problem solving efforts eliminate root causes and performance
improves, the trigger should be tightened to the ideal level that is tighter than the PI target.
Whenever possible, triggers should be failure mode-based vs time-based. In other words, instead of setting a
trigger for downtime on a Packaging line, triggers should be set based on faults. PTS deviations in Brewing and
Malting or misshipments and picking errors in Logistics are also examples of failure mode-based triggers.
The 5-Why tool can be very helpful for a Quality department, no differently than for the production areas.
However, QA should not trigger anywhere near the number of 5-Whys as the production areas. The triggers in QA
should be focused mainly on instrument controls, as the most critical product of any QA team is the data it
generates and its accuracy. QA may also have triggers for failure to comply with MMSP (mandatory minimum
sampling plan) or for lab equipment failures due to forced deterioration. These are all within the QA team’s
control. The operating departments have to take action based on the data QA provides when it comes to
managing product conformance to PTS. The QA team should not have triggers for PTS specification deviations—
these should be owned by the operating departments (e.g. Brewing, Packaging, etc) who actually control them.
With well-aligned 5-Why triggers, the Quality team can also focus on their role as consultants, helping the other
departments with problem solving efforts on multiple levels.
100% Mindset PI Selection Routine & Trigger Setting Process

As mentioned in the Routine Review Process block, Operator Workstation section (section 5.6.7), we have
introduced 100% Mindset PIs for several areas to support routine problem solving on a shiftly basis. PIs related to
process control/consistency and Top Machine Issues should drive troubleshooting and root cause analysis
activities nearly every day. In order for these to be successful, the team must establish a routine to select, track
and work to eliminate the root cause of the issue before starting the process over by selecting a new PI within
the same categories.
Illustrations outlining how this routine can work within Brewing and Packaging are shown below, but this same
process can be applied to any vertical category or brewery/soft drink department with Operator and Technician
Workstations. Remember to consult the Brewing and Packaging-specific Team Room/Operator Workstation files
to see where these PIs and the actions to resolve root causes physically live within the Operator Workstations
and Team Rooms. Please also note that this process does not replace the trigger-setting process for other PIs as
discussed above.
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In both examples, the process starts with PI selection, which requires the team to gather some input data, usually
from the past week. Available data capture or reporting systems can be used, or the team may have to start with
SIC Charts at the applicable Operator or Technician Workstations to manually track the needed input data. In
either case, something like a simple pareto chart can quickly summarize the data. Regardless of how the data is
captured, the Unit Manager/Staff/BPM should validate it with the Operators and Technicians. Their input is the
most critical part of this process, and should supercede what the data may show in most cases.
With this input data, the team can now select the specific PI for each Operator Workstation. The
recommendation is for this discussion to be part of the TOR in the Weekly Maintenance Meeting in Brewing or
Utilities, and the Line Maintenance Meeting (Pre-Maintenance Window Meeting) in Packaging.
Once the PIs have been selected, the team can use the input data to help set up the SIC Chart for each PI. The
same principles discussed in the SIC section of the Routine Review Process block (section 5.6.8) apply for these
SIC Charts—the input data should drive the range (y-axis) for the chart in terms of the number of occurrences of
the particular PI. These occurrences should be tracked on an hourly basis. From there, the team can set up the
red-yellow-green sections based on the goal agreed to for the PI, and following the guidelines summarized in the
Trigger Setting section above. In some cases, the team may be targeting zero occurrences of the issue, but in
others, reducing the occurrences by a percentage (e.g. 50%) or below a PTS-related value is acceptable.
With the SIC Chart created, the Operators can begin tracking the PI, working to identify the root cause and
executing actions to eliminate that root cause. In many cases, the Shift Technicians and Subject Matter Expert
(SME) Technicians for the area or line will get involved with these efforts.
In the Team Room, the selected PIs should be summarized on the Shift Handover/Daily Dashboard. The
Operators bring the total occurrences of the issue for each shift to the Shift Handover meeting, briefly update
actions taken/completed or escalate the need for more resources or support with the problem. Visually, the
team can see across shifts as to whether the number of occurrences for each PI are decreasing. This helps the
team see results from their problem solving efforts, as well as when it is time to select a new PI.
Routines similar to what has been described above can be applied to all of the PIs tracked at the Operator
Workstations, complimenting the trigger-setting process described initially. However, the review and selection
process may not need to be as frequent as for the 100% Mindset PIs. The key point is to avoid non-value-added
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tracking. If a PI has not moved out of the green range on an SIC Chart for weeks or months, the team should
consider tightening the range on the chart, or selecting a new PI that relates better to a current red
KPI/performance issue. Also note that there are examples of PIs that may always need to be tracked, even if they
are running in the green range for long periods of time (e.g. TPOs at a Filler).
Trigger Setting for Abnormality Treatment
In addition to the 5-Why triggers set for the critical PIs tracked in the Operator Workstation, triggers must also be
defined for escalation to Abnormality Treatment when the 5-Why tool is not successfully fixing the problem. In
the case of Abnormality triggers, they should connect to and escalate from the 5-Why triggers. Some examples
include hitting a 5-Why trigger for the third time in a shift or day, a large loss event, or any safety, environment or
quality incident (i.e. injury, spill/release, blocking failure). Examples for Packaging and Brewing departments
below demonstrate the relationship between 5-Why and Abnormality triggers. The Team Room/Operator
Workstation standards for each brewery/soft drink department and vertical category also contain examples of
triggers. However, each team must develop its trigger list based on its unique processes and performance
capabilities.
If Abnormality Treatment is also unsuccessful and the problem becomes chronic, the team must escalate the
issue to the department manager. Based on department priorities and available resources, he or she may decide
to form a team to dig deeper into the problem utilizing the PDCA method and Toolkit.
If the PDCA team is unsuccessful at closing the gap, the problem may become a weakness on the department’s
SWOT analysis as an input into the strategic planning process. Ultimately, the facility leadership team may select
the problem for one of the site-wide ITFs. In this way, there is escalation from the routine problem solving tools
(5-Why and Abnormality Treatment) to the improvement problem solving tools (PDCA and ITF), but it is not
specifically trigger-based. Only the routine problem solving tools should have triggers set for them.
5-Why Analysis
5-Why analysis is intended to be a simple tool utilized by shop floor personnel (Operators and Technicans) to
determine the root cause for most of the problems that occur on a shiftly basis. Care must be taken to avoid
assumptions that actions taken to get the process operational again were the root cause of the problem. Training
is necessary to ensure employees work through a quality root cause analysis and avoid “5 Guesses”. Requiring
simple evidence for each Why can help to avoid this issue. Finally, a well-executed 5-Why must include the ability
for the Operator/Technician to suggest ways to prevent reoccurrence of the problem.
5-Why Process Execution
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A quality 5-Why process within any department in a facility must involve the whole team. The Operator is always
the Accountable and Responsible person for the 5-Why analysis, but he or she is not working alone to find the
root cause. To illustrate this concept, we use the analogy of a relay race, as shown in the figure below:
The relay race analogy shows how the whole team gets involved to find and eliminate root causes to the issues
they encounter. One of the most critical factors to the success of any given 5-Why analysis is to start this process
at the right time. Often, an Operator will start a 5-Why too soon, meaning the problem is still ongoing, the PI is
still running in the red on the OWS SIC Chart, and even the symptom of the problem has not yet been identified.
In a case like this, it is a great practice for the Operator to document troubleshooting efforts on the top section of
the 5-Why form, but the actual 5-Whys should not be attempted until a symptom is found, resolved, and the PI
has returned to acceptable levels.
Once the symptom has been identified, an Operator should resolve it, but in the event he or she cannot, the
most likely next call is to the Technician on shift. Working together, the Operator and Technician are likely able to
resolve the majority of the symptoms they encounter, and get the process running again. It is at this point that
the actual 5-Why analysis can be started. In many cases, the Technician can be a big help to the Operator in
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taking the 5-Whys past the symptom they identified. An example of what this may look like on an SIC Chart is
shown below.
Starting the 5-Why analsis after finding a symptom also saves the team from writing meaningless whys that start
with why a trigger was hit and require 2-3 whys simply to arrive at the symptom. It is more efficient and far more
likely to get to root cause if the first why starts at the symptom found instead of with the trigger hit. For example,
a trigger is hit in a Brewhouse for excess time in the brewkettle. The team found the symptom—a broken
coupling on the brewkettle knockout pump. In this case, the first why should be “why did the coupling fail?”
instead of “why did the brew spend extra time in the kettle?”
Once the Operator has taken the 5-Why as far as he or she can, the next part of the relay race is escalation of the
issue. At the End of Shift meeting in the Team Room, the Operator should update the SDCA Matrix to reflect
where the 5-Why was triggered in the process. Any follow-up actions required, or further help to determine the
root cause should be briefly discussed at this point as well. The Operator should also quickly review the 5-Why
with his/her incoming Operator at the Operator Workstation in case the problem comes back on the next shift.
To continue the relay race, a Subject Matter Expert (SME) Technician may then get involved. Usually, an SME
Technician has deep technical knowledge, expertise and job responsibilities specific to one type of machine or
part of the process (e.g. Filler SME in Packaging across all lines; Centrifuge SME in Brewing; Refrigeration SME in
Utilities). As part of the morning routine prior to the Daily Meeting, each SME Technician should visit the
Operator Workstations for the areas/machines his/her expertise covers. The SME Technician should discuss the
big performance issues from the previous 2-3 shifts with the Operator and review any 5-Whys triggered. The SME
Technician can help the Operator with the 5-Why analysis, capture actions he/she needs to execute, or identify a
need to take the analysis further in more maintenance and reliability-specific directions. The SME Technician may
also be able to leverage additional resources like equipment vendors, parts suppliers, maintenance plans and
history, etc.
Two more roles on the team are important for a strong 5-Why process, acting primarily as coaches and resource
coordinators. First, the front line leader must visit the Workstations in his/her area throughout the shift to
understand any issues Operators are having, help with troubleshooting efforts and support execution of any 5-
Whys triggered. Second, the Unit Manager/Staff/Business Process Manager, who usually has 24-hour
responsibility for the area or line, must get involved with 5-Why execution. Similar to the SME Technician, the
Unit Mgr should visit the Workstations in his/her area prior to the Daily Meeting. In discussions with the
Operators, the Unit Mgr must understand the key issues that occurred over the last 2-3 shifts, check the status of
any 5-Whys triggered and identify any 5-Whys that either need more resources to get to root cause, or are bigger
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than a simple 5-Why can handle and should be escalated to an Abnormality Report. Note: in this case of
escalation to an Abnormality Report, the 5-Why can be closed and all of the information transferred to the Ab
Report.
Regardless of who gets involved for any given 5-Why, the final part of the relay is as critical as starting the 5-Why
at the right time. Actions to resolve/eliminate the root cause should be discussed and assigned in the Daily
Meeting in the Team Room. In order to prevent the problem from reoccuring, updates may be needed for various
SDCA tools (e.g. Process Maps, SOPs, Checklists, maintenance plans, lubrication schedules, equipment Bills of
Material (BOMs), etc). These updates must be captured on the SDCA Matrix in the Team Room. Feedback must
be given to the Operator who started the 5-Why as to the root cause and actions taken to eliminate it.
Below is an example of a 5-Why completed by applying the relay race concept to a problem.
Setting the expectations for the 5-Why process in your area, department or facility according to this relay race
concept will lay the foundations for a robust problem solving process. Continuous coaching of 5-Why quality, as
well as disciplined execution of actions identified from the 5-Why will drive elimination of many of the routine
problems occurring each shift.
A note of caution regarding the 5-Why tool…
Remember that it is not the only problem solving tool at our disposal. Do not over-
complicate it. 5-Why is a tool for the shop floor to utilize on shift while still running
the process. It therefore must be kept simple and remain a tool for Operators to
use to identify root causes.
More complex problems should be escalated to Abnormality Treatment or beyond.
A Global digital 5-Why tool called the Problem Terminator has been developed for use in all sites in all six Zones.
The tool is embedded within the InterAction Log platform already in use in most Zones. This allows for seamless
capture of actions from 5-Whys in the same action logs a team uses for its routine MCRS meetings. The tool will
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be expanded to include a digital Abnormality Report tool as well. The Problem Terminator is designed according
to the 5-Why Relay Race concept and also includes a historical register and some tracking metrics in a simple
dashboard format.
To compliment Problem Terminator, a PowerBI report is available for use in any site or Zone. This report allows
users to drill into all of the data available from every 5-Why entered into Problem Terminator. It must be an
integral part of any SME Technician or PTE/Process Engineer’s routine revolving around equipment reliability and
process consistency. Regular use of this PowerBI report can uncover chronic problems in need of escalation
beyond a 5-Why, opportunities for parts and PM plan reviews with equipment vendors, escalation to Zone
Technical Experts (ZTEs) and even potential re-design of equipment or re-programming of control systems.
Additionally, anyone can use the PowerBI report to search for like problems encountered in other sites anywhere
in the world to share learnings and potential root cause-eliminating solutions to their own problems. A robust
routine leveraging Problem Terminator and its PowerBI report will help people at multiple levels in the
organization to solve problems faster and truly forever. The PowerBI interface is shown below.
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Abnormality Treatment
As previously mentioned, Abnormality Treatment should be an escalation from unsuccessful 5-Why efforts, or
when the problem is complex. As such, the analysis should go deeper and be more detailed than a simple 5-why.
More granular problem description, observation and corrective action summaries must be included in the
Abnormality Report. Root cause analysis may involve several different tools and methods. Examples include (but
are not limited to):
• Fishbone analysis (based on the 5Ms+1E…Man, Method, Machine, Material, Measurement, Environment
branches)
• 5-Why Tree (to continue a 5-Why when it branches due to more than one answer to a Why)
• Cause Map
• Spider web brainstorming
• Process Mapping
• Data analysis (paretos, pivot tables/charts, statistical analysis, MiniTab, etc)
Because different tools or methods could be used for different specific problems, the Abnormality Report
template has been designed with blank white space for the Root Cause Analysis section. Teams are encouraged
to utilize the Problem Solving space, Process Maps, KPI Trees and other reference information in their Team
Rooms to complete all Abnormality Reports triggered in the area. Pictures can be taken and inserted into the
Abnormality Report to capture any work product from the Team Room walls. Additional tabs in the Abnormality
Report file can be used to include raw data and any analysis performed on it.
Regardless of the root cause analysis tool(s) used, it is critical the team verifies the root cause it *thinks* it found
is truly the right one by executing actions to check its validity. This is the purpose of the Root Cause Verification
Actions section in the Abnormality Report Template.
Finally, and most importantly, once the root cause has been verified, the team must determine and execute
actions to eliminate the root cause, as well as executing actions to update any applicable SDCA tools to prevent
the problem from reoccurring. Similar to the process outlined for the 5-Why Tool, any updates to SDCA tools
should be noted on the SDCA Matrix in the Team Room.
Just as there is a routine for 5-Why execution, there should also be guidelines for Abnormality Treatment to
ensure it happens in a timely manner once an Abnormality trigger is hit. In general, the following are
recommended timelines to adhere to for the Abnormality Treatment process:
• Trigger hit: shift team, led by the Team Leader/Supervisor, completes the top section of the Abnormality
Report template with as much information as possible, including observations of what was happening in
the process when the problem occurred, and the immediate actions taken to identify and resolve the
symptom to get the process running again.
Just as with the 5-Why tool, the time to start the Abnormality Report is not when the problem is still
happening, but rather, after the symptom has been identified and resolved. This may cross more than
one shift, so it is also important that observations and troubleshooting efforts are noted in the sections
provided on the Abnormality Report template by someone on the team throughout those efforts.
• Next End of Shift Meeting following the trigger: the location in the process where the Abnormality was
triggered must be updated on the SDCA Matrix. If the issue is still ongoing, the troubleshooting already
done should be summarized for the incoming team so they avoid repeating the same efforts. If the
symptom was found and resolved, the outgoing team should summarize what they captured in the top
section of the Abnormality Report.
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• Next Daily Meeting following symptom resolution: the team should review the Abnormality Report, and
based on the initial information, the Unit Manager must assign completion of the Report to an
appropriate owner, as well as additional team members appropriate for the problem to participate in the
root cause analysis of the problem. Resources could include Operators, SME Technicians, Process
Engineers or Plant Technical Experts, individuals from upstream or down stream areas/departments
impacted by the issue, etc. However, the group should be kept small to ensure effectiveness
(recommended max of 6 people).
• Within 3-5 days of symptom resolution: Assigned team must meet and perform the root cause analysis.
The main outcome of this meeting are the root cause validation actions to ensure the team found the
actual root cause versus guessing or assuming.
• Within one week of root cause analysis meeting: Assigned team meets again to review the verification
action status. If the root cause was verified, the outcome of this meeting are the root cause-elimination
and prevention actions, including any necessary actions to update existing SDCA tools. If the root cause
was not verified, further root cause analysis must be performed and new verification actions assigned.
• Report closure: As a general guideline, root cause eliminating actions should be completed within 30
days of the initial problem occurrence. If any of the actions will take longer, such as those requiring capex
or to be executed during the next major overhaul window, they can be moved to the area or department
Weekly Meeting action log.
All abnormalities triggered in a department should be captured in an Abnormality Register so that chronic
abnormalities can be more easily recognized and analyzed. This provides the team with the data necessary to
prioritize any chronic problems for escalation to a PDCA team. It is a good practice to review this register at least
quarterly to identify chronic problems for possible escalation, as well as any trigger issues.
Between the current Abnormality Registers and the register capability within the Problem Terminator, sites have
good visibility into reoccurring issues, and can also leverage the centralized data analytics capabilities of the
Problem Terminator to better analyze trends by process area, shift or equipment type, as examples. Process
Engineers/Plant Technical Experts (PTEs) and even Zone Technical Experts (ZTEs) can take advantage of this to
make decisions on where to focus further improvement efforts or longer term initiatives to address and eliminate
root causes more systemically across similar processes or multiple sites.
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PDCAs & ITFs

The standard AB InBev method for solving large, complex or chronic problems is the PDCA method. It is
illustrated in the following diagram:
There are many tools available to be used within the PDCA method, depending on the complexity of the
problems to be solved. Many problems can be addressed by anyone with the use of simple tools such as check
sheets, run charts, Pareto charts, data stratification, and brainstorming, but all problems require root cause
analysis and corrective action to solve the problem and close the performance gap.
The PDCA method and the Global VPO PDCA Toolkit are required to be utilized by all PDCA teams and ITFs. The
main differences between a PDCA and an ITF are the scope of the problem and the composition of the teams, as
summarized below.
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PDCA/ITF Execution Guidelines

While the PDCA Method outlines what steps must be followed by a PDCA team or ITF, it does not provide any
guidance on how to effectively execute these steps. The following are general guidelines applicable to both PDCA
teams and ITFs, and can be remembered by the mnemonic R2D2+1.
1. Right Problem:
• Many teams fail to adequately define the problem they are trying to solve, skipping this first step in
the PDCA Method altogether, or writing a vague, impossible-to-achieve problem statement. Enough
initial data or information about the problem, such as a GapA (Gap Analysis, see the Peformance
Review Process, section 6.6 for more on this tool), should be reviewed to initially select appropriate
team members, and then should be discussed with the team to ensure their understanding of the
problem and why they are on the team.
• From there, the team must agree on its problem statement, as well as a realistic goal and how it will
measure success…whether using the focus KPI/PI itself or a related PI.
• Good teams don’t hesitate to come back and re-write their problem statements and goals as they
progress through the PDCA Method and learn more about their problem.
2. Right People:
• While the Plant Manager is the Champion for all ITFs in a site, the team must have the right leader
facilitating the ITF. It is not always best for the KPI owner to be the leader, especially when he or she
has little ability to drive actions. An example of this is a Micro Index ITF. It may seem that the QA
Manager, who owns the KPI, should lead the ITF, but this person usually does not have the authority
to make changes in Brewing or Packaging, where the root cause(s) of the problem are usually found.
In this case, either of those department managers may be a better choice to lead the ITF, based on
which one is driving most of the KPI gap.
• Though initial review of the GapA for the problem may help select the right team members at first,
good teams also evolve their members as they progress through the problem solving effort. Front
line and shop floor representatives can be very helpful for details on current operating conditions.
Plant or Zone Technical Experts may act in consulting roles, joining the team as needed. A person
with strong Excel, Mini-tab or data analysis skills in general is always a great asset to any PDCA team
or ITF. Sometimes, a team member with no obvious expertise or experience directly related to the
problem can be very helpful, acting as a set of “outside eyes”. This type of team member often has
no biases or pre-conceived assumptions about the problem, and may therefore observe things the
rest of the team doesn’t even notice.
• Regardless of the make-up of the team, a smaller team is usually more effective than a large one.
Additional resources can always be brought in, whether as permanent or temporary members.
3. Data will set you free:

• Teams must gather and utilize data to avoid making assumptions or jumping to conclusions about
their problem. With this in mind, steps 2 and 3 of the PDCA Method are extremely critical to execute
well. Everything the team does, regardless of the specific tools used, should result in a conclusion and
next steps from that conclusion. In some cases, an analysis or test may have made the problem
worse, or had no impact. This is a valid conclusion—the team still learned something and can reverse
the tested changes and cross that potential cause off the list and move on to the next one. In this
manner, each action the team takes should lead to the next one. In other words, the steps followed
and specific tools used within them in the PDCA method should connect with each other. In many
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cases, actions can be executed in parallel, but this must be done with care so that impacts on the
problem can be correlated correctly.
• Within the Observation step (step 2), the use of the Gemba concept can give a team a lot of insight
into the problem. Gemba literally means “the real place” in Japanese. The Toyota auto company
developed the concept of a Gemba Walk as way of gathering information through observation and
interaction with personnel on the shop floor. Another way to think of Gemba is to “go look”, meaning
go watch the process associated with the problem in real time as it is happening. In combination with
the OWD tool discussed in the Standards Creation & Execution block (section 5.5), a PDCA team or
ITF can learn a lot about how a process currently runs, as well as the standard methods being used by
Operators or Technicians and how well those standards are being followed. These observations then
become inputs into the Analysis step (step 3) of the PDCA Method.
• There are many templates in the PDCA Toolkit to help with the Analysis step. One of the most useful
for many PDCA teams and ITFs is a simple pareto chart. Often, a team can use paretos that cascade
from each other to narrow the focus down to a much more manageable size. In the case of an ITF,
some of the initial paretos may then cause the team to decide to kick off smaller PDCA teams to each
focus on one column of the pareto. Since ITFs are for big, strategic problems, this approach can be a
very effective way to focus the available resources on smaller parts of the problem. The ITF must
maintain oversight of any PDCAs feeding into it, and there are often aspects of the problem that
should remain within the ITF to solve.
• Steps 2 and 3 may result in the team re-defining its problem, or changing the team members. This is
very typical and should not be seen as a step backwards or lack of progress. On the contrary, these
are usually signs that the team is on the right path, narrowing its focus as much as possible to ensure
effective root cause analysis and quality actions to eliminate the causes identified.
4. Don’t Re-invent the Wheel:

• Once the team has a baseline understanding of the problem, and starts to uncover some of the main
drivers, it must avoid wasting time and resources trying to determine a solution that may already
exist. For this reason, the PDCA Toolkit contains an SDCA Checklist to help PDCA teams and ITFs
ensure fundamental and routine tools are in place and being used correctly before spending time to
create or implement new ones.
• The SDCA Checklist should be used within the context of the problem. For example, one of the items
checks to see that 5S is in place. This is not intended to be evaluated for the entire facility, or even an
entire department. Rather, the team must look for opportunities to utilize 5S to help with the
problem. Refer to the “5S the Job, not the Space” concept in the Section 4.2.
• GOPs (Good Operating Practices) are a key resource that should be heavily utilized by PDCA Teams
and ITFs. GOPs are discussed in more detail in the Knowledge Management Block, section 6.5.2. They
are included on the SDCA Checklist in the PDCA Toolkit, but again, should be utilized in the context of
the problem. Instead of doing an exhaustive review and validation of all of the individual GOP items
for a given KPI, the team should instead pull from the GOPs surgically, evaluating the items that are
related directly to the specifics of the problem. As the team identifies a symptom or root cause for
the problem, the first question that should be asked is, “Is there a GOP for that?” instead of “What
should we do about this?”
• There are many more resources and tools available to a team besides those few listed in the SDCA
Checklist. All of the VPO Pillars contain items that may help the team throughout the problem solving
effort. This was discussed already in the Global Policies Block, section 4.1.1. In some cases, specific
content may help during the Plan Phase to identify root causes and quickly drive corrective actions. In
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other cases, tools from various Pillars will be useful during the Do and Check phases to execute
actions. A great example of this are the Fundamental Blocks within the Safety Pillar. A specific action
to test a new procedure may require specialized PPE, specific Work Permits, Lifting Equipment or
Confined Space Entry. The Safety Pillar policies are therefore a great reference to consult to make
sure the test is conducted in a safe manner. Many tools can be especially helpful during the Act
Phase when the team is working to standardize the solutions to the problem back into the routines
so that the improved results are sustainable.
Because there are many tools, policies and resources in the Pillars, the team may find it helpful to use
a Problem Mapping board similar to the examples pictured below. This board contains all of the
blocks from all of the Pillars around its perimeter, as well as the key tools and concepts within each
block. The intent of the board is to act as a provocation for the team throughout the PDCA Cycle to
fully leverage the available tools from all Pillars to solve the problem. The problem can be stated
simply in the middle of the board and connections drawn to various blocks the team needs to use. It
can also serve as white space for activities like Process Mapping or Fishbone brainstorming.
5. No wallowing in the mud:

• PDCA Teams and ITFs cannot afford to waste time. Every week without progress is another week the
KPI or PI is not performing to target or getting worse. This widens the gap, creating a bigger hole for
the team to crawl out of.
• Progress of any ongoing PDCA Teams or ITFs in the department and facility should be reviewed at
least monthly. This can be incorporated into the Monthly Meeting, or held as a separate ITF/PDCA
Review Meeting. The plant manager and department manager must ensure each team is following
the PDCA Method effectively, and pay specific attention to the action plan status evolution from one
month to the next. If little progress is made, the manager must re-focus the team, gaining specific
commitments from each team member. In some cases, a new team member or re-evaluation of the
problem definition may help, or additonal data could be needed to drive a renewed focus.
• Agile methodologies have been introduced in all Zones, including the concept of Sprint teams.
Though the PDCA Method must be followed and the Global PDCA Toolkit utilized, applying Agile
concepts to execution of a PDCA or ITF may help the team make progress more quickly. For more
information on how to properly apply Agile methods in your site, consult your Zone Agile lead,
usually within the People team.
• Another option to combat a lack of progress is to hold a Kaizen event. Kaizen literally means
“improvement” in Japanese. A Kaizen event utilizes the PDCA Method, but pulls the team members
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away from their normal job responsibilities to focus 100% of their time on the problem for a few days
or a full week. This can be a way to jump-start a team to make a lot of progress on its action plan, or
provide more time for Observation step activities, Process Mapping, Fishbone analysis and other
brainstorming activities, or to execute tests to validate the impact of changes on the results. If a
Kaizen event is held, all work product should still be housed in the PDCA Toolkit. In some cases,
significant improvements, if not full resolution of a problem can happen during a Kaizen event.
Close the Loop

Regardless of the size of the problem, or the problem solving tool applied to solve it, teams must always strive to
“fix it forever”. To do this, solutions must be standardized and routine tools updated to reflect the findings.
Virtually every problem solved will result in the need to update an SDCA tool, if not several. Failure to standardize
solutions back into the routines will result in the problem coming back, which not only wastes time and
resources, but can also be frustrating for the team. To help teams visualize their loop closure efforts for routine
problem solving, each Team Room standard discussed in section 5.6.9 of the Routine Review Process block
includes an SDCA Matrix. In all cases, process areas are shown on the left-hand side of the matrix, while routine
problem solving and SDCA tools are shown along the top. An example is shown below.
In many cases, at least part of a root cause of a problem can be attributed to people, whether due to a lack of
training, poor understanding of training, inadequate/non-existent training materials or a lack of upskilling. SKAP
(Skills Acquisition Process) outlined in the VPO People Pillar Learning & Development (L&D) Block is designed to
lay out the skills and behaviors necessary to execute each job position in a department. Additionally, the Global
SKAP Tool provides teams with capability to analyze skills gaps within teams and for individuals. This is a key
aspect of loop closure for problem solving. In many cases, performance metrics and SKAP scores can be reviewed
to determine if correlations exist. Where they do, focused training decisions can be made to not only close skills
gaps, but also drive operational KPI performance. An example of how this type of correlation may look is shown
below for a Brewing example. Additional examples are outlined in the VPO People Pillar Handbook.
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In the above example, Micro Index scores for the various process areas are shown above each boxplot. The
boxplots show the SKAP score distribution for each Operator position with CIP responsibilities in the same
process areas. In this case, a potential correlation is obvious between the Green Beer Micro score and the Cellar
CIP Operator SKAP distribution. Ensuring Driver’s License training is solid for these Operators, as well as potential
upskilling training specifically related to potential Micro contamination and proper cleaning may help the
performance issue. Obviously, there could still be other causes related to equipment, the process or
environmental factors, but enhancing the skills and autonomy of Operators and Technicians is never a bad idea,
and will often help drive operational KPI improvement. It is important for team members at all levels to consider
basic training and more advanced upskilling when closing the loop to permanently solve problems.
To access templates and more information about Problem Solving tools, please go to the Global VPO Portal and
the following VPO Documents:
5-Why Template VPO.MGT.6.3.2 5-Why template v6.xlsx
5-Why Video 5 Whys Solving Simple Problems.mp4
Abnormality Report Template VPO.MGT.6.3.3 Abnormality Report v5.xlsm
Abnormality Register Template VPO.MGT.6.3.4 Abnormality Register.xlsx
PDCA Toolkit VPO.MGT.6.3.5 PDCA Tool v6.2.xlsb
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5-Why Training VPO.MGT.6.3.6 5-Why Training.pptx
Problem Map templates VPO.MGT.6.3.6.1 Problem Map Board.xlsx; VPO.MGT.6.3.6.2

Problem Map Board.pptx
PDCA Overview Training VPO.MGT.6.3.7.1 PDCA Overview Training.pptx
PDCA Plan Phase Training VPO.MGT.6.3.7.2 Plan Phase Training.pptx
PDCA Do & Check Phase Training VPO.MGT.6.3.7.3 Do & Check Phase Training.pptx
PDCA Act Phase Training VPO.MGT.6.3.7.4 Act Phase Training.pptx
ITF & PDCA Execution How-to’s VPO.MGT.6.3.7.5 ITF & PDCA Execution Guidelines.pptx
6.4 Project Management
Project Management is the application of knowledge, skills, tools and

What
is it? techniques (through an appropriate method) to meet project
requirements.
How does
Ensures projects deliver on-time, on-budget results, and the learning and
it create
integration needed by the organization to achieve its goals.
value?
Project Management (PM) is the standard way of managing all of our projects, ensuring that AB InBev only
allocates its resources to projects that will lead us to fulfill our dream: to build a profitable growth company.
Projects are actions originating from the Strategic Plan. They can’t be cascaded to lower hierarchical levels
because they are actions that need to be implemented for complex issues that require more resources, even
though the solution to the problem is known upfront.
The Strategic Actions on a Strategic Plan may trigger a Project that should be initiated to improve results by
improving products or processes. These actions (projects) should be executed by their accountable function on a
tactical level. It is up to the leadership and its Strategic Planning process to define and prioritize the strategic
actions. It is up to Project Management to execute the projects stemming from strategic actions. Project
Management will provide a single source of ‘big picture’ information on status and performance, resulting in
improved forward planning and hence better management decisions.
Projects are carefully planned and organized efforts to accomplish specific (and usually) one-time efforts. The
vast majority of projects undertaken in a facility will be capital projects (capex), for example, installing new
equipment or improving fabric. However, not all projects that require the use of project management tools are
necessarily capex. Examples include Blueprint transformation initiatives or installing new Global or Zone-wide
systems (e.g. SAP, InterAction Log, Acadia, Warehouse Management System, etc). Regardless, all projects are
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temporary undertakings designed to achieve results, which are not part of our daily activities, are within the
constraints of time and cost, and have been assigned to complex strategies that require more resources.
Projects have the following objectives, all of them aimed at making the company more competitive:
• To produce an output (product or service) that has different characteristics from others that might have
already been produced.
• To improve results by implementing new processes and systems in the company.
The main characteristics of Projects are:
• Temporary = limited lifetime

• Developed in steps
• Unique results
• Undertaken by a team
• Imply an allocation of resources
• Involve risks
The Project life cycle can be defined as follows:
This life cycle can be more specifically defined for a capital project as follows:
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The beginning of the project, the Idea Generation, is linked with Strategic Planning (the Dream/SWOT portion of
the VPO Business Cycle). The end of the project, its closure, implies that the project becomes part of our day to
day operations, and this is where it links with the SDCA Cycle.
Projects differ from regular daily operations because operations are continuous and repeated, whereas projects
are a temporary effort (have start and end dates). Only after they are over will they become routine activities. If
the implementation is successful, then the process becomes part of a daily routine.
Projects also differ from chronic or strategic problems in that the solution or what needs to be done is known,
whereas with problems, we don’t always know the solution up front when we set out to solve them. Because we
know what has to be done for a project, we don’t need to use Problem Solving tools covered in the previous
section (i.e. a PDCA team or ITF). Instead, we need to apply Project Management tools to organize the resources
and the actions necessary to execute the project.
Project management encompasses the development of a project plan, which includes defining project objectives,
specifying tasks or how objectives will be achieved, what resources are needed, and then associating budgets,
timelines for completion and risk mitigation for planned actions. It also includes implementing the project plan,
along with careful controls to stay on the "critical path", that is, to ensure everything is being managed according
to plan.
Managing the life cycle of projects will assist in the prioritization of the scarce resources required to deliver key
business priorities. Defining clear responsibilities up front solves the lack of clarity with regards to project
ownership. Development of project management skills is enabled by applying consistent methods and standards
which will improve project success rate (quality, cost, timing).
6.4.1 Project Execution
There are many different Project Management tools and templates available to execute projects. Refer to the
Project Management Handbook in the reference file list at the end of this section for specific tools and templates
used for capital projects.
Capital Projects
The manager (or department) on site in a facility who is responsible for capex execution must follow the
guidelines in the Project Management Handbook for all projects executed in the facility. Each project must have
an implementation plan and financial plan of capitalization, and both should be updated on a monthly basis. The
facility must also have a monthly Capex KPI Dashboard in place containing the items required by the Project
Management Handbook. This dashboard forms the basis for the site’s Monthly Capex Review meeting to ensure
that all stakeholders understand the status and key next steps needed for all critical capital projects.
While the Engineering & Capex team in the Zone, as well as the on-site capex execution team have primary
responsibilities for many aspects involved in executing a capital project, the department who will ultimately run
the new process or piece of equipment must be heavily involved during all phases of the capital project as well:
• Conceptualization: often, the operating department comes up with the initial idea or need for a capital
project. Project ideas may come from the department’s SWOT and strategic planning process, but also
throughout the year based on problem solving efforts that determine capex is needed to implement a
particular part of the solution. Each department should have a mechanism in place to prioritize its capex
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requests based on various factors such as safety, consumer safety, quality, efficiency, productivity and
cost.
• Scoping: once a project is approved, the operating department should be heavily involved with the
scoping and design steps. In many cases, Process Mapping can be a very helpful tool to define the as-is
and future state processes to aid the project team. In addition to Plant Technical Experts/Process
Engineers and other appropriate managers in the department, Operators and Technicians should be
involved in this step. Their detailed knowledge of the current process and the tasks involved to run it can
be critical input for proper ergonomics, workstation layout/positions, maintainability of the equipment
(i.e. accessibility for maintenance, LOTO capability/ease, common spare parts with existing equipment,
etc.), instrumentation needs and placement, cleanability, etc. In addition, the project team and operating
department must ensure the project scope is complete. This means all old equipment is properly
demolished and removed, fabric repairs are made (e.g. wall/roof penetrations, floor damage, etc.), new
Operator Workstations are installed, new Team Rooms are built (if applicable) and all systems updated to
accommodate the new process or equipment, not just the process automation (i.e. process data capture
systems, MES, lab information systems, financial reporting systems, production planning systems, etc.).
• Funding: the operating department who will own the new process or equipment upon completion of the
capital project must be heavily involved in the justification for the project. This should include savings
validation, KPI/PI impact determination, capacity impact determination and confirmation of adequate
funds included for initial spare parts purchases, automation programming (if applicable) and training of
Operators and Technicians.
• Execution: the operating department must stay updated with the progress of the project during the
engineering, procurement and construction phases to ensure the project is on track and the agreed-upon
scope is being executed. Walking the project area on a routine basis during the construction phase is
recommended, and Operators and Technicians should be included on these walks. Their input is vital to
confirm equipment layouts for proper ergonomics, Operator lines of sight, maintenance access, lifting
equipment pick point access and proper load rating and LOTO access.
• Start-up: operating department involvement is especially critical during the start-up phase of the project.
This is often when Operators and Technicians can learn a tremendous amount about the new equipment
and process they will have to operate and maintain by themselves in the future. Wherever possible and
applicable, Operators and Technicians should be paired up with vendor technicians and the engineering
team to help with start-up activities. Whether during this phase, or already during the Execution phase,
the operating department must also work with the capex team to ensure all of the applicable SDCA
materials are updated to include the new process or equipment. Every concept discussed in the Manage
to Sustain SDCA layer of the Management Pillar will likely need to be updated, but additional routine
tools specific to the People and technical Pillars may need to be updated as well (e.g. SKAP guides,
training materials, LOTO procedures, minimum sampling plans, chemical storage matrices, production
planning systems, maintenance and lubrication schedules, etc.).
Each department should have line of sight into all of the capital projects approved and being executed in its area
for the current year (1YP). There should be a clear link between these projects and the department’s SWOT and
3YP (see the Strategy block in section 7 for more details).
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Many capital projects have an impact on a department’s production capacity, even impacting the overall site
capacity in either a positive or negative way. Because of this, it is critical that the site leadership team actively
updates the site Capacity File in a timely manner according to Zone timelines. Without accurate capacity
information for each site feeding into the overall Zone capacity view, it is nearly impossible to make proper
decisions for many capital projects, especially those with capacity impacts. Additionally, site teams need these
insights to understand the bottlenecks in the processes specific to their facility. Without knowledge of individual
department and overall site-wide bottlenecks, the team will not be able to make good strategic decisions to
improve on them. A strong Capacity File update routine and understanding of its updates will help teams make
better short and long-term decisions. Refer to the Project Management Handbook for more about Capacity File
Management and where it fits in the overall Portfolio Management picture for Supply.
Strategic Initiative (Non-Capital Project) Execution

A simple tool for non-capex projects that can be used to break the project down into various workstreams and
the actions required for each is the Project Management Office, or PMO. This tool is essentially a much more
granular action log, and allows for the project owner to assign ownership of individual workstreams to team
members, track the progress in detail of each workstream, and also see the overall progression of the entire
project. See the reference file list at the end of this section for a PMO template. And example is shown below.
Similar to the concepts for executing capital projects, departments can leverage tools like Process Mapping to
help with the execution of strategic initiatives. Regardless of the tools used, the project team must ensure that all
applicable areas of the department’s routine are updated to include the outcomes from a strategic initiative. This
will ensure the results obtained from implementing the project are sustained.
As mentioned for ITF and PDCA execution, Agile methods may also apply to project execution. Teams are
welcome to apply these methods to help them with project management efficiency. Consult your Zone Agile lead
within the People team for more information about the Agile methodology, required training and how to apply it
to project management.
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6.4.2 Management of Change (MOC)
Regardless of the size or type of project or initiative, one of the most critical success factors is proper execution
of a change management process throughout the project cycle. Humans in general do not like change, and
because all projects bring change to a department or facility in one way or another, the change must be properly
managed to ensure the project’s success.
Not just projects bring changes, so the change management

requirements and tools described later in this section apply to all
changes, regardless of their origin.
There are different types of change, and each can bring different risks with it to the teams and processes
impacted by the change. The most commonly encountered types of change requiring an MOC process to be
followed are shown below:
Procedure (SOP)
Recipe / Raw or Packaging Material / Process Aid
New Brand or SKU
Control & Automation
Equipment, Building, Civils or Structure - with Capex
Equipment Modification - no Capex
Greenfield or Brownfield Capex
Material
Personnel
Technology
Culture/Behavior/Work Environment /Rewards
The specific MOC process for each change type is defined within the Global MOC Tool. This tool considers all
requirements from all of the VPO Pillars, as well as the Zone Supply Management System’s Innovation &
Technology (I&T) Pillar. Each change type has a workflow developed for it to help teams consider the various
impacts a change could have, as well as requirements for how to mitigate those impacts. These workflows are
organized similar to Level 4 Process Maps, and by Pillar to help users reference specific policies or requirements
from each. From there, each workflow has a detailed MOC Checklist users can follow as they work through
preparation for and implementation of a change. In some cases, large projects or initiatives may require use of
multiple workflows and checklists to execute the MOC process properly. The Global MOC App is available to help
teams manage changes requiring formal completion and documentation of the workflow checklists.
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In most cases, MOC processes will be executed by a team of people within a site. The Global MOC App is
designed to allow for this approach and includes the capability to assign ownership of parts or all of a Workflow
Checklist to owners within a team. It also allows the site to leverage external resources, such as Zone function
teams members, to help with MOC execution. Wherever possible, Operators and Technicians should also be
involved with MOC execution. Communication is a key success factor for any change, as is involvement and buy-
in from those most impacted by the change. Both should be considered when selecting individuals to participate
in an MOC effort.
Examples of each type of change are listed below, as well as the Global requirements triggering mandatory
completion of the workflow checklist in the Global MOC App (or the Global MOC Tool excel version if the App is
not available to a team). Note that your Zone may have additional triggers requiring completion of the workflow
checklists in the Global MOC App above and beyond the Global requirements.
• Procedure (SOP or SWI):

o New critical SOP
o Major change to an existing critical SOP (major is defined as any change that would require more
than a single-page OPL to summarize and communicate the change) and is not just upgrading the
quality of the SOP
o Global requirement: reference only of the workflow and checklist
• Recipe, Raw or Packaging Material, Process Aid:
o Used for Zone-directed major changes, whether issued as Brewing Specials/Packaging CQVs or
not for existing brands.
o Global requirement: Workflow Checklist MUST be used for major recipe changes NOT directed
from Zone that change the brand’s brewing process infrastructure used to produce it and
submitted to the appropriate person as outlined in the Checklist. Examples: brew size, producing
brewhouse, fermentation method (i.e. change from 2-tank FV/MV to Unitank or vice versa)
filtration method
o Global requirement: Workflow Checklist MUST be used for major changes that fall under the
Global Product Blueprint & Integrity Governance Policy for Cluster 1, 2 & 3 change types if not
already directed from Zone as Brewing Specials/Packaging CQVs and submitted to the
appropriate person as outlined in the Checklist. Examples: malt/adjunct ratio, type of adjunct,
mashing scheme, boiling scheme, boil profile, FV fil original gravity target, yeast strain,
chillproofing/filtration media, supplier, process aid, primary/secondary packaging changes
• New Brand or SKU:
o Production of a new mother or daughter brand in Brewing
o Production of a new brand/SKU on a packaging line, whether it runs on another line in the same
facility or not
o Global requirement: Workflow Checklist MUST be used for new Global or Local Focus brand
production and submitted to the appropriate person as outlined in the Checklist.
• Control & Automation (C&A):
o Changes to the control system, instrumentation or other automation within a process
o Global requirement: MUST be used when no structured Change Management Request (CMR)
system or process exists in the facility and any of the following are true:
▪ Impacts Safety, Quality or the Environment
▪ Involves addition or removal of C&A components or a design change
▪ Significantly changes software/PLC code
▪ Bypasses or forces an automation input or output
o Sites with a CMR System may use solely that system for MOC as long as all items in the C&A MOC
Workflow Checklist are considered and completed as applicable.
• Equipment, Buildings, Civils or Structure with Capex:
o Modification of existing equipment, buildings, structures or civil works
o Installation of new equipment, construction of new buildings, structures or civil works
o Global requirement: Workflow Checklist MUST be completed and submitted to the appropriate
person as outlined in the Checklist.
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• Equipment Modification without Capex:

o Modification of existing equipment, buildings, structures or civil works completed in-house
without capex
person as outlined in the Checklist
• Greenfield or Brownfield Capex:
o Greenfield site
o Major expansion to an existing site (e.g. new brewhouse, cellar, packaging line)
o Supplements the VPO Greenfield Implementation Glidepath document that must be followed for
all greenfields
person as outlined in the Checklist.
• Material:
o New auxiliary materials (e.g. cleaning chemicals, CIP chemicals, glue/adhesives)
o New maintenance-related materials (e.g. lubricants, gaskets, non-OEM parts not previously used
in the facility
o Global requirement: reference only of the workflow and checklist, including completion,
submission and approval of required ES Material and Chemical MOC Checklists.
• Personnel:
o New organizational design or blueprint
o New staffing levels
o New ways of working or job responsibilities
• Technology:
o Implementation of new technology (e.g. hardware, software, apps or digital tools, etc)
o Reference the Global TechSupply Toolkit and consult your Zone TechSupply team for more tools
to support any changes related to technology in your site
o Global requirement: Workflow Checklist MUST be completed for any new TechSupply tools
coming to the site or department for the first time
• Culture, Behavior, Work Environment or Rewards:
o Culture, mindset or behavior change initiative (e.g. front line-focused leadership, Behavioral or
Territorial Safety, self-directed work force, maintenance integration into operating departments)
o Work environment changes (e.g. crisis management protocols, shift times or rotation schedules,
move to a central control room or control tower)
o Compensation or Rewards changes (e.g. bonus program implementation/modification, benefits
changes)
Once a change has been implemented, the team should evaluate the effectiveness of its MOC efforts. Any
lessons learned should generate actions to update and improve its MOC processes going forward.
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To access templates and more information about Project Management and Management of Change tools, please
go to the Global VPO Portal and the following VPO Documents:
Project Management Handbook VPO.MGT.6.4.1.1 Project Management Handbook v13.docx
Project Management Office (PMO) VPO.MGT.6.4.1.2 PMO Template.xls
Global MOC Tool (excel format for reference use) VPO.MGT.6.4.2 MOC Tool.xls
Global MOC Technology (Global TechSupply owned) VPO.MGT.6.4.3 MOC Tool for Technology.xls
Global MOC App Microsoft PowerApp available via the Global VPO Portal
6.5 Knowledge Management
The fourth block of the MTI Cycle, Knowledge Management comprises a

What
is it? range of strategies and practices used to identify, create, represent,
distribute, and enable adoption of insights and experiences.
How does By sharing and implementing practices across the organization, it accelerates
it create the learning process to drive cultural change and deliver better results.
value?
At ABI, Knowledge Management includes both the insights and experiences of individuals, and those embedded
in organizational processes and practices. Knowledge Management programs can yield impressive benefits to
individuals and organizations if they are purposeful, concrete and action-oriented. Among the benefits of
Knowledge Management are:
• Improved performance
• Competitive advantages
• Innovation
• Sharing of lessons learned
• Integration
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6.5.1 Good Practices Program

The Good Practices Program is a local idea generation program aimed at nourishing, supporting, and encouraging
a culture of innovation throughout all levels of the organization. Its purpose is to:
• Build a process for submission, review, Any employee can submit an idea to the
implementation and sharing of ideas and practices Good Practices Program if it:
to boost employees’ creativity and initiative
• Is consistent with our 10 Principles
• Enhance employee morale
• Generates cost or time savings or top
• Recognize employees for their contribution to
line growth (revenue)
processes optimization
• Increases efficiency
• Improve efficiency and performance
• Improves key performance indicators
In general, the good practice process follows
these steps: • Has a positive impact on quality and
safety
1. Any member of any team can submit an idea or
practice to his/her manager
2. The manager should validate and check if it fits the criteria
3. The validated practice should be implemented and deliver results
4. The person or team that developed and implemented the practice should be recognized
5. The practice should be shared with others at all levels as applicable
Globally, the Eureka! tool on the Global VPO Portal has been developed to enable good idea submission, as well
as good and best practice sharing across all sites and Zones.
Sites are encouraged to introduce Eureka! to all employees and support them to submit good ideas. The tool also
has a Shopping Cart function that allows users to look for and select ideas from other sites for implementation.
This functionality should also be shown to all employees, as it is another potential source of ways to solve
problems the teams in a site may be struggling with.
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Each department must have a routine established to evaluate submitted ideas for implementation. The criteria
below should be used when considering adoption of a new idea as a good practice. Regardless of whether a
submitted idea is adopted for implementation or not, feedback should always be given to the submitter in a
timely manner.
Departments should also have a routine in place to review Eureka! for good or best practices to be implemented.
This routine is especially helpful for problem solving, falling under the category of “Don’t Re-invent the Wheel”
discussed above in the Problem Solving Block to help teams execute quality PDCAs or ITFs. Finally, the
departments and site must have a process in place to evaluate adopted, implemented good practices in their site
for escalation to Zone as potential Best Practices.
Recognizing submission of good ideas should be incorporated into the site’s recognition program, but also
celebration of adopted good practices, especially if escalated to Zone as Best Practices. Understanding of Zone
Best Practice programs and recognition mechanisms can help to drive submission of ideas.
6.5.2 Good Operating Practices

Good Operating Practices (GOPs) facilitate the sustainability of processes and results. GOPs are typically:
• Associated with a specific KPI
• Represent requirements that have to be fulfilled or routines that must be in place to support
achievement of targets
• Identified as a result of an abnormality treatment, PDCA, ITF or other problem-solving activity
Not every good practice identified is necessarily a GOP. In some cases, this is because the practice has already
been identified and incorporated into standard methods such as VPO processes or Zone best practice SOPs. In
other cases, the good practice may actually fit better as a specification, whether design/engineering-related or
product-related. In this case, the practice should be captured in existing GTS (Global Technical Standards) or PTS
(Process Technical Specifications) documentation. Finally, not all good practices are applicable to other sites.
However, the facility must ensure the good practice is sustained, which can often be accomplished with control
and automation changes or creation of an SOP, followed by training of impacted employees. See the decision
tree below to help determine if a good practice is a GOP or not.
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Global Good Operating Practices are selected and validated by Global KPI owners by analyzing practices across
the organization and capturing the ones that are considered crucial to our success. These practices are
mandatory for all Zones and entities, with only a few exceptions where a particular practice may not be
applicable in a certain environment.
Zone and local teams are accountable for ensuring compliance to the Global Good Operating Practices
and embedding them into their routines. Whenever KPI targets are not achieved, GOP compliance
needs to be re-evaluated again to see if there is any non-compliance affecting results.
Each Zone can generate Zone Good Operating Practices for KPIs that are not covered by Global Good Operating
Practices and these practices will be applied only within the Zone.
It is important that Zones escalate Good Operating Practices to Global KPI

owners via the MCRS as some of them can potentially be included into the
Global Good Operating Practices and shared with all Zones.
There are 3 different levels of GOP sharing:

• Global Level – already defined list of questions to ensure that zones and its locations have processes in
place to achieve specific KPIs. These GOPs are cascaded from Global to Zones.
• Zone Level – Local GOPs escalated to Zone or GOPs which are created right at Zone level and cascaded to
facilities for implementation
• Local Level – local idea generation and implementation with sustainable results for at least 6 months.
Local GOPs with good replicability can be escalated to Zone in order to become Zone GOPs
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Local Level
GOPs are usually developed by ZBS or the local management team within a Supply facility. They may come from
best practices or ideas suggested by employees within the site.
Zone Level
If the GOPs are applicable to other facilities, they are escalated to ZBS and the Zone KPI owner determines if it is
applicable to other facilities in the zone, in which case it becomes a Zone GOP. The Zone KPI owner determines
which facilities should implement the GOP and cascades the GOP to those facilities or all facilities within the
zone. The Zone KPI owner also determines if the GOP could be applied to facilities in other zones, in which case it
is escalated to Global.
Global Level
If the GOPs are applicable to other zones, they are escalated to Global and the Global KPI owner evaluates it for
feasibility, ease of implementation and impact. Upon approval, it becomes a Global GOP. The Global KPI owner
determines which zones and facilities should implement the GOP and cascades the GOP to those zones and
facilities or all facilities in all zones.
The following figure illustrates the process flow of escalating a GOP from a local facility to zone to global, and the
cascade flow from global to zone to the local facilities.
GOP Tracking
As a general rule, key Global GOPs should be tracked monthly for red or underperforming KPIs. However, each
facility must perform a baseline assessment of each global GOP annually, regardless of KPI performance. Each
Zone KPI owner/ZBS functional group should define a manageable calendar for the facilities to track the Global
and Zone GOPs applicable to their area. In some cases, this could entail identifying focus GOPs or splitting a large
GOP into sections for more efficient review, but regardless of the standardized methodology decided by the
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Zone, the facility should have visibility of how its GOP score for a KPI is evolving month over month. The Global
VPO Portal contains a GOP tracking tool to make the tracking process more efficient. The GOP Tool must be used
by sites.
Global Toolkits & Checklists
A Toolkit is a guideline to enable the implementation of a strategic initiative, new VPO process or best practice. It
is not necessarily tied to a KPI or only one KPI. Toolkits are not GOPs and do not replace GOPs…depending on the
topic, they may supplement a GOP to aid execution. In general, Toolkits are not meant to be permanent…once
implemented, they can be archived unless needed for a new operation. They are not required, and should be
avoided unless deemed absolutely necessary for successful implementation. Examples of Toolkits included Global
Packaging’s 70/90 Best of Both Toolkit, the Lubrication Toolkit, the E&F Toolkit and the Passion for Beer Toolkit.
All available Global Toolkits are included within the Global GOP Tool on the Global VPO Portal.
Global Checklists are different than the checklists referred to in the Routine Review Process Block. In this case,
these Checklists have been created by Global functional or KPI owners for specific processes or topics to aid
facilities with execution or troubleshooting. Examples of Global Checklists include PSM – Ammonia, Steam Safety
Management, Brewery Technology and the Pre-Requisite Program. Global Checklists should be completed by the
applicable departments in a facility based on the frequencies defined by the Global or Zone owners. Just as with
Toolkits, Global Checklists may not be permanently needed. All available Global Checklists are included within the
Global GOP Tool on the Global VPO Portal.
The following depicts the typical life cycle of a Global Toolkit:
In the case of both GOPs and Toolkits, the ideal practice is to assign ownership of entire GOP Topics and/or
individual GOP items to the Front Line. They must be empowered to validate adherence to a given GOP or Toolkit
item, take actions to implement applicable items their process is not yet adhering to and track evolution of the
GOP or Toolkit in relation to results evolution, whether at the KPI or PI level.
A great example of this practice is the Safety Champion Team at the NAZ St. Louis brewery. The Safety Champions
took ownership of the Dry Floors GOP as part of their efforts to reduce slip, trip and fall injuries, as well as the
risks and hazards related to them. This team worked with the departments in the brewery to drive the Dry Floors
GOP score from an initial baseline of 39% to 73% in three months without capital investment! Even better,
however…their efforts drove a reduction in slip, trip and fall injuries and related safety hazard and incident
observations to almost 0.
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To access the following materials associated with the Knowledge Management Block, please go to the Global VPO
Portal, VPO Documents section:
Eureka! Ideas Sharing Tool Global VPO Portal
Global GOP Policy VPO.MGT.6.5.2 Good Operating Practices v1.0.doc
Global GOP Tool Global VPO Portal
GOP Tool Upload Template GOP Tool Upload Template.xlsx
6.6 Performance Review Process (PRP)
The Performance Review Process checks the effectiveness of the facility’s

What routine on a monthly, quarterly or annual basis. The PRP defines actions
is it? to take when results are not acceptable and establishes standards to
follow once results are achieved.
How does This process ensures ABI sustains and improves business results in the
it create most effective, easy and smart way.
value?
The Performance Review Process is part of the “Manage to Improve” layer in the VPO Management Pillar, which
enables us to improve the results of the company to a certain desired level. It consists of all the tools that help to
check the results on a Monthly, Quarterly and Yearly basis, and act, taking corrective actions whenever
necessary, to guarantee results improvement (Manage to Improve).
The Performance MCRS is the engine that turns the PDCA cycle in order to guarantee improvement KPI results
achievement by:
• CHECKING: Comparison between improvement KPI/PI planned values and actual results in a previously
defined frequency (Monthly, Quarterly and Yearly)
• ACTING: Take preventive actions (countermeasures) based on the checking of the result (planned x
actual), deviation analysis and Gap Analysis (GapA) report, and identification of demands for
standardization in case results are according to what is expected.
The improvement of the results is carried out by developing and implementing an action plan for each KPI
(Problem Solving Block), checking performance against expected results and taking corrective actions whenever
targets and other Improvement KPIs are not achieved (Performance MCRS block).
In the PRP process:
• Improvement KPIs and PIs are followed-up and challenged to enable decision making based on data and
facts in a timely manner.
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• Project results and procedures are also checked in the PRP.
The PRP must be implemented based on facts and figures (analyses) carried out by using specific tools, such as:
results check, deviation treatment, performance review meetings and visual management.
In order to improve results, the PDCA cycle needs to be carried out by:
• Defining improvement KPIs and PIs and their planned values (Product and Process Indicators - PPI block)
• Developing and implementing an action plan for each KPI (Problem Solving Block)
• Executing actions (Problem Solving Block)
• Checking performance against expected results (Performance MCRS block)
• Taking corrective actions whenever targets are not achieved (Performance MCRS block)
As a reminder from the KPI/PI Dashboards section of the Routine Review Process block (section 5.6.4), the
minimum KPIs and PIs to be tracked monthly at the facility and department level have been defined by Global for
both Beverage and Verticalized operations. These minimums have been selected to ensure all performance
aspects/categories of the business for a given facility or department are covered on the dashboard:
• Safety
• Quality
• People
• Better World
• Efficiency
• Loss
• Productivity
• Maintenance
• Cost
The following are the most critical parts of the Performance Review Process:
• Deep-dive root cause analysis of under-performance

• Development of corrective action proposals to close the gap(s)
These two items make up the bulk of the preparation for PRP meetings.
During the Check portion of the PRP process, teams should not only compare a KPI’s actual performance to its
planned value, but also step back and evaluate the strength of the connections between the Shiftly/Daily
Dashboards and the Monthly Dashboard. As outlined in the Routine Review Process Block as well (see section
5.6.4), the Shiftly/Daily leading PIs should be driving the outcome of the lagging Monthly KPIs. In addition to
deeper root cause analysis outlined below for individual under-performing KPIs, the team must also include
actions to re-align its Dashboards as part of its Performance Review Process if any disconnects are observed.
For an individual under-performing KPI, there are many different ways to analyze the performance gap. Many
methods are the same as outlined in the Plan phase of the PDCA cycle (e.g. Pareto, correlation or boxplot charts,
Process Mapping, Fishbone diagrams, 5-Why, etc). Regardless of the methods used, the Gap Analysis (GapA) tool
is used to report the output of this analysis and document the corrective and root cause-eliminating actions
planned to close the performance gap.
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Gap Analysis (GapA)

The process of analyzing deviations from expected results for a KPI and setting up additional measures to recover
is called gap analysis. Gap analysis should follow problem-solving methodology which requires:
• Problem identification
• Problem observation
• Root cause analysis
These steps must be completed before planning any recovery measures to ensure that root causes are addressed
and resources are not wasted. The recovery measures resulting from a gap analysis can be either corrective or
preventive. As a rule, a combination of both is required to not only rectify the symptom and close the current gap
versus target, but to ensure that the problem will not reoccur in the future.
By itself, the GapA tool is not a problem solving tool—rather it is a report summarizing the outcome of problem
solving activities and the action plan that came from them. Each Zone should define when a GapA must be
completed. In most cases, this definition will be for underperforming KPIs that have been underperforming for a
certain length of time.
If additional measures prove ineffective and the problem reoccurs over several consecutive months (three or
more), it can be an indication to initiate a PDCA or similar problem-solving effort to find a resolution.
The following are the three key outcomes of a strong Performance Review Process:
• Gaps Closed: Ensure that gaps are grouped into SDCA solutions and PDCA problem solving. All solutions,
whether SDCA or PDCA, must be incorporated permanently into the team’s routine (i.e. SDCA loop
closure is done) to ensure performance issues do not reoccur due to the same causes.
• Continuous Improvement: Analyze historical variances to identify chronic problems which are then
prioritized and solved using PDCA or Project Management methods. This analysis is a good input exercise
to the annual strategic planning process (see Section 7 below for more detail).
• Predictive Forecasting & Prevention: Build performance and forecast into the annual review and revision
process for the Fundamental layer, and use the forecast to predict gaps and trigger preventive action to
facilitate KPI results achievement.
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One of the most important ways to follow up results in the Performance Review Process is through the
hierarchical meetings prepared exclusively for each organizational level. The diagram below shows the core
components of a facility’s MCRS, as well as which problem solving and RRP/PRP tools should be used at each
level.
As you can see in the diagram above, the KPI Dashboard plays a key role in the Performance Review MCRS.
To access the following template associated with the Performance Review Process block, please go to the Global
VPO Portal, VPO Documents section:
GapA template VPO.MGT.6.5.3.1 GapA.xlsx
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7. Strategy & Business Cycle
Our strategic plan outlines key initiatives, sets deadlines for them,
What
is it? determines roles and responsibilities and decides how we will measure
the plan’s fulfillment or progress.
How does
It inspires us to go further in reaching new boundaries to achieve our
it create
Dream to build a profitable growth company.
value?
Manage To Target
Problem Project Knowledge Performance
Improve Setting and
Solving Management Management Review
Cascading
Manage To Product and Standards

Business Process Routine
Sustain Process Creation and
Description Mapping Review
7.1 Strategy (Mid and Long-term)
The company strategy is defined by the Executive Board of Management and the Board of Directors, based on
input and proposals from the areas, the current business scenario, as well as the internal and external
environment conditions. Although the strategy itself is not communicated, the approved measures, policies, and
directions to be followed are communicated through the approved three-year plan (3YP) and one-year plan
(1YP).
To cascade the plans and engage teams at the local level, the recommendations for executing this strategic
planning process in each site are to:
• Gather local leadership in an offsite meeting
• Assess the previous year’s performance
• Utilize the VPO Business Cycle to define the key initiatives for the facility to achieve its Dream (3YP)
• Discuss and document local strengths, weaknesses, opportunities, and threats (SWOT analysis)
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The VPO Business Cycle
The 3YP must be:
• In place within the prescribed timeline as defined by the Global BBP and Zone BBP (Budget
& Business Planning) groups and cascaded to all functions and locations within each Zone
• Translated into a more tactical 1YP and cascaded to all functions and locations within each
Zone.
7.2 Yearly Targets and Projects
After the strategic plan is cascaded within each business function from the Global level to the Zone and local
levels, 3YP initiatives are translated into the 1YP. The 1YP is developed utilizing the same VPO Business Cycle. In
practice, this process to create the 1YP may happen concurrently with the 3YP process within a Supply facility.
The 1YP is used to establish Improvement Targets for individual managers for the following year through the TSC
process (see Section 6.2 – Target Setting & Cascading). This process encompasses the whole organization from
EBM to operational levels.
The 1YP is also used to identify strategic Projects through the Project Selection Process. Projects are sponsored
by senior managers to close strategic gaps opened through the 1-Year planning process. Projects are executed
using standard Problem Solving and Project Management methods and tracked through each function’s Project
Management Office (PMO), or through the Belts Program. Once a project is completed, its improvements are
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incorporated into Routine Management on the Operational Level and captured and shared in the Knowledge
Management System.
The annual review process for strategic planning utilizing the VPO Business Cycle begins with the ABI Supply
Dream. Each Supply facility must conduct an annual review of their Plant Dream following their SWOT analysis.
The SWOT analysis is conducted by the facility’s Senior Management Team (SMT, usually comprised of
department heads and the Plant Manager) to identify the Strengths, Weaknesses, Opportunities and Threats
(SWOT) for the entire facility using the standard SWOT template. As one of the outputs of the SWOT analysis, the
facility must define a list of its key initiatives for the upcoming year. These initiatives could be projects (Belt or
otherwise), Capital Projects (Capex), or ITFs. The facility should define no more than 5 initiatives to be executed
via an ITF. Generally, a facility should define no less than 3 ITFs. It is mandatory for all Supply facilities - brewery,
soft drink and vertical, to have a GLY (or GLY-equivalent) ITF. The SWOT analysis should also be used as the main
input to the Target Setting & Cascading process in the facility.
The plant dream should be connected to and aligned with the ABI Supply and Zone Supply Dreams, but should
also be specific to the needs of each facility. The Dream should have 3-5 specific KPIs attached to it so that it is
tangible and measurable throughout the facility. More than 5 KPIs associated with the Dream is not
recommended, as they become hard for everyone in the site to remember and relate to. For example, a Plant
Dream may include specific Safety, Quality and Performance KPI goals, such as LTIs, Consumer Complaints, GLY,
Better World or Loss-related KPIs. The overarching Dream statement, as well as the Dream KPI target values
should be a good challenge or stretch for the facility, but it should be achievable in the next 3-5 years (this
timeline is an approximate recommendation).
Defining a Dream statement and choosing the key KPIs used to track progress towards the Dream are key steps to
align the entire site to achieve it. A Dream statement should be very simple and easy to remember, yet resonate
within the site. Engaging team members from all levels to define the Dream is a great practice. In some sites,
suggestions from the site population have been solicited and then voted upon by the entire site. This helps
everyone to buy into the Dream. In other sites, competitions have been held for Dream logo creation and again
voted upon by the entire site. Many sites have leveraged the creativity of team members to design logos that
incorporate various aspects of a site’s culture and personality. A Dream logo can then be used in visualization all
over the site to keep the Dream front and center for the teams. Several examples of Dreams, their connected
KPIs and Dream logos are shown below.
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Each Department within the facility must also conduct a SWOT analysis and write a Department Dream following
the same guidelines as outlined above for the facility Dream. Each Department Dream should be connected to
and aligned with the Plant Dream.
Once the Department Dream is complete, the facility and each department will conduct a review of their
Business Description and the Process Maps for each of their critical processes to identify and validate the critical
tasks required for each critical process. Each critical task must have a Standard Operating Procedure (SOP) and a
Process Indicator (PI) connected to it.
Dashboards are created containing the critical process KPIs and critical task PIs to enable function of the
Management Control and Reporting System (MCRS).
The MCRS has two processes, the Routine Review Process (RRP) and the Performance Review Process (PRP). Each
of these processes contains standard VPO tools to enable it to function. These tools have been described in detail
earlier in this handbook.
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The 1YP must:
• Be written using the VPO Business Cycle SWOT analysis to set annual targets, project
selection and budget assumptions
• Include benchmarks used across Zones to improve 3YP and 1YP
• Be used to cascade targets to all functional locations within the Zone
• Identify strategic projects through the project selection process
• Align strategic initiatives and budgets from Global to Zone to local levels, and cross-
functionally within the Zone.
• Align Zone functional plans with guidance from Global functions as validated by Global
PPMs
• Have a routine process in place to ensure strategic initiatives and projects are on-track
7.3 Budget (Business Cycle)
Financial discipline and rigor are key to the success and growth of ABI. Therefore, it is critical that the annual
budget is planned with appropriate alignment to the 1YP and has all of the required approvals within the
prescribed timeline as defined by the Global BBP and Zone BBP groups.
Annual budget requirements:
• Strategic initiatives and budgets are aligned from Global to Zone to local levels, and cross-
functionally within the Zone.
• Budget is built using Zero Based Budgeting (ZBB) principles and based on the 1YP, project
plans and functional targets.
• A company target monitoring process is in place to ensure budget compliance and rigor.
• A routine budget review process is in place to ensure the budget is on-track (Budget vs
Actual).
• Root causes for all negative budget variances are identified and corrective actions are
planned and executed to close the gaps.
To access the following documents and templates associated with the Strategy & Business Cycle processes,
please go to the Global VPO Portal, VPO Documents section:
SWOT Template VPO.MGT.6.5.2 SWOT Template
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8. Acronym List
Acronym What it stands for Acronym What it stands for
1YP One-Year Plan OPR Organization & People Review
3YP Three-Year Plan OWD Operational Work Diagnosis
ABI Anheuser-Busch InBev PDCA Plan-Do-Check-Act
ABI-MS ABI Management System PI Process Indicator
BBP Budget & Business Planning PMap Process Map
BD Business Description PMO Project Management Office
BSC Business Service Center PPM Planning & Performance Management
DMAIC Define-Measure-Analyze-Improve-Control PRP Performance Review Process
EBM Executive Board of Management PS Problem Solving
EP Excellence Program PTS Process Technical Specifications
FY Fiscal Year RCA Root Cause Analysis
GAPA Gap Analysis RRP Routine Review Process
GHQ Global Headquarters SDCA Standardize-Do-Check-Act
IBS Information & Business Services SIC Short Interval Control
KM Knowledge Management SKAP Skills Acquisition Process
KPI Key Performance Indicator SoS/EoS Start of Shift/End of Shift
LMS Learning Management System SPOC Single Point of Contact
MCRS Management Control Reporting System SLA Service Level Agreement
MTI Manage to Improve SOP Standard Operating Procedure
MTS Manage to Sustain TOR Terms of Reference
OKR Objective and Key Result TSC Target Setting & Cascading
OPR Organization & People Review VPO Voyager Plant Optimization
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9. Document History
Description of Version
Version Author Date
Main or important changes since previous version
Version as validated by management pillar validation committee March
1.0 C. Forster Mar 2005
1, 2005
7.1 K. Ottomar Nov 2007 Successive revisions from version 1 to 7.1
Redesign of the VPO Management Pillar aligning with the AB InBev
8.0 K. Ottomar Dec 2008
Management System
9.0 N. Pizza / C. McMorrow Feb 2017 Comprehensive update
N. Pizza Added section 3.2 Management Pillar Cycle
9.1 May 2017
C. McMorrow Updated section 6.2 Problem Solving
Update to reflect 2018 additions to the VPO Management Pillar from the
10.0 K. Rippel Nov 2017
BoB SAB integration
11.0 Accenture Oct 2018 Updated the document as part of the VPO Refresh project.
11.1 K. Rippel Feb 2019 Corrected Pillar pyramid typo

Updated VPO Dream and Mission, incorporating VPO Flywheel (section
2.1)
Wording clarifications & updates to various sections:
• Update of all link tables referring to additional standards, templates,
etc
• Added concept of “5S the Job, NOT the Space” (section 4.1)
• Elaboration added for three main ongoing uses of Process Maps,
especially when used for Problem Solving (section 5.4)
• Updated SCE block to include use of Acadia dynamic SOP tool
(section 5.6)
• Substantial elaboration within the RRP block to include InterAction
Log use, Operator Workstation clarifications, 100% Mindset concept
as it applies to the OWS SICs and Visualization requirements outside
12.0 K. Rippel Oct 2019 – Jan 2020
of Workstations and Team Rooms (section 5.7)
• Substantial elaboration within the Problem Solving block, including
the 5-Why Relay Race analogy, Abnormality Treatment
recommended timelines and PDCA/ITF execution guidelines
• Substantial elaboration of project management responsibilities for
capex and operating departments teams.
• Addition of Management of Change material to the Project
Management block formerly housed in the Safety, Environment and
Maintenance Pillars, as well as reference to Quality-related MOC
procedures still housed in the SMS I&T pillar.
• Elaboration within the Knowledge Management Block, including
addition of the GOP Decision Tree, references to the Global GOP
Tool, as well as explanation of Global Toolkits and Global Checklists.
Addition of Front Line-focused leadership and the 100% Mindset to the
first section.
13.0 K. Rippel Dec 2020
Updates to Global Policies, PPIs, TSC, Project Management in addition to
wording updates and clarifications throughout the handbook.
New OWD template merging the Management Pillar version with the
enhanced OWD template from the Quality Pillar,
Addition of best practice examples in TSC (OKR concept, Dynamic PI
Scrum Board) and Knowledge Mgmt (Front Line ownership of GOPs and
14.0 K. Rippel Dec 2021 Toolkits).
Addition of Problem Terminator PowerBI routine expectations in
Problem Solving.
Addition of Technology Change Type to the MOC section of Project
Management.
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2022 Management Pillar Handbook

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What is the purpose of the Management Pillar Handbook?

What is the purpose of the Management Pillar Handbook?

What are the main sections covered in the Management Pillar Handbook?

What are the main sections covered in the Management Pillar Handbook?

MANAGEMENT

For translation purposes, all updates to the 2022

December 2021 14.0

Target Setting Problem Project Knowledge Performance

Product & Standards Routine

Global Company Policies 5S

Confidential ©AB InBev 2018. All rights reserved. Page 2 of 125

6. Manage to Improve (MTI) Layer ............................................................................................... 75

Confidential ©AB InBev 2020. All rights reserved. Page 3 of 125

6.4.2 Management of Change (MOC) ................................................................................................................................... 105

Confidential ©AB InBev 2020. All rights reserved. Page 4 of 125

1. ABI MANAGEMENT SYSTEM

The ABI Management System supports the annual ABI

Management excellence demands an ability ABI Management System Benefits

• Installing a continuous improvement

1.2 ABI MS and Anyone holding

Method Process Knowledge

Our Process Knowledge factor is represented by the Technical Pillars.

• Our full potential is 100% in everything we do.

• 0 injuries for years across entire sites

The VPO Dream:

The VPO Mission:

2.2 VPO Principles to Achieve Results

• Simplification: Keep it simple, put the fundamentals in place

2.3 Results Aspects

Behavior (moral and

2.4 The VPO House

3. VPO MANAGEMENT PILLAR

3.1 VPO Management Pillar Structure

Performance MCRS STRATEGIC OBJECTIVES OF TOP MANAGEMENT

What is the content of the VPO Management Pillar?

Strategy Strategy and Business Cycle

Manage To Problem Project Knowledge Performance

Improve Solving Management Management Review

Business Process Product and Standards Routine

Fundamentals Global Company Policies 5S

3.2 Management Pillar Design Principles

• Level 1: Covers plant organization and structure,

3.3 VPO Business Cycle

VPO Overview VPO Overview Video.mp4

What is The Fundamentals serve as the foundation of the ABI Management

Strategy Strategy and Business Cycle

Target Problem Project Knowledge

Product and Standards

Fundamentals Global Company Policies 5S

4.1 Global Company Policies

The Global Policies Block has three main components:

4.1.1 Global Policies

4.1.2 Crisis and Risk Management

First and Immediate Responses

Business Resumption Plan

o Neighbors around the site

Crisis Training and Simulation

Crisis and Incident Response

4.1.3 Global Risk Management Audit Process

Description Link or Filename