Standards, Compliance and Quality

1

Standards, Compliance & QualityA management frameworkin a regional Shared Services organisation

Edinburgh, 25th May 2010

Andrea VAVASSORIShared Services Director, CROWN Europe

CROWN Europe Shared Services - 25/05/20102

Standards, Compliance & QualityA management frameworkin a regional Shared Services organisation

How a Quality Management System framework supports both standardisation across processes as well as localised complianceand drives continuous improvement


Agenda

The environment

Introduction to CROWN Holdings and CROWN Europe Shared Services

The Framework

Introducing the Quality Management System

How the framework fits the environment and drives continuous improvement

The enablers and the benefits


Introducing Crown Holdings


A global leader in metal packaging

America

39%

Food Spec PackClosuresAerosolsBevcan

Asia

8%

Europe

53%

2009 net sales $7.9 billion

employing 20,500 people

present in 41 countries

public company (NYSE: CCK)



Premier Global Customers


Cans contribute to sustainable development because….

1. Cans prevent product waste

2. Cans keep consumers safe and healthy

3. Cans are economical through the supply chain

4. Cans are produced from viable sources of primary and recycled materials

5. Cans are infinitely recyclable without loss of quality

6. Resource minimization


Closures

CROWN Europe

Food Aerosols

Beverage Speciality

2009 Key Figures

$4.2 billionNet sales

12,000Employees

27Countries

76Plants

Switzerland

GhanaBelgiumMorocco

Finland

Ivory Coast SpainNetherlandsJordan

MadagascarSaudi Arabia

Senegal

South AfricaTunisiaUAEUK

GermanyGreece HungaryIreland

Italy

PolandTurkeyPortugal

Russia

Slovakia France


The current European Shared Services (ESS) organisation results from a long journey

58 accounting centers in Western Europe

38 ERP systems, not ready for Y2K

Each plant virtually independent

Rollout of single ERP

Creation of SSCs in UK, France, Benelux, Germany

Transition and stabilisation

Southern Europe SSCs

Disposal of Plastics businesses

Implementation of Quality Management System

1997

19982003

2004-


Germany & Switzerland, Seesen

Spain & Portugal, Logrono

Benelux, AntwerpUK & Ireland, Wantage

France, St. Ouen

Italy, Parma

Greece, Athens

Now ESS cover most European sites representing approx. 80% of Sales1 organisation, 7 regional SSCs, 130 people

Serving 65 Crown sites

Belonging to 5 business sectors


Process SupportTransaction Processes

ESS cover principally Finance & Accounting processes

Purchase to Pay (P2P)Invoice processing & payment• 380,000 transactions pa• 27% e-invoices

R2RQuality, Control & Compliance

Internal Controls

SarbOxcertification

Quality Mgmt System Fixed Assets

ManufacturingAccounting

P2P

PayrollMixed model• 8 countries in-house• 3 outsourced

Cust. Order to CollectionReceipt of cash and chasing• 220,000 transactions pa• 3,000 customers

Record to Report (R2R)Financial, Statutory, VAT

reporting• 54 legal entities, 70 reporting • Regional Sub-consolidations• Athens stock exchange

COTC


Functions

Processes

Bus

ines

ses R

egions

A

B

C

1

3

2

Fin HR IT …

P2P COTC R2R …

Serving customers and other stakeholders in a matrix organisation across 4 dimensions


Agenda

The environment

CROWN Europe, a multi-dimensional organisation served by a regional SSC model

The Framework

Introducing the Quality Management System




The ESS Management System

Improvement effect

Working ProcessesInput OutputSSCPlantSSCPlant

SLA

SSC experience of

process effectiveness

Plant experience of


Day to Day resolutionof process issues

Customer LiaisonMeeting & Survey

SSC Quality ReviewMeeting

ISO 9000Audits Improvement

Programmes

Actions fromlast review

UpdatedImprovementProgrammes

Actions fromreview

Sarbox Controls

Service Definition


The framework can be divided into 3 parts

Improvement effect


SLA

SSC experience of


Plant experience of






Programmes



Actions fromreview

Sarbox Controls

Service Definition

1. Process Performance

Standards

2. Feedback systems

3. Management & Improvement effect


The 3 parts in detail

Process Performance StandardsService Level Agreements (SLAs)Sarbox controlsOther policies and procedures

Feedback systemsDay to day: resolution of process issuesPeriodic: KPI reporting, meetings, customer surveyAudits: internal, sarbox, ISO 9000

Management and improvement effectQuality review meetings

Project teams

11

22

33

11

22

33

11 33

22


SLAs are the reference document for processes included in scope of services

A standard SLA template

Details service level from SSC

And operating level from business / plant

Flexible to allow for specificitiesBy country

By business

1122

33

Input OutputSSCPlantSSCPlant

Working Processes


Sarbanes-Oxley controls drive standardisation

Identical controls are applied in the different SSCs

web application supports the compliance process

Documented Controls

Process Flowcharts

Testing procedures

Test results and reports

Issue resolution workflow

Quarterly sub-certification

1122

33


Process Performance Standards are complemented by other Policies & Procedures

Such as…

Accounting policies

Code of ethics

Operating procedures

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33


Feedback systems start with day-to-day resolution of process issues

Process issues are identified and dealt with promptly on a day-to-day basis

Customer feedback is welcome and encouraged in any form

Multiple channels available to capture queries and raise issues

An intranet application is used for issue logging, workflow and monitoring

11

2233


Regular periodic feedback systems focus on service performance and customer satisfaction

Monthly KPI reporting

Focus on a limited number of key indicators

Customer liason meetingsThe “Voice of the Customer”

Held at local level with business customers

At European level with business directors and other stakeholders

Annual customer surveyFormal measure of customer satisfaction

Key component of ISO certification of the Quality system

Included in management personal objectives

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2233


Feedback systems are completed by Independent Audits

Internal Audits

Sarbanes Oxley testing“Management” peer testingExternal auditors

ISO 9000 audits and certification

To sustain the system it must be audited

Excellence must be demonstrable

11

2233


Management and improvement effect

Output from feedback systems feed into

Generating improvement actions

Action plans

System enhancements

Change in procedures

Documentation and training

11

2233

SSC Quality Review Meeting Project Teams


The Quality Management Systema service delivery model encompassing key tools and methodologies

Improvement effect


SLA

SSC experience of


Plant experience of






Programmes



Actions fromreview

Sarbox Controls

Service Definition

1. Process Performance

Standards

2. Feedback systems

3. Management & Improvement effect


Agenda

The environment


The Framework

The QMS, a certified service delivery model organising key tools and methodologies in a system





The enablers

One Organisation

Information Systems

And the benefits of the QMS


One Organisation working as one team is the key to connect the model with the operational

1. Regional Shared Service CentresClose to the customersKnowledge of local regulatory and business environment

2. European Process ManagersP2P, COTC, G/L, Fixed AssetsManufacturing Accounting

3. Team meetings

4. Joint project teams

Constant attention to both local and globalFocus on understanding the issues and delivering the adequate solutions

Best practices are shared and adopted as standard


Information systems provide a platform to connect the various elements

Unique ERP (JDE)

Intranet based applications

Workflows

Issue Log

Sarbox

Reporting tools

Automation

E-invoicing


The benefits of the QMS framework

A reference model for the organisation

Part of company-wide “World Class Performance”

Driving continuous improvement

Supporting the communication of Quality approach

Impacting the compliance issues

and generating efficiency


A reference model for the organisation …

Structuring and clarifying role of tools and methodologies used

Balancing conflicting priorities across the multi-dimensional structure

Standardisation vs customisation

Formalisation and documentation vs cultural environment

Cost vs service level


Part of a company-wide “World Class Performance” programme

Started >20 years ago as Total Quality Management

Using a list of concepts, tools and techniques

Problem solving

SOPs

5S

Fishbone

Design of Experiment

6 sigma

…

Across 7 dimensions


Driving continuous improvement

Company culture

Originally developed in the manufacturing area

extended company wide

focused on the effectiveness of the Quality Management System in meeting customer requirements

P

DC

APLAN

DO

(RE)AC

T

P

DC

A

ImprovementStandards

(RE)ACTPLAN

DO

CHECK


Systematically eradicating inconsistencies and imperfections

Cpk >1.33Cpk = 0.2

A B C1234

1122

1212

1221

Design ofExperiment

Customer is unhappy Customer is happy

Procedure

1

2

3

QualityManagementSystem

Flowchart

1

2 a

2 b

34

567

I N

O U T

Voice ofCustomer– CustomerComplaintAnalysis Control

Chart

ParetoDiagram

Waste /Spoilage

Training

StandardOperatingProcedure

Non-

Conformances

Understanding Organizing Improving /Innovating

World-ClassPerformance

SPC


Supporting the communication of the Quality approach

With SSC People

With SSC Customers – the businesses

and other stakeholders - Corporate functions

Reinforced in the Shared Services Mission statement

To be recognised as a source of competitive advantage by providing high quality, cost effective administration and support services to its customers.


Impacting the compliance issues and generating efficiencies

Standardising key controls

Tighten the company internal control environment

Allow efficiency gain in the compliance process

Streamlining the Sarbox certification process

Generating significant savings in audit costs

Drive standardisation

of operating practices

With further cost reductions


Conclusion

The environment


The Framework

The QMS, a certified service delivery model organising key tools and methodologies in a system


One regional SSC organisation effectively using the QMS to achieve a balance between standardisation across processes and localised compliance


www.crowncork.com

Standards, Compliance and Quality

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resolution of process

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