2017 BEP Handbook v3
2017 BEP Handbook v3
2017 BEP Handbook v3
Handbook
2017
Dear Supply Team,
As employees of a truly global company, our travels take us to all parts of the world. While
it is common to see each country or region display unique cultural differences, we always
find a common bond among us - VPO.
At AB-InBev we have a unique advantage in our breweries and vertical operations. Our
facilities are much more alike than different. We are all utilizing similar facilities and
equipment, producing similar products, and solving similar problems! These similarities
make a core management system all the more powerful because we have peers doing the
same things, all over the world, 24 hours per day. We can learn from each other.
VPO has evolved after years of continuous improvement and the program materials have
been updated accordingly. We are using technology to add power and ease-of-use to our
VPO tools. We have many operations that skillfully utilize all that VPO has to offer, and as a
result, achieve very high levels of performance. The correlation is clear - superior VPO
execution leads to superior results.
VPO begins with you and the Pillar handbooks. All AB-InBev employees should read and
understand the contents. However, VPO really lives on the plant floor, where we make our
products. There is no substitute for seeing VPO in action in our best operations to really
grasp and understand how all the pieces from all the pillars fit together to drive world-class
performance.
Our Brewery Excellence Program (BEP) has evolved as well, to recognize the correlation
between means and results and to recognize and reward high levels of performance.
The time to drive VPO and new levels of performance is now! The person to make it happen
is you!
Pete Kraemer
Chief Supply Officer
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1. Introduction and Objectives
1.1 Introduction
ABI’s Excellence Programs (EPs) are one of our competitive advantages. They provide the
necessary tools, processes and capabilities to support our people in their quest towards
excellence. They are a series of guides towards the attainment of excellence, leading the
way to create the very Best Beer Company Bringing People Together for a Better World. EPs
also offer an objective way of checking compliance to the entire ABI Management System.
AB InBev has chosen “the House concept” to structure the management of the company.
Each function in the company has defined its own house. All of them are built using the
single standard: the roof of the house represents the results, and the vertical pillars reflect
the means by which the results are reached. Vertical pillars are also described as the
technical knowledge of each function/area.
In every house there are 2 horizontal pillars: Management and People. The Management
Pillar crosses all knowledge pillars and ties them in with results. The People pillar is the
foundation and describes the way of managing, leading and engaging our people.
Excellence Programs are also built based on each function house: Means categories (vertical
pillars and horizontal pillars) and the Results category (roof).
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The Excellence Programs are organized as bellow:
Produce beer, Brewery EP (BEP): for Breweries, Soft Drinks and Verticalized plants.
Sell and Market beer, Commercial Excellence: with Sales (SEP) and Marketing (MEP) areas.
Helps produce, sell and market beer, Support Excellence: with Information & Business
Services (IBSEP), Finance (FEP), Corporate Affairs (CAEP), People (PEP), and Supply (SuEP)
areas.
The Brewery Excellence Program measures the efficiency of the VPO house, and recognizes
those best performing plants within their Zones and overall.
Results:
Performance, Financial, Quality,
Safety, Environment, Logistics
and People
Means:
Method – Management pillar
Knowledge – Safety
Quality
Environment
Maintenance
Logistics
Since people are the foundation of everything we do, the VPO People Pillar defines all
policies, procedures and processes to manage and develop our teams and leadership. The
method to sustain and improve results is encompassed in the VPO Management Pillar. It
optimizes and standardizes supply operations across AB-InBev on its journey towards the
Dream to “Bring People Together for a Better World”. By successfully implementing the
method supported by the Process Knowledge Pillars (Maintenance, Quality, Logistics,
Environment, Safety), the necessary behavior will be established to continuously drive and
sustain performance improvement and share best-practices.
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1.2 Objectives of the program
2. General Principle
Through VPO, we measure each Plant to determine that the results have been achieved
through the correct application of the means.
The Means are divided into 7 Pillars (Section 1.1 Introduction).
All of the Pillar questions are structured into blocks of questions covering Fundamentals,
Managing to Sustain and Managing to Improve layers, as visualized in the example below.
These VPO questionnaires, which can be found in the VPO Means Scoring system, are
applicable for all brewing and verticalized facilities and cannot be modified.
Pillar, Block and Department hurdles/thresholds are achieved when means are greater than
or equal to the hurdle, and not through rounding (e.g. 69.94% is not achieving a hurdle of
70%).
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2.1 VPO Maturity Levels
We have 5 VPO Maturity Levels to drive evolution and high performance in our Facilities:
• Basic Level: is the first Level achieved when a Facility has the minimum VPO
implementation – the facility is then considered Qualified in VPO, which is the first
step towards Sustainability.
• Intermediate Level: is the second step in VPO implementation. Higher Means
thresholds need to be achieved – when a Facility achieves this level, it has reached
the second step towards Sustainability.
• Sustainability Level: a Facility in this level is able to show sustainability in its Means
(VPO) to improve its Results (KPIs) year over year.
• Excellence Level: Facilities with excellent performance, not only versus their targets
but also compared to most of their peers. Excellence Program Contenders will come
from this cluster or higher.
• World Class: Facilities with the best performance compared to their peers will be in
this cluster.
In order to move from one Level to the other, a facility must achieve the criteria in the
previous Level first.
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2.1.1 Basic Level
Criteria: to achieve a Means hurdle by Pillar (based on the Plant Average), and to have No
Red Blocks in any of the Pillars (based on the Plant Average).
Thresholds: hurdles per Pillar shown below. A block is considered Red when <30%.
Environmen
Management People Safety Quality Logistics Maintenance
t
Basic
hurdles
50% 50% 50% 55% 50% 50% 50%
Criteria: to achieve a higher Means hurdle by Pillar (based on the Plant Average).
Thresholds:
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Environmen
Management People Safety Quality Logistics Maintenance
t
Intermediate
hurdles
60% 60% 60% 65% 60% 60% 60%
Criteria: to achieve the threshold in the Sustainability Index (Means + Results), showing
Results are sustained or improved year over year.
Sustainability Index
Means
Means points for Sustainability will be allocated on a Pass/Fail basis. All means points will
be earned if the facility achieves the Sustainability hurdle % for all 7 VPO Pillars (Safety,
People, Management, Quality, Maintenance, Logistics and Environment, including
Management and Maintenance Pillars at the department level). No points will be earned if
any pillar fails to achieve its hurdle.
Environmen
Management People Safety Quality Logistics Maintenance
t
Sustainability
hurdles
70% 70% 70% 75% 70% 70% 70%
Results
The Results are split into different KPI baskets, covering People, Safety, Quality,
Performance, Logistics and Cost. A total of 11 KPIs will be used to measure results
performance and each KPI will have a weight assigned in the Sustainability score.
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The Sustainability KPIs are shown below:
In order to achieve Sustainability points for a KPI, the end of year KPI performance level
must be the same or better than the previous year, OR be in the Global top quartile for that
KPI.
For People Turnover, in order to achieve Sustainability points for this KPI, the end of year
results must be better than the hurdle (≤5%).
*Service Level: In order to achieve Sustainability points for the Service Level KPI in 2017, the end of year results
must be better than the target or in the Zone Top Quartile.
*Sensory: The Sensory top quartile for the Soft Drink facilities will be calculated from all of the Soft Drinks Sensory
results, including the Soft Drinks results from Mixed facilities.
In order to achieve Sustainability points for a KPI, the end of year KPI performance level
must be the same or better than the previous year, OR be in the Global top quartile for that
KPI, when compared within their Verticalized Category groups: 1- Lids & Crowns, 2-
Aluminum Cans & Bottles, 3- Glass, 4- Malt. For all other Verticalized Operations, only the
first rule will apply (performance level same or better than the previous year).
For People Turnover, in order to achieve Sustainability points for this KPI, the end of year
results must be better than the hurdle (≤5%).
*Hop, Hop Pellet, Liner, Sand and Glass Lab Ops are out of Global scope for the Sustainability Index.
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Verticalized PACKAGING Operations
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Facility is in the Global top Quartile for a KPI
weight per KPI)
People Turnover ≤ 5%
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2.1.4 Excellence Level
Criteria: to achieve the threshold in the Excellence Index (Means + Results). Facilities will
be classified in 2 groups: Group 1 = Facilities ≥ 3 MM HL; Group 2 = Facilities < 3 MM HL.
Thresholds: ≥80% in the Excellence Index, which includes achieving the threshold in the 4
mandatory KPIs in the basket.
Excellence Index
The Excellence Index is the way that we measure high performance at an operation. It
measures each facility to determine that high performance Results have been achieved
through the correct application of the Means. It is calculated by scoring two separate
categories: Means and Results. The following section describes each category, the hurdle
criteria, and the Excellence score calculation method.
Means
Means points for Excellence will be allocated on a Pass/Fail basis. All Means points will be
earned if a facility achieves the Sustainability hurdle % for all 7 VPO Pillars (Safety, People,
Management, Quality, Maintenance, Logistics and Environment, including Management and
Maintenance Pillars at the department level). No points will be earned if any pillar fails to
achieve its hurdle.
Environmen
Management People Safety Quality Logistics Maintenance
t
Sustainability
hurdles
70% 70% 70% 75% 70% 70% 70%
Results
The Results are split into different KPI baskets, covering People, Safety, Quality,
Performance, Logistics and Cost. A total of 11 KPIs will be used to measure Results
performance, and each KPI will have a weight assigned in the Excellence score.
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KPIs for Excellence – Breweries:
In order to achieve Excellence points for a KPI, the end of year results must be equal or
better than the specific threshold defined for that KPI.
Facilities will be classified in 2 groups:
Threshold
# KPI Code KPI Weight Group 1 Group 2
1 PG-K1091 People Turnover 6% 5% 5%
2 PG-K1115 TRIFR 6% 2.30 0.00
3 PG-K1280 Consumer complaints bottles and cans 6% 425.00 350.00
4 PG-K0510 Water usage Ratio – Brewery 6% 3.00 2.90
PG-K0650 Brewery Total Extract Losses 6% 5.15 5.15
5
PG-K0690 Soft Drink Total Extract Losses 6% 0.80 0.80
6 PG-K0410 TTP 6% 5.00 4.15
7 PG-K0541 Total Purchased Energy per hLN 6% 101.50 101.50
8 SL-K6500 Service Level Brewery VPO Performance* 6% 2% 2%
9 PGK-1113 Brewery Lost Time Injuries (LTI) 6% 0 0
10 PG-K0861 GLY 8% 63% 65%
PG-K1260 Sensory 7.30 7.30
11 8%
PG-K1261 Sensory (Soft drink facilities) 8.10 8.10
Mandatory achievement
* For countries working in a push system (eg: US) the Service Level KPI hurdles for Excellence will be
country specific and aligned between GHQ and Zone.
In order to achieve Excellence points for a KPI, the end of year results must be equal or
better than the specific threshold defined for that KPI.
Facilities will be classified in 4 groups:
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In addition, achieving the thresholds in the Spoilage (for Packaging Operations), Malting
PhysChem Index (for Agricultural Operations), LTI, GLY and Customer Complaints KPIs is
mandatory for the Excellence Index achievement.
* Hop, Hop Pellet, Liner, Sand and Glass Lab Ops are out of Global scope for the Excellence Index.
Threshold
Alu Cans
Lids &
# KPI Weight & Glass
Crowns
Bottles
1 People Turnover 6% 5% 5% 5%
2 TRIFR 6% 0.00 0.00 0.00
3 Global Food Safety Index (GFSI) Readiness* 6% 92.00 92.00 92.00
4 Legal Env Noncompliances 6% 0.00 0.00 0.00
5 Volume Plan Attainment 6% 98.40 98.40 98.40
6 TTP 6% 8.90 36.00 0.18
7 Total Purchased Energy per Unit 6% 125,950 5,180 7,400
8 Spoilage 6% 2.90 2.50 11.90
9 Lost Time Injuries (LTI) 6% 0.00 0.00 0.00
10 GLY equivalent 8% 85.00 88.00 88.30
11 Customer complaints 8% 10.00 4.10 11.50
* Pre-requisite Program (PRP) for Label facilities
Mandatory achievement
Mandatory achievement
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In order to be considered Excellent, a Facility must achieve, by the end of the year, an
Excellence score of 80% or greater from the sum of the 2 categories (Means and Results),
according to the criteria below:
Means - Sustainability hurdle % for all 7 pillars must be achieved
Results - Must achieve at least 50% out of a possible 70% score in the KPIs
category, including the 4 mandatory KPIs in the basket.
Therefore, the sum of the scores for the 2 categories must be > 80%:
Criteria: to achieve the threshold in the World Class Index. Facilities will be classified in 2
groups: Group 1 = Facilities ≥ 3 MM HL; Group 2 = Facilities < 3 MM HL.
Thresholds: ≥80% in the World Class Index + achievement of the threshold of 4 mandatory
KPIs.
The World Class Index is the way that we measure top performance at our operations. It
measures each facility to determine that top performance results have been achieved
through the correct application of the Means. It is calculated by scoring two separate
categories: Means and Results. The following section describes each category, the hurdle
criteria, and the World Class score calculation method.
Means
Means points for World Class will be allocated on a Pass/Fail basis. All Means points will be
earned if a facility achieves the sustainability hurdle % for all 7 VPO Pillars (Safety, People,
Management, Quality, Maintenance, Logistics and Environment, including Management and
Maintenance Pillars at the department level). No points will be earned if any pillar fails to
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achieve its hurdle.
Environmen
Management People Safety Quality Logistics Maintenance
t
Sustainability
hurdles
70% 70% 70% 75% 70% 70% 70%
Results
The Results are split into different KPI baskets, covering People, Safety, Quality,
Performance, Logistics and Cost. A total of 11 KPIs will be used to measure Results
performance and each KPI will have a weight assigned in the World Class score.
In order to achieve World Class points for a KPI, the end of year results must be equal or
better than the specific threshold defined for that KPI.
Facilities will be classified in 2 groups:
Threshold
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Mandatory achievement
* For countries working in a push system (eg: US) the Service Level KPI hurdles for World Class will be
country specific and aligned between GHQ and Zone.
In order to achieve World Class points for a KPI, the end of year results must be equal or
better than the specific threshold defined for that KPI.
Facilities will be classified in 4 groups:
* Hop, Hop Pellet, Liner, Sand and Glass Lab Ops are out of Global scope for the World Class Index.
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# KPI Weight Malt
Mandatory achievement
The Brewery Excellence Program is divided into 2 categories: Means and Results.
• The Means are divided into the 7 VPO pillars, with a total amount of points allocated
to each Pillar.
• The Results are split into different VPO KPI baskets, covering KPI Performance,
Financials, Safety, Environment, Quality, Logistics and People.
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The points allocated for the Means and the Results categories have the same weight (50%
of the points allocated for Means and 50% for Results), as they are both equally important.
The maximum points that can be achieved in the Brewery Excellence program is:
Means category: 500 points
Results category: 500 points
Means Category
Results Category
Beverage Verticalized
Operations Operations*
- Performance 125 points 155 points
- Financials 55 points 40 points
- Quality 125 points 80 points
- Safety 60 points 70 points
- Better World 60 points 70 points
- Logistics 55 points 55 points
- People 20 points 30 points
Total 500 points 500 points
*The points’ distribution for Verticalized Operations changes depending on the VOP Category a facility
resides in (details on the Appendix).
The BEP will use data collected directly from the Global KPI Reporting Tool and Means
Scoring Tool. Facilities will have time to review scores and conduct a review for accuracy,
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but must follow existing company time guidelines and procedures to correct data or revise
budget targets in the system, as only data in the system will be counted.
Disqualification Criteria
During the BEP, a facility can be disqualified for any of the following reasons, which must be
communicated to Global Supply via the routine MCRS between the Zone and Global
functions.
A facility has a red block (plant average score, not individual department score)
within any pillar from the Zone validated self-assessment 4 (December)
Failure to achieve the Sustainability Index
Failure to achieve the Excellence Index
Failure to have LTIs equal to or below 1 for facilities with ≥ 501 employees and zero
LTIs for facilities with ≤ 500 employees
Occurrence of a fatal occupational accident. Scope: Own employees (including
temporary workers, seasonal workers, student workers etc) and Contractors (service
providers and projects). Commuting fatal accidents are not in scope.
Failure in reporting a LTI, MDI, MTI or severe incident
Occurrence of a severe environmental release or spill
A significant safety or environmental incident which generates negative media
exposure
If there is dispersion ≥10% of a facility’s Pillar score between the Zone Q4 validated
self-assessment and the final Global audit assessment (conducted in Feb/Mar 2018).
Red Pillar at Q4 Zone Validation Audit
Timeline (Section 3.6) deviations will result in BEP disqualification
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Verticalized Operations
Red Status on Supplier Assessment for any month of current year (Red Status for 1
or more months)
Failure to achieve Minimum Mandatory Sampling Plan (MMSP) equal or greater than
98%
The Operation cannot have any relevant facility-related quality incidents that result
in a recall. A recall is defined as the removal of products from the market due to food
safety issues that result in a real or perceived risk to the consumer and which
requires media and/or regulatory involvement
Product Blocking Procedure Failure may disqualify a facility from Zone and Global
BEP competition
The BEP recognizes sustainable excellence in Means and Results. As we undertake the
Sustainability journey together, we can expect to continuously raise the bar year after year
in Means performance to enable us to be able to deliver continuous improvement in Results.
An operation at the Sustainable level has consistently met and exceeded Means and Results
hurdle rates to demonstrate the use of the VPO process.
A brewery that is below the Sustainability Index Hurdle at H2 Zone Means and Results
Validation will be disqualified from the 2017 BEP as well as receive a Formal Letter from the
Zone Supply VP reminding them they must recover Sustainability Index Rates by end of the
following year. The Facility will also require the submission of a plan to Zone and Global.
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Flow chart to clarify Brewery Requirements to be BEP eligible and consequences to
those failing to achieve and maintain Sustainability
Sustainability Index was 1) The Facility and BOP receive a Formal Letter from
achieved at H2 Zone the Zone Supply VP reminding them they must recover
No
Validation Sustainability Index Rates by end of the following year.
(Means + Results) ≥ 80%
2) The facility should be placed at the Basic or
Intermediate level (according to their validated Means
Yes scores). This will determine what their next step will
be.
Yes
Zero Quality, No
Environment, Media BEP Disqualification
Issues or major Audit
Findings?
Yes
Yes
BEP eligible
All Facilities should have visual communication showing at which VPO Level they
are at.
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3.3 Roles and Responsibilities
At the Global level, the VP Logistics and Operations is accountable for the program, and in
the Zone, the Supply VP is accountable for the Program together with the People Supply
Director. They are accountable for the launch & implementation of the program.
On a Global and Zone level, the Global VPO Program Owner and the Zone People and
Management Specialists are responsible for the launch, roll out and implementation of the
Brewery Excellence Program.
The Target Audience for the 2017 Brewery Excellence Program is all Supply Operations
having formally achieved the Excellence or World Class levels up to the end of 2017, but
excluding any facilities which fall under disqualification criteria listed in section 3.0.
Brewery, Soft drink and Mixed brewery / soft drink operations comprise a class of
operations within the BEP while Verticalized operations form the other class.
Verticalized plants must be treated in Means and Results as a separate entity (e.g. for
combined Malt and Brewing plants), however if a disqualification situation occurs in the
combined entity, discretion must be used in terms of the disqualification decision.
Manufacturing operations that have combined facilities (both brewing and soft drinks) will
use a weighted average for the calculation of the Means and Results. Verticalized operations
in non-combined operations (e.g. can or malting plants) will be audited according to the
departmental structure found in the Verticalized VPO questionnaires. The Production
departments in these Operations should be scored as shown below.
Production 01 Production 02
*Malt: if independent offsite storage of malt or grain, Prod 01 and Prod 02 can be scored.
*Can: if NO aluminum bottle production, score N/A for Prod 02.
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3.5 Brewery Excellence Program material
The Brewery Excellence Program has the following materials to be used by each program
owner and pillar owners:
Brewery Excellence Program Book: program guidelines and rules
VPO Questionnaires: questions to be scored by Pillar – for submission of Self-
Assessments during the year
Pillar Books and Supporting Documents
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3.7. Concessions and non-applicable items
Pillar Question NA
request form.xlsx
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This score is to be validated by the Zone. Zones must also monitor the sustainability
of Supply operations and formally inform them about the consequences of failing to
achieve sustainability by Q4.
Q3 self-assessment: to take place in September. It is an intermediate check point
for the Zone, based on the evolution of the facilities in June, July and August.
Q4 self-assessment: to take place in December 2017. It will be validated by the
Zone and will account for 70% of Means points in BEP.
Results KPIs in the BEP are the ones validated at the Global level by each Global function
responsible and Global PPM.
The BEP will use data collected directly from the Global VPO KPI Reporting tool, and Supply
operations will have time to review scores and conduct a review for accuracy, but must
follow existing company time guidelines and procedures to correct any data or target
revisions in the system, as only data in the system will be considered.
The Results Assessment Report will be used formally once per year in January 2018 to
validate the year end results against facility targets, or potentially Zone or Globally
stretched targets. The Zones and facilities can use the Result Assessment Report on a
monthly basis as a part of the Zone routine tracking and monitoring process. On a quarterly
basis (April, July, October, January), the quarterly results can be used to give a top 3
average score per Zone.
Absolute performance improvement and Results are also an essential part of Sustainability,
as they are an outcome of the Means process. The ability to demonstrate constant
improvements in Results is an indication of VPO sustainability in the operation. Those
operations which continually challenge themselves with aggressive targets and goals should
be encouraged and recognized appropriately. BEP Results scoring will recognize aggressive
year over year performance target setting by providing partial achievement credit of such
targets.
• Full Credit – Achieving the Zone validated targets in the operation’s Results basket
will result in all associated BEP points to be assigned to that operation.
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• Partial Credit – If a brewery or a verticalized facility fails to achieve a Results basket
target but shows evolution Year over Year, partial credit will be awarded for that
particular target:
• Yes/No: Individual Targets that do not apply PA are “Go” or “No Go”.
E.g. ZBB does NOT apply Partial Achievement.
• Nominal Targets: On values in absolute terms (ONLY EBITDA, CASH
FLOW) the linear rule of 95% to 100% is applied.
• Organic Targets: For all other targets with numerical values (Volume,
SOM, VIC, CAPEX etc.) the existing Partial Achievement rule is applied
(80%-90%).
• The partial achievement rule follows the practice where the performance is
assessed organically vs. the previous performance period to evaluate the
percent (%) of the result. If a facility fails to show year over year evolution
for a particular target, no partial credit will be awarded regardless of the
score. The operation would only achieve points for meeting the target.
Standard PA rules will be used for financial targets (AC - LY vs. BU - LY).
All Targets will be assessed using data in the Global VPO KPI Tool.
Expressed by 30% of Q2 and 70% of Q4 scores of the pillar’s validated Means results + EOY
KPI Results:
(0.3 x Q2 Zone validated self-assessment) + (0.7 x Q4 Zone validated self-assessment final
evaluation) + Full year results = Total amount of points (Means and Results)
The Global VPO Director will coordinate the auditing of the Zone Excellence Program
winners. A Global Audit team will be created and the audit will be based on the Zone
validated Q4 self-assessment Means and Results audit. The Global Audit team will be
comprised of the Global Supply KPI / Pillar category owners, plus Zone Pillar expertise
where necessary.
If a disqualification situation occurs during the Global auditing of the top 3 Zone breweries
and verticalized plants, the subsequent Zone facilities in the ranking order (4 th, 5th, 6th and
7th place), may take the place of one of the top 3. Global Supply may choose to invite an
eligible facility from a different Zone to compete in the BEP. This will be a Global Supply
decision.
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The Global Audit team has the authority to adjust the Zone scores according to the Brewery
Excellence Program rules; their decision is final.
The objective of the Global Audit is to validate the Means categories and Results. It will also
help to identify possible improvement points and best practices. The facility audit will take
place in the Zone winning facility, or the facility which has the highest Zone Validated Final
Score and is not disqualified.
3.12 Recognition for the Zone and Global Brewery Excellence Program Winners
Zone Recognition
The Zone is responsible for recognizing its top facilities. Only collective recognition is
allowed, no individual performance should be recognized in the program. The Recognition
should occur during the Zone Annual Supply Convention and the communication of the best
performing entities should be totally confidential until the official announcement is made.
Global Recognition
There will be a Global recognition, taking place on an annual basis at the Senior Leadership
Convention (SLC) event, to recognize the TOP 3 Brewery/Soft Drink Zone Excellence
winners (gold, silver and bronze), plus the TOP 3 Verticalized facilities, based on total
amount of Zone / Global validated Points (Means + Results).
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APPENDIX
Safety
Applicability: Brewery, Soft Drinks
Owner Global Safety Pillar Owner
Definition Source
GKPIT
Safety
Applicability: Brewery, Soft Drinks
Owner Global Safety Pillar Owner
Safety
Applicability: Brewery, Soft Drinks
Owner Global Safety Pillar Owner
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Safety
Applicability: Brewery, Soft Drinks
Owner Global Safety Pillar Owner
Definition Source
# of non-compliant of the required effluent quality parameter in certain period. GKPIT
Environment
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Applicability: Brewery, Soft Drinks
Owner Global Environment Pillar Owner
Environment
Applicability: Brewery, Soft Drinks
Owner Global Environment Pillar Owner
Environment
Applicability: Brewery, Soft Drinks
Owner Global Environment Pillar Owner
Definition Source
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Hectoliters of water used to produce one normalized hectoliter of product GKPIT
Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner
Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner
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Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner
Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner
Quality
Applicability: Brewery or Mixed Facility for Beer
Owner Global Quality Pillar Owner
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
of negative characteristics) from each plant assessed by Brewery Support
tasting panel. Definition: Samples of global and major brands sent by
each site to the Zone BS taste panel for analysis on a monthly basis
(published schedule). Samples of Global Brands tasted using the Branded
Sensory Quality Rating resulting in a branded SQR for each samples
(recalculated to a 1-9 scale). Samples of Major Brands tasted using the
category Sensory Quality Rating procedure resulting in a category Sensory
Quality Rating score for each sample (1-9 scale) This is a level 2 KPI.
Quality
Applicability: Soft Drinks or Mixed Facility for Soft Drinks
Owner Global Quality Pillar Owner
Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner
Quality
Applicability: Brewery
Owner Global Quality Pillar Owner
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Indicator Name Calculation Method Scoring
Packaging The number of analysis in 10 points if YTD AC ≥ YTD BU
Appearance (in the compliance with defined packaging 0 points if YTD AC < YTD BU
Market) PG-K1560 standards, based on mandatory
(only for Breweries) minimum sample schedule of
samples procured in key markets
Definition Source
Objective assessment of the packaging quality in the market based on the GKPIT
evaluation of samples procured in the market at predefined POS
Quality
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner
Performance
Applicability: Brewery, Soft Drinks
Owner Global Packaging Director
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
special kegging lines
Definition Source
GKPIT
Performance
Applicability: Brewery, Soft Drinks
Owner Global Packaging Director
Performance
Applicability: Brewery, Soft Drinks
Owner Global Quality Pillar Owner
Performance
Applicability: Brewery, Soft Drinks
Owner Global Maintenance Pillar Owner
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Indicator Name Calculation Method Scoring
TTP PG-K0410 (PG-K0110+PG-K0340)/(PG- 20 points if YTD AC ≤ YTD BU
R1010+PG-R1020)*1000 0 points if YTD AC > YTD BU
Definition Source
This metric measures the technical headcount required to attend a plant (from GKPIT
raw materials to packaged goods) to produce total volume in that plant.
Standardized Hectoliters (hl N) + Total Net Repacked Volume (hl) / Total
Hours Attended
Performance
Applicability: Brewery, Soft Drinks
Owner Global Maintenance Pillar Owner
Performance
Applicability: Brewery, Soft Drinks
Owner Global Environment Pillar Owner
Definition Source
Total Energy Purchased by the plant divided by Standardized hectoliter of GKPIT
production
Logistics
Applicability: Brewery, Soft Drinks
Owner Global Logistics Pillar Owner
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Volume Required (Customer +
Wholesaler + Inter-zone Export)
including its supplied DCs
Definition Source
Service Level Brewery VPO Performance KPI reflects the unavailability in the entire GKPIT
supply chain, it measures how much required order volume (HL) from customers,
wholesalers and inter-zone export that was not delivered OTIF in the brewery and
its supplied DCs (defined in SNP - allocation plan at SKU level) due to the reason
of unavailability, in the total required order volume from customers, wholesalers
and inter-zone export in the brewery and its supplied DCs.
Logistics
Applicability: Brewery, Soft Drinks
Owner Global Logistics Pillar Owner
Logistics
Applicability: Brewery, Soft Drinks
Owner Global Logistics Pillar Owner
Logistics
Applicability: Brewery, Soft Drinks
Owner Global Logistics Pillar Owner
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Indicator Name Calculation Method Scoring
Downtime caused by DCBL = 100 * Total Logistics Causes 10 points if YTD AC ≤ YTD BU
Logistics Downtime / Total Available 0 points if YTD AC >YTD BU
LS-K8021 Production Line Time
Definition Source
Measures the percentage of time lost due to mistakes over logistics tasks or GKPIT
activities (direct affect over the stoppage of production line filler)
Financials
Applicability: Brewery, Soft Drinks
Owner Global PPM
Financials
Applicability: Brewery, Soft Drinks
Owner Global PPM
Financials
Applicability: Brewery, Soft Drinks
Owner Global PPM
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Excludes volume/mix and currency impact. The actual should show a positive SCFD
performance variance figure.
Financials
Applicability: Brewery, Soft Drinks
Owner Global PPM
People
Applicability: Brewery, Soft Drinks
Owner Global Talent Management Director
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
1.1.1 Beverage Results Basket Summary
Points
KPI Basket KPIs Brewery SD Mixed
Total Recordable Injuries Frequency Rate (TRIFR) 30 30 30
Injury Severity Rate 10 10 10
Safety
LTI 10 10 10
CLTI 10 10 10
Number of legal environmental non-compliances 15 15 15
% Non-compliance of Final Treated Effluent 15 15 15
Environment % of Recycling 5 5 5
Number of Environmental complaints by neighbours or organisations 5 5 5
Water Usage Ratio 20 20 20
Plant PhysChem Index (%) 15 20 15
Plant Micro index (%) 15 20 15
Plant Packaging Index (%) 10 15 10
Pre-Requisite Program (PRP) 5 15 5
Quality
Brewery Support Sensory Index (only Brewery) 20 - 20
Consumer Complaints bottles and cans (ppb) - YTD 30 35 30
Packaging Appearance in the market (only Brewery) 10 - 10
Global Food Safety Index (GFSI) 20 20 20
GLY consolidated 30 30 30
LEF consolidated 15 15 15
18 - Brewery
Total Extract Losses (%) 25 25
Performance 7 - SD
TTP 20 20 20
MTBF 10 10 10
Total Purchased Energy 25 25 25
Service Level Brewery VPO Performance 15 15 15
Inventory Out of Range 15 15 15
Logistics
Plant Network Productivity 15 15 15
Downtime Caused by Logistics 10 10 10
Total Operational VIC Performance variance 25 25 25
Total Viability (Upholding ESL + Q) CAPEX for Production 5 5 5
Financials
Total TIER 1 VLC Performance variance 15 15 15
FILC 10 10 10
People People Turnover 20 20 20
Total 500 500 500
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1.2 Verticalized Results Basket
Safety
Applicability: Verticalized Operations
Owner Global Safety Pillar Owner
Safety
Applicability: Verticalized Operations
Owner Global Safety Pillar Owner
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Safety
Applicability: Verticalized Operations
Owner Global Safety Pillar Owner
Safety
Applicability: Verticalized Operations
Owner Global Safety Pillar Owner
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Better World
Applicability: Verticalized Operations
Owner Global Environment Pillar Owner
Better World
Applicability: Verticalized Operations
Owner Global Environmental Pillar Owner
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Better World
Applicability: Verticalized Operations
Owner Global Environmental Pillar Owner
Better World
Applicability: Verticalized Operations
Owner Global Environmental Pillar Owner
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
For Others:
(XX-R2160 + XX-R2170 + XX-
R2180 + XX-R2190 - (XX-R2195 +
XX-R2196)) / XX-R2000
Quality
Applicability: Verticalized Operations
Owner Global Quality Director – Verticalized Operations
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Quality
Applicability: Verticalized Operations
Owner Global Quality Director – Verticalized Operations
Quality
Applicability: Verticalized Operations
Owner Global Quality Director – Verticalized Operations
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
MA for Malting, GL for Glass)
Definition Source
The objective of the Global Food Safety Initiative (GFSI) KPI is to assess the GKPIT
readiness of a Plant or Zone to a GFSI Audit.
Quality
Applicability: Malting Operations
Owner Global Quality Director – Malting Operations
Quality
Applicability: Labels Operations
Owner Global Quality Director – Verticalized Operations
Performance
Applicability: Verticalized Operations
Owner Global Directors - Verticalized Operations
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
CROWNS Gross Line yield (GLY) - CR-R0880 < YTD BU
LIDS Gross Line Yield (GLY) - LD-R0880
Definition Source
Determined by commodity (according to definitions on KPI Book) GKPIT
Performance
Applicability: Verticalized Operations
Owner Global Directors - Verticalized Operations
Performance
Applicability: Malting Operations
Global Director – Malting Operations
((MA-R1100-MA-K1100)/MA-
R1100)*100
Definition Source
Clean barley defined as the weight of the barley sent to steep after all GKPIT
cleaning / aspiration processes have occurred. If a weigh scale is unavailable
after cleaning processes then an estimation of the clean-out % should be
done.
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Performance
Applicability: Verticalized Operations
Owner Global Directors - Verticalized Operations
Performance
Applicability: Verticalized
Owner Global Directors - Verticalized Operations
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Performance
Applicability: Verticalized
Owner Global Directors - Verticalized Operations
Performance
Applicability: Verticalized Operations
Owner Global Environment Pillar Owner
Logistics
Applicability: Verticalized Operations
Owner Global Logistics Pillar Owner
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Malting Operations.
0 points if YTD AC >YTD BU
Definition Source
Total Logistics cost divided by total production. Total Logistics Cost is defined SCFD & GKPIT
per SCFD.
Logistics
Applicability: Verticalized Operations
Owner Global Logistics Pillar Owner
Financials
Applicability: Verticalized Operations
Owner Global PPM
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
defined per SCFD as Operational VIC, Other VIC, FIC, but should exclude
commodity cost (source: CCT - Commodity Coverage Tracker). Operational
or other VIC should include cost of losses as applicable netted by byproduct
revenue. Cost of goods does not include costs below EBITDA such as
Depreciation or Amortization costs.
People
Applicability: Verticalized Operations
Owner Global Talent Management Director
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1.2.1 Verticalized Results Basket – Summary of Applicability and Points by Commodity
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
2.0 KPIs with partial achievement
2.1 Beverage Operations
KPI Partial
Basket KPI
Code Achievement
Safety Total Recordable Injuries Frequency Rate (TRIFR) PG-K1115 Yes
Safety Brewery Injury Severity Rate PG-K1122 Yes
Better World % non-compliance of Final Treated Effluent PG-K1795 Yes
Better World % of Recycling PG-K1701 Yes
Better World Water usage Ratio PG-K0510 Yes
Quality Plant PhysChem Index PG-K1211 Yes
Quality Plant Micro Index PG-K1221 Yes
Quality Plant Packaging Index PG-K1250 Yes
Quality Pre-Requisite Program (PRP) PG-K1271 Yes
Quality Brewery Support Sensory Index PG-K1260 Yes
Quality Soft Drink Sensory Index PG-K1261 Yes
Quality Consumer complaints bottles and cans PG-K1280 Yes
Quality Packaging Appearance (in the Market) PG-K1560 Yes
Performance GLY - Plant Packaging Global Consolidation (excluding blowing) PG-K0861 Yes
Performance LEF - Plant Packaging Global Consolidation (excluding blowing) PG-K1361 Yes
Performance Brewery Total Extract Losses PG-K0650 Yes
Performance TTP PG-K0410 Yes
Performance Mean Time Before Failure PG-K1660 Yes
Performance Total Purchased Energy PG-K0541 Yes
Logistics Inventory Out of Range LS-K8250 Yes
Logistics Plant Network Productivity LP-K1110 Yes
Logistics Downtime caused by Logistics LS-K8021 Yes
KPI Partial
Basket KPI
Code Achievement
Safety LTI PGK-1113 No
Safety CLTI PGK 1411 No
Better World Number of legal environmental non-compliances PG-K1771 No
Number of Environmental complaints by neighbours or
Better World PG-R5613 No
organisations
Quality Global Food Safety Index (GFSI) Readiness PG-K1521 No
Logistics Service Level SL-K6500 No
Finance Total Operational VIC Performance variance - No
Finance Total Viability (Upholding ESL+Q) CAPEX CAPEX for production - No
Finance Total Tier 1 VLC Perf Variance - No
Finance FILC - No
People People Turnover PG-K1091 No
2.2 Verticalized Operations
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Partial
Basket KPI KPI Code
Achievement
Safety Total Recordable Injuries Frequency Rate (TRIFR) XX-K1415 Yes
Safety Brewery Injury Severity Rate XX-K1421 Yes
Better World Number of legal non-compliances (MAJOR) XX-K1771 Yes
Better World % non-compliance of Final Treated Effluent XX-K7010 Yes
Better World % of Recycling XX-K1700 Yes
Better World Water usage Ratio XX-K0510 Yes
Cans and Lids: XX-K1501
Quality Customer complaints Malting: MA-K1482 Yes
Others: XX-K1500
Quality Malting Plant PhysChem Index XX-K1111 Yes
Glass: GL-K1005
Performance GLY equivalent (except for Malting operations) Yes
Others: XX-R0880
Performance Total Technical Productivity (Direct Productivity) XX-K2201 Yes
Partial
Basket KPI KPI Code
Achievement
Safety LTI XX-K1402 No
Safety CLTI XX-K1410 No
Quality Global Food Safety Index (GFSI) Readiness XX-K1280 No
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3.0 Questionnaire Scoring Weight
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4.0 Results Basket for Mixed Plants
Quality
Applicability: Mixed Brewery and Soft Drinks
Partial
Indicator Name Code Source Owner Scoring
Achievement
VOLUME WEIGHTED Volume
AVERAGE weighted
Artemio
Plant PhysChem Index average PG- GKPIT 15 points Yes
Pigatto
Beer - Plant PhysChem K1211 and
Index SD PG-K1211
Volume
VOLUME WEIGHTED
weighted
AVERAGE Plant Micro Artemio
average PG- GKPIT 15 points Yes
Index Beer - Plant Micro Pigatto
K1221 and
Index SD
PG-K1221
Volume
VOLUME WEIGHTED
weighted
AVERAGE Plant Artemio
average PG- GKPIT 10 points Yes
Packaging Index Beer - Pigattto
K1250 and
Plant Packaging Index SD
PG-K1251
VOLUME WEIGHTED Volume
AVERAGE Pre-Requisite weighted
Artemio
Program (PRP) Beer - average PG- GKPIT 5 points Yes
Pigatto
Pre-Requisite Program K1271 and
(PRP) SD PG-K1273
Brewery Support Sensory Artemio
PG-K1260 GKPIT 20 points Yes
Index (only Brewery) Pigatto
VOLUME WEIGHTED
Volume
AVERAGE Consumer
weighted
complaints bottles and Artemio
average PG- GKPIT 30 points Yes
cans Beer - Consumer Pigatto
K1280 and
complaints bottles and
PG-K1281
cans SD
Packaging Appearance (in
Artemio
the Market) PG-K1560 GKPIT 10 points Yes
Pigatto
(only Brewery)
Global Food Safety Index
Artemio
(GFSI) Readiness - Plant PG-K1521 GKPIT 20 points No
Pigatto
Score
125
Total Quality Basket
points
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© Anheuser-Busch InBev NV/SA 2017 Confidential Document — for internal use only
Performance
Applicability: Mixed Brewery and Soft Drinks
Partial
Indicator Name Code Source Owner Scoring
Achievement
GLY - Plant Packaging
Global 30
Global Consolidation PG-K0861 GKPIT Yes
Packaging points
(excluding blowing)
LEF - Plant Packaging
Global 15
Global Consolidation PG-K1361 GKPIT Yes
Packaging points
(excluding blowing)
Brewery Total Extract Global 18
PG-K0650 GKPIT Yes
Losses Quality points
Soft Drinks + Fabs Total Global
PG-K0690 GKPIT 7 points Yes
Extract Losses Quality
TTP - Plant Packaging PG – 20
GKPIT Yes
Global Consolidation K0410 points
Mean Time to Failure - Global
PG – 10
Plant Packaging Global GKPIT Maintenan Yes
K1660 points
Consolidation ce
Total Purchased Energy -
Global 25
Plant Packaging Global PG-K0541 GKPIT Yes
E&F points
Consolidation
125
Total Performance Basket
points
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This BEP handbook will also be posted to our Global VPO Portal where
any future required updates in 2017 will be maintained.
https://anheuserbuschinbev-d8c15f9877fe61.sharepoint.com/sites/VPO/IBEVVPO
Go to: Home Page > Complimentaries > BEP > Handbook
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