FGV Annual Report 2020

In 2019, the Plantation Business Operational Excellence Roadmap was introduced focusing on three (3) Phases, namely Brilliant at Basic Phase, Achieving Best Performance Phase and Top Quartile Phase. Central to the roadmap are sustainable practices that consist of the holistic implementation of ‘Best in Class’ practices to cover operational, financial, quality, competencies and management. As part of our ongoing effort to drive process improvement and value creation, we have implemented the Continuous Improvement Project (CIP) throughout the Plantation Business. The CIP focuses on improving operational key performance target relating to our core business operations such as cost, quality and productivity. On top of that, to ensure the CIP culture is effectively embedded within our business, we have implemented an initiative to build core competencies of our employees through coaching activity. To date, our CIP practitioners initiative is going well and we aim to create CIP practitioners across all functions in the Plantation Business by 2023. Part of the improvement initiatives covers the workers housing. FGV is strengthening its efforts to upgrade housing conditions in the plantations. In 2018, FGV embarked on workers’ housing improvement projects in a number of locations in Malaysia. The project is almost 89% ready as at end 2020. The housing standards fulfilled regulatory housing requirements of the Malaysian Government and other jurisdictions where FGV operates. SUSTAINABILITY MATTER: OPERATIONAL EXCELLENCE At FGV, the pursuit of operational excellence serves four (4) functions: it results in quality products and services, prevents redundant practices to deliver operational cost reductions, creates new business opportunities, and enhances the image of the company. Operational excellence is integral to robust business performance, and is a priority at FGV. Plantation Part of FGV Plantation Business turnaround strategy is to improve its business operation focusing on enhancing our productivity, optimising production cost, minimising losses and removing wastages, resulting in an improved quality of products and standardised process across the Plantation Business value chain. To achieve this, four (4) key strategies has been identified for the Plantation Business Operational Excellence initiatives, namely: Strengthening Best Practices & Work Methods Driving Behaviour-Based Quality (BBQ) culture Enhancing employee Competencies Forging a culture of Continuous Improvements 01 02 04 03 103 Who We Are How We Operate How We Are Governed Additional Information Sustainability Matters Statement & Discussion By Our Leaders