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MBU Operating Model · Jhunan Factory, Taiwan — Imperial Tobacco Group
Imperial Tobacco Taiwan (ITTM)
From Compliance to Contribution — MBUs Become the ITTM Way of Working
Imperial Tobacco Group · Jhunan Factory, Taiwan · MBU Model · Walking Tours · Partnership Charts · 1,035 CI Ideas in FY16-17
68%
Tax Stamp OEE
(from 43%)
(from 43%)
1,035
CI ideas in FY16-17
(from 57)
(from 57)
+19%
Productivity gain
through optimisation
through optimisation
ITTM
MBU becomes the
ITTM Way of Working
ITTM Way of Working
Context
The MBU as the Keystone for Sustainable Improvement
Imperial Tobacco Taiwan (ITTM) at the Jhunan factory launched a site-wide transformation in 2016 to move from a compliance-focused environment into a purpose-driven, goal-aligned organisation. Prior initiatives — Visual Factory and the Operational Excellence Programme — had created structure but had not yet created ownership. The Mini Business Unit (MBU) model became the keystone: the architecture that connected prior work, cascaded strategy to the frontline, and made sustainable improvement a daily team responsibility rather than a management function.
By the end of the implementation, MBUs had not just improved OEE and generated ideas; they had become the ITTM Way of Working.
By the end of the implementation, MBUs had not just improved OEE and generated ideas; they had become the ITTM Way of Working.
The Challenge
Structure Without Ownership — Goals Without Alignment
Despite prior improvement work, leadership routines and frontline practices remained disconnected. Goal alignment was neither vertical nor horizontal. Teams lacked ownership of their KPIs, and complex lines — Tax Stamp and the 21's format — faced performance instability requiring team-level problem-solving. The reactive mindset needed to shift before the technical problems could be sustainably resolved.
The Approach
Goal Alignment, Walking Tours, and the Architecture of Ownership
1
MBU Design and Vertical Goal CascadeMBUs defined by machine line, process function, and department scope. FY targets cascaded using Focus 5 goals and value chain Service Level Agreements. MDT1-3 structure implemented to drive vertical and horizontal alignment simultaneously. Red/green visual indicators for issue ownership and flow improvement made performance visible at the team level where it could be acted upon.
2
Walking Tours — Leaders Go and SeeDaily Walking Tours introduced where managers visited MBU areas to “Go & See” — coaching teams, solving issues in real time, and reinforcing MBU priorities at the point of work rather than through meeting rooms. Walking Tours are the physical expression of the shift from directive management to coaching leadership.
3
Formal Problem-Solving CampaignsTeams launched formal problem-solving campaigns with coaching question banks, Priority Action Charts, and Improvement Idea Boards. Results and learnings shared during Multi-Level Meetings to inspire peer teams across the factory — creating a knowledge network that made each team's improvement visible to all and each team's success a motivator for others.
4
Cross-Functional Recognition — MDW Deployed GloballySenior ITG leaders recognised the ITTM Jhunan implementation as a benchmark within the wider Imperial Tobacco Group network — joining Cervecería Hondureña (SABMiller Top 10) and Century Bottling (SABCO Bottler of the Year) as implementations earning global corporate recognition when MBUs are done well.
5
Partnership Charts and the SLA Architecture for Cross-Functional OwnershipPartnership Charts clarified internal customer-supplier flows, merged feedback loops across team boundaries, and empowered MBUs to resolve interdepartmental delays proactively. The shift from 57 improvement ideas pre-MBU to 1,035 in FY16-17 is the quantified expression of what Partnership Charts unlock: teams that understand their position in the value chain, own their contribution to it, and see directly how their improvement makes the next team's job better.
Starting Challenges
Disconnected leadership routines and frontline practices despite prior improvement initiatives.
Lack of vertical and horizontal goal alignment across departments and levels.
Limited team ownership of KPIs — continuous improvement treated as management responsibility.
Complex product lines (Tax Stamp, 21's) with unstable OEE requiring team-level problem-solving.
Results
From 57 Ideas to 1,035 — A Culture That Generates Its Own Improvement
+25 pts
Tax Stamp OEE
Tax Stamp line OEE improved from 43% to 68% — a 25-point gain on one of the factory's most complex and previously unstable product lines.
+17%
21's OEE
21's line OEE improved by 17% through team ownership of the performance deviations that management escalation had previously failed to resolve at pace.
1,035
CI Ideas
Continuous improvement ideas increased from 57 (pre-MBU) to 1,035 in FY16-17 — an 18-fold increase reflecting a culture that generates improvement as a daily habit.
+19%
Productivity
Up to 19% productivity gain through shift and crew optimisation — teams owning their own scheduling effectiveness rather than receiving it as a management output.
Owned
Full Responsibility
“Employees are fully responsible for results” — the ownership culture shift confirmed by site leadership and ITG senior management as the defining outcome of the ITTM MBU programme.
ITTM
Way of Working
MBU evolved into “The ITTM Way of Working” — joining BAOS, Letsema, and SAMS as client-branded MDW programmes that became the operating language of their host organisations.
“
Employees are fully responsible for results — cultural transformation requires both structure and purpose.
Ownership Culture Statement · Imperial Tobacco Taiwan · ITTM MBU Programme
Key Insight
ITTM demonstrates that 1,035 improvement ideas are not the product of an innovation programme — they are the product of an ownership culture. When teams understand their value chain position through Partnership Charts, see their performance through their own visual boards, and are coached daily through Walking Tours, improvement becomes how they think about work. Structure and purpose combined: the ITTM Way of Working.
