At the heart of any manufacturing organization lies its production operation. Only with the right application of manpower and equipment, materials and information, will a firm be able to transform purchased raw materials into a product that achieves the company’s strategic competitive advantage goals. Across a spectrum of industries, from food-packaging to pharmaceuticals, from consumer goods to the chemicals industry, under-utilized or poorly managed valuable manufacturing assets will highly jeopardize the company’s ability to be successful.
Understanding the flow of materials and information throughout the production facility is the first step in improving your competitive abilities. In today’s business environment, where product customization is the rule, a high-variety in product portfolio is usually the case. Starting at a wide array of suppliers, through numerous physical routings and processing options and ending in ultimate service level commitments to customers. Executives from production, quality and logistics alike, are struggling to see how and where value for the customer is created. The optimization of assets relies heavily on careful current state mapping and future-planning to enable the rapid deployment of improvement initiatives to focus on delivery of key benefits.
A health and beauty products manufacturer had a long history of manufacturing and delivering products to the marketplace through some of the largest retailers in the United States.
The company engaged Tefen to improve their Overall Equipment Effectiveness of the Filling and Packaging lines so that they can economically support all of its customers. Tefen helped to reduce the down-time associated with operators’ breaks, changeovers between different products and mechanical breakdowns. In addition, Tefen helped the client’s efficiency by increasing and maximizing actual machine speeds and removing constraints. Quality related rejections were also minimized by integrating quality control measures with shop-floor operations. Overall, a 30-40% improvement in the lines’ OEE has been achieved.
Using the value stream map, key asset constraints in your workflow are identified. If your key constraints are performing sub-optimally, then the result will affect the performance and quality of your entire system. Whilst world class performance is around 85% effectiveness, most companies operate significantly below 60% or don’t even know their own performance. This degradation in performance is due to various reasons, commonly known as the “Six Big Losses”. Effectiveness losses such as breakdowns, setups, reduced operating speed and rejects are unfortunately the norm. Carefully applying the OEE methodology to overcome these deficiencies will ensure that the equipment is available for production, run efficiently and produce quality items.
A leading pharmaceuticals company asked Tefen to support its capacity optimization efforts at one of their Active Pharmaceutical Ingredient manufacturing facilities. In spite of the complications associated with process industry manufacturing, Tefen customized its OEE methodology to support the initiative. A standard cycle time data base was created, which enabled the creation of capacity planning tools and a 20-40% reduction from the original cycle times. In addition, the establishment of Key Performance Indicators (KPI's) and ongoing efficiency & effectiveness monitoring techniques and routines, have helped to deliver significant productivity gains of 55%-65%.