In First line management
Context of Assignment
Line 2 mass produces cases of canned beverages of all varieties and has the ability to produce 120,000 cans/hour which calculates to be over 33 cans/second. From that it is clear to see that every second lost because of un-planned stoppages will decrease our line utilization which is a loss of sales revenue.
The site performance is measured in various ways from Yields, Water consumption, Energy Consumption, Loss time accidents to Line Utilisation.
The problem I have chosen is directly related to line utilization and my aim of this project is to improve Line and site utilisation of previous years.
Description of the problem
The problem I have chosen is an operational problem. Due to the in-efficient way we currently operate around my chosen area described below, our utilization is not as high as it could be. This in turn reduces sales revenue and site utilisation.
Nature of the problem
Line 2 consists of 3 main areas.
Below is a block diagram to help explain the packaging process as it flows. The below blocks are in 3 separate rooms.
The problem which decreases line utilization and sales revenue is when a problem with the Palletiser occurs, the response time is too large and consistently stops both the packaging and filling areas.
When there is a problem with the Palletiser which generally is a 1 minute fix the cases of beverages will build back into the packaging hall to an extent that the packaging equipment will stop shortly followed by the Filler.
Build back is a term used to describe an issue when a down stream failure has occurred which has resulted in cases of beverages to build back on the conveyor system. If the problem is left un-attended the product will build back far enough to stop the line.
The packaging operator will then notify the Palletiser Fork lift truck driver who is also the Palletiser operator via a Tanoy system of a problem. “PALLETISER HAS STOPPED”
The Fork lift truck driver will then drive to the palletiser and set the machine back into a running condition.
The build back will then clear and the packaging area will then restart.
Below is a circle diagram to help understand this problem cycle.
Scope of the problem
The Filling and packaging area is manned all the time by trained operatives and when there is a problem the operators are there to respond with minimum amount of time lost.
The Palletiser is un-manned and is only attended by a Fork lift truck operator on notification. They are notified by the packaging operators after the packaging equipment has stopped due to build back.
The scope is to decrease this response time which will increase sales revenue. By using Problem solving techniques and models I can explore options and methods so I evaluate and compromise on a practical solution.
Impact of the problem
As mentioned before any un-planned stoppages results in a loss of sales revenue so to help understand the full impact, below are some calculations.
Cases per minute produces
Rated line speed = 2000/cans/minute
Cans in a case = 24 cans
2000/24 = 83.3 cases/minute
Loss of sales revenue per minute at a case cost of £3.70
83.3 x 3.70 = £308
Therefore every minute lost of un-planned downtime results in a sales revenue loss of £308 every minute.
From research I have done, I have collected data off a computerized monitoring system called Lineview and the stops for a “1 minute fix” average, is 8 every 24 hours. The average amount downtime occurred for a “1 minute fix” is 4 minutes per stop. From this data I can now calculate, cost per stop daily, weekly and yearly costs
Cost per stop
Loss of sales revenue per minute for a stop = £308
Time taken to recover = 4 minutes
Therefore 308 x 4 = 1,232
The cost per stop is £1,232...