Ilm Work Based Assignment
ILM Level 3
Award
In First line management
Work-based assignment
M3.01
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 …show more content…
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.
1. Filling
2. Packaging
3. Palletising
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
Daily cost.
Amount of “1 minute fixes” per day = 8
Cost per stop = £1,232
Therefore 1,232 x 8 = 9,856 The daily cost of a “1 minute fix is £9,856
Weekly cost
The daily cost of a “1 minute fix = £9,856
Amount of days in week = 7
Therefore 9,856 x 7 = 68,992
The weekly cost of a “1 minute fix is £68,992
Yearly cost
The weekly cost of a “1 minute fix = £68,992
Amount of operational weeks in a year = 49
Therefore 68,992 x 49 = 3,380,608
The yearly cost of a “1 minute fix” is £3,380,608
Analysis of the problem
To Analyse the problem I have used a Problem solving model to help breakdown what I need to achieve, where and how to do this. See Appendix 1.
Identifying the Problem
The palletiser stops for various reasons, such as machine malfunction or un-uniform packaging or pallets.
Generally a machine malfunction consists of a part failure in which an engineer is called to repair the equipment. In which case it would be an extended breakdown.
The small stoppages consist of various issues for example a twisted case at case in feed or a jammed pallet at pallet in feed. Unfortunately these problems can only be minimized due to the restraints on time and re-sources which will help alleviate these stoppages.
For example if we can guarantee that every pallet is the same shape and size and none were damaged and that they were stacked correctly then this would make the window of machine reliability larger. However we use wooden pallets so these can easily be damaged or different sizes depending on the ambient temperature or humidity. If we were to change to Euro pallets which are plastic, this would be of a large expense.
The cases on the in feed can also vary due to the quality of shrink wrapping on the case. Again if we can guarantee that every pack is the same it would make the window of reliability larger. But again with the restraints on time and re-sources it is very difficult to do.
Also this would make the window of reliability larger but not 100% reliable and in the moments of when human intervention is required minimal response time is required.
Therefore the problem this project focuses on is purely decreasing the response time to inevitable stoppages
Establishing the facts
After identifying the problem, this project is to focus on decreasing the response time to inevitable stoppages.
Below is a Time chart to help explain when this problem occurs and where the time is lost.
Table 1.
MINUTES 1 2 3 4 5 6
1. Problem occurs and Product builds back Yes Yes
2. Packaging stops Yes
3. Notification via the Tanoy is given Yes
4. Fork lift truck driver/palletiser operator response Yes
5.
Palletiser reset and build back clears Yes
As you can see from the time chart the overall downtime occurred is 4 minutes. 4 minutes results in a sales revenue loss of £1,232. This is what it costs in loss of sales revenue every time the palletiser stops for a “1 minute fix”.
Identifying Options
In a situation where the Palletiser will inevitably stop (Action 1). We want to get from action 1 to action 5 in the least amount of time.
Option 1. Employ an extra person to Mann the Palletiser across all shifts.
Option 2. Have an automated system in place to notify Fork lift truck operator immediately.
Option 3. Do nothing.
Option 4. Buy more conveyors to allow extra space for product to build back giving more opportunity to resolve Palletiser issue before line stops.
Option 5. CCTV in which packaging operators could glance to check palletiser is still running.
Resolution of the problem
Assessing the effects of these options
Summary of options
Options and Decision Making model.
Below is a summary of my options along with a decision making model to help understand the advantages and disadvantages.
Option …show more content…
1.
Employ an extra person to Mann the Palletiser across all shifts. This would be of a large cost and add to the cost per case and labour overheads. Approximatly 1 man =£40,000/year. Therefore 4 men would be £160,000/year. From speaking to management upon line installation the Palletisers were originally manned, but previous management decided to un-man the palletiser to save money. This was an interesting decision as the cost of having no one there is far greater.
Option Advantages Disadvantage
1 Immediate response time.
More sales revenue More labour cost
Higher cost per case
More training
Option 2.
Have an automated system in place to notify Fork lift truck operator immediately. This would have an implementation cost but would result in an immediate notification in which the Fork lift truck operator could attend the problem, Reset and start the machine before the packaging machines stop. It would need a project plan to install the technology within production windows but can be done.
Option Advantages Disadvantage
2 Immediate response time
More sales revenue
No extra Overheads
Lower cost per case Initial implementation cost
Option 3.
Do nothing. By looking at the sales revenue saving of £3.6 million this is not an option
Option Advantages Disadvantage
3 Nothing to do No improvement in Line utilization
No improvement in Sales revenue
Option 4.
Buy more conveyors to allow extra space for product to build back giving more opportunity to resolve Palletiser issue before line stops. This would be a large cost and won’t notify the Fork lift truck operator and only give a bigger opportunity for action.
Option Advantages Disadvantage
4 Extra time to help spot the problem Not suitable to fulfill project requirements.
A large initial cost.
Packaging will still stop if un-forseen
Option 5.
CCTV in which packaging operators could glance to check palletiser is still running. This will help but won’t be a solution as generally the Packaging operators are to busy to keep checking a monitor.
Option Advantages Disadvantage
5 An opportunity to forsee a problem Not suitable to fulfill project requirements.
Operators will be too busy to monitor
Take the decision
From analyzing the above data and facts I have come to the decision of implementing an Automated notification system.
Implementation & Communication of the solution
Plan
Below is a plan of action in which I am using to implement this solution
Activity Time scale Resources Communication method Evaluation
Discuss with Production Manager 02 NOV 2010 N/A Meeting Managers were very excited with the solution
Discuss with line Operators 03 NOV 2010 N/A Meeting Operators discussed how this could help and situation it would help
Discuss with Engineering 04 NOV 2010 N/A Meeting Technical discussions took place and initial design discussed
Produce implementation plan 15 NOV 2010 N/A Email Gantt chart for feedback Additions made to plan after feedback
Implement plan 10 DEC 2010 N/A Email updates Appreciation found in keeping people updated
Gantt chart
Below I have made a Gantt chart to help plan and organize the project against time.
DAY 1 2 3 4 5 6 7 8 9
Design electrical drawings and detailed parts list Yes
Order electrical and mechanical components Yes
Write 1st program for PLC Yes Yes Yes
Lay cables Yes
Mount electrical Enclosure Yes
Yes
Populate electrical chasis Yes
Hard wire circuit Yes
Commision PLC program Yes Yes
Prove and test Yes Yes
Monitoring and Review Techniques
To be able to evaluate the outcomes of this project I will be able to measure the performance of line utilization by using the computerized monitoring software Lineveiw. I will also be able collate feedback from the Fork lift truck operators and line team leaders.
Upon data collected from Lineveiw and feedback I will be abale to then review the project. This could enable be to improve the situation even further.
Conclusion
This was an excellent exercise because I was able to use the tools and skills I have learnt upon the ILM course in First Line management. This way I have applied academic knowledge into real-life situations. By doing this I now have the comfidence and know how to do this again.
Following the skills and process’s I have learnt I have also came up with a solution that will enable a calculated £3,380,608 saving in sales revenue in which I believe deserves credit.
Appendix 1
Problem solving Model
Identifying the problem
Establishing the facts
Identifying your options
Assess the effects of these options
Take your decision
Implement the solution
Follow up and monitor the consequences
Always make decisions based on facts.
Award
In First line management
Work-based assignment
M3.01
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 …show more content…
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.
1. Filling
2. Packaging
3. Palletising
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
Daily cost.
Amount of “1 minute fixes” per day = 8
Cost per stop = £1,232
Therefore 1,232 x 8 = 9,856 The daily cost of a “1 minute fix is £9,856
Weekly cost
The daily cost of a “1 minute fix = £9,856
Amount of days in week = 7
Therefore 9,856 x 7 = 68,992
The weekly cost of a “1 minute fix is £68,992
Yearly cost
The weekly cost of a “1 minute fix = £68,992
Amount of operational weeks in a year = 49
Therefore 68,992 x 49 = 3,380,608
The yearly cost of a “1 minute fix” is £3,380,608
Analysis of the problem
To Analyse the problem I have used a Problem solving model to help breakdown what I need to achieve, where and how to do this. See Appendix 1.
Identifying the Problem
The palletiser stops for various reasons, such as machine malfunction or un-uniform packaging or pallets.
Generally a machine malfunction consists of a part failure in which an engineer is called to repair the equipment. In which case it would be an extended breakdown.
The small stoppages consist of various issues for example a twisted case at case in feed or a jammed pallet at pallet in feed. Unfortunately these problems can only be minimized due to the restraints on time and re-sources which will help alleviate these stoppages.
For example if we can guarantee that every pallet is the same shape and size and none were damaged and that they were stacked correctly then this would make the window of machine reliability larger. However we use wooden pallets so these can easily be damaged or different sizes depending on the ambient temperature or humidity. If we were to change to Euro pallets which are plastic, this would be of a large expense.
The cases on the in feed can also vary due to the quality of shrink wrapping on the case. Again if we can guarantee that every pack is the same it would make the window of reliability larger. But again with the restraints on time and re-sources it is very difficult to do.
Also this would make the window of reliability larger but not 100% reliable and in the moments of when human intervention is required minimal response time is required.
Therefore the problem this project focuses on is purely decreasing the response time to inevitable stoppages
Establishing the facts
After identifying the problem, this project is to focus on decreasing the response time to inevitable stoppages.
Below is a Time chart to help explain when this problem occurs and where the time is lost.
Table 1.
MINUTES 1 2 3 4 5 6
1. Problem occurs and Product builds back Yes Yes
2. Packaging stops Yes
3. Notification via the Tanoy is given Yes
4. Fork lift truck driver/palletiser operator response Yes
5.
Palletiser reset and build back clears Yes
As you can see from the time chart the overall downtime occurred is 4 minutes. 4 minutes results in a sales revenue loss of £1,232. This is what it costs in loss of sales revenue every time the palletiser stops for a “1 minute fix”.
Identifying Options
In a situation where the Palletiser will inevitably stop (Action 1). We want to get from action 1 to action 5 in the least amount of time.
Option 1. Employ an extra person to Mann the Palletiser across all shifts.
Option 2. Have an automated system in place to notify Fork lift truck operator immediately.
Option 3. Do nothing.
Option 4. Buy more conveyors to allow extra space for product to build back giving more opportunity to resolve Palletiser issue before line stops.
Option 5. CCTV in which packaging operators could glance to check palletiser is still running.
Resolution of the problem
Assessing the effects of these options
Summary of options
Options and Decision Making model.
Below is a summary of my options along with a decision making model to help understand the advantages and disadvantages.
Option …show more content…
1.
Employ an extra person to Mann the Palletiser across all shifts. This would be of a large cost and add to the cost per case and labour overheads. Approximatly 1 man =£40,000/year. Therefore 4 men would be £160,000/year. From speaking to management upon line installation the Palletisers were originally manned, but previous management decided to un-man the palletiser to save money. This was an interesting decision as the cost of having no one there is far greater.
Option Advantages Disadvantage
1 Immediate response time.
More sales revenue More labour cost
Higher cost per case
More training
Option 2.
Have an automated system in place to notify Fork lift truck operator immediately. This would have an implementation cost but would result in an immediate notification in which the Fork lift truck operator could attend the problem, Reset and start the machine before the packaging machines stop. It would need a project plan to install the technology within production windows but can be done.
Option Advantages Disadvantage
2 Immediate response time
More sales revenue
No extra Overheads
Lower cost per case Initial implementation cost
Option 3.
Do nothing. By looking at the sales revenue saving of £3.6 million this is not an option
Option Advantages Disadvantage
3 Nothing to do No improvement in Line utilization
No improvement in Sales revenue
Option 4.
Buy more conveyors to allow extra space for product to build back giving more opportunity to resolve Palletiser issue before line stops. This would be a large cost and won’t notify the Fork lift truck operator and only give a bigger opportunity for action.
Option Advantages Disadvantage
4 Extra time to help spot the problem Not suitable to fulfill project requirements.
A large initial cost.
Packaging will still stop if un-forseen
Option 5.
CCTV in which packaging operators could glance to check palletiser is still running. This will help but won’t be a solution as generally the Packaging operators are to busy to keep checking a monitor.
Option Advantages Disadvantage
5 An opportunity to forsee a problem Not suitable to fulfill project requirements.
Operators will be too busy to monitor
Take the decision
From analyzing the above data and facts I have come to the decision of implementing an Automated notification system.
Implementation & Communication of the solution
Plan
Below is a plan of action in which I am using to implement this solution
Activity Time scale Resources Communication method Evaluation
Discuss with Production Manager 02 NOV 2010 N/A Meeting Managers were very excited with the solution
Discuss with line Operators 03 NOV 2010 N/A Meeting Operators discussed how this could help and situation it would help
Discuss with Engineering 04 NOV 2010 N/A Meeting Technical discussions took place and initial design discussed
Produce implementation plan 15 NOV 2010 N/A Email Gantt chart for feedback Additions made to plan after feedback
Implement plan 10 DEC 2010 N/A Email updates Appreciation found in keeping people updated
Gantt chart
Below I have made a Gantt chart to help plan and organize the project against time.
DAY 1 2 3 4 5 6 7 8 9
Design electrical drawings and detailed parts list Yes
Order electrical and mechanical components Yes
Write 1st program for PLC Yes Yes Yes
Lay cables Yes
Mount electrical Enclosure Yes
Yes
Populate electrical chasis Yes
Hard wire circuit Yes
Commision PLC program Yes Yes
Prove and test Yes Yes
Monitoring and Review Techniques
To be able to evaluate the outcomes of this project I will be able to measure the performance of line utilization by using the computerized monitoring software Lineveiw. I will also be able collate feedback from the Fork lift truck operators and line team leaders.
Upon data collected from Lineveiw and feedback I will be abale to then review the project. This could enable be to improve the situation even further.
Conclusion
This was an excellent exercise because I was able to use the tools and skills I have learnt upon the ILM course in First Line management. This way I have applied academic knowledge into real-life situations. By doing this I now have the comfidence and know how to do this again.
Following the skills and process’s I have learnt I have also came up with a solution that will enable a calculated £3,380,608 saving in sales revenue in which I believe deserves credit.
Appendix 1
Problem solving Model
Identifying the problem
Establishing the facts
Identifying your options
Assess the effects of these options
Take your decision
Implement the solution
Follow up and monitor the consequences
Always make decisions based on facts.