opportunity & possibility analysis

1

OPPORTUNITY &

POSSIBILITY ANALYSIS

Improvement on Capacity & Reduce Downtime

2

AGENDA

KVI & KPI

COST REDUCTION

UTILISATION, CAPACITY & YIELD

EVALUATION

3

KVI & KPI

KVI = Key Volume Indicator

KPI = Key Performance Indicator

INPUT OUTPUTPROCESS

KPI

KVI KVI

4

COST REDUCTION

Volume

Resource

COST REDUCTION

1. Same Volume, resource reduce

5

COST REDUCTIONCOST REDUCTION

2. Increase Volume, same resource

Volume

Resource

6

COST REDUCTIONCOST REDUCTION

3. Combination

Volume

Resource

7

UTILISATION, CAPACITY &

YIELD

Utilization

Running Timex 100%

Available Time

Downtime influence

The utilization

8

CAUSE OF DOWNTIME

Order. ------ PPIC

Stock. ------ Raw Material

Breakdown. ---- Electric/Mechanic/Instrument

Preventive Maintenance.

Tooling / Change Over. ----- Set-up

Quality.

9

UTILISATION, CAPACITY &

YIELD

Capacity

Output

Running Time

Machine setting &

Continuity

Influence capacity

10

UTILISATION, CAPACITY &

YIELD

Yield

Outputx 100%

Input

Quality of Raw Material &

Continuous Process

Influence Yield

11

EVALUATIONS

EXAMPLE:

BASE OF CAPACITY/RUNNING TIME = 100 KG/HOUR

BASE OF DOWNTIME = 8 HOURS / WEEK

ACTUAL CONDITIONS:

ACTUAL CAPACITY / RUNNING TIME = 150 KG/HOUR

ACTUAL DOWNTIME = 0 HOUR / WEEK

1 Week = 168 Hours

12

GENERAL FORMULA

BASE

1 WEEK = 7 * 24 HOURS = 168 HOURS

DOWNTIME 8 HOURS BECOME = 168 – 8 = 160 HOURS

PRODUCE ONLY = 160 * 100 KG/HR = 16,000 KG OIL

CURRENT CONDITION

1 WEEK = 7 * 24 HOURS = 168 HOURS

DOWNTIME 0 HOURS BECOME = 168 – 0 = 168 HOURS

PRODUCE = 168 * 150 KG/HR = 25,200 KG OIL

13

SIMPLE DIAGRAM

160 168

Base

Capacity

100 Kg/hour

Actual

Capacity

150 Kg/hour

CAPACITY

TIME

14

METHOD 1

FREEZE THE DOWNTIME

(1 WEEK = 7*24 = 168 HOURS), suppose to work

168 – 8 = 160 hoursSAVINGS OF OIL:

1. CAPACITY ------ (168 – 8) * (150 – 100)

160 * 50 = 8,000 Kg

2. DOWNTIME ------- (8 – 0) * 150

8 * 150 = 1,200 Kg

TOTAL = 8,000 + 1,200 = 9,200 Kg.

Base Run time * improve cap

Improved d/t * act. cap

15

DIAGRAM METHOD 1

160 168

Base

Capacity

100 Kg/hour

Actual

Capacity

150 Kg/hour

CAPACITY

A

B

16

METHOD 2

FREEZE THE CAPACITY

(1 WEEK = 7*24 = 168 HOURS)

SAVINGS OF OIL:

1. CAPACITY ------ 168 * (150 – 100)

168 * 50 = 8,400 Kg

2. DOWNTIME ------- (8 – 0) * 100

8 * 100 = 800 Kg

TOTAL = 8,400 + 800 = 9,200 Kg

Actual Run time * improve cap

Improved d/t * base cap

17

DIAGRAM METHOD 2

160 168

Base

Capacity

100 Kg/hour

Actual

Capacity

150 Kg/hour

CAPACITY

A

B