danone-a practitioner approach to packaging line productivity by mathieu loranger

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A Practitioner Approach To Packaging Line Productivity

Mathieu Loranger, Eng.

Danone Canada

Boucherville, Canada

1Industry Pressures for Plant Management

Asset Performance

Slide 4

Asset strategyGrowth/Cost Strategy

Supply Chain Optimization

Cost of Goods Sold (COGS)

Business Processes

A B C D E F G HA B C D E F G HA B C D E F G HA B C D E F G H

Fundamental change at P&G

98% of US households buys at least 1 P&G product

Gain dish soap launched at a bargain price (a first in 38 years).

P&G is betting that the “squeeze on middle America will be long

lasting…”

2Matt Loranger

Content overview

• How to manage line/equipment status better to optimize troubleshooting

• When and how to design line management control systems

• How to calculate ROI after implementation

• How to determine the percentage increase in productivity gained by the approach

Training and education

• Canadian armed forces, Infantry reserve, reconnaissance specialist

• Technical degree in instrumentation and controls

• Automated production engineering degree

• Masters of industrial engineering, project management in technical environments (started)

Work experience

Automation technician (IBM, Bromont)

Automation designer (electrical drawings, mechanical 2D-3D drafting, PLC and HMI programming, robot programming, start-ups)

Automation project manager (oversee the design and integration of everything automation related for packaging lines from power distribution, interlocks and machine communication to sensors on the line, as well as PLC and HMI programming, lead start-up team on-site)

Current position

• Computer-assisted Maintenance and Programming Supervisor

• In charge of SAP maintenance module

• Automation / electro technicians management (4 on-call technicians, 2 project programmers)

Dairy world at a glance

• US: 65,000 milk cow operations (2009)

• US: 9.2 million heads

• US: 189,320 million pounds (2009)

• Canada: 13.7 B$ (2010)

• Canada: milk processing 22,650 jobs throughout Canada!

Released September 22, 2010, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA)Canadian Dairy Information Centre, Government of Canada

Dairy: big business

1. Nestle, Switzerland: $28 billion

2. Danone, France: $16.4 billion

3. Fonterra, New Zealand: $12.1 billion

• Source: Rabobank International

Dean Foods reported to Dairy Foods 2010 revenues of $12.1 billion

Dairy: Farmers’ Co-Op

1. Land O’Lakes St. Paul, MN $3.708 billion

2. Agropur Cooperative Longueuil, Québec $3.49 billion

3. Prairie Farms Dairy Carlinville, IL $2.5 billion

4. Dairy Farmers of America Inc. Kansas City, MO $2.333 billion

5. Darigold Inc. Seattle, WA $2.1 billion

Source: Company reports, compiled by Dairy Foods

Danone

• Stimulate growth of the fresh dairy product market by offering quality innovating products

• 650 employees in Canada

• One single factory (Boucherville, Québec) to supply Danone products from coast to coast

• 11 production lines ranging from thermo molded containers to bottles, pots and tubs

• Robotic palletizing cells

Euromonitor International Methodology Source : Nielsen, internal data and Statistic Canada

5.86.4

7.17.6 7.7

9.2 9.69,0

8,3

2002 2003 2004 2005 2006 2007 2008 2009 2010

Per c

apit

a co

nsum

ption

(Kg/

hab)

+66%

11% 8% 7% 8% 3% 7% 8% 4% 6%

Growth inConsumptionvs. YAG

What is efficiency?

• Efficiency is the quality of being efficient, meaning that it produces the expected results without waste

• An Olympic level swimmer creates more speed through less effort, having an efficient stroke

• A mother can handle meals for three kids, homework and bath duties without breaking a sweat…

• Daddy, on the other hand, will call pizza, skip the homework… And the kids weren’t that dirty, anyway!

Measuring efficiency

Efficiency, as applied to packaging lines: percentage of what should have been

produced based on standard line production rate and the number of production hours allowed.

PRODUCTION TIME

AVAILABLE TIME

REVISED AVAILABLE TIME

OPERATING TIME

RUNNINGTIME

NO PRODUCTION PLANNED

• SANITATION / CIP

•PLANNEDMAINTENANCE

• CHANGEOVER

•EQUIPMENT SITS UNUSED

•PROJECTS

EXTERNALSTOPS

• LACK OFMATERIALS

• LACK OFPRODUCT

EQUIPMENTMAJORBREAKDOWNS

MAINTENANCE INTERVENTION REQUIRED, OTHER THAN PLANNED MAINTENANCE TASKS (CORRECTIVE)

INDUCEDSTOPS

EQUIPMENT SHOULD RESTART AUTOMATICALLY / MINMAL INTERVENTIONOFFSET WITH ACCUMULATION

CRITICAL MACHINEOWN SHORTBREAKDOWNS

Efficiency measured

Overall Equipment Effectiveness = Plant Availability x Quality Rate x ---Production Performance Rate

-Quality Rate = Good Product Produced /Total Product Produced

-Availability = (Total Scheduled production time - Downtime) / Total Scheduled Production Time

-Production Performance = Total Output /Potential Output,(Where Potential output = Rated speed x Scheduled Production Time)

“….Efficiency is not only a matter of producing fast, it’s a matter of producing quality goods in the time allowed….”

Ensuring efficiency

• Efficiency is calculated based on the critical machine on the line.

• Large lines are designed based on a “V” graph, where the critical machine sits at the bottom of the “V”.

• Accumulation is a duration for which a machine can keep running even though a upstream or downstream machine is stopped.

• Accumulation is achieved through accumulators ( such as mass conveying, Sidel AQ-Max table, Hartness Dynac or others)

Ensuring efficiency

• Accumulation serves no purpose if it can not be regenerated: a full line will stop the critical machine immediately if accumulation is not regenerated.

• TGNS: time to go back to normal situation is as important as accumulation.

• Greater TGNS are achieved through proper calculation of the overspeed necessary around the critical machine. Greater the overspeed, smaller the TGNS.

Ensuring efficiency

Proper line controls are essential:

• When do we start? When do we stop? How fast do we run each machine and under which circumstances? How fast do we run the conveyors to ensure proper container feed yet minimize pressure on containers?

“….Even if you have the best machines, best conveyors and best line controls, people are still the key and the greatest asset in achieving great line efficiencies. Rapid interventions, proper operating procedures, proper training and empowered operators and maintenance people who take pride in their results, that is the key to efficiency gold…”

Drawbacks of large accumulation on packaging lines

• No matter the ROI and line efficiency achieved, accumulation can be viewed as costly when looked at from the outside

• Large size accumulating lines (such as MillerCoors or Pepsico / Gatorade lines) require a lot of floor space

• Machine redundancy (two fillers, three labelers) require more operators and more maintenance

• Overspeed requires faster machines which are more expensive, can be trickier to operate and maintain

• Accumulation can “hide” machine problems

Limiters to efficiency

• If multiple packages run on the same line (size, shape, multiple flavours on the same packer, etc), the line will not be optimized for a single size. Management has to decide whether this is acceptable or not.

• Multiple sizes require multiple format changes. Those take time and loss can be had for the initial set-up / ramp-up.

• Constant restarts after change-overs can cause quality issues: underfills, bad labeling, process issues (taste, texture, brix). This not only stops the line/machine, but is also accounted for in OEE calculation.

• Operators need to master multiple change-over procedures.

Efficiency and small footprint lines

Because of either company philosophy or constraints such as floor space or lack of personnel, lines can be designed to be efficient even without large accumulation

Systems to monitor fault times and amounts need to be put together (Sidel EIT, Intouch interface / Historian)

Time and resources need to be invested to breakdown the data and go to the bottom of issues

– Note that those also apply to larger lines with accumulation, they simply are not as critical. Usually when that much capital is invested, time and effort will also be put into running their lines properly, even though it is not always the case…

Visualization in the paper era

Run % based on case production and red/green for quick view

Number of stop minutes, per machine

Operator comments

Drawbacks: time consuming, possibility of errors, data needs to be retyped into MRP/ERP system, subject to interpretation…

Visualization: Performance module

Mathieu Loranger, Eng. Danone

Advantages: no more translation, SQL reporting capabilities, same visual color coded interface operators know…

How do we enable greater efficiency through visualization?

• Based on line design, interfaces (HMI touchscreens, pilot lights, audible horns, marquee scoreboards) should be installed to allow operators to respond quickly to breakdowns

• Interfaces should not be used only for breakdowns: foreseeing production needs and getting ready for change-overs ahead of time, digging through past faults to assess where energy should be spent (Pareto), involving operators into achieving greater results…

Implementing line management

• It is far easier to implement proper line management and controls when a new line is being installed. Integrators should, based on the customer’s requests and RFQ, provide the proper hardware and controls

• Line management software can be installed as an aftermarket add-in or even developed in-house. It all depends on the needs, the resources, the time available and the plant having the proper skills.

• Involving operators, maintenance personnel and line management people in such a project is a great skill-building opportunity if they can be detached to the project. It also greatly help in getting what is truly needed vs. management’s ideas… or worst, the consultant’s!

From 1987 to 2011


Pareto chart to spotlight main DT causes

To infinity, and beyond…


Configurable OR out-of-the-box Reporting

ROI: king of the crowd

In French, the acronym ROI means king. It is a great image to show that decision makers often only look at the return on investment when deciding whether or not to go forward with a project.

Even though the financial aspect of any project is essential, sometimes company philosophy can also have a great effect on decision making

– Example: Danone’s decision to leave plastic for foam for its thermomolded containers greatly reduces the company’s carbon footprint, yet is more expensive. It is a decision Danoners stand behind!

Follow the white rabbit: the matrix as a decision aid to avoid white elephants

You can use a matrix to determine which visualization solution fits the need:

In this particular example, the horn seems the best solution. However, based on the criteria (blue row) and the weight you decide to give to each, such might not always be the case.

ROI: long live the king

Determining what your return on investment is can prove tricky:

• Have you calculated the total cost of ownership of the project: detached resources, cost of hardware, software, contractors, programming, training…?

• In order to measure the gain in performance, we need to have an assessment of the situation before and after the implementation – this goes back to either a tool such as EIT, an historian, Intouch performance modules, SQL database reporting or good old line performance sheets

ROI: calculus 101


• We need to have a fait evaluation cost of what is actually gained through the project. What is a OE point worth in your plant?

• Once you have the actual efficiency calculated and have calculated how much a point of gain is worth, you need to set realistic goals for the project: selling a project to management for a 10% increase and delivering a 1.5% gain is a mistake you are not likely to have the chance of making very often.

ROI: calculus 102


• Once you figure out the total cost of ownership for your project and establish you goal, you can determine the return on investment:

– 5% gain worth 35,000$ yearly per % yields 175,000$ in savings

– Installing a new conveyor section with its control panel, along with modified HMI interface and speed controls for the machine and conveyors costs 55,000$.

– Dividing the forecasted economy by the TcoO gives you the ROI: 3.2 years.

“…Every company has its own set of rules to determine what ROI is acceptable or not…”

Beyond ROI

Again, above purely financial considerations on the plant floor, not every aspect of the projects can be easily evaluated:

• How do we manage risk with older technologies vs. replacing / updating?

• How much is the company willing to spend to be at the forefront of technological development?

• What impact is a new technology going to have on operators, maintenance and managers?

• How would this new technology help in group reporting, supply forecasts, goods movement, loss analysis?

• How could we use visualization to further motivate our employees?

Beyond ROI

• As a manager or as a technologies specialist, it is our responsibility, no matter how much it pains us, to avoid techno-bubbles and center ourselves on what is really important.

• It is also our responsibility to foresee the needs of our companies and provide the decision making tools and arguments to those above us in the hierarchical chain.

• Improving efficiency is a complex mix of being able to measure what is in place, being able to propose and justify the projects needed to gain efficiency, either through hardware, software of training (and often a mix of those!), determining the proper goals for the projects and then being a leader during the implementation and transfer to day-to-day activities…

Value Assessment Workshop (VAW)

ContinuousImprovement

?

Value to Customer

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For more information, to schedule a Value Assesment Workshop or to join our F&B Special Interest Group contact:

your local Wonderware distributor

Food and Beverage experts :

iom.invensys.com/opsmanage

www.dairyshow.comwww.packexpo.com

Tom Giunta – [email protected] Dufort – [email protected]
