Download - Cigar Box 3 Operational Monitoring System
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Cigar Box 3Operational Monitoring System By Anushik TadevosyanGlobal Facts
What you can do with Cigar Box 3Operational monitoring Evaluate progress.Daily production cost for each product.Know your daily losses and contribution Compare with real daily data.Make decisions for progress with real data.
CB3 has three components
1. Collecting dataYou can only have real data, if you collect them daily, this is necessary for CB3 To collect data you need to have daily data collection forms You need to train people how to fill daily forms and make them responsible to do it.Organize and Systematize data collection process
2. Analyzing DataYou are going to use data from forms to simple system;Choose the produced product for that day;Choose the expenses for that product;Enter data for each product;In the end you have analyzed data automatically!Colored margins show you the deviation from your planned margin
3. BenchmarkingFor benchmarking data you need to use daily database of production cost (which you have already from daily analysis);To see what is the position of our production cost, you need to compare it with similar production from other companies;It is possible to question: Why?But with CB3 you have an answer for your Why?To make decisions on progress is your responsibility, and your privilege!
First step is to make Information flow chart
Forms connection in the Production processes
Your successes will come from well organizing activities and responsibilities of personnel
Example: Daily cost of production in CB 3
Find your KPIsIf you have dataYou can make analyzesYou will find your KPIsThen do benchmarking of your KPIsFor different production there are different KPIs
Benchmarking
Performance improvement cycle
Measurement a.How much steam did we use on Thursday?b.How many cutting losses did we have in the evening shift?
Focus on critical ingredient (milk: fat + density; fruit: sugar + moisture)Instruments of measurementOperational routines (frequency, reporting, responsibilities)
14Knowledge a. What is going right?b. What is going wrong?
Archive documentsInput in CB3 databaseAnalysisOutput formats and report on KPIs
15Causes of problemsList causes of red lights
16Solutions Try to formulate solutions for the key problemsInside the companyOutside the company from expert consultants
Implement solutions ImprovementMeasure improvements New cycle
17ExerciseList products and production processes for each clientList likely KPIs per production processGlobal Facts can provide internationally acceptable benchmarks (green, orange, red)
18You are in the right way!When you know your weak points, when you see from what they are coming and when:You can plan and organize your production better See if you have products which are not profitableYou can plan your resources Market, Raw Materials, Production,Personnel, Equipment, You can plan your finance To see when you will have financial crisesOrganize investment in time
RAW MILKSILO 1
STANDARD MILK 3.5% FAT
LOW FAT MILK 1% FAT
RAW MILKSILO 1
CREAM46% FAT
FCMP BULK29% FAT
SKIMMED MILK.01% FAT
SMP BULK0.1% FAT
LOW FAT MILK POLY
FRESH MILK POLY
YOGHURT DRINK
FLAVORED MILK POLY
CURD
LOW FAT MILK UHT
FLAVORED MILK UHT
FRUIT JUICE UHT
SMP 0.1% FAT
FCMP 29% FAT
GHEE, 99.9% FAT
BUTTER 82-84% FAT
AARONG MILK UHT
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4
2
2
2
2
4
2
1
1
3
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2
F3
F5
DELIVERY VANS DAILY
F6
F4
F1
F7
RENTAL VANS DAILY
sku
LABOR DAILY
GAS/ DIESEL CONSUMPTION
COOL TRUCKS DAILY
MAINTENANCE DAILY
InstructionsSAMPLE FACTORY - CB3MDFMACFMFMFMStepActivityResponsibleMilk collProductionSalaryEngineeringTransportFP Store1Fill in data collection formsDelouerRabbaniRofiq SMAdhir SahaMosharafToffajalInformation formsF1; F2F3 - F7F8F9F10F111. Pasteurised milk production - F3Head of Dept 1ShukumarFarrukh2. UHT production - F4Head of Dept 2AbdulmujidShohid3. Butter / ghee / curd production - F4Head of Dept 3Shahin4. Powder milk production - F5Head of Dept 4Rabbani2Daily data entry into ExcelCost accountantShohid ITRabbaniShohid ITShohid ITShohid ITShohid IT3PricesCost accountant4Verify results:Cost accountant- recipe % and processing ratios in Technological Analysis SheetTechnologist- variable cost % in Cigar BoxCost accountant- gross margin % > 30%Cost accountant5Mark questions on original data collection form in RED COLOURCost accountant6Go to Department Head, ask reasons, write CAUSES on the (back of) data sheet.Cost accountant7If no causes found, discuss with Factory ManagerFactory manager8Re-enter data, if neededCost accountant9Make daily printoutCost accountant10Sign for approval, archive in special folder in the factoryFactory manager11Copy, Paste Special (Values and Formats, Transpose) to DatabaseCost accountant12Update pivot tables and print out reportsCost accountant13Send updated file to factory manager, general manager and/or ownersCost accountant14Organize 1 or 2-weekly meetings with staff concerned to discuss deviations and resultsOwner / general managerMDACMCCFMMM
Performance Improvement Cycle
measurement