35th Anniversary
THE FAST TRACK TO manufacturing improvement
TRAINING & SKILLS FOCUS
achieved and further savings of around £1million available when the programme is rolled out to the other areas of the facility. Whilst these were the tangible financial benefits of the program there were many other changes to the way the two lines operated. These included: - Team leader role developed and
implemented on two pilot lines - 5S process implemented and now
being audited daily by team leaders - KPI’s and daily monitoring in place in both pilot areas - Plan-Do-Check-Act cycle being used
to drive improvements - Operator asset care tasks being carried out by operators on a daily basis on both pilot lines - Training in Operational excellence, 5S,
Single-Minute-Exchange-of Die, team leader role and Continuous Improvement tools
- Coaching/training of team leaders and
ME champion - Development of a changeover
Philip Tugwell, associate director, MCP Consulting and Training, discusses the benefits of implementing the company’s cost reduction and manufacturing improvement programme
T
he need to improve manufacturing performance and cost of production has never been greater with pressure from shareholders, customers and competitors alike. Despite at least two decades of improvement initiatives such as Lean, Six Sigma, and Business Process Re- engineering, most organisations still have massive opportunities to improve the performance, and ultimately, the cost performance of the business. Businesses are constantly being squeezed to reduced selling price or improve delivery times as customers become more and more demanding. This increased pressure can lead to a reduction in performance, because it forces short cuts to be taken and mistakes to be made. MCP has been involved with delivering a fast track Manufacturing Cost Improvement programme across industries including food, pharmaceuticals, and chemical. The programme is targeted at manufacturing/site directors and managers who need a rapid and sustainable increase in their plants performance. A typical intervention will last 10-12 weeks and be delivered in three phases by a MCP team who provide coaching, training and guidance, and work alongside the company’s staff to identify and make changes in working practices. Cost reduction focuses on: • Labour costs • Material costs • Administration costs • Downtime costs
Not all the programme’s benefits are of a financial nature, benefits will also accrue in quality and compliance, delivery performance and in plant capacity. The stages of the programme are: • Week 1-Diagnostic and measurement of the size of opportunity • Week 2-develop and agree
implementation plan • Week 3-10 Support implementation and provide coaching and training • Week 10-12 deliver sustainable benefits
The process is best described using a case study. Y is a pharmaceutical manufacturing plant, and MCP was commissioned to carry out a 10 week manufacturing cost reduction programme on two pilot lines. The basis of the programme was to successfully implement a number of relevant tools and techniques onto the lines whilst moving to a team based structure with a dedicated team leader responsible for driving production. The MCP team work closely with a team
from the plant, which included supervisors, operators and craftsmen to both train the team in the use of the tools and techniques and then to help them implement the tools successfully on the plant. The management team supported the programme heavily, and personnel from all levels were involved in awareness and training sessions. By the end of the 10 weeks the original targeted benefits had been easily surpassed with savings of £300,000
/ PROCESS&CONTROL
Applying improvement tools and techniques brings many benefits, as does changing the behaviour of people within the organisation at all levels
improvement process - Standard operating procedures for changeovers developed - Trouble shooting guides developed - Implementation of Kanbans for raw
material supply - Staff trained in use of risk based
maintenance programme process - Revised Preventative Maintenance tasks developed with frequency and skills Benefits to business: - Reduction in manning of 22 people - Changeover time on Line 1 reduced to
50 minutes from 4 hours - Improved time to change parts on line 1 from 8.75 hours to 5 hours - Increase in Overall Equipment Effectiveness (OEE) performance on Line 1 to 58% from its initial level of 48% - OEE on Line 2 to 65% from its initial
Philip Tugwell says most organisations still have massive opportunities to improve performance
53% Following the pilot programme, the full programme has been rolled out to all manufacturing areas within the business. The programme has reduced
manufacturing costs and provided a sustainable basis for future improvement. However, it is not just about applying some improvement tools and techniques, it is also about changing the behaviour of the people within the organisation at all levels. This means that the site management team have to take on responsibility and ownership for sustaining the improvements once the initial 10 week programme is finished. The result often means staff have more time to carry out activities efficiently and correctly first time, bringing a cash benefit to the business.
MCP Consulting and Training
www.mcpeurope.com
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