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Presented by:
Mathu Suthana KumaranDubai Cable Company, UAE
To Maximize the PVCcompound output in PVC
Compounding machineM/c 3001
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Ducab
RawMaterials
CopperRod Plant
Copper wirerods &
conductor
PVCPlant
Cables
PowerCables
High Voltage
Medium Voltage
Low Voltage
SpecialPurpose low
voltage range
Ducab FR /Building Wire
Instrumentation& Pilot
Control &Auxiliary
AccessoriesDucab
Connect
2.4 3.2 2.4
2007 2008 2009
Ducab Sales (AED bn)
Over 900 employeesMulticultural 20 nationalities
Dubai 3 Manufacturing Units
Abu Dhabi
3 Manufacturing Units
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DEFINE
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Business Case
This project supports the companys objectives to producequality PVC compound in-house with maximum efficiency.
The output of PVC compounds as of May 2008 manufacturedin-house is meeting the demands of Ducab-JA & Ducab -Abu
Dhabi factories. Since Ducab added third manufacturingfacility in June 2008, the demand of the PVC compoundsincreased.
To meet the PVC demands of all the three factories, thecurrent PVC output needs to be increased
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Opportunity
The basic opportunity of this project is that if we are able toincrease the PVC production, we can reduce the quantity ofPVC required to be purchased externally.
Currently( 2nd Jan to 31st May 08 ) the PVC output is in the
range of 200 to 270 tonnes per week with an average of 255.5tonnes per week. This is sufficient to meet demand of onlytwo factories.
To meet the demand of third factory, it is required to increasethe average PVC output to 320 tonnes per week. This demand
will vary depending upon cable product mix. Cost benefit per tonne of PVC manufactured in-house is $174
which equates to annual cost benefit ofAED 2.0 Million.See appendix -1 for basis of calculation.
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Project Plan
Time scale
Milestone July-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08
Form Team
Finalize Charter
Gather data
Analyse data
Select solution
Interim report
Meet management
Develop plan to
implement
Closure &
Recognition
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Team Selected
Matt Procter Process Owner / Sponsor
Mathu Suthana Kumaran Green Belt
Venkat Vardhan Purchasing OfficerNissam Ashraf Quality technician
PVC Plant operatorsDay
shift
Operator
PVC Plant operatorsNight
shift
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PVC compound manufacturing process - SIPOC
Suppliers
Ducab
RM Stores
RM Stores
RM stores
RM storesRM stores
RM stores
Inputs
PVC Resin
Filler CalciumCarbonate
Plasticizers
Stabilizers
Additives( Masterbatch,Lubricant etc )
Pallets, Jumbobags
Outputs
PVC
Compound
Customers
SupplyChainDepartment -
Ducab
Downloadrecipe from
Plasmec Software
Start Boundary
Receipt of production order from Supply Chain department
CompoundingProcess
Loading ofraw materials
QualityAssurance
End BoundaryShift the finished PVC compound
to Warehouse.
All Inputs
Check the weightand Pack inJumbo bags
WIP WIP WIP WIP Book tostock
WIP
Process
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Functional Deployment Process Map for PVCCompounding process
Production Order StartReceived P.O from
Supply chain departmentLog in BaaN system Acknowledge P.O
End
Planning & materialpreparation
Release P.O & plan theproduction
Request raw materialsfrom warehouse
Receipt of raw materialsin PVC plant & check
the status
Load raw materials intoSilo & feeder. Record in
Plasmec software
Compoundingprocess
DownloadRecipe inplasmecsoftware.
Runthe
machine
Visualinspectionof product
Provide startSample to lab &
label it withBatch number
Ramp-upproduction
Quality AssuranceCollect sample from
Production runCheck the sample
As per spec.Release batch
number in system
Packing &Book to stock Fill the material
in Jumbo bagsLabel the bags
Book to stockIn BaaN software
Transfer goods towarehouse
InspectionPass
Set-upfollowspec
DecideAccept ?
Yes
No
Yes
NoQuarantine
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Quick Win Solutions to increase the PVC compound output
SOLUTIONS EASY TOIMPLEMENT
FAST TOIMPLEMENT
CHEAP TOIMPLEMENT
WITHINAUTHORITY
EASILYREVERSIBLE
QUICKWIN?
Cycle timeanalysis
No No Yes Yes Yes No
Replacement ofmixer blade in hotmixer
No No No Yes Yes No
To avoidmanufacturing Pre-coloured product
No No Yes Yes Yes No
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Critical to Quality and Critical to Process Chart
Voice of business Business issues Critical business requirement
The company cannot continue tolose the output of the machine as
well as to stop procuring thecompound externally which iscostly.
To increase the PVC compoundoutput thereby reducing the
machine downtime due tomaintenance, set-up and colorchange over time.
Weekly average PVC compoundoutput target is set at 320 Tonnes/
week
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MEASURE
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Input, Process and Output indicators
InputIndicators
Inputmeasures
Raw materials
Quality
Stock out
Customer
forecast
Supplier delivery
People
Process
Indicators
Output
Performance
Indicators
Efficiencymeasures
Machine utilizationtime
Colour changerover time
Set-up time
Maintenance down
time
Machine planneddown time
Hot mixer cycletime per batch
CCR
320tonnes ofPVCcompoundper week
Effectivenessmeasures
Weekly average PVCcompound output tonnes / week
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Measurement Plan
PerformanceMeasure
Operational
Definition
Data sourceand Location
Samplesize
Who willcollect thedata
When will thedata becollected
How will thedata becollected
Other data thatshould becollected at thesame time.
Weeklyaverage PVCcompoundoutput Tonnes / week
Machine stopdue to breakdownwith date andtime ( Start )
Machine startedrunning afterbreakdown withdate and time( End )
Improvementanalysis data PVCCompoundingPlant
Minimum 44weeks
PVC plantoperators /Mathu
2nd Jan 08 to
1st Nov 08
Systematicrecords ofmachinedowntime from2nd Jan 08
Machine utilizationtime, Color changeover time, set-uptime, Plannedmachinedowntime,Maintenancedowntime & Stockout.
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Base line
Data is normal
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Base line
Data is not stable, hence Cpk not being computedMean = 259.4 ton
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Problem Statement
Currently the average PVC output of 255.5 Tonnes per week meets the demand ofJA factory and M1 Abu dhabi factory. To meet the demand of M2 Abu dhabifactory, needs to maximize the output to 320 tonnes per week as a minimum target .
Since m/c 3001 is the only compounding machine in Ducab and has to supply PVC
compounds to across three Ducab sites, productivity improvement would reduce thenecessity to procure compound from external high cost suppliers.
Since the total maintenance breakdown is reported as 8.47 %, our six sigma team hasdecided to analyze the machine efficiency data over the period Jan to May 2008 highlighteda major opportunity to investigate the downtime incurred due to leakage in cooling pipeline. The cause of the leakage was due to rusting in pipes. Over this period, 4.80% of
machine time was lost to repair this pipeline leakage. As a consequence of this failure,additional time was also lost in shut down / start-up / set-up time on each occasion thepipe line failure is occurred. The combined lost opportunity was 14 % ( cooling pipe linefailure: 4.8% + other breakdowns: 3.66 % + set-up time : 5.52 %) and to target areduction.
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Why & Why Analysis
Low output ofPVC compound
Maintenancedowntime
MoreSet-up
Color change
over time
Leakage dueto rustingIn pipes
Rusting becauseof poor quality
of Coolant
Investigate - 1Water / coolantLeakage in
extruder coolingpipe lines
Why ?
Why ?
Machineidle
Why ?Why ?
Why ?
Why ? Why ?
Why ?
Machinebreakdowns
Late responseto resolve
the problem
Why ?Investigate - 2
P.O withmore
product mix
Why ? Stock outof raw
materials
Why ?
Insufficientpersonnel
Why ?
Why ?Poor
planning
Investigate - 3
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Mechanical breakdowns duringJan to May 08 before 6 Sigma
% Before 6 sigma 4.80 2.41 1.15 0.10
Percent 56.7 28.5 13.6 1.2
Cum % 56.7 85.2 98.8 100.0
Breakdown details
Oth
er
Totald
own
timedu
eto
mecha
nical
maintenan
ce
Totaldo
wntim
edu
eto
Ele
ctric
almainten
ance
Totald
owntim
edu
eto
leak
agein
extrud
erpip
es
9876543210
100
80
60
40
200%B
efore6sigma
Percent
Pareto Chart of machine breakdown - before six sigma project
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IMPROVE
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SOLUTION EVALUATION CRITERIA
Sl.
No.
Evaluation
Criteria
Importance
Factor
Remarks
1 SIGMA IMPACT 10 This criteria describes the main goal of this project
is PVC compound output Improvement. Thats why
the Team decided to assign maximum importance to
it i.e. 10 (in the scale of 1 to 10).
2 TIME IMPACT 09 Time impact is also of prime importanceconsidering that, earlier the solutions are
implemented, earlier the tangible benefits (towards
availability of more machine time for Processing)
shall be obtained. Thats why the Team decided to
allocate its importance factor as 09.
3 COST / BENEFITIMPACT
05
For implementation of these solutions, no extraexpenditure is required to be incurred. But once
solutions are implemented, benefitsboth tangible
& intangiblewill be obtained. Considering, this
the team allocated importance factor as 05.
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SOLUTION SELECTION CRITERIA FOR IMPROVEMENT
Sigma
Impact
Time Impact Cost / Benefit
Impact
Evaluation
Criteria
10 9 5 Importance
Root Cause Probable Solutions Co-relation of Solutions to Criteria
1
Leakage in
extruder
pipe lines of
extruder
a) New fittings can be
replaced for the coolingpipe lines whenever
leakage is reported. To do
this, spares to be available
all the times in the stores.
6 3 1 92
b) Entire cooling pipe
lines can be replaced with
stainless steel pipes but it
is not long-lasting
7 6 1 129
c) Anti-corrosive additive
can be added in the coolant
water tank along with soft
water to avoid rusting in
the fittings of the cooling
pipeline of the extruder.
9 9 4 191
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SOLUTION SELECTION CRITERIA FOR IMPROVEMENT
Sigma
Impact
Time Impact Cost /
BenefitImpact
Evaluation
Criteria
10 9 5 Importance
Root
Cause
Probable Solutions Co-relation of Solutions to Criteria
2Number
of
machine
set-up is
high
a) To reduce the machine downtime by
doing preventive maintenance. 7 7 2 143
b) To keep spare parts in stores in case
of any mechanical or electrical
breakdowns.
6 5 1 110
3
More
number
of color
change
a) Production order to be prepared byproper planning to avoid product mix
8 6 2 144
b) To keep all the required raw
materials in stock to avoid raw material
stock out.
8 8 3 167
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Implementation
In order to exercise control over the improvedprocesses, operators are advised touse the pre-mixed anti-corrosive additive
( 0.5 % Drewgard 315 with soft water ) as acoolant.
A can holding 20 litres of pre-mixed coolant is
kept near the machine and operators will refillthe coolant into the coolant tank to maintainthe minimum level.
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ACTION PLAN - PILOT IMPLEMENTATION
SL.
NO.
DESCRIPTION RESPONSIBILITY START
DATE
DUE DATE STATUS AND
ACTIONS
01 Initial Data Collection of machine efficiency and idle
hours due to maintenance, set-up time, color change
over time etc. Week wise performance
Plant operators / Mathu 15nd July 08 25th July 08 Completed
02 Addition of anti-corrosive additive in the coolant tank
to prevent the leakage in extruder cooling pipe lines.
Plant operators 1st June 08 2nd June 08 Completed
03 To reduce the machine downtime by doing preventive
maintenance
Maintenance / Mathu 15th July 08 15th oct 08 Completed
04 To keep all the required raw materials in stock to
avoid raw material stock out.
Venkat Vardhan / Mathu 10th July 08 15th Aug 08 Completed
05 Monitoring and recording of machine downtime
details to see the performance of new coolantweek
wise performance
Plant operators / Mathu 15th July 08 1st Nov 08 Completed
06 Production order to be raised in a planned manner to
avoid frequent product mix - week wise performance
Venkat Vardhan 10st July 08 1st Nov 08 Completed
07 Testing of PVC compound to check for any variation.
daily performance review
Nissam 2nd Jan 08 1st Nov 08 Completed
08 Data collection of PVC compound outputweek wise
performacne
Mathu 2nd Jan 08 1st Nov 08 Completed
09 Final Data Collection (for finding the entire machine
idle hours )
Plant operators / Mathu 2nd Nov 08 10th Nov 08 Completed
10 Statistical Analysis & Final Conclusion Mathu 15st Nov 08 15th Jan 09 In progress
ACTION PLAN : Data Period : 2ndJan 2008 to 1stNov 2008
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STATISTICAL EVALUATION OF IMPROVED DATA
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CONTROL
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Revised Functional Deployment Process Map for PVCCompounding process from June 2008 onwards.
Production Order StartReceived P.O fromSupply chain department
Log in BaaN system Acknowledge P.O End
Planning & materialpreparation
Release P.O & plan theproduction
Request raw materialsfrom warehouse
Receipt of raw materialsin PVC plant & checkthe status
Load raw materials intoSilo & feeder. Record inPlasmec software
Compoundingprocess
DownloadRecipe inplasmecsoftware.
Runthemachine
Visualinspectionof product
Provide startSample to lab &label it withBatch number
Ramp-upproduction
Quality Assurance Collect sample fromProduction runCheck the sample
As per spec.Release batchnumber in system
Packing &Book to stock Fill the material
in Jumbo bagsLabel the bags
Book to stockIn BaaN software
Transfer goods towarehouse
InspectionPass
Set-upfollowspec
DecideAccept ?
Yes
No
Yes
NoQuarantine
Added in thechart afterImprovement
CoolantLevelCheck
Yes
NoTop up thecoolant level
P 1
P 3
P 2
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CONTROL MEASURESPROCESS CONTROL SYSTEM :
Process Description : PVC Compounding process Process Customer : Supply Chain
department
Critical Customer Requirement : 320
tonnes of PVC compound per week
Activity in Flow-Chart Input-Process-
Outcome
Indicators
Control
Limits
Checking Item Frequency Responsibilit
y
Contingency
Action Plan
Activity
No.
Activities Charts & Graph
Type
Specs /
Target
What to Check When to
Check
Who Checks Action Reqd. for
Exception
P 1 To check thecoolant level in the
coolant tank before
starting the
machine
Machine utilizationtime, machine down
time due to leakage,
planned down time
& weely output
checks
Up themaximum
level in the
coolant tank
Production lost inhours due to leakage
in extruder pipelines
Each andevery shift Plantoperators To inform Materialtechnologist
P 2 Maintenance
down time
Machine downtime
due mechanical,
electrical, Leakage
and weekly output
checks
As low as
possible
Production lost in
hours due to
breakdowns
Each and
every shift
Plant
operators
To inform materials
Technologist
P 3 Productivity
Improvement
Hot mixer cycle
time per batch,
machine downtime,
output checks, raw
material stock out.
320 tonnes
of PVC
compound
per week
To measure the
production output
weekwise
Week wise Mathu To inform Materials
Manager
CONTD
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STANDARD TO BE FOLLOWEDSTANDARDS & PROCEDURES STATUS
FOLLOWING TWO TARGETS HAVE BEEN DECLARED AS STANDARD
IN PVC COMPOUNDING PLANT.
A. IN ORDER TO EXERCISE CONTROL OVER THE IMPROVED
PROCESSES, OPERATORS ARE ADVISED TO USE THE PRE-MIXED
ANTI-CORROSIVE additive ( 0.5 % Drewgard 315 with soft ware ) AS A
COOLANT. A CAN HOLDING 20 LITRES OF PRE-MIXED COOLANT ISKEPT NEAR THE MACHINE AND OPERATORS WILL REFILL THE
COOLANT INTO THE COOLANT TANK TO MAINTAIN THE MINIMUM
LEVEL OF THE COOLANT TANK.
B. OPERATORS SHOULD RECORD THE DOWN TIME DETAILS ALONG
WITH SET-UP TIME, COLOR CHANGE OVER TIME, MACHINE RUNTIME, PLANNED DOWN TIME AND PVC COMPOUND OUTPUT
DETAILS IN THE FILE LOCATED IN SHARE DRIVE: PVC LOG SHEET
:KPI -DATA
INCORPORATED IN
PROCESS
SPECIFICATIONDu/PS/3001 ISSUED
& IMPLEMENTED
INCORPORATED IN
PROCESS
SPECIFICATION
Du/PS/3001 ISSUED
& IMPLEMENTED
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TRAINED ASSOCIATES
SL.
NO.
TASKS PARTICIPANTS RESPONSIBILI
TY
TRAINING HELD
ON
01 SIX SIGMA INTRODUCTION &
SUCCESS STORY FOR THE PROJECT.
EMPLOYEES OF PVC
COMPOUNDING PLANT
& INTERNAL
CUSTOMERS
MATT PROCTER
/ MATHU
7th JANUARY 09
(1400 TO 1700
HRS.)
02 SIX SIGMA TARGETS OF PVC
COMPOUND OUTPUT & AWARD
PROPOSAL DAYS.
PVC COMPOUNDING
PLANT EMPLOYEES
MATT PROCTER 14TH JANUARY 09
(1500 TO 16:30
HRS.)
03 SUBMISSION OF CORRECT
ESTIMATE IN PROPER FORMAT FOR
SUCCESS OF SIX SIGMA.
MATERIALS
TECHNOLOGIST FROM
PVC COMPOUNDINGPLANT
MATHU 14TH JANUARY 09
TO MATTPROCTER (
MATERIALS
MANAGERPVC
COMPOUNDING
PLANT
(1000 TO 1200
HRS.)
TRAINING PROGRAM REGARDING SIX SIGMA AWARENESS :
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PROJECT BENEFITTANGIBLE BENEFIT :
Calculation of Savings Summary
Weekly average PVC compound output during Jan to May 08before implementation of Six sigma project. = 255.5 Tonnes
Weekly average PVC compound output during June to Oct 08after implementation of Six sigma project = 316.0Tonnes
. Increase in average ouput per week in Tonnes = 316 - 255.5
= 60.5 Tonnes
Increase in average output per annum in Tonnes = 60.5 x 52 weeks= 3146 Tonnes
A cost benefit per tonne of compoundafter variable overheads + machine depreciation costs = $ 174
Assuming a pessimistic cost benefit per tonne at $ 174 = $ 174 X 3146 Tonnes
after variable overheads equates to an additional costsavings of
= $ 547404
= AED 2011709
Potential savings in a year = AED 2.0 Million
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Project Closure
The improvement was accepted andappreciated by Ducab management.
The progress and benefit of the project wereshared and verified with all Stakeholders.
Team was rewarded with recognition in variousimprovement forums.
The learning were used in other areas of cable
manufacturing process especially the use ofcorrosion inhibitor was adopted in manymachines where water is being used as coolingmedium.
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Questions
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Thank you