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Improving Asset Utilization

                                                   The Key to World Class
                                                       Manufacturing


PROPRIETARY NOTICE

The information contained on all pages of this document consists of technical, commercial, and / or financial information which is
confidential and proprietary to Woodard & Curran. This information is presented in confidence to our Customer with the understanding that
it may not be reproduced or used, in whole or in part, for any purpose other than evaluation of the services described herein.
Our Objective
    Assist client in their path toward a more
    competitive, world-class, efficiency-
    driven, agile & growth-oriented supply
    chain network
   Woodard & Curran values this beverage client as
    a major strategic client.
   We want to be the consultant of choice in
    engineering services.
Focus on Manufacturing
             Performance
 Methodology Parameters:
  – Measures effectiveness of an asset
  – Based on industry standards to compare & benchmark
    base line metrics
  – Repeatable and consistent
  – Flexible and scalable
  – Based upon an open technology

 Metric to be used is:
      Overall Equipment Effectiveness (OEE)
How is OEE derived?
              Time                        Example Time Lost Causes             Key Performance Indicators


                                                                         Overall Equipment Effectiveness ==
                                                                          Overall Equipment Effectiveness
          Single Shift
           Single Shift                                                  Availability xxPerformance xxQuality
                                        OEE Factor                     World Class(PE) x Quality
                                                                          Availability Performance
                                                                          (EA)
                                                                           (EA) xx         (PE)   x (QR)(QR)
                                                  Lunch Breaks
                                        Stops



                                                   Lunch Breaks
                                       Stops



      Available Time
       Available Time              Availability
                                            Meetings
                                                                            90.0%
                                                     Meetings

                                   Performance
                                         Equipment Failure                 95.0%
                                Down




                                                                          Availability ==Available Time ––Down Time
                                Time




                                          Equipment Failure
                               Down




      Run Time                                                             Availability Available Time Down Time
                               Time




       Run Time                                                                                 Available Time
                                                Setup & Adjustment                               Available Time
                                   Quality & Adjustment
                                         Setup
                                                                            99.9%
                          Losses




                                                 Reduced Speed
                          Speed




                                                                           Performance ==         Production
                         Losses




                                                  Reduced Speed
                         Speed




 Full Capacity                     Overall OEE Stops                        Performance
                                                                            90.0%                  Production
  Full Capacity
                                        Idling & Minor
                                                                            90.0%           Rated Speed xxRun Time
                                                                                             Rated Speed Run Time
                                                Idling & Minor Stops
               Rejects




  Good                                               Rejects
              Rejects




   Good                                               Rejects                   Quality ==Production -Rejects
                                                                                 Quality Production -Rejects
Production
 Production                                                                                    Production
                                                  Reduced Yield
                                                   Reduced Yield                                Production
What is the program Woodard &
     Curran proposes???


                                   Analyze
      Measure OEE
                                equipment data




                    Implement
                     solution
Phase 1: Measure
 Evaluate/upgrade line communication
  architecture
 Map data in OEM control processors
 Install data server and concentrator
 Install KPI software

 Then … collect data for three months
Quick road to the benefits
Packaged KPI application?…
   Decreased time-to-deployment
    – Accelerates payback and ROI


   Reduced project risk and cost
    –   Well defined scope
    –   Proven, pre-packaged application functionality
    –   Based on extensive domain expertise, knowledge of
        market best practices, and operational/business
        processes


   Sustainability of solution
    –   Packaged software upgraded periodically to stop
        technology stagnation
Phase 1: Deliverables
 Factory Metrics installed
  on two lines

 Facility controls
  architecture upgraded and
  documented

 Listing of data tables in
  OEM equipment
Phase 2: Analyze
Performance affected by:
  – Line design
  – Equipment reliability
  – Equipment integration
  – Packaging material
    suppliers
  – Operator training
  – Plant culture and
    management
Phase 2: Deliverables
 Recommendations for
  improvement
 Prioritize problems to
  tackle
 Contractual options for
  W&C to implement
  solutions with possible
  performance
  guarantee
Phase 3: Implement

 Procure equipment and
  contractors as needed

 Schedule upgrades on
  plant equipment

 Implement additional
  training as needed

 The key to success… our
  Partners in Change
The Change Management Team


                                               Woodard & Curran
                                               Program Manager

                                                                           Organization
W&C Engineers          KPI Software Supplier        OEMs                                      Material Suppliers
                                                                       Training Consultants


                  Controls Design                           Primary Packaging Equipment




                   Programmers                             Secondary Packaging Equipment




                Packaging Engineers
Next Steps

 Client selects two target sites

 Preliminary Engineering Proposal
   – Evaluate controls architecture
   – Analyze OEM processor data structure

 Phase 1 and 2: Measure and Analyze
   –   Implement necessary control upgrades
   –   Install Factory Metrics
   –   Collect data and issue report

 Phase 3: Implement
   – Implement corrective action

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World Class Manufacturing Asset Utilization

  • 1. Improving Asset Utilization The Key to World Class Manufacturing PROPRIETARY NOTICE The information contained on all pages of this document consists of technical, commercial, and / or financial information which is confidential and proprietary to Woodard & Curran. This information is presented in confidence to our Customer with the understanding that it may not be reproduced or used, in whole or in part, for any purpose other than evaluation of the services described herein.
  • 2. Our Objective Assist client in their path toward a more competitive, world-class, efficiency- driven, agile & growth-oriented supply chain network  Woodard & Curran values this beverage client as a major strategic client.  We want to be the consultant of choice in engineering services.
  • 3. Focus on Manufacturing Performance  Methodology Parameters: – Measures effectiveness of an asset – Based on industry standards to compare & benchmark base line metrics – Repeatable and consistent – Flexible and scalable – Based upon an open technology  Metric to be used is: Overall Equipment Effectiveness (OEE)
  • 4. How is OEE derived? Time Example Time Lost Causes Key Performance Indicators Overall Equipment Effectiveness == Overall Equipment Effectiveness Single Shift Single Shift Availability xxPerformance xxQuality OEE Factor World Class(PE) x Quality Availability Performance (EA) (EA) xx (PE) x (QR)(QR) Lunch Breaks Stops Lunch Breaks Stops Available Time Available Time Availability Meetings 90.0% Meetings Performance Equipment Failure 95.0% Down Availability ==Available Time ––Down Time Time Equipment Failure Down Run Time Availability Available Time Down Time Time Run Time Available Time Setup & Adjustment Available Time Quality & Adjustment Setup 99.9% Losses Reduced Speed Speed Performance == Production Losses Reduced Speed Speed Full Capacity Overall OEE Stops Performance 90.0% Production Full Capacity Idling & Minor 90.0% Rated Speed xxRun Time Rated Speed Run Time Idling & Minor Stops Rejects Good Rejects Rejects Good Rejects Quality ==Production -Rejects Quality Production -Rejects Production Production Production Reduced Yield Reduced Yield Production
  • 5. What is the program Woodard & Curran proposes??? Analyze Measure OEE equipment data Implement solution
  • 6. Phase 1: Measure  Evaluate/upgrade line communication architecture  Map data in OEM control processors  Install data server and concentrator  Install KPI software  Then … collect data for three months
  • 7. Quick road to the benefits Packaged KPI application?…  Decreased time-to-deployment – Accelerates payback and ROI  Reduced project risk and cost – Well defined scope – Proven, pre-packaged application functionality – Based on extensive domain expertise, knowledge of market best practices, and operational/business processes  Sustainability of solution – Packaged software upgraded periodically to stop technology stagnation
  • 8. Phase 1: Deliverables  Factory Metrics installed on two lines  Facility controls architecture upgraded and documented  Listing of data tables in OEM equipment
  • 9. Phase 2: Analyze Performance affected by: – Line design – Equipment reliability – Equipment integration – Packaging material suppliers – Operator training – Plant culture and management
  • 10. Phase 2: Deliverables  Recommendations for improvement  Prioritize problems to tackle  Contractual options for W&C to implement solutions with possible performance guarantee
  • 11. Phase 3: Implement  Procure equipment and contractors as needed  Schedule upgrades on plant equipment  Implement additional training as needed  The key to success… our Partners in Change
  • 12. The Change Management Team Woodard & Curran Program Manager Organization W&C Engineers KPI Software Supplier OEMs Material Suppliers Training Consultants Controls Design Primary Packaging Equipment Programmers Secondary Packaging Equipment Packaging Engineers
  • 13. Next Steps  Client selects two target sites  Preliminary Engineering Proposal – Evaluate controls architecture – Analyze OEM processor data structure  Phase 1 and 2: Measure and Analyze – Implement necessary control upgrades – Install Factory Metrics – Collect data and issue report  Phase 3: Implement – Implement corrective action