Line throughput increased nearly 20% from 1400 tons to 1678 tons. This
in turn eventually increased throughput time to 1800 tons per
shift.
Description of Problem
A small manufacturing division was encountering severe operational and maintenance delays. Output had dropped significantly. Throughput was running at about 1400 tons per shift. This compares with a competitor benchmark of nearly 2000 tons per shift. Consideration of the installation of a new line was being contemplated. It was estimated that a new line would cost approximately $25,000,000.
Approach
The methodology utilized was asset utilization as well as problem solving techniques. The latter was used to reduce variability in a number of operational factors directly impacting management of the process. Throughput and delays were studied in terms of duty cycle and efficiency.
Results
Line throughput increased nearly 20% from 1400 tons to 1678 tons. This in turn eventually increased through time to 1800 tons per shift. Delays dropped nearly 36% and duty cycle improved more than 8%. A production record of nearly 2600 tons was achieved soon after this. The goal was to achieve slightly more than 2000 tons per shift consistently.
Taking into account the past average production as a bottleneck and the subsequent improvements that followed as well as the cost of a new line provided a cost avoidance of approximately $16,000,000 per year.
Submitted by LWI
Consultant
Bob Pahlkotter