PRODUCT CHANGEOVERS OPTIMIZATION IN APDO PACKING, PROCTER & GAMBLE, RAKONA SVOČ FST 2012

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1 PRODUCT CHANGEOVERS OPTIMIZATION IN APDO PACKING, PROCTER & GAMBLE, RAKONA SVOČ FST 2012 Jana Nachlinger, West Bohemia University, Univerzitni 8, Pilsen Czech Republic ABSTRACT The aim of this paper is to describe product changeovers in APDO Packing, Procter&Gamble, Rakona. Furthermore, it expounds WPI method used for changeovers optimization. It also contains description of the progress of product changeovers optimization and, finally, results of project are presented in this paper. KEYWORDS Changeovers, process optimization, WPI. SMED, lean production. INTRODUCTION Changeovers between different products tend to be more frequent, so as the producer could better respond to customers needs. But the changeovers are time consuming and therefore there is a need to optimize them to lower the loss. SMED (Single Minute Exchange of Dies) is a method used for changeover optimization. WPI (Work Process Improvement) is a standard tool used for process optimization in Procter&Gamble based on SMED. This method was used for product changeovers optimization in APDO (production of antiperspirants and deodorants). PROBLEM SOLVING Rapid changeovers skill is one of the components of lean production. Lean production methodics deals with seven basic types of waste, when optimizing changeovers, the main focus lies on these four types of waste: waiting, overprocessing, non-effective manipulation and motion and quality control. SMED Single Minute Exchange of Dies is one of the methods of lean production. It allows effective way of transfer from production process of current product to following product. Rapid changeover is key for decreasing big production loss and improvement of the material flow. In history, cost for changeovers was minimized by increasing the amount of production units in one batch. Proportional part of changeover cost was then divided among higher number of products and so it was lowered. Decreasing of the changeover time (cost) increases productivity, and enables production of smaller batches. Smaller batches need lower inventory (stock), which means lower costs for storage of raw material and final product. When implying SMED, failures in machine setting is eliminated and so the production of defect products is lowered. The organization of the process is improved and there are less tools needed for the changeover. It all has a positive effect on the operators moral, as it is easier for them to achieve expected results. SMED implementation includes separation of internal and external operations (internal are those, which can only be executed when the production line is stopped, external can be done when the line is still running). Next step is to transfer internal operations to external, whenever it is possible. Another SMED technique is to standardize function, not shape, use fast connecters or eliminate connecting elements at all and use intervening jigs. The operations are made to run parallel, any adjustments are eliminated and mechanization is used wherever possible. [1] WPI WPI (Work Process Improvement) is standardized tool used in Procter & Gamble for improvement of processes. It is based on principles of lean production and uses its tools. It combines them and performs in clear and easily understandable form. User follows particular steps and uses given tools (diagrams, sheets,..). WPI can be applied on any process. For all processes, WPI uses the same procedure, tools as well as thought processes. The basic principle is that productivity determines the price. WPI tries to use all the sources and lower the loss. At the same time, it eliminates

2 frustrating chaos by giving everyone a clear role in the process. It also reduces planned downtime, e.g. during the changeovers. The aim of WPI is work process loss elimination and driving stability in human activities. 5 steps of WPI Step 1 Preparation This step is about preparation to develop a standard with associated management tools. The teams assures that their project has a clear connection to company business needs. Step 2 Restore the Work Process If there is an existing standard for the process, and it is not followed, we can avoid spending time optimizing the process just by returning the process into basic conditions, which means restore the existing standard. Step 3 Understand the Situation The key thing in this step is to go, see and document the reality as it is, see the waste and eliminate it, notice other improvement opportunities. Step 4 Improvement Implementation In this step it is necessary to test new standard multiple times and finalize it, evaluate the stability and define standards management for all levels. Step 5 Standardization & Reapplication Step 5 is about reapplying the improvement and maintaining the standards management system. 3 tools of WPI Travel & Material Diagram (Flow Chart) This diagram is used for drawing down the reality. In the layout of production line, all the movement and manipulation is recorded. Time Observation Sheet is used for capturing the sequence and time of each step in a cycle of work for each person. The team is looking for variation in the steps, sequence and time by measuring the cycles multiple times. Waste is to be eliminated and other improvement opportunities are captured. Effort Balance Chart is based on Time Observation Sheet. All the activities are drawn in a chart, each bar representing a single person to see where the work can be improved and balanced across the team. There will be two charts, one for current situation and another one for after improvements state verifying the change. WPI project for product changeovers optimization in APDO, Procter & Gamble, Rakona Step 1 Preparation APDO production has a high complexity of products, that is why the loss for changeovers is relatively high (12 % planned downtime for changeovers). The highest loss is on product changeovers (about 75 % of the loss), while code, label and scent changeovers loss stands for the rest (25 %) of the loss. That is why the focus of optimization was on product changeovers. As there are more than 150 types, we decided on the one which occured most often. The aim was to reduce the loss for changeovers for 2 %, that is from current 12 % of planned downtime to 10 %. Step 2 Restore the Work Process For changeovers there was no standard which could be used and restored. So it was necessary to create a new one. Step 3 Understand the Situation The observation team consisted of four members. One of them was focusing on the movement around the packing line during the changeover and drawing all the motion down into Travel and Material Diagram.

3 Figure 1 Travel and Material Diagram The movement of the operator is shown in this picture, each operator signed with different colour. Inequality inbetween the operator can be clearly seen from this diagram. While one operator is moving a lot around the line the whole time, another one serves only two machines and moves around very seldom. Other three members of the team were observing each one of the operators, writing down all their activities and their duration. Figure 2 Time Observation Sheet Some of the activities were measured multiple times, so as an average value could be set. On base of the time observation sheets, the effort balance chart was created: Figure 3 Effort Balance Chart

4 Activities marked in green are those, which cannot be shortened or eliminated. Orange actions can be shortened and red actions eliminated. Left part of the chart is the real situation, the right part is ideal. As seen from the chart, the time difference between the two versions is 20 minutes. Some of the tasks were shortened by adding one operator to help with the activity, others by putting the tools or parts within easy reach. The main contribution had the change in organization. While before improvement the filler was stopped during the whole changeover, now the filling is started again earlier, as the filled canisters go through a cooling tunnel for 25 minutes before getting into the rest of the line. This time can be used for finishing the changeover in the end of the line. Step 4 Improvement Implementation New standard was suggested on the base of one changeover, and it was reapplied on the other types of product changeovers. It was first tested with one shift team for a month. When new time limits were validated, other two shift teams were also trained for new standard and started to execute it from the beginning of February Step 5 Standardization and Reaplication New Standard Operation Procedure was created and all the operators trained for new product changeover standard. Results Main result of WPI project for product optimization was the change in the organization of the changeovers. Operators have clearly defined roles and responsibilities during the changeover, and they plan it at the shift handover. First operator focuses on the filler, second one on the cappers and third one changes setting on labeller and shrinkwrapper. Figure 4 Areas of responsibility during product changeovers Clear devision of the roles reduces the chaos and stress. Activities run parallel instead of in series. Time loss for the product changeovers was reduced significantly. While the average for time period from October 2012 to January 2012 was 70 minutes per one product changeover, in March 2012 it was 48 minutes, which means reduction of the time loss for about 30 %.

5 This saving was in fact invested in other changeover, i.e. in producing smaller batches, which helped to lower the value of inventory from average (Oct 11 Jan 12) 3.78 MM$ to 3.1 MM$ in March CONCLUSION AND RECOMMENDATIONS WPI method based on principles of lean production, especially SMED tool, was introduced in this paper as effective way of improving work processes. On the example of product changeovers in APDO Packing, Procter & Gamble, Rakona, it was shown the results which can be achieved by following the five steps of WPI. The benefit is huge, especially when considering that the project was executed with no capital, just by reorganizing the process. REFERENCES [1] Jirásek, J.: Štíhlá výroba. Praha: Grada, [2] Košturiak, J., Frolík, Z.: Štíhlý a inovativní podnik. Praha:Alfa Publishing s.r.o., [3] Ward, A. C.: Lean product and process development. Cambridge: Lean Enterprise Institute, [4] Womack, J., Jones, D.: Lean thinking : banish waste and create wealth in your corporation. New York: Free Press, [5] Wikipedie: Štíhlá výroba [online]. Poslední změna v 12:35 [cit ]. Dostupné z: