Project #3: Production Cost Savings at Washington Post

Where Innovation Is Tradition

Project #3: Production Cost Savingsat Washington Post

SYST 798/OR 680Progress Report #1

10 March 2011

Thomas KuklinskiTimothy Smith

Ling WuVladimir Zivkovic

Where Innovation Is Tradition

Overview

• Clients• Problem Statement• Methodology/Technical Approach• Task Breakdown Structure and Status• Earned Value Management• Issues/Concerns• Way Forward• Questions

Where Innovation Is Tradition

Clients

• Kent Renk, Materials Handling Foreman, Washington Post, [email protected],

703-916-2471 (office), 703-916-2471(cell)

• Kim Hammett, Assistant Superintendent for Materials Handling, [email protected],

703-916-2447 (office), 703-869-2463 (cell)

Where Innovation Is Tradition

Problem Statement• Background

• Fall of 2010 GMU students did initial static analysis of the Washington Post’s Shipping and Receiving Department in Springfield, VA

• They conducted a process evaluation, an analysis of labor, and an analysis of routes which resulted in three recommendations:• Labor cuts (implemented)• Route simplifications• Improved data tracking

• Problem Statement• Our objective will be to maximize the efficiency of the Washington Post’s materials

handling system at their four work centers in an effort to generate cost savings to the overall operation

• We would like to bring to life and build upon the static analysis done by previous group in a dynamic simulation model of the helper component of the work centers

• Stakeholders• Materials Handling Foreman(Kent Renk)

Where Innovation Is Tradition

Methodology/Technical Approach• Process Analysis (started)

• Build upon last group’s work done on process evaluation• Develop a complete and detailed qualitative understanding of how the Shipping and

Receiving Department operates

• Data Collection and Analysis (started)• Collect data from both the materials tracking system (i.e. MTC) and subject matter

experts• Obtain descriptive statistics on each component of the system

• Model Selection and Construction (started)• Evaluate model alternatives based on quantitative/qualitative data and client needs• Construct and test model (e.g. turn system processes into Arena modules)

• Output Analysis (not started)• Evaluate output in terms of cost and throughput• Iterate

Where Innovation Is Tradition

Process AnalysisDaily Insert

Sunday Packaging

Racks

Trucks Materials Handling

2a. Daily Insert Ads --->

1. Daily Insert Ads & Sunday Packaging --->

2a. Sunday Packaging --->

Run of Press

2c. Jackets

3. Completed Jackets <----

4. Collated Sunday Packaging <----

Run of Press

Headsheets (outside scope)

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Process Analysis

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Data Collection and Analysis • Labor data

• Obtained labor markup data for this period • Broken down by work center, day, shift, and role

• Labor assignments are being zoned to different routes within our process

Sunday Packaging: Monday  1st Shift (6:30am-2:00pm) 2nd Shift (2:15pm-9:45pm) 3rd Shift (10:00pm-5:30am)Collator 1 2 2 0Collator 2 0 0 0Collator 3 2 2 0Collator 4 3 3 3Total 7 7 3

Where Innovation Is Tradition

Data Collection and Analysis • Route data

• Obtained Summary Report for February 7-12 created by MTC• Data obtained for a “normal” week of work• Contains pallet moves for all materials throughout the system• MATLAB and MS Excel parsers are being developed to determine (1) raw material

arrival processes, (2) production targets, and (3) route locations, frequencies by day/shift, and time

• Mapping of location IDs in the MTC data are being linked to locations in our system• Client will fill in gaps in the processes not collected in MTC

• Materials not scanned properly

ISSUE DATE PALLET ID CLASS DESCRIPTION LOCATION DATE / TIME USER ID LOCATION DATE / TIME

06/22/2008 R555147 CONSUMABLE Stretch wrap, clear HAARHOFFDS RD0101/06/2011

12:48:45 PM

06/22/2008 R555147 CONSUMABLE Stretch wrap, clear RD0101/06/2011

01:14:49 PM MACKLIND H52A01/06/2011

01:15:44 PM

06/22/2008 R555147 CONSUMABLE Stretch wrap, clear H52A02/07/2011

05:30:33 PM KUBEAG C4CON02/07/2011

05:30:38 PM

Where Innovation Is Tradition

Model Selection and Construction• Discussion with client and additional system understanding has allowed us

to settle with an Arena simulation model• It is very important for the client to be able to use the model to

forecast the impact of different labor markups on production targets for both daily inserts and Sunday packaging• Phase 1 - Develop an Arena model that allows the client to play

with “what-if” labor markups to hit production targets (required)• Phase 2 – Add on an optimization engine that determines labor

markups at minimal cost to the client to hit production targets (desired)

• Currently constructing a straw man Arena simulation model and researching Arena modules that would be compatible with our system

Where Innovation Is Tradition

Model Selection and Construction

C1 Machine

S1 MachineDockDock

Run of Press

U(2,5)U

(4,5

)

U(6,8)Normal(2, 4)

EXP(10)

Raw Materials

Jack

ets

EXP(5)

Monday, Shift 1

Production Targets

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Task Breakdown Structure and Status

Where Innovation Is Tradition

Earned Value Management

1/23/2

011

1/27/2

011

1/31/2

011

2/4/20

11

2/8/20

11

2/12/2

011

2/16/2

011

2/20/2

011

2/24/2

011

2/28/2

011

3/4/20

11

3/8/20

11

3/12/2

011

3/16/2

011

3/20/2

011

3/24/2

011

3/28/2

011

4/1/20

11

4/5/20

11

4/9/20

11

4/13/2

011

4/17/201

1

4/21/2

011

4/25/201

1

4/29/2

011

0

100

200

300

400

500

600

700

Washington Post Project Earned Value

Earned Value (BCWP)Actual Cost (ACWP)Planned Value (BCWS)H

ours

Where Innovation Is Tradition

Issues/Concerns• Defining labor zones and their interactions with

components in the Arena simulation model• Extracting useful information from the given Pallet

Summary Report (missing data)• Packaging the Arena simulation model

• Graphical User Interface• Model for each day vs. Large dynamic model

Where Innovation Is Tradition

Way Forward• Data Collection and Analysis

• Finish extracting relevant data from the Pallet Summary Report– Determine raw material arrival processes– Determine production targets– Determine route distributions

• Modeling• Complete straw man model

– Labor zones!!• Create the initial draft of the Arena simulation model using straw man

model• Meet with sponsors to go over the draft Arena simulation model • Modify the model based on feedback and clarification from sponsor

Where Innovation Is Tradition

Questions