TRS+Presentation[1]

P&BP&B

TT WhatWhat??

TTRRSS

TT RR SS““TTaux de aux de RRendement endement

SSynthetique”ynthetique”

A A new waynew way to measure to measure overall line efficiency overall line efficiency in a in a consistentconsistent & & comparablecomparable way way across sites & across sites &

technologiestechnologies

The measure is to be used as a basis for The measure is to be used as a basis for continuous continuous improvement improvement && investment decisions investment decisions inin Masterfoods Masterfoods

EuropeEurope

it’s a French thing!!!it’s a French thing!!!

““TTaux de aux de RRendement endement SSynthetique”ynthetique”

Some Translations...Some Translations...“Simple yield rate” BD

“Consolidated effectiveness measure” HF

“Global efficiency measure” MG

“Ratio efficiency condensed” ED

Efficiency ChallengesEfficiency Challenges

Site Based MeasuresSite Based Measures (a*(b-c))/100=Eff.(a*(b-c))/100=Eff.

We need to remove interpretation & allowances We need to remove interpretation & allowances & create a global measure that is accepted!& create a global measure that is accepted!

””OK” ???OK” ???

“NoNo, it’s, (a/b)-c*100!!”

Actual Tonnes Produced Actual Tonnes Produced Associate Paid Hours * Theoretical Line CapacityAssociate Paid Hours * Theoretical Line Capacity

TRS definitionTRS definition

Cause for debate?Cause for debate?

THEORETICAL LINE CAPACITYTHEORETICAL LINE CAPACITYThe Bottleneck defined capacity, Using A30 @ Plan MixThe Bottleneck defined capacity, Using A30 @ Plan Mix

The overall line efficiency is based on the The overall line efficiency is based on the following assumption:following assumption:

TRS assumptionTRS assumption

Working time is counted as defined by the Working time is counted as defined by the line's shift pattern, but maintenance & line's shift pattern, but maintenance & cleaning activities which take place cleaning activities which take place outside of the shift pattern are also outside of the shift pattern are also included. A very simple picture for the included. A very simple picture for the counted working time is the time between:counted working time is the time between:"switching the lights in the factory on and "switching the lights in the factory on and off"off"

TRS definitionTRS definition

ASSOCIATE PAID HOURS = All time that associates are on the line,ASSOCIATE PAID HOURS = All time that associates are on the line,No exception for:No exception for:

Cleaning,Cleaning,Start-up,Start-up,Shutdown,Shutdown,Changeovers,Changeovers,P.M.’s.P.M.’s.

Only allowance is for:Only allowance is for:Holidays,Holidays,Demand,Demand,Major engineering.Major engineering.

4 x 8 20Shifts 160 Paid Hours

Opening Time 160

Less Fixed Activities

Start Up 3

Maintenance 4 13 147

Cleaning 6

Less Losses in Running Time

Flexibility

Changeovers )

Product Mix ) 3% 4.4 142.6

Weekly Cycle )

Effi ciency

Plant Uptime 85% 21.4 121.2

TRS = 121.2 = 75%

160

TRS Example #1

TRSTRS

TRS Example #2TRS Example #2

EfficiencyEfficiency

Start-upStart-up CleanCleanRunRun MaintainMaintain

3 hrs3 hrs 129 hrs129 hrs 8 hrs8 hrs4 hrs4 hrs

144 hrs144 hrs

Line runs for 100 hours (some breakdowns, changeovers, Line runs for 100 hours (some breakdowns, changeovers, etc.)etc.)

•Efficiency=100/129=78%Efficiency=100/129=78%

•TRS=100/144=69% (the line is crewed for five days per TRS=100/144=69% (the line is crewed for five days per week, with one day of cleaning/maintenance)week, with one day of cleaning/maintenance)

168 hrs/week168 hrs/week

Lights offLights offon on

SundaysSundays

Kaizan, Kaizan, SMED, etc.SMED, etc.

TRS breakdown time reportingTRS breakdown time reporting

MaximuMaximum m

availablavailable TRS e TRS 100%100%

TRS 40%TRS 40%

60% 60% ‘Opportuni‘Opportuni

ty’ty’

20% 20% ‘‘Fixed’Fixed’

5% 5% FlexibilitFlexibilit

yy

De-De-complexitycomplexity

20% 20% BottlenecBottlenec

kk

?Capital ?Capital InvestmeInvestmentnt

15% 15% ReliabilityReliability Mtce/Mtce/

engineeringengineering

Reporting Reporting StandardisationStandardisationBENCHMARK AGAINST PERFECTION

Site: aaa Line: xxx – Period 6 to Period 9 2001

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% of use

Uncrewed losses 33,4%

Scheduling losses (low

demand, ch-o, pack mix)

8,1%

Operations losses - planned

(PM's, cleaning)

2,4%

Operations losses -

unplanned (breakdowns,

scrap&rework)

8,3%

Actual produced 47,8%

1

TRS - GLOBAL

VERSUS PLAN OBJ ECTIVESite: aaa Line: xxx From P6W1 to P9W4 2001

60%

65%

70%

75%

80%

85%

90%

95%

100%

% of use

Scheduling losses (low demand,ch-o, pack mix)

12,1%

Operations losses - planned(PM's, cleaning)

3,5%

Operations losses - unplanned(breakdowns, scrap&rework)

12,5%

Actual = TRS 71,8%

1

TRS - DETAI LS

VERSUS OPERATI ONAL OBJ ECTI VESite: aaa Line: xxx P9w4

60%

65%

70%

75%

80%

85%

90%

95%

100%

% of use

Scheduling speed losses (pack-mix)

4,6%

Scheduling downtime (ch-o,materials unavailable)

7,5%

Planned Operations speedlosses (PM's wrappingmc's)

0,9%

Planned Operations downtime(PM's line, cleaning)

2,7%

Reliability speed/lanes losses 4,9%

Reliability downtime 3,4%

Scrap/rework 3,8%

Unexplained 0,4%

Actual =TRS 71,8%

1

MAPP/IPS to be used as the MAPP/IPS to be used as the reporting platform across reporting platform across Snackfoods Snackfoods ??????

In In SummarSummar

yy

EfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency

encyency EfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency Efficiency Efficiency EfficieEfficie






encyency EfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency Efficiency Efficiency EfficieEfficieEfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency







encyency EfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency Efficiency Efficiency EfficieEfficieEfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency EfficiencyEfficiency




TRSTRSGlobal Global measuremeasure

Plant

Plant

potentia

l

potentia

l

Non-detailNon-detail

TRS is a tool to measure efficiencyTRS is a tool to measure efficiency

• Breakdown of equipmentBreakdown of equipment• Speed of the lineSpeed of the line• Changeover timesChangeover times

BUT...BUT...

• Start-up/shutdown timesStart-up/shutdown times• MaintenanceMaintenance• CleaningCleaning

It is not intended to be the sole measure and it It is not intended to be the sole measure and it must be used in context of a bigger picturemust be used in context of a bigger picture

Customer ServiceCustomer Service

ProductivityProductivity

CNBCNB

ATSATS

MFIMFI

MCC/LCCMCC/LCC

Open PointsOpen Points

How do we standardise hours for activities?, e.g. How do we standardise hours for activities?, e.g. a partial crew cleaning at weekends?a partial crew cleaning at weekends?

What if we contract-out cleaning/maintenance What if we contract-out cleaning/maintenance activities?activities?

What about non-continuous lines (3 shift What about non-continuous lines (3 shift operation) using a shared technician pool? operation) using a shared technician pool?

What is the TRS of a batch process?What is the TRS of a batch process?

How do we measure the efficiency of non-How do we measure the efficiency of non-bottleneck activities?bottleneck activities?

PB&APB&A

Back-Back-upup

Spreadsheet TemplateSpreadsheet TemplateWEEKLY LINE EFFICIENCY INPUT REPORT input cells

SLOUGH BOUNTY MAIN LINE calc cells

copied cells

Site SLO COMMENTS

Technology Bounty Main line

Period 2

Week 2

SHIFTS LOST

Legal Restrictions 0 Defi nition as per A30

Weekend Not Working 6 Defi nition as per A30

Holidays 0 Defi nition as per A30

Shutdowns 0 Defi nition as per A30

Planned Maintenance 0 Defi nition as per A30

Cleaning 1.1 Defi nition as per A30

Changeovers 1.0 Defi nition as per A30

Other (Specif y) 0.5 Defi nition as per A30

Total 8.6

SHIFTS GAINED V STD PAID WEEK

Additional Shif ts (Specif y) Extensions to standard shif t pattern, f or production or cleaning or

maintenance, e.g. 3 shif t, 5 days increased by one shif t f or

maintenance outside normal crewing hours.

WEEK TONNES

Planned Productive Shif ts 15 Expected number of shif ts that are productive

Actual Production 179.7

Scheduled Production 244.4 Scheduled volume f or the week.

Sched Prod per shif t 16.3

Others = Weekly start ups

CAPACITY AND UTILIZATION WORKSHEET input cells

SLOUGH BOUNTY MAIN LINE calc cells

copied cells

Site : SLO Period 2

Technology Bounty Week 2 % Theor.

8 Hour Tonnes Tonnes Available

Shif ts Per Shif t Per Week Capacity

THEORETICAL AVAILABLE CAPACITY 21 16.87 354 100%

(Perf ection rate at Plan Mix)

Less… Those things which reduce output when running

Breakdowns/ Reliability 2.53 15.0%

Scrap/ Rework 0.17 1.0%

Other, specif y below *)1 0.02 0.1%

Standard Output per Shif t (at Plan Mix) 14.16 297 83.9%

CONTINUOUS CREWING

Theoretical Less: 21

Those equipment-related things which reduce the number of production shif ts

Shutdowns 0

Planned Maintenance 0

Cleaning 1

Changeovers 1

Other, specif y below 1

Continuous Crewing SOC 18 14.16 260 73.5%

MAXIMUM LEGAL CREWING


Those equipment & legal-related things and legal which reduce the number of production shif ts

Legal Restrictions 0

Shutdowns 0


Cleaning 1

Changeovers 1


Maximum Legal Crewing SOC 18 14.16 260 73.5%ContCont..

ACTUAL CREWING


All things which reduce the number of production shif ts


Weekends 6

Holidays 0

Shutdowns 0


Cleaning 1

Changeovers 1


Actual Crewing SOC 12 14.16 176 49.5%

PAID CREWING


Those shif ts which reduce crew availability


Weekends 6

Holidays 0

Shutdowns 0

Additional Crewed Shif ts above standard shif t system 0

Paid Crewing SOC 15 14.16 212 59.9%

ACTUAL VOLUME PRODUCED 180 50.7%

SCHEDULE 244

UTI LI ZATI ON (as % Paid Crewing SOC) 84.6%

UTI LI ZATI ON (as % Actual Crewing SOC) 102.4%

% SCHEDULE ACHI EVED 136.0%

Actual Shif ts v Planned Shif ts 82.7%

*) 1 Usage on the Line

ContCont..

SFE EFFICIENCY REPORT 2001 input cells

Site : Slough calc cells

Line : Bounty copied cells

Period

Week 1 2 3 4

THEORETI CAL CAPACI TY Tonnes per shif t 17

(Perf ection rate at Plan Mix)

Standard Output per Shif t (at Plan Mix) 14

THEORETI CAL AVAI LABLE CAPACI TY Shif ts 21

Theoretical Capacity Tonnes per Week 354 0 0

CONTI NUOUS CREWI NG Shif ts 18

Continuous Crewing SOC Tonnes 260 0 0

Continuous Crewing Theoretical Tonnes 310 0 0

MAXI MUM LEGAL CREWI NG Shif ts 18

Maximum Legal Crewing SOC Tonnes 260 0 0

Maximum Crewing Theoretical Tonnes 310 0 0

ACTUAL CREWI NG Shif ts 12

Actual Crewing SOC Tonnes 176 0 0

Actual Crewing Theoretical Tonnes 209 0 0

PAI D CREWI NG Shif ts 15

Paid Crewing SOC Tonnes 212 0 0

Paid Crewing Theoretical Tonnes 253 0 0

ACTUAL VOLUME PRODUCED 180

SCHEDULE 244

UTI LI ZATI ON (as % Paid Crewing SOC) 84.6% #DI V/ 0! #DI V/ 0!

UTI LI ZATI ON (as % Actual Crewing SOC) 102.4% #DI V/ 0! #DI V/ 0!

TRS (% of Paid Crewing Theoretical Tonnes) 71.0% #DI V/ 0! #DI V/ 0!

TRS Potential 69.4% #DI V/ 0! #DI V/ 0!

% SCHEDULE ACHI EVED 73.5% #DI V/ 0! #DI V/ 0!

% THEORETI CAL ACHI EVED 50.7% #DIV/0! #DIV/0!

2

The weighted average, based on the actual or planned The weighted average, based on the actual or planned production volume mix, of the maximum instantaneous production volume mix, of the maximum instantaneous rate per minute or per hour, at 100% overall efficiency, rate per minute or per hour, at 100% overall efficiency, for 8 hours per shift. for 8 hours per shift.

The maximum instantaneous rate/minute or/hour is The maximum instantaneous rate/minute or/hour is based on the bottleneck equipment of the line or based on the bottleneck equipment of the line or process. process.

The weighted average is calculated on a time basis The weighted average is calculated on a time basis rather than a tonnes basis, i.e. the time those tonnes rather than a tonnes basis, i.e. the time those tonnes would take to be produced at theoretical rate, or: would take to be produced at theoretical rate, or:

Sum of (max instantaneous rate x time (shifts/year)) for each Sum of (max instantaneous rate x time (shifts/year)) for each productproduct

Total time for all production (shifts/year)Total time for all production (shifts/year)

Definition of Capacity (from A30 Definition of Capacity (from A30 report)report)Theoretical Available Capacity - Tonnes/ShiftTheoretical Available Capacity - Tonnes/Shift

It is intended that utilisation will always be defined on It is intended that utilisation will always be defined on the base of maximum legal crewing SOC. For period the base of maximum legal crewing SOC. For period data the computation would be as follows: data the computation would be as follows:

Actual OutputActual Output Maximum Legal Crewing Shifts x Actual Output/ShiftMaximum Legal Crewing Shifts x Actual Output/Shift

oror

Actual shifts Operated/Maximum Legal Crewing ShiftsActual shifts Operated/Maximum Legal Crewing Shifts

It is assumed that actual shifts cannot exceed maximum legal It is assumed that actual shifts cannot exceed maximum legal crewing shifts. Therefore, utilisation will never exceed 100%. It is crewing shifts. Therefore, utilisation will never exceed 100%. It is also noted that utilisation differs from efficiency. Utilisation is time also noted that utilisation differs from efficiency. Utilisation is time based whereas efficiency is rate based. A utilisation of 100% based whereas efficiency is rate based. A utilisation of 100% means that the line produced all that was possible for the time means that the line produced all that was possible for the time period. A utilisation of less than 100% means that the line could period. A utilisation of less than 100% means that the line could have produced more if it were needed.have produced more if it were needed.

Definition of Utilisation (from A30 Definition of Utilisation (from A30 report)report)Utilisation -Requirements as % of Max Legal Utilisation -Requirements as % of Max Legal Crewing SOCCrewing SOC

Nominal rateNominal rateThe number of 100g pouch per minute the machine has been The number of 100g pouch per minute the machine has been designed or specified. Toyojidoki TLA1S: 240 strokes per designed or specified. Toyojidoki TLA1S: 240 strokes per minuteminute

Total production hoursTotal production hoursThe clocked hours the production crews are in operation The clocked hours the production crews are in operation (maintenance, production, cleaning)(maintenance, production, cleaning)

Net production hoursNet production hoursThe above figures minus time allowed for start up after close The above figures minus time allowed for start up after close down, cleaning, change over, planned maintenance if it is fully down, cleaning, change over, planned maintenance if it is fully integrated in the production crew.integrated in the production crew.

At DOL: 2 hours for the start up, 6 hours for cleaning, 60' At DOL: 2 hours for the start up, 6 hours for cleaning, 60' every day for recipe changes and 8 hours for maintenance on every day for recipe changes and 8 hours for maintenance on Mondays Mondays

Rate DefinitionsRate Definitions(from Belgioioso Petcare (from Belgioioso Petcare

example)example)

Nominal outputNominal outputIt is automatically calculated from the nominal rate and the It is automatically calculated from the nominal rate and the net production hours.net production hours.

Real outputReal outputTonnage of product actually produced on the line. Tonnage of product actually produced on the line.

EfficiencyEfficiencyThis is the calculated % of the real output versus the nominal This is the calculated % of the real output versus the nominal one.one.

TRSTRSThis index is calculated as follows: This index is calculated as follows:

Real output / (Total production hours)*(Nominal rate)Real output / (Total production hours)*(Nominal rate)It’s the ratio in % between the real output and the theoretical It’s the ratio in % between the real output and the theoretical output achievable if the Toyo should run every minute; output achievable if the Toyo should run every minute; maintenance, cleaning and changeovers are included.maintenance, cleaning and changeovers are included.

Rate Definitions (cont.)Rate Definitions (cont.)(from Belgioioso Petcare (from Belgioioso Petcare

example)example)

Canning plants traditionally designed around the Canning plants traditionally designed around the ‘steriliser’‘steriliser’

SomeSome FrenchFrench HistoryHistory

Goods inGoods in Goods outGoods out

+10+10%%

+10+10%%

+20+20%%

+20+20%%

+30+30%%

+30+30%%

•Upstream & downstream bottlenecks avoidedUpstream & downstream bottlenecks avoided•Optimum utilisation of the rate determining Optimum utilisation of the rate determining asset/activityasset/activity

SteriliseSteriliserr•Expensive Expensive •Continuous operationContinuous operation•Reliable (known Reliable (known technology)technology)

Challenge established by Frank Mars Challenge established by Frank Mars

Supply 4*100g pouches to market at the same price Supply 4*100g pouches to market at the same price as 1 400g canas 1 400g can

Cost target of 770 Euro/tonneCost target of 770 Euro/tonne

Absolute standard is clear which in turn drives Absolute standard is clear which in turn drives crewing, raws, start-up and maintenance performancecrewing, raws, start-up and maintenance performance

TRS is a critical lever in shaping cost performance, TRS is a critical lever in shaping cost performance, focusing on optimising asset focusing on optimising asset (people & plant)(people & plant) utilisationutilisation

Pouch 441Pouch 441

With the 441 challenge, thinking altered & the filling With the 441 challenge, thinking altered & the filling operation became the rate determining stepoperation became the rate determining step

SomeSome FrenchFrench HistoryHistory

Goods inGoods in Goods outGoods out

Upstream/downstream assets may be shared, but Upstream/downstream assets may be shared, but bottlenecks are avoidedbottlenecks are avoided

The reported overall line performance (TRS) is based The reported overall line performance (TRS) is based on the designed pouch filling rateon the designed pouch filling rate

RetortsRetorts

FillinFillingg•Expensive assetExpensive asset•Non-mature Non-mature technologytechnology•Non-continuous Non-continuous operationoperation

IdealisIdealismm

PragmatiPragmatismsm

DefinitioDefinitionn

InterpretatiInterpretationon

Where is our Where is our comfort comfort zone?zone?

TRSTRS replaces replaces Overall Equipment EfficiencyOverall Equipment Efficiency

where used, reasoning is that where used, reasoning is that OEEOEE gives gives

allowances for plant not operating and as suchallowances for plant not operating and as such

is not suitable to use to measure the overall is not suitable to use to measure the overall

line efficiencyline efficiency

Why TRS?Why TRS?

Planned outages

Waiting for resources

Changeovers

Maintenance breakdowns

Minor Losses

Speed Losses

Off line Quality losses

Line Quality losses

12 hr shift duration

Planned MaintenancePlanned team meetingsMachine Delays

Planned Available Hours

Total Possible Machine Usage

Downtime

OEE

Actual time producinggood product

Incorrect speedIdling time

Startup losses

ScrapRework (not audit)

No Materials

No operatorManningUnplanned Meetings

Raws Quality

Unplanned cleaning

AdjustmentsSmall fixes

SetupsChangeovers

Line Scrap

Offline Scrap

Line Utilisation

Overall Equipment Effectiveness (OEE)

OEE =Actual Time Producing Good Product (hours) x 100

Planned Available Hours

Yield

Operating Time

Actual Available Time

Running Time

Machine Performance

Allowances

TRS+Presentation[1]

Documents

operations

perfection

nominal rate

scrapamp

pack mix

a30 report

plan mix

weighted average