Background:
One of the larger plants in an established foam cup manufacturing business was tracking their OEE at a level well below world class. The plants overall equipment effectiveness (OEE) was measured at 70% while operations claimed to be operating at 100% capacity. The client estimated that if the plants OEEs were increased to World Class levels (85%), the improved capacity would increase the plants revenue by at least $3 million annually. The client turned to PPT to develop an approach to address the average machine performance and improve customer service.
Goals:
- Improve service levels from 92.3% to 98% complete and on-time.
- Reduce inventory (finished goods, WIP and raw materials) by 28%.
- Reduction of setup time from an average of 4.5 hours to 3 hours.
- Create and train a work-force steeped in World Class Manufacturing principles.
- Increase Line 19 and 20s OEEs: Line 19 OEE Baseline = 59% (OEE goal = 85%) Line 20 Baseline = 74% (OEE goal = 85%).
Accomplishments / Benefits:
- Service level improved to 98.2%.
- Inventory Reduction of 38% over a six-week period.
- Production Line increases of 21% and 11% (one Line to 80% and one Line to 85%).
- SMED reduced setup time by 44%.