Halving changeover time at a cosmetics manufacturer

The growth of an international cosmetics manufacturer should be supported by increasing production efficiency and reducing unit costs. An annual output of about
30 million units was characterized by its diverse range of packaging and products and requires numerous set-up and changeover processes. The aim of the T.A. Cook analysis was to raise the overall equipment efficiency (OEE) of the production lines from 60% to 75% and to reduce unproductive downtime with the following results:

50%

reduction of changeover time achievable

10%

increase of OEE as result of changeover time reduction

c

Optimization of production and capacity planning possible

c

Increased motivation of workers

Approach

T.A. Cook analyzed the OEE-performance killer and evaluated the OEE target values at two selected filling lines. Potential opportunities to reduce unit costs, increase process efficiency and enhance OEE were to be identified and defined.

During the review of the production process, particular attention was paid to recording, categorizing, evaluating problems and responses to the changeover process, switching from one product to another, as well as cooperation between the changeover and set-up teams.

T.A. Cook evaluated the entire operative planning, execution and controlling processes in production, including all interfaces, roles and responsibilities and accompanied workers on-site to chart and assess the activities of the assembly line and maintenance staff during different shifts. Benchmarks were determined for each shift, best-practices were compared and a critical path for the changeover was identified.

Achievements

The analysis showed the client what areas needed to be tackled and how much potential existed to quickly improve the changeover process and increase the effectiveness of the plant. Examples include remodeling the changeover process, optimizing non-productive times such as cleaning and staff breaks, undertaking technical improvements or integrating maintenance into the remodeling process. The improvement potential was determined as 50%, which would result in an
increase of 10% in OEE.

The related optimization of costs would, as intended, support company growth and ensure a measurable and long-term competitive advantage.

 “In order to improve the changeover times, it was not only necessary to have better technology but also to optimize the processes. We observed different changeover processes in the teams. Standardized activities, precise work orders, separation between internal and external set-up, parallel operations, etc. were different. We were able to identify differences in changeover times of up to 50% because no standard was defined.”

Darko Peraic, Manager

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