To Maximize the PVC compound output in PVC Compounding machine M/c 3001

Presented by: Mathu Suthana Kumaran Dubai Cable Company, UAE

1

Ducab Sales (AED bn)

2.4 2007 3.2 2.4 2009

Dubai 3 Manufacturing Units Abu Dhabi 3 Manufacturing Units

2008

Copper Rod Plant

Raw Materials

Copper wire rods & conductor

PVC Plant

Over 900 employees Multicultural 20 nationalities

Power Cables

Ducab

Cables

High Voltage Medium Voltage Low Voltage Ducab FR / Building Wire Instrumentation & Pilot Control & Auxiliary

Special Purpose low voltage range

Accessories

Ducab Connect

DEFINE

Business Case
This project supports the companys objectives to produce quality PVC compound in-house with maximum efficiency. The output of PVC compounds as of May 2008 manufactured in-house is meeting the demands of Ducab-JA & Ducab -Abu Dhabi factories. Since Ducab added third manufacturing facility in June 2008, the demand of the PVC compounds increased. To meet the PVC demands of all the three factories, the current PVC output needs to be increased

Opportunity
The basic opportunity of this project is that if we are able to increase the PVC production, we can reduce the quantity of PVC required to be purchased externally. Currently( 2nd Jan to 31st May 08 ) the PVC output is in the range of 200 to 270 tonnes per week with an average of 255.5 tonnes per week. This is sufficient to meet demand of only two factories. To meet the demand of third factory, it is required to increase the average PVC output to 320 tonnes per week. This demand will vary depending upon cable product mix. Cost benefit per tonne of PVC manufactured in-house is $174 which equates to annual cost benefit of AED 2.0 Million. See appendix -1 for basis of calculation.

Project Plan
Time scale Milestone Form Team Finalize Charter Gather data Analyse data July-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08

Select solution
Interim report Meet management Develop plan to implement Closure & Recognition

Team Selected
Matt Procter Mathu Suthana Kumaran Venkat Vardhan Nissam Ashraf PVC Plant operators Day shift PVC Plant operators Night shift Operator Process Owner / Sponsor Green Belt Purchasing Officer Quality technician

PVC compound manufacturing process - SIPOC

Suppliers Ducab RM Stores RM Stores RM stores RM stores RM stores RM stores Inputs
PVC Resin Filler Calcium Carbonate Plasticizers Stabilizers Additives ( Masterbatch, Lubricant etc ) Pallets, Jumbo bags
Start Boundary Receipt of production order from Supply Chain department

Outputs

Customers

Process
PVC Compound

Supply Chain Department Ducab

Loading of raw materials

WIP

Download WIP recipe from Plasmec Software

Compounding Process

WIP

Quality Assurance

WIP

Check the weight WIP and Pack in Jumbo bags

Book to stock

All Inputs
10

End Boundary Shift the finished PVC compound to Warehouse.

Functional Deployment Process Map for PVC Compounding process

Production Order
Start Received P.O from Supply chain department Log in BaaN system Acknowledge P.O

Planning & material preparation

Release P.O & plan the production

Request raw materials from warehouse

Receipt of raw materials in PVC plant & check the status

Load raw materials into Silo & feeder. Record in Plasmec software

Compounding process

Download Recipe in plasmec software.

Set-up follow spec

Run the machine

Visual inspection of product

Provide start Sample to lab & label it with Batch number

Inspection Pass No

Yes Ramp-up production

No Collect sample from Production run Check the sample As per spec. Decide Accept ? Yes Release batch number in system

Quarantine

Quality Assurance

Packing & Book to stock

Fill the material in Jumbo bags

Label the bags

Book to stock In BaaN software

Transfer goods to warehouse End

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Quick Win Solutions to increase the PVC compound output

SOLUTIONS

EASY TO IMPLEMENT

FAST TO IMPLEMENT

CHEAP TO IMPLEMENT

WITHIN AUTHORITY

EASILY REVERSIBLE

QUICK WIN?

Cycle time analysis Replacement of mixer blade in hot mixer To avoid manufacturing Precoloured product

No No

No No

Yes No

Yes Yes

Yes Yes

No No

No

No

Yes

Yes

Yes

No

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Critical to Quality and Critical to Process Chart

Voice of business Business issues Critical business requirement

The company cannot continue to lose the output of the machine as well as to stop procuring the compound externally which is costly.

To increase the PVC compound output thereby reducing the machine downtime due to maintenance, set-up and color change over time.

Weekly average PVC compound output target is set at 320 Tonnes/ week

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MEASURE

16

Input, Process and Output indicators

Process Indicators
Efficiency measures
Machine utilization time Colour changer over time Set-up time Customer forecast Supplier delivery Maintenance down time Machine planned down time

Input Indicators
Input measures
Raw materials Quality Stock out

Output Performance Indicators

Effectiveness measures
Weekly average PVC compound output tonnes / week

CCR

320 tonnes of PVC compound per week

People Hot mixer cycle time per batch

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Measurement Plan
Performance Measure Operational Definition Data source and Location Sample size Who will collect the data When will the data be collected How will the data be collected Other data that should be collected at the same time.

Weekly average PVC compound output Tonnes / week

Machine stop due to breakdown with date and time ( Start ) Machine started running after breakdown with date and time ( End )

Improvement analysis data PVC Compounding Plant

Minimu m 44 weeks

PVC plant operators / Mathu

2nd Jan 08 to 1st Nov 08

Systematic records of machine downtime from 2nd Jan 08

Machine utilization time, Color change over time, set-up time, Planned machine downtime, Maintenance downtime & Stock out.

21

Base line

Data is normal
22

Base line

Data is not stable, hence Cpk not being computed Mean = 259.4 ton
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Problem Statement
Currently the average PVC output of 255.5 Tonnes per week meets the demand of JA factory and M1 Abu dhabi factory. To meet the demand of M2 Abu dhabi factory, needs to maximize the output to 320 tonnes per week as a minimum target . Since m/c 3001 is the only compounding machine in Ducab and has to supply PVC compounds to across three Ducab sites, productivity improvement would reduce the necessity to procure compound from external high cost suppliers. Since the total maintenance breakdown is reported as 8.47 %, our six sigma team has decided to analyze the machine efficiency data over the period Jan to May 2008 highlighted a major opportunity to investigate the downtime incurred due to leakage in cooling pipe line. The cause of the leakage was due to rusting in pipes. Over this period, 4.80% of machine time was lost to repair this pipeline leakage. As a consequence of this failure, additional time was also lost in shut down / start-up / set-up time on each occasion the pipe line failure is occurred. The combined lost opportunity was 14 % ( cooling pipe line failure: 4.8% + other breakdowns: 3.66 % + set-up time : 5.52 %) and to target a reduction.

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Why & Why Analysis

Why ? Why ? Why ? Why ? Water / coolant Leakage due Leakage in Maintenance to rusting extruder cooling downtime In pipes pipe lines Rusting because Investigate - 1 of poor quality of Coolant Investigate - 2 Insufficient personnel

Low output of PVC compound

Why ?

Machine idle

Why ?

More Set-up

Why ?

Machine breakdowns

Why ?

Late response to resolve the problem

Why ?

Why ?

Why ? Color change over time

P.O with more product mix

Why ?

Stock out of raw materials

Why ?

Investigate - 3 Poor planning

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Mechanical breakdowns during Jan to May 08 before 6 Sigma

Pareto Chart of machine breakdown - before six sigma project
9 8 7 6 5 4 3 2 1 0

% Before 6 sigma

100 60 40 20 0

Breakdown details

e e nc nc pi na na e e er nt nt ud ai ai tr m m ex al al in ri c nic t e ec ha ag El ec ak o m t le e to to e du e e du du im e e nt im im nt nt ow ld ow ow d d ta al al To ot ot T T
% Before 6 sigma Percent Cum % 4.80 56.7 56.7 2.41 28.5 85.2 1.15 13.6 98.8

s pe

er th

0.10 1.2 100.0

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Percent

80

IMPROVE

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SOLUTION EVALUATION CRITERIA

Sl. No. 1 Evaluation Criteria SIGMA IMPACT Importance Factor
10

Remarks This criteria describes the main goal of this project is PVC compound output Improvement. Thats why the Team decided to assign maximum importance to it i.e. 10 (in the scale of 1 to 10). Time impact is also of prime importance considering that, earlier the solutions are implemented, earlier the tangible benefits (towards availability of more machine time for Processing) shall be obtained. Thats why the Team decided to allocate its importance factor as 09. For implementation of these solutions, no extra expenditure is required to be incurred. But once solutions are implemented, benefits both tangible & intangible will be obtained. Considering, this the team allocated importance factor as 05.

TIME IMPACT

09

COST / BENEFIT IMPACT

05

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SOLUTION SELECTION CRITERIA FOR IMPROVEMENT

Sigma Impact Time Impact Cost / Benefit Impact Evaluation Criteria Importance

10
Root Cause Probable Solutions a) New fittings can be replaced for the cooling pipe lines whenever leakage is reported. To do this, spares to be available all the times in the stores. b) Entire cooling pipe lines can be replaced with stainless steel pipes but it is not long-lasting c) Anti-corrosive additive can be added in the coolant water tank along with soft water to avoid rusting in the fittings of the cooling pipeline of the extruder.

9 3

5 1

Co-relation of Solutions to Criteria

92

1
Leakage in extruder pipe lines of extruder

129

191

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SOLUTION SELECTION CRITERIA FOR IMPROVEMENT

Sigma Impact Time Impact Cost / Benefit Impact Evaluation Criteria Importance

10
Root Cause Probable Solutions a) To reduce the machine downtime by doing preventive maintenance. b) To keep spare parts in stores in case of any mechanical or electrical breakdowns.

Co-relation of Solutions to Criteria

2
Number of machine set-up is high

143

110

3
More number of color change

a) Production order to be prepared by proper planning to avoid product mix b) To keep all the required raw materials in stock to avoid raw material stock out.

144

167

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Implementation
In order to exercise control over the improved processes, operators are advised to use the pre-mixed anti-corrosive additive ( 0.5 % Drewgard 315 with soft water ) as a coolant. A can holding 20 litres of pre-mixed coolant is kept near the machine and operators will refill the coolant into the coolant tank to maintain the minimum level.

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ACTION PLAN - PILOT IMPLEMENTATION

ACTION PLAN :
SL. NO. 01

Data Period : 2nd Jan 2008 to 1st Nov 2008

RESPONSIBILITY Plant operators / Mathu START DATE 15nd July 08 DUE DATE 25th July 08 STATUS AND ACTIONS Completed

DESCRIPTION Initial Data Collection of machine efficiency and idle hours due to maintenance, set-up time, color change over time etc. Week wise performance Addition of anti-corrosive additive in the coolant tank to prevent the leakage in extruder cooling pipe lines. To reduce the machine downtime by doing preventive maintenance To keep all the required raw materials in stock to avoid raw material stock out. Monitoring and recording of machine downtime details to see the performance of new coolant week wise performance Production order to be raised in a planned manner to avoid frequent product mix - week wise performance Testing of PVC compound to check for any variation. daily performance review Data collection of PVC compound output week wise performacne Final Data Collection (for finding the entire machine idle hours ) Statistical Analysis & Final Conclusion

02 03 04 05

Plant operators Maintenance / Mathu Venkat Vardhan / Mathu Plant operators / Mathu

1st June 08 15th July 08 10th July 08 15th July 08

2nd June 08 15th oct 08 15th Aug 08 1st Nov 08

Completed Completed Completed Completed

06 07 08 09 10

Venkat Vardhan Nissam Mathu Plant operators / Mathu Mathu

10st July 08 2nd Jan 08 2nd Jan 08 2nd Nov 08 15st Nov 08

1st Nov 08 1st Nov 08 1st Nov 08 10th Nov 08 15th Jan 09

Completed Completed Completed Completed In progress

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STATISTICAL EVALUATION OF IMPROVED DATA

48

CONTROL

57

Revised Functional Deployment Process Map for PVC Compounding process from June 2008 onwards.
Production Order
Start Received P.O from Supply chain department Log in BaaN system Acknowledge P.O End

Planning & material preparation

Release P.O & plan the production

Request raw materials from warehouse Top up the coolant level

Receipt of raw materials in PVC plant & check the status

Load raw materials into Silo & feeder. Record in Plasmec software

No

Compounding process

Download Recipe in plasmec software.

Set-up follow spec

Run Coolant the Level machine Check Yes

Visual inspection of product

Provide start Sample to lab & label it with Batch number

Yes Inspection Pass No

Ramp-up production

Added in the chart after Improvement Quality Assurance

P1

P2
No Yes

Quarantine Release batch number in system

Collect sample from Production run

Check the sample As per spec.

Decide Accept ?

Packing & Book to stock

Fill the material in Jumbo bags

Label the bags

Book to stock In BaaN software

Transfer goods to warehouse

P3
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CONTROL MEASURES
PROCESS CONTROL SYSTEM :
Process Description : PVC Compounding process Process Customer : Supply Chain department Critical Customer Requirement : 320 tonnes of PVC compound per week

Activity in Flow-Chart

Input-ProcessOutcome Indicators Charts & Graph Type Machine utilization time, machine down time due to leakage, planned down time & weely output checks Machine downtime due mechanical, electrical, Leakage and weekly output checks Hot mixer cycle time per batch, machine downtime, output checks, raw material stock out.

Control Limits Specs / Target Up the maximum level in the coolant tank

Checking Item

Frequency

Responsibilit y Who Checks

Contingency Action Plan Action Reqd. for Exception To inform Material technologist

Activity No. P1

Activities

What to Check

When to Check Each and every shift

To check the coolant level in the coolant tank before starting the machine Maintenance down time

Production lost in hours due to leakage in extruder pipelines

Plant operators

P2

As low as possible

Production lost in hours due to breakdowns

Each and every shift

Plant operators

To inform materials Technologist

P3

Productivity Improvement

320 tonnes of PVC compound per week

To measure the production output weekwise

Week wise

Mathu

To inform Materials Manager

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CONTD

STANDARD TO BE FOLLOWED
STANDARDS & PROCEDURES FOLLOWING TWO TARGETS HAVE BEEN DECLARED AS STANDARD IN PVC COMPOUNDING PLANT. STATUS

A. IN ORDER TO EXERCISE CONTROL OVER THE IMPROVED PROCESSES, OPERATORS ARE ADVISED TO USE THE PRE-MIXED ANTI-CORROSIVE additive ( 0.5 % Drewgard 315 with soft ware ) AS A COOLANT. A CAN HOLDING 20 LITRES OF PRE-MIXED COOLANT IS KEPT NEAR THE MACHINE AND OPERATORS WILL REFILL THE COOLANT INTO THE COOLANT TANK TO MAINTAIN THE MINIMUM LEVEL OF THE COOLANT TANK.
B. OPERATORS SHOULD RECORD THE DOWN TIME DETAILS ALONG WITH SET-UP TIME, COLOR CHANGE OVER TIME, MACHINE RUN TIME, PLANNED DOWN TIME AND PVC COMPOUND OUTPUT DETAILS IN THE FILE LOCATED IN SHARE DRIVE: PVC LOG SHEET :KPI -DATA

INCORPORATED IN PROCESS SPECIFICATION Du/PS/3001 ISSUED & IMPLEMENTED

INCORPORATED IN PROCESS SPECIFICATION Du/PS/3001 ISSUED & IMPLEMENTED

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TRAINED ASSOCIATES
TRAINING PROGRAM REGARDING SIX SIGMA AWARENESS :
SL. NO. 01 TASKS PARTICIPANTS RESPONSIBILI TY MATT PROCTER / MATHU TRAINING HELD ON 7th JANUARY 09 (1400 TO 1700 HRS.)

SIX SIGMA INTRODUCTION & SUCCESS STORY FOR THE PROJECT.

EMPLOYEES OF PVC COMPOUNDING PLANT & INTERNAL CUSTOMERS PVC COMPOUNDING PLANT EMPLOYEES

02

SIX SIGMA TARGETS OF PVC COMPOUND OUTPUT & AWARD PROPOSAL DAYS.

MATT PROCTER

14TH JANUARY 09 (1500 TO 16:30 HRS.)

03

SUBMISSION OF CORRECT ESTIMATE IN PROPER FORMAT FOR SUCCESS OF SIX SIGMA.

MATERIALS TECHNOLOGIST FROM PVC COMPOUNDING PLANT

MATHU

14TH JANUARY 09 TO MATT PROCTER ( MATERIALS MANAGER PVC COMPOUNDING PLANT (1000 TO 1200 HRS.)

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PROJECT BENEFIT
TANGIBLE BENEFIT :
Calculation of Savings Summary Weekly average PVC compound output during Jan to May 08 before implementation of Six sigma project. = 255.5 Tonnes Weekly average PVC compound output during June to Oct 08 after implementation of Six sigma project = 316.0Tonnes . Increase in average ouput per week in Tonnes = 316 - 255.5 = 60.5 Tonnes Increase in average output per annum in Tonnes = 60.5 x 52 weeks = 3146 Tonnes

A cost benefit per tonne of compound after variable overheads + machine depreciation costs = $ 174

Assuming a pessimistic cost benefit per tonne at $ 174 = $ 174 X 3146 Tonnes after variable overheads equates to an additional cost savings of = $ 547404 = AED 2011709

Potential savings in a year

64

= AED 2.0 Million

Project Closure
The improvement was accepted and appreciated by Ducab management. The progress and benefit of the project were shared and verified with all Stakeholders. Team was rewarded with recognition in various improvement forums. The learning were used in other areas of cable manufacturing process especially the use of corrosion inhibitor was adopted in many machines where water is being used as cooling medium.

Questions

Thank you