SIMA Strategy Final

SIMA Candy Co.

:اعداد

حمدى الشاذلى /م SIMA Candy Business Strategy

Agenda

Where we are now / Current position

Where we need to go / Our Future Goals

Strengths and weaknesses / Gap analysis

Our priorities / 20:80

Every Dep. KPI’s

Our Business Strategy / Goals

I. Operation Excellence

1- Deliver products volume Vs plan >= 95% through 12 months

2- Avg. Manufacturing Efficiency >= 75% through 6 months

3- Reduce material waste 10% or higher from base line

a- Identify the waste base line through(2-3) Months

b- Put actions to reduce the waste by at

least 10% and to be confirmed later through(2-3) Months

4- Reduce energy use

5% or higher from base line

a- Identify the energy process mapping

1 Month

b- Put actions to reduce the energy consumption

by at least 5% 1 Month

5- Min GMP score

75% through 12 months

a- Formats agreed quality

3 Months

b- Implementation of audits

6 Months

6- SHE (Safety, Health & Environment),

MTBA (Mean Time between Accident) >50 days, through 12 months

a- Develop a base line accident from 2015/2016 3 Months

b- Reduce the loss time accident (LTA) by 10% 3 Months

7- Maintenance Planned Completion Min. 85% through 12 months

8- No Critical or major quality defect from

manufacturing.

Zero (A) quality defects, through 12 months

9- Right from first time 90% (Only 10 % on non-critical defects) 12 months

10- Customer complains

<18/month

a- Find out the customer complaint for 2015/2016

6 Months

b- Reduce it by 10%

6 Months

11- Manufacturing Overhead Cost Rationalizations & Reduction 10% Vs. 2015/2016

a- Brainstorming session on cost Rationalizations 6 Months

b- Select top 3 ideas and put plan for implementation 6 Months

c- MOH analysis to conclusion and put plan to meet budget 6 Months

II- Operation Optimization Establish Lean Manufacturing, Reduce MOH and optimize production

1- Process mapping and bottle neck identifies 6 Months

2- Provide solution to improve efficiency/capacity/mini waste 6 Months

3- Man power mapping and head count evaluation (3-4) Months

4- Manpower/head count recommendation and organization 6 months

5- Establish TPM, 5S and Lean Manufacturing Training 12 Months

6- Roll out TPM, 5S and Lean Manufacturing system 12 Months

7- Evaluate effectiveness of MOH cost reduction 12 Months

8- Manufacturing MOH and cost evaluation a- Evaluate the MOH for 2015/2016 split the cost to

reflect the actual manufacturing cost 6 Months

b- Identify Areas of cost increase and uncontrolled cost 6 Months

c- Identify areas of potential cost reduction to meet

the budget 6 Months

d- Conduct detailed monthly analysis on MOH

cost and trend 3 Months

e- Identify and collected raw material and finish

products waste areas in manufacturing 3 months

III-Strategies 1- Develop long term strategies for manufacturing

to meet future business demand 12 Months

2- Bring consistency between the factories by

conducting OM (Objectives Meeting) Team

meetings and Monthly reports Monthly

3- Maintenance - Develop step and phase approach

to have a good maintenance program.

a- 5s to label and organize workshop Q3/2016

b- Use excel sheet to list all major parts and maintenance needed, etc. Q4/2016

c- Invite 3 software suppliers to choose best software, Q4/2016

d- Carry out an analysis of our current maintenance system Q4/2016

e- Evaluate structure and best organization Q4/2016

f- Provide recommendation and actions on maintenance Q1/2017

g- Identify the chronic and sporadic failures Q2/2017

IV- People

1- Conduct meeting with each function,

Monthly/quarterly Weekly/Monthly/Quarterly

2- Motivate/improve morale

a- Team building once a year

b- Conduct coaching session on going

c- Identify and provide training need Q3

d- Develop Monthly OSCAR award العامل المثالى Monthly/ Yearly

e- The Best Monthly OPL Monthly

f- The Best KaiZen Quarterly

3- Study and develop succession planning Q3/2016

4- Employees engagement survey Q4/2016

V- Projects 1- Capex

a- Follow-up and deliver on Capital projects

in each function. As per Capex Plan.

2- Follow-up on the key different projects and

deliver on the agreed time table As per time table

3- Make Projects Strategy for every Phase of

the project

4- Project to cost saving by Lean Ideas

VI: Supply Chain Objectives 1- Maintaining continuity of goods flow and

uninterrupted services requires supply function Zero OOS (Out of Stocks)

2- Good warehousing practice score > 85%

3- On time in full (OTIF) > 75% of orders

4- Supply Chain Cost Reduction 10% Vs. Last Year

5- Develop long term strategies for Supply Chain

to meet future business demand 6 Months

6- Bring consistency between the warehouses by

conducting OM Team meetings and Monthly reports Monthly

7- Conduct meeting with each function Monthly/Quarterly

Main KPI’s For Every Department

I. Manufacturing KPI’s

1- Production KPI’s

1 OEE Monthly

2 Downtimes Analysis (from OEE Sheet Calculations) Monthly

3 Labors Efficiency - Productivity man / hour (from OEE Sheet Calculations) Monthly

4 Line Balance Efficiency for every production line (from OEE Sheet Calculations) Monthly

5 Production volume (MB / Ton) Actual Vs Plan - Production Plan Adherence (PPA) Monthly

6 Production volume (MB / Ton) Local Vs Export Monthly

7 Losses tree / loading time Monthly

8 Productivity man hour for Every product (from OEE Sheet Calculations) Monthly

9 Change over losses/MB for every Product (from OEE Sheet Calculations) Monthly

10 No. of Qualified operators for every hall Monthly

11 No. Of OPL’s, KaiZen’s Monthly

12 Focus / Continues Improving Daily

13 No. of Cost Saving / Rationalization ideas Monthly

14 Total recordable frequency rate (TRFR) Monthly

15 No. of Training Hours Daily

16 Right First time% (quality rate) Monthly

17 No. of Maintenance, Projects & Stores Complains Monthly

18 No. of HR (Labors) Complains Monthly

19 TPM Applying % Monthly

2- Quality Assurance KPI’s

1 Cost of Non Quality Monthly

2 5 S Audit Monthly

3 Warehouse Inspection, FIFO Verification Results & Good storage

practice GSP

Monthly

4 External Returns Monthly

5 Appraisal Test Monthly

6 Pest Control inspection / incident Monthly

7 Sanitation progress (from GMP Sheet) Monthly

8 Food safety incident Monthly

9 Supplier evaluation Monthly

10 Good Manufacturing Practice (GMP) inspection score % Monthly

11 Microbiologic results Finished product Monthly

12 Un safe action & un safe condition Monthly

13 No. of Training Hours Monthly

14 No. Of OPL’s & KaiZen’s Monthly


16 Customer complaints Monthly

17 No. of production, Maintenance, Projects & Stores Complains Monthly


3- Quality Control KPI’s

1 Quality demerit index (QDI) Monthly

2 Final Products Stability report Monthly

3 Right First time% (quality rate) Monthly

4 Product’s Defect % & Defect’s classification sample size Monthly

5 Viscosity, Hardness, Humidity, PH & TDS results – Every

product conditions results

Monthly /Daily

6 Quality Weight Give away for every product Monthly /Daily

7 Quality Count Give away for every product Monthly /Daily

8 Rework Volume & Rework analysis % Monthly

9 Temperature Calibration for all Products Monthly

10 Pressure Calibration for all Products Monthly





4- Maintenance KPI’s

1 OEE Monthly / Daily

2 MTTR Monthly 3 MTBF Monthly 4 Failure Rate (FR) & Downtimes Analysis Monthly /Daily 5 Preventive maintenance actual Vs. plan Monthly 6 Training Hours Monthly 7 No. Of OPL’s & KaiZen’s Monthly 8 Focus / Continues Improving Ideas Monthly 9 No. of Cost Saving / Rationalization ideas Monthly

10 Total recordable frequency rate (TRFR) Monthly 11 No. of work Orders for every Dep. Monthly 12 No. of Qualified operators for every hall Monthly 13 Boilers & Tanks TDS Monthly 14 Boilers & Tanks PH Monthly 15 No. of Purchasing lead time complains Monthly 16 No. of Supply Chain (Packing & Raw Materials) Complains Monthly 17 No. of production Complains Monthly 18 TPM Applying % Monthly

5- Projects KPI’s

1 Projects updates Vs. Projects Metrics – Project charter

commitment (Cost, achieving work Progress) (Done, Under Progress, Not Yet)

Monthly

2 No. Of Safety Complains (Safety Commitment) Monthly

3 No. Of Quality Complains (New Machines QDI, GMP Commitment) Monthly

4 No. Of Production Complains (New Machines Rework, Speed) Monthly

5 No. of Maintenance Complains (New Machines Fully Manuals, OEE,

Stability)

Monthly

6 No. Of new Products Ideas Monthly

7 Focus / Continues Improving Ideas Monthly


9 Training Hours Monthly



6- HSE KPI’s

1 Number of lost time accident (LTA’s) Monthly

2 Number of near misses incl. (USA and USC) (un save action & un save

condition)

Monthly

3 HSE areas inspection report Monthly

4 No. of Permit to Work تصارٌح العمل Daily

5 No. of patient hours/Dep ساعات المرضى Monthly

6 light measurements (Lux) for every hall Monthly

7 Noise measurements (Decibel) for every hall Monthly


9 No. of production, Maintenance, Projects & Stores Complains Monthly

10 Total recordable frequency rate (TRFR) for all Dep. Monthly

11 Monitoring of Electricity, Water, Gas Consumptions Monthly


7- R&D KPI’s

1 No. Of new Products Ideas Quarterly

2 No. of actual registered products Quarterly



II. Supply Chain KPI’s

1- Warehouse KPI’s

1 Slow and None-movable stocks reporting (Raw Materials, Packaging

Materials, Spare Parts)

Monthly

2 Customer case fill rate (CCFR) Monthly

3 Out of stocks (OOS)% Monthly


5 Frist In Frist Out (FIFO) Verification Results Monthly

6 No. Of Production complains Monthly



9 Coding of all Factory Items (SP, Assets, …..) Monthly

10 Raw Materials Warehouse Daily/Monthly Report ( رصٌد –تم تورٌدة –مرتجع –منصرف

(رصٌد أخر المدة –أول المدة

Monthly /

Daily

11 Pack Materials Warehouse Daily/Monthly Report ( ورق –علب –كارتون) Monthly

12 Finish Good Warehouse Daily/Monthly Report ( مستلم من اإلنتاج –منصرف للفروع–

(رصٌد أول وأخر المدة –عٌنات –منصرف لإلنتاج للتعدٌل –مرتجع من اإلنتاج –مرتجع من الفروع

Monthly

13 Daily Loading for Branches & Export for every product (Planned Vs Actual) Monthly

14 Productivity Man /Hour Monthly

15 No. of Orders from stores In/Out plan for every store Monthly

2- Planning KPI’s

1 Forecast Accuracy Monthly

2 No. of production, Sales Complains (Lack of Plan) Monthly


4 Sales plan Vs. Sales Out Vs. Production Monthly

5 Supply chain cost/NPS (%) (Net Proceed Sales) Monthly

6 Daily Local & Export off take (MB) Monthly

7 Average Off take Vs. Average Daily required Monthly

8 PPA & OR Monthly

9 Line Balance Efficiency / Utilization for Making & Packing Monthly

10 Total No WIP losses During 26 Work Days Monthly

11 Average RM Stock Value & Ton Monthly

12 Total Production (Ton & MB) Vs No. of SKU’s Monthly

13 Chemicals Average Stock (Kg) & Coverage (days) Monthly

14 Stock Share (Ton, Value) (Oils, Colors, Flavors, Chemicals) Monthly

3- Logistics KPI’s

1 (On Time In Full) (OTIF) Monthly

2 Out of stocks (OOS)% Monthly


4- Purchasing KPI’s

1 No. Of PR’s lead time (Done, Under Progress, Not Yet) / Dep Monthly

2 No. of new Suppliers Monthly

3 No. Of complains from all Factory Departments Monthly

4 No. Of Bad PR’s Classifications for all Factory Departments Monthly


6 Total Debit and Credit Invoices Monthly

III. Financial (Costing) KPI’s

1 Cost evaluation analysis report Monthly

2 Manufacturing Over Head (MOH) (cost/ton of production) (from evaluation analysis report) Monthly

3 Materials Deviation (waste%) (from evaluation analysis report) Monthly

4 Salaries Cost/ton and Cost/MB for all Dep (from evaluation analysis report) Monthly

5 Maintenance cost / machine (from evaluation analysis report) Monthly

6 Nonproductive items cost (from evaluation analysis report) Monthly أدوات مكتبة -اإلسعافات أولٌة –زى العاملٌن –كلسورات –مزٌبات –أحبار –فر هد أ

7 Stocks Values Cost/Units (Finish Goods, Raw Materials, Packaging Materials) Monthly

8 Rework Cost (from evaluation analysis report) Monthly

9 Supply chain cost/NPS (%) (Net Proceed Sales) Monthly

10 Electricity Consumption Cost/Ton Monthly

11 Water Consumption Cost/Ton Monthly

12 Gas Consumption Cost/Ton Monthly


14 Commitment / Variation of Budget Plan for all Dep. Monthly

15 Fixed assets depreciation report Yearly

16 The most suppliers dealing with Monthly

17 Net Sales Vs last month / Product Monthly

18 Net Sales Vs last Year / Product Monthly

19 Stock control Report Monthly

20 Fixed Cost Vs Variable Cost Vs Last Year Monthly

Monthly سٌاسة تحصٌل ودفع الفواتٌر 21

22 Monitoring of new projects cost شاملة تطوٌر المنشأت Monthly

سٌاسة التعاقدات الجدٌدة وصٌغاتها 23 Monthly

III. HR & Admin. KPI’s

1 Attendance / Holidays / Absenteeism % Monthly

2 Labors turnover rate per Dep. Analysis Monthly

3 Transportation Cost Monthly

4 Labors Leaving Analysis/ Dep. / Shift Monthly

5 Labors in/Out of Insurance Monthly

6 Monthly total Fixed Salaries/Dep. Monthly

7 Monthly total Variable Salaries/Dep. إضافى –بدل وجبة – اتجمع -سهر Monthly

8 Employee Salary Deductions (Add –Cut – Penalty) تصرٌح –غٌاب –مرضى –جزاء Monthly

9 Labors transportation (all Lines) utilization/Shift Daily

10 Training Hours / Dep. Monthly


12 Cost Saving and Rationalization ideas Monthly

13 No. Of OPL’s & KaiZen’s Ideas / Dep. Monthly

14 Labors in/Out of Banking credits Monthly

سباب هم أ

وكيفية عالجها Wastes (Losses)أ

الحلول المقترحة أمثلة موجودة فً مكان العمل نوع الفاقد

وقت إنتاج ضائع

أعطال الماكٌنات

أوقات طوٌلة عند بداٌات التشغٌل أو تغٌٌر المنتج

فاقد السرعة

وقت اإلنتاج الزائد

التصحٌح والتعدٌل للمنتج غٌر السلٌم

الماكٌنات/المواد الخام/أوقات انتظار العمالة

التوقفات الصغٌرة

أخرى

مواد خام مهدرة

المرفوض من المنتج

مواد التغلٌف الزائدة

مواد الخلط الزائدة

التسرٌب

او أعطال العملٌة الصناعٌة/تسرٌب فً المنتج و

الحلول المقترحة أمثلة موجودة فً مكان العمل نوع الفاقد

تخزٌن زائد

مواد خام زٌادة

منتج نهائً زٌادة

عمل زٌادة فً عملٌة التصنٌع

أخري

الفاقد فً الطاقة

تسرٌب بخار

تسرٌب أو فاقد فً هواء مضغوط

مناطق تبرٌد الهواء غٌر معزولة

ماكٌنات عاطلة عن العمل

عمالة غٌر مستخدمة

عمالة زائدة

عمالة مؤقتة تستأجر نتٌجة للغٌاب

وقت إضافً غٌر ضروري

عمل غٌر ضروري

استخدام اقل من المهارات

أخري

Current Data Needs Urgently

Site plan (All Factory and Production halls Plan)

Machines layout

Fully Manuals for every Machine (Electrical SLD with control circuit,

Mechanical Catalog, Spare Parts Manual, PLC & HMI Pack up, SOP, Utilities piping colors,

Electrical Panels & Cabling map)

Machine capacities (Standard Vs Actual)

Machine utilization, and OEE if available

Organization structure for every dept. with Job Descriptions &

Vacant positions

Factory process diagram flow

Maintenance plan (Actual Vs. Planned) with equipment's codes

TPM, 5S, 7Wastes, GMP results for every production hall

Every Dep. budget plan through 2016

SOP’s for maintenance & for every dep. Processes

Challenges and concerns

Maintenance KPI’s (FR, MTTR,MTBF)

Spare parts cost allocation per machine

Total Spare parts budget plan

Local Manufacturing SP Vs. Importing

SP Coding system with Safety stocks

Monthly reports for Monitoring of

Manufacturing and supply chain performance

1- HSE: Lost time accidents (LTA’s)

Near misses

Unsafe actions

Unsafe conditions

HSE Monthly audit score/area

2- Manufacturing: Actual production Vs. Plan %

OEE %

QDI (quality demerit index)

GMP scores for all areas

Raw Materials (RM) Waste%

Packing Materials (PM) waste %

Manufacturing Cost per ton Or per Mater Box (MB)

Cost saving projects follow-up (status)

3- Supply Chain: RM Out of stock (OOS) %

PM out of stock (OOS) %

FG out of stock (OOS) %

(On-Time In-Full) OTIF %

Supply chain cost/ton Or per Mater Box (MB)

Good warehousing practice % (GWP)

4- Engineering: MTBF

MTTR

Mechanical downtimes% out of total time

Electrical downtime % out of total time

Utilities downtime % out of total time

Maintenance cost per ton Or per Master Box (MB)

Projects completion status report

Summary of achievement data needed

Areas we should focus on

1- Safety (LTA – near misses – unsafe action – unsafe

condition – audits score – HSE action compliance)

2- Quality (quality major defects – customer complaint –

ISO compliance – quality projects in progress)

3- Costing (cost/ton of production Q1 2015 Vs. Q4 2015 –

waste comparison same period – labour cost

rationalization plan)

4- Productivity (OEE for all production lines – Actual

production Vs. Plan/SKU)

5- Delivery (OTIF)

6- Moral (labours absenteeism – training given –

Training plan)

7- New projects (any new projects which could help

in process improvements)

8- Work progress achievement, what works well in

your dept. and what doesn’t work well, and why?

9- Areas for improvement and action plan

10- Enablers and barriers لتحقٌقالعوامل المساعدة والمعٌقة

األهداف

11- Lesson learnt

12- Any other subject you feel proud to present

ولويات هم ألمشروعات ألمقترحة لكل قسم حسب أل

أ

التكلفة

المتوقعة

الفترة

الزمنٌة

المتوقعة

للتنفٌذ

أنسب فرٌق

للمساهمة فى

تنفٌذ المشروع

داخل المصنع

الفائدة

المتوقعة

من

المشروع

المشروع المقترح المكان

1 2 3 4

5 7

8 9

10

فكار ألمقترحة للتوفير هم أل

X’ Treame Ideasأ

no. IDEA DETAILS

1 REDUCE WASTE Focus on reducing raw and packaging materials waste Vs. 2015

2 MAINTENANCE COST Monitor and reduce maintenance cost per ton Vs. 2015

3 RAW MATERIAL SPECIFICATION STANDARD

Ensure clear specification for all raw and packaging materials

4 MINIMUM ORDER QUANTITY Ensure clear communication with planning and identify minimum order for all product in order to reduce number of changeovers and reduce cost

5 LINE LAYOUT work closely to relay out of production lines, in order to ensure smooth product flow, eliminate un-necessary process, and reduce number of labors

6 OPERATOR'S CHANGE OVER ensure overlaps between shifts, in order to minimize/eliminate machines un-necessary stoppages

7 LABOUR INCENTIVE review labors incentives, and link these to (OEE-HSE-GMP-actual production vs. plan)

8 OVERFILLING OF BAGS Ensure that there is no overfilling of bags, as this is a main source of waste

9 CONSOLIDATED PURCHASING Ensure no sole PO's for several functions, for common items

10 CHEAPER TRANSPORT Try to find another/cheaper source of transportations

11 STOP PAPER WORK No paper to be printed unless it is necessary for business use

12 LOCAL SUPPLIER AGREEMENT For spare parts and imported materials wherever possible

13 NEW SUPPLIER Develop new suppliers, with no compromise in quality

14 COST REDUCTION IN PACKAGING Come with new ideas in order to minimize product cost

15 SALE IDLE ASSET we should get rid of un-necessary assets, if there's no clear plan for its uses, and same for Idle spare parts

16 TPM implement total preventative maintenance with objective to reach mechanic - operator and electrication - Start operate maintain training program

17 EFFICIENCY Improve efficiency by apply 5's technique could result with 5-10% improving in output

18 OEE Implement overall equipment efficiencies technique which work to reduce idle time and maximize working for both equipment and operators as result additional 7-12% could be added to output

19 MATERIAL USAGE Measure material consumption in order to reduce spoilage better utilization of all available material

20 LEAN MANUFACTURING implement lean concept by plan, apply, deploy, integrate and excel with objective for continuous improvement with measures

21 REDUCE ABSENTEEISM Encourage people by rewarding them for giving full attendance by rearranging their personal work in off time, reduce the sick leaves, unplanned absenteeism.

22 People Training agree training plan with HR

23 KPI Start report monthly KPI's and hold people accountable for their performance, this is so important for the people to know that they are hold accountable

New Project Process Phases

Ide

a Ph

ase

Feasib

ility Ph

ase C

apab

ility Ph

ase Evalu

ation

Ph

ase

De

livery P

hase

1- Project Charter ( Owner, Team, Time, Cost, Stock holders Data collection,

(Scope 2- Layout 3- First Risk Assessment

Plan Do

Co

mm

ission

ing (2

5B

,1m

)

Actu

al Starting

GM

& Fin

ance A

pp

roval

Brain

Storm

ing M

ee

tings

1- WBS (change Scope of work to tasks for project team members) 2- Collect Needs 3- Project SAP creation 4- Purchasing components

1- Technical review By Projects & Maintenance 2- 2nd Risk Assessment by Safety 3- HAZOP study by projects Team 4- HACCP Study by Q.A 5- Project Data Analysis Collection (FR, QDI, Speed, Productivity) by commissioning team

Check Act C

on

tinu

es o

pe

ration

Manuals & Programs, SOP, Spare Parts, Labors & Technicians Training Hours

1- Delivering of (Manuals & Programs, SOP, Spare Parts, Labors & Technicians Training Hours) 2- Delivering of (FR,QDI, Speed, Productivity 3- Follow up the delivery meeting notes

Data Analysis (FR, QDI, Speed, Productivity) Calculations

Clo

sing P

hase

Finish

Pro

ject N

ote

s

Rev.

Not Approved

Review

Products losses tree / Loading Time

85% 90%

73% 85% 86%

73% 69%

98%

52%

94%

44%

86% 90% 87%

Operating time

Plan

quality

no wip

start / endshift

Change over

Labor

Break down

Minor stoppages

`

Documents

SIMA Strategy Final