TPM BPN F2F3_Sandoz BR_Increasing OEE throughout Manufacturing Operations

a Novartis company

Increasing OEE throughout Manufacturing Operations

Frederico França Giunchetti

Engineering Head – Cambé / Regional Engineering Coordinator - LATAM

Objective

This study will present a real case in the Pharmaceutical industry where, after starting up a new site and understanding its competitiveness inside the Company and the Market, there was the need to redraw processes.

By using some tools and concepts from TPM (Total Productive Maintenance), Lean Manufacturing and Times-and-Methods, implementing a losses tree structure for the main equipment and rebalancing the products in the lines considering capacities and flexibility, the Manufacturing and Packaging lines came up from around 20% to 50% of OEE in less than 24 months.

Summary

1. Welcome to Cambé site, Brazil

2. Initial scenario

3. SPA – Process Improvement Culture in the site

4. Implementing OEE and its analysis from the beginning

5. Understanding the root-causes of equipment stoppages

6. People Development

7. Rebuilding the production / maintenance plans

8. Using the right equipment to the right product (Process Engineering)

9. Results

10. Next steps

11. Conclusion

12. Contact

Capital: Brasília

Area: 8,5 millions km2

Population (2010): 190 Mio

Population Growth (2000-2010): 1,17%

GDP growth: 7.5% (2010)

Cambé (PR) –São Paulo (SP)

~ 550 km

1. Welcome to Cambé site, Brazil

2. Initial Scenario

Brandnew site in 2007(2,5 years of operation)

Imported equipment without technical assistance in the

region

Lack of methodology for problems solving

Maintenance plans in Excel

Production plans developed manually

Lack of “prevention mindset”, only

corrective actions

Packaging and Manufacturing

OEE around 20%

Very high throughput time

(around 100 days)

Very young age average in the site – lack of

professional experience

High difficulties to hire qualified people

in the region

Motivated team

New equipment – low level of maintenance

and breakdowns

State-of-art GMP and HSE standards

FocusedImprovement

AutonomousMaintenance

Planned Maintenance

Training andEducation

SPA

Visual Controls Gemba Process Engineering OEE 5S

Value Stream Mapping SMED Kaizen Standard Work PDCA

GMP HSE Kanban Ishikawa / 4Ms / 5W+1H Finance analysis

3. SPA – Process Improvement Culture in the site

4. Implementing OEE and its analysis from the beginning (the rise of TPM in the site)

• Stoppages hand-written on templates by operators

• Daily reports analysis by shop-floor staff

• Stoppages recorded manually by one trainee in Excel files

� Start in a simple way: data collection doesn’t need to be automated

� Definition of an objective way for the operator registers the cause of the stoppage

� Development of Excel spreadsheets to receive the data and automatically calculate OEE, equipment utilization, MTBF, MTTR, etc.

� Then the information is there for analysis!

4. Implementing OEE and its analysis from the beginning (cont.)

Stratification of stoppages

per equipment part and reason

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0

1.000

2.000

3.000

4.000

5.000

Jan Fev Mar Abr Mai Jun Jul Ago Set Out Nov Dez TGT PY

MT

BF

(h

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a)

0,0

0,5

1,0

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2,0

2,5

3,0

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MTBF Acumulado MTTR Acumulado

Average setup time

11

02 2

15

0,0

4,9 4,4

2,11,2

0

5

10

15

20

A B C D Total

0

2

4

6

Qtdade de Set up´s Tempo médio de set up

Marcos AbraMarcos Abra

Marcos AbraMarcos AbraMarcos Abra

Marcos AbraMarcos Abra

Marcos AbraMarcos AbraResponsible

Marcos Abra

Marcos Abra

Marcos Abra

Jun 2009

Improvement

Plan

Action

1) Seladoras Hot melt: Será realizado a task list de manutenção para os equipamentos de Hot melt, dividindo as manutenções em dois periodos, sendo uma frequência semestral e a outra anual. Será realizada tambem a revisão

dos Spare Parts para que ocorra a substituição e envio de peças para reforma no período semestral ( Mangueiras e módulo de Injeção).

2) Guk de Bulas: Será realizado a revisão da task list de manutenção para os Guk de bulas, dividindo as manutenções em dois periodos, sendo uma frequência semestral e a outra bianual. Será realizada tambem a revisão

dos Spare Parts para que ocorra a substituição e envio de peças para reforma no período semestral (Rolos de Borracha). Com o treinamento realizado com o técnico da ATIMA, nossos manutentores se capacitaram para

realizarem a manutenção deste equipamento.

Encartuchadeiras e Emblistadeiras: Esta em estudo a implantação de manutenção preditiva para estes

equipamentos( Termografia, Análise de Vibração e Lubrificantes ) o que proporcionará melhor acertividade nas atividades e previsão de tempo de máquina parada para manutenção, facilitando a negociação com pcp e produção.

Critical Analysis

SELADORA HOT MELT 02 BR11-P352-SE002 24.01.2009GUK DE BULAS BR11-P356-ZZ001 12.05.2009

BALANÇA GARVENS BR11-P354-CW 004 24.06.2009SELADORA HOT MELT 04 BR11-P354-SE004 24.06.2009GUK DE BULAS BR11-P354-ZZ001 24.06.2009

GUK DE BULAS BR11-P353-ZZ001 01.06.2009ENCARTUCHADEIRA CARTOPAC BR11-P353-CT001 20.06.2009

EMBLISTADEIRA BLIPACK 240 II BR11-P304-BP001 24.06.2009ENCARTUCHADEIRA CAM BR11-P354-CT001 24.06.2009

5. Understanding the root-causes of equipment stoppages

Root Cause

Analysis

Problems

Stratification

Action Plan

Actions

Implementation

Measurable

Improvement

EvaluationInitial Situation

DiagnosisClosing, lessons learned and roll out,

if possible

A P

C Do

3

2

4

5

6

17

Losses tree stratification

1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

0% 28,8% 30,5% 25,0% 36,8% 29,1% 17,6% 0% 40,8% 37,0% 47,9% 63,8% 0,0% 0,0% 0,0% 49,5% 39,7% 43,1% 40,4% 27,6% 0,0% 0,0% 70,8% 39,8% 49,7% 0,0% 17,7% 17,5% 0,0% 54,1%

0,0% 10,0% 0,0% 27,6% 0,0% 2,0% 10,2% 9,2% 0,0% 0,0% 1,1% 11,1% 8,3% 0,0% 11,8% 8,8% 5,0% 6,2% 2,5% 2,5% 7,7%

0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 3,5% 0,0% 0,0% 1,7% 0,0% 0,0% 0,0% 12,1% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

0,0% 0,0% 0,0% 0,0% 9,9% 51,4% 8,3% 13,9% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 3,1% 85,8% 0,6% 61,2% 1,4%

0,0% 16,4% 2,9% 1,3% 0,0% 0,0% 0,7% 1,4% 0,0% 0,0% 0,0% 13,1% 13,4% 1,7% 0,9% 4,2% 0,0% 0,0% 0,0% 0,5% 11,1% 5,8%

20,0% 19,8% 14,0% 10,6% 10,4% 8,1% 31,1% 15,5% 16,4% 8,7% 15,1% 6,9% 13,2% 8,1% 11,2% 15,9% 14,2% 33,5% 6,4% 62,9% 7,6% 21,3%

0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 9,6% 0,0% 0,0% 0,0% 0,0% 5,1% 0,0% 1,3% 0,0% 0,0% 0,0% 0,0% 0,0%

48,0% 20,0% 46,4% 17,1% 49,8% 15,4% 7,8% 14,0% 23,7% 13,6% 28,8% 23,6% 19,4% 44,7% 29,5% 0,0% 34,7% 6,0% 7,8% 15,0% 0,0% 8,3%

3,0% 3,4% 11,8% 6,6% 0,7% 5,6% 1,2% 5,6% 12,0% 4,3% 3,8% 5,6% 2,6% 5,0% 1,6% 0,3% 5,0% 1,5% 0,7% 0,1% 1,4%

Resultados

0%

28,8% 30,5%25,0%

36,8%

29,1%

17,6%

0%

40,8%37,0%

47,9%

63,8%

0,0% 0,0% 0,0%

49,5%

39,7%43,1% 40,4%

27,6%

0,0% 0,0%

70,8%

39,8%

49,7%

17,7% 17,5%

0,0%

54,1%

37,6%

0%

27,6%

0%

10,2%

9,2%

0,0% 0,0% 0,0%

11,1%8,3%

11,8%

0,0% 0,0%

8,8%

5,0%

6,2%

2,5% 2,5%

0,0%

7,7%

0% 0%

3,5%

0,0% 0,0% 0,0%

12,1%

0,0% 0,0% 0,0%0%

9,9%

51,4%

0%

8,3% 13,9%

0,0% 0,0% 0,0% 0,0% 0,0%

85,8%

61,2%

0,0%

7,4%

16,4%

1,4%

0,0% 0,0% 0,0%

13,1% 13,4%

0,0% 0,0%

11,1%

0,0%

5,8%

20,0%

19,8%

14,0%

10,6%

10,4%

8,1% 31,1%15,5%

16,4%

8,7%

0,0% 0,0% 0,0%

15,1%

6,9%

13,2%

8,1%

11,2%

0,0% 0,0%

15,9%

14,2%

33,5%

6,4%

62,9%

7,6%

0,0%

21,3%

16,7%

9,6%

0,0% 0,0% 0,0%

5,1%

0,0% 0,0% 0,0%

48,0%

20,0%

46,4%

17,1%

49,8%

15,4%

7,8%

14,0%

23,7%

13,6%

0,0% 0,0% 0,0%

28,8% 23,6%

19,4%

44,7%

29,5%

0,0% 0,0%

34,7%

6,0% 7,8%

15,0%

0,0%

8,3%

23,2%

3,0% 3,4%

11,8%6,6% 5,6% 5,6%

12,0%4,3%

0,0% 0,0% 0,0%

3,8% 5,6%2,6% 5,0%

1,6%

0,0% 0,0%

5,0%

0,0%

1,4%

9,9%

10,0%

2,0%

1,1%

1,0%

1,7%

1,4%

0,6%

3,1%

0,5%

0,7%

2,9%

1,3%

0% 0%

3,4%

1,7%

0,9%

4,2%

1,3%

0,8%

0,7% 0,1%1,5%1,2%0,7% 0,3%

0%

20%

40%

60%

80%

100%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Acumulado

%h

ora

s

OEE Perda de output Mecânica (Ajuste e Manutenção) Elétr ica (Ajuste e Manutenção) Ajustes Gerais Espera Limpeza Set up Outros

Problem solving tools

OEE daily measurement

Jan Fev Mar Apr May Jun Jul Aug Sep Oct Nov Dez YTD Target PY

OEE

Resultados:

41,0%

33,4%

20,7%

50%

42,7%

25,8%

35,9%

42,3%

45,8%

41,6% 40,7%

26,5%

38,8%40%

24,1%25,5%

44,3%45,9%

39,5% 39,5%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

Jan Fev Mar Apr May Jun Jul Aug Sep Oct Nov Dez YTD Target PY

OE

E (

%)

Action Plan establishment

6. People Development (Training and Recognition)

People Development

Development matrix for each function:•All equipment operators•All maintenance professionals•All lab technicians

Analysis of each associate in his function:•All equipment operators•All maintenance professionals•All lab technicians

Training Plan for:•All equipment operators•All maintenance professionals• All lab technicians

Investment on trainings are high in the beginning. (Keep in mind to have flexibility for the functions)

Implementation of a recognition program for the good ideas (Productivity, Quality, HSE, etc.)

Implementation of a results-based BSC (Balance Score Card) for the Maintenance team and main operators (analyze the high-performers)

Implementation (together with HR) of a good salary program in order to keep qualified people. It’s better to have few qualified and motivated people than having many low qualified and demotivated associates

7. Rebuilding the production / maintenance plans

Production Plans:

• Production planning was controlled by Excel

spreadsheets, impacting highly the best productive sequence and, consequently, the product inventory and the work in process. Consequently, the Throughput time was very high:

Status before TPT focus:

• Total TPT in days: 99 days YTD 2007

How we did it?

• Tight inventory policy

• Better sales forecast accuracy

• Improvement in the Manufacturing and Packaging planning

• OEE measurement implementation

• Multi-disciplinary team focusing on troubleshooting, etc.

• Weekly meetings and action plan for each deviation

Results after TPT focus:

• Total TPT in days: 27 days YTD 2008

Maintenance Plans:

• Maintenance planning was controlled by Excel spreadsheets, impacting highly the control, follow up and traceability of Maintenance Orders.

• There wasn’t any KPI to reflect the Maintenance Performance.

How we did it?

• Implementation of some main KPIs for Preventive Maintenance, Calibration, Breakdown Maintenance and Utilities unavailability

• Monthly meetings to perform a critical analysis on the KPIs, action plans and follow up on them

• Implementation of a very simple version of SAP (Plant Maintenance Module)

Results:

• Maintenance and Calibration execution above 95% according to the schedule

• 100% of Maintenance Orders traceability

•.OEE improvement

8. Using the right equipment to the right product (Process Engineering)

Best scenario for lines occupation x OEE x

number of headcounts

• What is produced?• When is it produced?• How much is produced?• Make-to-stock or make-to-order?• What to produce automated and

what to produce manually?• New or old lines?• Yield of each equipment?• Need of harmonization for different

cartons/cases/leaflets?

• High or low speed equipment?

• Ideal size of batches?• Ideal number of

headcounts per line?• Ideal number of shifts?• Number of technical

complaints per line?• Outsourcing or insourcing?

Some questions to be answered by the Process

Engineering

Ind. Dir

9 0 3 3 6.240 2.143 21,3 mio blisters 7,5 mio blisters 35%

18 0 6 3 6.240 5.177 15,7 mio cartons 13,0 mio cartons 83%









Printing Area 3 0 1 3 6.240 5.795 97.878 Kg 91.027 Kg 93%

Line 2

Line 3

Line 4

Time (hours/year)Full Capacity Occupation

Available In Operation

Total

FTEMachines Shifts

Line 5

Line 6

FTE / Shift

9. Results

689 980 1.024 645 800 900

58,4

75,4 73,1 71,7

100,0 100,0

20,7

50,5 53,6 59,4

62,1 67,0

0

20

40

60

80

100

120

-

200

400

600

800

1.000

1.200

2007 2008 2009 2010 2011 2012

OE

E%

, M

io S

DU

/FT

E

Mio

SD

U

Tableting

Volume Volume / FTE OEE

9. Results (cont.)

1) Values are corrected by inflation (IGP-M) from Dec of the ACT-Year to April/2012 and converted into US$ by 2012 official Sandoz Exchange Rate

2) Personal Costs are not included

1004

636

438577

1223

853773

927

1199 10311100

1099

307

507

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

ACT 2009 ACT 2010 ACT 2011 TGT 2012

Maintenance and Utilities Costs Evolution

Production Maintenance (Th US$) Utilities (Th US$)

Infraestructure Maintenance (Th US$) Calibration: site instr. + QC equip. (Th US$)

2 shifts 2,5 shifts3 shifts 2,5 shifts

9. Results (cont.)

Diagram: 2012

Results:

Indicator:

Planned x Executed Preventive Maintenance

99% 99% 92%

0% 0% 0% 0% 0%0%

0% 0% 0%

97%

0% 0% 8%

0% 0% 0%0% 0% 0% 0% 0% 0%

3%95,8% 97,4% 98,6% 99,4% 99,1% 100,0%

0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

99,5% 98,8% 100,0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

PY09 PY10 PY11 Jan Fev Mar Apr May Jun Jul Aug Sep Oct Nov Dez YTD TGT12 GOAL

Waiting documentation % Completed documentation % Execution %

Diagram: 2012

Results:

Indicator:

MTBF - MANUFACTURING

38,7339,89

0,00 0,000,00

0,00 0,00 0,00 0,00 0,00 0,00

35,00

22,27

40,83

60,4

43,441,7 41,7 41,7

41,7 41,741,7 41,7

41,7

0

10

20

30

40

50

60

70

PY09 PY10 PY11 Jan Fev Mar Abr May Jun Jul Aug Sep Oct Nov Dez YTD TGT12 GOAL

MTB

F (h

ours

)

MTBF MTBF Accumulated

FocusedImprovement

AutonomousMaintenance

Planned Maintenance

Training andEducation

SPA

Visual Controls Gemba Process Engineering OEE 5S

Value Stream Mapping SMED Kaizen Standard Work PDCA

GMP HSE Kanban Ishikawa / 4Ms / 5W+1H Finance analysis

10. Next steps

10. Next steps (cont.)

Regulatory Compliance(HSE, GMP, 5S)

Prevention of

deviations and failures

Improvement

focused on

Value-added

Operational

Excellence

TPM

(culture that focus

on efficiency and

reliability)

LEAN/6-

SIGMA

(culture that focus

on extreme

efficiency)

10. Next steps (cont.)

The search for the REAL NORTH

11. Conclusion

In principle, to create a high competitive site comparing to others inside the Company or the competitors you need:

1. Measurement and analysis of productive data, establishing and following action plans (KPIs)

2. Methodology for root-causes finding in order to establish the “right thing – first time” culture.

3. Investment in people: trainings, better salaries, face-to-face management in order to understand what motivates each one

4. Routine for improvements discussions in productivity, quality and HSE

5. Budget establishment for improvements implementation

6. A very qualified team of Process Engineering in order to always indicate the fastest and cheapest way to produce

7.For sure, specific softwares like MES (Manufacturing Execution System) will speed up the improvement process and are very important in order to make easy having data.

8.On-the-job example coming from the mid and top-managements in order to show the new CULTURE and challenging the status quo

9. And finally, a vision For the Process Improvement Program linked to the site / Company visions, highly supported by the mid and top-level managements........a North to drive the activities and to indicate a clear way to the target

12. Contact

QUESTIONS AND DOUBTS

Frederico França [email protected]

Documents

TPM BPN F2F3_Sandoz BR_Increasing OEE throughout Manufacturing Operations