Managing Your Manufacturing Enterprise with Actionable Information

1. Moving From Art to Science
Manufacturing in the 21st
Century

2. Your Workforce
Past Present
Employee Life Less than 3 years
Progression Decade Months
Living for Future Now
Work life balance Work Life
Process Art Control/data
Process knowledge High Low
Work Load Reasonable Overburdened
Job Function Well Defined Multiple Roles
Computer knowledge Low High
Moving From Art to Science

3. Cost + Control
Resource Cost Control
Materials $$$ Yes
People $$$ ?
Assets $$$$$$$ Yes
Parts $$ Yes
Process ? ?
Improving Cost Control & Throughput with Process Control
Your process combines the costs of materials, people, assets, and parts
for all activities needed to make each product. When you control each
area, you can control your costs.

4. Increase Throughput
• Raw material receiving / storage
• Processing/batching
• Pasteurized/processed product
storage
• Filling / Packaging
• Effluent
• CIP
Do you have the visibility of these areas of the process?
If you could improve flow through one area would it
improve performance and profitability?
Improving Cost Control & Throughput with Process Control

5. Process Control
• What should you control?
– Variables
• Why do you need to control them?
– Repeatability – Consistency
• How are you going to control them?
Improving Cost Control & Throughput with Process Control

6. Managing Operations with
Information

7. Receiving
► Problem: Only visibility to receiving operations is paper trail
• Original hardware & software controls to move
milk, actuating pumps, valves, air-blows
► Solution: Added additional hardware & software
• Meters and software to integrate compositional data, truck, transport
data, testing data, billed and scaled amounts, destination tanks, flows and
tank levels
► Results: Caught losses of milk left on tanker (20 gal to 1000
gallons)
• Immediate HMI view and notification on large losses
• Used information to study trends by operator, driver, carrier, day of the
week, receiving bay, etc.
• Discovered loss occurring late on weekends with one driver
• Broke multi-million dollar theft ring
Real Life Dairy Manufacturing Problems and Solutions

8. Cream Press
►Problem: “Blew Cream Press”
• Lost material, lost time, inconsistent fat level
►Solution: New plate package and Automated
controls
►Results: Consistent BF, improved temperature
control, improved yield
• Improved visibility of the process
Real Life Dairy Manufacturing Problems and Solutions

9. Managing Inventories
• Collection tools: Paper and
pencil or sensor technology
• Automation: Track amount,
usage and temperatures
• View in plant at HMI and on
desktop
• Provide alerts and information
for plant operations,
purchasing, sales, planning, and
other departments
• Provide emailed or live
inventory to suppliers to assist
in managing inventory levels to
match usage
Real Life Dairy Manufacturing Problems and Solutions

10. Contaminated Product
• Discovery: Visually on display (Tank temperature too high, volume too high)
• Correlation: Events – Receiving and CIP
• Identification: Sequence of events and operators responsible
• Control: Liability
ChemicalsMilk
Real Life Dairy Manufacturing Problems and Solutions

11. Batch
Typical Problems
Variables to Measure &
Control
Missing Ingredients • Flows
• Quantities
• Ingredients
• Agitation
• Mixing
• Temperature
Wrong Ingredients
Wrong BF
Under-Stabilized
Over-Stabilized
Over-Fortification
Wrong pH
Wrong BRIX
Air Incorporation
Real Life Dairy Manufacturing Problems and Solutions

12. Pasteurizing Process – Under Utilized
Idle
Real Life Dairy Manufacturing Problems and Solutions
Forward Flow
CIP

13. Pasteurizing Process – Time Lost
Recycle
Divert
Forward Flow
Real Life Dairy Manufacturing Problems and Solutions
CIP

14. Filling / Packaging
Quality, Yield,
Utilization Issues
Measurements Area Affected
Leakage Visual/Electronic Shrinkage
Over/under fill Scale/Volumetric Shrinkage/Lost Sale
Volume Metered in vs.
Package Count
Meter value, Sensor Yield and Shrinkage
Lack of packaging Bottles, packages per minute OEE
CIP/COP Duration of CIP Availability
Downtime too high
Number/duration per shift per
reason
OEE, Distribution
Changeovers Number/duration per shift Throughput
Wrong product Product, tank, label, time Shrinkage, OEE
Real Life Dairy Manufacturing Problems and Solutions

15. Cost Control and Process
Control
►“Get what you pay for”
►Control inventory
• Monitor Receipts vs. Billing vs. Shipments
►Effective use of resources and assets
• Waste or Loss Reduction
• Resource in equals Finished Product out
►Efficiently use of resources and assets
• Manpower reductions
• Increase machine time available for sales
►Develop accurate costing
• Activity Based Costing

16. Sustain Results
►Train and Empower People
• Job knowledge to make good decisions
• Authority to make decisions
►Provide Effective Tools and Systems
►Provide Accurate, Actionable Information
• Information is real-time, with correlated events
►Act on the Information
• Given the responsibility and training to act
• Held accountable for actions
►Achieve Sustained Results
• Ownership and Reward

17. Shrink Control/Loss Prevention
ABC Dairy
► Problem:
• Monthly loss of butterfat (3%), total loss (2.5%)
• Needed visibility because only knew loss on
monthly basis
► Solution:
• Hardware/software installed to measure product
metered into and out of each area of the plant.
• Developed daily utilization reports based on predicted or
expected yield vs. actual and identify loss by area.
• Reduced loss in receiving, storage, batching, processing, and
packaging to less than 1%.
► Results:
• Annual savings: $600,000
Controlling Costs and Sustaining Results

18. Effluent/Waste Water
XYZ Dairy
►Problem: Fines for Fats, oils and grease in waste stream
►Discovery:
• Test for fats, oils, greases
• Butterfat was the largest contributor
►Solution:
• Hardware/software; installed optical sensor, opacity meter,
recording system, annunciator
• When sensor alarmed, immediately responded to all plant areas
• Isolated areas and found sources (CIP, Separator, Cream Loadout)
• Developed new procedures and added programming to reduce loss of product
and eliminate violations
►Results:
• Annual savings: $80,000
Controlling Costs and Sustaining Results

19. Rudy’s Top 5 Focus Areas

20. Contact Information
Rudy Westervelt
President
rudy@powerinlearning.com
(909) 563-8700