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Data-driven model-based restructuring of enterprise transaction operations

The document outlines a productivity improvement initiative for a large transaction print production and mail environment, detailing the methodology involving data collection, simulations, and process optimization. It discusses the complexities of the operation, which includes numerous locations, equipment, and personnel, as well as the goals to enhance efficiency and profitability. The presentation includes a structured approach to analyze and transform the operational processes through simulation-based modeling and short-interval scheduling.

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Page 1 Productivity Improvement of a Large Complex Transaction Print Production and Mail Environment Utilizing Simulation-based modeling and Short-Interval Scheduling Sudhendu Rai, Eric Gross PARC – A Xerox Company Xerox Global Services Presented at the 2014 Winter Simulation Conference, Savannah, GA http://www.wintersim.org
Structure of the presentation • Problem description • Data collection • Understanding the data and gaining insights for simulation modeling • Process modeling and simulation toolkit demo • Iterating between simulations and on-the-floor pilots • Short-interval scheduling • Business results Page 2
Three Geographically non-collocated transaction prin operations TX PA MA Problem Statement: Improve the productivity of the enterprise to improve profitability Page 3
Focus on one of the largest Transaction Print and Mail Operations Printer Room Machine Insert Room Hand Insert Area Site Profile • 800 Million images/year • 109 FTE’s • 6 CF lines, 7 6180 • 86K Sq. Ft • 9 High Speed Inserters + Legacy Inserters • Manual Hand Insertion Area Page 4
Service Process Optimization Framework and Methodology ❑ Assess ❑ Collect Data & VOC/VOB ❑ Gather Floor Maps, Equipment Lists and Operator Information ❑ Collect job data for Lynnfield and Dallas Applications ❑ Gather Assumptions ❑ Perform Analysis & Validate Findings ❑ Deliver Define/Measure Tollgate (Current State Baseline) ❑ Obtain Approval to Proceed ❑ Recommend ❑ Create Models and Simulations ❑ Optimize Cells and Job Production ❑ Perform Simulations and What If Scenarios-Includes Load Balancing ❑ Map Cells and Designs to Floor Plans ❑ Develop Transition Plan ❑ Perform Analyze Tollgate (Recommendation w/ Transition Plan) ❑ Obtain Approval to Proceed Assessment ❑ Virtual Pilot ❑ Design Pilot ❑ Perform Pilot ❑ Obtain Approval to Proceed ❑ Current Equipment (Move) : Identify Install Location Requirements ❑ Identify and Address Any Site Modification/Moves ❑ Obtain Formal Notice of Site Readiness ❑ Move Equipment ❑ Install Equipment ❑ Refresh Equipment (Install) ❑ Identify Install Location Requirements ❑ Identify and Address Any Site Modifications/Moves ❑ Obtain Formal Notice of Site Readiness ❑ Deliver Equipment ❑ Install Equipment ❑ Ramp Up ❑ Deploy Phased Approach Per Transition Plan Implementation ❑ Steady State ❑ Support Operational Processes ❑ Attain SLA’s ❑ Generate and Deliver Reporting ❑ Track Improvement Gains ❑ Identify/Propose On-Going Improvement Opportunities ❑ Implement and Support On-Going Optimization Solutions Realization Page 5
Data Collection • Floor plan – Location, constraints, flow • Equipment data – Speed, setup, capabilities Inserter Model Qty on floor Sheet feed rate Machine Cycle speed Max Actual Envelope Inserting speed #10 6x9 9x12 Insert Bins 2D 3 of 9 File Base Ready Set Up time Pitney Bowes MPS26 2 50,000 26,000 22,000 Y Y N 7 Y Y Y 30 to 60 minutes Pitney Bowes FPS 2 36,000 12,000 8,000 Y Y Y 6 Y Y Y 10 to 15 minutes for #10 to 6x9/ 2+ hours for 9x12 Pitney Bowes FPS Booklet 1 NA 12,000 8,000 Y Y Y 6 N N N 10 to 15 minutes for #10 to 6x9/ 2+ hours for 9x12 Pitney Bowes MSE 1 36,000 14,000 10,000 Y Y Y 6 Y Y Y 10 to 15 minutes for #10 to 6x9/ 30 minutes for 9x12 Pitney Bowes Companion 2 5,400 5,400 3,200 Y Y N 2 Y Y Y less than 5 minutes Bell and Howell Combo 1 45,000 12,000 8,000 Y Y Y 6 Y Y Y 10 to 15 minutes Bell and Howell Marathon 3 45,000 20,000 16,000 Y Y N 5 Y Y Y less than 10 minutes Bell and Howell 4000's 2 36,000 20,000 4,000 Y Y N 6 N Y N 10 minutes Bell and Howell 500's 2 16,000 10,000 4,000 Y Y N 6 N Y N 10 minutes Printer Model Qty on floor Type Color Micr Duplex Speed in Images/Hour Xerox DP180 8 CutSheet BW yes 8,640 Xerox DP180HLC 1 CutSheet BW no 8,640 Xerox DP1050 3 Continuous Feed BW no 50,400 Xerox DP1300 3 Continuous Feed BW no 62,400 Xerox iGen3 4 CutSheet Color no 4,000 • Operator data – Name, skills, schedules,… • Workflow Execution data – Timestamp, qty, steps … Automated Insertion Dept - Last Name First Name Manager or Worklead Work Days Work Hours B H 5000Fla t B H 5000FoldB H 4000Fold P B C om panio n M arathon FP S12F FX 10F M P S M S E A S C E N D E RA dm ark P R IN T-D T180M X P R IN T-6 180H C L P R IN T-C ontFeed P R IN T-IG E N P R IN T R E LEA SE STA TIO N X ER O X C O LO R 800 S C H E D U LIN G C O N TR O L D E SK O O MFLE XS E R V ER D FW O R K S R IM S S U P ER V IS O R O R M A N A G E M EN T 1ST SHIFT M-F VU ANNIE THANH M-F 7AM-330PM X X X X SHEPHERD BRYAN M-F 7AM-330PM X X X X X X SAING ROBERT M-F 7AM-330PM X X X X X X X PANIAGUA JOSE M-F 7AM-330PM X X X X X NOP REASEY M-F 7AM-330PM X X X X X PEN MALYS M-F 7AM-330PM X X X X X X MAM SARANTA M-F 7AM-330PM X X X X X X X X X LOPEZ JOSE M-F 7AM-330PM X X X X LEBLANC ROBERT M-F 7AM-330PM X X X X HOANG HOA THI M-F 7AM-330PM X X X X X GARZON JUAN M-F 7AM-330PM X X X X X X CHHUNG SAOR M-F 7AM-330PM X X X X X X X X X BUSTOS MIGUEL M-F 7AM-330PM X X X X BARRIENTOS CARLOS M-F 7AM-330PM X X X X ARROYAVE DANIEL WL M-F 7AM-330PM X X X X X X X X X X X X X ALEMAN VICTOR M-F 7AM-330PM X X X X Tran Minh M-F 7AM-330PM X X X X X X Cashman Mike MGR 2ND SHIFT BOVE JOE M-F 330PM-12AM X X X X X CANG CHHOUNG M-F 330PM-12AM X X X X X HUOT PUNNARAY M-F 330PM-12AM X X X X X X X X X X X KOV KASEY WL M-F 330PM-12AM X X X X X X X X X LEE VANGSRENG M-F 330PM-12AM X X X X LY HONG M-F 330PM-12AM X X X X MEAN ROTHA M-F 330PM-12AM X X X X X X X X MOTH SAROTH M-F 330PM-12AM X X X NGUYEN THAO M-F 330PM-12AM X X X X X PHAL SOPEUN M-F 330PM-12AM X X X X X X X X X PICH DARARITH M-F 330PM-12AM X X X X X X X X X X X THACH SAUDINARONG M-F 330PM-12AM X X X X X X Roman Santiago MGR JOB_ID ARRIVAL_DATE POS_DATE MATHLG_DATE DUE_DATE RELEASED CONTROL_DESK_DATE COMPANION COMPLETED JOB_NAME COLOR_PAGES BW_PAGES PRINTER_TYPE PRINTER INSERTED_ENVELOPES ENVELOPE_ATTRIBUTE INSERT_DEPT INSERT_MACHINE INS_TOTAL OVERNIGHT METER_RATE INGD13212BCF1P001220 8/1/20130:00 8/1/201314:16 8/1/201314:48 2-Aug-13 8/1/201312:49 8/2/20130:17 8/2/20130:00PAOS54ID 0 728CUT PRT69 726#10 LTR Marathon3-BH 0 0FIRSTCLASSPRESORT INGD13212BCF2P001216 8/1/20130:00 8/1/201315:16 8/1/201315:30 2-Aug-13 8/1/201312:50 8/2/20130:16 8/2/20130:00PAOS54ID 0 330CUT PRT69 164#10 LTR Marathon3-BH 0 0FIRSTCLASSPRESORT INGD13212BCF3P001171 8/1/20130:00 8/1/201315:15 8/1/201315:33 2-Aug-13 8/1/201312:50 8/1/201322:18X 8/2/20130:00PAOS54ID 0 218CUT PRT69 72#10 CI 0 0FIRSTCLASSPRESORT INGD13212BCF4P001194 8/1/20130:00 8/1/201315:15 8/1/201315:33 2-Aug-13 8/1/201312:52 8/1/201317:17 8/2/20130:00PAOS54ID 0 122CUT PRT69 306X9 CI 0 0FIRSTCLASSPRESORT INGD13212BCF50001734 8/1/20130:00 8/1/201315:07 8/1/201315:33 2-Aug-13 8/1/201312:54 8/1/201317:16 8/2/20130:00PAOS54ID 0 128CUT PRT69 2 CI 0 0FIRSTCLASSFULLRATE INGD13212BCF5P001092 8/1/20130:00 8/1/201315:07 8/1/201315:33 2-Aug-13 8/1/201312:52 8/1/201317:17 8/2/20130:00PAOS54ID 0 112CUT PRT69 226X9 CI 0 0FIRSTCLASSPRESORT INGD13212BCF6P001117 8/1/20130:00 8/1/201315:06 8/1/201315:33 2-Aug-13 8/1/201312:54 8/1/201317:16 8/2/20130:00PAOS54ID 0 86CUT PRT69 146X9 CI 0 0FIRSTCLASSPRESORT INGD13212BCF7P001972 8/1/20130:00 8/1/201315:05 8/1/201315:33 2-Aug-13 8/1/201312:55 8/1/201317:16 8/2/20130:00PAOS54ID 0 51CUT PRT69 76X9 CI 0 0FIRSTCLASSPRESORT INGD13212BCF8P001956 8/1/20130:00 8/1/201314:14 8/1/201314:54 2-Aug-13 8/1/201312:45 8/1/201318:33 8/2/20130:00PAOS54ID 0 50CUT PRT69 66X9 CI 0 0FIRSTCLASSPRESORT INGD13212BCF9L001209 8/1/20130:00 8/1/201315:17 8/1/201315:33 2-Aug-13 8/1/201313:17 8/1/201317:26X 8/2/20130:00PAOS54ID 0 841CUT PRT69 439X12 CI 0 0FIRSTCLASSFULLRATE DRID13213TCF18001625 8/1/20130:01 8/1/201312:25 8/1/201313:11 2-Aug-13 8/1/201311:13 8/1/201322:39X 8/2/20130:00PAOS51HD 0 102CUT PRT21 916X9 CI 0 0FIRSTCLASSPRESORT DRID13213TCF9L001331 8/1/20130:01 8/1/201312:26 8/1/201313:11 2-Aug-13 8/1/201311:13 8/1/201317:46 8/2/20130:00PAOS51HD 0 21CUT PRT21 19X12 CI 0 0FIRSTCLASSPRESORT DRID13213TGC18001475 8/1/20130:02 8/1/201312:23 8/1/201313:11 2-Aug-13 8/1/201311:09 8/1/201318:26 8/2/20130:00PAOS51TD 0 5CUT PRT21 26X9 CI 0 0FIRSTCLASSPRESORT DRID13213DST18001496 8/1/20130:02 8/1/201314:03 8/1/201314:24 2-Aug-13 8/1/201311:34 8/1/201318:27 8/2/20130:00PAOS51DD 0 6CUT PRT69 46X9 CI 0 0FIRSTCLASSPRESORT DRID13213CNF18001644 8/1/20130:02 8/1/201312:21 8/1/201312:51 2-Aug-13 8/1/201311:14 8/1/201320:41 8/1/20130:00PAOS51GD 0 1191CUT PRT21 9896X9 LTR PB10-9x12 0 0FIRSTCLASSPRESORT DRID13213CNF9L001628 8/1/20130:02 8/1/201312:28 8/1/201313:11 2-Aug-13 8/1/201311:14 8/1/201317:47 8/2/20130:00PAOS51GD 0 53CUT PRT21 39X12 CI 0 0FIRSTCLASSFULLRATE DRID13213CNFF1001627 8/1/20130:02 8/1/201312:28 8/1/201313:11 2-Aug-13 8/1/201311:14 8/1/201318:26 8/2/20130:00PAOS51GD 0 12CUT PRT21 46X9 CI 0 0FOREIGN DRID13213CNFPD001635 8/1/20130:02 8/1/201312:27 8/1/201313:11 2-Aug-13 8/1/201311:14 8/1/201317:26X 8/2/20130:00PAOS51GD 0 169CUT PRT21 1609X12 CI 0 0FIRSTCLASSPRESORT INGD13213DLC1P001189 8/1/20130:03 8/1/20139:16 8/1/201310:22 2-Aug-13 8/1/20138:03 8/1/201315:34 8/2/20130:00PAOS54JD 0 4CUT PRT65 26X9 CI 0 0FIRSTCLASSPRESORT INGD13213DLC2P001130 8/1/20130:03 8/1/20139:16 8/1/201310:22 2-Aug-13 8/1/20138:05 8/1/201315:35 8/2/20130:00PAOS54JD 0 4CUT PRT65 16X9 CI 0 0FIRSTCLASSPRESORT DRID13213BCF18001609 8/1/20130:03 8/1/201314:03 8/1/201314:24 2-Aug-13 8/1/201311:35 8/1/201318:27 8/2/20130:00PAOS51ID 0 59CUT PRT69 246X9 CI 0 0FIRSTCLASSPRESORT INGD13213DCF2P001507 8/1/20130:05 8/1/20139:16 8/1/201310:22 2-Aug-13 8/1/20138:26 8/1/201315:33 8/2/20130:00PAOS54DD 0 4CUT PRT65 1#10 CI 0 0FIRSTCLASSPRESORT ACLD13213LTRMLTXX311 8/1/20130:06 8/1/20135:41 8/1/20137:33 1-Aug-13 8/1/20134:31 8/1/201313:23 8/1/20130:00PAOSPNGD 0 835CUT LPR4 797#10 LTR Marathon2-BH 0 0FIRSTCLASSPRESORT ABSD3212CO1P00004260 8/1/20130:11 8/1/201314:21 8/1/201314:49 2-Aug-13 8/1/20139:44 8/1/201318:50 8/2/20130:00PAMSMORD 0 8CUT PRT69 66X9 CI 0 0FIRSTCLASSPRESORT A04D3212CO1P00005569 8/1/20130:12 8/1/201314:21 8/1/201314:49 2-Aug-13 8/1/20139:44 8/1/201318:46 8/2/20130:00PAMSMORD 0 12CUT PRT69 106X9 CI 0 0FIRSTCLASSPRESORT A07D3212CO1P00005160 8/1/20130:12 8/1/201314:21 8/1/201314:49 2-Aug-13 8/1/20139:44 8/1/201318:49 8/2/20130:00PAMSMORD 0 16CUT PRT69 146X9 CI 0 0FIRSTCLASSFULLRATE A13D3212CO1P00001721 8/1/20130:12 8/1/201314:22 8/1/201314:49 2-Aug-13 8/1/20139:45 8/1/201322:41X 8/2/20130:00PAMSMORD 0 64CUT PRT69 626X9 CI 0 0FIRSTCLASSPRESORT Page 6
Understanding the data - Volume variations by month 05000000100000001500000020000000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 TotalEnvelopesbyMonth TotalEnvelopes Year-EndSpike Year-EndSpike QuarterlySpike QuarterlySpike QuarterlySpike Page 7
Understanding the data – Volume variations by Client Page 8
Understanding the data – Job Size distribution for a given month Total # of jobs: 26603 jobs Total Roll Print volume: 51,324,683 pages Long tail Page 9
Understanding the data – Service Level Agreements SLA in business days Page 10
Service process optimization toolkit Page 11
Simulation-based process improvement Analysis Phase 1 • Analysis identified that PND work comprised > 50% of daily volume • Modeling/simulation utilized to streamline PND workflow • Results validated through pilot and implemented as part of day-to-day production operations • Using optimized processes • PND work could be completed in 1-shift using 2 CF printers and 2 inserters (virtual cell) • PND work could be completed in 2-shifts using 1 CF printer and 1 inserter (virtual cell) • TAT reduced, production capacity freed up Page 12 0 2 4 6 8 10 12 14 16 18 Jan1 Jan3 Jan7 Jan9 Jan13 Jan15 Jan17 Jan21 Jan23 Jan27 Jan29 Jan31 Apr3 Apr5 Apr9 Apr11 Apr15 Apr17 Apr19 Apr23 Apr25 Apr29 Apr30 May2 May6 May8 May10 May14 May16 May20 May22 May24 May29 May31 Completion Time Completion Time Projected Completion Time via modeling/simulation
Short-Interval Scheduling (1) – Significant variation in productivity by Client Job and Inserter Account Machine Throughput JPX PB9 3672 JPX MARATON1 5055 JPX PB10 3614 JPX PB11 4004 JPX BH12 4054 JPX MPS1 6810 JPX MPS2 10920 PGE PARAGON4 2010 PGE PARAGON2 3360 PGE PARAGON3 1980 PGE PARAGON1 2760 AQL BH16 3754 AQL MARATON2 8111 AQL MARATON3 5400 AQL BH19 2508 AQL MARATON1 7980 AQL PARAGON4 2520 AQL PB10 3532 AQL PB11 3557 AQL PARAGON2 2820 AQL PARAGON3 1940 AQL BH12 3905 AQL PARAGON1 1800Page 13
Short-Interval Scheduling (2) – Determine equipment configurations that deliver balanced flows Account Name(3 Letter/4 Letter) # Print (Pages) # Insert (Envelopes) Printer Throughput (pages/hr) # Printers # Inserters Type of Inserter Print Processing Time(Minutes) Insert Processing Time (Minutes) Print Processing Time(Hours) Insert Processing Time (Hours) PND 3000 1500 25000 1.19 1 MPS2 6.1 6.1 0.1 0.1 1.13 1 MPS1 6.4 6.4 0.1 0.1 0.77 1 MARATON2 9.4 9.4 0.2 0.2 0.75 1 MARATON1 9.6 9.6 0.2 0.2 0.7 1 MARATON3 10.3 10.3 0.2 0.2 0.6 1 PB7 12 12 0.2 0.2 0.59 1 PB8 12.3 12.3 0.2 0.2 0.44 1 PB9 16.5 16.5 0.3 0.3 0.36 1 PB11 19.9 19.9 0.3 0.3 0.31 1 PB10 23.5 23.5 0.4 0.4 Note 1: Please ensure that 3 letter acccount name machine throughput data is entered in sheet1 and 4 letter acccount name machine throughput data is entered in sheet 2 Note 2: Please enter account name, no of pages to print, no of envelopes and printer throughput as inputs Note 3: Clear the data before each run Guidelines: Enter Job Description INPUT OUTPUT Run Clear Page 14
Short-Interval Scheduling (3) – Controlling WIP build-up as a result of production uncertainties by increasing or decreasing assigned upstream/downstream capacity Patent Filing: PRINT JOB PRODUCTION METHODS AND SYSTEMS IN A LARGE TRANSACTION PRINT ENVIRONMENT (Rai, S., Gross, E.) Page 15
Simulation-based process improvement Analysis Phase 2 • Quarter-end workflow (volume spike) modeled and optimized • Analysis revealed opportunity to perform all the work in less than 7 days allocated to print and insert 5.2M envelopes • Real-time scheduling piloted (April 1-5) across all shifts leveraging following structure • Flow manufacturing with dynamic upstream and downstream balancing by client and job size • WIP control (page and client) • Coordinated material delivery • Size based partitioning • Pilot resulted in reduction of operating costs by $62K/quarter Page 16 Metrics 2013 First Quarter- End 2014 First Quarter End Improve ment # of jobs completed 4610 7619 65% # of envelopes mailed out 4,486,149 5,224,466 16% Median TAT (h) 49h 33h 33% “As a result of your effort during April quarter end we were able to reduce temporary headcount salaries by 44,000. We also reduced insert maintenance and service by approximately 16,800” -Colie Nee (VP Ops) 466953 821840 1192425 680758 644613 663036 801851 1,058,625 1,332,574 1,027,261 859,288 946,718 0 200000 400000 600000 800000 1000000 1200000 1400000 1 2 3 4 5 6 7 Volume Day Current Process -- Q1 2013 Envelopes per Day LDP Process -- Q1 2014 Envelopes per Day Total 2013 over 7 days 5,271,476 Total 2014 over 5 days 5,224,466
Simulation-based process optimization Analysis Phase 3 • Absorb 5.3M/month envelopes of new client work into the optimized site with minimal addition of resources • Optimization of shop workflow using simulations during this period revealed that capacity existed to perform all bank work in the first shift freeing up second shift for new client work. • In May, it was demonstrated using via on-site pilots of flow-based manufacturing that Lynnfield can perform 500K+/day new work in addition to their current workload • In July, all of 5.3M of new work envelopes done after optimization • Ethnography study on inserters completed.. Goal was to understand how to identify setup reduction opportunities • Labor cost savings of $688,782/year achieved at the Texas site as a result of downsizing staff due to migration of 5.3M envelopes/month (or 516M impressions/year) to the optimized site 7/1222 or 0.6% of jobs projected to be late in a one- shift operation Page 17
Results of Process Improvement Page 18 40% improvement over January
Project Storyboard: Summary of results 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% %#10 %6x9 %9x12 0 5000000 10000000 15000000 20000000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 TotalEnvelopesbyMonth TotalEnvelopes Year-EndSpike Year-EndSpike QuarterlySpike QuarterlySpike QuarterlySpike February 26, 2014 Xerox Internal Use Only18 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000 10000000 Jan-1 Jan-9 Jan-17 Jan-25 Feb-2 Feb-10 Feb-18 Feb-26 Mar-6 Mar-14 Mar-22 Mar-30 Apr-7 Apr-15 Apr-23 May-1 May-9 May-17 May-25 Jun-2 Jun-10 Jun-18 Jun-26 Jul-4 Jul-12 Jul-20 Jul-28 Aug-5 Aug-13 Aug-21 Aug-29 Sep-6 Sep-14 Sep-22 Sep-30 Oct-8 Oct-16 Oct-24 Nov-1 Nov-9 Nov-17 Nov-25 Dec-3 Dec-11 Dec-19 Dec-27 TotalPages Month - Day Total Pages Per Day Arrivals - 2013 SLA in businessdays 466953 821840 1192425 680758 644613 663036 801851 1,058,625 1,332,574 1,027,261 859,288 946,718 0 200000 400000 600000 800000 1000000 1200000 1400000 1 2 3 4 5 6 7 Volume Day Current Process -- Q1 2013 Envelopes per Day LDP Process -- Q1 2014 Envelopes per Day Total 2013 over 7 days 5,271,476 Total 2014 over 5 days 5,224,466 Metrics 2013 First Quarter- End 2014 First Quarter End Improve ment # of jobs completed 4610 7619 65% # of envelopes mailed out 4,486,149 5,224,466 16% MedianTAT (h) 49h 33h 33% “As a result of your effort during April quarter end we were able to reduce temporary headcount salaries by 44,000. We also reduced insert maintenance and service by approximately 16,800” VP Operations Total annualized savings of $2Myear from optimization of services operations across 3 sites • $248,000K/year savings from improving quarter-end production at Site 1 • $688,782/year labor savings at Site 2 as a result of shifting targeted volume to Site 1 • $549K labor cost reduction at Site 1 • $500K gains from reduction in legacy equipment and not migrating work to Site 3 40% improvement overJanuary Site Profile • $16M/year revenue (excluding postage) • 800 Million images/year • 330 clients served • 109 FTE’s + temp • 6 CF lines • 9 High Speed Inserters + Legacy inserters Page 19 January July Total wages & benefits $820,453 $807,997 Total print & mail volume 70,966,780 102,684,551 Quarter-end optimization April, 2013 April, 2014 Total envelope volume 5.22M 5.27M Time to Produce (makespan) 7 days 5 days
Summary • A case-study of optimization of a large print and mail enterprise was presented • The methodology utilized data-driven analysis and simulation- based optimization to improve the productivity and profitability of the enterprise • An iterative approach whereby simulation-modeling was used to guide process and scheduling changes was presented • A dynamic short-interval scheduling approach within the high- variety and highly non-normal task size distributions utilizing flow-manufacturing was described • The results of implementation showed significant improvements in operational productivity Page 20

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Data-driven model-based restructuring of enterprise transaction operations

  • 1.
    Page 1 Productivity Improvementof a Large Complex Transaction Print Production and Mail Environment Utilizing Simulation-based modeling and Short-Interval Scheduling Sudhendu Rai, Eric Gross PARC – A Xerox Company Xerox Global Services Presented at the 2014 Winter Simulation Conference, Savannah, GA http://www.wintersim.org
  • 2.
    Structure of thepresentation • Problem description • Data collection • Understanding the data and gaining insights for simulation modeling • Process modeling and simulation toolkit demo • Iterating between simulations and on-the-floor pilots • Short-interval scheduling • Business results Page 2
  • 3.
    Three Geographically non-collocatedtransaction prin operations TX PA MA Problem Statement: Improve the productivity of the enterprise to improve profitability Page 3
  • 4.
    Focus on oneof the largest Transaction Print and Mail Operations Printer Room Machine Insert Room Hand Insert Area Site Profile • 800 Million images/year • 109 FTE’s • 6 CF lines, 7 6180 • 86K Sq. Ft • 9 High Speed Inserters + Legacy Inserters • Manual Hand Insertion Area Page 4
  • 5.
    Service Process OptimizationFramework and Methodology ❑ Assess ❑ Collect Data & VOC/VOB ❑ Gather Floor Maps, Equipment Lists and Operator Information ❑ Collect job data for Lynnfield and Dallas Applications ❑ Gather Assumptions ❑ Perform Analysis & Validate Findings ❑ Deliver Define/Measure Tollgate (Current State Baseline) ❑ Obtain Approval to Proceed ❑ Recommend ❑ Create Models and Simulations ❑ Optimize Cells and Job Production ❑ Perform Simulations and What If Scenarios-Includes Load Balancing ❑ Map Cells and Designs to Floor Plans ❑ Develop Transition Plan ❑ Perform Analyze Tollgate (Recommendation w/ Transition Plan) ❑ Obtain Approval to Proceed Assessment ❑ Virtual Pilot ❑ Design Pilot ❑ Perform Pilot ❑ Obtain Approval to Proceed ❑ Current Equipment (Move) : Identify Install Location Requirements ❑ Identify and Address Any Site Modification/Moves ❑ Obtain Formal Notice of Site Readiness ❑ Move Equipment ❑ Install Equipment ❑ Refresh Equipment (Install) ❑ Identify Install Location Requirements ❑ Identify and Address Any Site Modifications/Moves ❑ Obtain Formal Notice of Site Readiness ❑ Deliver Equipment ❑ Install Equipment ❑ Ramp Up ❑ Deploy Phased Approach Per Transition Plan Implementation ❑ Steady State ❑ Support Operational Processes ❑ Attain SLA’s ❑ Generate and Deliver Reporting ❑ Track Improvement Gains ❑ Identify/Propose On-Going Improvement Opportunities ❑ Implement and Support On-Going Optimization Solutions Realization Page 5
  • 6.
    Data Collection • Floorplan – Location, constraints, flow • Equipment data – Speed, setup, capabilities Inserter Model Qty on floor Sheet feed rate Machine Cycle speed Max Actual Envelope Inserting speed #10 6x9 9x12 Insert Bins 2D 3 of 9 File Base Ready Set Up time Pitney Bowes MPS26 2 50,000 26,000 22,000 Y Y N 7 Y Y Y 30 to 60 minutes Pitney Bowes FPS 2 36,000 12,000 8,000 Y Y Y 6 Y Y Y 10 to 15 minutes for #10 to 6x9/ 2+ hours for 9x12 Pitney Bowes FPS Booklet 1 NA 12,000 8,000 Y Y Y 6 N N N 10 to 15 minutes for #10 to 6x9/ 2+ hours for 9x12 Pitney Bowes MSE 1 36,000 14,000 10,000 Y Y Y 6 Y Y Y 10 to 15 minutes for #10 to 6x9/ 30 minutes for 9x12 Pitney Bowes Companion 2 5,400 5,400 3,200 Y Y N 2 Y Y Y less than 5 minutes Bell and Howell Combo 1 45,000 12,000 8,000 Y Y Y 6 Y Y Y 10 to 15 minutes Bell and Howell Marathon 3 45,000 20,000 16,000 Y Y N 5 Y Y Y less than 10 minutes Bell and Howell 4000's 2 36,000 20,000 4,000 Y Y N 6 N Y N 10 minutes Bell and Howell 500's 2 16,000 10,000 4,000 Y Y N 6 N Y N 10 minutes Printer Model Qty on floor Type Color Micr Duplex Speed in Images/Hour Xerox DP180 8 CutSheet BW yes 8,640 Xerox DP180HLC 1 CutSheet BW no 8,640 Xerox DP1050 3 Continuous Feed BW no 50,400 Xerox DP1300 3 Continuous Feed BW no 62,400 Xerox iGen3 4 CutSheet Color no 4,000 • Operator data – Name, skills, schedules,… • Workflow Execution data – Timestamp, qty, steps … Automated Insertion Dept - Last Name First Name Manager or Worklead Work Days Work Hours B H 5000Fla t B H 5000FoldB H 4000Fold P B C om panio n M arathon FP S12F FX 10F M P S M S E A S C E N D E RA dm ark P R IN T-D T180M X P R IN T-6 180H C L P R IN T-C ontFeed P R IN T-IG E N P R IN T R E LEA SE STA TIO N X ER O X C O LO R 800 S C H E D U LIN G C O N TR O L D E SK O O MFLE XS E R V ER D FW O R K S R IM S S U P ER V IS O R O R M A N A G E M EN T 1ST SHIFT M-F VU ANNIE THANH M-F 7AM-330PM X X X X SHEPHERD BRYAN M-F 7AM-330PM X X X X X X SAING ROBERT M-F 7AM-330PM X X X X X X X PANIAGUA JOSE M-F 7AM-330PM X X X X X NOP REASEY M-F 7AM-330PM X X X X X PEN MALYS M-F 7AM-330PM X X X X X X MAM SARANTA M-F 7AM-330PM X X X X X X X X X LOPEZ JOSE M-F 7AM-330PM X X X X LEBLANC ROBERT M-F 7AM-330PM X X X X HOANG HOA THI M-F 7AM-330PM X X X X X GARZON JUAN M-F 7AM-330PM X X X X X X CHHUNG SAOR M-F 7AM-330PM X X X X X X X X X BUSTOS MIGUEL M-F 7AM-330PM X X X X BARRIENTOS CARLOS M-F 7AM-330PM X X X X ARROYAVE DANIEL WL M-F 7AM-330PM X X X X X X X X X X X X X ALEMAN VICTOR M-F 7AM-330PM X X X X Tran Minh M-F 7AM-330PM X X X X X X Cashman Mike MGR 2ND SHIFT BOVE JOE M-F 330PM-12AM X X X X X CANG CHHOUNG M-F 330PM-12AM X X X X X HUOT PUNNARAY M-F 330PM-12AM X X X X X X X X X X X KOV KASEY WL M-F 330PM-12AM X X X X X X X X X LEE VANGSRENG M-F 330PM-12AM X X X X LY HONG M-F 330PM-12AM X X X X MEAN ROTHA M-F 330PM-12AM X X X X X X X X MOTH SAROTH M-F 330PM-12AM X X X NGUYEN THAO M-F 330PM-12AM X X X X X PHAL SOPEUN M-F 330PM-12AM X X X X X X X X X PICH DARARITH M-F 330PM-12AM X X X X X X X X X X X THACH SAUDINARONG M-F 330PM-12AM X X X X X X Roman Santiago MGR JOB_ID ARRIVAL_DATE POS_DATE MATHLG_DATE DUE_DATE RELEASED CONTROL_DESK_DATE COMPANION COMPLETED JOB_NAME COLOR_PAGES BW_PAGES PRINTER_TYPE PRINTER INSERTED_ENVELOPES ENVELOPE_ATTRIBUTE INSERT_DEPT INSERT_MACHINE INS_TOTAL OVERNIGHT METER_RATE INGD13212BCF1P001220 8/1/20130:00 8/1/201314:16 8/1/201314:48 2-Aug-13 8/1/201312:49 8/2/20130:17 8/2/20130:00PAOS54ID 0 728CUT PRT69 726#10 LTR Marathon3-BH 0 0FIRSTCLASSPRESORT INGD13212BCF2P001216 8/1/20130:00 8/1/201315:16 8/1/201315:30 2-Aug-13 8/1/201312:50 8/2/20130:16 8/2/20130:00PAOS54ID 0 330CUT PRT69 164#10 LTR Marathon3-BH 0 0FIRSTCLASSPRESORT INGD13212BCF3P001171 8/1/20130:00 8/1/201315:15 8/1/201315:33 2-Aug-13 8/1/201312:50 8/1/201322:18X 8/2/20130:00PAOS54ID 0 218CUT PRT69 72#10 CI 0 0FIRSTCLASSPRESORT INGD13212BCF4P001194 8/1/20130:00 8/1/201315:15 8/1/201315:33 2-Aug-13 8/1/201312:52 8/1/201317:17 8/2/20130:00PAOS54ID 0 122CUT PRT69 306X9 CI 0 0FIRSTCLASSPRESORT INGD13212BCF50001734 8/1/20130:00 8/1/201315:07 8/1/201315:33 2-Aug-13 8/1/201312:54 8/1/201317:16 8/2/20130:00PAOS54ID 0 128CUT PRT69 2 CI 0 0FIRSTCLASSFULLRATE INGD13212BCF5P001092 8/1/20130:00 8/1/201315:07 8/1/201315:33 2-Aug-13 8/1/201312:52 8/1/201317:17 8/2/20130:00PAOS54ID 0 112CUT PRT69 226X9 CI 0 0FIRSTCLASSPRESORT INGD13212BCF6P001117 8/1/20130:00 8/1/201315:06 8/1/201315:33 2-Aug-13 8/1/201312:54 8/1/201317:16 8/2/20130:00PAOS54ID 0 86CUT PRT69 146X9 CI 0 0FIRSTCLASSPRESORT INGD13212BCF7P001972 8/1/20130:00 8/1/201315:05 8/1/201315:33 2-Aug-13 8/1/201312:55 8/1/201317:16 8/2/20130:00PAOS54ID 0 51CUT PRT69 76X9 CI 0 0FIRSTCLASSPRESORT INGD13212BCF8P001956 8/1/20130:00 8/1/201314:14 8/1/201314:54 2-Aug-13 8/1/201312:45 8/1/201318:33 8/2/20130:00PAOS54ID 0 50CUT PRT69 66X9 CI 0 0FIRSTCLASSPRESORT INGD13212BCF9L001209 8/1/20130:00 8/1/201315:17 8/1/201315:33 2-Aug-13 8/1/201313:17 8/1/201317:26X 8/2/20130:00PAOS54ID 0 841CUT PRT69 439X12 CI 0 0FIRSTCLASSFULLRATE DRID13213TCF18001625 8/1/20130:01 8/1/201312:25 8/1/201313:11 2-Aug-13 8/1/201311:13 8/1/201322:39X 8/2/20130:00PAOS51HD 0 102CUT PRT21 916X9 CI 0 0FIRSTCLASSPRESORT DRID13213TCF9L001331 8/1/20130:01 8/1/201312:26 8/1/201313:11 2-Aug-13 8/1/201311:13 8/1/201317:46 8/2/20130:00PAOS51HD 0 21CUT PRT21 19X12 CI 0 0FIRSTCLASSPRESORT DRID13213TGC18001475 8/1/20130:02 8/1/201312:23 8/1/201313:11 2-Aug-13 8/1/201311:09 8/1/201318:26 8/2/20130:00PAOS51TD 0 5CUT PRT21 26X9 CI 0 0FIRSTCLASSPRESORT DRID13213DST18001496 8/1/20130:02 8/1/201314:03 8/1/201314:24 2-Aug-13 8/1/201311:34 8/1/201318:27 8/2/20130:00PAOS51DD 0 6CUT PRT69 46X9 CI 0 0FIRSTCLASSPRESORT DRID13213CNF18001644 8/1/20130:02 8/1/201312:21 8/1/201312:51 2-Aug-13 8/1/201311:14 8/1/201320:41 8/1/20130:00PAOS51GD 0 1191CUT PRT21 9896X9 LTR PB10-9x12 0 0FIRSTCLASSPRESORT DRID13213CNF9L001628 8/1/20130:02 8/1/201312:28 8/1/201313:11 2-Aug-13 8/1/201311:14 8/1/201317:47 8/2/20130:00PAOS51GD 0 53CUT PRT21 39X12 CI 0 0FIRSTCLASSFULLRATE DRID13213CNFF1001627 8/1/20130:02 8/1/201312:28 8/1/201313:11 2-Aug-13 8/1/201311:14 8/1/201318:26 8/2/20130:00PAOS51GD 0 12CUT PRT21 46X9 CI 0 0FOREIGN DRID13213CNFPD001635 8/1/20130:02 8/1/201312:27 8/1/201313:11 2-Aug-13 8/1/201311:14 8/1/201317:26X 8/2/20130:00PAOS51GD 0 169CUT PRT21 1609X12 CI 0 0FIRSTCLASSPRESORT INGD13213DLC1P001189 8/1/20130:03 8/1/20139:16 8/1/201310:22 2-Aug-13 8/1/20138:03 8/1/201315:34 8/2/20130:00PAOS54JD 0 4CUT PRT65 26X9 CI 0 0FIRSTCLASSPRESORT INGD13213DLC2P001130 8/1/20130:03 8/1/20139:16 8/1/201310:22 2-Aug-13 8/1/20138:05 8/1/201315:35 8/2/20130:00PAOS54JD 0 4CUT PRT65 16X9 CI 0 0FIRSTCLASSPRESORT DRID13213BCF18001609 8/1/20130:03 8/1/201314:03 8/1/201314:24 2-Aug-13 8/1/201311:35 8/1/201318:27 8/2/20130:00PAOS51ID 0 59CUT PRT69 246X9 CI 0 0FIRSTCLASSPRESORT INGD13213DCF2P001507 8/1/20130:05 8/1/20139:16 8/1/201310:22 2-Aug-13 8/1/20138:26 8/1/201315:33 8/2/20130:00PAOS54DD 0 4CUT PRT65 1#10 CI 0 0FIRSTCLASSPRESORT ACLD13213LTRMLTXX311 8/1/20130:06 8/1/20135:41 8/1/20137:33 1-Aug-13 8/1/20134:31 8/1/201313:23 8/1/20130:00PAOSPNGD 0 835CUT LPR4 797#10 LTR Marathon2-BH 0 0FIRSTCLASSPRESORT ABSD3212CO1P00004260 8/1/20130:11 8/1/201314:21 8/1/201314:49 2-Aug-13 8/1/20139:44 8/1/201318:50 8/2/20130:00PAMSMORD 0 8CUT PRT69 66X9 CI 0 0FIRSTCLASSPRESORT A04D3212CO1P00005569 8/1/20130:12 8/1/201314:21 8/1/201314:49 2-Aug-13 8/1/20139:44 8/1/201318:46 8/2/20130:00PAMSMORD 0 12CUT PRT69 106X9 CI 0 0FIRSTCLASSPRESORT A07D3212CO1P00005160 8/1/20130:12 8/1/201314:21 8/1/201314:49 2-Aug-13 8/1/20139:44 8/1/201318:49 8/2/20130:00PAMSMORD 0 16CUT PRT69 146X9 CI 0 0FIRSTCLASSFULLRATE A13D3212CO1P00001721 8/1/20130:12 8/1/201314:22 8/1/201314:49 2-Aug-13 8/1/20139:45 8/1/201322:41X 8/2/20130:00PAMSMORD 0 64CUT PRT69 626X9 CI 0 0FIRSTCLASSPRESORT Page 6
  • 7.
    Understanding the data- Volume variations by month 05000000100000001500000020000000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 TotalEnvelopesbyMonth TotalEnvelopes Year-EndSpike Year-EndSpike QuarterlySpike QuarterlySpike QuarterlySpike Page 7
  • 8.
    Understanding the data– Volume variations by Client Page 8
  • 9.
    Understanding the data– Job Size distribution for a given month Total # of jobs: 26603 jobs Total Roll Print volume: 51,324,683 pages Long tail Page 9
  • 10.
    Understanding the data– Service Level Agreements SLA in business days Page 10
  • 11.
  • 12.
    Simulation-based process improvement AnalysisPhase 1 • Analysis identified that PND work comprised > 50% of daily volume • Modeling/simulation utilized to streamline PND workflow • Results validated through pilot and implemented as part of day-to-day production operations • Using optimized processes • PND work could be completed in 1-shift using 2 CF printers and 2 inserters (virtual cell) • PND work could be completed in 2-shifts using 1 CF printer and 1 inserter (virtual cell) • TAT reduced, production capacity freed up Page 12 0 2 4 6 8 10 12 14 16 18 Jan1 Jan3 Jan7 Jan9 Jan13 Jan15 Jan17 Jan21 Jan23 Jan27 Jan29 Jan31 Apr3 Apr5 Apr9 Apr11 Apr15 Apr17 Apr19 Apr23 Apr25 Apr29 Apr30 May2 May6 May8 May10 May14 May16 May20 May22 May24 May29 May31 Completion Time Completion Time Projected Completion Time via modeling/simulation
  • 13.
    Short-Interval Scheduling (1)– Significant variation in productivity by Client Job and Inserter Account Machine Throughput JPX PB9 3672 JPX MARATON1 5055 JPX PB10 3614 JPX PB11 4004 JPX BH12 4054 JPX MPS1 6810 JPX MPS2 10920 PGE PARAGON4 2010 PGE PARAGON2 3360 PGE PARAGON3 1980 PGE PARAGON1 2760 AQL BH16 3754 AQL MARATON2 8111 AQL MARATON3 5400 AQL BH19 2508 AQL MARATON1 7980 AQL PARAGON4 2520 AQL PB10 3532 AQL PB11 3557 AQL PARAGON2 2820 AQL PARAGON3 1940 AQL BH12 3905 AQL PARAGON1 1800Page 13
  • 14.
    Short-Interval Scheduling (2)– Determine equipment configurations that deliver balanced flows Account Name(3 Letter/4 Letter) # Print (Pages) # Insert (Envelopes) Printer Throughput (pages/hr) # Printers # Inserters Type of Inserter Print Processing Time(Minutes) Insert Processing Time (Minutes) Print Processing Time(Hours) Insert Processing Time (Hours) PND 3000 1500 25000 1.19 1 MPS2 6.1 6.1 0.1 0.1 1.13 1 MPS1 6.4 6.4 0.1 0.1 0.77 1 MARATON2 9.4 9.4 0.2 0.2 0.75 1 MARATON1 9.6 9.6 0.2 0.2 0.7 1 MARATON3 10.3 10.3 0.2 0.2 0.6 1 PB7 12 12 0.2 0.2 0.59 1 PB8 12.3 12.3 0.2 0.2 0.44 1 PB9 16.5 16.5 0.3 0.3 0.36 1 PB11 19.9 19.9 0.3 0.3 0.31 1 PB10 23.5 23.5 0.4 0.4 Note 1: Please ensure that 3 letter acccount name machine throughput data is entered in sheet1 and 4 letter acccount name machine throughput data is entered in sheet 2 Note 2: Please enter account name, no of pages to print, no of envelopes and printer throughput as inputs Note 3: Clear the data before each run Guidelines: Enter Job Description INPUT OUTPUT Run Clear Page 14
  • 15.
    Short-Interval Scheduling (3)– Controlling WIP build-up as a result of production uncertainties by increasing or decreasing assigned upstream/downstream capacity Patent Filing: PRINT JOB PRODUCTION METHODS AND SYSTEMS IN A LARGE TRANSACTION PRINT ENVIRONMENT (Rai, S., Gross, E.) Page 15
  • 16.
    Simulation-based process improvement AnalysisPhase 2 • Quarter-end workflow (volume spike) modeled and optimized • Analysis revealed opportunity to perform all the work in less than 7 days allocated to print and insert 5.2M envelopes • Real-time scheduling piloted (April 1-5) across all shifts leveraging following structure • Flow manufacturing with dynamic upstream and downstream balancing by client and job size • WIP control (page and client) • Coordinated material delivery • Size based partitioning • Pilot resulted in reduction of operating costs by $62K/quarter Page 16 Metrics 2013 First Quarter- End 2014 First Quarter End Improve ment # of jobs completed 4610 7619 65% # of envelopes mailed out 4,486,149 5,224,466 16% Median TAT (h) 49h 33h 33% “As a result of your effort during April quarter end we were able to reduce temporary headcount salaries by 44,000. We also reduced insert maintenance and service by approximately 16,800” -Colie Nee (VP Ops) 466953 821840 1192425 680758 644613 663036 801851 1,058,625 1,332,574 1,027,261 859,288 946,718 0 200000 400000 600000 800000 1000000 1200000 1400000 1 2 3 4 5 6 7 Volume Day Current Process -- Q1 2013 Envelopes per Day LDP Process -- Q1 2014 Envelopes per Day Total 2013 over 7 days 5,271,476 Total 2014 over 5 days 5,224,466
  • 17.
    Simulation-based process optimization AnalysisPhase 3 • Absorb 5.3M/month envelopes of new client work into the optimized site with minimal addition of resources • Optimization of shop workflow using simulations during this period revealed that capacity existed to perform all bank work in the first shift freeing up second shift for new client work. • In May, it was demonstrated using via on-site pilots of flow-based manufacturing that Lynnfield can perform 500K+/day new work in addition to their current workload • In July, all of 5.3M of new work envelopes done after optimization • Ethnography study on inserters completed.. Goal was to understand how to identify setup reduction opportunities • Labor cost savings of $688,782/year achieved at the Texas site as a result of downsizing staff due to migration of 5.3M envelopes/month (or 516M impressions/year) to the optimized site 7/1222 or 0.6% of jobs projected to be late in a one- shift operation Page 17
  • 18.
    Results of ProcessImprovement Page 18 40% improvement over January
  • 19.
    Project Storyboard: Summaryof results 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% %#10 %6x9 %9x12 0 5000000 10000000 15000000 20000000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 TotalEnvelopesbyMonth TotalEnvelopes Year-EndSpike Year-EndSpike QuarterlySpike QuarterlySpike QuarterlySpike February 26, 2014 Xerox Internal Use Only18 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 9000000 10000000 Jan-1 Jan-9 Jan-17 Jan-25 Feb-2 Feb-10 Feb-18 Feb-26 Mar-6 Mar-14 Mar-22 Mar-30 Apr-7 Apr-15 Apr-23 May-1 May-9 May-17 May-25 Jun-2 Jun-10 Jun-18 Jun-26 Jul-4 Jul-12 Jul-20 Jul-28 Aug-5 Aug-13 Aug-21 Aug-29 Sep-6 Sep-14 Sep-22 Sep-30 Oct-8 Oct-16 Oct-24 Nov-1 Nov-9 Nov-17 Nov-25 Dec-3 Dec-11 Dec-19 Dec-27 TotalPages Month - Day Total Pages Per Day Arrivals - 2013 SLA in businessdays 466953 821840 1192425 680758 644613 663036 801851 1,058,625 1,332,574 1,027,261 859,288 946,718 0 200000 400000 600000 800000 1000000 1200000 1400000 1 2 3 4 5 6 7 Volume Day Current Process -- Q1 2013 Envelopes per Day LDP Process -- Q1 2014 Envelopes per Day Total 2013 over 7 days 5,271,476 Total 2014 over 5 days 5,224,466 Metrics 2013 First Quarter- End 2014 First Quarter End Improve ment # of jobs completed 4610 7619 65% # of envelopes mailed out 4,486,149 5,224,466 16% MedianTAT (h) 49h 33h 33% “As a result of your effort during April quarter end we were able to reduce temporary headcount salaries by 44,000. We also reduced insert maintenance and service by approximately 16,800” VP Operations Total annualized savings of $2Myear from optimization of services operations across 3 sites • $248,000K/year savings from improving quarter-end production at Site 1 • $688,782/year labor savings at Site 2 as a result of shifting targeted volume to Site 1 • $549K labor cost reduction at Site 1 • $500K gains from reduction in legacy equipment and not migrating work to Site 3 40% improvement overJanuary Site Profile • $16M/year revenue (excluding postage) • 800 Million images/year • 330 clients served • 109 FTE’s + temp • 6 CF lines • 9 High Speed Inserters + Legacy inserters Page 19 January July Total wages & benefits $820,453 $807,997 Total print & mail volume 70,966,780 102,684,551 Quarter-end optimization April, 2013 April, 2014 Total envelope volume 5.22M 5.27M Time to Produce (makespan) 7 days 5 days
  • 20.
    Summary • A case-studyof optimization of a large print and mail enterprise was presented • The methodology utilized data-driven analysis and simulation- based optimization to improve the productivity and profitability of the enterprise • An iterative approach whereby simulation-modeling was used to guide process and scheduling changes was presented • A dynamic short-interval scheduling approach within the high- variety and highly non-normal task size distributions utilizing flow-manufacturing was described • The results of implementation showed significant improvements in operational productivity Page 20