CARAVEL SOLUTIONS CASE STUDY – MAINTENANCE RESOURCE OPTIMIZATION

CARAVEL SOLUTIONS CASE STUDY – MAINTENANCE RESOURCE OPTIMIZATION

SITUATION

Caravel Solutions participated in the due diligence for the acquisition of a chemical manufacturer. After the sale was completed, Caravel was asked to lead the effort to integrate the acquired manufacturing facilities. The first step of the integration was to conduct a deep dive of plant costs and a benchmarking comparison for each plant. Analysis of maintenance costs revealed that use of contractors was a very high cost item.

ACTIONS

Caravel consultants assisted the Maintenance Manager at one plant to conduct an analysis of plant maintenance and contractor resource utilization. The analysis revealed that contractor costs were 33% of the maintenance budget and that one contractor was 33% of total contractor spending. A Caravel consultant conducted an independent assessment of the focus and effectiveness for each of the contractors utilized on site and the plant maintenance workforce.

The results of the assessment drove the following actions:

  • Assigned responsibility for contractor oversight to specific plant personnel
  • Reduced the number of contractors used
  • Shifted appropriate work to plant maintenance personnel
  • Reduced the number of shift maintenance personnel

RESULTS OF MAINTENANCE RESOURCE OPTIMIZATION BY CARAVEL SOLUTIONS

The maintenance resource optimization is on track to reduce annual maintenance costs by $750,000.

If you think that your facility can benefit from maintenance optimization, contact us at [email protected]. We can work with your team to assess your current state and develop/implement initiatives for improved performance.

Caravel Solutions on LinkedIn Maintenance Resource Optimization

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© Caravel Solutions Blog, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Caravel Solutions with appropriate and specific direction to the original content.

CARAVEL SOLUTIONS CASE STUDY – PROCESS MODELING

Manufacturing Process Modeling - Caravel Solutions

CASE STUDY 1 – PROCESS MODELING FOR PRODUCT YIELD OPTIMIZATION

SITUATION

Caravel Solutions was asked to assist a chemical manufacturer improve finished product yield. The manufacturer had five manufacturing plants located in the US and Europe, with each plant having different processing capabilities.

ACTIONS

Caravel consultants worked with the technical staff at each of the plants to document the overall process flows and capacities of all the manufacturing facilities. Process models were created by the Caravel consultants to identify opportunities for improvement. The analysis and process models revealed a waste stream that contained a significant amount of salable product. Technical and engineering personnel designed and executed a capital project to capture the salable product.

RESULTS

Implementation of the capital project resulted in a 1.5% yield increase of salable product. The yield increase resulted in a $4MM annual profit improvement for a $400K capital investment.

CASE STUDY 2 – PROCESS MODELING FOR LOGISTICS OPTIMIZATION

Tissue Towels and Napkins Manufacturing Process ModelingSITUATION

A European manufacturer of tissue, towels and napkins desired to submit a bid to supply a major European retailer for a multi-year contract. Caravel Solutions was asked to assist with the market analysis to ensure that the bid would result in profitable business because the cost to ship high cube, low weight products could become prohibitively high.

ACTIONS

Caravel consultants developed a model to study all European tissue, towels and napkin manufacturing locations, including the products produced and where the products were being shipped. The results were compared to the requirements of the retailer to determine if the manufacturer could satisfy the needs better than their competitors.

RESULTS

The paper manufacturer submitted a competitive bid for the business, but was not awarded the business. Based on further analysis from the model, the manufacturer decided to exit the business and sell their assets because long term profitability could not be maintained.

If you think that your facility can benefit from targeted process modeling, contact us at [email protected]. We can work with your team to assess your current state and develop/implement initiatives for improved performance.

Caravel Solutions Manufacturing Process Modeling

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© Caravel Solutions Blog, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Caravel Solutions with appropriate and specific direction to the original content.

CARAVEL SOLUTIONS CASE STUDY – CONNECTING THE ORGANIZATION TO STRATEGIC AND TACTICAL PLANS

Strategic Tactical Plans image

SITUATION

Following their acquisition, connecting the organization to strategic and tactical plans was the first step taken by a large multinational corporation. They asked Caravel Solutions to assist with the integration of five fertilizer manufacturing plants. The previous owner of the plants had not included the plants directly into the strategic planning of the business, so the first step was to develop strategic plans for each plant that were aligned with and supportive of the business strategic plan. The plants were operating in the third quartile for plants in the industry with improvement opportunities in all functional areas.

ACTIONS

Caravel consultants partnered with members of the business strategic planning team and the operations leadership. They developed a strategic planning process to involve people at all levels of the plant organization. Caravel consultants also worked with the business development group to prepare information for each plant based on past performance and current industry benchmarks.

The process that was executed at the plant sites included

  • Identifying the key functional areas for focus – safety, environmental, reliable operation, shipping/logistics and organization
  • Utilizing teams comprised of members from each of the functional areas, including members from all levels of the organization, to complete the plant site work
  • Completing gap analyses based on the company’s culture elements
  • Determining the initiatives and capital projects needed to close the gaps to meet the stated goals
  • Building action plans, which were merged into a master plan
  • Developing tactical plans for the first year
  • Identifying responsibilities and expectations for every role in the plant to connect each employee to his/her part of the year 1 action plan to achieve the goals
  • Communicating the plan and holding regular updates with all plant employees
  • Conducting quarterly progress reviews were held with senior leadership involving people from all areas and levels in the organization

RESULTS OF CONNECTING THE ORGANIZATION TO STRATEGIC AND TACTICAL PLANS

  1. Performance for one plant improved from the third quartile to a high second quartile in all areas. These results were realized due to each employee’s direct connection to their responsibilities for improvement. The remaining plants are trending toward second quartile performance.
  2. A sustainable process was developed for strategic and tactical planning at the plant level, which included a check and adjust process to remain focused on market and customer needs.
  3. Employees became connected to the company culture through use of the culture elements and the tools to support them.

If you think that your facility can benefit from a strategic or tactical planning process, contact us at [email protected]. We can work with your team to assess your current state and develop/implement initiatives for improved performance.

Caravel Solutions Case Study - Pumping Systems - on LinkedIn

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© Caravel Solutions Blog, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Caravel Solutions with appropriate and specific direction to the original content.

OPTIMIZATION OF PUMPING SYSTEMS – CASE STUDY FROM CARAVEL SOLUTIONS

Optimization of Pumping Systems

SITUATION LEADING TO OPTIMIZATION OF PUMPING SYSTEMS

Following Caravel Solutions’ participation in the due diligence for an acquisition by a chemical manufacturer, they conducted an assessment of the performance of the new operation. Caravel Solutions was asked to work with the new operations organization to develop and execute plans to improve asset performance.

ACTIONS

Caravel Solutions teamed with a cross functional group from the acquired company to conduct a deep dive of maintenance and reliability performance. This revealed a significant opportunity to improve the reliability of critical process pumps. The maintenance manager at the largest plant requested to be the first to implement improvements.

Under the sponsorship of the maintenance manager, the plant reliability team conducted a deep dive analysis of the systems requiring critical pumps to determine issues and priorities. The analysis included

  • Failure and repair history
  • Sizing for service
  • Effectiveness of specified pump seals
  • Effectiveness of the complete pumping system
  • Options for improvement

The action plan developed by the team included

  • Removal of unused in-line spares
  • Replacement of multiple, undersized pumps with one correctly sized pump in several pumping systems
  • Less effective mechanical seals were replaced with seals more suited to the service, which increased mean time between failures (MTBF)
  • Standardization on one mechanical seal vendor with plan developed to eliminate inventory from other vendors

RESULTS

Removal of the unneeded pumps is on track to reduce maintenance costs by $600,000 over a 5-year period. Implementation of the mechanical seal actions is on track to increase critical pump life from an average of 3 to 5 years.

If you think that your facility can benefit from pump system optimization, contact us at [email protected]. We can work with your team to assess your current state and develop/ implement initiatives for improved performance.

Caravel Solutions Case Study - Pumping Systems - on LinkedIn
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© Caravel Solutions Blog, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Caravel Solutions with appropriate and specific direction to the original content.

INITIATING A RELIABILITY PROGRAM – CASE STUDY FROM CARAVEL SOLUTIONS

Initiating a Reliability Program

SITUATION

A global plastics manufacturer approached the Caravel Solutions team and asked them to provide guidance for initiating a reliability program. One of their European facilities was struggling with unplanned equipment downtime.

Caravel Solutions worked with the manufacturer to resolve this costly downtime. Through client and team meetings, they identified several key issues: (1) the facility did not have a computerized maintenance management system (CMMS) which meant all work orders were processed manually; (2) the manufacturer did not have a system in place to gather information and track evidence on equipment failures; and (3) there was no formal process for conducting root cause analysis (RCA).

ACTIONS

The first step Caravel initiated in the project plan for the client was to conduct an assessment of current performance in the maintenance and reliability arena. This assessment revealed that (1) 75% of the maintenance effort was spent reacting to unexpected equipment issues, even though the planned and scheduled preventive maintenance activities were being performed; (2) the mean time between failures (MTBF) was only 9 hours with a mean time to repair (MTTR) of 2 hours and 97% same day restoration, and (3) the high focus on reactive work had resulted in a backlog of 200 jobs that was steadily increasing.

The second step of the Caravel project plan was to conduct a deep analysis of the available maintenance and reliability data. The gaps identified provided justification to hire a staff reliability engineer. Once the position was filled, Caravel worked with the reliability engineer to design a reliability program that included the following elements:

  • RCA triggers
  • Maintenance and reliability data analysis
  • Delay accounting system design
  • RCA levels 1, 2 and 3
  • Equipment register and hierarchy design attributes to facilitate data extraction
  • Moubray’s PF Curve to demonstrate the case for change
  • Failure management strategies such as formal visual inspections and expanded lubrication focus
  • Spare parts selection and standardization
  • Operator performed maintenance

RESULTS OF RELIABILITY PROGRAM

After one year, because of the reliability program that was developed, most of the big downtime events were eliminated. Progress was being made on the repair efficiency and effectiveness for small downtime events. For small downtime events, MTTR improved from an average of 4 hours to an average of 15 minutes. Equipment availability increased from 40% to 75% and actual uptime increased from 33% to 85%.

If you think that your facility can benefit from a renewed focus on maintenance and reliability, contact us at [email protected]. We can work with your team to assess your current state and develop/implement initiatives for improved performance.

Caravel Solutions on LinkedIn - Case Study Initiating a Reliability Program

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© Caravel Solutions Blog, 2017. Unauthorized use and/or duplication of this material without express and written permission from this site’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Caravel Solutions with appropriate and specific direction to the original content.

ARE YOUR WORK PROCESSES GIVING YOU THE RESULTS YOU NEED?

Work processes assessed by Caravel Solutions provide structure to the organization by providing task descriptions, responsibilities and expectations for key roles, describing critical communication and information handoffs and providing metrics to track performance of work efforts.

Work processes provide structure to the organization by providing task descriptions, responsibilities and expectations for key roles, describing critical communication and information handoffs and providing metrics to track performance of work efforts. When used properly, they create value by ensuring that members of the organization understand their roles and tasks, have the tools and enablers to execute them efficiently and effectively and do not duplicate efforts.

But what if activities in the field are not aligning with the work process steps? Then it is likely somewhere in the organization work efforts are being either missed or duplicated and communication/information is being missed. The question is, what problems are being caused that will adversely impact the goals and metrics for the work process?

Typical issues for the maintenance work processes include:

  • Increase in emergency work
  • Fewer quality work requests generated
  • Reduction in the quality of work order plans
  • Decrease in equipment ready for maintenance work
  • Reduced wrench time
  • Increase in repeat work

Many things can happen to derail effectiveness of the work processes. Caravel Solutions can help you and your team conduct a quick assessment to determine the health of your work processes. We can assist with the identification of two or three key gaps that will bring work process performance back to a level that helps restore the overall economic effectiveness of your facility and achieve the desired results. And we will coach and mentor your team to ensure they understand how to sustain the needed performance.

If you believe your team needs assistance tuning up your work processes, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

Caravel Solutions on LinkedIn

By | 2017-06-21T23:14:37+00:00 June 21st, 2017|Categories: Advanced Maintenance, Caravel Solutions In The News, Work Processes|Comments Off on ARE YOUR WORK PROCESSES GIVING YOU THE RESULTS YOU NEED?

WORK PROCESS ROLE CERTIFICATION THROUGH THE OPEX ACADEMY

OpEx Academy Work Process Certification

Effective work processes and execution of key work process roles play a vital role in sustaining a high level of equipment uptime for the profitability of manufacturing plants. As discussed in our recent series of blogs on Asset Utilization, one of the foundational elements for maintaining equipment uptime is work processes to standardize maintenance and reliability efforts. We also discussed the importance of the execution of the roles and elements within the work processes.

If work process and role training were not robust during the transition of responsibilities from the original operators, gatekeepers, planners, schedulers and kitters, then it is likely that some or most of the cadence of the maintenance work process has been lost. One effective way to bridge this transitional gap is to certify the current incumbents of these roles.

Work Process Role Certification Through the OpEx Academy

Caravel Solutions offers certification for these key maintenance work process roles. Our certification program consists of classroom, in-field training and coaching to educate your employees on the responsibilities, expectations and enablers for the roles and the value created for the organization. We also cover key daily tasks, tools and procedures, and metrics for sustainable performance.

Most courses tend to provide certification only based on competency attained in classroom education. The certification program provided by Caravel Solutions applies real world scenarios in real world environments. Certification is completed only after students demonstrate knowledge of key concepts in actual performance of the role to ensure true understanding and application of the learnings.

If your company can benefit from certification in these areas, contact us at [email protected]. We can work with you to provide skilled and knowledgeable trainers/coaches, who have many years of experience in the work processes and in the manufacturing roles of concern to you, who can quickly bring your employees up to high performance.

Caravel Solutions on LinkedIn

By | 2017-06-21T23:38:31+00:00 June 20th, 2017|Categories: Asset Utilization, Caravel Solutions In The News, MPO - Manufacturing Performance Optimization, OPEX Academy, Work Process Design|Comments Off on WORK PROCESS ROLE CERTIFICATION THROUGH THE OPEX ACADEMY

ASSET UTILIZATION – IN SUMMARY

Asset Utilization Approach Caravel Solutions

Asset Utilization Approach Summarized

What do rules of thumb metrics, maximum achievable capability (MAC), run time analytics – scheduled and unscheduled downtime, manufacturing opportunity index (MOI) and debottlenecking have in common? Two things: (1) Each topic is about asset utilization, and (2) each has been recently covered in a series of articles provided by Caravel Solutions to help manufacturing plants understand how to find the best plan of action to ensure the greatest cost performance (ROI).

Asset Utilization Rules of Thumb Metrics

#1 – Commodity operations are not likely to be profitable much below 80% asset utilization

#2 – Specialty operations are not likely to be profitable much below 70% asset utilization… read more

Maximum Achievable Capability (MAC)

A review of historical operating data should be available to calculate the current MAC for the plant. By evaluating factors that affect MAC, opportunities to improve performance will be revealed. Examples include:

How many times MAC operation has been achieved… read more

Run Time Analytics – Scheduled and Unscheduled Downtime

The first step is a review of the historical data on downtime. For scheduled downtime, the following factors should be evaluated:

  • Frequency of scheduled downtime
  • Key drivers for the frequency
  • Reasons for the scheduled work – time based, condition based, EHS risk management… read more

Manufacturing Opportunity Index (MOI)

The expansion of traditional asset utilization calculations provides a more robust picture of how well the facility is running and how much additional production may be obtained from existing assets. Caravel Solutions’ unique analysis, called Manufacturing Opportunity Index (MOI) … read more

What Is Debottlenecking?

Debottlenecking is the process of identifying and removing obstacles that prevent a process from becoming more efficient. You can also think of it as the component… read more

If you believe your team needs assistance building or benefiting more from an asset utilization process, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

By | 2017-06-21T23:35:17+00:00 June 15th, 2017|Categories: Asset Utilization, Debottlenecking, Manufacturing Opportunity Index (MOI), MPO - Manufacturing Performance Optimization, Run time|Comments Off on ASSET UTILIZATION – IN SUMMARY

PART 5 – DEBOTTLENECKING – IT’S TIME FOR ACTION

Bottlenecking - Asset Utilization

Debottlenecking – did you know that the inspiration for the term debottlenecking came from the original glass Coca-Cola bottle, which had a very narrow neck that constrained the flow of the cola when poured? In the last Caravel asset utilization approach blog, Part 4, we focused Caravel Solutions’ unique approach to asset utilization, called Manufacturing Opportunity Index (MOI), which includes non-traditional factors that also affect asset utilization. So now it’s time to talk about using information from the MOI analysis to take action.

What Is Debottlenecking?

Debottlenecking is the process of identifying and removing obstacles that prevent a process from becoming more efficient. You can also think of it as the component of a process that is slower than everything that depends on it.

An important benefit of the Caravel MOI approach is the structured identification and resolution of constraints that impact profitability. In addition to directly addressing such categories as run time, run rate, yield and quality, opportunities are also identified to increase production when it increases profitability. The elimination of these physical constraints is debottlenecking.

To remain profitable in today’s highly competitive business world, continuous improvement is a necessity. The Caravel MOI process of continuously evaluating asset utilization provides a flexible yet structured system to achieve sustained continuous improvement. The Caravel approach focuses efforts on the biggest improvements first. By finding the rate-limiting steps in a facility and correcting them, debottlenecking allows manufacturing facilities to significantly extend the useful life by making the site more flexible and efficient.

If you believe your team needs assistance building or benefiting more from an asset utilization process, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

Written by Allen Lasater

Caravel Solutions on LinkedIn

Source:  Approaches to Debottlenecking and Process Optimization by Rick Johnston, posted Tuesday, May 1, 2012 at  http://bit.ly/bioprocess

 

By | 2017-06-14T14:46:14+00:00 June 14th, 2017|Categories: Asset Utilization, Caravel Solutions In The News, Debottlenecking, Manufacturing Opportunity Index (MOI), Optimize Yield and Quality|Comments Off on PART 5 – DEBOTTLENECKING – IT’S TIME FOR ACTION

PART 4 – CARAVEL SOLUTIONS UNIQUE ASSET UTILIZATION APPROACH – UPDATE

Manufacturing Opportunity Index (MOI)[Update published June 13, 2017] This article talks about a unique analysis called Manufacturing Opportunity Index (MOI). In the last Caravel asset utilization approach blog, Part 3, we focused on the run time component of asset availability. Based on our experience in numerous different industries, there are other factors that can also affect asset utilization.

The expansion of traditional asset utilization calculations provides a more robust picture of how well the facility is running and how much additional production may be obtained from existing assets. Caravel Solutions’ unique analysis, called Manufacturing Opportunity Index (MOI), utilizes these factors and places them on a similar profitability improvement scale as asset utilization.

Manufacturing Opportunity Index (MOI) Categories:

  • Compliance events – resulting from running at too high or too low operating rates, resulting from downtime events, permit limitations or changes, long term business impact
  • Quality – includes shutdown and startup off quality, meeting quality specifications through production blending, exceeding quality specifications, rerunning off-specification products or intermediates
  • Yield – changes to feedstock, changes to product mix, operation of intermediate equipment, recycle, waste
  • Fixed costs – impact of reliability on fixed costs over time, impact of downtime and repairs, etc.
  • Variable margins – variations due to yield, energy, raw materials availability and quality, high or low margins at the time of downtime events, seasonality
  • Energy effectiveness – reliability of sources, energy used per unit of production

SEE ALSO – Caravel Solutions Blog – Manufacturing Performance Optimization

The MOI process typically identifies numerous opportunities to increase profitability associated with run rate, run time and/or the additional MOI factors such as yield or quality. Consideration of these additional categories in conjunction with asset utilization gives a more complete picture of the improvement opportunities for a facility or system.

All opportunities should be captured and prioritized based on their impact to achieving strategic and tactical facility and business goals. Knowing that there are other improvement initiatives likely underway, it is critical not to focus on more than 2 or 3 key opportunities for asset utilization to increase profitability of the business and ensure successful implementation.

For each key opportunity identified, the next step is to determine, in as much detail as is warranted, WHY this opportunity exists and to explore ways to allow the organization to institute changes to capture the specific opportunity. As the organization moves forward in capturing the key opportunities, other opportunities will be identified and move into key focus themselves.

To reiterate a CRITICAL POINT – focus on too many opportunities dilutes the attention given to each and typically leads to reduced speed of opportunity capture or worse, failure to effectively execute.

If you believe your team needs assistance building or benefiting more from an asset utilization process, contact us at [email protected]. We can work with you to identify options and develop an effective path forward as well as providing support during implementation.

Written by Allen Lasater

Caravel Solutions on LinkedIn

By | 2017-06-14T14:47:54+00:00 June 12th, 2017|Categories: Asset Utilization, Caravel Solutions In The News, Manufacturing Opportunity Index (MOI)|Comments Off on PART 4 – CARAVEL SOLUTIONS UNIQUE ASSET UTILIZATION APPROACH – UPDATE