Ramp up project
- 1. SYSTEM IMPLEMENTATION & RAMP-UP PROJECT Master in Logistics and Supply Chain Management Claudia Gomez Kamila Hurkova Merve Nur Tas Tommi Veromaa Ramp-up After Redesign 15/01/2018 1Project: Ramp-up after redesign | TH Wildau
- 2. I. CURRENT STATE OF COMPANY 1. Objectives 2. Original Layout vs New Layout 3. Ramp-up Project Overview 4. Changes required in Manufacturing Plant II. RAMP-UP STRATEGIES 1. Evaluation of Ramp-up Strategies 2. Risk Analysis and Risk Mitigation 3. Selected Ramp-up Strategy & Implementation III. FINAL CONCLUSIONS & RECOMMENDATIONS TABLE OF CONTENT 15/01/2018 Project: Ramp-up after redesign | TH Wildau 2
- 3. I. CURRENT STATE OF THE COMPANY 15/01/2018 Project: Ramp-up after redesign | TH Wildau 3 A small family-run company manufacturers tailored aluminum balconies. About 2 years ago, it reached its facility limits and the company decided to buy a second site. Currently, new factory layout of the original site was requested to optimize the internal processes and material flows. This layout was designed by external partners. The objective of this ramp-up project is to change from the old to the new layout. The implementation requires a clear strategy to use resources efficiently while compromising the operations as least as possible.
- 4. 3E3F3G 3E3G Hall 1Hall 2Hall 3 1FORIGINALLAYOUT 1A 1I 1H 1G 1E 1D 1C 1B 2S 2R 2Q 2P 2I 2j 2L 2N 2O 2M 2K 2H 2G 2F 2E 2D 2C 2B 2A 3D OFFICES 3I 3J 3K 3L 3C 3A 3M 3N3O 3B 3H 15/01/2018 Project: Ramp-up after redesign | TH Wildau 4
- 5. 3E 3F3G 3E 1F NEWLAYOUT 1H 1G 1E 1D 2S 2R 2Q 2P 2I 2J 2L 2N 2O 2M 2K 2H 2G 2F 2E 2D 2C 2B 2A 3D OFFICES 3I 3J 3K 3L 3C 3A 3M 3N 3O Incoming area CNC 3B 3H Final Assembly Storage 1A, 1B, 1C, 1I are move to new building HALL 4 and 5 15/01/2018 Project: Ramp-up after redesign | TH Wildau 5 Storage CuttingProcessing Welding Roof Welding balcony Stamping Bending Grinding Assembly Handrail 3G Hall 1Hall 2Hall 3 No changes Heavy (6hrs) Medium/Small (1 hrs)
- 6. RAMP-UPPROJECTOVERVIEW 15/01/2018 Project: Ramp-up after redesign | TH Wildau 6 RAMP-UPPROJECT CHANGES REQUIRED Construction Changes Indoor Walls (2) Outdoor Gate (1) Relocation of machines and areas (31) RESOURCES REQUIRED Internal** Employees (20) Forklift (3) Project Manager (1) External Construction Contractor (1) RAMP-UP PROJECT OVERVIEW ** Internal resources required are available in the company
- 7. 48 22,5 70,572 45 117 96 67,5 163,5 0 20 40 60 80 100 120 140 160 180 Heavy Medium/Small Total Hours Employee working hours Employee hrs min. Employee hrs avg. Employee hrs max. RELOCATIONOFAREAS 15/01/2018 Project: Ramp-up after redesign | TH Wildau 7 Machines • 2 employees required to move each area • Avg. Time to move an area: 6h • Nr. of areas: 6 Tools/Racks/Areas • 1-2 employees required to move an area • Avg. Time to move an area: 1h • Nr. of areas: 25 Total estimated time for relocation of all areas: 117 working hours
- 8. Contractor tendering (2 days) Contractor Hiring (1 day) Planning and Scheduling (180 days) Start of Construction planning Construction Project (3-5 Days) CONSTRUCTIONWORKS 15/01/2018 Project: Ramp-up after redesign | TH Wildau 8 PHASES FOR THE CONSTRUCTION Publishing a tender including: • General requirements • Blueprints • Construction objectives • Safety issue • Vetting of different contractor offers • Choose experienced and time-efficient contractor • Long waiting time to start for planning because of low supply and high demand for construction projects Construction should include: • Permanent indoor wall sections – 1 day per wall • Gate to outdoor wall to access factory – 3 days • Guarantee availability of materials before starting construction at site • German construction law for private industrial companies • Safety • Wall construction next to welding process needs to take into account fire safety of the wall material • Dust fire during construction or dust being accessible to working areas that use fire in their processes CONSIDERATIONS
- 9. II. RAMP-UP STRATEGIES AND ANALYSIS 15/01/2018 Project: Ramp-up after redesign | TH Wildau 9 Based on theory, there are several strategies that can be applied during the ramp-up project. During this chapter, several strategies are analyzed in order to select the most adequate one based on the following criteria : 1. Complexity of implementation 2. Overall impact on profit 3. Time of completion
- 10. EVALUATIONOFRAMP-UP STRATEGIES 15/01/2018 Project: Ramp-up after redesign | TH Wildau 10 DESCRIPTION OF STRATEGYADVANTAGES DISADVANTAGES RADICAL STRATEGY Stop Production for a certain number pf working days while carrying out the construction and relocation of machines Simple to coordinate and implement Shorter time to finish the Project at once Workforce committed to just one task at a time (ramp-up project) Complete stop of usual operations required for the ramp-up period Possible lost orders Higher risk of delays in delivering orders 1 GRADUAL STRATEGY Continue manufacturing while systematically developing ramp- up project during normal working hours Guarantees service level and avoid loss orders No need for additional workers Only low disturbance of usual operations More complex solution to coordinate and implement Longer time to implement – slower progress at a time Employees might have task conflicts (usual operations vs ramp up) 2 No interruption of manufacturing process Workforce committed to just one task at a time (either usual operations or ramp-up project) Slower strategy in comparison with the other two Additional cost of employees (pay overtime) and construction contractors OVERTIME STRATEGY Continue manufacturing normally while carrying out the ramp-up project during overtime hours 3
- 11. MITIGATIONS 1.RISKANALYSIS 15/01/2018 Project: Ramp-up after redesign | TH Wildau 11 RISKANALYSIS S E R V I C E L E V E L P R O D U C T I O N W O R K - F O R C E Postponement of deliveries & related fines Lost orders if production stopped for long time Do not stop production, choose period of time with typically lower demand Try not to disturb usual processes Consider rampup while promising delivery dates, minimize delays Damage while carriage of objects, scrap Lost tools and stored material caused by moving Have fixture and equipment list Know ongoing processes/ current orders list Protect WIP End-of-the-day countings Lengthened ramp-up process in case of employee absence/work slacking or inefficiency Overtime hours: Risk of violating labour law Higher costs Communication to all employees Detailed workforce planning Do neccessary training if applicable Make sure the working time (incl rampup) does not exceed the allowed max. CATEGORYRISKS E X T E R N A L Supplier does not provide materials for construction on time Safety of new materials Agree with the contractor to bring in neccessary materials 2 days in advance
- 12. RAMP-UPPROCESS&STRATEGY 15/01/2018 Project: Ramp-up after redesign | TH Wildau 12 Gradual Transformation of Original Layout into New one1. Organizational structure Type A1: Ramp up team with flexible employee assignment Assignment of employees (relocation) regular working areas Eternal Construction Contractors 2. Tentative Beginning of Project 2 July 2018 (constructions starts 2nd Week of January 2019) Tentative: 2nd stage beginning varies depending on current demand3. STAGES 1. Construction planning 2. Modification of layout 4. KPIs: • Progress of Project/ Planning (%) • Daily Working time (H) • Cost Variance • Performance of machines after reassembly Tentative End of Project 18 January 20195. Tentative End of Project 18 January 20195.
- 13. RAMP-UPIMPLEMENTATION 15/01/2018 Project: Ramp-up after redesign | TH Wildau 13 GANTT chart: # Task PROJECT BEGIN 1 Constructions - contract tendering Project Manager 2D 2 Constructions - contract hiring Project Manager 1D 3 Construcctions - planning and scheduling External 4 Communication to employees (2 weeks before Phase 2)CEO, Pr.Manager, All HR 2h 5 Create new working area 1A in the Hall 4/5 2 Employees, Forklift 6 Create new working area 1B in the Hall 4/5 2 Employees, Forklift 7 Create new working area 1C in the Hall 4/5 2 Employees, Forklift 8 Create new working area 1I in the Hall 4/5 2 Employees, Forklift 9 Carry 1D to Hall 4/5 (Temporarily) 2 Employees, Forklift 10 Move racks from Hall 2 to Hall 1 (2B-2H, 2J-2S) 4 Employees, Forklifts 11 Move 2I to create moving space inside Hall 2 2 Employees 12 Bring in materials for CNC construction External 13 CNC Office construction External 14 Move 3E from Hall 3 to Hall 2 2 Employees, Forklift 15 Move 3B from Hall 3 to Hall 2 2 Employees, Forklift 16 Move 3D from Hall 3 to Hall 2 2 Employees, Forklift 17 Bring in materials for gate construction External 18 Gate construction External 19 Move 3F inside the Hall 3 2 Employees, Forklift 20 Move 3A from Hall 3 to Hall 2 2 Employees, Forklift 21 Move 3C from Hall 3 to Hall 2 2 Employees, Forklift 22 Move 3M inside Hall 3 2 Employees, Forklift 23 Move 3N inside Hall 3 2 Employees, Forklift 24 Bring in materials for construction around 3L External 25 Construction around 3L External 26 Bring 1D area from Hall 4/5 to Hall 3 2 Employees, Forklift 27 Move 3H inside Hall 3 2 Employees 28 Move 2I from Hall 2 to Hall 3 2 Employees 29 Coordination & Control & Countings Project Manager PROJECT END Project Manager DAY 7 DAY 8 DAY 9 180 D DAY 3DAY 1 DAY 4 DAY 5 DAY 66 MONTHSResources PHASEIPHASEII External DAY 2 Employees Cutting process stopped Processing partly stopped Bending process stopped Processin gpartly stopped
- 14. IV. FINAL RECOMMENDATIONS AND CONCLUSIONS 15/01/2018 Project: Ramp-up after redesign | TH Wildau 14 Organisation: • Planning & Timing (know current production plan, detailed organisation structure, current demand) • Communication to internal workforce and equal involvement of all • Quality project management (PDAC cycle) Constructions: • Reliability and quality of subcontractors • Guarantee to start on time Relocations: • Print out special timetables for employees early in advance • Point out critical tasks during ramp-up process • Never use all 3 forklifts for relocations at the same time (leave at least 1 available for usual operations) THE SUCCESS OF THE RAMP-UP DEPENDS ON...
- 15. BACK-UP 15/01/2018 Project: Ramp-up after redesign | TH Wildau 15
- 16. 3E3F3G 3E3G Hall 1Hall 2Hall 3 1FORIGINALLAYOUT 1A 1I 1H 1G 1E 1D 1C 1B 2S 2R 2Q 2P 2I 2j 2L 2N 2O 2M 2K 2H 2G 2F 2E 2D 2C 2B 2A 3D OFFICES 3I 3J 3K 3L 3C 3A 3M 3N3O 3B 3H 15/01/2018 Project: Ramp-up after redesign | TH Wildau 16
- 17. 3E3F3G 3E3G Hall 1Hall 2Hall 3 1FORIGINALLAYOUT 1H 1G 1E 2I 2R 2Q 2P 2N 2O 2j 2L2M 2K 2H 2S 2G 2F 2E 2D 2C 2B 2A 3D OFFICES 3I 3J 3K 3L 3C 3A 3M 3N3O 3B 3H 15/01/2018 Project: Ramp-up after redesign | TH Wildau 17 Storage Storage Storage
- 18. 3E3F3G 3E3G Hall 1Hall 2Hall 3 1FORIGINALLAYOUT 1H 1G 1E 2I 2A 3D OFFICES 3I 3J 3K 3L 3C 3A 3M 3N3O 3B 3H 15/01/2018 Project: Ramp-up after redesign | TH Wildau 18 2S 2G 2F 2E 2D 2C 2B 2j 2L 2M 2K 2H 2R 2Q 2P 2N 2O CNC 3E Cutting 3B
- 19. Material Flow 15/01/2018 Project: Ramp-up after redesign | TH Wildau 19
- 20. Explanation of Areas 15/01/2018 Project: Ramp-up after redesign | TH Wildau 20 grinding
- 21. Machines/Products/Tools 15/01/2018 Project: Ramp-up after redesign | TH Wildau 21 • Buffering • Welding • Stamping • Handrails • Balcony Inlays