The liquid product filling facility offers a diverse range of products with more than 90 products and nearly 300 unique individual sizes and package shapes, The variety of products made, require hundreds of components, and a complex packaging line recess to produce, package, label, pack, and palliative these sellable goods. The complexity of this process was enormous, and although profitable, plant manager Dennis Meyers, saw an opportunity for improvement. Reorganization of Milliner Home and Personal Care Dennis Meyers, Milliner HIP plant manager, and the management team in the Jefferson City plant, set out to create a plan for change.
Enlisting the help of the plants employees the management team Initiated a complex evaluation of the production plants processes and organization. According to Dennis Meyers (D. Meyers, personal communication, Mar 5, 2010), The organizational structure led to inefficiency, and confusion among the production employees, differentiations and a lack of communication between departments caused conflicts in resources, production processes, and increased costs to the company.
Duplication of administrative functions In support of production added to the cost per piece of goods produced. Conflicts between departmental shift supervisors, created an atmosphere of competition rather than cooperation between the departments with support and material resources. Production line equipment was obsolete and maintenance intensive, the lack of flexibility in the lines increase he labor requirements for operation and maintenance.
As a result of product line diversity weekly production time losses per line averaged 12-14 hours, to retool, and reconfigure the lines for different products. A large portion of employees had been with the company for 25 years or more and were not familiar with the new technology available in the packaging industry. ” In a telephone interview Dean Quick, Milliner’s engineering and maintenance manager stated, “In this evaluation Milliner Home and Personal Care found the production line process inefficient, embosser, and difficult to maintain.
To operate and maintain the seven packaging lines, a staff of 224 comprised of operators, maintenance, and supervisory personnel are delved In to four, twelve hour shifts. Differentiations of the plant Into lotions Ana anal care, Walt can navels departmental supervisors, production supervisors, and administrative personnel is inefficient and cost prohibitive” (D. Quick, personal communication, Mar 5, 2010).
Differentiations of the production lines creates a conflict between the departments, and support services, warehouse personnel do not know which reduction line has priority when pulling raw materials from the warehouse and delivering to the production lines, occasionally resulting in a line shut down while waiting for materials. The physical arrangement of the production lines generates division among employees, with the production lines passing through walls making communication between production line operators difficult, and requiring wasteful time consuming routes for staging and moving of raw materials to the packaging lines.
The layout of the production line equipment also creates additional time requirements to maintain loneliness, case packing and liquid filling equipment close to one another cause corrugated dust to interfere with production, requiring additional cleaning time to maintain good manufacturing process (IGMP) requirements of clean sanitary liquid filling equipment. Departmentally product compounding facilities are not capable of delivering the diverse range of products to the packaging line for production.
Lotions and hair care department compounding facilities are identical and incorporate the same process, but physical piping arrangements of the facilities prevent the flexibility of either compounding facility to produce and deliver any product to any production line. Reorganizing Milliner Home and Personal Care The resulting plan proposed and approved by Milliner Corporate management restructures the Jefferson City plant from the ground up. Components of the 13. Million dollar plan include combination of hair care and lotions and compounding departments into one production department reducing administrative personnel, and duplication of administrative functions. The new structure retains one shift supervisor, responsible for all shift production. The plan eliminates of the quality intro department, transferring quality control to the production line employees. Helping to achieve the plans goal of reducing the cost per piece form 1 1. 5 to 9. Cents, Milliner replaced the four lotions lines, the oldest and obsolete packaging line equipment, with two high speed flexible lines capable of producing any product in the company’s product line. The engineering of these new lines analyzed line layout for maximum efficiency. Milliner supervisory and maintenance personnel were flown worldwide to test and evaluate packaging line machinery proposed by contract bids room suppliers selecting the equipment purchased for the new lines.
This evaluation identified the time requirements and ease changing the configuration of the equipment to run a diverse range of products, and the maximum output capabilities of the machinery. Operators must be able to retool, and reconfigure the machinery to run any product in less than an hour. To aid the operators in maintaining quality, the control process was automated, with high technology cameras that could detect any component that did not meet the standards of quality for packaging appearance, these cameras control a rejection vice that physically remove the product from the production line when quality Issue exists. 0 guarantee Tanat no product leaves ten plant Walt n ten volume AT a substance in a package less than the label claim, automated scales are used in the packaging line to measure and reject any product that is determined out of tolerance. Milliner engineering department replaced the compounding facilities piping systems to allow either facility to provide products to any of the production lines, increasing flexibility and reducing down time while waiting for product to the liquid filling equipment.
Optimized company efficiency As a result of the new technology to the production process and restructuring of the facility Milliner reduced the workforce, from seven to four operators per line, and four maintenance personnel per shift, [the corporation offered a lucrative incentive and early retirement plan for those employees within five years of retirement to avoid layoffs and firing of personnel. The resultant workforce was younger and more comfortable with the new technology.
Manufacturers of the new production line equipment trained personnel on the operation, and configuration of these machines, reneging the maintenance force for equipment repairs and upgrades] (D. Meyers, personal communication, Mar 5, 2010). The engineering of the lines and selection of processing equipment, along with the physical arrangement of the lines, increased line efficiency while reducing labor costs and waste of material resources.
Elimination of conflicting management decisions from the departmentally structure led to a clear understanding of expectations and goals, with one shift supervisor there are no conflicts of priority for materials from warehouse personnel, and all employees are working toward a common goal. The four shifts are now in competition with one another, setting new production records as a rule rather than an exception, is has become a matter of pride to hold the shift or line production record”