Fulfilment for Filling

Fulfilment for Filling

Research to more efficiency in the coatings supply chain at the sector Paint of

Akzo Nobel Wapenveld

Fulfilment for Filling

Research to more efficiency in the coatings supply chain at the sector Paint of

Akzo Nobel Wapenveld

Thesis on behalf of graduating

MSc Technology Management

July 2007

Author:

J. Lumer

1297031

Study:

MSc Technology Management

Faculty of Management & Organization

University of Groningen

Supervision:

prof. dr. J. Wijngaard

dr. ir. D. J. van der Zee

Organization of study: Akzo Nobel Wapenveld

Supervision:

A. Vulink

Abstract 3 Janneke Lumer

ABSTRACT

Akzo Nobel is a multicultural organization serving customers throughout the world with human and animal healthcare products, coatings and chemicals. Akzo Nobel Wapenveld is a multi business unit site and part of the business unit Decorative Coatings of the segment Coatings.

Currently 60 per cent of the batches of the sector Paint of Akzo Nobel Wapenveld need to be filled with urgency, which will eventually lead to difficulties meeting the delivery dates of the batches that are made in the sector Paint. The problems can be brought back to uncertainties in the time of approval that are caused by instability of the recipes. Researches on improving the stability of the recipes are in process. However, they take very long. Therefore Akzo Nobel Wapenveld has requested a research on improving the situation provisionally. The objective for this research is:

Provide the sector Paint of Akzo Nobel Wapenveld with means for creating efficiency advantages for Filling Paint.

The Diagnosis-Design-Change model of De Leeuw [2000: 291-342] is used to conduct this research. For the diagnosis the Controlling Organ-Target System model is applied. The Deming cycle supports the design phase.

It appears that the system of Akzo Nobel Wapenveld is well suited for the situation when the recipes are stable. On the disturbances that can occur solutions are found in an ad hoc fashion. For the design of creating more efficiency for Filling Paint, a project team is put together. This project team made use of the Deming cycle. Through the generating of ideas, the testing and the evaluation actions could be taken to retain successful ideas and revise or abandon ideas that do not have a positive impact.

Abstract 4 Janneke Lumer

Figure 1 State of points of action

At the end of the research the following conclusions can be drawn:

• The adapted approach of De Leeuw [2000] is useful for the research and the situation

at Akzo Nobel Wapenveld can be improved by using this approach in the future.

• The research objective is met.

• The research satisfies the conditions of scientific relevance: The results of the research

are reliable, valid, controllable, transparent, credible and useful.

Besides the conclusions there are some recommendations that can be mentioned.

• The project team can be used in the future to solve more points of interest than the ten

mentioned in this research.

• Akzo Nobel Wapenveld should institutionalize the changes that are made during this

research, to prevent the old ways of working from slipping in again.

• In an ideal situation the recipes would be made stable. In that way there are not any

difficulties anymore at Filling Paint. Akzo Nobel Wapenveld has already recruited a researcher who will try to solve the problems with some of the frequently produced recipes.

• When after all that the workplaces are turned into i-workplaces in the SAP system,

Preface 5 Janneke Lumer

PREFACE

The thesis called ‘Fulfilment for Filling’ is from my graduation research in order to graduate from the MSc study Technology Management at the Rijksuniversiteit Groningen. The research was initiated at Akzo Nobel Wapenveld to provide the sector Paint of Akzo Nobel Wapenveld with more efficiency at the coatings supply chain at the sector, taking the uncertainty of the time of approval into account, in order to increase the manageability of that department.

The completion of this graduation thesis would not have been successful without the cooperation of a number of persons, who I would like to thank in this preface.

Firstly, I would like to thank Akzo Nobel Wapenveld and Mr Vulink in particular for offering the opportunity of research and the support during the research. Also the project team that was put together has provided a lot of help during the research.

Secondly, I would like to thank two employees of the Rijksuniversiteit Groningen. In the first place Mr Wijngaard for the help and support at writing the thesis. Also I would like to thank Mr van der Zee for the constructive criticism on the research.

Contents 6 Janneke Lumer

CONTENTS

1.1. AKZO NOBEL WAPENVELD... 9

1.1.1. History ...10

1.1.2. Organization...11

1.2. MOTIVATION FOR RESEARCH...15

1.3. SUMMARY...16 2. PROBLEM DEFINITION...17 2.1. RESEARCH OBJECTIVE...17 2.2. RESEARCH QUESTION...17 2.3. RESEARCH CONDITIONS...18 2.4. SUMMARY...18 3. THEORETICAL FRAMEWORK...19 3.1. SOCIOLOGICAL PARADIGMS...19

3.1.1. Which paradigm fits Akzo Nobel Wapenveld?...20

3.2. THE SYSTEMS APPROACH...21

3.3. THE DESIGN PROCESS...21

3.3.1. Diagnosis: Systems theory of control...22

3.3.2. Design: Deming cycle...23

3.4. RESEARCH DESIGN...26

3.5. SUMMARY...27

4. SYSTEM DESCRIPTION & DIAGNOSIS ...28

4.1. THE CONTROL PROBLEM...28

4.1.1. Target system ...28

4.1.2. Controlling organ ...35

4.1.3. Meta-controlling organ ...38

4.2. CONTROL CAPABILITY OF THE CONTROLLING ORGAN...39

4.3. SELECTION...40 4.4. SUMMARY...40 5. DESIGN...41 5.1. PROJECT TEAM...41 5.1.1. Roles ...41 5.1.2. Process ...42

5.1.3. Categorization of points of action ...43

5.2. DEMING CYCLE WITHIN THE PROJECT...45

5.2.1. Illustration: improvement of filling times ...45

5.3. POINTS OF ACTION...47

5.3.1. Fewer disturbances by urgent orders...47

5.3.2. Improvement of filling times ...48

5.3.3. Use of actual throughput times ...49

5.3.4. Use of filling buffers...50

5.3.5. Production Paint filling direct batches ...50

5.3.6. Alter routings ...51

5.3.7. Process and Product Control Paint during two shifts ...52

5.3.8. Planning on mobile tanks ...53

Contents 7 Janneke Lumer

5.3.10. Increase machine capacity...55

5.4. SUMMARY...58 6. CHANGE ...59 6.1. CURRENT STATE...59 6.2. EVALUATION...59 6.2.1. Process ...60 6.3. SUMMARY...60 7. CONCLUSIONS...62

7.1. FEEDBACK TO RESEARCH OBJECTIVE...62

List of abbreviations 8 Janneke Lumer

LIST OF ABBREVIATIONS

CO: Controlling Organ

DDC: Diagnosis-Design-Change

DISS: DISSolver

ETL: ETiketteren in Lijn – labelling in line

FROK: First Run OKay

MPS: Master Production Schedule

MRP: Material Requirements Planning

MTO: Make-To-Order

MTS: Make-To-Stock

PM: Pearl Mill

ROC: Range Of Coverage

TS: Target System

General description 9 Janneke Lumer

1.

GENERAL DESCRIPTION

The research for this thesis is performed at Akzo Nobel Wapenveld. In this chapter a description of this facility is represented in paragraph 1.1, and in paragraph 1.2 an introduction to the research is given. In paragraph 1.3 a summary of this chapter is represented.

1.1. A

N

W

Based in the Netherlands, Akzo Nobel is a multicultural organization serving customers throughout the world with human and animal healthcare products, coatings and chemicals. Akzo Nobel employs around 61500 people and has operating subsidiaries in more than 80 countries. Consolidated revenues for 2005 totalled € 13 billion; the profit totalled € 960 million [Akzo Nobel, 2006].

General description 10 Janneke Lumer

Figure 1-1 Organization Akzo Nobel

Akzo Nobel Wapenveld is a multi business unit site and part of the business unit Decorative Coatings of the segment Coatings. However, due to the status of being a facility producing special products, Akzo Nobel Wapenveld reports directly to Coatings. Therefore, Akzo Nobel Wapenveld has to have a neutral economic value added (EVA®) of its own. This means that Akzo Nobel Wapenveld is more flexible and enterprising than other facilities. The downside is that there may be some form of inefficiency. Akzo Nobel Wapenveld exploits the infrastructure of Decorative Coatings.

1.1.1. H

General description 11 Janneke Lumer In World War II the Wapenveld facility was expanded and production in Zwolle was discontinued. The J.L.H. Smits & Co. paint factory in Velsen on the North Sea had been in the business of producing marine paints since 1879 when, also in World War II, it was blown up by the German occupation forces to leave a clear field of fire for their coastal artillery. So, immediately after the war, J.L.H. Smits & Co. bought the Wapenveld factory.

In the summer of 1960 the paint factory was absorbed into the then Sikkens Group, and later that year Sicova (Sikkens Scheeps- en Constructieverven) transferred from Leiden to Wapenveld. Renamed Sikkens Smits, the company specialized in marine, construction and plastics coatings and in sealants.

After many mergers Akzo Nobel was founded. In 1998 Akzo Nobel acquired Courtalds of the United Kingdom, a leading international chemical company which has leading positions in high-tech industrial coatings and man-made fibres. Akzo Nobel is now one of the largest producers of coatings in the world. The fibre companies of Akzo Nobel and Courtalds are merged under the new name Acordis and are sold [Akzo Nobel Nederland, 2006]. Akzo Nobel now focuses on the core segments Coatings and Chemicals.

1.1.2. O

Akzo Nobel Wapenveld is responsible for the replenishment of distribution centres of Akzo Nobel Decorative Coatings. Besides this make-to-stock (MTS) Akzo Nobel Wapenveld is also in a make-to-order (MTO) situation; some batches are produced on customer orders. Akzo Nobel Wapenveld employs around 130 people and has an output of 15 M kg. annually. Akzo Nobel Wapenveld makes about 1000 products, which represent approximately 2500 end items. The facility consists of three sectors, namely Distribution, Paint, and Fillers. Besides these sectors there is administrative and technical support, and Logistic Planning Management.

General description 12 Janneke Lumer

Figure 1-2 Organization Akzo Nobel Wapenveld

In the sector Paint about 60 people are employed. Short Term Planning is managed hierarchically by the sector Paint and functionally by Logistic Planning Management. The employees in production work in Production Paint or Filling Paint. A handful of employees are trained to be all-round in both Production Paint and Filling Paint; they rotate every two months and receive a bonus for that.

General description 14 Janneke Lumer

Figure 1-3 Generic Process Paint

General description 15 Janneke Lumer

1.2. M

Filling Paint has five flows of input. These flows stem from colour production, decoupling stock, Production Paint, solvent and waiting for approval (WOG – wacht op goedkeuring). Short Term Planning Paint provides Filling Paint with a schedule for filling. The schedule for Filling Paint is based on the first four flows, and made three days in advance. Within those three days two disturbances might occur that can cause the schedule to be incorrect.

Before a batch can be filled it must be approved by Process and Product Control Paint. Batches that are produced, but not yet approved are placed on the WOG list. The batches that stem from colour production, decoupling stock and solvent are already approved before the schedule is made. The batches that stem from Production Paint have not been produced yet when the schedule is made; it is uncertain whether or not Process and Product Control Paint has approved those batches when Filling Paint needs them. When a batch is not approved, it is still on the WOG list, and is sent back to Production Paint for some adjustments. This is the first disturbance on the schedule for Filling Paint: A batch that is scheduled to be filled will not be filled that particular day.

When such a batch is finally approved by Process and Product Control Paint it can cause the second disturbance. Because the batch is overdue it can be needed for shipment. Such a batch has to be filled as soon as possible, and although it is not on the schedule for that particular day, after approval by Process and Product Control Paint the batch is filled immediately at Filling Paint, causing other batches to wait.

When Short Term Planning Paint is scheduling for Production Paint the filling distribution of the first three flows is not concerned. It is the date that the customer needs the batch that is important for the scheduling. The resulting difficulty is that Filling Paint can be very busy or very quiet, depending on the packages the batches have to be filled in.

When many batches are not approved the first time, and the WOG list is therefore long, it can occur that all mobile tanks are in use. When Production Paint then has to mix a new batch, it has to wait until a batch in a mobile tank is filled and the tank cleaned before production can be started. Eventually this can lead to delays in all further stages, including Filling Paint. For Filling Paint it is therefore difficult to meet the schedule. This can result in difficulties concerning delivery dates to customers.

General description 16 Janneke Lumer delivery dates. At the moment this raises the costs that are needed for the sector Paint. The current sequence of the orders is unfavourable. This leads to set-up time losses and more personnel costs than needed.

Various researches on the stability of the recipes are already in process; when all the recipes are stable, there are not any difficulties concerning meeting the schedule anymore. Because these researches take a very long time, Akzo Nobel Wapenveld has requested a research on improving this situation provisionally, in order to meet the delivery dates in the mean time.

1.3. S

Problem definition 17 Janneke Lumer

2.

PROBLEM DEFINITION

The problem definition of research is a thorough reproduction of the questions one endeavours to answer through the research, the reasons why the answer is of interest and the research conditions are set. Consequently, the problem definition can be divided into three components, namely [De Leeuw, 2001: 81]:

• research objective; • research question; • research conditions.

These three components will be defined for the research conducted at Akzo Nobel Wapenveld. In paragraph 2.1 the research objective is stated, in paragraph 2.2 the research question is formulated and in paragraph 2.3 the research conditions are given. The chapter is concluded in paragraph 2.4 with a summary.

2.1. R

The research objective is the reason why it is important or advantageous to produce the knowledge [De Leeuw, 2000: 290]. The research objective for this research at Akzo Nobel Wapenveld is:

Provide the sector Paint of Akzo Nobel Wapenveld with means for creating efficiency advantages for Filling Paint.

This research objective will be met through the means of a process approach. First insight in the situation is needed. After that a project team will be formulated. The project team will be responsible for creating opportunities to meet the research objective. This will be embedded in theory that will be expounded in chapter 3.

2.2. R

The research question is the knowledge product that the research intends to yield [De Leeuw, 2000: 290]. The question for this research is:

By means of which design and/or managerial tools can Filling Paint of the sector Paint of Akzo Nobel Wapenveld become more efficient?

Problem definition 18 Janneke Lumer

2.3. R

The research conditions indicate the limitations of the results and methods of the research. Among these are the demands and conditions that the customer states regarding the research and results. Product research conditions and process research conditions are concerned [De Leeuw, 2001: 85]. Product research conditions reflect the demands that the results of the research need to satisfy; process research conditions reflect the demands that the progress of the research need to satisfy.

The product research conditions:

• Academic product research conditions can be criteria, truth, ability to test and verify,

objective, explicit, precise, consistent, informative, systematic, transparent, altruistic and general [De Leeuw, 2000: 71, 2001: 21].

• Practice product research conditions are specific, measurable, achievable, realistic and

timely.

• In this research only sector Paint of Akzo Nobel Wapenveld is taken in consideration. • The improvement of the first run okay (FROK) is not taken into account in the

research.

• Due date tolerances must be met.

The process research conditions:

• Meet the research conditions set by the Faculty of Management and Organization to

the thesis.

• Meet the research conditions set by Akzo Nobel Wapenveld as far as they are different

to the product research conditions.

• The research must be representative for 26 working weeks.

2.4. S

In this chapter the problem definition is given. The objective for this research is:

Theoretical framework 19 Janneke Lumer

3.

THEORETICAL FRAMEWORK

The theoretical framework of the conducted research is represented in this chapter. The sociological paradigm which is used is expounded in paragraph 3.1. After this the systems approach that fits within this paradigm and is used for the research is enunciated in paragraph 3.2. The design process is explained in paragraph 3.3 and in paragraph 3.4 the research design is given. After this the chapter will be closed with a summary in paragraph 3.5.

3.1. S

All kinds of systems approaches can be categorized in four types of social theory. These social theories have inhabited certain paradigms. These paradigms are founded upon mutually exclusive views of the social world. Each stands in its own right and generates its own distinctive analyses of social life [Burrell & Morgan, 1979: 25]. The idea that all theories of organization are based upon a philosophy of science and a theory of society is central to the thesis of Burrell & Morgan [1979: 1].

Philosophical assumptions underwrite different approaches to social science. All social scientists approach their subject via explicit or implicit assumptions about the nature of the social world and the way in which it may be investigated [Burrell & Morgan, 1979: 1]. Two broad and somewhat polarized perspectives on the nature of social science are an objective and a subjective perspective. If one subscribes to an objective view of social reality, which treats the social world as if it were a hard, external, objective reality, then the scientific endeavour is likely to focus upon an analysis of relationships and regularities between the various elements which it comprises. If one subscribes to a subjective view of social reality, which stresses the importance of the subjective experience of individuals in the creation of the social world, then the search for understanding focuses upon different issues and approaches them in different ways. The subjective-objective distinction is the first principal dimension of the scheme for analyzing social theories [Burrell & Morgan, 1979: 3-4].

Theoretical framework 20 Janneke Lumer modern society. It is a sociology which is essentially concerned with man’s emancipation from the structures which limit and stunt his potential for development. The basic questions which it asks focus upon the deprivation of man, both material and psychic. The regulation-radical change distinction is the second principal dimension of the scheme for analyzing social theories. Along with the subjective-objective dimension it is presented as a powerful means for identifying and analyzing the assumptions which underlie social theories in general [Burrell & Morgan, 1979: 16-17].

Jackson [2000: 41] concentrates on four key types of social theory. He distinguishes functionalist approaches, interpretive approaches, emancipatory approaches and postmodern approaches. These approaches can be placed in the matrix of Burrell & Morgan [1979: 22] defining the four paradigms for the analysis of social theory, as can be seen in Figure 3-1.

Figure 3-1 Sociological paradigms

3.1.1. W

A

N

W

?

Akzo Nobel Wapenveld has requested a research to improve the coatings supply chain at the sector Paint. The problems that are addressed are the difficulties regulating Filling Paint and the strongly variable lead times which result in variable delivery dates to the customer. Akzo Nobel Wapenveld suspects that through thorough scientific analysis and foundations the processes can be more efficient and effective, so that the facility maintains a competitive position in the environment.

Theoretical framework 21 Janneke Lumer the wishes of Akzo Nobel Wapenveld and these descriptions a functionalist approach seems appropriate.

When the functionalist perspective is adopted, systems appear as objective aspects of a reality independent of the observers. Using the methods of the natural sciences, they are examined in order to discover the laws that govern the relationships between their parts or sub-systems. If knowledge about the behaviour of a system can be gained in this way, the knowledge can be used by experts to improve the technical efficiency or efficacy of the system and/or its long-term ability to adapt and survive [Jackson, 2000: 107].

3.2. T

With the acknowledgement of the need for a systems approach that fits within the functionalist paradigm such an approach can be selected. The systems approach of De Leeuw [2000] can be placed within the paradigm of the functionalist approach: Within this systems approach organizations are looked upon from the functionalistic perspective of the scheme for analyzing social theories of Burrell & Morgan [1979: 22] [De Leeuw & Volberda, 1996: 122], which is the foundation of the matrix that is used for defining the paradigms. Accordingly, this systems approach is suitable for this research project.

There is some criticism on the use of systems approaches. Arbnor & Bjerke [1997: 49] see three methodological approaches operating in business research, namely the analytical approach, the systems approach and the actors approach. According to Arbnor & Bjerke [1997: 54] these approaches direct various kinds of criticism at each other. The main criticism on the systems approach is that it cannot deal with actors having different subjective realities and ambiguity. However, in the systems approach of De Leeuw there is place for an actors approach [De Leeuw, 2000: 85], and this critique is therefore rejected.

3.3. T

A design process is a transformation of a problem situation into a solution. A possible execution of the design process is the Diagnosis-Design-Change (DDC) model [De Leeuw, 2000: 216]. Three phases can be distinguished in the design process, namely:

• diagnosis phase; • design phase; • change phase.

Theoretical framework 22 Janneke Lumer the elaboration of the diagnosed problem into a concrete solution. The change concerns the implementation of the designed solution. It is not necessary for the phases to follow each other in time [De Leeuw, 2000: 296-298].

The systems theory of control will be used for the diagnosis phase. The systems theory of control is part of a conceptual systems approach [De Leeuw, 2000: 86], at which controlling takes a central role. The paradigm of control is a collection of concepts of control and the way these concepts can be employed to generate representations and models for analysis and design. The point of departure in the systems theory of control is the assumption that it is possible and meaningful to approach reality in this manner. The systems theory of control is relevant in all cases of influencing the situation [De Leeuw, 2000: 150].

The design provides the model of the desired system [De Leeuw, 2000: 215]. This implicates a long term vision. At Akzo Nobel Wapenveld this would imply that all the recipes are stable and therefore the customer delivery dates can be met. However, one of the research conditions is that the improvement of the FROK is not taken into account in this research. Therefore the design of this research will not fit in the long term vision, and a method for design on short term, the Deming cycle, is implemented within this phase. The use of this short term method will not withhold the mentioning of shortcomings in the long term. This will be noticed during the research. As has already been mentioned, within the systems approach of De Leeuw [2000: 85] there is place for an actors approach. The use of the Deming cycle, which is based on the participants and their different subjective realities, therefore seems legitimate. The use of the Deming cycle within the DCC model of De Leeuw [2000] implicates that in the design phase the researcher will be drawn from the expert view that is intended by De Leeuw [2000] to a more participating one as an actor in the Deming cycle.

To recapitulate, the DDC model of De Leeuw is used as the peg for this research. Within the diagnosis phase the systems theory of control will be used to understand the situation Filling Paint of Akzo Nobel Wapenveld is in. Within the design phase the Deming cycle will be used to embed short term improvement into the research.

3.3.1. D

:

S

The problem of Akzo Nobel Wapenveld can be defined as a control problem. That is why the system theory of control is appropriate for analyzing the situation.

Theoretical framework 23 Janneke Lumer organ (CO) [De Leeuw, 2000: 151]. When the TS itself is also a CO there is meta control, which can be seen as control of control [De Leeuw: 2000: 180]. In Figure 3-2 a standard CO-TS model is represented.

Figure 3-2 Standard CO-TS model

A control problem can be represented as a standard CO-TS model, which is an organization consisting of a configuration of a CO and a TS which is positioned in a certain environment. In this configuration, the solvability of the control problem is determined by the control procedures, the controllability of the TS, and the control capability of the CO [De Leeuw, 2000: 157; De Leeuw & Volberda, 1996: 128-129].

The CO-TS model can clarify whether or not there are criteria or mechanisms to evaluate the reach of goals, there is a facility to adapt the control model when the TS alters, there is proper information present, or the managerial armamentarium and the data-processing capacity are sufficient [De Leeuw, 2000: 328].

3.3.2. D

:

D

Theoretical framework 24 Janneke Lumer

3.3.2.1. P

To create solutions for problems numerous (combination of) techniques can be used. The problem at Akzo Nobel Wapenveld can be defined as an open problem, and for finding solutions for open problems there are two main streams indicated by Walravens & Melis [1994: 78]: brainstorming and brainwriting. These techniques have a lot of resemblances, however the main difference is that the execution of brainstorming is orally, and the execution of brainwriting is in writing.

The basic principles of brainstorming are [Crawford & Di Benedetto, 2003: 111; Kreitner, Kinicki, & Buelens, 1999: 356]:

• deferral of judgment; • quantity breeds quality; • freewheeling is encouraged;

• combination and improvement of ideas is pursued.

Probably the most important condition of improving logistic performance is the commitment of the management. Without this commitment few results can be expected. The management must be convinced of the necessity of improvement, and has to carry this out to the production organization. Commitment of the management, which creates a high priority for the employees, is important for actual improvement. By combining the knowledge of everyone it is possible to improve effectively [Brevé, 1990: 114].

Another requisite with regard to improvement is the employee competence. The employees have to be able and willing to be dedicated to improving. People need to have a willingness for collaboration, and effort for a collective aim for the reaching of objectives is needed [Brevé, 1990: 115].

Theoretical framework 25 Janneke Lumer an improvement, a plan for improvement will be made. This is in line with the functionalist paradigm that underlies this research.

There is much literature about production control. Among all the definitions McKay & Wiers [2004: 35] present a realistic and practical objective of production control: The objective is to ensure that future troubles are discounted. The strategy of the points of action for accomplishing improvement within Akzo Nobel Wapenveld will be based on the abovementioned definition.

3.3.2.2. D

Testing will be done to select which points of action have a positive impact on the manageability of Filling Paint and therefore should be pursued for development. It will also be used to gather information on how to improve these points of action.

Ulrich & Eppinger [2004: 149-153] present a number of ways to test concepts. In order of increasing richness these are:

• verbal description; • sketch;

• photos and renderings; • storyboard;

• video; • simulation;

• interactive multimedia; • physical appearance models; • working prototypes.

For the research it will be tried to use the best possible way to test whether or not the points of action are applicable and have a positive impact. Also, the information for improvement will then be more valuable. For all that the points of action will be tested with working prototypes. At Akzo Nobel Wapenveld this will be done by implementing the points of action in small scale if possible. This could have an enormous impact. Therefore, when in the plan step a point of action is defined as not applicable or not having a positive impact on the manageability of Filling Paint, the idea will be abandoned.

3.3.2.3. C

Theoretical framework 26 Janneke Lumer evaluation decisions can be taken with regard to the proceeding of the ideas, because the extent to which these ideas accomplish improvement goals then becomes visible.

3.3.2.4. A

Based upon results from the check step actions will be taken. If the planned changes are successful, they are retained. If the changes are successful, but are implemented only in a limited way, they will be expanded. If the changes have failed, they will be scrutinized to see why and to determine what else can be done instead. Changes that cause adverse consequences will be revised to reduce the consequences and will be retried [Nicholas, 1998: 45].

3.4. R

With the use of the above theories the research and several sub questions the research will be conducted. The research is subject to a functionalistic process approach, however, it is participative. Following the DDC model of De Leeuw [2000: 291-342] the first part of the research will be the diagnosis, with the use of the CO-TS model. This leads to the first sub question:

1. What does the current situation of Filling Paint of the sector Paint of Akzo Nobel

Wapenveld look like?

When the answer to this question is known, the next phase of the DDC model [De Leeuw, 2000: 291-342] can be entered. In this phase the design of the improvements for meeting the research objective is done. It is made reasonable that for this phase the use of the Deming cycle is legitimate. With the help of a project team the next sub questions need to be answered:

2. What are possibilities for creating efficiency advantages?

3. What are possibilities for creating efficiency advantages for Filling Paint of the sector

Paint of Akzo Nobel Wapenveld, taking the uncertainty of the time of approval into account?

After creating designs for improvement at Akzo Nobel Wapenveld, these improvements should be implemented. That is the change phase in the DDC model [De Leeuw, 2000: 291-342]. Next to this implementation an evaluation of the research is needed. The following sub questions provide the answers to these topics:

4. Is it possible to implement these designs at Filling Paint of the sector Paint of Akzo

Theoretical framework 27 Janneke Lumer 5. Does the implementation of the designs produce the desired outcome?

The first sub question will be answered in the diagnosis phase, where the current situation is represented, with the use of the CO-TS model. This is enunciated in chapter 4. In the design phase theories for the designs and the points of action will be described, using the Deming cycle. These results of the second and third sub question are described in chapter 5. The last sub questions are related to the change phase of the DDC model; the realization of the design and the evaluation will be represented in chapter 6. This thesis will be concluded in chapter 7.

3.5. S

System description & Diagnosis 28 Janneke Lumer

4.

SYSTEM DESCRIPTION & DIAGNOSIS

In this chapter the diagnosis of the problem is represented. The interpretation of the CO-TS model that is represented in chapter 3 is given in paragraph 4.1. After this, in paragraph 4.2, the control capability of the controlling organ is given. In paragraph 4.3 the selection process is enunciated. Paragraph 4.4 provides a summary of this chapter.

4.1. T

A condition of improving performance assumes there is knowledge of the current situation. Without this knowledge orientation is not possible and improvement cannot be performed effectively. Diagnostics supplies this knowledge [Brevé, 1990: 37]. The situation at Akzo Nobel Wapenveld is represented in a simplified way in Figure 4-1.

Figure 4-1 CO-TS model

The above model is a CO-TS model. The TS, CO and meta-CO will be described in this paragraph.

4.1.1. T

System description & Diagnosis 29 Janneke Lumer

4.1.1.1. P

P

Akzo Nobel Wapenveld is responsible for the replenishment of distribution centres of Akzo Nobel Decorative Coatings; the distribution centres of Akzo Nobel are not allowed to have shortages. Production Paint produces products for these distribution centres. Next to this MTS, the facility is in an MTO-situation; it produces batches that are ordered by customers. Besides this, Production Paint produces for internal decoupling stock, which is for instance used by colour producers. The tanks the batches are stored in are partially dedicated to products. In Figure 4-2 a simplified representation of the processes of Production Paint is given.

Figure 4-2 Production Paint

1. Raw material is placed in a buffer. Some of the liquid raw material still needs to be

System description & Diagnosis 30 Janneke Lumer 2. The dispersion of the raw material is done in tanks or mobile tanks. In the recipe a

description of when a certain quantity of material should be added, the time it should be mixed at a certain speed and the maximum temperature the product is allowed to reach is given.

3. Some batches need to be milled in a pearl mill to get a certain degree of fineness. A

pearl mill contains Zirconox Ce (zirconium oxide) pearls that are passed by the paint that is pumped through the machine. The desired fineness is captured in the recipe. 4. The batches are then buffered.

5. A sample of the batch with the data gathered at the inspection at Production Paint is

send to Process and Product Control Paint, where a profound check is done. If the specifications are not met, adjustments take place.

6. When the batch is approved by Process and Product Control Paint, it stays in the

buffer, until it is needed by Filling Paint.

The tank floors that are used to store the paint in are described in Appendix 2. Batches have a standard routing for the use of dissolvers (DISS’s) and pearl mills (PM’s), dependent on the colour and kind of product. These standards can be found in Appendix 3.

4.1.1.2. F

P

System description & Diagnosis 31 Janneke Lumer

Figure 4-3 Filling Paint

1. The packaging products are placed in a buffer by Warehouse Packaging Paint.

2. The labels and stickers are placed in a buffer by Printing.

3. This is a buffer of batches of paint that are approved by Process and Product Control

Paint.

4. The barrels, tins, cans and buckets are labelled.

5. Filling can be done by hand or by machine. When the filling is done by machine, this

is done on the ETL or the automatic filling lines. A screen is used to filter possible impurities out of the product.

6. After the labelling and filling the paint is placed in a buffer before getting packed.

7. The units can get packed in boxes or wrapped in clingfilm before they get placed on a

System description & Diagnosis 32 Janneke Lumer 8. The pallets with packed units are placed in a buffer, before sending them to

Distribution.

System description & Diagnosis 33 Janneke Lumer

Figure 4-4 Workplace allocation

System description & Diagnosis 34 Janneke Lumer shifts have a labor force of five employees, that is, if nobody has shorter working hours, is ill or is on leave. The actual hours of work are 7,25 per employee per shift.

Two of the employees in a shift operate the ETL, during two shifts per day. The work at the ETL consists of filling water borne and solvent borne paint in at least 40 packaging products up to 5 l.; when the product is too viscous for the ETL to handle the filling is done by hand on the platform. Production Paint delivers the mobile tanks with paint at the ETL. The ETL is also used for the labeling of packaging products of 5 l. or less that are filled at other workplaces. After filling the product needs to be packed in boxes or clingfilm.

Two other employees in a shift are, depending on priority, operating the fully automatic filling machines or filling packaging products of more than 5 l. straight out of the tanks, during two shifts per day.

There is a participating coordinator, who requests packaging products, distributes work and mixes mobile tanks for the ETL before placing them on the platform during two shifts a day. When a shift consists of less than five employees, the coordinator is working with the employee that is not working on the ETL. This means there is less productivity due to the other duties the coordinator has. When the coordinator has to do other work, the other employee can only work at half of the usual pace.

The platform workplace is operated by one employee who empties the mobile tanks that have to be filled in packaging products of more than 5 l. and less than 40 units, and fills paint that is too viscous for the ETL to handle in packaging products of less than 5 l. This is all done by hand.

The labeling workplace is operated by one employee who labels the packaging products that are not suitable for the ETL to label. This can be the mechanical pre-labeling of packaging products for the platform workplace and the filling straight out of tanks, and the labeling of packaging products on behalf of the solvent floor. Another duty of the labeling workplace is the pasting of labels all around the packaging products. The labeling machine is not suitable for this job, so this must be done by hand.

all-System description & Diagnosis 35 Janneke Lumer rounders; in one shift two employees of Production Paint and one employee of Filling Paint are suitable to work in the other department, and in the other shift one employee of Production Paint and one employee of Filling Paint are suitable to do both jobs. When these all-rounders are used in favor of one of the two departments, the other department has a deficient capacity, and therefore cannot do all the jobs that are planned.

At the moment there are many Saturdays that employees have to do work overtime; there is little room for manoevre.

4.1.2. C

System description & Diagnosis 36 Janneke Lumer

Figure 4-5 Short Term Planning Paint

1. The SAP system provides Short Term Planning Paint with a proposal for production.

This proposal is based on customer orders and forecasts. Short Term Planning Paint decides which proposals will be honoured, depending on priorities that are established. 2. An inspection on capacity and raw material takes place. If there is a problem a

solution will be sought. 3. The order is triggered.

4. The SAP system provides Short Term Planning Paint with a proposal for filling. This

proposal is based on the production orders that are triggered and need to be filled. An inspection of the material takes place.

5. If everything seems to be in order, the filling can be scheduled. For paint that should

System description & Diagnosis 37 Janneke Lumer Distribution. Also the picking forms for Warehouse Packaging Goods and the labels and stickers that are needed at the automatic filling machines are prepared.

6. When Process and Product Control Paint approves of filling the paint that is

scheduled, this can be done. Otherwise Short Term Planning Paint has to reschedule the paint, so it can be filled at another date. When a delivery date cannot be met, Order Entry is informed, and a new delivery date will be set.

There is much literature about planning and scheduling, and a clear definition of planning and scheduling is difficult to give. Jorna, Gazendam, Heesen & Van Wezel [1996: 49] have therefore made a definition from a generic perspective: it is the tuning of at least two collections of instantiations of different types of entities, also called objects, of which different preconditions are taken into account and where there had been worked towards the minimization (or maximization) of different target functions. At the sector Paint of Akzo Nobel Wapenveld this would specifically mean that Short Term Planning Paint schedules Production Paint and Filling Paint as efficiently as possible, taking into account that customer delivery dates must be met.

Every day the SAP system provides Short Term Planning Paint with a master production schedule (MPS) report; the MPS-report renders a list of products of which the range of coverage (ROC) will be beneath the target level within a period of 21 workdays. The ROC is the amount of days stock will suffice to meet the needs of customers in a particular distribution centre. The minimum, target and maximum ROC are available. When stock is reaching the minimum ROC replenishment is needed at least up to the target ROC, with the restriction that stock may not exceed the maximum ROC. Depending on the date of reaching an amount beneath the target level, the forecast and the history, Short Term Planning Paint decides to start the procedure of producing the product and the batch size it will be produced in. Consequently, the batch size the SAP system proposes is not always the batch size that will be produced. A production batch can be distributed over multiple end items, which means that an end item that is not needed yet can be replenished beforehand, because the batch is produced and triggered by another end item. This policy is beneficial for the volume of a batch and it can obtain transportation savings.

System description & Diagnosis 38 Janneke Lumer products of which the procedure of producing the product has already been started and the products of which the procedure of producing the product has not started yet.

The routings of the products are generated by the SAP system. Production Paint keeps track of the capacities of men and machines. Short Term Planning Paint plans the production of Production Paint depending on these capacities. The products that are already being produced and therefore use resources are also taken into account; after starting the procedure of producing the product a planning board is used to visualize the consumption of machine and tank resources. The scheduling of Filling Paint is done by using a filling matrix, which states the amount of time that is needed to fill a batch of a certain quantity in certain packaging units at a certain workplace.

Some orders have to be delivered with speed. Regular orders in Production Paint and Filling Paint have to be rescheduled if that is necessary.

All batches that are produced have to be approved by Process and Product Control Paint. When batches are not approved, the batches have to be adjusted or are rejected. This has implications for Production Paint and Filling Paint. Production Paint has to redo some or all of the work. The batch is placed in a record which states all the batches that are WOG. When these batches have to be delivered with speed, or are customer orders, they have to be filled immediately after approval. Filling Paint then has to be rescheduled. There is a record of the capacity of the men and machines for Filling Paint for every workplace and packaging unit. However, except for the ETL, these capacities are not correct.

4.1.3. M

-

The long term planning controls the CO. De Leeuw [2000] calls control of the CO a form of meta-CO. Short Term Planning Paint is controlled by the SAP system. The SAP system embodies the meta-CO; it controls the CO.

System description & Diagnosis 39 Janneke Lumer The MPS-report and the critical phase record depend on forecasts and orders. The forecasts are entered into the SAP system by the responsible product managers of the distribution centres and depend on the product, the distribution centre and the month. The forecasts are made based on market knowledge and history. If a distribution centre is not connected to the same SAP system as Akzo Nobel Wapenveld, the logistics planning manager enters the data into the SAP system. The responsibility of the forecasts lies with the relevant product manager.

4.2. C

As has already been mentioned, the solvability of the control problem is among others determined by the control capability of the CO [De Leeuw & Volberda, 1996: 128-129; De Leeuw, 2000: 157].

The control capability of a CO is the maximum amount and quality of control procedures the CO can generate. This is particularly determined by the requirements for effective control. These are [De Leeuw & Volberda, 1996: 129-130; De Leeuw, 2000: 157-163]:

1. Control involves at least some mechanism to evaluate the effects of the influencing.

2. The quality of the model of the TS is related to the prediction of the effect of a control

procedure. This prediction facilitates the search for an effective procedure.

3. Information of the environment and the state of the system determine in addition to the

control procedures the future situation.

4. The law of requisite variety prescribes that the set of control procedures must at least

be equal to set of disturbances within the environment.

5. The capacity of dealing with information must be large enough to cover for the

throughput of information, coordination, blocking irrelevant data and noise. Sub 1. The objective for this research is:

Provide the sector Paint of Akzo Nobel Wapenveld with means for creating efficiency advantages for Filling Paint.

System description & Diagnosis 40 Janneke Lumer Improvements will be made on the basis of the Deming cycle. This Deming cycle has an evaluation within the approach, and the effects of the means of influencing can therefore be evaluated.

Sub 2. A beginning with this requirement is made by describing the CO-TS model, which is the point of departure for this research. Common sense is also important. If it emerges that the abovementioned model is not correct, it will be altered.

Sub 3. All the information that is required to know for Short Term Planning Paint can be drawn out of the SAP system. The SAP system provides information about the past, present and the future.

Sub 4. The underlying objective for this research is to provide Akzo Nobel Wapenveld with control procedures to cope with the disturbances at Filling Paint. The disturbances which the present research endeavours to solve are not known at this point.

Sub 5. The capacity that is needed for dealing with the information that becomes apparent at the present research has to come from the researcher. When this requirement cannot be met by the researcher herself, extra capacity shall be drawn from other resources at Akzo Nobel Wapenveld.

4.3. S

One of the research conditions is that the recipes are not improved. It is not realistic to alter the way of scheduling at once. Therefore a selection has to be made. This selection takes place at the start of the design phase.

4.4. S

Design 41 Janneke Lumer

5.

DESIGN

This chapter describes the interpretation of the Deming cycle for the design phase of the project. In paragraph 5.1 the roles of the project team and the classification of the points of action are described. Then an example of the Deming cycle within the project is provided in paragraph 5.2. The points of action are enunciated in paragraph 5.3. Paragraph 5.4 gives a summary of the chapter.

5.1. P

The Deming cycle offers the greatest benefit when applied by teams, because that broadens the input of analysis and builds organizational commitment into results [Nicholas, 1998: 45-46]. For the project a voluntary cross functional team is put together, wherein all levels are represented. This means that various knowledge and practical experience are drawn together.

5.1.1. R

The set-up of the project team is discussed first with the head of the sector Paint. The different roles that are necessary are also taken into account. The roles that the members of the project team have are based on the job they have in Akzo Nobel Wapenveld and their personalities. The members of the project team were not given any notice about the role that was intended for them. The project team exists of 12 persons, and the roles are represented below.

Decision maker Decision makers are persons in the organization that have the authority

to make decisions concerning the project, and that can assign employees to it.

Idea initiator Idea initiators bring up ideas concerning the project that are discussed

in the project team. These ideas can become points of action when they are fruitful enough.

Basis creator Basis creators are responsible for bringing the points of action to the employees of the organization who are involved, but not in the project team. The other employees can be colleagues or subordinates. This way all the people that are concerned are kept informed and bear the ideas.

Practice informer Practice informers provide the project team with information about the

Design 42 Janneke Lumer

Executor Executors are the persons that perform or instruct others to do the tasks

that need to be done according to the project team.

Expert Experts are employees that have a point of view on the project that the

other members of the project team do not possess, due to their knowledge of side processes. These persons can come up with change levers and constraints in discussions. They are also able to draw discussions into other perspectives, because they do not possess thorough knowledge of the processes that are directly involved in the project.

Catalyst Catalysts are able to accelerate the processes within the project team. It

must be taken carefully that these persons do not accelerate the processes too much that important issues are overlooked.

Critic Critics have the ability to comment on the project team. This way the

project team and their ideas stay close to reality.

Outsider Outsiders create a situation for the project team for which they have to

formulate their ideas extensively enough for an outsider to understand, and sharp enough not to become incomprehensible.

Facilitator The facilitator guides and keeps track of the processes within the

project team, records ideas and decisions, helps headline and clarify ideas, provides feedback and encourages participation of project team members. Another responsibility is the arrangement of meetings and informing the project team members about the meetings.

The project team serves communication purposes as well. All the employees concerned are involved or have representatives in the project team. This way, everybody knows what the status of the project is. Another major advantage of the project team is that feedback is received easily.

5.1.2. P

Design 43 Janneke Lumer After prioritizing all possibilities of efficiency improvements that came up after the brainstorm sessions and discussing the possible outcomes a number of points of action were put together. These points of action had the most promising expectations or caused the most problematic situations at that time.

5.1.3. C

The points of action can be classified into five performance areas, namely quality, speed, reliability, flexibility and costs. Figure 5-1 shows the areas the points of action will contribute the most to.

Figure 5-1 Contribution of points of action

The performance area quality is not represented, as can be seen in the above figure. There will be a contribution to the quality when the recipes are improved. However, the research conditions state that the FROK will not be improved. Therefore none of the points of action are a major contribution to the improvement of quality.

Design 44 Janneke Lumer

Figure 5-2 Motivator-hygiene model

Through the means of the figure above a classification of the changes can be made. At brainstorm sessions and discussions within the project team numerous ideas for improvement were formulated. These ideas, taken the research conditions into account, are prioritized. The points of action are summarized and classified, in random order, in Figure 5-3:

Figure 5-3 Classification of points of action

Design 45 Janneke Lumer towards working conditions. The reason why only the hygiene factors are used in this classification can be that the motivators are a higher level of motivation for the employees. The basis is set by the hygiene factors, and that is where the improvements stem from. Not all hygiene factors are used: Salary is beyond the scope of this research and the amount of time is too little for improvements on interpersonal relationships with supervisors.

The formulation of the points of action was the start of the Deming cycles. The project team collected data about the points of action. Within the project team it was considered what kind of data should be collected, how it should be collected, and who should collect it. After that the data were analyzed by (members of) the project team. This way the team got involved, the sense of urgency became clear, and the opportunities for improvement were shown.

5.2. D

This paragraph illustrates the way the Deming cycle is interpreted with regard to the project by giving one of the points of action as an example. The improvement of filling times is chosen for this illustration. After that the other points of action are summarized. Further enunciations of the points of action are represented in Appendix 4.

Figure 5-4 acts as a reminder, by depicting the Deming cycle.

Figure 5-4 Deming cycle

5.2.1. I

:

Design 46 Janneke Lumer Do This situation is brought to Short Term Planning Paint. For the scheduling of the

batches a form is used that is called the filling matrix. The employees of Short Term Planning Paint have the assumption that the filling matrix they are working with is not completely correct. They all have some pet theories about the recipes that do and do not meet the standard times on the filling matrix.

Check The employees of Short Term Planning Paint come up with a number of recipes for which the times on the filling matrix are not correct. They recall them from their own memories and experiences.

Act With the employees of two departments feeling that there is something wrong with the

times that are scheduled for the filling in Filling Paint there is some action needed to find out what is wrong. That is why this issue is brought to the project team.

Plan The participants of the project team have a discussion about the different options there are to find out what can be the problem of this particular issue. There is agreement on the use of a form on which the employees of Filling Paint state the batch, the batch size, the packaging units, the amount of employees and the workplace, as well as the time they needed to prepare, fill the batch and clean.

Do Such a form is made and Short Term Planning Paint distributes the forms among the

employees of Filling Paint by adding them to the recipes that are used in the department. The employees of Filling Paint fill in the forms and return them, along with the recipes, to Short Term Planning Paint.

Check The filled in forms are used to make a calculation. In 13 days 192 batches were scheduled to be filled. In a sample of 59 of these batches the actual filling times differ 24.5 per cent on average. This seemed to be large enough for an adaptation of the filling matrix to be advantageous.

Act Therefore a new filling matrix is compounded. On this new matrix the times that are

on the forms that are filled in by Filling Paint are averaged and put together.

Plan Then a strategy is made for the implementation of the new filling matrix. It is agreed by the project team that Short Term Planning Paint should use the new matrix instead of the old one.

Do The employees of Short Term Planning Paint use the new filling matrix for scheduling

Filling Paint.

Design 47 Janneke Lumer Akzo Nobel Wapenveld can perform a check that is similar to the calculation that is made before, but now with new generated data. After that the next steps of the Deming cycle can be made.

5.3. P

Enunciations of the entire Deming cycle of the points of action are represented in this paragraph.

5.3.1. F

Urgent orders are a major disturbance in Filling Paint. When an urgent order is approved by Process and Product Control Paint it has to be filled as soon as possible. This is not an efficient way of working and can even lead to extra cleaning hours, for instance because a batch of which the filling has already started has to be put aside for the urgent order, and afterwards is dried up.

Short Term Planning Paint has kept record of all urgent orders of 22 days, and the reason for being urgent can be categorized in three main causes: capacity of machines and men, short delivery times for customer orders, and planning of packaging products and raw material and forecasts.

One way of dealing with the urgent orders is simply accept that they exist, and that they disturb the process. To relieve the burden of the urgent orders for the employees that fill the paint, the ‘urgent’ stickers can be left of the orders. Priority can given by numbering the orders in the order that they need to be filled. This way psychological pressure will be taken away from the employees of Filling Paint; only the orders that are approved by Process and Product Control Paint and need to be filled during the day will be seen as an urgent order. Within a few months a scanning system will be made available in, among other, the Filling Paint department, and with the introduction of this scanning system this possibility should be discussed.

Design 48 Janneke Lumer available for filling, they have to be filled the next day from 06h00 to 09h30. Exceptions are the direct batches that are always approved the first time, and urgent orders that can be filled without extra steering capacity. It is agreed that the group leaders take care of the fact that all necessary items are physically available at Filling Paint, and that a batch that has been started already does not need to be stopped in order to fill an urgent order immediately.

Results of this measure are not available yet. It is possible that during the first period of time that this manner of scheduling is implemented some customers have to wait longer than usual for their paint, because batches that are approved by Process and Product Control Paint can be filled the next day instead of the same day. However, it is reasonable to say that this new way of scheduling makes it possible to work more efficiently, and that there can be some batches gained up, which makes urgent orders an exception rather than a rule. The following steps of the Deming cycle must be performed by Akzo Nobel Wapenveld.

At Akzo Nobel Montataire the decision was made to have a fixed three day rolling schedule. Although this required a change in mindset and behaviour, the three day schedule became a good tool for short, stable and trusted lead time for their customers. The scheduling adherence went up from 50 per cent to above 90 per cent, and even zero out of stock for their factory [Akzo Nobel Decorative Coatings, 2007]. Although Akzo Nobel Wapenveld is not Akzo Nobel Montataire, it is reasonable to say that some of the improvements that were accomplished by Akzo Nobel Montataire could be accomplished by Akzo Nobel Wapenveld in a similar way.

5.3.2. I

Decisions are taken based on a number of data. When those data are incorrect, a wrong decision can be taken, which can cause radical consequences. Reliable data are therefore a condition for taking the right decisions. This applies to logistics as well. Data reliability is a basic condition for logistical improvement [Brevé, 1990: 111].

Design 49 Janneke Lumer In 13 days 192 batches were scheduled to be filled. In a sample of 59 of these batches the actual filling times differ 24.5 per cent on average. This seemed to be large enough for an adaptation of the filling matrix to be advantageous.

For getting the actual filling times a form was filled in by the employees of Filling Paint that stated the batch, the batch size, the packaging units, the amount of employees and the workplace, as well as the time they needed to prepare, fill the batch and clean. The data for the working place and packaging unit were averaged in order to create an actual filling matrix.

5.3.3. U

Batches that stem from the WOG list and are approved by Process and Product Control Paint create a disturbance in Filling Paint when they are an urgent order. There would not be a disturbance if those batches were approved within the throughput time that is used for scheduling.

When those throughput times increase, the chance that a batch, including adjustments, will be approved within that time increases as well. This will result in a stabilized work climate at Filling Paint. A disadvantage of increasing throughput times is that it leads to earlier release of orders, which causes production capacities to become occupied and waiting times to increase [Brevé, 1990: 20]. Therefore the choice was made to examine this opportunity only for a small range of recipes, namely the ten most unstable runners. When these recipes will be made stable in the future, the throughput times should decrease accordingly.

For these ten recipes the last ten times that they were produced were examined. Of those ten times the scheduling adherence of Filling Paint was 41 per cent. When the throughput times of those ten recipes are increased with one day, the scheduling adherence can be 61 per cent. This is an increase of 49 per cent. However, when the throughput time is increased with one day, the used machine capacity will increase as well. The machine capacity that is unnecessary used, i.e. batches occupy the machine for storage, will increase from an average of 0.13 days per batch to an average of 0.53 days per batch.

Design 50 Janneke Lumer

5.3.4. U

The definition of production control as the objective to ensure that future troubles are discounted [McKay & Wiers, 2004: 35] was the foundation of this point of action. Production Paint is scheduled based on the available capacities. Filling Paint is responsible for the filling of the packaging products on the right date. It has been tried to take the capacities into account, but there is not much margin. This is, apart from the uncertainty of the time of approval of the batches, a major cause of the fluctuations in the amount of work that needs to be done. For Filling Paint to be more manageable, the future peaks should fill the present pits, instead of filling future pits with present peaks, as is the way of working right now.

To test whether this way of working fits in Filling Paint a buffer of approved material is placed in a buffer. The material that is chosen is a runner which needs to be filled in decorated packaging product, so that there is not much unplanned work needed to be performed for filling the batch unscheduled. When Filling Paint runs out of work, this batch can easily be filled, and it does not need to be in stock for a long period of time. The batch needs to be scheduled in Filling Paint, because if the department does not have the time to fill the batch in front, it has to be filled before a certain date to get it to the customer at the right time; then the batch is considered a regular batch.

There is not any information about this new way of working available yet. This point of action is still in the do step of the Deming cycle. The last two steps must be performed by Akzo Nobel Wapenveld.

5.3.5. P

P

To provide Short Term Planning Paint with more possibilities of efficient scheduling it was proposed that Production Paint could fill the direct batches. Direct batches are batches that need to be filled almost immediately after they are produced. When Production Paint finishes such a batch, Filling Paint needs to come down to the department of Production Paint to fill the product. The batch is on the schedule of that day, only the time of filling is not yet known, because the exact time of Production Paint to be finished is not known.