96
Appendixes Contents
Appendix 1 - Organizational structure ... 97
Appendix 2 - More information on the printing department ... 98
Appendix 3 - S.M.E.D. Analysis of a printing press setup ... 103
Appendix 4 - S.M.E.D. Analysis of a printing press feeding roll change ... 106
Appendix 5 - Calculations for the printing department... 108
Appendix 6 - More information on the winding department... 113
Appendix 7 - S.M.E.D. Analysis of a winding machine setup... 116
Appendix 8 - Calculations for the winding department ... 118
97
Appendix 1 – Organizational structure
Directing Manager J.K. Brinkman
Commercial Director E. Sessink
Agents 3 Sales Manager
(Benelux) B. de Jonge
Sales Manager (France)
M. Aridj Sales Manager
(Germany) W. Rettel
Sales Manager (Southern Europe)
j. Herraiz
Sales Support Manager J. van de Torre
Sales Support Team
6 Financial Director
W.J. de Weerd
Administration 2
Automation 1
Marketing &
Development Manager M. Van Dop
Sample Room 1 Studio
2 Production
Manager N. Strijker
Foreman Machine Shop
1
Employees Machine Shop
3 Foreman Printing
Deparment 3
Employees Printing Department
10
Overman Wrapping Deparment
3
Employees Wrapping Department
29
Purchasing Director J.W. Prins
Logistics M. Nijmeijer
Employees Stockroom
6
Planning F. ten Caat
Assistant Planning 1 Purchasing
M. Bolmer
98
Appendix 2 – More information on the printing department A2.1 A flexographic printing press
The following figure depicts a simplified sideways view of a printing press.
The process of printing the paper consist of several steps:
Step 1: the paper is fed from a large feeding roll in to the machine where it is transported through several axels to the printing axel. The number of axels influences the tension of the paper and thus influences the quality of the print.
Step 2: At the print axel the paper goes through several ink decks, in this case six, where the paper is printed. Each deck contains a print sleeve that prints a certain colour onto the paper and by combining multiple decks a design is created. Between every ink deck there is a small blower in order to dry the ink for the next ink treatment.
Step 3: After the paper is printed it is led through a dryer; the dryer has temperature of around 90°C.
This step is needed so that the paper does not stick together when stored on the paper storage roll.
Step 4: Quality control is a machine that makes a photo shot of the design and lets the operator see if the printing is of a good quality. Quality control is also performed by tearing away a piece of the printing paper and examining by eye.
Step 5: After the dryer the paper is cut into the desired width, this can be a multitude of different width. On each side of the printed-paper a small strip of paper is cut away this paper is automatically sucked away and dispensed into the garbage disposal.
Step 6: Finally the paper is stored onto a storage roll. When a storage roll is full the machine is capable of automatically switching to an empty roll.
99 A2.2 Black box representation of the printing process
For an uninterrupted process the following material and attribute flows must come together.
100 A2.3 Gantt chart of the tasks structure
Figure A2.3 shows a Gantt chart for the task structure of a printing press operator.
This Gantt chart shows a possible time distribution for a printing press operator when printing a certain order. The order y, shown here, is an order of 45000 meters run at 250 meters per minute.
When the machine is producing the process has to be monitored constantly, this also includes quality checks of the produced product, which are usually performed during idle time. The task marked as other is a composition of idle time and workplace maintenance.
101 A2.4 Production Costs
Material costs are the only costs that are regarded variable costs; all other costs are regarded as constant costs. Formula 4.1 for production costs as stated in paragraph 4.2.1 can thus be stated as:
M C N
C =Ccon + m (A2.1)
Where:
C = total cost per unit Ccon = constant cost Cm = material cost per unit M = material efficiency
Constant costs
The annual constant costs for the printing department are € 2.270.000. The following figure displays the distribution of these costs based on data from preceding years (see figure A2.4).
The output for the 22nd week of 2005 to the 21st week of 2006 was around a 100 million meters at 1,40 meters wide, this is also the forecasted output for this year. The constant cost per meter are thus 2.3 cents.
Material Costs
Material costs consist of ink costs and costs of the paper. Ink costs are 3 euros per kg for the standard inks, i.e. the water-based inks. The gold and silver inks that contain metal particles are more expensive but because most designs use them in very low quantities they are generalised in the production cost calculation. The standard amount of ink used is 4 kg per 1000 square meter; this is for the standard material. Other materials use more ink per square metre but designs using non standard paper usually have unprinted parts so ink use levels out at approximately 4 kg per 1000 square metre also. At 1.40 meters width the cost for ink is thus 16.80 euro per 1000 metre
The cost for paper differs per type of paper; figure 2.5 shows the cost per meter for the most common materials.
102
Using the annual usage of materials the average annual cost per meter is calculated, which amounts to 5,1 cents per unprinted meter. Including the cost for ink the total material costs for printed-paper is 6,78 cent.
Hoomark uses a waste percentage of 3,5% for the printing department, which is a material efficiency of 0,966. The total average cost per printed meter then are 9,32 cents.
103
Appendix 3 – S.M.E.D. Analysis of a printing press setup Step 1 – Identify internal and external tasks
The following figure shows all tasks needed to perform a printing press setup, all tasks are explained in paragraph 5.5.
This leads to a total internal setup time, time that the machine is stopped, of 100 minutes, as can be seen in the following figure.
Step 2 – Convert internal to external tasks
As can be seen in figure A2.2 the distinction between internal and external tasks is already present, there is no improvement possible by more performing external tasks while the machine is running.
Also al tasks designated internal in figure A2.1 need to be performed while the machine is stopped, there is no improvement possible here.
104 Step 3 – Improve all aspects of the setup operation Improve internal setups
Parallel setup tasks
When enough assistance is available the ink decks can be cleaned, the print axels can be replaced and new materials placed simultaneously. Currently this only happens on occasion when three persons are available to perform a setup. By adding an extra person per shift to the printing department the simultaneous performances of these tasks can happen more frequently reducing the setup time by 20 minutes.
Attachment devices
Two of the three printing presses have manually operated bolts to fasten the printing axels; this means 2 bolts per axel. With 6 print axels this means 12 bolts per machine. The task of replacing the printing axels requires the unfastening of an average of 8 bolts and when axels are replaced the fastening of these bolts. By replacing these bolts with a simpler attachment device, such as one-turn bolts, this task can be reduced with an estimate of 5 minutes.
Operating machinery
With two of the presses the crane that moves the printing axels in and out of the printing press operates mechanically in the vertical direction and manually in the horizontal direction. With the other press the crane also moves mechanically in the horizontal direction, which is a much slower process.
By either replacing this crane with one that operates manually in the horizontal direction or modifying it so that it moves faster, the time needed for the task of replacing the print axels can be reduced.
Abolish adjustments
Trial and error runs are needed to produce products of the right quality. The printing presses are able to align the print axels to a certain degree but the perfect aligned needs a press operator. Because the final colour of an ink is influenced by many factors this also needs final adjustments by the press operator.
Improve External Setups Material storage
The printing sleeves needed for new orders are stored in front of the printing presses, new materials are stored next to the printing presses and ink is dispensed behind the printing presses. No substantial improvement is needed in this field.
Material Handling
Print sleeves are stored in cardboard tubes, which can easily be carried manually. Print axels are placed upon carts designed for this purpose, each cart can carry four axels and each printing press has two carts at its disposition. The paper feed rolls are transported using pump wagons designed for this purpose. No substantial improvement is needed in this field.
105
106
Appendix 4 – S.M.E.D. Analysis of a printing press feeding roll change Step 1 – Identify internal and external tasks
The total internal setup time is 10 minutes, as can be seen in the following figure.
Step 2 – Convert internal to external tasks
By adding an extra axel, this means two feed roll axels per press, to the procedure the task of removing the axel from the old roll and placing it into the new roll can be converted to external tasks.
This reduces the time with 2,5 minutes. This is only valid for two printing presses as one printing press uses a different system and the tasks of removing and placing the axels is not necessary.
Step 3 - Improve all aspects of the setup operation No further substantial improvements have been determined.
107
108
Appendix 5 – Calculations for the printing department
All percentages are based on an annual output of 100 million meters at 1,40 meters wide, a total annual constant cost of € 2.270.000 and an average production speed of 175 m/min.
A5.1.1 adding an extra shift
38 × 48 × 3 × 0,695 ≈ 3800 hours
Adding an extra shift will mean an average of 38 hours per week extra planned production time. With 48 production weeks a year and 3 machines and an availability performance of 69,5%, this means an increase in possible actual production time of 3800 hours. This is an increase in capacity of 40 million meters
3800 × 175 × 60 ≈ 40 million
With an increase of € 265000 of annual constant cost the decrease in constant cost per meter is 0,5 cent
2270000/100000000 - 25350000/140000000 ≈ 0,005 euro
A5.1.2 Continuing work during the summer holidays
Three weeks of planned production is 3 shift of 40 hours per week with 3 machines, which is:
3 × 40 × 3 × 3 ≈ 1000 hours
Extra personnel costs with 1 extra worker per shift, 1 week of training prior to the holiday period and an hourly wage of € 15,- are:
3 × 40 × 4 × 15 ≈ 7200
With 2 extra workers per shift this amount is doubled
A5.1.3 Outsource the weekend stop
The hour rates offered by Rimato B.V. were € 130,5 for a 3 person crew and 171,75 for a 4 person crew. Based on the average length of a weekend stop of 6,5 hours and 48 weeks per year the annual costs for a 3 person crew are:
48 × 6,5 × 130,5 ≈ 41000 and for a 4 person crew:
48 × 6,5 × 171,75 ≈ 53000
109
The high season is considered to be 24 weeks of the year and thus half of the hours currently used for the weekend stop is acquired as planned production time. This results in an increase in actual production time of 300 hours and thus an increase in output of 3.1 million meters.
With an increase in total constant cost of € 26000 the decrease in constant cost per meter is:
2270000/100000000 - 22960000/103200000 ≈ 0,005 euro
A5.1.4 Invest in a digital printer
The 450 hours of extra actual production time is calculated with an estimated increase of 200 hours of extra normal setup time. This results in an increase in capacity of 4,7 million meters annually. The current constant cost per meter is 2,3 cents. In the calculation of the net present value the constant cost of the capacity increase is used as the net cash flow, which is:
4700000 × 0,023 ≈ 108000 euros
A5.1.5 SMED analysis of machine setups
A 25 % reduction of setup time results is 590 hours. Because this reduction influences the availability measurement, the percentages calculated in chapter 6 are not valid for further calculation. The new percentage of actual production time is calculated by subtracting the 590 hours from planned production time and from setup time and calculating the new distribution percentages. This results in an availability of 72,6 %. This means that from the 590 hours of 430 are actual production time.
Extra personnel costs are:
52 × 40 × 3 × 15 ≈ 90000
where 52 is the number of weeks, 40 the number of hours worked per week, 3 the number of workers need and 15 the hourly wage.
Based on SMED analysis, 4/5 of improvement is due to the extra worker and 1/5 due to the machine improvements.
4/5 × 430 × 175 × 60 × 0,023 – 93000 ≈ -10000
Meaning that adding an extra worker does not improve performance
1/5 × 430 × 175 × 60 × 0,023 – 10000 ≈ 10000 Machine improvements do improve performance.
110 A5.1.6 SMED analysis of feeding roll replacement
The increase in planned production time is:
709 × 0,25 × 2/3 × 0,54 ≈ 64
Where 709 is the current amount of material handling time, 0,25 is the improvement made by this proposition, 2/3 the factor taking in to consideration that only 2 out of 3 machines make use of axels and 0,54, or 54%, the percentage of large enough orders.
Using the same method as described in the previous paragraph, the new availability performance is 69,8%. This means 45 hours are actual production time.
A5.2.1 Optimize design assortment
The calculations for average speed increases are based on the difference between maximum production speed of a printing press and the speed at which a certain factor limits the production speed.
If 70 % of all output is printed at 200 meters per minute its influence on average production speed will be as follows:
0,7 × (320-200) ≈ 83 m/min
The influence of other factors is determined to be around 40 m/min. The new average production speed thus becomes 320 – 123 = 197 m/min, which is an improvement of roughly 10 %
A5.2.2 Order-length
The same method used above is used to calculate the speed increase when an extra worker is added to each shift.
This reduces the influence of small orders from 20 m/min to 12 m/min. The influence of high speed orders was around 4 m/min this is reduced to 0. resulting in an increase of average production speed of 12 m/min, which is an increase of 6,75 % (12/175)
This leads to a reduction in constant cost per meter of:
2270000/100000000 - 23600000/11000000 ≈ 0,0015 euro
111 A5.3 Invest in new machinery
The increase in capacity is calculated using the current actual production time and production speeds and the possible actual production time and the possible production speeds if a new printing press was bought.
The following table shows the current capacity and the capacity with new machine.
In the second table it is assumed that the new machine makes all the sampling orders, this is the reason that the available production time for the other machines is higher. The higher amount of available production time for the new machine is based on the fact that the new machine has less to no downtime due to machine setups and material handling. The actual production speed of the new machine is based on the same speed efficiency as the other machines.
The needed output increases are calculated using the net present value formula. Using a constant cost of 2,3 cents per meter and an average profit margin of 17 %, which is the current average profit margin for Hoomark. To calculate the if the investment adds value to the company both the constant costs and the profit margin are used for the net present cash flow. To calculate if the investment improves the performance for the cost objective only the constant costs are used. The needed increase in output is calculated through trial and error.
With an investment cost of 1,5 million an annual net present cash flow of €244.118 is needed ) 0
1 , 0 1 ( 244118 1500000
10
1
+ = +
−
= t
t
With a profit margin of 17%, which is 1,6 cent per meter and a constant cost of 2,3 cents the needed increases in output are.
244118/0,039 ≈ 6300000 244118/0,023 ≈ 10500000
With an investment cost of 1,5 million an annual net present cash flow of €569.609 is needed
112 ) 0
1 , 0 1 ( 569609 3500000
10
1
+ = +
−
= t
t
569609/0,039 ≈ 15000000 569609/0,023 ≈ 25000000
113
Appendix 6 – More information on the winding department A6.1 Internal workings of a winding machine (converter)
The following figure depicts a simplified sideways view of a winding machine, also called a converter.
The winding machine performs the following steps:
Step 1: The printed paper is fed from a storage roll produced in the printing department.
Step 2: The relevant inlay material is fed into the machine. In case of an inlay sheet this is fed from an feeding roll, tubes are fed using a dispenser. When no inlay material is used this step is not performed.
Step 3: The winding machine cuts the paper and the inlay material into the desired width and winds it into a roll.
Step 4: The roll is transferred to the packing section of the machine where a shrink foil is put around the roll, this shrink foil is not yet tightly wound around roll.
Step 5: The roll is then transferred into a heater which shrinks the foil to the appropriate size
Step 6: Coming out of the heater a label is put on to the roll and it is dispensed onto the packing table.
A6.2 Black box representation of the winding process
For an uninterrupted process the following material and attribute flows must come together.
114 A6.3 Ghantt chart of the task structure
This Ghantt chart shows a possible time distribution for a worker of the winding department. Only the performing tasks are included in this Ghantt chart because of the inconsistent character of the preparing tasks. It must also be noted that the successive placing of material feeds is not common unless the winding machine is used for the first time. In other cases a material feed is replaced when the previous has run out.
115 A6.4 Production costs
Using the same formula used in appendix A2.4, formula A2.1, the production costs per wound meter can be calculated.
M C N
C =Ccon + m (A2.1)
Where:
C = total cost per unit Ccon = constant cost Cm = material cost per unit M = material efficiency Constant costs
The annual constant costs for the winding department are € 2.770.000. The following figure displays the distribution of these costs based on data from preceding years (see figure A6.4).
The output for the 22nd week of 2005 to the 21st week of 2006 was around 180 million metres. The constant cost per meter are thus 1,5 cent per meter.
Material costs
The material costs for printed paper is 9,32 cents per meter at 1,40 metres wide (see paragraph A2.4), The average width used by the winding department is 68 centimetres which means the average cost per wound metre is 4,52 cents. Other material costs, such as inlay sheet cost, tube costs and label costs are not considered here. The waste percentage used by Hoomark for the winding department is 2,5%, the total average cost per wound meter then are 6,14 cents.
116
Appendix 7 – S.M.E.D. Analysis of a winding machine setup Step 1 – Identify internal and external tasks
Because the tasks needed to be performed and therefore the time needed for each machine setup depends on the type of inlay material being used and what needs to be modified the average setup time is difficult to establish. Therefore all tasks, internal and external, are mentioned and categorized under four main task, namely
- changing the width - changing the diameter - changing the length - final adjustments
The type of inlay material for which this tasks needs to be performed is also mentioned.
It must be mentioned that the task of replacing the wind head is only occasionally needed.
117 Step 2 – Convert internal to external tasks
The feeding rolls are usually already present at the winding machine or near the winding machines.
All machine parts mentioned above are however stored in the middle of the winding department in semi sorted crates. And during a machine change where the parts are needed the operator walks from and to this storage several times while the machine is not in operation. Because these parts are relatively inexpensive multiple copies of each part can be made available, which than can be carefully sorted, labeled and stored with each machines or on so called setup carts, which hold all needed tools and parts. This reduces the time needed to get and find the right part and also reduces the change that a wrong part is used during a setup.
Step 3 - Improve all aspects of the setup operation Improve internal setups
Parallel setup tasks
Most tasks can be performed parallel to each other, this however who require more personnel for the setup task, which therefore can not perform other tasks.
Attachment devices
The winding machines make use of several different types of attachment devices, which are operated with different kind of tools. By standardizing the attachment devices the need for different tools is removed. Some bolts might be changed to bolts that can be fastened and unfastened manually or changed to one turn bolts. This al reduces the time needed to perform task that required a part to be modified, replaced or adjusted.
Abolish adjustments
On the winding machines there is hardly any marks present that show certain settings. By adding markers that comply with certain settings the time needed for adjustment task can be shortened. Also the time needed for final adjustments can be shortened.
Improve External Setups Material storage and handling
As mentioned above the storage of feeding rolls is already near or next to the machine and the storage of machine parts is not. The handling of feeding rolls is done by cranes and standard lift wagons.
118
Appendix 8 - Calculations for the winding department
All percentages are based on an annual output of 187 million meters, a total annual constant cost of € 2.770.000 and an average production speed of 100 m/min.
A8.1.1 Adding an extra shift during the high season
The production hours minus breaks is 37,5 hours per week. With 12 machines and an availability performance of 81% the actual production time and increase in capacity for 16 weeks is:
16 × 37,5 × 12 × 0,81 ≈ 5800 5800 × 100 × 60 ≈ 35 million and for 22 weeks
22 × 37,5 × 12 × 0,81 ≈ 8000 8000 × 100 × 60 ≈ 48 million
A8.1.2 Use unused capacity
If all unused capacity is used the revision would have a larger influence on planned production time than it currently has. Based on a week downtime per machine this results in a 1000 hours extra revision (120 × 12). Taking into account weekend stop and breaks the maximum available planned production time is approximately 20000 hours.
22000 – 1000 – 5,5% × 22000 ≈ 20000
The average production speed of gift wrap paper per minute of planned production time is 81,7 m/min.
The available capacity is thus:
20000 × 60 × 81,7 ≈ 100 million
The average production speed of gift wrap paper using an inlay sheet per minute of planned production time is 92 m/min. The available capacity for schoolbook cover paper is thus:
20000 × 60 × 92 ≈ 110 million
The average production speed of foils per minute of planned production time is 43 m/min. Which is around 50 m/min actual production speed (43/0,81)
A8.1.3 SMED analysis of feeding roll replacement
The current material handling time is 3000, an improvement of 80% is thus 2400 hours. By subtracting this from planned production time and material handling the new availability performance becomes 86,7 %. The increase in actual production time is thus approximately 2000 hours.
The annual working hours per worker is 48 × 37,5 = 1800 hours
119 2400/1800 = 11/3,
The increase in personnel cost then becomes 2400 × 15 = 36000, where 15 is the hourly wage.
A8.2.1 Upgrade packing section
The calculations for average speed increases are based on the difference between maximum production speed of a printing press and the speed at which a certain factor limits the production speed.
As can be seen the influence is reduced with 34 m/min.
120 A8.2.2 Automating the sorting process
Automating the sorting process removes the human restriction on production speed, which reduces the max average production speed with around 16,2 meters/minute.
The influence of other factors is however increased when the process is automated.
The influence of material type increases with 2,15 m/minute. The influence of inlay material increases with 3,9 m/min. The influence of width increases with 0,22 m/min.
The speed increase is thus 16,2 – 2,15 – 3,9 – 0,22 ≈ 10 m/min
In the current situation the average personnel requirements to operate the winding machines is 10.
Based on personnel requirements during high an low season and machine usage. In the new situation this would be 4 workers per shift, which is a decline of 6 workers. With an estimated need for 3 workers to operate the new process the average decline is 3 workers per shift.
The cost for these workers are:
52 × 40 × 3 × 15 ≈ 280.000
A8.2.3 Increase cardboard tube storage on the winding machines
Figure A8.2 shows the influence of inlay materials on production speed in rolls/minute
By increasing the tube storage and refilling it using a lift truck this influence is reduced to zero. The influence of this factor in m/min is:
8,48% × (129,7-16,2) ≈ 9,5 m/min
the 129,7 m/min is the maximum average speed due to toll lengths and the 16,2 m/min is the influence of the human factor resulting in an maximum average production speed of 113,5
