Appendix 4 Pallet label information

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|I|

Appendices

Appendix 1 Glossary... II Appendix 2 Information sources within Impress...III Appendix 3 Product overview ...V Appendix 4 Pallet label information...VI Appendix 5 Used systems ...VII Appendix 6 Customers demands...VIII Appendix 7 Explanation current pallet label ...X Appendix 8 Organization chart...XII Appendix 9 Plant layout ...XIII Appendix 10 Material flow... XIV Appendix 11 Fluid, Methec explanation... XV Appendix 12 Information about material consumption... XVII Appendix 13 Differences in planning... XVIII Appendix 14 Blockades and scrap flow ... XIX Appendix 15 Actor Activity Diagramming legend... XX Appendix 16 System requirements... XXI Appendix 17 GST label printing solution...XXV Appendix 18 Net Present Value calculations ...XXVI

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|II|

Appendix 1 Glossary

Activity An activity is a unit of work

APC “Advanced Production Control” or “Advanced process control”

Benefit (Savings): An advantage as result of applying a manufacturing execution system. Savings can be expressed in time, productivity, value (money).

Benefits can also be intangible.

BPCS SSA Global, Business Planning Control System, Impress’ ERP system.

DCC (IBM) Data Collection Connection

EDI “Electronic Data Interchange is the computer-to-computer exchange of structured information, by agreed message standards, from one computer application to another by electronic means and with a minimum of human intervention.” (source: http://en.wikipedia.org/wiki/EDI)

Extranet “An extranet is an external communications system that uses the internet and is shared by two or more organizations. Each organization moves certain data outside of its private intranet, but makes the data available only to the other companies sharing the extranet” (Daft, 2004, page 302)

Investment: Costs for hardware, software, training, installation, implementation, and maintenance.

MES Manufacturing Execution System

MIS (central Management Information Systems department of the Impress group)

Palletizer Part of the line where the cans are automatic piled on pallets

Process “A series transformations in throughput leading to changes of an input element in place, form, size, function, attributes or other characteristics.” (In ‘t Veld, 1998)

SSCC Serial Shipping Container Code, standard for the identification, registration of the flow of goods

WM Warehouse Management

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|III|

Appendix 2 Information sources within Impress

Purchasing

−

Planning end/can making

−

Planning printing/lacquering

−

Printing lacquering

−

Reception, shipping coil & sheets

−

Supply Chain Management

− Controlling

−

− Sales

−

Quality Department

−

Manufacturing

−

(4)

|IV| Shipping

−

Information Technology

−

Other Impress locations

−

(5)

|V|

Appendix 3 Product overview

Cans for sausages, ready meals, fruit, vegetables, coffee, peanuts, cappuccino, milk powder, tobacco, beer (5 litres), wall paint (15 litre), crème, etc.

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|VI|

Appendix 4 Pallet label information

Information that could be important on a pallet label:

− Product name

− Quantity

− Production date

− Production time

− Item code for Impress

− Description BPCS

− Customer code

− Customer name

− Batch/Lot/Rank. Manufacturing order /Production ranking

− SSCC code Serial Shipment Container Code (pallet identifier)

− Line name/number

− Packaging method

− Type of coil, ink, lacquer, ends, etc.

− Kind of packaging material

− Plant name

− Plant location

− Machine name/number (nonsignificant for Impress)

− Machine calibration (nonsignificant for Impress)

− Persons that worked on the item (nonsignificant for Impress)

− Final responsible person (nonsignificant for Impress)

− Expiry date (nonsignificant for Impress)

− Product weight (nonsignificant for Impress)

− Product colour (nonsignificant for Impress)

− Product size (nonsignificant for Impress)

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|VII|

Appendix 5 Used systems

Systems used

Department System: Used for:

BPCS -Making orders, orders are printed and faxed to the suppliers.

Ordering raw materials, tinplate, compound, lacquer.

-checking inventory level Purchasing

Marrakech Ordering directly at the supplier. Materials without item numbers, only commodities.

BPCS Booking in orders

GST Creating moth plan, day plan Planning

Approach Creating rolling plan Sales BPCS Booking in orders Warehouse Access Locations management

Reception Fluid Inserting material information.

Shipping BPCS Printing delivery lists.

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|VIII|

Appendix 6 Customers demands

Meica,

The next demands are in force.

- The batch number has to be recognized as identification number.

- The EAN code must be in EAN (128) and minimally including the next information:

− supplier number

− batch number

− production number

- In the delivery note the Meica order number has to be included.

The information on the packaging has to contain:

− Identification information

− Meica order number*

− Product name

− EAN code 128

− Meica material number*

− batch number

− Quantity or weight

Hilcona,

Hilcona needs (or wants) a standardized item number, for the traceability of foods. All articles have to be unequivocal identified.

An article can be in packaged in different ways. For Hilcona only the packaging level used in the warehouse and the production is relevant. All articles on this level need to have an unequivocal article number and a GTIN-number in barcode and normal text. Necessary data are:

− Label information for Hilcona:

− SSCC – shipping number. *

− Inhalt – EAN number of the ordered article

− batch number

− Quantity

− Order number*

PMI (Philip Morris International)

Item identification label has to contain next information:

− PMI item code*

− Purchase order number and call off or line item

− Vendor name

− Manufacturer code

− PMI material specification code (defined by production centre) *

− Item description (product name)

− Quantity

− Vendor traceability number or Batch number

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|IX| The pallet label has to have the design as it is described by PMI.

Nestlé

The delivery note has to contain the next information:

− Supplier name

− Account number*

− Delivery note number

− Delivery note date

− Customer name*

− Nestle order number or Nestle contract number (kontrakt nummer), Nestlé call number (Abruf nummer) *

− EAN number and EAN name*

− Nestle material number and name, by Nestlé specification

− Delivery quantity

− Number of pallets and weight per pallet

− batch number

The pallets have to contain the next information

− Supplier name

− EAN number and EAN name

− Nestlé material number and name, by Nestlé specification

− SSCC/NVE (Nummer der Versandeinheit)

− Quantity, (weight)

The pallet label has to have the design as it is described by Nestlé.

Böklunder Plumrose (Würstchen)

Every pallet needs to have a material number of Böklunder Plumrose (BP).

The delivery papers have to contain the material number (of BP) and the order number (of BP).

The labels have to be build up according to EAN 128, and need to contain the next information:

01=EAN

15=MDH (does not apply) 10=batch number (of Impress)*

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|X|

Appendix 7 Explanation current pallet label

Pallet label

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|XI|

Palettenetikett Erklärung

FLH0029001 F Dose

L Lackierter Artikel

H Rund

F073000110QMN7051LW/-

$S F Dose

073 Durchmesser oben

000 Durchmesser unten

110 Höhe

QM Abkürzung für die Packanweisung N7051 Code legt Sickung, Rumpfhöhe ets. Fest

L Lack

W Innenlack Weißlack

/ Trennzeichen

- Außenlack, hier blank

$ Besonderheit

S SRP Deckel = Stahlaufreißdeckel 2904 PE Stück Anzahl Dosen pro Palette

PE Packeinheit

073 000 110 073 Durchmesser oben

000 Durchmesser unten

110 Höhe

31 101 21 03 2 1 3 31 Werk Weißenthurm 101 Produktionslinie

21 Produktionstag im Monat

03 Produktionsmonat

2 Produktionsjahr

1 Fertigungsschicht

3 Fertigungsstunde in dieser Schicht

73 / 110 SRP freier Text

359919 Fertigungsauftragsnummer

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|XII|

Appendix 8 Organization chart

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|XIII|

Appendix 9 Plant layout

TNV

Railway COIL DEPTPRINTING DEPTCOATING DEPT PRESS DEPT 2PRESS DEPT 1 BODY DEPT WA REHO USE

ENDS

WEIßENTHURM PLANT LAYOUT OFFICE OFFICEOFFICEOFFICE SOCIAL BUILDING

Rhein WAREHOUSE CANS

qu

ququ quLABOR

OFFICES

WA RE HOUS E COIL S

GATE 1 GATE 2

KölnKoblenz

N CUSTOMER SERVICE WHITE CAP July 1999

Mainstreet

314

310041061052011

012 013

014 015

471474 475 482

472 347 3xx

401 407

405 404 406334 576503412

106 103 101 100

256

140

255

253 133

3xx

SERVICE electric. / mechanical

SALES OFFICE WHITE CAP

WAREHOUSE PACKAGING MATERIAL 042062

135134132 P106

P103

P101

P134

P135

P133 P100

P140

P132

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|XIV|

Appendix 10 Material flow

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|XV|

Appendix 11 Fluid, Methec explanation

Fluid

In three Impress plants (Leeuwarden, Deventer, Norwich) a workflow management system called Fluid is implemented. The supplier of the Fluid system is Transworld Sat (TWS), a small, French company. Co-operating with TWS has some disadvantages. The company is small and has just a few Fluid specialists. Also Impress has maintenance contracts with TWS, and so TWS has always to be involved in changes and updates. This makes the system very expensive.

Disadvantages of the Fluid system itself are that the system is not real time. This is caused by the interface between the BPCS system and the Fluid system. This interface is created by an external party (Cap Gemini, France). Building this interface was quite a job. It did cost a lot of money to get it working. The connection between BPCS and Fluid takes place once per two hours. Figure 1 shows the relation between BPCS and Fluid schematically.

Mas ter d ata

Ord ers

Tran sact ions

Figure 1 Relation between BPCS and Fluid

In 2001 it is decided to drop TWS as a supplier for new systems, and to start looking for another supplier. Officially the investments in the Fluid system are stopped as well. But in reality Impress is still investing in the system.

Fluid is a workflow management system. It’s build up of a hardware part and a software part.

The hardware is the Fluid server, the scanners, the touch screens, label printers, etc. The software processes the collected information, saves it on the server, synchronizes it with the BPCS system (with the interface) and makes the information accessible for the users. This information can be about production speed, material flows, inventories, etc. The information makes full tracking and tracing possible. In Leeuwarden is radio frequency technology used for the data transmission between collecting devices and server. So the information in the Fluid server is always up to date. In Deventer no radio frequency technology is used. The collected data are stored on a small data device and transferred to the system with a kind of docking station. This system works well. The risk on loosing data is bigger than with the use of a RF system, but according to the systems support manager of plant in Deventer it causes no real problems.

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|XVI| one push on a button. With Fluid in Leeuwarden a warehouse precisely of 99.8 percent is possible. In Hoogeveen this is currently 95 percent. This is a substantial benefit.

Methec

In 2003 “Methec b.v.” is selected as the supplier for a MES system for the next reasons [8]:

− Practical attitude, “no-nonsense”

− Solution provider, consultancy, engineering, implementation and service.

− Brand independent (hard- and software)

− More than 40 years experience

− 24-hour after sales services

− About 50 employees

− Already experienced with the ERP BPCS

Methec delivers is a real-time system. (Every night it is down for two hours due to a BPCS downtime, but a buffer module has to obviate this problem).

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|XVII|

Appendix 12 Information about material consumption

Cut sheets (tin plates that can’t be cut in Weißenthurm or for some other reason are bought as sheets) arrive in packets of about 2 tons (for example a packet of 2135 kg), 12 packets in a truck, so 24 tons a truck. On average 5 trucks are arriving in a week. Coil is cut on order.

Normally the coil is on stock in the “warehouse coils” for 2 or 3 days before it is cut.

Sometimes longer, sometimes shorter.

On average 30 coils are received on one day. Coils to 10,5 ton, most coils are about 8 to 10 ton. The yearly tin plate consumption is 52.000 ton

1 coil = ca. 3000 tot 9500 sheets (dependent of the thickness and coil weight)

1 sheet = 3 to 36 cans. (to 10*10=100 ends) (3*6=18, 5*6=30, 6*6=36)

Thickness of thin plate= 0,014 0,034 0,042 etc. About 10 sizes are frequently used in the range of 0,014 to 0,042 mm.

The thicker the coil the more the waste.

The first ten and the last ten meters of the production is waste (coil cutting department).

Batch size is varying from a few thousand to some hundreds of thousands. 2000 to 600.000 cans.

Tinplate price is 700 Euro a ton. (Prices range from about 600 to about 900 Euro).

Sheet Costs

Blank sheet 1.00 euro

Lacquered sheet 1.21 euro

Printed sheet 1.93 euro

Average blank, lacquered, printed 1.39 euro Average blank, lacquered 1.12 euro Average lacquered, printed 1.54 euro

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|XVIII|

Appendix 13 Differences in planning

Deviations from the week plannings for line 100

year 05 total moving average

1 2 3 4 5 6

week 27 2 2 2,00

week 28 1,00

week 29 2 2 1,33

total of 3 wks 0 0 0 0 2 2 4

Appendix 14 Blockades and scrap flow

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|XX|

Appendix 15 Actor Activity Diagramming legend

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|XXI|

Appendix 16 System requirements

Central needs

Description Amount Price each Total

Software licences

- IBM DC Connect Server license

- IBM DCConnect client for mobile terminal

- IBM DCConnect client for “touch screen” (PC system) - WOR/SOR Manufacturing module

- WM Warehouse management module - Nicelabel suite (for label printing) - Crystal reports (reports module) Total licences

1 1 2 1 0 1 1

4.500 250,- 400,- 10.000,- 10.000,- 1.000,- 700,-

4.500 250 800 10.000,- 0 1.000,- 700,- 17.250,- Services software

- Re-scope - Functional design - Technical design

- Configuration software on site - Testing

- Commissioning - Go-LIVE support - Documentation - Project Management Total services software

4 5 6 3 3 5 5 2 5

880,- 880,- 880,- 880,- 880,- 880,- 880,- 880,- 1.000,-

3.520,- 4.400,- 5.280,- 2.640,- 2.640,- 4.400,- 4.400,- 1.760,- 5.000,- 34.040,- Hardware

- RF infrastructure - access points - RF hardware

- hand terminal (long range scanner)

- truck terminal + separate long range scanner - Operator hardware (Manufacturing)

- “touch screen”

- industrial laser scanner - A5 label printer Total hardware

2

1 0

2 1 2

450,-

2.300,- 4.200,-

2.500,- 350,- 2.600,-

900,-

2.300,- 0

5.000,- 350,- 5.200,- 13.750,- Other costs

- Training

Total costs 65.040,-

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|XXII| Receiving and Coil cutting

Software licences

- IBM DCConnect client for “touch screen” (PC system) Total licences

250,- 400,-

Hardware

- truck terminal + separate long range scanner Total hardware

?

600,-

2.300,- 4.200,-

Other costs - Training

Total costs 0

Printing/Lacquering department

Software licences

2 9

250,- 400,-

500,- 3.600,- 4.100,- Hardware

0

2

9 9 9

600,-

2.300,- 4.200,-

2.500,- 350,- 2.600,-

0

4.600,- 0

22.500,- 3.150,- 23.400,- 53.550,- Other costs

- Training

Total costs 57.750,-

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|XXIII| Can-making/end-making

Software licences

1 11

250,- 400,-

250,- 4.400,- 4.650,- Hardware

0

1

11 11 11

600,-

2.300,- 4.200,-

2.500,- 350,- 2.600,-

0

2.300,-

27.500,- 3.850,- 28.600,- 62.250,- Other costs

- Training

Only pallet label printing

Software licences

- IBM DCConnect client for “touch screen” (PC system) - Nicelabel suite (for label printing)

Total licences

1 10 1

250,- 400,- 990,-

250,- 4.000,- 990.- 5.240,- Hardware

0

1 0

10 0 10

600,-

2.300,- 4.200,-

2.500,- 350,- 2.600,-

0

2.300,- 0

25.000,- 0 26.000,- 53.300,- Other costs

- Training

10 units is incl. 2 spare parts

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|XXIV| Warehouse

Software licences

- IBM DCConnect client for “touch screen” (PC system) - WM Warehouse management module

Total licences

5 0 1

250,- 400,- 10.000,-

1.250,-

10.000,- 11.250,- Hardware

5 0

0 0 0

600,-

2.300,- 4.200,-

2.500,- 350,- 2.600,-

11.500,-

11.500,- Other costs

- Training

5 hand terminals (inclusively 1 back up), these terminals are also used on the trucks.

A printer is not necessary. Pallets at which something has to be changed are always sent back to the production location.

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|XXV|

Appendix 17 GST label printing solution

Gesamtkosten für Projekt

Anzahl Material Kosten/Stk. Gesamt 10 IBM PC's 500,00 € 5.000,00 € 10 TFT 15" Display 200,00 € 2.000,00 € 10 Laser Drucker 500,00 € 5.000,00 € 10 PC Schränke 1.100,00 € 11.000,00 € 1 Mini Switch 50,00 € 50,00 € 1 Evtl. Kosten (HP Switch) 850,00 € 850,00 € 1 Netzwerkleitungen

1 Stromleitungen

23.900,00 €

Anzahl Material Kosten/Stk. Gesamt Methec NiceLabel 990,00 € 990,00 €

990,00 € Total 24.890,00 €

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|XXVI|

Appendix 18 Net Present Value calculations

Scenario 1

cost of

capital 1,11 year investment benefits NPV interest rate sum

1 212440 -191387,387 1,11 -191.387,39 2 650165 527688,4993 1,2321 336.301,11 3 650165 475395,0444 1,367631 811.696,16 4 650165 428283,8238 1,51807041 1.239.979,98 5 650165 385841,2827 1,685058155 1.625.821,26 6 650165 347604,7592 1,870414552 1.973.426,02 7 650165 313157,4407 2,076160153 2.286.583,46 8 650165 282123,8205 2,30453777 2.568.707,28 9 650165 254165,604 2,558036924 2.822.872,89 10 650165 228978,0216 2,839420986 3.051.850,91

Scenario 2

cost of

1 189690 -170891,892 1,11 -170.891,89 2 650165 527688,4993 1,2321 356.796,61 3 650165 475395,0444 1,367631 832.191,65 4 650165 428283,8238 1,51807041 1.260.475,48 5 650165 385841,2827 1,685058155 1.646.316,76 6 650165 347604,7592 1,870414552 1.993.921,52 7 650165 313157,4407 2,076160153 2.307.078,96 8 650165 282123,8205 2,30453777 2.589.202,78 9 650165 254165,604 2,558036924 2.843.368,38 10 650165 228978,0216 2,839420986 3.072.346,40

Scenario 3

cost of

1 154690 -139360,36 1,11 -139.360,36 2 644165 522818,7647 1,2321 383.458,40 3 644165 471007,8961 1,367631 854.466,30 4 644165 424331,438 1,51807041 1.278.797,74 5 644165 382280,5747 1,685058155 1.661.078,31 6 644165 344396,9142 1,870414552 2.005.475,23 7 644165 310267,4903 2,076160153 2.315.742,72 8 644165 279520,2615 2,30453777 2.595.262,98 9 644165 251820,0554 2,558036924 2.847.083,03 10 644165 226864,9148 2,839420986 3.073.947,95

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|XXVII| Scenario 4

cost of

1 24890 -22423,4234 1,11 -22.423,42 2 632465 513322,7822 1,2321 490.899,36 3 632465 462452,957 1,367631 953.352,32 4 632465 416624,2856 1,51807041 1.369.976,60 5 632465 375337,1942 1,685058155 1.745.313,80 6 632465 338141,6164 1,870414552 2.083.455,41 7 632465 304632,0868 2,076160153 2.388.087,50 8 632465 274443,3215 2,30453777 2.662.530,82 9 632465 247246,2356 2,558036924 2.909.777,06 10 632465 222744,3564 2,839420986 3.132.521,41

Scenario 5

cost of

1 47640 -42918,9189 1,11 -42.918,92 2 632465 513322,7822 1,2321 470.403,86 3 632465 462452,957 1,367631 932.856,82 4 632465 416624,2856 1,51807041 1.349.481,11 5 632465 375337,1942 1,685058155 1.724.818,30 6 632465 338141,6164 1,870414552 2.062.959,92 7 632465 304632,0868 2,076160153 2.367.592,00 8 632465 274443,3215 2,30453777 2.642.035,32 9 632465 247246,2356 2,558036924 2.889.281,56 10 632465 222744,3564 2,839420986 3.112.025,92

-500.000,00 0,00 500.000,00 1.000.000,00 1.500.000,00 2.000.000,00 2.500.000,00 3.000.000,00 3.500.000,00

1 2 3 4 5 6 7 8 9 10

Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Net Present Value of the five scenarios for a time frame of one to ten years.