P&B

T T R What? S

T R S
its a French thing!!!
Taux de Rendement Synthetique
A new way to measure overall line efficiency in a consistent & comparable way across sites & technologies

The measure is to be used as a basis for continuous improvement & investment decisions in Masterfoods Europe

Taux de Rendement Synthetique Some Translations...

Simple yield rate

BD

Consolidated effectiveness measure Global efficiency measure

MG

HF

Ratio efficiency condensed

ED

Efficiency Challenges
Site Based Measures (a*(b-c))/100=Eff.

OK ???

No, its, (a/b)-c*100!!

We need to remove interpretation & allowances & create a global measure that is accepted!

TRS definition

Actual Tonnes Produced Associate Paid Hours * Theoretical Line Capacity

Cause for debate?

THEORETICAL LINE CAPACITY The Bottleneck defined capacity, Using A30 @ Plan Mix

TRS assumption

The overall line efficiency is based on the following assumption:

Working time is counted as defined by the line's shift pattern, but maintenance & cleaning activities which take place outside of the shift pattern are also included. A very simple picture for the counted working time is the time between: "switching the lights in the factory on and off"

TRS definition
ASSOCIATE PAID HOURS = All time that associates are on the line, No exception for: Cleaning, Start-up, Shutdown, Changeovers, P.M.s. Only allowance is for: Holidays, Demand, Major engineering.

TRS Example #1
4 x 8 Opening Time Less Fixed Activities Start Up Maintenance Cleaning Less Losses in Running Time Flexibility Changeovers Product Mix Weekly Cycle Efficiency Plant Uptime 85% 21.4 121.2 ) ) ) 3% 4.4 142.6 3 4 6 13 147 20Shifts 160 Paid Hours 160

TRS

121.2 160

75%

TRS Example #2
168 hrs/week

Start-up 3 hrs

Run 129 hrs

Clean 4 hrs

Maintain 8 hrs

Efficiency TRS
144 hrs

Lights off on Sundays

Line runs for 100 hours (some breakdowns, changeovers, etc.)

Efficiency=100/129=78% TRS=100/144=69% (the line is crewed for five days per week, with one day of cleaning/maintenance)

TRS breakdown time reporting

Maximum available TRS 100%

TRS 40%

20% Fixed 5% Flexibility 15% Reliability 20% Bottleneck

Kaizan, SMED, etc.

De-complexity

60% Opportunity

Mtce/engineering
?Capital Investment

Reporting Standardisation
BENCHMARK AGAINST PERFECTION Site: aaa Line: xxx Period 6 to Period 9 2001 100% TRS - GLOBAL 90% 80% 70%
% of use

VERSUS PLAN OBJECTIVE Site: aaa Line: xxx From P6W1 to P9W4 2001
TRS - DETAILS
100% 95% 90% 85% 80% 75%
% of use

VERSUS OPERATIONAL OBJECTIVE Site: aaa Line: xxx P9w4

100% 95% 90%

60% 50% 40%

% of use

30% 20% 10%

85% 80% 75% 70% 65% 60%

MAPP/IPS to be used as the reporting platform across Snackfoods ???

0%
70% 65% 60%
1 Uncrewed losses 33,4% 8,1% 2,4% 8,3% Scheduling losses (low demand, ch-o, pack mix) Operations losses - planned (PM's, cleaning) Operations losses unplanned (breakdowns, scrap&rework) Actual produced

Scheduling losses (low demand, ch-o, pack mix) Operations losses - planned (PM's, cleaning) Operations losses - unplanned (breakdowns, scrap&rework) Actual = TRS

12,1% 3,5% 12,5% 71,8%

Scheduling speed losses (packmix) Scheduling downtime (ch-o, materials unavailable) Planned Operations speed losses (PM's wrappingmc's) Planned Operations downtime (PM's line, cleaning) Reliability speed/lanes losses Reliability downtime Scrap/rework Unexplained Actual =TRS

4,6% 7,5% 0,9% 2,7% 4,9% 3,4% 3,8% 0,4%

47,8%

71,8%

In Summary

ency ency ency

Global measure
Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency

Efficiency

Efficiency

Efficiency Efficiency Efficiency Efficiency Efficiency

Efficiency Efficiency Efficiency Efficiency Efficiency

Efficiency Efficie Efficiency Efficie

Efficiency
Efficiency ency Efficiency Efficiency

Efficiency

ency
ency ency

Efficiency
Efficiency Efficiency

Efficiency
Efficiency Efficiency

Efficiency Efficiency Efficiency ency Efficiency Efficiency ency Efficiency Efficiency

Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency Efficiency

TRS
Efficiency
Efficiency Efficiency Efficiency

Efficiency
Efficiency

Efficiency
Efficie Efficiency

Efficiency Efficie Efficiency Efficiency

Efficiency

Efficiency
Efficiency Efficiency

Efficie
Efficiency Efficie Efficiency Efficie Efficiency

Efficiency Efficiency

Efficiency Efficiency Efficiency

Efficiency Efficiency

Efficiency Efficiency Efficiency Efficiency Efficiency

Non-detail
Efficiency

Efficiency Efficie Efficiency Efficiency Efficiency Efficie Efficiency

ency

Efficiency

Efficiency

Efficiency

Efficiency

Efficie

TRS is a tool to measure efficiency

Breakdown of equipment Speed of the line Changeover times Start-up/shutdown times Maintenance Cleaning

BUT... It is not intended to be the sole measure and it must be used in context of a bigger picture

ATS MFI MCC/LCC

Productivity Customer Service CNB

Open Points
How do we standardise hours for activities?, e.g. a partial crew cleaning at weekends? What if we contract-out cleaning/maintenance activities?

What about non-continuous lines (3 shift operation) using a shared technician pool?
What is the TRS of a batch process? How do we measure the efficiency of non-bottleneck activities?

PB&A

Back-up

Spreadsheet Template
WEEKLY LINE EFFICIENCY INPUT REPORT SLOUGH BOUNTY MAIN LINE Site Technology Period Week SHIFTS LOST Legal Restrictions Weekend Not Working Holidays Shutdowns Planned Maintenance Cleaning Changeovers Other (Specify) Total SHIFTS GAINED V STD PAID WEEK Additional Shifts (Specify) Extensions to standard shift pattern, for production or cleaning or maintenance, e.g. 3 shift, 5 days increased by one shift for maintenance outside normal crewing hours. WEEK TONNES Planned Productive Shifts Actual Production Scheduled Production Sched Prod per shift Others = Weekly start ups 15 179.7 244.4 16.3 Scheduled volume for the week. Expected number of shifts that are productive 0 6 0 0 0 1.1 1.0 0.5 8.6 Definition as per A30 Definition as per A30 Definition as per A30 Definition as per A30 Definition as per A30 Definition as per A30 Definition as per A30 Definition as per A30 input cells calc cells copied cells SLO Bounty 2 2 COMMENTS Main line

CAPACITY AND UTILIZATION WORKSHEET SLOUGH BOUNTY MAIN LINE Site : Technology

input cells calc cells copied cells SLO Bounty 8 Hour Shifts Period Week Tonnes Per Shift 21 16.87 2 2 Tonnes Per Week 354 % Theor. Available Capacity 100%

THEORETICAL AVAILABLE CAPACITY (Perfection rate at Plan Mix) Less Those things which reduce output when running Breakdowns/Reliability Scrap/Rework Other, specify below *)1 Standard Output per Shift (at Plan Mix) CONTINUOUS CREWING Theoretical Less: Those equipment-related things which reduce the number of production shifts Shutdowns Planned Maintenance Cleaning Changeovers Other, specify below Continuous Crewing SOC MAXIMUM LEGAL CREWING Theoretical Less: Those equipment & legal-related things and legal which reduce the number of production shifts Legal Restrictions Shutdowns Planned Maintenance Cleaning Changeovers Other, specify below Maximum Legal Crewing SOC

2.53 0.17 0.02 14.16 21 0 0 1 1 1 18 21 0 0 0 1 1 1 18 14.16 260 14.16 260 297

15.0% 1.0% 0.1% 83.9%

73.5%

Cont.

73.5%

ACTUAL CREWING Theoretical Less: All things which reduce the number of production shifts Legal Restrictions Weekends Holidays Shutdowns Planned Maintenance Cleaning Changeovers Other, specify below Actual Crewing SOC PAID CREWING Theoretical Less: Those shifts which reduce crew availability Legal Restrictions Weekends Holidays Shutdowns Additional Crewed Shifts above standard shift system Paid Crewing SOC ACTUAL VOLUME PRODUCED SCHEDULE UTILIZATION (as % Paid Crewing SOC) UTILIZATION (as % Actual Crewing SOC) % SCHEDULE ACHIEVED Actual Shifts v Planned Shifts *) 1 Usage on the Line

Cont.

21 0 6 0 0 0 1 1 1 12 21 0 6 0 0 0 15 14.16 212 180 244 84.6% 102.4% 136.0% 82.7% 59.9% 50.7% 14.16 176 49.5%

SFE EFFICIENCY REPORT 2001 Site : Slough Line : Bounty Period Week THEORETICAL CAPACITY Tonnes per shift (Perfection rate at Plan Mix) Standard Output per Shift (at Plan Mix) THEORETICAL AVAILABLE CAPACITY Shifts Theoretical Capacity Tonnes per Week CONTINUOUS CREWING Shifts Continuous Crewing SOC Tonnes Continuous Crewing Theoretical Tonnes MAXIMUM LEGAL CREWING Shifts Maximum Legal Crewing SOC Tonnes Maximum Crewing Theoretical Tonnes ACTUAL CREWING Shifts Actual Crewing SOC Tonnes Actual Crewing Theoretical Tonnes PAID CREWING Shifts Paid Crewing SOC Tonnes Paid Crewing Theoretical Tonnes ACTUAL VOLUME PRODUCED SCHEDULE UTILIZATION (as % Paid Crewing SOC) UTILIZATION (as % Actual Crewing SOC) TRS (% of Paid Crewing Theoretical Tonnes) TRS Potential % SCHEDULE ACHIEVED % THEORETICAL ACHIEVED

input cells calc cells copied cells 2 1 2 17 14 21 354 18 260 310 18 260 310 12 176 209 15 212 253 180 244 84.6% 102.4% 71.0% 69.4% 73.5% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 4

50.7%

#DIV/0!

#DIV/0!

Definition of Capacity (from A30 report)

Theoretical Available Capacity - Tonnes/Shift The weighted average, based on the actual or planned production volume mix, of the maximum instantaneous rate per minute or per hour, at 100% overall efficiency, for 8 hours per shift. The maximum instantaneous rate/minute or/hour is based on the bottleneck equipment of the line or process. The weighted average is calculated on a time basis rather than a tonnes basis, i.e. the time those tonnes would take to be produced at theoretical rate, or:
Sum of (max instantaneous rate x time (shifts/year)) for each product Total time for all production (shifts/year)

Definition of Utilisation (from A30 report)

Utilisation -Requirements as % of Max Legal Crewing SOC It is intended that utilisation will always be defined on the base of maximum legal crewing SOC. For period data the computation would be as follows:
Actual Output Maximum Legal Crewing Shifts x Actual Output/Shift or Actual shifts Operated/Maximum Legal Crewing Shifts

It is assumed that actual shifts cannot exceed maximum legal crewing shifts. Therefore, utilisation will never exceed 100%. It is also noted that utilisation differs from efficiency. Utilisation is time based whereas efficiency is rate based. A utilisation of 100% means that the line produced all that was possible for the time period. A utilisation of less than 100% means that the line could have produced more if it were needed.

Rate Definitions
Nominal rate

(from Belgioioso Petcare example)

The number of 100g pouch per minute the machine has been designed or specified. Toyojidoki TLA1S: 240 strokes per minute

Total production hours

The clocked hours the production crews are in operation (maintenance, production, cleaning)

Net production hours

The above figures minus time allowed for start up after close down, cleaning, change over, planned maintenance if it is fully integrated in the production crew. At DOL: 2 hours for the start up, 6 hours for cleaning, 60' every day for recipe changes and 8 hours for maintenance on Mondays

Rate Definitions (cont.)

Nominal output

(from Belgioioso Petcare example)

It is automatically calculated from the nominal rate and the net production hours.

Real output
Tonnage of product actually produced on the line.

Efficiency
This is the calculated % of the real output versus the nominal one.

TRS
This index is calculated as follows: Real output / (Total production hours)*(Nominal rate) Its the ratio in % between the real output and the theoretical output achievable if the Toyo should run every minute; maintenance, cleaning and changeovers are included.

Some French History

Canning plants traditionally designed around the steriliser
+30% +20% +10% +20% +10% Steriliser Expensive Continuous operation Reliable (known technology) +30%

Goods in

Goods out

Upstream & downstream bottlenecks avoided Optimum utilisation of the rate determining asset/activity

Pouch 441
Challenge established by Frank Mars

Supply 4*100g pouches to market at the same price as 1 400g can

Cost target of 770 Euro/tonne Absolute standard is clear which in turn drives crewing, raws, start-up and maintenance performance

TRS is a critical lever in shaping cost performance, focusing on optimising asset (people & plant) utilisation

Some French History

With the 441 challenge, thinking altered & the filling operation became the rate determining step
Retorts Goods in Goods out

Filling Expensive asset Non-mature technology Non-continuous operation

Upstream/downstream assets may be shared, but bottlenecks are avoided The reported overall line performance (TRS) is based on the designed pouch filling rate

Pragmatism

Where is our comfort zone?

Definition

Interpretation

Idealism

Why TRS?

TRS

replaces Overall Equipment Efficiency

where used, reasoning is that OEE gives allowances for plant not operating and as such

is not suitable to use to measure the overall

line efficiency

Overall Equipment Effectiveness (OEE)

12 hr shift duration Planned Available Hours Total Possible Machine Usage Actual Available Time Operating Time Running Time Line Utilisation Machine Performance
Line Scrap

Planned outages Waiting for resources Changeovers

Setups Changeovers Downtime

Planned Maintenance Planned team meetings Machine Delays No Materials Raws Quality No operator Manning Unplanned Meetings

Maintenance breakdowns Minor Losses

Unplanned cleaning Small fixes Adjustments

Speed Losses Incorrect speed

Idling time

Line Quality losses

Yield Startup losses

OEE

Offline Scrap

Allowances

Off line Quality losses Scrap

Rework (not audit)

Actual time producing good product

OEE =

Actual Time Producing Good Product (hours) x 100 Planned Available Hours