You are on page 1of 22

1.

1 Introduction Packaging
 
The utilization of the production assets is in BCS limited to the main processes
Brewhouse, Cellars, and Packaging (i.e. Bottling / Canning / Kegging and Special).
 
In Version 6, the structure of OPI for Brewhouse(s) is fully aligned with the well-known
structure for packaging. Secondly a separate chapter on Filtration OPI is included, to
provide the standardised framework for local calculations outside BCS. Thirdly, we now
also calculate a departmental summary of the utilisation parameters
 
Please note that all ratios (e.g. OPI, OPI-NONA, Effectivity and Efficiencies, etc.) are
time weighted averages in the circumstances that more than one brewhouse, cellar or
packaging lines are on site. In case of the brewhouse and packaging OPI, the weighted
average is based on the sum of theoretical production times divided by the sum of
manned times. The relative nominal speed of the lines is therefore indirectly taken into
account, via the theoretical production time calculation.
 
 
In many of our operating companies, the packaging operations have a significant impact
on the Cost of Goods Sold (COGS). Equipment performance is therefore an essential part
of these COGS. For the determination of equipment performance, the reference is
therefore the use of time from that equipment’s perspective: “What is being done with the
equipment at any moment in time”. Secondly, we assess in many cases the existence of a
(Wo)Men-Machine relationship.
 
Key Performance Indicators in packaging operations are OPI and OPI-NONA, where OPI
stands for Operational Performance Indicator (OPI) and OPI-NONA for Operational
Performance Indicator (OPI) minus time lost for No Order No Activity and Non Operator
Maintenance.
 
This chapter describes the time elements, which are used for the calculations of the
various equipment ratios. Correct allocation is therefore essential to ensure a correct
representation of all these ratios. To assist, each time element is supported by one or
more questions. In the event that a Yes is the correct answer to one of these questions, the
correct time element has been identified. Secondly, a Q&A section is available, to
provide guidance for the most frequently asked questions.

1.1.1 Unused Time Packaging
First of all, it should be realized that Manned Time = Total Time – Unused Time, with
Total = 7*24 = 168 hr/wk, 52 weeks per year. Because Total Time is a fact, Manned Time
is influenced by Unused Time only. BCS uses the Gregorian calendar as the bases for
automatically determining the amount of Total Time in a month. For the determination
of Unused Time, two aspects are to be assessed, being the engineering status of the
line, and / or the presence / absence of people. Please refer to the To Summary Chart as
reference.
 
Line aspects
 
 1) Is the line under construction or is major re-engineering taking place?
 
When an existing line is re-engineered, the time taken for the significant changes (=
capacity and / or capability change requiring CAPEX) is not to be considered as Manned
Time because it is not related to the operational use of the line. The time spend on re-
engineering therefore has to booked as Unused. The line has to remain “in use” in BCS
 
Similarly, the installation period of a new line is not to be included. Operator shifts that
are getting their training for the new line is considered part of the investment project
and should not be included. For OPI calculations a project is deemed finished when:
 the first time products complying with all tolerance ranges for finished products
are produced, or
 finished product has been released to the market, or
 successful Site Acceptance Test (SAT) has been performed, whatever comes
first.
 
Registrations of line performances henceforward are mandatory, irrespective of the
results, so the line has to be put ‘in use’ in BCS and reporting has to take place.
 
Concerning packaging lines that are no longer part of the planning process, the
following rules apply:
 
a) When there is a temporary cease of use of the lines, or they stopped production but
will be transferred to other production unit within the same OpCo continue reporting
the asset in BCS / BCA as currently.
 
b) In the rest of the cases (to be transferred to another OpCo or third party and/or,
permanent out of use and/or unknown future status) then you do not report in BCS /
BCA in that Unit when the line ceased production on a permanent basis.
 
 
 
Line people aspects
 
 2) Are there ≤ 2 (or 50% of a minimum packaging crew size) people (production /
maintenance / engineering / 3rd party) on the line?
 
Unused Time means that nobody (production / maintenance / engineering / 3 rd party or
anybody else) is doing anything with the line. The lights are off and the door is closed.
However, good cost-efficient management advocates executing some activities (heating
of machinery, pre-loading of bottles, postproduction cleaning) are done without
complete teams being present. Unused Time includes the hours when a few men
(=Smallest of 2 or 50% of a minimum crew) are doing jobs enabling complete shifts to
start and stop efficiently. However, production units that want to have a clear calculation
method can increase the Manned Time proportionally. For instance, if 2 persons of a
team of 8 come 1 hour earlier, you can use 2/8 = 25% of 1 hour = 15 minutes for that
‘correction’.
 
NOTE: When more than 2 people on the line, the line is to be considered as manned,
and the proportionality does not apply anymore.
 
Some production units use a procedure that during the ‘run-out’ of a production run on
line A part of the team begins with the start-up of line B. This is – of course – a ‘best
practice’ to increase the output per hour. The Actual Production Time (which is
measured at the filler) is not influenced; the increase of the OPI NONA should result
from the shorter Planned Down Time. If e.g. 1 hour is gained this way, the Planned down
Time for each line should be reduced by 0.5 hour AND the Unused Time should be
increased by that same 0.5 hour.
 
Overtime made by a production or maintenance team is part of Manned Time, of
course, and must therefore be deducted from Unused Time.
 
However, when an entire shift is put to work outside their normal line workstations and
are performing other work than their normal production jobs, that time should not be
included in Manned Time, but be ‘booked’ as Unused Time. Examples are:
· Painting,
· Pallet sorting, etc.
 
Although these examples are beneficial to run the line, they are not considered as
operational utilisation of the line, as the (Wo)Man – Machine interaction is not present.
 
 
A good way to calculate the correct Manned Time is:
Manned Time = Total Time – Unused Time
= Actual production Time + External Stops Time + Planned Down Time + Change Over
Time + NONA Time + Non-Operator Maintenance Time
 
Questions Unused Time Answer
We fund some capacity & capability changes on Taking the equipment perspective, these changes are
our line from a maintenance budget, how should impacting on the line capability and or capacity, and
we allocate the time it takes to do these changes are therefore to be allocated under unused time. The
funding is irrelevant
We have a third party cleaning crew coming in When the cleaning crew is smaller than 2 people, Yes, if
on a Saturday to clean the line. Our operators are more than 2 people the lines is in use, and the time it
having a rest at home. Is the line unused? takes to clean is to be deducted from Unused and
reported under planned down time.
Our maintenance team does maintenance in one When the maintenance crew is smaller than 2 people,
8 hour shift per week. Operators are at home. Is than yes, if more than 2 people on the line, than the
the line unused? time taken for maintenance is to be deducted from
Unused and reported under Non Operator
Maintenance.
When 5 of the 12 operators (12 = minimum crew) Two aspects appear to be mixed up in the question: as
of a line stay after the shift cleaning the line at long as there are more than 2 People are on the line,
the end of the week (no other production than the line is manned. Then the question is what are
activities left), is this reported as unused time they performing (in your case end of production
(because 5<50% of the minimum crew) or cleaning) which is a planned activity, therefore it is to
planned down time (because 5>2)? be recorded as planned down time
   
Otherwise; how to interpret the definition: NOTE: When more than 2 people on the line, the line is
“unused time includes the hours when the to be considered as manned, and the proportionality
smallest of 2 or 50% of a minimum crew are does not apply anymore.
doing jobs enabling complete shifts to start and  
stop efficiently”

1.1.2 Non Operator Maintenance Packaging


With the introduction of TPM and concepts like multi skilling / multitasking, the classical
difference between packaging operators and maintenance crews is fading out with the
introduction of CILT standards and Autonomous Maintenance. Producing and
maintaining are both classified as essential components of the operational utilisation of
a line. They are therefore both part of the Manned Time.
 
The time taken for all maintenance, is therefore to be assess on the bases of WHOM is
performing the maintenance: the Line Operators themselves, or anybody else (Termed:
Non Operator), or in practice a mix of Operators and Non Operators.
 
The crucial question therefore is:
 
 3) Is maintenance / overhaul performed by engineering personnel (brewery and
or 3rd party) other than line operators?
 
In order to differentiate between maintenance performed by operators (= production
team Operators allocated under packaging Cost Centre 55xx) and the maintenance
done by non-production team members, the maintenance executed by these others,
should be registered under Non Operator Maintenance. Overhauls are classified as
project based maintenance activities.
 
The Non-Operator maintenance activities include (i.e.):
 1 shift/week by the Engineering Department maintenance crew
 maintenance by non-shift technicians during the night or weekend (in 1 or 2 shift
systems),
 overhauls in low production season without the use of the packaging teams.
 
 
Non-Operator Maintenance resource mix.
In the event of mixed resources, we consider operators as part of the maintenance
resources when they are scheduled in the labour resource planning and are engaged in
predetermined maintenance related activities, which are part of the maintenance plan.
Just being present and performing additional ad hoc cleaning activities is not to be
considered as planned maintenance.
 
Please assess the total number of people on the line (= packaging team + all others
performing maintenance). When > 70% of the total number are non-production team
members, allocate as Non-Operator Maintenance. At <= 70%, allocate as planned down
time.
 
Example Calculation:
 
 # Operators # Non Operators % Non-Operators Allocation
5/(2+5) * 100 = 71%  Non Operator
2 5
Maintenance
2 4 4/(2+4)*100 = 66%  Planned downtime
 
 
By including the maintenance time spent by the production teams in Planned-Down and
the time spent by others than production teams in Non-Operator Maintenance, both
will be included in the OPI calculation but the OPI-NONA is exclusive of Non-Operator
Maintenance.
 
 
 
Questions Non Operator Maintenance Answer
Time
We have operating technicians operating the line. Check where in the Common Cost Centre Structure the
They perform most of the maintenance and operators are allocated (Likely under CCCS 55xx). We
assists in the overhaul activities, how should we therefore consider them as operators, and the time
allocate the time taken for maintenance taken for maintenance is therefore to be allocated
activities? under Planned down time, under the condition that you
meet the requirements mentioned under mixed
resources.
Our packaging department has its own dedicated Maintenance staff is to be reported under CCCS 5120,
maintenance crew. They perform exclusively the and is therefore not part of the CCCS used for
maintenance, is this part of non-operator Packaging activities (55xx). Therefore, the time used for
maintenance or planned downtime maintenance is to be allocated under Non-Operator
Maintenance.
For maintenance done by maintenance team on Maintenance is not performed by operators, therefore
weekend, this is non-operator team maintenance non-operator maintenance!
yes or no
In planned maintenance done by maintenance No, still to be classified as non-operator maintenance,
team on normal working hours, so this in planned maintenance done by operators = planned down
down time yes or no
 
 
1.1.3 No Order, No Activity (NONA) Packaging
The NONA aspect covers the relationship between packaging planning and labour
flexibility of the operating crew. It is an indicator that reflects the degree of mismatch
between labour supply and demand. It must be part of OPI because the production
teams are paid for those hours. Unfortunately, shift systems + forecast inaccuracies +
seasonality will result in periods of “Operators available, no production order”. To give
insight in the performance of the packaging teams, OPI NONA is exclusive of NONA and
Non-Operator maintenance Time.
 
The following set of questions (and / or) is relevant to determine the occurrence of
NONA:
 
 4) Is the line crew present but idle as result of No Orders therefore No Production
Activities? (Whole or part of shift)
 5) Is the line crew idle as result of finished production prior to end of the shift?
(Part of shift)
 6) Is the line crew engaged with other ad hoc activities on the line than the
packaging process by management instruction to make “good use” of the crew
available?
 7) When orders to package arrive, would management recall the line crew’s ad
hoc activities on the line to resume the packaging process?
 
Essential in the above questions is that the line crew is engaged at the line, having a
(Wo)Man-Machine relationship. Line managers will arrange ad hoc (= unplanned in
the packaging schedule) activities, in order to make good use of the available labour
These ad-hoc activities at the line are spontaneous in nature and can include additional
training, cleaning, tag removal, etc.
 
The line is considered unmanned the moment the idle packaging crew is redeployed to
other duties outside their line and therefore this time component is then recorded as
Unused Time, provided it meets the criteria set for Unused Time.
 
Questions NONA Time Answer
As a result of returnable packaging material As the packaging schedule indicates no order to
shortages on Monday, our packaging schedule is produce, and the operators are having a (Wo)Men-
adjusted accordingly in the planning meetings to machine relationship, this is to be allocated under
reflect no production. Our packaging operators NONA.
however have through our labour agreement the
obligation to come to work. We engage them on
their respective lines to perform ad hoc activities.
Is this external stop of NONA?
Let’s assume, that a crew for line is 5 persons per Basis of the concept of OPI is the utilisation of the
shift. assets, so machine oriented. NONA occurs when there
1st  situation – operators are doing “NONA time is a (Wo)Man – machine relationship, in example 1
activities” in 3 shifts x 5 operators – of course indeed 24 hours, and in example 2 8 hours, with 16
NONA time is 24 hours. hours unmanned (provided that there are less than 2
2nd  situation – all 15 operators are gathered people on the line during the remaining 16 hours).
together to work on 1 shift doing “NONA time
activities”. In my opinion NONA time is 8 hours in
this case, but is there a possible interpretation,
that NONA should be 24 hours in this case too,
because we pay the same money as in first
situation and operators do the same amount of
work?
Is it possible to have 0 hours NONA in a month? It is possible by exception but even than highly unlikely,
And in more months? especially in more than 1 month. It would indicate a
perfect labour matching on all the time elements that
are mentioned in this section.

1.1.4 Planned Down Time Packaging


Planned Down Time activities are characterised by the common factor that they are
planned (= are part of the production plan/schedule/recipe). Planned Down Time
activities focus on plant and equipment, packaging process, staff and departmental
aspects. The following set of questions (and / or) is relevant to determine the planned
nature of activities:
 
 8) Is the line crew engaged in planned activities that support the packaging plant
and equipment: i.e. planned maintenance (overhauls), Autonomous Maintenance?
 9) Is the line crew engaged in planned activities that support the packaging
process: i.e. cleaning & disinfection, start-up / run out, test runs
 10) Is the line crew engaged in planned activities that support the packaging
staff: i.e. training, meals?
 11) Is the line crew engaged in planned activities that support the management
of the packaging department: i.e. hand over/ management / Labour Union?
 
For those events of planned activities that result in the filler to stop, the time taken is
considered Planned Down Time. As part of the OPI deployment, Planned Down Time is
based on the registration of actual duration that the filler is stopped.
 
Line crew activities related to New Product Introduction project(s) are likely to be
classified under question 9, as they tend to relate to test runs. This can relate to machine
settings, packaging material tests, etc.
 
For OPI calculations an NPI project is deemed finished when:
 the first time products complying with all tolerance ranges for finished products
are produced, or
 finished product has been released to the market, or
 successful Site Acceptance Test (SAT) has been performed, whatever comes
first.
 
Questions Planned Down Time Answer
We have one bottling line and every Monday The line is down for the primary planned activity CILT,
packaging line stops and operators do the weekly which is to be reported under planned down time. This
and daily planned CILT activities. Since CILT times is where you report the entire duration of all these
not same in every machines, some operators do activities.
CILT and Change overs(At bottle filler) and some
only do cleaning(Bottle washer). So the question
is how to allocate time in this day? Should I take
whole day as cleaning ,or should I need to
allocate change over time?
After the last NPI project, we still require No, as the NPI project is closed, the time lost for
additional time to adjust our machines . Can we adjustments of the machines will be allocated under
allocate this under planned down? speedlosses and minor stops

1.1.5 Change – Over Time Packaging


Change-over’s are also planned, however must be registered separately to enable
calculation of the Change-Over Down Time ratio.
 
Change-over’s are measured when the filler stops for a primary pack change, label, or
beer type change over, but not for bright beer tank change-over’s of the same beer
type. When a Bright Beer Tank change-over takes longer than 5 minutes, it is classified
as an external stop (as it should be possible to do this in less than 5 minutes). It is
essential that the following question provokes a positive answer, in order to determine if
the time allocation to Change-Over is correct:
 12) Is the line crew engaged in line change over, set-up and including equipment
adjustment in-between SKU change?
 
Change Over Time is based on the registration of the actual total time between last
pallet leaving the palletiser with product A and first pallet leaving the palletiser
with product B after the change over, irrespective of the speed of the line at that
moment. By doing so, all interference between equipment and machine adjustments as
a result of the changeover are included in the Chang-Over Time. Time recording at the
palletiser is selected in order to accommodate all different types of change-over’s (i.e.
primary, secondary and tertiary pack size) at a singular point of measurement.
 
Questions Change-Over Time Answer
After a changeover of bottle size, we require No, as the first pallet B has left the line, these time
additional time after the new SKU has left the losses are accounted under Speedlosses and Minor
palletiser to adjust the line to bring it to its stops.
nominal capacity. Is this part of Chang-over?
Why do we measure this time element at the The reason is that in the adjustments of machinery, the
palletiser and not on the filler, like all the other downstream part after the filler are usually fitted with
time elements for OPI? complex and sensitive secondary packaging
machines.These have to be included in the change over
time element and can therefore only be measured at
the palletiser. This will provide representative
information regarding the change-over as such, not-
contaminated with aftercare adjustment effects.
 

 
1.1.6 External Stops Packaging
External stops are packaging line production interruptions, with their root cause outside
the control of the packaging teams. The question:
 
 13) Is the packaging process not possible (line cannot run) as result of external
factors, not under the control of the packaging crew like: no beer, no utilities, no
packaging materials, no downstream warehouse space, no internal / external
transport etc.?
attracts a positive conformation.
 
BCS calculates the time of the External Stops from the actual production time entered in
the most detailed input screen:
 
External Stops = Available Production Time – Actual Production Time.

 
The registration of External Stops enables the calculation of the Line Performance that
represents the Efficiency without taking the External stops into account:
 
Line Performance = Theoretical Production Time / Actual Production Time
 
You should therefore exclude the External Stop hours from the Actual Production Times. That
will result in Line Performances with clean packaging team accountability.
 
Example:
Gross actual External stop Actual production time for OPI
production time (hours) reporting (hours)
(hours)
105 0 105-0 =105
213 15 213-15= 198
 
Questions External Stops Time Answer
We have 2 lines (L2 & L3). The root cause of all this is lack of CO2 and therefore
L3 fills softdrinks (CO2); and L2 cannot fill the time losses on both lines are to be allocated under
according to the planning of production, external stop !
2 L2 doesn’t fill because the Brewing department
cannot filter beer as there is insufficiency CO2.
3 During this stop, the L2 2 crew does training
and cleaning.
 
Where do I allocate the time losses:
1-NONA?
2-External Stop for lack of beer / CO2?
3- Stop planned for training & cleaning?
 
 
1.1.7 Break Down Time Packaging
Break downs are unplanned events of equipment failure. When the following question
is answered as “Yes”, we allocate that time as Break down Time:
 
 14) Is the packaging process not possible for more than 5 minutes at the filler as
result of mechanical, electrical / instrumentation failure on components, sub-
assemblies or packaging line machinery and control systems or is the crew size
below the required minimum?
 
Is positively confirmed. Breakdowns and minimum crew size (i.e. as result of a strike) are
therefore an internal packaging line affair, and are not influenced by external factors
(See External Stops). Production stops longer than 5 minutes, measured at the filler, are
to be reported.
 
Note: Stops longer than 5 minutes as a result of primary and secondary packaging
material failures are not to be accounted for under Break down time, as they will be
accounted for under Speed Losses & Minor Stops.
 
All BCS data should be related to the filler, which does not mean that it is not very useful
to register breakdowns of the other equipment. However, for BCS the Breakdown >5
min. and the Number of breakdowns of the filler should be entered only. Due to the
buffers, it is possible that 1 breakdown of the palletizer of 10 minutes does not result in
a production interruption >5 min. at the filler.
 
Questions Breakdown Time Answer
Our line measurement system reports all For packaging Line OPI, we consider all machines as
stoppages of all machines. Which one should we one, and we measure the stoppages of the line
use for the registration of breakdown time, as it exclusively at the lowest point of the line V graph,
sometimes occurs that more than one machine where manning is available. The filler is therefore the
stops. designated point of measurement for line OPI. For the
time measurements at the filler with an automatic
reporting system a classification into breakdown or
speed losses is required, otherwise incorrect data is
used for both breakdown as well as speedlosses.
We have filler stoppages as result of No, breakdown is exclusively for the registration of
underperforming packaging materials, is this a failure of equipment and components.
breakdown?
 
1.1.8 Speed losses & minor stops Packaging

Speed losses and minor stops account together for the time losses due to small stops
(<5 min.) at the filler and having an actual filler speed below the Nominal Speed for that
SKU. When one of the following questions (and / or) is positively answered, speed losses
& minor stoppages are occurring.
 
 15) Has the filler stopped for less than 5 minutes?
 16) Is the filler ramping up or down?
 17) Is the filler not running at nominal speed?
 18) Has the filler stopped for more than 5 minutes, but not because of
Breakdown?
 
BCS calculates the Time of Speed losses and minor stops as:
 
Speed Loss & Minor stops = Total – Unused – Non Operator Maint. – Nona – Planned
down – Change over – External stops – Break down – Theoretical production Time –
Reject & Rework
 
Questions Speedlosses and Minor Answer
stops Time
Our operators have the experience that when Yes, actual running speeds below the nominal speed
they run the line below the nominal speed, it runs are always a speed loss. From this question, is appears
better. Is this a sped loss, as we tend to make that there are unresolved aspects in the lines
more products in a shift. preventing is from performing against the nominal
speed.
When we complete BCS we have negative Negative speedlosses in BC are indicative of incorrect
speedlosses, how is this possible? time allocation(s). Most common mistake is the
incorrect actual production time reporting, where
external stops are not deducted. Secondly, when the
line is running above the nominal speed, this can occur.
 

1.1.9 Reject and Rework Packaging


Reject and rework accounts for the time that the line has produced (semi) finished products that
do not comply to all tolerance ranges for finished products, as embedded in your Quality
System. The following questions (and / or) are highlighting these essentials:
 
 19) Has the packaging line produced under fills, non-closed bottles – cans – kegs, broken
bottles, mislabelled bottles, leaking cans / kegs, incomplete final packs etc.?
 20) Has the packaging line produced final product that is not compliant with all
tolerance ranges of the final product specification?
 21) Is the packaging line used to correct previous incorrect production runs?
 22) Is there product in quarantine in the stores?
 
Reject & Rework is any product removed from the line between infeed filler and before the full
product store due to e.g. low fills, leaking crown rejects, missing caps, broken bottles, leaking
kegs etc. In practice this is measured as Filler count “In” minus count palletiser “Out”
 
Reject & Rework is all products delivered to the full stores that do not conform
to all the tolerance ranges. Reject & Rework therefore includes products that are sold with
accepted quality defects. The criterion “product can be sold” is not relevant. Even when products
with deviating quality are allowed to be sold based on approval by designated management
levels, they are still classified as Not Good Product.
 
When a product needs two separate runs, both runs should be entered using the possibly
different Nominal Speed for each run. In this manner the total time for both runs is included in
the calculations. Nevertheless, enter the ‘Content’ in one of the runs only!
 
Reject & Rework is expressed in time by dividing the quantity of Reject & Rework by Nominal
Speed. BCS performs this calculation
 
BCS contains monthly data. This implies that products that were packed in one month and
are found to be Reject & Rework in the next month should be entered as Reject & Rework in
month they were produced. Likewise if product is in quarantine on suspicion of out of tolerance
range in one month, it is entered as Reject & Rework. If it is released the next month the volume
is moved from Reject & Rework to Good product in the production month.
 
Questions Reject and Rework Time Answer
Is it possible to report 0 reject and rework hours? It is highly unlikely, as it would indicate not losses on
the line between filler and pasteuriser, no sampling by
QA/QC, perfect processing, and no quality defects in
the final products coming of the line.
How should be account for product that was You add to the previous reported actual production
twice on the line, for example to put the missing time the production time it took to add the labels.
body labels on?

1.1.10 Good Product at Nominal Speed Packaging


Good Product is all products, delivered to the full stores that conform to tolerance range of all
quality parameters, including microbiological and Pasteurisation Units specifications. The
tolerance ranges for all aspects are specified in the quality control manuals.
 
Good Product is expressed in time by dividing the quantity of Good Product by Nominal Speed.
BCS performs this calculation
1.1.11 Nominal Speed Packaging
Nominal Speed of a packaging line is defined as the purchased capacity of the
bottleneck machine expressed in units/hour per SKU. Without this reference point it is
impossible to measure the OPI, Efficiency and Performance. The Nominal Speed is a fixed
capacity and does not change with the age of the line. Operational aspects preventing the line
from achieving Nominal Speed are no argument to change the Nominal Speed. Measurements
on packaging lines are intended to highlight areas of improvement, rather than disguising them.
 
The Nominal Speed must be based on the engineering/purchased specifications. In most cases
the nominal speed of the filler is the bottle neck machine but packaging lines can have been
designed with other equipment (i.e. pasteurizer or secondary packaging machines) having the
lowest nominal capacity. Different bottle / can / keg sizes can have different Nominal Speeds.
For lines with double fillers, the nominal speed of the line is equal to the sum of the purchased
capacity of both filers.
 
We will use the Nominal Speed per bottle, can keg type on a certain packaging line. Due to
market developments, many lines have now special equipment for various pack types, e.g. 4-
packs on trays. Because the success of such product development projects cannot be assured,
the necessary equipment sometimes results in a bottleneck. The strategic investment decision
resulting in the bottleneck should not influence the operational performance
measurement agreed upon with the packaging teams. To calculate the Nominal Speed of such a
‘bottleneck product’, the V-graph capacities of the line for its original products should be used.
 
Nominal Line Speed in case of “special products” using equipment with a “bottle-neck”
Speed.
Situation 1:

 
 Normal V-shape designed line with Nominal Speed = 40.
 Packer designed at 50, e.g. risk of failure of 1 out of 5 bottles to ‘serve’ the bottle-neck of the
filler at 40.
 
 
Situation 2:

 Extra packer B installed at machine speed of 30.


 Nominal Speed of the line during production of special product over packer B is 30; the filler
has to wait for every bottle to pass the packer B. Nevertheless, one should not reason that the
Nominal Speed of the line is lower than 30 because the bottle-neck equipment ‘hinders’ the
filler because it is doing that already!
 Nominal Speed of the line during production over packer A remains 40, of course.
Situation 3:
 Essentially this is a line with 2 dry ends.
 When a production order is run for the main and the special product, using packer A and B
simultaneously, the Nominal Speed of the line remains 40.
 When the order is such that the last part of the Time packer B is used only, the Nominal Speed
of the line still remains 40. Because scheduling is an essential aspect of the OPI. When the main
or the special product is produced in different runs, situation 1 and 2 applies.
 
Technical problems (i.e. one keg lane is broken-down) do not influence the Nominal Speed.
 
A complete re-engineering of the line (to accommodate a new bottle type, to replace various
machines) can result in new Nominal Speeds, to be based on the re-
engineered purchasing specifications.Similarly, when technically proven, the line can perform at
a higher Nominal Speed, this higher speed has to be used in BCS.
 
During the lifetime of a line, situations can occur influencing the speed of the line negatively. In
almost all cases, that will not influence the Nominal Speed. Aged lines that have no clear-cut
purchasing or re-engineering specifications must have Nominal Speeds based on the agreement
between the Technical Manager and the General Manager. That Nominal Speed is to be the
same as used in the 3-Year Plan.
 
In all cases mentioned above the rule applies that the new Nominal Speed must be
based on the documented agreement between the Technical Manager and the General
Manager.
 
 
Questions Nominal Speed Answer
Is it possible to report 0 reject and rework hours? It is highly unlikely, as it would indicate not losses on
the line between filler and pasteuriser, no sampling by
QA/QC, perfect processing, and no quality defects in
the final products coming of the line.
How should be account for product that was You add to the previous reported actual production
twice on the line, for example to put the missing time the production time it took to add the labels.
body labels on?
We have established in our site that one of the When the new adjusted peed is approved by the
existing lines can in fact run at a higher nominal Brewery Manager and the General Manager of the
speed than the line was originally purchased for. OPCO, than you apply the new higher nominal speed.
Do we still report the original nominal speed  or Ensure that your internal Master Data set is updated
the adjusted higher one? accordingly, as well as all capacity related calculations.
 

1.1.12 Simultaneous events Packaging
Above mentioned data definitions provide the reference for singular events. However, in
practice, more than one event can take place and as a matter of improvement, this
should be stimulated where possible to improve the overall performance of the line
This section is providing guidance on how to allocate simultaneous events into the
various time components of the OPI calculation.
 
In BCS we distinguish two types of events:
Planned events:
 Non-Operator Maintenance
 Planned down
 Change-over
 
The reference point for administration of simultaneous planned events:
 the longest event is leading in terms of total timing and allocation.
 

 
Unplanned events:
 NONA
 External Stops
 Breakdown
 
The reference point for administration of simultaneous unplanned events:
 the first event is leading in terms of total timing and allocation.
 

 
The reference point for administration of simultaneous planned and unplanned events:
 the first event is leading in terms of timing and allocation, any remainder of planned
 

event to be booked at the second event.


 
Examples
 
Example 1
External Stop (unplanned) and Planned Down Time (planned).
In the event of an extensive external stop (unplanned by character), line management
decides to perform a Planned Down Time activity prematurely. As the external stop
occurred as the first event, book the total time as external stop. First event rule applies.
 
Example 2
External Stop (unplanned) and Change Over (planned).
In the event of an extensive external stop (unplanned by character), line management
decides to perform a change over prematurely. As the external stop occurred as the first
event, book the total time as external stop. First event rule applies.
 
Example 3
Change- over (Planned) and Breakdown (unplanned)
During the change over, a breakdown is detected and line management decides to
perform the required repairs, superseding the allotted time for the changeover. Book
the scheduled time for the changeover to change over, and the remainder of the
breakdown repair time to Breakdown. (Scheduled time rule applies)
 
This chart provides a summary.
 

  Second event  
Non NONA Planned Change External Break down
First event Operator down Over Stops
Maintenance Time
 Planned Unplanned Planned Planned Unplanned Unplanned
Non
Longest Longest
Operator Planned - First Event X First Event
Event Event
Maintenance
First First
NONA Unplanned First Event - X First Event
event event
Scheduled Scheduled
Scheduled
planned planned
planned
Planned Longest down time, down time,
Planned Longest Event down time, -
down Time Event remainder to remainder
remainder
External to
to NONA
stops Breakdowns
Scheduled Scheduled
Scheduled
Change over Change over
Change
Longest time time
Change Over Planned Longest Event over time -
Event remainder to remainder
remainder
External to
to NONA
stops Breakdowns
External First First
Unplanned First Event X - First Event
Stops Event Event
First First
Breakdown Unplanned First Event First Event First Event -
Event Event

1.1.13 Summary chart time allocation Packaging


1.1.14 Labour Planning Efficiency Packaging
The concept of Labour Planning Efficiency (LPE) was introduced to facilitate the discussions on
OPI improvements. It shows how efficient the production teams are scheduled at the
line: Effective working time over Operating working time.
 
The various levels of interest in the supply chain hierarchy in line performance aspects are given
below:
 
Hierarchy
OPI Aspects
Level
Efficiency describes how good the line is running taking into account all unplanned
Line
disturbance:
Operator
Efficiency = Theoretical Production time/ Available production time,
Effectivity includes all aspects why the line is not producing:
Line
Effectivity = Preparation * Labour Planning Efficiency * Team Maintenance ratio, or
supervisor
Effectivity = Available production time/ Manned time.
The OPI describes the total time spent on the line, the OPI NONA the time that the
Head of teams are present:
Packaging OPI NONA = Preparation * Efficiency
department or
OPI NONA = Theoretical Production Time / Effective Working Time
Production OPI = Theoretical Production time/ Manned time
Unit or
OPI = Availability * Performance * Quality
Manager or
OPI = Effectivity * Efficiency
OpCo Supply
Chain Asset Utilization = Theoretical Production time / Total time = OPI * Utilization
Manager
Regional /
Global
Asset Utilization = Theoretical Production time / Total time = OPI * Utilization
Supply Chain
Director
 
What is the relevance of a high Labour Planning Efficiency? In fact it is the only way to cash in
the benefits of the performance improvement of the lines. Only when the performance
improvement leads to less labour cost per hl the company really benefits. Alternatively,
improving your OPI-NONA without improving your LPE is only half way and hardly improves the
cost-effectiveness of your business. This is the reason that we will adhere to OPI as the top-line
performance indicator.
 
Improving your Labour Planning Efficiency is not easy and typically requires other kind of
changes than to implement OPI-NONA improvements. It is often about changing the way you
are planning production, the working patterns agreed with the unions, different labour
conditions (over-time) etc. In general, the focus in on methods that increase the flexibility of the
work force.
 
OPI-NONA improvements themselves also can help improving your LPE. When the lines run
better and more reliable, Planning can put forward more tight production schedules. With high
seasonality not only less seasonal stock needs to be built up, but also Production can stay
longer in a lower shift pattern. When handled with care, even over-time can be an instrument to
improve your labour planning efficiency. In order to support the above, TPM provides a
framework to address improvement of LPE by challenging the labour losses.
 
1.3 Summary of Key Performance Indicators Packaging
 
OPI = Theoretical Production time/ Manned time
 
OPI = Availability * Performance * Quality
or
OPI = Effectivity * Efficiency
 
or
OPI = Team Maint. Ratio * Labour Planning Efficiency * OPI NONA
 
The OPI describes the total time spent on the line, the OPI NONA the time that the teams are
present:
OPI NONA = Preparation * Efficiency
or
OPI NONA = Theoretical Production Time / Effective Working Time
 
in which
Theoretical Production Time = Good product / Nominal Speed
 
 
The supporting ratios are:
Efficiency describes how good the line is running taking into account all unplanned disturbance
Efficiency = Theoretical Production time/ Available production time,
 
Effectivity includes all aspects why the line is not producing:
Effectivity = Preparation * Labour Planning Efficiency * Team Maintenance ratio
or
Effectivity = Available production time/ Manned time.
 
 
Preparation describes the influence of changeovers and planned-down time activities:
Preparation = Available production time / Effective working time
 
Labour Planning Efficiency describes the influence of NONA (No Orders, No Activities):
Labour Planning Efficiency = Effective working time /Operating working time
 
Team Maintenance ratio will be 100% when the packaging teams do all maintenance:
Team Maintenance ratio = Operating working time/ Manned time
 
 
The packaging team have most impact over the:
Line Performance = Theoretical Production time / Actual Production Time
 
 
Although not shown in the OPI composition graph:
Asset Utilization = Theoretical Production time / Total time = OPI * Utilization
and
Utilization = Manned Time / Total time
and
Change-over down time ratio = Change-over time / (Available Production time + Change-over
time)
 
Manned time = Actual production + External stops + Planned down + Change-over + NONA +
+ Non-Operator Maintenance
or
Manned time = Total time – Unused time
 
Lastly, the 3 ratios related to the O.E.E. (Overall Equipment Efficiency) approach, are defined by:
Quality = Good product / (Good product + Reject & rework)
or
Quality = Theoretical Production time / Production time
and
Performance = Production time / Operating time
and
Availability = Operating time / Manned time
 
Suggested Ratios to evaluate quality of maintenance and determine focus area:
 
MTTR = Mean Time To Repair
or
MTTR = Sum of all Breakdown times / number of breakdowns
and
MTBF = Mean Time Between Failure
or
MTBF = Sum of all up-times / number of breakdowns
or
MTBF = Operating Time / number of breakdowns
or
MTBF = (Available Production time – Sum of all Breakdowns-Sum External) /
number of breakdowns
and
AT = Technical Availability
or
AT = MTBF / (MTBF + MTTR)
 

 
 
The Ratio’s below are not available in BCS
 
MST = Mean Stoppage Time
or
MST = Sum of all Minor stoppage times / number of Minor Stoppages (Assists)
and
MTBA = Mean Time Between Assists
or
MTBA = Sum of all up-times / number of Minor Stoppages (Assists)
or
MTBA = Operating Time / number of Minor Stops Assists
 
and
AO = Operational Availability
or
AO = MTBA / (MTBA + MST)

You might also like