Investigation on Packaging Process Using Method of OEE and Arena Software to Improve Beer Productivity (United Beverages S.C in Ethiopia)

Abstract

Now a days competition in business industries is forcing companies to constantly analyze and improve their manufacturing systems. even though productivity of manufacturing industry plays significant role in enabling an industry to survive in this competition, it can be negatively impacted by the presence of production disturbances that hinder the production system efficiency, performance and reduce profitability. The major problems of the case company packaging line are related to low throughput, efficiency losses, higher production cost and others. As a result, overall equipment efficiency of the packaging line and planned production volume do not meet the pre-seated target. Therefore, The aim of this study is to evaluate line efficiency and identify possible improvements to their existing manufacturing system by minimizing packaging efficiency losses due to disturbances that affect the packaging line operation, and performance. As a case study, United Beverages S.C (UB) was used. In relation to Packaging line, efficiency losses, OEE analysis, and simulation modelling are conducted, primary and secondary data are collected from the case company through direct observation, documentation, and company reports. Also, the past one production year data are presented, calculated, and analyzed by one of the total quality management tools, which is over all equipment effectiveness (OEE). Also, different tools such as OEE, pareto chart, fish bone diagram, Arena simulation software are used to analysis and improvement process. As a result, the disturbances that causes production and efficiency losses are identified, focus of improvement areas associated with their challenges and their root causes are investigated, then corrective action plans are suggested as strategy for improvement. After analyzing the packaging line model through Arena simulation software, the cause of efficiency losses under varies condition were studied and performance measures are recorded. Also, several problems including performance losses starvation and blockage are identified as problems. Then changes and modifications on the actual system simulation model are suggested. Finally, an improved model was proposed where packaging line value added time increases by reducing short stops, starvation and blockage time by 4.46%. Therefore, it has been concluded that identification and elimination of production bottlenecks has great positive impact on productivity improvement and loss reduction which ultimately ensures a company’s profitability.Now A Days Competition In Business Industries Is Forcing Companies To Constantly Analyze And Improve Their Manufacturing Systems. Even Though Productivity Of Manufacturing Industry Plays Significant Role In Enabling An Industry To Survive In This Competition, It Can Be Negatively Impacted By The Presence Of Production Disturbances That Hinder The Production System Efficiency, Performance And Reduce Profitability. The Major Problems Of The Case Company Packaging Line Are Related To Low Throughput, Efficiency Losses, Higher Production Cost And Others. As A Result, Overall Equipment Efficiency Of The Packaging Line And Planned Production Volume Do Not Meet The Pre-Seated Target. Therefore, The Aim Of This Study Is To Evaluate Line Efficiency And Identify Possible Improvements To Their Existing Manufacturing System By Minimizing Packaging Efficiency Losses Due To Disturbances That Affect The Packaging Line Operation, And Performance. As A Case Study, United Beverages S.C (Ub) Was Used. In Relation To Packaging Line, Efficiency Losses, Oee Analysis, And Simulation Modelling Are Conducted, Primary And Secondary Data Are Collected From The Case Company Through Direct Observation, Documentation, And Company Reports. Also, The Past One Production Year Data Are Presented, Calculated, And Analyzed By One Of The Total Quality Management Tools, Which Is Over All Equipment Effectiveness (Oee). Also, Different Tools Such As Oee, Pareto Chart, Fish Bone Diagram, Arena Simulation Software Are Used To Analysis And Improvement Process. As A Result, The Disturbances That Causes Production And Efficiency Losses Are Identified, Focus Of Improvement Areas Associated With Their Challenges And Their Root Causes Are Investigated, Then Corrective Action Plans Are Suggested As Strategy For Improvement. After Analyzing The Packaging Line Model Through Arena Simulation Software, The Cause Of Efficiency Losses Under Varies Condition Were Studied And Performance Measures Are Recorded. Also, Several Problems Including Performance Losses Starvation And Blockage Are Identified As Problems. Then Changes And Modifications On The Actual System Simulation Model Are Suggested. Finally, An Improved Model Was Proposed Where Packaging Line Value Added Time Increases By Reducing Short Stops, Starvation And Blockage Time By 4.46%. Therefore, It Has Been Concluded That Identification And Elimination Of Production Bottlenecks Has Great Positive Impact On Productivity Improvement And Loss Reduction Which Ultimately Ensures A Company?�?S Profitability.