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CASE STUDYPRODUCTIVITY IMPROVEMENT

Kalpesh.B.Prajapati.HPGD/AP14/0932

SPECIALIZATION: OPERATIONS

WELINGKAR INSTITUTE OF MANAGEMENT &

DEVELOPMENT RESEARCH

YEAR OF SUBMISSION: FEBRUARY 2016

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Case Study – Productivity Improvement

ACKNOWLEDGEMENTS

I am highly obliged to and express my gratitude and thanks to My project guide Mr.

Ashimkumar Goswami, DGM- Central Engineering Services , Dahanu Plant for his

guidance and co-operation, also to Mr.Bipin Patel & Mr.Girish Krishnani (Colleague)

for the assistance as an when required in getting in deep the methodology as worked in

ACG Worldwide in the topic selected, who have helped me in the project with their

expert advice.

Also, I would like to thanks ACG worldwide to give me opportunity to enhance

educational qualification through further study at Welingkar Management Institute.

Lastly I would like to thank all who have directly and indirectly helped me in making

this project successful.

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CERTIFICATE FROM THE GUIDE

This is to certify that the Project work titled

CASE STUDY: PRODUCTIVITY IMPROVEMENT is a bonafide work carried out by

MR. Kalpesh.B.Prajapati. (HPGD/AP14/0932) candidate for the PGDBA (Operation

Management) of the Welingkar Institute of Management under my guidance and

direction.

SIGNATURE OF THE GUIDE:

Name: Ms. Ashimkumar Goswami.

Designation : DGM, Engineering Services Dept.

Address: ACG Worldwide-

Associated Capsules Pvt.Ltd

Ashagad, Dahanu , Palghar , Maharastra

DATE: 22nd, Feb. 2016.

PLACE: DAHANU ROAD

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CONTENTS

Sr. No. Topic Page No.

1. Introduction to the Topic under study ( Productivity Improvement) 5 to 17

Definition of Production & Productivity

Strategies For Improving Productivity

Types of Productivity Measures

Factors Influencing Productivity

Concepts & Suggestions on Productivity Improvements

6 to 9

10 to 12

13 to 14

15

16 to 17

2. Introduction to ACG Associated Capsules Pvt. Ltd. 18 to 28

Introduction of ACG Worldwide 18 to 20

ACG Value & Beliefs 21 to 23

Mission of the Company, Quality/ Environment, Health & Safety

Policy

24 to 26

Organization Chart 27

Org. Chart (PFD) 28

3. Introduction to Process of Empty hard gelatin capsule

manufacturing.

29 to 32

Hard Gelatin capsule manufacturing process 29

Capsule Printing – A cometitive advantage to pharma industry 30 to 32

5. METHODOLOGY 33 to 86

Introduction of Productivity improvement through Six sigma

methodology at ACPL printing.

33 to 34

Phases of RDAMIC six sigma

Recognize phase

Define Phase

Measure Phase

Analyze Phase

Improve phase

Control Phase

35

35

36 to 45

46 to 54

55 to 68

69 to 79

80 to 86

6. Achievements & Learning from the project 87

7. Conclusion 88

8. Recommendation 89

9. Bibliography 90

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INTRODUCTION TO PRODUCTIVITY IMPROVEMENT

What is Productivity?

Productivity is the amount of result ( out put) an organization gets for a given amount of

input( man, machine, money, material ). Productivity isn’t half the things people (who should

know better) say it is .It does not mean

Working harder – unless people are loafing on the job;

Cutting cost – unless this can be done with out affecting quality;

Reducing staff & workers – unless your market is shrinking;

Extra work for managers - it’s part of their job;

Employing specialist – it’s a job for everyone.

There is nothing new about productivity, if go as far back as 400 BC & AD 1400 an efficient

assembly line was working in Venice. By 1800’s role of the worker in productivity had been

recognized but it was not until 1900’s that the modern approach to the productivity of

industrial process really come in to being.

Since the word “Productivity” has become best – used (abused) word manager’s and

politician’s vocabulary. Many people become confuse production and productivity. Whilst

both are important to any business they are really quite different in meaning. So let’s clear up

misunderstanding.

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PRODUCTION

Production is the process of converting resources into products or services. It is usually

measured in terms of output per time period (e.g. boxes per hour, kgs per day, booking per

month) or cost per unit of output (e.g. Rs.100 per box, Rs.50 per kg, etc).The objective of

production operations is to meet the forecasted needs of the market in which they perform at

the lowest possible cost.

RESOURCES CONVERSION OUTPUTManpower Agriculture Products Machinery Mining ServicesMaterials IndustryMoney Services

The output of a production process can be improved by increasing the input of resources or

by changing the process or both.

RESOURCES CONVERSION OUTPUT1 man day Carrying bricks by hand 500 bricks per day

1 man day with overtime carrying bricks by hand 550 bricks per day

If we increase the resources by making a worker work overtime we will increase the output of

the process and so meet our market needs. However we may not have improved our cost in

doing so.

RESOURCES COST INPUT OUTPUT COST PER OUTPUT

1 man x 8 hours @ Rs.20 / hour Rs.160 Rs.160

500 bricks Rs.0.32 per brick

1 man x 8 hours @ Rs.20 /hour = Rs.160

Rs.120 Rs.240 550 bricks Rs.0.48 per brick2 hours O.T.

@ Rs.40/hour = Rs.80

If we can modify process to enable the man to produce more without working harder or

longer we may be meet our target and reduce cost the cost of output as well.

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RESOURCES COST INPUT OUTPUT COST PER OUTPUT

1 man x 8 hours @ Rs.20 /hour = Rs.160

Rs.240 Rs.240 1000 bricks Rs 0.24 per brick1 wheelbarrow x 8 hours

@ Rs.10 / hour = Rs.80

By adding to the resources and changing the process we have increased production by 100 %

& reduced cost by 50 %

Service OperationsIn our examples so far we have tended to concentrate on the more traditional conversion

processes which occur in manufacturing , agriculture, mining etc. and which, until recently

formed the major part of business revenue.

Today, they have been overtaken by the service industry, which in some western countries

forms as much as 80% of all industry. Service operations make use of resources to create

products just the same as does manufacturing industry although frequently the product is hard

to visualize. Airline, hotels, markets, chemist shops and garages are all examples of service

operations, which use manpower, machinery, material & money to creat a product or

products, which meet the needs of their customers.

When you arrive safely and comfortably at your destination your flight has been the product

of process, which buys airplanes, maintains them, trains people to fly them and provide in-

flight service, use millions of units of fuel, food & toilet paper and handles millions of items

of baggage. The production of an airline can be measured in “Passenger / miles” and cost

and contribution of each resource can be similarly measured.

Exactly the same principle applies to the service divisions of the company such as personnel,

finance and marketing. The product they produce must be defined and the resources involved

must be used effectively. It is no more difficult to measure the output of an accounts clerk

than a machine operator. Both has contribution to make the productivity of the company.

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PRODUCTIVITY

Productivity is simply a measure ratio between the output of a process and the input of

resources needed for it. It is usually expressed as output divided by input,

Output can be expressed in terms of unit or volume (e.g., tones, nos, liters, boxes etc.) and

these units have usually been determined for production planning purposes. In cases where

outputs cannot be individually defined a monetary total can be used (e.g.Rs.of production,

Rs.of sales etc.)

Inputs are usually separated into Manpower, Machinery and Materials. Incases where

inputs cannot be segregated a monetary value can be substituted (e.g.Rs.of raw material).

INPUTS UNIT OF MEASURMENTS

Manpower Per man-hour Machinery Per machine hour Materials Per materials unit Money Per Rs. Of unit

The most commonly used measure of productivity is Manpower and it is the one usually

referred to in the press when comparing our productivity with that of other countries.

However, since manpower often forms a relatively low component of the total cost of a

product it is vital to consider the productivity of all resource inputs when studying the

productivity process.

In a large printing operation the relative costs of inputs expressed as a percentage of total

direct cost were

* Manpower -- 25 %

* Materials -- 40 %

* Machinery -- 35 %

A newly – appointed manager considered the operation overstaffed and, after a long and

damaging conflict with works union, succeeded in reducing labor by 10% thus reducing

overall cost by 2.5% for which he warmly congratulated by the board.

However, both the manager and the Board apparently overlooked the fact that materials

wasted and spoiled in the process amounted to 10% (or 4% of total cost), whilst set up and

cleaning time on process amounted to 30% of machine time (10.5% of total cost).

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If the manger had devoted the same energy to improving the productivity of materials and

machinery by reducing wastages and down time but at least 50% as he had done in reducing

labour, he would have reduced total cost by more than 7% without running the risk of costly

labour stoppages.

The term “Machinery” is used to cover all machines, equipment and transport used in the

process. Similarly “Materials “is used to cover not only raw or semi finished material but also

power, light, steam and other utility consumed.

IMPROVING PRODUCTIVITY

The cost of any product or service is the sum of the costs of the resources used in producing

it. The more productive each of those resources can be made the lower the final cost of the

product. In a free market the lower cost of a product, the greater the demand it generates and

more profitable the enterprise, with ultimately a beneficial effect on the living standard of

everyone.

Categories of Wastages --- Directly effecting on productivity.

1. Work-in-process------- Stocking items not immediately needed2. Quality -------------------- Producing defective products.3. Facilities ------------------ Having idle machinery and breakdowns, taking too long for

setup.4. Expenses ------- ---------- Over investing for required output.5. Indirect labor ------- ------Excess personnel due to bad indirect labor system.6. Talent ----- ---------------- Employing people for jobs that can be mechanized or

assigned to less skilled people.7. Motion -------------------- Not working according to the best work standards.8. Product Design ---------- Producing products with more functions than necessary.9. New-product run-up ---- Making a slow start in stabilizing the production of a new

product

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SEVERAL STRATERGIES FOR IMPROVING PRODUCTIVITY

1. Increased output for the same input.2. Decreased input for the same output.3. Proportionate increase in output is more than the proportionate increase in the input.4. Proportionate decrease in input is more than the proportionate decrease in output.5. Simultaneous increase in the output with decrease in the input.

1. Increased output for the same input

In this strategy, the output is increased while keeping the input constant. Let us assume that in a steel plant, the layout of he existing shops is not proper. By slightly altering the location of the billet-making section, i.e. bringing it closer to the furnace which produces hot metal, the scale formation at the top of ladles can be reduced to a greater extent. The molten metal is usually carried in ladles to the billet-making section. In the long run, this would give more yields in terms of tons of billet produced. In this exercise, there is no extra cost involved. The only task is the relocation of the billet-making facility by shifting it closer to the furnace which involves significant cost.

2. Decreased input for the same output

In this strategy, the input is decreased to produce the same output. Let us assume that there exists a substitute raw material to manufacture a product which has the required properties and it is available at a lower price. If we can identify such material and use it for manufacturing the product, then certainly it will reduce the input cost. In this exercise, the job of the purchase department is to identify an alternate substitute material. The process of identification does not involve any extra cost. So, naturally, the productivity ratio will increase because of the decreased input by way of using the cheaper raw material to produce the same output.

3. Proportionate increase in output is more than the proportionate increase in the input

Consider the example of introducing a new product into the existing product mix of an organization. Let us assume that the existing facilities are not fully utilized. So, the R&D wing of the company has identified a new product which has a very good market and which can be manufactured with the surplus facilities of the organization. If the new product is taken up for production, then the following will result.

(a)There will be an increase in the revenue of the organization by way of selling the new product in addition to the existing product mix.(b)There will be an increase in the material cost, and operation and maintenance cost of machineries because of producing the new product.

If we closely examine these two increases, we find that the proportionate increase in the revenue will be more than the proportionate increase in the input cost. Hence, there will be a net increase in the productivity ratio.

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4. Proportionate decrease in the input is more than the proportionate decrease in the output

5.

Let us consider the reverse case of the previous example, i.e. dropping an uneconomical product from the existing product mix. This will result in the following:

(a)There will be a decrease in the revenue of the organization because of dropping a product from the existing product mix.(b)There will be decrease in the material cost, and operation and maintenance cost of machineries because of dropping an existing product from the product mix.

If we closely examine these two decreases, we find that the proportionate decrease in the input cost will be more than the proportionate decrease in the revenue. Hence, there will be a net increase in the productivity ratio.

6. Increase in the output with decrease in the input:

Let us assume that advanced automated technologies like, Robot, Automated Guided Vehicle System (AGVS), etc., are available in the market which can be employed in the organization of our interest. The outcome of these modern tools can be summarized as followings.

(a)There will be a drastic reduction in the operation cost. Initially, the cost on equipment would be very high. But, in the long run, the reduction in the operation cost would break-even the high initial investment and offer more savings on the input.(b)These advanced facilities would help in producing more number of goods because they don’t experience fatigue. The increased production will therefore yield more revenue.In this example, there is an increase in the revenue while there is a decrease in the input in the long run. Hence, the productivity ratio will increase at a faster rate.

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Productivity Improvement in Assembly operation of Household Fans

In a factory making domestic appliances the assembly operation for household fans

comprised three workers. One attached the rotating mechanism to the base; one attached the

motor and threaded the flex through the base; one fitted fan blades and guard assembly. The

complete fan then went off to the inspection department. The work was monotonous, labour

turnover high and number of rejects which had to be reworked was also high.

The factory manger attended a course on improving the content of work and, when he

returned, decided to try out some of the things he had learned. He selected two workers and

made each responsible for all assembly operations – each turning out complete fan

assemblies. He also made them inspect their own work and sign the guarantee label which

was attached to the fan.

After a big learning period they began to compete each other and to take a pride in the

quality of the work they turned out. The daily productivity figures change dramatically.

SystemOutpu

tRejects %age Net output

Man-

hoursProductivity

Old 60 10 16 50 24 2.1 / hour

New 48 2 6 45 16 2.8 / hour

So by decreasing the manpower by 33% the decreasing output by only 10% Productivity

increased by 33 %. A smaller decrease resulted in the cost of labour and materials per item

thus making the product more profitable and/or more competitive. The spare worker could

either be used full time or part time to increase production (If the lower price increase

demand) or could be employed in some other productive capacity.

Today, as ever, no organization, public or private, can afford to ignore the constant need to

improve productivity nor can any employee evade his/her responsibility for playing their part

in the work of productivity improvement. It’s not difficult to do once you know the basics

involved in measurement, standard setting and method improvement. The two most difficult

parts of the operation are, firstly starting it and secondly keeping it going.

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Productivity Improvement is not a job for specialist only – It should be part of every job

in the organization.

DIFFERENT PRODUCTIVITY MEASURES

Material productivity

It shows the quantitative relationship between the total output and the material input

Material productivity =Total output / Material input

Labour productivity

It shows the quantitative relationship between the total output and the material inputLabour productivity =Total output/Labour input

Capital productivity

It shows the quantitative relationship between the total output and the Capital input

Capital productivity =Total output/Capital input

Energy productivity

It shows the quantitative relationship between the total output and the Energy input

Energy productivity =Total output/Energy input

Other manufacturing productivity

It shows the quantitative relationship between the total output and the other manufacturing expenses Other manufacturing expenses productivity = Total output / other manufacturing expenses input

Total productivity

It shows the quantitative relationship between the total output and the total resources input (material, labour, capital, energy, and other manufacturing expenses)

Total productivity = Total output / (Material +labour+ capital +energy+ other manufacturing expenses) input

Productivity Trend Analysis

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Productivity is an important field for the production and financial management. In production analysis the direction of change over a period of time is of crucial importance. It is therefore, very essential for a production manager to make a study about the trend and direction of productivityFor the productivity analysis, the indices of Material input, Labour input, Capital input, Energy input, other manufacturing input and Total output have been calculated

Break even analysis

Break even analysis is the method of studying relationship between revenue and cost in relation to sales volume of a business enterprise.According to Matz Curry & Frank “a break even analysis determine at what level cost and revenue are in equilibrium”.

Terminologies used in Break even analysis:

Contribution

It is a difference between sales and the variable cost of sales.

Contribution = Sales - variable cost.

Profit Volume Ratio

It expresses the relationship of contribution to sales. It is popularly known as P/V Ratio.

P/V Ratio = Contribution / Sales X 100

Break even point It may be defined as that point of sales volume at which total revenue is equal to total cost. It is the point of NO Profit and No Loss. If sales are increased behind this level there shall be profit to the organization.

Break even point (Sales volume) = Fixed cost / P/V Ratio Margin of Safety

It indicates the value/volume of sales directly contribute to profit, as fixed cost have already been recovered at Break even point.

Margin of Safety = Actual Sales – Break even sales.

Margin of Safety ratio = Margin of Safety / Actual sales X 100

Break even Chart It shows the inter relationship between cost, volume and profit. It is considered to be a most useful graphical representation of accounting data.

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FACTOR INFLUENCING PRODUCTIVITY

Factors influencing productivity can be classified broadly into two categories

1. Internal factor and 2. External factor

INTERNAL FACTOR

Product factor Plant and equipment Technology Material Energy Human factor Work method Management style

EXTERNAL FACTOR

Government policies Infrastructure Natural resources

Methodology to Improve Productivity

PDCA cycle Quality circles Continuous Improvement Kaizen Concurrent Engineering Just in Time manufacturing Bench Marking Business Process re-engineering Total Quality Management Six Sigma approach

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Concepts & Suggestion on Productivity Improvement

JAPANESE SHISEIDO CORPORATION

Suggestion for increase the productivityCompanies can increase productivity in a variety of ways. The most obvious methods involve automation and computation which minimize the tasks that must be performed by employees. Recently, less obvious techniques are being employed that involve ergonomic design and worker comfort. A comfortable employee, the theory maintains, can produce more than a counterpart who struggles through the day. In fact, some studies claims that measures such as drastic effect on office done by productivity. They suggest that productivity could be increased by means of perfuming or deodorizing the air conditioning system of work place. Increase the productivity also can influence society more broadly, by improving living strands, and creating income.

NEW CONCEPTS OF PRODUCTIVITY AND ITS IMPROVEMENT

Arturo L. Tolentino

The globalization of manufacturing and the increased concern about social and ecological issues make productivity improvement more important. At the same time, a broader meaning of productivity calls for a wider set of indicators to catch and reflect the new elements and parameters involved. The broader conception of productivity is incorporating wider definitions of what the outputs and inputs are of the production-distribution process. The social and ecological impacts are now increasingly considered as outputs of the production process in addition to the traditional physical and value measures of outputs. Similarly, the social and ecological costs are now also being recognized as inputs in the productivity equation. With increasing concerns on the social and ecologic impacts of the operations of enterprises, the definitions of what are inputs and outputs are changing. Social and ecological inputs and outputs are increasingly being factored-in the efficiency and effectiveness performance of the enterprise.

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European productivity agency

Productivity is an attitude of mind. It is the mentality of progress, of the constant improvement of that which exists. It is the certainty of being able to do better today than yesterday and continuously. A major problem with productivity is that it means things to many people. Economists determine it from Gross National Product (GNP), managers view it as cost cutting and speed up, engineers think of it in terms of more output per hour. But generally accepted meaning is that it is the relationship between goods and service produced and there sources employed in their production.

Régis Bonnelli - Ministry of Economy

From the point of view of global manpower productivity - measured by the production/ potentially active population ratio - it is only possible to increase its value in the medium term by increasing production (numerator of the fraction). The solution of deliberately reducing the denominator fortunately has not been considered since the defeat of Nazism. It is an elementary question that to maintain constant the number of busy or employed people and at the same time to increase the manpower productivity it is necessary to increase the production in the same proportion. For a country with a growing potentially active population it is necessary to grow even more in order to maintain the occupation rate. Exporting workers - which in a way we are already doing - does not seem a desirable solution for a country with natural resources like Brazil.

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INTRODUCTION OF THE ORGANISATION

ACG Worldwide has been serving the pharmaceutical industry for five decades and is the second largest manufacturer of empty hard capsules in the world. The group comprises of 13 companies, including subsidiaries in China, USA, Indonesia, Brazil and Europe.

ACG Worldwide has a presence in over 100 countries with its products and services, employing approximately 3,200 members that strive to provide world-class technology across multiple domains. We offer a complete range of solutions beginning with empty hard capsule shell ; granulation and coating; capsule filling; tabletting; packaging films; blister packing and carton packing to the end-of-line solutions. With over 20,000 machine installations worldwide, it speaks lengths of the high quality standards we follow at ACG as well as complying with major international quality certifications or legislations.

ACG Worldwide is committed to a core corporate competence. Our research teams strive to develop innovative technology in order to continually give our customers the benefit of a cost competitive edge plus world-class technology. 'SciTech Centre', the group's 50,000 sq. ft. R & D center located at Jogeswari in the heart of Mumbai, is a government-recognized research institution. Especially in the last 25 years, it has witnessed breakthroughs in dosage form development-including controlled-release-pharmaceutical engineering, veterinary and agricultural research, emphasizing on delivery systems.

ACG Worldwide. We are your global partners for manufacturing, packaging and R&D solutions.We began our operations with the manufacture of hard gelatin capsules. Fifty years hence, we

have expanded our operations to blister packing, encapsulating, cartooning, packaging, line

solutions & the works. An expansive range of products is available under the parent name of

ACG Worldwide. We intend to be total solution providers in the pharmaceutical industry. A

broad framework of operations fit into the brand name of ACG Worldwide, making it a truly

Global & comprehensive company in this industry.

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In five decades we have moved from a small beginning to partnering with the best in the

world. With a worldwide presence in over 100 countries, today we are second largest

manufacturers of gelatin capsules.

Renowned for having the world’s strongest value chain system, we have branched out

through our group companies to offer an unmatched range of products and services like

capsule filling, packaging, cartooning and new machine innovations.

ACG Worldwide provides world-class technology, the complete package of solutions – from

empty capsules to granulation and coating, to capsule filling, packaging films, blister packing

and carton packing. Our products are exported to more than 100 countries and we have

installed over 20,000 machines worldwide. We have set high standards of quality, with most

of our group companies acquiring major international quality certifications.

ACG Worldwide is committed to Research and Development for continuous delivery of

innovative solutions. Our research teams continuously strive to develop innovative

technology to offer our customers the competitive edge.

There are multiple companies under the ACG Worldwide umbrella. With the decentralization

of operations, individual companies are able to provide undivided attention to their respective

line of products yet work seamlessly together to offer customers "end-to-end" solutions.

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The companies that comprise ACG Worldwide are ACG-Associated Capsules Pvt.Ltd , ACG-

Pampac, ACG-Pharmapack, ACG-Pam, Pam Glatt and ACG-Inspection.

Foreign subsidiaries include ACG Europe, ACG North America, ACG Lukaps (Croatia),

ACG Shanghai (China), ACG Brazil , ACG Thailand and PT UCI.

All group companies' work harmoniously to provide seamless end-to-end solutions for the

pharmaceutical manufacturing industry on a global basis.

SciTech Centre, the group’s 50,000 sq. ft. R & D Center in the heart of Mumbai, is a

government recognized research institution. Over the last 25 years it has been actively

engaged in research in the areas of dosage form development including controlled release,

pharmaceutical engineering, veterinary and agricultural research, particularly in delivery

systems.

ACG Associated Capsules Pvt. Ltd. (ACG ACPL) is one of the largest producers of empty

hard capsule shell in the world. Close to the international airport and the seaport, our three

plants in Mumbai, Dahanu and Shirwal in the state of Maharashtra, one at Pithampur, Indore

( Madhya.Pradesh) service approximately 1,000 customers worldwide.

The entire range of capsule sizes are manufactured, including special features such as two &

four color printing, across a diverse range that includes gelatin, cellulose, fish gelatin and

special capsules for double-blind trials, each designed to serve a specific purpose and

marketing promise. The company is known for its precision in manufacturing, intensive in-

process controls reinforced by rigorous statistical techniques and analysis. ACG ACPL

practices Six Sigma, 5S and Process Analytical Technology (PAT) to ensure consistency,

uniformity and conformance to specifications. All systems comply with ISO 9001:2008, ISO-

14001:2004, DMF and WHO standards. In addition to this, the Quality Assurance Program

implements numerous process quality initiatives to help reduce or eliminate defects and

enhance the overall quality of our products.

ACG Associated Capsules serves its customers through a wide network of offices,

representatives and agents. ACG Associated Capsule's mission is to find solutions to its

customers' problems through expertise derived from servicing both large and small needs.

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http://www.acg-lukaps.com/

http://www.acg-northamerica.com/

http://www.acg-inspection.com/

http://www.acg-associatedcapsules.com/

http://www.acg-pam.com/

http://www.acg-pharmapack.com/

http://www.acg-pampac.com/

http://www.acg-pampac.com/

http://www.acg-associatedcapsules.com/

http://www.acg-world.com/


ACG - Values and Beliefs

Businesses prosper and survive not only because of what they do, but also because of how they do it.

The 'means' by which a business operates is governed by certain fundamental values and beliefs existing within the business. This inturn is derived from the ethics and principles of the founders and the people involved in the start up of the business.

VALUES, BELIEFS, ETHICS and PRINCIPLES are the touchstones of a business. They form the fundamental attributes to which people relate. They are what cause people to be loyal, to love the company and to give of their unselfish best.

We would like to share with you the "Beliefs" dear to us at ACG Worldwide that we hope you will also value and honor and pass on to the people who work with you.

We believe that it is our duty to contribute to the prosperity and the progress of our nation. We manufacture products that help in improving the health of our population. We improve our country's image and economy through exports and import substitution. We work for the social up-liftment of the community wherever we are located.

We have had a long and close association with the pharmaceutical industry and we endeavor to remain a key supplier of products and services to them.

We believe that we must constantly interact with our customers to learn how we can serve them better. We make certain that people from all parts of our organization are exposed to such interaction.

Our organisation continually invest in quality improvements to ensure that our products and services are on par with rising customer expectations and equal to international standards.

We always treat whomsoever we do business with, in a just and fair manner and as equals.

Our business strategy is to maintain our leadership in the domestic market and to strive for leadership in the international market.

We believe that it is in the long-term interest of our business to optimize productivity by various means available to us.

We place our products in specific market segments, use fair pricing, carefully control costs and strive for excellence and innovation in products, quantity and service to command a premium for our products.

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During work we behave like one family, where each member is treated with dignity, trust

and respect.

We firmly believe that an open culture and participative style of management works well for us.

We believe in being impartial and unbiased. We recruit people based on merit; reward people based on performance and promote people based on ability.

We believe that the most valuable resource we have is the combined strengths of our people working for a common purpose. With this in mind, we will structure jobs so that they provide challenge and develop individual capability, offer opportunities of job rotation and continually expose people to new thoughts and ideas to augment their knowledge and skills.

We truly believe in and value the creative talents of our people. This has been the key to our success in the past and we greatly rely on internal talent to develop the technology and systems needed to keep us competitive in future.

We always have a close regard and concern for the welfare of our people and their families.

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THE SIGNIFICANCE OF THE GROUP’S LOGO

The ACG Worldwide logo shows three stripes join together to form a triangle, rising like a sail

filled with wind. They represent ACG Worldwide energy, movement and growth. Crowning the

triangle is the stripe for vision and innovation. Below it is the stripe that represents technology.

And holding the two up is the stripe that represents the people who make it possible. Together

as one they surge ahead. The new ACG Worldwide.

Together with energetic resolution, they surge ahead from a firm foundation, represented by

the monolith square. The earthy red reflects the strength and character born from years of

experience and understanding of the pharmaceutical industry. Together they form the forces

that bring change.

ACG Worldwide is ready to redefine the future, along with you.

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Mission of the Company:

"It is our intention to become a global market leader in capsules and related machinery,

packaging films and packaging systems and to concentrate on the health care business as our

core area for growth.

We will use our technical expertise to create wealth in other parts of the world by becoming a

Transnational Company.

Our Internal Values are reflected in the image we portray. We would always like to be

identified with Quality, Service and Fairness"

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QUALITY POLICY

We at ACG Associated Capsules Pvt. Ltd. shall strive for leadership position in global

market for capsule shells.

We shall achieve the above policy through

• Continual improvement in all spheres of activities

• Enhancement of customer satisfaction

• Involved stakeholders adapting process approach

• Process and equipment competent employees

• Surpassing Safety, Health and Environmental norms

• Positive Economic Value Addition.

To continue our world class manufacturing status, we will ensure compliance to cGMP,

applicable regulatory requirements and ISO 9001: 2008 standards. We will continue to

invest in other related quality management systems.

The quality policy and objectives are reviewed in every management review meeting for their continuing suitability. It is ensured that they are understood, implemented and maintained at all levels in the organization.

25


A member of ACG Worldwide

ENVIORNMENT, HEALTH & SAFETY POLICY

AT ACG ASSOCIATED CAPSULES PVT. LTD. PROTECTING PEOPLE AND THE

ENVIORNMENT WILL BE PART OF EVERYTHING WE DO AND EVERY

DECISION WE MAKE.

EACH EMPLOYEE HAS A RESPONSIBILITY IN ENSURING THAT OUR

PRODUCTS AND OPERATIONS MEET APPLICABLE GOVERNMENT OR ACPL

STANDARDS WHICHEVER IS MORE STRINGENT.

OUR GOAL IS TO ELIMINATE ALL INJURIES, PREVENT ADVERSE

ENVIORNMENT & HEALTH IMPACTS, REDUCE WASTE AND EMISSIONS AND

PROMOTE RESOURCE CONSERVATION AT EVERY STAGE OF THE LIFE

CYCLE OF OUR PRODUCTS. WE WILL REPORT OUR PROGRESS AND BE

RESPONSIVE TO THE PUBLIC.

26


ACG Associated Capsules Pvt. Ltd.,

Organization Chart

27

HOD – Gelatin

MGT: 14WORKMEN: 12

HOD – Prod.

MGT: 28WORKMEN: 31

HOD – Offline Latin

MGT: 8WORKMEN: 17

General Manager

HOD -Utility

HOD -PFD

MGT: 13WORKMEN: 20

MGT: 16WORKMEN: 46

HOD – GelatinHOD – Project Latin

HOD – Stores

HOD – HPMCGelatin

HOD – I.T.

MGT: 3WORKMEN: 0MGT: 3WORKMEN: 0

MGT: 3WORKMEN: 1

MGT: 9WORKMEN: 14

MGT: 1WORKMEN: 0

HOD – HR& Admn.

HOD – Finance

HOD – Purchase

HOD – Q&A Archas

MGT: 9WORKMEN: 0

MGT: 6WORKMEN: 0MGT: 6WORKMEN: 0

MGT: 2WORKMEN: 0

MGT: 18WORKMEN: 32


ACG Associated Capsules Pvt. Ltd.,

ORGANIZATION CHART – PFD

28

Asst.ManagerLogistics & Dispatches

HOD - PFD

Dispatch supervisiors

Shift Incharge & Supervisors

Printing & Packing Operators

Asst.ManagerPRINTING &

PACKING (WIP)

Operators


PROCESS OF EMPTY HARD GELATIN CAPSULE MANUFACTURING

Empty Hard Gelatin capsules are manufacturing from Gelatin granules, D.I water & food grade colorants. Moulds of cap & body are getting dipped in coloured gelatin solution, dipped moulds are passed through drying hood for drying of gelatin film, Caps & bodies are stripped out from mould & are joining partially.

Partially joined capsules are counted as per required packed size & transfer for printing or final packing operation as per customer’s requirements.

Capsules are manufactured in sizes 000, 00, 00el, 0, 0el, 1,2,3,4 and 5, Size “000” is the biggest size & Size “5” is the smallest size of the capsules.

Process flow of Capsule manufacturing

Approved by the major listed customer:Pfizer Dr.Ready Lab RanbaxyMerckKV Pharma USAWyeth USACiplaLundbeck, DenmarkAstra-Zeneca , SwedenPliva, CroatiaUnited Labs, PhilippinesAnd many more

•Product approval received with ACG capsules & products commercialized in USA & EU.•• Some of the approved molecules are - Amoxicillin - Cephalexin - Gabapentin

Gelatin solution preparation

Capsule moulding process

Capsule counting & Inspection

Capsule Printing

Final inspection & packing

Final QA clearance

Dispatches to customers

29


- Zonisamide

CAPSULES PRINTING - A COMPETITIVE ADVANTAGE FOR PHARMA INDUSTRY.

Since last five years, Pharma Industries are demanding printed capsules as a protection from spurious drugs and brand security of their products.

ACG having huge range & capacity for printing of capsules in all sizes from bigger size “000” to smaller size “5”Basically two types printing takes place on capsules – Linear Printing & Circular Printing.

ACG is a far ahead in Capsules printing technology globaly.ACG pioneered different varieties in capsules printing like,

Oriented Printing is a technology to print capsule with printing text of cap remains on cap & printing text of body remains on body only.

Double colour circular printing is a technology to print the capsules with different colours on cap & body around the circumference.

Brand Shield - 360º Printing is a unique technology, which helps in creating and retaining brand identity right up to the consumer.The technology enables to have capsules printed with two colours, around the circumference with very high accuracy.

Brand shield four colour printing that feature four-colour, circular oriented printing. This printing technique allows differentiating brand and also doubles up as an effective anti-counterfeit measure. Brand shield 4C technology enables to have imprint brand logo, brand name and graphics on the capsule, providing experiential branding opportunity.This technology allows printing two unique colours on the cap and on two colours on the body of the capsule.

The unique colours of capsules with individual identity printed on it help set brand apart from competition

30


PROCESS MAPPING – CAPSULE PRINTING OPERATION

Start

End

Load Capsules on machine Start Printing Check for Quality

If O.K

Rework

If Not O.K

Give to Packing

Offer to Q.C

If O.K

If O.K

If Not O.K

31


SCHEMATIC DIAGRAM OF CAPSULE PRINTING MACHINE

32


METHODOLOG Y

Study of Productivity improvement for printing operations through Lean Six Sigma projects at ACG ACPL, Dahanu

Productivity Improvement is a challenge to every industry.

There has to be continuous efforts for productivity improvement so as to sustain and grow. Productivity Improvement means efficiency improvement at all stages I.e. man power, energy, machinery, process and money etc. The profits of any company depend upon productivity.

Productivity is a relationship between the output (product/services) and the input (resources consumed in providing them) of a business system.

OutputProductivity = ------------------- Input

For the survival of any organization, this productivity ratio must be at least one. If it is more than one, the organization is in a comfortable position. So, the objective of the organization should be to identify ways and means to improve productivity to the highest possible level.

ACG Associated capsules – Dahanu plant is a biggest capsules manufacturing unit in Asia till date, having production capacity 650 lacs capsules per day. Avg.75 % of Produced capsules is getting printed for world’s top most Pharma companies.

Printing department of ACPL, Dahanu having 21 nos. high speed capsules printing machines, having printing capacity of all sizes capsules with all types of printing.

This study is mainly undertaken to identify the different productivity level of ACPL printing department.

ACG ACPL practices Six Sigma, Kaizen, 5S and Process Analytical Technology (PAT) to ensure consistency, uniformity and conformance to specifications.

33


Introduction of Six Sigma Methodology

Six Sigma is a methodology, tool set, and mindset that accelerate the implementation of business strategies.

Six Sigma is:A quality discipline that focuses on product and serviceExcellence to create a culture that demands perfection on target, every time!

The Greek letter “σ” or sigma is a mathematical term that represents a measure of standard deviation, or variability within a given population around the mean.Mathematically, six sigma refers to the population that falls within plus or minus six standard deviations.The term “six sigma” is used as a measurement standard in defining a normal curve of statistical data. Motorola engineers expanded on the term in the 1980s when they decided that the traditional quality levels (measuring defects in thousands of opportunities) were inadequate. Instead, they wanted to measure the defects per million opportunities.By using statistical analysis to minimize variation, Six Sigma enables data-based process improvements

The six sigma team is chosen based on domain knowledge needed to solve the problem. A cross functional team is recommended since most of the process improvements may need many functional inputs.

Primary Objective

Printing volume % is increasing w.r.t capsule manufacturing & also increasing productivity & efficiency of capsule manufacturing stage.Now it is mandatory to maintain online printing with capsule manufacturing process and enable ACPL, Dahanu to increase on time delivery & customer satisfaction. This will help us to maintain inventory within one day w.r.t dipped qty.

This can be achieved by only increasing printing machine productivity

Methodology/Approach

By applying Six Sigma and Lean principles, the team identified the current situation that the printing operations were in as well as determining the maximum possible output. The team identified methods to increase production output while finding the optimum annual labor costs per unit for possible future situations.

34


Phases of RDMAIC Six Sigma.

Recognize --- Selection of Meaning full Project Define ---- Define the project purpose and scope

Determine customer’s CTQs and performance standard

Measure ---- Measure Current Process capability Analyze ---- Determine & validate root cause

Improve ---- Determine & Implement solutions

Control ---- Sustain the improvements

RECOGNIZE PHASE

Mantra for Project selection “Meaningful and Manageable”

A holistic approach to identify lean six sigma project is to drill down from organization strategy to specific projects. A widely used mechanism to create the linkage is provided by balance score card help us to articulate by developing objectives in four perspectives (Customer, Financial, Inter process and Learning & growth).Initiatives chartered against an objective can lead to projects, which have a link with organizations success.

The six sigma team is chosen based on domain knowledge needed to solve the problem. A cross functional team is recommended since most of the process improvements may need many functional inputs.

Projects Prioritization & Project Teams are finalized by top management of the organization with consideration of organization’s Vision, Strategy & SWOT.

ACG top management has selected Printing process for Lean six sigma projects, As a strategy move to take competitive advantage with improving productivity of printing process by

1. Printing Productivity Improvement --- Increasing in First Time Right quality.

2. Printing Productivity Improvement --- Increasing in Printing machine availability, speed & efficiency.

35


DEFINE PHASE

Properly defining the objective the most important part of solving the problem. The Define Phase as the name implies is intended to bring clarity in the project at the outset so that there is a common understanding of why this project is worth doing. Define phase aims at understanding the customer requirement, identify the process that requires to be re-engineered and preparing a project charter, which act as a reference for the project team.

Define phase aims at bringing clarity with respect to benefit to the customer and the business.

Steps:

1. Voice of Customer (VOC) or Voice of Business (VOB)2. Project Selection

3. Project Identification – Process Mapping (SIPOC)

4. Project Charter

Tools:

1. Survey2. Focus Groups

3. Interviews

4. Data collection

5. KANO Model

6. Affinity Diagram

7. Tree Diagram

8. Pareto Chart

9. I - Chart

Key Deliverables:

36


1. Project Metrics & Targets2. CTQ drill down

3. Stake Holder Analysis

4. Communication Plan

ROAD MAP – DEFINE PHASE

DEFINE PHASE

Customer Business

Voice of Customer (VOC)

Critical to Customer (CTC) Voice of Business (VOB)

Defect opportunity (DO) Critical to Business (CTB)

Project Selection

Process Identification - SIPOC

Project Charter

Data Collection;

Primary Sources

37


1. Data are collected through personal discussions with the operators, supervisors & manager of printing department, accountant of ACPL.

Secondary Sources

1. Daily & monthly reports maintained by the printing department.2. Data are collected from the company’s website.3. Books & journals pertaining to the project.

PERIOD OF STUDY

Historical Data for Project selection – December 2013 to October 2014

Data collected during project – December 2014 to May 2015

Sustenance Data after Project completion – Jun 2015 to October 2015

Historical Data of Printing machine Productivity, Machine speed & Avilability before Project start.

Month Actual Running speed in

RPM

Machine Available

Hrs

Machine running

Hrs

% age availability

Expected Output in

Lacs

Actual Output in lacs

Productivity in % age

Dec-13 68.00 8463 4097 48.41 12337 8758 70.99 Jan-14 66.45 8190 4555 55.62 13859 10131 73.10 Feb-14 68.36 7644 4083 53.41 12497 9128 73.04 March-14 64.50 8463 4834 57.12 14753 11295 76.56 April 14 65.63 8190 4585 55.98 13723 10300 75.06 May- 14 64.00 8463 3990 47.15 11822 9467 80.08 Jun - 14 65.80 8190 3814 46.57 11176 8664 77.52 July- 14 63.86 8463 4547 53.73 13641 10821 79.33 August-14 61.27 8463 4784 56.53 14307 11308 79.04 Sept - 14 63.68 8190 4921 60.09 14492 11567 79.82 Oct -14 64.00 8463 4826 57.02 14342 11053 77.07Average 65.05 53.78 76.51

38


GRAPH TO BE CHANGED

I Chart – Productivity %age (Before)

39


I Chart – Machine speed in RPM (Before)

GRAPH TO BE CHANGED

.

PROJECT CHARTER

40


41


42


MICRO LEVEL PROCESS MAPPING (SIPOC)

43


STAKE HOLDER ANALYSIS

44


45


MEASURE PHASE

The Measure phase intention is to establish the baseline performance of existing process. The measure phase aims to identify the following;

1. Key out put measures or Key Performance Indicators.2. Validate the measurement system.

3. Collect data pertaining to the project identified in the define phase.

4. Determine the baseline performance of process or Process capability ( Defect per Million opportunity or Sigma level )

ROAD MAP – MEASURE PHASE

What to Measure? Correlation matrix for the CTC/CTB's and Output

How To Measure? Operational Definition

Source of Data

Types of data

Measurement system (MSA /AAA)

Sampling Plan

Data stratification

Data collection Data collection plan

Check sheets

Screening of Data & Test for stability

Graphical tools

Histogram

Pareto chart

Run chart ( time series plot)

46


Control chart

Box plot diagram

Process Capability DPMO calculator /Sigma level calcualtion

Types of Measures

Input Measure

The measures pertaining to key inputs to the process.

Process Measure

These are the measures internal to a company’s process. It include quality measures, productivity measures, deliver measures that are important to a company’s internal customer as well as waste and cycle time measure. They are correlated to pertinent output measures.

Output Measures

Output measures are used to determine how well customer’s requirements and wants are met. Generally they are the project “y”

Effectiveness Measures

The degree to which customer needs and requirements are met and exceeded.

Example - %age defective, response time, billing accuracy

Efficiency Measures

The amounts of resources are allocated in meeting and exceeding customer requirements

Example – employee productivity, turnaround time, amount rework, time per activity.

47


Types of Data

Variable / continuous Data

Data is measures on a continuum scale and can be expressed in decimal place.

Example; Length, Height, Weight

Attribute / discrete Data

Data can be categorized or designated as either or and can not be expressed in a decimal number.

Types of attribute data.

Scale Description Example

Binary It is classified into one or two categories Yes or No, Correct or not correct

Unordered category

There is no ranking of the data collected Types of products

Ordered category

Ranking of the data is possible Customer satisfaction rating.

Count Data is counted discretely Nos. of errors in the application.

48


Operational Definition:

For Defining the Measure

An operational definition is clear, concise description of a measurement and the process by which it is to be collected.

To remove ambiguity – Every one have consistent under standing.

To prove clear way to measure the characteristic

Identifies what to measure.

Identifies how to measure

Makes sure that no matter who does the measuring. The result is Consistent.

PROCESS CAPABILITY

Process capability is the measure of how capable a process is of meeting customer specifications. It is expressed in terms of yield. The capability of process can be measured in four methods.

1. Throughput Yield.

Percentage of units that pass through an operation first time without any defects. It is a measurement taking into account the total number of defects and numbers of units under study.

Defects per Unit (DPU) = Defects / Unit

2. Parts Per Million.

Parts per Million is commonly used for measuring the quality of the product. A unit is considered defective even when there is one defect in it whereby it is irrelevant whether the unit has 1 or 100 defects, it is considered as a single defective unit.

Parts per Million = (Defectives / Total units) * 1000000

3. Defects per Million Opportunity

Performance level of a process can also be expressed in defects per million opportunities. DPMO simply indicates how many defects would be show up, If the process has million defects opportunities.

Steps for calculating DPMO

49


Total Number of Units processed (N) Total Number of Defects made (D)

Total Number of Defect opportunities per unit (O)

DPMO = 1,000,000 * ( D / N * O )

Relationship between sigma level, defect rate & yield.

Sigma level DPMO Yield (%)

2 σ 308770 69.1230

3 σ 66811 93.3189

4 σ 6210 99.3790

5 σ 233 99.9767

6 σ 3.4 99.99967

4. Process Sigma by Normal Approximation

Process sigma calculation using normal approximation method is more applicable, when the data is continuous and it satisfies the condition normality.

DATA COLLECTION PLAN

50


51


DOT PLOT DIAGRAM

52


BOX PLOT DIAGRAM

53


INTERVAL PLOT DIAGRAM OF MACHINE SPEED

DPMO CALCUALTOR FOR DISCETE DATA

54


55


ANALYZE PHASE

The Analyze phase of six sigma methodology analyzes the process to find out the causes for the problem. The analysis is intended to identify and understand causal relationship and find the root cause of variation.

ROAD MAP – ANALYZE PHASE

ANALYSIS

Defect Speed

Data Door Process Door

Cause & Effect VSM / Process mapping

Graphical Validation Value / time analysis

Test of hypothesis Process cycle efficiency

Regression

Design Of experiments (DOE) Failure Mode effect analysis (FMEA)

Vital Root cause

Cause & Effect Diagram:

The cause & effect or Fish Bone diagram was first used by Dr.Ishikawa .It is also called Ishikawa Diagram.

Fishbone diagram is used to identify the root cause likely to be causing a problem. This tool helps to recognize the root cause of the problem under a set of genera categories. Mainly six “M” – Man, Machine, Mother Nature, Measurement, Material and Method

56


WHY... WHY analysis

Why…Why Analysis method is used to move past symptoms and finds the real root cause for a problem. It is said that asking why five times successively one can penetrate into the root cause of a problem.

57


Process Mapping and value stream mapping

“Process is a set of inter related or interrelated or interacting activities which transforms inputs into outputs”

Cross Functional Mapping

58


Cross functional map creates a common understanding in the team for the problem or problem in the process. It depicts the flow of work across various functions.

Value Stream Mapping

All activities required in bringing a product/service from raw material into the arm of customer is called value stream.

Value stream mapping is a visual tool to understand the material and information flow of a product / service.

Value stream map follows the flow of product from supplier to customer.

Value Analysis

Value is a measure of the customer willingness to pay for the activity.

A work activity adds value when the product / service are transformed or it is performed correctly for the first time.

Process Simplification

Non Value Added activities – Activities that consume resources but not create any value are non value added activities. These activities are also called waste. So it is necessary to eliminate waste and simplify the process.

Process mapping chart of Product change over of Printing Machine at ACPL

NVA – Non value added activity

BVA – Value added activity, which can be clubbed with VA or do it externally.

VA – Value added activity

59


IMPROVE PROCESS MAPPING CHART OF PRODUCT CHANGE OVER AFTER ELIMINATING NVA

60


FAILURE MODE EFFECT ANALYSIS ( FMEA)

It is an advanced quality planning tool, used to evaluate potential failure mode and their cause. FMEA presents an opportunity to identify the problem but does not solve them. The use of FMEA, helps in identifying the weak points or links in the as is process.

61


Failure – means a component or system not meeting or not functioning its design

point.

Failure Mode – is the manner in which a component or system failure occurs.

Effect – The consequences of the failure.

Severity – Assessment of the seriousness of the effect of the potential failure mode. In a scale of 1-10, Higher the number indicates higher the severity.

Occurrence – Likelihood that a specific cause will occur. In a scale of 1-10, Higher the number indicates the probability of occurrence of the event is higher.

Detection – Ability of the system to detect potential cause. In a scale of 1-10 the higher the number indicates the detection of the cause is difficult.

Risk Priority Number (RPN) –

This number is used to place priority on items that require additional quality planning.

RPN = Severity x Occurrence x Detection

CAUSE PRIORITIZATION MATRIX OF PRINTING MACHINE SPEED & AVAILABILITY (FMEA)

62


63


64


DESIGN OF EXPERIMENTS (DOE)

DOE is

Structured proactive process for finding relationship between input and output factors.

Multiple input factors are considered and controlled simultaneously to ensure that effect on the output is significant

DOE is valuable tool

To optimize product and process designs. To accelerate the development cycle

To reduce development costs.

To improve the transition of products from research and development to manufacturing.

To effectively trouble shoot manufacturing problems

DOE is a quality tool to achieve product excellence at lowest possible overall cost.

65


DOE - Results of 16 Trials conducted on capsule printing machine

DOE Ink Viscocity Solvent QTY M/c Speed Rollercl fr Additives L ight Dark Incomplete B roken C ondition1 70 50 80 30 10 0 0 0 02 70 150 50 40 5 3 1 0 03 50 150 50 30 10 22 0 0 04 50 50 50 40 10 3 0 0 05 70 50 50 30 5 4 2 0 06 50 150 80 30 5 7 0 0 07 70 150 80 40 10 0 0 0 08 50 50 80 40 5 2 0 0 09 70 150 50 40 5 2 0 0 0

10 70 50 50 30 5 4 0 0 011 70 50 80 30 10 0 0 0 012 50 50 50 40 10 5 0 0 013 50 150 50 30 10 15 3 0 014 50 150 80 30 5 4 0 0 015 70 150 80 40 10 0 0 0 016 50 50 80 40 5 0 0 0 0

Without Vis cometer

With Vis cometer

66


DOE – Optimization Plot after 16 trials conducted on printing Machine.

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IMPROVE PHASE

Improve phase aims to generate solutions, evaluate the solutions and arrive at an implementation plan for these solutions.

ROAD MAP – IMPROVE PHASE

Generation of solutions Brain storming

Pull system

5 s

Mistake Proofing ( Poka Yoke)

Set up time reduction

Selection of solutions Multi Voting

SCAMPER Analysis

Evaluate the solutions Solution Prioritization Matrix

New Process Risk Analysis FMEA

Piloting Solution

Implementation Solution Implementation Action Plan

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Generation of Solutions

Brain storming

Brainstorming is a team centered process used to generate new and creative ideas to solve a problem. The foundation of brainstorming is that thee is no criticism involved in generating ideas. The keys to a successful brainstorming are

Objectives of the brainstorming are clear Ideas are welcome without criticism

Lean Management Tools

5 S – work place optimization used to govern the house keeping of workplace. 5s can be translated into Sort, Simplify, Shine, Standardize, Sustain

Mistake Proofing (POKA YOKE) - Mistake proofing is a technique for eliminating errors and focuses on the error happening in the source. It is based on the assumption, that it is good to do things right the first time.

69


Selection of Solutions

Multi Voting – During solution generating process, a list of ideas are generated, which will be too extensive to be addressed at once, so it is necessary to select the solution and reduce the list to manageable one. The tool is used this phase is Multi Voting.

Steps for multivoting

1. Generate List of Ideas 2. Assign a letter to each idea to minimize confusion during voting.

3. Vote

4. Tally the votes

5. Select top most five ideas through voting.

SCAMPER Analysis – is a helpful tool for complimenting the creativity techniques. It fosters creativity in identifying solution and supports the structuring when developing solution ideas.

70


SCAMPER ANALYSIS

SR.NO. KEY ROOT CAUSES Substitute Combine Adapt Modify Put to use Eliminate Re-arrange

Sr.No. Key Root Cause Substitute Combine Adapt Modify Put to Use Eliminate Re arrange

1

Reduced speed to avoid printing letter cut during

Linear printing

Convert roller with circular dimensions

Replace bewel gear transmision

hardness of rubber roller should be 12

2

Reduced speed due to worn out Gears (42 & 53)

Adopt the deluxe m/c principle

Change the hardness of

gear material

Re make the sop for replacement

3Reduced speed due to Improper alignment of

fix a position & do

4Reduced speed due to

Motor pully key way worn Replace with taper lock

Re make the sop for

5Reduced speed to avoid printing letter cut during

Replace old links with

Replace bewel gear

fix a position & do

hardness of rubber roller


chain elongationRe make the sop for


lack of Operational Re make the sop for Training


communication gap Re make the sop for Training

SCAMPER ANALYSIS FOR MACHINE SPEED

ControlImproveAnalyzeMeasureDefine

58

71


SCAMPER ANALYSIS

SR.NO. KEY ROOT CAUSES Substitute Combine Adapt Modify Put to use Eliminate Re-arrange

1

Loss of time due to Lack of quick roller change training

to operator

Process Maping product change

SOP Rewriting

1)Un wanted Air use for all m/c clean

VA / NVA Activity Identifing1)Increase External activity from internal

Marking on marking roller to use at the time of setting on printing machine

1)Gauge for sycronistion of marking roller & rubber roller w.r.t. link (Pressur checking)

1)Provide all tools to operators.2)Arrange Gears ,shafts ,ink,roller etc.

Time Study

1)Increase External activity from internal

2

Loss of time due to no hand over / take over on

machine. SOP RewritingUse reliver in Shift changes.

3

Loss of time due to non availability of next batch Roller / Ink / tools before

batch completetion

1)Provide all tools to operators.2)Arrange Gears ,shafts ,ink,roller etc.

Re make the sop for Training

4

Loss of time due to lack of Operational defination of

print defect .to supervisor,operator &

Q.A.InspectorRe make the sop for Training

5

Loss of time due to communication gap between operator &

supervisor.Re make the sop for Training

6

Loss of time due to non availability of QC person /

supervisor. Provide schedule of L.C.

SCAMPER ANALYSIS FOR MACHINE AVILABILITY


59

72


Evaluation of Solutions

Solution Prioritization Matrix – Helps to evaluate the solution based on criteria. Criteria based selection will help to reduce the list of solutions and prioritize them based on criteria.

Steps for prioritization matrix

1. Draw the list of solution2. Criteria Identification

3. Weigh the criteria

4. Rating of each solution against criteria

5. Identification of Preferred solution

Effort –Benefit Analysis – represents the relationship between benefit and the effort (expenses) of a solution, so as to reduce the number of prospective solutions.

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SR NO. SOLUTION GENRATION COST EASY TO

IMPLEMENTEASY TO

CONTROL TOTAL

1 Convert linear print roller with circular dimensions 8 9 9 648

2 Replace old links with New Links with less float 2 4 7 56

3 Replace bewel gear transmision with timer belt transmision.

8 8 8 512

4 Adopt the deluxe m/c principle external Gear 2 2 6 24

5 Replace with taper lock pully / ring fitter 8 8 8 512

6 Change the hardness of gear material 8 7 7 392

7 fix a position & do dowelling 9 9 9 729

8 hardness of rubber roller should be 16-18 hrc 8 8 8 512

9 Make schedule of replacement of gear & chain 9 9 9 729

10 Make the schedule for Training 9 9 9 729

SOLUTION PRIORTISATION METRIX FOR SPEEDControlImproveAnalyzeMeasureDefine

60

74


SR NO. SOLUTION GENRATION COST EASY TO

IMPLEMENTEASY TO

CONTROL TOTAL

1 Increase External activity from internal of product change. 9 9 9 729

2 Marking on marking roller to use at the time of setting on printing machine 8 2 8 128

3 Modify SOP of line clearance.9 9 9 729

4Gauge for sycronistion of marking roller & rubber roller w.r.t. link. 2 2 8 32

5 Arrange Gears ,shafts ,ink,roller etc.9 9 9 729

6 Provide all tools to operators. 9 9 9 729

7 Use reliver in Shift changes. 2 5 5 50

8 Provide schedule of L.C. 8 8 8 512

9 Avoid un wanted Air use for all m/c clean. 8 4 4 12810 Make the schedule for Training 9 8 7 50411 Convert roller with circular dimensions12 hardness of rubber roller should be 12 hrc13 Replace old links with New Links with less float

SOLUTION PRIORTISATION METRIX FOR AVAILABILITY


61

PROBLEM & SOLUTION TREE

75


SolutionsType of Cause

Root CauseSr.no.

BehavioralFear of financial loss11

BehavioralCommunication gap between management & union on productivity

10

Modify the SOPProcessImproper & precise communication & monitoring of supervisior

9

Modify the SOP ProcessOperational definition of print defect not clear to the operators

8

Modify the SOP ProcessNo AAA analysis for operators7

Replace bevel gear transmission with timer belt transmission .

TechnicalReduced speed due to chain elongation6

Replace old links with New Links with less floatTechnicalReduced speed to avoid printing letter cut during 360* printing

5

Replace with taper lock pulley / ring fitter TechnicalReduced speed due to Motor pulley key way worn out4

fix a position & do dowelling of print.headTechnicalReduced speed due to Improper alignment of printing head

3

Adopt the deluxe m/c principle external Gear

Replace bevel gear transmission with timer belt transmission.

Changed the hardness of gear material from 56 to 60 hrc.

TechnicalReduced speed due to worn out Gears (42 & 53) 2

hardness of rubber roller should be 16-18 hrc

Replace old links with New Links with less float

Convert linear print roller with circular dimensions TechnicalReduced speed to avoid printing letter cut during Linear printing

1

PROBLEM & SOLUTION TREE FOR SPEED


BehavioralFear of financial loss10

BehavioralCommunication Gap between management & union on productivity

9

Replace old links with New Links with less floatTo avoid printing letter cut during 360* printing 8

hardness of rubber roller should be 16-18 hrc

Replace old links with New Links with less float Technical

Convert linear print roller with circular dimensions TechnicalTo avoid printing letter cut during Linear printing7

Provide schedule of L.C.Loss of time due to non availability of QC person / supervisor.6

Make the schedule for TrainingLoss of time due to communication gap between operator & supervisor.

5

Modify SOP. ProcessLoss of time due to lack of Operational definition of print defect .to supervisor,operator & Q.A.Inspector

4

Provide all tools to operators.

Arrange Gears ,shafts ,ink,roller etc.ProcessLoss of time due to non availability of next batch Roller / Ink / tools before batch completion

3

Use reliever in Shift changes.ProcessLoss of time due to no hand over / take over on machine.2

Avoid un wanted Air use for all m/c clean.

Gauge for synchronization of marking roller & rubber roller w.r.t. link

Marking on marking roller to use at the time of setting on printing machine

Increase External activity from internal of product change.

VA / NVA Activity Identifying,Time Study

Process Mapping product change ProcessLoss of time due to Lack of quick roller change training to operator

1

SolutionsType of causeRoot CauseSr.No

PROBLEM & SOLUTION TREE FOR AVAILABILITY


76



1Replace bewel gear transmision with timer belt transmision.

2 Adopt the deluxe m/c principle external Gear3 Replace old links with New Links with less float4 Convert linear print roller with circular dimensions5 Replace with taper lock pully / ring fitter 6 hardness of rubber roller should be 16-18 hrc7 Change the hardness of gear material8 fix a position & do dowelling9 Make schedule of replacement of gear & chain

10 Make the schedule for Training

64

1 35

46

2

7

8 9

EFFORT BENEFIT ANALYSIS FOR SPEED

10


1Marking on marking roller to use at the time of setting on printing machine

2 Replace old links with New Links with less float3 Gauge for sycronistion of marking roller & rubber roller w.r.t. link.4 Use reliver in Shift changes.5 hardness of rubber roller should be 16 - 18 hrc6 Increase External activity from internal of product change.7 Modify SOP of line clearance.8 Arrange Gears ,shafts ,ink,roller etc.9 Provide all tools to operators.

10 Provide schedule of L.C.11 Avoid un wanted Air use for all m/c clean.12 Make the schedule for Training13 Convert roller with circular dimensions

65

1 3 54 62

7 8 9

10

EFFORT BENEFIT ANALYSIS FOR AVAILABILITY

1211 13

77


CONTROL PHASE

The Intent of control phase is to sustain the improvements identified in the improve phase. Implementing process control systems ensures that process performance is maintained at a level that satisfies customer needs, and drives the ongoing improvement of process performance.

ROAD MAP – CONTROL PHASE

Documentations Control Plan

Monitoring Control Charts

78


Response Plan

Documentations

Documentations ensure that improvements are institutionalized across the organization and standardized.

Control Plan – is a structured approach for the design, selection, and implementation of the value added control methods for the total system. It summarizes the entire control strategy for system. It is integral part of a process and is a document.

Standard Operating Procedure (SOP) – is a set of instructions written providing detailed step by step sequences of activities carried out in a process. Well documented SOP reduces the time spent in training resources and facilitates consistency in the process.

Monitoring of achieved Results

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It is important to understand that identified causes can be only controlled for that to happen, it is necessary to monitor achieved results. The primary tool is used for monitoring is Control Charts.

Control Charts –

Provides Information as to whether special or common causes are responsible for the variation in the process.

Provide a basis to evaluate the stability of the variation and the mean.

TRAINING PLAN & SCHEDULE

80


74

Training plan & Schedule ( Calendar)

Sr. No

Type of Training Targeted Audience By Whom( Internal /

External resource for Trg.)

By When( Tentative

Month or date)

1 Operational definitions of printing defect & AAA analysis of operators

Printing & QC operators

QA & Printing supervisors

2nd week of every alternate month

2 Product change over activity

Printing operators & supervisors

Printing In charge 1st week of month

3 Printing operation at Higher speed ( 80 RPM)

Printing operators & supervisors

Printing In charge 1st week of month


81


PROCESS MANAGEMENT CHART


Daily analysis of data & check for any abnormality

print.supervisor

If machine speed go below 70 RPM

I – ChartEvery shiftPrint.operator / Print.supervisor

RPMMachine speed

Printing of capsules

Data Analysis of one week & check for any abnormality

print.supervisor

If availability go below 65 %

I – ChartEvery shiftPrint.operator / Print.supervisor

Hours.Machine running time

Continuity of printing machine

Data Analysis of one week & check for any abnormality

print.supervisor

If product change over time go beyond Mins.

I – ChartEach Product change

Print.operator / Print.supervisor

Hours.Total change over time

Product change over

What will they do(Corrective actions initiated)

Who is going to respond

When to Respond

Type of control chart

Freq. Of data collection

Responsibility(Who will record)

Unit of measure

MetricsY=o/pX=I/p

Process Steps

PROCESS MANAGEMENT CHART

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MONITORING OF PROJECT AT DIFFERENT STAGES

PRINTING MACHINE - KEY PERFORMANCE INDICATORS

PRODUCTIVITY (%age) M/c SPEED (RPM)

AVAILABILITY (%age)

BEFORE

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Month

Actual Running Speed in RPM

Machine

Available Hrs.

Machine

running

hours.

% age avaibilit

y

Expected

output in lacs

Actual

output in lacs

Productivity in %age

Dec-13 68.0 8463 4097 48.41 12337 8758 70.99 Jan-14 66.5 8190 4555 55.62 13859 10131 73.10 Feb-14 68.4 7644 4083 53.41 12497 9128 73.04 March-14 64.5 8463 4834 57.12 14753 11295 76.56 April 14 65.6 8190 4585 55.99 13723 10300 75.06 May- 14 64.0 8463 3990 47.15 11822 9467 80.08 Jun - 14 65.8 8190 3814 46.56 11176 8664 77.52 July- 14 63.9 8463 4547 53.72 13641 10821 79.33August-14 61.3 8463 4784 56.53 14307 11308 79.04 Sept - 14 63.7 8190 4921 60.09 14492 11567 79.82 Oct -14 64.0 8463 4826 57.03 14342 11053 77.07AVERAG

E 65.05 53.78 76.51DURING

Nov -14 69.09 8060 4747 58.9 14055 10728 76.33 Dec-14 70.27 8060 5173 64.18 15267 11906 77.99 Jan-15 69.7 7280 4927 67.68 14587 11756 80.59 Feb-15 69.04 8060 4821 59.82 14035 10898 77.65 March-15 70.11 7020 4499 64.09 13205 10833 82.04 April 15 70.79 7254 4749 65.47 13974 11441 81.87 May- 15 70.05 7410 4902 66.15 14335 11753 81.99AVERAG

E 69.86 63.76 79.78AFTER

Jun - 15 71.78 8060 5520 68.49 16123 13164 81.65 July- 15 72.6 6786 4716 69.50 13895 11376 81.87August-15 73.1 6786 4538 66.87 13604 11022 81.02 Sept - 15 73.35 6175 4342 70.32 12802 10573 82.59 Oct -15 73.15 7410 5322 71.82 15608 13147 84.23AVERAG

E 72.80 69.39 82.27

ACHIEVEMENTS & LEARNINGS FROM THE PROJECT

Achievements -

Project Goals Achievement of Project (Last six month average )

Productivity of printing machine increase from 76% to 85%

Print. machine Avg.Productivity increased up to - 82.27 %

Printing machine speed increase from 64 rpm to 80 rpm

Print. Machine Avg.Speed increased up to - 72.8 rpm

83


Printing machine availability

increase from 58 % to 85% Print. machine Avg.availability

increased up to - 69.39 %

Leanings -

A Problem can be stated in terms of measurable defects so that it can calculate the potential improvement opportunities.

Six Sigma Methodologies taught that inputs & outputs of any process can be precisely observed, measured and reported using statistical tools.

Six Sigma Projects have helped to measure and improve process capabilities of various functions in the company.

The systematic data driven approach reduced the resistance to change and helped sound decision making.

Six Sigma has changed the mindset of people towards performance excellence.

Alignment of People and Processes is a must keeping Customer Focus in mind to meet their requirements – stated and implied.

Six sigma has Improved Analytical ability & presentation skill.

Six Sigma Tools – Cause & Effect Matrix, Failure Modes & Effect Analysis, T-Test, and Design of Experiments & Control Charts are the effective tools to solve any “PROBLEM”.

84


CONCLUSION

In the modern era of 21st century Customer Satisfaction is the only “Mantra” for world class

organization.

ACG is continuously learning & applying the quality philosophies such as Customer Focus,

waste elimination, Process Improvement etc.

I am privileged that, I got an opportunity to work at ACG Worldwide where I was inspired to

go for the Post-Graduate course in Operations. It has been a great learning experience to got

an opportunity to learn about the continuous improvement techniques and world class

manufacturing practices within the company . This is an added knowledge to my theoretical

studies from Welingkar Institute.

I have covered the application of productivity & process improvements methodology & tools

in ACG ACPL during my study.

Every effort has come to true to the satisfaction as every body is involved in this continuous

improvement process. In last ten years due to atomization and update technology the picture

has been changed drastically in whole organisation. Management involvement and

contribution to drag the organization to achieve leadership position across the globe as

world’s largest manufacturer of capsules will be fulfilled in near future .

This study helped me in depth learning of the subject and Importance of Productivity

improvement for any organization in today’s competitive world.

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RECOMMENDATIONS

ACG is continuously adopting new strategy in keeping CUSTOMER at center. Still there are

some recommendations to be made which remain after the study & can be a Competitive

edge for ACG in future.

Effectiveness of training – behavioral & technical

People empowerment & engagement

Rewards & reorganizations.

86


BIBLIOGRAPHY

Martand Telsang “Industrial Engineering & Production Management” S Chand & Co. R.Paneerselvam “Production & Operations Management” Prentice hall Of India

Private Ltd. B.M. Lall Nigam I.C. Jain “Cost Accounting” Prentice hall Of India Private Ltd. Web sites - www.acg-world.com, www.sixsigmaalchemy.com

UNDERTAKING BY CANDIDATE

I declare that project work entitled CASE STUDY- PRODUCTIVITY IMPROVEMENT”is my own work conducted as part of my syllabus .I further declare that project work presented has been prepared personally by me and it is not sourced from any outside agency. I understand that, any such malpractice will have very serious consequence and my admission to the program will be cancelled without any refund of fees.I am also aware that, I may face legal action, if I follow such malpractice.

Kalpesh.B.Prajapati.

signature of Candidate

87

http://www.acg-world.com/

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