HARISH KUMAR SHAHI

MBA,BAUER COLLEGE OF BUSINESS

UNIVERSITY OF HOUSTON

SUMMER INTERNSHIP PROJECTOPERATIONSMay - August 15

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PROJECTS UNDERTAKEN DURING INTERNSHIP

Worked on 3 projects during my internship.

Optimization of Extruders.

Complete analysis on Product Wheel

Development of Planning software tool

Analysis

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OPTIMIZATION OF EXTRUDERS

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OBJECTIVE

Find the constraints in achieving the maximum throughput.

Find the new run condition for the machines.

Analyze the increase in the Throughput (lbs/hr) in this process.

Recommendations to maintain these operation conditions in future.

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EXTRUDER 1

Date Product Name

Screw

Speed

Final Feeder Speed

Initial Speed

(If changes were not

made)

Initial Throughput (lbs/hr)

Final Throughp

ut (lbs/h

r)

Increase in

Through Put

(lbs/hr)Major Constraint Identified

27-May 72514LGE 475 235 225 2105 2105 0

Cooling belt problem: Not enough Cooling

28-May 72501 BRITTLE 475 250 225 2105 2400 295

Cooling belt problem: Water sprinklers not working

29-May 72500 BRITTLE 475 250 225 2105 2400 295

Cooling belt problem: Water sprinklers not working

30-May 7200 BRITTLE 475 250 225 2105 2400 295

Cooling belt problem: Water sprinklers not working

1-Jun FBE PIPE POWDER 475 250 225 2160 2400 240Cooling belt problem: Water sprinklers

not working

2-Jun RISER GREY III 400 300 200 1800 2300 500Cooling belt problem: Water sprinklers

not working3-Jun GREY NAP-ROCK 475 250 180 1700 2360 660  

4-Jun GREY NAP-ROCK 475 200 180 1700 1890 190Cooling belt problem: Water sprinklers

not working5-Jun RISER GREY III 400 200 180 1860 2060 200  31-Jul RISER GRAY II 475 250 225 1940 2160 220

AVERAGE 1896 2169 273% INCREASE IN THROUGH PUT 14%

Procedure Followed1.Look up at the daily running conditions( Feeder Speed, Screw speed).2. What is the history of running the same product.3.Try to increase the feeder speed and accordingly make changes in other parameters (Cooling Belt speed)4. Identify the constraints5. Analyze the changes the throughput.

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 Initial Average

Throughput(lb/hr)Final Average

Throughput(lb/hr) % IncreaseExtruder 1 1896 2169 14%Extruder 2 1428 1651 16%Extruder 3 1685 1807 7%Extruder 4 400 400 0%Extruder 5 448 516 15%Extruder 6 495 536 8%Extruder 7 1462 1603 10%Extruder 8 1461 1609 10%

    Average 10%

COMPARISON OF INITIAL AND FINAL THROUGHPUTS

Extruder 1 Extruder 2 Extruder 3 Extruder 4 Extruder 5 Extruder 6 Extruder 7 Extruder 80

500

1000

1500

2000

2500

Comparison of Initial and Final Throughputs

Initial Throughput Final Throughput

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CONSTRAINT ANALYSIS

Different Constraint Identified Extruder 1 Extruder 2 Extruder 3 Extruder 4 Extruder 5 Extruder 6 Extruder 7 Extruder 8Cooling belt problem / Material stacks up at the break rolls 43% 0% 0% 0% 0% 0% 21% 20%

Material backs up in feeder Hopper 10% 0% 71% 0% 83% 63% 32% 33%

Feeder Load variations 10% 0% 0% 0% 0% 0% 0% 0%Potential to increase the Feeder Speed. 0% 40% 7% 0% 0% 13% 32% 27%

Re Extrusion Material Spilling 0% 0% 0% 0% 17% 25% 0% 0%

ACM/Tubs not available 38% 60% 21% 0% 0% 0% 16% 20%

Extruder 1 Extruder 2 Extruder 3 Extruder 4 Extruder 5 Extruder 6 Extruder 7 Extruder 80.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

Cooling belt problem / Material stacks up at the break rolls Material backs up in feeder Hopper Feeder Load variations Potential to increase the Feeder Speed. Re Extrusion Material Spilling ACM/Tubs not available

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CONSTRAINTS PROPORTIONS

Cooling belt problem / Mate-rial stacks up at the break rolls

12%

Material backs up in feeder Hopper

42%Feeder Load variations

1%

Potential to increase the

Feeder Speed.17%

Re Extrusion Ma-terial Spilling

6%

ACM/Tubs not available

22%

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Recommendations

Find the solution for the problem of backing up of material in the hopper.

Equipment modification such as Design changes in screws.

Better Cooling system.

Maintenance of sprinklers

Design modification

Better Communication with the operators.

Need to work with engineer to develop new run conditions for the machines as per the data

collected for last 3 months.

We should work on the ACMs to increase the Throughput by analyzing various run conditions.

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COMPLETE ANALYSIS OF PRODUCT WHEEL

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Background

Presently Bucket sequencing is followed at the site.

The products are sequenced on the weekly bucket basis as per the demand .

In this process cleaning has to be done more often. This increases the productivity cost.

Wheel sequencing is sequencing of products as per consistent cycle. It helps in reducing the cleaning time, inventory cost and in turn total production cost.

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To understand if Wheel sequencing will be Beneficial?

What is Product wheel?

Production sequence used by a manufacturing operation when multiple products are made on a single line/piece of equipment

Consistent sequence

Repetitive time cycle

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Benefits

Decreases controllable fixed costs

Provides framework for establishing customer order lead times

Provides understanding of relationship between transition cost and inventory cost

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Various factors that affect product wheel

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Develop Tool

• Extruder 7 & Extruder 8 : Black Products• Extruder 3 : Grey &White products

Comparison

• Transition time One week bucket • Two Week bucket • Product wheel model

Different wheel length

Comparison

• Cycle stock Safety stock• Annual FPO’s Labor cost• Inventory value Annual Machine utility• Total Cost

Tasks Involved

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Tool Developed:

Product Wheel modelBoilerplate capacity (lbs/day) 45000Target % Uptim 85%Calc'd Min Wheel length 16Wheel length (prod days) 20Max batch load size 5000Max fpo time coverage (prod days) 130Operator hours in each test cycle 1.21# Operators for transitions 4Yield loss % on first bx of fpo 2%Annual FPOs 322Annual batches 815Annual machine utility 65%# Operators (load, ettr, test, acm) 7.3Annual Transition hrs/ 000lb 0.20Cycle stock (lbs) 160025Safety stock (lbs) 104791Labour cost $551,225Yield loss value $45,831Inventory value $396,865Inventory CC $67,467Total cost $664,523

Current # operators 9Current annual transition hrs/000lb 0.14Current Annual machine utility 61%Current cycle stock 238900Current Safety stock 95967Current labour cost $693,750Current Yield loss $31,387Current Inv value $507,072Current Inv CC $86,202Total current cost $811,339

Develop the monthly sequence of Grey/White/Black products generally manufactured at site.

For each product find Quantity to be manufactured Cleaning Time Information collected from Planning tool Safety Stock Cost/lb

Tasks involved to develop Tool

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Weekly Analysis Monthly Analysis

Row LabelsSum of QTY

Sum of Cleaning

Count of FPO NO.

Transition hrs/000 lb

Days to Produce

1 147000 8 4 0.05 3.742 105000 24 5 0.23 3.433 96700 28 9 0.29 3.414 186000 40 13 0.22 5.975 242600 32 10 0.13 6.956 70000 4 2 0.06 1.797 159000 24 7 0.15 4.688 16000 0 1 0.00 0.379 158000 0 4 0.00 3.6610 122800 24 6 0.20 3.8411 184000 20 6 0.11 5.0912 71000 12 4 0.17 2.1413 48000 0 4 0.00 1.1114 107000 32 5 0.30 3.8115 246000 20 6 0.08 6.5316 48000 8 4 0.17 1.4417 104000 16 5 0.15 3.0718 120000 24 6 0.20 3.7819 136000 4 2 0.03 3.3120 150000 16 7 0.11 4.1421 87000 28 5 0.32 3.1822 77000 24 4 0.31 2.7823 175000 32 8 0.18 5.3824 58500 12 3 0.21 1.85Grand Total 2914600 432 130 0.15 85.47

Row Labels Sum of QTY Sum of Cleaning Count of FPO NO. Transition hrs/1000 lb1 348700 60 18 0.172 657600 100 32 0.153 551800 56 21 0.104 401000 52 15 0.135 558000 68 24 0.126 397500 96 20 0.24Grand Total 2914600 432 130 0.15

Current # operators 9Current annual transition hrs/000lb 0.14Current Annual machine utility 66%Current cycle stock 321700Current Safety stock 259120Current labour cost $693,750Current Yield loss $38,032Current Inv value $770,220Current Inv CC $130,937Totla current cost $862,719

Product Wheel Analysis

Extruder - 3 Comparison of bucket sequencing and Wheel sequencing

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Results:

From monthly analysis we see some improvement are in Feb, March with 3 week buckets, but April worse, May improved…so not clear there’s been a sustained improvement.

With Product wheel the transition rate is constant at 0.14 hrs/1000 lb.

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Summary by Wheel length for E3

Overall costs look pretty flat across the various wheel lengths (savings in cost are balanced by increase in inventory)

Note that both Safety stock and Cycle stock go up with wheel length

Note that current # FPO’s tracks to about 40 day wheel length, although inventory is higher here…same is in Safety stock (because of longer lead times)

Min wheel lengthWheel = 20 Wheel = 40 Wheel = 60Boilerplate capacity (lbs/day)Target % UptimCalc'd Min Wheel lengthWheel length (prod days) 16 20 40 60Max batch load size 4000 4000 4000 4000Max fpo time coverage (prod days) 130 130 130 130Operator hours in each test cycle 1.21 1.21 1.21 1.21# Operators for transitions 4 4 4 4Yield loss % on first bx of fpo 2% 2% 2% 2%Annual FPOs 584 503 289 202Annual batches 1430 1430 1430 1430Annual machine utility 74% 71% 62% 58%# Operators (load, ettr, test, acm) 8.8 8.7 8.1 7.9Annual Transition hrs/ 000lb 0.13 0.11 0.06 0.05Cycle stock (lbs) 193665 231206 434404 644840Safety stock (lbs) 254148 284146 401844 492156Labour cost $661,237 $649,504 $610,266 $594,313Yield loss value $61,548 $53,091 $30,454 $21,155Inventory value $596,853 $685,652 $1,108,257 $1,504,198Inventory CC $101,465 $116,561 $188,404 $255,714Total cost $824,249 $819,156 $829,124 $871,182

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On each Extruder Amount Produced = 130,000 lbs/weekFor 3 Extruder = 390,000 lbs/Week = 1.56 Mill lbs/Month

Cleaning time savings = 0.02 hrs/1000lb = 31.00 hrs/ Month = 372 hrs/Year

So implementation depends on the business strategy.From production side there are good savings.From supply chain side the inventory increases. But total cost remains the same.

Bucket Sequence Current (hrs/1000lb)

Product WheelProposed (hrs/1000lb)

Wheel length(Days)

Extruder 3 O.15 0.14 20

Extruder 7 0.15 0.06 20

Extruder 8 0.11 0.15 30

0.14 0.12 Average

Transition Time Analysis

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PLANNING SOFTWARE

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RTE CODE RTE SEQ# FML SFX ITEM_CODE ITEM_DESC FPO NO. ATS DATE Inv Class Total

FZ 0004 01 HFB624T1055 BLACK TEX AR400 000916 6/14/15CSS 20,000 E6 0002 02 PR1715000 C7605 5% MB P6040/C UF 000478 6/14/15INTMED 2,300 E6 0003 02 PR1715000 C7605 5% MB P6040/C UF 000479 6/14/15INTMED 2,300 HFNC 0015 01 72508FG200 GREEN FAST PIPE POWDER 098465 6/14/15FNC 43,200 HFNC 0016 01 72508FG200 GREEN FAST PIPE POWDER 098466 6/14/15FNC 43,200 HFNC 0012 01 72719WM055 GREEN WIRE MESH FBE 000810 6/14/15CSS 10,000 HFNC 0013 01 70014055 GREEN WIRE MESH FBE 000455 6/14/15STD 14,400 HFNC 0011 01 72514LGEN200 NAP-GARD LONG GEL RED FBE 000852 6/14/15FNC 43,200 HFNC 0009 01 PI2066 NAP-GARD REBAR BASE 000667 6/14/15INTMED 86,400 HFNC 0008 01 PI2064 REBAR FBE BASE 099604 6/14/15INTMED 30,000 HFNC 0010 01 PI2064 REBAR FBE BASE 000428 6/14/15INTMED 30,000 HFNC 0014 01 PI2064 REBAR FBE BASE 000351 6/14/15INTMED 45,000 HOU-DARK 0024 01 ELB400P9055 BLACK BEAUTY 000474 6/14/15NCS 20,000 HOU-DARK 0021 01 UFB657S0250 BLACK MAGIC II 000640 6/14/15CSS 35,000 HOU-DARK 0015 01 ELB601P9055 BLACK SNOW 000475 6/14/15STD 30,000 HOU-DARK 0023 01 HFB601S6055 CAB BLACK 000431 6/14/15STD 15,000 HOU-DARK 0017 01 PLB622S4055 EBONY LE II 000727 6/14/15STD 25,000 HOU-DARK 0025 01 SSB615H1000 HT ACE BLACK 000706 6/14/15INTMED 3,000 HOU-DARK 0026 01 PFB710S6055 SPOCK BLACK 099732 6/14/15NCS 15,000 HOU-DARK 0019 01 EFB628S9201 VACUPRIME 301 098349 6/14/15CSS 10,000 HOU-DARK 0022 01 EFB628S9025 VACUPRIME 301 098355 6/14/15CSS 5,000 HOU-DARK 0016 01 EFH641P7055 VAULT GRAY 000832 6/14/15CSS 20,000 HOU-DARK 0020 01 PFB401S6055 VULCAN BLACK 000316 6/14/15STD 15,000 HOU-COLOR 0005 01 RFG631S6250 WC CM GREEN 099147 6/14/15CSS 45,000 HOU-COLOR 0006 01 PI2000 SUN GOLD BASE 000711 6/14/15INTMED 5,000 HOU-COLOR 0007 01 HFG603S7055 HI-H0G GREEN 000849 6/14/15CSS 10,000 HOU-COLOR 0008 01 PFY627S9055 HIGH GLOSS CAT YELLOW II 000644 6/14/15NCS 4,000 HOU-COLOR 0009 01 RFK632S9055 FLEX BLUE 000568 6/14/15CSS 15,000 HOU-COLOR 0010 01 PFS641S8122 KB ORANGE III 000083 6/14/15CSS 20,000 HOU-LIGHT 0011 01 RFH752R8055 GEOTHERMAL GRAY 000642 6/14/15CSS 15,000

Products Weekly Bucket

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Tools used for planning

Extruder Extruder 1 Extruder 2 Extruder 3 Extruder 4 Extruder 5 Extruder 6 Extruder 7 Extruder 8

Must put

Functional All Rebar, CG HOG BLACK, Green Wire Mesh

Vacuprime 301 Yellows

Mostly

ANY deco or functional. Any colors

Whites and grays Hou Light

small batches of deco or Hi Temp products, clears

small batches of light colored deco (yellow, Oranges, red), Hi Temp Products

small batches of deco or Hi Temp products, clears

ANY deco or functional. Mostly black products or dark colored

ANY deco or functional. Mostly black products or dark colored

Can not

no deco (no choppers). No Dark colors (black, dark gray, bronze…)

anything except those colors due to difficult cleanings

TOOL 1

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EXTRUDER 1 EXTRUDER 2 Extruder 3 extruder 4 extruder 5 EXTRUDER 1 EXTRUDER 3EXTRUDER4 EXTRUDER 8 &7 Extruder 6

MUST PUT MOSTLY

functional

REBAR/CG HOG/green wire mesh Whites Vaccuprime Yellows/High temp

000916

BLACK TEX AR400

000478

C7605 5% MB P6040/C UF

000479

C7605 5% MB P6040/C UF

098465

GREEN FAST PIPE POWDER

098466

GREEN FAST PIPE POWDER

000810

GREEN WIRE MESH FBE 000810

000455

GREEN WIRE MESH FBE 000455

000852

NAP-GARD LONG GEL RED FBE

000667

NAP-GARD REBAR BASE

099604

REBAR FBE BASE

000428

REBAR FBE BASE

000351

REBAR FBE BASE

000474000474

BLACK BEAUTY

000640000640

BLACK MAGIC II

000475000475

BLACK SNOW

Excel tools developed for Tool 1

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Date completed FROM Product code FROM Product

Type of TestACM, COMPATIBILITY

or BOTHTO Product code TO Product

Result GREEN = B/BRED =/= B/B

(yes/no does not consider B/B restrictions)

11/30/2010 PFB706S4 AR400 RICH BLACK MATTE COMPATIBILITY PFB624S6 BLACK GUARD III NO5/18/2012 PFB618T0 YGY TEXTURE ACM PFB660T1 NSN BLACK TEX YES2/2/2011 RFB632S8 WIRE BLACK ACM RFB649S3 PONG BLACK YES3/7/2011 RFB632S8 WIRE BLACK BOTH EFB504S0 RAVEN YES

11/30/2010 RFW693S8 FS WHITE II COMPATIBILITY RLW606S9 SANTELL WHITE II NO11/30/2010 UFB500S9 GLOSS BLACK COMPATIBILITY UFB551S2 MATTE BLACK NO12/20/2011 RFB632S8 WIRE BLACK COMPATIBILITY UFB655S2 MATTE BLACK II YES1/25/2012 RFB632S8 WIRE BLACK ACM PFB401S6 VULCAN BLACK YES11/30/2010 PFHR29S7 RAL 7037 COMPATIBILITY PFH508S5 HAZE GRAY NO11/30/2010 RLW606S9 SANTELL WHITE II COMPATIBILITY RFW693S8 FS WHITE II NO5/22/2012 RFB632S8 WIRE BLACK ACM HFB603S5 RAIL BLACK YES12/2/2010 EFB206S9 BLACK SHINE COMPATIBILITY ELB601P9 BLACK SNOW YES but EXCEPT.12/2/2010 PFH706S5 GUNSMOKE III COMPATIBILITY PFH508S5 HAZE GRAY NO12/2/2010 PFH508S5 HAZE GRAY COMPATIBILITY     NO5/24/2012 RFB632S8 WIRE BLACK COMPATIBILITY HFB603S5 RAIL BLACK YES12/6/2010 RFW695S8 CI WHITE II COMPATIBILITY PFW704S9 WHITE WCJ NO12/6/2010 PFW653S9 CUSTOM WHITE III COMPATIBILITY PFW704S9 WHITE WCJ NO12/6/2010 PI4073 FEI BRONZE II BASE COMPATIBILITY PI6003 STATUARY BRONZE BASE NO12/6/2010 PLW602S8 POLAR WHITE II COMPATIBILITY PLW606S7 WEATHERGUARD III NO12/6/2010 EFB617S0 RISER BLACK II COMPATIBILITY ELB400P9 BLACK BEAUTY NO6/16/2012 RFB632S8 WIRE BLACK ACM HFB605T3 BLACK MINI TEX HAA YES

12/6/2010 PFW704S9 WHITE WCJ COMPATIBILITY RFW695S8 CI WHITE II NO8/30/2012 RFB632S8 WIRE BLACK COMPATIBILITY PFB502S8 BLACK PEARL YES10/19/2011 ULW401T1 WILD RICE ACM PFW623S8 BRITE WHITE YES12/6/2010 PFW704S9 WHITE WCJ BOTH PFW653S9 CUSTOM WHITE III YES12/9/2010 RFW695S8 CI WHITE II COMPATIBILITY PFW653S9 CUSTOM WHITE III NO12/9/2010 PFW653S9 CUSTOM WHITE III COMPATIBILITY RFW695S8 CI WHITE II NO1/30/2011 PFW704S9 WHITE WCJ COMPATIBILITY PFW732S8 DAYLIGHT WHITE YES12/9/2010 PFB618T0 YGY TEXTURE COMPATIBILITY SFB607H0 WG HI TEMP BLACK YES but TGIC

12/13/2010 PI6076 BOX GRAY II BASE COMPATIBILITY HLH604S9 WC GRAY II NO3/14/2011 PFW704S9 WHITE WCJ ACM PFW710T1 SIGNAL WHITE YES

12/13/2010 PFB680S1 COR BLACK II COMPATIBILITY UFB610S4 CASCADE BLACK NO7/15/2011 PFW704S9 WHITE WCJ BOTH PFW510S9 SKY WHITE YES

12/13/2010 PFW500S9 GLACIER WHITE COMPATIBILITY PFW510S9 SKY WHITE NO12/13/2010 PFW510S9 SKY WHITE COMPATIBILITY PFW500S9 GLACIER WHITE NO11/22/2011 PFW704S9 WHITE WCJ BOTH PFW600S9 CUSTOM WHITE YES12/13/2010 HLH604S9 WC GRAY II COMPATIBILITY PI6076 BOX GRAY II BASE NO2/3/2012 PFW704S9 WHITE WCJ COMPATIBILITY RFW705S9 FAB WHITE YES3/7/2012 PFW704S9 WHITE WCJ ACM PFW744S8 DAYLIGHT WHITE II YES

2ND TOOL Compatibility Chart

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1st product 2nd product 3rd product 4th product 5th product

MILLENIUM GRAY II ANSI 70 GRAY SAND TEX ANSI 61 GRAY SAND TEX ANSI 70 GRAY SAND TEXANSI 61 GRAY SAND TEX

BOX GRAY II BASE

BOX GRAY II BASE

ANSI 61 GRAY SAND TEX ANSI 70 GRAY SAND TEX ANSI 61 GRAY SAND TEXANSI 70 GRAY SAND TEX

BOX GRAY II BASE

Product to find the sequence FOR

Excel Tool for compatibility chart

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Recommendation

We should continue working this tool so that complete sequencing of products can be done with this software.

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QUESTIONS / SUGGESTIONS