Efficiency Analysis and Performance Improvement of Bottling Production Line (Case on: East Africa Bottling Share Company)
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Date
2018-10
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Abstract
In response to today's highly competitive business environment, companies are forced to analyze
and improve their existing manufacturing system continuously to minimize production losses
due to production disturbances that hinder the system efficiency, performance and reduce
profitability. The major problems of the case production line are related with low throughput,
high inefficiency losses, and higher raw material cost etc. As a result, over all equipment
efficiency of the production line is blow target (management plan) and it was challenged to
fulfilling the expected production plan (volume). Therefore, the purposes of this study are to
evaluate line efficiency and improve performance of the bottling production line.
Researches in relation to production line, productivity, efficiency losses, OEE analysis,
improvement, simulation modelling has been reviewed, primary and secondary data have been
collected from the case company through direct observations, check sheets. Also, different tools
such as OEE, Pareto chart, fish bone diagram, Arena simulation has been utilized, and root cause
analysis, brainstorming sessions has been conducted in analysis and improvement process.
Efficiency analysis of line is has been done using OEE, as a result the disturbances that results
production losses are studied, major efficiency losses are identified, focus of improvement areas
with associated challenges and their root causes has been investigated, then corrective actions,
counter measures and action plans has been suggested as strategy for improvements. Also, model
of the real production line has been developed Using Arena software, and validated. After
analyzing the production line model, line behavior, disturbances, efficiency losses under varying
set of circumstances were studied and performance measures quantified. Also, a number of
problems including; short stops, starvation and blockage were identified as problems. Then a set
of changes and modifications on the actual system simulation model has been suggested.
Finally, an improved model was proposed where line availability and performance can be
enhanced by 11%, line OEE increased by 21.4% and raw material loss and cost reduced.
Therefore, the achieved results in the proposed model can be easily adapted after similar studies
and the company's targets can be achieved and profitability, competitiveness can be improved
significantly.
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Keywords
Bottling, efficiency, performance, OEE, Arena, line simulation, production losses