Efficiency Analysis and Performance Improvement of Bottling Production Line (Case on: East Africa Bottling Share Company)

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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.



Bottling, efficiency, performance, OEE, Arena, line simulation, production losses