August 2006

In this issue

	Classes
	Trick of the month: Convince your entourage on the benefist of process optimization
	To contact us

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Classes:

PlantTriage - Performance supervision and Process Control Optimization
September 12-14, Houston, TX

PlantTriage, What's new in V6?
September 15, Houston, TX

See our calendar for 2006

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Trick of the month: Convince your entourage on the benefits of process optimization

Problems

Do you want to convince someone?
Do you need more arguments?
Do you need hard numbers?
Do your management prefer invest in material?

To help you, here are some ideas:

• Present a short project, well documented.
• Use conservative numbers.
• Have measurable benefits and if possible easy to obtain.

Steps

1. Identify an area where :
   • It is possible to calculate benefits, see (Trick of the month July 2006)
   • Few loops, we suggest 10 to 30
   • A small number of variables
2. Verify data availability or collect data before to be able after to do a real comparison
   • Consult other departments : production, operation, engineering, maintenance
   • Validate data availability
3. Determine in advance your methodology to calculate results; what will be a success? Get approval by other departments on your method
4. Use conservative numbers to present your project
   • Estimated time; we suggest to use 3 to 10 loops per day
     • 3 loops/day if you do not have specialized tools but personnel is familiar with optimization methods
     • 6 loops/day if you have specialized tools and your personnel is familiar with optimization methods
     • 8 to10 loops/day if you work with a consultant specializing in process optimization
   • equipment replacement or repair is not calculated since these costs are already in maintenance budget
   • costs
     • estimate time to perform the work but also,
       • support for training or consulting
       • data collection before starting the project unless your archiving system configuration already stores this data
       • reports and meetings
   • Maybe you will have to organize the project in two phases in case maintenance or equipment replacement is needed
5. Present results in simple form; a complete report may be essential but be sure to also prepare an executive summary (1 or 2 pages) using table and color coded.

An example:

History

In department XX, one of the four production lines does not perform well. The director has numbers and facts to prove it. The three other lines have a rejection rate of 4%; the line not performing has 6%.

In the last three months, different projects have been done:

• Mechanical equipment have been replaced
• Air supply has been upgraded to reduce pressure changes and increase capacity
• Three variable speed drives have been upgraded
• Start-up sequence programming has been improved
• Defects analysis : 64% of rejects originate form the supply section
• Production rate has been decreased.

After this work, the new rejection rate was reduced from 6.8% to 6%. Unfortunately the costs were high.

One engineer suggests reviewing control strategies, to tune loops, to improve interlocks sequences … hence process optimization.

Project

Presented:

• 15 weeks, one engineer and one technician
  • 1200 hours x 52$/h = 62 400$
  • personnel attending meetings 38h x 52$//h= 1 976$
  • software (loop tuning and optimization tools) and training = 22 500$
  • contingencies 15% of total
  • Total cost 99 907$
• No material; (maintenance budget : estimated 10 000$)
• No production losses, all work done while the process is running at normal production rate

Summary Total cost 99 907$ Duration 15 to 20 weeks Production risks Very low Financial risks Average Rejection rate before 6%, after 4%; hence 2% Benefits 945 000$ Return on investment 100 000$/945 000$/y = 0,11 y conservative 0,25 y = 3 months

The department director is unable to convince his boss (production manager). He is skeptical! To convince him, a smaller project (reducing financial risks) and a simpler project is presented.

Reduced project

Supply sector generate 64% of rejects. This part of the process has only 23 loops.

Presented:

• Optimization limited to supply sector
• One person from the plant will work with Top Control
  • No need to buy specialized tools and no special training
  • This person will work with an expert and will learn procedures to optimize efficiently
  • Project completed within 1 week
  • 40 hours x 52$/h = 2 080$
    
  • attending meetings 8h x 52$//h= 416$
  • consultant, report, traveling costs, … = 7 600$
  • contingencies 15% of total
• • No production losses, all work done while the process is running at normal production rate
  • Summary :
    • Total cost = 11 610$
    • Duration : 1 week
    • Risks
      • Production : very low
      • Financial : very low
• Estimated results :
  • Rejection rate reduced by 2% x 64%, hence 1.28%;

we will use 1% Summary Total cost 11 610$ Duration 1 week Production risks Very low Financial risks Very low Rejection rate 1% Benefits 472 500$ Return on investment 11 610$/472 500$/y = 0,025 y conservative = 1 month

Advantages

• Budget is small and is easier to get approval.
• Results within 1 week.
• Low risk, high benefits, conservative numbers.
• Plant personnel will learn at the same time.
• Same approach can be reused for other sectors or areas...

Do not hesitate to contact us for help; we will help you to prepare your project.

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To contact us:

	Levis's office	+1 (418)834-4321
	Pointe-Claire's office	+1 (514)695-3492
	Hartland's office	(877) 867-6473
	Toll free	(877) 867-6473
	E-mail	info@topcontrol.com