South African wine and brandy producer and exporting giant, KWV, has improved production rate by 15% and reduced downtime by 20% with the implementation of Pragma's asset performance management system. KWV serves selected global markets with its extensive portfolio of natural and fortified wines and brandies, which have won numerous local and international awards. The activities at the bottling plant in Paarl include bottling, labelling and packaging.
In 2002 the company was under pressure to improve efficiencies and boost production. As an international exporter of wines, being first to market is crucial. The first to fill the shelves in Japan, USA and Europe with the season's offering walks away with the spoils. Achieving this requires a world-class production facility that can operate at capacity around the clock.
"We were well aware that our manufacturing process was not as efficient as it could be," says Daan Botes, production manager at KWV. "We suspected where the problems lay, but had no accurate data to back our assumptions. What we needed was a reliable performance information gathering system that could point out problem areas and be used to drive improvement."
Pragma Africa won the tender for the supply and implementation of an asset performance management system at KWV Packaging in late 2002. The project involved the implementation of Pragma ON KEY as the required software and hardware and Pragma AMiP, the asset management improvement programme to provide the necessary assessment and consultation to support effective operation and sustained asset performance improvement. AMiP assessments are used to verify the progress of asset management maturity in proposed action areas. Additional resources were spent supplying KWV Packaging with tools, training and information to form autonomous self-directed work teams.
One identified action area was performance measurement, with the improvement plan calling for the implementation of an effective performance measurement system. While the AMiP improvement actions were being implemented, the measurement methodology was determined and key performance indicators (KPIs) set as targets against which to monitor asset performance.
During the implementation of the ON KEY system several features were customised and new functionalities added to suit KWV's needs. Process monitoring PLCs and sensors were installed on the lines with the operators putting in information via touchscreen PCs.
By early 2004 at least six month's worth of reliable performance data was available, enabling critical analysis at component level for use in the development and optimisation of preventive maintenance schedules, the streamlining of production processes and problem solving in quality deviation trends. Production information was initially downloaded in batches to SAP R/3, KWV's current ERP system. ON KEY has since been customised to interface seamlessly with SAP so information can be transferred automatically.
Through ON KEY, management and shop floor workers now have up to-the-second access to KPIs. The database being built up is useful for tracking trends and enabling continuous improvement and problem solving.
"Before the Pragma intervention, limited advantage was gained from production figures due to the inaccuracy of data. Basic training in appropriate techniques allowed the workforce to turn the data into action plans and results. Measurements such as availability and production rates were initially erratic but have now stabilised and are showing gradual improvement," says Botes.
While slow running speed was initially thought to be a serious problem at the plant, detailed analysis showed that minor stoppages were in fact a much more serious concern. The identification and addressing of this problem reduced minor stoppages by as much as 85%. This in turn indirectly resulted in a 15% increase in running speed through the elimination of acceleration and deceleration times.
Botes points out that the quality rate has remained steady as there was very limited room for improvement within this variable. "Overall our production downtime has seen a decrease of 20% since the launch of the online measurement system. Such results contribute directly to the bottom line and pays for the investment," says Botes.
"Operational efficiency and improved asset performance is the key to sustained business success in today's global marketplace," says Adriaan Scheeres, CEO of Pragma. "We are proud to be associated with KWV as the company's long term asset management partner, assisting them achieving their business goals."
For more information contact Louis Volschenk, Pragma Holdings, 021 943 3900, louisv@pragma.co.za, Daan Botes, KWV Packaging, 021 807 3393, botesd@kwv.co.za
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