Archbum (Optimization of production planning for OJSC "Archbum")

2012: Timization of production planning and management

Podolsk corrugator factory is a modern plant with a capacity of 14 million square meters of corrugated products per month, equipped with the most high-tech equipment from world manufacturers. The company is part of the company ARKHBUM.

One of the main prerequisites for the start of the project to optimize production planning and management for OJSC Arkhbum was the construction of a new production site, the launch of which will expand production to 290 million m2 of corrugated products per year. Previously, the existing planning system actually carried out only the formation of cuts, not having sufficient functionality to support modern planning methods that allow achieving maximum economic effect. So, volume-scheduling was carried out manually, which increased the influence of the human factor on the quality of the planning process.

As part of the project to establish a production planning system, the following objectives were set:

• Reduction of cost of finished products due to reduction of waste during cutting.
• Automated capacity utilization planning.
• Control of production process, tasks on lines. Visualize job queue for operators.
• Recording of production information on actual production of corrugated unit and processing lines.
• Relationship (integration) of the new system with the existing 1C customer order receiving and processing system.

The system optimal for the implementation of these goals was chosen for a long time, having carefully studied the market. As a result, we focused on a specialized software solution from OM Partners OMP Correlated and Solid Board System, as the most fully satisfying plant requirements.

Шаблон:Quote 'author = comments Deputy Director for Production of Podolsk corrugation factory Borumbey Konstantin Nikolaevich.

2010

Project Start Prerequisites

One of the prerequisites for the start of the project to optimize the planning and management of corrugation production for OJSC Archbum was the planned expansion of production from 120 to 290 million m2 per year, for the support of which it is necessary to increase manageability.

Alexey Dyachenko, Director of the Arkhbum Branch in Podolsk, says: "In 2012, Arkhbum plans to commission a new industrial site for the production of corrugated cardboard boxes located in the Istra district of the Moscow region. The new plant will house the most modern equipment. The production volume is estimated at 170 million square meters of corrugated cardboard per year. The existing planning system will not allow managing two production sites from the same center, so it was decided to purchase and quickly implement the OMP Correlated and Solid Board System software. In addition to this factor, this system will improve planning at the existing enterprise in Podolsk, increase flexibility, ease of operation, and reduce costs, including reducing waste. "

Previously, the company operated a planning system created by Russian developers, which in fact carried out only the optimization of the disclosure and did not allow to obtain all the competitive advantages and maximum savings through the use of advanced planning methods. In addition, given the future surge in production, a more powerful and flexible system was needed with a wide functionality covering all stages of planning, as well as accounting for actual production.

Purposes

The main goal of the project is to increase the manageability of the enterprise in the face of complex business requirements. Increasing customer orientation and profitability simultaneously with the commissioning of a new plant are the tasks that were set for the project team.

In addition to this main goal, of course, the management of the enterprise sets goals for achieving economic indicators - reducing losses and increasing productivity, goals for increasing the flexibility of capacity and order management, goals for improving the speed of information exchange between all participants in the production process.

OM Partners Selection

In the process of choosing a suitable solution, several Western systems developed specifically for corrugated plants were considered. As a result, the choice fell on a specialized solution from OM Partners, which, according to all criteria, best met the modern business requirements of Arkhbum OJSC. In addition, it is the only fully localized solution in Russia, unlike others not represented on the Russian market.

The selected OMP Correlated and Solid Board System (OMP CSBS) solution is used by leading industry companies (more than 120 companies around the world, including in Russia), including Smurfit Kappa Group, Stora Enso Packaging, Mondi Packaging, International Paper.

The OMP Corrugated and Solid Board system is the most popular system in Europe in the corrugated and solid cardboard industry. OMP offers an integrated solution for production planning, optimization of cutting on the corrugated unit and removal of actual performance from the equipment. Thanks to the deep knowledge of OM Partners experts of modern planning techniques and extensive industry expertise, the system includes powerful optimization algorithms. With the functionality of creating an optimal production plan, the system allows you to reduce the execution time of orders, while guaranteeing real deadlines for the execution of orders.

However, despite the complexity of the tasks to be solved, the system provides the end user with a convenient and understandable interface.

The OMP system combines corrugated cutting optimization functions and modules that allow planning from a long-term volume-scheduling to a detailed operational production plan. Production costs are reduced at every stage of planning through built-in cost optimization mechanisms. Optimization is carried out according to many criteria, including production waste (cut), level of work in process, stock of raw materials (paper), as well as the time of operations on various production equipment.

The OMP System Planning Modules support many technologies to reduce the length of the production cycle while maintaining the load balance of the equipment. When you create a cut map, the OMP Correlated and Solid Board Solution creates the optimal combination of customer orders with replenishment orders. The capacity reservation mechanism ensures that the capacity of the enterprise is maintained for important customers or specific products. Widely requested Vendor Managed Inventory (VMI) technology is supported.

OMP guarantees that orders are due. The order execution dates are calculated by a special OMP module, which calculates them taking into account the current situation of equipment loading, future plans and all existing technical and logistic limitations of the plant.

OMP allows the user to respond quickly to changes in the situation and make the right decisions based on complete and correct information about the current status of orders and equipment, emerging problems and future plans. Advanced system reporting and scenario modeling functionality allow you to quickly identify deviations from the plan and simulate their impact on the overall plan.

Planning in OMR is always aimed at ensuring the shipment of the ordered product, the necessary quality and in the promised time frame. The results of quality checks are stored in OMR and can be used in quality management systems, and personnel (machine operators) get on-line access to the latest versions of technical documentation and drawings.

The system is constantly developing, expanding functionality through the implementation of new ideas, solutions and wishes received during implementations. System updates are available to all clients. In addition, the modular structure of the system allows you to expand the implemented functionality and scale the system to new sites.

Of course, each enterprise is unique in its own way. Plants differ from each other in size, production process and hundreds of other characteristics, some are independent, others are in groups, and market conditions are also different. Therefore, OM Partners has developed an extremely flexible product that can be configured to take into account the specifics of almost any enterprise! Using OMP, it is possible to effectively plan both the operation of one corrugated unit and the synchronous operation of a group of plants.

The OMP system is easily integrated with the ERP systems used, providing the sales department with timely and correct information about the execution of client orders, thus automatically raising the level of customer service.

During the discussion of the project parameters, the specialists of ES-Em Engineering developed a demonstration example implemented in the CSBS OMR system on the real data of the corrugated packaging plant in Podolsk. In addition, the introduction of OMP CSBS will avoid human-related errors, and, as statistics show, reduce the number of overloads and reduce planning labor by 2-3 times.

Decision

The OMP Correlated and Solid Board system will be used in several departments of the enterprise:

1. Production Dispatch Department

• Production Manager. Tasks - Volume Scheduling. Capacity limitation.
• Technologist. Tasks - creation of cut maps, operational planning.

2. Production

• Corrugated unit operators. Tasks - transfer of tasks to the corrugated unit controller and operational execution control.
• Operators of processing lines. Tasks - execution of the plan and recording of actual development and other related indicators.
• Raw material warehouse storekeepers. Tasks - issue of raw materials to production by tasks.
• Storekeepers of the warehouse of stamps and cliches. Tasks - selection of stamps and cliches by tasks.
• Shift Master. Tasks - monitoring the execution of plans at work centers.

3. Sales, Planning and Economics

• Head of Sales. Reconcile the production plan with the dispatcher.
• Sales Manager. Tasks - Monitor the due dates of orders.
• Economist. Tasks - plan-based analysis of production activities.

The following OMP modules were implemented at the plant:

• The OMP Master Planner is used for demand planning, demand management, production bottlenecks, production start-up date calculation ("Pulling" principle ).
• OMP Correlator Optimizer is necessary for mathematical optimization of corrugated unit operation, production of several grades of corrugated cardboard, accounting for limited processing capacity.
• OMP Scheduler is used for on-line production planning, i.e. synchronizing the production schedules of the corrugated unit and the processing lines, monitoring the level of work in process, and updating the schedule.
• OMP Correlator Station/Link provides personnel with immediate access to the created plan, loading data about the required settings of the corrugated unit into its controller, automatic receipt of data from the equipment (time of start and end of reconfiguration, shutdown of work, quantity performed, etc.).
• The OMP Conversion Station/Link is used to visualize the necessary production information (schedule of processing lines, order queue, order details, etc.), to automatically record the equipment performance (duration of equipment changeover, equipment shutdowns, job execution time), to record the quantity of manufactured products.

Results

Currently, the system is fully configured, developed and tested automatic two-way communication with the corrugated unit, and communication with the corporate system 1C is configured. Ahead is user training and commissioning.

In the future, it is planned to expand the use of the implemented solution within the framework of other enterprises of Arkhbum OJSC.

Anton Shmatalyuk, Executive Director of ES-Em Engineering, comments: "I would like to note the high interest of the plant management in applying innovative approaches to management, as well as a clear strategic vision of the director, who was the main" driver "of this project aimed at improving the competitiveness of the enterprise in the long term. Such projects illustrate one of the key trends in the Russian market - a gradual understanding that without modern planning technologies it is impossible to achieve high-quality growth and the implementation of plans for intensive development. That is why our company relies on advanced planning and management techniques in supply chains, offering our customers high-quality solutions, both organizationally and in the field of information technology. "