AU724154B2 - Method and system for controlling processes - Google Patents

Description

WO 99/42939 PCT/AU99/00098 1 METHOD AND SYSTEM FOR CONTROLLING PROCESSES TECHNICAL FIELD.

This invention concerns the control of processes, especially manufacturing processes.

BACKGROUND ART A typical industrial manufacturing plant involves a number of processes which produce products. Each process consists of a number of sub-processes. A primary goal of plant management is to operate the plant as efficiently (as close to optimum performance) as possible to give the lowest product cost. However, it is not unusual for a plant to operate less than optimally. This may happen for a variety of reasons. Difficulties may be caused by one or more problems in the process or sub-processes. For example, a power failure may stop all processes.

A jam in a cap chute in a bottling plant may cause un-capped bottles which may require an extra operator to cap the bottles manually. in today's complex manufacturing plants, there may be thousands of separate problems which cause performance to deviate from optimum levels. Since resources for fixing such problems are not unlimited, management is often faced with difficult choices as to which problems to solve and the order in which they should be solved.

Using the technology of the prior art, it was possible to track the performance of an industrial process by means of the following: I. calculating the efficiency of the process the ratio of the actual output to the true potential output); 2. determining reasons for downtime the identity and duration of the problems that stop the bottleneck); 3. determining labor variance the difference between the actual direct labor cost and budgeted or planned direct labor cost); 4. determining raw material variance the difference between the actual oAdocs\patentspc8412.doc 2 raw material consumption and budgeted or planned raw material consumption); and determining the scrap level the amount of product rejected during or upon completion of the manufacturing process).

Each of these approaches has deficiencies. In particular, none of the approaches of the prior art attempts to calculate the true financial cost of an individual problem nor the total cost of all problems affecting an industrial process. It is therefore impossible for plant management to allocate resources in an efficient manner if prior art approaches are employed.

The present invention addresses these and other numerous deficiencies of the •prior art.

DISCLOSURE OF THE INVENTION The present invention comprises a method and a system for controlling a process S. for producing product, the process being designed to run at an optimum performance, the methodcomprising the steps of: identifying a problem occurring at some point in the process, which problem causes the process to run at less than the optimum performance; identifying a bottleneck in the process, such that the bottleneck dictates the maximum speed at which the process runs; determining the impact of the problem on the performance of the process at the bottleneck; calculating a financial value of the problem taking into account the impact of the problem on the performance of the process at the bottleneck; prioritising the problem based on the financial value of the problem; and Ts

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0 7' i2,Fi o:\docs\patents\pct8412.doc 2a adjusting the parameters of the process on the basis of the priority of the problem determined by the prioritising step.

Preferably, the method further comprises the steps of determining an available optimum processing time and determining how much of the available optimum processing time is lost due to the problem.

The amount of processing time lost due to a problem may be ascertained by determining an available optimum processing time (or throughput) derived from how much processing time (or throughput) would be available to the process if the process were to run at the optimum performance and how much of the product could be sold if made in the processing time which would be available to .o o *oooo *g o *o* WO 99/42939 PCT/AU99/00098 3 the process if the process were to run at the optimum performance. The available optimum processing time and therefore the amount of processing time lost due to the problem thus reflect market conditions for the product made by the process.

s In one embodiment, the invention is capable of determining the true financial cost of problems affecting the process, thus enabling the different problems to be prioritised and appropriate resources deployed for each problem. A typical process for producing a product is designed to run at an optimum performance.

However, the process may have one or more problems which cause the process to run at less than the optimum performance, thereby causing the process to lose processing time or throughput.

In another embodiment, the method of the invention includes identifying a problem in the process and identifying a bottleneck in the process, such that the bottleneck dictates the maximum speed at which the process runs. A financial value of the problem is determined, taking into account the impact of the problem on the bottleneck. The problem can then be prioritised, a decision can be made whether to correct the problem or resources can be allocated to the problem based on the financial value of the problem.

Another aspect of the method of the invention is valuing the problem based on marginal profitability of the product, thus reflecting market conditions and allowing market conditions to be used in prioritising the problem. As another option, the financial value of the problem may be determined by valuing the processing time the process loses due to the problem based on labour cost.

Another aspect of the method of the invention is determining how much processing time the process loses due to the problem. The step of calculating the financial value of the problem may comprise the step of valuing the problem based on how much processing time the process loses due to the problem.

A process may be production constrained or sales constrained. The process is production constrained when as much of the product as the process can produce can be sold in the market. The process is sales constrained when not all the WO 99/42939 PCT/AU99/00098 4 product that can be produced can be sold. Another aspect of the invention is the determination of whether the process is production constrained, and the determination of whether the process is sales constrained in order to determine the financial value of the problem. Yet another aspect of the invention is the s determination of the extent to which the process is production constrained, and, to the extent that the process is production constrained, valuing the processing time the process loses due to the problem based on marginal profitability of the product. Still another aspect of the invention is valuing lost process time based on labour cost to the extent that any lost process time is not valued based on marginal profitability.

Yet another aspect of the method of the invention is determining how much processing time the process loses due to the problem causing the bottleneck to stop running, how much processing time the process loses due to the problem causing the bottleneck to run slower than expected and how much processing time the process loses due to the problem causing product to be scrapped at or after the bottleneck.

The present invention also comprises a computer system for performing the method of the invention. The computer system of the present invention may include means for inputting modeling data relating to the process, thereby building a computer model of the process and means for inputting performance data obtained by monitoring performance of the process. In one embodiment, means are provided for identifying a bottleneck in the process such that the bottleneck limits the maximum speed at which the process runs. The system can also include means for determining a financial value of problems in the process which include means for determining an amount of processing time the process loses due to a problem or one of a plurality of problems by taking into account the impact of the problems on the bottleneck.

Another aspect of the invention is means for determining how much of the product could be sold if made in the time which would be available if the process were to run at the optimum performance. The amount of product which could be sold is used to determine the available optimum processing time, thus reflecting o:\docspatentspct\8412.doc market conditions in the value of the problem.

Another aspect of the invention is means for valuing the available optimum processing time lost due to the problem based on marginal profitability of the product and means for valuing the available optimum processing time lost due to the problem based on labor cost.

Further aspects of the invention involve means for determining the extent to which the process is production constrained and sales constrained; and means for valuing the processing time the process loses due to the problem based on marginal profitability of the product to the extent that the process is production lo constrained and based on labor cost to the extent that the process is sales constrained.

Another aspect of the computer system is means for valuing problems based on marginal profitability of the product, thus reflecting market conditions and allowing e market conditions to be used in prioritising the problems.

15 Another aspect of the computer system is means for determining a slow running time for the problem, indicative of how much processing time the process loses due to the problem causing the bottleneck to run at a speed slower than an expected speed; means for determining a downtime for the problem, indicative of how much processing time the process loses due to the problem causing the 20 bottleneck to stop running; and means for determining a bottleneck waste time for the problem, indicative of how much processing time the process loses due to the problem causing product to be scrapped at or after the bottleneck. Means are provided for valuing the problem based on the amount of the processing time lost due to the problem.

Preferably, the method further comprises the step of determining how much additional crew operates the process due to the problem, wherein the step of determining the financial values comprises determining the financial value of how much additional crew operates the process due to the problem, and the step of determining how much the problem reduces profitability is also based on the S%{inancial values of how much additional crew operates the process due to the o:\docs\patentspcR8412.doc problem.

Preferably, the method yet further comprises the steps of determining how much raw material the process uses due to the problem, wherein the step of determining the financial values comprises determining comprises determining the financial value of how much raw material the process uses due to the problem, and the step of determing how much the problem reduces profitability is also based on the financial values of how much raw material the process uses due to the problem.

These and other aspects of the invention will be apparent from the Brief 10 Description of the Drawings and Claims.

BRIEF DESCRIPTION OF THE DRAWINGS Fig. 1 is a block diagram showing the present invention applied to a simple potato processing and packaging plant;

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o WO 99/42939 PCT/AU99/00098 6 Fig. 2 is a flowchart showing the basic steps involved in the present invention; Fig. 3 is a snapshot of the main computer screen for the computer program of the present invention; Fig. 4 is a snapshot of the computer screen used for entry of shift data for the s modeling of the process to be controlled using the present invention; Fig. 5 is a snapshot of the navigation menu bar used for the entry of process, variant, sub-process and raw material data for the modeling of the process to be controlled using the present invention; Fig. 6 is a snapshot of the computer screen used for entry of process data for the modeling of the process to be controlled using the present invention; Fig. 7 is a snapshot of the computer screen used for entry of variant data for the modeling of the process to be controlled using the present invention; Fig. 8 is a snapshot of the computer screen used for entry of sub-process data for the modeling of the process to be controlled using the present invention; Fig. 9 is a snapshot of the computer screen used for entry of raw materials data for the modeling of the process to be controlled using the present invention; Fig. 10 is a snapshot of the computer screen used for entry of reason sets for the modeling of the process to be controlled using the present invention; Fig. 11 is a snapshot of the computer screen used for attaching reason sets to variants; Fig. 12 is a snapshot of the computer screen used for attaching reason sets to sub-processes; Fig. 13 is a snapshot of the computer screen used for the entry of quantity sets; Fig. 14 is a snapshot of the computer screen used for attaching reason sets to the quantity sets; WO 99/42939 PCT/AU99/00098 7 Fig. 15 is a snapshot of the computer screen used for selecting process, shift, date and variant and also for entry of production data; Fig. 16 is a snapshot of the computer screen used for entry of downtime data; Fig. 17 is a snapshot of the computer screen used for entry of yield data; Fig. 18 is a snapshot of the computer screen used for entry of waste data; Fig. 19 is a flow diagram showing the basic steps in the valuation of problems and the control of a process in accordance with the value of problems; Fig. 20 is a flowchart showing the calculation of the available production constrained savings table over the base table period; Fig. 21 is a flowchart showing the calculation of the value of lost labor time caused by a problem over the base table period; Fig. 22 is a flowchart showing the lost production cost evaluation method; Fig. 23 is a flowchart showing the calculation of the value of the downtime component of a problem over the base table period; Fig. 24 is a flowchart showing the calculation of the value of the slow running time component of a problem over the base table period; Fig. 25 is a flowchart showing the calculation of the value of the bottleneck waste component of a problem over the base table period; Fig. 26 is a flowchart showing the calculation of the value of the raw material waste component of a problem over the base table period; Fig. 27 is a flowchart showing the summing of the components of the value of a problem over the base table period, the extrapolation of the value and the prioritising of the problem based on its value.

DETAILED DESCRIPTION The following is a detailed description of the invention. For ease of WO 99/42939 PCT/AU99/00098 8 understanding, as aspects of the invention are described, reference is made to an example of a simple industrial process for packaging potatoes. The description and example are not intended to be limiting, the scope of the invention being determined by the claims.

A typical factory involves several shifts each day and several processes producing "variants" from raw materials. Each process may have sub-processes.

A "variant" is a product or products whose characteristics are very similar.

In the potato processing and packaging example, broadly illustrated in Fig. 1, factory 1 receives raw materials 2 and processes them by means of processes (or lines) 3, 4 and 5 which produce variants 6, 7, 8 and 9 cases of 1, 2 and 3 Ib cans of potatoes and variants 10 and 11 packets of salted and plain potato chips. Each variant has a number of different characteristics. These include the optimum crew size for operating the process, the maximum bottleneck speed of the process, the selling price of the variant, the unit marginal manufacturing cost of the variant and the names of various problem sets. A number of different problems may arise in a process. "Problem sets" are problems of different types which cause the characteristics of the process to deviate from their optimum or expected values. For example, the process may run too slowly ("slow running" problems), excess crew may be assigned to a process ("excess crew" problems), the process may stop working ("down time" problems), units may be scrapped at or after the bottleneck which wastes process time ("bottleneck waste" problems) and raw materials may be wasted ("raw material waste" problems).

The invention comprises a personal computer 12 programmed to model industrial process or factory 1 and perform certain calculations using custom application 13. Once the calculations have been performed, a problem priority list is printed out by printer 14 and is used to prioritise the adjustment of the parameters of factory 1.

Custom application 13 comprises specially written program code which interacts with a commercially available database 15, preferably Access®, available from Microsoft. Custom application 13 and database 15 preferably run in a Windows® environment, but the precise operating system and database are not crucial to WO 99/42939 PCT/AU99/00098 9 the invention. The custom application and its interactions with the database will now be described in detail, it being understood that it is within the capabilities of a person of ordinary skill in the art to write the computer code needed to implement the invention.

The most basic steps of the method of the invention are shown in Fig 2. First, the process or factory is modeled at SI. Next, process data is gathered and input into the database at S2. Financial values are calculated for the problems and a problem priority table is generated at 53 based on those values. The parameters of the process are adjusted based on the problem priority table at 54.

Each of these steps will now be described in detail.

1. MODELING THE FACTORY OR PROCESS: In order to model the factory or process, data is entered into the computer via the main menu screen 20 of custom application 13 shown in Fig. 3. The user clicks the mouse or pointing device of computer 12 on the Tasks icon 24 in the menu bar 22, pulls down a menu 26 and clicks on the Model Factory ic6n 28. That takes him/her into the Factory Model screen 30 shown in Fig. 4. As shown in Fig.

4, the Factory Model screen is made up of a graphical representation of ten index cards, in a configuration commonly used in Windows 95 applications. Each of the index cards contains fields for entering data or drop down lists containing data already entered. These are used to build the model of the process or factory.

The index cards are as follows: Shift Card 32, Process Card 34, Variant Card 36, Raw Materials Card 38, Sub Process Card 40, Reason Sets Card 42, Quantity Sets Card 44, Targets Card 46, Custom Measures Card 48 and Custom Variables Card 50. Cards 32 to 44 will be described in detail. Cards 46, 48 and have no application to the present invention.

Each screen displaying Process Card 34, Variant Card 36, Raw Materials Card 38, Sub Process Card 40 has a number of records. The user can navigate through the records by means of the navigation menu bar 51 shown in Fig. 3o The navigation menu bar has the following buttons: MoveNext 53, which skips to WO 99/42939 PCT/AU99/00098 the next record, MovePrevious 52, which skips back to the previous record, MoveFirst 55, which skips to the first record and MoveLast 56 which skips to the last record. The record number is displayed in field 54. New records are added by moving to the last record and pressing MoveNext. This gives a blank record.

When the record is filled or edited, the user presses MoveNext to save the information.

a. Shift Card: Shift card 32 contains three fields 321, 322 and 323 which define the shifts operating in the factory. In the potato processing and packaging example illustrated in Fig. 4, there are three shifts: day, afternoon and night. The user simply enters the names of the shifts in the shift fields and then clicks on the next index card.

b. Process Card: Process Card 34 shown in Fig. 6 permits entry of data for the various processes in the plant. It contains three fields: Process Name 341 which identifies each process, All Up Labor Rate ("AULR") 342 and Target Set 343. The All Up Labor Rate entered at field 342 is the total hourly cost of employing operators for a particular process. The Target Set drop down list 343 is not used for the present invention. The Process Card also allows the user to set a flag 344 which indicates whether a particular process is a bottleneck process, meaning that it is the limiting process in the factory. Flag 344 is not applicable to the present invention.

In the potato processing and packaging example, there are three processes, line K1 for putting potatoes into 1 Ib cans, line K2 for putting potatoes into 1, 2 and 3 Ib cans and the Chipping Line which produces salted and plain potato chips. The data entered for the various records stored in database 15 via the Process Card for the potato processing and packaging example are shown in the following table: WO 99/42939 PCT/AU99/00098 Line: KI K2 Chipping Line Process Name K1 K2 Chipping Line All Up Labor Rate 20 20 22 Target Set N/A N/A N/A Bottleneck Yes Yes Yes Process? TABLE 1: Process Records c. Variants Card: As stated above, a variant is a product or products whose characteristics are very similar. Each variant must be defined in order to model the factory. In our example, the variants are 1, 2 and 3 Ib cans of potatoes and packets of potato chips. The characteristics of the variants of the process are entered at Variant Card 36 shown in Fig. 7. Each characteristic is entered into a specific field in Variant Card 36. The various fields and drop down lists are: 0 process name, for example, KI for 1 lb cans of potatoes drop down list 361.

variant name, for example, 1 Ib cans drop down list 362.

production units for example cases of 1 Ib cans field 363.

maximum bottleneck speed of variant ("MBSv") field 364 this is the maximum speed at which a process can run the maximum speed of the slowest sub-process) and is measured in production units per hour. Each process has a bottleneck sub-process which dictates the maximum speed at which the process can run. This must be identified in each case.

Soptimum crew size to produce variant v ("OCSv") the optimum number of human operators needed for running a particular process to produce variant v field 365.

WO 99/42939 PCT/AU99/00098 12 unit marginal manufacturing cost for variant v ("UMCV") the cost of producing an additional production unit of the variant, including raw materials, packaging materials, additional energy costs, additional waste removal costs and additional distribution costs field 366.

unit sales price of variant v the sales price per production unit field 367.

production constrained additional volume of variant v the percentage of additional volume of the variant which could be sold, over and above the current level of production field 368.

io capital expenditure field 369 not used in the present invention.

ABS conversion name drop down list 370 not used in the present invention.

Output conversion name drop down lists 371 not used in the present invention.

Reason Sets the possible reasons for problems with the process drop down lists 372, 373 and 374. The details of these will be described below.

Missed Plan Reason Set and Target Set drop down lists 375 and 376 are not used in the present invention.

In the potato processing and packaging example, the data for each variant are shown in the following table: WO 99/42939 PCT/AU99/00098 Process K1 K2 K2 K2 Chipping Chipping Name: Line Line Variant 1 Ib 1 Ib can 2 Ib can 3 Ib can plain salted Name: can Production cases cases cases cases pounds pounds Units: MBS: 1000 1000 600 400 3000 2000 OCS: 25 28 28 28 15 17 UMC: 2 2 5 7 .55 .6 USP: 5 5 9 12 2 2 PC%: 10 10 0 2 20 TABLE 2: Variant Records d. Sub-Processes Card: Each process can be broken down into sub-processes. A sub-process is a logical step or piece of equipment used in the process, typically a machine, for example, the canning machine for putting potatoes into cans or the salting barrel for salting the potato chips. While there may be a number of different subprocesses in a process, only those which are relevant need to be identified and included in the factory model. Relevant sub-processes include: The Speed Bottleneck Sub-Process: This is the sub-process with the lowest maximum speed and hence the speed-limiting sub-process. This sub-process must be modeled.

The Output Bottleneck Sub-Process: This is the sub-process which limits the output of the process for the majority of the time. It may be the same as the Speed Bottleneck Sub-Process. The Output Bottleneck Sub-Process is the sub-process with the lowest product of maximum bottleneck speed and percentage up time. Modeling this process is optional.

WO 99/42939 PCTIAU99/00098 14 Near Bottleneck Sub-Processes: These are processes which are close to being the output bottleneck or often are. Modeling these processes is optional.

Reverting to the potato packing process, the speed bottleneck sub-process for the 1 Ib can process K1 is the can filler. It is also the output bottleneck. The same is found to be case for the 2 Ib process, K2. In the chipping line, the speed bottleneck is the fryer for plain chips and the salting barrel for salted chips. For the sake of simplicity, in this example, it will be assumed that there are no other sub-processes.

Modeling each process includes entering relevant sub-process information at Sub-Process Card 40 shown in Fig. 8. The user selects the process the chipping line) by means of drop down list 401, and the variant made by that process salted chips) by means of drop down field 402. The sub-process the salting barrel the speed bottleneck sub-process in this case) is entered at drop down list 403 or can be selected from a list of sub-process names. The downtime reason set name is displayed in drop down list 404, which contains a list of the reason sets (reasons for down time at the particular sub-process entered as described in the text relating to Fig. 10). The Percentage of Bottleneck is entered at field 405. This is the percentage of throughput through the particular bottleneck sub-process. For example, if two parallel can fillers formed a bottleneck, each filler would account for a proportion of the bottleneck.

In the example illustrated in Fig. 8, the salting barrel sub-process represents 100% of the bottleneck throughput.

The data for the speed bottleneck sub-process for each of the processes K1, K2 and the chipping processes are shown the following table: WO 99/42939 PCT/AU99/00098 Process K1 K2 K2 K2 Chipping Chipping Name: Line Line Variant 1 Ib can lb can 2 Ib can 3 lb can plain salted Name: Sub-Process K1 Filler K2 Filler K2 Filler K2 Filler fryer salting Name: barrel of 100 100 100 100 100 100 Bottleneck: TABLE 3: Sub-Process Records e. Raw Materials Card: Data relevant to the value of raw materials is entered into the model at Raw Materials Card 38 shown in Fig. 9. For each variant, there is at least one raw material. Raw materials are defined in terms of: the process name drop down list 381 containing the names of all the processes (see Fig. 6).

1o the variant name drop down list 382 containing the names of all the defined variants (see Fig. 7).

the raw material name drop down list 383, allowing direct entry or selection from previously defined raw material names.

the units of raw material drop down list 384 containing the names of all reason quantity sets (see Fig. 13).

the per unit cost of raw material (RW$r) field 385.

the minimum raw material content field 386 this is the minimum quantity of raw material required to produce one production unit of the variant, assuming no waste loss.

WO 99/42939 PCT/AU99/00098 16 The target set drop down list 388 and conversion name drop down list 389 are not pertinent to the present invention.

The data for the raw materials used in processes K1, are shown in the following table: K2 and the chipping lines Process Variant Raw Raw Raw Cost Minimum Raw Name Name Material Units Material Name Content K1 1 Ib cans potatoes Ibs 0.1 K1 1 Ib cans cans cans 0.05 K2 1 Ib cans potatoes Ibs 0.1 K2 1 Ib cans cans cans 0.05 K2 2 Ib cans potatoes Ibs 0.1 K2 2 Ib cans cans cans 0.1 K2 3 Ib cans potatoes Ibs 0.1 K2 3 Ib cans cans 0.15 Chipping plain potatoes Ibs 0.1 3 Line Chipping plain bags bags 0.02 1 Line Chipping salted potatoes Ibs 0.1 3 Line Chipping salted bags bags 0.02 1 Line TABLE 4: Raw Material Records f. Reason Sets Card: A "Reason Set" is a group of reasons for different problems in the factory or process (excess crew problems, downtime problems, slow running problems, bottleneck waste problems and raw material waste problems). Reason sets are defined by inputting information at the Reason Sets Index Card 42 shown in Fig.

Each reason set has a name shown in drop down list 421. The reason set is WO 99/42939 PCT/AU99/00098 17 entered into drop down list 421. Each reason set consists of one or more reasons for a particular problem. In the illustrated example, the K1/K2 Downtime set comprises changeovers, cans jammed at the depalletizer, jams at the infeed to the filler etc. as shown in table entered at table 422. These are entered, one reason definition per line. The columns 423 are the characteristics of each reason. When the operator clicks on a particular reason set in the pull down menu at 421, the table of reasons in that reason set and the corresponding characteristics columns appear. The relevant characteristic data can then be entered. The properties of the illustrated reason set are: Reason Code column 424 this is a number indicating the order of a particular reason within the reason set.

SReason Name column 425 this is a descriptive title for a reason in the reason set, for example, the reason set shown in Fig. 10 includes a reason name "changeovers." This indicates that a problem is caused by changeovers between variants.

Bottleneck Waste Flag column 426 this is a flag which signifies that a particular reason in the reason set acts as a bottleneck waste reason, in addition to any other type of reason that it might be.

Waste Reporting Unit ("WRUpv") column 427 these are the units of waste in which the particular reason will be reported, for example, kilograms of raw potatoes, cans, or cases.

SWaste Reporting Units to Production Units ('WRUtoPUv") field 428 this is the numerical conversion factor to convert the waste reporting units to production units.

Note that the following fields and flags shown in Index Card 42 are inapplicable to the present invention: Setup flag, subset name, DT category flag, Base DT category, Waste Entry Conversion Code, DT target, SR target, XC target and BW target.

WO 99/42939 PCT/AU99/00098 18 Four reason sets are defined in the example which has been used to illustrate the modeling of the factory. The data entered into the Reason Set Card for the potato processing and packaging plant are tabulated in Tables 6, 7, 8 and 9 for KI/K2 waste, K1/K2 slow running, K1/K2 downtime and K1/K2 excess crew respectively.

Reason Code' Reason Name Bottleneck Waste Waste Waste Flag Reporting Reporting Unit Unit to Production Units 1 changeovers true full cans 0.1 cans per case) 2 cans falling true full cans 0.1 from conveyor 3 jams at infeed false cans to filler 4 cans jammed false cans at depalletizer leakage true full cans 0.1 TABLE 6: K11K2 Waste Reason Set WO 99/42939 PCT/AU99/00098 Reason Code Reason Name Bottleneck Waste Waste Waste Flag Reporting Reporting Unit Unit to Production Units 1 underfills false 2 faulty seal on false fill heads 3 leakage false 4 operator false choice wrong setting false after changeover TABLE 7: KIlK2 Slow Running Reason Set Reason Code Reason Name Bottleneck Waste Waste Waste Flag Reporting Reporting Unit Unit to Production Units 1 changeovers false 2 cans jammed false at depalletizer 3 jams at infeed false to filler 4 leakers false spill at filler false outfeed 6 faulty seal on false filler TABLE 8: K1/K2 Downtime Reason Set WO 99/42939 PCT/AU99/00098 Reason Code Reason Name Bottleneck Waste Waste Waste Flag Reporting Reporting Unit Unit to Production Units 1 no label false applied 2 leakage false 3 too many false temps booked 4 forced product false changeover TABLE 9: K11K2 Excess Crew Reason Set g. Attaching Reason Sets: Having entered the data defining the various reason sets, the reason sets can be attached to the variants and subprocesses. It will be recalled that when Variants Index Card 36 was described (see Fig. the Reason Set fields were not discussed. The Reason Sets fields in Fig. 7 Excess Crew 372, Slow Running 373, Bottleneck Waste 374 and Raw Material Waste 376) are pull down menus which allow the user to select a known Reason Set entered at the Reasons Sets Card. The attachment of Reason Sets to variants is illustrated in Fig. 11. There are similar reason sets for the sub-processes which are similarly attached by means of the sub-process screen as shown in Fig. 12.

h. Quantity Sets: Waste is typically reported in terms of units of finished or partially finished product cans of potatoes or cases of cans). It is therefore necessary to provide a conversion factor "WRUtoRUp," between waste reporting units and raw material wasted('"WasteQty,,d"). The definition of Reason Quantity Sets provides this conversion factor.

WO 99/42939 PCT/AU99/00098 21 A reason quantity set must be defined between each reason set which is to be used for raw material waste problems and each raw material. In the case of the potato processing and packaging plant, there are two raw materials for each production variant. A reason quantity set will be required for each raw material for each variant, unless the data are identical.

The user clicks on the Quantity Sets index card 44. Refer now to Fig. 13. Drop down list 441 contains the names of all the reason sets already defined (see Fig.

The name of the quantity set is entered at field 442. Table 443 is made up of each reason in the reason set which is specified in field 441. The waste reporting unit (column 444) comes from the definition set up in Fig. 10 (column 427). The only data entered is WRUtoRU,,, entered in column 445.

Four Waste Reason Quantity Sets are required for the K1 and K2 lines of the potato processing and packaging plant described. One for cans one for 21b and one for 31b cans) and two are for potatoes. These are shown in Tables 11 and 12.

Reason Reason Name Waste Reporting Waste Reporting Unit Code Unit to Raw Material Units 1 changeovers full cans 1 2 cans fallen from full cans 1 conveyor 3 jams at infeed to filler cans 1 4 cans jammed at cans 1 depalletizer leakage full cans 1 TABLE 10: K1lK2 Cans Reason Quantity Set WO 99/42939 PCT/AU99/00098 Reason Name Waste Reporting Waste Reporting Unit Unit to Raw Material Units changeovers full cans 2 cans fallen from full cans 2 conveyor jams at infeed to filler cans 2 cans jammed at cans 2 depalletizer leakage full cans 2 TABLE 11: K1lK2 21b Potatoes Reason Quantity Set Reason Reason Name Waste Reporting Waste Reporting Unit Code Unit to Raw Material Units 1 changeovers full cans 3 2 cans fallen from full cans 3 conveyor 3 jams at infeed to filler cans 3 4 cans jammed at cans 3 depalletizer leakage full cans 3 s TABLE 12: KIlK2 Cans Reason Quantity Set i. Attaching Reason Quantity Sets to the Factory Model: Refer to Fig. 14. The raw materials card 38 is used to attach the reason quantity sets entered at the quantity sets screen, just described, to the model. The waste reason quantity set is selected using drop down list 387 and attached by means of the navigation menu bar.

WO 99/42939 PCT/AU99/00098 23 2. INPUT OF PROCESS DATA: Having created a model of the process or factory, the next step is the entry of data relating to the actual performance of the process or factory. For each production run, factory personnel will enter the data for each variant. There are four categories of data: production data; downtime data; yield data and waste data.

On the main screen 20, the operator clicks the pointing device on Task 24 in the menu bar 22, pulling down the task menu 26. See Fig. 3. He/she then clicks on the Production Data Entry icon 25. This brings up the Data Entry screen shown in Fig. 15. The operator then selects the shift afternoon) in drop down list 601, enters the date 1/1)in field 602, selects the process the K1 line) in drop down list 603 and the variant lIb cans) in drop down list 604. For each of the categories of data production data; downtime data; yield data and waste data, there is a corresponding index card 610, 620, 630 and 640 respectively.

Clicking on the Production Index Card 610 (see Fig. 15) allows the operator to enter production data. In each case, the operator will enter the actual number of hours the process was crewed for the relevant shift 8 hours) in field 611, the speed of the process the actual bottleneck speed in units per hour ("ABSvsd")(e.g. 800) in field 612, the output in units 5,000) in field 613 and the actual crew size ("ACSvd")(e.g. 25) in field 614. The operator then uses the drop down lists 615 and 616 to choose a reason for excess crew and a reason for slow running. See Fig. 7, fields 372 and 373.

Referring to Fig. 16, the operator clicks on Downtime Index Card 620 to enter data relating to downtime and number of stops in a particular production run by variant. For the same shift, date, process, and variant just selected, a number of downtime entries can be entered. Downtime Index Card 620 includes table 621 for that purpose. Table 621 has a sub-process drop down list 622 which allows selection of a sub-process from the set of sub-processes defined in the subprocesses screen 40 (See Fig. for the selected process and variant. The appropriate reason set for the sub-process is then made available for the set of WO 99/42939 PCT/AU99/00098 24 downtime reasons. The user then selects a reason code from drop down list 623 (entered at the Reasons Sets screen 42) (See Fig. 10) and attached to the particular sub-process in the sub-process screen 40 (See Fig. 12). Having selected a sub-process and a reason code, the operator can now enter the downtime ("DTpvd") and the number of stops in fields 624 and 625 respectively.

This is repeated for all downtime which has occurred on all sub-processes on the selected shift for the selected variant.

Fig. 17 shows the Yield Index Card 630. Clicking on this card allows entry of the quantity of raw materials which were used for the selected process. For the same shift, date, process, and variant just selected, a defined raw material ("raw name") for a particular variant can be selected by clicking on the drop down list 632 in table 630. This list contains all the raw materials for the selected variant.

This was defined in the Raw Materials screen (see Fig. The quantity of each raw material ("RIVd") used in the production run of the selected variant on the selected shift is entered in column 632.

Fig. 18 shows the Waste Data Index Card 640. Clicking on this card allows the entry of data for raw material waste and bottleneck waste. For the same shift, date, process, and variant just selected, a waste reason set is selected (see Fig.

7, field 374) by clicking on the code drop down list 64, which lists all defined codes previously entered (see Fig. 10). Once the reason code has been selected, the waste reason description is automatically loaded. See column 642.

The quantity of raw material wasted ("WasteQtyp,,d") is entered in column 643 and the frequency of waste is entered in column 644. This is repeated for all raw material and waste problems that occurred during production of the variant on the particular day and shift.

3. GENERATING THE PROBLEM PRIORITY TABLE FOR PROBLEMS IN A PROCESS: The factory or process has now been modeled and the relevant performance data have been entered. The operator now clicks on the print reports icon 27 in main screen 20 (see Fig. This starts the calculation of the "Problem Priority Table" and its printing.

WO 99/42939 PCT/AU99/00098 The following is a detailed description of the calculation of the problem priority table. Referring to Fig. 19, there are ten basic steps in the development of the problem priority table, namely: 1. Building the "Available Production Constrained Savings Table." Step 2. Valuing the excess crewing component of a problem p over the base table period, BTP (XCLL$pn). Step S12. The base table period is typically five weeks.

3. Valuing the process downtime component of a problem p over the BTP Step S14.

4. Valuing the process slow running time component of a problem p over the BTP Step S16.

Valuing the process time lost due to bottleneck waste (the product rejected at or after the bottleneck sub-process) component of a problem p over the BTP Step S18.

6. Valuing the wasted raw material component of a problem p over the BTP Step 7. Summing the total value of problem p over the BTP. Step S22.

8. Extrapolating the cost of problem p over a one year period. Step S24 9. Repeating steps 1 to 8 for all problems occurring in the process over the BTP. Steps S26 and S28.

Sorting by total value all problems to generate the problem priority report, printing out the report and adjusting the process in accordance with the value of the problems. Step 11. Each of these steps will now be described in detail.

WO 99/42939 PCT/AU99/00098 26 1. Building the "Available Production Constrained Savings Table." If the process is not operating at 100% efficiency, bringing it to 100% efficiency will allow additional units of the variant to be made. If those units can be sold the process is "production constrained") then additional profits will be derived. If those units cannot be sold the process is sales constrained), then improving the efficiency of the process will result in production of the same number of units in less time, thus reducing the labor costs.

The Available Production Constrained Savings Table analyses the process in terms of time units of 100% efficient operation, i.e. minutes during which the io process is performing as expected over a base table period The base table period is preferably 5 weeks. Once that is done, each problem can be valued in terms of how many of such units it wastes, in addition to how much raw material and labor time it wastes.

As a first step, the number of units of 100% efficient operation (or "optimum process time") available, PCMn, for the process over the BTP and the monetary value of those units, PCM$n, are calculated. The Available Production Constrained Savings Table, stored in database 15, identifies each variant for which additional volume could be sold over the BTP each production constrained variant), the quantity of optimum process time required to produce the additional volume, PCMinsvn, and the value of each minute of that process time, PCMins$v,,. These values will be used in later steps in order to value the portion of the problem relating to the cost of lost production, i.e. the lost profit that could have been generated from the sale of additional units.

Refer to Fig. 20. PCU 1 the quantity of additional volume of a variant v which could be sold over the BTP is calculated as follows. The output of variant v over the BTP, Ovn, and the percentage of units which could potentially be sold if they were made, PC%v expressed as a percentage of current production, are obtained from database 15. PCUn is found by multiplying PC%, by Step Next, PCU$,, the value (total profit) of the additional units of variant v which WO 99/42939 PCT/AU99/00098 27 could be sold, is calculated by multiplying PCUv, by the unit marginal profitability UMPV of variant v. Step S42. The unit marginal profitability, UMP,, calculated at Step S44, is the difference between the unit sales price of a variant, USP,, and the unit marginal manufacturing cost, UMCV, both of which are stored in database PCMinsvn, the optimum process time required to produce the additional variants is then calculated by dividing the quantity of additional variants which could be sold, PCU,,, by the maximum bottleneck speed for the particular variant, MBS, (stored in database 15). Step S46.

Finally, PCMins$vn, the value of each optimum process minute, if used to produce the additional sales volume of variant v, is calculated. This is done by dividing the value of the additional units of variant v, PCU$,, by the optimum process time required to produce those additional variants, PCMinsv,. Step S48.

These steps are repeated for all variants which were produced in the base table period and the Available Production Constrained Savings Table is built. Step The variants are arranged in the table shown in Step S50 in descending order by PCMins$,,, the value of each optimum process minute. The table has four columns, namely variant identification, v, value of optimum process minute for variant v, PCMins$,, and number of optimum process minutes available for producing variant v, PCMinsv,. The fourth column, Remaining minutes, is empty at this stage, but will be used later.

2. Valuing the Excess Crewing Component of a Problem p over a Base Table Period: Refer to Fig. 21. An important step in the valuation of the excess crewing component of a problem is determining XCLLp,, the total number of labor hours due to an excess crewing problem, p with variant v, over the base table period.

This is done by first determining XCLL,,d, the lost labor hours due to excess crewing over a production run and then summing it over the base table period.

XCLL,,d, is determined by finding the difference between the optimum crew size, OCS, and the actual crew size ACSv, and multiplying by the actual processing WO 99/42939 PCT/AU99/00098 28 time of the run, APH,,, for all variants v over the production run. Step S52.

OCSv, was stored in database 15 during the modeling of the process and ACS, and APHvd, the actual processing time of the run were acquired and entered into the database at the end of the production run. Having determined XCLLpv, the total number of labor hours due to an excess crewing problem over the production run, the total excess labor time due to a problem p for a variant over the base table period, XCLLpvn is found by summing XCLLpvsd over all shifts and days in the base table period. Step S54. The total lost labor hours for the whole process XCLLp is then found by summing XCLLpv, for all variants in the process.

Step S56.

The lost labor time due to an excess crewing problem, XCLL$pn,, is valued by multiplying XCLLpn by AULR, the all up labor rate for the process (previously stored in database 15 during the modeling stage). Step S58.

3. Valuation of Downtime, Slow Running and Bottleneck Waste Problems: A typical process has three sources of lost process time downtime when the process stops entirely), slow running when the process runs at rate slower than the optimum rate) and bottleneck waste when product is produced at the speed bottleneck, but must be discarded, thus wasting processing time).

The manner of valuation of the lost process time depends on whether the process is production constrained or sales constrained. A process is production constrained when the company is able to sell more of the product than it can produce. It is sales constrained when the company cannot sell any more than it can produce. If the process is production constrained, then some or all lost process time could have been used to make additional product, had the process been operating at its optimum level. The lost process time can therefore be valued in terms of the marginal profitability of the additional product. This is done by determining the value of a unit of time, assuming the process to be operating at its optimum level. If the process is sales constrained, then lost process time is valued in terms of labor cost savings which would result from improving the WO 99/42939 PCT/AU99/00098 29 process efficiency.

In any case, the lost process time is initially valued by means of a method called the "Lost Production Cost Evaluation Method" also referred to as the "Production Constrained Valuation Method" which is a module of application 13. The Lost Production Cost Evaluation Method values as many of the lost process minutes as possible in terms of marginal profitability and outputs a value of the lost process time. Any remaining time is also output to be valued as wasted labor time.

a. The Lost Production Cost Evaluation Method: The program module which implements the Lost Production Cost Evaluation Method uses as inputs the data in the Production Constrained Savings Table described above, and OPM,,, a quantity of lost optimum process minutes due to problem p. The outputs of the program module are OPM$pn, the maximum value of all or part of the input lost process minutes and OPMR,,, the quantity of lost process minutes which remains unvalued at the end of the algorithm.

Referring to Fig. 22, the basic steps in the Lost Production Cost Evaluation Method are: 1. Copy the contents of the PCMins,, column of the Available Production Constrained Savings Table into a new column called RemMins (i.e.

remaining minutes). Step 2. Initialise the lost optimum process minute value as zero OPM$pn= 0).

Step S62.

3. Locate the variant in the Available Production Constrained Savings Table whose production constrained minute value, PCMins$n, is greatest and whose RemMins value is greater than zero. Step S64. If there is no such variant, then the valuation is complete the variant is sales constrained). The program outputs OPMRp, otherwise, the program continues. Step S66.

WO 99/42939 PCT/AU99/00098 4. For the variant selected in step S64, determine the lesser of the quantity of optimum process minutes to be valued, OPMpn and RemMins. This is called the "usable optimum process minutes," UOPMp, because these minutes are production constrained they can be used to produce more variants which can be sold. Step S68.

Multiply the usable optimum process minutes, UOPMpn, by the production constrained minute value, PCMmins$ and add the product to the lost optimum process minute value, OPM$p,. Step 6. Deduct usable optimum process minutes, UOPMp, from both the values in the input lost optimum process minutes, OPMpn and the RemMins columns. Step S72.

7. If both the optimum process minutes, OPMpn and RemMins are greater than zero, then return to step S64. Steps S74 and S76. Otherwise the evaluation is complete and the lost optimum process minute value, OPM$,, and remaining optimum process minutes, OPMRpn those that have not yet been valued) are output. Step S78.

b. Valuing the Process Downtime Component of a Problem p over the

BTP:

There are two components to the cost of a downtime problem. The first, and most significant, occurs where the lost time could have been utilised to produce more units which could have been sold. If none or only some of the units could be sold, the remaining component of downtime loss is the cost of labor while the process is down. The total downtime is the sum of these two components.

Refer now to Fig. 23. The first step is the determination of how many optimum process hours were lost over the BTP due to process downtime. DT,, the downtime due to a problem p for variant v on a day and shift is retrieved from the database (it was entered at the end of a shift). Step S80. This is summed over the BTP, to give DTn, the downtime for a variant v due to problem p. Step S82.

DTOP,, the number of optimum process hours lost due to downtime from a WO 99/42939 PCT/AU99/00098 31 problem p with variant v over the base table period is found by multiplying DTpv by TPEvn, the true process efficiency for a particular variant over the BTP. Step S84.

True process efficiency is the number of optimum process hours for variant v over the BTP, OPHyn, divided by the actual process hours over the BTP, APH,.

Step S88. APHyn is input at the data input stage. OPHv, is found by dividing the output of the variant over the BTP, by the maximum bottleneck speed, MBS,.

S86.

This process is repeated for all variants. DTOPp,, the total lost optimum process hours due to a downtime problem p is found by summing DTOPpv over all variants. Step S90. These minutes are input to the Lost Production Cost Evaluation Method program module and thus valued. Step S92. See Fig. 22.

The second component of downtime loss is lost labor hours. Lost labor hours are found by summing over the BTP, the labor hours lost in each production run.

The lost labor hours for a production run will vary depending on whether the downtime problem is also an excess crewing problem in that run. If the downtime problem is also an excess crewing problem, then the downtime lost labor hours, DTLLpvi, is the product of the downtime due to problem p, DTpvd, the actual crew size, ACSsd and the true process efficiency, TPEn. Step S94. If the downtime problem is not an excess crew problem, then the downtime lost labor hours, DTLLp.2, is the product of the downtime due to problem p, DTpv,, the optimum crew size, ACSvd and the true process efficiency, TPEvn. Step S96. These values are calculated for each production run, and summed to give DTLLpvn, the total downtime labor loss for variant v over the BTP for a particular problem.

Step S98. DTLL, is then summed for all variants to give DTLLpn, the total downtime lost labor due to problem p. Step S100.

It will be recalled that the Lost Production Cost Evaluation Method program module output a value of downtime optimum process minutes, DTOPM$,, and an amount of time which could not be valued, DTOPMRpn, due to the fact that market conditions dictated that a fixed quantity of each variant could be sold.

Those remaining process minutes are valued as lost labor hours in the following WO 99/42939 PCT/AU99/00098 32 manner: First, the proportion of lost labor hours which remain unvalued is determined at Step S102, by dividing the remaining process minutes, DTOPMRpn by the total lost process time due to downtime problem p, DTOPMpn (previously calculated at Step S90). The proportion of unvalued downtime, DTp,, is then multiplied by the total downtime labor loss due to problem p, DTLLp, and then by the all up labor rate for the process, AULR. Step S104. This gives DTLL$,, the value of the lost labor due to downtime problem p.

The total value of a downtime problem p over the BTP, DT$pn, is the sum of the value of the lost optimum process minutes due to the problem, DTOPM$p, and the value of the lost labor DTLL$,,. Step S106.

c. Valuing the Process Slow Running Component of a Problem p, over the BTP: As in the case of a downtime problem, a problem which causes slow running has two possible cost components: the cost of lost production and the cost of wasted labor.

In order to value the cost of production losses due to slow running, the total amount of optimum process time lost due to the problem during the BTP must be found. For a single production run, the lost optimum process time due to a slow running problem is found by first ascertaining how many production units of variant v were not produced because of the problem.

The proportional process uptime during the production run, is found by summing the total downtime for all problems, DTn (Step S108 in Fig. 23), dividing by the actual processing time in the BTP, APH, and subtracting the result from 1. Step S110, Fig. 23.

The lost optimum process time due to slow running problem p, for variant v, is calculated by first multiplying the proportional process uptime during the production run UT,, by the actual processing time APH The result is multiplied by the difference between the maximum bottleneck speed of the variant, MBS,, and the actual bottleneck speed, ABS of the production run.

WO 99/42939 PCT/AU99/00098 33 The result is converted into lost optimum processing time, SROPMp,, by dividing the result by the maximum bottleneck speed MBS and then multiplying by the true process efficiency, TPEvn. Step S120. See Fig. 24.

SROPMpvsI is then summed for all production runs in which the same slow running problem p occurred over the BTP to give SROPMpn, the total lost optimum process time due to slow running problem p over the BTP. Step S122.

In order to value SROPMpn, it is fed into the Lost Production Cost Evaluation Method program module shown in Fig. 22. Step S124. The resulting value of lost production due to a slow running problem is SROPM$,n output OPM$pn of the Lost Production Cost Evaluation Method program module). If there is any remaining unvalued lost optimum process time SROPMRp, output OPMRp, of the Lost Production Cost Evaluation Method program module is greater than zero), it is valued as lost labor time, in a manner which will now be described.

The proportion of lost process time which has not been valued, SRPn,, is determined by dividing SROPMRpn by SROPMpn, the total lost optimum process time due to problem p over the BTP. Step S126. Next, the total quantity of lost labor time attributed to the slow running problem p is calculated. For each production run, the quantity of lost optimum process hours is SROPMpvd, which was calculated at Step S120. This is converted into lost labor time SRLLpvsdi, by multiplying it by the actual crew size, ACS, for the variant being produced if the slow running problem is not the same as the excess crew problem on that day and shift. Step S128. If the slow running problem is the same as the excess crew problem on that day and shift, then lost labor time, SRLLpsd2, is SROPMpv, multiplied by the optimum crew size, OCS,. Step S130. This avoids double counting of lost labor time. Steps S120, S128 and S130 are repeated for each production run in the BTP where the slow running problem occurs, and the resulting values of SRLLpvd are summed to give SRLLpn, the total lost labor time due to slow running problem p. Step S132.

The dollar value of lost labor time due to slow running problem p is the product of SRPpn, the proportion of optimum process hours which were not valued by the Lost Production Cost Evaluation Method, and SRLLpn, the total lost labor time WO 99/42939 PCT/AU99/00098 34 due to the slow running problem, and AULR, the all up labor rate. This value is called SRLL$p,. Step S134.

The total dollar value of the slow running component, SR$p,, is determined by adding the lost production component SROPM$pn and the lost labor component SRLL$p,. Step S136.

d. Calculation of the Bottleneck Waste Component of Problem p over the BTP: Bottleneck waste is product which is produced at or after the speed bottleneck, but which must be scrapped. As in the case of downtime and slow running problems, the value of bottleneck waste is made up of two components, lost production and lost labor.

Refer to Fig. 25. Lost production is valued as follows: BWOPMpvd, the amount of optimum process time lost due to a bottleneck waste problem p, in a particular production run is calculated by dividing BWUpv,d, the number of production units wasted, by MBS,, the maximum bottleneck speed for the variant and multiplying by true process efficiency, TPE,. S140. BWUvsd is calculated by multiplying the quantity of units of the variant rejected at or after the bottleneck (WasteQtyvsd") ascertained at the data input stage by the waste reporting unit to production unit factor ("WRUtoPUp,") input at the modeling stage. BWOPMpsd is summed for all production runs in the BTP in which the bottleneck waste problem p occurred, giving BWOPMpn, the total amount of optimum process time lost due to bottleneck waste problem p. Step S142.

BWOPMpn is then fed into the Lost Production Cost Evaluation Method program module (also referred to as the "Production Constrained Valuation Box"), which values as much of the lost optimum process time as possible, outputting BWOPM$pn. Step S144. The other output, BWOPMRp,, the remaining lost process time, is valued as lost labor time.

First, the proportion of lost optimum process time which has not been valued is calculated by dividing BWOPMRpn by BWOPMpn, the total lost optimum process PCT/AU99/00098 WO 99/42939 time caused by the bottleneck waste problem p, giving BWPpn. Step S146. Next, the total lost labor hours in a single production run due to bottleneck waste problem p is calculated. BWOPMpv,, the amount of optimum process time lost due to a bottleneck waste problem p, in a particular production run, is converted to lost process hours, BWLLpvs,, by multiplying BWOPMpv, by the optimum crew size OCS,, if the bottleneck waste problem is the same as the excess crew problem, see Step S148. BWOPMpvd is multiplied by the actual crew size, ACSpv,, if the bottleneck waste problem is not the same as the excess crew problem, giving BWLLp, 2 Step S150. BWLLpvi, and BWLLpd2 are the total amount of lost labor time due to bottleneck waste problem p, in a particular production run or shift s and day d. BWOPMpvd can also be calculated by dividing BWUpvd by MBS,.

BWLLpvsdi or BWLLpvs 2 are summed over all production runs in the BTP, giving the total lost labor time due to bottleneck waste problem p, BWLL,,. Step S152.

This is valued by multiplying it by BWPpn, the proportion of lost labor time due to bottleneck waste problem p which was unvalued (see Step S146) and AULR, the all up labor rate, resulting in BWLL$p,. Step S154. The total value of the bottleneck waste problem p over the BTP is calculated by adding the lost optimum production time value BWOPM$pn and BWLL$,n the lost labor value, resulting in BW$pn. Step S156.

4. Valuing the Wasted Raw Material Component of Problem p over the

BTP:

Refer to Fig. 26. For each type of raw material wasted in the BTP due to problem p, the total quantity of raw material wasted over the BTP, WasteQtypvd (input at the data input stage), is multiplied by the waste reporting unit to raw waste conversion factor (WRUtoRU,,) to give a quantity of wasted raw material, S160. RWQtypnr is multiplied'by RW$pn, (input at the modeling stage), the dollar value of a single unit of the material, to give the value of that type of raw material wasted. Step S162. This is repeated for all types of raw materials used and then summed to give RW$pn, the total value of raw material wasted due to problem p in the BTP. Step S164.

WO 99/42939 PCT/AU9900098 36 Summing the Total Value of Problem P over the BTP: All components of the cost of problem p have now been determined over the BTP. The total value of the problem is found by adding all the components, i.e.

values of excess crew, XCLL$p,, downtime DT$pn, slow running, SR$,p, bottleneck waste, BW$pn, and raw materials, giving PROB$p,, the total value of the problem p. Step S170 in Fig. 27.

6. Extrapolating the Cost of Problem p over a Year: PROB$pn is now extrapolated from the BTP to an entire year by multiplying it by 52 weeks and dividing by the number of weeks in the BTP, typically five. The result is the total value of problem p over an entire year, PROB$p. Step S172 in Fig. 27. PROB$p is saved in a table in the database. Step S174.

7. Repeating Steps 1-8 for All Problems in the Process over the BTP: The steps which have just been described are repeated for all of the problems in the process. Steps S176 and S178.

8. Sorting the Problems by Total Value to generate the Problem Priority Table: The results which were stored in the table are now sorted such that the problem which has the highest value is at the top of the table and remaining problems are stored in decreasing order of value. Step S180. This is the "Problem Priority Table." The Problem Priority Table is then printed out. Step S182. The plant management can then decide which of the problems to work on and allocate resources in accordance with the values of the problems. Step S184.

While the invention has been described with reference to its preferred embodiment, it will be appreciated by those of ordinary skill in the art that various modifications can be made to the preferred embodiment without departing from the spirit of the invention or limiting its scope.

\\server\e\docs\patents\pct\8412.doc 37 INDUSTRIAL APPLICABILITY It will be appreciated by one skilled in the art that the method and computer system of the invention have important application in maximising efficiency of processes, especially manufacturing processes.

When construing the specification, the word "comprise" and its derivatives are to be interpreted as having an inclusive meaning unless the context requires otherwise.

*4 O00O

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Claims (19)

1. A method of controlling a process for producing product, the process being designed to run at an optimum performance, the method comprising the steps of: identifying a problem occuring at some point in the process, which problem causes the process to run at less than the optimum performance; identifying a bottleneck in the process, such that the bottleneck dictates the maximum speed at which the process runs; determining the impact of the problem on the performance of the process at the bottleneck; calculating a financial value of the problem taking into account the impact of the problem on the performance of the process at the bottleneck; 15 prioritising the problem based on the financial value of the problem; and adjusting the parameters of the process on the basis of the priority of the problem determined by the prioritising step.

2. The method of claim 1, further comprising the steps of determining an available optimum processing time; and determining how much of the available optimum processing time is lost due to the problem;

3. The method of claim 2 wherein the step of determining an available optimum processing time includes determining how much- processing time would be available to the process if the process were to run at the optimum performance. \serveedocs=patentspcft8412.doc 39

4. The method of claim 3 which includes the step of determining how much of the product could be sold if made in the processing time which would be available to the process if the process were to run at the optimum performance.

5. The method of any one of claims 2 to 4 wherein the step of calculating the financial value of the problem comprises the step of valuing the problem based on how much processing time the process loses due to the problem.

6. The method of claim 5 wherein the step of calculating the financial value of the problem comprises the step of valuing the processing time the a.. process loses due to the problem based on marginal profitability of all e products produced by the process.

7. The method of claim 5 wherein the step of calculating the financial value e of the problem comprises the step of valuing the processing time the process loses due to the problem based on labour cost.

8. The method of any one of claims 2 to 4 wherein the step of calculating the .financial value of the problem comprises the step of determining whether the process is production constrained.

9. The method of any one of claims 2 to 4 wherein the step of calculating the financial value of the problem comprises the step of determining whether the process is sales constrained. The method of claim 8 wherein the extent to the which the process is production constrained is determined and, to that extent, the processing time the process loses due to the problem based on marginal profitability of all the products produced by the process is valued.

11. The method of claim 6 or 10 further comprising the step of, if any processing time the process loses remains unvalued based on marginal profitability of the product, then valuing the remaining processing time 7-z based on labour cost. \XserverNedocs\patentspc412.doc

12. The method of any one of claims 8 to 10 wherein the extent to which the process is sales constrained is determined and, to that extent, the processing time the process loses due to the problem based on labour cost is valued.

13. The method of claim 5, wherein the step of determining how much of the available optimum processing time is lost due to the problem comprises the step of determining how much time the process loses due to the problem causing the process to run slower than expected.

14. The method of claim 5, wherein the step of determining how much of the available optimum processing time is lost due to the problem comprises S• the step of determining how much time the process loses due to the problem causing the process to stop running. The method of claim 5, wherein the step of the step of identifying a 6" abottleneck in the process is included in the step of determining how much of the available optimum processing time is lost due to the problem, wherein the method further includes the step of determining how much S: time the process loses due to the problem causing product to be scrapped at or after the bottleneck.

16. The method of claim 1 or 2, wherein the step of calculating a financial value of the problem comprises the step of valuing the problem by taking into account how much additional crew operates the process due to the problem.

17. The method of claim 1, 2 or 16, wherein the step of calculating a financial value of the problem comprises the step of valuing the problem by taking into account how much raw material the process uses due to the problem.

18. The method of claim 2 or any one of claims 3 to 17 as dependent from claim 2, wherein the step of determining the impact of the problem on performance of the process at the bottleneck comprises the step of AL/ determining the location of the problem relative to the bottleneck. \servere\docs\patents\pct\8412.doc

41- 19. The method of claim 18 wherein the step of determining location of the problem comprises the step of determining whether the problem lies at, after or before the bottleneck. The method of claim 19 wherein the step of determining how much processing time the process loses due to the problem comprises the step of determining how much processing time the process loses due to the problem causing product to be scrapped at or after the bottleneck. 21. The method of any one of claims 18 to 20, wherein the step of determining how much processing time the process loses due to the problem comprises the step of determining how much processing time the process see loses due to the problem causing the bottleneck to stop running. 0* i 22. The method of any one of claims 18 to 21, wherein the step of determining how much processing time the process loses due to the problem comprises the step of determining how much processing time the process loses due to the problem causing the bottleneck to run slower than expected. OV' 23. The method of any one of claims 18 to 21, wherein the step of determining how much processing time the process loses due to the problem :i comprises the steps of: *00o00 determining a slow running time for the problem indicative of how much processing time the process loses due to the problem causing the bottleneck to run at a speed slower than maximum speed; determining a downtime for the problem indicative of how much processing time the process loses due to the problem causing the bottleneck to stop running; and determining a bottleneck waste time for the problem indicative of how much processing time the process loses due to the problem causing product to be scrapped at or after the bottleneck. \Xsetveradocs\patentspct412.doc

42. 24. The method of claim 23, wherein the steps of calculating a financial value of the problem comprises the step of determining financial values of the slow running time, downtime and bottleneck waste time for the problem. The method of claim 2 or any one of claims 3 to 24 as dependent on claim 2, wherein a plurality of problems is identified in the process, which problems cause the process to run at less than the optimum performance, how much of the available optimum processing time is lost due to each problem is determined, the financial value for each problem is calculated and the plurality of problems is prioritised based on the financial value of each problem of the plurality of problems. 26. The method of any one of the preceding claims, further including the step of deciding whether to correct the or each problem based on the financial value of the or each problem. i 27. The method of any one of the preceding claims, which further includes the S. 15 step of allocating resources to the or each problem based on the financial value of the or each problem. 28. A method of controlling a process for producing products substantially as .00 ~herein described with reference to the accompanying drawings. S' 29. A method of controlling a process for producing product, the process being designed to run at an optimum performance, the method comprising the steps of: identifying a problem occurring at some point in the process, which problem causes the process to run at less than the optimum performance; identifying a bottleneck in the process, such that the bottleneck dictates the maximum speed at which the process-runs; determining a slow running time for the problem indicative of how Smuch processing time the process loses due to the problem \'serveIdos=atentspct'4 t 12.doc

43- causing the bottleneck to run at a speed slower than an optimum speed; determining a downtime for the problem indicative of how much processing time the process loses due to the problem causing the bottleneck to stop running; determining a bottleneck waste time for the problem indicative of how much processing time the process loses due to the problem causing product to be scrapped at or after the bottleneck; determining financial values of the slow running time, the downtime and the bottleneck waste time for the problem; determining how much the problem reduces profitability of the ooeoe process based on the financial values of the slow running time, the downtime and the bottleneck waste time for the problem; and .elO.i prioritising the problem based on how much the problem reduces profitability of the process; and adjusting the parameters of the process on the basis of the priority of the problem determined by the prioritising step. 30. The method of claim 29, further comprising the step of determining how much additional crew operates the process due to the problem, wherein 20 the step of determining the financial values comprises determining the S"financial value of how much additional crew operates the process due to the problem, and the step of determining how much the problem reduces profitability is also based on the financial values of how much additional crew operates the process due to the problem. 31. The method of claims 29 or 30 further comprising the steps of determining how much raw material the process uses due to the problem, wherein the step of determining the financial values comprises determining comprises IASR- N'determining the financial value of how much raw material the process uses o:docs\patentspc8412doc 44 due to the problem, and the step of determing how much the problem reduces profitability is also based on the financial values of how much raw material the process uses due to the problem. 32. A computer system when programmed to perform the method claimed in any one of claims 1 to 31. 33. The computer system of claim 32 which includes: means for inputting modeling data relating to the process, thereby building a computer model of the process; means for inputting performance data obtained by monitoring performance of the process; means for determining a financial value for the problem or for a problem of the plurality of problems, including: means for determining an available optimum processing time, comprising means for determining how much processing time would be available to the process to produce the products if the process were run at the optimum e:l performance; means for determining an amount of the available optimum processing time lost due to the problem; means for valuing the problem based on the amount of the available optimum processing time lost due to the problem; and means for outputting the financial value of the problem or for each of the plurality of problems. 34. The computer system of claim 33 which further includes means for R A, ,identifying a bottleneck in the process such that the bottleneck limits a maximum speed at which the process runs and wherein the means for \\servere\docs\patents\pct8412.doc determining financial value of the problem or a problem of the plurality of problems comprises: means for determining impact of a problem on performance of the process at the bottleneck; means for valuing the problem based on the impact of a problem on performance of the process at the bottleneck. The computer system of claim 32 which further includes means for performing the step or steps of the method of any one of claims 5 to 27 or 29 to 31. 36. A computer system substantially as herein described with reference to the accompanying drawings. S...i e