REDESIGN AND CONSTRUCTION OF MOBILE ELECTRICAL UNITS PRODUCTION LINE

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In 2015, the factory received an order with high a value of revenue, and an aggressive plan of delivery. The order couldn’t be refused for to its high positive impact on the business performance.

The factory capacity was far away from the delivery target dates, and there was a need to find a quick solution to manufacture and deliver the project deliveries on time.

Noting that the mobile electrical units used to be built in an open area, subjected directly to the sun light with a high temperature degree, and it was totally prohibited by the HSE department to work under these tough weather conditions.

Two major solutions were proposed, either to lease an external factory with wider enclosed area and build the Mobile electrical units there, or constructing a new hanger in the opened areas beside the factory.

The management department was not encouraged to lease an external factory, and they preferred to go to the second solution.

In fact there was no enough time for heavy construction, and the project team decided to build two hangers made from Steel structure and covered by PVC. This idea was well appreciated and acknowledged by the management department, due to its shorter time in fabrication and installation.

It took around one month, and the production line was ready for work.

In addition to the implementation of the takt time concepts and balancing the production activities times, the factory could dramatically increase its capacity and deliver the products on time.

REDESIGN AND CONSTRUCTION OF MEDIUM VOLTAGE SWITCHGEAR PANELS PRODUCTION LINE

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When the annual demand on the switchgear panels increased and exceeded the factory capacity, there was a vital need to secure the factory production orders from being delayed, and to avoid penalty payments.

The management department had also remarked the continuous increase in WIP and inventory, which impacted the factory cash flow, and after studying the current situation, it was decided to redesign the production line with a complete re-engineering for the production and materials planning processes.

Tough targets were set by the management department and mainly represented in:

  • Increasing the factory capacity by 50%
  • 25% reduction in operations expenses
  • Reduction 50% in WIP
  • 25% reduction in the cycle time of manufacturing and assembling operations
  • Faster delivery to customer, On Time Delivery not less than 90%
  • Higher quality efficiency, monitored through the FPY and Sigma Score.
  • Higher level of customer satisfaction, monitored through the Net Promoter Score NPS.

The project took three months in design phase, in where the design drawings for the production line with the modernized solutions had been approved and released for the construction phase which took almost the same period of time.

In addition to the training program which was set for the whole team in the factory, the project was successfully accomplished and achieved the required business targets.

RE-ENGINEERING THE OPERATIONS PLANNING

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In 2017, the Automation products factory was struggling with the high inventory level in the warehouses and WIP in the production lines, which was generating a high value of Cost of poor quality.

The management department was looking to reshape the operations management with the redesign of the production line, and specifically requested to enhance the implementation of SAP Production planning Module.

The project took around 6 months to redesign the production line with the creation of continuous flow production work centers, and the full control of the operations through the SAP Production Planning and Materials Master modules.

The major changes resulted in more control on the operations expenses, with a huge reduction in the under absorption costs. In addition to the 25% reduction in the utilization of factory area, due to the optimized design of the new production line.

Moreover, there was a remarkable reduction in the cycle time of the assembly operations with about 30% reduction in the inventory and WIP.

In addition to all of that, a higher improvement in the quality efficiency, was monitored through the Sigma Score from 1.1 to 2.6, which led in increasing the level of customer satisfaction.