Production optimisation Program

Introduction

It is almost impossible to survive in the highly competitive pellet processing business without competent - well trained personnel and stringent process and maintenance control and reporting systems. Factory owners often watch in despair as low production figures and maintenance high costs slowly drown their business, not knowing what the cause is and/or how to fix the problem.

That is when they call Andre Eksteen from Biotech Emporium the production "fixer," the person factory owners call when their production line needs to implement changes that include staff retraining and the implementation of new up to date management and maintenance systems that will improve production, lower maintenance costs, and ultimately turn a money pit into a money-making machine. With more than 30 years of experience in the pelleting industry, Andre Eksteen says he knows the minute he walks into a factory what needs to be fixed.

Biotech Emporium have implemented our Production optimisation Program in many factories across Africa with great results. Some factories that were on the brink of closing have been turned around and started to make a profit that eventually resulted in the growth of these companies.

For example: When Biotech Emporium was contracted to implement our Production optimisation Program at a chicken manure pelleting factory there were three large pellet mills that delivered a total of 900 tons per month. This was a case of everything that could be done wrong, was done wrong. On our first audit it was found that the plant had an online factor of only 16%! The biggest and most expensive problem that had to be fixed was the plant layout as it was not engineered properly and thus hampered production severely while also causing low personnel morale.

This was an extreme case that took two years to complete, but in the end this plant produced 5000 tons per month with an online factor of 79%. The nett loss of -R869’345.66 for the year before Biotech Emporium got involved was turned into a net profit of +R3’459,398.00 by the end of the second book year.

How does the Production optimisation Program work?

Our Production optimisation Program is designed to put you back into control of your factory through the implementation of a series of control systems designed to give you a deep understanding of what every person and machine in your plant is doing. When production goes down or costs rise this control system will show you exactly what, where, who and how this problem arose, allowing you to act immediately and fix any potential problems before they real problems that will influence your bottom-line.

The initial implementation of the program is a multi-step procedure best explained in the below 5 step tabbed info box:

 

 

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The first and most important step of the process is the signing of the contract as this will formalise the agreement between Biotech Emporium and your Business.

A non-disclosure section will be included in the contract to protect both parties from the potential risks of information leaks. Biotech Emporium will for instance need access to personnel data to enable us to develop a balanced incentive scheme. We will also need information about recipe formulations costs, and such. During the process, your company will also get information from Biotech Emporium that is of high intellectual value. It is therefore important that all this mutual information should be protected within the contract.

The contract will also give Biotech Emporium some management powers within your company to allow us to accomplish our set goal of optimizing your processes.

Lastly, the contract provides certain goals that Biotech Emporium must meet, thereby ensuring that your company gets the value promised by our Production optimisation Program.

The cost of this contract that will be drawn up by Rauch Gertenbach Attorneys in Mosselbay is R2500.00 and will be payable upon signing of the contract.

Biotech Emporium will conduct an audit of your processing plant and the personnel working within that plant as the first step towards the development of the management procedures and software.

During process audit we will look at the performance of each machine within the process. We will then draw up a flow diagram identifying each piece of equipment and label each machine for easy identification within the software.

We will also look al your processing procedures. For example, are you running one constant mixture, or do you chop and change between mixtures? Do the machines perform better on one mixture than the others and what are the differences?

This will then start to build a clearer picture of your process.

All along this process we will constantly monitor your personnel and how they interact with the process. After completing the process audit, we will take a closer look at each person witing each shift, his duties, and his pay scale.

With all this data we will then draw up a master plan that includes suggestions to changes within the process, changes to the way you run your process and shift management changes.

A production incentive scheme will be drawn up that if accepted by management, will be implemented after the implementation of the Production optimisation Program is completed. This incentive scheme is highly successful in boosting personnel morale as well as production. In all the factories where we implemented this, we saw an immediate increase in morale and production and we also noted how dead wood gets rejected by the team as they are dragging down the team’s incentive.

The cost of the audit is R44500.00 as this is a very labour-intensive process requiring many man hours.

The production management program is a program in which each production eventuality is recorded and evaluated. The best way to explain this is by using an example.

Night shift takes over at 18:00. The new shift boss signs in and when he starts the plant, he records the starting hours as shown on the main feed sensor. The plant runs until 01:20AM when ‘n knock is detected in the pellet press. He records the time, the main feed hours, the reason for stopping the plant.

The problem is fixed by 02:55AM and the plant is restarted. Again, he records the time and the main feed reading. He will be required to enter a cause and the remedy for the problem that caused the downtime. At 05:00 he shuts the plant down, records the time and the main feed reading. He now also records the total production for his shift. The program now calculates his average production per hour, his online factor and if he made his targets or not.

Management will have access to all the information entered as well as reports that will make it easy to see immediately how each shift performed and where problem arias are that require further investigation.

The program will also highlight problems within shifts. For example, if shift 1 has a lower uptime or production than shift 2 it will be easy to identify. Having both uptime and production figures will show if the shift boss is pushing the machines too hard, causing breakdowns or if he is running the machines under capacity.

The cost of this step is R39’000.00.

The most critical department in any factory is the maintenance department. A plant that is being maintained on a reactive maintenance strategy will typically suffer from an online factor lower than 55%. Unfortunately, this is the case with 70% of all factories being operated in Africa.

For the elite 30% who use either preventative (25%) and predictive (5%) maintenance the online figures are between 75% up to 95% in the case of predictive maintenance.

Look under the hood of any organization, and the primary goal of its preventive maintenance program is the same:

Reduce Asset Deterioration → Reduce Downtime → Reduce Costs.

Preventive Maintenance (PM) is planned maintenance that increases longevity of company assets, equipment, and infrastructure. Also known as preventative maintenance, PM includes adjustments, cleaning, lubrication, repairs, and replacements. Put simply, any kind of maintenance that isn’t the normal reaction of “Oh crap”, when (or how) did that happen?” is preventive maintenance.

There will be some distinct roles within this program that needs to be explained.

Biotech Emporium will develop the overall vision and strategy of the maintenance department. During our contractual period Biotech Emporium will work closely with the maintenance manager and factory manager to set goals and objectives for the entire department as well as individual maintenance workers. We will create the process flow for assigning, completing, and reporting maintenance tasks and manage it for as long as the contract is in place.

We will work with your maintenance supervisor who manage the on-site maintenance technicians. Depending on your companies’ size, one maintenance manager will have to be appointed along with one maintenance technician for each shift and an assistant for each.

Our mobile app brings real time information to your teams on the ground and allows for accurate-time stamped reporting.

Our app helps you track your reactive maintenance, preventive maintenance, and control the daily operations of your business such as safety inspections, quality inspections, and operating checklists - all with a digital audit trail.

Reduce non-productive time by empowering your frontline teams with job and process information on the go through our mobile app.

Employees need to communicate, collaborate, and keep management in the loop to ensure input and corrective actions can be provided when it matters the most.

Connecting production and maintenance teams empowers operational leaders with the real-time data needed to measure and continuously improve productivity.

Our digital audit trail streamlines complex regulatory procedures while providing an unprecedented level of centralized transparency across your organization.

You will receive the following on completion of this step:

Two industrial IP68 rated tablets, preloaded with the app. One tablet will be used by the maintenance manager and the other by the maintenance person within each production shift.

A third desktop license can be purchased separately for management should that be required.

All the machines (assets) within your plant will be listed within the app complete with maintenance schedules and procedures for each machine.

The system will build a database on each machine over time which includes all maintenance costs, causes of break downs and job cards.

The cost of this step can be broken down as follow:

2        x        Industrial IP 68 Tablets @ R15000.00 each

1        x        Maintenance program development @ R28’900.00

2        x        4G IP66 Camara installations @ R6500.00 each

During this final stage we will activate and the Production optimisation Program and do the necessary personnel training.

It is important that the site should have good cellular coverage or else it must have a good WIFI signal. This will be verified by us during the audit in the second step. The production software runs on Microsoft Excel and the maintenance app also requires Microsoft Excel for management report exporting.

The database will be cloud based to allow any registered user to access the data he is privy to from any device with a stable internet connection. Being cloud based the data is also securely stored off site, providing greater security.

The cost of this is R30’000.00

Monthly subscription to Production optimisation Program

With the Production optimisation Program now fully functional it is time for the real work to begin. As mentioned earlier Biotech Emporium will take on the roll as maintenance director for the duration of the contract. This means that we will be working to optimise all the systems to reach the targeted online factor of the factory.

The data collected by the Production optimisation Program will be evaluated continuously by Biotech Emporium and at the end of each month we will discuss the data any changes that have to be made during a meting with your management team, either on site or via Zoom.

The minimum subscription period for our Production optimisation Program is 12 months and the contract can be cancelled or renewed annually.

The monthly cost of this program can be broken down as follow:

Biotech Emporium Management fee:            R17’500.00

Software license fee                                     R   1’017.32

Summary

Do not wait until your factory, an asset or piece of equipment fails. Take the power of knowledge and control back into your hands with Biotech Emporium’s Production Success Program.

  1. Prevent asset failure by servicing it before it breaks and track production and scheduled maintenance all in one easy-to-use system.
  2. Reduce non-productive time by empowering your production and maintenance teams with job and process information on the go through our mobile app.
  3. Minimize your expenses, optimize your production, and realise a minimum profit increase of 25%
  4. Knowing what to do and how to do it has never been easier.

Make use of our time and trail proven Production Success Program and unlock the full potential your factory.

Cost breakdown ex VAT:

Payment options:

Payment option 1:

Full payment up front + Monthly subscription:

If you choose payment option 1 you will pay the R187’900.00 less 10% plus VAT on signing of the contract.
One month after that the first subscription amount or R20’551.96 + VAT will be payable.

 

Payment option 2:

Deposit up front + 24 monthly installments (0% Interest) + Monthly the subscription:

  1. A deposit is required the date of signing the contract: R38’000.00 + VAT
  2. The balance of R149’900.00 will then be paid off in 24 instalments of R6246.00 per month.
    • The first installment will be due one month after the signing of the contract: R 6’246.00 + VAT
  1. One month after that the first subscription amount or R20’551.96 + VAT will be payable.

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