Date:

October 11, 2015

To: James M.

Chief Executive Officer

Green Valley Society

From: Mark Gray, Production Facilities Manager

Subject: Research findings and associated recommendations to alleviate the
production/processing bottleneck at GVS.


Attached is the report Alleviating the Bottleneck in Processing at Green Valley Society: A
Recommendation Report. We have successfully completed the proposed tasks outlined in
the approved proposal that was submitted on October 4, 2015: Gain knowledge of
potential drivers that create backups in manufacturing and processing industries,
evaluation of Timilsina study on bottleneck in manufacturing units, review Biotrackthc
website, request information on updates to software program and interview processing
managers to identify any issues they have concerns with.

To carry out these tasks we performed primary and secondary research. We studied the
Timilsina case study, reviewed Biotrackthc information, interviewed processing managers
and observed the work flow in the processing facility. After completing the research we
analyzed the data and presented it in the following report.

The findings from our research and observations revealed two particular areas that are of
concern. People constraints, specifically, finding reliable and trustworthy employees. This
is a common cause of bottleneck issues many companies face. Process constraints, as
production increased substantially the processing facility failed to advance in time with the
influx of material. Management identified not having enough storage, causing a lot of
unnecessary shuffling and lack of manpower as critical areas of their concern.

Our recommendations to address this issue include an expansion to the drying room,
staggering managers hours to oversee processing operations and recruit trustworthy,
reliable talent to the processing facility.

We would like to thank you for allowing us to conduct this study and greatly appreciate
your participation. We look forward to implementing these recommendations and
measuring the results down the road. If you have any questions or additional comments
please let us know.

Alleviating the Bottleneck in Processing at
Green Valley Society:
A Recommendation Report

Prepared for: James M.

Owner


Green Valley Society

Prepared by: Mark G., Production Facilities Manager

October 11, 2015

Tier 3 I-502 Producer/Processor

Abstract

Alleviating the Bottleneck in Processing at
Green Valley Society:
A Recommendation Report

Prepared by: Mark Gray, Production Facilities Manager

On October 6, 2015, James M., owner of Green Valley Society (GVS) approved a proposal by
Mark Gray (Production Facilities Manager), to research the causes of a processing
bottleneck with the intention of finding and implementing possible solutions. Any activity
which delays the performance of a system and reduces overall efficiency of the process is
known as a bottleneck. The research began by studying the Timilsina case study on
common bottlenecks in manufacturing units to better understand what to look for when
evaluating the situation at GVS. Then we reviewed Biotrackthc and surveyed processing
managers while observing the flow of product through the processing structure.
Pinpointing people and process constraints as primary factors of the bottleneck lead us to
recommend site expansion and the implementation of a recruiting and hiring process.

Keywords: bottleneck, production, processing, facilities, I502, compliance

Table of Contents

Executive Summary

Introduction

Research Methods

Task 1. Examine Timilsina Case Study

Task 2. Review Biotrackthc Information

Task 3. Interview GVS Managers

Task 4. Observing Work Flow (Processing)

Results

Task 1. Examine Timilsina Case Study

Task 2. Review Biotrackthc Information

Task 3. Interview GVS Managers

Task 4. Observing Work Flow (Processing)

Conclusions/Recommendations

References

Executive Summary

To identify the causes of the processing bottleneck at Green Valley Society, owner James M.
approved the proposal to study common factors of manufacturing bottlenecks, evaluate the
processing facility and interview management regarding their observations and present
our conclusions and recommendations.

As outlined in the October 4, 2015 proposal: the tasks completed as part of this study
included research of Timilsina case study, reviewing state compliance software
(Biotrackthc) usage, interviewing management and observing the functions in the
processing facility.

The main findings of this research revealed the primary causes of the bottleneck are
related to people and process constraints. We have concluded that the current processing
space has been pressed over capacity with the recent spike in production also resulting in a
mild problem of understaffing and/or staff scheduling. We can be sure that an expansion
to the processing structure would alleviate part of the bottleneck, however, without proper
staffing the bottleneck will remain.

Two courses of action are recommended in an effort to reduce or eliminate the bottleneck:
1. Expansion of processing structure. (Refer to business plan submitted to WSLCB for
compliance related question i.e. camera requirements, room additions, preapproved permitting)
2. Establish a method of hiring part-time/seasonal workers.

Introduction

With a substantial increase in production of pre-converted marijuana, Green Valley Society
(GVS) has recently experienced a timing issue while converting marijuana to usable
product ready for sale. As defined by the WSLCB; Useable marijuana means dried
marijuana flowers. (I-502, pg. 9). As we are acutely aware, Licensees are required to
submit specific information and reports to the WSLCB. To ensure compliance with
Washington State regulations, the traceability system provides functionality to assist with
the analysis of information, auditing operations, and enforcement by the WSLCB. The
steps involved compliance and tracking the increased flow of product has become a point
of concern for GVS.

Identifying and eliminating the bottleneck is the primary objective of this report. To
achieve this, we performed internal observations of the processing facility, interviewed
employees on effectiveness of procedures and seek ideas to help improve the process.
External research included reaching out to BioTrackTHC for information regarding the
compliance software and reviewing factors that create bottlenecks in other manufacturing
and production/processing environments. Sources used to acquire information are
chronicled attached reference page and can also be found in the annotated bibliography
from the proposal.

Having identified people and process constraints from research has allowed us to
recommend two potential solutions. The recommendation to expand the processing
facility was made from observations of increased inflow of product and managerial
feedback highlighting running out of space as an increasing concern. With the expansion
comes a need to staff the larger facility, which compounds the other issue identified from
the research. The increase of material has resulted in the current facility facing an
understaffing issue. The recommendation to implement hiring standards and begin
building a trustworthy and reliable workforce stems from observations, interviews and
external research.

The following sections will further detail the research methods, results, conclusions and
final recommendations of: Alleviating the Bottleneck in Processing at Green Valley
Society: A Recommendation Report

Research Methods

Upon approval, research began by identifying useful resources relevant to bottlenecks,
state regulations and internal processes. The following four tasks were established as
priorities:

Task 1. Examine Timilsina Case Study
Binod Timilsinas report provides a thorough assessment of bottleneck issues in a
production facility. Examining various reasons that create bottlenecks, from people,
material and equipment related bottlenecks to management, environmental and process
constraints, Timilsina is then able to make recommendations to improve areas of concern.
While the study was done on refractory material plant, lessons can be taken in the way
problems were identified, including fishbone diagrams, failure mode and effect analysis
(FMEA), theory of constraints (TOC) and the five why principle.

Task 2. Review Biotrackthc Information
Biotrackthc is the compliance software that is used for traceability, inventory and reporting
information to the WSLCB. This site provides information on every aspect of the
traceability system from setting up training for new employees to submitting required
reports to government entities regarding seed-to-sale compliance.

This resource is extremely valuable as it contains state specific regulations that must be
followed and how to follow those regulations while navigating Biotrackthc software.
Support is available through this site to address technical issues and to contact service
representatives for questions that face users in this new industry.

Task 3. Interview GVS Managers
Interviewing managers to get feedback on what types of issues they noticed that could
cause the bottleneck was a useful component of this research. Giving them the opportunity
to be involved in the process was helpful very to this study. Comparing management

feedback to sections of the Timilsina case study allowed us to better identify the primary
causes of the bottleneck. By using a combination of outside resources and internal
feedback we were able narrow the focus of the study quickly and eliminate factors that
were not relevant to our situation.

Task 4. Observing Work Flow (Processing)
With basic observations of the processing structure and watching how the material moves
through the required steps, we were better able to understand and actually visually see the
reasons behind the bottleneck. The influx of pre-processed material put a strain on the
capacity and manpower of the existing structure. We noticed many instances where bins
and tubs had to be moved multiple times to maximize storage. These extra steps day in and
day out create an inefficiency that takes time from other important processing tasks (i.e.
packaging, labeling, cleaning), which then become inefficient themselves.

Results

This section is a compilation of the results from the aforementioned research. The most
important information and relevant findings are presented for each task.

Task 1. Examine Timilsina Case Study

Guided by this case study we were able to plan our study and gain valuable information to
help us reach a recommendation for solutions to our bottleneck. Bottleneck is the main
reason for slowdown of the production in a manufacturing unit. It has to be identified,
analyzed and needs to be resolved on the basis of facts. Once the bottleneck is identified
correctly and efficiently; It helps to reduce production cost increasing overall efficiency of
the system (Timilsina pg. 13). Once the problem was defined we found the Theory of
Constraints (TOC) to be the most useful tool to identify weaknesses in the processing
facility. TOC focuses on those weak places where improvement is necessary. Theory of
constraints follows five steps:
Identify the constraints
Exploit the constraints
Elevate the constraints
Repeat the cycle
Upon applying this information, we were able to clearly identify people and process
constraints as major contributors while eliminating factors like environmental, equipment
and material constraints.

Task 2. Review Biotrackthc Information
Reviewing the use of the compliance software was not as fruitful as expected. We verified
that the most recent updates to the software were in use throughout the entire facility and
compliance related issues were not identified as major contributors to the bottleneck. It
should be noted that there were times when the software seemed to run slower than usual,
but over a two-week evaluation that specific issue was eliminated as a factor. While we
may have thought Biotrackthc and the way we used the compliance system could have
been and issue, we a happy to report that this software is actually a key component to

helping us alleviate the bottleneck. It allows us to track production times, harvest

schedules and times associated with the transfer of product, resulting in valuable
information to aid in future planning.

Task 3. Interview GVS Managers
At the beginning of this study we reached out to the managers of the processing facility
seeking feedback, observations and suggestions that could help identify and reduce the
bottleneck. Upon completion of interviews and a round-table meeting of managers we
were able to compare outside research with management feedback and concerns.

Here are the findings from the interview process:
Processing facility is physically too small to keep up with the large amount of
product coming from production
Having to move bins and containers multiple times to make use of space add too
many redundant steps to the process
Lack of employees to do all of the work required with the influx of product
(cleaning, bagging, tagging, packaging)

Task 4. Observing Work Flow (Processing)
Observing the facility with focused intentions allowed us to key in on specific elements
relating to the bottleneck. The ultimate result of this task was the confirmation of data that
was collected from the previous tasks. We were able to witness the constraints in action
and by doing so are able to offer valuable recommendations for GVS moving forward.

Conclusion/Recommendations

From this research we were able to conclude that people and process constraints are the
key factors contributing to the bottleneck. It is recommended that the processing facility
undergo and expansion (refer to WSLCB approved business plan) allowing for more space
to store product. With this expansion comes the need to staff the facility. Putting into place
procedures for hiring, training and scheduling will be necessary to meet the needs of GVS.
Details of these new procedures should be addressed in a follow-up proposal and
recommendation report.

References

Biotrackthc. "Washington." 27 Nov. 2014. Web. 03 Oct. 2015
https://biotrackthc.com/state/washington

Timilsina, Binod. "Removing Bottleneck From A Manufacturing Unit."15 Mar. 2012. Web.
http://www.theseus.fi/bitstream/handle/10024/44630/Timilsina_Binod.pdf?sequ
ence=1

WSLCB. "Initiative Measure No. 502." (2011): Web. 1 Oct. 2015.
http://www.liq.wa.gov/mj2015/marijuana-2015

Guinn, Jason How-a-small-bottleneck-issue-can-significantly-hinder-networkperformance. (2015): 15 May 2015. Web.

http://www.mywiztech.com/blog/entry