Evaluation and improvement of production line performance

Case study in NAdFood Company

Chapter ONE
Introduction

2017

Taiz University
Chapter One 2017

INTRODUCTION
1.1 Overview
Introduction of suitable performance measurement systems that
reflect to the big losses, responsive nature of the production required to be
introduced at appropriate stages of the production that are required to supply
an increasingly diverse range of products to large retail outlets throughout
Yemen and other countries. Losses throughout the production were known to be
occurring by the performance measurement systems to quantify these
losses and then process improvement activity to remove them in a
systematic way were needing to be introduced.
In the early stages of the project the emphasis was on implementing
performance measures to track and reveal losses. Subsequently, establish
accurate measures and equipment service measures. Considerable savings in
materials usage and increased throughput were made during this phase. The
next phase required detailed analysis of the performance of the operating
units when manufacturing and supplying products to meet the highly
volatile customer demand. We used the opportunity to explore production
improvement methodologies in an industrial context to study the application of
production performance concepts in the production sector.
1.2 Problem statement
NAdFood is one of Modern Hail Said Annam (HSA) group companies,
which has computerized production lines.
Focus on NAdFood has been suffering from a lot of challenges; most of the
problems are internal but some external problems also exist.
In general the problems like:
 High production cost.
 High concentration of waste.
 Inflexibility of the process and workforce.

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 High defects and reworks are few due mentioned.

 High equipment break downs.
1.3 Objective of the project
The aim of this project is to increase the productivity and efficiency in the
process industry and decrease operational costs which will in return increase the
profitability of the company.
According to the observed problems, the project mainly focuses on
creating the model for evaluating performance which consist much performance
metrics such as OEE (Overall Equipment Effectiveness), labor productivity and
other performance metrics and develops it by using lean manufacturing
techniques.
1.4 Scope and limitation of the study
The study conducted in the NAdFood (National Dairy and food
Company) in Cans plant that based on the available data, the interviews, and the
observations.
Limitations of the study were to:
- The worst situations in our country, such as Policy and economy
situations because the war in our country.
- The policies of the companies have changed forward the students
social ,so we suffered a lot to find a chance for training and applying our
project as a result of the war that exist in Yemen.
1.5 Research Methodology
The methodologies implemented to achieve the above listed objectives are:
- Literature on the subject matter:
The sources used at most are books, journals and websites.
- Data collection:
Data is collected from NAdFood through different methods like
historical data, interviews and observations were used.

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- Data analysis:
The data collected is systematically and logically analyzed to reach
better final results and draw conclusions and recommendations.
Data collected was analyzed by using, Excel spreadsheet, and
Simulation was done by the ARENA program.
1.6Used Tools
 Pareto Chart
 Cause and Effect Diagram
 Input Analyzer by Arena program
 Stop watch
 Excel program