United Kotak

Berhad
Continuous Improvement on Corrugator’s
Performance (MT per Hour)

1
United Kotak Berhad’s Brief History

2
United Kotak Berhad’s Network

3
Kaizen Team
Team Leader:
Deputy Factory Manager
Mr. Azmi Bin Abdullah

Team Members:
Mr. Zaini Daud
Mr. Nordin
Mr. Jumiran
Mr. Azwan
Mr. Ngio
Mr. Harith bin Malike (Presenter)
Ms. Noraini (Asst. Presenter)

4
 Action Plan
Intro Theme
Selection
Current
Situation
Target
Setting
Cause
Factor
Analysis Counter
measure
Result
Confirmat Standardi
zation
ion
Main Plan
Basic Plan Feb 2016
Jan 2016 May 2017
PIC
Tangible / Intangible Results
Define Theme
Plan

Draw, See, Think

Brainstorming Brainstorming

Action Plan

Related Team Members

PDCA cycle

Problem Analysis
Do

Cause and Effect Cause and Effect

Corrective Actions

Corrective Actions
CA Evaluation
Check

Result Summary
CA Evaluation and Result
Summary

Standardization
Act

Next plan
Continuous Action for Next Quarter
Management evaluation
Management Review
Choosing the Theme – 4M
MATERIAL
MACHINE
Paper roll Paper roll
shortage prepared not
Compressor as scheduled
Speed drops downtime
while Clamplifts Paper break
corrugating breakdown
Machine
downtime

Break for
lunch time
Frequent
order change

Too many Incorrect Manpower

unexpected paper mount shortage
insert orders at mill roll
SF running
SW stoppage

METHOD MEN

6
Choosing the Theme – Brainstorming,
shortlisting the Cause and Effects

What are other

issues that
Cause and relates to
Effect Analysis corrugator’s
poor
performance?

4M
Machine: Machine downtime $$$$
Material: Paper roll prepared not as scheduled
Method: Too many unexpected insert orders
Method: SF running SW stoppage
Men: Break for lunch time
Men: Manpower shortage
7
Choosing the theme – Brainstorming, cost
impact on Corrugator’s Poor Performance
$$$ Cost impact from corrugator’s
poor performance? $$$
$ Utility cost (electricity / water /
diesel / gas)
$ Overtime
$ Maintenance

8
 Past BHS Corrugator MT/Hour
Performance
Metric Ton

7.3
6.95 6.91
6.82 6.86
6.8 6.62 6.56

6.30 6.30
6.21 6.25
6.3 6.14 6.14
5.91 5.91 5.95 5.91
5.82 5.86
5.68 5.62 5.56
5.8

5.3
4.91

4.8
4.55 4.55

4.3
Dec-15

Dec-16
May-16
Feb-15

Apr-15

May-15

Jun-15

Feb-16

Apr-16

Jun-16
Aug-15

Sep-15

Aug-16

Sep-16
Jan-15

Jan-16
Oct-15
Mar-15

Nov-15

Mar-16

Nov-16
Jul-15

Jul-16

Oct-16
9
 Analyzing the Cost and Target Setting

MYR 3,000,000
Cost in Ringgit Malaysia

MYR 2,625,168.30
MYR 2,500,000

MYR 2,000,000

MYR 1,500,000

MYR 1,000,000

MYR 447,331 MYR 413,977

MYR 500,000

MYR 0
Utility Maintenance Overtime

Average Cost Y2015 + Y2016

Y2015+Y2016÷2= Average
Y2017÷7x12=Average 10
How to Achieve Target Set?

Corrective Actions to Address

The Shortlisted 4M Shortlisted 4M
 Machine: Machine downtime  Introduce TPM scheduling for
BHS Corrugator
 Material: Paper roll prepared
 Introduce AMT paper roll scan in
not as scheduled
at mill roll stand
 Method: Too many unexpected  Introduce incoming order level
insert orders loading
 Method: SF running SW  Introduce synchronize SF/SW
stoppage planning
 Men: Break for lunch time  Introduce interchanging break
time
 Men: Manpower shortage  Cross training between skilled
and non-skilled operators at BHS
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Corrugator
Corrective Action Timeline

Task Name Start

Interchanging break time May 2016
Cross training Jun 2016
TPM scheduling for BHS Corrugator Nov 2016
AMT paper roll scan in at mill roll stand Dec 2016
Synchronize SF/SW planning Jan 2017
Level loading May 2017

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 CA 1 – Interchanging Break Time

BHS Corrugator Interchanging Breaktime

Time
Machine Section
11:00 11:30 12:00 12:30 13:00

SF1 G1 SF1G1 and DBG1 goes for break

Single Facer 1 (SF1)
SF1 G2 SF1G2 and DBG2 goes for break

SF2 G1 SF2G2, DSG1, BAG1 and CRG2 goes for break

Single Facer 2 (SF2)
SF2 G2 SF2G2, DSG1, BAG1 and CRG2 goes for break

DB G1 SF1G1 and DBG1 goes for break

Double Backer (DB)
DB G2 SF1G2 and DBG2 goes for break

DS G1 SF2G2, DSG1, BAG1 and CRG2 goes for break

Down Stacker (DS)
DS G2 DSG2 and BAG2 goes for break

BA G1 SF2G2, DSG1, BAG1 and CRG2 goes for break

Board Arrangement (BA)
BA G2 DSG2 and BAG2 goes for break

CR G1 SF2G2, DSG1, BAG1 and CRG2 goes for break

Control Room (CR) SF2G2, DSG1, BAG1 and CRG2 goes for break
CR G2 13
 CA 2 – Cross Training

Benefits of Cross Training:

BHS Corrugator Cross-Training Matrix
Reduce training costs by leveraging internal talent.
Groom employees for promotions, management, and
additional
Un-
Skill Key Trained
responsibilities.
In-
Trained Seasoned Trainer
Save productivity even when employees are absent.
Training

Level 0
Boost motivation 1
by investing 2
in employees’ career3 4
Skills or Responsibilities
Machine Section growth.
StaffSF1more SF2
strategically.
DB DS BA CR

Use temporary help more effectively.

Single Facer 1 (SF1)
Single Facer 2 (SF2)
Double Backer (DB)
Down Stacker (DS)
Board Arrangement (BA)
Control Room (CR)

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CA 3 – TPM Scheduling

Schedule Checklist Service Report

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 CA 3 – TPM Scheduling
 Downtime hours after implementation of TPM scheduling.

Before After
Downtime Hours

400

350
15.27% 
300

250
360

200 305

150
178

100
Average Y2015 + Y2016 Y2017
Y2015+Y2016÷2= Average
Y2017÷7x12=Average 16
Downtime (hours) Expected Downtime (hours) after July 2017
CA 4 – AMT Paper Roll Scanning
AMT paper roll scanning at mill roll stands

Before After

New practice is to scan the paper rolls before mounting

Previous practice is manual checking against schedule
at mill roll., and operator paste label after usage by 17
and paste label manually after usage.
referring to system.
 CA 5 – Synchronize Corrugator Planning

 Synchronization of SF/SW planning at BHS Corrugator machine

Before After
31.33% 
47429.65
29515.32 35622.81
27667.30
Yearly Metric Ton Output

-
SW MT
SF MT
SF output for Y2015 + Y2016 are
averagely higher than Y2017. This is
because in Y2017 we have taken in more
SW orders.

11.13% 
2094.89 2249.76 1140.21 1954.64

2015 2016 2017 as of July Expected output as of

Average SF 2015+2016 = 181.02mt per month Average SF 2017 = Dec 2017
162.88mt per month
Y2015+Y2016÷2= Average
Y2017÷7x12=Average
Expected output-(Y2015+Y2016÷2)=Value x 100÷Expected output= Increase % 18
(Y2015+Y2016÷2)-Expected output=Value x 100÷Expected output= Decrease %
 CA 6 – Incoming Order Level Loading
(CIM-pack System)
 Frequency of insert orders comparing between Y2015/Y2016 and Y2017.
Before After
Yearly Frequency of Insert Orders

119049
120,000
18.49% 
100,000 97033
Starting from May 2017, all orders are
limited to 130,000 LM per day. Should
80,000 there be any insert orders, it’ll need
TM approval before inserting.

60,000 56603

40,000

20,000

0
Average Y2015 + Y2016 2017

Insert Orders Expected Insert Orders based on Ave. after July 2017
Y2015+Y2016÷2= Average
Y2017÷7x12=Average 19
(Y2015+Y2016÷2)-Expected Insert Orders=Value x 100÷Average= Decrease %
 Tangible Results - Current BHS
Corrugator MT/Month Performances

Based on calculation by average, Y2017 output after July

will be 4115MT per month which is higher than Y2015 and
Y2017 monthly outputs.
Monthly Metric Ton Output

5,000.00

4,500.00 4287.60 4253.31

4193.28
4010.98 4084.86 4087.18
4,000.00 3890.32

3,500.00

3,000.00

2,500.00

2,000.00

1,500.00

1,000.00

500.00

0.00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
20
MT Y2015 MT Y2016 MT Y2017
Y2017÷7x12=Average
 Tangible Results - Current BHS
Corrugator MT/Hour Performances
Hourly Metric Ton Output

8.30

7.64 7.70
7.80
7.37
7.14
7.30
6.82
6.65 6.59 6.62 6.61
6.80 6.55 6.56 6.56 6.55
6.30 6.21 6.25
6.14 6.14
6.30
5.95 5.91 5.91
5.86 6.30 5.82
5.80 5.56 5.62
5.91
5.68
5.30
4.91

4.80 4.55 4.55

4.30
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

MT/Hour 2015 Mt/Hour 2016 MT/Hour 2017

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 Analysis – Effectiveness of CA(s) Taken
Cost in Ringgit Malaysia

MYR 3,000,000

MYR 2,625,168.307%
MYR 2,440,529.04 Cost as a Positive Effect from Increased
MYR 2,500,000
Corrugator Performance

MYR 2,000,000

MYR 1,500,000

12% 15%
MYR 1,000,000

Target 5% = MYR 2,493,910.00 Target 10% = MYR 402,597.90 Target 10% = MYR 372579.30
MYR 447,331.01MYR 390,852.65 MYR 413,977.15
MYR 500,000 MYR 350,093.90

MYR 0
Utility Maintenance Overtime

Average Cost Y2015 + Y2016 Cost as of July 2017 Expected Cost as of Dec 2017

Y2015+Y2016÷2= Average
Y2017÷7x12=Average 22
(A-B)x100÷A=%
 Cost Reduction Summary – A positive
Impact From CA(s) Taken
Cost Incurred Reduction Achieved Previous Cost Expected Cost Expected Saving
Items Target % % (MYR) (MYR) (MYR)

Utilities 5% 7%  2,625,168.30 2,440,529.04 184,639.26

Maintenance 10% 12%  447,331.01 390,852.65 56,478.36

Overtime 10% 15%  413,977.15 350,093.90 63,883.25

Tangible RM305,000.87
Cost Saving

Conversion to USD = $72,044.62

Conversion to JPY =¥8,126,093.31

23
***Conversions are correct at the time of exchange.
Standardization

Before (Y2015 & Y2016) After (Y2017)

1. Machine stoppage for break time. 1. Interchanging break time to
2. Manpower was not employed at the continuously run BHS Corrugator
right time and when needed. machine without any stoppages.
3. Maintenance was conducted when 2. Continuously conduct cross training
damages to machinery parts occurred. between skilled and non-skilled
4. Machine stoppage caused by paper roll operators.
supply not ready. 3. Continuously implement and monitor
5. Standby incorrect paper roll. Total Preventive Maintenance
scheduling for BHS Corrugator.
6. Machine stoppage either at SF/SW
during running. 4. Continuous usage of AMT paper roll
scanning.
7. Insert orders occurs frequently without
control. 5. Continuous synchronization of SF/SW
planning at BHS Corrugator machine.
6. Continuous usage of level loading for
corrugator planning.

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Intangible Results

Code Description Criteria of Improvement

Q Quality Reduced frequency paper breaks.

C Cost (Other) Reduced BHS Corrugator Wastage.

From 5,
only 2 is
quantifiable
D Delivery On-time delivery.

E Environment No impact.

S Sales Brought in additional sales.

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 Intangible Results – Reduced Frequency
of Paper Breaks
Before After
Frequency of Paper Breaks

350

302
300

250 182x100÷302=60% 
182 x 10 ÷ 1000 = 1.82 x
200
2000 = RM3640.00
150
120

100
70

50

0
Average Y2015 + Y2016 2017

Paper Break (Minutes) Expected Paper Break (Minutes) as of Dec 2017

Y2015+Y2016÷2= Average
Y2017÷7x12=Average
(A-B)x100÷A=% 26
(A-B) x 10kg ÷ 1000 = MT x Pricing per MT = Cost Saving Value
 Intangible Results – Reduced BHS
Corrugator Wastage
Before After
Yearly Wastage in Metric Ton

250
20.17 x 100 ÷ 203.13 =9.92% 
203.13 20.17 x RM2000 = RM40,340
200
182.96

150

106.73
100

50

0
Average Y2015 + Y2016 2017

BHS CR Waste (MT) Expected Overall BHS CR Waste (MT) as of Dec 2017

Y2015+Y2016÷2= Average
Y2017÷7x12=Average
(A-B)x100÷A=% 27
(A-B) = Value x Pricing per MT = Cost Saving Value
 Intangible Results - Summary

Amount of Cost
Code Description Criteria of Improvement Status
Saving (RM)
Reduced paper
Q Quality 3640.00 Successful
breaks.
Reduced BHS
C Cost 40,340.00 Successful
Corrugator wastage.
D Delivery On-time delivery. - Successful
E Environment No impact. - Successful
Brought in additional
S Sales - Successful
sales
Intangible Cost
RM43,980.00
Saving

Conversion to USD = $10364.09

Conversion to JPY =¥1,172,136.86

28
***Conversions are correct at the time of exchange.
 Cost Saving Summary
The calculations are expressed as below:

Tangible Results + Intangible Results = Total Expected

Savings Ending December 2017.

RM305,000.87+RM43,070.00 = RM348,070.87

Conversion to USD
$72,044.62+$10364.09 = $82,408.71

Conversion to JPY
¥8,126,093.31+¥1,172,136.86 = ¥9,298,230.17

29
***Conversions are correct at the time of exchange.
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Presentation Prepared by Yazid Zakaria