Guia Lab

Identification
GI-21.908 /
12/2012
Manufacturing Standards for Costing and Planning

Classification
Document type:
Standard
Hierarchical level:
Core Document
Confidentiality:
Yellow Class/for Internal Use
Owner Unit
CO-Manufacturing & Operational Excellence
Owner
Laglia,Massimo,VEVEY,CO-M&OE/M.Dev.
Author(s)
Laglia,Massimo,VEVEY,CO-M&OE/M.Dev.
Approver(s)
Berger,Andreas,VEVEY,Corporate NCE
Scrivener,Peter,VEVEY,FC-GAR/CM
Implementation
Summary
ISGI-21.908
Summary of
Changes
Copyright
The content of this document is a trade secret. It may not be reproduced, distributed, or disclosed to
third parties, without proper authorization. All rights belong to Nestec Ltd., CH-1800 Vevey,
Switzerland. Nestec Ltd. 12/2012
Catalogue Section:
CATALOGUE OF OPERATIONS INSTRUCTIONS
- PART 1: GENERAL INSTRUCTIONS - NON PRODUCT SPECIFIC
- MANUFACTURING
- PRODUCTION
Table of contents
Introduction.................................................................................................................................... 2
Raw / Packaging Material Standards.........................................................................................5
Energy Standards............................................................................................................................. 9
Line Definition................................................................................................................................. 11
Nominal Speed............................................................................................................................... 16
Time Classification......................................................................................................................... 18
Line Standards............................................................................................................................... 19
Line Standards, Preparing the information for entry into GLOBE...................................................23
Labour Standards........................................................................................................................... 25
Production Versions....................................................................................................................... 30
"Standards Sheet" Template...........................................................................................................33
2/39
Introduction
Purpose of
this Document
This document defines the Manufacturing Standards (Line & Labour Standards,
Energy Standards and Raw & Packaging Material Standards) used for Costing,
Planning and Performance Management within Nestl.
Major changes
This document contains the information on Manufacturing Standards

previously included in GI 23.010-2. The Performance Measures related
information are now included in the new GI 21.010.
The terminology of Target has been replaced with Zero Loss.
The Standard Sheet form has been redesigned to simplify the preparation of
the line and labour standards.
Target audience
Use of this
document
This instruction is valid for all Markets/Businesses/Categories.
Reference
documents
GI-21.010 Performance Measures for Manufacturing

Costing Standards for Manufacturing
Using Manufacturing Standards for Supply Planning - GLOBE User Guide
Implementatio
n
The content of this instruction becomes mandatory for all Nestl factories as of
1st January 2014.
At that time, GI-21.908 Manufacturing Standards for Costing and Planning,
together with GI-21.010 Performance Measures for Manufacturing, will replace
the GI-23.010-2 Managing Manufacturing Performance which will then be
withdrawn.
Industrial Performance at Head Office and Factories

Factory Administration & Financial Controllers
Production Managers
Factory Supply Planners
Factory Managers
Market FI Master Pillars
Market PM Master Pillars
Factory FI Master Pillars
Factory PM Master Pillars
Continued on next page
GI-21.908, 12/2012
Nestec Ltd 12/2012 May not be divulged to third parties without proper authorization
Uncontrolled copy when printed, Please visit the site to ensure that you are using the current instruction
http://thenest-eur-hq.nestle.com/TP/TP_OPIN
3/39
Introduction, continued
Standards
Purpose
Standards are reference values, established for:

- Production planning and capacity planning.
- Costing (costing, budgeting, controlling and reporting).
- Performance measurement calculation (eg Reliability1)
For production scheduling and planning we need to have a clear view of the
volumes/quantities that can be achieved within a given timeline, to ensure we can
meet the supply requirements for the business. This is both for shorter time
horizons as well as for long term capacity planning for Capex.
For costing it is imperative that we have an accurate understanding of our costs.
This is critical in todays competitive landscape, so that commercial and financial
decisions are taken on the basis of correct information.
For Performance Measures, we need to define standard values to enable their
calculation
For example, Nominal Speed is the standard value needed to calculate Reliability
of a given production line.
Integrated
framework for
standards
Nestl uses an integrated standards framework; i.e. only one set of data needs to
be defined for the three purposes mentioned above. With integrated standards we
make sure that we are using updated figures based on the same calculations and
principles.
Which standard is mandatory?
Raw / Pack Material Standards

Energy Standards
Line Standards
Labour Standards
"Standards Sheet" Template
Mandatory
(Yes/No)
Yes
Yes
Yes
Yes
No
Comment
Recommended.
Introduction, continued
1 Reliability is the measure of how consistently and efficiently a process is operated. Refer to GI21.010 for full details.
GI-21.908, 12/2012
4/39
The 2 levels
of Standard
values
2 levels of standard values can be defined:

Zero Loss = Base line measurement to keep the zero loss in sight and to
provide a stable basis for comparison.
Expected = This value is used for costing purposes as well as for production
planning and scheduling purposes. It should be set as a realistic, achievable
value that can be maintained for a sustained period. The expected value
established during the budget preparation is used for standard costing.
Note: Not all levels are applicable to all standards. For example the Zero Loss
level is normally relevant for Raw and Packaging Material Standards and not for
Energy, Line and Labour Standards.
Revision of
Standards
Part of the routine is also to ensure that the Standards are up-to-date.
Standards should be reviewed at least once per year, even if no obvious
change occurred.
Standards should be revised during the year if changes have occurred or are
planned to occur. Examples:
- The equipment on the production line is modified in any way.
- Any new equipment is added to the line.
- The product is modified such that its production data is changed.
- New products are being produced.
- The crewing is altered.
- An improvement of any kind is made to the line e.g. shorter cleaning
times....
- The actual level of performance is substantially different from the
established standard and it is not expected to be able to conform to the
expected level of performance for the upcoming period.
Note
In the following chapters, when a standard is said to be "product specific", this

means "SKU specific" (e.g. if the same chocolate bar is sold in packs of 4 bars and
in packs of 8 bars, we consider them as two different products).
GI-21.908, 12/2012
5/39
Raw / Packaging Material Standards

Introduction
For most of our products, the cost of raw and packaging materials accounts for
about 70% of the total cost of production. Effective planning and control of the
procurement, storage, handling and usage of key raw, packaging and
intermediate (work-in-process) materials are top priorities to ensure a
competitive manufacturing operation and to meet freshness requirements.
Accurate Standards for material usages are critical to manage all these
processes.
Definitions
Note:
Some losses will be difficult to capture, such as drain waste and dust extraction.
Not all loss categories are included in the classification above (eg. Expired Materials
or Warehouse losses). These losses are not included in the Material Usage
Standards, but are rather booked separately as financial losses.
While the Loss Tree provides the full details of the losses by category as mentioned
above, the standards summarizes the losses into one loss factor.
Zero Loss
Material
Usage2
Theoretical quantity of raw / packaging material required to be input into a

process to produce a given Production Quantity. This theoretical quantity
includes losses inherent to the process (e.g., Water Loss, Evaporation, Peeling,
shell or skin removal and Coffee extraction), but excludes any production related
losses.
Zero Loss Material Usage = Bill of Material quantity (BOM)3
2 Previously called Target Material Usage.

3 The BOM is the complete list of components that make up a product or semi-finished product
together with the Material Usage standard of each component. The list contains the material
number of each material together with the quantity (this is the zero Loss Material Usage referenced
above), unit of measure, the designed waste conversion factor and component scrap (expected
loss).
GI-21.908, 12/2012
6/39
Raw and Packaging Materials, continued

Expected
Material
Usage
Expected quantity of raw / packaging material required to be input into a process

to produce a given Production Quantity, including an allowance for some losses.
Expected Material Usage = Zero Loss Material Usage + Expected Material
Loss
Expected
Material Loss
(Component
Scrap)
Expected total quantity of raw / packaging material lost including:

- Handling / storage losses in production (e.g. spillage, spoilage, damage).
- Other operational losses (e.g. material build-up, cleaning losses, waste,
overfill).
- Any other losses in production.
The Expected Material Loss is used for procurement, planning and costing
purposes.
Material
Standards
Definition
Raw / Packaging Material Standards are a collection of key operating data for a
specific line, product and production version. They are established for the raw,
packaging and semi finished materials required for each product. They provide
basic data for purchasing, production planning & scheduling, costing and
performance measurement.
The material standards include:
1. The Zero Loss Material Usage.
2. The Expected Material Loss (also called Component Scrap), expressed
as a percentage of the Zero Loss Material Usage.
Example
Filling
granulated
coffee powder
on a packing
Component
line Description
Granulated Coffee
Product format: 6 x 1kg Cans (i.e. 6 cans in a shrink wrapped tray)

Base quantity for BOM: 6000 Cans
Component Scrap is 2% for the granulated coffee powder
Zero Loss Material
Usage
Expected
Material Usage
= BOM quantity
(KG)
= BOM qty + Component Scrap

(KG)
6000
6000 + (2%) x 6000 = 6120
Note that in the

BOM there would
also be packaging
materials, but for
the purpose of this
illustrative
example, only semi-finished material is shown.

GI-21.908, 12/2012
7/39

Process
Inherent
Losses
(Designed
Waste)
In some processes we have losses that are inherent to the process of producing
the defined product, such as water loss, evaporation, peeling, shell or skin
removal and coffee extraction. These losses are defined as part of the Product
Design process and they are normally not considered being an operational loss
of the factory. In order to be able to understand the full losses that we are
having, it is however important to consider also these process inherent loss.
Designed Zero
Loss Material
Usage4
Hypothetical quantity of raw material or semi finished goods required to be input

into a process to produce a given Production if there were absolutely no losses
at all.
Designed Zero Loss Material Usage =
BOM quantity x Designed Waste Conversion Factor
Designed
Waste
Conversion
Factor5
The concept of designed waste conversion factor is for use in situations where
losses are inherent to the processing conditions only (e.g. Water loss or
evaporation, peeling, shell or skin removal and coffee extraction).
Designed Waste Conversion Factor is a GLOBE specific field in the BOM and is
smaller or equal to 1. The Designed Waste Conversion Factor is equal to 1
when there are no inherent design losses in the process.
4 This was previously called Zero Loss Material Usage.

5 Previously called Zero Loss Conversion Factor
GI-21.908, 12/2012
8/39

Illustrative
Example
Preparation and
cooking of 1000
kg batch of
cooked tomato
sauce
To obtain 1000 KG of sauce, the manufacturing process requires that 725 KG of

tomato paste be mixed with 400 KG of water, along with 80 KG of oil and 20 KG
of flavours. The evaporation defined in the technical recipe of this product
results in that 20% of the mix of tomato paste and water has to evaporate.
Component
Description
Tomato Paste
Oil
Dried Flavours
Water
Quantity
(KG)
Quantities
ending up
in the Sauce
Expected
Material
Loss (%)
725
80
20
400
1225
725
80
20
175
1000
3
3
3
3
Designed
Waste
Conversion
Factor
1
1
1
0.44
Note: For this example only water loss is shown for simplification purposes.
Component
Description
Designed Zero Loss Material

Usage
= BOM qty X Designed Waste
Conv. Factor
(KG)
Zero Loss Material Usage
Expected Material Usage
= BOM quantity
= BOM quantity + Component

Scrap
(KG)
(KG)
Tomato Paste
725 X 1 = 725
725
Oil
80 X 1 = 80
80
Dried Flavours
20 X 1 = 20
20
Water
400 X 0.44 = 175
400
725 + (3%) x 725 = 747

80 + (3%) x 80 = 82.4
20 + (3%) x 20 = 20.6
400 + (3%) x 400 = 412
GI-21.908, 12/2012
9/39
Energy Standards
Guiding
Principles
Prudent selection and efficient use of all energy resources consumed in factory
operations are required to ensure (1) reliable and economic supply, (2)
favourable cost performance and (3) minimum adverse environmental impact.
Measurement and tracking of usage by operation or task should be employed
where feasible and economically or environmentally justified.
For energy intensive processes, such as evaporating, drying and freezing, the
consumption of energy is a pivotal factor in decisions regarding investment and
operating plans. For less intensive operations, it may still be one of the key
factors in determining shift plans and operating cycles.
The cost of the energy consumed by production lines is generally a variable part
of the Total Cost Of Production (TCOP) with the exception of some fixed energy
consumers such as refrigeration. The optimisation of the energy consumption
requires an energy management approach that is based on the continuous
improvement principles in order to achieve sustainable energy supply and
energy cost savings.
Definitions
EnergyUsage
Input
Process
OutputQuantity
Output
Quantity
Quantity of output generated from a production process (e.g. semi-finished,

finished product) or an energy conversion process (e.g. steam, water, air).
Expected
Energy Usage
Expected energy is the quantity of energy required to be input into a process per
machine hour.
Expected Energy Usage = Expected Quantity of Energy
Output Quantity / Nominal Rate
Note: The Expected Energy Usage does not allow for the time losses that
impact the Reliability KPI of the line (e.g. Breakdowns, material losses,
cleaning). The Expected Energy Usage as defined in the secondary resource in
GLOBE allows only for the energy required for the time to produce Good
Product.
To ensure accurate Energy Standards in the budget, it may be necessary to
increase the energy consumption per hour in the standard to allow for energy
losses caused by Reliability losses. This will be very dependent on the line, and
what forms of energy continue to be consumed even when the line is not
producing good product.
GI-21.908, 12/2012
10/39
Energy Standards, continued

Note
Determining the energy usage for individual equipment at various steps in a

process often requires an in-depth knowledge of physics and the processes and
equipment involved. Therefore it is important to always involve production
and engineering when defining energy standards.
Often is practical to base the definition of energy standards on the actual usage
measured through metering devices.
Energy
Standards
Definition
Energy Standards are a collection of key operating data defining the energy
required for each energy consumer (process, production line, product or area) in
the factory. They are established for both production processes and energy
conversion processes. In the case of production processes, the standards are
for a specific line, a specific product (or group of similar products) and a specific
production version. They provide basic data for costing.
These data include:
Expected Energy Usage, expressed per machine hour
The energy categories captured in GLOBE include:
Electricity (KWH)
Refrigeration (KJ)
Gas (M3)
Steam (KG)
Compressed Air (M3)
Water (M3)
Examples
Energy
Standards
Use of
Fuels (oil, gas, coal)
Steam
Electricity
Expressed in
KG fuel / machine hr
KG steam / machine hr
kWh / machine hr
Expected Energy Usage

97.5 KG fuel oil / machine hr
1000 KG steam / machine hr
630 kWh / machine hr
GI-21.908, 12/2012
11/39
Line Definition
Purpose
Overview
The purpose of this section is to document how lines are defined. This is
required for performance control, costing and production planning purposes.
This section gives general guidance for how to define lines, especially as they
refer to GLOBE. For loss tracking in SAM, the definition of the individual
machines of the line is normally more detailed (see SAM mapping guideline for
further details6)
CC Group
CC
Resource
(line)
Product
Production
Version
Version0001
ProductA
Version0002
Version0003
Version0004
CC500.01
CCGroup500
Line1
ProductB
Version0001
ProductC
Version0001
CC500.02
Line2
ProductA
CC500.03
Line3
ProductD
CC500.04
Version0005
Version0006
Version0001
Line4
Line5
CC500.99
Line
(Resource)
A line is a production operation consisting of one or more machines, processes

or tasks, defined for production planning & scheduling, costing, capacity
management and performance measurement.
In GLOBE terminology, lines and machines are called resources7. A line is
represented in GLOBE by a bottleneck resource.
6 Guideline to align SAM and AMM in Manufacturing intranet

7 In GLOBE a resource can be an individual machine or a production line consisting of many
machines.
GI-21.908, 12/2012
12/39
Line Definition, Continued

Cost Centres
and Cost
Centre Groups
(CC and CC
Groups)
Each resource (production line) is assigned to one and only one Cost Centre
(CC). A Cost Centre is the lowest level for collecting manufacturing costs in a
factory. It is an analytical account, used for cost assignment, budgetary control
and costing variance calculation.
Whenever several individual resources (production lines) belong to the same
area of responsibility and share a common operational function, they are
integrated into a specific CC Group. For instance, if a factory uses several
roasters, it may integrate the corresponding CCs into a CC Group called
"Roasting".
For details on cost centre mapping and numbering, refer to the Costing
Standards for Manufacturing and GLOBE data Standard 209.
When there are costs that are common to several / all production lines, they
may be combined into a dedicated cost centre with the suffix 99. Depending on
circumstances, such costs can be:
- The costs of specific activities such as supervision, and / or
- The depreciation, maintenance, etc. of physical equipment used by all
lines in the CC Group concerned (e.g. a palletiser)
Note that if a piece of equipment shared by several lines requires separate
planning, then this equipment should not be part of the above mentioned
"common CC". Instead, it should be treated as a separate production line.
A CC number consists of 9 digits, of which the first 4 digits always designate the
"plant" concerned (e.g. a specific factory). Whenever a CC corresponds to a
resource (production line), the next 3 digits identify the Cost Centre Group (e.g.
Roasting) and the last 2 digits the line itself (e.g. Roaster N01).
GI-21.908, 12/2012
13/39

Defining a
Line
The following rules are given as guidelines:
Lines should be able to operate, for an extended period of time, independently

from one another and be independently planned from other steps in the
process (i.e. there should be enough buffer between them).
A line can represent from a single machine (or table for a manual packing
operation) to an integrated block of continuous processes.
A given line might also have minor buffers between machines to cope with
short stoppages (e.g. changes of label rolls).
A production line generally covers an end to end process. If the product
stream is split, then the production line will also need to be split at this point.
Side stream, stand-alone transformation processes are equally important and
can absorb significant capital and should also be considered as lines.
Basically, one and only one Process Order can run on a given machine or
group of machines at a given time, except if it is a multi-resource (several
Process Orders can run on a given machine or group of machines at a given
time if it is a multi-resource). Please see multi-resource section for more
details.
If the products A and B are never manufactured at the same time, we can consider all the
machines as one production line8.
Please refer to GLOBE site mapping documentation for further details about
Process Order and Resource mapping in GLOBE.
8 In case the cost associated with producing Products A and B are significantly different, then the
relative machines must be allocated to different Cost Centres.
GI-21.908, 12/2012
1or2CC
1,2or3CC
Cost
Centre
14/39
ContinuousProcess
Machine
Machine
Machine
Co
Significant
Buffer
Resource1:(ProcessingLine1)

Multi
Resource
Guiding
Principle
The concept of multi-resourcing was developed by GLOBE to improve the

visibility of planning on production lines with multiple identical machines. In
some factories production planning is complex and it is advantageous to have
the ability to plan the production of multiple machines within a line.
The concept allows a factory to group a series of identical machines (with the
capability of manufacturing the same product mix) and identify it as a Multi
Resource. However the machines within a line can be planned singularly or as a
group depending on the planning needs. As a result, in some factories, this
functionality will reduce transactions on the shop floor but allows individual
planning of machines on a line.
A Multi Resource might be applicable, if all of the following conditions apply.
-
A line consisting of multiple machines that behave identically (i.e. the

nominal speeds of all machines & production capabilities are identical).
All machines within a line can be treated the same for any planning
purposes.
All machines must be able to manufacture an identical mix of all products
(i.e. more than one product (material) can be produced at the same time).
Please note that if a factory needs visibility of the individual machines for
planning or performance reasons in GLOBE, then the Multi Resource
concept cannot be applied.
GI-21.908, 12/2012
Machin
Resou
15/39
Modelling of a Multi Resource
Machine
ProcessOrder1
ProductA
Machine
Machine
Machine
ProcessOrder1
ProductA
Machine
Machine
Machine
Machine
Machine
Machine
Machine
Machine
Machine
Machine
Machine
ProcessOrder2
ProductB
Machine
ProcessOrder2
ProductB
ProcessOrder1
ProductA
ProcessOrder2
ProductB
It may be the case that a line is used at the same time for more than one
Process Order. In order to accommodate this, the shared line needs to be
flagged in GLOBE as a Multi-resource (for costing, manufacturing and planning
purposes).
GI-21.908, 12/2012
16/39

Multi
Resource
Example
Line
This is a diagram of a confectionery manufacturing and packing process. It

outlines a typical scenario where a Multi Resource might be used.
In this case, the 5 wrapping machines make up the bottleneck of this line.
Using the Multi Resource functionality the 5 machines can be configured and
identified as a Multi Resource in GLOBE.
As a result, Resource Y could be identified to have 5 individual capacities each
with a nominal speed of 200 cases per hour. The resource would be considered
to have a total capacity of 1000 cases per hour.
In order to use this functionality the concept of Production Versions is extremely
important. In this case 5 master recipes would need to be configured for
products manufactured on resource Y. Based on using Production Versions (one
for each Master Recipe) and configuring the resource as a Multi Resource,
multiple Process Orders could be released for the line at the same time.
Multi
Resource Modelling of
the Master
Recipe
Resource Y = 5 Capacities, Nominal speed of each capacity = 200 CS/H
Note
In GLOBE, the Nominal Speed is set to one capacity and the number of
capacities is used to show planning how many are being utilized.
Master Recipe
1
2
3
4
5
Utilizing capacities
5
4
3
2
1
Nominal Speed
200 CS/H
200 CS/H
200 CS/H
200 CS/H
200 CS/H
GI-21.908, 12/2012
17/39
Nominal Speed
Definition
The Nominal Speed9 is the highest sustainable speed achieved under optimal
operating conditions.
Nominal speed is used for production planning and standard costing purpose
and it is the standard value that allows the calculation of Reliability10.
Reliability=
G ood Production
Occupied Time Nominal Speed
Nominal Speed is defined for each machine and product combination11.

For a production line, the Nominal Speed is dictated by the speed of the machine
with the lowest nominal speed. This machine is called bottleneck.
The Nominal speed has to be revised if changes or modifications have occurred
with the equipment or the product and reviewed at least once per year, even if no
obvious change has occurred.
Example
Machine 1 Nominal Speed

= 600 KG/h
Machine 1

= 500 KG/h
Machine 2

= 300 KG/h
Machine 3

= 550 KG/h
Machine 2 = bottleneck
Machines 3 Nominal Speed

= 600 KG/h
= 300 KG/h
Machine 3'
Machine 4
Line Nominal Speed

= 500 KG/h
Finished product
Notes for
Bottleneck
Maximising the Bottleneck Speed does not only enable an increase of the
maximum capacity but also to reduce or avoid future investments. Operators
should know where the Bottleneck is and be aware that it is the key to the
line productivity.
The (first and possibly second) bottleneck has to be established for each line,
each product (or group of similar products) and each production version.
For a given line and product, there is only one Bottleneck12. The Bottleneck
can be made up of multiple machines but there are not multiple Bottlenecks
running in parallel. Each material may have a different bottleneck machine
and this bottleneck machine can be assigned to the material in SAM
9 In GLOBE terminology, Nominal Speed is called Base Quantity per Hour.

10 See GI-21.010 Performance Measures for Manufacturing for the definition of Reliability
11 In some cases, the nominal speed for a product can be production version specific.
12 If a product has more than 1 production version, the bottleneck may be different for each
production version.
GI-21.908, 12/2012
18/39
Nominal Speed, Continued

Notes for
Nominal
Speed
Nominal Speed must be realistically and consistently achieved over a period of

time (several shifts). It is defined under optimal operating conditions while
allowing for safe, hygienic, reliable operation and safeguarding product quality.
Speed
Ideal
conditions
Number of units or quantity of products produced per unit of

time (e.g. 1 hr)
In case of seasonality, consider the period of the year during

which the line speed is the highest.
- Use the raw / packaging materials that are likely to give the
best results (i.e. use the best raw / packaging materials
according to the specifications to manufacture the product).
- Line is in perfect working condition.
-Line runs under optimal temperature, humidity etc with a well
trained crew.
-
operation
Reliable
Lines running without unplanned stops and without

producing waste and rework
Operations and machines are safe for workers and
environment.
Operations and workers fulfil the hygienic standards.
Does not cause any extra wear than the wear due to normal
use (i.e. does not cause any extra maintenance).
-
Nominal
Speed vs
Maximum
Speed
Product complying with the defined quality specifications

(all parameters within control limits).
The Nominal Speed can be different from the Maximum Speed defined by the
machine supplier.
The Nominal Speed could be reduced from the Maximum Speed for the following
reasons:
1. Changes in desired Product Specifications that can only be achieved
through a lower speed;
2. Lower speed can improve Reliability; in some instances it can be better to
reduce the speed in order to reduce for example material losses.
This is a valid reason for reducing the Nominal Speed, under the
condition that this is based on a documented and approved study. The
study must include the identification and investigation of the root causes,
together with the estimated costs / benefits.
The Nominal Speed is the speed at which the equipment is expected to operate.
If the equipment is operated at a higher Speed, then the standard Nominal
Speed value must be updated.
GI-21.908, 12/2012
19/39
Time Classification
Overview
The time classification used for production performance measurement13 and

analysis defines 5 main loss categories:
Not Occupied, Planned Stoppages, Unplanned Stoppages, Speed Loss and
Waste & Rework.
13 A slightly different Time Classification is needed for Capacity Planning purpose. See R 26.641
for further details.
GI-21.908, 12/2012
20/39
GI-21.908, 12/2012
21/39
SpeedLoss
UnplannedStoppages
Waste&Rework
GI-21.908, 12/2012
22/39
Not Occupied
Time during which the line is physically capable to produce, but it is not required
for production as a decision has been taken not to occupy it.
For the calculation of Reliability, the time spent for projects, investments and
trials of non saleable products is also included in Not Occupied.
Planned
Stoppages
Time used to perform planned activities and during which the line is not
available to produce. Planned Stoppages are always planned and a standard
duration has been established.
Line/Product Changeovers, Weekly cleaning, Planned Maintenance, meetings, meal,
breaks, reel change.
Unplanned
Stoppages
Time lost due unplanned events occurring during the operation of the line,
preventing the line from producing.
Speed Loss
Time lost because of the line operating at less than the nominal speed, due to a
process, technical or human issue.
Breakdown, Process Failure, Lack of Packaging Material, Minor stoppages
Reduced speed on a filling line, extended batch operation due to slower heating than
the standards, reduced speed on a processing line to reach the defined quality.
Waste &
Rework
Time
Classification
Time lost at the bottleneck due to production of non conforming products that
can be recovered to be used as rework.
Rework, Product waste, Packaging rework
For further details about the time classifications and the calculations of
Performance Indicators, please see GI-21.010
Line Standards
Guiding
Principles
Each production line needs to have some information documented that outlines
how the line typically operates. The information collected in the standard is
more detailed compared to the information that is captured in GLOBE.
The information contained in the line standards should be used to ensure all
areas are aligned with how the production line should typically operate, in terms
of nominal speed, bottleneck, cycles and crewing requirements.
GI-21.908, 12/2012
Line
Standards
Definition
23/39
Line Standards are a collection of key operating data for a specific line, a
specific product and a specific production version. They provide basic data for
production planning & scheduling, costing and performance measurement.
These data include:
- Line Nominal Speed.
- Bottleneck Machine.
- Expected Reliability and Planned Stoppages.
- Labour requirements.
- Costing lot size.
Breakdown of
Time
The breakdown of the Occupied Time for the standard can be summarized in
the diagram below.
Occupied Time
Runtime
Runtime
Planned Stoppages
Line Related
Time
Product Related
Changeover Time
Planned Stoppages are divided into Line Related Time and Product Related
Changeover Time.
GI-21.908, 12/2012
24/39
Line Standards, Continued

Time
Classification
Line Related
Time
Line related activities are the planned activities during the Occupied Time that
are not carried out for a specific finished product (i.e. SKU14).
Line related activities must be separated in the standard mainly due to costing
reasons, as these costs must be borne by all the POs produced on the line.
The Line Related activities are generally of a fixed duration, such as the Set up
at the beginning of a cycle and the cleaning at the end of the cycle or
changeovers related to format changes.
These tasks normally occur in each production cycle, and they do not depend
on the individual products being produced or the length of the production run.
Note: Operational Stoppages, which are planned activities (such as reel
changes), are also included in this category for the sake of simplicity.
Time
Classification
Product
Related
Changeover
Time
This is the time required to change between two consecutive SKUs. It has a
fixed duration and does not depend on the production run length. Product
Changeover Time is defined as the time it takes from the production of the last
good product of the previous production run until the first good product of the
new production run, at the expected efficiency.
The Product Related Changeover Time should be set to the most likely
changeover duration, if there is a relatively fixed production sequence. If the
sequence varies significantly, then the Product Related Changeover time should
be defined as the average changeover time, taking into account the most likely
changeover scenarios.
Note: The Product Related Changeover should not include the format
changeovers that are performed for a group of SKUs that follow. Format
Changeovers are classified as Line Related time (see above). Thus, for the first
SKU that is produced after a format changeover, the total Changeover time
should be split so that a part is classified as Line related Time (for the format
changeover) and the remainder as Product Related Changeover Time.
Time
Classification
Runtime
Time during which the line is intended to produce.

It includes all unplanned stoppages and the time lost for the Speed loss and
Waste & Rework.
Examples of some typical tasks and their time classification are given in the
following table.
14 SKU: Stock Keeping Unit. It is the definition of a unique finished product, the equivalent to the
material number (for finished goods/FERT) as documented in Globe
GI-21.908, 12/2012
25/39

Time and Loss
Classification
Example
Task
Runtime
Good Production Time

Unplanned Stoppages
incl. Breakdowns & Minor
Stoppages
Speed (Rate) loss
Quality loss
Meals / breaks if the line
stops
Training / Meetings
Changeover
- for a specific SKU
Format Changeover
- for a group of SKUs
using
the
same
format
Start up / Shutdown for a
day
Set up at the start of
week
Planned Maintenance
Cleaning end of day
Cleaning - end of week
Change roll every 10000
repeats
x
x
Product
Related
Changeover
Line Related
Time
x
x
x
x
x
x
x
x
x
x
x
x
An example of a typical production cycle. Each process order is for a different

product from within the same product group (i.e. different products (flavours) for
each process order using the same format).
ProcessOrder2
ProcessOrder3
ProcessOrder1
Setup
ProductChangeover
ProductChangeover LineCleaning
ProductRelatedChangeover Runtime
LineRelatedTime
GI-21.908, 12/2012
26/39

Costing Lot
Size
The cost of products is reported in different ways depending on the system

used. In GLOBE, the cost of products is calculated and reported per Costing
Lot size*1, which corresponds to the average size of a Process Order (PO) for a
given year. However, the cost of products can also be displayed in GLOBE for
any unit of measure (UoM): consumer unit (each), trade unit (case), 1000 KG,
etc.
Note: *1 Costing Lot size can be estimated in two ways:
- Annual production / annual number of orders.
- A typical quantity (e.g. always 5 batches).
Costing Lot Size is important for costing since it determines the allocation for the
Product Related Changeover. As the cost of this downtime is always the same
per Process Order, the cost per product unit will be lower if 10,000 units are
produced per Process Order than if only 100 units were produced.
Changeover
Matrix
The changeover time depends on the combination of SKUs the line is being
changed from and to. As part of the line standard the following must be
determined:
Format Changeovers for this line. This time is used for costing
calculations and for production planning
Product Related Changeover Time for this product. This time is used for
costing calculations, production planning and is included in the Master
Recipe in GLOBE.
Additionally a changeover matrix can be defined for each line, detailing the time
it takes to change from each SKU on the line to another. This changeover
matrix can be documented in the Line Standard, and used in APO for assigning
the correct time requirements for each changeover. When this option is chosen,
then the value in the matrix replaces the Product Related Changeover Time
defined for the product in the Master Recipe (for planning only).
GI-21.908, 12/2012
27/39
Line Standards, Preparing the information for entry into GLOBE

% Line
Efficiency for
Master
Recipes
Due to the GLOBE structure, Line Efficiency will continue to be used as a

Standard figure to allow proper costing and planning processes.
It is extremely important however to note that Line Efficiency must not be
used as a performance indicator for performance evaluation of a production
line. For that purpose Reliability, with the relative loss components as defined in
GI-21.010, must be used.
GLOBE reports (R/3 and BW) will provide Line Efficiency actual figures to be
used as basis for the annual revision of Manufacturing Standards, as well as for
other tools requiring it (e.g. CST).
Based on the new terminology introduced, the definition of Line Efficiency is:
Good Production Time

Good Production
=
Runtime
Runtime Nominal speed
For reference, the mathematical formula linking Line Efficiency with Reliability is:
Reliability
1%PS
where:
%PS=
Planned Stoppage Time

Occupied Time
For the preparation of the Manufacturing Standards, GLOBE requires that Line
Related and Process Order related planned stoppages are split. In this case the
formula becomes:
Reliability
1%PS LR%PS POR
where:
Avg Process Order Nominal Speed Reliability

Change
Time POR
%PS POR=
The above formulae are given for reference only, as they are embedded in the
Standard Sheet excel template provided at the end of this instruction.
GI-21.908, 12/2012
28/39
Line Standards, Preparing the information for entry into GLOBE,

Continued
Structure of
Master
Recipes
Illustration for how the Occupied Time is captured in the Master Recipe:
Occupied Time
Good
Production
Time
Rework Speed
/ Waste Loss
Unplanned
Stops,
Runtime
Master Recipe = Runtime

% Efficiency Loss
Product
Changeover
Line Related
Losses (incl.
Format changeover)
Planned Stoppages
Master
Recipe =
Product
changeover
Not in Master
Recipe
Master Recipe Runtime
The Good Production Time is derived from the Nominal Speed (based on the
production quantity).
The Efficiency Losses (Unplanned Stops / Speed Losses and Rework and Waste
are expressed indirectly as the percentage of the Runtime that is Good (% Line
Efficiency).
Master Recipe Product Changeover
The Product Changeover expresses the Product Specific Changeover time required
to changeover to this product. This information is in the Product Changeover phase
of the Master Recipe (previously called downtime phase).
Line Related Losses
The Line related Losses are not in the Master Recipe. These are established and
entered separately into R3 for Costing (Labour only) and into APO for Planning.
GI-21.908, 12/2012
29/39
Labour Standards
Guiding
Principles
In many of our operations, labour can make up a significant proportion of the

product cost. It is important that the labour is correctly budgeted in the factory,
to ensure accurate labour costs are assigned to a product. This section defines
the various labour categories used within our factories.
Labour
Standards
Overview
Peopleworkinginthefactory
HourlyControlledPeople
Budgeted
Labour
ProductionLabour
Proportional
Labour
Non ProportionalLabour
Non
Hourly
Controlled
People
ProductRelatedChangeoverLabour
RuntimeLabour
LineServicing(specifictoaline)
LineServicing(commontoseverallines)
Hourly
Controlled
People
A person whose hours have to be budgeted and recorded at the level of

individual tasks, jobs, activities, process orders, work orders etc. This budgeting
and recording may be required for costing purposes, for statistical purposes, or
for any other purpose.
Non Hourly
Controlled
People
A person whose hours do not have to be budgeted nor recorded at the level of
individual tasks, jobs, activities, process orders, work orders etc. The costs for
these people are either dedicated completely to a given cost centre, or
apportioned according to a % basis among several cost centres. This includes
managers, supervisors and administrative staff.
Production
Labour
This labour corresponds to the labour required in the Main Cost Centres, that is
to say the labour used for production activities. It can be classified into two
categories: Non-Proportional Labour and Proportional Labour.
All Production Labour, irrespective of whether it is proportional or nonproportional, is classified as a variable cost in the Income Statement.
Budgeted
Labour
This term designates the labour required in the Auxiliary Cost Centres, i.e. the
labour used for support activities as opposed to production activities. Examples
of such support activities include QA, material handling, maintenance and
laboratory.
Budgeted Labour is always classified as a fixed cost in the Income Statement.
GI-21.908, 12/2012
30/39
Labour Standards, Continued

Proportional
Labour
These labour hours are directly related to the running time of the line. For this
reason, in GLOBE terminology, Proportional Labour is called Runtime Labour
and is considered to be variable in relation to the length of the production run.
Proportional Labour includes all activities during the Occupied Time not covered
by Product Related Changeover Labour and Line Servicing such as:
- The actual production time for the product
- All unplanned time losses including unplanned stoppages (breakdowns,
process failures, machine / process waiting), speed loss and losses related
to rework and waste.
Proportional Labour is controlled through labour standards in the master recipe.
NonProportional
Labour
These labour hours are not directly related to the running time of the line. They
include several categories of labour activities:
- Product Related Changeover Labour
- Line Servicing specific to one line (Labour)
- Line Servicing common to several lines (Labour)
Product
Related
Changeover
Labour
These labour hours relate directly to the product changeover for that specific
product. The product changeover is a fixed time period; hence it needs to be
separated into its own category, so that it remains a fixed duration, independent
of the production run length15.
Line Servicing
These labour hours are strictly related to the line (i.e. they are neither influenced
by the production volume nor the number of product related changeovers).
Line servicing is the labour utilized for Line Related activities as well as labour
activities such line monitoring and other activities that may be performed during
the production cycle. See Costing Standards for Manufacturing for further
details.
Line Servicing
specific to one
line
This is line servicing that is specific to a given line.

Examples of line servicing activities specific to one line include:
- A format change performed after several products
- A set-up performed at the start of the week for several products
- The start-up of a production run
- A cleaning performed after several products
- A line that stops for meal breaks or meetings
- Line monitoring for a specific line
15 It is still treated as a variable cost that makes up the total labour requirements.
GI-21.908, 12/2012
31/39

Line Servicing
common to
several lines
This is line servicing that is common to several lines.
Line servicing;
Notes
1. Line monitoring; these activities are usually performed by line mechanics.

They include any line adjustment and maintenance performed on a
production line while the line is manned for the purpose of production. If the
adjustment or maintenance is performed while the line is not manned for the
purpose of production, the time spent on this intervention is not classified as
"Line Monitoring" but as "Maintenance" and classified as "Budgeted Labour".
Examples of labour activities classified as Line Servicing common to several

lines:
Line monitoring*1 (only if common to several lines. Otherwise, report
under "Line Servicing specific to one line")
Sampling (only if the persons report to the Production department and
not QA department)
Material Handling (only if the persons report to the Production
department and not Warehouse department)
Line supervision*2 (only if the persons are Hourly Controlled)
2. Line supervision involves performing administration for the production lines

and taking part in meetings with the Production Manager. This activity is
normally performed by a dedicated, Non-Hourly Controlled person. In this
case, it is classified as a fixed cost.
In some instances though, an Hourly Controlled person may perform supervision
in addition to other line activities, either occasionally, or on a regular basis. In
this case, the time spent by this person on line supervision is included under
"Line Servicing common to several lines ", and it is classified as a variable cost.
Line Servicing activities must always be linked to the production cycle; else they
are treated as indirect costs (not labour). In particular the following activities are
excluded:
Training, Meetings, Day to Day cleaning of washrooms, periodic cleaning of
production areas (windows, tanks, pipes, etc.).
Note
In some factories, a person may be classified as "Non-Hourly Controlled" while

in other factories, a person performing the same function, may be classified as
"Hourly Controlled Budgeted Labour". For example, in a given factory, a boiler
operator may be classified as "Non-Hourly Controlled" because he is fully
dedicated to the cost centre "Steam" and Management does not wish to know
how much time he spends on his various tasks. However, in another factory,
Management may require this level of detail, even though the boiler operator is
also fully dedicated to the cost centre "Steam". In this case, the boiler operator
would be classified as "Hourly Controlled Budgeted Labour".
GI-21.908, 12/2012
32/39

Examples of Labour Classification
Task
Proportional
Product rel.
var. time
(Runtime)
Good Production
Time
Unplanned
Stoppages incl.
Breakdowns &
Minor Stoppages
Speed (Rate) loss
Quality loss
Meals / breaks if
the line stops
Training /
Meetings
Changeover
- for a specific
product
Changeover
- for a group of
Products using
the
same
format
Start up /
Shutdown for a day
Set up at the start
of week
Planned
Maintenance
Cleaning end of
day
Cleaning - end of
week
Change roll every
10000 repeats
Sampling
Non-Proportional
Product
Related
changeover
Line
Servicing
specific to
one line
Indirect
Costs
Line
Servicing
common
to several
lines
Labour
Standards,
Continued
x
x
(if reporting to
Production)
Material Handling
(if reporting to
Production)
x
x
x
x
x
x
x
x
x
x
(if specific to
a line)
(if common to
several lines)
(if specific to
a line)
(if common to
several lines)
Building Cleaning
(i.e. windows,
overheads, floors, walls)
Line Monitoring
(excluding maintenance
performed on the line
while it is not manned)
Line Supervision
(if specific to
a line)
(if common to
several lines)
(Only if the persons are

hourly controlled)
GI-21.908, 12/2012
Definition of
Labour
Standards
33/39
Labour Standards are a collection of key operating data for a specific line, a
specific product (or group of similar products) and a specific production version.
They are established for Production Labour. They provide basic data for
production planning & scheduling and costing.
The labour standards include:
Proportional Labour:
- Expected Crew Size.
This is the expected crew for the line when it is running with the nominal
speed. Proportional labour is always based on 1 hour of production and is
thus linked to the line standard.
Product related Changeover
- Expected labour hours to carry out the product related changeover.
Line Servicing specific to one line:
- For each activity linked to the line:
-Expected Crew Size.
-Expected Duration and Frequency of the activity (in relation to the cycle).
-Expected Labour Hours to perform the activity.
(Expected Labour Hours = Expected Crew Size x Expected Duration x Expected
Frequency).
- Line monitoring (if specific to one line).

Line Servicing common to several lines:
- Other common labour used for a number of lines such as line monitoring.
Reference
Refer to "Costing Standards for Manufacturing" for more details on labour

classifications.
GI-21.908, 12/2012
34/39
Production Versions
Overview
The Production Version determines the different ways of manufacturing a

product. For example:
-
A given product might be manufactured on different lines.
A given product might be manufactured on a given line but with different

operating set-ups and with different manufacturing standards (e.g. when a
line is composed of machines occupying a position in parallel with other
machines, the line might have several operating set-ups corresponding to
different machine combinations).
A given product might be manufactured according to a slightly different Bill

of Material (i.e. variants / alternatives of a BOM).
In case of "seasonality", a given product might have different

manufacturing standards (e.g. different production cycles, different shift
patterns, different Reliability % for a spray dryer (dry season vs. wet
season)...).
The Production Version consists of the Master Recipe and the Bill of Material
(see below). When a given product has several Master Recipes, it is necessary
to develop multiple manufacturing Standards (i.e. Labour Standards,
Raw/Packaging Material Standards, Energy Standards, Line Standards) for the
various scenarios.
ProductionVersion1
MasterRecipeChickenLasagnaproduction
MaterialBOMChickenLasagna10x600gr.
Recipe1
BOM
Product
Version
update
It is critical for proper production and capacity planning that any foreseen
change in operating conditions (e.g. Nominal speed) are timely reflected in
GLOBE through updated Product Versions.
Example: if in May of the current year there is an understanding that the line
will be modified in March next year, the current PV should be kept valid until
March and a new one should be created with validity from March on (the actual
data of the switch can be updated as the project progresses).
Bill of Material
(BOM)
Complete list of components that make up a product or semi-finished product

together with the Material Usage Standards of each component.
The list contains the material number of each material together with the
quantity, unit of measure, designed waste conversion factor, and component
scrap (expected loss).
GI-21.908, 12/2012
35/39
Production Versions, Continued

Master Recipe
The Master Recipe describes the production of one or several finished goods or
semi-finished goods in a production run. The Master recipe contains all product
related standard information (except the Material Usage Standards mentioned
above (BOM)) required to be able to plan, cost, execute and control a
production run.
The Master Recipe includes the required lines together with the line, labour and
energy standards for each operation. The master recipe is based on a runtime
of 1 hour.
GI-21.908, 12/2012
36/39
Example
Product
Number
Desc
Nr
00150010
Pr. A
0010
00150010
Pr. A
0020
00150010
Pr. A
0030
00150010
Pr. A
0040
00150010
Pr. A
0050
00150010
Pr. A
0060
Production Version
Description
Line 1 / set-up 1 / BOM 1
(without rework)
(with rework)
(without rework)
(with rework)
Line 2 / BOM 1 (without
rework)
Line 2 / BOM 2 (with rework)
Master
Recipe
BOM
001
01
001
02
002
01
002
02
003
01
003
02
GI-21.908, 12/2012
37/39
"Standards Sheet" Template

Introduction
The Standards Sheet is a template used to establish and document the various
manufacturing standards as well as other relevant information.
There are 4 different tabs within the worksheet
Overall Objective. This aims to provide the link to the Loss Tree and
Operational master Plan to establish the overall objectives in terms of Reliability
and its losses for all the standards of the line.
Line Related to detail the time that is related to the line (not specific to the
individual SKUs).
Product Group A, B, C for information specific to the SKUs within a
product group.
Changeover matrix is detailing the changeover times between the different
SKUs on a line.
While the use of the provided template is not mandatory, it is mandatory that
standards are documented and approved. They must be available for
consultation and kept up to date according to the revision guideline (see pag.
34).
Top Section
This section features various information such as the name of the factory, the
Cost Centre and the production line which the Standard applies to.
Overall
Objective
This worksheet summarises the time losses for the line, into the machine loss
categories of Planned Stoppages, Unplanned Stoppages, Speed losses and
Waste & Rework.
Line Related
Standards
Sheet
This worksheet summarises the information that relates to the overall line. It
includes the typical production cycle for the line, the line related losses and
labour hours.
Changeover
Matrix
The changeover matrix is documented in this section. This information should be

loaded into APO in GLOBE (if the changeover matrix is used for these SKUs).
The product related changeover time from the changeover matrix will then be
used in the APO planning system. This changeover matrix allows APO to
accurately take into consideration the changeover time from one SKU to another.
The changeover matrix is also used in SAM when the changeover performance
functionality is used.
GI-21.908, 12/2012
38/39
Standards sheet Template, Continued

Product
Related
Standards
Sheet
This section gives the Standards that have been established for a group of
products. To combine a group of products, the following information would
normally be the same across the group of products:
Crew Size
Nominal Speed and Bottleneck Machine
Product Related Changeover Time
Energy Standard (per machine hour)
Nominal Speed and Changeover Time would normally be the same, but could
differ. When they differ, each set will need a separate Master Recipe.
The following variables may be different for each product:
Costing Lot Size
Line Efficiency16
Single and
Multiple
Standards
When a given product has several Production Versions (i.e. different ways of
manufacturing this product), it is necessary to develop multiple Standards for the
various scenarios.
Seasonality
In case of "seasonality", it is also necessary to develop multiple Standards for the

various scenarios.
For instance:
- Since many operations experience "seasonality patterns", there could be
more than one production cycle and shift pattern employed at different times
during the year.
If the speed varies during the year, due to climatic conditions (e.g. spray dryer dry season vs. wet season) or other reasons (e.g. learning curve for new
equipment), maintain Line Nominal Speed at the optimum and adjust the
Expected Line Efficiency to reflect the line speed reduction. The expected Line
Efficiency can therefore vary over time.
Standards
Revision
Part of the routine is also to ensure that the Standards are up-to-date. The
Standards should be revised if changes or modifications occur with the
equipment, the products, the crewing, the line organisation... and at least once
per year, even if no obvious change occurred.
The information in the loss tree for the major losses (Planned Stoppages,
Unplanned Stoppages, Speed losses and Rework / Waste) can be used as a
basis for reviewing and developing the line standards for the following year.
16 A new master recipe will need to be established for each different % Line Efficiency.
GI-21.908, 12/2012
39/39
Standards sheet Template, Continued

Typical
Production
Cycle
This is the duration of the average manufacturing period for this line. The cycle is
especially important for the definitions of the line related activities. The line
related activities will be spread over the products based on the cycle definitions.
In many cases the Typical Cycle can be 1 Week, with the Occupied Time
calculated according to the production schedule defined for that product i.e. 2
shifts 5 days (80 hours), 3 shifts 6 days (144 hours), etc.
The Typical Cycle can also be 24 hours or a number of days.
It is necessary to check that the typical cycle defined in the line standard
matches the required time for the expected production within the cycle i.e. that
the production volume for the cycle, the line related loss, the product
changeovers and the expected Line Efficiency all combine to fit within the defined
cycle duration.
Depending on the type of manufacturing operation, the cycles may be
reasonably fixed (i.e. chocolate or beverages) while others may be fairly flexible
(i.e. dehydrated culinary).
All factories will have some line related activities that occur at a reasonably
typical frequency, and these need to be captured accurately in the line and labour
standards. Typical activities will include Set up, Weekly cleaning and Format
Changeovers.
Labour
Standards
In the Labour Standards section, two Labour categories are defined:

- Proportional Labour; these labour hours are directly related to the running
time of the line. For this reason, in GLOBE terminology, Proportional Labour
is called Runtime Labour.
- Non-Proportional Labour; these labour hours are not directly related to the
running time of the line. It can be split into:
o Product Related Changeover Labour: Labour Hours associated
with the product changeover. This is a fixed duration; hence it is
separated from the variable component.
o Line Servicing specific to one line (Labour): Labour hours
associated with activities that are general to the line (e.g. set up,
end of week cleaning)
o Line Servicing common to several lines (Labour): Labour hours
spent doing activities common to several lines (e.g. line
monitoring, special cleaning)
Refer to Labour definition under the Labour section for more details.
Preparation
assist
GI-21.908
Manufacturing Standards Template.xlsx
GI-21.908, 12/2012

Guia Lab

Cargado por

Información del documento

Título original

Derechos de autor

Formatos disponibles

Compartir este documento

Compartir o incrustar documentos

Opciones para compartir

¿Le pareció útil este documento?

¿Este contenido es inapropiado?

Copyright:

Formatos disponibles

Guia Lab

Cargado por

Copyright:

Formatos disponibles

Identification

Manufacturing Standards for Costing and Planning

Yellow Class/for Internal Use

CO-Manufacturing & Operational Excellence

This document contains the information on Manufacturing Standards

This instruction is valid for all Markets/Businesses/Categories.

GI-21.010 Performance Measures for Manufacturing

Industrial Performance at Head Office and Factories

Continued on next page

Standards are reference values, established for:

Which standard is mandatory?

Raw / Pack Material Standards

2 levels of standard values can be defined:

In the following chapters, when a standard is said to be "product specific", this

Raw / Packaging Material Standards

Theoretical quantity of raw / packaging material required to be input into a

2 Previously called Target Material Usage.

Raw and Packaging Materials, continued

Expected quantity of raw / packaging material required to be input into a process

Expected total quantity of raw / packaging material lost including:

Product format: 6 x 1kg Cans (i.e. 6 cans in a shrink wrapped tray)

= BOM qty + Component Scrap

6000 + (2%) x 6000 = 6120

Note that in the

example, only semi-finished material is shown.

Raw and Packaging Materials, continued

Hypothetical quantity of raw material or semi finished goods required to be input

4 This was previously called Zero Loss Material Usage.

Raw and Packaging Materials, continued

To obtain 1000 KG of sauce, the manufacturing process requires that 725 KG of

Designed Zero Loss Material

Zero Loss Material Usage

Expected Material Usage

= BOM quantity + Component

400 X 0.44 = 175

725 + (3%) x 725 = 747

Quantity of output generated from a production process (e.g. semi-finished,

Energy Standards, continued

Determining the energy usage for individual equipment at various steps in a

Expected Energy Usage

A line is a production operation consisting of one or more machines, processes

Continued on next page

6 Guideline to align SAM and AMM in Manufacturing intranet

Line Definition, Continued

Line Definition, Continued

The following rules are given as guidelines:

Lines should be able to operate, for an extended period of time, independently

Continued on next page

Line Definition, Continued

The concept of multi-resourcing was developed by GLOBE to improve the

A line consisting of multiple machines that behave identically (i.e. the

Line Definition, Continued

This is a diagram of a confectionery manufacturing and packing process. It

Resource Y = 5 Capacities, Nominal speed of each capacity = 200 CS/H

Nominal Speed is defined for each machine and product combination11.

Machine 1 Nominal Speed

Machine 2 Nominal Speed

Machine 3 Nominal Speed

Machine 4 Nominal Speed

Machines 3 Nominal Speed

Line Nominal Speed

9 In GLOBE terminology, Nominal Speed is called Base Quantity per Hour.

Nominal Speed, Continued