Extension of S88 Principles to Packaging

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Extension of S88 Principles to Packaging
Andrew McDonald Unilever HPCNA andrew.mcdonald_at_uni
lever.com
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Objectives of this Presentation

• To discuss some business pressures that are
  facing Unilever
• Show how these are being addressed through
  leverage of standards and working collaboratively
  with industrial partners
• Identify some key activities for future work

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Agenda

• Unilevers growth strategy
• Business pressures and drivers
• Manufacturing focus
• Unilevers involvement in the OMAC Packaging
  Workgroup
• Extension of S88 to packaging
• Some ideas for the future
• Conclusions, benefits and recommendations

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Path to Growth Strategy
?Increase revenue growth by
?Increase operating margin by

• simplifying our processes and structure
• driving synergies and efficiencies across the
  supply chain

• using consumer insight to deliver superior
  consumer benefits
• a sharply focused brand portfolio
• new, alternative channels

• WC Manufacturing Program
• Delivered 0.5 billion manufacturing savings per
  annum
• 100 fewer manufacturing sites

• Global Buying Program
• Delivered 1.9 billion buying savings by end 2002

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Manufacturing Musts

• Accelerate product innovation speed to market
• Flawless execution of innovation
• Provide low-cost customisation for consumers
• Continuous improvement of customer service
• Integrated and agile Supply Chain
• Ability to adapt to growing customers needs
• Manage heterogeneous manufacturing facilities
• Changes through acquisition, merger and
  divestiture

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Consequences
Manufacturing Pressures
Increasing complexity and the need to respond to
continual change under pressure to reduce
manufacturing costs
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Manufacturing Focus

• Unilevers process capability is already very
  flexible
• process innovation, application of S88
• Most innovation falls in the area of packaging
• Pack size and shape, labels - Consumer relevant
• carton size, decoration, pallet lay up - Customer
  relevant
• Consolidation of manufacturing facilities has
  resulted in the relocation of packaging assets
• Therefore Current prime focus is packaging areas

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Packing Machinery Issues

• Unilever buys best-of-breed machines from a
  variety of suppliers
• Integration of different machines from different
  vendors can be troublesome and costly
• Moving machines between sites can be difficult
• Standardised solutions which work across industry
  will address these issues
• Collaborative work with a wider group of
  End-Users, OEMs and technology suppliers
• Hence involvement with OMAC
• Capital Equipment included in Global Buying
• Reduce supplier base, work collaboratively, drive
  lifecycle cost reduction

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OMAC

• Open Modular Architecture Controls User Group
• Formed by auto industry in early 1990s
• End-users, Original equipment manufacturers
  (OEMs) and Technology Providers
• OMAC Packaging Work Group
• Comprised of five Packteams
• PackLearn
• PackAdvantage
• PackConnect
• PackSoft
• PackML
• Driving to achieve Plug-and-Pack? capability

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OPW Directly Addresses Business Drivers
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PackML Machine Architecture
Settings
Outputs
Inputs
Machine Controller
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PackML Modes

• Manual Operations
• Jog
• Inch
• Synchronize
• Home

Adapted from S88.01 Modes Definition
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PackML States
Adapted from S88.01 State Model
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PackML Tags

• Formally defined name space a language for
  packaging machinery
• Embed performance related data
• Machine status
• Downtime monitoring
• Fault display
• Enabler to line efficiency calculations (Overall
  Equipment Efficiency) - OEE

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Process Model
PLCOpen/PackSoft Motion Function Blocks
Ref http//www.plcopen.org
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Physical Model

• Packaging Line a Unit
• Packaging Machine Collection of Equipment
  Modules
• Control Modules can be standardized machine
  components eg servo drive

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Product Hierarchy
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Formulation e.g. Body Wash

• Traditional batch manufacturing
• Covered by S88

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Consumer Unit - Bottle

• Bottles
• Caps
• labels

• Front and Back Labels

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Trade Unit - Carton
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Distribution Unit - Pallet
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Conclusions

• Packaging process can be defined in terms of
  standard library of process actions
• Leverage the PLCOpen/PackSoft Motion Function
  Blocks
• Batch of Packaged products analogous to an order
  of n Distribution Units of product
• Packaging Line is analogous to a Unit
• Packaging machines equate to a group of Equipment
  Modules
• Product Hierarchy illustrates packaging and
  process recipes

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Opportunities - 1

• Leverage of digital servo technology, distributed
  networks will facilitate a fundamental redesign
  of packaging machinery - See PackAdvantage
• This could mean modular machines assembled to
  order from machine components drawn from stock
• Business advantages to OEM
• Plus order shorter lead times for end-users
• Reduced lifecycle cost through standards

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Opportunities - 2

• Functionality of such machines can be completely
  flexible and defined by Recipe
• Faster changeover
• More rapid new product introduction
• Higher OEE, better asset utilization
• Production orders can be specified by General
  Recipe
• Production anywhere by suitable qualified
  manufacturers

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Benefits

• Construction of machines from tried-and-trusted
  equipment modules and phases and functionality
  defined by recipe

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Recommendations

• Continue the current proof-of-concept work being
  undertaken by PackML and extend to the
  development of a fully recipe defined packaging
  machine
• Investigate the impact of the new General Recipe
  standard
• Review opportunities to leverage S88.00.02 data
  exchange and XML schema for information exchange
• Develop a blue print for the integration of
  packing line data into enterprise systems through
  the application of S95 models and terminology.
• All of the above can be achieved through closer
  working between the WBF and the OMAC Packaging
  Work Group