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(+)+(+) The Lean Changeover e-letter
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(+)+(+) Written by John R Henry, CPP
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### NOVEMBER 2006
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NOW AVAILABLE-A NEW EDITION OF "MY LIFE AND WORK" by HENRY FORD WITH AN INTRODUCTION BY JOHN R HENRY
Click here to order
http://www2.xlibris.com/bookstore/bookdisplay.asp?bookid=32476
SOME THOUGHTS ON...
QCOP
So what exactly is QCOP? It comes from the title of a special report by Brian Wagner and myself titled “Quick Changeover Packaging” The report has just been published by Packaging World magazine. Visit www.packworld.com/qc to order a copy.
OK, so what is Quick Changeover Packaging?
QCOP encompasses 2 areas: First is the operational area that most here are familiar with. That is the daily line changeovers to convert from one existing SKU to another. This is what we normally have in mind when we talk about “changeover. However, there is another changeover that is equally important. That is the more infrequent changeover from one package or product to another. An example of this was Folger’s Coffee’s change from metal cans with a seamed lid to plastic containers with a snap lid. My first thought, when I was asked to co-author the QCOP report was that these two types of changeover were apples and oranges. As I thought about it and started to get into the project, I realized that they were really two sides of the same coin and tightly intertwined.
Many products used to be standardized. The consumer had to take what was offered. Henry Ford was the epitome of this with his statement "Any customer can have a [Model T] painted any colour that he wants so long as it is black." (Buy his groundbreaking book “My Life and Work” at https://xlibris.com/bookstore/bookdisplay.asp?bookid=32476 to learn more)
Some here may be old enough to remember when Coca-Cola came in only a single flavor and a 6oz glass bottle. This is no longer the case. We as consumers now want what we want, how we want it, when and where we want it. Woe betide the producer who is unwilling to provide this level of choice. If Brand X will not supply it, Brand Y will.
Nor is this plenitude of choice enough. We want it cheaper too.
There are a number of reasons why consumers are now demanding almost extreme levels of choice. One reason is that we can. Another is the proliferation of marketing channels. Folger’s coffee used to be sold mainly in supermarkets. Now it is sold in supermarkets, hyper/super stores, convenience stores, warehouse/club stores, dollar stores and other venues. Each has its own quirks. Warehouse stores want multi-packs sold from pallet displays. Supermarkets want singles to display on a shelf. Dollar stores want a special size that permits them to sell at a dollar pricepoint. Finally, the folks in marketing want to break out of the clutter of competing products. One way to do this is to offer a package and product that can be perceived as offering unique value to the consumer.
This is why you are doing so many line changeovers. Not to be a pessimist, but it is not going to get any better in our lifetimes. In fact, most of you can expect to do more changeovers each year rather than fewer.
Line changeover is a recurring task and can (or should) become routine. It often occurs daily or even more frequently. Product changeover eg; the Folger’s example, is rarer. Line changeover is driven by production schedules and the plant operating team. Product changeover is driven by marketing and package design people.
Too often, in my experience, these two groups view line and product changeovers as separate issues. They frequently have little or no communication between the two groups. This is a recipe for disaster.
ITEM-One manufacturer of hearing aid type batteries produced about 800 SKUs. The problem was that the cards on which they were packaged were 2 different sizes, one about 1/8" longer than the other. This caused hours of downtime daily in the plant.
ITEM-The package development team at a liquor company designed a commemorative bottle with an inverse taper. The first time the plant people saw the design was when 50,000 cases arrived on the loading dock. It could not run on existing lines because of the taper.
Many of you will probably have had similar experiences.
In addition to a multiplicity of SKU’s the product design is constantly changing. These changes are driven by such things as cost cutting, environmental friendliness and new packaging materials and technologies, to name a few. They are also driven by a need to make the product stand out in the clutter of competing products and capture the buyer’s mind share. In the report we quoted Roger Van Dusen, senior packaging engineer at Bacardi Global Manufacturing Americas, who said “We look to
change our packaging every two years. A few years ago, we changed it every
seven years,” Bacardi is neither alone nor even in driving this trend.
This frequent introduction of new or modified products needs to be coordinated with manufacturing and packaging. As noted above, minor changes in design can have a tremendous impact on line efficiencies. Designers need to discuss this with manufacturing early on in a project before getting locked into an inefficient design. Manufacturing, which generally has a large say in line design and equipment selection needs to know what the designer’s future plans might be. These might not be specific plans, the designers might not even know. But if manufacturing knows that additional changes are anticipated and something about what they might be, it will help in machine selection. If a product will be unchanged for 5 years, it might make sense to purchase highly efficient, but less flexible, equipment to run it. If a number of changes are anticipated in the next 5 years, more flexible machinery will be the way to go.
Careful coordination will also make a tremendous difference in the change from old to new. Poor coordination will almost guarantee cost over runs, stress on people and machinery, production and quality problems and, possibly, even backorders. Good coordination will make the transition as painless as possible.
Like it or not, line changeover and product changeover are closely tied together. Lines must be designed with flexibility in mind to assure that future products can be accommodated. Products must be designed with plant capabilities in mind to assure that they can be produced quickly and economically. This is not to say that product design must be slavishly tied to existing lines. Product design is and must continue to be market driven. It is to say that line capabilities must be considered. Sometimes a simple tweak to a product will mean the difference in running it on an existing line with little capital cost and quick introduction or the need to purchase a new line which not only incurs capital costs but can delay the introduction by months or even years.
Product and line changeovers are inseparably linked and this must be recognized be all concerned.
The QCOP report may be ordered at www.packworld.com/qc
My co-author Brian Wagner is with Packaging & Technology Integrated Solutions LLC. Visit their website at www.pti-solutions.com
I would particularly like to acknowledge the giant role that Jim George of Packaging World played in editing this report. His assistance, suggestions and particularly editing was invaluable in creating a truly world class report.
TIP OF THE MONTH...
TENNIS BALLS
It is always amazing what you can learn just by keeping your eyes open. Last week I was at PackExpo. Wednesday afternoon I was hanging out in the lobby waiting for someone. While there I saw a concierge cleaning the floor of scuffmarks. You would think that in a place like McCormick they would have a very high tech way to do this but they don’t. They have a better way instead.
It looked like a standard tennis ball with a hole cut in it and stuck on the end of a broomhandle. It seemed a bit strange to me so I asked. Turns out that is exactly what it was. He used no cleaner or anything else, just the tennis ball. He showed me how it worked and it looked like magic.
So, this month’s tip is about as mundane and low tech as you can get. A tennis ball on a stick. It may be useful in other applications besides scuff marks. But even if it is not, it is still a neat trick to know.
It is also another example of the things you can see just by looking around. Don’t turn your mind off just because you have left work.
John R Henry CPP
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