16th International Conference of the TOC Practitioners Alliance - TOCPA

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April 23, 2015 Johannesburg, South Africa

16th International Conference of the

TOC Practitioners Alliance - TOCPAwww.tocpractice.com

DBR Implementation in Long

Touch Time environment

Loubser de Kock, SABN, South Africa23rd April, 2015

16th International Conference of the TOC Practitioners Alliance - TOCPA

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Loubser de Kock

Born 1965, Stellenbosch, South AfricaMatriculated at DF Malherbe High School, PortElizabeth, in 1983.Graduated with a B. Eng - Electronic Engineering atUniversity of Pretoria, 1988.Software Engineer at Denel Land Systems (LIW)(1988-1996); Saab Grintek Defence (1996 2013);SABN (2013 - )My TOC journey began in 2001 when I did a ProjectManagement Course at University of Pretoria (CE-UP)where I met Philip Viljoen.We met again in 2005 when we implemented CCPM ona very challenging project which we recoveredsuccessfully.I also had the privilege of meeting Eli Goldratt at one ofhis Viable Visions Seminars at Emperors Palace,Kempton Park in 2006.

Contact info:Mobile +27 82 82345743Email gldekockza@gmail.com

Loubser de Kock

16th International Conference of the TOC Practitioners Alliance - TOCPA

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Disclaimer

The views expressed herein are those of the

author and do not reflect the official views of the

SARB Group

16th International Conference of the TOC Practitioners Alliance - TOCPA

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Mission:The SABN is the preferred supplier of banknotes to the South African Reserve Bank and other selected Central

Banks.

Vision:We are an innovative solutions partner for the high

security printing industry.

South African Bank Note

Company (RF) (Pty) Ltd

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Overview

Mandela Note Security Features

Security Printing Background

Steps in Identifying the Constraint

Subordination actions Constraint Support

Production Buffer Management System

Preventative Maintenance Prioritisation System

Delivery Fever Chart (Month, Quarter, Annual)

Challenges

POOGI

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Bank Note Security Features

Feel of the Note Overall crisp feel, substrate, snap

1. Watermark Mandela Face

2. See-Through Perfect Print Registration

3. Micro-Printing - Denomination Numeral in the Animal

4. Unique Numbering Increasing Font Size

5. Raised Printing - Coat of Arms, Words Reserve Bank

6. Raised Printing - Blind People,

7. Security Thread Changes Colour, Embedded in the Note

8. Colour Changing Ink

9. Hidden Image HorisontalNumeral bottom left of animal

10. Little Dots/Circles

1010

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Security Printing Background

Duration to print one Bank Note is 28 days.

Plant is running 1-2 shifts, 5 days a week (16/5)

Production Time Analysis: Total Curing Time of 19 days (Ink to dry before next

process)

Total Machine Touch Time < 1 second

Total Operator Handling 9 days (inclusive - counting, moving, QA, weekend)

Production Ramp-up time - 1 month

Order execution time (1 11 mo).

Security Inks and Substrate long lead times ( 4 - 9 mo)

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Identify the Constraint

Check where work was piling up.

At the last step - sorting and packing.

Calculated the theoretical throughput of the line.

Confirmed we had a Balanced Line

Some Curing Stages had a Physical Constraint

Limited Vault size.

Operator inertia and efficiency was not considered a constraint.

These had to be fixed through improvement programs

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Production Plant Design

Highly Configurable depending on demand!

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Subordination actions

Implemented Symphony on the Stores Supply Chain to ensure reliable availability(Previous Presentation)

Implemented a Kanban system at the constraint

Consumables

Machine Spares

Dedicated Maintenance Crew for Breakdowns

Backup Electricity Supply only for the constraint

Implemented a Drum Buffer Rope system

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Production Capacity Analysis

19 days19 days 7 days7 days

2days2days

RAW MATERIAL

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Buffer Management System

Calculated the buffer limits (BL = RRLT x MC x 1.5)

Choke the Release to control the volume of WIP in the system

Based on orders created a daily demand to drive production daily targets for orders in hand.

Phase denominations in/out as part of the overall buffer. Denomination composition of buffer.

Progressive Priorities per Production Process based on Buffer Level

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Buffer Status Dashboard

01 April 2014 to 30 March 2015 WORK IN BUFFER STATUS

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N1 40.9 59.6 5.9 3.6 25.9 5.9 9.1

N2 0.0 0.4 0.2 0.2 14.8

N5 35.9 52.6 5.0 6.3 9.4 8.0 12.6 2.2 3.6 4.5 2.3 3.6 3.2 1.4 12.6 1.4 11.3 -0.7

P10 17.1 0.0 0.0 0.0 29.2 -5.4

P20 8.3 33.5 5.0 9.0 7.6 0.4 0.2 2.4

TOTAL 85.1 162.8 15.8 19.3 42.9 13.9 22.1 2.5 3.6 4.5 2.3 3.6 3.2 0.2 12.6 1.4 0.2 57.7 -6.1

% BUFFER PENETRATION100%