Category Archives: Maintenance

Shift Schedules for the Food Manufacturing Industry

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Shift work – The more you learn about it, the more you find out how much you didn’t know.

I have friends that know very little about what I do for a living.  When I say “I evaluate, design and implement shift schedules,” they will respond with “Aren’t all shift schedules basically the same?”

I will respond with something neutral like “sometimes” and leave it at that.  They are laymen who are not involved in the business of running a business that needs to cover something other than Monday through Friday, day shift.

However, if you are in that business, the business using shift work, then you know what I’m saying when I tell you, “There is far more to shift work than schedules.”

To this end, I have decided to write a series of blogs that talk about how shift work varies from one industry to the other.

I will start with the Food Manufacturing Industry.

The one thing that sets the Food Manufacturing Industry apart from all others is the need to sanitize.  Depending on the nature of their product and process, this can mean shutting down weekly or even daily for several hours to clean.

Most companies over-clean.  They do this because their shift schedule makes them do it.

Over-cleaning creates overtime.  It increases costs and eats into valuable capacity (it’s not unusual for a food production line to cost well over $10 million.)

How does the schedule make them do this?

Following a typical growth pattern for most industries, they handled expansion through a combination of capital acquisition and the addition of afternoon and night shifts.  They plan for 5-day operations and base their capacity on that.

Now, let’s take a 3 typical sanitation requirements and see how a schedule affects them.

  1. You must clean when you shut down.  This requirement has nothing to do with periodicity.  So, if you shut down every day, then you must clean every day.  If you shut down once a week, then you must clean once a week.  If you never shut down, then you must never clean due to this requirement alone.
  2. You must clean when you change products, especially if allergens are part of the equation.  If you are running, for example, 5 lines Monday through Friday and you need to convert one of the lines over to peanut-free, then you must shut down that line and clean it.  This takes that expensive line out of the production mode which means (assuming you need the production) either weekend work or the need to buy more capital.  If you had an idle line, you could simply set up that line and then shift to it when needed.  A better schedule can make this happen.
  3. You must shut down based on a biological emergence rate.  Bacteria become a hazard in a very predictable time frame based on conditions.  The same is true for a number of other pests. The schedule being worked has no impact on this.

Let’s suppose that in you operation, you are running 7 lines for 5 days.  This means you are using 35 line-days a week.

Suppose you went to running 5 lines for 7 days a week.  This still gives you 35 line-days a week.  However, this also addresses the first two issues above.  Running 24/7 on a line means you no longer have to clean a line weekly just because you are shutting down weekly.  It also frees up other lines so you can switch from one line to the other without experiencing lost production time.

So, just looking at sanitation alone, we can see that just changing from 5 day operation to 7 day operation can save capacity and eliminate over-sanitation.

Freeing up extra lines also allows maintenance to work on equipment without having to wait until the weekend (where they now try to do a week’s work in 2 days.)

Freeing up extra line also allows you to do setups on one line while the other line is running.  You can then shift to the newly set up line without losing production.

Does this mean that you should be running your operation 24/7?

It’s never that easy.  Food Manufacturing has a lot of moving parts, schedule-wise.  Sanitation aside there is also seasonality, new product introduction etc.

The best schedule is one that carefully considers everything from both a business and an employee perspective.  Every industry is unique.  Every company is unique.  Every facility is unique.

It should not come as a surprise that every shift work solution is unique as well.

My name is Jim Dillingham.  If you have any questions, please call me at (415) 265-1621 or send me an email at Jim@shift-work.com.

How many people does it take to staff your schedule? (Part 2)

Facebooktwittergoogle_plusredditpinterestlinkedinmail

There is a short answer and a long answer to this question.  Here is a link to the short answer.

Now for the long answer:

Take a look at the “short answer” in the previous blog post.  That is a good place to start.

The following should be considered to refine the number you get using the “short answer”:

  1. The cost of full time labor matters.  How much does it cost you to pay someone for an hour of straight time?  How much does it cost you to pay for an hour of overtime?  I am not talking about “how much an employee receives.”  I’m talking about cost-to-the-company.  If you do the analysis correctly, you should find that the two costs (overtime and straight time) are within 10% of each other.  This is important because the amount of overtime you use will play a big factor in staffing levels.  For a fixed workload, the higher the overtime, the lower the staffing level you need.

  2. How much training does it take to qualify an employee for a position.  It is likely that there is a wide variance on this with regards to different positions.  Do Not use and “average”.  If you need an astrophysicist and a box stacker, an average will give you a bad number (4 years of post-graduate study for the physicist and 5 minutes for the stacker = about 2 years, on average, to train an employee).  Long training times lead to an increased use of overtime and less reliance on other labor options such as temporary help.  If your workforce is staffed with highly  skilled people, whose skills are easily transferable to another nearby company, then you will have to bend a more towards compensation scheduling and employee preferences for overtime so as to not lose these people.

  3. How variable is your workload?  If your workload level is flat, you will still have some fluctuations in staffing as people are on vacation or FMLA etc.  When staffing fluctuates, you have have extra staffing available or you can use overtime or you can reduce production.  Cost, degree of variability, employee preference and the nature of your operations will all play a role in determining how you staff for variability.   Its worth noting here that the most expensive option is to over-staff or staff for peak production as this leads to frequent over-staffing which is costly. A highly variable workload tends to mean lower staffing and higher overtime.

  4. How available are alternative sources of labor?  It your workforce pro-overtime or overtime-adverse?  Is temporary or part time labor available? If you are in Memphis and need temporary, highly skill forklift drivers, there are temp. agencies that can give you all this type of labor that you want.  However, if you need those same temporary skill in San Francisco, you may need to “grow your own.”  Can you scale back with seasonality by using shorter work weeks or voluntary layoffs?  Note: If the answer is no, the staff to the lower end and use overtime when things get busy.

  5. What about support activities?  Things like maintenance, engineering, quality shipping/receiving and administration all need to be staffed appropriately as you grow (or shrink).  There is no simple formula for how to staff these as there is often not a “straight line” relationship between staffing numbers in operations and staffing numbers for support areas.  For example, a 30% increase in operation staffing does not mean you need 30% more CFO’s.  In some areas, you may actually find that you need fewer support staff.  For example, maintenance struggles to fix everything on the weekend but if you go to a 24/7 schedule, maintenance can now take place any time in the week; including weekdays where it can be performed more efficiently.

  6. Are you LEAN?  It’s “old school” to think you should stockpile between cells in a value stream ensure you never run out of product either upstream or downstream.  Instead, just-in-time is what modern operations strive for.  Many companies can maximize or throttle production using staffing alone.   This may mean you staff an area below its maximum capacity to enure it does not outrun its value stream neighbors.

  7. What is the opportunity cost of lost time?  This must be a consideration if you are going to staff with as few people as possible.  You may save a lot of money by having fewer maintenance specialists but then you might lose even more money if you suffer downtime because you are understaffed.

Staffing is at least as important as that next piece of equipment you are considering.  The right number of the right people will impact your cost structure at several different levels.  It will impact labor costs.  It will impact quality.  It will impact volume.  It will impact turnover and absenteeism.  It will impact your ability to respond quickly to your customers.

If you have any questions, please give me a call.

Jim Dillingham, Partner

(415) 265-1621 or Jim@shift-work.com

Scheduling Your Maintenance Crew on a 24/7 Operation

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Before a company goes to 24/7 operations, they typically reserve the weekend for much of their maintenance work – run the equipment on the weekdays then shut down and fix everything on the weekends.

When a plant shifts to 24/7 operations, the first thought of maintenance people is “Where do we go now?”  The weekend, their one time to do maintenance, is being taken up by production.   Is this the end of preventative maintenance?  Will maintenance now be restricted to small windows of opportunity such as line changeovers?  And the biggest question is “How will we schedule maintenance people when we no longer know when we will have access to equipment?”

The answers to these questions are much simpler than most people anticipate.

To get to these answers we first need to break down maintenance into its three main components: (1) Corrective Maintenance, (2) Preventative Maintenance and (3) Project work.  I will cover all three of these, and then use an example at the end.

Corrective Maintenance

On a 24/7 operation, everything is running all of the time.  While there are plenty of exceptions to this (change-overs, sanitation etc.) we’ll consider production to be spread uniformly across all hours for this discussion.

Since corrective maintenance is not “scheduled”, it can be nearly impossible to predict with any accuracy.  Therefore, we should consider an “event” requiring corrective maintenance to be random.  That is to say, it is equally likely to occur at any time during the week.  Under this type of condition, it is best to spread your resources around equally.  From a corrective maintenance perspective, it makes no sense to staff differently on Saturday afternoons than on Wednesday nights.

When it comes to staffing levels, you will have to take into account things such as: (1) the likelihood of something breaking down, (2) the opportunity cost of delaying a repair (3) the cost of overstaffing when those people could be used more effectively elsewhere and (4) the availability of additional resources through callouts.  The mistake most people make is to overstaff the corrective maintenance crews.  They need to realize that they will never have enough people to always ensure there are enough people to handle every possible contingency.  It is better to have an effective plan for augmenting your crew in an emergency.

Preventative Maintenance

This is actually easier to do on a 24/7 schedule that on a 5-day schedule.  On a 5-day schedule, you are essentially committed to “pit stop” maintenance.  You only have a very little window to fix everything so you throw all of your resources at it during that time.  Hopefully, you get enough things fixed so the plant can run well the next week.

On a 24/7 schedule, you still have maintenance to do, but you no longer have to do it all on the weekend.  Now you can spread it out during the week.  As a maintenance person, you’d rather do preventative maintenance during the day shift on weekdays.  Not only is this the preferred schedule for your people, it is also when you have the most resources available.  On Monday through Friday day shifts, you will have greater access to vendors, parts suppliers and engineers.

This all points towards scheduling as much preventative maintenance as possible during Monday through Friday day shift.  Of course, there should always be preventative maintenance assigned to other shifts throughout the week so maintenance people will be productive if there is no corrective maintenance needing their attention.

Project Work

Project Work is like preventative maintenance in that it is best done during the weekdays when the most outside resources are available.  Unlike preventative maintenance, project work often requires several consecutive days or weeks of work to be accomplished.  It is best started, maintained and completed by the same people to minimize any loss of information during turnovers between crews.  To do this, you will want to use 8-hour workdays where the project people come to work and advance the project every day, five days a week.

Sample

rsz_slide1

You will notice that the top schedule uses 18 people.  It is most heavily staffed on the day shift.  The three people on the night shift is a “signal” as to what the minimum acceptable staffing should be at any time.

Most companies that go to a 24/7 schedule will take the top maintenance schedule and just throw it away.  They think that going from a 3-crew schedule to a 4-crew schedule means that everyone will go to the new schedule and that they need to add 33% more people. In this instance, that would mean a total staffing of 24 maintenance people (6 up from the original 18).

The reality is that maintenance is about to become more, not less efficient.  Because of this, an increase of 33% does not make sense.  (Note: most maintenance crews feel they are understaffed. While they may be right, my point here is that the schedule itself should not require an additional 33% staffing)

In the second schedule, I use 3 people as the minimum needed for corrective maintenance.  I create a 4-crew 12-hour schedule and put 3 people on each of these crews.  I then add 1 additional person and put a total to 7 people on the Monday through Friday schedule. These will be my preventative maintenance and project people.  Where did I get the number of “1” for how many extra people I need?  The original schedule shows that they are using 10 people on the day shift Monday through Friday.  By putting 7 people on the Monday through Friday and adding the three that will also be there because of the 24/7 schedule, I end up with the 10 people I need.

Now, there will be overtime.  Things will break down and people will have to be called it when it gets too bad.  However, that is the nature of the beast if you have chosen a career in maintenance.  The good news is that most weekends will now be freed up and most maintenance will take place where the most resources are available.

If you’d like to speak to one of our experts about your maintenance schedule, give us a call at (415) 763-5005.