Sunday, November 30, 2014

Productivity and Industrial Engineering in Soft Drink Manufacturing


21 October 2014
Coca Coal is expanding its current successful productivity program by targeting annualized savings of $3 billion per year by 2019. This productivity program will focus on four key areas:

• Restructuring the Company’s global supply chain, including manufacturing in North America;
• Implementing zero-based budgeting across the organization;
• Streamlining and simplifying its operating model; and
• Driving increased discipline and efficiency in direct marketing investments.

15 October 2013

During the three and nine months ended September 27, the company recorded charges of $97M and $312M, respectively, related to its productivity and reinvestment program.

The first component of this program is a global productivity initiative focused around four primary areas: global supply chain optimization;
global marketing and innovation effectiveness;
operating expense leverage and operational excellence; and
data and information technology systems standardization.

The second component of its productivity and reinvestment program involves an integration initiative in North America related to  acquisition of Coca-Cola Enterprises' former North America business.

The company has identified incremental synergies in North America, primarily in the area of its North American product supply operations, which will enable the company to better serve customers and consumers.

As a combined productivity and reinvestment program, the company anticipates generating annualized savings of $550M-$650M which will be phased in over time. Coke said it expects to begin fully realizing the annual benefits of these savings in 2015, the final year of the program.

Feb 2012

The company says productivity is a “core pillar” of its “2020 Vision”, which sets out its target to double revenue in the next eight years.

New PET Bottling Plant at Bidadi, India

Five to six people are operating the line and the plant now produces an average of 720,000 x 600 ml
bottles per day. The new line is performing fully as expected: bringing savings in the consumption of energy and water and producing light-weighted bottles.
The new Sidel's line is  flexible.  HCCBPL is currently bottling products in three different formats: 600ml ('on-the-go' size) at an output of 36,000 bottles per hour, 1250ml at 22,000 bph, and the larger 2000ml at 18,000 bph.,-india


The Traditional Channel Productivity Senior Manager

Coca - Cola
The Traditional Channel Productivity Senior Manager is responsible to:

Define the pipeline of DMI productivity projects for the traditional channel

Provide analysis and recommendations to maximize the ROI of the commercial and marketing initiatives to be implemented in the traditional channel

Support the implementation of the DMI productivity initiatives

Promote a productivity mindset in the system

Drive talent development/recruitment for the productivity analysts team

1. Project Pipeline Management (10%)
Identify and prioritize productivity initiatives. Alignment of objectives, reach, and time restrictions with clients and other relevant areas. Lead management routines with key stakeholders to review the status of the projects and the update of the pipeline

2. Provide analysis and recommendations to maximize the ROI of the commercial and marketing initiatives to be implemented in the traditional channel (35%)

Create models to measure the effectiveness of the marketing and commercial initiatives. Prepare business cases and recommendations to optimize the ROI of the initiatives Present business cases and recommendations to the key stakeholders
Define KPI#s to measure the success of the initiatives Provide post analysis and scorecards to follow up the ROI of the initiatives

3. Support the implementation of the initiatives (35%)
Design and implement processes to assure that the preparation of the business cases, analysis and recommendations are align with the market execution requirements. Support with specific analysis and business cases to be presented to bottlers, customers and providers

4. Promote a productivity mindset in the system (10%)
Provide a knowledge management platform containing business cases, recommendations, post analysis and scorecards of
each of the projects

5. Drive talent development/recruitment for the productivity analysts team (10%)

Manage development and carrier plan of the productivity analysts

Pepsi Cola

Process Improvement Engineer

PepsiCo - Cedar Rapids, Iowa
Posted 25 November 2014

Job description


The RTE Process Improvement Engineer is responsible for ensuring productivity goals for current year are met through coordinating existing projects, analyzing current practices and recommending improvements, and tracking cost management activities. In addition, the position is responsible for developing a healthy pipeline of productivity projects for years two and three.


Analyze, identify, recommend and implement methods to reduce waste, inefficiencies and non-value added activities.
Develop annual operating plan, yield, cullage, and fixed budgets for RTE.
Coach and train others on variable labor costs, yields, cullage and fixed budgets.
Facilitate brainstorming meetings with RTE natural work teams and salaried team members for purposes of identifying cost improvement projects. Coordinate the development of timelines and action step accountabilities (RACI charts).
Assist in the development of the RTE capital plans to support the respective business unit objectives.
Manage/lead operational projects.
Coordinate and complete cost studies, providing FOB buildups, impact to fixed budgets, and work with the project study team to identify capital requirements.
Analyze component and total system (process/equipment/ methods) capabilities; identify, develop, and execute improvement opportunities.
Educate department employees on KPI's (key performance indicators) and other business information. Coach and train your work team on the costs of the operation and how their actions can impact these costs.
Demonstrate exemplary problem solving skills; coach and lead others to execute problem solving
Demonstrate good oral and written communication skills through leading meetings, facilitating meetings and preparing written plant communications.
Assist in plant initiatives and direct line supervision as needed.
Coach and lead an Autonomous Maintenance team within the assigned area of responsibilities
Responsible for Centerline Compliance and Minor Stop losses for assigned area. Identifying opportunities and working with AM teams to resolve issues using Focused Improvement Tools.
Leading and facilitating Simple Root Cause (SRC) and 7 Steps
Other job duties as required.
Ensure financial commitments and targets are achieved or exceeded in the areas of operating income and invested capital to ultimately contribute to the net profitability of the RTE business. This is achieved through management of capital plans, cost improvement goals, variable costs, fixed costs (including maintenance), quality, high performance work system development, and other miscellaneous areas.
Develop long range plans, goals and strategies in order to ensure net profitability of the unit using TPM and LSS .
To establish/maintain departmental programs which assure full compliance with pre-established Federal, State, Corporate and Plant sanitation and safety standards.
To establish and adhere to department variable and fixed budgets; to establish and adhere to yield, cullage, and over-pack standards; to direct the department in such a manner to ensure the highest level of efficiency while meeting these budgeted costs and standards; to continue to push the organization to attack leading financial losses.
To keep abreast of new developments affecting the RTE department, including new products, modifications, and processes.


Ten packaging assets
Ten processing assets

TPM - Sustain a culture of continuous improvement
Problem Solving
Lean Six Sigma
Financial Accounting/Analysis
Project Management
Long-Range Operations Planning
Communication Skills

Working Knowledge of:
Industrial Engineering (Methods and Costing)
Labor Relations
Regulatory Requirements
Quality Assurance
Natural Work Teams/High Performance Work System

Minimum Job Requirements :

The RTE department consists of highly automated and complex machinery. The candidate must be knowledgeable concerning sophisticated processing and packaging machinery and materials being used. The RTE Process Improvement Engineer must coordinate daily activities with the RTE Operations Manager, other operating departments, staff groups, and/or suppliers. The RTE Process Improvement Engineer is expected to develop, recommend, and implement productivity improvements.

PepsiCo is an equal opportunity employer and gives consideration for employment to qualified applicants without regard to race, color, religion, sex, national origin, disability or protected veteran status.

Supply Chain Senior Analyst (Industrial Engineer)

PepsiCo - Plano, Texas
Posted 21 November 2014

Job description

Position will be responsible for performing industrial engineering time studies to validate and maintain Warehouse Labor Management System.
Position will update LM system at each site after appropriate time sampling and auditing processes have been completed.
Position will perform floor observations of the work space to analysis the business and look for new streams of productivity
Position will routinely meet with field Business Unit Leaders and shift managers to address and review Labor Management program opportunities.
Position will work closely with field LM experts to address issues, concerns, watch-outs.


Degree in Industrial Engineering is required.
1-3 yrs, Industrial Engineering experience
Experience performing time and motion studies, preferrably in a warehousing environment.
Thorough understanding of warehouse systems and processes.
Ability to influence across different levels of the organization.
Ability to work independently, setting own work plan and priorities.

July 2008

Director of fleet procurement, Pepsi Cola, Pete Silva has helped PepsiCo achieve substantial cost and time savings, including:

Helping produce more than $1.1 million total fleet savings for PepsiCo in 2007 by improvements in purchasing processes across the supply chain.

Testing hybrids in 2005, eventually leading the company to convert its company car fleet to hybrids.

Supporting Frito-Lay efforts to redesign its delivery trucks, leading to significant capital savings over the past two years.

PepsiCo is one of the world’s largest producers of convenience snacks, foods, and beverages, with revenues of more than $39 billion and more than 185,000 employees. The PepsiCo and bottler fleets number more than 48,000 U.S. vehicles.

Productivity and Industrial Engineering in Bottled Water Manufacturing

Simulation and Control of Bottling Plant using First-order Hybrid Petri Nets

Positive Systems: Theory and Applications: Proceedings of the First Multidisciplinary International Symposium on Positive Systems: Theory and Applications (POSTA 2003), Rome, Italy, August 28-30, 2003.

Energy efficiency in Nestle  bottled water plants

Over the period 2005-2010, our energy use per litre has decreased by 22%.

Nestlé Waters has introduced many initiatives to optimise the energy efficiency of its plants, Including :
increasing line productivity,
investing in more energy-efficient machines,
heat recovery,
sharing expertise among the engineering community,
introducing new bottle blowing technologies.
While our production has increased, our energy use per litre has decreased by 22%.


Productivity in Bottle Washing and Cost Reduction

Kolob Water Co. of Cedar City, UT, is a successful marketer of bottled spring water. Kolob’s customers get to have their “own” label on the PET water bottles they give to customers during office visits or at trade shows.

Martin Edgel, company manager,visited Pack Expo Las Vegas 2001 to view the latest technology and acquire it to improve the plant’s productivity. As a result of the show, Edgel purchased a 90-degree transfer turntable, a stainless-steel conveyor, and an automatic bottle washer—all from Accutek Packaging Equipment Co.

The bottle washer operates in a linear fashion. It has 10 rinse nozzles, an automatic bottle-indexing system, and a soft-grip bottle grabber. Photoeyes count the appropriate quantity of PET bottles into the work area. Additional containers are stopped automatically. A gripper arm then inverts the containers over a liquid-recovery basin as sanitizing liquid is sprayed into the bottles to remove any carton dust or particles. A no-clog spray and valve system allows the bottle washer to remain in operation when recycling rinse or sanitizing solution from the recovery basin.

After containers are rinsed and placed back onto the transport conveyor, they’re released from the work area and a new set of containers is indexed in for rinsing. The bottle washer cleans effectively at production rate speeds of up to 45 containers per minute (21,600 containers in 8 hour shift).

Prior to installing Accutek’s bottle washer, Kolob washed all of its bottles by hand.  With the new system installed, Kolob increased productivity by 300%, producing up to 400 cases per day. The manufacturing cost reduced by $1.50 per case.  - Spring 44 bottling solution

Automatic water bottle washing, filling and capping


Portable Water Bottle Production Systems - 125 liters per hour
In an eight-hour session, up to 2,000 bottles of 500 ml size can be filled with a crew of two.
water purified by Blue Spring table-top bottled water production system costs as little as 1/8th penny (US$ 0.0013) per liter of product water.

Norland International.

Norland International, Inc. is your complete source for water bottling plants: complete bottled water production lines, water distillation systems; and related equipment for the water bottling industry, such as: commercial water distillers; carbon filters; ozone generating systems; bottle washers, fillers and cappers; case-packers and shrink-wrappers; and blow molding equipment for PET bottles.
In addition to its quality water bottling products, Norland is known worldwide for its industry-leading customer support, including pre-sale consultation and plant design, and after-sale service, including installation and maintenance.

A project report on mineral water - location at Uruguay - 2011
Pack: 21 months;  IRR: 71.9%

Wednesday, November 26, 2014

Energy Efficiency and Productivity - International Events and Examples



Alliance to Save Energy

250 energy experts, leaders and efficiency champions descended on Capitol Hill on November 20 to discuss and advocate for the Energy 2030 goal of doubling energy productivity by 2030.

Partnering with Efficiency Vermont, Grundfos shared how it increased market penetration for its circulator pumps which are over four times as efficient as traditional pumps.

Schneider Electric underscored its partnership with North Carolina State University that successfully saved that institution $1.5 million by reducing energy usage by 10 million kWh.

The Los Angeles Department of Water and Power plans to meet 45% of its 2025 power needs through energy efficiency and renewables

Massachusetts continues to lead the country in energy efficiency and to meet their goal to reduce energy use 35% by 2020.  On both coasts and in between, speakers emphasized the ability of governments to drive energy efficiency forward.


2013 ACEEE National Conference on Energy Efficiency as a Resource

Massachusetts Most Energy-Efficient State in 2013 with California Close Behind at #2, Mississippi is Most Improved


Energy Efficiency plans of Japan - Japan's Plans on Energy Conservation

Energy-Efficiency Policies in the Asia-Pacific: Can We Do Better?
Tilak K. Doshi and Nahim Bin Zahur

Related Blog Posts by Me in This Blog

Energy Efficiency Conference - ECEEE

Energy Efficiency and Productivity - International Events and Examples

Industrial Engineering in Electical Engineering

Cost Reduction Opportunities in Power Plants and Distribution Systems

Economic Analysis - Clean Energy Investment Proposals

Energy Productivity - Efficiency Improvement

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Economic Analysis - Clean Energy Investment Proposals

Economic and Financial Analysis - An Illustration
The economic analysis presented in the knol Clean Energy 2030, is very interesting to provide an illustration to economic and financial analysis of investment proposals. I extracted the economic analysis portion from that knol to present it here.


We made the following economic assumptions in calculating the cost of the Clean Energy 2030 proposal:

  • Efficiency capital cost of 25 cents per kWh annual savings (one-time cost)
  • Savings from efficiency of 10 cents per kWh (average electricity price)
Renewable energy:
  • Renewable electricity capital costs:
    • Onshore wind: $2 per watt (W) falling to $1.5/W in 2030
    • Offshore wind: $2.5/W falling to $2/W in 2030
    • Solar PV: $6/W falling to $2/W in 2030
    • Solar CSP: $3.5/W falling to $2/W in 2030
    • Conventional geothermal: $3.5/W flat through 2030
    • Enhanced geothermal systems: $5/W falling to $3.5/W in 2030      
  • Intermittency cost of $20/MWh (applied to wind and solar)
  • Avoided fossil capital costs (for plants planned in baseline but not built in our proposal because of efficiency and renewables):
    • Coal: $2/W constant
    • Natural gas and oil: $1/W constant
  • Saved fossil fuel cost (that is not already counted as efficiency savings):
    • Coal: $2/MBtu constant
    • Natural gas and oil: $10/MBtu constant
  • No write-down cost for retiring coal plants (all plants assumed to be older than 40 years when retired), no decommissioning cost or salvage value for plants
  • Transmission infrastructure cost: $0.30/W for wind (including offshore) and solar CSP
  • Plug-in vehicle premiums: $5000 per plug-in hybrid vehicle (PHEV), $10,000 per pure-electric vehicle (EV), plus $1000 per vehicle for charging infrastructure
  • Higher-efficiency conventional vehicle premium $3000 for 45 mpg (pro-rated for lower mpg, down to zero cost for 22 mpg today)
  • Fuel cost: $4/gallon gasoline today, doubling to $8/gallon by 2030
  • Plug-in electricity cost: 7 cents per kWh (discounted due to flexible smart-charging price)
  • Older vehicle buy-back cost: $5000 per vehicle
Carbon (not counted in net savings):
  • Carbon credit for CO2 not emitted (relative to baseline): $20/ton CO2, doubling to $40/ton in 2030 (applied to both electricity and vehicles)

    Table 1. Economic summary (billions of 2008 US dollars).

    Costs Undiscounted total Net present value*
    Electrical efficiency investment $348 $175
    Renewable capacity investment $1,642 $712
    Transmission capacity investment $133 $59
    Intermittency cost $329 $121
    Coal plant write-down, decommissioning and salvage $0 $0
    Plug-in vehicle premium $1,221 $374
    Plug-in electricity cost $122 $35
    Higher efficiency conventional vehicle premium $325 $146
    Vehicle buyback cost $322 $119
    Subtotal $4,442 $1,742

    Electrical efficiency savings $1,599 $620
    Avoided fossil fuel generation capacity savings $267 $117
    Avoided fossil fuel savings $437 $162
    Plug-in fuel savings $2,193 $626
    Conventional fuel savings $939 $368
    Subtotal $5,435 $1,893

    Net savings $994 $151
    Carbon credits $1,134 $397
    Net savings with carbon credits $2,128 $548
    * Discount rate of 7%/year used for net present value calculations.

    Bottom line: undiscounted savings exceed costs by $994 billion over the 22 years of the scenario, or if carbon credits are included, $2,128 billion.

    Economic variants:
    • Making gasoline significantly more or less expensive changes the cost of the scenario relative to the baseline, and here the change can have a sizable impact on net savings. If gasoline rises to $12/gallon in 2030 rather than $8, an additional $1,189 billion in undiscounted savings are realized. If gasoline remains constant at $4/gallon in 2030, an additional cost of $1,317 billion is incurred, changing the balance to a net cost of $323 billion. 

                    Original knol -

                    Related Blog Posts by Me in This Blog

                    Energy Efficiency Conference - ECEEE

                    Energy Efficiency and Productivity - International Events and Examples

                    Industrial Engineering in Electical Engineering

                    Cost Reduction Opportunities in Power Plants and Distribution Systems

                    Economic Analysis - Clean Energy Investment Proposals

                    Energy Productivity - Efficiency Improvement

                    Energy Industrial Engineering

                    National Energy Conservation Day