Johnson & Johnson - Industrial Engineering - Productivity Improvement Activities - Industry 4.0 Lighthouse Plant

Industrial Engineering 4.0 - Computer Aided Industrial Engineering: Work Systems Analysis in Industry 4.0

Rao, Kambhampati Venkata Satya Surya Narayana; Rathod, Aniket.  IIE Annual Conference. Proceedings; Norcross (2021): 49-54.

https://www.proquest.com/openview/d32ef32bbaa911d170e046479790c035/1  

Industry 4.0 Lighthouse Plant

Johnson & Johnson - Xi’an

60% decrease in non-conformance, while improving productivity by 40%, operating costs by 24% and GHG emissions by 26%.

To improve agility and responsiveness, raise quality standards and enhance competitiveness, Johnson & Johnson Xi’an replaced its manual facility with a Fourth Industrial Revolution-enabled new factory in 2019. This facility includes digital twins for technology transfer and material handling, intelligent automation of continued process verification (CPV) and batch execution processes. This has shortened the product transfer time by 64% during site relocation and has enabled a 60% decrease in non-conformance, while improving productivity by 40%, operating costs by 24% and GHG emissions by 26%.

PEOPLE'S REPUBLIC OF CHINA

Johnson & Johnson - Xi’an

Industrial Engineering - Productivity Improvement - Process Improvement - Product Redesign - Continuous Improvement

Industrial engineering is improvement in various elements of engineering operations to increase productivity. Along with engineering elements, industrial engineers evaluate and improve many other elements also as they are responsible for productivity and cost of items produced in a process. Through assignments of improving productivity and efficiency of information technology and software engineering processes, industrial engineers specializing in IT were given responsibility for business processes also. Thus industrial engineers with focus on various branches of engineering provide their services to companies and society to improve various elements of the products and processes on a continuous basis over the product life cycle. They are active in engineering or production-maintenance-service-logistic processes and business processes.

Productivity improvement always focuses on quality and flexibility issues as productivity improvement should not lead to any deterioration in quality or flexibility. Delivery and cost are always at the core of industrial engineering. Thus when QFCD paradigm came, that is attention to quality, flexibility, cost and delivery became prominent, many industrial engineers were given the responsibility of managing this function of continuous improvement.

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Johnson & Johnson

Commendable Cost Reduction in Number of Years. Every Industrial Engineer must achieve and claim such cost reductions.

Tara Ramsey
Head of Consumer NA Supply Chain Sourcing
Skillman, New Jersey

Johnson & Johnson
Head of Consumer NA Supply Chain Sourcing
since May 2018

Director, Transportation Sourcing and Supplier Performance
Nov 2014 – May 2018

Group Manager, Direct Materials and Supplier Engineering
Jun 2010 – Feb 2011

• Responsible for $100MM in raw material and packaging spend annually; manage year on year cost reduction goal of $10MM.

Commodity Manager
Johnson & Johnson Vision Care, Inc.
Jan 2007 – Jun 2010

• Manage $50MM in raw material and packaging spend annually with global suppliers between Jacksonville, FL and Limerick, Ireland manufacturing plants.
• Consistently exceeded savings targets of 10%, to achieve +$5MM in cost reduction and improvement projects annually.

Senior Strategic Buyer
Company NameJohnson & Johnson Vision Care, United Kingdom
Aug 2004 – Dec 2006

London, England
• Created and led the Non Stock Purchasing Department for Vision Care EMA, including all indirect purchases and the supervision of the requisition to pay process within the SAP environment
• Manage $72MM in spend annually across 16+ major markets using 2000+ suppliers, collaborating with 3 Regional Managing Directors and their EMA-wide staff
• Achieved $3.8MM in cost savings across Marketing & Sales, Transportation, Media and other disciplines which is 5% savings of total spend (exceeded 2006 goal of $2MM)

• Led the first Vision Care EMA Advertising negotiation in EMA history, achieving a $400M cost savings (40% of total annual spend)

• Analyzed, then strategically bid both the inbound and outbound transportation of finished goods, achieving $1.2MM in cost savings, which was directly removed from SG&A by Finance business partners


Johnson & Johnson Consumer Products Company
Jan 2004 – Aug 2006

Manage $5.9MM in Marketing & Sales spend achieving annual savings of $400M (6% of total spend).
Established business partnership with Marketing, Sales, Trade Promotions, Trade Marketing, and Supply Chain to successfully launch new products and promotions while identifying on-going cost savings opportunities. Increased Purchasing penetration by 65%.

Reengineered Marketing Print process for Johnson & Johnson Consumer Products and incorporated the use of eSourcing tools. Completed over 65 projects contributing $210M in savings.

Led Neutrogena’s deployment of new Marketing Print process to include qualifying preferred suppliers, end-user training, process adoption, and metrics. Savings generated in 4 months were $240M.

Team lead for Non Stock collaboration (with Vistakon) to further leverage CPC knowledge and expertise of Print Buying. Generated $200M savings (incremental to business plan) by standardizing certain printed pieces

Achieved green belt certification by reducing Ariba mismatches by 72% for 13 core users yielding an annual financial savings of $30M; process then yielded less than 5% mismatches of total invoices, exceeding Corporate goal

https://www.linkedin.com/in/tara-ramsey-6869494/

Energy Efficiency Improvement at Johnson & Johnson

Johnson & Johnson Strives to Implement
Best Practices by Year 2000
Harry A. Kauffman, Johnson & Johnson

In 1995, after a year and a half of development, J&J rolled out Best Practices for energy efficiency. There are 150 in all and every one of them has been completed by at least one of the  facilities around the world and therefore they are validated ideas. They are state of the art technologies and practices, they are not projects with extremely high paybacks. J&J used as a cost effectiveness test an internal rate of return of 20%, which is about a 5 year simple payback. The facilities are not forced to implement each of  them. They need prepare project feasibility reports and  implement all that pass the cost effectiveness test. They are actually encouraged to go beyond these practices and develop new practices. In addition, an on-going process to identify new technologies that are developed and proved to be cost effective will be added to the Best Practices.

Examples of the Best Practices include:

Stage 1: Upgrade lighting with T-8 or T...5 fluorescents, occupancy sensors, metal halide or high pressure sodium, Light Emitting Diode (LED) exit signs and implement group relamping.

Stage 2: Perform preventive maintenance and calibrations, challenge and fine tune operating schedules, survey leaks including steam traps and compressed air, track, graph, analyze, and publicize energy usage and cost, develop pie chart of functional usages of energy, and optimize energy purchasing.

Stage 3 Upgrade office equipment. Upgrade building envelope with double-paned windows, and appropriate insulation, seal any openings, and complete a thennographic scan of the entire building.

Stages 4 & 4+: Evaluate all motor systems throughout the facilities and upgrade including technologies such as premium efficient motors, variable speed drives, and Direct Digital Control.

Upgrade Chillers, Boilers, Compressed Air and Electrical Distribution to include: non-CFC, central-chiller water system with 0.56 KW/Ton water-cooled chillers with variable speed drives, primary/secondary chilled water pumping system, low excess air burner for the boiler with stack economizer and blow-down heat recovery, automated compressed air systems with proper storage,
looped piping system, and minimum pressures, and k rated energy efficient transfonners with capacitors for power factor correction.

To validate the bundle of Best Practices, two facilities were selected as pilots.  Ethicon Endo-Surgery manufacturing facility in Albuquerque, NM completed all 150 of the Best Practices by 1997 and reduced their overall energy usage by 23% and energy costs by $156,403. They were recognized for this effort by "Energy User News" magazine with an Efficient Building Award in 1998 in the Industrial category, as well as by the EPA as its Outstanding Building Upgrade for 1998.

The other pilot was a multi-company (two companies), multi-facility (four buildings -- one administration and three manufacturing) operation in Manati, PRe. They have completed 97% of the Best Practices (inability to shutdown equipment has delayed some motor upgrades) and reduced their overall energy by 28% and energy costs by $604,630. In addition to the typical upgrades, they consolidated their individual steam, chilled water and compressed air systems. They shared the EPA's Outstanding Building Upgrade with the Albuquerque facility.

The cost, savings and paybacks vary by grouping of Best Practices. The average simple paybacks for completed project by Stage have been: Stage 1 OM 2.15 years, Stage 2 ... 2.48 years, Stage 3 - 3.46 years, Stages 4/4+ - 2.79 years, Stage 5 - 10.. 15 years.

Design to Value

https://www.sec.gov/Archives/edgar/data/200406/000020040619000009/form10-k20181230.htm



Process Excellence in the Manufacturing Value Chain
Learn how J&J is using Six Sigma, Lean and other techniques to achieve process excellence in its manufacturing operations.
Sep 14, 2004
https://www.pharmamanufacturing.com/articles/2004/91/

Focus Areas of Industrial Engineering - Brief Explanation

Productivity Science: Science developed for each element of machine operation and each element of human tasks in industry.
Productivity Science - Determinants of Productivity

Product Industrial Engineering: Redesign of products to reduce cost and increase value keeping the quality intact.
Product Industrial Engineering

Process Industrial Engineering: Redesign of processes to reduce cost and increase value keeping the quality intact.
Process Industrial Engineering

Industrial Engineering Optimization: Optimizing industrial engineering solutions created in Product Industrial Engineering and Process Industrial Engineering.
Operations Research - An Efficiency Improvement Tool for Industrial Engineers

Industrial Engineering Statistics: Using statistical tools like data description, sampling and design of experiments in industrial engineering activity.
Statistics and Industrial Engineering

Industrial Engineering Economics: Economic analysis of industrial engineering projects.
Engineering Economics is an Efficiency Improvement Tool for Industrial Engineers

Human Effort Industrial Engineering: Redesign of products and processes to increase satisfaction and reduce discomfort and other negative consequence to operators.
Motion Study - Human Effort Industrial Engineering

Productivity Measurement: Various measurements done by industrial engineers in industrial setting to collect data, analyze data and use the insights in redesign: Product Industrial Engineering and Process Industrial Engineering.
Industrial Engineering Data and Measurements

Productivity Management: Management undertaken by industrial engineers to implement Product Industrial Engineering and Process Industrial Engineering. Management processes industrial engineering is also part of productivity management.
Productivity Management

Applied Industrial Engineering: Application of industrial engineering in new technologies, existing technologies, engineering business and industrial processes and other areas.

Applied Industrial Engineering - Process Steps

How many Industrial Engineers can a Company Employ for Cost Reduction?

For $100 million cost, there can be one MS IE and 6 BSIEs.
https://nraoiekc.blogspot.com/2020/03/value-creation-model-for-industrial.html

Industrial Engineering - Lean Manufacturing - Parent - Child Relationship

Industrial engineers are employed and productivity improvement and cost reduction are practiced in many companies using Industrial engineering philosophy, principles, methods, techniques and tools.

Index to Industrial Engineering Practice in Top Global Manufacturing Companies - Top 100

Online Handbook of Industrial Engineering

ud. 26.1.2024

Pub. 11.4.2020