SUSTAINABILITY REPORT 2013-15

People Overview Self Managed Teams Mechanisation Safety Overview The Parivartan     Journey Progress on     Roadmap Incident Statistics Robust Governance Standardised     Processes Enhanced Awareness Capability Building Safety Infrastructure Safety Audits Quality Overview Top-down    Accountability Quality by Design Quality Culture     Transformation Quality Assurance Quality     Best Practices All Time Audit     Readiness Availability Overview Strategic Sourcing Risk Management Product    Rationalisation Success stories Environment Overview Roadmap Energy Management Emissions Water Waste Case Study KPIs Community Overview Focus Areas Education Livelihoods Healthcare Infrastructure     Initiatives Creating Change     Makers Productivity Overview Productivity Streams Case Study PACE Update Initiatives Engineering Excellence Overview Digitisation Automation Mechanisation Lean Manufacturing Capital Equipment Strategy Predictive Maintenance Continuous Improvement Overview Continuous     Improvement     at Work Best Practices Annexures GRI Index Acronyms Assurance Statement   Summary Report     CONTINUOUS IMPROVEMENT CONTINUOUS IMPROVEMENT AT WORK People Productivity    |    Material Productivity    |    Machine Productivity Machine Productivity Machine productivity is defined by its performance to manufacture defect-free desired products at its maximum validated speed in available time. It is measured through OEE that is the product of Equipment Availability (Time), Quality of Product and Quantity Produced. The underlying causes of OEE losses are - unscheduled downtime, speed loss, extended changeover time, material unavailability, etc.     Key initiatives undertaken during the reporting period include:   Improving Efficiency, Sustaining Productivity An average OEE (Overall Equipment Effectiveness) of 27% of Fette tablet press machine in FY14 was impacting timely deliveries of key products such as Nise tablets & Stamlo 5 tablets. In order to enhance the equipment productivity, Team Strikers (Formulations Baddi Plant 2) identified product-changeover, startup and speed losses as constraint areas. The interventions included: Deployment of SMED (single minute exchange of die) principle for reducing changeover cycle time, replacement of normal screw driver with torque wrench to automate die locking and unlocking, dedicated vacuum cleaners and implementation of standard work practices & recipe driven operation. Further, implementation of 5S in change parts area for faster change parts retrieval and gradual increase in RPM of runner products resulted in reduction of speed losses.             Identifying Constraints, Implementing Solutions Omeprasole (Omez) 20 mg capsule is one of the top runner products of Dr. Reddy's in Russia, Romania and Rest of the World. In FY14, its average monthly output was 55 million units vis-a-vis the market demand of 75 million. Hence, Omez capsule was identified for capacity enhancement. A project charter was prepared, defining the baseline and target production capacity, roles and responsibilities, project timeline, etc. Cycle time of unit operation was measured and analysed through current state value stream map (VSM), identifying CCR (capacity constraint resource) of the process. Value stream mapping is a pictorial tool which maps processes, material & information flow of a product from start to end. It gives a holistic view of the process in as-is state and helps narrow down on areas with scope for improvement.     The teams Rising Star & Creative Stars of Formulations Hyderabad Plant 2 identified constraints using Value Stream Mapping (VSM) & quality control tools. The teams brainstormed and identified possible reasons for longer cycle time using fish- bone diagram. Various Lean Six Sigma tools such as VOC (Voice of customer), CTQ (Critical to quality attributes), histogram, box plot, scatter plot, Pareto analysis were used during analysis.   Click to enlarge   The actions thus implemented were: Process time optimisation, drying efficiency improvement, parallel micronisation & sifting, replacement of existing blender with higher capacity enabling drug mixing & blending as parallel activities, reduction of changeover time from 120 min to 60 min, minimisation of machine setting time, breakdown time reduction of packing machine (ASB bundling & MF 400 machine), improvement in OEE of CCRs and arresting speed losses due to poor quality of packing material.   Results achieved: Average output per month has increased to 75 million/month (July to October 14), best demonstrated output is 77 million. This has resulted in approximate savings of ₹20 million through additional business and sea shipment. In order to sustain the benefits, next target of 85 million capsules has been taken for further capacity enhancement.