SYSTEM

IMPLEMENTATION
& RAMP-UP
PROJECT
Ramp-up After Redesign

Claudia Gomez
Master in Logistics and Supply Kamila Hurkova
Merve Nur Tas
Chain ManagementProject: Ramp-up after redesign | TH Wildau Tommi Veromaa
1
15/01/2018
 I. CURRENT STATE OF COMPANY
1. Objectives
2. Original Layout vs New Layout
3. Ramp-up Project Overview
4. Changes required in Manufacturing Plant

TABLE OF II. RAMP-UP STRATEGIES

CONTENT 1. Evaluation of Ramp-up Strategies
2. Risk Analysis and Risk Mitigation
3. Selected Ramp-up Strategy & Implementation

III. FINAL CONCLUSIONS & RECOMMENDATIONS

15/01/2018 Project: Ramp-up after redesign | TH Wildau 2

 A small family-run company manufacturers
tailored aluminum balconies. About 2 years ago,
it reached its facility limits and the company
decided to buy a second site.

Currently, new factory layout of the original site

was requested to optimize the internal processes
I. CURRENT STATE OF and material flows. This layout was designed by

THE COMPANY external partners.

The objective of this ramp-up project is to

change from the old to the new layout. The
implementation requires a clear strategy to use
resources efficiently while compromising the
operations as least as possible.

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 1H 1G
1F

1E
2A
3L 2B 2S 1I
3O 3N 1D
3K 2C 2R
ORIGINAL LAYOUT

3J 3M 2D 2Q
2P 1C
3I

2E
OFFICES

3H 2O
3A
2F 2N
1B
3B 2G
3C 2M 2L 1A
3D 2H
2K 2j

3G 3E 2I

3G 3F 3E

Hall 3 Hall 2 Hall 1

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 1G
1E
2A 1H 1F

Grinding
3L

Cutting
3E 3B 2P
3K 3O 2S
2O 2B
3J

Welding
3E 2H

balcony
2C
NEW LAYOUT

3I 2J

Storage
2D
2K
OFFICES

3H 2Q
2E
3A 2L
2R 2F

Processing
Welding 3M CNC 2M
Assembly 2N
Roof

3C 2G
Handrail
1D 3N
3D
Incoming area
No changes
3G
Stamping
Bending

Heavy
Final Assembly Storage 1A, (6hrs)
1B, 1C, 1I are move to new
2I

3G 3F building HALL 4 and 5 Medium/Small

(1 hrs)

Hall 3 Hall 2 Hall 1

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 RAMP-UP PROJECT OVER VIEW
RAMP-UP PROJECT OVERVIEW

Indoor Walls (2)

RAMP-UP PROJECT Construction Changes

CHANGES REQUIRED Outdoor Gate (1)
Relocation of machines and
areas (31)

Employees (20)

Internal** Forklift (3)

RESOURCES REQUIRED Project Manager (1)

External Construction Contractor (1)

** Internal resources required are

available in the company

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 Employee working hours
Employee hrs min. Employee hrs avg. Employee hrs max.
RELOCATION OF AREAS

180
163,5
160

140
117
120

100
96
Hours

80 72 67,5 70,5
60 48 45
40
22,5
20

0
Heavy Medium/Small Total

Machines Tools/Racks/Areas Total estimated

• 2 employees required to move each area • 1-2 employees required to move an area time for relocation
• Avg. Time to move an area: 6h • Avg. Time to move an area: 1h of all areas:
• Nr. of areas: 6 • Nr. of areas: 25 117 working hours

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 PHASES FOR THE CONSTRUCTION

Contractor Contractor Planning and Start of Construction

CONSTRUCTION WORKS

tendering Hiring Scheduling Construction Project

(2 days) (1 day) (180 days) planning (3-5 Days)

Publishing a tender • Vetting of different • Long waiting time to • Guarantee Construction should
including: contractor offers start for planning availability of include:
• General • Choose experienced because of low materials before • Permanent indoor
requirements and time-efficient supply and high starting construction wall sections – 1 day
• Blueprints contractor demand for at site per wall
• Construction construction projects • Gate to outdoor wall
objectives to access factory – 3
• Safety issue days

CONSIDERATIONS
• German construction law for private industrial companies
• Safety
• Wall construction next to welding process needs to take into account fire safety of the wall material
• Dust fire during construction or dust being accessible to working areas that use fire in their processes

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 Based on theory, there are several strategies
that can be applied during the ramp-up project.

II. RAMP-UP During this chapter, several strategies are

analyzed in order to select the most adequate
STRATEGIES AND one based on the following criteria :

ANALYSIS 1. Complexity of implementation

2. Overall impact on profit
3. Time of completion

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 ADVANTAGES DESCRIPTION OF STRATEGY DISADVANTAGES
 Simple to coordinate and 1 RADICAL STRATEGY  Complete stop of usual
EVALUATION OF RAMP-UP

implement operations required for the

 Shorter time to finish the Stop Production for a certain ramp-up period
Project at once number pf working days while  Possible lost orders
 Workforce committed to just carrying out the construction and  Higher risk of delays in
one task at a time (ramp-up relocation of machines delivering orders
STRATEGIES

project)
 Guarantees service level and 2 GRADUAL STRATEGY  More complex solution to
avoid loss orders coordinate and implement
 No need for additional Continue manufacturing while  Longer time to implement –
workers systematically developing ramp- slower progress at a time
 Only low disturbance of usual up project during normal working  Employees might have task
operations hours conflicts (usual operations vs
ramp up)
 No interruption of 3 OVERTIME STRATEGY  Slower strategy in comparison
manufacturing process with the other two
 Workforce committed to just Continue manufacturing normally  Additional cost of employees
one task at a time (either while carrying out the ramp-up (pay overtime) and
usual operations or ramp-up project during overtime hours construction contractors
project)

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 RISKS CATEGORY MITIGATIONS
 Postponement of deliveries & related  Do not stop production, choose period of
fines time with typically lower demand

SERVICE
Lost orders if production stopped for long  Try not to disturb usual processes
time LEVEL  Consider rampup while promising delivery
dates, minimize delays
ANALYSIS
RISKANALYSIS

 Damage while carriage of objects, scrap  Have fixture and equipment list
 Lost tools and stored material caused by  Know ongoing processes/ current orders
moving PRODUCTION list
 Protect WIP
 End-of-the-day countings

 Lengthened ramp-up process in case of  Communication to all employees

employee absence/work slacking or  Detailed workforce planning
1.RISK

inefficiency WORK-FORCE  Do neccessary training if applicable

 Overtime hours:  Make sure the working time (incl rampup)
 Risk of violating labour law does not exceed the allowed max.
 Higher costs

 Supplier does not provide materials for  Agree with the contractor to bring in
construction on time neccessary materials 2 days in advance
 Safety of new materials EXTERNAL

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 1. Gradual Transformation of Original Layout into New
RAMP-UP PROCESS & STRATEGY
one

Organizational structure
 Type A1: Ramp up team with flexible employee assignment
2.  Assignment of employees (relocation)  regular working areas • Progress of
 Eternal Construction Contractors Project/
Planning (%)

Tentative Beginning of Project • Daily Working

 2 July 2018 (constructions starts 2nd Week of January 2019) time (H)

KPIs:
3.  Tentative: 2nd stage beginning varies depending on current demand
• Cost Variance

• Performance
STAGES
4. 1.2. Construction planning
Modification of layout
of machines
after
reassembly

Tentative End of Project

5. 
5. Tentative End of Project
18 January 2019
18 January 2019

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 GANTT chart:
# Task Resources 6 MONTHS DAY 1 DAY 2 DAY 3 DAY 4 DAY 5 DAY 6 DAY 7 DAY 8 DAY 9
RAMP-UP IMPLEMENTATION
PROJECT BEGIN Cutting Processing Bending Processin
PHASE I 1 Constructions - contract tendering Project Manager 2D process partly process gpartly
2 Constructions - contract hiring Project Manager 1D stopped stopped stopped stopped
3 Construcctions - planning and scheduling External 180 D
4 Communication to employees (2 weeks before Pha s e 2) CEO, Pr.Manager, All HR 2h
5 Create new working area 1A in the Hall 4/5 2 Employees, Forklift
6 Create new working area 1B in the Hall 4/5 2 Employees, Forklift
7 Create new working area 1C in the Hall 4/5 2 Employees, Forklift
8 Create new working area 1I in the Hall 4/5 2 Employees, Forklift
9 Carry 1D to Hall 4/5 (Temporarily) 2 Employees, Forklift
10 Move racks from Hall 2 to Hall 1 (2B-2H, 2J-2S) 4 Employees, Forklifts
11 Move 2I to create moving space inside Hall 2 2 Employees
12 Bring in materials for CNC construction External
13 CNC Office construction External
14 Move 3E from Hall 3 to Hall 2 2 Employees, Forklift
15 Move 3B from Hall 3 to Hall 2 2 Employees, Forklift
16 Move 3D from Hall 3 to Hall 2 2 Employees, Forklift
PHASE II

17 Bring in materials for gate construction External

18 Gate construction External
19 Move 3F inside the Hall 3 2 Employees, Forklift
20 Move 3A from Hall 3 to Hall 2 2 Employees, Forklift
21 Move 3C from Hall 3 to Hall 2 2 Employees, Forklift
22 Move 3M inside Hall 3 2 Employees, Forklift
23 Move 3N inside Hall 3 2 Employees, Forklift
24 Bring in materials for construction around 3L External
25 Construction around 3L External
26 Bring 1D area from Hall 4/5 to Hall 3 2 Employees, Forklift
27 Move 3H inside Hall 3 2 Employees
28 Move 2I from Hall 2 to Hall 3 2 Employees
29 Coordination & Control & Countings Project Manager
PROJECT END

Employees External Project Manager

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 THE SUCCESS OF THE RAMP-UP DEPENDS ON...

Organisation:
• Planning & Timing (know current production plan,
detailed organisation structure, current demand)
• Communication to internal workforce and equal
involvement of all
• Quality project management (PDAC cycle)
IV. FINAL Constructions:
RECOMMENDATIONS • Reliability and quality of subcontractors
• Guarantee to start on time
AND CONCLUSIONS
Relocations:
• Print out special timetables for employees early in
advance
• Point out critical tasks during ramp-up process
• Never use all 3 forklifts for relocations at the same
time (leave at least 1 available for usual operations)

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 BACK-UP

15/01/2018 Project: Ramp-up after redesign | TH Wildau 15

 1H 1G
1F

1E
2A
3L 2B 2S 1I
3O 3N 1D
3K 2C 2R
ORIGINAL LAYOUT

3J 3M 2D 2Q
2P 1C
3I

2E
OFFICES

3H 2O
3A
2F 2N
1B
3B 2G
3C 2M 2L 1A
3D 2H
2K 2j

3G 3E 2I

3G 3F 3E

Hall 3 Hall 2 Hall 1

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 1H 1G
1F

1E
2A
3L 2B 2S
3K 3O 3N 2R
2C
ORIGINAL LAYOUT

3J 3M 2D 2Q
2P
3I

2E
OFFICES

3H 2O
3A

Storage

Storage
Storage
2F 2N
3B 2G
3C 2M 2L
3D 2H
2K 2j

3G 3E 2I

3G 3F 3E

Hall 3 Hall 2 Hall 1

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 1H 1G
1F

1E
2A
3L
3O 3N 3E 3B
3K 2P
Cutting
ORIGINAL LAYOUT

2O
3J 3M
2H 2S
3I 2B
2j 2C
OFFICES

3H
3A 2K 2D

CNC 2Q 2L 2E
3B
3C
3D 2R 2M 2F
2I
2N 2G
3G 3E

3G 3F 3E

Hall 3 Hall 2 Hall 1

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Material Flow

15/01/2018 Project: Ramp-up after redesign | TH Wildau 19

Explanation of Areas

grinding

15/01/2018 Project: Ramp-up after redesign | TH Wildau 20

 • Balcony Inlays
Machines/Products/Tools
• Buffering

• Stamping • Handrails
• Welding

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