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.
1. SYSTEM
IMPLEMENTATION
& RAMP-UP
PROJECT
Master in Logistics and Supply
Chain Management
Claudia Gomez
Kamila Hurkova
Merve Nur Tas
Tommi Veromaa
Ramp-up After Redesign
15/01/2018
1Project: Ramp-up after redesign | TH Wildau
2. I. CURRENT STATE OF COMPANY
1. Objectives
2. Original Layout vs New Layout
3. Ramp-up Project Overview
4. Changes required in Manufacturing Plant
II. RAMP-UP STRATEGIES
1. Evaluation of Ramp-up Strategies
2. Risk Analysis and Risk Mitigation
3. Selected Ramp-up Strategy & Implementation
III. FINAL CONCLUSIONS & RECOMMENDATIONS
TABLE OF
CONTENT
15/01/2018 Project: Ramp-up after redesign | TH Wildau 2
3. I. CURRENT STATE OF
THE COMPANY
15/01/2018 Project: Ramp-up after redesign | TH Wildau 3
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
and material flows. This layout was designed by
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.
6. RAMP-UPPROJECTOVERVIEW
15/01/2018 Project: Ramp-up after redesign | TH Wildau 6
RAMP-UPPROJECT
CHANGES REQUIRED
Construction Changes
Indoor Walls (2)
Outdoor Gate (1)
Relocation of machines and
areas (31)
RESOURCES REQUIRED
Internal**
Employees (20)
Forklift (3)
Project Manager (1)
External Construction Contractor (1)
RAMP-UP PROJECT OVERVIEW
** Internal resources required are
available in the company
7. 48
22,5
70,572
45
117
96
67,5
163,5
0
20
40
60
80
100
120
140
160
180
Heavy Medium/Small Total
Hours
Employee working hours
Employee hrs min. Employee hrs avg. Employee hrs max.
RELOCATIONOFAREAS
15/01/2018 Project: Ramp-up after redesign | TH Wildau 7
Machines
• 2 employees required to move each area
• Avg. Time to move an area: 6h
• Nr. of areas: 6
Tools/Racks/Areas
• 1-2 employees required to move an area
• Avg. Time to move an area: 1h
• Nr. of areas: 25
Total estimated
time for relocation
of all areas:
117 working hours
8. Contractor
tendering
(2 days)
Contractor
Hiring
(1 day)
Planning and
Scheduling
(180 days)
Start of
Construction
planning
Construction
Project
(3-5 Days)
CONSTRUCTIONWORKS
15/01/2018 Project: Ramp-up after redesign | TH Wildau 8
PHASES FOR THE CONSTRUCTION
Publishing a tender
including:
• General
requirements
• Blueprints
• Construction
objectives
• Safety issue
• Vetting of different
contractor offers
• Choose experienced
and time-efficient
contractor
• Long waiting time to
start for planning
because of low
supply and high
demand for
construction projects
Construction should
include:
• Permanent indoor
wall sections – 1 day
per wall
• Gate to outdoor wall
to access factory – 3
days
• Guarantee
availability of
materials before
starting construction
at site
• 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
CONSIDERATIONS
9. II. RAMP-UP
STRATEGIES AND
ANALYSIS
15/01/2018 Project: Ramp-up after redesign | TH Wildau 9
Based on theory, there are several strategies
that can be applied during the ramp-up project.
During this chapter, several strategies are
analyzed in order to select the most adequate
one based on the following criteria :
1. Complexity of implementation
2. Overall impact on profit
3. Time of completion
10. EVALUATIONOFRAMP-UP
STRATEGIES
15/01/2018 Project: Ramp-up after redesign | TH Wildau 10
DESCRIPTION OF STRATEGYADVANTAGES DISADVANTAGES
RADICAL STRATEGY
Stop Production for a certain
number pf working days while
carrying out the construction and
relocation of machines
Simple to coordinate and
implement
Shorter time to finish the
Project at once
Workforce committed to just
one task at a time (ramp-up
project)
Complete stop of usual
operations required for the
ramp-up period
Possible lost orders
Higher risk of delays in
delivering orders
1
GRADUAL STRATEGY
Continue manufacturing while
systematically developing ramp-
up project during normal working
hours
Guarantees service level and
avoid loss orders
No need for additional
workers
Only low disturbance of usual
operations
More complex solution to
coordinate and implement
Longer time to implement –
slower progress at a time
Employees might have task
conflicts (usual operations vs
ramp up)
2
No interruption of
manufacturing process
Workforce committed to just
one task at a time (either
usual operations or ramp-up
project)
Slower strategy in comparison
with the other two
Additional cost of employees
(pay overtime) and
construction contractors
OVERTIME STRATEGY
Continue manufacturing normally
while carrying out the ramp-up
project during overtime hours
3
11. MITIGATIONS
1.RISKANALYSIS
15/01/2018 Project: Ramp-up after redesign | TH Wildau 11
RISKANALYSIS
S E R V I C E
L E V E L
P R O D U C T I O N
W O R K - F O R C E
Postponement of deliveries & related
fines
Lost orders if production stopped for long
time
Do not stop production, choose period of
time with typically lower demand
Try not to disturb usual processes
Consider rampup while promising delivery
dates, minimize delays
Damage while carriage of objects, scrap
Lost tools and stored material caused by
moving
Have fixture and equipment list
Know ongoing processes/ current orders
list
Protect WIP
End-of-the-day countings
Lengthened ramp-up process in case of
employee absence/work slacking or
inefficiency
Overtime hours:
Risk of violating labour law
Higher costs
Communication to all employees
Detailed workforce planning
Do neccessary training if applicable
Make sure the working time (incl rampup)
does not exceed the allowed max.
CATEGORYRISKS
E X T E R N A L
Supplier does not provide materials for
construction on time
Safety of new materials
Agree with the contractor to bring in
neccessary materials 2 days in advance
12. RAMP-UPPROCESS&STRATEGY
15/01/2018 Project: Ramp-up after redesign | TH Wildau 12
Gradual Transformation of Original Layout into New
one1.
Organizational structure
Type A1: Ramp up team with flexible employee assignment
Assignment of employees (relocation) regular working areas
Eternal Construction Contractors
2.
Tentative Beginning of Project
2 July 2018 (constructions starts 2nd Week of January 2019)
Tentative: 2nd stage beginning varies depending on current demand3.
STAGES
1. Construction planning
2. Modification of layout
4.
KPIs:
• Progress of
Project/
Planning (%)
• Daily Working
time (H)
• Cost Variance
• Performance
of machines
after
reassembly
Tentative End of Project
18 January 20195.
Tentative End of Project
18 January 20195.
13. RAMP-UPIMPLEMENTATION
15/01/2018 Project: Ramp-up after redesign | TH Wildau 13
GANTT chart:
# Task
PROJECT BEGIN
1 Constructions - contract tendering Project Manager 2D
2 Constructions - contract hiring Project Manager 1D
3 Construcctions - planning and scheduling External
4 Communication to employees (2 weeks before Phase 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
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
Project Manager
DAY 7 DAY 8 DAY 9
180 D
DAY 3DAY 1 DAY 4 DAY 5 DAY 66 MONTHSResources
PHASEIPHASEII
External
DAY 2
Employees
Cutting
process
stopped
Processing
partly
stopped
Bending
process
stopped
Processin
gpartly
stopped
14. IV. FINAL
RECOMMENDATIONS
AND CONCLUSIONS
15/01/2018 Project: Ramp-up after redesign | TH Wildau 14
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)
Constructions:
• Reliability and quality of subcontractors
• Guarantee to start on time
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)
THE SUCCESS OF THE RAMP-UP DEPENDS ON...
