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Cigar Box 3Operational Monitoring System By Anushik TadevosyanGlobal Facts

What you can do with Cigar Box 3Operational monitoring Evaluate progress.Daily production cost for each product.Know your daily losses and contribution Compare with real daily data.Make decisions for progress with real data.

CB3 has three components

1. Collecting dataYou can only have real data, if you collect them daily, this is necessary for CB3 To collect data you need to have daily data collection forms You need to train people how to fill daily forms and make them responsible to do it.Organize and Systematize data collection process

2. Analyzing DataYou are going to use data from forms to simple system;Choose the produced product for that day;Choose the expenses for that product;Enter data for each product;In the end you have analyzed data automatically!Colored margins show you the deviation from your planned margin

3. BenchmarkingFor benchmarking data you need to use daily database of production cost (which you have already from daily analysis);To see what is the position of our production cost, you need to compare it with similar production from other companies;It is possible to question: Why?But with CB3 you have an answer for your Why?To make decisions on progress is your responsibility, and your privilege!

First step is to make Information flow chart

Forms connection in the Production processes

Your successes will come from well organizing activities and responsibilities of personnel

Example: Daily cost of production in CB 3

Find your KPIsIf you have dataYou can make analyzesYou will find your KPIsThen do benchmarking of your KPIsFor different production there are different KPIs

Benchmarking

Performance improvement cycle

Measurement a.How much steam did we use on Thursday?b.How many cutting losses did we have in the evening shift?

Focus on critical ingredient (milk: fat + density; fruit: sugar + moisture)Instruments of measurementOperational routines (frequency, reporting, responsibilities)

14Knowledge a. What is going right?b. What is going wrong?

Archive documentsInput in CB3 databaseAnalysisOutput formats and report on KPIs

15Causes of problemsList causes of red lights

16Solutions Try to formulate solutions for the key problemsInside the companyOutside the company from expert consultants

Implement solutions ImprovementMeasure improvements New cycle

17ExerciseList products and production processes for each clientList likely KPIs per production processGlobal Facts can provide internationally acceptable benchmarks (green, orange, red)

18You are in the right way!When you know your weak points, when you see from what they are coming and when:You can plan and organize your production better See if you have products which are not profitableYou can plan your resources Market, Raw Materials, Production,Personnel, Equipment, You can plan your finance To see when you will have financial crisesOrganize investment in time

RAW MILKSILO 1

STANDARD MILK 3.5% FAT

LOW FAT MILK 1% FAT

RAW MILKSILO 1

CREAM46% FAT

FCMP BULK29% FAT

SKIMMED MILK.01% FAT

SMP BULK0.1% FAT

LOW FAT MILK POLY

FRESH MILK POLY

YOGHURT DRINK

FLAVORED MILK POLY

CURD

LOW FAT MILK UHT

FLAVORED MILK UHT

FRUIT JUICE UHT

SMP 0.1% FAT

FCMP 29% FAT

GHEE, 99.9% FAT

BUTTER 82-84% FAT

AARONG MILK UHT

1

4

2

2

2

2

4

2

1

1

3

3

2

F3

F5

DELIVERY VANS DAILY

F6

F4

F1

F7

RENTAL VANS DAILY

sku

LABOR DAILY

GAS/ DIESEL CONSUMPTION

COOL TRUCKS DAILY

MAINTENANCE DAILY

InstructionsSAMPLE FACTORY - CB3MDFMACFMFMFMStepActivityResponsibleMilk collProductionSalaryEngineeringTransportFP Store1Fill in data collection formsDelouerRabbaniRofiq SMAdhir SahaMosharafToffajalInformation formsF1; F2F3 - F7F8F9F10F111. Pasteurised milk production - F3Head of Dept 1ShukumarFarrukh2. UHT production - F4Head of Dept 2AbdulmujidShohid3. Butter / ghee / curd production - F4Head of Dept 3Shahin4. Powder milk production - F5Head of Dept 4Rabbani2Daily data entry into ExcelCost accountantShohid ITRabbaniShohid ITShohid ITShohid ITShohid IT3PricesCost accountant4Verify results:Cost accountant- recipe % and processing ratios in Technological Analysis SheetTechnologist- variable cost % in Cigar BoxCost accountant- gross margin % > 30%Cost accountant5Mark questions on original data collection form in RED COLOURCost accountant6Go to Department Head, ask reasons, write CAUSES on the (back of) data sheet.Cost accountant7If no causes found, discuss with Factory ManagerFactory manager8Re-enter data, if neededCost accountant9Make daily printoutCost accountant10Sign for approval, archive in special folder in the factoryFactory manager11Copy, Paste Special (Values and Formats, Transpose) to DatabaseCost accountant12Update pivot tables and print out reportsCost accountant13Send updated file to factory manager, general manager and/or ownersCost accountant14Organize 1 or 2-weekly meetings with staff concerned to discuss deviations and resultsOwner / general managerMDACMCCFMMM

Performance Improvement Cycle
measurement