Project Case Study: Cadbury Adams Plant Capacity Analysis
Analyze New Plant Layout to Ensure Sufficient Capacity
Cadbury Adams required a Candy Production Plant Capacity simulation model that would support the reorganization of its Hamilton, ON plant layout and process flow.
Cadbury Adams wanted to analyze the revised process-flow layout and its effect on current production volumes within the space limitations of the plant. The simulation required an understanding of the detailed workings of the production line. Inventory storage space was also taken into account since it was seen as a potential bottleneck in the process.
In response to the planned production volumes, Engineering wanted to ensure that sufficient capacity was designed into the new plant layout to avoid bottleneck issues through either space or production flow constraints. The team wanted to also investigate the new plant’s operation under various scenarios including production volume increases, shipping and receiving interruptions, and equipment reliability changes.
To meet the challenges, Visual8 developed a Candy Production Plant Capacity simulation model to capture the end-to-end flow of materials into, through and out of the plant. The model provided users with the ability to analyze the planned plant layout and process re-organization by editing the various operating characteristics using SIMUL8’S internal spreadsheets.
This allowed users to experiment with different designs and determine which would best accommodate the required consolidation of equipment and space. Results from the simulation included key performance indicators and summary reports of the plant operations.
The simulation addressed various operating questions such as:
- What is the impact of increased volume on storage space requirements?
- How much packaging inventory is sufficient to maintain a regular flow of production?
- How fast will finished goods inventory turn based upon expected shipping schedules?
- How much space do we need between the Coaters and Bagging operations to accommodate the work-in-progress?
Cadbury Adams was provided with a Candy Production Plant Capacity simulation tool to test-out and validate the design of the consolidated confectionery manufacturing operation at the Hamilton plant in a risk-free virtual environment. Operating issues were identified and resolved in advance to reduce the commissioning time of the consolidated plant operation.
The simulation model highlighted the capabilities of the proposed plant layout to:
- Accommodate increases in throughput,
- Meet required delivery commitments,
- Satisfy product supply mix, and
- Determine the appropriate space requirements to accommodate finished goods and packaging materials.
The model also showed the operating limits of the plant and determined whether it was capable, under the proposed process flow design, to meet future target production volumes. It identified constraints that would prevent the plant from producing beyond the stated target levels. Under the new plant configuration in SIMUL8, capital costs were minimized and work-in-process, stocking levels and manpower requirements were reduced.