COVER PAGE FOR FINAL PROJECT DOCUMENT(BPJ 420)

DEPARTEMENT BEDRYFS- EN SISTEEMINGENIEURSWESE DEPARTMENT OF INDUSTRIAL AND SYSTEMS ENGINEERING

COVER PAGE FOR FINAL PROJECT DOCUMENT(BPJ 420) - 2012

Information with regards to the mini-dissertation Project Title: (e.g. A Contingency framework for the after-sales inventory at Nissans Part Distribution Centre)

Facility Plan for Unilever

Author (Last name, Initials) Mbatha W.P Student number 26481121 Supervisor/s (Last name, Initials) Kruger P.S Date (month/day/year) September-05-2012 Keywords (Provide keywords from your project (for searching purposes). The first word of two words must always have a capital first letter and the rest of the words following must be lower case. In the event of an abbreviation, use as it is known. E.g. Economic recession, ABSA, ERP, Simulation modelling)

Unilever Facilities Plan, Project Waterfall

Abstract (Provide an abstract of the mini-dissertation. An abstract is a short summary of the contents covered in the item.)

Using systems dynamics and facilities planning principles to overcome inventory planning and Flow design for a fast moving goods factory.

Category (Enter the category in which the project was done. E.g. Operations Research, Simulation, Logistics…)

Facilities Planning, Industrial Analysis

Declaration 1. I understand what plagiarism is and I am aware of the University's policy in this regard. 2. I declare that this is my own original work 3. Where other people's work has been used (either from a printed source, internet or any other source) this has been carefully acknowledged and referenced in accordance with departmental requirements 4. I have not used another student's past work to hand in as my own 5. I have not allowed and will not allow, anyone to copy my work with the intention of handing it in as his/her own work Handtekening Signature

A Facility and Work Flow design for Unilever

by

Wiseman P. Mbatha 26481121

Submittedinpartialfulfilmentoftherequirementsfor thedegreeof

BACHELORSOFINDUSTRIALENGINEERING

inthe

FACULTYOFENGINEERING,BUILTENVIRONMENTANDINFORMATION TECHNOLOGY

UNIVERSITYOF PRETORIA

October 2012

Executive Summary

The main aim of this document is to serve as a design recommendation and a recorded documentation for the tactical decisions that had to be made when designing the factory. The report also serves as a design guide line for future projects that will be done by Unilever. The document was created by a student from the University of Pretoria as part of his final year project.

An appendix with the designs and simulation models will be attached at the end of the document. When developing the designs the student had to do research on best practices available in the industry this was done by consulting companies, going on reliable internet sources recommended by the departments’ library and reading articles relating to the subject.

The major challenge that was faced throughout the project is that decisions are made as the project progresses but using industrial and systems engineering a reliable team of people the project progressed without major design problems. The key to the success of the project is that the company keeps record of most of their work which makes it easier to retrieve information when needed.

Table of Contents Executive Summary .................................................................................................................. i

Table of Figures ....................................................................................................................... v

1 Introduction ...................................................................................................................... 1

2 Project Description ........................................................................................................... 2

3 Expected Project Outcomes ............................................................................................ 3

First Outcome ...................................................................................................................... 3

4 Interim Report findings summary and review .................................................................. 4

4.1 Purchasing Extra piece of land ................................................................................. 4

4.2 Layout Options ......................................................................................................... 5

5 Literature Review ............................................................................................................. 6

General ................................................................................................................................ 6

Efficient operation ................................................................................................................ 7

Picking best practices .......................................................................................................... 7

5.1 Material handling equipment .................................................................................... 9

5.1.1 Material handling trends in 2012 ....................................................................... 9

5.2 Forklift power sources ............................................................................................ 11

5.2.1 Electric forklift considerations .......................................................................... 11

5.2.2 Gas versus Electric Folklifts ............................................................................ 12

5.2.3 Hydrogen forklifts ............................................................................................ 13

5.3 Forklift types ........................................................................................................... 13

5.3.1 Hand operated forklifts .................................................................................... 13

5.3.2 High-level forklifts ............................................................................................ 14

5.3.3 Heavy duty forklifts .......................................................................................... 14

5.3.4 Narrow isle trucks ............................................................................................ 14

5.3.5 Forklift type comparison .................................................................................. 15

5.4 Automated storage ................................................................................................. 15

5.5 Storage equipment ................................................................................................. 16

5.5.1 Racking options ............................................................................................... 16

5.6 Conclusion on Literature Review ............................................................................ 16

5.7 Key inbound considerations ................................................................................... 17

5.8 Key outbound considerations ................................................................................. 17

6 Design Approach ........................................................................................................... 18

7 Inbound Material Flow ................................................................................................... 19

Inbound process flow ........................................................................................................ 24

8 Systems Dynamics Factory model ................................................................................ 28

8.1 Modelling approach ................................................................................................ 29

8.2 Analysis parameters of the model .......................................................................... 30

8.3 Inventory Calculations ............................................................................................ 31

8.3.1 Loading bay space requirement for white bottles ............................................ 31

8.3.2 Loading bay space requirement for Lavender Bottle inventory ....................... 32

8.3.3 Rack space requirement ................................................................................. 33

8.3.4 Packaging Cases Inventory ............................................................................. 34

8.3.5 Raw Material Inventory .................................................................................... 35

8.3.6 Total Number of Pallets in the warehouse ...................................................... 36

8.3.7 Analysis of the results ..................................................................................... 36

8.3.8 Empty pallets and waste management ........................................................... 37

8.3.9 Analysis of results ........................................................................................... 37

8.4 Warehouse layout options ...................................................................................... 38

8.4.1 Storage design considerations ........................................................................ 38

8.4.2 Requirements for receiving ............................................................................. 38

8.4.3 The block layout .............................................................................................. 38

8.4.4 The proposed warehouse layout ..................................................................... 39

8.4.5 Warehouse with loading bays ......................................................................... 40

8.5 Labelling the Racking System ................................................................................ 41

8.5.1 Raw material allocation ................................................................................... 44

9 Processing and Packaging of material .......................................................................... 46

9.1.1 Packaging Process description ....................................................................... 46

9.1.2 Handy Andy Making Process Description ....................................................... 48

9.1.3 Allocation of Packaging lines ........................................................................... 49

9.1.4 Pouch line 1 ..................................................................................................... 50

9.1.5 Sunlight Bottle line ........................................................................................... 51

9.1.6 Domestos and Omo ........................................................................................ 52

9.1.7 Handy Andy line .............................................................................................. 54

9.1.8 Fabric Softener ................................................................................................ 55

9.1.9 Challenge ........................................................................................................ 56

9.2 Product Rework Handling ....................................................................................... 58

9.3 Space and Ergonomic Requirements ..................................................................... 58

10 Outbound Material Flow ............................................................................................. 59

10.1 Finished Goods inventory Graph ............................................................................ 62

10.2 Finished Goods warehouse .................................................................................... 63

10.2.2 Available layout options ................................................................................... 63

10.3 Palletizing principles ............................................................................................... 64

11 Conclusion and Recommendations ........................................................................... 65

11.1 Final recommendations .......................................................................................... 65

12 References ................................................................................................................. 66

13 Appendix A ................................................................................................................. 67

13.1 Tree diagram .......................................................................................................... 67

13.2 Analytical Hearachy Process .................................................................................. 68

14 Appendix B ................................................................................................................. 71

15 Appendix B ................................................................................................................. 72

15.1 Inventory Model ...................................................................................................... 72

15.2 Appendix C ............................................................................................................. 76

16 Appendix D ................................................................................................................. 77

Table of Figures Figure 1: Unilever Boksburg ................................................................................................... 1 Figure 2: Boksburg Current Liquids factory ............................................................................ 2 Figure 3: Alternative layouts ................................................................................................... 5 Figure 4: Combined inbound flow analysis ........................................................................... 27 Figure 5: Systems Engineering Model .................................................................................. 28 Figure 6: Simulation approach .............................................................................................. 29 Figure 7: Causal relationship diagram .................................................................................. 30 Figure 8: Stock and flow diagram ......................................................................................... 30 Figure 9: White bottle inventory ............................................................................................ 31 Figure 10: Lavender Bottle inventory .................................................................................... 32 Figure 11: Wrapping Plastic and Caps inventory .................................................................. 33 Figure 12:Cases Inventory .................................................................................................... 34 Figure 13: Raw material inventory ........................................................................................ 35 Figure 14: Total raw material inventory ................................................................................. 35 Figure 15: Total material inventory ....................................................................................... 36 Figure 16:Empty Pallet inventory .......................................................................................... 37 Figure 17: Original Fishbone Warehouse Layout ................................................................. 39 Figure 18: Fishbone Warehouse Layout ............................................................................... 40 Figure 19: Material Allocation Criterions ............................................................................... 41 Figure 20: Packaging Process .............................................................................................. 47 Figure 21:Shelf allocation strategy ........................................................................................ 49 Figure 22: Handy Andy and Sunlight Pouches ..................................................................... 50 Figure 23: Sunlight Bottle ...................................................................................................... 51 Figure 24: Domestos and Omo Bleach Bottles ..................................................................... 52 Figure 25: Handy Andy ......................................................................................................... 54 Figure 26: Sunlight Fabric softener ....................................................................................... 55 Figure 27 .............................................................................................................................. 68 Figure 28 .............................................................................................................................. 68 Figure 29 .............................................................................................................................. 69 Figure 30 .............................................................................................................................. 69 Figure 31 .............................................................................................................................. 69 Figure 32 .............................................................................................................................. 70

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BPJ 4210 Octo

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age | 21

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age | 22

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BPJ 4210 Octo

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age | 23

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BPJ 4210 Octo

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Table 2: T

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age | 24

material

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BPJ 4210 Octo

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in accumulis allowed fand one 48

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BPJ 4210 Octo

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age | 26

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BPJ 4210 Octo

7.1.1.2

EquipmentTime

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Figure 4: C

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age | 27

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BPJ 4210 Octo

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age | 28

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BPJ 4210 Octo

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age | 29

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BPJ 4210 Octo

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age | 30

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BPJ 4210 Octo

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Figure 9: W

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age | 31

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8.3.5 The gramateria

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age | 38

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8.4.4 The follresearclayout f

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