MINIMIZING PRODUCT GIVE AWAY IN ALL PACKING PROCESSES AT HEMAS MANUFACTURING

Abstract

“Product Give Away” is defined as the amount which is packed more than the declared amount of a product. From the company’s point of view, it adds a value to the cost of production reduces the competitive edge and reduces profit margins. At present, product specifications of Hemas Manufacturing demand minimum net conteni of a product to be always equal to declared net conteni making “Product Give Away”. This project work is launched to establish new specification limits to minimize the Product Give Away for all prepackages produced by the Hemas manufacturing, according to the regulations of Measurement Units, Standards and Services Act no 35 of 1995 and at the same time assuring all processes are capable of adhering to the set legal limits. Raw material cost of Give Away producis was 6.95 million rupees and the cost of packaging materials required to pack the Product Give Away was 12.6 million rupees per year (November 2007- November 2008). Therefore to get a more realistic figure, the cost of packaging material, retail margin and distributor margins were deducted to calculate the saving from “Product Give Away” which is 50.7 million rupees as per list price per annum. 4M analysis and YY analysis were done in order to identify the root causes for the “Product Give Away” loss. Samples of producis were collected randomly and frequently from the Online production Unes and weighed and recorded to analyze the current loss and current process capabilities, then new specification limits- for all products were determined after a statistical analysis. Then new weight control and monitoring charts can be prepared by determined specification limits for all packaging processes and thereby loss due to “Product Give Away” was reduced which contributes to the company profit margins. As a further development, applying a suitable automation option, which have ability to capture weights on-line in the production process and display captured weights in a graph consisting of mean, Upper Control Limit (USL) and Lower Control Limit (LSL). Display window would be controlled by a Product ID card which is chiven by a bar code scanning for the In-Process control records.