Cigar Box 3 Operational Monitoring System By Anushik Tadevosyan Global Facts

What you can do with Cigar Box 3 Operational 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 CB3 Collecting daily data Analyzing data Benchmarking

1. Collecting data You 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 Data You 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. Benchmarking For 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 KPI’s If you have data – You can make analyzes – You will find your KPI’s – Then do benchmarking of your KPI’s For different production there are different KPI’s

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 measurement Operational routines (frequency, reporting, responsibilities)

Knowledge a. What is going right? b. What is going wrong? Archive documents Input in CB3 database Analysis Output formats and report on KPI’s

Causes of problems List causes of red lights

Solutions Try to formulate solutions for the key problems – Inside the company – Outside the company from expert consultants Implement solutions  Improvement Measure improvements  New cycle

Exercise List products and production processes for each client List likely KPI’s per production process Global Facts can provide internationally acceptable benchmarks (green, orange, red)

You 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 profitable You can plan your resources … – Market, Raw Materials, Production, – Personnel, Equipment, … You can plan your finance … – To see when you will have financial crises – Organize investment in time