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  1. Dow Corning Corporationdowcorning.com Russell Czolgosz January 22nd, 2010

  2. Pursuing our vision: • We are innovative leaders • unleashing the power of silicon • to benefit everyone, everywhere. Living our values: • Integrity • Employees • Customers • Quality • Technology • Sustainability • Safety 2

  3. Dow Corning locations worldwide Manufacturing Sites 3

  4. Serving customers’ diverse needs… 4

  5. Dow Corning innovating around the world • More than 7,000 products and related services • Approximately 25,000 customers • Over $5 billion in sales in 2008, globally dispersed with more than 60% outside the US • Approx. 10,000 employees worldwide • Aglobal leader in silicones and high purity silicon • Strong channels to market – distributors, web, commercial organization 5

  6. The Charge of Automation and Why Dow Corning Pursues it! Implement and support automation solutions, position strategic automation capabilities that ensure safety and security which generate savings of $100M - $150M over a five year period and sustain manufacturing operabilityby using best practices, standardized technologies, and leveraging existing expertise to accelerate manufacturing productivity.

  7. Spirit of S88 • S88 isn’t just a standard for software, equipment, or proceedures • It’s a way of thinking, a design philosophy • Understanding S88 will help you better design your processes and manufacture your products S88 works with ALL levels of automation

  8. S-88 Expectations • Decreased Batch Cycle Times • Increased Cell Productivity • Reduced Product to Market Commercialization Time • IE, New Recipe Creation • Configurable/Changeable Recipes • Consistent Product Quality • Standardized Vocabulary • New ways to SPC the process • Duration of Operations and phases

  9. 212 Building (Cell)Pulp/Paper Coatings • 5 types of Units - • Equilibration Kettles • Feed Tank • Volatiles Stripping • 60 recipes • Average Batch Time ~ 20 Hours • More than 2,100 batches / year / cell @ 90% OEE

  10. OEE – Overall Equipment Effectiveness • Availability = Operating Time / Planned Production Time • Performance = (Parts Produced * Ideal Cycle Time) / Available Time Ideal Cycle Time is the minimum cycle time that your process can be expected to achieve in optimal circumstances. It is sometimes called Design Cycle Time, Theoretical Cycle Time or Nameplate Capacity. • Quality = Good Pieces / Total Pieces • OEE = Availability x Performance x Quality • OEE Factors in downtime (scheduled and unscheduled), bad quality, and of not running at design rates

  11. Operator Graphics – Building Level (Cell)

  12. Operator Graphics - EMs

  13. Base Graphic

  14. Equipment Module Graphic • Discharge Phases: • Discharge Shutdown (all stop) • Discharge Back to Kettle (Recycle) • Discharge through Filter • Discharge through Heat Exchanger 1 • Discharge through Heat Exchanger 2 • Discharge through Heat Exchanger 1 & 2 • Discharge through Heat Exchanger 2 and Filter

  15. Recipe Structure

  16. A Simplier Breakdown • Original Code was 186 sequential steps, with 6 actions per step • New Code is 9 Equipment modules and 39 total phases • Jacket Temperature • Agitation • External Heat Exchanger • Vessel Pressure Blanketing / Vacuum • Raw Material Feeds • Catalyst Feeds • Atmosphere Inerting • Bottoms Liquid Recirculation / Filtration • Timing and Messaging • Discharge Phases (7): • Discharge Shutdown (all stop) • Discharge Back to Kettle (Recycle) • Discharge through Filter • Discharge through Heat Exchanger 1 • Discharge through Heat Exchanger 2 • Discharge through Heat Exchanger 1 & 2 • Discharge through Heat Exchanger 2 and Filter

  17. 62.8 UCL 37.4 UCL 31.3 Hours 24.5 Hours

  18. How did we get there? • Okay, so 22% reduction in average batch cycle time! Wow! • 2 ingredients were loaded in series • 2 ingredients are loaded in parallel • Agitation was started after both raw materials were loaded • Agitation starts as soon the bottom impeller is submerged • Mix time used to be 1 hour to ensure adequate mixing • Mix time was left at 1 hour… but ingredients are loaded at a constant ratio to each other • Heating began only when all ingredients were loaded and mix time completed • Heating begins just after kettle loading is 1/10 complete

  19. But I could do all that without S-88! • Yes, you could, if you knew it all in the beginning and, if things didn’t change… • But… Speed and agility are keys to new market successes • S-88 delivers value, because your equipment can be used to do whatever your equipment can do, which is more than it was meant to do.

  20. Typical Dow Corning Benefits • On average, a 15-25% decrease in batch cycle times (dependent on product mix) • Segmented and understandable chunks of code • Graphically organized procedures • Improved communications between control objectives, operations, logistics, and maintenance • New Product (recipe) creation has complete flexibility • Within the constraints of the equipment, not simply what you originally intended to do with it • Employees without specific process control knowledge and training can make recipe modifications and optimizations

  21. Wyeth-Ayerst LederleRecipe Case Study ControlGlobal.com, 10/25/2006 http://www.controlglobal.com/industrynews/2006/131.html • The presentation by Greyssi Campos, control systems engineer at Wyeth-Ayerst Lederle, showed how S88 was used to improve process batch control and plant operations at Wyeth's pharmaceutical plant in Carolina, Puerto Rico. • This plant produces various antibiotics using a variety of different recipes. Greyssi Campos

  22. Wyeth-Ayerst LederleCase Study, Cont. ControlGlobal.com, 10/25/2006 http://www.controlglobal.com/industrynews/2006/131.html • “Prior to our S88 implementation, it was very difficult to modify existing recipes or create new recipes.” • “Each recipe change had to be validated, and no recipe could be modified without the involvement of control system engineers. This was very time consuming and unwieldy.” • S88 fixed this problem at Wyeth by separating plant operations and process control into two categories.

  23. Wyeth-Ayerst LederleCase Study, Cont. ControlGlobal.com, 10/25/2006 http://www.controlglobal.com/industrynews/2006/131.html • “Before we implemented S88, each recipe change required new code, new graphics, and validation of both in addition to validation of the recipe.” • “S88 has saved us a tremendous amount of time and money by eliminating code and graphic validation when recipes are changed.” When a new recipe is created or an existing recipe is modified, Wyeth now only needs to validate the recipe itself because all of the unit operations that were combined and linked to create the recipe were previously validated.

  24. Recipe Creation • Graphically Driven – Drag and Drop • Doesn’t require controls experience to create or modify recipes • Users choice for parallel or series branching • At all levels of the recipe: • Parallel or Series Unit Procedures • Parallel or Series Operations • Parallel or Series Phases • Copy existing recipes to easily create new ones

  25. S-88 Limitations and Realistic Expectations • If you can’t sell it, you can’t make more of it! • Decreased batch times are only realized if product demand goes up accordingly • Especially for single product units/cells • Despite reductions in batch time, sales remained stable, and actually declined heading into the economic recession • The Cell/Unit is still only as good as its weakest link • Don’t forget to bolster your reliability • New processes are perfect for S-88 • Do it right the first time

  26. 207 Building (Cell)Silicone Rubber Production • Only 3 Types of Units - but 22 Units in all • High Consistency Rubber Mixer (Qnty 7) • Low Consistency Rubber Mixer (Qnty 4) • Bulk Filler Hopper (1/mixer = Qnty 11) • 16 equipment modules / 30-40 phases • 1,100 Active Recipes • Average Batch Time ~ 4 hours • More than 21,000 batches / year / cell @ 90% OEE

  27. Innovation is at the core of what we do This growth rate and “development to market speed” hinge on the flexibility that S-88 implementations provides! • 15-20% of our products and services are less than five years old • 4-5% of sales is spent on R&D • Approximately 50% of R&D is spent on sustainability-related projects • More than 4,000 active patents • Beyond products -> solutions 30

  28. Growing globally & S-88 is used throughout Zhangjiagang, China Hemlock, Mich. (USA) S-88 experience and understanding is preferential to Dow Corning’s hiring and is a competitive advantage. Pune, India 31

  29. Thank-you and are there any Questions? dowcorning.com 32