PETpla.net Insider 05 / 2011

BOTTLING / FILLING 28 PET planet insider Vol. 12 No. 05/11 www.petpla.net Planning new factories for optimised production Expansion or greenfield? by Alexander Sixt, Divisional Manager Factory Planning, Krones AG, Neutraubling It is not unusual for Krones’ factory planning team to learn that it has just 18 months to get a customer’s new factory up, running and producing in market volumes. The request triggers a structured response, which takes all the client’s requirements and circumstances into account. Companies’ current situations vary. A beverage firm may be tied to a particular location and considering options for expansion. Another may be seeking to reduce headcount and to invest in automation. Yet another may be planning geographical expan- sion. Whatever the situation, it is the starting point from which the concept phase (pre-feasibility) is developed, leading to the initial proposal. The procedural framework for a complete new factory project begins with the clear definition of the goals. Detailed data has to be acquired and analysed, including product range, types of beverage, raw materials (including delivery, storage periods and quantities), the range of bottles handled and the closure and label variants. Pack sizes and pallet data complete the list. These particulars will be supplemented by individual, country-specific production vari- ables, such as personnel expenses or energy costs. Precise definitions of these basic data, plus (where neces- sary) the decision-making process on the client’s side, are supported and assisted by Krones’ factory planning team. Expand on-site or greenfield location? The concept phase will usually have identified whether the project will be expansion at the existing location or construction of a new plant on a greenfield site – many beverage com- panies prefer the greenfield option. For practical reasons, the most sensi- ble course is to commission a single vendor for the whole job; in a brewery, the brewhouse is closely connected to the building shell, so a coordinated approach with minimised interfaces makes sense. Krones has in-house capabilities for all the different tech- nologies involved. Optimisation measures can achieve enhanced performance even when a new production site is not an option; new logistical solutions con- tribute towards increased efficiency in the production process within the existing space. When structural altera- tions during ongoing operation are involved, the factory planning team coordinates the necessary work in order to minimise disruption. In both greenfield and brownfield concepts, the function of all produc- tion sequences is the paramount consideration in the planning pro- cess. The essential aim is to provide optimised interfaces between produc- tion, filling, packaging and logistical operations. Besides the flow of goods, energy and media supply has to be designed to state-of-the-art standards for all production zones. Recovery systems or recirculation concepts for compressed air, hot water or steam are designed with optimised piping configurations, in order to achieve efficiency gains. TCO: the decision-clinching criterion The concept phase, which will last eight to twelve weeks, produces a choice of proposals for the planned product portfolio. The most important question in selecting from different options is the total cost of ownership (TCO). Using exemplification param- eters, Krones can compare possible alternatives and identify priorities. Calculating the TCO may reveal that higher initial capital investment costs will enable the new facilities to pay for themselves quite quickly. For exam- ple, could the production operation The procedural framework for a complete new factory project begins with the clear definition of the goals.