Remember that game show the Weakest Link?

The first step in maximizing your throughput is identifying your constraint, or bottleneck. Take the efficiency of each machine and multiply it by its maximum rate. This will give you the net rate of each machine. The machine with the lowest net rate is your constraint and your goal should to keep it running as fast and as often as possible.

Example:
A simple packaging line: (ppm = products per minute)

Some interesting notes:

• Each machine runs 92% or higher, but the line net efficiency is only 83.9%. This is because downtime on just one machine shuts down the whole line (ie. if the Casepacker jams, the Filler and the Labeler also shut down). The net efficiency of the line is calculated by multiplying the efficiencies of each machine in sequence:
  0.94 * 0.97 * 0.92 = 0.839 = 83.9%
• To get the overall line speed, multiply the net efficiency by the max rate of the slowest machine: 0.839 * 200 = 167.7 ppm
• The machine with the lowest net rate is the labeler (194 ppm), making it the constraint. 194 ppm is the upper limit of what we can achieve on this line.

So how do you achieve the upper limit of 194 products per minute? By making sure downtime on the Filler and Casepacker don’t ever cause the Labeler to shut down. By adding an accumulation table in between the Filler and the Labeler, you are segregating the line into two separate systems. This breaks the compounding effect of the machine efficiencies.

Since the line is now in two sections, we have to calculate their throughput separately. The throughput of the first section is 282ppm (0.94 * 300 ppm = 282 ppm). The throughput of the second section is 178.5 ppm (0.97 * 0.92 * 200 ppm = 178.5 ppm). We are still limited by the bottleneck of the second section, so the throughput of this line is 178.5 ppm, a 6.4% increase over our previous line.

Since we haven’t reach our upper limit of 194 ppm we should add another buffer between the Labeler and the Casepacker.

Now we’ve broken the line into three sections with each machine running independently. We have no compounding of efficiencies, so all we have to do is pick the lowest net rate of the machines. In this case, the Labeler’s net rate is 194 ppm and this is throughput of the line, a 15.7% increase over our original throughput of 167.7 ppm.

What does 15.7% mean to a company’s bottom line?

If you are having trouble meeting market demand for a product it could be huge.
Let’s say the line is running:
2, 8 hour shifts per day
7 days a week
Profit is a conservative 50 cents per product

2 shifts * 8 hours * 60 minutes / hour * $0.50 cents * 26.3 extra products per minute = $12,624.00 per day in additional revenue

Over six months it generates $2,203,880.00

there’s the issue of what is called sensation transference. This is a concept coined by one of the great figures in twentieth-century marketing, a man called Louis Cheskin, who was born in Ukraine at the turn of the century and immigrated to the United States as a child. Cheskin was convinced that when people give an assessment of something they might buy in a supermarket or a department store, without realizing it, they transfer sensations or impressions that they have about the packaging of the product to the product itself. To put it another way, Cheskin believed that most of us don’t make a distinction — on an unconscious level — between the package and the product. The product is the package and the product combined.

Liquor containers tend to be extreme

There has always been a fun battle between the marketing and production side of packaging. The Marketing Department comes up with a beautifullly unique, oddly shaped, off center bottle that enhances and improves the sensation transference while the Production Department has to produce the product efficiently enough so that the price point can be optimized. There are many things that can affect a bottle’s ability to be efficiently produced, such as the center of gravity, material type, side contour, contact surfaces, etc. My experience is solidly on the production side of packaging, and that’s why posts like this on the amazing packaging design blog, TheDieline, give me nightmares.

50 Favorite Liquor Package Designs

It also keep us in business.