Learning Recognition Framework - LRF

Plan for Equipment

Bloom’s Taxonomy: LV & LVI

Definition

  • LI. Remembering: Exhibit memory of previously learned material by recalling facts, terms, basic concepts and answers.
  • LII. Understanding: Demonstrate understanding of facts and ideas by organizing, comparing, translating, interpreting, giving descriptions and stating main ideas.
  • LIII. Applying: Solve problems in new situations by applying acquired knowledge, facts, techniques and rules in a different way.
  • LIV. Analyzing: Examine and break information into parts by identifying motives or causes. Make inferences and find evidence to support generalizations.
  • LV. Evaluating: Present and defend opinions by making judgments about information, validity of ideas, or quality of work based on a set of criteria.
  • LVI. Creating: Compile information together in a different way by combining elements in a new pattern or proposing alternative solutions.

Topic Description

Managers are often tasked with expanding manufacturing operations and acquiring new equipment for modernization of manufacturing and launching new products. This requires a deliberate planning process. Managers first need to evaluate the overall equipment effectiveness of existing equipment to identify opportunities for increased productivity, prior to purchasing equipment. Managers may also review opportunities for co-manufacturing instead of acquiring equipment to offset risk and minimize cost on novel production. When equipment is being considered and justified for purchase, there are elements of compatibility, equipment capacity, product cycling time, food safety and occupational health and safety that must be integrated into decision-making. Lastly, there are facilities, infrastructure, and commissioning requirements to ensure equipment physical and resource loads can be managed within the facility for new equipment. When new equipment is obtained, old equipment must be decommissioned.

Learning Objectives

LO1. Evaluate productivity of existing equipment and manufacturing systems

Evaluating the effective and productive use of existing equipment and infrastructure is the most cost-effective way to increase productivity and expand production. Application of Overall Equipment Effectiveness (OEE) and Theory of Constraints can identify if manufacturing productivity can be enhanced without requiring new equipment.

Detailed Competencies = Performance indicators include but are not limited to:
  • P1. Evaluate overall equipment effectiveness (OEE) by calculating availability, performance, and quality rates on each piece of existing equipment and online, preventive/predictive maintenance requirements and life expectancy, and metrics to evaluate equipment reliability such as Mean Time between Failure or Stop (MTTR/MTBS) and Mean Time To Repair (MTTR).
  • P2. Evaluate OEE of individual production lines and overall facility productivity.
  • P3. Evaluate Maintenance, Repairs, and Overhaul cost (MRO) of the equipment.
  • P4. Identify operational constraints in existing equipment and manufacturing systems.
  • P5. Exploit constraints within the manufacturing system to improve process flow.
  • P6. Subordinate manufacturing systems to the rate limiting step.
  • P7. Elevate the performance of the manufacturing constraint.
  • P8. Apply continuous improvement strategies.
  • P9. Coordinate sell-through rate and sales forecasts to manufacturing volume.
  • P10. Conduct risk assessment to identify the impacts of the equipment on Health and Safety.
LO2. Evaluate use of co-manufacturing to meet expanded production targets.

There are times when companies are launching new products where equipment acquisition seems to be the logical means of creating the new product. Co-manufacturing, when feasible, is often used as a way to mitigate the risk of equipment acquisition and give manufacturers the chance to test manufacturing strategies before acquiring equipment.

Detailed Competencies = Performance indicators include but are not limited to:
  • P1. Forecast estimated production volume and lifespan of the new product launch.
  • P2. Investigate co-manufacturing partners for essential equipment and infrastructure.
  • P3. Perform cost-benefit analysis to compare the economics of purchasing equipment, versus producing product through co-manufacturing.
  • P4. Evaluate timelines to acquire equipment compared to timelines for co-manufacturing for speed to market advantage.
  • P5. Quantify the value to the company of cross-training and observing alternative manufacturing systems during the co-manufacturing partnership.
  • P6. Investigate the advantages of transferring risk (financial, health and safety, compliance) to third parties.
LO3. Evaluate new equipment acquisition and financing opportunities.

When purchasing new equipment for manufacturing facilities, a thorough analysis is required to identify, cost, and compare equipment. A variety of features and benefits must be evaluated and compared, including technical specifications, financing, timelines for delivery, and other ancillary services. Managers must plan for financing and paying for equipment, and amortizing costs over time.

Detailed Competencies = Performance indicators include but are not limited to:
  • P1. Refer to procurement procedure:
  • P2. Identify that new equipment is required and the timing of the requirement.
  • P3. Describe the needs and specifications in sufficient detail to ensure that the correct equipment is procured, of the correct quality, at the correct time, in the correct place.
  • P4. Identify relevant equipment vendors.
  • P5. Obtain and review technical specifications for equipment.
  • P6. Obtain quotes for equipment cost. Evaluate supplier bids and make a choice of which supplier will provide the equipment.
  • P7. Evaluate compatibility with existing manufacturing equipment.
  • P8. Evaluate timelines for delivery of equipment.
  • P9. Determine financing opportunities for equipment which include:
    • a. identifying grants or loan programs (energy conservation or other programs) to incentivize equipment purchases; and
    • b. evaluating the total cost of ownership versus leasing.
  • P10. Determine amortization period on equipment costs.
  • P11. Compare warranty, service, Health and Safety and training agreements and requirements.
  • P12. Evaluate ease of access to service, parts, and repair services.
  • P13. Determine ability of in-house maintenance and repairs from maintenance and engineering teams.
  • P14. Evaluate ease of sanitation protocols, wastewater effluents treatment from process and sanitation
  • P15. Select and approve the optimal equipment.
  • P16. Negotiate purchase of equipment with equipment vendor.
  • P17. Create a purchase order.
LO4. Determine facilities and infrastructure requirements for new equipment.

When planning for acquisition of new equipment, the facilities and infrastructure requirements also need to be evaluated, to ensure equipment will be able to fit into the facility and have sufficient space for movement and production. Equipment also has utilities requirements that will impact on utility services. Managers must evaluate the infrastructure and plan for improvements as part of planning for equipment acquisition.

Detailed Competencies = Performance indicators include but are not limited to:
  • P1. Determine both the dimensional and physical space requirements for proposed equipment.
  • P2. Evaluate the movement spaces surrounding proposed equipment to ensure sufficient room for sanitation, movement of goods and personnel, inspection, and other operations.
  • P3. Determine the ability to physically transport equipment into the facility, and if any renovations or building modifications are required to get equipment installed.
  • P4. Determine the load bearing and vibrational requirements for equipment.
  • P5. Evaluate the gas, water, and electric utilities requirements.
  • P6. Determine wastewater and other waste streams produced by equipment.
  • P7. Determine if utilities upgrades are required to meet utilities demand of new equipment.
  • P8. Consider conducting an energy conservation study to identify savings and grant/funding opportunities.
  • P9. Quantify the impact of new equipment on heat, ventilation, and air conditioning.
  • P10. Determine if new fire suppression or ventilation requirements are required.
  • P11. Determine equipment Programmable Logic Controller (PLC), Supervisory Control and Data Acquisition (SCADA) and other internet connectivity requirements and computing peripherals for equipment integration, process control, and Enterprise Resource Planning (ERP).
LO5. Assess certifications and commissioning requirements for new equipment.

When new equipment is acquired, appropriate certifications are required, especially if equipment is imported. Equipment is typically commissioned and calibrated by the equipment manufacturer as part of the purchase agreement.

Detailed Competencies = Performance indicators include but are not limited to:
  • P1. Acquire equipment certifications required for safety and hygiene such as Canadian Safety Authority (CSA), National Sanitation Foundation (NSF), Underwriters Laboratories (UL), Technical Standard and Safety Authority (TSSA), and Intertek among others.
  • P2. Perform installation procedures in collaboration with the equipment vendor.
  • P3. Perform commissioning inspections with fire code, building code, food safety, and other inspection systems.
  • P4. Perform equipment operations, maintenance, and troubleshooting training with the equipment commissioning team.
  • P5. Perform equipment sanitation and deep cleaning training procedures with the equipment commissioning team.
  • P6. Calibrate the equipment with quality and food safety team and equipment commissioning team.
  • P7. Perform validation of food safety and quality process controls that are controlled by the equipment.
  • P8. Explore the “management of change” methodology to determine the impact of installation of new equipment on existing operations before starting the commissioning.
  • P9. Commission the equipment for production.
LO6. Create new Standard Operating Procedures.

New equipment requires new standard operating procedures. Managers must ensure new standard operating procedures and associated programs are updated to reflect the new equipment. Managers must also ensure new training procedures are developed and applied for workers using, cleaning, and maintaining the equipment.

Detailed Competencies = Performance indicators include but are not limited to:
  • P1. Create new standard operating procedures.
  • P2. Create new sanitation standard operating procedures.
  • P3. Integrate operating parameters and specifications into master production records for products.
  • P4. Integrate new equipment into manufacturing process flow diagrams, and facility schematics.
  • P5. Integrate new equipment into pre-operation inspection protocols and food safety inspections.
  • P6. Integrate new equipment into occupational health and safety protocols.
  • P7. Create training materials for the safe use, sanitation, calibration, validation, and maintenance of the new equipment.
  • P8. Create preventive maintenance schedule for new equipment.
  • P9. Explore advanced technologies such as Industrial Internet of Things (IIof), Artificial Intelligence (AI) and Machine Learning (ML), and predictive maintenance to keep the equipment safe, up and running.
LO7. Decommission old equipment.

Often when new equipment is being acquired, old equipment must be removed from the facility. A similar planning procedure for removal must take place. Managers are required to ensure environmental abatement is performed. Managers must identify the optimized reuse, resale, or recycling strategy for decommissioned equipment.

Detailed Competencies = Performance indicators include but are not limited to:
  • P1. Remove equipment from utilities and services.
  • P2. Perform environmental abatement and recovery as required.
  • P3. Investigate if equipment has potential use in other business units within the company.
  • P4. Identify resale or auction potential for used equipment.
  • P5. Investigate recycling and disposal for equipment.

 

 

Links to existing courses

NA

Approved Accredited Training Programs (Academic, Industries, Private Trainer)

NA

Recognition of worker skills = Certification

NA

Evaluation technics / assessment

  • Quizzes
  • Written tests
  • Multiple choice questions
  • Self-assessment and reflection

For the latest workforce development and planning information sign up for FPSC’s free newsletter

ABOUT US

RESOURCES

MEMBERSHIP

CONTACT US