Waste Reduction and Productivity Improvement in a Pack Manufacturing Company

Abstract

ALFA PACK factory is a carton manufacturing company established in 2013 to meet the growing demand for high-quality packaging. The factory is located in the 3rd Industrial Zone in 6th of October City, Egypt. The factory aims to provide packaging products that meet the needs of various industries such as food manufacturing, furniture, clothes, technology industries, etc. After investigating the production line, three problems were observed: the first is the production doesn’t meet the customer demand because there is bottleneck in the production line. The second, 8.74% of cardboard roll is wasted during transportation of the cardboard roll by means of forklift. Third, the 30% wasted time during the setup process per shift of die-cutting and carton shaping machine. This project aimed to increase productivity and reduce waste across the cardboard production process. To achieve this, several lean manufacturing tools were implemented, including line balancing, 5S methodology, time study, and improved roll handling systems. As a result, production capacity significantly increased particularly in the bottleneck overall productivity from 67% to 83.9% and raw material waste was reduced to 2.5%. The improvements contributed to a more stable, efficient, and cost-effective production line capable of meeting customer requirements more reliably. These improvements led to significant financial and operational gains. The reduction in raw material waste saved the company approximately 62,000 LE per month. Enhanced productivity allowed the factory to fulfill more orders, generating an estimated 54,000 LE in additional monthly revenue. Moreover, improvements in machine setup and product quality contributed to further savings of around 3,000 LE per month. In total, the project outcomes achieved over 130,000 LE in monthly financial benefits while ensuring higher efficiency, reduced delays, and improved production stability.