industrial engineering full report
DESCRIPTION
Production Planning Control PPCTRANSCRIPT
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PRODUCTIVITY IMPROVEMENT USING INDUSTRIAL ENGINEERING
TOOLS
S.KESAVARMA, MOHD FIRDAUS BIN MAT YAJID, MUHD HAIKAL, ELLYZA
SYUHAIDAH
and NADIA ASMUNI
Faculty of Mechanical Engineering, Universiti Malaysia Pahang,
26600 Pekan, Pahang, Malaysia
Email : [email protected]
ABSTRACT
This study focuses on the productivity improvement using Industrial Engineering tools at a Kedai
Keropok Keping Pn Bedah which is located at Kampung Peramu Jaya Tiga, Kawasan
Perindustrian Peramu Jaya, 26600 Pekan, Pahang Darul Makmur. The company is ran by the
owner, Pn Bedah who is also a worker in that shop, together with 4 workers. Based on the study
conducted, it is learnt that improvement can be made in certain aspects. Firstly, the proper company
layout, where the time taken and the distance covered to execute a work is quite big. To shorten
this factors, a solution has been found is that the working layout introduced in order to reduce
unwanted movements. Second problem encountered, unbalanced cycle time and unwanted
movements spotted. Therefore, line balancing is carried out to reduce time after the analysis with
the activity chart and also the operation chart. Thirdly, it is identified that the production does not
meet demand. Three methods introduced to overcome production deficiency. All the new ideas
and solutions have been obtained with the help of the Industrial Engineering technique.
INTRODUCTION
Industrial engineering is a branch of engineering that deals with the optimization of complex
processes or systems. It is concerned with the development, improvement, implementation and
evaluation of integrated systems of people, money, knowledge, information, equipment, energy,
materials, analysis and synthesis, as well as the mathematical, physical and social sciences together
with the principles and methods of engineering design to specify, predict, and evaluate the results
to be obtained from such systems or processes. Its underlying concepts overlap considerably with
certain business-oriented disciplines such as operations management. Depending on the fields or
specific skills involved, industrial engineering may also be known as, or overlap with, operations
management, management science, operations research, systems engineering, manufacturing
engineering, ergonomics or human factors engineering, safety engineering, or others, depending
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected] -
on the viewpoint or motives of the user. The place of case study is Kedai Keropok Keping Pn
Bedah. The business is undertaken by Pn Bedah bt Raob. The business is being carried out for
more than 25 years. The owner is 55 years old at the date of the case study was carried out. There
are six employees working in this company. The product that being manufactured is a traditional
fish cracker snack of Malay called Keropok Keping. It is slightly greyish in colour and tastes fishy.
There are two types of traditional fish crackers of Malay. Keropok Lekor Goreng is shaped into
sausage size and tastes chewy, whereas Keropok Lekor Keping is shaped into slices and has
crispier texture. The raw material is Tamban fish delivered by Pak Husin from Kuala Pahang.
Figure 1: The place of case study chosen that is Kedai Keropok Keping Pn Bedah
PROBLEM FORMULATION
Case study under Industrial Engineering subject carried out in Kedai Keropok Keping Pn Bedah
which is located in Kampung Peramu Jaya Tiga, Kawasan Perindustrian Peramu Jaya, 26600
Pekan, Pahang Darul Makmur. The product produced by this company is traditional Malay
cracker. The problem are as tabulated below:
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Table 1: The detailed description of problems for the case study
PROBLEMS CURRENT
PRACTICES
DESCRIPTION
Layout
Improper workstation
arrangement
The movement from one
station to another that follows
the production sequence
overlaps
Current distance
Non-systematic arrangement
covers big unnecessary
walking distance
Unbalanced cycle time Time taken for each process at
each station
The time taken to finish each
process is not in an orderly
manner causing other works to
delay just because particular
process that took longer time
than others
Production < Demand Lacking in output
The production always does
not meet the demand since
workforce is not enough
COST INFORMATION
Table 2: The cost description of problems for the case study
PARTICULARS DETAILS OF THE COST
Labor Rm2.70 per labour hour
Energy Rm150 per month
Raw material Current market price
Capital cost Rm480 per year
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PRODUCTION FLOW CHART
no
No
Start
Cleaning
Washing
Kneading
Smooth
structure Yes
Shaping
Boiling
Shipping
Freezing
Cutting
Arranging
A
-
No
Shipping: The raw material (Tamban fish) delivered to the company in the morning by Pak
Husin.
Cleaning: The internal organs and scales of the fish being removed.
Washing: The cleaned fish washed with salt water followed by clean water to kill germs.
Kneading: Wheat flour is mixed with water, salt, and sugar to prepare the dough. The dough
is then mixed with fish and kneaded until smooth texture is obtained.
Shaping: The dough is shaped into cylinders.
Boiling: The cylindrical dough is boiled for minimum six hours.
Freezing: The boiled dough is kept frozen overnight.
Cutting: The dough is sliced into small and thin pieces.
Arranging: The slices are arranged in an orderly manner without overlapping each other.
Drying: The arranged slices are dried under hot sun for minimum six hours and extended if
weather problem persists.
Packaging: The dried slices packed into 1 kilogram packets.
Selling: The packets are transported by means of lorries to retail shops.
End
Good weather
Yes
Drying
Packaging
Selling
A
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PROBLEM 1: LAYOUT
Process layouts are found primarily in job shops, or firms that produce customized, low-
volume products that may require different processing requirements and sequences of
operations. The current layout shows that there are unwanted distances exist in between
the stations and there are movements that overlap each other.
Figure 3: Original layout with improper workstations of each process is not in a good position.
The owner doesnt use the space correctly.
Figure 4: Improved layout that completely utilizes the space inside the company. The arrangement
of work station for each process is in a good position by use a space correctly. Because of the
machine can easily move, there are no fixed position layout we must follow.
Cleaning board
Washing board
truck
truck
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Figure 5: The total distance covered by the original layout for one complete process cycle is 42
meter. There are repetitive movements in between workstations that are against the process flow.
Figure 6: The improved layout states that the distance covered by the process flow in improved
layout is 22 meters. Besides, the items that are ordered frequently should be placed close together
near the entrance of the facility, while those ordered less frequently remain in the rear of the
facility, that are in workstation 12. By using new layout, the factory can produce flexibility. The
factory has the ability to handle a variety of processing requirements.
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PROBLEM 2: UNBALANCED CYCLE TIME
Table 3: There are unbalanced cycle time that affects the total process to delay at some
workstations that need quite longer time due to poor worker distribution.
Elapsed
Time
0:00 4:00 7:00 10:00 13:00 16:00 18:00 21:20 24:20
Task
Time,m
4 3 3 3 3 2 3.2 3
Task 1.
shipping
2.
cleaning
3.
washing
4.
wrapping
5.
kneading
6.
shaping
9.
cutting
10.
arranging
12.
packaging
Figure 7: The assembly line is balanced and the worker distribution in each workstations is
improved so that the cycle timing is almost even and in an orderly manner.
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Table 4: Development of a precedence diagram for an assembly line.
Task Assembly Time (minutes) Task Must Follow Task Listed
Below
A 4 -
B 3 A
C 3 B
D 3.5 C
E 3.3 D
F 6 E
G 2880 F
H 2 G
I 3.2 H
J 300 I
K 3 J
A Cleaning
B Washing
C Wrapping
D Kneading
E Shaping
F Boiling
G Freezing
H Cutting
I Arranging
J Drying
K Packaging
Figure 8: The precedence diagram
A B C D
H
G F E
I K J
4 3.5 3 3 2880 6 3.3
3.2 2 300 3
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Balancing the assembly line:
Production time available per day = 20packet 25minute = 500minutes
Unit required per day = 20packet
Cycle time in minute =
Cycle time in minute = 500
20= 25minutes/unit
Figure 9: Solution that is introduced is a seven-station the line balancing problem
Figure 10: The edge peak distribution which looks like the normal distribution except that it has a
large peak at one tail. Usually this is caused by faulty construction of the histogram, which shaping
have lots more defects than packaging.
0
2
4
6
8
10
12
cleaning washing kneading shaping cutting packaging
PROCESS DEFECTS PER KG INSPECTION
avg
WS1 WS4 WS3 WS2
WS6 WS5 WS7
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PROBLEM 3: PRODUCTION DOES NOT MEET DEMAND
Research done of Kedai Keropok Keping Pn bedah and there are 4 workers working in the
company. The working hours is 8 hours per day from 8.00 a.m. to 5.00 p.m. excluding lunch hour
of one from 12.00 p.m. to 1.00 p.m. Certain information gathered from the owner, Pn Bedah that
the daily output of the company is 20 packets of Keropok Keping each weighing 1kilogram. These
products mainly exported to Terengganu, Kedah and Johor. The orders are quite constant since
their product is favoured by loyal customers. The Keropok Keping is made on daily basis to fulfil
monthly demand of 600 packets. Yet, the daily productivity does not meet the demand and there
is always shortage of product delivery.
Table 5: The production details of October 2014
DEMAND PER MONTH = 600 PACKETS X 1KG
CURRENT DAILY OUTPUT = 20 PACKETS X 1KG
CURRENT MONTHLY
OUTPUT
= 20 PACKETS X 6 DAYS PER WEEK X 4 WEEKS
= 480 PACKETS X 1KG
480 PACKETS (CURRENT) < 600 PACKETS (DEMAND)
Table 6: Proposed production to fulfil monthly demand
DAILY OUTPUT
(EXPECTED)
= 600 PACKETS / (6 DAYS PER WEEK X 4 WEEK)
= 25 PACKETS
Productivity =
Units produced per month = 480 packets
Labour hours = 4 labours X 8 hours a day X 6 days per week X 4 weeks per month
= 768 hours
Productivity =
-
= 480
768
= 0.625 packets produced per labour hour
Multifactor Productivity
Units produced in a month
Total cost spent per month
Multifactor Productivity
=
= 480 packets
= Labour salary + Raw material + Energy + Capital
= 2073.60 + 1162.00 + 150.00 + 40.00
= RM 3425.60
= 480
3425.60
= 0.140 units produced per RM spent
Work study
Shipping the supplier will sent the fish stock to the stall every morning at 7.00 oclock. The
workers of supplier will put the fish barrel at the kitchen so that the process of cleaning the fish
easier.
Cleaning cleaning process involves three workers who have a great skills. The process only take
15 seconds per fish. The workers use a knife pull out the scale and abdomen, The left hand of
workers will take the fresh fish from her left side. The hand that hold the knife is right hand. After
the all part is excluded, the fish will put into the basket at the right hand side while the excluded
part is put into the basin that is below of the flank. This position while complete this is sitting.
Washing the basket in the left side contain the fish that are still havent washed while the fish
that had washed is placed in the right side basket.
Kneading- the fish is wrapped in a plastic and placed in a freezer if the process of kneading is
carried on another day. Each plastic contains 10 kg of fish. When the worker want to knead the
fish and flour, they just have to take the plastic bags. The worker will weighing and put in plastic
the flour. The weight of the floor also for 10 kg for each plastic. Every kneading process is need
10 kg of fish, add with 10 kg of flour. This is because the machine that used is only to contain 20
kg of weight. The standard time is 10 minutes.
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Shaping- this process is done just after the kneading process. The dough will be shaped in
rectangular shape. The size of dough is depend on the workers and there is no precise measurement.
This process is done using both hand in standing position. There are 2 workers involve in shaping.
Boiling-this process is to make the dough half cook. This process include the large pot where can
contain 10 liters of water. Usually there can contain 10 piece of dough that had been shaped in
rectangular size. The duration usually 2 hours. There are 2 large scale pot used in boiling process.
Freezing- this process is to harden the dough. The duration usually 2 days.
Cutting- this process is settled using cutting machine. The time taken to cut the dough that have
been recorded is around 2 minutes depends on the length of dough. The worker will take the dough
from the freezer that just besides the cutting machine and put on the platform. Then after switch is
turn on, the cutter will cut the dough until the end of dough. The dough is move automatically.
Arrange-the worker will arrange the crackers on the 2m*2m platform. The platform is made up
from the wire net. There are 3 worker involve in arrange process.
Dry- this process to remove the water in the cracker. The workers will bring the platform and put
at the courtyard that locate at the left and right side of the stall and let it in 5-6 hour depend on the
weather. The distance the courtyard from the stall around 3 meter.
Wrapping each pack is 1 kg of crackers. The price is RM 15 per pack. There are 2 workers
(usually the owner and her husband) involved in this.
Table 7: Allowance factor for each process
Task Personal
Allowance
Basic
Fatigue
allowance
Standing
Allowance
Bending
Position
Lifting,
Pulling,
Pushing
Heat
&
Humidity
Close
Attention
Tediousness Total
Cleaning 5 4 2 3 2 16
Washing 5 4 2 3 2 16
Wrapping 5 4 2 2 2 15
Kneading 5 4 2 2 2 15
Shaping 5 4 2 2 13
Boiling 5 4 2 2 3 3 19
Freezing 5 4 2 2 3 1 17
Cutting 5 4 2 3 2 16
Arranging 5 4 2 2 2 15
Drying 5 4 2 2 13
Packaging 5 4 2 2 12
Time study
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Table 8: Normal time calculations done using performance rating and allowance factor
Table 9: Normal time of the one cycle of production process
Cleaning 4.0 x 0.98 = 3.92 min
Washing 3.0 x 1.00 = 3.0 min
Wrapping 3.0 x 1.00 = 3.0 min
Kneading 3.5 x 0.98 = 3.43 min
Shaping 3.3 x 0.98 = 3.234 min
Cutting 2.0 x 0.98 = 1.96 min
Arranging 3.2 x 0.90 = 2.88 min
Packaging 3.0 x 1.00 = 3.0 min
Total Normal Time = 3.92 + 3.0 + 3.0 + 3.43 + 3.234 + 1.96 + 2.88 + 3.0
= 24.424 min
Table 10: Standard time of the one cycle of production process
Cleaning 3.92 / (1 0.16) = 4.6667 min
Washing 3.0 / (1 0.16) = 3.5714 min
Wrapping 3.0 / (1 0.15) = 3.5294 min
Kneading 3.43 / (1 0.15) = 4.0353 min
Shaping 3.234 / (1 0.13) = 3.7172 min
Cutting 1.96 / (1 0.16) = 2.3333 min
Arranging 2.88 / (1 0.15) = 3.3882 min
Packaging 3.0 / (1 0.12) = 3.4091 min
Task Time Taken
(min)
Performance
Rating (%)
Allowance
Factor (%)
Cleaning 4 98 16
Washing 3 100 16
Wrapping 3 100 15
Kneading 3.5 98 15
Shaping 3.3 98 13
Boiling 6 100 19
Freezing* 2880 100 17
Cutting 2 98 16
Arranging 3.2 90 15
Drying* 300 100 13
Packaging 3 100 12
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Total Standard Time = 4.6667 + 3.5714 + 3.5294 + 4.0353 + 3.7172 + 2.3333 + 3.3882 +
3.4091
= 28.6506 min
*Freezing, drying and boiling time are excluded since no improvement can be made (mandatory)
Table 11: Improved process chart that includes balanced cycle time
PROCESS CHART
Present Method
Proposed Method
SUBJECT CHARTED : Keropok Keping Production DATE : 1 NOV 2014
Distance in
meter, (m)
Time in
minute, (m)
Chart Symbols Process Description
6 From truck 1 to cleaning table (table 2)
4 Operation at table 2 (cleaning)
0.1 Move to table 3
3 Operation at table 3 (washing)
0.3 Move to table 4
3 Operation at table 4 (wrapping)
1 Move to machine 5
3.5 Operation at machine 5 (kneading)
Poka-yoke Poka-yoke inspection for surface smoothing
1 Move to table 6
3.3 Operation at table 6 (shaping)
0.3 Move to machine 7
6 Operation at machine 7 (boiling)
1.4 Move to machine 8
2880* Operation at machine 8 (freezing)
0.5 Move to machine 9
2 Operation at machine 9 (cutting)
10.4 Move to table 10
3.2 Operation at table 10 (arranging)
300* Operation at table 10 (drying)
1 Move to table 11
3 Operation at table 11 (packaging)
22 31 TOTAL
*Excluded since mandatory process cycle time
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Hire / layoff (planning 1)
Table 12: Cost information of monthly expenditure
PARTICULARS DETAILS OF THE COST
Current workforce 4
Labour hours/packet 0.625 hours
Workdays 24 days
Beginning inventory 0
Table 13: Other cost information in aggregate planning
COSTS DEMAND
Holding cost Rm3 per unit per month June 480
Subcontracting cost Rm8 per unit July 700
Regular time labour Rm2.70/hour August 720
Overtime labour Rm5/hour for hours above 8 hours September 800
Hiring cost Rm30/worker October 600
Layoff cost Rm70/worker November 550
Table 14: Aggregate planning for hiring/layoff
MONTH UNIT
DEMAND
(PACKET
OF 1KG)
BEGINNING
INVENTORY
UNIT
REQUIRED
HOURS
NEEDED
TO
PRODUCE
PERSONNEL
REQUIRED
AT 24 DAYS
AT 8 HOURS
PERSONNEL
ON STAFF
UNIT
PRODUCED
ENDING
INVENTORY
HIRE LAYOFF COST
(HIRE
OR
LAYOFF)
MAY
0
4
-
JUNE
480
0
480
768
4
4
480
0
-
-
-
JULY
700
0
700
1120
5.83
6
720
20
2
-
60
AUGUST
720
20
700
1120
5.83
6
720
20
-
-
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SEPTEMBER
800
20
780
1248
6.5
7
840
60
1
-
30
OCTOBER
600
60
540
864
4.5
5
600
50
-
2
140
NOVEMBER
550
50
500
800
4.17
5
600
100
-
-
-
Average Requirement =
= 3850
144
= 26.74 units per day
27 units per day
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Table 15: Monthly demand, number of production days and demand per day
Month Expected Demand
Production
Days
Demand Per Day
(computed)
June 480 24 20
July 700 24 30
August 720 24 30
September 800 24 34
October 600 24 25
November 550 24 23
3,850 144
Table 16: Cost information for aggregate planning of hiring/layoff
COST INFORMATION
Inventory carrying cost RM3 per unit per month
Average pay rate RM2.70 per hour (RM21.60 per day)
Labor-hours to produce a unit 1.6 hours per unit
Cost of increasing daily production rate (hiring and training) RM30 per worker
Cost of decreasing daily production rate (layoffs) RM70 per worker
Total ending inventory carried to the successive month = 250 units
Workforce required to manufacture 27 units per day = 6 workers
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Table 17: Total expenditure for planning of hiring/layoff
Costs Calculations
Inventory carrying RM750.00 (= 250 units carried x RM3 per unit)
Regular-time labor RM18662.40 (= 6 workers x RM21.60 per day x
144 days)
Other costs (overtime, hiring,
layoffs, subcontracting) RM230.00
Total cost RM19642.40
Subcontracting (Planning 2)
Table 18: Monthly demand, number of production days and demand per day
Month Expected Demand Production Days
Demand Per Day
(computed)
June 480 24 20
July 700 24 30
August 720 24 30
September 800 24 34
October 600 24 25
November 550 24 23
3,850 144
Minimum Requirement = 20 units per day
In house production = 20 X 144 days
= 2880 units
Subcontract units = 3850 2880
= 970 units
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Table 19: Cost information for planning of subcontracting
COST INFORMATION
Average pay rate RM2.70 per hour (RM21.60 per day)
Labor-hours to produce a unit 1.6 hours per unit
Subcontracting cost per unit RM8.00 per unit
Table 20: Total expenditure for planning of subcontracting
Costs Calculations
Regular-time labor RM12441.60 (= 4 workers x RM21.60 per day x
144 days)
Subcontracting cost per unit RM7760 (= RM8.00 per unit x 970 )
Total cost RM20201.60
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Production = Expected demand (Planning 3)
Table 21: Cost information of production that equals to forecast demand
Month
Forecast
(units)
Daily
Prod
Rate
Basic
Production
Cost
(demand x
1.6 hrs/unit
x
RM2.70/hr)
Extra Cost
of
Increasing
Production
(hiring
cost)
Extra Cost
of
Decreasing
Production
(layoff
cost)
Total Cost
(RM)
June 480 20 2073.60 2073.60
July 700 30 3024.00
RM60.00
(=2 x
RM30)
3084.00
August 720 30 3110.40 3110.40
September 800 34 3456.00
RM30.00
(= 1 x
RM30)
3486.00
October 600 25 2592.00
RM140.00
(= 2 x
RM70)
2732.00
November 550 23 2376.00 2376.00
RM16633.00 RM90.00 RM140.00 RM16863.00
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Comparison of three plans
Table 22: Comparison of cost information by three plans
Cost Plan 1 Plan 2 Plan 3
Inventory carrying RM 750 RM 0 RM 0
Regular labor 18662.40 12441.60 1663.00
Overtime labor 0 0 0
Hiring 90 0 90
Layoffs 140 0 140
Subcontracting 0 7760 0
Total cost RM19642.40 RM20201.60 RM16863.00
Plan 1 is to increase the productivity by hiring or layoff number of workers maintaining total
working hours in a month. Plan 2 is subcontracting units that outstand the current production
maintaining the number of current workers in the company and total working hours in a month.
Plan 3 is production that exactly equals to forecast demand. The comparison shows that the plan
3 costs the least while plan 2 costs the highest.
CONCLUSION
In order to overcome first problem that unplanned layout, new layout introduced that utilises total
space available in the company which in return reduces the total distance taken to complete the
cycle of the process. The second problem that is unbalanced cycle is improved by line balancing
and assembly balancing. New workstations are introduced to maintain balanced operational cycles.
Lastly, the production does not meet forecast demand. Hence, three plans were proposed namely
hiring/layoff, subcontracting and production that equals to demand. In sense of total cost, third
plan that is production that equals to demand is chosen since it has the lowest cost needed.
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ACKNOWLEDGEMENT
In the name of Allah, the Most Gracious and the Most Merciful. Alhamdulillah, all praises goes to
Allah for the strengths and His blessing in completing this project. The authors like to thank Sir
Mohamad Zairi Bin Baharom for his continuous guidance and teachings. This project would not
have been this perfect and completed within the time frame given without his proper guidance
throughout the research. Next, thanks to Kedai Keropok Keping Pn Bedah for their cooperation
throughout the project.
REFERENCES
1. Hubpages (2014). What is production planning and control. Retrieved May 10, 2014 from
http://muhammadasifjav.hubpages.com/hub/What-is-Production-Planning-and-Control
2. Wikipedia (2014). Industrial Engineering. Retrieved May 12, 2014, from
http://en.wikipedia.org/wiki/Industrial_engineering
3. Wikipedia (2014). Total Quality Management. Retrieved May 12, 2014, from
http://en.wikipedia.org/wiki/Total_quality_management