IMPROVING PRODUCTIVITY USING OEE APPROACH BY APPLYING SMED & 5S METHODOLOGY
By
Calvin Fitra Anggara 1-1607-023
BACHELOR’S DEGREE in
INDUSTRIAL ENGINEERING
ENGINEERING & INFORMATION TECHNOLOGY
SWISS GERMAN UNIVERSITY The Prominence Tower
Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia
July 2020
Revision after the Thesis Defense on 7th July 2020
Calvin Fitra Anggara STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Calvin Fitra Anggara
_____________________________________________
Student Date
Approved by:
Ir. Triarti Saraswati M.Eng
_____________________________________________
Thesis Advisor Date
Dr. Eng. Aditya Tirta Pratama S.Si., M.T.
_____________________________________________
Thesis Co-Advisor Date
Dr. Maulahikmah Galinium S.Kom., M.Sc.
_____________________________________________
Dean of Faculty of Engineering & IT Date
Calvin Fitra Anggara ABSTRACT
I IMPROVING PRODUCTIVITY USING OEE APPROACH BY APPLYING SMED & 5S METHODOLOGY
By
Calvin Fitra Anggara
Ir. Triarti Saraswati, M.Eng, Advisor
Dr. Eng. Aditya Tirta Pratama, S.Si., M.T., Co-Advisor SWISS GERMAN UNIVERSITY
Injection molding is a plastic-forming process commonly used in a toy manufacturing industry. PT XYZ is an American world-class toy manufacturer. They find difficulties to fulfill the demand daily, so they handed their production to a subcontractor, PT VWX. However, the less effective and efficient PT VWX production line has caused the loss in the material and time of PT XYZ. This research aims to increase the productivity of PT VWX that will be measured by Overall Equipment Effectiveness (OEE). In order to increase the productivity of PT VWX, the OEE of the current condition needs to be measured initially, then the root cause of the problem needs to be identified, and lastly, the action plans need to be generated in order to solve the problem. Six Sigma is one of many methods to improve the business process. In this research, DMAIC will be applied as the methodology to improve the business process. In addition, the appliance of the Single-Minute Exchange of Dies method is used to analyze and improve the changeover in the production line, and through the implementation of 5S in the work area and raw material warehouse that will improve the quality of the goods produced. Consequently, the OEE of the injection molding process of PT VWX was increased from 48.9% to 73.1%.
Keywords: Injection Molding, Overall Equipment Effectiveness, DMAIC, SMED, 5S
Calvin Fitra Anggara
© Copyright 2020 by Calvin Fitra Anggara
All rights reserved
Calvin Fitra Anggara DEDICATION
I dedicate this work To my beloved country Indonesia
To PT. Mattel Indonesia To PT. Printec Perkasa
To my lecturers
And to further generation of Swiss German University Students
Calvin Fitra Anggara ACKNOWLEDGEMENTS
I would like to thank the God Almighty Allah SWT. for the health and blessings that always given to me during my studies and completion of this thesis.
Special thanks to my mother, my father and my brother for always giving all the supports and the best wishes.
I also owe the biggest gratitude to Ir. Triarti Saraswati, M.Eng, and Dr. Eng. Aditya T.
Pratama, M.T. as advisor and co-advisor who always support me through my ups and downs while doing my research.
I also would like to thank PT VWX and PT XYZ who have been allowing me to conduct my thesis research in the production plant. Special thanks also to Mr. Kemal Hadid S.T., B.Eng who always guide me and give me a lot of lessons while I was conducting the research.
Last but not least, big thanks to my Uni Friends who always with me for 4 years through my ups and downs
Calvin Fitra Anggara TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 7
LIST OF FIGURES ... 10
LIST OF TABLES ... 12
LIST OF EQUATIONS ... 14
CHAPTER 1 – INTRODUCTION ... 15
1.1 Background ... 15
1.2 Research Problem ... 16
1.3 Objectives... 16
1.4 Significance of Study ... 16
1.5 Scope and Limitations ... 16
1.6 Thesis Structure... 17
1.7 Thesis Timeline ... 17
CHAPTER 2 - LITERATURE REVIEW ... 19
2.1 Productivity ... 19
2.2 Injection Molding ... 19
2.3 Lean Manufacturing ... 20
2.3.1 Seven Wastes of Lean ... 20
2.4 Single-Minutes Exchange of Die (SMED) ... 21
2.5 Five S ... 23
2.6 Brown Paper Critique... 24
Calvin Fitra Anggara
2.7.1. Six Big Losses ... 26
CHAPTER 3 – RESEARCH METHODS ... 27
3.1 Introduction ... 27
3.2 Problem Identification... 31
3.3 Literature Review ... 31
3.4 Research Design ... 31
3.5 Data Collection ... 31
3.6 Data Processing ... 32
3.7 Analyze Availability Loss, Performance Loss and Quality Loss in the Production Line ... 33
3.8 Root Cause Analysis ... 34
3.9 Propose Improvement ... 34
3.10 Create SOP ... 34
3.11 Develop Monitoring & Controlling Program... 35
CHAPTER 4 – RESULT & DISCUSSION ... 36
4.1 Company Profile ... 36
4.2 Process Flow ... 37
4.3 Problem Identification... 39
4.4 Brown Paper Critique... 39
4.5 OEE Measurement ... 40
4.5.1 Availability Calculation ... 41
4.5.2 Performance Rate Calculation ... 42
4.5.3 Quality Ratio Calculation... 43
4.5.4 Overall Equipment Effectiveness Calculation ... 44
4.6 Root Cause analysis ... 45
4.6.1 Availability Analysis... 45
4.6.2 Performance Rate Analysis ... 47
4.6.3 Quality Rate Analysis ... 49
4.7 OEE Analysis ... 53
Calvin Fitra Anggara 4.7.1 Increasing Availability using Single Minute Exchange of Dies Method
54
4.7.2 Improving Quality rate by using 5 S Analysis ... 67
4.8 Proposed Improvement ... 74
4.8.1 Changeover Improvement ... 74
4.8.2 Quality Improvement ... 80
4.9 Simulation ... 85
4.7.1 Previous Condition ... 85
4.7.2 Condition After the Improvements Are Implemented ... 86
4.10 OEE Measurement After Improvement ... 87
4.11 Control ... 87
CHAPTER 5 – CONCLUSIONS AND RECCOMENDATIONS ... 91
5.1 Conclusions ... 91
5.2 Recommendation ... 92
5.3 Further Study... 93
APPENDIX A – TIME STUDY ... 94
APPENDIX B – CHANGOVER TIME STUDY ... 95
APPENDIX C – BROWN PAPER CRITIQUE RESULT ... 98
APPENDIX D – MATERIAL REQUIREMENTS CALCULATION SOP ... 101
APPENDIX E – PRODUCTION SAMPLE WAREHOUSE SOP ... 103
APPENDIX F – PRODUCTION SAMPLE LOAN FORM ... 105
APPENDIX G – MACHINE CLEANING AGENT USAGE PROCEDURE ... 106
APPENDIX H – CLEANING CHECKLIST... 107
GLOSSARY... 108
REFERENCES... 109
CURRICULUM VITAE ... 111
Calvin Fitra Anggara Page
Figure 2. 1 Stages of the SMED Implementation ... 22
Figure 2. 2 Five S Cycle... 23
Figure 2. 3 Brown Paper Critique ... 24
Figure 2. 4 OEE Components ... 25
Figure 3. 1 Research Methodology ………. 30 Figure 3. 2 Fishbone Diagram ………. 34 Figure 4. 1 Injection Molding Process Flow ……… 37 Figure 4. 2 Brown Paper Critique Result ... 40
Figure 4. 3 Downtime Data ... 45
Figure 4. 4 Ishikawa Diagram for Availability ... 46
Figure 4. 5 Ishikawa Diagram of Speed Reduction in Production... 48
Figure 4. 6 Ishikawa Diagram of Wrong Color & Blackspot ... 51
Figure 4. 7 SMED Form Legend ... 55
Figure 4. 8 Unwanted Items in the Raw Material Warehouse ... 68
Figure 4. 9 Raw material storage ... 68
Figure 4. 10 Unused Tools ... 71
Figure 4. 11 Finished goods placement ... 71
Figure 4. 12 Dust on the machine ... 72
Figure 4. 13 Dust inside the hopper ... 72
Figure 4. 14 Material dispersed on the machine ... 72
Figure 4. 15 Flow chart of lending a production sample ... 76
Figure 4. 16 Material Requirements Calculation Method Flow Chart ... 79
Figure 4. 17 Sort Activity Plan ... 81
Figure 4. 18 Set-in-Order Activity Plan ... 82
Figure 4. 19 Shine Activity Plan ... 82
Figure 4. 23 Set-In-Order Standardize Plan ... 84
Calvin Fitra Anggara Figure 4. 24 Available time in the previous condition of production ... 85
Figure 4. 25 Available time in the production after improvements are implemented . 86
Calvin Fitra Anggara Page
Table 1. 1 Thesis Timeline ... 18
Table 2. 1 Six Big Losses ……… 26 Table 4. 1 Changeover Data ………. 45 Table 4. 2 Questionnaire Results ... 47
Table 4. 3 Defect Data ... 49
Table 4. 4 List of Probable Cause ... 50
Table 4. 5 Validation of Problems ... 52
Table 4. 6 Five-Whys Analysis ... 53
Table 4. 7 Determine the External Activities and Internal Activities ... 54
Table 4. 8 Separate Internal Activities and External Activities ... 56
Table 4. 9 Convert Internal Activities into External Activities ... 57
Table 4. 10 Changeover duration after the internal activities converted into external activities ... 59
Table 4. 11Availability change after internal activities are converted into external activities ... 60
Table 4. 12 OEE change after internal activities are converted into external activities ... 60
Table 4. 13 Streamline and reduce Internal Activities ... 61
Table 4. 14 Changeover duration after internal activities are improved ... 62
Table 4. 15 Change of Availability after internal activities are improved ... 62
Table 4. 16 Change of OEE after internal activities are improved ... 63
Table 4. 17 Streamline and Reduce External Activities ... 64
Table 4. 18 Changeover duration after external activities are improved ... 65
Table 4. 19 Changeover Process With 2 Workers ... 66
Table 4. 20 Comparision of Changeover Process Based on No. of Workers ... 67
Table 4. 21 Change of Quality after 5S is implemented ... 70
Table 4. 22 Change of OEE after 5S is implemented ... 70
Table 4. 23 Quality Change after new machine cleaning method is implemented ... 73
Calvin Fitra Anggara
Table 4. 24 Quality Change after new machine cleaning method is implemented ... 73
Table 4. 25 Red Tag Strategy... 83
Table 4. 26 Total production parts in previous condition ... 85
Table 4. 27 Total production parts after improvement ... 86
Table 4. 28 Sustainability Program ... 88
Table 4. 29 Daily OEE Spreadsheet... 89
Table 4. 30 Five S Audit Form ... 90
Table 5. 1 Result of SMED Method ……… 91 Table 5. 2 Summary of OEE improvements ... 92
Calvin Fitra Anggara LIST OF EQUATIONS
Page
Equation 3. 1 Availability Calculation ... 32
Equation 3. 2 Performance Rate Calculation ... 33
Equation 3. 3 Quality Rate Calculation ... 33
Equation 3. 4 OEE Calculation ... 33
Equation 4. 1 Material Requirements Calculation ………. 77
