IMPROVEMENT OF ACTUAL OUTPUT OF PAINTED ADVENTURE SHELLS BY MANPOWER ALLOCATION ANALYSIS AT THE DRY SANDING LINE
OF THE PAINT SHOP DIVISION OF MITSUBISHI MOTORS PHILIPPINES CORPORATION, CAINTA RIZAL
ANGELINE MATIENZO TAPIRE 2005-18212
A PRACTICUM STUDY PRESENTED TO THE FACULTY OF THE DEPARTMENT OF INDUSTRIAL ENGINEERING COLLEGE OF ENGINEERING AND AGRO-
INDUSTRIAL TECHNOLOGY UNIVERSITY OF THE PHILIPPINES LOS BAÑOS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE DEGREE OF
BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING
APRIL 2010
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vi EXECUTIVE SUMMARY
Mitsubishi Motors Philippines Corporation (MMPC) is a manufacturing company that produces, markets, and distributes different types of automotive vehicles in the Philippines. Its mother company is the Mitsubishi Motors Corporation (MMC) which is located in Japan. MMPC offers multiple products, because of that they produce vehicles on a schedule basis. On the regular schedule which is the production of 30 Adventure shells and 10 L300 Cab shells, there were high workers’ idle times. Thus MMPC and MMC decided to devise a long-term solution which is the production of a new product, NP. However, with the introduction of NP, the new concern now of the company is whether the Paint Shop Division has enough capacity to cater both the demand of its existing and new products.
Through historical data, observation, and analysis of the Paint Shop’s processes, it was found out that its two lines, Dry Sanding and Wet Sanding Lines, were not able to cater to the production of the new product of the company because they have planned for an output lower than 40 units. But since Wet Sanding Line is to be removed from the Paint Shop’s process, only the Dry Sanding Line was left to as the bottleneck of the Paint Shop Division.
A thorough investigation and analysis was conducted in the Dry Sanding Line.
Using a simulation model and time study method, it was found out that among the four workstations in the Dry Sanding Line, only the Body Dry Sanding station was not able to meet the target demand output of 40 Adventure shells. Thus, the ultimate goal of the study is to increase the actual output of the Body Dry Sanding station.
Using the Streamline Diagnosis the root causes of having low actual output of the Body Dry Sanding station were the lack of supervision, lack of sandpaper, manual work, insufficient production time, and insufficient manpower. These root causes were further categorized using the CNX Analysis. Lack of supervision and lack of sandpaper were categorized as controllable causes, whereas manual work was considered as noise.
vii Only insufficient production time and insufficient manpower were categorized as experimental root causes. In addressing these experimental causes, alternatives were generated. To do this, current manpower allocation of the Dry Sanding Line was analyzed. Only the Body Dry Sanding station has insufficient number of workers. Thus, different alternatives were generated: hiring one fulltime worker, hiring one contractual worker, conducting overtime shift and keeping the current system. The first two alternatives mentioned could address the insufficient manpower. On the other hand, overtime shift could address the insufficient production time. With these four alternatives, factor rating method was used. The criteria: effectiveness, cycle time costs, feasibility and ease of implementation became the basis to evaluating the different alternatives.
Hiring one fulltime worker to be assigned in the Body Dry Sanding station gained the highest total weighted score percentage of 97 percent. This means that hiring one fulltime worker will give the company the greatest advantage in comparison with the advantages of the other three alternatives. Following this and other recommendations suggested for the controllable factors, the Body Dry Sanding station would be able to meet the target demand of 40 Adventure shells per production day. Consequently, the entire Dry Sanding Line and therefore the entire Paint Shop Division would be able meet production of existing and new products.
viii TABLE OF CONTENTS
TITLE PAGE
TITLE PAGE i
ACCEPTANCE SHEET ii
BIOGRAPHICAL SKETCH iii
ACKNOWLEDGEMENT iv
EXECUTIVE SUMMARY vi
TABLE OF CONTENTS viii
LIST OF TABLES x
LIST OF FIGURES xi
LIST OF APPENDICES xiii
1. INTRODUCTION 1
1.1. Overview of the Company 2 1.2. Background of the Study 7
1.3. Statement of the Problem 15
1.4. Objectives of the Study 15 1.5. Scope and Limitation 16 1.6. Date and Place of the Study 17
1.7. Roadmap/Milestone 18
2. METHODOLOGY 19
2.1. Procedure 20
2.2. Definition of Terms 21
2.3 Symbols 22
3. SYSTEMS DOCUMENTATION 23
3.1. General Process 24
3.2. Specific Area Under Study 26
4. RESULTS AND DISCUSSION 38
4.1. Problem Identification 39
4.2. Problem Verification 40
4.3. Root Cause Analysis 45
4.4. Generation of Alternatives 49
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4.5. Evaluation of Alternatives 58
5. SUMMARY AND CONCLUSION 71
6. RECOMMENDATION 74
7. AREAS FOR FURTHER STUDY 77
REFERENCES xii
x LIST OF TABLES
TABLE NO. TITLE PAGE
1-1 Current production schedule in Paint Shop Division 8
1-2 New production schedule of Paint Shop Division 12
1-3 Demand of painted Adventure and L300 shells per production day 13
2-1 Terms used in the Study 21
2-2 Definition of Symbols 22
3-1 Physical characteristics of an Adventure shell 27
3-2 Summary of the Six Lines in Paint Shop Division 30
4-1 Ratio of Range to Average and the Corresponding Number of
Samples for Simulation 41
4-2 Required Numbers of Samples per Workstation 41
4-3 Ratio of range to average and the corresponding number of samples
for the determination of the manpower requirement 51 4-4 List of Allowances Used in Dry Sanding Line Operations 52 4-5 Computed Standard Time of the Operations in the four Workstations
of the Dry Sanding Line 53
4-6 Determination of the Required Number of Workers 53
4-7 Required Number of workers in the second alternative 55 4-8 Available production time when overtime shift is conducted 57 4-9 List of alternatives that could meet the goal of increasing daily output
of painted Adventure shells in the Body Dry Sanding station 58
4-10 Different weights given for each criterion 58
4-11 Range and the corresponding score in rating the effectiveness of the
alternatives 59
4-12 Scores given for the effectiveness of the different alternatives 59 4-13 Range and the corresponding score for measuring cycle time 60 4-14 Scores given for the different alternatives under the criterion cycle
time 60
4-15 Estimated Cost of Implementation for Year 1 61
4-16 Total Costs of Each Alternative for Year 1 64
4-17 Range and the score for rating the costs of the alternatives 65 4-18 Scores given for the costs of the different alternatives 65 4-19 Scores Given for the Feasibility for Each Alternative 66 4-20 Range and the corresponding score of the easiness of implementation 66 4-21 Scores given for the easiness of implementing the different
alternatives 67
4-22 Results of the Factor Rating Method for the different alternatives 68
xi LIST OF FIGURES
FIGURE NO. TITLE PAGE
1-1 Different Products Offered By MMPC 2
1-2 Different Production and Development and Design bases of MMC 3
1-3 Company Logo of Mitsubishi Motors 4
1-4 Vehicles Being Manufactured By MMPC 4
1-5 Additional Vehicles Marketed By MMPC 5
1-6 Organizational Chart of the Entire MMPC 6
1-7 Workers’ Percent Idleness During Regular Schedule of the Paint Shop
Division 9
1-8 Numbers of Units Sold per Product from 2000-2002 11
1-9 Design, Effective and Actual Capacities of the Paint Shop Division in
Producing Adventure shells 11
1-10 Anticipated Actual Output of the Paint Shop Lines 14
1-11 Mitsubishi Motors Philippines Corporation’s Manufacturing Plant in
Cainta, Rizal 17
1-12 Gantt Chart of Activities of the Study 18
3-1 Three Main Shop Divisions of MMPC 24
3-2 Figure 3.2 Some tests undergone by the Mitsubishi vehicles: 25
3-3 Lay-out of the Paint Shop Division 27
3-4 Example of Adventure shell being formed. 28
3-5 Parts of an Adventure shell 29
3-6 Flow Process Chart of the Metal Repair station 31
3-7 Flow Process Chart of the Roof Dry Sanding station 32
3-8 Flow Process Chart of the Front Rear Body Dry Sanding 33
3-9 Flow process chart of the Rear Body Dry Sanding 34
3-10 Flow Process chart of ISQC 35
3-11 Current Manpower Allocation of the Dry Sanding Line 35
3-12 Orbital Dry Sanding Power Tool 36
3-13 Sandpaper Used in the Dry Sanding Line 37
4-1 Anticipated Actual Output of the Paint Shop Lines 39
4-2 Schematic Diagram of the Dry Sanding Line 42
4-3 Dry Sanding Line modeled using ProModel 7.0 42
4-4 Percent Utilization of the Four Dry Sanding stations Generated by
ProModel 7.0. 43
4-5 Percent Blocked of the four Dry Sanding stations 44
4-6 Streamline Diagnostic Chart of Having Low Actual Output in the Body
Dry Sanding Station 46
4-7 Simple Illustration of the Body Dry Sanding Station 48
4-8 Current Manpower Allocation of the Dry Sanding Line 50
xii LIST OF APPENDICES
APPENDIX TITLE PAGE
A Computation of Percent Idle of Workers in Paint Shop Lines and the
Opportunity Loss during the regular Schedule xvi
B Number of Adventure Units Sold from 2000-2002 xvii
C Operating constraints and Effective Production Times (expressed in
terms of production time) per Paint Shop Line xviii
D Design, Effective and Actual Output of Adventure shells of the Paint
Shop Lines during the initial solution xix
E Actual Output of Adventure shells during the initial solution xx F Computation of Efficiency of the Paint Shop Lines During the initial
Solution xxi
G Computation of Anticipated Actual Output of Paint Shop Lines once
the new product, NP is introduced xxii
H Raw Samples of Cycle Time for the Different Workstation of the Dry
Sanding Line to be used in Simulation Model xxvii
I-1 Raw Data for Metal Repair xxviii
I-2 Raw Data for Roof Dry Sanding xxviii
I-3 Raw Data for Body Dry Sanding xxix
I-4 Raw Data for ISQC xxxi
J-1 Standard time for Metal Repair xxxii
J-2 Standard time for Roof Dry Sanding xxxii
J-3 Standard time for Body Dry Sanding xxxiii
J-4 Standard time for ISQC xxxiv
K Performance Ratings of the Workers in the four workstations of the
Dry Sanding Line xxxv
L Westinghouse Rating System used in the determination of Standard
Time (Niebel, 2003) xxxvi
M Computation of the Anticipated Actual Output of the Body Dry
Sanding Station using the four alternatives and the Opportunity Loss xxxvii
N Certificate of Completion xxxiii
