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LINE EFFICIENCY IMPROVEMENT OF THE CLUTCH GEAR LINE THROUGH REDUCTION OF REWORKING DELAYS AT ASIAN TRANSMISSION

CORPORATION CARMELRAY INDUSTRIAL PARK, CANLUBANG LAGUNA

JOHN CARLO ENRIQUEZ MIRANDA 2005 – 45247

A PRACTICUM REPORT PRESENTED TO THE FACULTY OF THE DEPARTMENT OF INDUSTRIAL ENGINEERING COLLEGE OF ENGINEERING AND AGRO-

INDUSTRIAL TECHNOLOGY UNIVERSITY OF THE PHILIPPINES AT LOS BAÑOS IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE DEGREE OF

BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING

APRIL 2010

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The practicum study, attached hereto THE CLUTCH GEAR LINE

ASIAN TRANSMISSION C CANLUBANG LAGUNA

partial fulfillment of the requirements for the degree of Bachelor Engineering is hereby accepted.

ENGR. MIKEL ANGELO B. YAP Member, Guidance Committee

___________ ___________

Date Signed

____________________________________

Chairman, I

____________________________________

ACCEPTANCE SHEET

The practicum study, attached hereto entitled “LINE EFFICIENCY IMPR

THE CLUTCH GEAR LINE THROUGH REDUCTION OF REWORKING DELAYS AT ASIAN TRANSMISSION CORPORATION CARMELRAY INDUSTRIAL PARK,

NLUBANG LAGUNA”, prepared and submitted by JOHN CARLO E. MIRANDA e requirements for the degree of Bachelor of S

Engineering is hereby accepted.

ENGR. DIANA MARIE R. DE SILVA Adviser and chairman, Guidance Committee

___________

Date Signed

ENGR. MIKEL ANGELO B. YAP ENGR. ROMARK O. CAYUBE Member, Guidance Committee Member, Guidance Committee

___________ ___________

Date Signed

____________________________________

DR. AURELIO DELOS A. REYES JR.

Chairman, Industrial Engineering Department _____________

Date Signed

____________________________________

DR. ARSENIO N. RESURRECCION

LINE EFFICIENCY IMPROVEMENT OF REWORKING DELAYS AT INDUSTRIAL PARK, JOHN CARLO E. MIRANDA in of Science in Industrial

Adviser and chairman, Guidance Committee

ENGR. ROMARK O. CAYUBE Member, Guidance Committee

___________ ___________

Date Signed

____________________________________

Department

____________________________________

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EXECUTIVE SUMMARY

Asian Transmission Corporation (ATC) is a joint venture of Mitsubishi Motors and Sojitz Corporation. The company is located at Carmelray Industrial Park at Canlubang, Calamba City, Laguna. ATC serves as Mitsubishi’s main provider of transmission and engine assemblies of Mitsubishi vehicles.

ATC has been concerned with maximizing the utility of its resources. Line efficiency is the company’s measure of performance, targeted at 70%. This is to accommodate occurrence of machine troubles which is regarded inevitable by the management due to the nature of the business. Data obtained revealed that this standard is seldom met by the production lines. The usual efficiencies of the lines average at 55 – 65%. Among the lines that cannot comply with the standard is the Clutch Gear Line which averages at 63%. The line fabricates clutch gears which later serve as sub-assembly component to be used by other lines. Aside from not meeting the efficiency requirement, the line also incurred the most negative cumulative variance in meeting the demand for the past five months.

The contributing factors for the line’s low efficiency are delays due to machine troubles and reworking. Since machine troubles are given allowances by the company, delays due to reworking are further examined. It has been discovered that the concern is caused by incompliance to change cutter schedule, flaw in the layout of the line and the processing with reworking cannot comply with the standards. The procedures in the line were simulated using Promodel 7.5 to verify the line’s capability in meeting the efficiency requirement. The model was also used to generate alternatives that will address the factors defined.

The adherence to change cutter schedule is viewed as a controllable factor in the study and if implemented, the company will realize a potential profit of PhP 909 792.00.

Evaluation of the alternatives formulated to address the experimental factors recommends removing the unnecessary distance in the layout and implementing operator reassignment. The alternative will result in a potential profit of PhP 3 162 790.80 in and increasing the line’s efficiency by 25.03%, enabling the line to meet the efficiency requirement.

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TABLE OF CONTENTS

TITLE PAGE

TITLE PAGE i

ACCEPTANCE SHEET ii

ABOUT THE AUTHOR iii

ACKNOWLEDGEMENTS iv

EXECUTIVE SUMMARY v

TABLE OF CONTENTS vi

LIST OF FIGURES viii

LIST OF TABLES x

LIST OF APPENDICES xi

1.0 INTRODUCTION 1

1.1 General Overview of the Company 2

1.2 Background and Significance of the Study 11

1.3 Statement of the Problem 14

1.4 Objectives of the Study 15

1.5 Scope and Limitations of the Study 15

1.6 Date and Place of the Study 15

2.0 METHODOLOGY 17

2.1 PROCEDURE 18

2.2 DEFINITION OF TERMS 19

3.0 SYSTEMS DOCUMENTATION 22

3.1 ISO procedure of the Machining Department 23

3.2 Description of Layout and Facility 35

3.3 The Clutch Gear (CL-G) Line 37

3.4 ATC’s Measure of Performance - Efficiency 44

4.0 RESULTS AND DISCUSSION 47

4.1 Problem Identification 48

4.2 Problem Analysis 51

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4.5 Generation of Alternatives 70

4.6 Evaluation of Alternatives 79

5.0 RECOMMENDATIONS 85

6.0 SUMMARY AND CONCLUSIONS 87

REFERENCES xii

APPENDICES xiv

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LIST OF FIGURES

FIGURE NO. TITLE PAGE

1-1 Company Logo 2

1-2 ATC's Organizational Chart (Area of designation highlighted) 4

1-3 ATC Site Map 5

1-4 ATC Dream Plant Layout 7

1-5 Transmission Assembly for various Mitsubishi Models L300 (top) and

Adventure (bottom) 8

1-6 Engine Assembly for various Mitsubishi Models, L200(top),

Pajero(bottom) 9

1-7 Component Gears manufactured at ATC 9

1-8 Component Gears manufactured at ATC (continued) 10 1-9 Machining 1 Monthly Line Efficiencies for the Previous Six Months

(November 2008 – April 2009) 12

1-10 Gantt chart for schedule of project activities 16

3-1 Flowchart of Rough Forms Withdrawal 24

3-2 Flowchart of Machining of Transmission Parts 25

3-3 Flowchart of In-Process Inspection 28

3-4 Flowchart of Control of Non-Conforming Parts (Machining Area) 33

3-5 Lighting and Ventilation of the RM2 Section 36

3-6 Machining Process Flow Chart for Part No. MD703792, MD703791,

MD734017 and MD727262 37

3-7 Blanking Process 38

3-8 Gear Shaping Process 38

3-9 Chamfering Process 39

3-10 Layout of the Clutch Gear Line (Distance Stressed) 40

3-11 Machine Assignment 43

4-1 Burrs on work piece (encircled) 52

4-2 Pie Chart for the Causes of Delays 54

4-3 Streamline Diagnostics Diagram for Reworking 56

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4-7 Building Processing in the model 63

4-8 Building Path Networks in the model 64

4-9 Building Interfaces in the model 64

4-10 Building arrivals in the model 65

4-11 Modifying the Network Paths 73

4-12 Building Blanking 1 with Two Locations 74

4-13 Operator Reassignment 76

4-14 Operator 1 Machine Reassignment (Promodel) 77

4-15 Operator 2 Machine Reassignment (Promodel) 77

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LIST OF TABLES

TABLE NO. TITLE PAGE

1-1 Market Destination of ATC's products 11

1-2 Demand vs. Actual Production of Lines for December 08 – April 09 14

2-1 Abbreviations used 19

2-2 Terms used 20

2-3 Symbols used 21

3-1 Machines in the Clutch Gear Line 40

3-2 Operating procedure for Clutch Gear (OTG) for Blanking 1 41 3-3 Set-up Procedure for Clutch Gear (OTG) for Blanking 1 42 3-4 Tool Change procedure Clutch Gear (OTG) for Blanking 1 42 4-1 Clutch Gear Line Efficiency for the month of February 2009 48 4-2 Clutch Gear Line Efficiency for the month of March 2009 49 4-3 Clutch Gear Line Efficiency for the month of April 2009 50 4-4 Loss hours for six months (December 2008 - May 2009) 53

4-5 Rework Units 55

4-6 Change Cutter 56

4-7 Machining Times of the Clutch Gear Line 59

4-8 Resulting Statistics from Promodel 66

4-9 Resulting Statistics from Promodel with rework 67

4-10 Deburring related data 69

4-11 Change Cutter Improvement 71

4-12 Promodel Statistics for Alternative 1 74

4-13 Promodel Statistics for Alternative 2 78

4-14 Evaluation of Alternatives 84

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LIST OF APPENDICES

APPENDIX TITLE PAGE

A Front Drive Transmission Assembly xv

B Rear Drive Transmission Assembly xvi

C Demand vs. Actual Output xvii

D Tool Change Procedure Turning 1 xviii

E Tool Change Procedure Turning 2 xix

F Tool Change Procedure Gear Shaping xx

G Tool Change Procedure Chamfering xxi

H Set-up Procedure Turning 1 xxii

I Set-up Procedure Turning 2 xxiii

J Set-up Procedure Gear Shaping xxiv

K Set-up Procedure Chamfering xxv

L Operating Procedure Turning 1 xxvi

M Operating Procedure Turning 2 xxvii

N Operating Procedure Gear Shaping xxviii

O Operating Procedure Chamfering xxix

P Certification from the Company xxx

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