MULTIPLE JOB SCHEDULING OF THE NINE NEW PRODUCTS OF KZ STEP 1 MODEL AT THE METAL FABRICATION DIVISION OF ROBERTS
AUTOMOTIVE AND INDUSTRIAL PARTS MANUFACTURING CORPORATION, CABUYAO, LAGUNA
MARK ANTHONY MABILANGAN BALDOZ
A PRACTICUM REPORT 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 2009
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ACCEPTANCE SHEET
The practicum study, attached hereto entitled “MULTIPLE JOB SCHEDULING OF THE NINE NEW PRODUCTS OF KZ STEP 1 MODEL AT THE METAL FABRICATION DIVISION OF ROBERTS AUTOMOTIVE AND INDUSTRIAL PARTS MANUFACTURING CORPORATION, CABUYAO, LAGUNA”, prepared and submitted by MARK ANTHONY MABILANGAN BALDOZ in partial fulfillment of the requirements for the degree of Bachelor of Science in Industrial Engineering is hereby accepted.
__________________________________
ENGR. ROMARK O. CAYUBE Adviser and Chairman, Guidance Committee
______________
Date Signed
_______________________________ _____________________________
ENGR. HAEROLD DEAN Z. LAYAOEN PROF. HERBERT T. MANALIGOD Member, Guidance Committee Member, Guidance Committee
______________ ______________
Date Signed Date Signed
__________________________________
PROF. HERBERT T. MANALIGOD Chairman, Industrial Engineering Department
______________
Date Signed
__________________________________
DR. ARSENIO N. RESURRECCION
Dean, College of Engineering and Agro-Industrial Technology ______________
Date Signed
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EXECUTIVE SUMMARY
Roberts Automotive and Industrial Parts Manufacturing Corporation (AIPMC) is in automotive metal industry that manufactures leafsprings, radiators, mufflers and stamped parts for export, OEM assemblers, and aftermarkets. It is located at Bo.
Diezmo, Canlubang, Laguna.
Roberts AIPMC’s Metal Stamping Division started in 1994 as a producer of major automotive body components for OEM assemblers. Metal Stamping division’s product lines are body parts and interior parts. The OEM Section under the Metal Fabrication Division is in a process-focused facility wherein products are made to order in the production systems. Because of the process-focused layout of machines, scheduling task in different machines and products can become complex.
KZ STEP 1 parts are new developing products of Roberts AIPMC. The penalty cost for not meeting the demand per month of the project will cost a minimum of Php 500,000.00.
Root causes of high cost contribution of raw material per output were identified through direct observation on the company’s processes, interviews with the workers and production officers, and data gathering; these data were summarized using Ishikawa Diagram. CNX analysis was then used to cluster the root causes into Controllable Factors, Noise, and X or experimental factors that need evaluation. Controllable factors that have direct but small effect on the system include lack of training, insufficient and ineffective rules and frequent machine breakdown. Classified under noise include inadequate man power, die setups requiring additional man power, carelessness of the worker, consciousness to productivity in meeting the desired number of output, unwillingness of the company to invest for new machine, other departments using forklifts owned by the company, limited space for WIP during production, many parts using common machine, machine that are old, foreign materials that initiate corrosion, workers not following visual standards and human error. Lastly, experimental factors that need to be considered include establishment of standard time, allocation of machine capacity, scheduling of jobs and minimizing the number of operators.
After analyzing the company’s processes associated to the problem, recommendations have been formulated that can help solve the problem of inability to satisfy demand on time. New workers shall be trained according to standardized specifications and tolerances based on production and customers’ standards. This proposed program will help minimize the production of rejects. The company should have auditing personnel that will supervise the production area to check the whole operation and transporting of materials. The company should also use preventive maintenance program if necessary to minimize cost of maintenance and to avoid production stoppage. Major recommendation is the scheduling of the jobs, and reallocation of manpower and machine. The production should use Earliest Due Date (EDD) rule in manufacturing the products.
For the implementation of the recommendations, the company will incur low cost since penalty cost will be avoided and cycle time of operation will be minimized. The company expected to save a total of Php 6,128,342.29 per year after execution of the suggested improvements.
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TABLE OF CONTENTS
Title Page i
Acceptance Sheet ii
Autobiographical Sketch iii
Acknowledgement iv
Executive Summary vii
Table of Contents viii
List of Figures x
List of Tables xii
List of Appendices xiv
1 INTRODUCTION 1
1.1 General Overview of the Company 2
1.1.1 Company Background 2
1.1.2 Organizational Structure 2
1.1.3 Industry Classification 7
1.1.4 Products Manufactured 7
1.1.5 Material Supplier 9
1.1.6 Customer Served 9
1.2 Background and Significance of the Study 10
1.3 Statement of the Problem 12
1.4 Objectives of the Study 13
1.5 Scope and Limitations 13
1.6 Date and Place of the Study 14
1.7 Roadmap/Milestone 15
2 METHODOLOGY 17
1.8 Procedures 18
1.9 Definition of Terms and Symbols 20
3 SYSTEMS DOCUMENTATION 23
3.1 General Processes of the Company 24
3.2 Subject under Study 30
3.2.3 Details of the Subject 33
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3.2.3 Process Mapping 40
3.2.3 Manpower Complement 70
3.2.3 Machines and Equipment Used 75
4 RESULTS AND DISCUSSIONS 81
4.1 Problem Identification 82
4.2 Analysis 100
4.2.1 Root Causes 100
4.2.3 CNX Analysis 107
4.2.3 Presentation of Alternatives 116
4.3 Cost and Benefit Analysis 134
5 SUMMARY AND CONCLUSION 145
6 RECOMMENDATIONS 148
7 AREAS FOR FURTHER STUDY 151
REFERENCES APPENDICES
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LIST OF FIGURES
Figure Title Page
1-1. Organizational Chart of RAIPMC 5
1-2. The Metal Fabrication Division’s Organizational Chart 6
1-3. Some of the Products Manufactured by RAIMPC 8
1-4. Customers of RAIPMC 10
1-5. Process-focused Layout of Current Metal Fabrication Division 12
1-6. Location Map and Roadmap of Roberts AIPMC 15
1-7. Task Performed During the Conduct of Study 16
3-8. Business Process Chart of the Company 24
3-9. General Process in Metal Fabrication Division 29
3-10. Machine Used in KZ STEP 1 Project 31
3-11. Nine Products of KZ STEP 1 32
3-12. Panel Tail Gate Inner 33
3-13. Rail Assembly Front Roof 34
3-14. Rail Assembly Rear Roof 35
3-15. Bracket Body Mounting No. 1 36
3-16. Bracket Body Mounting No.2 Left Hand (LH) and Bracket Body Mounting
No. 2 Right Hand (RH) 36
3-17. Bracket Assembly Front Eye Left Hand (LH) 37
3-18. Bracket Assembly Front Eye Right Hand (RH) 38
3-19. Reinforced Rear Floor Rear 39
3-20. Process Map of Panel Tail Gate Inner 41
3-21. Flow Process Chart of Panel Tail Gate Inner 43
3-22. Process Map of Rail Assembly Front Roof 44
3-23. Flow Process Chart of Rail Assembly Front Roof 46
3-24. Process Map of Rail Assembly Rear Roof 47
3-25. Flow Process Chart of Rail Assembly Rear Roof 49
3-26. Process Map of Bracket Body Mounting No. 1 50
3-27. Flow Process Chart of Bracket Body Mounting No. 1 52 3-28. Process Map of Bracket Body Mounting No. 2 Left Hand 54 3-29. Flow Process Chart of Bracket Body Mounting No. 2 Left Hand 55
xi 3-30. Map of Bracket Body Mounting No. 2 Right Hand 57 3-31. Flow Process Chart of Bracket Body Mounting No. 2 Right Hand 58 3-32. Process Map of Bracket Assembly Front Eye Left Hand 60 3-33. Flow Process Chart of Bracket Assembly Front Eye Left Hand 62 3-34. Process Map of Bracket Assembly Front Eye Right Hand 64 3-35. Flow Process Chart of Bracket Assembly Front Eye Right Hand 65
3-36. Process Map of Reinforce Rear Floor Rear 67
3-37. Flow Process Chart of Reinforce Rear Floor Rear 69 3-38. Machine Layout of the Metal Fabrication Division 79 4-39. Number of Parts Processed in Specific Machine Type 84 4-40. Frequency of Server/Machine Usage per Product 87
4-41. Promodel Interface of Baseline Model 88
4-42. Gantt Chart of Processing KZ Step 1 Products 90
4-43. Overlapping Process 94
4-44. Breakdown of Operating Cost for the Baseline Model 96 4-45. First Level Causes of the Inability to Satisfy Demand on Time 100
4-46. Cause Factor Attributed to Man 102
4-47. Frequency of Breakdown for 8 Months 103
4-48. Causal Factors Attributed to Machine 104
4-49. Causal Factors Attributed to Method Used 105
4-50. Causal Factors Attributed to Material 107
4-51. Process Flow for Maintenance Program Decision Making 114 4-52 Simulated System Utilization of Alternatives 132
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LIST OF TABLES
Table Title Page
1-1. Top Positions and Their Respective Duties in Roberts AIPMC 3
2-2. Operational Definition of Terms 20
2-3. Definition of Symbols 22
3-4. Machine and Operator Requirements of the Nine New Products of
KZ Step 1 Project 70
3-5. Description of Machines and Equipment for KZ Step 1 Operations 76 3-6. Machine Numbers in Metal Fabrication Division 80
3-7. Machine Codes in Metal Fabrication Division 80
4-8. Machine Usage of the Nine Products Including Their Sub Parts 83 4-9. Frequency of Server/Machine Usage per Product 85 4-10. Facilities Present in the Baseline Model and their Corresponding Rate 89
4-11. Resources Specifications and Usage Rate 89
4-12. Comparison of Manual Computation Processing time with the 94 4-13. Location States Output of the Baseline Model 97 4-14. Resource States Output of the Baseline Model 98
4-15. Labor Cost Incurred by the Baseline Model 99
4-16. Controllable Factors 108
4-17. Current Training Program of Roberts AIPMC 109
4-18. Proposed Training Program 109
4-19. Computation for MTBF 112
4-20. Classification of Schedule for MTBF 113
4-21. Preventive Maintenance Schedule 113
4-22. Experimental Factors 115
4-23. Groupings for the Experimental Factors 115
4-24. Alternatives Derived for the Experimental Factors 116 4-25. Ratio of Range Divided by Average and its Corresponding 117
4-26. Allowance Factors 118
4-27. Processing Time of a Unit per Product Type of KZ-STEP 1 119 4-28. Machines, and Resources used in Alternative B 120 4-29. Measurement of Effectiveness for Different Models in 121
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4-30. Rating for Average Completion Time 122
4-31. Rating for Utilization 123
4-32. Rating for Average Number of Jobs in the System 124
4-33. Rating for Average Job Lateness 125
4-34. Rating for Total Cost 126
4-35. Evaluation of Models for Alternative B 126
4-36. Job Sequence of the Nine Products for Alternative B 127 4-37. Machines, and Resources used in Alternative C 128 4-38. Measurement of Effectiveness for Different Models 128
4-39. Evaluation of Models for Alternative C 129
4-40. Job Sequence of the Nine Products for Alternative C 129 4-41. Machines, and Resources used in Alternative D 130 4-42. Measurement of Effectiveness for Different Models 130
4-43. Evaluation of Models for Alternative D 131
4-44. Job Sequence of the Nine Products for Alternative D 131 4-45. Measurement of Effectiveness for Different Alternatives 132
4-46. Evaluation of Alternatives Presented 133
4-47. Summary of Machines, and Resources used in Alternative C 133
4-48. Breakdown of Material Cost per Product 134
4-49. Demand per Month 135
4-50. Material Cost per Month 136
4-51. Rate of Consumption of Mig wire and Anti rust 137
4-52. Mig Wire Cost per Month 137
4-53. Cost of Antirust per Product Type 138
4-54. Antirust Cost per Month 139
4-55. Labor Cost per Manpower 140
4-56. Labor Cost per Month 141
4-57. Processing Cost Per Machine Type for the Month of May 141
4-58. Machine Processing Cost per Month 142
4-59. Usage Cost per Resource 142
4-60. Resource Usage Cost per Month 143
4-61. Operational Cost Summary and Savings for Alternative C and
Baseline Model 144
6-62. Machines and Manpower Required for the Recommended Solution 150
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LIST OF APPENDICES
Appendix Title
A. Hydraulic Press Machine (Time Study)
B. Spot Welding and Cushion Pin Setup (Time Study) C. Mig Welding (Time Study)
D. Die Setup (Time Study) E. Inspection (Time Study)
F. Pneumatic Press Machine (Time Study) G. Baseline Model
H. Alternative B Scheduling Rule I. Alternative C Scheduling Rule J. Alternative D Scheduling Rule K. Monthly Demand (2008-2009) L. Labor Cost per Month (Alternative C)
M. Machine Usage Cost per Month (Alternative C) N. Resource Usage Cost per Month (Alternative C) O. Labor Cost per Month (Baseline Model)
P. Machine Usage Cost per Month (Baseline Model) Q. Resource Usage Cost per Month (Baseline Model) R. Certification of Practicum Completion
