PRODUCTIVITY IMPROVEMENT BY SCRAP AND DELAY REDUCTION OF GREENSHEET MANUFACTURING AT THE WET END DEPARTMENT OF
JAMES HARDIE PHILIPPINES, INC., CABUYAO LAGUNA
REGIS EDILJOSEPH JAVIER ABASOLO
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 2008
ACCEPTANCE SHEET
The practicum study, attached hereto entitled “PRODUCTIVITY IMPROVEMENT BY SCRAP AND DELAY REDUCTION OF GREENSHEET MANUFACTURING AT THE WET END DEPARTMENT OF JAMES HARDIE PHILIPPINES, INC. CABUYAO, LAGUNA” prepared and submitted by REGIS EDILJOSEPH JAVIER ABASOLO in partial fulfillment of the requirements for the degree of Bachelor of Science in Industrial Engineering is hereby accepted.
______________________________
ENGR. MARC IMMANUEL G. ISIP Adviser and Chairman, Guidance Committee
_____________
Date Signed
_____________________________ _____________________________
ENGR. HAEROLD DEAN Z. LAYAOEN ENGR ARVIN JOSEPH M. ELAURIA 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
EXECUTIVE SUMMARY
James Hardie Philippines, Inc. is located at Brgy. San Isidro, Cabuyao, Laguna. It is a strategic branch of the James Hardie Industries NV, a major manufacturer of fiber cement boards.
For the fiscal year of 2008, the annual productivity was only 80.2%. The target set by the organization was 95%. The annual unrecoverable loss due to the gap between the target and the actual amounted to Php121,502,257.68. The two factors that affected productivity were scrapping and delays. The loss due to scrap amounted to Php92,142,271.50 while the loss due to delays amounted to Php29,359,986.18. To address this problem, this study was made to improve the productivity of the organization through the reduction of scrap and delays.
Interviews were made and historical data were reviewed. It was found out that 76% of the gap was attributable to scrap while 24% was attributable to delay. Using Pareto charts, it was found out that the major cause of delays were dimensional adjustment, jam ups, changeover, washdown, peel off, flushing, dimensional check, maintenance, and the absence of prepared mix to process. The leading causes of scrap was thickness, lumps, size roll peel offs, delaminations, and dimensions. Cause and Effect Diagrams were used to identify the potential root causes. The root causes were classified as either controllable, experimental, or noise. Cause and Effect Matrices were used to rank the root causes according to priority.
From the identified root causes, a set of recommendations were made. These recommendations were training and certification program for operators scheduling of activities, the use of logsheets for documenting activities, implementation of disciplinary actions, optimal batch sizing, and the use of settings guides in workstations.
The initial cost of all the recommendations will amount to Php3,020.00. The total saving will amount to Php2,862,038.92. The annual delay rate will be reduced from 23.22% to 17.47% while the annual scrap rate will be reduced from 7.35% to 6.20%.
Hence, the annual productivity will increase from 80.2% to 87.29%.
TABLE OF CONTENTS
Page
Title Page i
Acceptance Sheet ii
Biographical Sketch iii
Acknowledgement iv
Executive Summary viii
Table of Contents x
List of Figures xii
List of Tables xiv
List of Appendices xvi
1.0 INTRODUCTION 1
1.1 GENERAL OVERVIEW OF JAMES HARDIE INDUSTRIES NV 2
1.2 BACKGROUND AND SIGNIFICANCE OF THE STUDY 8
1.3 STATEMENT OF THE PROBLEM 11
1.4 OBJECTIVES OF THE STUDY 12
1.5 SCOPE AND LIMITATION 12
1.6 DATE AND PLACE OF THE STUDY 12
1.7 MILESTONES 13
2.0 METHODOLOGY 14
2.1 OPERATIONAL DEFINITION OF TERMS 15
2.2 DEFINITION OF SYMBOLS USED 16
2.3 PROCEDURE 17
3.0 SYSTEMS DOCUMENTATION 18
3.1 GENERAL PRODUCTION PROCESS OF THE COMPANY 19
3.2 AREAS UNDER STUDY 22
4.0 RESULTS AND DISCUSSION 36
4.1 PROBLEM IDENTIFICATION 37
4.2 ANALYSIS 43
5.0 SUMMARY AND CONCLUSION 77
6.0 RECOMMENDATIONS 79
REFERENCES xvii
APPENDICES xix
LIST OF FIGURES
FIGURE NO. TITLE PAGE
1-1 James Hardie Global Manufacturing Operations 3 1-2 Organizational Chart of James Hardie Philippines, Inc. 4 1-3 Organizational Chart of Plant Operations Department 6
1-4 Product Families and Description 7
1-5 MAD Trend for FY ’08 9
1-6 Scrap Rate Trend for FY ’08 10
1-7 Delay Trend for FY ’08 11
1-8 Location Map of James Hardie Philippines, Inc. 13
1-9 Gantt Chart of Activities Performed 13
3-10 Cross Functional Flow Chart of the General Manufacturing
Process of JHPI 21
3-11 Cross Functional Diagram of the Pulp Plant 22
3-12 Pulp Processing Plant 23
3-13 Cross Functional Diagram of the Silica Plant 24
3-14 Schematic Diagram of the Sheet Machine 25
3-15 Feed Agitator 26
3-16 Roller Screens 27
3-17 Close-up of the Roller Screens 27
3-18 Feed Sump 28
3-19 Sieve 29
3-20 Felt 30
3-21 Sideview of the Size Roll 31
3-22 Water Jet Cutters 32
3-23 Sheets Undergoing Pre-curing 33
3-24 Sheets being loaded into the Autoclave 34
4-25 Pie Chart of Losses 39
4-26 Pareto Chart of Delays 40
4-27 Pareto Chart of Unproductive Activities 41
4-28 Pareto Chart of Scrap 42
4-29 Cause and Effect Diagram of Low MAD 44
4-30 Causes Under Man 45
4-31 Causes Under Machine 50
4-32 Causes Under Methods 53
4-33 Causes Under Methods 56
4-34 Recommended Logsheet for Washdown and Hosing 61
4-35 Front Side of Proposed Settings Guide 63
4-36 Back Side of Proposed Settings Guide 64
4-36 Dimension Settings Guide 65
LIST OF TABLES
TABLE NO. TITLE PAGE
4-1 Monthly Performance of JHPI FY ’08 37
4-2 Delay Performance of JHPI 38
4-3 Monthly Scrap Performance of JHPI FY ’08 38
4-4 Summary of Contributions of Delays 41
4-5 Summary of Second Level Causes of Delays 42
4-6 Summary of First Level Causes of Scrap 43
4-7 Summary of Factors According to Classification 44 4-8 Summary of Controllable, Experimental and
Noise Factors 57
4-9 Cause and Effect Matrix of Controllable Factors 57
4-10 Recommendations to Controllable Factors 58
4-11 Recommended Training Topics 59
4-12 Incentive Distribution 62
4-13 Cause and Effect Matrix of Experimental Causes 63 4-14 Recommendations for Experimental Factors 63
4-15 FY09 Forecast 66
4-16 Scheduling Factors of Products 67
4-17 Optimal Number of Batches and Cycle Times 68
4-18 Production Sequencing 70
4-19 Summary of Operational Delay
Causes and Recommendations 71
4-20 Summary of Scrap Causes and Recommendations 71
4-21 Summary of Benefits 72
4-22 Contribution of Causes of Delays 72
4-23 Contribution of Recommendations to Delays 73
4-24 Contribution of the Causes of Scrap 74
4-25 Summary of Recommendations 74
4-26 Benefit Cost Analysis for Training 75
4-27 Benefit Cost Analysis for Logsheets 76
4-28 Benefit Cost Analysis for Settings Guides 76
LIST OF APPENDICES
APPENDIX TITLE PAGE
A Computation of Losses xx
B On the Job Training Certification xxi
C Monthly Performance for FY’08 xxii
D Daily Production for FY’08 xxiii
E Optimal Batch Size Product 40010 xxxii
F Optimal Batch Size Product 40000 xxxiii
G Optimal Batch Size Product 42024 xxxiv
H Optimal Batch Size Product 40084 xxxv
I Optimal Batch Size Product 40108 xxxvi
J Optimal Batch Size Product 42032 xxxvii
K Optimal Batch size Product 42051 xxxviii
L Optimal Batch Size Product 42033 xxxix
M Optimal Batch Size Product 40101 xl
N Optimal Batch Size Product 40090 xli
O Optimal Batch Size Product 40080 xlii
P Optimal Batch Size Product 40070 xliii
Q Optimal Batch Size Product 40060 xliv
R Optimal Batch Size Product 40050 xlv
S Optimal Batch Size Product 42029 xlvi
T Optimal Batch Size Product 42037 xlvii
U Computation for Goal xlviii
