reduction of rejects on the production of cdi honda tail light at

REDUCTION OF REJECTS ON THE PRODUCTION OF CDI HONDA TAIL LIGHT AT HELLA PHILIPPINES INCORPORATED, DASMARIÑAS CAVITE

MARCHELLE DALISAY MANUZON 2005-43793

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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EXECUTIVE SUMMARY

Hella-Phil Inc. located along Aguinaldo Highway, Dasmariñas Cavite, Philippines is a 10,000 m² facility that manufactures automotive lighting and horn for various global car makers and motorcycle companies. It has three main types of products classified according to the recipient customer. These are Trade or Independent After Market (IAM) products, OE (Original Equipment) Products for Export and OE Products for Local customers. Out of these products, the Original Equipment for Local Customers made up 79% of the company’s total sales from April to September 2009, 99.7% of which was for Honda Philippines Inc. There are five Honda parts manufactured by Hella, and of these the CDI (Capacitor Discharge Ignition) Honda Tail Light was determined to have the highest cost of rejects amounting to about Php189,916 annually. This study presents an evaluation of alternatives to improve the CDI Honda Tail Light manufacturing process and reduce rejects.

The processes were documented and the root causes of the problems were identified using Pareto-Ishikawa-CNX Analysis. In the Ishikawa analysis, the main causes of the problem were identified under Man, Machine, Method and Material. The breakdown of each of the four main sources of the problem was done in the CNX analysis and the root causes determined were defined as either C (for controllable), N (for noise) or X (for experimental) root cause.

There were eight controllable root causes determined: 1) the operator was doing another process and neglects the moulding machine; 2) the operator was chatting with fellow workers; 3) the workers lacked knowledge/training on the job assigned to them; 4) the standard setup did not work for the machine anymore; 5) the failure of the maintenance department to conduct preventive maintenance regularly; 6) the use of raw material was not recorded; 7) the existing SOP on raw material use is ineffective, and 8) the use of regrind raw materials introduced impurities to the reused plastic.

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The first, second, and third controllable root causes can be categorized as human resource management problems. The first two can be solved by impressing upon the operators the importance of focusing on their work through a bulletin campaign that defines the worker’s priorities and presents the consequences of neglecting their work, while the third cause can be solved by conducting an Annual Training Program for Moulding Operators and Technicians.

The fourth and fifth causes fall under machine problems. They can be solved by implementing a recalibration of the injection moulding machines annually, and having preventive maintenance of the injection moulding machines every 6 months.

The last three causes were material handling problems. The recommended solution to the sixth controllable root cause is to add the Date and Number of Times Used in the Control Number of regrind raw materials. On the other hand, making the current SOP on the usage of regrind raw materials stricter, e.g., by establishing how many times a particular batch of regrind raw material could be reused, would address the seventh root cause, while improving the system of collecting regrind raw material can reduce impurities in reused plastic.

Four experimental root causes were identified, which were grouped into three experimental factors. Factor 1 focused on the alternatives to be implemented on the injection moulding machine. Specifically, these alternatives were: A) acquire a new thermal regulator for the injection moulding machine; B) repair the injection moulding equipment, and C) maintain using the moulding machine in its current state. Of these three alternatives, it was determined that Alternative A was the best option factor rating method. Factor 2 which concerned the mould, had two alternatives: A) buy a new mould, and B) maintain using the damaged mould. It was determined that the better solution would be to buy a new mould. On the other hand, Factor 3 focused on the use of regrind raw materials, which also had two alternatives: A) use only virgin raw materials, and B) continue using regrind raw materials, with the latter proving to be the better choice. If the recommended solutions to the experimental factors were implemented, the company will have a yearly reduction in cycle time of 234 days due to the elimination of the trimming process, and an annual savings of around Php172,688.

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TABLE OF CONTENTS

TITLE PAGE ... i

ACCEPTANCE SHEET ... ii

AUTOBIOGRAPHICAL SKETCH ... iii

ACKNOWLEDGEMENT ... iv

EXECUTIVE SUMMARY ... v

TABLE OF CONTENTS ... vii

LIST OF TABLES ... ix

LIST OF FIGURES ... xi

LIST OF APPENDICES... xii

1.0 INTRODUCTION ... 1

1.1 GENERAL OVERVIEW OF THE COMPANY ...2

1.2 BACKGROUND AND SIGNIFICANCE OF THE STUDY ...6

1.3 STATEMENT OF THE PROBLEM ...9

1.4 OBJECTIVES ...9

1.5 SCOPE AND LIMITATION OF THE STUDY...10

1.6 ROADMAP/MILESTONE ...10

2.0 METHODOLOGY ... 11

2.1 PROCEDURES ...12

2.2 DEFINITION OF TERMS AND SYMBOLS...12

3.0 SYSTEMS DOCUMENTATION ... 15

3.1 GENERAL PROCESSES ...16

3.2 PRODUCT UNDER STUDY ...21

3.3 PROCESS DOCUMENTATION ...25

3.4 MANPOWER COMPLEMENT ...29

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3.5 MACHINES AND EQUIPMENT ...29

4.0 RESULTS AND DISCUSSION ... 31

4.1 PROBLEM IDENTIFICATION ...32

4.2 ANALYSIS ...39

4.3 COST AND BENEFIT EVALUATION ...63

5.0 SUMMARY AND CONCLUSION ... 67

6.0 RECOMMENDATION ... 70

7.0 AREAS OF FURTHER STUDY ... 72

REFERENCES ... 74

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LIST OF TABLES

Table 1-1 Percent Reject per Honda Product manufactured by Hella-Phil. per month ...8

Table 2-1 Abbreviated Terms used in the Study ...12

Table 2-2 Injection Moulding Terms used in the Study. ...13

Table 2-3 Symbols used in Documenting the Manufacturing of CDI Tail Light ...14

Table 3-1 Division of Process Responsibility and KPI ...17

Table 3-2 CDI Honda Tail Light Production from April to November 2009 ...24

Table 3-3 Flow Process of Receiving Components...25

Table 3-4 Flow Process of Moulding the Housing of Honda Tail Light ...26

Table 3-5 Flow Process of the Moulding of Diffuser ...27

Table 3-6 Flow Process of the Moulding of Lens Red ...27

Table 3-7 Flow Process of the Moulding of License Plate Lens ...28

Table 3-8 Flow Process of the Assembly of Honda Tail Light ...28

Table 3-9 Manpower Complement of Processes in Honda Tail Light Production ...29

Table 4-1 Percent of Rejects Moulding Process from April to November 2009 ...32

Table 4-2 Rejects encountered in Injection Moulding of License Plate Lens ...33

Table 4-3 Discrepancy between machine count and operator count in a shift ...38

Table 4-4 List of the Part Numbers for the reused plastic raw materials ...47

Table 4-5 Rejects due to the existence of impurities in plastic raw material used ...49

Table 4-6 Noise Root Causes of the large number of rejects ...49

Table 4-7 Controllable Root Causes of large number of rejects ...50

Table 4-8 Experimental Root Cause of the large amount of rejects ...53

Table 4-9 Cost associated with the acquisition of a new injection moulding machine ....53

Table 4-10 Summary of cost of rejects incurred in the present system ...55

Table 4-11 Percentage of occurrence of moulding defects due to regrind raw materials56 Table 4-12 Cost of rejects due to the use of regrind raw materials ...57

Table 4-13 List of Alternatives for the Experimental Factors ...58

Table 4-14 Parameters to be considered and corresponding assigned weight ...60

Table 4-15 Ratings for Cost to be incurred ...60

Table 4-18 Ratings for Percent Reduction on Waste ...61

Table 4-19 Ratings for Ease of Implementation ...62

Table 4-20 Overall Rating of Alternatives to the Root Causes of the Problem ...62

Table 4-21 Cost of Acquisition of New Mould and New Thermal Regulator ...63

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Table 4-22 Cost of Implementing Solutions to Controllable Root Causes ...63

Table 4-23 Percentage of the Factors that Cause the Occurrence of Rejects ...65

Table 4-24 Cost of Rejects due to Capacity Limitations ...65

Table 4-25 Cycle Time Reduction Due to Elimination of Trimming Process ...65

Table 4-26 Benefits Due to Experimental and Controllable Root Causes Solution ...66

Table 4-27 Cash Flow Projection for Five Years Considering Actual Costs ...66

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LIST OF FIGURES

Figure 1-1 Hella- Phil. Inc. Organizational Chart ... 3

Figure 1-2 Location map of Hella-Phil. Inc ... 4

Figure 1-3 Customers of Hella-Phil. Inc ... 5

Figure 1-4 Percentage of Sales of Hella-Phil. Inc. for each major customer type ... 7

Figure 1-5 Pareto chart of the number of Rejects per Product Part Moulded ... 9

Figure 1-6 Gantt chart of Activities ... 10

Figure 3-1 General Process in In-House Production of Hella-Phil Inc ... 16

Figure 3-2 Process Flow Chart of Honda Tail Light ... 19

Figure 3-3 Honda Tail Light ... 21

Figure 3-4 Honda Tail Light Diffuser ... 22

Figure 3-5 Honda Tail Light Housing ... 23

Figure 3-6 Honda Tail Light Lens Red assembled with License plate ... 23

Figure 3-7 Honda Tail Light License Plate ... 24

Figure 3-8 Diagram of a Horizontal Injection Moulding Machine ... 29

Figure 3-9 Injection Moulding Machine ... 30

Figure 4-1 The Injection Mould of the License Plate Lens ... 34

Figure 4-2 Occurrence of Flashing in the in the side of License Plate Lens ... 35

Figure 4-3 Foreign particle embedded in the License Plate Lens ... 36

Figure 4-4 License Plate Lens with an incomplete spraw ... 37

Figure 4-5 Cracks on the License Plate Lens ... 38

Figure 4-6 Root Cause Analysis using Ishikawa Diagram ... 39

Figure 4-7 CNX Diagram of Causes due to the Man factor ... 40

Figure 4-8 CNX Diagram of the Causes due to the Machine factor ... 42

Figure 4-9 Spring that caused the breakdown of the Injection Moulding Machine ... 43

Figure 4-10 Process of Trimming ... 44

Figure 4-11 CNX Diagram of the Causes due to the method factor ... 46

Figure 4-12 CNX Diagram of the Causes due to the materials factor ... 48

Figure 4-13 Task of changeover of mould of the injection moulding machine ... 51

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LIST OF APPENDICES

Page no APPENDIX A: Percent of Sales from Major Customer Types xiii APPENDIX B: Moulding Data on Housing Honda Tail Light xiii

APPENDIX C: Moulding Data on Honda Diffuser xiv

APPENDIX D: Moulding Data on Lens Red Honda xiv

APPENDIX E: Moulding Data on License Plate Lens xiv

APPENDIX F: Hella-Phil Plant Layout xv