MATERIALS FLOW PROCESS IMPROVEMENT AT THE RAW MATERIALS DEPARTMENT OF MAXIM PHILIPPINE OPERATING CORPORATION,
FIRST PHILIPPINE INDUSTRIAL PARK, TANAUAN, BATANGAS
REYNALD EMMANUEL LACANILAO ENDAYA 2003-08120
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
OCTOBER 2008
v EXECUTIVE SUMMARY
Maxim Philippine Operating Corporation is a company engaged in the production of semiconductor devices used in different application such as automotive, wireless communication and consumer electronics. It established a new facility in First Philippine Industrial Park at Sto. Tomas, Batangas to reduce dependence on outsourced assembly.
The Raw Material Department of the facility is experiencing backlogs while incurring overtime cost. The study’s objective is to determine the root cause of the problem in the Raw Material Department.
Analysis of data gathered revealed that the root cause of the delays by the Raw Material department is the lack of standard process. A large deviation in kitting time and distance traveled is evident from the data gathered.
A redesign of the layout is recommended to reduce the distance traveled by the kitters and the establishment of work standards is made to reduce the time needed to perform a process. The kitting time is reduced significantly thus increasing the number of devices that the kitter can process on a daily basis while eliminating overtime cost.
vi TABLE OF CONTENTS
Page
TITLE PAGE
AUTOBIOGRAPHICAL SKETCH ii
ACKNOWLEDGEMENT iii
EXECUTIVE SUMMARY v
TABLE OF CONTENTS vi
LIST OF TABLES ix
LIST OF FIGURES x
LIST OF APPENDICES xii
1 INTRODUCTION
1.1. General Overview Of The Company 2
1.1.1. Company Profile And History 2
1.1.2. Organizational Structure 3
1.1.3. Company’s Location 4
1.1.4. Industry Classification 5
1.1.5. Customer Served 5
1.1.6. Materials Supplier 5
1.1.7. Strategic Alliances . 6
1.2. Background And Significance Of The Study 6
1.3. Statement Of The Problem 14
1.4. Objectives Of The Study 14
1.5. Scope And Limitation Of The Study 15
1.6. Date And Place Of The Study 15
vii 2 METHODOLOGY
2.1 Research Design 17
2.2 Research Procedures 17
2.3 Research Participants 18
2.4 Industrial Engineering Tools Used 18
2.5 Treatment Of The Gathered Data 19
2.6 Definition Of Terms And Symbols 21
3 SYSTEMS DOCUMENTATION
3.1 General Processes 25
3.2 Product Under Study 31
3.3 Manpower Complement 33
3.4 Machines And Equipment Used 34
4 RESULTS AND DISCUSSION
4.1 Problem Identification 39
4.2 Analysis
4.2.1 Streamline Diagnostic Diagram 44
4.2.2 Formulation Of Alternatives
4.2.1.1 Alternative 1 48
4.2.1.2 Alternative 2 54
4.2.3 Evaluation Of Alternatives 55
4.2.4 Comparison Of Alternatives 58
5 SUMMARY and CONCLUSION 61
6 RECOMMENDATIONS 62
7 REFERENCES 64
8 APPENDIX 66
viii List of Tables
Table No. Page
1-1 Backlog For The Month Of May 8
1-2 Backlogs Incurred In May 9
1-3 Total Overtime Hours Of Direct Personnel
For The Month Of May 11
1-4 Backlogs For First Five Months Of Year 2008 13
1-5 Anticipated Work Orders For 2008 13
2-1 Symbols Used In The Flowchart 23
3-1 Backlog Per Product Type By RM 31
3-2 Manpower In The RM Department 33
3-3 Shift Schedule For MPOC – Batangas 33
4-1 Overtime Incurred By RM Personnel 39
4-2 Values Of Parameters On A Per Component Basis 42 4-3 Elbow Height Measurement Of Filipino Workers 49 4-4 Anthropometric Measurement Of Elbow To Elbow
Breadth Of Filipino Workers 49
4-5 Cost Of Table 55
4-6 Summary Of Net Savings 56
4-7 Summary Of Time Reduction For The Alternatives 57 4-8 Summary Of Evaluation Of Alternatives 58
4-9 Rating In Reduction Of Kitting Time 58
4-10 Rating In Net Benefit 58
4-11 Comparison Of Alternatives 59
ix List of Figures
Figure No. Page
1-1 Location Of Maxim Facilities Around The World 3 1-2 Organization Chart For MPOC – Batangas 4 1-3 Location Of Maxim Philippine Operating Company
Batangas 4
1-4 Pareto Chart Of The Backlogs In Then Raw Material
Department For The Month Of May 10
1-5 Gantt Chart Of The Study 15
3-1 General Production Process Of MPOC – Batangas 26 3-2 Groundfloor Lay-out Of The RM Department Of Maxim 27
3-3 Mezzanine Layout Of The RM Department 27
3-4 General Kitting Process Of MPOC 30
3-5 Pareto Chart Of The Backlogs For RM On May 2008 32
3-6 Printer Used By RM 34
3-7 Label Printer 35
3-8 Desktop PC Used By RM Personnel 35
3-10 Weighing Machine Used To Count Quantities
Of Small Components 36
3-10 Vacuum Sealer 36
3-11 Cart Used By Kitters To Kit In The Location Of The Device 37 3-12 Hand Truck Used By Kitters For Elevators 37
4-1 Streamline Diagnostic Diagram 44
4-2 Typical Travel Path Of Kitter When Weighing 46 4-3 Typical Travel Path For Relabeling Of Box 46
4-4 Work Area Of Worker 49
x
4-5 Layout Of The Kitter’s Workstation 50
4-6 Dimension Of The New Workstation For Kitters 51
4-7 New Layout For Alternative 1 53
xi List of Appendices
Appendix No. Page
8-1 Process Flowchart for Device A 67
8-2 Process Flowchart for Device B 70
8-3 Process Flowchart for Device C 72
8-4 Process Flowchart for Device D 74
8-5 Process Flowchart for Device E 77
8-6 Process Flowchart for Device F 80
8-7 Process Flowchart for Device G 83
8-8 Table of Filipino Anthropometric Values 88
8-9 Pre-determine Time Study Values 91
8-10 MTM For Alternative 1 94
8-11 MTM For Alternative 2 119
8-12 Memorandum of Agreement
8-13 Certificate of Completion of Practicum
