CALIFORNIA STATE UNIVERSITY, NORTHRIDGE
SYSTEMATIC APPROACH TO INCREASE THE PRODUCTiVITY OF A
MANUFACTURING COMPANY
A graduate project submitted in partial satia£action
a£ the requirements £or the degree o£ Master o£ Science
in Engineering
by
Asl.am P. Jamal
·;
I
.
.
The
gradua~e
project o£ Aslam P. Jamal is
epp~oved:
Davis
Prof. !. Costea
<Chair)
Celi:£o:::·nia Stat..e
iJz:.:.v~r.si-:.y.
Ncr-:..!').rl.dge
ACKNQ~kEDGMENT~
My £iret acknowledgment goes to Pro£.
Ileana Costea £or
setting up complete guide linea £or this report an galley
reading o£ the manuscript £or the glaring errors.
On a personal note.
I am
~rate£ul
to Mr. Dante V. Lusica
£or allowing me to work on thia project.
I am appreciative c£ the reviews made by Pro£. M.W Li£son
and Pro£. G. Davis.
I would like to thank ClAM
~aculty
and ata££, Pro£. A.
Roe and Ms L. Holzman and the University thesis advisor
Me. C. Oyer.
TABLE OF CONTENTS
i.
TITLE
ii.
APPROVAL
iii. ACKNOWLEDGEMENT
iv
TABLE OF CONTANTS
vii
ABSTRACT
CHAPTER
1.0
2.0
PAGE
INTRODUCTION
01
1.1
BACK GROUND ON COMPANY
01
1.2
OBJECTIVE OF THE MANAGEMENT
01
t.3
PROBLEM
02
1.4
OPPORTUNITIES
02
1.5
TECHNICAL APPROACH
04
STUDY OF THE PRESENT SYSTEM
PRESENT SYSTEM
10
1()
2.1
STEPS OF THE
2.2
FLOW PROCESS CHART
13
2.3
MATERIAL FLOW PROCESS CHART
15
2.4
MAN FLOW PROCESS CHART
21
2.5
FLOW DIAGRAM
25
2.6
CONCLUSION DRAWN FROM STUDYING THE
29
PRESENT SYSTEM
iy
TABLE OF CONTENTS <CONT.)
3.0
4.0
5.0
ANALYSIS
31
3.1
ANALYSIS OF THE PRESENT SYSTEM
31
3.2
CAUSE-AND-EFFECT DIAGRAMS
32
3.3
EVALUATION OF THE PRESENT SYSTEM
36
COMPARISION OF ALTERNATIVE PROPOSALS
47
4.1
47
ALTERNATE PROPOSALS
ANALYSIS OF ALTERNATIVE SOLUTIONS
49
5.1
ANALYSIS OF ANTERNATIVE 1
49
5.2
ANALYSIS OF ALTERNATIVE 2
63
5.3
ANALYSIS OF ALTERNATIVE 3
74
. --6.0
EVALUATION OF ALTERNATIVE SOLUTIONS
79
6.1
EVALUATION OF ALTERNATIVE 1
eo
6 ... 2
EVALUATION OF ALTERNATIVE 2
82
6.3
EVALUATION OF ALTERNATIVE 3
84
6.4
SUMMARY OF COMPARISION OF
86
alternatives
'
7.0
..
CONCLUSION
87
----
v
TABLE OF CONTENTS <CONT.)
BIBLIOGRAPHY
88·
APPENDICES
A
PROCESS CHARTS
B
FLOW DIAGRAMS
C
CAUSE AND EFFECT DIAGRAMS
D
COST AND REVENUE ANALYSLS CHARTS
---
'
..
vi
ABSTRACT
SYSTEMATIC APPROACH TO INCREASE THE PRODUCTIVITY OF A
MANUFACTURING COMPANY
by
Aslam P. Jamal
Master c£ Science in Engineering
In this
project~
the productivity improvement study i s
done £or the Hydro Systems, the bathtubs manu£actur1ng
company c£ Southern Cali£ornia. The objective o£ this
study is to identi£y the opportunities so that the
production capacity c£ the company can be increased. The
present manu£acturing process is studied and analysed by
using Industrial Engineering techniques such as £lew
process charts, £lew diagrams, cause-and-e££ect diagrams,
and line balancing.
The company is going to implement the recommendations end
suggestions made in this project.
vii
Hydro Systems is a small £irm located in North
Hollywood, Cali£ornia. The company ie engaged in the
Three types o£ bathtubs are
manu£acture o£ bathtubs.
made at thia £acility:
a. £iber-glass bathtubs: the tuba are made in house
£rom raw material to £iniahing
b. cast iron bathtubs: the tuba are made outside the
£acility. only drilling, plumbing. and £iniahing are
done .t.n house
c. marble bathtubs: drilled tuba are made outside the
£acility and only plumbing and £iniehing are done in
house
According to the present plant layout, the plant capacity
is 20 units per day. The £acility covers an area o£
12,784 aquare-£eet. The company operates an an eighthour shi£t a day with 18 direct labor £orce.
Due to the tremendous increase in orders. the company
1
.....-,
has decided to increase its production capacity £rom
20 units to 50 units a day. Besides the fiber-glass,
cast iron, and marble bathtubs. the company has
decided to introduce a new product in the near £uture:
acrylic bathtubs. The acrylic tube are made by a vacuum
£arming precess.
The major problem in achieving the above stated objective
is the space limitation o£ the £acility. According to the
present setup o£ the plant. the space is hardly enough to
produce 20 units a day.
There seems to be plenty o£ opportunities available to
achieve the objective. These are:
e. utilization o£ vertical space by providing
mezzanine £loor to per£orm the curing operation wh1ch ia
the longest operation and requires maximum apace
b.
improving the material handling end the material
storage a.ye.telf'
c. creating better line balancing to minimize elapsed
time and eliminate bottlenecks or staging o£ material
d. pre£ered operating methods to reduce process cycle
time
e. better scheduling to reduce work-in-process inventory
The Method-Engineering approach is used in solving the
problem. This approach is generally basic to all
engineering analysis and design £unctions.
It can be a
guide to analysts in all typea o£ problem solving <see
£igure 1.1). The outline £or problem solving is re£ined
into seven problem solving etepe.
5
[
OB.JECT IVE
STUDY OF PRESENT SYSTEM
Flow Process Chart
Flo~ Diagram
~
~[________1_1_N_A_L_'_i_S_I_s_·_I_J_F__f_~~R_E_~_;E_~N__T__
s_·'_I_S_1_'L_;M
_______
~
CBuae-And-E££ect D1agrama
I
[
Gen~rate
Alternat1ve Solut1ons
r
..__ ANALYSIS i.JF ALTERNi>.T IVE SOLUTION:::-]
Layout Plann1Dq
Economy Anal'la1S
._[~-=~=f.-._2-V_'-,r>;-L-.
U_A_T_I_u--·_N_O_F___
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.R--_-N-i\-T--7-t-V-E-SC.IL
UTI~~ N.;
]
Evaluat1on Cr1ter1a
[
Figure 1.1
-----~
CONCLUSION
PROJECT FLOW CHART
_______J__
The ob1ectives o£ thls proJect are to:
e.
study tne present system
to
1dent~fy
tne problem
r:;:=r:,ndi tione
c.
analyze the system to evaluate and 1denti£y the area
o:f J.mprovements
c. provide management with alternate proposals £or making
ln order to understand the product and the various
processes to manufacture the bathtubs.
of the present system ia necessary.
are used to study
~he
a
thorough study
The :following tools
present svatem:
a.
mater~sl-:flow
process chart
b.
man-flow process chart
c.
material-flow diagram
d.
man-flow d1agram
tsee £iqure 2.l.al
(see f1gure
2.2.aJ.
(see figure 2.3).
(see figure 2.4).
These tools will permit a thorough
analys~s
of the system
and will form the basis :for improvement.
The £low process chart 1s a sequent1al listing o£ brie£
deacr1ptiona of each o£ the steps involved 1n the syaLem
(see details on section 2.2).
The £low diagram is a graphical illustration o£ the
syetem(see section 2.5).
Once the problem conditions are identi£ied by studying
the present system. the analysis can proceed by applying
the questioning
att~tude
and the £undamental principles
o£ engineering analysis using cause and e££ect diagrams
o£ten called £ish-bone diagrams <see £igure 3.1).
Questions such as the £allowing are asked:
What i s being done?
~hen
is i t being done?
Where is i t being done?
How ia i t being done?
Who doe a
it·?
The pertinent £acts related to the particular process are
gathered.
From these £acta the cause o£ conditions and/or
the e££ect can be £ound. Completion o£ this step provides
a detailed understanding o£ the problem. and possible
causes and e££ecta a£ conditions related to the problem.
The evaluation done in this study is purely on a
judgemental basis.
i.e., no mathematical model is used.
,_,
'-'
From the in£ormation gathered through the study o£ the
present system and the analysis o£ the
system~
i t is
possible to prepare alternate solutions. In order to
compare these solutions, the objective o£ the study is
the £irat £actor to be considered.
In this case 9 the
objective is to increase the production capacity.
The
second factor would be the economy o£ the alternate
solutions (see section 4.0).
Two major criteria are used t6 analyze the
alternative~:
space analysis and economy analysis.
Systematic layout planning <SLP) is used to analyze space
requirement <see section 5.0). The economy analysis is
done by doing cost and revenue
analysis~
preparing cash
£low analysis. and calculating present worth <PWl £or all
the alternatives (see section 5.1.b).
The alternatives are evaluated on the basis o£ the
criteria mentioned in section 1.5.5.
1 . 5. 7 G_CINQLJJ$JQN
The project is concluded by providing management with the
proposed
alternatives~
alternatives~
analysis of the proposed
and the evaluation of the proposed
alternatives. The decision is le£t to the management who
will finally select the best alternative.
The present system o£ manufacturing o£ bathtubs starts
with mold preparation. The mold is brought to the mold
preparat~on
prepared,
area
~na
cleaned and waxed. After the mold is
i t is transported to the gelcoat station where
the desired color is coated on the mold.
gelcoating is done.
After the
the mold is brought to the curing
area on a cart pushed by the gelcoat operator. The mold
is cured there £or one hour.
On the completion o£ curing.
the mold i s brought to the chopping station where the
£irst coat of fiber-glass is chopped by using a chopping
gun and sprayed on the mold along with the raisin to get
good bond of fiber-glass on gelcoat. The mold is then
pushed to the rolling station where i t is rolled to get
an even surface o£ the fiber-glass.
The mold is then
brought to the curing area where i t is cured £or two
hours.
During the curing. the extra fiber-glees at the
edge o£ the mold is trimmed off. The mold ie brought to
the chopping station where a aecond coat o£ £iber-glaas
is applied. The fiber-glees ia then rolled at the rolling
station and the mold is moved to the curing area where i t
is cured £or £ive hours.
During the five-hour curing
process, the shift is over.
__ 10
The tub is separated from
11
the mold the next day. Then the mold is sent back to mold
storage and the tub is taken to the grinding
~tation.
It is carried by hand.by two helpers. The tub is ground
and sent to the work-in-process storage where it sits £or
an indefinite period o£ time depending upon the
management decision to proceed.
When the tub gets clearance.
i t goes to the marking
station where the holes are marked to be drilled.
The tub then goes to the drilling station where the holes
are drilled and the tub is moved to the plumbing station.
Plumbing is the most time consuming and the most poorly
per£ormed method.
cut.
For each tub. the pipes are measured.
and bent at the time o£ plumbing instead o£ using
pre-cut and pre-bent pipes.
A£ter the plumbing is
completed. the tub is sent £or water testing where the
£low o£ water. water leaks. and drain are tested.
A£ter
the water testing, the tub is transported to the
finishing station where grinding. buffing. and polishing
is done on the tub. The tub is then sent to
work-in-process storage where it sits £or an inde£inite
period o£ time depending on management decision.
When
the tub gets clearance. ·it goes to crating station where
wooden crating is done and the tub is sent to the
shipping area where it waits to be shipped.
~1gure
2.1.a shows mater1al
shows man-process chart.
d1agram.
process-char~.
Figure 2.3 shows material-±low-
Ftgure 2.4 shows man-£low-diagram.
J. •_j
The £law-process chart is used to record the process
compact manner,
understood and
~n
a
so that the process can be better
eventual~y
improved.
The chart represents
the atepa that occur during any process.
A care£ul study
o£ the process charta suggests most o£ the time the
solution £o the present system.
It is £requently found
that certain elements can be eliminated entirely or
partly, one operation can be combined with another,
better routes £or the parts can be found,
more
econom~cal
machines can be used, delays between operations can be
eliminated, and other improvements can be made. The
process chart assists in showing the effects that changes
in one part of the process will have on other parts or
elements of the process. Several material and man-process
charta are presented in the following sections.
symbols used in a
Q_p_§;L~_i;J,_o_n
The
£low process chart are:
An operation occurs •-Hhen an ob.)ect is
intentionally changed in one or more o£ its
characterstica.
An operation represents a ma1or step in
the proce.ae and usually occurs at a machine or a worK
.stat.1on.
T:r~.D~..P.QI:_i;.§.l!,_i._9n_
A transportation oc.cu:::-s when on obi ect
1. ~
14
moved £rom one station to another. When the movement is
an integral part o£ an operation or an inspection.
i t ia
not considered a transportation.
~.D.§P~f:!_i;AQ.!l
An inspection occurs when an object is.
examined £or identification or is compared with a
standard £or quantity or quality.
P~l~Y
A delay occurs when the performance o£ the next
planned operation does not take place immideately.
~t:.9£.~.g~
A storage occurs when an ob.iect is kept under
control in a storage area such that its withdrawal £rom
that area requires authorization.
~
.
15
This section will present several material-£low-process
charta. The £low-process chart which ia used to record
the steps the material goes through £rom start to
£inish is called material-±low process-chart.
It is
important to £allow the material throughout the entire
process and not the human operator.
It .i."?.. vita 1
that all steps the material goes through are recorded ao
that any unnecessary steps present in the system can be
eliminated or modi£ied. For example, the material-±lowprocess chart <see ±igure 2.1.al contains all the steps
that the product goes through £rom start to £iniah.
The
£irst column in the chart describes the action applied to
the material.
The second column identi£ies that action
as an operation, a transportation, or a delay etc. by the
corresponding symbol. The third, £ourth, and £i£th
columns give quantitive in£ormation about the actions.
The sixth column questions the action: what is being done
to the product. where is it being done. when is i t being
done, who does i t . how is i t being done.
b~
This column will
dealt with in the analysis part in Chapter 3. The
seventh column is £or writing notes.
I£ any suggestion or
any better solution come across during the study. they
can be marked in this column and later tney can be
re£erred to during the analysis. A summary section 1s
provided at the top o£ the chart.
It
summar1z~s
the
process by showing the total number o£ actions o£
operation,
transportation~
inspection, delays. and
storage, and the total distance travelled by the product.
The summary o£ the chart helps comparing the present
system with the proposed system. The di££erence between
the two systems shows the improvement done to the
system.
.•
17
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~--------~-----------------------~------~~
PRO:: E~S CtiAR1
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Figure 2.1.a
Material £low process chart
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18
PRO: ESS CHAR1
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21
The £low-process chart which is used to record the steps
that the operator goes through in completing a process on
the product is called man-£low-process chart.
The same £ormat o£ chart is used £or both the materialand the man-flow-process chart. The operator
is
closely
£allowed throughout the process and all the steps the
operator goes through are recorded so that any
unnecessary step o£ the operator can be identi£ied. Also
i t helps to identify any poor operating method the
operator may use.
For example, the man-£low-process chart
<see £igure 2.2.1) shows all the activities o£ the
gelcoat operator. By studying this chart. the unnecessary
steps o£ the operator and the poor operating methods can
be
identi£ied and eventually improved. Henc the
e££iciency o£ the operator can be improved.
All the entries in the chart are the same as in the
material £low process chart except here the steps of the
operator are recorded instead o£ the material steps.
-- ___ ,_
Pl10C.ESS CtiAR1 -
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--·-·-··---·--------
25
To get a better picture o£ the overall process. a £lowd1.agram l.s used.
A £low-diagram can be made by drawing
±low lineg on a plant layout. These £low lines
sho~
the
path o£ travel o£ material ln a material £low-diagram or
the path o£ travel o£ the human operator in a man-£low
d1agram.
~or
example. figure 2.3 shows the path o£
travel o£ the product £rom start to £inish and i1gure
2.4 shows the path o£ travel o£ a gelcoat operator.
The di££erence between the £low-process-chart and the
£low-diagram is that the £low-process-chart is a
sequential listing o£ the brie£ descriptions o£ each o£
the steps o£ the system.
While the £low-dl.agram
l.S
a
graph1cal l.llustration o£ the system.
When analyzing a system £or lmprooement,
both the £low-
process-chart and the £low-diagram should be developed
£or a thorough analysis. The £law-process-chart states 1n
detail what is being done. whereas the £low d1agram snows
where the work is be1ng done.
d~egram
In addition.
the £low-
shows the path o£ flow o£ the system.
Criss-crossing. retracing of steps, or some ather
haphazard flow are all 1ndicators of potential £or
improvement.
such as changing the layout or combining
operations.
Only one diagram o£ material-£low ia needed while a men£low-diagrem £or each operation per£ormed ie required.
27
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Figure- 2.3
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CHEMiCAL. -STORAGE-'- -
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Material flow diagram
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28
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Figure 2.4
Man £low diagram
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I
29
Upon studying the present system. the £allowing
conclusions have been drawn:
a • ~Ll\.:IJ~:_R~l!.b
The material flow diagram <see figure 2.11) clearly
indicates the ine££icient way o£ manufacturing the
product. Because o£ the poor layout. the £low o£ material
is cries-crossed. The product has to travel an
unnecessarily long path. The excessive delay 1n process
cycle shows the poor line balancing and
ine££~cient
scheduling by the management.
The man-£low process chart shows that there is no
standard method a£ performing any operation. The
operation method and time varies £rom operator to
operator. The operators are used to expedite work
such as bringing material and moving the product £rom one
station to another.
Manual operating methods are used throughout the process.
There is no standard £or any operation. The methods used
£or some o£ the operations are very inefficient. For
instance, during the plumbing operation. the pipes are
measured, cut, and bent £or each tub instead a£ using
pre-cut and pre-bent pipes.
A poor material handling system is used to move material.
The molds are moved on carts pushed by human operators.
A considerable amount of physical force is required to
push the cart. Once the tub is separated £rom the mold.
i t is moved by lifting i t manually. Two persons are
required to move the tub. Sometimes the tub is raised to
full arm length to overcome obstacles.
Upon completion o£ the £low-process-charts and £lowdiagrams o£ the
system~
further analysis £or improvement
can be guided by a set o£ pertinent questions. These
questions are given below:
i.
Can movement paths be shortened by
a. Changing sequence o£ steps?
b. Changing location o£ particular operations?
c. Regrouping related operations?
ii Can material handling equipment and procedures be
modi£ied to advantage by
a. Designing o£ special racks?
b. Creating vertical storage?
c. Providing special carts?
iii Can process be modi£ied by
a. Combining certain operations?
b.
Improving toola to make the operating methods
betb:r·?
c. Simpli£ying operating methoris?
These questions can be answered by using cause-and-ef£ect
diagrams £or each operation. Each operation can be
analyzed in detail by asking the above questions.
31
A cause-and-e££ect dLagram is a picture composed o£ lines
and symbols designed to represent a meaning£ul
relationship between an e££ect and its cause. For every
e££ect, there are likely to be many interrelated causes.
Cause-and-e££ect diagrams are used to investigate either
a bad e££ect to correct ita causes, or a good e££ect to
learn how to continue doing things the way that produces
that good e££ect.
A
cause-and-e~£ect
diagram £requently called Fiahbone
diagram (see £igure 3.1> consists o£ questions such as:
What is the operation being per£ormed?
The
answer to this question states the operation
per£ormed,
i.e.~
drilling or plumbing etc.
Where is the operation being done?
The answer to this question £iret states where this
operation is being done at present.
Then all other
places where this operation can be per£ormed are listed
and out o£ these possible places, the beet location would
be proposed.
33
~l:HiN:
When is the operation being done?
The answer to this question identifies before or after
what other operation this operation is performed at
present. Other possibilities £or this operation to be
performed at some other time are listed and the beat
alternative is proposed.
W.H.Q.:
Who performs this operation?
Is the operator a skilled
operator or can any person per£orm this operation?
The answer lists all other people or machines that can
per£orm this operation and proposes the best
alternative.
}:!_Q~.:
How is be1ng done? What method is used to perform this
operation"?
The answer lists other possible methods to perform this
operation and select the beat method.
WJ:!.Y..:
Why is being done?
The answer states the necessity o£ the operation.
~f,..~fi::
What else could be done? I£ this operation is necessary
then there is no choice.
i£ i t 1a not necessary then what
else can be done? Can the operation be eliminated or can
i t be replaced or can it be combined with other
operations?
The £allowing pages show the cause-and-e££ect diagrams
representing each o£ the processes required in
manu£acture o£ bathtubs.
Aalyzing these diagrams by asking the above questions
can lead to better proposala and help in designing a
better syst.em.
'TJ
1-'
1,0
c::
'1
ftl
.
V.:•
I
WHO
WHERE
1-'
'TJ
1-'·
[ll
::1'
tr
0
:::t
HELPER
MATERIAL
HALDLER
EXPEDITER
NEAR GELCOAT STATION
ON FLOOR STACKED ON ONE
· ON HANGERS
ftl
0..
!-'·
WHAT
FOREMAN
!XI
1!)
MOLD STORAGE
'1
!XI
:::
HOW
WHEN
VERTICAL STORAGE
AFTER PARTING OF TUB
INCLINED STORAGE
AT THE BEGINING OF SHIFT
RETRIVAL BY HOIST
END OF SHIFT
FLOW RACKS
WAITING FOR SCHEDULE
~-~1j
TO SAVE AND STORE THE
MOLDS
J
ir~SE
J
NONE
•
'..1..'
u:
The study a£ flow process charts and £low diagrams and
analysis o£ cause-and-e££ect diagrams leads to better
solutions.
Taking each process separately, the following specfic
recommendations are made:
1 •
l>HJ.k-~P~~.-S:I.QRA§._g
WHERE
Present: Stored an floor scattered near gelcoat
station.
Proposed: Uee vertical storage eyatem by
providing £low racks.
WHEN
Present: After the tub is separated £rom the mold.
Proposed:
WHO
Unchanged.
Present: Skilled gelcoat operator and helper.
Proposed: Two helpers. There i s no need to use
skilled operator £or this purpose.
Haw
Present: On the floor scattered.
Proposed: Vertical storage by providing flow
racks.
2 •
tt.QJ,._Q...Y~-g~~.AB.ATJ:_QN.
WHERE
Present:
Near gelcoat station.
Proposed: Provide mold preparation area on
mezzanine.
WHEN
Present: Before gelcoat operat1on.
Proposed:
WHO
Present: Skilled gelcoat operetor.
Proposed:
HOW
Unskilled helper.
Present: Apply polish by hand using cloth.
Proposed:
WHERE
Unchanged.
Unchanged.
Present: At enclosed gelcoat station at
the £ar end £rom the receiving area
(see figure 2.11).
Proposed: Enclosed gelcoat station locate next to
receiving area to achieve straight line
£low (see figure 5.7).
WHEN
Present: At the start o£ the day r1ght a£ter the
mold preparation.
Proposed: At the start o£ the day right after the
mold preparation.
WHO
Present: Skilled gelcoat operator.
Proposed:
HOW
Present:
Unchanged.
Using spray gun.
Proposed: Unchanged.
38
4. c;!JJRJNJ;- J.
WHERE
Present: On £loor scattered near chopping station
<see £igure 2.11).
Proposed: Provide curing station next to gelcoat
station and the molds should be lined up
properly (see £igure 5.7).
WHEN
Present:
Immediately a£ter the gelcoat operation.
Proposed: Unchanged.
WHO
Present: Skilled gelcoat operator moves the molds
to the curing area.
Proposed:
Helper should move the molds to the
curing area.
HOW
Present: Cure at room temperature.
Proposed: Unchanged.
s • G_ll o PJ?..I.lll.!:.!::-_:1:__
WHERE
Present:
At chopping station near galcoat station
<see figure 2.11).
Proposed: Chopping-! should be done at th
chopping
tation next to curing-I area
(see £igure 5.7).
When
Present: At the end o£ curing.
Proposed: Unchanged.
Who
Present: Skilled chopping operator.
Proposed:
HOW
Unchanged.
Present: Using chopping gun.
Proposed:
Unchanged.
6 • B_Q!,._l:_!_J:lG - :I:_
WHERE
Present: At rolling station between gelcoat and
chopping station <see figure 2.11).
Proposed: At curing-II station at mezzanine floor.
WHEN
Present:
Immediately after chopping.
Proposed: Unchanged.
wHO
Present: Helper.
Proposed:
HOW
Present:
Proposed:
WHERE
Unchanged.
By hand roller.
Unchanged.
Present: At curing station on floor near chopping
station
Proposed:
WHEN
At curing station on mezzanine floor.
Present: During curing.
Proposed: Unchanged.
WHO
Present: Helper.
Proposed:
HOW
Unchanged.
Present: By hand using shearing blade.
Proposed: Unchanged.
8.
~Q!VL.J?._~~}o{J.li~
WHERE
Present: At curing station.
Proposed:
WHEN
Unchanged.
Present: Be£ore chopping-II operation.
Proposed: Unchanged.
WHO
Present: Skilled chopping operator.
Proposed: Unskilled helper.
HOW
Present: Cutting each piece to required eize at
the time o£ £oam backing operation.
Proposed:
9
Use pre-cut £oam.
!. .•...Q.H.Q££.1~.~-=-.JJ.
WHERE
Present: At chopping-! station.
Proposed: At chopping-IT station provided at
mezzanine £loor .
Present:
l<.iHEN
Immediately a£ter £oam backing.
Proposed: Unchanged.
WHO
Present: Skilled chopping operator.
Proposed: Unchanged.
HOW
Present: Using chopping gun.
Proposed: Unchanged.
1e .
BQJ-.J,.Ll:!.f>_=J_l
WHERE
Present: At rolling atation-1.
Proposed: At curring atat1on-3 at mezzanine.
41
WHEN
Present:
Immediately a£ter chopping operetion-2.
Proposed: Unchanged.
WHO
Present: Helper.
Proposed:
HOW
present: By hand roller.
Proposed:
WHERE
Unchanged.
Unchanged.
Present: At curing atation-I on £loor near
chopping station-I.
Proposed: At curing station-III provide at
mezzanine.
WHEN
Present: During curing-III.
Proposed:
WHO
Present: Helper.
Proposed:
HOW
At curing station-III provide on
mezzanine next to chopping etation-II.
Present: A£ter rolling-II operation.
Proposed:
WHO
Unchanged.
Present: At curing station-!.
Proposed:
WHEN
Unchanged.
Present: By hand using shearing blade.
Proposde:
WHERE
Unchanged.
Unchanged.
Present: Helper.
42
Proposed:
HOW
Present: Cure at room temperature.
Proposed:
13 .
Unchanged.
Unchanged.
G_5:JJ'!Q_l_~~-
WHERE
Present:
At the £inishing station. This operation
is per£ormed only to £acilitate easy
handling o£ the tub a£ter i t is parted
£rom the mold.
Because o£ the rough
edges o£ the tub i t is very di££1cult to
carry the tub by hand.
Proposed:
In the proposed method the tub is going.
to be moved on a slave pallet with
wheels steed o£ carrying it by hand,
thus
this latter operation is eliminated.
14_~ ___ p_f(l:_hi,.JN~
WHERE
Present: At drilling station
<see £igure 2.11).
Proposed: At drilling station. However. the
location is changed (see £igure 5.7).
WHEN
Present: A£ter grinding.
Proposed! A£ter curing-III.
WHO
Present: Skilled drilling operator.
Proposed: Unchanged.
HOW
Present:
Measuring and marking each hole at the
time o£ drilling and changing drill b1ts
each time £or di££erent sizes o£ holes.
Proposed:
Use templates £or marking holes,
use
multi-step drill having di££erent sizes
o£ bits.
WHERE
Present: At plumbing station next to drilling
station
Proposed:
<see £igure 2.11).
At plumbing station.
location is changed
When
However,
the
tsee £igure 5.7).
Present: A£ter drilling.
Proposed:
WHO
A£ter plumbing.
Present: Skilled plumbing operator.
Proposed:
HOW
Present:
Unchanged.
Measured~
cut,
and bend each pipe to size
every single cycle.
Proposed:
16 •
Use pre-cut and pre-bent pipes.
~ATE.:I-L.T_!=::?T.
WHERE
Present: At water test station next to plumbing
station.
Proposed:
At water test station. However,
the
lc·\:ation is changed (see £igure 5.7).
44
WHEN
Present:
Proposed:
WHO
Unchanged.
Present: Skilled plumber.
Proposed:
HOW
After plumbing.
Unchanged.
Present: Fill the tub
w~th
water by hose and run
the water through pipes using motor.
Drain water by gravity which takes too
much time.
Proposed:
WHERE
Present:
Syphon out water from th0 tub.
At finishing station next to chopping
station.
Proposed:
At finishing station next to water test
station.
WHEN
P~esent:
Proposed:
WHO
water test.
Unchanged.
Present: Skilled finishing operator.
Proposed:
HOW
Afte~
Present:
Unchanged.
By hand using grinding and buffing
wheels.
Proposed:
WHERE
Present:
Unchanged.
At crating station near shipping area.
Proposed:
wHEN
Present: A£ter £inishing.
Proposed:
WHO
Unchanged.
Unchanged.
Present: Skilled carpenter.
Proposed: Unchanged.
HOW
Present: Make wooden crates and staple them.
Proposed: Unchanged.
On the basis of the above evaluation,
the following
general suggestions regarding the system are made:
a •
11J:tT_I;:_RJ_!)_t,._~.1QRAg_i;_
A vertical system a£ work-in-process and mold storage
should be used by providing ±low racks. The racks should
be close to work stations to minimize material handling
(see figure 5.7). The finished product should be stored
on racks in open area outside the building.
b •
H.f!.TJ;F1fib__Jj_~~J~1.J...N!i.
The study a£ the present system shows that the raw
material and work-in-process material are moved by labor
carrying by hand.
The following material handling equipment should be used:
f.(§_~_J1_?J;_exA.e:.l
A hand truck should be used to move raw material.
46'
W.Q!.'_!:<- .~n.=_P~.9E.~?>-~-·-M ~t.§.Li..~JThe molds and tube should be kept on slsve pallets having
rollers to move £rom one station to another.
r:l:J:!_~~.fLe_.::l,____f'J.:'_Q_q_y_r;:_i;_
A Fork li£t should be used to move the £iniehed product
to the shipping area.
The material £low diagram <see £igure 2.11) shows that
the £low o£ material is crisscrossed. The material has to
travel an unnecessarily long path. This can be eliminated
by providing a straight line £low throughout the process.
The analysis o£ the present system shows that poor
operating methods are used in some o£ the operations. The
£allowing method improvements are
i.
sug~estect:
Use templates £or marking holes £or drilling instead
o£ measuring and marking each hole. This will reduce
operation time
11. Provide adequate number o£ drills and use multi-step
drills to avoid changing o£ bits £or di££erent sizes o£
holes.
The analya1s shows that enough apace can be created by
ua1ng a vertical storage system for molds and
work-in-process material.
Also more space can be
created
by eliminating staging o£ work-in-process product by
proper scheduling. Process cycle time £or some o£ the
operations can be reduced by changing operating methods.
This would allow processing o£
mor~
units per day.
Improved plant layout would allow straight line £low o£
material throughout the procees which would minimize
material handling.
The above suggestions will make
possible the increase of production capacity o£ the
current products.
However,
introducing a new product.
near future.
the management is considering
the acrylic bathtubs in the
The new product will require additional
a. pace.
On the baeis of the analysis
made~
the following three
alternatives are proposed:
a.
Rearrange the
e~iating
facility layout by achiev1ng a
straight £low of the product and by line balancing to
47
accommodate the increase in production without keeping
the provision o£ the vacuum £arming process needed £or
the acrylic bathtubs.
b.
Rearrange the existing £acility layout by achieving
the straight line £low and utilize the vertical space by
providing the mezzanine £loor to accommodate some o£ the
operations.
Create vacuum apace £or the vacuum £arming
operation needed ±or acrylic bathtubs.
c. Lease a new £acility having enough space to achieve
the required production and to accommodate the space
needed £or the vacuum ±arming operation.
----
-
··-
The analysis o± the alternatives is done on the basis o£
two criteria:
a. space Analysis
b. economy Analysis
Analysis o£ Alternative 1 is done on the assumption
that the existing facility should be rearranged by
designing the layout in such a way that a straight line
£low is maintained throughout the process. A better
material £low and material storage system should be
designed to maximize the £loor space utilization
balancing to achieve the required space £or increase in
production capacity without keeping the provision for
vacuum forming process.
The systematic layout planning <SLP)
plant layout.
is used in designing
The frame work £or systematic layout
planning is given in Figure<5.1).
49
p •
so·
'-
DEVELOPING ALTER.SATlVES: CONCEPTS A.SD TECH:--;IQUES
3. Relationship
diagram
5.
4. Space
requirements
Soace
available
6. Space
relationship
diagram
r-------~------~~
8.
7. Modifying .
considerations
P~acttcal
lii'f11!3!10nS
9.
Develop
layout
alternatives
10. eva:uation
Figure 5.1
.
-.;.
. ..
Syatemat1c layout planning (SLPl
procedure
51
Baaed on the input data and an understanding o£ the roles
and relationship between
activities~
an activity
relationship analysis ia per£ormed using the activity
relationship chart (see £igure 5.2). From the activity
relationship per£ormed. a relationship diagram ia
developed (aee £igure 5.3). The relationship diagram
positions activities spatially.
The next step ia to determine the amount o£ apace to be
assigned to each work atation.The data £or apace
requiremen~
is collected £rom existing £acility layout
(see £igure 5.4). Once the apace requirement has been
made, the apace relationship diagram is obtained <see
£igure 5.5).
Baaed on modi£ying conditions and practical limitations.
a number o£ layout alternatives are developed (see £igure
5Q6) and
pre£err~d
alternative ie
recommended~
'T1
.....
i.Q
c:
11
11)
.
Ut
t0
A!
11)
1-'
,
1
MOl)) Cf;e
~
~
/'1oL j)
1 Col< lNG
I
s I ClitJl'l"tNc; I
0
7 CI/OI'I'!Nt;JL
8
Cuh.vt;
1j
'!
))J.'tLUNfi
g..
I o PLU/11/'.tNG
:r
.....
n
!}1!.5tJLU7"6L Y
c.
t;_~f'tC!AL
I
J I'>A.')~T /J,v T
0
QP :biN/''' y
1--
--
][ .
[ll
CL OSEN£s'.r
REL /lTI()N!: 111,0
IGEL Co/IT
(; I CuA.INfj-
;:I
I
~I?£ P.
Ill
....rt
I
'I fiLUf
11'11~
L't J/t}l',
u
----------C) tllfl7 />t?;:'/A NT
lil.
)(
U f'/.])£, ~II\ 1] f, L £
';
~
11
rt
J"';t r r.-12
------~
r._.~s r.
·-!-------
11
1( -1 ftN/.)fi!M'j.
--,
13 C ~ /JF/IV(i
(JoJJl
11.11-J/fl ,rrv..Q<'J<i£
Is
l ,(!ECI£V//Vt;.
ReS"/
20
1
f'I:(J C E,SS ,.s'E<I:J.
2
FLot.v or I": AT"''-'·".
3
:?/Jtrl£ :;p oc ;;
4
CONVc/lttENT
~
,{1 C;Off/
lif---~---.:.'-
-
I
i
I
1~ 1Slt!l'f'INti
1·1 1 !'IJ rs t1t;e
I~
I
R.E~S.ON
-·5
./
·----~
6
'---
..
~
-·--,
·--···
i
i
l
U<
t-.:·
Figure 5.3
Relationship diagram
STATION
SPACE REQUIRED
SQ-FT
MOLD STORAGE
750
.L
MOLD PREPARATION
200
3
GELCOAT
600
4
CURING-I
840
5
CHOPPING-I
600
6
CURING-II
840
7
CHOPPING-II
600
8
CURING-III
'3
DRILLING
840
10
PLUMBING
750
11
WATER TEST
600
12
FINISHING
840
13
CRATING
390
14
WIP STORAGE
560
15
SHIPPING
16
RECEIVING
17
PASSAGE
18
REST ROOM
1
~,
1800
3000
80
13090
Table 5.1
Space requ1rement
55'
s:::====~: (G:o) I
I
~~
3
11
(6 oo')
(600)
16
Figure 5.4
\
~=====~1,_;....-1["-....
~
],____,
Space relationship diagram
·----------------~----~
.•
-·
"-· ..
8
6
7
.
14
s
5
4
. 10
-·
.
3
17
11-
---
.
-
..
L
- ---
-----
.
12.
I
-
-~=--'!!!:!!!'~...!'
.
.,
13
1.
18
...
16
F1gure 5.5
EJ
..
Block layout
-
ll!a!!J
_,..,.
:fii!J
---
.--
--·~-
_rl£c11-'Y~
_f
~?o 0/>1
i
1
CUR/Ny-fll
I
{ 17$2.).
· (?So)
-------
I
'
- - - - "1
I
:
WIP
I
1
PLVPJ/31/'lr? :
(750)
CHOfP.li:./~1
(60C)
750)
(
s
'T
0
I
CHO?lWIG-:1
R
I
L
·{54-0)
I
CUI?!NG-1
A
______ ,
1
t ~--r
(7SO)
~ J-.1/1/c£ rc-sr;
(bOO)
r?
GeL COnT
F"!N!Sh'INC
(7Sc)
.. 1-l_ _ _ _
j
~II
l
(s_"'_.o_)_--.li
/10(.[) STI8i. .
"
f',f!t: I'~R#7i.
CRI7TINC · ~
( 370)
I
(S~::;o)
4L---'===:':====!::==~==·
Figure 5.6
.1
CUR!Nr; 11
I
----- ...---1-
..
r - - ----
I
.• !·
J
[-------
I
I"
,___ _____ - r -
J)P.ILL!N~ I
or~~,
=
j
I
Proposed layout plan
.....
....... ... ""
...
58
SKILL LEVEL
NO. OF OPERATORS
0
2
0
H
1
1
0
H
2
EXPEDITOR
0
1
CHOPPING-II
0
1
H
2
EXPEDITOR
0
1
DRILLING
H
2
PLUMBING
H
3
WATER TEST
0
3
EXPEDITOR
0
1
FINISHING
0
H
1
4
CRATING
H
1
EXPEDITOR
0
..
OPERATION
MOLD PREPARATION
GELCOAT
CHOPPING-I
1
.1.
------28
-------
0 = ORDINAf<Y
H
= HIGH
Table 5.2
Man power requirement for alternative 1
The economy analysis is done to evaluate the alternates
in order £or management to make decision.
The economy analysis is done £rom the project viewpoint
that ie, i t concerns only the potential pro£itability o£
the project without consideration o£ the source o£
investment £unda that would be required.
To do the economy study, a detailed cost and revenue
analysis is done £or all the alternates £or three years
(see appendix Dl. The coat and revenue is then
summarized (see page 60>.
On the basis o£ the cost and revenue
analysis~
cash £low
diagrams are prepared £or all the three alternativea(see
page 61). The alternatives are compared using present
worth CPW> method.
The present worth <PW> method is based on the concept o£
equivalent worth o£ all cash £lows relative to beganing
point in time called the present. That is. all cash
in£lowa and out£lows are discounted to the base point at
the minimum attractive rate o£ return <MARR) a£ 25%.
<see page 62).
N
NP\tJ -=
.:f.t~o
-t
c-t (1-r tJ
YEAR 1
YEAR 2
14850.0
20130.0
20460.0
Cost o£ goods sold <KS)
5742.0
7656.0
7650.0
Gross margin CK$)
9108.0
12474.0
7650.0
Total oper. cost <Ks)
1998.246
2562.576
2612.712
Net pro£ i t be£. tax <KS)
7109.754
9911.424
10191.288
3270.486
4559.225
4687.992
30.4
30.4
30.4
5352.568
5533.695
Gross sale CKS)
·Income tax <KS>
Depreciation <KS)
Net Pro:£ i t <KS)
Table 5.3
869.668
YEAR3
Summary o:f cC~.st and revenue analysis o±
alternative 1
YEAR
INVESTMENT
<KS>
YR 0
ANNUAL
REVENUE
ANNUAL
DISBURSEMENT
<KS>
152-
USEFUL
LIFE
SALVAGE
VALUE
<KS>
0
0
5
YR 1
0
14850
11010.732
YR 2
0
21030
14777.831
YR 3
0
24060
14956.704
---
0
--
~
K$24060
K$21030
K$14850
1
0
1
K$152
K$11010
2
1
K$14777
Table 5.4
End o£ year cash £low diagram o£
alternative l
3
K$14956
PW<1>
=
-KS152
~
KS14850(P/A,25X,1) + KS21030<P/A,25%,2)
+KS20460(P/A,25%,3) - KS11010.732CP/A,25%,1)
-KS14777.831CP/A,25%,2) - KS14956.704<PIA 9 25%,3)
= -152
+ 14850(0.8) • 21030<1.44) • 20460<1.952)
-11010.732(.8) - 14777.831<1.44) - 14956.7<1.95)
PW<l>
= K$26664.973
. -·--
"'
.~
Analysis of alternative two is done on the assumption
that the existing facility should be rearranged by
designing the layout in such-a way that a straight line
flow is maintained throughout the process. A better
material flow and material storage system should be
designed to maximize floor apace utilization by using
vertical height.
Mezzanine floor is proposed to create space so that
vacuum forming process can be accommodated.
The
syste~etic
layout planning <SLP> is used to design
the plant layout which is described in section 4.0
...
1-tJ
.....
lQ
c
'i
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fl)
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.
U!
"
GliL ColJT
It
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rt
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f---
n -nesoLurct y IM~
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-r T t>Jil'A' r t1 ;V T
f-- 0
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u
(j ru/YJ /'(),t'/;1 NT
X
U?J .JJc~ tR 1']/i L E
----
-
----
11
-
~I
11 INA r£.<! resr.
·- -
:::r
CLOSEN£~~
!--
I
CUI(JNG
V /\LUT
lo PLUir7/311J(i
17 ri/V/.5");/N{j.
-·
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--
lt..l WI!' J'ro.QI]ti£
-
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Sltth'JNt;
rr 11'/JH At;e
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-
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-
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le·>II
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--
or MAr~~.
f--
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St?/I?E
4-
Co;vre-,MtENT
-··-
:J> oc!(
---
5
6
~--------------------------···-------------------~·~·~----------------------
a·.
~
·...
'.
Figure 5.8
/
Relatione.h
.
• ip
d.l.. egram
.
~~
.
•
...
C'~
••
~
STATION
SPACE REQUIRED
SO-FT
1
MOLD STORAGE
750
2
MOLD PREPARATION
200
3
GELCOAT
600
4
CURING-I
840
5
CHOPPING-I
600
6
CURING-II
840
7
CHOPPING-II
600
8
CURING-III
9
DRILLING
840
10
PLUMBING
750
11
WATER TEST
600
12
FINISHING
840
13
CRATING
390
14
WIP STORAGE
560
15
SHIPPING
16
RECEIVING
17
PASSAGE
18
REST ROOM
19
VACUUM FORMING
1800
3000
80
2000
15090
Table 5.5
Space requirement
67'
c
·..J.
9
s Pace
relati
.
, on
·~ a hi p diagram
_rl£ETIIV4R001"1 (. Or~/C.
-"
..
Y /1 CUU/>1 rCI?./YJINC,
(2 2 40)
.
I
•·. ?L {Jf1/31NG
I
(.9oo)
: :cHotriNv-t ,
------1
7SO
N/JT£1?/Csr 1
(7.50)
I
c(/f?/N:;·- I ~ !ioo
riNtSHIIIG
,
I
s
T
0
l
vEL.
A
t;.
CJR,Y/1/Yt;
4-SO
~
Wlf'
i(i
(.9oa)
I
-----~--
E.
t>
C~AT
750
I
I
- - - - --r·
·------~~-:.:~---------
Figure 5.10
Pro~oeed
layout plan
·-
<ground £loor>
............
'
CURINC-JJI
(/9ZO)
-- ----CHOfG;ff
{750)
.
. ----
~-
~-
I
I
CUR!l'IG-Il
(9oo)
--
~
~
~ 1---'--- --
t.:l
--
~
0..
MOt.ZJ
.STOR.flt;£
1-
!
!R£/#£7:-..
.[.900)
. -·
..
.
.
u._____.
Eigure 5.11
Proposed layout plan
(mezzan1neJ
..
'C" • • •
SKILL LEVEL
NO. OF OPERATORS
MOLD PREPARATION
0
2
GELCOAT
0
1
H
1
CHOPPING-I
0
H
1
2
EXPEDITOR
0
1
CHOPPING-II
0
H
1
2
EXPEDITOR
0
1
DRILLING
H
3
PLUMBING
H
4
WATER TEST
0
3
EXPEDITOR
0
1
FINISHING
0
H
4
CRATING
H
2
EXPEDITOR
0
1
OPERATION
1
-----·--31
--·------
0
=
ORDINARY
H
=
HIGH
Table 5.6
Man power requirement £or alternative 2
-·
71'
Grose sale <KS)
YEAR 1
YEAR 2
YEAR 3
14850.0
23562.0
26114.0
Cost o£ goode sold <K$)
5742.0
9646.56
10871.52
Gross margin <KS>
9108.0
13915.44
15243.36
Total oper. coat <K$)
2053.818
Net pro:fit be:f. tax
Income tax <KS)
Depreciation
<Ks>
Net pro£ i t <KS)
Table 5.7
(K$>
2961.201
3257.409
7054.182 10954 •.239
11985.951
3244.926
5038.'349
5513.537
79.896
79.896
79.896
388'9.914
5999.185
6552.31
Summary o£ cost and revenue analys1s o£
alternative 2
...
7 L.
YEAR
INVESTMENT
ANNUAL
REVENUE
USEFUL
LIFE
SALVAGE
VALUE
<K$>
<Ks>
(!{$)
ANNUAL
..
DISBURSEMENT
YR 0
399.490
0
0
5
YR l
0
14850
11040.738
YR 2
0
23562
17646.711
YR 3
0
26114
0
---
19642.466
---- .
K$26114
K$23562
t
K$14850
!0
1
2
3
K$399
lr
K$11040
K$17646
...
K$19642
Table 5.8
End o£ year cash £low diagram o£
alternative 2
73'
PW<2>
=-
K$399.490
25%,2)
+
KS14850<PJA,25~,1)
K$11040.738(P/A,25~,1)
-
KS19642.466<PIA,25~,3)
399.490
+
14850(0.8)
26114.88(1.952) -
+
-
KS17646.71<PJA,25~,2)
23562(1.44)
11040.738(0.8) -
17646.71<1.44) - 19642.466(1.952)
PW<2>
=
Ks23800.092
.
...
KS23562<PJA,
KS26114.88(P/A~25%,3)
+
-
=-
+
--
+
Analysis o£ alternative three is done on the assumption
.that a new £acility should be leased having enough space
to achieve the required production and to accommodate
the
apace required £or the vacuum £orming process.
There will be a
loss o£ approximately one week o£
production time in moving the plant to new £acility.
75'
OPERATION
SKILL LEVEL
NO. OF OPERATORS
MOLD PREPARATION
0
2
GELCOAT
0
H
1
1
CHOPPING-I
0
H
2
EXPEDITOR
0
1
CHOPPING-II
0
H
2
EXPEDITOR
0
1
DRILLING
H
3
PLUMBING
H
4
WATER TEST
0
3
EXPEDITOR
0
1
FINISHING
0
H
4
CRATING
H
2
EXPEDITOR
0
1
0
H
= ORDINARY
= HIGH
Table 5.9
1
1
1
-------31
--------
Man power requirement o£ alternative 3
Gross sale <K$)
YEAR 1
YEAR 2
YEAR 3
14850.0
23562.0
26114.0
Cost o£ goods sold <K$)
5742.0
'3646.56
10871.52
Gross margin <K$)
'3108.0
13'315.44
15243.36
Total oper. cost <KS)
1852.314
2997.201
3271. '365
Net pro£it be£. tax <KS>
7255.686 10'318.239
11971.395
Income tax
3337.615
5022.389
5506.841
58.392
58.3'32
58.392
3976.462
5954.241
6522.945
(}($)
Depreciation <KS)
Net pro£it (K$)
Table 5.10
Summary o£ cost and revenue
alternative 3
analys~a
of
-.._,
YEAR
INVESTMENT
ANNUAL
REVENUE
<KS>
<KS)
ANNUAL
DISBURSEMENT
USEFUL
LIFE
SALVAGE
VALUE
CKS>
YR 0
292
0
0
YR 1
0
14850
10931.929
YR 2
0
23650
17666.151
'IR 3
0
26114
0
5
19650.326
~.
K$26114
K$23650
K$14850
1
2
3 .
K$292
K$1.0931. 92
J
K$17666.15
Table 5.11
K$19650
End o£ year cash £low diagram o£
alternative 3
P.BESENT WORTH <PW> OF
PW<2>
=-
K$292.0
25~,2>
+
ALTERNATI_v~
3
KS14850<PIA,25%,l)
+
KS23562<PIA,
KS26114.88(P/A,25~,3)
+
- KS10931.929<PIA,25%,1) - KS17666.15CP/A,25%,2)
- KS19650.326<PIA,25%,3)
=-
292.0
+
14850(0.8)
+
23562(1.44)
+
26114.88(1.952) - 10931.929(0.8) 17666.15(1.44) - 19650.326(1.952)
PW<3>
=
K$24078.01
-------
The evaluation o£ analysis o£ the alternatives is done
on the basis o£ the £allowing criteria:
a. space creation
b. apace utilization
c. man power required
d.
product_ivity
e. vacuum £arming process
£. supervision
g. economy analysis
h. duration o£ implementation
79
a~
SPACE CREATION
There is no additional space created to the existing
£acility.
b. SPACE UTILIZATION
Space utilization is improved by rearranging the plant
layout and by ut-ilizing vertical space £or material
storage.
c. MAN POWER
Direct labor £orce o£ 28 people are needed to operate
t.he plant.
d. PRODUCTIVITY
The productivity would be 50/28
=
1.78 units/menday.
e. VACUUM FORMING PROCESS
The vacuum
£cr~ing
process is not possible.
£. SUPERVISION
There
~ill
be no change in supervision.
g. ECONOMY ANALYSIS
The cost o£ iMplementation £or alternative 1 is estimated
to ba KS152.0. The persent worth <PW> is calculated tc
...
KS26664.'973.
b~
'
h. DURATION OF IMPLEMENTATION
The new plant layout can be implemented over the weekend
so there will be no production loss.
,.
.
6.2
EVAL~ATIO~F
ALTERNATIVE 2
a. SPACE CREATION
The space o£ 5320 sq£t. is created by providing mezzanine
£loor to accommodate vacuum £orming process.
b. SPACE UTILIZATION
Space utilization is improved by rearranging the plant
layout and by utilizing vertical space £or material
storage.
c. MAN POWER
Direct labor £orce o£ 31 people are needed to operate
the plant.
d. PRODUCTIVITY
The productivity would be 50/31
= 1.60
units/manday.
e. VACUUM FORMING PROCESS
Prevision is made £or vacuum £arming process=
£. SUPERVISION
rhere will be no change in supervision.
g. ECONOMY ANALYSIS
The cost o£
i~plementation
£or alternative 1 is estimated
to be KS399.490. The persent worth <PW> is calculated to
be KS23800.092.
83'
h. DURATION OF IMPLEMENTATION
The new plant layout can be implemented over the weekend
so there will be no production loss.
6.3 EVALUATION QF ALTERNATIVE 3
a. SPACE CREATION
Enough space can be created to achieve the required
production by leasing a new facility.
b. SPACE UTILIZATION
Space utilizati6n is improved by properly designing the
plant layout and by utilizing vertical apace for material
storage.
c:. MAN POWER
Direct labor £orce o£ 31 people are needed to operate the
plant.
d. PRODUCTIVITY
The productivity would be 50/31
= 1.6
units/manday.
e. VACUUM FORMING PROCESS
Provision is made £or vacuum £orming
process~
£. SUPERVISION
There will be no change in supervision.
g. ECONOMY ANALYSIS
The cost o£ implementation £or alternative 1 is estimated
to be
$399~490.
S23,800~092.
The preaenr worth is calculated to be
h. DURATION OF IMPLEMENTATION
There will be a loss o£ approximately one week c£
production time in moving the plant to the new £acility •
. ..
,<\LTE.RNATE
CfUTEiUA
11LTERNATE
.-,
....
1
a.SPACE
CREATION
i\LTERN.o.fE
NO ADDITIONAL
C~EATED
LEASE NEw
SPACE
5320 SQFT.
Fi\CILITY
IMPROVED
IMPROVED
H!PROVEU
28
31
31
CREATED
b.SPACE
UTILIZATION
c.MAN POWER
REQUIREl!fENT
1.6 UNITS/
1.78 UNITS/
1'1ANDA Y
MANDAY
NOT POSSIBLE
POSSIBLE
POSSIBLE
£.SUPERVISION
NO CHANGE
NO CHANGE
NO GHl\NGE
g.COST
$152.000
$399,490
$:292.000
h.PRESENT
WOHTH
K$:26,665
K:$23.800
KS24,078
2
2
l wEEK
d.PRODUCTIVITY
e.VACUUM FORMING
1.6 UNITS
PROCESS
UF
IMPLEMENT l\T ION
1. DIJ.RJ-ITION
Table 6.1
Df\ YS
D;\ 'iS
SUMMERY OF COMPARISION OF ALTERNATIVES
The project is concluded by providing three alternative
proposals. The alternatives are analysed and evaluated.
On the basis o£ economy analysis, alternative 1 seeme to
be the most economical alternative as i t has the
greatest present worth value <see table 6.1). However
there is no provision £or vacuum £arming process to make
acrylic tubs.
Alternative 2 and 3 has the provision £or vacuum £orming
process but they are less economical compared to
alternative 1.
The three alternatives are compared using several
criteria (see table 6.1). The decision is le£t to the
management to select the best alternative.
.
87
BIBLIOOGRAPHY
Engineering Economics
By James L. Riggs
Facilities Planning
By James A. Tompkins
John A. White
Engineering Economy
By Williams G. Sullivan
John R. Canada
APPENDIX A
PROCESS CHARTS
l.._
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