GAPEX PROJECT
Instructor: Artak Hambarian
Students: Anahit Sargsyan
Iren Barseghyan
Yelena Vardanyan
Yerevan, 2006
1
Table of contents
1. Abstract ………………………………………………………………
2. Introduction ……………………………………………………………………
3. Project goal definition …………………………………………………..
4. Description of shops
4.1 Glass Shop …………………………………………………………………….
4.2 Glass Packages Shop …………………………………………………………
4.3 Multilayer Glass Shop ……………………………………………………….
4.4 Glass & Mirror Processing Shop ……………………………………………
4.5 Laminate Furniture Shop ………………………………………………………
4.6 Glass Furniture Shop …………………………………………………………..
4.7 Mechanical Shop ………………………………………………………………
4.8 Metal Coating Shop ……………………………………………………………
4.9 Stained Glass Shop ……………………………………………………………
4.10 Window & Doors Shop ………………………………………………………
5. Problems definition / Suggestions
5.1 Human management
5.2 Capacity usage
5.3 Process Layout
5.4 Product manufacturing layout
5.5 Forecasting (seasonal adjustment)
5.5.1 Forecast Control
6. Issues
6.1 Safety
6.2 Environment
7. Conclusion
7. References
2
Abstract
Introduction
3
Gapex Ltd. was founded as a manufacturer’s representative company and also
Armenia's Commodity Exchange member /broker in 1992 by Robert O. Gabrielyan. In 1993
Gapex began its activity as trade-intermediary company, imported mainly foodstuff to
Armenia. In 1996 began to import sheet (architectural) glass. In the same year in Djrvezh a
new industrial Region of Yerevan a 1000m2 industrial complex has been built, which has
been expended, reconstructed and equipped with modern machinery within two years. From
1998 company started to produce and install double glass doors and windows with the
aluminum profiles, glazed facades. In 2002 Gapex Industrial complex was extended up to
2200 m2 and a dye facility has been put into operation.
The company’s main activity is glass selling. 90% of provided glass is sold and remaining
10% go to different departments in order to be processed or to be final product.90% of
processed glass also could be sold after processing and remaining 10% go to other
departments as raw material.
Glass of different types mainly imported from Iran & China is the main sale & raw
material for Company. They buy the glass as much as they can obtain and this approach is
justified by the following:
1. The quantity of glass is decreased in East Region which causes increase in prices and
difficulty in getting glass.
2. They have no problem with realization.
Besides,
Metal tubes of different length & wide, laminate sheets with different colors, aluminum
profiles, silica gel & distance frames, and ‘tiacol’ are raw materials for mechanical shop,
laminate furniture shop, door & window shop, glass package shop, multilayer glass shop
respectively.
Gapex offers different kinds of services such as

Installation of glass, mirrors, facades, windows and doors

Glass processing (grinding, edging, polishing, drilling)

Design of facades, windows and doors

Design with stained glass

Projecting and installing of roof coverings and awnings

Coating of metal constructions
4
The company is primarily managed by director, associated director, accounting department
and engineering department. The company has make- to- order strategy….. All activities
started from engineering department. Customers meet with engineers and explain what they
need (preferred product, the size of product, the shape of product and so on).After this
meeting engineers draw the order, particularly list the necessary raw material which should
be used in order to get ordered product and these two papers touched together send to
corresponding departments. But this is not the end of engineers’ task. Their performance is
necessary in departments (mostly workers need explanation of drawings), during placement
of order, they should get some details from the store and so on.
The company has not any training program as well as competition causing motivation
programs such as rewards, promotion, and empowerment.
As already is mentioned above they expanded the area from 1000sqr.m up to 2200 sqr.m.
However the number of departments also rises and some of them are located in second floor.
This phenomenon causes many difficulties:
 Increase manufacturing cycle time – due to a need to carry fragile glass with a special
care to the second floor. Although a special elevator is used along with a crane, they
are not very convenient and do not provide access to most of the spaces.
 Worse use of human resources – this is due to poor facilities layout, and is similar to
the previous point.
 Difficult to control – this is due to poor information flow and poor feedback.
 Inconvenient material flow – again due to facilities layout.
Besides, the arrangement of machines in the shops is not well organized (they did not reflect
on importance of processes sequence) which also causes similar difficulties.
It is a fact that in coherence with the overall economic growth in Armenia, this company also
experiences growth of 20% annual during the last decade of its markets and thus needs an
investigation for possibilities of capacity increase.
Thus, the goal of this work is to explore the potential for increase of the capacity of the
company through detailed investigation of all parts of its operation and recommend the
ways to achieve the capacity increase.
So the main logic of our work is the following:
5
1. Having appropriate data and one-month study in Gapex give analyses of all
departments, calculate maximum capacity and actual throughput, find bottlenecks if
they exist.
2. Having a data of three years of activities, forecast the amount of glass which is
necessary for coming year (for each season) in order to satisfy customers’ demands
and keep high service level.
3. Arrange all departments (Process layout) taking into consideration how important are
the nearness of any two departments.
4. Arrange machines of glass and mirror department (as an example) according to
sequence of processes which should be done in order to get final product.
Glass Shop
1. Description of the shop
Glass shop (storage) is located on the 1st floor and has area of 300 m2. In this shop work 6
employees.
The main activities of the shop are the following:

Glass/ Mirror cutting – the largest sizes of glass/mirror in this workshop is 2x3m, the
smallest usual size is 0.5x0.5 m, the average size is 1.5x1.5mm which means there is a
need to make at least 3 linear cuts from 2x3 in origin.

Glass/Mirror transportation by crane - glass/mirror is transported within the shop for
car loading and unloading;
6

Glass/Mirror transportation – glass/mirror is transported to the shops related to
glass/mirror processing for the next technological step;

Machine loading – car loading by glass;

Machine unloading - car unloading from glass;
Figure 1.1 below depicts the timing of each process:
min
Processes Timing
15
10
5
0
Placement
by crane to
table
Placement,
table
Cutting
Storage
Facilities of the shop include:

3 transferable tables on which glass is cut into pieces;

1 crane by which glass is transferred within shop;

4 glass-cutting tools (glaziers).
2. Capacity
The throughput for glass shop is 0.33 m2 of possible 1.8 m2.
Figure 1.2 below shows the capacity of each process:
7
sqr m / min
Proce sse s Capacitie s
4.0
3.0
2.0
1.0
0.0
Placement by
crane to table
Placement, table
Cutting
Storage
One can see:
1. Potential bottleneck first can occur for cutting process then for sheet placement by
crane to tables.
2. According to throughput, capacity is used only by 18.5%.
3. Potential for the bottleneck solution-
3. Waste
The waste of glass there is from the cutting process which is 5% of cut glass and is reworked
by 50%.
4Yield
In 2006 average glass entrance in glass shop is 39324 m2 per month where 90% or 35391 m2
is sold in batch and 10% or 3932 m2 after cutting is distributed among glass related shops.
Total yield for this shop is 39225 m2 where yield from selling is 35,391 m2, which is 100% and
yield from cutting and distribution among shops is 3932 m2 which is 98%.
Glass Packages Shop
1. Description of the shop
Glass packages shop is located on the 1st floor and has area of 50 m2. In this shop work 3
employees. For this shop the final product is glass package.
The main activities of the shop are the following:
8

Glass washing & drying – entranced glass pass washing and drying processes in
washing & drying machine;

Distance frame cutting –the largest size of distance frame is 2.5m, the smallest usual
size is 0.5m, the average size is 1.5m which means there is a need to make at least 2 linear
cuts;

Distance frame filling – distance frame is filled by silica gel;

Glass package covering – glass package is covered by tiakol;
Figure 2.1 below depicts the timing of each process:
min
Processes Timing
15
10
5
0
Placement, Washing & Placement,
washer
drying
table
Distance
frame
cutting
Filling by Placement, Cover with
silica gel
second
tiakol
sheet
Storage
Facilities of the shop include:

Washing & drying machine;

2 special tables for glass placement and glass package covering with tiakol.
3. Capacity
The throughput for glass packages shop is 0.10 m2 of possible 1.2 m2.
Figure 2.2 below shows the capacity of each process:
9
Processes Capacities
sqr m / min
7.0
6.0
6.0
5.0
4.0
4.0
3.0
3.0
2.4
3.0
2.0
1.0
2.4
1.2
0.10
0.0
Placement,
washer
Washing &
drying
Placement,
table
Distance frame
cutting
Filling by silica
gel
Placement,
second sheet
Cover with
tiakol
Storage
One can see:
1. Potential bottleneck can occur first for distance frame cutting then the next for filling
by silica gel or covering with tiakol.
2. According to throughput, capacity is used only by 8.5%.
3. Potential for the bottleneck solution-
3. Waste
The waste is 3% of entered glass which is reworked by 75%. Waste can be on each step of
glass package making such as during glass placement on tables or washing machine,
placement of the second sheet of glass, transportation to the storage.
4. Yield
For glass packages shop the average entrance per month of glass is 1180 m2.
Yield for this shop is 1171 m2 of glass packages per month which is 99% of entranced glass.
Multilayer Glass Shop
1. Description of the shop
10
Multilayer Glass Shop is located on the 2nd floor and has area of 25 m2. In this shop work
2 employees. For this shop the final product is multilayer glass: duplex and triplex. The main
activities of the shop are the following:

Glass washing & drying – entranced glass pass washing and drying in washing &
drying machine, the largest size of glass sheet is 2x3m, the smallest size of sheet is
0.5x0.5m.

Covering by sticking tape – placed on the table, glass is covered by sticking tape for
the next technological step;

Fixing by UV machine – duplex and triplex pass fixing in UV fixing machine.
Figure 3.1.1 below depicts the timing of each process for duplex:
min
Processes Timing
50
40
30
20
10
0
Placement
Washing &
Drying
Placement
Covering by
sticking tape
Placement of Transportation Fixing by UV
the second
machine
sheet
Storage
Figure 3.1.2 below depicts the timing of each process for triplex:
Storage
Fixing by
UV
machine
Transport
ation
Placement
of the
third sheet
Covering
by sticking
tape
Placement
of the
second
sheet
Covering
by sticking
tape
Placement
Washing
& Drying
60
40
20
0
Placement
min
Processes Timing
Facilities of the shop include:

1 Washing & drying machine;

1 UV fixing machine;

2 tables for glass placement.
11
2. Capacity
The throughput in multilayer shop for duplex is 0.018 m2 /min of possible 0.15 m2/min
and for triplex is 0.033 m2/min of possible 0.15 m2/min.
Figure 3.2.1 below shows the capacity of each process for duplex.
sqr m / min
Processes Capacities
6.0
7.0
6.5
6.0
5.5
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
6.0
3.0
1.2
0.80
2.4
0.2
0.018
Placement
Washing &
Drying
Placement
Covering by
sticking tape
Placement of Transportation Fixing by UV
the second
machine
sheet
Storage
Figure 3.2.2 below shows the capacity of each process for triplex.
sqr m / min
Processes Capacities
12.0
15.0
10.0
5.0
0.0
6.0
Placement
6.0
3.0
Washing &
Drying
6.0
1.2
0.80
0.2
0.033
Covering by Placement of Covering by Placement of Transportation Fixing by UV
sticking tape the second sticking tape the third sheet
machine
sheet
0.8
Placement
One can see:
1. Potential bottleneck for duplex first can occur for fixing by UV machine than for
covering by sticking tape;
Potential bottleneck for triplex first can occur for fixing by UV machine than for first
and second covering by sticking tape;
2. According to throughput, capacities of duplex and triplex production are used by 12%
and 22% respectively.
3. Potential for the bottleneck solution-
3. Waste
Total waste for duplex and triplex is 3% of entranced glass. Waste can be during all
operations needed for duplex and triplex making.
12
2.4
Storage
4. Yield
For multilayer glass shop the average entrance per month of glass is 590 m2, where
206 m2 for duplex production, 383 m2 for triplex production.
Yield for this shop is 585 m2, where 205 m2 from duplex production, 381 m2 from triplex
production which is 99% for both duplex and triplex production.
Glass & Mirror Processing Shop
1. Description of the shop
Glass & mirror processing shop is located on the 1st floor and has area of 150 m2. In this
shop work 5 employees. For this shop the final products are processed glass and mirror.
The main activities for the shop are the following:

Glass/mirror edge processing and polishing – edge of glass/mirror is processed
according to technological necessity in straight, curve or round glass processing and
polishing machines;

Glass/mirror edge polishing - edge of glass/mirror is processed according to
technological necessity in polishing machine;

Glass/mirror hole making - glass/mirror is processed according to technological
necessity in hole making machine;

Glass/mirror processing - glass/mirror is processed in processing machine;

Glass/mirror finger-print making - glass/mirror is processed according to technological
necessity in finger-print making machine;
Figure 4.1.1 below depicts the timing of each process for straight processing.
13
min
Processes Timing
30
20
100
Placement
1st edge Glass turning 2nd edge Glass turning 3rd edge Glass turning 4th edge
processing &
over processing &
over processing &
over processing &
polishing
polishing
polishing
polishing
Storage
Figure 4.1.2 below depicts the timing of each process for curve processing.
min
Processes Timing
50
40
30
20
10
0
Placement
Edge processing & polishing
Storage
Figure 4.1.3 below depicts the timing of each process for round processing.
Storage
Hole
making
Placement
Edge
polishing
Edge
processing
30
20
10
0
Placement
min
Proce s s e s Timing
Facilities of the shop include:

4 Straight glass straight processing & polishing machines;

2 Curve glass processing & polishing machines;

1 Round glass processing & polishing machine;

1 Thick glass processing machine;

1 Glass polishing machine;

1 Glass hole making machine ;

1 finger-print making machine.
14
2. Capacity
The throughput in glass and mirror shop for straight processed glass is 0.2 m2/min of
possible 1.2 m2/min, for curve processed glass is 0.09 m2/min of possible 0.3 m2/min and
for round processed glass is 0.09 m2/min of possible 0.3 m2/min.
As polishing process depends on the particular order so it is used only by 50% in
straight, curve and round processing and for calculations there is taken coefficient for
polishing equal to 0.5.
Figure 4.2.1 below shows the capacity of each process for straight processing.
sqr m / min
Processes Capacities
12.0
7.0
4.8
2.0
-3.0
4.8
1.2
Placement
4.8
4.8
1.2
0.2
1st edge
processing
& polishing
Glass
turning
over
2nd edge
processing
& polishing
1.2
Glass
turning
over
3rd edge
processing
& polishing
4.8
1.2
Glass
turning
over
4th edge
processing
& polishing
Storage
Figure 4.2.2 below shows the capacity of each process for curve processing.
sqr m / min
Processes Capacities
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
6.0
2.4
0.3
0.09
Placement
0.09
Edge p rocessing &
p olishing
0.09
Storage
Figure 4.2.3 below shows the capacity of each process for round processing.
15
Placement
0.3
0.09
Edge
polishing
0.4
0.6
1.2
Storage
3.0
Hole
making
3.0
Placement
4.0
3.0
2.0
1.0
0.0
Edge
processing
sqr m / min
Proce s s e s Capacitie s
One can see:
1. Potential bottleneck for straight processing can occur for edge 1st, 2nd, 3rd and 4th edge
processing and polishing of processed glass/mirror.
Potential bottleneck for curve processing can occur for edge processing and
polishing process.
Potential bottleneck for round processing first can occur for edge
polishing processes than for edge processing and hole making processes.
2. According to throughput capacities for straight, curve and round processed glass/mirror
are used by 14%, 32%, and 28.5% respectively.
3. Potential for the bottleneck solution.
3. Waste
Total waste from straight, curve and round processed glass is 3% of entranced glass.
Waste can be during all operations needed for straight, curve and round processing.
4. Yield
For glass and mirror processing shop the average entrance per month of glass is 3932 m2,
where1966 m2 for straight processing, 983 m2 for curve processing, 983 m2 for round
processing.
Yield for this shop is 3909 m2, where 1954 m2 from straight processing, 977 m2 from
curve processing, 977 m2 from round processing, which is 99%, 99%, 99% for straight,
curve, round processing respectively.
From total yield of the shop 90% or 3518 m2 of processed glass is sold and 10% or 391 m2 is
for glass furniture shop.
16
Laminate Furniture Shop
1. Description of the shop
Laminate furniture shop is located on the 1st floor and has area of 50 m2. In this shop work
4 employees. The final product is varies laminate furniture of different sizes.
The main activities of this shop are the following:

Laminate sheet/ ready furniture transportation by crane - laminate sheet/ ready furniture
is transported from the 1st to the 2nd floor or vice versa.

Laminate cutting - the largest size of laminate sheet is 3x4m, the smallest usual size is
0.5x0.5m, the average size is 1.5x1.5m, which means there is a need to make at least 3
linear cuts.

Laminate drilling – in laminate parts are made necessary works by drilling machine;

Assembly of laminate furniture – laminate, glass & metallic parts are assembled;

Assembly with handles & knobs – laminate furniture assembly with handles & knobs.
Figure 5.1 below depicts the timing of each process:
min
Processes Timing
40
30
20
10
0
Placement Placement Placement, Laminate
to the
by the
table
cutting
lifting
lifting
crane
crane
Laminate Glass parts
drilling
arrival
Metallic
parts
arrival
Assembly, Assembly
laminate,
with
glass & handles &
metallic
knobs
Facilities of the shop include:

3 laminate cutting machines;

1 drilling machine;

1 lifting crane by which laminate sheet for processing or ready furniture are transported
from the 1st to the 2nd floor or vice versa.

2 tables for laminate cutting.
3. Capacity
17
Storage
The throughput for laminate furniture is 0.02 m2/min of possible 0.2 m2/min.
Figure 5.2 below shows the capacity of each process:
sqr m / min
Processes Capacities
4.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
4.0
2.4
1.2
1.2
1.2
0.6
0.6
0.2
0.3
0.02
Placement Placement Placement, Laminate
to the
by the
table
cutting
lifting
lifting
crane
crane
Laminate
drilling
Glass
parts
arrival
M etallic
parts
arrival
Assembly, Assembly
laminate,
with
glass & handles &
metallic
knobs
parts
One can see:
1. Potential bottleneck first can occur for laminate, glass & metallic parts assembly then
for assembly with handles and knobs, laminate drilling.
2. According to throughput capacities for laminate furniture shop are used by 10%.
3. Potential for the bottleneck solution-
3. Waste
Total waste of laminate furniture production is 3% of entranced laminate. Waste can
be during placement, laminate cutting, transportation and assembly.
4. Yield
For laminate furniture shop the average entrance per month of laminate is 240 m2.
Yield for laminate furniture shop is 234 m2, which is 98% of laminate entrance.
Glass Furniture Shop
1. Description of the shop
Glass furniture shop is located on the 2nd floor and has area of 25 m2. In this shop work 2
employees. The final product of the shop is varies glass furniture of different sizes.
The main activities of this shop are the following:
18
Storage

Assembly of glass & metallic parts – arrived glass and metallic parts assembling ;

Fixing by UV lamp – parts of assembled furniture pass fixing by UV lampe;
Figure 6.1 below depicts the timing of each process:
Proce s s e s Timing
min
40
30
20
10
0
Glass parts
arrival
Metalic
parts
arrival
Assembly
of glass &
metallic
Gluing by
UV lamp
Storage
Facilities of the shop are 2 UV fixing lamps.
2. Capacity
The throughput for glass furniture is 0.03 m2/min of possible 0.2 m2/min.
Figure 6.2 below shows the capacity of each process:
sqr m / min
Proce s s e s Capacitie s
1.5
1.0
0.5
0.0
1.2
0.6
1.2
0.2
0.6
0.03
Glass parts Metalic parts Assembly of
arrival
arrival
glass &
metallic
parts
Gluing by
UV lamp
Storage
One can see:
1. Potential bottleneck first can occur for assembly of glass and metallic parts then for
glass parts arrival, gluing by UV fixing lamp.
2. According to throughput capacities for glass furniture production are used by 17%.
3. Potential for the bottleneck solution-
3. Waste
Total waste of glass furniture production is 1% of entranced glass parts. Waste can be
during glass parts arrival, assembly and storage.
19
4. Yield
For glass furniture shop the average entrance per month of glass is 391 m2
Yield for glass furniture shop is 388 m2, which is 99% of glass entrance.
Mechanical Shop
1. Description of the shop
Mechanical shop is located on the 1st floor and has area of 200 m2. In this shop work 12
employees. The final products of the shop are varies metal details.
The main activities for this shop are the following:

Metal cutting - the largest sizes of metal in this workshop is 4m, the smallest usual size
is 0.1x0.1 m, the average size is 0.75m. As each cut in this shop is a separate project so in
each case there are different size of cuttings;

Lathe works – metallic detail is processed in lathe machine depending on necessity;

Drilling works - metallic detail is processed in drilling machine depending on
necessity;

Polishing works - metallic detail is processed in polishing machine depending on
necessity.
Figure 7.1 below depicts the timing of each process:
Facilities of the shop include:

4 Metal cutting machines;

Lathe machine;

1 Metal drilling machine;

1 Metal polishing machine.
2. Capacity
There are produced per month in average 198 m of metallic parts. The throughput of metallic
parts is 0.02 m2 /min of possible 0.2 m2/min.
Figure 7.2 below shows the capacity of each process:
20
One can see:
1. Potential bottleneck – it can occur during cutting, storage or lathe , drilling, polishing
works.
2. According to throughput capacities of metal processing machines are used by 10%
3. Potential for the bottleneck solution-
3. Waste
Total waste of mechanical processing is 1% of entranced metal. Waste can be during
metal part cutting and lathe, drilling, polishing works.
4. Yield
For mechanical shop the average entrance per month of metal is 200 m .
Yield for mechanical shop is 198 m, which is 99% of metal entrance.
Metal Coating Shop
1. Description of the shop
Metal coating shop is located on the 1st floor and has area of 150 m2. In this shop work 2
employees. The final products of the shop are varies metal details coated by varies colors
according to customer’s order.
The main activities for this shop are the following:

Metallic detail washing -entranced metallic details are washed;

Metallic detail rust cleaning - washed metallic detail cleaning from rust by special
substance;

Metallic detail drying – metallic detail initial drying for the next technological step;

Metallic detail coating - metallic detail is coated by the powder paint in an equipment
for coating (1.7x1.7 m);

Processing in oven - coated detail pass thermal processing (polymerization) in oven at
200Co.
Figure 8.1 below depicts the timing of each process:
Facilities of the shop include:
21

1 Washing equipment (1x4m);

1 Equipment for coating (1.7x1.7m);

1 Oven (2x2m).
2. Capacity
There are coated per month in average240 m2of metallic parts. The throughput of
coating the metallic parts is 0.02 m2 /min of possible 0.1 m2/min.
Figure 8.2 below shows the capacity of each process:
One can see:
2. Potential bottleneck can occur during rust cleaning, drying, coating and processing in
oven.
2. According to throughput capacities of metal coating shop are used by 20.83%.
3. Potential for the bottleneck solution-
3. Waste
The only waste there is paint which is 5% and it is reworked by 100%.
4. Yield
As waste in this shop is reworked by 100% so yield is 100%.
Stained Glass (Vitrage) Shop
1. Description of the shop
Stained glass shop is located on the 2nd floor and has area of 25 m2. In this shop work 4
employees. The final products are stained glasses of various patterns.
The main activities for this shop are the following:

Cutting – the largest sizes of glass in this workshop is 1x1m, the smallest usual size is
0.1x0.1 m, the average size is 0.5x0.5mm. As each stained glass(vitrage) production is a
separate project so in each case there are different size of cuttings;

Edge Gluing – this is a technological step to prepare for the next process;
22

Brazing – very similar to soldering, tin is used;

Cleaning – acetone is used,
Figure below depicts the timing of each process:
Stained
Glass
Storage
Stained
Glass
Cleaning
Stained
Glass
Brazing
Stained
Glass Edge
Gluing
Transportatio
n
Stained
Glass Cutting
140
120
100
80
60
40
20
0
Placement
min
Processes Timing
Facilities of the shop are several glaziers and soldering irons.
2. Capacity
There are produced per month in average 15 m2 of stained glass. The throughput of
stained glass is 0.0013 m2/min of possible 0.01 m2/min.
Figure 9.1 below shows the capacity of each process:
sqr m / min
Processes Capacities
0.20
0.17
0.17
0.15
0.08
0.10
0.05
0.01
0.01
0.0013
0.00
Placement
Stained Glass
Cutting
Transportation
Stained Glass
Edge Gluing
0.01
Stained Glass
Brazing
0.03
Stained Glass
Cleaning
Stained Glass
Storage
One can see:
3. Potential bottleneck can occur during cutting, edge gluing, brazing and then at gluing
processes.
2. According to throughput capacities of stained glass production are used by 13%.
3. Potential for the bottleneck solution-
3. Waste
23
The waste is 50% of entered glass, which is reworked by 50%. Waste occurs during stained
glass cutting which is used lately in the next appropriate orders.
4. Yield
For stained glass (vitrage) shop the average entrance per month of stained glass is 20 m2 .
Yield for stained glass shop is 15 m2, which is 75% of stained glass entrance.
Windows & Doors Shop
1. Description of the shop
Windows & doors shop is located on the 2nd floor and has area of 300 m2. In this shop
work 7 employees. The final products are frames of windows & doors of vary sizes.
The main activities for this shop are the following:

Aluminum profiles cutting- the largest size of aluminum profile is 4m, the smallest
usual size is 0.5 m, the average size is 1.5m, which means there is a need to make at least
3 linear cuts.

Milling- aluminum profiles pass milling processing for the frame assembly;

Window/door frame assembly- aluminum profiles are assembled as window/door
frame;

Pantography – in assembled frame are made holes for installation of door-handles and
screws ;

Covering by rubber- assembled frame is covered by rubber ;

Assembly with door-handles – frame is assembled with door-handles;

Assembly with screws – the frame is assembled with screws.
Facilities of the shop include:

2 Aluminum cutting machines;

1 Aluminum milling machine;

1 Pantograph.
Figure 10.1 below depicts the timing of each process:
24
2. Capacity
There are processed per month in average 716 m of aluminum profile.
The throughput of aluminum profile is 0.06 m /min of possible 0.5 m/min.
Figure 10.2 below shows the capacity of each process:
One can see:
4. Potential bottleneck – it can occur during cutting, edge gluing, brazing and then at
gluing processes.
2. Spare capacity- according to throughput capacities of window and door frame
production are used by 12.4%.
3. Potential for the bottleneck solution-
3. Waste
Total waste of windows and doors production is 5% of entranced aluminum profile.
Waste can be during aluminum profile placement, cutting, milling and pantograph
processing, storage of the final product.
4. Yield
For window and door shop the average entrance per month of aluminum profile is 750 m.
Yield for window and door shop is 716 m which is 96% of entranced aluminum profile.
25
Problems definition / Suggestions
Human management
The company’s most important shortage is the following: there are not clearly defined
responsibilities and liabilities in each level of management. Successful human resource
management depends on the right definition of the roles for each level of management. There
has to be a supervising hierarchy and managers of each level have to know exactly how to
make decision, which decision to make and be responsible.
For example: …
Human resources are critical for effective organizational functioning. Managers should now
realize that effectiveness of their HR function has a substantial impact on the bottom-line
performance of the firm. Poor human resources planning can result in spurts of hiring
followed by layoffs – costly in terms of unemployment compensation payments, training
expenses, and morale. Haphazard compensation systems do not attract, keep, and motivate
good employees, and outmoded recruitment practices can expose the firm to expensive and
embarrassing discrimination lawsuits. Consequently, the chief human resources executive of
most large businesses is a vice president directly accountable to the CEO, and many firms are
developing strategic HR plans and are integrating those plans with other strategic planning
activities.
Process Layout
Kap@ arden nkaragrvats problemneri and with expansion plans.
The basic objective of the layout decision is to ensure a smooth flow of work, material,
people, and information through the system.
26
Effective layouts also:
 Utilize space efficiently
 Utilize labor efficiently
 Eliminate bottlenecks
 Facilitate communication and interaction
 Reduce manufacturing cycle time
First step for layout forming is to assign numbers to each department:
1
Glass cutting shop
2
Glass processing shop
3
Glass packaging shop
4
UV fixing shop
5
Windows & doors
6
Mach. Shop
7
Coating department
8
Laminate furniture
9
Glass furniture
10
Stained Glass
11
Glass Storage
Then we taking into consideration predicted movement of material between existing or
proposed departments. This information is typically provided in the form of a from / to chart,
or load summary chart.
Load Summary Chart
Departments
From \
To
1
2
3
1
-
1
1
2
-
5
6
1
5
6
7
8
9
10
11
1
1
-
3
4
4
1
1
1
-
1
-
1
1
1
27
-
7
-
8
-
9
-
10
1
11
1
-
In Load summary chart the “1”-s mean that corresponding departments are connected, for
example the intersection cell of first row and second column contain 1 because cut glasses
should go to glass processing shop for processing.
Finally trial layouts are placed on a grid that graphically represents the relative distances
between departments in the form of uniform blocks. The grid below will make easy to
understand the explained idea.
1
2
3
4
5
6
7
8
9
10
11
12
Figure 1
The objective is to assign each department to a block on the grid so that nonadjacent loads are
minimized. Saying nonadjacent we understand a distance farther than the next block, either
horizontally, vertically, or diagonally. The trial layouts are scored on the basis of the number
of nonadjacent loads. The process of different layout configurations to reduce the number of
nonadjacent loads continues until an acceptable layout is found. Ideally the optimal layout
would have zero nonadjacent loads.
The case of initial arrangement
28
OUTPUT
Original Layout
1
2
3
4
5
6
7
8
9
10
11
12
Nonadjacent loads = 1+2+1+1+1+1 =7
The case of final arrangement
Revised Layout
3
11
10
5
1
7
2
8
6
4
9
Nonadjacent loads = 0
Product Manufacturing Layout
For each shop like glass & mirror processing shop, which has many machines with
different function, is very important to have product-manufacturing layout whose main
objective is balance the production line. Product layouts arrange activities in a line
according to the sequence of operations for a particular product or service. Line balancing
tries to equalize the amount of work at each workstation. For this purpose, it is necessary to
recognize order of activities and cycle time (the maximum amount of time a product is
allowed to spend at each workstation). In many cases, we can increase the efficiency of
29
production line using U-shape line. Because to compensate for the different work
requirements of assembling different models, it is necessary to have a flexible workforce and
to arrange the line so that workers can assist one another as needed.
The advantages of product-manufacturing layout are the following:

Better use of human recourses

Easier to control

Easier to automate
Direction of part movement within cell
D(10m)
P(10m)
Paths of workers
moving within cell
Material movement
Pr(15m)
S(15m)
Key:
S = Straighted Processing
P = Polishing
D = Drilling
Pr =Processing
Out
(10m)
Worker
1
In
(2m)
Figure 2 is showing the machines arrangement within department like U-shape.
Balancing U-Shaped Lines
Precedence diagram:
I
S
Figure 3
P
D
Pr
O
Cycle time = 15 min
(a) Balanced for a straight line
I
S
P
D
Pr
(b) Balanced for a U -shaped line
O
I
2m
15m 10m
Efficiency =
10 m
62
=
6(15)
15m
10m
S
P
30
62
= 0.6888 = 68.9 %
90
D
O
Pr
As already mentioned above for line balancing process we need precedence diagram and
calculated cycle time required for the line. Figure3 contain this information.
Cycle time = max [2, 15, 10, 10, 15, 10] = 15
Flow time = 2 + 15 + 10 + 10 + 15 + 10 = 62
j
t
Efficiency = E =
i 1
i
nC a
Where
ti = completion time for element i
j = number of work element
n = actual number of workstation
Ca = actual cycle time
Efficiency of straight line and U-shape line is calculated in figure 3. We can say that the
efficiency is higher in b) case. The difference between straight line and U-shape line is the
following: in U-shape we can group first and last element into one workstation in order to
equalize the amount of work at each workstation, and in this manner to reduce the number of
workstations. This means that one worker can manage first and last activity as it is shown in
figure 2.
Forecasting (seasonal adjustment)
There are many fields where accurate forecasts (which are built on trend analysis) are
paying real benefits to those who use them.
Examples of applied forecasting are the following:

Revenue and profit planning

Inventory-level management

Production resource scheduling

Human resources planning
31

Capital planning

Rolling stock allocation

Product sales forecasting

Project planning
Organizations can benefit from accurate forecasts to:

Optimize the business to reduce the costs of operations.

Increase sales opportunities to maximize profits.

Provide accurate information to make better decisions.
There are qualitative (based on judgment, past experiment, or opinion) and quite of
few quantitative methods (moving average, single and double exponential smoothing,
adjusted exponential smoothing, linear regression, seasonal adjustment) to make forecasts.
For Gapex Company the most appropriate forecasting method is seasonal adjustment. It can
be seen from the chart shown below that there is a seasonal pattern – a repetitive increase
and decrease in demand.
80000
70000
60000
50000
40000
30000
20000
10000
0
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Chart Glass sales (m2 ), 2006
There are several methods for reflecting seasonal patterns in a time series forecast. Here is
used a method with seasonal factor. A seasonal factor is the numerical value that is multiplied
by the normal forecast to get a seasonally adjusted forecast. Here in order to find normal
forecast is used linear regression method. Linear regression or in other words causal method
of forecasting is applicable when mathematical relationship exists between demand and some
32
other factor, which cause demand behavior. When time causes demand behavior a least
squares, regression line or linear trend line can be used to forecast demand.
A linear regression model is as follows:
y = a + b*x
Where
a = intercept (at period 0)
b = slope of the line
x = the time period
y = forecast for demand for period x
Having quarterly demand we can find linear trend line and then putting four instead of x we
are getting annual forecast of demand.
Year
Seasons
2004
2005
2006
1
50400.2875
60480.35
72576
2
72049.4792
86459.38
103751
3
109998.764
131998.5
158398.22
4
119475.972
143371.2
172,045.40
Total
351924.503
422309.4
506771
Calculations is done by excel.
A Linear Regression Forecast for Gapex Ltd.
x
Year
1
2
3
6
y
Sales ,m2
351924.5
422309.4
506771.3
1,281,005
a=
b=
y=
272154.9488
77423.39061
272154.95
+
77423.4
x
33
y(4) =
581849
Figure
It is obvious from the figure that normal forecast is equal to y (4) = 581849.
Using this annual forecast of demand for 2007 and having three years quarterly demand we
can find the seasonality adjusted forecasts for 2007. For that purpose, we should first
compute the seasonal factors by dividing total quarterly demand for the three years by total
demand across all three years and multiply each of them by annual forecast of demand of
2007. Again, calculations done by excel.
Computing a Forecast with Seasonal Adjustments
Demand per Quarter
Year
1
2
3
4
Total
2004
50400
72049
109999
119476
351925
2005
60480
86459
131999
143371
422309
2006
72576
103751
158398
172045
506771
Total
183457
262260
400396
434893
1281005
Linear trend line forecast for 2007 =
SF1 =
83328
SF2 =
119122
SF3 =
181865
SF4 =
197534
581849
Fiqure
The figure contains the following information:
Glass demand in winter 2007 will be 83,328 sqr. m, in spring 2007 will be 119,122 sqr. m, in
summer 2007 will be 181,865 sqr. m and in autumn 2007 will be 197,534 sqr.m.
34
Forecast Control
Forecast can be in control or out of control. Forecast can go out of control and start providing
inaccurate forecast for several reasons, including a change in trend, the unanticipated
appearance of a cycle, or an irregular variation such as unseasonable weather, a promotional
campaign, new competition, or a political event that distracts consumers.
One way to control forecast is tracking signal which indicates the forecast is consistently
biased high or low. It is computed by dividing the cumulative error by MAD.
TS =
 (D
t
 Ft )
MAD
=
E
MAD
The movement of the tracking signal is compared to control limits; as long as the tracking
signal is within these limits, the forecast is in control.
MAD- mean absolute deviation is the average, absolute difference between the forecast and
demand. Corresponding formula is the following
MAD =
| D
t
 Ft |
n
Where
t = the period number
Dt = demand in period t
Ft = the forecast for period t
n = the total number of periods
|| = absolute value
The calculations are done by excel
Tracking Signal Values
|Dt - Ft| ∑|Dt - Ft| MAD Tracking
SeasonsDemandForecast Error
E
Dt
Ft
Dt - Ft ∑(Dt - Ft)
Signal
1
2
3
4
72,576
103,751
158,398
172,045
83,328
119,122
181,866
197,533
-10,752
-15,370
-23,467
-25,488
-10,752
-26,122
-49,589
-75,077
10,752
15,370
23,467
25,488
10,752
26,122
49,589
75,077
10,752
13,061
16,530
18,769
-1
-2
-3
-4
Fi
gure
35
Forecast Control
4
3
2
1
0
1 -1
-1
2
-2
3
4
-2
-3
-3
-4
-4
-5
Chart
It is obvious from the chart that tracking signal moves beyond the lower limits of following
period 4. It means that the forecast has some bias.
Safety
Workplace safety refers to the working environment at a company and encompasses
all factors that affect the safety and health of employees. This can include environmental
hazards, unsafe working conditions or processes, drug and alcohol abuse, and workplace
violence. The Occupational Safety and Health Administration (OSHA) monitor workplace
safety at the national level. OSHA has three stated goals that serve as the cornerstones of its
policies and regulations:
1) Improve the safety and health for all workers, as evidenced by fewer hazards,
reduced exposures, and fewer injuries, illnesses, and fatalities.
2) Change workplace culture to increase employer and worker awareness of,
commitment to, and involvement in safety and health.
3) Secure public confidence through excellence in the development and delivery of
OSHA's programs and services.
Small businesses also have to pay attention to safety. Indeed, workplace safety is an
important consideration on a number of levels. Attention to safety issues cannot only help
36
businesses avoid legal penalties, but also improve employee morale, productivity, and
retention. Moreover, effective workplace safety programs often have a tremendous impact on
a company. Workplace safety programs can take many forms and cover many potential areas
of concern. Such disparate measures as provision of personal safety equipment, installation of
equipment controls, creation and dissemination of operational manuals, policies of hazardous
materials handling, adoption of drug and alcohol testing policies, introduction of employee
counseling services, and implementation of safety training programs are all utilized by
companies to minimize their workforce's exposure to workplace injuries.
One method that many firms have had success with is to appoint one person in the
organization as the safety coordinator. The ideal candidate has a background in safety, but if
no one fits that profile, then chooses the candidate who best relates to workers and
management, has strong communication skills, and has an interest in and commitment to
safety. A common title for this person is "safety manager."
For the safety manager to do his or her job, he or she must have direct access to the
top manager in the company. The manager must also have access to every department and
work area, and must be able to question people freely for gathering information. Regular
status reports should be prepared that update management on current safety initiatives and
identifies areas that still need improvement. Ideally, the safety manager's role will remain an
advisory one: responsibility for implementing the manager's suggestions should fall to upper
management and the individuals or teams that singled out by the safety manager.
The best starting point for a new safety manager is often to review company records
of past safety problems. By drawing up a list of areas that are known problems, the manager
can identify the best place to begin implementation of new safety measures.
The safety manager should seek to involve all employees and managers in safety
initiatives. The personnel of each department, not the safety manager, should conduct
inspections. In fact, the manager should let each department handle most of its own safety
problems—if proper training has been given to all employees, the safety manager should only
have to address serious problems that require his or her knowledge and authority.
37
Many companies having safety manager have also reported some unexpected benefits,
including an increased sense of teamwork, better sharing of information and a drop in
absenteeism, discrimination claims, grievances, and sick days.
In Gapex Company, safety manager has many things to do.
The safety problems currently existing in Gapex are the following:

Poor lighting in all departments
It is very important to have more light in all departments because almost all
departments acting with glass and using different machines for different processes.

Absence of helmets, gloves and uniforms
The usage of crane (crane move glass above workers) is very useful for glass
shop but at the same time is very dangerous for workers of that department.

Paint dust in metal coating department

Broken glass’ existence in all over the place
38
References
39
Different
Company’s main activity (major source of profit) is to deal with importing and
realizing glass sheets with variable sizes. Along with years they founded deferent kinds of
departments especially for their needs. Recently these departments (working strategy - make
to order) also bring huge profit offering the certain amount of different kinds of product to
the local consumers. Because of that these departments should be kept under control: clearly
defining frequency of tasks, level of responsibility, quality responsibility and so on in order
to be able not to reject some order.
“Human resource focus” of the company is crucial for this situation.
Final waste of glass is 1125 m2 per months which is sold to local glass producing company
by 5.13$ per kg.
Glass of different types mainly imported from Iran & China is the main sale & raw
material for Company. They buy the glass as much as they can obtain and this approach is
justified by the following:
1. The quantity of glass is decreased in East Region which causes increase in prices and
difficulty in getting glass.
2 They have no problem with realization.
Besides,
Metal tubes of different length & wide, laminate sheets with different colors, aluminum
profiles, silica gel & distance frames, and ‘tiacol’ are raw materials for mechanical shop,
laminate furniture shop, door & window shop, glass package shop, multilayer glass shop
respectively.
40
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