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    Factory Physics:

    The Key to Green Industries

    College of Engineering and Architecture - College Days 2012 EXHIBIT: Greening Industries

    Student ChapterPhilippine Institute of Industrial Engineers (PIIE)

    Holy Angel University

    Angeles City, Pampanga, Philippines

    In association with:

    Process & Industrial Engineering Software

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    Factory PhysicsGreen IndustriesPresentation Overview

    Introduction

    Inventory Analysis

    Factory Layout Analysis

    Work Methods Analysis

    Energy Observations

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    Introduction

    Inventory Analysis

    Factory Layout Analysis

    Work Methods Analysis

    Energy Observations

    Factory PhysicsGreen IndustriesPresentation Overview

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    Industrial Engineers (IEs) - We analyze and improve work

    systems, which are simply collections of resources (human,

    equipment, material, and energy) that combine to make

    products or services.

    By showing how a small furniture factory in Lubao can more

    efficiently use their human, equipment, material, and energyresources, we demonstrate how IEs make factories more

    green.

    Factory Physics: IntroductionIndustrial Engineering & Greening Industries

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    Mallaris Nursery Furniture manufacturer of baby furniture and

    other household furniture.

    Major product is a Baby Crib (kuna).

    The wood used for the product comes from old pallets from nearby

    industrial parks (low cost, green raw material).

    Factory Physics: IntroductionClient Company Overview

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    Mallaris Nursery Furniture manufacturer of baby furniture andother household furniture.

    Major product is a Baby Crib (kuna).

    The wood used for the product comes from old pallets from nearbyindustrial parks (low cost, green raw material).

    Located in Lubao, Pampanga. Hometown of 2 former PHLPresidents (Diosado Macapagal and Gloria Macapagal-Arroyo).

    15 employees. All perform manufacturing operations, and serve asmaterial handlers.

    Factory Physics: IntroductionClient Company Overview

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    Factory Physics: IntroductionIndustrial Engineering & Greening Industry

    The major product of importance to Mallari

    is the Baby Crib, and is therefore the

    primary focus of this project.

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    Factory PhysicsGreen IndustriesPresentation Overview

    Introduction

    Inventory Analysis

    Factory Layout Analysis

    Work Methods Analysis

    Energy Observations

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    Large piles of Work In Process (WIP)

    inventory shown throughout the factory.

    Factory Physics: Inventory AnalysisFactory Overloaded with WIP Inventory

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    Factory Physics: Inventory AnalysisFactory Space Analysis

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    Factory Physics: Inventory AnalysisFactory Space Analysis

    AISLES

    INVENTORY - RAW MATERIALS INVENTORY - WORK IN PROCESS

    MISCELLANEOUS SUPPORTPRODUCTION EQUIPMENT TRASH

    INVENTORY - FINISHED GOODS SCRAP

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    Work In Process

    Raw Materials

    Scrap

    Trash

    Finished Goods

    Production Equipment

    Factory Physics: Inventory AnalysisFactory Space Analysis

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    Work In

    Process

    Raw

    Materials

    Scrap Trash Finished

    Goods

    Production

    Equipment

    0

    50,000

    100,000

    150,000

    200,000

    250,000

    300,000

    350,000

    400,000

    Factory Physics: Inventory AnalysisFactory Space Analysis

    SQM

    64%

    13%

    7% 7% 6%3%

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    Littles Law

    CTSystem

    = WIPSystem

    / THSystem

    Factory Physics: Inventory AnalysisLaws of Factory Physics

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    Littles Law

    CTSystem

    = WIPSystem

    / THSystem

    Factory Physics: Inventory AnalysisLaws of Factory Physics

    The higher the level of Work-In Process

    inventory, the longer it takes products

    to go through the system.

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    Littles Law

    CTSystem

    = WIPSystem

    / THSystem

    Factory Physics: Inventory AnalysisLaws of Factory Physics

    Therefore, to utilize factory resources

    more efficiently (and increase output),

    we need to decrease the

    amount of WIP inventory in the factory.

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    Currently, each work station produces parts for 30 finished

    products. This is called a Lot, or Batch.

    When a Lot arrives at a station, the worker processes the 1st

    part of the Lot, while the 29 other parts Wait to Process.

    Factory Physics: Inventory AnalysisIncreased WIP = Increased Waiting Times

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    Currently, each work station produces parts for 30 finished

    products. This is called a Lot, or Batch.

    When a Lot arrives at a station, the worker processes the 1st

    part of the Lot, while the 29 other parts Wait to Process.

    When the 1stpart completes processing, it experiences Wait

    to Batch time, as it cannot move to the next station until all

    30 parts are complete.

    Large Lot / Batch sizes increase the waiting times in the

    factory, and only serve to increase WIP, and the time for

    products to move through the factory (CT).

    Factory Physics: Inventory AnalysisIncreased WIP = Increased Waiting Times

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    Reduce Lot Sizes from 30 cribs to 15 cribs.

    Reduce space available for WIP inventory, and better organizeits locations (addressed in factory layout analysis).

    Remove trash permanently (12% of total space).

    Remove scrap from production area frequently.

    Factory Physics: Inventory AnalysisRecommendations

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    Factory PhysicsGreen IndustriesPresentation Overview

    Introduction

    Inventory Analysis

    Factory Layout Analysis

    Work Methods Analysis

    Energy Observations

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    Factory Physics: Factory LayoutCurrent Layout

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    Factory Physics: Factory LayoutCurrent LayoutMaterial Flow

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    Factory Physics: Factory LayoutCurrent LayoutMaterial Flow (Parts)

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    Factory Physics: Factory LayoutLayout IssuesLengthy Flow for Raw Materials

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    Factory Physics: Factory LayoutLayout IssuesLengthy, Backtracking Flow

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    Factory Physics: Factory LayoutCurrent LayoutActual Path Flow

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    Factory Physics: Factory LayoutFuture Layout

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    Factory Physics: Factory LayoutFuture LayoutMaterial Flow

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    Factory Physics: Factory LayoutFuture LayoutMaterial Flow

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    Future Layout Metrics

    Distance Traveled = 88 km

    Material Handling Time = 45 hrs

    Material Handling Cost = P1,968

    Material Handling Labor = 0.94 people

    Factory Physics: Factory LayoutFuture LayoutMetrics (per week)

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    Factory Physics: Factory LayoutFuture LayoutWeekly Resource Savings

    Resource Efficiency Improvement s

    Distance Traveled = 104 km ( 54% )

    Material Handling Time = 24 hrs ( 35%)

    Material Handling Cost = P1,062 ( 35%)

    Material Handling Labor = 0.59 people ( 39%)

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    Factory PhysicsGreen IndustriesPresentation Overview

    Introduction

    Inventory Analysis

    Factory Layout Analysis

    Work Methods Analysis

    Energy Observations

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    Factory Physics: Work MethodsBottleneck Explanation

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    Factory Physics: Work MethodsBottleneck Explanation

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    WIP level

    inside Bottle

    TH rate at each

    point in the Bottle

    CT to pass

    through Bottle

    Factory Physics: Work MethodsBottleneck Explanation

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    TH System= TH Bottleneck Station11

    Factory Physics: Work MethodsLaws of Factory Physics

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    TH System= TH Bottleneck Station

    CT System= WIP System/ TH System

    1

    2

    1

    Factory Physics: Work MethodsLaws of Factory Physics

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    TH System= TH Bottleneck Station

    CT System= WIP System/ TH Bottleneck Station

    1

    2

    1

    Factory Physics: Work MethodsLaws of Factory Physics

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    TH System= TH Bottleneck Station

    CT System= WIP System/ TH Bottleneck Station

    Find Bottleneck Station & Increase Its Output (TH)

    TH Bottleneck Station CT System

    1

    2

    3

    1

    Factory Physics: Work MethodsLaws of Factory Physics

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    TH System= TH Bottleneck Station

    CT System= WIP System/ TH Bottleneck Station

    Find Bottleneck Station & Increase Its Output (TH)

    TH Bottleneck Station CT System

    1

    2

    3

    1

    Factory Physics: Work MethodsLaws of Factory Physics

    Factory Management identified the DrillingOperation as the Bottleneck of the process.

    The expected time (standard time) for this

    operation was unknown.

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    TH System= TH Bottleneck Station

    CT System= WIP System/ TH Bottleneck Station

    Find Bottleneck Station & Increase Its Output (TH)

    TH Bottleneck Station CT System

    1

    2

    3

    1

    Factory Physics: Work MethodsLaws of Factory Physics

    We could purchase another Drilling Station

    to increase output (add more resources).

    Better yet, we could eliminate wasted time

    (Non-Value Added) at the Drilling Station.

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    Factory Physics: Work MethodsVideo Time StudyDrilling Operation

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    Factory Physics: Work MethodsGantt ChartDrilling Operation

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    Factory Physics: Work MethodsTime Study Results

    Standard Time for Drilling Operation = 5.21 min.

    Setup time accounts for 47% of the operation.

    Need to reduce setup time.

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    Factory Physics: Work MethodsDistribution of Time - Drilling Operation

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    Factory Physics: Work MethodsNon-Value Added Time - Drilling Operation

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    Factory Physics: Work MethodsDistribution of Non-Value Added Time

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    Factory Physics: Work MethodsDistribution of Non-Value Added Time

    Wasted Time mainly occurs during machine

    setup (adjusting settings), and rotating the

    parts during the operation.

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    Plastic bins for nails, arranged within reaching distance of the

    operator.

    Fixtures such as quick clamps for the table and work surface.

    Re-design the Drilling machine to eliminate manual part rotation.

    Factory Physics: Work MethodsRecommendations to Reduce NVA Time

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    Plastic bins for nails, arranged within reaching distance of theoperator.

    Fixtures such as quick clamps for the table and work surface.

    Re-design the Drilling machine to eliminate manual part rotation.

    These recommendations would save 0.8 minutes per product at the

    Bottleneck station.

    This reduces Drilling time by 17%, and allows more products to flowthrough the factory, with the same amount of resources.

    Factory Physics: Work MethodsRecommendations to Reduce NVA Time

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    Factory PhysicsGreen IndustriesPresentation Overview

    Introduction

    Inventory Analysis

    Factory Layout Analysis

    Work Methods Analysis

    Energy Observations

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    The factory experiences frequent brownouts, and the

    company has no alternative energy source.

    During brownouts, equipment cannot run, including thecritical bottleneck operation.

    Factory Physics: Energy ObservationCurrent Issue

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    The factory experiences frequent brownouts, and the

    company has no alternative energy source.

    During brownouts, equipment cannot run, including thecritical bottleneck operation.

    This significantly affects the companys efficient use of its

    resources.

    Most would suggest purchasing a back-up generator, which is

    not a cost effective, clean, green source of energy.

    Factory Physics: Energy ObservationCurrent Issue

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    Factory Physics: Energy ObservationRecommendation

    The Philippines experiences a great amount of solar energy. Mallari should considerpurchasing solar panels to capture and utilize this free, green source of energy.

    A secondary benefit is to have an alternative power supply during brownouts, in order tokeep operations running.

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    Factory PhysicsGreen IndustriesPresentation Overview

    Introduction

    Inventory Analysis

    Factory Layout Analysis

    Work Methods Analysis

    Energy Observations