Industrial Services, Los Angeles

USC Senior Design Project December 10, 2003

Rodrigo Del Cid Jr. Cole Grundstedt

Mr. Ted Mayeshiba Ms. Priscila Delgado Ms. Maria Cepeda

Prepared by:

Clarissa Umali

Special thanks to: Dr. F. Stan Settles

1

Executive Summary

Goodwill Industrial Services, Los Angeles, had a problem—their factory floor could not

accommodate multiple product processes, which they believed resulted in the department

hitting a profit plateau. It was also observed that there was a problem with the hanger

sorting process. It had been done in the department longer than any other product;

however, it took up an enormous area for processing and storage of unsorted, in process,

and sorted hanger boxes. Another perceived issue was a lack of standardization in the

method for approaching new products and services.

To tackle the first problem of the hanger process, profitability was calculated with respect

to the amount of space it required—for both the work itself and storage. This number

was compared to another common product that used far less space—specifically Paul

Mitchell Products. Using historical data and space requirements, it was determined that

the hanger sorting process earns $0.20/day per square foot of floor space while Paul

Mitchell earns nearly four times as much at $0.79/day per square foot. After analysis of

these numbers it was concluded that ideally, the hanger sorting process should be

removed because of the inefficiency inherent to the process. Improving the process itself

was deemed futile because the process would still require a large amount of storage space

regardless of the improvements made within the process.

At present, however, the hanger sorting process cannot be removed from the department

because there are mentally and physically handicapped client-employees that cannot do

anything else except sort and pack hangers. Taking this into account, it was

recommended that it be confined to the back area of the factory floor (see Appendix K).

This way the large amount of boxes needed to complete the process will not interfere

with the other processes of the factory. Different function levels of workers were

separated within the hanger process layout so as to balance the production line and

smooth the flow of product within the different function areas.

In regards to all other product processes, there are two different types of products—one

where only one or two tasks must be done to complete the task (e.g. placing a sticker, or

2

dressing a doll), and one where many tasks must be completed to create a finished

product. Layouts were created for individual groups processing each product type

overseen by one or two team leaders; this is how the factory is presently managed (see

Appendix H & I). Both layouts include ideas and suggestions for line balancing and flow

smoothing.

To help the supervisors better assign client-employees to the tasks required for a process,

the “Hourglass Flow Model” was created (see Appendix D). It breaks down the

fundamental elements of all products received and shows how the difficulty and

complexity of each task relates to its location in the overall flow from raw material to

finished good. This model is applicable to every category of product and layout.

If for some reason, the hanger process is eliminated from the Los Angeles facility, a

factory layout that did not contain hangers was included (see Appendix J). This layout

can accommodate up to four different product processes and has a smooth and logical

flow.

In all layout models, safety was assured by maintaining the preexisting dotted yellow-line

in the factory. This line separates the work areas from the forklift traffic lane and assures

an unobstructed path to the emergency exit and fire extinguisher. The location of pallets

is such that the forklift can easily access them without infringing on the work areas. It

was also suggested that all raw material pallets be deposited after regular work hours and

in a quantity that can be worked through in at least one day for each process in the

factory. This insures that there is little forklift traffic during the busiest hours, which

reduces risk of accidents.

Given the proposed layouts, a list of the materials and equipment that were needed on the

factory floor was made. This list does not account for any equipment already existing. It

should be mentioned that Goodwill Industries, Los Angeles does not currently have the

man power or customer base to employ our layouts fully. They should be considered an

attainable goal that, when reached, should result in increased profits, improved utilization

of the factory floor, and an all-around safer work environment for everyone.

3

Table of Contents

Introduction................................................................................................... Page 4

Employees...................................................................................................... Page 4

Hourglass Flow Model................................................................................. Page 6

Problem Statement........................................................................................ Page 8

Hanger Profitability...................................................................................... Page 9

Disadvantages of hangers................................................................. Page 9

Profitability comparison................................................................... Page 10

Advantages of hangers...................................................................... Page 11

Heat Sealing Profitability............................................................................. Page 12

Layout Descriptions and Analyses

Legend............................................................................................... Page 12

Original Layout................................................................................. Page 15

Product Categorization..................................................................... Page 16

Single Task Product.............................................................. Page 17

Smoothing Production.............................................. Page 18

Multi-task Product................................................................ Page 19

Smoothing Production.............................................. Page 20

Proposed Layout (no hangers)......................................................... Page 21

Proposed Layout (with hangers)...................................................... Page 23

Smoothing Production.......................................................... Page 26

Conclusions

Equipment requirements.................................................................. Page 27

Final recommendations.................................................................... Page 27

Appendices..................................................................................................... Page 29

4

Introduction

Goodwill Industries of Southern California funds programs that train unemployed and

underemployed men and women so that many will be able to transition into a mainstream

work environment with the proper skills and work habits. As shown in its organizational

values, Goodwill is dedicated to helping people help themselves. Goodwill encourages

the workers, called client-employees, to strive to achieve their highest potential, since

their needs are the reason why the organization exists. The Los Angeles facility was the

focus of our project, being the largest of the three facilities in the greater Los Angeles

area, and providing a greater opportunity of improvement. More specifically, we worked

with the Industrial Services division which forms contracts with outside companies to do

the simple tasks for them such as sorting and packaging the goods. Some of these

companies include Paul Mitchell hair products and Auntie-Itch cream products.

Employees

The client-employees who work on the tasks daily include people with physical or mental

disabilities and other vocational disadvantages. There are three levels of client-

employees—low, medium, and high-functioning. They are placed into one of these

categories based on their abilities. An outside work environment is not an option for low-

functioning client-employees, because their disabilities or barriers are too severe to allow

for a successful transition outside of Goodwill. Therefore, Goodwill provides them a

long-term work opportunity that builds in them a sense of accomplishment and pride in

their work.

The low-functioning client-employees can only perform single or simple tasks. Some

examples of the capabilities and responsibilities of low-functioning client-employees

5

include executing a “yes” or “no” decision, wrapping or unwrapping a product, sorting,

packing a single item into a box, and performing checks (such as whether a cap is

tightened or not). The abilities of medium-functioning client-employees are very similar

to the low-functioning client-employees; however, they can perform two tasks

simultaneously. For example, a medium-functioning client-employee can sort and pack,

whereas a low-functioning client-employee can only sort or pack.

For high-functioning client-employees, the work experience that Goodwill provides them

must be “meaningful,” so that the individual can be trained for successful transition into

outside employment such as mail house or assembly environments. Some of the work

skills and work habits that are taught to the client-employees are attendance, hygiene,

inter-personal interactions, communication skills, work place conduct, and following

directions. High-functioning client-employees can perform more complex tasks and

make multiple decisions, some of which include lifting, heat-sealing, labeling, and

packing multiple items. Lifting is usually performed by high-functioning client-

employees because of its physical nature. Client-employees with physical and more

severe mental disabilities would not be able to perform such a task. Heat-sealing is one

of the more dangerous tasks and requires that the client-employee understand the safety

considerations of the task. Labeling is left to the high-functioning client-employees

simply because it requires accuracy of label placement, especially for the smaller

packages and boxes.

6

Material handler is the name given to a high functioning worker; however, he or she is

not classified as a client-employee for several reasons. They are much more able-bodied

to carry out physical tasks such as unloading packages, staging, shrink-wrapping

completed pallets, palletizing and de-palletizing, and distributing materials to the client-

employees. Material handlers are also given an hourly wage, rather than being paid by a

prorated piece-rate based on minimum wage, which is how the client-employees are paid.

Material handlers are classified as high-functioning, not necessarily because of the

complexity of the tasks, but because of the number of concurrent tasks that they are

assigned to do. The material handlers are responsible for many more duties than the

client-employees, especially the tasks at the beginning and at the end of the production

line.

The Hourglass Flow Model

Picture 1

The Hourglass flow model is a representation of

the flow of each product from the beginning

the end of the production process. As seen in

to

Picture 1, the complex tasks are those involving

the raw materials and finished goods. In these

areas, high-functioning workers are needed in

order to accomplish these tasks. After the

material handlers have prepared the raw

materials to be worked upon, the lower-

7

functioning workers can perform the simpler tasks. Then the product returns to the

material handlers who then complete the tasks at the end of the production process. T

Hourglass flow of the work break down sheet can be observed in Chart 1.

Chart 1

Goodwill Industries O

he

5 Shrinkwrap unit box 7.0000 428.571 6 8.0000 375.000

7 Apply address label 3.0000 1000.000Prevailing Wage

f So Cal Break Down SheetCOMPANY: Paul Mitchell DESCRIPTION: Build PM Shines/DirITEM: PM shines/Direct Mail

Assembler=$8.47

Pack unit box with 1 D9Y, 1 D6RV, 1 Processing liquid, check for cap tightened

Pack unit box inside corrugated mailer along with letter and mini paper swatch

Material Handler = $8.76

ect Mail

STEP NO. TASK

SEC. PER/UNIT

STD./UNIT PER/HR

H 1 Unload material 0.5000 6000.000H 2 Staging material 0.5000 6000.000L/M 3 Build unit box 5.0000 600.000L/M 4 12.0000 250.000

H H

H

This segment is taken from the Paul Mitchell work break-down sheet. The work break-

down sheets allow the production supervisor and other staff members to see the tasks

flow

e

performed by the client-employees broken down step by step. Also included is the

amount of time it takes to perform each task, the pay rate for performing each task, and

hourly wages. By examining the tasks more closely, one can see that the Hourglass

model is in fact being followed. As noted in Chart 1, the tasks in the beginning and at th

end of the production process are being performed by the high-functioning material

handlers, while the work of the lower and medium-functioning client-employees are

clustered in the center of the process.

8

Chart 2

wn SheetCOMPANY: Sewing Collection DESCRIPTION: Sort And Pack HaITEM: HangersSTEP NO. TASK

SEC. PER/UNIT

STD./UNIT PER/HR

L 1 Sort Hangers 3.0000 1000.000L 2 Pack Hangers 3.0000 1000.000M 3 Sort And Pack Hangers 4.5000 666.667

Prevailing WageAssembler=$8.47

Material Handler = $8.76

Goodwill Industries Of So Cal Break Do

ngers

Another example supporting the Hourglass flow model, found in Chart 2 above, is for the

hanger process, which Goodwill has been doing for a long time. The material handlers’

jobs are not listed in the tasks, but are being executed. In the beginning of the process

material handlers bring the unsorted boxes of hangers to the warehouse and distribute

them to the client-employees. The low and medium-functioning client-employees then

sort out the different types of hangers, and pack them into separate boxes. Finally, the

material handlers once again perform their duties on the completed hanger boxes.

Having different levels of client-employees exacerbates the difficulty of creating an

efficient flow in the main warehouse.

Problem Statement

The main problem with Goodwill Industrial Services is the inefficient flow in the main

of the inefficient flow, the main warehouse is at capacity for

rial

warehouse. Because

processing multiple products simultaneously. This, in turn, limits the amount of

customers Goodwill Industrial Services can have. With profits leveling off, it was

important to address this problem to be able to expand and grow Goodwill Indust

9

Services’ customer base. With an expanded customer base, revenues can increase a

more jobs can be created.

nd

Hangers

The hanger process is quite simple, yet very time and space consuming. There are about

t types of hangers. The hangers are then sorted using a hanger sorting

fferent

through

out wh r it is, and place it in its corresponding box. This includes having

it is

24 differen

apparatus which facilitates the sorting operation, yet can only be done by a high

functioning client-employee. Currently the unsorted boxes contain about 3 or 4 di

types of hangers which even a low function client-employee can individually sort

and separate. A worker has to pick up each individual hanger and decipher the type, and

place it in the box it belongs to. The hangers are then neatly packaged into individual

boxes, which usually hold at least 100 hangers of one specific type.

Disadvantages

The whole hanger process is very time consuming. Each client-employee has to figure

ich type of hange

to pick it out of a box with many hangers, which are usually tangled in one way or

another, and looking at it carefully because many of the hangers look very similar. If the

client-employee is just sorting, then they put it in another box without worrying that

neatly placed. If the client-employee is sorting and packing, then they have to carefully

place it neatly in the packaging box. Whether the client-employee is only packing, or

sorting and packing, they will be surrounded by at least 4 large boxes, which leads to the

next point.

10

The hanger process is very space consuming, because each client-employee needs at least

still

he hanger process uses too much space on the factory floor and the main building. This

Total Area Used = 9915 sq. ft.

aul Mitchell Product Total Area Used = 420 sq. ft.

he results indicate that a Paul Mitchell product is much more profitable considering the

4 boxes around them to be able to place the hangers in the correct box. This takes up a

lot of useful floor space because many times they might have 6 or 7 boxes around them,

which are not put to use. Also, because of the high turnaround time, the unfinished and

finished boxes take up a lot of space as was discovered during our many visits to

Goodwill Industrial Services. The turnaround time has improved, but hangers are

very much space consuming.

T

includes space for the process itself and for raw and finished materials. Hangers account

for nearly 60% of the revenue, but use over 75% of the whole facility space. One needs

to look at the product profitability in dollars per square foot between hangers and a Paul

Mitchell.

Hangers

Total Profit/Month = $60,000

Profit/sq.ft./day = $0.20

P

Total Profit/Month = $10,000

Profit/sq.ft./day = $0.79

T

amount of floor space it uses. Having mostly Paul Mitchell products would increase

revenues by about 4 times according to the profit per square foot.

11

It is very difficult to provide a flow or an efficient time production with hangers. It is

y

The hanger process provides a productive starting point for new client-employees.

he hanger process also provides jobs to client-employees of different skill levels. A

can

g

angers are always available to be sorted and packaged providing year round jobs. The

hanger process provides jobs during downtime. This is important because when certain

difficult because every worker is working at their pace. Also, the hanger process is ver

time consuming meaning some workers only finish about one box a day. Although the

client-employees are being paid according to their number of completed hanger boxes,

they are taking up a certain amount of space on the factory floor which can otherwise be

used for more profitable products. Furthermore, they are slowing the hanger process,

which can lead to starvation or a high turnaround time.

Advantages

Goodwill Industrial Services many times serves solely as a transition period for the

client-employees. They begin to work and learn at Goodwill Industrial Services, and

when the client-employees reach an adequate skill level, they are transferred to higher

skill demanding employment.

T

low-skilled client-employee can be employed to either sort or package hangers. They

also do both, although most start off by just doing one of the tasks. Here, many low-

skilled client-employees can be used which would otherwise not have any value-addin

tasks. Furthermore, the low-skilled client-employees gain familiarity with the hangers,

increasing their productivity over time.

H

12

products and lines are finished, workers can be placed to work at the hanger process. The

hanger process is always available to be worked on.

The hangers should be eliminated to provide more space for other more profitable

products to come through Goodwill Industrial Servic

es. If the hangers are to be kept,

they are to be kept solely for the advantages listed.

Heat Sealing Process

The heat-sealing machine needs to be removed from the factory floor. The heat-sealing

10% of the floor space, yet generate less than 5% of the revenue.

to

r

machine takes up over

The heat-sealing machine is also used less than 10% of the total time. Furthermore the

heat-sealing machine obstructs the flow on the factory floor. Eliminating it from the

factory floor would greatly improve the floor design and flow. The only reasons for

keeping the heat-sealing machine would be if it brings in more revenue, or if it is vital

receive more customers.

Layouts: Before and Afte

he following is a list of symbols used in our layout drawings:

workers

at are responsible for each client-employee in their group. They make

T

This figure represents a supervisor/team leader. They are wage

th

sure everyone is on task and performing their functions correctly. They

are also responsible for keeping track of the amount of work each client-e

doing so they can be paid piecewise.

mployee is

13

These three figures represent the low (red), medium (yellow),

nd high (green) functioning client-employees. Their job

because of

ey are high functioning workers. They have the mental ability to

lim

ously discussed.

useful to understand where everything comes from and goes to and how it gets there.

t

t pallets of goods. They a distinguished into

o groups—raw material and finished goods. Raw material is the light

y

It is read

re-palletized. It

a

responsibilities and capabilities were previously discussed.

This figure represents the material handlers. They are green

th

handler several different kinds of tasks and have no physical disability to

functions in handling material. Their job responsibilities were previ

This blue arrow represents product flow on the layout drawings. This

it their

is

This helps to produce a product flow that is both organized and efficien

bottlenecks and starvation.

These two symbols represen

with less

tw

colored pallet. It has arrived from a customer as is and has not been

worked through. All material must be de-palletized, sorted, and

distributed by the material handlers before it can be worked-through b

the client-employees. Finished goods is the dark colored pallet.

back to customers. The product has already been worked on, boxed, and

y to be shipped

14

is important to note the location of each type of pallet. These symbols work with the blue

arrow (above) to demonstrate a logical and organized flow.

This symbol represents a pre-existing painted yellow line on the

her

s

his symbol represents a table in the layout. They are labeled by

his symbol represents a roller conveyor. They are in 10-foot

t

his symbol represents a handcart. The factory already has a

sed to

factory floor. It is used to mark the boundary of the work areas w

cross. This keeps all factory workers safe. This line also marks emergency exit paths

and fire extinguisher access and as such all path integrities must be maintained.

Permanent work areas cannot be place outside or on top of these pre-existing area

marked by the dotted yellow line.

e the forklift cannot

T

their lengths which are the dimensions of the pre-existing factory

tables (requirements are discussed later)

T

sections. The factory already has a number of these conveyors

(requirements are discussed later). The conveyor helps to collec

items in one area and reduces the effort and time required to move

another area.

it a short distance to

T

number of these however they are not in use. The handcart is u

transport items a short distance.

15

Original Layout

actory layout as it exists now. It is set up

ed correcting.

being used to store many

nother area of wasted space is the lower-right corner where the

left

this

he entire left side of the warehouse is devoted to hangers. It is clear to see that this area

This is the original f

to do two products—one of them being hangers and the other

being a product requiring a production line.

There are a few items with this layout that ne

First of all there is wasted space—more specifically in the

upper-right corner of the warehouse. This area is currently

items including broken conveyors, unused handcarts and machines, and a number of

tables—some broken.

A

production line is. There is a lot of space on the right of this

production line and since there are pallets being stored on the

taking up that space, there is only room for one production line in

area.

T

is quite cluttered. The nature of task of hanger sorting

requires a large amount of space and a large number of

boxes. This yields a product flow that is both difficult to

understand and visualize. It is this reason that there are no

blue arrows to mark the product flow. The location of the

16

raw material and finished goods pallets in all areas of the warehouse appears to be

arbitrary with no concrete product flow in mind.

The heating tunnel takes up a large portion of

r

roduct Categorization

the upper-left corner. This leaves little room fo

anything else given the constraints of the dotted-

yellow line.

P

dwill receives are broken down into three categories. The first

isjointed

.

t-

it

rials are

consideration from the third product type—the “multi-task” product.

All the products that Goo

is hanger sorting. It was given its own category because it requires much more

workspace than any another product, it has the slowest throughput, and it has a d

product flow. Because of these reasons, it requires its own separate consideration in the

factory layouts. The second type of product Goodwill receives is a “single-task” product

This is a product that, after initial de-palletizing and staging, requires only one or two

tasks before it can be re-boxed and re-palletized. An example of an actual Goodwill

single-task product is the “Scoobie-Doo doll”. After the dolls are staged for the clien

employees, it has to be removed from its bag, dressed and attached to a costume. Then

is placed back in the bag and sent off to be re-boxed. What makes this category

important is that all the tasks required (save the material handlers’ tasks) can be

completed by one person or up to three people in a small sub-group and few mate

required (if any) to complete these intermediate steps. This gives it separate

17

The “multi-task” product has a large number of tasks to be completed after in

and before re-palletizing. An example of an actual Goodwill multi-tas

itial staging

k product is

-line

es their

perations. Each group may have a different category of product to work through so we

“Auntie-itch cream”. After initial staging the individual cream tubes must have a sticker

adhered to them, then be placed in their individual boxes, then have another sticker

placed on the front and back of the box, and finally be placed inside larger boxes which

are then taped and palletized. This product type requires a more traditional assembly

setup and each station requires intermediate materials to complete their tasks in contrast

to the single-task product that requires only what is in the initial palletized box.

The factory layouts are broken down into groups, as this is how Goodwill manag

o

created a layout of each group based on product type.

Single-task Product.

This is a modification of a setup that was in the original layout. Instead of having two

oller conveyor adjacent to one of the rows, a conveyor is placed in

tter

.

rows of tables with a r

the aisle of the two rows leaving adequate room on both sides of the conveyor for a

person to walk back and forth. This solves a few problems. First it allows team leaders

to be closer to the client-

employees and provide be

supervision and guidance

Second it puts the team

leader in control of all goods

18

so as to better keep track of a client-employee’s production. The proposed setup does

allow a product to continue after the client-employee has worked on it until the team

leader marks down their progress and places the item on the conveyor in the center.

From there it simply continues down the conveyor to the material handlers for boxing a

re-palletizing. Another change proposed is the implementation of the use of hand

the material handlers. Note: This proposal is not unique to the single-task produc

line; rather it is an overall factory-wide improvement suggestion. The use of handcarts

allows for more products to be distributed at one time by a material handler improvin

their efficiency. It also improves the overall ergonomic safety of the material handlers

requiring them to lift much less weight at one time. The material handlers with han

will take material from the raw material pallet and distribute the material to the memb

of both lines for work. Since each station does all the tasks required of the product (see

definition of single-task product) excluding staging and re-palletizing, the product goes

directly from each station to the conveyor (see blue product flow arrows). It was

previously said that all tasks are to be completed by one individual or a small sub-group

of no more than three. These sub-groups are displayed by a dotted square around them.

The members of this sub-group break up the tasks and each complete an entire produc

together. This is why there is only one arrow leaving each of these subgroups.

Smoothing Production Flow

It is important to insure that production flow is smooth from to

not

nd

carts by

tion

g

dcarts

ers

t

p to bottom. The material

t workers. The only place where this is a problem is handlers are assumed to be the fastes

in staging; however they can easily control how much product is distributed to each

client-employee and can pace accordingly. Within the production line of client-

19

employees, each individual or sub-group is seen as the only intermediate step betwee

material handlers’ tasks. Since the client-employees will logically be working sl

than the material handlers, the only place where production flow needs to be analyzed

and controlled is within the sub-groups because they have more than one person affecti

production flow. Our recommendation is that within a particular sub-group, each clien

employee is of the same function level and works at the same pace. This can be seen on

our drawing that each member of a sub-group is of the same function level. By doing

this, it assures that there will be no bottlenecks or starvation within the sub-group and the

product will spend an equal amount of time with each person in the sub-group before

being placed on the conveyor. It should be mentioned that it could occur where the tasks

performed within a sub-group are not the same level of difficultly. In this situation, a

higher functioning worker should do the more complex task and a lower functioning

worker should do the simpler task. Another option would be to have two lower

functioning workers doing a simpler task to feed the higher functioning worker so as n

to starve his supply. In a single-task product, these aforementioned situations wi

occur often so a best guess judgment should be applied using these suggestions and the

layout as a base model.

n the

ower

ng

t-

ot

ll not

Multi-task Product

The layout appears the

sk

at

ed.

same as the single-ta

product layout except th

the conveyor was remov

20

Since there are multiple tasks to complete, a more traditional assembly-line model was

applied. This means that the tables and work surfaces act as the conveyor and the client-

employees will advance the product down the line. The area between the two table lines

allows enough room for two people to comfortably pass one another. It is assumed that

each team leader would be responsible for one table line. They would keep trac

intermediate progress by counting production for the day and totaling unfinished pr

at each station so each client-employee can get paid for their own contribution piecewis

The staging and re-palletizing areas are the same as the single-task product layout. In th

sense the blue product flow arrows are the same except in the client-employees’ areas

which logically advance down the table. The material handlers with handcarts, however

perform a slightly different function. Raw material is deposited at the first station, ei

by the staging crew or the handcart pusher, but at all the other stations, the handcart

pusher delivers intermediate supplies as needed. These supplies are not the main prod

rather they are items that are needed to complete each respective step. The handcart

pusher insures that each station has enough intermediate supplies to complete their tas

Smoothing Production Flow

k of

oduct

e.

is

,

ther

uct

ks.

gray. This is because the layout itself requires no

and

y

Each client-employee in this layout is

logical method of client-employee function distribution. This distribution is dictated by

the product being worked through and the complexity of tasks therein. The client-

employee function distribution must be applied in a way that smoothes production

balances the line. As mentioned earlier, this reduces bottlenecks and starvation at each

station. Before client-employees can be assigned to their respective tasks, the complexit

of each step and type of client-employee that can effectively perform the task must be

21

understood. After this, client-employees should be matched up with the most complex

tasks they can effectively perform. Doing this will normalize the throughput at each

station by having a faster worker perform a harder task and a slower worker perform a

easier task. After this is done, more tweaking may still be necessary. In a situation

where a station is being starved because the previous station is not working fast enou

it is recommended that an extra client-employee is put on the slower station to double the

input into the station that was once starved. In a situation were product is being

bottlenecked at a station because the client-employee is working too slowly for th

previous station, placing an extra worker on this station will speed up its throughput

Before additional workers are placed at a station in an attempt to solve flow problems,

production line and the effect of additional staff on the whole production must be

considered. As mentioned in the single-product layout, the material handlers are th

fastest workers and need not be considered in the smoothing of production flow; they

pace their material distribution as dictated by the client-employee production rate.

n

gh,

e

.

the

e

can

roposed Factory Layout (no hangers)P

yout is that the heating tunnel was removed

all

r-left

placed a line of raw material pallets in the center of the factory. All four production lines

The first thing to notice in the proposed la

from the upper-left corner of the factory. The entire upper-right corner was cleared of

unnecessary equipment, and the handcarts stored there are now being used by the

material handlers at each group. The factory floor has four main sections, the uppe

and right and the lower-right and left corners. There is therefore the potential of four

different product lines being processed simultaneously in each of the four areas. We

22

can

he raw material is delivered by the forklift. This will be done after client-employee

product

y

the

30

easily draw from these pallets to supply their lines (see blue product flow arrows).

T

work hours to assure everyone’s safety. The amount of product delivered to this area

shall be at least one day worth of work per production line. This assures that no

deliveries must be made during regular work hours. Material handlers will move the

pallets (using already available pallet jacks) to their respective staging areas. The

flow through the production lines is dependent on the type of product (single or multi-

task). The production lines shown in the factory layout are just an example of what can

be used, however it should be noted that the single-task production line requires slightl

more space due to the additional width of the conveyor. This adds 2 feet to the

production line width which makes it difficult to put two production lines in an area other

than the lower-left corner since this corner is the widest. The areas at the top of

factory floor can be used either for single or multi-task production. They are oriented

horizontally; this allows for the added width of the single-task production line. The

upper-right corner is a smaller area and restricts the length of any production line from

feet to 22 feet. The

production lines at the

top have material

flowing from out to in.

Raw material is staged

23

on the outside of the factory floor and fed through the production lines to the finished

goods in the center. After a finished goods pallet is created, the material handler (using

the pallet jack) moves the pallet to the yellow-dotted line on the edge of his respecti

work area. From here, the forklift can easily move material out of the factory and prepa

it for shipping. The forklift is not restricted from picking up finished goods pallets

outside of regular client-employee work hours because the location of the finished goods

pallets does not require the forklift to enter the work areas marked by the dotted yellow

line. The production lines in the

lower-left and right of the factory floor

move material from top to bottom—

from the staging area for raw material

at the top of the production line,

through the production line in a

manner governed by the product

classification (single or multi-task)

finished goods pallet is created, the material handler (again, using the pallet jack) moves

the pallet to the yellow-dotted line in the center, on the edge of his respective work area.

The forklift can, again, easily pick up the finished goods for shipping without entering the

work areas and maintaining the safety of the factory floor.

ve

re

, to th

e finished goods pallets at the bottom. After a

Proposed Factory Layout (with hangers)

The hanger sorting process is placed in the back or upper-right and left corners of the

factory floor. This was done because of the large amount of space and boxes and raw

24

material required of the process—it was placed out of the way of other processes as not to

impede on their flow rates due to

excess boxes. The bottom portion

of the factory is identical to the

previous layout with the exception

that the hanger process took up too much room to have a row of raw materials on both

sides of the floor. This row is now confined to the right side, and this group of raw

materials supplies both non-hanger production lines in the lower portion of the factory.

Raw material for hangers is now stored in the back of the warehouse in the center. The

process is broken up into two areas—one for medium functioning client-employees

(yellow in the upper-left) and one for low functioning client-employees (red in the upper-

right). Each area has its own supply of raw materials which is deposited by the forklift in

the same manner as the previous layout—at least a day’s worth of raw material for each

area.

In the low-functioning area material is deposited to the row of client-employees on the

top by the material handlers. The client-employees take hangers from the unsorted (light-

colored) box and sort them into

their respective boxes below them

(slightly-dark colored). From here

the material handlers take the

sorted hangers from the top row of

client-employees and deposit them

into the bottom row of low-functioning client-employees as needed. These client-

25

employees pack the hangers neatly in boxes (very-dark colored). From here the material

handlers take the packed hangers to the finished goods area in the medium-functioning

area upper-left corner area (follow the blue arrow). Here a material handler weighs,

counts, seals, and re-palletizes the hangers onto pallets at the each of the work area where

the forklift can access them easily. The low-functioning area could not have its own

finished goods area because of space constraints, however, the output of the low-

functioning area is very low so the amount of product that flows across the floor to the

finished goods area is extremely low and will not require much labor.

In the medium-functioning area material is deposited to each of the three rows of

medium-functioning client-employees

by the material handlers (using h

of course) from the raw material pa

Unlike the low-functioning client

employees, there is no intermediate step

between sorting and packing. Medium

function client-employees take the

unsorted hangers from the box where

material handlers originally deposited them (light-colored box) and then sorts and packs

them in the boxes below them (very-dark colored box). From there, the material handlers

take the packed and sorted boxes to the finished goods area where a material handler

again weights, counts, seals, and re-palletizes in same manner as previously mentio

All hangers will end at this one area. Hanger production is a slow process so it is

andcarts

llets.

-

-

ned.

26

unlikely that the material handlers will have too much work to do in these areas. They

could possibly “moonlight” in other production areas.

Smoothing Production Flow

To effectively smooth production flow in the hanger processing area, both the material

handlers and the team leaders need to keep an eye on how fast client-employees are

working. Since client-employees are not working from a table rather from a box, it is

unlikely that starvation will occur. If one low functioning client-employee is starved by

having no hangers to pack, that client-employee can be re-assigned to sorting until

enough sorted hangers are produced to justify a packing client-employee. The ratio

between the sorting and packing client-employees in the low-functioning area (upper-

right) can therefore be tweaked to smooth production. In the medium-functioning area,

the client-employees do both sorting and packing therefore it is infeasible for there to

bottlenecks and starvation within an individuals work area. Smooth production is simply

produced in this area by insuring each medium-functioning client-employee has enough

hangers and that all packed and sorted hanger boxes (very-dark colored) are taken to the

finished goods area in a timely manner. It is therefore ultimately up to the material

handlers and the team leaders to assure smooth production in the hanger processing area.

27

Conclusions

Total equipment needed on hand for increased utilization:

• 130 adjustable stools

- They need to be adjustable to fit each person’s height to provide the correct working posture. They also need to be rotary, for the client-employees working on the hangers can easily turn to place hangers in specific boxes.

• 24 low tables for hanger sorting

- The tables need to be low so the client-employees have an easier time reaching into the boxes to pull out the hangers. It will decrease muscle strains and decrease sorting and packaging times.

• 32 regular standard height tables

- These tables are needed for other product processes.

• 2 wheelchair height tables

- These need to be available for the client-employees who are wheelchair bound.

• 6 carts

- With these carts material handlers can easily transport raw and finished materials from the client-employees to the unfinished and finished crates. This will lessen the physical work material handlers have to do decreasing the chances for injury.

To increase flow through a production line, the hourglass theory was proposed. This

stated that the high functioning client-employees are to be placed at the beginning and

end of processes, while the medium and low functioning client-employees dually

working in the middle of the line, to balance the product flow. To increase overall

factory utilization different layouts with production lines have been proposed. These

layouts augment productivity through the specific placement of raw materials, client-

employees, supervisors, and finished goods. In these layouts it is recommended that the

heat-sealing machine and the hanger process be removed for financial reasons.

28

Removing them would greatly increase the amount of available space for our proposed

layouts as well as increase revenue. If the hangers are to be kept, then a layout is

proposed where the hanger process would not hinder the rest of the factory floor flow.

The use of the layouts will also increase worker and space utilization. With this, profits

will increase while creating a safer working environment which will ultimately lead to

better products.

29

Appendix A

30

Appendix B

31

Appendix C

32

Appendix D

33

Appendix E

34

Appendix F

35

Appendix G

36

Appendix H

37

Appendix I

38

Appendix J

39

Appendix K