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    CHAPTER 2

    LITERATURE REVIEW

    2.1 INTRODUCTION

    This chapter presents an overview of the various methods of 

    assembly processes, Lean manufacturing and multi criteria decision making

    models attempted by researchers.

    2.2 LITERATURE REVIEW ON LEAN MANUFACTURING,

    KITTING ASSEMBLY AND MCDM MODELS

    Tamaki and Nof (1991) described the design method of robotic

    kitting system as an alternative parts entry process which contributes to

    reduction of over all assembly costs. Utilizing robots rather than manual work 

    to perform the parts kitting operation, in certain cases, improve productivity,

    flexibility and part flow control. The specific objective is i) to propose a

    design method for kitting ii) to develop design factors and criteria for

    planning robotic kitting system, iii) to describe the plan for robotic bin-

    picking system and iv) to explore robot hardware components suitable for

    automated kitting systems and v) to analyse the several configurations of 

    robotic kitting systems using simulation tools.

    Bozer and McGinnis (1992) defined, a kit as “a specific collection

    of components and/or sub assemblies together and combine with other kits to

    support one or more assembly operations for a given product”. They

    developed a descriptive model which can be used to quantify the trade off in

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    material handling, space requirement and Work In Process between kitting

    and line stocking for an assembly of stationary fitness cycle.

      Jacobs and Meerkov (1993) analysed due time performance. This

    performance index is analyzed for both lean and mass manufacturing

    environments. In particular, it is shown that, to achieve a high due-time

    performance in a lean environment, the production system should be

    scheduled for a sufficiently small fraction of its average production rate. In

    mass production, due-time performance, arbitrarily close to one, can be

    achieved for any scheduling practice.

    Barker (1994) described a time based value adding framework to

    direct development and continuous improvement. This author assumes that

    many UK manufacturing organizations are inherently wasteful, with complex

    production systems divorced from the core task of adding value. This waste

    can be regarded as untapped potential which exists throughout the total value

    adding chain. The total conversion chain from raw materials purchase to final

    goods assembly is examined using this approach. Examples taken from the

    electrical switch gear industry, operating within a post MRP II environment

    using kanban type pull system triggers to control materials input, illustrate the

    use and effectiveness of the approach.

    Fynes and Ennis (1994) focused on the issue quality in both a

    manufacturing and logistics context, the latter labeled by Drucker as

    “managements last frontier”. A case study of the journey to lean production at

    Microsoft Ireland’s manufacturing plant and the implications of such changes

    for the sales and service subsidiaries in Europe is included. Changes in

    channel structure relationships, the management of the logistics from a

    peripheral location and trust, are key elements of the case.

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    Acaccia et al (1995) concluded that the attainment of a lean

    engineering organization is the critical requirement for ensuring a return on

    investment in intelligent manufacturing. Achieving this is based on measuring

    the effects of flexibility and on the capability of exploiting the resources’

    adaptability by combined control and management of the product and

    production processes. This paper introduced the opportunities offered by the

    availability of a prototypical implementation that joins a simple pilot plant to

    a computer simulator.

    Brynzer and Johansson (1995) focused on design of kitting system

    in terms of location of the order picking activity, work organization, picking

    method, information systems and equipment. Key design aspects and

    performances from selected case studies are discussed like traveling time and

    distance, picking information, Design of picking package, picking accuracy

    and manual picking techniques. In the kitting system, results show that

    picking efficiency and accuracy can be improved by making better use of the

    product structure when dividing picking information.

    Grajo (1995) developed LayOPT is an innovative facilities layout

    analysis and optimization software package which can be used by layout

    planners and engineers in the optimal solution of single and multiple floor

    facility layout problems. LayOPT is ideal for the re-design of the overall

    layout for an existing facility or the development of a block layout for a new

    building. It can be applied to manufacturing, warehouse, office, and various

    service facility layout problems. They described the LayOPT methodology

    and presents an overview of the software’s features and capabilities.

    Angelo et al (1996) focused on a typical job shop plant

    configurations, for the semi automatic manufacturing of parts produced in

    limited unitary quantities. The treatment consists of the quantitative

    evaluation of the technological performance of a Flexible Manufacturing

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    System (FMS) with particular reference to the printed circuit board assembly

    sector. The use of multi criteria decision methods as a tool, for adequate

    decision-making in FMS design is presented aiming at reorganizing the

    existing plant.

    Braiden and Morrison (1996) described some efforts that have been

    taken in Oshawa's Plant (Canada) for reducing the bottlenecks due to

    automated monorail system to increase the current uptime to over 90%,

    creating a greater production capacity.

    De Toni and Tonchia (1996) proved that the pursuit of excellence

    and the organizational change required by lean production leads to a

    management - by- process organization, and that management by process

    influences the Performance Measurement System (PMS). Also they did a

    detailed analysis of the organizational change and its effects on performance

    measurement.

    Gunther et al (1996) analyzed the component kitting problem in

    semi automated printed circuit board assembly. The main objective is to

    minimize total operator time. In this work Gunther et al described the

    component kitting problem faced by an electronic component manufacture. A

    heuristic solution procedure is developed, which is computationally very

    efficient even for large scale problems encountered in industries.

    Computational results demonstrate that the heuristic tends to produce

    solutions that are close to the optimum.

    Mabry and Morrison (1996) suggested that in order to accomplish

    the development of a production system, global best practices had to be

    benchmarked and implemented in a pilot manufacturing area. Delphi Chassis

    Systems established a Manufacturing Systems Core Team to develop a

    production system for automotive component applications. The production

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    system will provide the foundation required for manufacturing to exceed any

    customer requirement. The production system concepts of Project

    Management, Process Flow, Layout, Material Flow, Ergonomics, Workplace

    Organization, People-focused Practices, and Supporting Software

    Development were all integrated as a whole system in sourcing project. The

    new production system was 25% more productive than the original build cell

    production method. The proposed modifications will allow a 50 % production

    improvement to the current monorail system.

    Rao et al (1997) examined and evaluated strategic and operational

    level success factors, benefits and costs to develop strategies of implementing

    Concurrent Engineering (CE). First, several success factors to implement CE

    are identified based on literature review. Then, the AHP model is formulated

    and used to assess the success factors, benefits and costs in order to develop

    strategies to implement CE in Hong Kong electronics products manufacturing

    companies. Also, the same model is used to determine the benefits/cost ratios

    and to decide whether or not to implement CE in the Hong Kong electronics

    industry.

    Ahlstrom (1998) examined whether any sequence of manufacturing

    improvement is initiated to improve manufacturing performance. This finding

    grouped the principles of lean production into four different categories,

    depending on whether the management devoted effort and resources to the

    principles. They concluded that there are sequences in which lean production

    principles are implemented, but in parallel, management also needs to devote

    efforts and resources.

    Bowen and Youngdahl (1998) discussed a case that manufacturing

    logic has and, even should still, transfer to service operations. The argument

    against the production line approach to service rests on an increasingly

    out dated view of manufacturing operations. In many cases services are “re-

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    industrializing” by applying new model based largely on progressive

    manufacturing technologies – in both operations and human resource

    management. Service business need not abandon production line thinking, but

    they must shift their production line paradigm as has occurred in much of 

    manufacturing, itself.

    Erridge and Murray (1998) examined the feasibility of the

    introduction of lean supply within local government through three

    experiments relating to live contracts, which demonstrate that lean supply is

    compatible with local government purchasing as a value added strategy. The

    paper concluded that most aspects of lean supply are applicable although

    some adaptation of the model required to remove characteristics specific to

    manufacturing and provide a better cultural fit with the legal and political

    context of local government.

    Panizzolo (1998) dealt with the challenges posed by lean

    production principles for operation management. A multiple case study

    approach was used to explore how the lean production model has been

    adopted by 27 excellent firms operating in international markets and to

    recognize the areas characterized by major problems and difficulties. A

    research model able to accurately define and operationalize the lean

    production concept was developed in order to carry out this empirical study.

    Results from this study would suggest that for a full implementation of lean

    production principles, the most critical factor appears to be the management

    of external relationship rather than international operations.

    Sawhney et al (1998) have developed training modules for small to

    medium sized manufactures which typically have more difficult time

    allocating resource to training. The methodology for developing the lean

    manufacturing modules and the result of presenting these modules in pilot

    sessions and in training sessions are presented.

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    Spaccarotella (1998) analyzed the process changes required to

    move from a mass manufacturing operation towards a lean manufacturing

    operation while meeting the quantifiable metrics. The following areas of the

    process were targeted for design improvement: i) Reduce work in process,

    ii) Identify system bottlenecks, and iii) Increase product flexibility. The

    simulation modeling and analysis conducted in this study were valuable in

    determining the effects of applying lean manufacturing concepts. Converting

    processes from mass to lean systems can reduce excessive work in process

    and increase process flexibility. Simulation analysis determine the optimal

    system characteristics needed to produce the desired output and at a

    significant cost saving.

    Adams et al (1999) summarized the principles of lean, and

    illustrated its application in a training simulation of a setup and changeover

    reduction. Finally, success stories show how the University of Alabama in

    Huntsville is helping many small and medium size manufacturers for

    improving production rapidly using lean techniques.

    Azim (1999) has undertaken a simulation study to help the design

    of a material delivery system to support lean manufacturing in an automotive

    body shop. Since, this was a Greenfield facility, simulation analysis was

    employed in the very early design phase of the system to determine and

    quantify the limiting parameters of the proposed lean material delivery

    system. The updated information from the simulation model helped the

    designers to evaluate alternate concepts and to understand some parameters

    such as, traffic congestion, man power, and storage area requirement.

    Ben Naylor et al (1999) combined lean thinking and agile

    manufacturing with total supply chain strategy particularly considering

    market knowledge and positioning of the decoupling point as agile

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    manufacturing is best suited to satisfying a fluctuating demand and lean

    manufacturing requires a level schedule.

    Black and Antani (1999) summarized that the next generation

    factories, will be designed with manufacturing and assembly cells linked

    together with a pull system for material and information control. In this linked

    manufacturing system, down stream processes will dictate up stream

    production rates. The linked manufacturing system strategies simplifies the

    manufacturing system integrates the critical control functions before applying

    technology avoid risks and makes automation easier to implement.

    Katayama and Bennett (1999) dealt with three concepts that

    concerns to manufacturing management like agile manufacturing, adaptable

    production and lean production. These are described and compared within the

    context of the modern competitive situation in Japan. A survey of Japanese

    firms is described where the concepts are explored through a number of 

    questions concerned with strategy, action programmes and performance

    measures. The result suggested that companies are trying to realize their cost

    adaptability through agility enhancement activities.

    Meara and Centers (1999) described middle management

    participants is crucial for the success of lean manufacturing. Typically in

    changing a manufacturing operation, efforts are focused on high level

    management in regards to why the change is necessary and what benefits can

    be expected. They also suggested that the middle manager has the

    responsibility of supporting the management’s decision while accepting the

    risk of failure and possible reprisal, and yet, is not regarded as a key player.

    Vaidyanathan et al (1999) discussed on the problem of supplying

    JIT assembly work stations from a central source depot such as a warehouse

    or work center. The specific problem addressed is how to determine the

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    vehicle routes for a fleet of vehicles so that two primary goals are met:

    i) minimum inventory at the work stations, and ii) minimum vehicle idle time.

    The problem is modeled as a vehicle routing problem with a nonlinear

    capacity constraint. A heuristic solution procedure is outlined and a relaxed

    formulation is given to provide a lower bound on the number of vehicles

    required.

    Caridi and Sianesi (2000) dealt with production smoothing, one of 

    the keys of success of Just in Time and lean Production. By levelling the load

    of the work station, production smoothing allows a regular material flow,

    shorter manufacturing lead times and lower work in process. In this paper, a

    Multi Agent system is presented, which solves this problem according to the

    theory of autonomous agents. The experimental results show that this

    innovative approach has a good performance when compared with the

    traditional ones.

      Orr (2000) concluded that in an ignition coil manufacturing plant

    in Brazil, the savings realized by utilizing lean manufacturing techniques are

    brought out by comparing the initial concept to the final process. Metrics

    utilized include: Investment, floor space and labor. The metric of equipment

    “value” (speed/cost) is also introduced as a method of measuring the impact

    of lean manufacturing.

    Woo Lee and Hie Kim (2000) presented a methodology using

    Analytic Network Process and zero-one goal programming for information

    System projects selection problems that have multiple criteria and

    interdependence property.

    Bicheno et al (2001) described a case situation to pinpoint wasteful

    activities in the supply chain, and in later stage to develop solutions. They

    found production scheduling approaches to be a main cause of distortion in

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    the dynamics of the supply chain and the initial studies led to proposal for

    scheduling improvements both within and between companies. The proposal

    includes kanban, changeover reduction and TPM for changing the scheduling

    frequency in accordance to the specific demand pattern. So, they developed a

    new and holistic scheduling algorithm. The new algorithm is based on three

    principles: 1) Runner and repeater are produced more often and in small

    batches, but stranger will be less frequent in large batches, 2) The scheduling

    pattern is set to be as repetitive and stable as possible, 3) The total amount of 

    time for changeover is set as a fixed properties of the total time available.

    Nagi and Cheng (2001) discussed the potential of applying

    knowledge based systems (KBS) in supporting performance management of 

    advanced manufacturing methodologies (AMT) and suggests a viable

    research direction. It describes a research frame work using factor analysis to

    identify factors relevant to measuring performance of AMT. The frame work 

    can be used as a first step in developing a KBS for performance measurement

    of AMT project. Also they believed that well developed KBS is a powerful

    and versatile tool for conducting and controlling performance measurement of 

    AMT projects in a manufacturing organization.

    Nellore et al (2001) highlighted the interconnection between global

    purchasing and lean supply. A strategic project “live or die” was chosen

    within a major global auto Original Equipment Manufacturer (OEM) located

    in North America. The analysis was done by screening data into some of the

    conditions identified in lean supply which were observed to be the most

    relevant in the case company. It was observed that lean supply is affected

    negatively by global purchasing based on price and thus, price-based global

    purchasing should not be used for sourcing complex components that requires

    early supplier involvement and intensive engineering collaboration between

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    OEMs and suppliers. Instead, it could be proactively used in the sourcing of 

    less complex modules and simple components.

    Potts (2001) integrated the impregnation process into a lean

    manufacturing environment which addresses batch sizes, process times,

    equipment foot print, plant layout and mobility, environmental waste and

    automated component handling. The case studies show that a new generation

    of equipment and materials were developed. These advancements were the

    result of a systematic approach combining process, equipment and chemicals

    to enable a traditional batch process to be integrated onto the lean

    manufacturing shop floor.

    Amasaka (2002) proposed New JIT, a new management technology

    principle for manufacturing in the 21st  century. New JIT contains hardware

    and software systems as next generation technical principles for transforming

    management technology into management strategy. The hardware system

    consists of the Toyota Marketing System (TMS), Toyota Development

    System (TDS) and Toyota Production System (TPS). To improve work 

    process, quality of all divisions concerned with development, production and

    sales, the author has proposed Toyota Total Quality Management utilizing

    Science (TQM-S) as software system.

    Chrisrmansson et al (2002) discussed a material kitting case study

    using alternative methods like picker – to – material principle and material –

    to – picker approach. The material kitting was video recorded and pickers

    physical exposure were assessed. The material kitting shows improved

    productivity as compared with other kitting methods.

    Ertugrul Karsak et al (2002) employed a combined ANP and Zero-

    One Goal Programming (ZOGP) approach to incorporate the customer needs

    and the Product Technical Requirements (PTR) systematically into the

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    product design phase in Quality Function Deployment (QFD). The

    dependencies inherent in the QFD process are taken into account using the

    ANP approach. Considering resource limitations and multi-objective nature of 

    the problem, a ZOGP model is constructed to determine the set of PTRs that

    will be taken into account in the product design phase.

    Joshi et al (2002) discussed the problems at kitting stage of a

    Printed Circuit Board (PCB) assembly process and the use of simulation to

    improve the process. It provides detailed information of the kitting process

    followed at the manufacturing facility at which this research was conducted. It

    was observed from historical data, that 10% of the kits at assembly setup had

    discrepancies. The main objective of this research was to reduce these kitting

    discrepancies by at least 50%. The sub-objectives were to implement a

    continuous flow system, improve operational performance, ensure the on-time

    delivery of kits, and implement a closed loop feedback system for better

    kitting accuracy.

    Sullivan et al (2002) illustrated a road map of how the Value

    Stream Mapping can be an important tool to define, analyze, and quantify

    waste such as excess WIP and defects. Visualizing sources of waste in the

    current state as well as the potential benefits that can be realized in

    implementing a future state for a product value stream can help the manager

    to conduct equipment replacement analysis easily and objectively as they

    consider and pursue the adoption of lean manufacturing.

    Williams (2002) considered discrete event process simulation and

    concluded it as a more proactive and important strategy for achieving

    manufacturing efficiency. Also, concurrently lean manufacturing has become

    a nearly essential corporate strategy to compete successfully in an

    increasingly austere and global business environment.

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    Crute et al (2003) discussed the key drivers for Lean in aerospace

    and examine the assumption that cross-sector transfer may be difficult. A

    Lean implementation case comparison examines how difficulties that arise

    may have more to do with individual plant context and management than with

    sector specific factors.

    Jagtap et al (2003) chosen a product family among the large

    product varieties. An aggregate current state map is developed for product

    family highlighting the various wastes, bottlenecks in the product value

    stream. A future state is designed using process kaizen and flow kaizen from

    aggregate current state maps. An aggregate future state map serves as blue

    print for lean implementation. It results into seven waste reduction and lead

    time improvement for a given product family.

    Medbo (2003) reported on materials kit functionality, usefulness of 

    the materials kit in respect of operator’s handling of materials and cognition

    during assembly work. His analysis comprises video recordings of nine plants

    of Volvo automobiles. By using signal component methodology, his results

    showed that the assembly work proved to be almost identical when there were

    no technical differences between the layouts.

    Prince and Kay (2003) presented the background to why some

    manufacturing organizations require a combination of agile and lean

    characteristics in their manufacturing organizations. They also described the

    development of the Virtual Group (VG) concept, which is the application of 

    virtual cells to functional layouts. VGs enable the appropriate application of 

    lean and agile concepts to different stages of production within a factory. The

    identification of VGs is achieved through the use of a methodology called

    Enhanced Production Flow Analysis (EPFA).

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    Shah and Ward (2003) examined the effects of three contextual

    factors like plant size, plant age and unionization status on the likelihood of 

    implementing 22 manufacturing practices that are key facets of lean

    production system. Further, they postulate four bundles of inter-related and

    internally consistent practices: these are Just In Time, Total Quality

    management, Total Preventive Maintenance and Human Resource

    Management. Then they empirically validate their bundles and investigate

    their effects on operational performance.

    Aase et al (2004) confirmed that U-shaped assembly lines improve

    labor productivity. Results indicated that labor productivity will improve

    significantly under certain conditions when switching from a straight-line

    layout to a U-shaped layout but not in all cases. The research also reveals

    some limitations of such a layout change when factors such as the number of 

    tasks and cycle times are varied.

    Cagliano et al (2004) explored the supply strategies of European

    manufacturing firms with the third edition of the international manufacturing

    strategy survey. Four clusters are identified on the basis of the supplier

    selection criteria and integration mechanisms adopted. Two clusters are

    similar to the lean and agile models, while the other two are more traditional

    supply strategies. The strategies are then described in terms of contingent, and

    structural factors and manufacturing performance. Lean and agile strategies

    outperform the other clusters on many dimensions, while no significant

    difference emerges between the two in terms of performance.

    Galantucci et al (2004) proposed the implementation of hybrid

    Fuzzy Logic-Genetic Algorithm (GA) methodology to plan the automatic

    assembly and disassembly sequence of products. The GA-Fuzzy logic

    approach is implemented onto two levels. The first level of hybridization

    consists of the development of a Fuzzy controller for the parameters of an

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    assembly or disassembly planner based on GAs. The second level consists of 

    the identification of the optimal assembly or disassembly sequence by a fuzzy

    function, in order to obtain a closer control of the technological knowledge of 

    the assembly/disassembly process. Two case studies were analysed in order to

    test the efficiency of the Fuzzy-GA methodologies.

    Grewal and Sarren (2004) developed a simple model to implement

    the lean improvement initiative. Value Stream Mapping tool is considered as

    the core of this model. Some factors such as lead time, waiting time, and

    inventory are quantified to evaluate the effectiveness of implementation of 

    this model. Their work was an attempt to reduce and eliminate the non value

    added time in a particular value stream.

    Kodali and Sangwan (2004) made an attempt to demonstrate the

    usefulness of Performance Value Analysis for the justification of World Class

    Manufacturing Systems (WCMS) for Indian industries. From the result of the

    model, it is evident that the WCMS is the best alternative for implementation

    and to maintain competitive advantages.

    Laosirihongthong and Dangayach (2005) presented findings of an

    empirical survey on manufacturing strategies implementation in new

    industrialized countries. Data were obtained from 68 and 54 automotive

    manufacturing companies in India and Thailand with 21.7% and 21.8 %

    response rates, respectively, and analyzed through the inferential statistics.

    The results indicated that the focused competitive priorities of companies in

    both countries are improving product and process related quality and on time

    delivery. In addition, this study found that companies are trying to enhance

    the competitive priorities by implementing one of two infrastructural

    manufacturing strategies among Total Quality Management (TQM), Just In

    Time (JIT) production, Statistical Process Control (SPC), and Material

    Requirement Planning (MRP).

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    Morein (2005) has discussed the causes for the failures in

    information systems and technology industry and suggested alternative

    development approaches. These are generally termed as “agile development

    method”. This approach in managing software development project is seen to

    have roots in the lean manufacturing thinking and practice.

    Agarwal et al (2006) presented a framework which encapsulates the

    market sensitiveness, process integration, information driver and flexibility

    measures of supply chain performance. The paper explored the relationship

    among lead-time, cost, quality, and service level and the leanness and agility

    of a case supply chain in fast moving consumer goods business. It concluded

    with the justification of the framework, which analyses the effect of market

    winning criteria and market qualifying criteria on the three types of supply

    chains: lean, agile and leagile.

    Houshmand and Jamshidnezhad (2006) presented an axiomatic

    modeling of lean production systems design, using Process Variables (PV).

    Here an attempt is made to introduce PVs in production system design. In a

    production system, the authors interpret PVs as the tools, methods and

    resources required for implementing a lean production system.

    Karthick (2006) has proposed an integrated multi criteria supplier

    selection process and use of PVA in the actual selection process. He also

    developed a program in MATLAB to calculate the aggregated performance

    measure for each supplier. Category analysis is also performed for certain

    significant criteria to see how the alternatives perform with respect to a

    significant criterion.

    Narasimhan et al (2006) made an attempt to determine whether lean

    and agile forms occur with any degree of regularity in manufacturing plants.

    The results confirmed that the existence of homogeneous groups that

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    resemble lean and agile performing plants, and they identified important

    differences pertaining to their constituent performance dimensions. The result

    indicated that while the pursuit of agility might presume leanness, pursuit of 

    leanness might not presume agility.

    Tseng et al (2006) investigated the effects of continuous

    improvement and cleaner production on operational performance. A

    conceptual model is developed and three research hypotheses are empirically

    examined using structural equation modeling. The data were collected

    through a survey of Taiwan electronic manufacturing firms. The result

    indicated that cleaner production has a positive influence on operational

    performance as well as on the continuous improvement.

    Abdulmalek and Rajgopal (2007) described a case where lean

    principles were adapted for the process sector for application at a large

    integrated steel mill. Value Stream Mapping was the main tool used to

    identify the opportunities for various lean techniques. They also described a

    simulation model that was developed to contrast the “before” and “after”

    scenarios in detail and in order to illustrate potential benefits such as

    reduction in production lead time and work in process inventory.

    Matsui (2007) focused on the requirements for Just In Time

    production systems and the roles and consequences of JIT production for

    manufacturing companies. The paper reported nine reliable and valid

    measurement scales considering JIT production practices for 46 Japanese

    manufacturing plants. Based on these measurement scales and a summarized

    super scale, it is proved that JIT production system contribute to improving

    competitive performance, and that efficient equipment layout has a strong

    impact on the competitive position of the manufacturing plant.

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    Salomon et al (2007) presented a Multiple-criteria decision-making

    (MCDM) modeling for the selection of equipments supplier in an automotive

    plant located in the Sao Paulo State, Brazil. There were two new assembly

    lines for which equipments must be purchased by the factory. The AHP was

    applied with the same set of criteria for both lines. There were four potential

    suppliers involved, but only one competing, simultaneously, in the two

    selection processes.

    Amer et al (2008) presented design for six sigma, which focuses on

    customer requirement from the onset, as an effective methodology for

    monitoring and controlling supply chain variables, optimizing supply chain

    processes and meeting customer requirements. They developed a theoretical

    transfer function for predicting the performance of the perfect order

    incorporating fuzzy set theory provides a way of monitoring supply chain

    performance.

    Chandra and Grabis (2008) studied a single-stage variable lead-

    time inventory system with lead-time dependent procurement cost. Selection

    of the lead-time value represents finding the trade-off between benefits of 

    lead-time reduction and increase in the procurement cost. A model for joint

    optimization of inventory and procurement costs is developed. Numerical

    studies are conducted to identify conditions under which lead-time reduction

    is favorable compared to procuring at the lowest cost.

    Cruz Machado and Tavares (2008) presented a methodology to

    assess performance and to provide management decision support. A

    “management by value stream” model was developed to access company

    performance. It was implemented to support decision-making at an industrial

    company. The idea behind the model is that products or services should

    continually flow in the organization, as value streams. This work concluded

    that the model helps in the implementation process of the organization

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    strategy, and also it works as an invaluable tool to act and to promote

    communication at the several organization levels.

    Gurumurthy and Kodali (2008) made an attempt to demonstrate the

    application of a Multi Attribute Decision Making model, namely Performance

    Value Analysis (PVA) to analyze the alternatives production system like

    Traditional manufacturing, Computer Integrated Manufacturing, and Lean

    Manufacturing among various performance measures. A detailed algorithm of 

    the PVA model is demonstrated using a hypothetical case situation, which

    shows that Lean Manufacturing System is the best as it results in overall

    improvement in the performance of the organization.

    Herron and Hicks (2008) considered the process in terms of 

    Lillrank’s model of innovation transfer. They disseminated selected lean

    manufacturing tools and techniques into companies in the North East of 

    England aimed to help companies to improve productivity through applying

    lean manufacturing management practices and knowledge. The results

    obtained from 15 companies show that the savings are eight times greater than

    total cost. It has been found that the commitment of management and the

    ability of the change agents are the key determinants of success.

    Kattan and Bin Adi (2008) found that the ways to reduce the total

    inventory cost while maintaining the target level of technical readiness. The

    research consists of two phases of multi-criteria decision making on total

    inventory cost and technical readiness. First phase is, to apply two

    dimensional material classification techniques to the selected data. The

    second phase is, to apply a deterministic inventory model to the result of the

    material classification. A detailed analysis of the technical readiness and total

    inventory cost is covered for the deterministic inventory model. Finally, a

    comparison between the current inventory system and the proposed one

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    shows around 42% savings in the total inventory cost over a period of three

    years.

    Kaur and Mahanti (2008) determined a suitable decision making

    method for selecting the best vendor. Essentially the vendor selection problem

    is a multi criteria decision making problem involving tangible as well as

    intangible criterion. Analytical Hierarchy Process can best handle these

    criterions. ANP provides a holistic framework for selection of best Enterprise

    Resource Planning (ERP) vendor alternative by using a dynamic multi

    directional relationship among the decision attributes. The method adopted

    here uses triangular fuzzy numbers for pair-wise comparison of attributes and

    weights are calculated using entropy concept.

    Khorramshahgol and Djavanshir (2008) proposed a new

    methodology for calculating the proportionality constant of Taguchi's quality

    loss function (QLF). To this end, the analytical hierarchy process is used to

    estimate the value of the proportionality constant in QLF. It is argued that the

    proposed methodology takes into account, the relative importance of various

    quality characteristics and captures different levels of sensitivity along the

    loss function.

    Kull and Talluri (2008) proposed a combination of Analytic

    Hierarchy Process and goal programming as a decision tool for supplier

    selection in the presence of risk measures and product life cycle

    considerations. The efficiency of the model is tested at a mid-sized, second-

    tier automotive supplier. They found that, the model provide a feasible and

    meaningful method for determining strategic supplier allocations while

    considering multiple dimensional issues.

    Saaty (2008) described the Analytical Hierarchy Process (AHP) as

    a theory of measurement through pairwise comparisons and relies on the

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     judgments of experts to derive priority scales. The comparisons are made

    using a scale of absolute judgement that represents, how much one element

    dominates another with respect to a given attributes. The judgment may be

    consistent, and how to measure the inconsistency and improve the judgments,

    when possible to obtain better consistency is a concern of AHP. The derived

    priority scale is synthesized by multiplying them by the priority vector of their

    parent nodes and adding for all such nodes. In this paper AHP is used to take

     judgments to estimate the dominance of the consumption of drinks in the

    USA.

    Saurin and Ferreira (2008) presented an assessment of the impact of 

    lean production on working condition in a harvester assembly line of an

    American plant in Brazil. As a frame work for analysis the data collected

    were grouped into four constructs: i) work content, ii) work organization,

    iii) continuous improvement and iv) health and safety. The result indicated

    that workers considered their working conditions were fairly good and had

    improved after the introduction of lean production. To some extent, this

    positive view was due to the fact that there were many gaps between

    standardized work and real work.

    Senanayake and Veera Ragavan ( 2008) discussed an Automated

    Storage and Retrieval system, which was designed such that the best storage

    location for the products is determined by utilizing a fuzzy control system.

    The design maintains the records of the products to be/already in store and the

    storage/retrieval times along with the availability status of the storage

    locations. They also discussed the maintenance of the above mentioned

    records and the utilization of the concept of fuzzy logic in order to determine

    the optimum storage location for the products.

    Askin and Krishnan (2009) considered a multi product pull setting

    where part types compete with each other for common production resources.

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    Here, it is important to consider factors such as lead time variability and to

    include the corresponding queuing aspects into the model. Each workstation

    is modeled as a GI/G/1 queue. Waiting times spent by parts at workstations

    are approximated using a decomposition/recomposition algorithm. Conditions

    under which multiple control points are optimal are investigated along with

    the impact of product mix and utilization parameters on the number of control

    points. Analytical model results are validated by simulation.

    Rathje et al (2009) identified the major criteria and conditions that

    led to either lean success or failure. They found the sources for failure, like

    the lack of senior management commitment, lack of interest and low

    acceptability of workers for changes. The sources of successes are employee

    autonomy to make decisions, information transparency, etc.

    Yakup et al (2009) applied a binary fuzzy goal programming

    approach to an assembly line balancing problem. They proposed models for

    balancing straight and U-shaped assembly lines with fuzzy goals.

    Anthony Inman et al(2010) developed a structural model

    incorporating agile manufacturing as the focal construct is theorized and

    tested. The model included the primary components of JIT like JIT-

    purchasing and JIT-production as antecedents and operational performance

    and firm performance as consequences to agile manufacturing. Using data

    collected from production and operations managers working for large U.S.

    manufacturers, the model is assessed following a structural equation modeling

    methodology. The results indicate that JIT-purchasing has a direct positive

    relationship with agile manufacturing while the positive relationship between

    JIT production and agile manufacturing is mediated by JIT purchasing.

      Bashiri and Ramezani (2010) analysed multiple response problems

    encompassing three stages: data gathering, model building and optimization.

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    They propose least significant difference criterion as agent of modeling stage

    to trade off between responses, which guides the decision makers how to

    change membership function, and the criteria of modeling fitness function.

    Demeter and Matyusz (2010) focused on how companies can

    improve their inventory turnover performance through the use of lean

    practices. According to their main proposition, firms that widely apply lean

    practices have higher inventory turnover than those that do not rely on LM.

    However, there may be significant differences in inventory turnover even

    among lean manufacturers depending on their contingencies. Therefore, they

    also investigated how various contingency factors like production systems,

    order types, and product types influence the inventory turnover of lean

    manufacturers.

    Eroglu and Hofer (2010) concluded that while firms increasingly

    adopt lean inventory practices, there is limited evidence that inventory

    leanness leads to improved firm performance. This study re-examined this

    relationship with an attempt to overcome some shortcomings of previous

    research. To that end, a theory-based measure of inventory leanness, which

    takes into account industry specific inventory management characteristics, is

    proposed. The analysis of a large panel data set of U.S. manufacturing

    companies reveals that the significance and shape of the inventory

    performance relationship varies substantially across industries.

    When a production facility is designed, there are various

    parameters affecting the number of machines such as production capacity and

    reliability. Gharakhani et al (2010) presented a new mathematical model with

    two objectives. The primary objective function is considered to be the

    production capacity and the secondary objective function is total reliability.

    The resultant model is formulated using recent advances in robust

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    optimization and the solution procedure is analyzed with some numerical

    examples.

    Kisperska-Moron and De Haan (2010) analysed that mass, lean and

    agile production philosophies, although widely discussed, still cause

    considerable confusion both among academics and in practice. The

    characterizations of lean (what, when needed but perfect) and agile (first, fast

    and best) show the paradigmatic differences between the two.

    Mackelprang and Nair (2010) examined the relationship between

    JIT manufacturing practices and performance outcomes by means of meta-

    analysis of correlations approach. They highlighted the JIT practices that have

    the greatest impact on individual performance outcomes and emphasizes the

    role of moderating factors in the relationship between JIT practices and

    performance.

    Makui et al (2010) presented a new methodology for identifyingand analysing risks of projects concurrently by applying fuzzy multi-attribute

    group decision making approach. Multi-attribute group decision making, the

    essence of identification and analysis of project risks, lets one considers

    multi-attribute problems for the Decision Maker, sets priorities for each

    decision factor, and analysis ranking for all alternatives. The paper included a

    new procedure for classifying potential risks which it is named Potential Risk 

    Breakdown Structure based on project Work Breakdown Structure.

    Mukesh Kumar and Hari Sharan (2010) has used AHP as a tool for

    selecting career in a manufacturing environment at a Indian industry.

    Najmi and Makui (2010) used a new methodology which is a

    combination of AHP and DEMATEL to rank various parameters affecting the

    performance of the supply chain. The DEMATEL is used for understanding

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    the relationship between comparison metrics and AHP is used for the

    integration to provide a value for the overall performance.

    Neumann and Medbo (2010) presented a design stage comparison

    of an existing ‘big box’ material supply strategy common in Swedish

    manufacturing to a proposed ‘narrow bin’ approach. Performance times,

    walking distances, layout space requirements were evaluated for six

    workstations using ‘big boxes’ of parts along the line. Biomechanical loading

    on spine and shoulder was estimated for one of the workstations.

    Comparisons were made to simulated layouts with the ‘narrow bin’ approach

    which consumes reductions in rack lengths (81%), Material Areas (61%),

    Walking Distances (61%), Indirect Work (24%), and Cycle times (8%). It is

    concluded that the narrow bin supply strategy has potential to both improve

    productivity and reduce risk characteristics of the system.

    Petersen and Wohlin (2010) proposed a novel approach to bring

    together the quality improvement paradigm and lean software development

    practices, the approach being called Software Process Improvement through

    the Lean Measurement (SPI-LEAM) Method. The method allows to assess

    the performance of the development process and take continuous actions to

    arrive at a more lean software process over time. The method is under

    implementation in industry and an initial evaluation of the method has been

    performed.

    Pool et al (2010) considered how the principles of ‘flow’ and ‘pull’

    production suggesting a regular, demand-driven product flow may be

    implemented for the semi- process industry by introducing cyclic schedule.

    The case study is extensively described to be able to judge how the context of 

    the changes and the intervention process contribute to the results of the

    intervention.

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    Pun et al (2010) worked towards the development of generic self-

    assessment model for small and medium sized enterprises to determine their

    performance in new product development (NPD) practices. It reviews a list of 

    sixteen elements under five decision areas as advocated in literature that

    affect NPD practices. Incorporated the findings of focus group interviews

    with industry practitioners and experts, a self-assessment model of NPD

    performance is devised using the Analytical Hierarchy Process (AHP)

    approach. The conduct of the exploratory study is presented to illustrate how

    the decision/performance criteria be prioritized and the scoring guidelines be

    established.

    Raut et al (2010) integrated Analytic Hierarchy Process (AHP),

    Fuzzy AHP and Quality Function Deployment (QFD)-Fuzzy to determine the

    best casting industry supplier for automobile spare-parts. AHP is used to

    obtain the relative importance of the evaluation criteria. The QFD approach

    — typical to supplier selection in the house of quality (HOQ) — is used in

    determining the importance of weights for the customer requirements. The

    proposed method is used in the selection of suppliers using relative

    benchmarking as well as absolute bench marking which offers a tangible

    means by which to evaluate suppliers

    Ravanshadnia et al (2010) made an attempt to develop a step by

    step decision making model for engineering partner selection process. The

    problem of selecting appropriate engineering company is a multi-criteria

    decision that has many uncertainties in its nature. The model takes into

    account consultant’s relationships with project stakeholders, its proposed

    commission fee, and its managerial and technical capabilities. The paper

    describes a fuzzy analytical hierarchy process (FAHP) model which

    constitutes a quantitative estimation methodology that can be used to select

    engineering partner for construction companies. A numerical case with a

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    sensitivity analysis is presented to demonstrate the application of the model

    in real cases.

      Roy and Debdip (2010) suggested a generic approach for linking

    the balancing of the line of production in the conversion area with the

    customers’ rate of demand in the market and for configuring the related stock 

    chambers. They mainly aimed to translate the underlying problem in the form

    of a mixed nonlinear programming problem and design the optimum supply

    chain. A numerical example has been added to demonstrate the suitability of 

    the approach.

    Sarkar et al (2010) described a production policy (resumption and

    non-resumption) in order to find out an optimal safety stock, production lot

    size and reliability parameters. A production-inventory model with stochastic

    machine breakdown and its corrective and regular repairs with safety stock 

    has been developed incorporating variable reliability parameters. The Kuhn-

    Tucker method is used to obtain an optimal solution for reliability parameters,

    production lot size and safety stock. Numerical examples with sensitivity

    analysis of key parameters are given to illustrate the proposed model.

    Song et al (2010) developed an integrated production inventory

    model assuming the replenishment lead time is dependent on both lot size of 

    the buyer and production rate of the vendor. The decision-making interaction

    of lead time between a buyer and a vendor in the integrated inventory model

    is analyzed. In terms of the model, a solution procedure has been developed

    to obtain the efficient ordering strategy for a manufacturing company. The

    numerical examples are employed to validate the solution procedure.

    Tuzkaya et al (2010) proposed an integrated fuzzy multi-criteria

    decision making methodology for material handling equipment selection

    problem (MHESP). The proposed approach is utilized from fuzzy sets,

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    Analytic Network Process (ANP) and Preference Ranking Organization

    Method for Enrichment Evaluations approaches. The methodology is applied

    for a manufacturing company to prove its effectiveness.

    Venkatachalapathi and Ramakrishna Rao (2010) made an attempt

    to establish a quantitative relationship between output indicators such as

    Automated Guided Vehicle (AGV) utilization and input variables like part

    arrival rate, processing times at machining centers and various decision rules

    employed at AGV and Resources in a dynamic dedicated Flexible

    Manufacturing System (FMS). The objective is to determine the nature of the

    functional relationship and the variables affecting the output performance

    measures of the FMS model and decision variables.

    Vijaya Kumar et al (2010) applied the analytical hierarchy

    process (AHP) to Factors affecting ERP implementation. The model is based

    on the analysis of quality issues that affect a implementation process. To

    understand some criticalities of the model, a survey based on Analytic

    Hierarchy Process was carried out.

    Vliegen et al (2010) described an exploratory study of aspects that

    should be taken into consideration when optimizing tool kits, i.e. cases

    containing sets of tools that are used by service engineers for corrective

    maintenance. The study was carried out among service engineers of an

    Original Equipment Manufacturer (OEM) that produces lithography

    equipment that is critical in the production process. The results show a

    preference for tool kits, both in general and for all phases of the maintenance

    process. Many aspects appear to play a significant role in this preference, such

    as packing, convenience, characteristics of the repair action, uncertainty, and

    time.

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    2.3 CONCLUSIONS BASED ON THE LITERATURE SURVEY

    The following conclusions have been drawn based on the studies

    available in the open literature on kitting assembly system.

    1. Some literature deals with kitting for a parallel flow long

    cycle time assembly system (Brynzor and Johansson 1995,

    Medbo 2003)

    2. Some literature focuses kitting in light guided semi automated

    assembly system (Gunther et al 1996)

    3. Literature dealing with automation of kitting using robot to

    perform the parts kitting operation (Tamaki et al 1991) and

    4. Literature dealing on kitting for a fitness cycle assembly line

    (Bozer and McGinnis 1992).

    2.4 MOTIVATION

    Based on the available literature, it is seen that works related to

    multi product single conveyor assembly environment are few. A majority of 

    the studies on kitting focuses on electronics industries. The information

    available is not adequate for designing a lean kitting system for an automotive

    assembly line with multi product single conveyor assembly environment.

    Hence, the present work focuses on developing and evaluating a lean kittingassembly model for a multi product single conveyor assembly line of a two

    wheeler engine assembly line.

    2.5 OBJECTIVES AND SCOPE

    The objectives of the present study are as follows:

    1. To select a suitable assembly method among Line Side (LS),

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    Lean Kitting (LK) and Kanban Assembly (KA) employing

    Multi Criteria Decision Making (MCDM) models like

    Performance Value Analysis (PVA) and Analytical HierarchyProcess (AHP) for an automotive industry.

    2. To develop a Fuzzy based model for analyzing the suitability

    of LK.

    3. To develop a mathematical model for demonstrating the

    application of LK in an automotive industry.

    4. To quantify the advantages of LK over LS assembly.

    5. To develop a model and demonstrate its application for

    finding an optimal batch size with a fixed changeover time.

    2.6 PROBLEM FORMULATION

    The problems associated with the final engine assembly line which

    uses lineside assembly method of the case industry are given below.

    2.6.1 Problems Associated with Line Side Assembly Method

    In this work, the case industry produces two different types of 

    engines on a single conveyor assembly line. This line is a Multi Product

    Single Conveyor (MPSC) assembly line which is a special type of assembly

    line in which different products are assembled in a single assembly line. Thefollowing are the problems associated with the line side assembly method of a

    MPSC assembly line.

    i) More floor space is consumed.

    ii) More operator walking time for retrieving components from

    the storage area is required.

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    iii) Changeover from one product to other product is very difficult

    since changeover requires some of the components to be

    replaced completely with components of new specifications.This poses difficulty to perform repeatedly.

    iv) Skilled and experienced labour is required for assembly work 

    v) Work in process inventory is very high and

    vi) Shop floor control is difficult.

    2.7 SUMMARY

    In this chapter, the various literature related to lean manufacturing,

    kitting assembly, MCDM models like PVA, AHP and fuzzy logic are

    discussed. Conclusions based on the literature survey have been done.

    Motivation, objectives and scope of the present study have been developed. The

    problems associated with the line side assembly method are also discussed.