my research project: "process re- engineering"
DESCRIPTION
My Research Project which got me the award of Best Graduating Project at Annual NIFT Tech- Summit- 2008TRANSCRIPT
PROCESS RE- ENGINEERING“ An Approach to Systematize a Leather Apparel Industry”
ALPINE APPARELS LTD FARIDABAD
PROJECT BACKGROUND
• Process Re- engineering as defined by renowned Re- engineering theorists Hammer and Champy as:
“ the fundamental reconsideration and the radical redesign of organizational
processes, in order to achieve drastic improvement of current performance in
cost, service and speed”
• The leather apparel and goods manufacturing industry is the focus
• The majority of manufacturing operations are undertaken manually in a
un-standardized manner.
ALPINE APPARELS Pvt. Ltd
• Established in 1986 at Faridabad , Alpine's integrated design & manufacturing set up is geared to cater to the most discerning buyers of leather dress gloves and fine leather goods.
• It has presently 5 Units committed to manufacturing leather products like Gloves, Bags, Wallets, Caps etc
PROJECT OBJECTIVE
Primary Objective
• Re- engineer; the production process in order to identify and eliminate waste in labor, or production methods
• Time & Motion; to induce the utilization of industrial engineering tools for systemized production methodology
Secondary Objective
• To implement control formats to ensure accountability at every stage of the production process
"There is nothing so useless as doing efficiently that which should not be done at all.“
Peter F. DruckerPETER F. DRUCKER
PROJECT METHODOLOGY
Primary Data Collection & Process Modeling
Questionnaire, Process Flow Mapping
Primary Data Collection & Process Modeling
Questionnaire, Process Flow Mapping
Re- engineering & Initiative Development
Idea Formulation
Re- engineering & Initiative Development
Idea Formulation
Result AnalysisIdentifying Area of Improvement
Result AnalysisIdentifying Area of Improvement
Evaluate / Select
Idea selection
Evaluate / Select
Idea selection
Cost Justification
Analysis
Cost Justification
Analysis
ImplementationImplementation
Discussion with Top Management
Discussion with Top Management
Acceptability
Analysis
Acceptability
Analysis
YESNO
PROJECT AREA DEFINITION
STITCHING DEPARTMENT
PRIMARY DATA ANALYSIS & PROCESS MODELING
In order to obtain vital information about the present processes and activities
involved in the operation cycle of the department and to analyze the current
system of material flow, following tools were used:
Questionnaire
Process Flow Mapping
QUESTIONNAIRE
Upper Management
Production
Managers
Floor
Managers
Line
Supervisors
Quality
Checkers
RESULT ANALYSIS
Time S
tudy Analy
sis (W
ork Mea
surem
ent)
Timely
Mate
rial F
eed
Facili
ty Plan
ning and La
yout
Ergonomics
Equipmen
t Engin
eerin
g
Method En
ginee
ring
Materia
l Han
dling a
nd Control
0
5
10
15
20
25
10
18
7.5
3
10.5
5
8.75
6
10
5
2
9
4
7.5
20 20
12.5
10
15
10
12.5
COMPARISONImportance Vs Utilization
IMPORTANCEPRESENT SCENARIOMAXIMUM SCORE
PARAMETERS
SCO
RE
RESULTSQuestionnaire
RESULT ANALYSIS
Labor W
astag
e
Inefficie
nt On-Li
ne Plan
ning
Materia
l Dela
ys
Inefficie
nt Superv
ision
Machine B
reakd
own Time
Inefficie
nt Mate
rial M
anag
emen
t0
20
40
60
80
100
120
140
160
180
200
140
181 176
107
67
169
CAUSE ANALYSIS OF SLIDING COSTS
SCORE
PARAMETERS
SCO
RE
RESULT ANALYSIS
Fixed % of FOB Supervisor's Words Time Study Analysis175
180
185
190
195
200
205
210
215
203
210
187
Cost Estimation Methodology
Score
PROCESS FLOW MAPPING
• Process Flow Mapping helps in the identification of various activities involved
in
the chain of processes supporting the product. The mapping of all the
processes imparts a detail insight into the physical layout of the department
Duplication of Activities
Excessive staging Areas.
Excessive transfer of material from one facility to another.
Some of the common non-value added problems include:
Receive Cut Parts from Cutting Department as per PO#
Receive Cut Parts from Cutting Department as per PO#
Issue of Hardware from Store against BOM Issue of Hardware from Store against BOM
Counting of Cut parts and the hardware at the Receiving Table
Counting of Cut parts and the hardware at the Receiving Table
Feeding of Cut parts To the SectionsFeeding of Cut parts To the Sections
Counting of the parts by the SupervisorCounting of the parts by the Supervisor
In- Process StorageIn- Process Storage
Making/ Pasting/ StitchingMaking/ Pasting/ Stitching
Thread Cutting & InspectionThread Cutting & Inspection
Receipt of Order File and Pre- production Meeting Receipt of Order File and Pre- production Meeting
Discussion with supervisors to set the target labor cost to be achieved
Discussion with supervisors to set the target labor cost to be achieved
Dispatch to Finishing DepartmentDispatch to Finishing Department
PROCESS FLOW MAPPING
MATERIAL FLOW ANALYSIS
Emergency Exit
Entry from Cutting
PPC
O
ffice
Entry to Finishing
Average Aisle Width= 1.11m
RELATIONSHIP ANALYSIS
Richard Muther developed a format for displaying manager preferences for departmental or facility locations, known as Muther's grid. The rating system is classified into six categories and degree of relationships, they are:
A = Absolutely necessary
E = Especially important
I = Important
O = Okay
U = Unimportant
X = Undesirable
MUTHER’S GRID FOR STITCH FLOOR
Fig 1.1 Rating of Present Layout of the Stitch Floor
Material Table
Entry
Edge Color
Making/ Stitch
Thread cutting
Exit
A
X
I
E
IX
U
I
U
E
I
XE
XX
MUTHER’S GRID FOR STITCH FLOOR
Material Table
Entry
Edge Color
Making/ Stitch
Thread cutting
Exit
A
A
A
E
IX
O
I
U
X
X
XU
XX
Fig 1.1 Rating as per Desired Layout of the stitch floor
RELATIONSHIP ANALYSIS
FACILITIES
RATINGPoints of Variance
max[P-D]= 5Present Desired
Entry- Material Table A A 0
Entry – Edge Color U O 1
Entry- Stitch X X 0
Entry- Thread Cutting E U 3
Entry- Exit X X 0
Material Table- Edge Color I A 2
Material Table- Stitch I I 0
Material Table- Thread Cutting E X 4
Material Table- Exit X X 0
Edge color- Stitch E E 0
Edge Color Thread Cutting X X 0
Edge Color- Exit I X 3
Stitch- Thread Cutting I I 0
Stitch- Exit U U 0
Thread Cutting- Exit X A 5
Cumulative Variance 18
RELATIONSHIP ANALYSIS
• The Table imparts the information that the total variance points are
18 and the variance has occurred in 6 relationships. Thus, each relationship variation
individually contributes 3 points or 60% to the floor layout variance
• To calculate the percentage of material layout to be updated in order to
achieve the desired layout, the following formula is being used:
% Updation = Total Rating Variance x %Contribution per Point x100
Total Relations x max [P-D] x %Contribution per Point
= (18x20) x100/ (15x5x20)
= 24%
FINDINGS
• Non- utilization of systemized methodology of production involving Time Study Analysis,
Ergonomics, Method Engineering
• Duplication of the activity of counting of cut parts at the stitch floor
• The budgeted cost for stitching is taken by discussions with supervisors and middle
management,
FIN
DIN
GS
Fig 1.2 Stitch Floor
FIN
DIN
GS
• The related operations are not in proper proximity to each other which results in
increased material flow.
• Absence of a systematic material handling system.
• High of product variation with no product wise segregation on the floor.
Fig 1.3 Current Scenario of material handling
RECOMMENDATIONS
AREA OF IMPROVEMENT 1: LAYOUT
Critical Areas considered for layout updation:
1. Maximum space utilization
2. Easy accessibility
3. Location and width of aisle
4. Optimum material flow
5. Compliances Approved
6. Clear fire exits
7. Feasibility of shifting facilities and workstations
PROPOSED LAYOUT
Emergency Exit
Entry from Cutting
Ent
ry to
Fin
ishi
ng
PROPOSED LAYOUT……CONTD
• The clearances around the thread cutting table was:
3.5m x 1.5 m x 1.75m1 .5 m 1 .5 m
2.5 m
• The spraying/ edge color table dimensions: 2 m x 1.5 m x 1 m
ADVANTAGES OF PROPOSED LAYOUT
• The addition of one more material handling table ensures proper storage and
accountability of cut pieces and hardware.
• The segregation of the stitch floor into sections enhances the efficiency of
the line planning process and imparts an opportunity to install systems to
ensure the accountability of the production process.
• The workstations and facilities have been allocated as per the material flow
and relationship analysis which results in streamlining of the material
movements and ensure minimum loss of time.
AREA OF IMPROVEMENT2: MATERIAL HANDLING SYSTEM
The factor considered while evaluating suitability of a material handling system:
• The Aisle Width between machine lines is 1.11 m
• The product pieces are prone to easy damage and are small in size
• The floor undertakes order of small to medium order quantity (300- 2000 pcs)
• The style variation is high
PROPOSED MATERIAL HANDLING SYSTEM
• The proposed material handling system consists of a trolley with a wooden crate fixed
on a framed structure.
• The movement of the trolley may be by manual means or it can be automated by
installing rail based network.
Since the space and investment constrains rule out a rail based trolley system, a
manual trolley transit system was a better option. The design of the trolley was specific
to the requirements of a leather apparel and goods manufacturing unit.
THE GUIDING PRINCIPLES
PROPOSED MATERIAL HANDLING SYSTEM
• As per OSHA standards, the workers while stitching should not lean down or stretch their hands to pick up the material for sewing.
• As per OSHA standards, the material handling system should be such that the operator should
not bend or twist to pick up the material to undertake sewing operation.
• As per OSHA standards, the operator should not stretch and lean to alight the sewn pieces from the machine.
Fig 1.5 Ergonomically incorrect material handling systems
THE DESIGN
Wooden Crate
Stand Hollow Iron Rod
Wheel
Iron Angle Frame
Wooden Buffer Crate
Canvas Bag
Hollow Iron Rod
Fig 1.6 Trolley Design
THE FEATURES
PROPOSED MATERIAL HANDLING SYSTEM
• The trolley will align itself to the sewing machine with pieces of product kept
in the top crate and the buffer crate.
• The canvas bag attached to the trolley holds the small parts of product like pull tabs, labels, leather strip which are needed to be sewn to the large parts
Fig 1.7 Alignment of Trolley with Sewing Workstation
PR
OP
OS
ED
MA
TE
RIA
L H
AN
DL
ING
SY
ST
EM
MATERIAL ANALYSIS
• The trolley performs on a mosaic floor with no exposure to wet conditions.
• The trolley performs on a floor prone to loose sewing nylon threads.
• The trolley has to bear a weight of 5-7 kilograms.
• The trolley would on an average cover a distance of 10-50 meters / day.
PR
OP
OS
ED
M
AT
ER
IAL
HA
ND
LIN
G S
YS
TE
MMATERIAL ANALYSIS….. CONTD
Parts Material
Frame Iron Angle (4 mm thickness, 90
degree)
Crate Plywood with sunmica finish
Top stand & Frame 0.5” cross section hollow iron rod
Wheels Rubberized Casted Polymer (5” dia)
Wheel Assembly Casted Steel
Nuts & Bolts Casted Mild Steel
TECHNICAL AND DESIGN SPECIFICATIONSP
RO
PO
SE
D
MA
TE
RIA
L H
AN
DL
ING
S
YS
TE
M
Parts Measurements (Inches)
Total height of the Trolley 31”
Ground Clearance 5.5”
Frame Height 21”
Top Stand Height 7”
Canvas Bag Frame Dimensions 6”x4”
Canvas Bag Frame Extension from Stand 5”
Wheel Diameter 5”
Top crate Dimensions 23”x14”
Buffer Crate Dimensions 21”x12”
Orientation of canvas frame to Top 90 Degrees
12”
11”
3”
90°
Iron NailCasted Steel
Rubberized Polymer
23”
14”
5”
Fig 1.8 Parts of Trolley
PR
OP
OS
ED
MA
TE
RIA
L H
AN
DL
ING
SY
ST
EM
COST ANALYSIS
S.
No.Description Qty.
Rate
(per unit)
Amt.
(INR)
1Frame iron
angles6 kg 40 240
2 Hollow iron rod .25kg 32 8
3 Plywood 5 sqm 75 375
4 Sun Mica 4 sqm 85 340
5Wheels
Assembly4 60 240
6 Nuts and Bolts 6 2 12
7 Labor Cost 350
Total Cost 1.565
PROPOSED MATERIAL HANDLING SYSTEM
IMPLEMENTATION
The construction of Technology Demonstrator-I has been approved by one of the leading Industrial trolley manufacturers in India
VANYA Inc, Okhla New Delhi
The system is scheduled to be implemented in the near future at Alpine Apparels Ltd, Faridabad
AREA OF IMPROVEMENT3: INDUSTRIAL ENGINEERING TOOLS
The utilization of IE tools was undertaken for production process of twostyles:
NEXT Crossbody Leather Bag
EDC Jungle Green Canvas Bag
The steps followed were:
1. Time Study & Method Analysis at Sampling Stage
2. Calculation of the Throughput Time for each styles
3. Calculation of Target Cost by following formula:
Target Labor Cost= Order Quantity x Throughput Time (in hrs) x Labour cost / hr
INDUSTRIAL ENGINEERING TOOLS…….CONTD
• The utilization of IE tools will enable constant process innovations which is
driving tool for improvements • The loss of value in terms of time and labor would be conserved after the
implementation of systemized methodology
• The production process would not dependant on the inferences of the supervisor
• The technical data pertaining to the on-going production process would be available.
AREA OF IMPROVEMENT4: ACCOUNTABILITY
During the cutting , after the bundling process a bundle ticket has been implemented which would have the following information:
BUNDLE TICKET
Style Number
Production Order Number
Part Number
Quantity
Authorized Signatory
The above format will eliminate the redundant activity of counting the cut pieces on the stitch floor
• The implementation of the style wise production tracking sheetwill account the exact man- hours spent on a particular style.
• The data generated will act as a input to generate performance report and will identify the loopholes and faults.
• It will also perform as a mechanism for daily performance tracking of the department, so as to ensure that the production process is in progress as per the planning.
DAILY PRODUCTION TRACKING SHEET
DAILY PRODUCTION TRACKING SHEET
Style no: Date:
Operator Operation Production Total Remarks
1 2 3 4 5 6 7 8
Mohan
front panel attach 60
RESULTS
RESULT CALCULATION METHODOLOGY
• Result would be tracked by, the difference between the performances
of a particular style before the implementation of the proposed layout and after its implementation.
• The time constrains imposed by duration of the project made it difficult to track the results.
Formula:
Benefit Manhours = Previous Performance (Manhours) - Performance after Implementation( Manhours)
LIMITATIONS
• It has been assumed that the factor that limits the performance of the organization is the ineffectiveness of its processes. This assumption may not always be true.
• The research area has been restricted to processes of the stitch floor of the organization, the process chains of other departments of the organization have been spared.
• The non co-operation of the middle management was a major hurdle to procure information and implement changes.
FUTURE SCOPE
“ Perfection is not a destination, it’s a journey”
• The purpose Process Re- engineering (PRE) is to identify, evaluate
and re- structure processes to extract efficiency. So, the processes
are bound to modify in this dynamic corporate environment.
• The present system of processes are not permanent, they need
modification with changing requirements.
• The approved design of the trolley will undergo user trials and after
necessary amendment it would be implemented.
• PRE starts with a clean slate so every time there is a new beginning
for Re- engineering project.
THANKS,To all members of DFT, NIFT- Hyderabad and the Management and production staff of Alpine Apparels for their support and guidance
- Anupam Srivastava