my research project: "process re- engineering"

49
PROCESS RE- ENGINEERING n Approach to Systematize a Leather Apparel Indust ALPINE APPARELS LTD FARIDABAD

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My Research Project which got me the award of Best Graduating Project at Annual NIFT Tech- Summit- 2008

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Page 1: My Research Project: "PROCESS RE- ENGINEERING"

PROCESS RE- ENGINEERING“ An Approach to Systematize a Leather Apparel Industry”

ALPINE APPARELS LTD FARIDABAD

Page 2: My Research Project: "PROCESS RE- ENGINEERING"

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.

Page 3: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 4: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 5: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 6: My Research Project: "PROCESS RE- ENGINEERING"

PROJECT AREA DEFINITION

STITCHING DEPARTMENT

Page 7: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 8: My Research Project: "PROCESS RE- ENGINEERING"

QUESTIONNAIRE

Upper Management

Production

Managers

Floor

Managers

Line

Supervisors

Quality

Checkers

Page 9: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 10: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 11: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 12: My Research Project: "PROCESS RE- ENGINEERING"

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:

Page 13: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 14: My Research Project: "PROCESS RE- ENGINEERING"

MATERIAL FLOW ANALYSIS

Emergency Exit

Entry from Cutting

PPC

O

ffice

Entry to Finishing

Average Aisle Width= 1.11m

Page 15: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 16: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 17: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 18: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 19: My Research Project: "PROCESS RE- ENGINEERING"

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%

Page 20: My Research Project: "PROCESS RE- ENGINEERING"

FINDINGS

Page 21: My Research Project: "PROCESS RE- ENGINEERING"

• 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

Page 22: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 23: My Research Project: "PROCESS RE- ENGINEERING"

RECOMMENDATIONS

Page 24: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 25: My Research Project: "PROCESS RE- ENGINEERING"

PROPOSED LAYOUT

Emergency Exit

Entry from Cutting

Ent

ry to

Fin

ishi

ng

Page 26: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 27: My Research Project: "PROCESS RE- ENGINEERING"

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.

Page 28: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 29: My Research Project: "PROCESS RE- ENGINEERING"

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.

Page 30: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 31: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 32: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 33: My Research Project: "PROCESS RE- ENGINEERING"

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.

Page 34: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 35: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 36: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 37: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 38: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 39: My Research Project: "PROCESS RE- ENGINEERING"

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.

Page 40: My Research Project: "PROCESS RE- ENGINEERING"

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

Page 41: My Research Project: "PROCESS RE- ENGINEERING"

• 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

Page 42: My Research Project: "PROCESS RE- ENGINEERING"

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                  

                       

                       

                       

                       

Page 43: My Research Project: "PROCESS RE- ENGINEERING"

RESULTS

Page 44: My Research Project: "PROCESS RE- ENGINEERING"

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)

Page 45: My Research Project: "PROCESS RE- ENGINEERING"

LIMITATIONS

Page 46: My Research Project: "PROCESS RE- ENGINEERING"

• 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.

Page 47: My Research Project: "PROCESS RE- ENGINEERING"

FUTURE SCOPE

Page 48: My Research Project: "PROCESS RE- ENGINEERING"

“ 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.

Page 49: My Research Project: "PROCESS RE- ENGINEERING"

THANKS,To all members of DFT, NIFT- Hyderabad and the Management and production staff of Alpine Apparels for their support and guidance

- Anupam Srivastava